Human try to imitate other humans and also wish to be socially accepted in the society. If the economic situation of a consumer is not good or stable it will affect his purchase power, in fact if the consumers or the economy of a nation is suffering a loss it defiantly affects the consumers purchase or spending decisions. Reason being the consumers today have a huge variety of choice and a number of factors influence the behaviour of the consumers. When consumers experience a positive economic environment, they are more confident to spend on buying products. Let’s look at them in detail. A consumer is the end user or a target to whom the goods and services are sold. For example, some consumers are technoholics. Whereas, a weak economy reflects a struggling market that is impacted by unemployment and lower purchasing power. Consumer behaviour is very complex and dynamic which keeps on changing constantly. For example when a consumer leads a healthy lifestyle, then the products he buys will relate to healthy alternatives to junk food. Learning and experience both again play an important role in influencing the consumer’s behaviour as it influences their purchase decision. Some of the important psychological factors are: When a person is motivated enough, it influences the buying behaviour of the person. The behaviour of a consumer is not only influenced by their motivations and personalities but also their families and family members who can two or more people living together either because of blood relationship or marriage. This psychological factor decides the personality and lifestyle. Perception. These subcultural groups share the same set of beliefs and values. Various social factors influence consumer behavior. Social factors are also subdivided into the following. The buying behavior is highly influenced by the lifestyle of a consumer. Hence, the marketers try hard to understand the attitude of a consumer to design their marketing campaigns. Consumers have certain attitude and beliefs which influence the buying decisions of a consumer. Social Class 5. The study of consumer behaviour formally investigates individual qualities such as demographics, personality lifestyles, and behavioural variables (such as usage rates, usage occasion, loyalty, brand advocacy, and willingness to provide referrals ), in an attempt to … Let’s take a look at the notes given below to understand what influences consumer behaviour. Consumer behaviour is a physiological process it is all related to the emotions of the consumer. Motivation is activating the internal needs and requirements of the consumer. It comprises of both mental and physical activities of consumer. Economic Factors 2. The social class is not just determined by the income, but also other factors such as the occupation, family background, education and residence location. Economic factors bear a significant influence on the buying decision of a consumer. When a customer sees advertisements, promotions, customer reviews, social media feedback, etc. Beliefs and Attitudes 3. When a consumer tries to gain information about unfamiliar brands of familiar products of not very high value goods this is when a consumer makes a decision however occasionally. Understanding how consumer behavior impacts marketing renders it vital to understand those factors which affect consumer behavior and which include: Cultural Factors. D: Psychological factors that influence consumer behaviour are – 1. A vital part of the marketing process is to understand why a customer or buyer makes a purchase. These roles and status that they have to maintain also influences consumer behaviour as they decide to spend accordingly. Culture is the basic determinant of a person’s wants. These needs can be psychological needs, needs of security, social needs, esteem needs and also self actualizing needs. Consumers who have liquid assets tend to spend more on comfort and luxuries. The more active the consumers of the nation the more active will be the nation’s consumer market. Remember not just the income but even other factors describe social class of a group of consumers. Major Factors Influencing Consumer Behavior. Hence consumer perception becomes a great influence on the buying decision of consumers. Marketing campaigns influence purchasing decisions a lot. Factors Influencing Consumer Behaviour: Consumer behaviour is affected by a number of factors. relating to a product, they develop an impression about the product. A person has many needs such as the social needs, basic needs, security needs, esteem needs and self-actualization needs. The time required to gather such information is quite moderate for example buying of goods like clothes and cosmetics. Learning is the research of products and services before the consumer takes the decision of buying a product. Consumer behavior is influenced by cultural factors like social class, buyer’s culture, and subculture. Peer Pressure 7. Group refers to two or more people who interact to accomplish individual or mutual goals. Some of the cultural factors are: Cultural Factors have strong influence on consumer buyer behavior. A consumer is highly influenced by the amount of savings he/she wishes to set aside from his income. Factors that are personal to the consumers influence their buying behavior. I. Motivation 2. Lifestyle and Values 8. Psychological Factors. ©Copyright 2020 www.clootrack.com All Rights Reserved. The sub factors under personal factor are listed below. Decision making is the power given to the consumer. Geography 4. People originating from different cultures, sub cultures, occupations and even social class have different styles of living. ALL RIGHTS RESERVED. Everyone has been a consumer and participated in the consumer market. Understanding how to motivate your customer is a powerful tool. A number of personal factors also influence the consumer behaviour. Studying consumer behaviour is a challenge take look at a few challenges that is how can you study consumer behaviour, Buying of regular and daily goods that involve very less money and also minimum research work fits under this type of goods buying behaviour. If a person is in a high position, his buying behavior will be influenced largely by his status. Service offered to a consumer also matters in influencing their behavior. He can take the following decisions. But when the disposable income reduces, parallelly the spending on multiple items also reduced. They monitored consumer trends, as COVID-19 news reached the general public and found out that consumers go through six behavioral stages based on their awareness of the COVID-19 spread in their communities: 1. Finally, belief … As we reach adulthood and enter into it, our life becomes more complex and with it our needs become more comple… How can you motivate the consumer buying behaviour, helping him make a decision in selecting between products, the importance of their product and how will their decision affect them? In fact organizations produce separate products for different occupational groups. The organizations also need to understand how reusing products influences a consumer. Predicting single or consumer behaviour of a group is not just difficult because you never know what factors might influence them and when. There are four important psychological factors affecting the consumer buying behavior. The consumer psychology is different when they shop and make decisions of spending their money. Many small groups exert influence on a person’s behavior. Someone again, mind you this someone can either be an individual or an organization that pays a price to use the goods and services of an organization. Even buying a packet of chips from a store is being a part of the consumer market as you participate in the buying a packet of chips buy paying a sum for the purchase. A person tends to buy things that are appropriate to this/her profession. With the age and the life cycle the consumers … For example buying goods from the grocery store that are goods used on daily basis like milk, eggs, bread, etc. How a single or a group of consumer behavior does affects the society and the atmosphere and the economy of the nation. Economics explains consumer behaviour in relation to economic factors. Consumer behaviour is dynamic, consumer behaviour may change over a long time due to changes in age, experiences, lifestyles, income and other similar factors. Learning 4. Cash in hand, bank savings and securities are some examples of liquid assets. Customer Perceptions . Hence their buying behavior is influenced by other people around them. The way your target customer perceives the world or learns about your product, whether online or in person, can also influence behaviour. Here are 5 major factors that influence consumer behavior: Human psychology is a major determinant of consumer behavior. Lets us know the King first. When there is a surplus income available for the family, the tendency is to buy more luxury items which otherwise a person might not have been able to buy. You can define them as the nation, the religion, racial groups and also groups of people sharing the same geographic location. Every individual look as the world and the situations differently. Life style can confirm the interest, opinions and activities of people. These factors are consumers, small groups, family, and social roles and status and can be explained as under : Reference Groups. The consumer chooses between competitors and their products. A consumer can be someone who will buy either goods or services or you can also specify the goods and services as economic services or products, or good or commodities. The needs are also different. The differences in consumer behaviour are due to individual factors such as the nature of the consumers, lifestyle and culture. Learning can be either conditional or cognitive. This group often includes an opinion leader. The demonstration influence is also dependent upon psychology of an individual.
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