Factors That Affect Consumer Behavior – Consumer behavior is influenced by many factors, including environmental and marketing factors, situational, personal and psychological factors, family and culture. Companies are trying
Which is more relevant to the consumer group they want to target so they can reach the people most likely to buy their products in the most effective way. Companies often try to influence consumer behavior through things they can control, such as their website landing page, search engine ranking, store layout, music, product grouping and availability, pricing and advertising. Although some influences may be temporary and others may be long-term, different factors can influence consumer behavior. These factors may influence you to shop, buy additional products, or not buy at all.
Factors That Affect Consumer Behavior
Have you ever been to IKEA and can’t find your way out? Marketers consider physical factors such as store design and layout when creating spaces. The longer you walk around the facility, the more you will spend. But Ikea also understands that sometimes you want to get in and out quickly, so they’ve added store maps to show you where you are in the store and shortcuts to help you navigate the store faster.
Understanding Customer Behavior With Market Research
In grocery stores, fruits and vegetables and cleaning products are often placed at opposite ends of the store because people often need the same type of products. To buy both, they have to walk around the entire store, increasing the chance that the user will find something else they want to buy. Also think about products placed at the end of aisles or in separate displays in the middle of the main aisles. ‡
Store locations also influence behavior. Tim Hortons has done a great job in positioning its stores. There are more than 4,000 restaurants in Canada, so whether you’re in downtown Toronto or driving through the small town of Springhill, Nova Scotia, chances are you’ll pass a Tim Hortons. You can also buy Tim Hortons coffee at airports or anywhere with foot traffic, meaning lots of people walking by. ‡
Physical factors that businesses can control, such as store layout, in-store music, lighting, temperature, and even scents, are called atmosphere. You may have visited an apartment building office and noticed how nice and smelly it was. This is not a coincidence. The building managers try to get you to stay a while and look around their premises. Research shows that “strategic flavoring” results in customers staying in stores longer, buying more, and leaving better impressions of the quality of the store’s services and products. Another example is the mirrors near hotel elevators. Hotel operators have found that when looking at themselves in mirrors, people feel they don’t have to wait as long for their elevator (Moore, 2008).
However, not all physical factors are under the company’s control. Rainy weather can be good for some businesses, such as umbrella makers like Totes, but a problem for others (Totes-Isotoner, n.d.). Beach resorts, outdoor concert venues, and golf courses suffer when it rains. Businesses like car dealerships also have fewer customers because most people don’t want to test drive a car in the rain.
Major Factors Affecting Consumer Buying Behavior (explained)
Companies often try to deal with physical factors such as bad weather or situations that affect consumer buying patterns by offering price discounts or alternative ways to shop. For example, many resorts offer consumers discounts on trips to beach destinations during typhoons. During the COVID-19 pandemic, stores have shifted to a Click and Collect model where customers are unable to walk into stores and cannot quickly expand delivery capacity to deliver products directly to customers’ homes. customer. Customers can order products online and come to the store when the item is ready to be picked up. The employees released the goods to the customers. ‡
Crowding is another factor in the situation. Have you ever failed to buy something or left a store because it was too crowded? Some studies have shown that consumers feel better about retailers who try to prevent overcrowding in their stores. However, other studies have shown that, to some extent, crowding can have a positive effect on an individual’s shopping experience. Herd behavior refers to a type of decision making in which people act as a group rather than making decisions as individuals (Gaumer & LaFief, 2005). Humans are naturally curious. If people are standing in line to buy something, you want to know why. Should you be lining up to buy one too? Black Friday sales are when stores offer special deals for one day and are open early in the morning. ‡
It used to be thought that buying an individual disposable plastic water bottle was a healthy and safe way to drink water instead of drinking tap water. The trend today is to carry recyclable water bottles that you fill with tap water. Social norms refer to expectations of what you should say or do in specific situations based on the values of a social group or society. Now, some people will judge you negatively for carrying non-recyclable plastic bottles. So, what others think about you can affect the product other members of your social group see. ‡
Companies like Pampered Chef, who sell their products at parties, understand that social status is important. When you’re at a Pampered Chef friend’s party, you don’t want to look cheap or let your friend down by not buying anything. If you drink too much when you are with your friends because you are worried about what they will think, your consumption is influenced by the people you are with (Gregory & Munch, 1997).
Management Studies: Factor Determining Organizational Buying Decision
The time of day, time of year, and how long consumers feel they have to shop all affect what they buy. Researchers have even discovered that whether a person is a “morning person” or a “night person” affects shopping patterns. Have you ever been to the grocery store when you were hungry or after paying when you had money? When you are hungry or have money, you can buy more than at other times. Seven-Eleven is a company that is very sensitive to time and its impact on customers. The company’s point-of-sale systems at the checkouts track what sells well and when. The goal is to get products to the shelves when and where consumers want them. For example, Seven-Eleven Australia offers fresh donuts from the Krispy Kreme brand in the morning. Seven-Eleven Indonesia has free internet, indoor and outdoor seating, and live music at night. 7-Eleven, Denmark, offers quick snacks and healthy meals throughout the day (Klook Team, 2020). ‡
Companies around the world know that people are short on time and are looking for ways to accommodate them. Some doctors’ offices offer speed shots for patients in a hurry and for elderly patients who have difficulty getting out of their cars. During the COVID-19 pandemic, testing and vaccination has been proposed as a way to keep people apart and speed up the process. ‡ For example, on Amazon, if you know what you want to order, to speed up the ordering process, simply click “Buy Now” and Amazon will use your stored information, default method of payment, and shipping address to complete the transaction. ‡
Why you shop also affects how much time you spend shopping. Are you in a rush to buy? Buying for a gift or special occasion? Are you buying something to complete a task and need it quickly? In recent years, Shoppers Drug Mart locations have popped up across Canada. One-stop shopping is one of the main reasons. Shoppers offer a wide selection of products and services, from prescriptions and over-the-counter drugs to gifts and cards, as well as groceries. This means you can go to a store and get everything you need. Many of these stores are open 24/7 in areas where a grocery store might not be. ‡
Buying a gift may not be an emergency, but you may not want to spend a lot of time buying it. Gift cards have become popular because you don’t have to think about what the person wants or spend time browsing in a store or online. You can purchase gift cards for online or offline merchants at their store, online, or at your local grocery or drug store.
Factors Influencing Consumer Behavior Analytics
Conversely, let’s say you need to buy something expensive, like a luxury watch. You can buy it online, but feel free to do so. What if the watch is fake? What if you don’t like the way it fits your wrist and want to return it
Factors that influence consumer behavior, consumer behavior psychological factors, factors that affect consumer behaviour, factors of consumer behavior, factors that affect climate, factors that affect consumer buying behavior, consumer behavior factors, cultural factors that influence consumer behavior, factors that influence consumer buying behavior, consumer behavior cultural factors, what factors influence consumer behavior, psychological factors that influence consumer behavior