Why We Buy. What are the factors that push us to decide to buy something? What tricks are sellers playing to make you take money out of your wallet to buy the products they sell? Speaking of shopping, it has origins thousands of years ago, and everyone has had this experience. It's an activity we can't live without in our daily lives. To this day, everyone needs to buy things. If there were no sellers, no buyers, no stores, no restaurants, no places to spend money, what would we be living for? But have we ever thought about the psychology and reasons behind these purchasing decisions? Why do markets have a place to check in luggage? Why do stores have shopping baskets scattered everywhere? Why does the checkout counter have queue lines? Why do clothing sellers shout, "Welcome! Please come in and have a look"? What makes everything become like this? And what influences your purchasing decisions?
The book 'Why We Buy' will explain these questions. They spend a lot of time investigating the activities and habits in human shopping. They study the amount of time you spend shopping, they study the path you walk in a mall, they study the type of packaging and analyze the use of your different senses that influence purchasing decisions, and so on. As a business owner or a person in business, you need to know these techniques to attract customers, provide convenience, and create a good atmosphere for buyers. This book was written and finished in 2004, was a bestseller for 13 consecutive years, and has been translated into more than 27 languages. It has had a great influence on business owners in the retail sector around the world. The author of this book is the CEO of a market research company named Paco Underhill. For more than 20 years, he and his team have conducted in-depth research on the behavior of people's shopping habits in malls, marts, large shopping centers, etc. He has summarized it into theories combined with good, practical applications that every business owner should know. There are four important points in this book that I will summarize for you.
First, what secrets do stores have that you don't know? Second, how do different people have different shopping habits and behaviors? Third, what are the factors that motivate you to decide to buy something? And fourth, it talks about the trend of online shopping and what it will become in the future. Let's listen to the first point. What special secrets do the stores you go to every day have that you don't know? You go shopping in marts or big malls every day. Have you noticed that the layout and decoration of those stores are all similar? Things like the arrangement of the entrance, the checkout counter, the product shelves, and advertising banners. What is the reason that makes these stores have such similar arrangements? The author believes that these stores have become this way because of the shoppers' habits. It's the activities and habits of the shoppers themselves that have made retail stores and malls what they are today.
Have you ever wondered why shopping baskets are placed scattered around clothing stores? For example, you walk into a clothing store. At first, you only intend to buy one t-shirt. After you find the t-shirt you want, you suddenly see a pair of jeans that would match that t-shirt perfectly. Then you go to the fitting room to try them on. Walking towards the checkout counter, you suddenly see a pair of sports shoes on sale for 50% off. You think, "I have to buy something with such a special discount. If I don't buy it, I'll definitely regret it later." After getting those items, you suddenly see a stylish jacket that would look great with the jeans and t-shirt. But just as you're about to try it on, your hands are already full of items. You're about to decide to go check out, but coincidentally, you spot a shopping basket nearby. You put all the items into the basket and continue to browse for other things, in case you find something else you like.
Don't forget, before you entered, you only planned to buy one t-shirt. Now with a big shopping basket, who knows how much money you'll spend today. What you haven't noticed is, why don't they put the shopping baskets right at the entrance? Why are they scattered all around the store instead? Because they know you don't intend to buy much. If they pushed a shopping cart at you the moment you walked in, you wouldn't need it either. And placing them scattered about is not a coincidence. When you enter a store to shop and you already have items in your hands, it's difficult to continue shopping. First, your hands are busy holding things. Second, your mind tells you, "You've bought so much already, it's enough, time to stop." But if these items are in a shopping cart, you will happily continue shopping without even realizing it. Similarly, at the entrance of some stores, there are lockers for you to store your belongings. This is to free up both of your hands to make it easier to shop. Here's another example. Why do they tend to arrange the items they want to sell the most on the right side of the entrance to a supermarket?
The author has studied that in countries where people drive on the right side of the road, they also tend to stay to the right when walking in a store. Therefore, they place the items they want to sell the most, the high-profit items, on your right side, making them easy for you to see. You might ask, "Why not just put all those items right at the entrance?" You'd see them as soon as you walk in. This is because when shoppers first enter, they haven't decided what to buy yet. When they first enter, they are just browsing. If you put it right at the entrance, shoppers will likely walk past it. This is a human habit. You are the same. When you first walk in, you probably don't grab a shopping cart immediately. You have to walk four or five steps first. That's why at the very entrance, they put small, less essential items. The important items, the ones that are more profitable, they place them on the right side after you have walked a little further in. Let me give another example.
