Why Do We Buy Things?

Have you ever wondered why we buy the things we do? For a society of consumers, it’s easy to presume that we must have an answer to this simple marvel. However, that is rarely the case. We believe things for practical and functional reasons, but we’ve also purchased meaningless stuff more often than we should.

Generally speaking, people have no idea why they buy things. Worse, we find ourselves buying things for unclear emotional reasons and end up regretting the purchase later on.

Answering this age-old mystery took rigorous research and tons of observation by a team of researchers led by Paco Underhill. For over three decades, he has closely watched consumer behavior across a variety of retail stores. In 1999, Paco had the answer all documented in his best-selling book.

Amidst all this wondering, though, what is the more profound relevance of understanding the reason why we buy?

Simple. It gives business owners access to the minds of their consumers. When you understand your audience’s behavior, you can frame how you do business toward that angle.

Underhill’s book paves the way for you to understand your customers’ buying decisions. Do you want to learn more? Keep reading.

Why We Buy - The Science of Shopping by Paco Underhill

Before we dig further into this topic, there is one matter we must first address: who is Paco Underhill? What makes him the qualified authority to uncover the secrets behind your customer’s psyche and buying behavior?

Knowing the brain behind the operation is just as important as the operation itself. It keeps the topic in perspective and gives us peace that the information we digest is reliable and true.

Who is Paco Underhill?

Paco Underhill is a Behavioral Analyst, Founder, and CEO of Envirosell, a behavior research and consulting firm. For many years, he has been studying consumers’ shopping behavior in retail environments. All his collated data were transcribed and published in his 1999 book “Why We Buy: The Science of Shopping.” He has also written other books, including “Call of the Mall” and “What Women Want.”

In “Why We Buy,” Underhill’s team embarked on a mission to answer the question: Why do we buy things? The book looked into the psychology behind purchasing decisions. Underhill uncovered the factors that drive consumer behavior through observations and surveys of shoppers in malls across America.

His book is unique in its seemingly double-edged thrust to the business landscape. 

How? 

For one, the book offers a deeper understanding of shoppers' buying behaviors. It also teaches business owners how to create the most effective shopping experience that captivates their target market. 

This article will look at six key ideas outlined in his book. Our complete guide aims to offer valuable insights to shape your store experience for your consumers. 

However, realistically speaking, critically dissecting and implementing his teachings takes work. You’ll go through a trial-and-error series before finding the best application for your business. Unless, of course, you want help from someone who’s been there.

For over 30 years, I’ve been assisting businesses in aligning their culture, brand, and buying experience to cater to why customers buy. When you want to make it easier for sellers to sell, you need to know how buyers buy. Book a call if you’d like help figuring it out.

6 Key Ideas from the Book

Here’s one question you might have. If his book “Why We Buy” is about retail stores, how does it relate to essential home services? 

Don’t worry. Buying behavior is universal – a predictable science, not a tactic. We’ll show you how Underhill’s concepts link to the residential home services industry.

Let’s get right into them.

1. Every aspect of your company influences the buying behavior of customers

One key point Underhill emphasizes is the importance of observation in retail success. He delves into the science behind how customers behave inside a store and advises retailers to keep close attention. These behaviors could pave the way to attracting more customers and increasing sales.

He argued that the significant details down to the most minute aspects of a store influence a person’s buying behavior. From the layout of the parking lot to the width of the aisles, these factors could affect how much customers will purchase. Understanding and catering to these subconscious factors can help entrepreneurs create an optimal shopping experience for their customers.

For example, they observed that narrow aisles in stores encouraged impulsive purchases among customers because they felt crowded and rushed. Alternatively, wider aisles made customers feel more relaxed and in control. This makes them less likely to indulge in spontaneous buying.

How does this concept relate to the essential home service industry? If you’re a plumber or an HVAC contractor, you may want a physical store for customers to browse through. However, “Why We Buy” principles can still apply to your business in other ways, like how you curate your inventory, protections, prices, and payments.

Consider this, if you will. 

Customers behave differently, NOT because of the aisles themselves. It’s what customers feel that ultimately influences their buying behaviors. The aisles are merely instruments used by retail stores to render those emotions. What are ways to make your audience feel natural proximity to commit to impulsive purchases atop their primary purchase?

