How do people make decisions

So we go back to the question: why do most prospects hesitate when it comes time making a buying decision?

Why do most people become undecided when it comes to buying or making a decision even though it makes logical sense for them to buy or that they really want to buy?

The answer? Because of uncertainty. And this uncertainty manifests in two forms.

One is that people feel uncertain because of the costs or the risks involved. Just think of you buying a pre-selling house or even insurance.

A very big portion of your monthly income will basically go to something you cannot even see. And what if in the middle of the process, something bad happens to you? You have no money to pay.

Another thing is that you will have to sacrifice so much more like vacations or going out with friends.

The other way uncertainty forms is in terms of confusion or that we feel unclear. We still do not have complete information to satisfy our logical sense. Hindi pa tayo kampante. Medjo naguguluhan pa tayo.

Just think back when you were still a kid. Why do we not like looking under our beds at night or take a pee in the CR at night? It is not because it is dark. It is because we are afraid of what is in the dark.

It is the same concept in buying. We do not know what will happen when we buy this or that. We don’t feel assured that we will be alright or that everything will work well.

These two boils down to uncertainty or the absence of certainty. In the first example, we need the assurance or the feeling of certainty that makes us feel as if we are doing the right decision.

In the second example, its more on needing more information for us to feel assured or certain that we will be doing the right thing.

And to combat these uncertainties, we must first talk about the types of certainties. Before a person buys or makes a decision, they need to first have logical certainty and emotional certainty. Let us explain.

As humans, what differs us from other creatures is that we have logic and emotions. The brain and the heart. The left side of the brain the controls logic and the right side of the brain the controls creativity. The yin and the yang. Okay, lets stop there.

In simple terms, these two things (logic and emotion) control what we do. These two influences what we do.

Just think of it this way. Just think of what you ate this morning for breakfast. Why did you eat what you eat? Let me make a wild guess that either it is because you need a quick and sufficient breakfast before you go to work (which makes logical sense) OR you are craving for that food when you woke up (your cravings are emotional). Or in the case that you didn’t eat breakfast, why didn’t you? No time? Need to go to work? Again, rushing to work by not eating breakfast could make sense. Logic and emotions.

Often times though, logic and emotions do not agree on the same things.

Have you ever heard of people who loved the wrong person? Nagmahal ng mali na tao. I think all of us know one or two people in these kinds of relationships. Yung tipong nagcheat na yung partner or abusive yung partner, pero hindi parin maiwan ni kaibigan?

And as a friend, we can agree that leaving that person is the right thing to do and would make most logical sense. Your friend who definitely deserves much better will have a happier life. Your friend will find someone better. So as friends, we just couldn’t figure out why our friend is sticking with the partner. It doesn’t make logical sense. I guess love is blind?

I am not sure if you are old enough to remember a TV commercial of this certain bank starring the ever-gorgeous Anne Curtis.In the commercial, the man tells to Anne Curtis all the sweetest words in the world. ‘I’ll give you the moon, the stars, the world” or something to that extent. And Anne Curtis simply asks “may savings ka na? You know the real stuff; bahay, pagkain, kuryenete….”, which catches the male actor by surprise.That is emotion without logic. Anne Curtis may enjoy all the love that the male actor can give to her in their relationship, but for Anne Curtis, she needs more than just the emotional side of things, she needs some practicality which is logical.

In simple terms, we make decisions using logic and emotion. And most of the time, emotions have more weight than logic. As we always say: people buy with emotions and they justify it with logic.

That is why parati tayo nabubudol. That is why your friend is still sticking with her abusive partner even though it makes more logical sense to leave him. That is why you bought insurance. That is why you ate what you ate for breakfast.

And you know what happens when we finally decide? We justify them. Yung huling Shopee budol mo? Ahhhh may discount kasi. Kailangan mo ba? Hindi. So bakit mo binili? Kasi may discount ehhhh! Minsan minsan lang yan and malay mo kailanganin naten.

Your friend is not leaving her abusive boyfriend?Mahal naman niya ako. Sweet naman siya. Binubuhos niya lahat sa akin. Ganun lang siya. Ganun lang mga lalaki pero mahal niya ako.

You buying insurance? Financial Indepenence-kuno, you justify when in fact the real reason you bought is you either want sense of peace that you are financially covered if anything happens OR (and this is my reason why I bought mine) that you want to let others know you are a responsible person (pride- which is an emotion).

And why didn’t you eat breakfast or why did you rush your breakfast? Kasi ayaw mo ma-late. Bakit ayaw mo ma-late? Ayaw mo mapagalitan. Bakit? Ayaw mo matanggal sa trabaho. Bakit? Kailangan mo ng seguridad sa buhay.

And here is another important insight: people might buy with emotions but they need to JUSTIFY it with logic. What we mean here is people do not do things out of emotional impulse, they need to create a logical justification for it. It needs to make sense on why they do what they do. And we can see it in the examples we stated.

That Shopee budol you bought? Its an impulse buy yet there is no question of its functionality in the now or future. Its functional enough na we can justify using it one day.

Your friend not leaving her abusive boyfriend? The guy also does good things to her.

Insurance? Well, I don’t think I need to explain this further more.

But you get the point! People decide with logic AND emotion. People buy with emotions and justify it with logic. Emotions alone isn’t enough. It needs to have logical sense or can be justified logically.

In other words, we need to both satisfy the brains and the hearts. The same rule applies in selling. We need to satisfy both the brains and the hearts of the prospect before they finally decide to buy.

But how???

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