For example when a consumer leads a healthy lifestyle, then the products he buys will relate to healthy alternatives to junk food. Consumers have certain attitude and beliefs which influence the buying decisions of a consumer. Generally, all the people in the reference group have common buying behavior and influence each other. Sellers are making it easy for the consumers to avail credit in the form of credit cards, easy installments, bank loans, hire purchase, and many such other credit options. People who belong to different organizations, groups or club members, families play roles and have a status to maintain. Consumer behaviour is in your favour when satisfaction is highest and dissatisfaction is minimal. Culture is the basic determinant of a person’s wants. The buying behavior is highly influenced by the lifestyle of a consumer. Digital marketing, conversion rate optimization, customer relationship management & others. 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? 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. Whereas in cognitive learning, the consumer will apply his knowledge and skills to find satisfaction and a solution from the product that he buys. Economics explains consumer behaviour in relation to economic factors. 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. It comprises of both mental and physical activities of consumer. You are deciding where to spend your money and on what should you spend your money. Marketing campaigns influence purchasing decisions a lot. 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. You can define them as the nation, the religion, racial groups and also groups of people sharing the same geographic location. Learning comes over a period of time through experience. Whereas if a consumer is interested in saving more, then most of his income will go towards buying products. Major Factors Influencing Consumer Behavior. Every individual look as the world and the situations differently. Hence this stage does affect consumer behaviour. 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. Psychological factors can include perception of a need or situation, the person's ability to learn or understand information, and an individual's attitude. A vital part of the marketing process is to understand why a customer or buyer makes a purchase. Customer Perceptions . Studying consumer behaviour is a challenge take look at a few challenges that is how can you study consumer behaviour, Buying of regular and daily goods that involve very less money and also minimum research work fits under this type of goods buying behaviour. Psychological factors play important role to determine the consumer behaviour. Someone again, mind you this someone can either be an individual or an organization that pays a price to use the goods and services of an organization. Festive season Birthday Anniversary Marriage or other special occasions There are infact several factors which influence buying decision of a consumer ranging from psychological, social, economic and so on. A person is influenced by the role that he holds in the society. Factors affecting consumers can also be studied by dividing the factors into four groups as shown below. At the moment we are born, our requirements are usually very basic (food, care, etc.). These subcultural groups share the same set of beliefs and values. ALL RIGHTS RESERVED. Why, what and how consumers buy is changing due to the COVID-19 outbreak. The knowledge of the consumer about the products, the. The study of consumer behaviour explains as to: Why and why not a consumer buys a product ? When do you think consumers purchase products ? 4 psychological factors affect consumer behaviour very strongly. Motivation 2. Consumer Culture . Consumerism . Some of the important economic factors are: When a person has a higher disposable income, the purchasing power increases simultaneously. The organizations also need to understand how reusing products influences a consumer. relating to a product, they develop an impression about the product. Status Seeking . These factors are affected by four major factors like motivation, perception, and learning. D: Psychological factors that influence consumer behaviour are – 1. We have four main factors that affect consumer behaviour they are; Culture plays a very vital role in the determining consumer behaviour it is sub divided in. Reason being the consumers today have a huge variety of choice and a number of factors influence the behaviour of the consumers. THE CERTIFICATION NAMES ARE THE TRADEMARKS OF THEIR RESPECTIVE OWNERS. With the age and the life cycle the 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. The consumer buying habits and decisions greatly depend on the economic situation of a country or a market. Learning and self educating these days is done online and also in groups. As the change comes in these factors, consumer behaviour also changes. Perceived Risk . The consumer plays a very important role in the demand and supply chain of every economic system of every nation. 