Willingness To Pay: The Psychological Aspect of Purchase In Marketing

Introduction of Willingness to pay with Example?

Willingness to pay is the highest price that a consumer is willing to pay for any service or product. This is represented by a price range. While the potential consumer is likely to pay less than the threshold, this is also very important to understand that in most cases, the customers will not pay the higher price. Willingness to pay may vary from consumer to consumer. The variance is mostly caused by differences in the population of the customers, which are classified as intrinsic or extrinsic.

Intrinsic differences:These are the characteristics of the customers that may not be known by the seller without asking the customers directly. Intrinsic differences are difficult to observe and these are known as “unobserved differences.” The risk tolerance of individual customers, level of passion regarding any product, and desire to fit in with the others are examples of intrinsic differences, which can impact the willingness to pay.
Extrinsic differences:These are the characteristics, which are observable. These are the factors, which the seller can determine generally about the customers without asking the customers directly. The age, gender, education, income, and where the customers live can be the extrinsic differences, which also impact the willingness to pay of the customers.

This is very significant to note that the willingness of a customer to pay the price for any service or product is not static. Moreover, to the intrinsic and extrinsic differences, various factors there can cause the customer’s willingness to fall or rise.

What are Psychological factors that influence consumer purchasing?

Four psychological factors are there, which influence customer behavior such as motivation, learning, attitude or belief system, and perception. Motivation speaks to the customer’s internal needs. Understanding how to motivate the consumer is a powerful tool. The way the seller targets the consumer perceives the world or learns about the service or product can influence the behavior of the customers. The belief system has the ability to influence all psychological factors. For instance, some of the customers learn the best product visually. The professional image and pictures of the service or product can communicate a thousand words about the belief system. It explains why the images and pictures of the products are significant for marketing purposes. Customers make the purchase decision each day. When the customers may a decision regarding a product or any service, they are thinking about solving the demand and needs. That demand can be driven by various factors related to marketing. All the factors can be tied back to the ways an any small business can leverage the storefront or the website for increasing the probability of the sale. Keeping all the factors in mind while designing the marketing materials is very important.

What is a Psychological purchase?

In the psychology purchase, the customers have an emotional reaction to what the sellers are telling them. This leads the customers to move forward. After crossing the bridge, the customers will be able to use the logic for justifying their purchase. Purchase psychology is the area of study, which combines the insight of communications, psychology, and economics. Purchase psychology also seeks to understand how the customers form their beliefs regarding any brand and the products and how those feelings translate to the purchase behaviors of the customers. The purchase psychology represents the evolution away from the simplistic ideas regarding the motivation of the buyers as well as the value of company-sponsored marketing. Psychological purchase is very important as this helps the businesses in developing a reputation as engaging and authentic by meeting the expectations of the customers. Businesses can use purchasing psychology for studying strategic problems from various perspectives as well as can create brands and products, which offer effective solutions. This saves money and time for the business as they embrace the business practices, which reflect how the customer makes decision-related purchasing rather than just guessing about the thought process. Psychological purchase is very important as more marketing takes place online, where the customers can review and reach the businesses and can bypass the traditional advertisement.

What are Psychological needs in marketing?

Before customers make the purchase decision, they recognize that they have unsatisfied needs. This need can be psychological or functional. When the psychological factors come, this can be said that the psychological factors influence the customer decision. People can refer to the working of the psyche or mind such as learning and socialization, beliefs, attitudes, and motivation. Psychological needs are the first level of Maslow’s hierarchy. All living beings regardless of maturity level possess psychological needs. The psychological needs are omnipresent as well as recur throughout nature.

What are the five Psychological variables of buying behavior?

The followings are the five psychological variables of buying behaviors are:

Motivation: The level of motivation influences the customer’s buying behavior. This is explained in a well-manner by Maslow through the need hierarchy theory that comprises the basic needs, social needs, self-actualization needs, esteem needs, and security needs. Security needs and basic needs are more pressing needs than other needs.
Perception: The customer’s perception of the specific brand and products also influence the buying or purchasing decision. Perception is the process through which the customers can select, interpret, and organize the information for drawing a meaningful conclusion.
Learning: Learning depends on the intention, knowledge, and skills of the individual customer. The skills of the customers are developed through practice while the intention and knowledge are acquired with experience. There can be cognitive learning or conditional learning.
Belief and attitude: Individual customers have some attitudes and beliefs toward the product or service on which they make the decision related to purchasing. The beliefs and attitudes are the tendencies for responding to the given product or service in a specific way and these also make the brand image, which influences the buying behavior of the customers. In this way, the marketers try to understand the beliefs and attitudes of the customers and they modify them according to various marketing campaigns.