Factors Influencing Consumer Buying Behavior – Generally speaking, consumer purchasing behavior is influenced by various direct and indirect factors. A simple example: the more money a consumer has, the more he spends.
The consumer on the spot may not make any purchase, he is influenced by many factors such as money, values, culture, status, family, psychology and so on. A thorough study of the factors that influence consumer purchasing behavior helps a marketer or company develop useful marketing plans.
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Factors Influencing Consumer Buying Behavior
One of the factors influencing consumer purchasing behavior is the economic factor. It refers to the consumer’s purchasing power and willingness to purchase goods and services. A consumer’s ability or willingness to buy depends largely on the following factors:
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Personal income level: A consumer’s ability to pay depends on his or her personal income level. The more income a consumer receives, the greater purchasing power he will have.
Income of other family members: The addition of earning family members has a positive impact on the purchasing power of the other family member. In such circumstances, they are able and willing to spend more money on the products of their choice.
Expectation of future income: A consumer’s optimism or pessimism about his future income also determines his level of current spending. If he expects to receive additional income from other sources in the near future, he will be willing to spend more and vice versa.
Availability of liquid assets. Liquid assets are assets that can be easily converted into cash. The level of consumer spending on products and services also depends on the availability of liquid assets such as bank balances, cash in hand, shares, etc.
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Availability of credit to the consumer. If consumers have an adequate line of credit at their disposal, they will be willing to spend more on products and services, even if their regular income is low.
Past spending habits. Consumer purchasing behavior is also influenced by current consumption habits. If the consumer’s previous standard of living was high, the consumer’s level of consumption will also be higher, although he may not have sufficient income during the period in which he is accustomed to spending more. In such a situation, he would even be willing to sell his fixed assets.
Society is composed of individuals, groups and families with different natures, tastes, values, motives, attitudes and lifestyles. Therefore, the purchasing behavior of individuals, groups and families differs from each other.
An effective marketer is one who can carefully examine important social factors, including family, reference group, social class, opinion leaders, and culture.
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Family: Family is the basic social institution. It is a group of related people, e.g. father, mother, sons, daughter, grandfather, grandmother, grandson, nephew, uncle, etc. The family is the primary group that has a significant impact on the individual’s consumption behavior.
Reference groups: A reference group is a group of people with similar values, beliefs and attitudes. The reference group consists of all groups that have a direct or indirect influence on a person’s attitude or behavior. The reference group may be family, friends, membership groups, neighbors, and so on.
Social Class: Social classes arise because of differences in income levels. The three main social classes are the upper class: they have high incomes and lead a luxurious lifestyle. Middle class: They have average incomes. Lower Class: This is a class with very low income and low purchasing power.
Opinion Leaders: Opinion leaders are people who lead specific reference groups. Opinion leaders have a disproportionately high quality of leadership. Opinion management refers to the extent to which a person influences others in a given election situation. The marketer must be able to identify such opinion leaders and analyze their roles that influence the purchasing behavior of groups.
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Culture: Culture is the entire human environment including humanity, knowledge, beliefs, art, morals, law, customs, religion and all other abilities and habits acquired by humans as members of society. The consumption patterns of each of these groups differ significantly. For example, the purchasing pattern of a vegetarian may be different from the purchasing pattern of a non-vegetarian.
Psychology is a state of mind that cannot be studied with general information and analysis; requires the consumer’s interpretive or insightful knowledge. Psychology is another important factor influencing consumer purchasing behavior. When analyzing the consumer’s psyche, a marketer must be able to analyze:
The human psyche is influenced by several factors that a marketer must carefully analyze. These factors include:
Motivation: Motivation is goal-directed action. It is an internal, emergent force that directs a person’s behavior toward his or her goal. A set of motives influence a buyer’s action at any given time. A person has many unfulfilled needs and cannot be motivated.
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Perception: Perception means the knowledge or idea about a product or situation received or inferred by a person. In other words, perception is the process by which a person acquires or perceives the meaning of an object or situation. A motivated person is willing to act in one way or another. The way a motivated person acts depends on his or her perception of the situation. Two people in the same state of motivation may act completely differently because they perceive the situation differently.
Learning: When people perceive the importance of an object or situation, they take action. When they act, they learn, that is, people learn through experience. Thus, learning can be defined as a change in an individual’s behavior as a result of experience or previous behavior in a similar situation.
Belief and Attitude: A belief is a descriptive thought a person has about something, while an attitude consists of knowledge about an object or situation. Customers believe that the iPhone is a product of the highest quality, while for them Micromax is a product that provides the functionality of a smartphone at minimal cost.
Personality: Personality refers to the distinctive psychological characteristics of an individual that lead to relatively consistent and lasting responses to the environment. Personality is usually described in terms of traits such as self-confidence, self-control, dominance, autonomy, sociability, adaptability, aggressiveness, conservativeness, defensiveness, etc. Marketers generally believe that a person’s personality influences the brand of products he or she buys.
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Demographic factors also influence consumer purchasing behavior. These are individual characteristics such as age, gender, culture, income, family size, profession, marital status, etc.
These demographic characteristics may influence those involved in family decision-making. They can influence the speed at which a person moves through the consumer purchasing process. They also influence individual stages of the decision-making process. These factors can also influence the extent to which a person uses products in a particular product category.
The psychoanalytic approach, also called sociopsychology, proposed by Sigmund Freud states that personality (mental frame) consists of three basic systems of interdependent psychological forces – id, superego and ego. Human behavior is a function of the interactions between these three systems.
“ID”: “ID” represents instinctive needs. It is the source of all his driving psychic energy. Its main function is to build needs and desires that may or may not be met, depending on social expectations and values.
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“Superego”: “The superego represents social values that tend to conflict with instinctive needs and desires. In other words, the “superego” is the conscience that accepts moral standards and directs instinctive drives into acceptable channels. And the “ego” is a system of forces that control and direct the impulses of the “id” so that satisfaction can be obtained in the real world, thus resolving the conflict between the “id” and the “super-ego”.
“Ego”: “Ego” is the planner, decision maker and thinker; personality executor because he controls the gates to action, chooses the features of the environment to which he will respond and determines which instincts are to be satisfied and how. The leitmotif of this theory is the belief that a person cannot satisfy all his needs within society. Consequently, such unmet needs create tensions in individual consciousness and continue to influence consumer behavior. Psychoanalytic theory led marketers to realize that they must provide buyers with socially acceptable rationalizations for their purchases. When it comes to consumer purchasing behavior, many factors come into play. Factors such as brand loyalty, media influence, environmental impact and even timing of purchase etc. play a role in our purchasing decisions. These factors are broadly divided into five categories and are:
Before we examine each of these factors in detail, it is important to define what constitutes consumer behavior –
Consumer behavior is the analysis of the choices, purchases, uses, and dispositions that individuals or organizations make to satisfy their needs and desires. From products, services and ideas to experiences, consumer behavior provides a deep understanding of what drives decisions in the marketplace. It involves the study of how individuals and groups make decisions about purchasing, using and disposing of products
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