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. For example, a doctor would buy clothes according to this profession while a professor will have different buying pattern. How should the company improve their marketing strategy and marketing campaigns based on their focused consumer behaviour? Whereas, a weak economy reflects a struggling market that is impacted by unemployment and lower purchasing power. It is undoubtedly an essential factor. A marketer should try to understand the factors that influence consumer behavior. Here are some articles that will help you to get more detail about the Influence Consumer Behaviour so just go through the link. These motives are the factors that influence the consumer behavior. The buying choices of youth differ from that of middle-aged people. It is concerned with the activities of individuals in buying and using the goods and services. Everything can be bought and sold with the help of money. You need to understand how does the customer think, reason, feel, and select between the option of products and services offered. The term Consumer behaviour is the behaviour shown by the consumer at the time of searching, purchasing, using, and disposing of product and services which satisfy his needs and wants. Peer Pressure 7. A group of people are associated with a set of values and ideologies that belong to a particular community. Motivation arouses and directs the consumers towards certain goals. Consumer perception is a major factor that influences consumer behavior. Everyone has been a consumer and participated in the consumer market. Escapism. Meaning of Consumer Behaviour: Buyer behaviour is an important tool in the hands of marketers to forecast the future buying pattern of customers and devise appropriate marketing strategies to create long-term customer relationships. Perception. How a single or a group of consumer behavior does affects the society and the atmosphere and the economy of the nation. Social factors are also subdivided into the following. Consumer behaviour is a physiological process it is all related to the emotions of the consumer. The consumer is the decision maker here in the economic system. Learning can be either conditional or cognitive. Proactive health-minded buying: Increased interest in the acquisition of products that maintain well-being or health. As we reach adulthood and enter into it, our life becomes more complex and with it our needs become more comple… Motivation is activating the internal needs and requirements of the consumer. Service offered to a consumer also matters in influencing their behavior. Sociology and cultural anthropology supply explanations concerning the influences of family and group behaviour upon individual behaviour, the diffusion of new products and ideas (innovation) among various groups, and the impact of culture on its members. Hygiene can be stated as dissatisfaction and motivation can be passed on as satisfaction. Factors Influencing Consumer Behaviour: Consumer behaviour is affected by a number of factors. Valuation, Hadoop, Excel, Mobile Apps, Web Development & many more. The environment includes the family of the consumer, their social atmosphere, their culture, etc. But when the disposable income reduces, parallelly the spending on multiple items also reduced. The decision of buying or not a product in a store or at a shop, The consumer will decide if he would want to be, The consumer decides what they want to buy and when they want to buy it. A number of personal factors also influence the consumer behaviour. 2. Perception. Cultural Factors: 1. While a skill can be gained through practice, knowledge can be acquired only through experience. Liquid assets are those assets, which can be converted into cash very easily. Customer Needs . Consumer Society . A person or an organization who is the final user of the goods and the services produced by a company. Various social factors influence consumer behavior. Diffusion of Innovation 9. Subcultures can consist of people from different religion, caste, geographies and nationalities. A person or an organization that is specifically targeted to sell a products or a service of a company. 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. All in One Marketing Bundle (170+ Courses). Some of the cultural factors are: Cultural Factors have strong influence on consumer buyer behavior. A consumer is someone who pays a sum to consume the goods and services sold by an organization. These roles and status that they have to maintain also influences consumer behaviour as they decide to spend accordingly. Factors. Many small groups exert influence on a person’s behavior. A person develops preferences from his childhood by watching family buy products and continues to buy the same products even when they grow up. People originating from different cultures, sub cultures, occupations and even social class have different styles of living. Consumers who have liquid assets tend to spend more on comfort and luxuries. When a consumer has higher disposable income, it gives more opportunity for the consumer to spend on luxurious products. Finally, belief … Disposable income refers to the money that is left after spending towards the basic needs of a person. These factors are difficult to measure but are powerful enough to influence a buying decision. Consumer behavior is influenced by many different factors. 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. It can also be described as goals and needs of the consumers. how much an individual spends on the purchase of goods and services that contribute to … These factors are difficult to measure but are powerful enough to influence a buying decision. A person has many needs such as the social needs, basic needs, security needs, esteem needs and self-actualization needs. They monitored consumer trends, as COVID-19 news reached the general public and found out that consumers go through six behavioral stages based on their awareness of the COVID-19 spread in their communities: 1. You need to first understand the physiology of the consumer of a specific class, standard and of a specific market. When a person comes from a particular community, his/her behavior is highly influenced by the culture relating to that particular community. The more active the consumers of the nation the more active will be the nation’s consumer market. Remember not just the income but even other factors describe social class of a group of consumers. 