Why do checkout counters have queue lines for people to line up? This is because shoppers don't want to be disturbed or bumped into while checking out. The book gives an example: in a retail store, a customer was choosing a tie he liked. But because the aisle was too narrow, the person choosing the tie was bumped into once or twice by people walking by. And when he was bumped and pushed too many times, he changed his mind, decided not to buy it, and left. It's the same at the checkout counter. If the checkout line is crowded with people bumping into each other, shoppers might get frustrated and abandon their purchases. That's why they draw lines to have people queue up to avoid collisions between shoppers. This is the first point we've discussed. The fact that stores or malls have the appearance they do today is because of the habits and behaviors of shoppers themselves. The placement of items, the arrangement of shopping carts, storage lockers, and the design of the checkout area have become this way because they want shoppers to spend more money and more time. Now, let's move on to the second point.
Different people have different shopping habits and behaviors. In this book, the author divides shoppers into four different groups: men, women, the elderly, and children. Let's talk about the first group: men. Compared to women, men can be said to be the type of people who don't spend much time shopping. Before buying something, they have a clear goal and spend the shortest amount of time possible in such places. Most of the time, men go straight to their target, buy the item they want, and if they can't find it after looking around for a bit, they will leave. Compared to women, men have two significant differences. First, they want to understand the product by themselves without being disturbed or asked by the seller. For example, before buying an electronic device, they like to read the detailed information and instructions on how to use the product they are about to buy. Another thing is that men prefer certain products like sports gear and electronic gadgets. Now that we've talked about men, let's talk about women.
If there were a vote to choose the people who love shopping the most in the world, I think among these four groups, the one who would get the most votes would be women. Women enjoy buying everything they need. They also buy things they don't need. This is a truth we all know. Most of the time, they like to meet up with two or three female friends, walk around the market, talk, and shop at the same time. This kind of scene rarely happens with men. Another thing, before buying anything, women consider it very carefully. They look at the quality and the price, but they don't pay as much attention to the efficiency or the warranty period. That's why you often see women standing and choosing the items they need very meticulously. And they bargain hard before they decide to buy. This kind of behavior is also rarely seen in men. Men choose something that's good enough and they're done. And often, when they buy something, they are easily tricked by the seller. Another thing, women care a lot about the atmosphere when they shop. They are selective about where they go. Men, on the other hand, are not so picky.
Anywhere is fine as long as they can find what they need. They don't care much about the shopping experience. As for women, they have many questions but are very patient. She can sit in one place for a long time to understand a product she needs. Women not only need a place where they can buy everything they need, but they also want a place where they can walk around freely without being disturbed and can discover new and different things. If there's a place for her to sit and rest for a bit and think about what to buy next, that's even better. After talking about women, let's talk about another group: the elderly. If women are the top-tier shoppers, the elderly are definitely in the second tier. Why do I say that? The reason is simple. It's because the elderly have a lot of free time. They have more time to go shopping. So what special characteristics do the elderly have that are different from other groups? They have two main characteristics that are different from others. First, they like things that are big and easy to see.
The eyesight of the elderly is not very good. Therefore, they don't like things with small letters or colors that are not vibrant. Second, the elderly may also buy things for their third generation. This means they buy for their grandchildren, such as toys, food, and clothes. The last group we will talk about is children. In the past, we thought that children were unlikely to participate in shopping activities. Only their parents or older people would buy things for them. Therefore, you probably think that children don't have much influence on purchasing decisions. But in reality, that's not the case. We not only need to pay attention to children, but children are an important factor that can directly influence the purchasing decisions of adults. For example, a mother brings her young child to the market to shop for groceries. If that market doesn't have a play area for children to play freely, or if there isn't a shopping cart with a child seat where she can safely put her child in one place, so she can shop as she pleases, she probably won't go shopping at that place. On the other hand, if the mall has thought this through a little and provides a stroller or a play area for children, parents will definitely spend a long time shopping without any disturbance.
Why is it that in some large supermarkets, the shopping carts have a seat for a child, making it easy for an older person to go shopping? That's it. We now know the specific characteristics of these four groups. So what are the benefits? Of course, there are. You can organize your strategy, decorate your store, or package your product according to the needs of different people. Do something to attract their desire to buy. For example, men like to find out about products on their own. So if you sell products for men, you can write more detailed instructions or user manuals, which is better. Women like to take their time when shopping. So if you open a store for women, you can set up a seating area for them to rest and relax, giving them time to consider what else to buy. The elderly like products with packaging that is easy to see. You can design your packaging with large letters and vibrant colors that are easy to see. Children like to buy snacks and toys. You can place them on the lower shelves, making it easy for children to see. Even if they don't have money to buy, they can pester their parents to buy for them. This is the second important point in this book.
Different groups of people have specific characteristics, behaviors, and habits when it comes to making a purchase. Arranging a retail space according to the preferences and habits of your target customers can certainly increase sales. Next, we will move on to the third important point. What motivates us to make a purchase? At the beginning, we already talked about how the store environment and decorations we see today are the result of adaptations to fit the habits and behaviors of shoppers. They arrange it according to the preferences of their target customers. But the unanswered question is, what makes people decide to buy? Why is it that someone who intended to buy a regular phone ends up coming back with an iPhone that costs thousands of dollars?
