Necessity or Emotion: What Makes People Buy

A question all businesses small and large try to answer: what motivates buyers to spend on a product or service and subsequently how can they garner that share of consumer spending? Indeed, a question of paramount importance, after all, a business or brand lacking sales cannot endure for long.

The share of available capital the consumer is willing to part ways with is finite, and in today’s current economic landscape, the consumer is stretched thin. Currently consumer debt in the United States is at the highest level all time at over $17 Trillion. All the more reason top companies invest countless hours, money and resources into research and analysis of markets to which they intend to sell to. With less overall capital to spend among the average consumer, the competition between brands and service providers has become fierce.

In order for a business to gain a share of the highly contested discretionary spending of the consumer, it must first understand what factors contribute to an ultimate purchase of a particular product or service.

A person will acquire something based mainly on two key factors: Necessity and Emotion.

Let’s explore both briefly….

The first, and most effectual of these in causing spending will be the element of emotion.

Emotions, there are many; love, joy, greed, jealousy, pride, boastfulness and, as much as one would like not to be the case, influence a majority of our life decisions large or small. Emotion not only dictates how we act outwardly, it also has a profound impact on our spending patterns.

People will spend money to make themselves satisfied, raise self-image or esteem, keep up with the latest trend, or compete within their social circle. A new wardrobe piece, a lavish night out, new car, we’ve all done it, and that is not to say always irresponsibly, saving up for an item or experience, although prudent, is still and emotionally driven expenditure.

The second of these is necessity. What the consumer needs whether to sustain them in day-to-day life or in times of hardship.

Necessities that help us endure daily include food, power, gas, healthcare, medicine, and housing to name a few. Necessities account for the majority of household spending, as well as discretionary expenditures. One of the most common examples of this could include the upgrading of smart phones on a frequent basis, all necessary? The need of having a smartphone in today’s society is not to be questioned, however the latest iteration of the iPhone Pro Max…? that’s up to the consumer to decide, and decide they have, with over double the iPhone sales coming from the Pro Max compared to the lower models.

Which leads to the next point, Necessity and Emotion in consumer spending does indeed intersect. We can take the same example as before: the iPhone 16 does relatively the same necessary functions of the iPhone 16 Pro Max, however, a larger screen, storage, more powerful camera and all the subtle extra features, sometimes a necessity but most the time maybe gives the buyer ability to compete in their social circle or maybe an esteem boost that they have the top tier iPhone in their pocket.

Another popular example, the Taylor Swift phenomenon that swept the nation not too long ago. Fans saving by not spending on common necessities or going into debt to go watch their favorite artist in concert.

I am not in any way disparaging any of these instances, the artists, fans, products or consumers. In fact, quite the opposite, it’s admirable what Apple and indeed the Taylor Swift brand have done by displaying a masterclass in branding and marketing. These executives and producers have spent millions on resources, analysis, design, research and countless hours to harness the consumer’s emotions even up to the point these purchases become a necessity so serious consumers have begun to sacrifice their financial wellbeing.

The goal is for your brand is to do, in a sense, the same thing in finding out how your product can connect with both the emotional and practical side of the consumer.

The secret, being able to truly build value.

Building value is not simply putting an item for sale, or selling it cheaper than your competitor, it’s the ability to offer the best quality of service or product, along with getting in touch with a consumer’s emotions. Have them go from wanting something to needing it.

The key is to understand your customer in the marketplace you are trying to penetrate. What makes them buy? what are their pain points? what products on the market currently are they dissatisfied with or what about them could be improved and how?

We’ve all heard the cliche necessity is the mother of invention, well, find what your customer needs, is missing or wants (emotion) to get out of the current experiences or products they are buying. There’s the necessity and your product or service now tailormade for the customer is that invention they need. That’s the first the first step in building value.

Along with this, market research, surveying, trials, and often over-looked; the keen ability to review candid feedback honestly. Don’t forget, you work for the customer, not the other way around, what they say goes; consumers are fickle and will spend where they feel satisfied.

In summary, building the ability to market your product or service to the emotions and needs of the customer is essential for sustained success, attained through forging a solid connection with the consumer by being truly in-tune with the marketplace.

For personalized guidance for your business on this topic and others contact us.

- Vincent Calace

Founder & CEO Venture Business Development