The Mind and Purchase Decisions:

More often than not, people buy what they think they should have. They’re sort of like sheep, following the flock. Do most people really need a four-wheel-drive vehicle? (No.) If they did, why didn’t they become popular years ago? (Not fashionable.)

The main reason for this kind of behavior is insecurity, a subject about which many scientists have written extensively. If you’ve been around a long time, people trust you more and feel secure in their purchase. This is why heritage is a good differentiator.

Minds are insecure for many reasons. One reason is perceived risk in doing something as basic as making a purchase. Behavioral scientists say there are five forms of perceived risk:

1. Monetary risk. (There’s a chance I could lose money on this.)
2. Functional risk. (Maybe it won’t work, nor do what it’s supposed to do.)
3. Physical risk. (It looks a little dangerous. I could get hurt.)
4. Social risk. (I wonder what my friends will think if I buy this.)
5. Psychological risk. (I might feel guilty or irresponsible if I buy this.)

All this explains why people tend to love underdogs but buy from the perceived leaders. If everyone else is buying it, I should be buying it.