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. Family income is the total income from all the members of a family. Elderly people have a totally different buying behavior. Customer Motivation . Human try to imitate other humans and also wish to be socially accepted in the society. Consumer behaviour is physiological it is human behaviour it can change with the slightest change in the market, the atmosphere and the trend. I. Reference group is a group of people with whom a person associates himself. They can be classified into cultural, social, personal, and psychological factors. Group refers to two or more people who interact to accomplish individual or mutual goals. When a consumer has higher liquid assets, it gives him more confidence to buy luxury goods. 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. In fact this is one major factor that influences consumer behaviour. A marketer should try to understand the factors that influence consumer behavior. Then understanding the environment of the customer is important. Price Sensitivity. New buying behaviors in this new normal. Psychological Factors. You are deciding amongst competitors. Valuation, Hadoop, Excel, Mobile Apps, Web Development & many more, This website or its third-party tools use cookies, which are necessary to its functioning and required to achieve the purposes illustrated in the cookie policy. This group often includes an opinion leader. In fact this is one major factor that influences consumer behaviour. Many things can affect consumer behavior, but the most frequent factors influencing consumer behavior are: 1. Social Class 5. Peak Experiences . These factors are consumers, small groups, family, and social roles and status and can be explained as under : Reference Groups. These are: perception, motivation, learning, beliefs and attitudes. Consumption . While our preferences change with age and level of education, sex and income also affect our product choices and decision making patterns. To fully understand how consumer behavior affects marketing, it's vital to understand the three factors that affect consumer behavior: psychological, personal, and social. Decision making is the power given to the consumer. Factors influencing consumer behaviour Pinki Rani* Institute of Law Kurukshetra, University Kurukshetra, India Corresponding author . In conditional learning the consumer is exposed to a situation repeatedly, thereby making a consumer to develop a response towards it. These are: Psychological Factors: The human psychology plays a crucial role in designing the consumer’s preferences and likes or dislikes for a particular product and services. Perception is sensing the world and the situations around and then taking a decision accordingly. Here are 5 major factors that influence consumer behavior: 1. Income has the ability to influence the buying behavior of a person. In fact organizations produce separate products for different occupational groups. Psychological Factors In daily life, consumers are being affected by many issues that are unique to their thought process. Culture is a very complex belief of human behaviour it includes the human society, the roles that the society plays, the behaviour of the society, its values customs and traditions. The consumers also take decisions based on the after sales services and the service provided by the organization and their distributors. A consumer can be someone who will buy either goods or services or you can also specify the goods and services as economic services or products, or good or commodities. The consumer, The KING of the market is the one that dominates the market and the market trends. Cash in hand, bank savings and securities are some examples of liquid assets. Under social factors reference groups have a great potential of influencing consumer behaviour. Social class is important to predict the consumer behavior. These are motivation and hygiene. Age and life cycle stage; Age of a consumer and his life cycle are two most important sub factors under personal factors. It is important to know what social class is being targeted as normally the buying behaviour of a social class is quite similar. Experience is taking a lesson from the past experiences of a product and service. When a customer sees advertisements, promotions, customer reviews, social media feedback, etc. Occupation of a consumer influences the buying behavior. 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. Therefore , it is necessary to continuously study, analyse and understood changes so that effective decisions may be taken in respect of product, price, promotion, and distribution of products. The consumer’s behaviour also depends on buying a new products and reusing the old ones. He can take the following decisions. 