How customers make purchasing decisions


Key points

Human decision making comprises of two parts (1) intuitive (system one or fast) and (2) rational (system 2 or slow)
Intuitive or fast system is the go to decision maker and therefore is the first hurdle in getting someone to buy. The way around this is to tie the sale to the customers deeply held beliefs such as "I deserve the best" "Technology saves time" "Dress for success" and tie the product to existing products that the customer has already purchased
Rational or slow system checks up on system 1 to double check the decisions. It will make decisions based on analytics like cost/benefit. To clear this system anticipate the questions and proved the answers
Given an equal sized gain and loss, the loss hurts much more, we are risk averse in both systems
Potential gain needs to be much much better than the potential loss

What is good about it?

  • Lots of good points covered really fast

What is bad about it?

  • Possibly too fast, and without strong examples