Online shopping has certainly taken a hike during and post-COVID times, this has led to definite patterns of consumer behavior helping marketers to identify the customer’s perspective on the pricing strategy set by a specific brand.
Whether we talk about online shopping or in-stores, price holds significant importance in a customer’s decision whether they want to buy it or not. While many marketers focus on setting a price that’ll attract a customer so much so they end up buying the product.
There are strategies that can actually help you get the price in the back seat for a customer in deciding to buy the product.
Is that even possible? Can a customer actually not be bothered about the price while making a purchase? Well yes, there are marketing strategies focusing on motivational points for customers to be so attracted to your product that the price part comes next to all the other points that you are going to learn to add up into your strategy.
While this may seem unreal, marketers have been using these strategies for a while now and with online shopping, disregarding the price is almost becoming a norm now.
Price perception- Your pricing strategy matters!
Your pricing strategy is going to create an instant image of your brand in the customer’s mind. This is a fact all marketers know by now. Too expensive? “must be made out of expensive material” too cheap? “definitely not good quality” These are some most common price perceptions that customers have been having since the beginning of time.
But how do you keep the prices attractive and yet not have that “cheap product” image in the customer’s eye?
Well, this is where price perception plays its part. The more the product seems to be providing value to the customers the more they’ll be intrigued to buy the product regardless of the price.
“Value for money” is a concept that price perception goes side by side with. If a customer finds your product providing good value for money they’ll go ahead buying it regardless of your pricing strategy. But some factors affect the buying decision of a customer before they become a consumer.
5 Factors that affect the purchasing decision of a customer
While pricing may seem like one of the major elements in decision-making for a customer about whether or not they want to buy a certain product, there’s a lot more that goes into this decision.
Here are the 5 main factors that affect the purchasing decision of a customer disregarding price.
1. Psychological factors
Consumer psyche is actually a term used frequently in marketing in present times, as it affects the buying decision more than any other thing. If the customer feels aligned with your product and they believe that the product is going to add value to their life for what so ever purpose, they’re going to buy it regardless of the price.
Psychological reasoning is a part of any purchase decision, this can be in any form. A person’s past experiences with a similar product or an associated incident anything can lead to deciding to buy a product or not.
More on psychological factors here- https://www.analyticssteps.com/blogs/5-factors-influencing-consumer-behavior
2. Social factors
Humans are designed to be socially dependent on each other. We’re called “social animals” for a reason and rightly so, our decision-making is affected by some social factors that affect us in one way or another.
Social factors are important for anyone as they make your experience with the product wholesome. Your family is the first thing that comes up in social factors, a product that you might have used as a kid in your family will definitely be valued more by you than the one that you haven’t used ever.
Similarly, a product that everyone in your social circle uses is going to make a bigger impact on you when you see a commercial or promotional message coming from them.
Social factors may seem small on the surface but they can change a person’s decision for buying a product with its mere association with a certain social class. A middle-class customer or a person belonging to a lower middle class may not even go on towards a product that is considered a “luxury” product and is promoted in a way that seems to be only for the rich.
So social factors definitely play an important role in a customer’s decision for whether they want to buy a product or not.
3. Cultural factors
Customers from different parts of the world have different values. As a brand, you’d want to cater to the needs of all your potential customers following their cultural norms.
Brands that do not give importance to the cultural values of their customers have to pay for the mistake as it leads to relatively lesser sales.
Different customers coming from different cultural backgrounds will only feel a sense of association with your brand if you are customizing your promotional campaigns according to their culture.
For example- the same ad playing in different parts of the world will not do as well as the same ad with different cultural music in the background for each region. People will get more attracted to your product only if you make them feel connected and cared for.
4. Personal factors
Personal factors vary from person to person depending on a person’s preferences about a certain product. Personal factors depend on different demographic factors like age, gender, occupation, and geographical location.
A person’s lifestyle impacts a lot on what and where they buy a product. For some people shopping online may still be an alien concept while for some, it’s a way of living now. Especially post-COVID times, people have adopted the lifestyle of making online purchases and getting things delivered to their doorsteps regardless of the price.
5. Economic factors
Economic conditions have a direct impact on a person’s buying power. With increased inflation and recession, people tend to shop less, and that too only from reliable sources. While most people like to get basic products from sources that can get you low prices and claim to provide you with the best quality- Ali express dropshipping center, for instance, a common man’s perception is to go straight to Ali express if they want cheap products with a dash of quality.
However, there’s a reliability factor attached with Ali express dropshipping center that can be taken note of through the reviews and ratings while some reviews come out great there are some that may put the customers off.
Other dropshipping services like Shipbear, however, provide a promised service to you and there are no risks of unreliability attached as the agency itself looks at seller profiles and goes through the supplier quality check itself.
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Shipbear is to dropshippers like caffeine is to coffee. It can be your one-stop solution if you’re looking for an all-in-one platform for your dropshipping services.
Customers perceive prices differently. As a marketer, you want to make sure you’re catering to the needs of your target market. Their social needs, their personal needs, their economical needs, and so on. Following a few tips on a good pricing strategy and keeping all the factors that affect a customer’s decision-making in buying a product, you can make sure the price is perceived rightly.
While it may not seem obvious, your product pricing can create or break your brand’s image, therefore the importance cannot be denied and as a dropshipper you want to make sure the products are priced accordingly.
To motivate your potential customers into becoming your paying customer, you need to prepare and invest time in building a good pricing and marketing strategy. When a product is aimed to make its way into the customer’s “cart” price may come next to other factors that make the product seem all worthwhile.
There are brands that people invest in regardless of the price, this is the level of trust you’re looking for from your customers and that is what Shipbear can help you with.
Visit- https://shipbear.co/ for more details.