Factors That Influence Consumer Behavior – Business Loans Money Management Taxes HSN & GST Code List Trademark Finder List Classes & Registration Gold Investment News Import & Export Salaries & Wages Credit Score & CIBIL Payment Management Success Stories Business Growth
Consumer behavior includes the manner in which the consumer(s) accept, reject or accept and choose, buy and use various goods, ideas and services offered in the market. Consumer behavior also includes the consumer’s response after using a product, idea, or service—whether they turn away or come back for more.
Contents
Factors That Influence Consumer Behavior
This article discusses types of consumer behavior, factors that influence consumer behavior and other related information.
What Roles Do Personal Or Demographic Factors Play In Consumer Decision To Purchase Product Or Service?
A buyer and a customer are not the same thing. The customer buys the product, but does not need to use it. The consumer cannot buy, but is the end user of the product.
Understanding consumer behavior is critical to making business decisions. Because of this, businesses can make better and more efficient decisions about products and services. By understanding the needs of the consumer, they can help and provide consumers with better products, services or offers.
Every consumer needs a different thought process and attitude towards certain products. If the company does not understand the consumer reaction to the product, there is a high chance of product failure. Marketers need to understand consumer expectations. It helps them to understand the psychology of the consumer. It is important to get access to the type of product that consumers like in order to market it.
Human psychology affects human thinking and thus decisions about purchasing. Some of the important psychological factors that influence consumer behavior are:
Pdf) Factors Influencing Consumer Behavior And Prospective Purchase Decisions In A Dynamic Pricing Environment An Exploratory Factor Analysis Approach
The motivation to acquire or possess something is a powerful emotion that influences the buying behavior of consumers. A person buys primarily to fulfill his needs. Needs can be of different types – basic needs, safety needs, social needs, the need to improve status and automation needs. Since basic needs and security are the most important, the consumer is encouraged to fulfill these needs first.
Consumer buying is also influenced by perception. Advertising in newspapers or on roadside boards, reviews or feedback all create an image of a particular product in the consumer’s mind. This perception influences the consumer’s purchasing decision.
Learning is of two types – conditional or conceptual. In both cases, the consumer uses his knowledge and skills to purchase the product.
Consumer purchases are also influenced by perceptions or attitudes and perceptions. The perceived quality of a product draws consumers to certain brands. Belief in the quality and performance of a product based on past experience of using it draws consumers to the same product. Understanding this behavior helps marketers to make and sell their products accordingly.
Consumer Markets And Consumer Buying Behavior
The buying behavior of consumers is also influenced by the people they live and travel among. The social factors involved are:
The family has a great influence on the consumer’s purchasing power. A person’s likes and dislikes are formed from childhood, so he buys certain products out of habit and follows the belief that they are good, even after the consumer has grown up.
The people a consumer interacts with influence their purchasing decisions. Generally, all members of such groups have similar product preferences, shopping locations, and similar purchasing behavior.
A person’s mood affects how they spend money. A person who is in a high position and who goes in elite posh circles will spend a lot of money because he has to maintain his status. Low income people will have a different purchasing pattern because their purchasing power is different from the elite group.
Top 20 Factors Influencing Consumer Behaviour
People of certain communities maintain certain ideas and values. Their social class and culture greatly influence their buying behavior.
Human characteristics vary from person to person, so there is no uniformity in consumer behavior. Human characteristics include −
Age plays an important role in individual decision making. There will be a difference between the purchases of school youth and college seniors. Young couples spend on home goods and luxury goods, while middle-aged people have limited choices.
The level of income also determines the purchasing power and behavior of a person. Consumers in the highest income bracket have more disposable income and spend on luxury activities in addition to their regular purchases. People from middle and low income groups spend a large part of their income to provide basic needs such as food, clothing and education for the family.
Marketing An Introduction
People with different occupations show different buying behavior. A person from the corporate sector will spend on formal wear, while a creative designer or writer will wear casual clothes.
Lifestyle is an individual’s way of living in society. This also shapes their buying behavior. A healthy consumer will buy healthy foods and different clothes. People who have to travel alone invest in clothes that are good, durable, fit well and so on.