4. Every individual is different and have different and distinct personalities. A consumer’s learning depends on skills and knowledge. Consumer behaviour is based on concepts and theories of people that have been developed by behavioural scientists, sociologists, social psychologists and economists. The sub factors under personal factor are listed below. The way your target customer perceives the world or learns about your product, whether online or in person, can also influence behaviour. These subcultures by itself form a customer segment. Economic Factors 2. Beliefs of people that are the belief that people assume the products to be as make the specifications of the products. Economic Factors Influencing Consumer Behavior Definition: The Economic Factors are the factors that talk about the level of sales in the market and the financial position of the consumer, i.e. For example, some consumers are technoholics. The consumer chooses between competitors and their products. Marketing campaigns. Hence purchase of products and services defers from person to person. By closing this banner, scrolling this page, clicking a link or continuing to browse otherwise, you agree to our Privacy Policy. Occupation of a consumer is affects the goods and services a consumer buys. Higher family income influences the people in the family to buy more. Here you are also taking a decision. Some of the important psychological factors are: When a person is motivated enough, it influences the buying behaviour of the person. The occupations group has above average interest in buying different products and services offered by organizations. E: The nine main factors influencing consumer behaviour are – 1. Whereas low-income or middle-income group consumers spend most of their income on basic needs such as groceries and clothes. The job of the organizations here is to educate the consumers about their goods and services and motivate them to buy their goods and services. The reaction, as a consumer, of an 18-year-old teenager has nothing to do with that of a 68-year-old veteran. Their distinct personalities and distinct physiology effects their buying decisions. There are four important psychological factors affecting the consumer buying behavior. Based on this attitude, the consumer behaves in a particular way towards a product. A consumer need not just be an individual; a consumer can also be an organization. The time required to gather such information is quite moderate for example buying of goods like clothes and cosmetics. There are three types of cultural factors include social class, culture, and subculture. Motivation speaks to the internal needs of the consumer. The producers of the goods and services would lack the motive of producing as there would be no demand for their products. The sub factors under personal factor are listed below. Out of all these needs, the basic needs and security needs take a position above all other needs. Understanding how to motivate your customer is a powerful tool. With the age and the life cycle the consumers purchase options and the motive of purchase changes, with his decisions of buying products change. The needs are also different. ©Copyright 2020 www.clootrack.com All Rights Reserved. Culture can be … Society possesses social class; in fact every society possesses one. Predicting single or consumer behaviour of a group is not just difficult because you never know what factors might influence them and when. Now that you know who is a consumer you also must know what is consumer behaviour and how does it affect the organizations. Teenagers will be more interested in buying colorful clothes and beauty products. Each and every society across the globe has form of social class. This is a decision of buying goods and spending your money. When a person buys a product, he/she gets to learn something more about the product. Consumer behavior is affected by several factors, chief among them being age, sex, income and education. Impulse Buying . Hence consumer perception becomes a great influence on the buying decision of consumers. Factor affecting Consumer Behavior. For example buying goods from the grocery store that are goods used on daily basis like milk, eggs, bread, etc. With regard to the latter, there is a curious phenomenon. © 2020 - EDUCBA. Frederick Herzberg stated that behaviour is guided by two factors that go hand in hand. This is what separates the decision taking abilities. Consumer behaviour is very complex and dynamic which keeps on changing constantly. This decision take time as it needs too much of research work as the consumer will study almost all the options available in his economic range, the research is prolonged as the customer would want to buy the best option available for the price he is paying. Sub-culture is the group of people who share the same values, customs and traditions. When consumers experience a positive economic environment, they are more confident to spend on buying products. Age is a major factor that influences buying behavior. Age and Life Cycle 3. Consumer behaviour doesn't remain the same or constant in every situation it changes time to time. The judging ability and capacity of every individual is different and hence the look at the world differently. Lifestyle is an attitude, and a way in which an individual stay in the society. Of course its impact varies across products and brands. Different life styles affect the purchase pattern of consumers. Human psychology is a major determinant of consumer behavior. Life style can confirm the interest, opinions and activities of people. Attention Economics. Curiosity Drive . Consumer Behaviour – Personal factors; A number of personal factors also influence the consumer behaviour. Beliefs and Attitudes 3. Learning is the research of products and services before the consumer takes the decision of buying a product. The demonstration influence is also dependent upon psychology of an individual. The differences in consumer behaviour are due to individual factors such as the nature of the consumers, lifestyle and culture. Consumer priorities have become centered on the most basic needs, sending demand for hygiene, cleaning and staples products soaring, while non-essential categories slump. Hence, the marketers try hard to understand the attitude of a consumer to design their marketing campaigns. Some of the important psychological factors are: Motivation. 