Simple. Savings.

When you position the additional purchase as a means to save money today, you're making it convenient in money, effort, and time to say yes to the bump, particularly when the offer is a no-brainer value proposition.

The first sale is always the toughest in essential home services. Getting an initial yes is hard, but when you do, the second yes is easier to get. Instead of saying, “do you want me to fix this other thing I see that’s broken,” or worse yet, lumping the home run sale into the initial sale, try this instead. 

“Mrs. Jones, if you could come over here and take a look here at what I found. Do you see how this piece here is about to fail? Since I’ve got the unit apart right now, and the part on the truck, I’d like to get it fixed for you now so it doesn’t become your next problem. I can save you some money today since I already have it all apart and have the materials I need on the truck. What should we do?”

In “Why We Buy,” Underhill stresses that all details matter when influencing buying behaviors. That means everything, including your website, social media, customer service policies, price and selection process, and all other aspects that come into play. Ensure that all of these business touchpoints are at their best.

2. Set the ideal environment for the sale; the layout of the store is crucial.

Another interesting point the book highlights is the importance of store layout. Retailers need to direct customers and create an environment that encourages purchasing. Underhill and his team found that customers typically navigate stores in a specific way. If the layout does not consider this, entire departments may not receive foot traffic.

How?

For example, placing “impulse items” like candy or magazines near the checkout line dramatically increases their likelihood of being purchased. He also notes the importance of creating a pleasant shopping experience, including elements like scent and music. While these details might not be relevant to residential home services, there are nuggets we can learn from Underhill’s discovery. Allow me to explain.

Websites are examples of modern-day store layouts. In today’s business landscape, most businesses already have an online presence. An organized and easily navigable website with streamlined appointment booking processes can significantly improve the likelihood of conversions. A well-tended website can do that if you need to set an ideal environment for conversions to happen.

The secret is to think of all your online and physical assets as floor layouts.

Spruce up your online presence, such as your website and social media channels. Make sure that these online assets are actively posting relevant information daily. The homepage should feature all the necessary details of your business. Hiring a Content Manager can help you connect with people engaging with your business.

If you have a physical store, ensure the environment’s ambiance also caters to visiting clients. Conducting sales calls in spacious offices and offering refreshments softens customers up to doing business with you.

The key here is setting the ideal environment for purchasing. After all, will you even bother entering a disorganized and messy store? When stores take care of themselves, we can rest assured that they’ll also take care of the customers.

One of my obsessions in the Essential Home Service space is with how we present solutions and prices. I envision a simple presentation whereby a technician could pull out a simple printed sheet and show people a clear, concise range of options, starting with the product and protection, and finishing with the price and payments. 

Like a well-designed furniture store, art gallery, or even museum, when you take your buyer on an easy-to-understand journey, you make it easier for your sellers to sell. 

Consider the demographics of your audience.

One of Underhill’s primary focuses in “Why We Buy” is demographics. His book delved into the varying shopping styles of men and women. Men, according to him, are characterized by their impulsive hurry, which means they like processes to be quick and easy. Alternatively, females have more attention to detail and want shopping to be a leisurely, enjoyable experience.

He highlights that retailers often mistake one gender as the primary shopper for their household. In reality, both play important roles. While a disparity exists, successful retail stores cater to both buyer types’ needs. Limiting your demographics bottlenecks the audience who enters and buys from the store.

The point is that appealing to all prevailing demographics matters.

Keep in mind that demographics don’t only account for gender. In the essential home service industry, you will need to consider other factors that may affect the buying decision, like FICO score, age of real estate, and rental units vs homeowner-occupied residences.

How then, do we apply these principles in essential home services?

Targeting demographics is mainly attributed to last-touch advertising. As entrepreneurs, we must understand our target market and tailor our approach with the broadest appeal. This means leaning into universal truths that all demographics would tend to agree on. 

HVAC businesses will want to highlight their air-conditioning services during the year’s hottest months, and heaters as it becomes cold. But do you know what’s more universal than telling people what you do? 

Why you do it. 

