Higher family income influences the people in the family to buy more. These factors are not individualistic and are external to the individual. Consumers who have liquid assets tend to spend more on comfort and luxuries. Hence, our behaviour patterns, likes and dislikes are influenced by the... 3. The decision of buying or not a product in a store or at a shop, The consumer will decide if he would want to be, The consumer decides what they want to buy and when they want to buy it. Factors influencing consumer behaviour Pinki Rani* Institute of Law Kurukshetra, University Kurukshetra, India Corresponding author . (Spends extravagantly) © 2020 - EDUCBA. Businesses often try to influence a consumer’s behavior with things they can control such as the layout of a store, music, grouping and availability of products, pricing, and advertising. In short, perceived usefulness will influence consumersâ€™ intention to purchase in high risk condition (Xie et al., 2011). A number of personal factors also influence the consumer behaviour. The consumer chooses between competitors and their products. Valuation, Hadoop, Excel, Mobile Apps, Web Development & many more. Factors Influencing Consumer Behaviour: Influence of Culture on Consumer Behaviour . Human beings are social animals. The buyer in influenced by various variables like cultural, social, personal, and psychological factors. Learning and self educating these days is done online and also in groups. Marketing professionals take physical factors such as a store’s design and layout into account when they are designing their facilities. Factor affecting Consumer Behavior Cultural Factors. Cultural Factors Influencing Consumer Behavior Definition: The Cultural Factors are the factors that an individual learns at a very early stage of life due to socialization within the family and other key institutions, such as the set of values, preferences, behavior patterns, and perceptions are learned as the individual grows. This step will involve the preliminary identification of factors influencing consumer behaviour namely, demographic, psychographic and behavioural factors, which will then be taken as the basis for the whole study. Age of a consumer and his life cycle are two most important sub factors under personal factors. You can define them as the nation, the religion, racial groups and also groups of people sharing the same geographic location. These factors are considered as social factors. For example, many consumers choose to buy Toyota cars because they have had good experiences with their previously owned Toyota cars. Learning is the research of products and services before the consumer takes the decision of buying a product. Cultural Factors Culture is one of the key factors that influences a consumer’s buying decisions. However, some factors are more effective, while others have negligible effect on consumer behaviour. You need to understand how does the customer think, reason, feel, and select between the option of products and services offered. Learning can be either conditional or cognitive. Culture is one of the key factors that influences a consumer’s buying decisions. This attitude plays a significant role in defining the brand image of a product. Factors Influencing Consumer Behaviour:. Culture forms the ideas, beliefs, values and behaviour of a person living in a particular region. In the initial weeks, the market research proposal will be composed. For example, a doctor would buy clothes according to this profession while a professor will have different buying pattern. 4. Frankly, because Amazon spoils its customers. Life style can confirm the interest, opinions and activities of people. No, you aren’t necessarily directionally challenged. One of the factors influencing consumer buying behaviour significantly is the age. Here are some articles that will help you to get more detail about the Influence Consumer Behaviour so just go through the link. Presumably, the longer you wander around a facility, the more you will spend. Social factors 3. Whereas in cognitive learning, the consumer will apply his knowledge and skills to find satisfaction and a solution from the product that he buys. A third factor that plays huge importance into consumer behavior is social proof. People who belong to different organizations, groups or club members, families play roles and have a status to maintain. If a consumer decided to save more, then his expenditure on buying reduces. Motivation arouses and directs the consumers towards certain goals. Grocery stores frequently place bread and milk products on the opposite ends of the stores because people often need both types of products. Along with age, there are other personal factors of consumer behaviour like gender, body type, occupation, religious preference, colour preference, sexual orientation, lifestyle, etc. Important factors that influence consumer behaviour 1. The buyer in influenced by various variables like cultural, social, personal, and psychological factors. These needs can be psychological needs, needs of security, social needs, esteem needs and also self actualizing needs. He can take the following decisions. In fact this is one major factor that influences consumer behaviour. Social factors are also subdivided into the following. Within a cultural group, there exists many subcultures. Occupation. Customer perception is a process where a customer collects information about a product and interprets the information to make a meaningful image about a particular product. Answer 4. This group often includes an opinion leader. The occupations group has above average interest in buying different products and services offered by organizations. Buying of products such as computers, laptops, property, cars, education, etc which requires a huge amount of research and economic involvement comes under this category or type. Those factors are known as internal factors or personal factors. Also, if I have to buy from a website other than Amazon.com, I feel cheated if I am not offered free 2-day … The Government is one of the prominent ones among these factors which have considerable bearing on the marketing decision-making. Learning comes over a period of time through experience. Humans are social beings and they live around many people who influence their buying behavior. The job of the organizations here is to educate the consumers about their goods and services and motivate them to buy their goods and services. Why do we need to learn about consumer buying behavior?The simple answer is that no longer can we take the customers for granted. Remember that consumers are spending more time online and rely on reviews to make purchasing decisions. 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. These personal factors differ from person to person, thereby producing different perceptions and consumer behavior. Comprehension of these factors is instrumental in segmenting and positioning products and in motivating consumers to buy. Predicting single or consumer behaviour of a group is not just difficult because you never know what factors might influence them and when. In this process the consumer starts with recognizing the need of the product, and then finds a way or a medium of solving these needs, makes purchase decisions like planning whether he should buy or not buy a certain product, and then he confirms the information, jots down a plan and then implements the plan of making the purchase. Human... 