Chapter 2. Purchasing Strategies

We tell ourselves we have a purchasing plan as we head out to the store, shop online, or even just window-shop. But how many of us know our strategy? Better yet, how many of us stick to it?

Matching expectations.
We always tell ourselves we know what we want when we face a decision to buy. Our expectations often influence our choices—this is known as “expected utility”—so we tend to choose brand names or their subsidiaries because we perceive them as better than unknown brands. Similarly, if we’ve had experience with a product in the past, we tend to remember its value or quality; “remembrance utility” often influences our future purchases. If you want to eat pizza, you are more likely to go to the place that welcomed you warmly and attended to your desires in the past, even if their pizza was not as delicious as the other restaurant, where the staff was rude.

Measuring the significance of our goals.
We weigh our goals against what we think is best suited for us. When we assess this important factor, we often rely on the personal input of those we know and love, even though their preferences and needs may differ from ours. At times, we get so invested in other friends’ experiences that we end up ignoring professionals who can help us narrow down our options, which eventually leads to disappointment.

Technology has made it so easy for us to conduct extensive social research on a product before purchasing it. Other people’s tastes are influenced by their backgrounds and circumstances, which may be entirely different from yours. Of course, we are also swayed by a product’s packaging and advertising. Some companies pay bloggers to write favorable reviews of their products, so we should double-, triple-, and even hundredfold-check the information we find online. This is called “Social Proof,” and we shall discuss it later on.

Frame or assess your options.
Our personal “mental accounting,” also known as “psychological accounts,” influences how we frame our options. Mental accounting is a cognitive process in which we track our decisions to influence future ones. Of course, some of our college friends go to college because they want to earn a degree to secure a good-paying job, to appease their parents or loved ones, or simply because they are interested in a subject-matter specialization.

Align each of your choices with your goals.
Choices should be aligned to fit needs. Does the product satisfy a craving or need? If it does, then you are on the right track. If it doesn’t, perhaps it is time for you to reevaluate your options as objectively as possible.

Modify your goal.
Looking forward to how you will use the product or service in the future comes into play when you are still assessing your decision. This means you are interested in how your decision will satisfy your current and future needs. Brand may not be as important at this point.

Select the best.
Go for the best product or service on the list after evaluating all your options. This is a no-brainer, right? If you evaluate your options with an open mind and without bias, you will end up selecting the one that is best suited for you and/or offers the most satisfaction.