Factors influencing consumer behaviour Pinki Rani* Institute of Law Kurukshetra, University Kurukshetra, India Corresponding author . Culture is the basic determinant of a person’s wants. These factors are considered as social factors. Customer Perceptions . How a single or a group of consumer behavior does affects the society and the atmosphere and the economy of the nation. Major Factors Influencing Consumer Behavior. Cyber Monday Offer - All in One Marketing Bundle (170+ Courses) Learn More, 170+ Online Courses | 800+ Hours | Verifiable Certificates | Lifetime Access, services as economic services or products, A consumer is the end user or a target to whom the goods and services are sold, Marketing Training Program (41 Courses, 14 Case Studies/Projects), Market Research Training (14 Courses, 5+ Case Studies/Projects), CRM Training (6 Courses, 3+ Projects), Motivation is activating the internal needs. Out of all these needs, the basic needs and security needs take a position above all other needs. The behaviour of a consumer is not only influenced by their motivations and personalities but also their families and family members who can two or more people living together either because of blood relationship or marriage. Buying of products such as computers, laptops, property, cars, education, etc which requires a huge amount of research and economic involvement comes under this category or type. For example buying goods from the grocery store that are goods used on daily basis like milk, eggs, bread, etc. Middle-aged are focused on house, property and vehicle for the family. These needs can be psychological needs, needs of security, social needs, esteem needs and also self actualizing needs. Higher family income influences the people in the family to buy more. Some of the cultural factors are: Cultural Factors have strong influence on consumer buyer behavior. The needs are also different. This attitude plays a significant role in defining the brand image of a product. Based on this attitude, the consumer behaves in a particular way towards a product. Digital marketing, conversion rate optimization, customer relationship management & others. A person who is a Chief Executive Officer in a company will buy according to his status while a staff or an employee of the same company will have different buying pattern. These factors are difficult to measure but are powerful enough to influence a buying decision. This psychological factor decides the personality and lifestyle. Psychological Factors In daily life, consumers are being affected by many issues that are unique to their thought process. Whereas, a weak economy reflects a struggling market that is impacted by unemployment and lower purchasing power. The social class is not just determined by the income, but also other factors such as the occupation, family background, education and residence location. E: The nine main factors influencing consumer behaviour are – 1. Motivation arouses and directs the consumers towards certain goals. Culture 6. These personal factors differ from person to person, thereby producing different perceptions and consumer behavior. Consumer behaviour is dynamic, consumer behaviour may change over a long time due to changes in age, experiences, lifestyles, income and other similar factors. Whereas low-income or middle-income group consumers spend most of their income on basic needs such as groceries and clothes. ©Copyright 2020 www.clootrack.com All Rights Reserved. A person or an organization who is the final user of the goods and the services produced by a company. Humans are social beings and they live around many people who influence their buying behavior. Consumer behaviour is physiological it is human behaviour it can change with the slightest change in the market, the atmosphere and the trend. Of course only the influencing factors will confirm what will change the consumers buying pattern. It refers to a set of learned beliefs, values, attitudes, morals, customs, habits and … The study of consumer behaviour formally investigates individual qualities such as demographics, personality lifestyles, and behavioural variables (such as usage rates, usage occasion, loyalty, brand advocacy, and willingness to provide referrals ), in an attempt to … Consumerism . Family income is the total income from all the members of a family. There are various factors which affects consumer behaviour. Psychological factors play important role to determine the consumer behaviour. ALL RIGHTS RESERVED. How can you motivate the consumer buying behaviour, helping him make a decision in selecting between products, the importance of their product and how will their decision affect them? © 2020 - EDUCBA. Marketing campaigns influence purchasing decisions a lot. When there is a surplus income available for the family, the tendency is to buy more luxury items which otherwise a person might not have been able to buy. Attention Economics. Life style can confirm the interest, opinions and activities of people. Cultural Factors include the basic values, needs, wants, preferences, perceptions, and behaviors that are observed and learned by a consumer from their near family members and other important people around them. Economic Factors 2. If a consumer decided to save more, then his expenditure on buying reduces. Consumer behaviour is a physiological process it is all related to the emotions of the consumer. If the economic situation of a consumer is not good or stable it will affect his purchase power, in fact if the consumers or the economy of a nation is suffering a loss it defiantly affects the consumers purchase or spending decisions. The consumers also take decisions based on the after sales services and the service provided by the organization and their distributors. A consumer is highly influenced by the amount of savings he/she wishes to set aside from his income. Remember not just the income but even other factors describe social class of a group of consumers. Customer perception is a process where a customer collects information about a product and interprets the information to make a meaningful image about a particular product. How does a single consumer decision effects a group of consumers that is a group of people, this can include their friends, their family, etc. You are deciding amongst competitors. Lets us know the King first. The judging ability and capacity of every individual is different and hence the look at the world differently. Higher income gives higher purchasing power to consumers. Psychological Factors. Here are some articles that will help you to get more detail about the Influence Consumer Behaviour so just go through the link. Each and every society across the globe has form of social class. Age and life cycle stage; Age of a consumer and his life cycle are two most important sub factors under personal factors. The consumer is the decision maker here in the economic system. 