Why do people buy what they buy?

“Here’s a good question: Why do people buy what they buy?”

Marketers of services presume that purchasing decisions are rational. Prospects will weigh the costs and benefits of several services before selecting the best option. The instance of Visa vs. American Express, on the other hand, suggests otherwise.

Visa provided more benefits and had lower expenses than American Express, making it the more sensible option. However, the prestige and privilege of membership attracted nearly 25 million people to American Express. As a result, it's critical to avoid solely appealing to a prospect's logic.

When it comes to making judgments, prospects also rely on familiarity. Prospects are more likely to choose your firm over others if they learn more about you through traditional advertising.

Which one you are more likely to choose?

Due to a human feature called attribute forgetting, even being well-known has been shown to reduce familiarity. When you hear a poor evaluation of a firm, you tend to forget the negative information (attributes) and simply remember the company name over time.

As a result, familiarity is a highly effective tool. This also has to do with risk, because prospects will favour a known service over unknown service possibilities when choosing a service. In essence, people will not choose the service they desire the most, but rather the one they fear the most in order to prevent a negative experience.

What should you do if your rival knows more about your prospect than you do? The greatest strategy is to use another bias that people have: The Recency Effect.

The Recency Effect is successfully used by companies who present competitive pitches. They make sure they are the last company to arrive, then follow up with a powerful and well-planned follow-up to win the business.

People do not look to make a better choice while picking a provider, according to human decision-making. They simply don't want to make a mistake.

The more similar your service is to others, the more significant the differences become. Prospects will seek for more insignificant distinctions rather than meaningful differences. This could include things like reception décor, business card design, and brochure quality. Showing your flaws (or warts!) can also help you stand out from the competition. One of the most important aspects of marketing a service is to promote yourself as trustworthy and honest.