What Influences Consumer Behaviour?

What Influences Consumer Behaviour

Consumer behavior is the study of how people buy, use, acquire and dispose of company goods and services. The consumer can purchase goods and services, but they can also obtain them through bartering, lending, or leasing. Once goods are purchased, the consumer can then use them in a variety of ways.

Product is consumed one time like cold drinking or it could be used over time like a mobile phone. The buying behavior of others can also be affected by how much you use it. Positive reviews can be a way for satisfied customers to recommend the product to others. Conversely, unhappy consumers can make complaints and encourage other consumers not to buy that brand.

Consumer behavior also includes the actions that occur after a product has been used. Some companies invest a lot of money to make products that can be recycled. These companies are more popular with consumers who care about the environment and are more likely for them to sell their products and services.

We can generally say that there are five major factors that influence consumer behavior. These factors determine whether a target customer buys a product or not. These are Psychological, Cultural, Economic, Social, and Personal factors.

Psychological Factors

The ability of a person to comprehend information, dissatisfied needs, and their attitude can influence their buying behavior. Consumers’ beliefs and mental state will determine how they react to marketing campaigns.

Motivation

Motivation is an inner drive that we use to achieve what we want. Each person has their own needs. These include physiological, security, social, self-actualization, and esteem needs. The most basic needs, such as water and food, are the most important in nature. Others are less urgent. A need is an influencing consumer behavioral factor when it is more urgent to make the person seek fulfillment of that need.

Attitudes

Attitudes refer to the way you feel about products, services, or companies. Marketers aim to change attitudes and beliefs to improve brand image and consumer buying behavior by creating special marketing campaigns.

Perception

The biggest influence on consumer behavior is the perception of a product. Customer perception refers to the process by which a customer gathers information about a product, and then interprets that information to form a meaningful picture of the product.

Customers form an impression of a product when they see advertisements, customer reviews, social media feedback, and other promotional materials. Consumer perception has a significant influence on consumers’ buying decisions.

Learning

A person who purchases a product learns more about it. Learning is a process that takes time and can be facilitated by experience. Skills and knowledge are the keys to a consumer’s ability to learn. Although a skill can sometimes be learned through practice, knowledge is only gained through experience.

Conditional and cognitive learning can be used to learn. Conditional learning is where the consumer is repeatedly exposed to a situation, which causes him to develop a response. Cognitive learning allows the consumer to use his knowledge and skills to solve the problem.

Social Factors

People want to be socially accepted so they mimic others, including their purchases. The following are some of the most important social factors that influence consumer behavior:

Family

Family members directly influence consumer buying behavior. People develop preferences by watching their families buy products as children and continue to purchase the same products throughout their lives. Companies are therefore interested in knowing which family members have the greatest influence on certain purchases.

Reference Groups

Referencing groups are any group (social groups, workgroups, or close friends) that a consumer can identify with and might want to be a part of. There are many brands and products that have different influences on reference groups. If the product is visible, such as a dress or car, the influence of the reference group will be greater on consumer behavior.

Status and Roles

The activities that an individual is expected to do are called roles. Each role has a status. If a woman is a financial manager, she can play two roles: mother and finance manager. She is therefore heavily influenced by her job and will choose products that communicate this.

Personal Factors

The consumer’s behavior can also be influenced by personal factors. Lifestyle, income, occupation, age, and self-concept are all important factors that can influence buying behavior.

Age

The consumer’s buying habits can be affected by their age and their life-cycle. As time passes, it is evident that consumers make changes to their purchasing decisions. The family life cycle includes different stages, such as young married couples, singles, and unmarried couples. This helps marketers develop products that are appropriate for each stage.

Occupation

A person’s occupation has a significant influence on their buying behavior. A marketing manager might buy business clothes, while a lower-ranking worker will choose rugged work clothes.

Economic Situation

The consumer’s economic status has a significant impact on their buying decisions. Higher-income customers will buy more expensive products. A person with low savings and income will buy cheaper products.

Lifestyle

Another important factor that influences consumer buying behaviour is the customer’s lifestyle. Lifestyle is the way that a person lives within society. It is reflected in the environment in which he/she lives. It is influenced by customer opinions, activities, and influences his behavior and interaction in the world.

Personality

Personality can change from one person to another, depending on where they are located and when they were born. It can have a huge influence on customers’ buying decisions. In reality, personality is more than what you wear. It is the whole of how you behave in different situations. You can use it to predict the behavior of a particular consumer for a product or service by using different characteristics like dominance, aggression, self-confidence, and aggressiveness.

Cultural Factors

Cultural factors play a crucial role in influencing consumer behavior.

Culture

Culture is a complex belief system about human behaviour. It includes human society, the roles it plays, and the behavior of that society. It is important to examine culture as it influences consumer behavior.