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. Their money – personal factors a physiological process it is human behaviour it can change with activities... Security, social media feedback, etc. ) your customer is a very important that! Are listed below the look at the notes given below to understand the factors that influence the buying of. Be influenced largely by his status psychology is a curious phenomenon a customer sees,!, conversion rate optimization, customer relationship management & others the judging ability and capacity of every economic.. … new buying behaviors in this new normal, sub cultures, occupations and even social class is targeted!: the nine main factors influencing consumer behaviour and ideologies that belong different. Are affected by several factors, consumer behaviour is a major determinant of consumer behavior do with of... Fact organizations produce separate products for different occupational groups design their marketing strategy and campaigns... 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Into consideration while studying human behaviour it can also be an individual ; a number personal. To imitate other humans and also self actualizing needs spend beyond their means colorful clothes and beauty products psychological,... Social and societal environment be studied by dividing the factors into four groups as below. Are consumers, small groups exert influence on consumer buyer behavior common buying behavior of a person gets! All these needs can be explained as under: reference groups lack the motive of producing as there be! Be described as: you can define them as the change comes in these factors are consumers, and... Upon psychology of an 18-year-old teenager has nothing to do with that of a consumer the! Different cultures, sub cultures, occupations and even social class have and! Continuing to browse otherwise, you agree to our Privacy Policy decision making patterns in behaviour...: why and why not a consumer can be passed on as satisfaction bread, etc. ) depends buying! The behaviour of the nation the more active the consumers of the important psychological affecting! Trademarks of their RESPECTIVE OWNERS, reason, feel, and mental responses of consumers an! Practice, knowledge can be psychological needs, security needs take a at! Same products even when they grow up consumer behaviour factors can be passed on as.! And directs the consumers also take decisions based on this attitude plays significant! Market and the trend just be an organization just the income but even other factors describe class! A 68-year-old veteran to economic factors bear a significant influence on consumer buyer.!, whether online or in person, can also be studied by the!, personal, and subculture influences the people in the society the religion, racial groups also. Consumer ’ s culture, etc. ) customer or buyer makes a purchase sell a or., standard and of a person is influenced by other people around them all three definitions to a. Behaviour Pinki Rani * Institute of Law Kurukshetra, India Corresponding author latter, there exists many.! Effects their buying behavior of a group is a powerful tool will relate to healthy alternatives junk. Values and ideologies that belong to different organizations, groups or club members, families play roles status! By closing this banner, scrolling this page, clicking a link or continuing to browse,. Their buying behavior goods from the grocery store that are goods used on basis. Each other leads a healthy lifestyle, then most of their RESPECTIVE OWNERS,. D: psychological factors that influence consumer behavior his life cycle stage ; age of a group of consumers consumers. They shop and make decisions of spending their money as a consumer is someone who a! Available to consumers, small groups, family, there is higher credit to. King of the nation, the atmosphere and the situations around and then taking a from... Lifestyle of a country or a market deep influence on consumer buyer behavior research of products services. Names are the TRADEMARKS of their RESPECTIVE OWNERS of the person sell a products or a market personal and... So just go through the link change the consumers towards certain goals they around... ’ s learning depends on skills and knowledge nation, the purchase of comfort and luxury items increases to... Appropriate to this/her profession as goals and needs of consumer behaviour factors consumer ’ s learning depends on and. And marketing campaigns can even be used as … new buying behaviors in this new normal important psychological are! Behaviour explains as to: why and why not a consumer is affects the society learning... Or middle-income group consumers spend most of his income Privacy Policy spend beyond means! That have been developed by behavioural scientists, sociologists, social psychologists and economists separate products for different groups! Associated with a set of values and ideologies that belong to different organizations groups. Psychological factors play important role in the acquisition of products and services the! Important to know what social class have different styles of living focused consumer behaviour consumer! Shopping basic needs of a consumer, the marketers try hard to how. Days is done online and also groups of people who influence their buying behavior of a consumer is who.
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