About Us
Fulcrum is a brand activations company specialising in below the line campaigns, special events and other field marketing activities. Established in 2007, we have extensive experience in our field and count amongst our points of difference the following.
We do this by creating moments in popular malls, colleges, bus stops, multiplexes, stores and events right into cherished moments in a customers life.
Our vision is to empower brands & corporates to communicate primarily through the medium of experience & innovation.
We believe in the sales of our clients products/services, sales supported by brand visibility, awareness and execution of the products message with a promotional objective.
What Really Drives Customer Decisions?
What Really Drives Customer Decisions?
How do customers make decisions? This question has been at the core of marketing strategy for many years. As marketing professionals manipulate the various principles of their craft, the consumers they seek to reach also change their decision-making criteria.
So, how do marketers adapt to this fluid environment?
First, they need to understand the typical consumer decision-making process. Then, they need to constantly evaluate their existing customers and prospect universe to come up with a smarter strategic approach.
Are these consumer decision-making theories new? Not exactly. About 300 years ago, an economist named Nicholas Bernoulli developed the first formal explanation of consumer decision making. This foundation was later built on by other economists and ultimately called the “Utility Theory.”
The Utility Theory suggests that consumers make decisions based on expected outcomes. This, of course, assumes that consumers are rational and able to predict the outcomes of their decisions. As we probably all have learned, consumers are typically not completely rational or particularly good at predicting the outcomes of their decisions. So the Utility Theory has some shortcomings.
Back in the 1950s, another economist, Herbert Simon, proposed a simpler model that was called “Satisficing.” This theory holds that consumers reach a certain point and then stop the decision-making process. You can also call this the settling for good enough theory. While Satisficing addressed many of the shortcomings of the Utility Theory, there was still room for improvement in the area of prediction. After all, if a marketing pro can’t predict consumer behavior, then how can he or she put a productive strategy in place?
About 20 years later, two psychologists developed the “Prospect Theory.” The Prospect Theory solved many of the problems of the earlier two theories. The two major ingredients of Prospect Theory are value and endowment. While value might be self-explanatory, endowment is a little trickier to understand. Basically, the notion of endowment is that an item is considered more precious if one owns it rather than if someone else owns it. This is probably the theory behind eBays success, because winning something feels better than simply buying it.
Understanding consumer decision-making theory is all well and good. But its really just an academic exercise unless you have actionable analytic insights to deploy your marketing plans.
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