2. A vital part of the marketing process is to understand why a customer or buyer makes a purchase. Consumer Behaviour – Personal factors; A number of personal factors also influence the consumer behaviour. It can also be described as goals and needs of the consumers. The knowledge of the consumer about the products, the. A person has many needs such as the social needs, basic needs, security needs, esteem needs and self-actualization needs. The buying behavior is highly influenced by the lifestyle of a consumer. Understanding how consumer behavior impacts marketing renders it vital to understand those factors which affect consumer behavior and which include: Cultural Factors. For example, some consumers are technoholics. It is an interdisciplinary subject for the purpose of analysis of the behaviour of the consumers, to study what, why, when, where and how they buy a particular product. Hence consumer perception becomes a great influence on the buying decision of consumers. Here you are also taking a decision. Beliefs and Attitudes 3. Perceived Risk . Motivation speaks to the internal needs of the consumer. THE CERTIFICATION NAMES ARE THE TRADEMARKS OF THEIR RESPECTIVE OWNERS. The sub factors under personal factor are listed below. Learning and experience both again play an important role in influencing the consumer’s behaviour as it influences their purchase decision. There are three types of cultural factors include social class, culture, and subculture. 4. It is concerned with the activities of individuals in buying and using the goods and services. You are deciding where to spend your money and on what should you spend your money. The more active the consumers of the nation the more active will be the nation’s consumer market. When a nation is prosperous, the economy is strong, which leads to the greater money supply in the market and higher purchasing power for consumers. Some of the important psychological factors are: When a person is motivated enough, it influences the buying behaviour of the person. When consumers experience a positive economic environment, they are more confident to spend on buying products. The reaction, as a consumer, of an 18-year-old teenager has nothing to do with that of a 68-year-old veteran. As we reach adulthood and enter into it, our life becomes more complex and with it our needs become more comple… The economic crisis has passed. When a consumer has higher disposable income, it gives more opportunity for the consumer to spend on luxurious products. External factors Influencing Consumer Behaviour External factors cannot affect the decision process directly but, these are also instrumental and exert an influence on consumer behaviour. Curiosity Drive . In this process the consumer starts with recognizing the need of the product, and then finds a way or a medium of solving these needs, makes purchase decisions like planning whether he should buy or not buy a certain product, and then he confirms the information, jots down a plan and then implements the plan of making the purchase. Everything can be bought and sold with the help of money. A consumer is the end user or a target to whom the goods and services are sold. Attitude is a consumer’s favorable and unfavorable emotional condition or emotional feeling, also its tendency of reaction to certain actions and behaviours. It is undoubtedly an essential factor. Lifestyle and Values 8. Consumer behavior is the process of studying the behavior of consumers that how they consume, dispose of, and use goods and services. The consumer plays a very important role in the demand and supply chain of every economic system of every nation. Marketing campaigns. Occupation of a consumer influences the buying behavior. I. Frederick Herzberg stated that behaviour is guided by two factors that go hand in hand. But when the disposable income reduces, parallelly the spending on multiple items also reduced. 53 and is influenced by cultural trends as well as his social and societal environment. Customer Needs . Even buying a packet of chips from a store is being a part of the consumer market as you participate in the buying a packet of chips buy paying a sum for the purchase. Consumer Society . You for sure might be wondering as to what is it that influences these consumers, how do we analyzes when is their purchase pattern going to change. Consumer behaviour doesn't remain the same or constant in every situation it changes time to time. These roles and status that they have to maintain also influences consumer behaviour as they decide to spend accordingly. The consumer chooses between competitors and their products. Sub-culture is the group of people who share the same values, customs and traditions. This is a decision of buying goods and spending your money. Liquid assets are those assets, which can be converted into cash very easily. When a consumer tries to gain information about unfamiliar brands of familiar products of not very high value goods this is when a consumer makes a decision however occasionally. Then understanding the environment of the customer is important. Characteristics of consumer behaviour It is a process where consumer decide what to buy, when to buy, how to buy, where to buy & how much to buy. To fully understand how consumer behavior affects marketing, it's vital to understand the three factors that affect consumer behavior: psychological, personal, and social. Income and education values, customs and traditions or learns about your product, whether online or person. Occupations and even social class, buyer ’ s learning depends on and. Final user of the market trends to know what is consumer behaviour in relation to economic factors bear significant. Among them being age, sex, income and education economy reflects a struggling market that is targeted. 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