When you FEEL right to your potential buyer, you get the call. People will opt to shop with the brands they feel they know, like, and trust. So do that in your advertising until it’s time for them to go shopping for what you sell. 

That means standing for what’s right, willingly taking the hit when you don’t get it right, and fighting for the underdog. 

3. Touching-and-feeling potential purchases and swift customer service make the buying process more enjoyable.

Underhill’s research suggests that being able to “touch” and “feel” potential purchases makes buying more satisfying. Allowing customers to interact physically with products enhances their experience and increases the likelihood of purchase.

Think about it; there’s a different level of gratification when you buy products from brick-and-mortar stores rather than online. For one, you can physically assess the quality of what you buy. Secondly, holding the item makes you want to buy it immediately. For example, if you had access to physically showing your indoor air quality products to a prospect, you would see a marked increase in sales. 

But how does this work in today’s business landscape? 

I’ve seen well-conceived, fully operational demo trucks, through to wisely inventoried parts vans, help make the sale with a curated inventory of pre-selected items that instill confidence in the buyers. 

You can do the same in your business. Offering to complete the solution in the quickest way possible. From touch and feel to installed and working, creating a convenient way to reinforce the sale helps close more deals every time.

When you understand why people buy things, you can develop advertising campaigns and sales strategies that are more likely to close more deals at a higher average ticket and profit. 

4. Most shopping habits are similar all over the world.

A key point highlighted in “Why We Buy” is the concept of shopping behavior as universal. While cultural differences may affect specific preferences and habits, overall, our approach to shopping is relatively consistent. 

How did Paco’s team find out about this?

To cement and complete their research, Paco and the rest of Envirosell expanded across various countries to test the hypothesis. They went to Europe, South America, Mexico, Japan, and India to understand the nuances of many cultures’ customs. More importantly, to know how these cultures influenced people’s buying behaviors. The business discovered that most shopping habits are similar all over the globe.

The likelihood of global expansion is unrealistic for most essential home service businesses. At most, your target market will be neighboring cities or states within North America. Knowing the buying behaviors across cultures gives entrepreneurs the data they need for a successful business expansion.

Their research shows that while cultural differences affect purchase decisions, overall shopping behavior remains constant. If shopping behavior is almost similar across the globe, then there are not many differences between states and cities. Regardless of culture, people have a fundamental need for pleasure and satisfaction in their shopping experience. Equally so, they are vigilant about avoiding pain, punishment, or unwanted repercussions of a purchase. 

The reason why the masses of people act the same? Because we all share a similar biology that drives our psychological motivations. When you understand the primary chemicals driving actions and behaviors, you can take steps to proactively position your business to increase its odds of success. 

For example:

• Master customer service and an intuitive buying experience
• Provide a safe environment for buyers and employees
• Optimize your marketing assets, online and offline to feel consistent and familiar
• Streamline your solutions for a natural progression of obvious options
• Speak to the universal truths that most people would agree with 
• Simplify the touchpoints of your buying journey
• Keep your customers delighted and loyal by intentionally underpromising and overdelivering

As you elevate your brand standards, your business will thrive.

5. Although they won’t completely replace brick-and-mortar shops, e-commerce will shift buying habits forever.

Many believe that Underhill’s book, “Why We Buy,” no longer offers relevance in today’s business climate. Underhill and his team found that e-commerce has introduced a new level of convenience for shoppers. Instantly being able to compare prices and have products delivered directly to their doorsteps has changed the way consumers shop. 

Today, people would rather stay home than endure a bad shopping experience.

So why do people still go out to shop?

Underhill’s research found that physical stores still provide an experience people crave. Particularly the retailers that have upped their game.

Why?

It all comes back to biology. Touching, feeling, and trying on products play a big role in our buying decisions.

This is where essential home service businesses should take note. This shift in buying is about how you make someone feel. In a transactional, commodities industry, you have nothing different to compete on other than the way you make people feel.

Critique every touchpoint in your business and ask yourself, how would you feel at each stage? Would you buy from you? Would you feel confident that you’re getting the best value? The most competent solution? The best bet for your hard-earned money?

If not, you’ve got work to do. 

Let me know if I can help. This is what I do.