How important is shoppers’ psychology?

WITH the constant evolution of modern technology, companies are able to acquire more information in order to understand the psychology of potential customers. It is important to get to know customers and the factors that influence their behaviour and shopping decisions.

Research shows that people get a boost in oxytocin levels (also known as the love hormone) when they receive a coupon, so they feel happier, more relaxed and less stressed. Udemy, for example, takes great advantage of this strategy when it offers its famous, occasional 90% off Udemy discounts for many of its courses. Udemy is not the only one, however – Groupon, Amazon and even eBay use this strategy daily to attract clientele.

The Nicosia model can help understand the decision making process in the human brain. The Nicosia model consists of four phases.

  • Phase 1 – The process attitude formation

  • Phase 2 – Evaluation

  • Phase 3 – Customer behaviour

  • Phase 4 – Feedback

Decision-making is influenced by many factors, including colours, sounds, signage and so on. For instance, the following figures show some factors that influence online shoppers’ decision-making.

  • 87% – Price

  • 80% – Shipping cost and speed

  • 71% – Discount offers

  • 71% – Variety of options in stock

  • 68% – Trustworthy reviews

  • 68% – Flexible or free return

  • 67% – Brand recognition

  • 65% – Simple site navigation

  • 53% – Tailored selection of products

  • 46% – Mobile-friendly webpage

The infographic below shows more figures and interesting facts that show online and in-store shoppers’ psychology.

 

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