The economy of a country somehow affects the buying habits of consumers. A nation with a strong economy leads to higher purchasing power of consumers and thus increases the supply of money in the market. A nation with a weak economy has a weak market, consumers with little purchasing power and people suffering from unemployment have a negative impact on it.
A consumer with high disposable income spends freely on other essentials and pleasures after meeting basic needs. As disposable income decreases, these costs decrease.
Factors Influencing Marketing Strategy: Analyzing, Targeting, & Positioning
Family income refers to the total income of all earning members of the family. Most earning members lead to high incomes and this increase in income is essential to meet basic needs and comforts. Therefore, higher household income leads consumers to buy more freely and more.
Simple credit for the purchase of goods results in increased costs. Use of credit through credit cards, bank loans, installment sales, easy installments, etc. leads to the purchase of luxury and comfort.
Consumers use liquid funds to spend on comfort and convenience. Liquid assets such as bank savings, securities, cash etc. give the consumer the prospect of spending on luxury goods.
A consumer’s decision to save more of his income reduces his spending, but if a consumer wants to save a small amount, he spends more of his money on buying different products.
Understanding Consumer Behavior In Marketing
These are some of the basic factors that influence consumer behavior and marketers must be aware of them in order to make the right marketing decisions. No matter how big or small, we make purchasing decisions almost every day and consider satisfying a need before making any purchase decision.
Various factors can influence this need, many of which are detailed here. Businesses can use each of these elements as a tool to improve their chances of making a sale. We hope this article can give you a thorough understanding of these features.
Follow the latest updates, news blogs and articles related to Micro, Small and Medium Enterprises (MSME), Business Tips, Income Tax, GST, Payment and Finance.
Answer: A simple credit for the purchase of goods results in an increase in expenses. Use of credit through credit cards, bank loans, installment sales, easy installments, etc. it leads to the purchase of luxury and comfort.
Factors Influencing Consumer Behaviour
Answer: The following are economic factors that influence consumer behavior: Personal income Family income Consumer credit Liquid assets Savings
Answer: Discount buying behavior means that the consumer has selected a product and is willing to buy it, but is not sure that it will be the right purchase. They fear that they might regret his decision. This confusing attitude and need for reassurance that they have made the right decision is part of such behavior.
Answer: Human psychology influences an individual’s thinking and decision-making about purchasing. Some important psychological factors that influence consumer behavior are: Motivation Perception Learning Attitudes and Beliefs
Answer: There are four types of buyer behavior: Complex buying behavior Slowing down buying behavior General buying behavior Diversified search behavior
Pdf] Identifying Key Factors Affecting Consumer Decision Making Behavior In Cinema Context
Answer: Consumer behavior includes the manner in which the consumer(s) accept, reject or accept and choose, buy and use various goods, ideas and services offered in the market. Consumer behavior also includes the consumer’s response after using a product, idea, or service—whether they turn away or come back for more.
Answer: Consumer Behavior is a study that analyzes consumers to find out how they select/select a product or service. Consumer behavior is important because it helps make better decisions about products and services. Knowledge of consumer behavior helps tailor offerings to better match the desires of the target market.
Disclaimer: The information, products and services provided on this website are provided “as is” and “as available” without warranty or representation, express or implied. Blogs are intended solely for informative discussions about financial products and services. does not guarantee that the Service will meet your requirements or that it will be uninterrupted, timely, secure, and that any errors will be corrected. The material and information contained herein is for general information purposes only. Consult an expert before relying on information to make any legal, financial or business decisions. Use this information at your own risk. it won’t be
Psychological factors that influence consumer buying behavior, factors that influence consumer purchasing decisions, what factors influence consumer behavior, psychological factors that influence consumer behavior, influence on consumer behavior, factors that influence human behavior, factors that influence consumer behaviour, factors that influence behavior, consumer behavior factors, factors of consumer behavior, factors that influence consumer buying behavior, cultural factors that influence consumer behavior
