Why Do We Buy? - The Neuroscience of Purchase Decisions

Simple questions are never simple. The complexity arises from the simplicity of observable behavior (in this case a purchase) and the depth of interactions of the things we cannot see that lead up to it, which in this case is a complex matrix of marketing, branding, personal value systems, personal expectations, past experiences, social pressure and identity.

Obviously if we could just answer the question we’d make a great many marketers happy and the companies they work for ecstatic. Answering that question is obviously not easy and, at present, the best we can do is pinpoint some of the hidden elements that come into play when a prospect is faced with a purchase decision.

Every decision we make is based upon emotions. Neuroeconomics, however, takes things one step further, actually analyzing brain activity, hormonal profiles, eye-movement and heart rate to establish behavioral patterns that are reliably engaged in making purchase decisions.

What emerges from recent studies is that while we, as humans, establish relationships with brands we do not equate in our mind and therefore in our value system, that relationship with those we hold with other humans. This is of particular importance because, in the social media age, as I covered in The Tribe That Discovered Trust, brands want to be our friend. They want to align with our interests, concerns and value system in a sometimes misguided attempt to persuade us to support them because of our similarities.

Another point that emerges from the neuroscientific studies is that recommendation engines that throw up a plethora of essentially different choices in the mistaken belief that they will broaden a potential purchaser’s horizon and maximise their spending often lead to the exact opposite. Going down ‘rabbit holes’ where unrelated products appear, weakens purchaser focus and often leads to a non-purchase.

Some things are more obvious, like when faced with a number of similar choices the brand that’s recognized more readily benefits from a sense of familiarity and confidence in the purchase decision. Some less so, like the fact that the brain evaluates items all the time (like it’s constantly window-shopping) even if it’s not going to make a purchase. A fact that suggests that marketing and branding are long-term projects in their effect which is why they need to be clear, persistent and consistent.

The most telling fact to come out of these studies, and one that is retrospectively obvious, is that the brain goes through the exact same permutations of evaluation and judgement before making a purchase decision in a real-world and digital scenario. The change in medium plays no significant role.  

Ultimately, a purchase decision activates the brain’s reward system; either because it solved a problem we’re facing or because it gave us an additional status item we possess. In either case there is a personal value weighing that comes into play which estimates the value of the item or service to you. This is exactly the same, as a process, for immaterial experiences as it is for material things the sensitivity of the price point comes into play at this junction.

Obviously, in a short piece like this, links not withstanding comprehensively covering this field is a challenge but, if we are to take something away from it all it is this: keep things real. Don’t hype, over-promise or lie (and yeah, we need to say that now). Strive to serve (even if you’re selling Rolex watches). Treat your prospects like they have value themselves (don’t try to play on their fears, insecurities of uncertainties).

In the long term that is the marketing strategy that has a future and the branding one that finds a true audience.