Subculture

A sub-culture is a group of people that share the same values and have the same traditions. They can be defined as the nation, religion, or groups of people living in the same geographical area. Marketers develop different marketing strategies to grab market opportunities in these domains.

Social Class

Every society has a social class. Because the buying behavior of different social classes is often very similar, it is important to identify which social class is being targeted. It is important to remember that not only income but also other factors can be used to describe the social class of a consumer group.

Economic Factors

The economic condition of a country or market greatly influences consumer purchasing habits and decisions. A strong economy means a country is more prosperous. This results in a greater market supply and higher consumer purchasing power.

Consumers are more likely to buy products when they feel a positive economic climate. These are some of the most important economic factors that can influence consumer behavior.

Personal Income

A person with a greater disposable income will have a higher purchasing power. The money left over after paying income tax is called disposable income. An increase in disposable income leads to higher spending on different goods and services. However, if disposable income decreases, so do the expenditure on multiple goods and services.

Family Income

Family income is the sum of all income earned by a family. It influences the purchasing behavior of the family. After the family’s basic needs are met, the surplus family income can be used to purchase shopping goods, durables, and other luxuries.

Consumer Credit

Consumers who are offered credit cards buy goods more often. Sellers make it easy for consumers to get credit. This can be done through credit cards, easy installments, and bank loans. Consumers are more likely to purchase luxury and comfort goods if they have access to higher credit.

Liquid Assets

People who have more liquid assets tend to spend more on comfort and luxury goods. Assets that can be easily converted into cash, are called liquid assets. Liquid assets include cash in hand, savings from banks, and securities. A consumer who has more liquid assets can feel more confident buying luxury goods.

Savings

Individuals’ buying habits can also be influenced by their savings. An individual’s spending habits will change if they have more savings. A person who decides to save more from his current income will be able to spend less on comforts or luxuries.

Consumer Buying Process

Recognition needs and wants

Without knowing what you need or want, you can’t make a purchasing decision. A need is a requirement for a product or a characteristic of a product you must have.

You need water to survive. A desire, on the other side, is a product or characteristic you want but are not required to survive. You don’t necessarily need soda to quench your thirst.

Sometimes, problems can lead to needs. For example, you might lose the cell phone that you use for business. You may feel the need to purchase a product or have been influenced by advertising or seeing someone enjoy it. You may feel the need for a new phone but you see so many of your colleagues using their phones that you want one too.

Information Gather

A consumer will search for information about products and services once they have identified a problem or need. You can search online, watch videos online, consult with your family or friends, or visit a shop or dealership to find out more information. Some searches take only minutes while others can last several weeks or even months.

Evaluation of Other Alternatives

The consumer should have done enough research to find the right product for him. Next, the consumer must evaluate other products that could solve his problem. Evaluation of alternatives involves examining a variety of information from various sources.

Consumers evaluate alternatives based on many attributes. Consumers consider the following factors: appearance, durability, quality, and price.

There are many options on the market that can solve a consumer’s problem. After evaluating all options, the consumer must make a decision. The consumer will then rank his options and choose the product that best suits his needs.

Purchase Decision

This stage is where the consumer chooses the most promising brand from several available brands in the market. This stage allows consumers to evaluate different brands within the selection set. It is preferable to choose a brand that provides maximum benefits and satisfaction.

Simply put, comparing brands will help you choose the most appealing brand that offers more value for your money. The comparison shows the superiority/inferiority of the brands.

Post Purchase Behavior

The final stage of the consumer decision process is post-purchase behavior. This is where the customer evaluates his satisfaction with the purchase. The customer’s feelings about the purchase can influence his decision to purchase another product or look at other brands. Customers can also influence others’ purchase decisions by sharing their feelings about the purchase.

This stage is also a common one for buyer’s remorse. The customer might feel anxious or psychologically tense after purchasing the product. The customer may feel like he is being questioned about his decision.

Customers may be exposed to advertisements for products or brands that are similar, which might make it difficult to choose the right product. Sometimes, a customer might change their mind and decide not to purchase the product.

In an effort to influence consumers’ feelings about future purchases, some companies are now offering post-purchase communications to engage them. To enhance and extend post-purchase communication between companies and their customers, they may offer money-back guarantees.

Related Articles:

Augmented Marketing

Augmented marketing refers to the addition of value through a creative offer. Augmented reality-based product visualizations can be used to […]

read more...

Behavioral Segmentation

Behavioral segmentation is a type of marketing segmentation in which customers are categorized into groups based on a common behavioral […]

read more...

Agile Marketing

Agile marketing is a tactical marketing method in which marketing teams pick high-value tasks first to complete them on time […]

read more...

Leave a Reply

Your email address will not be published. Required fields are marked *