Buyer Types in Consumer Psychology

D.C.-based entrepreneur Benjamin “Ben” Young founded the health and fitness app Sworkit in 2013. In addition to his position as the chief innovation officer at the Washington, D.C. technology firm, Otis Benjamin Young is a regular participant of The Habit Summit. An industry conference that focuses on behavioral science and consumer psychology, it explores a range of consumer behavior subjects, such as buyer types. Buyer types is a commonly used consumer psychology concept in sales and marketing.

According to neuroscientists, buyer behavior is largely influenced by the level of cognitive discomfort an individual experiences by spending past a certain price point. Buyers can be categorized in the three following categories.

Tightwads: About a quarter of the population experiences significant stress when spending money. These types of buyers generally have higher savings rates and lower debts. Businesses can appeal to this group by explicitly demonstrating value and offering flexible payment options.

Spendthrift: Individuals at the other end of the spectrum are prone to impulse shopping. These customers tend to spend based on their emotions, so companies aiming to reach this segment should pair their products or services with images that evoke strong feelings.

Average: The majority of consumers fall into this moderate category. While they make most of their buying decisions based on numbers, they can be swayed by emotional advertising, especially if the value of the product or service is made clear.