Factors That Influence Consumer Buying Behavior – One of the most important things to consider when running an e-commerce business is the factors that influence consumer behavior. In other words, the elements that influence a potential sale.
Knowing what drives the buying decision of your target audience allows you to make appropriate changes in your business strategy to attract buyers and increase sales. Here’s a look at the top factors that influence consumer purchasing decisions.
- 1 Factors That Influence Consumer Buying Behavior
- 2 Consumer Decision Process [buyer Decision Process]
- 2.1 Pdf) Factors Influencing Consumer Buying Behavior: A Study On Cosmetic Products In Dhaka City
- 3 Consumer Behaviors, Preferences, And Shifts In Physical Retail Stores
- 4 Factors Influencing Consumer Buying Behavior
Factors That Influence Consumer Buying Behavior
According to a recent study, the main reason why shoppers may decide to buy from a brand is the quality of its products. As many as 53% of global consumers consider it a factor influencing their purchase decision.
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The second most important factor influencing buyers’ purchase decisions is product price. Over one in three consumers (36%) see this as a factor that will make them consider buying from a brand.
Trust completes the three main factors that influence consumer behavior. 32% of shoppers say they check whether a brand and its products are trustworthy before deciding to buy them. The same survey results show that quality, price and trust are inextricably intertwined. Buyers indicate that they would rather pay more to purchase a quality item that will last. This mentality is especially prevalent among shoppers who buy luxury products. In fact, experts say that lower prices can reduce shoppers’ confidence in a product and, consequently, their willingness to buy.
The fourth through sixth most important factors influencing purchase decisions are brand reputation, good reviews from existing customers, and whether a brand offers discounts. Specifically, just under one in three consumers (31%) globally say they consciously consider these factors when deciding whether to buy from a brand.
This follows whether the brand’s products match their personality and style. 29% of consumers say this is a factor that influences their decision. Another 27% say good customer service is key to convincing them to buy.
Definition And Examples Of The Consumer Decision Making Process
Brand awareness is also one of the most important factors influencing consumer behavior. 23% of people say that knowing a brand determines whether they buy it. Last but not least, the tenth most important factor that buyers consider when shopping is whether products are easy to find and buy.
A local consumer may not be able to make any purchase, he is influenced by many factors such as money, values, culture, status, family, psychology, etc. A careful study of the factors influencing consumer buying behavior helps the marketer or company to develop useful marketing plans.
One of the factors that influence consumer buying 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:
Consumer Decision Process [buyer Decision Process]
Level of personal income: the consumer’s ability to pay depends on the level of his personal income. The more income a consumer earns, the greater their purchasing power will be.
Income of other family members: When you add earning members, the purchasing power of the other family member is affected in a positive way. Under such circumstances, they are able and willing to spend more money on the products they want.
Expectation of future income: A consumer’s optimism or pessimism about his future income also determines the level of his current spending. If he expects that he will receive additional income from another source in the near future, he will be willing to spend more and vice versa.
Availability of liquidity. Liquid assets are those that are readily available for conversion into cash. The level of consumer spending on products and services also depends on the availability of liquidity such as bank balance, cash, stocks, etc.
Pdf) Factors Influencing Consumer Buying Behavior: A Study On Cosmetic Products In Dhaka City
Availability of consumer credit. If consumers have an adequate line of credit, they will tend to spend more on products and services, even if their regular income is low.
Past spending habit. Consumer buying behavior is also influenced by their past spending habits. If the consumer’s standard of living was high in the past, the consumer’s spending level will also be higher, although he may not have adequate income during the period because he is used to spending more. In such a situation, he would be forced to sell his fixed assets as well.
Society consists of individuals, groups and families with different natures, tastes, values, motivations, attitudes and lifestyles. Therefore, the buying behavior of individuals, groups and families differs from each other.
A successful marketer is one who knows how to do detailed research on significant social factors, including family, reference group, social class, opinion leaders, and culture.
Pdf] A Study Of Factors Affecting Consumer Buying Behaviour In Online Shopping (case Study: Digikala Online Store)
Family: The family is a basic social institution. It is a group of persons related to each other such as father, mother, sons, daughter, grandfather, grandmother, nieces, nephew, uncle, etc. The family is a major group that has a significant influence on an individual’s consumer 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. A reference group can be family, friends, belonging groups, neighbors, etc.
Social Class: Social classes are formed due to differences in income levels. The three main social classes are: Upper Class: They have a high income and a luxurious lifestyle. Middle class: have an average level of income. Lower class: This is a class with very low income and low purchasing power.
Opinion leaders: Opinion leaders are individuals who lead specific reference groups. Opinion leaders possess a disproportionate amount of leadership qualities. Opinion leadership refers to the degree to which an individual influences others in a given choice situation. The marketer must be able to identify such opinion leaders and analyze their roles that influence the groups’ purchasing behavior.
Pdf) Factors That Influence Consumer Behavior In The Purchase Of Durable Household Products
Culture: Culture is the totality of knowledge, beliefs, art, morals, laws, customs, religion and any other abilities and habits acquired by people as members of society. The consumption pattern of each of these groups differs significantly from each other. For example, the shopping pattern of a vegetarian may differ from that of a non-vegetarian.
Psychology is a state of mind that cannot be studied using general information and analysis; requires interpretation or in-depth knowledge of the user. Psychology is another important influencing factor that has a great impact on consumer buying behavior. When analyzing consumer psychology, a marketer must be able to analyze:
Human psychology is governed by several factors that must be carefully analyzed by the marketer. These factors include:
Motivation: Motivation is goal-directed activity. It is an inner emergent force that directs human behavior towards its goal. The action of the buyer at any time is influenced by a number of reasons. A person has many unmet needs and cannot be motivated.
Consumer Behaviors, Preferences, And Shifts In Physical Retail Stores
Perception: Perception means knowledge or idea about a product or situation received or derived by a person. In other words, perception is a process by which a person acquires or perceives the meaning of an object or situation. A motivated person is ready to take action in some way. The way a motivated person acts is influenced by his perception of the situation. Two people in the same motivated state can act very differently because they perceive the situation differently.
Learning: When people perceive the meaning of an object or situation, they act. 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.
Beliefs and Attitude: A belief is a descriptive thought a person has about something, while an attitude is knowledge about an object or situation. Customers believe that iPhone is a high-quality product, while Micromax for them is a product that provides smartphone services at a minimum price.
Personality: Personality refers to a person’s distinctive psychological characteristics that result in relatively consistent and long-lasting responses to his or her environment. Personality is usually described in terms of traits such as assertiveness, self-control, dominance, autonomy, sociability, adaptability, aggressiveness, conservativeness, defensiveness, etc. Marketers generally believe that a person’s personality influences the brand of products he/she buys.
Factors Influencing Consumer Buying Behavior
Consumer buying behavior is also influenced by demographic factors. These are individual characteristics such as age, gender, culture, income, family size, occupation, marital status, etc.
These demographic characteristics may influence those involved in family decision-making. They can affect how quickly a person moves through the consumer buying process. They also influence certain stages of the decision-making process. These factors can also influence the extent to which an individual uses products from a particular product category.
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