Why is it that at first you only wanted to buy a t-shirt, but you came home with a big shopping cart full of things, carrying so much you could barely manage? The author of this book doesn't have all the answers either. But through his research, he has summarized some techniques that can encourage customers to decide to buy. He has come to the conclusion that to attract people to buy, you need to appeal to all five of their senses. If you can do that, the rate of purchase decisions will increase. For example, fragrance appeals to the sense of smell, beauty appeals to the sense of sight, deliciousness appeals to the sense of taste, and pleasant sounds appeal to the sense of hearing. Why do most people, before buying something, need to feel the texture of it before making a decision? This is because feeling the texture is one way to provide information to the brain about whether to buy it or not. Things like the texture of clothes, towels, or bed sheets, we need to feel them first before we can make a decision. Studies have found that a towel is felt an average of six times before it is purchased.
This act of touching and feeling can actually increase a person's purchase decision rate by several times. That's why large clothing stores like Uniqlo, H&M, Zara, etc., which are major apparel brands, encourage customers to try on their clothes. Apple has many retail stores to let users try out their products before deciding to buy them. Big cosmetic brands around the world, like SK-II, YSL, L'Oréal, etc., have sample-sized products for users to try. After talking about the sense of touch, let's talk about the sense of smell, which is the nose. Scent is also an important signal that sends messages to a person's brain. A bad smell makes people want to stay away and not get close. A fragrant, sweet smell makes people feel refreshed and want to stay nearby. This principle is also used a lot in cosmetic products and food. Products with a good smell attract people's attention and are bought more often. For example, when you walk past a cake shop, its sweet smell can attract you to come in and buy something. Things like shampoo and body wash never forget to add fragrant ingredients to attract the customer's sense of smell. Coffee shops start brewing coffee right in front of customers. Restaurants start cooking food right at the dining table. All of this is to allow the human sense of smell to experience the fragrant aroma, to create a desire to buy. Finally, let's talk about the most important part, which is the sense of sight, our eyes. Beauty is what everyone desires.
Men want beautiful cars and beautiful women. Women want beautiful handbags and beautiful shoes. Whether something looks beautiful or not is a very important factor that drives a person's desire to buy. Therefore, besides designing the product to look beautiful, some stores add more lights and mirrors to make the display of their products look even more beautiful. In clothing stores, they put up mirrors and arrange the lighting to make you look beautiful when you try on the clothes. All of these are small techniques used by sellers to encourage you to make a purchase more often than before. To summarize the third point, the five senses of a person are important and direct messengers to the brain about whether to buy a certain product or not. Using any method to appeal to a person's five senses can increase the likelihood of them wanting to buy. Below, we will talk about online shopping. What is the trend for online shopping? The growth of the internet has caused the online retail industry to grow rapidly. But why hasn't it been able to replace offline shopping? As you all know from the context of the world, the internet has changed everything. And it has also had a significant impact on the way and behavior of making purchases, from shopping at markets to everything being available on your phone. Compared to traditional retail, online shopping has many advantages. For example, online offers more choices.
We can find the products we need in just a few seconds. It saves more time. No matter the time, weather, or which country the product is from, you can order it from anywhere in the world. More and more people are becoming knowledgeable in using online shopping platforms. And the methods for payment and the logistics infrastructure for delivery are becoming easier day by day. On special days like 11/11 of Alibaba and Black Friday of Amazon, they are designated as online shopping festivals. There are hundreds of millions of dollars in orders placed in a single day. This kind of situation cannot happen offline. No mall in the world can achieve such massive sales. It only happens on the internet. The author mentions that online shopping has advantages over offline shopping, but there are some aspects that online shopping cannot provide to users. For example, the experience of shopping, the act of smelling, feeling, tasting, or trying things on. These aspects, online shopping still cannot yet provide. In summary, currently, large companies like Amazon, Alibaba, etc., are trying to create new technologies to make their platforms more attractive.
For example, using AI or VR systems to let people try on clothes online. But however, in the near future, online shopping still cannot completely replace offline shopping. The key points from the book 'Why We Buy' that I have summarized for you today, let's end it here. Let's do a quick recap. First, we talked about some secrets that we didn't pay attention to, which exist in the stores or malls that we frequent. The layout and decoration of these stores, which have the appearance and form they do today, are due to the habits of users, and to meet the needs and provide convenience to customers, these stores have been transformed into what you see today. Then we talked about four groups of people who have different habits and preferences: men, women, the elderly, and children. After that, we found out what motivates people to want to buy things. How do the five senses of a person have an influence on the decision-making and desire to buy? And the last point, the author mentioned that despite the growth of the internet and online shopping platforms being very convenient, it still cannot replace shopping offline.
This is because online shopping cannot provide customers with a hands-on experience, such as feeling, smelling, trying on, or seeing things in person. If you want to learn more about online retail platforms, which is titled 'The Everything Store,' that describes Jeff Bezos and the era of the king of online retail, the biggest in the world, which is Amazon.com.