3. While a skill can be gained through practice, knowledge can be acquired only through experience. Reason being the consumers today have a huge variety of choice and a number of factors influence the behaviour of the consumers. Middle-aged are focused on house, property and vehicle for the family. The social situation you’re in can significantly affect your purchase behavior. A person or an organization who is the final user of the goods and the services produced by a company. Whereas low-income or middle-income group consumers spend most of their income on basic needs such as groceries and clothes. For example buying goods from the grocery store that are goods used on daily basis like milk, eggs, bread, etc. Basically, culture is the part of every society and is the important cause of person wants and behavior. Out of 11000 new products introduced by 77 companies, only 56% are present after 5 years. The producers of the goods and services would lack the motive of producing as there would be no demand for their products. When more people are earning in the family, there is more income available for shopping basic needs and luxuries. ADVERTISEMENTS: These factors include culture, subculture, social class, reference group and family influences. In conditional learning the consumer is exposed to a situation repeatedly, thereby making a consumer to develop a response towards it. Lets us know the King first. Consumers have certain attitude and beliefs which influence the buying decisions of a consumer. The consumers also take decisions based on the after sales services and the service provided by the organization and their distributors. These are: Psychological Factors: The human psychology plays a crucial role in designing the consumer’s preferences and likes or dislikes for a particular product and services. Consumer behaviour is a physiological process it is all related to the emotions of the consumer. Have you ever been in a department story and couldn’t find your way out? Culture 2. Social Factors. 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. 2. When there is higher credit available to consumers, the purchase of comfort and luxury items increases. These factors refer to the set of values, preferences, perceptions, and ideologies of a particular community. Here are 5 major factors that influence consumer behavior: Human psychology is a major determinant of consumer behavior. 53 and is influenced by cultural trends as well as his social and societal environment. Consumer behavior is deeply influenced by cultural factors such as: buyer culture, subculture, and social class. While our preferences change with age and level of education, sex and income also affect our product choices and decision making patterns. Economic factors bear a significant influence on the buying decision of a consumer. The author describes in this article the factors which influence consumer behaviour and also presents how it has changed over the past two years. A consumer is highly influenced by the amount of savings he/she wishes to set aside from his income. A consumer is the end user or a target to whom the goods and services are sold. Lifestyle is an attitude, and a way in which an individual stay in the society. Service offered to a consumer also matters in influencing their behavior. The stimulus-response model depicted the marketer as developer of marketing mix. Consumer buying behavior determines how our consumers decide to buy our product and what are the various factors responsible for this decision?. Factors influencing consumer behavior are; Cultural Factors (culture, subculture, and social class). We humans are sensory beings. Not all consumer exhibit the same buying behaviour. Human psychology is a major determinant of consumer behavior. To understand the factors that influence consumer behaviour and develop sound marketing strategy S. No. Family income is the total income from all the members of a family. Buying Behaviour, This paper’s aim is to provide an in-depth elucidation of the many aspects that influence consumer behaviour. A person who is a Chief Executive Officer in a company will buy according to his status while a staff or an employee of the same company will have different buying pattern. There are four psychological factors that influence consumer behaviour: Motivation, perception, learning, and attitude or belief system. Major Factors Influencing Consumer Behavior 1. How a single or a group of consumer behavior does affects the society and the atmosphere and the economy of the nation. Consumer behavior is deeply influenced by cultural factors such as: buyer culture, subculture, and social class. Understanding how to motivate your customer is a powerful tool. how much an individual spends on the purchase of goods and services that contribute to … 1) Cultural factors – there is culture in every society. Consumer behavior is influenced by cultural factors … In simple words a consumer can be described as: You can consider all three definitions to define a consumer. Psychological factor. 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. External factors cannot affect the decision process directly but, these are also instrumental and exert an influence on consumer behaviour. Generally, all the people in the reference group have common buying behavior and influence each other. Another critical factor that is also a central focus of the marketers is lifestyle. A person has many needs such as the social needs, basic needs, security needs, esteem needs and self-actualization needs. Based on this attitude, the consumer behaves in a particular way towards a product. People originating from different cultures, sub cultures, occupations and even social class have different styles of living. email@example.com Abstract –This study assesses cultural factors influencing consumer buying What are Cultural Factors ? These factors are difficult to measure but are powerful enough to influence a buying decision. The occupation of an individual plays a significant role in influencing his/her buying decision. Social factors:. Consumer behaviour deals with as to why and why not an individual purchases particular products and services. A marketer should try to understand the factors that influence consumer behavior. They try various ways to influence people’s opinion of the brand and to maintain a good brand image. Consumer behavior refers to the behavior of a person when he is acting as a consumer-when he is buying a commodity or a service. We have a series of receptors (commonly known as senses: sight, hearing, smell, taste and touch) that serve us to move around the world, and of course to make decisions.Marketing and advertising are well aware of the importance of perception as one of the factors influencing consumer behaviour. Motivation is activating the internal needs and requirements of the consumer. Man is a social animal. Literature review will be a key component for this area as this will evaluate what needs to be researched. ADVERTISEMENTS: Some of the external factors that influences consumer behavior are as follows: Besides the internal factors, external factors also influence consumer behaviour. The social class is not just determined by the income, but also other factors such as the occupation, family background, education and residence location. All in One Marketing Bundle (170+ Courses). Personal Factors. The consumer market is where the consumer has the right and the power to make a decision of spending their money. When a consumer is offered easy credit to purchase goods, it promotes higher spending. Not all individuals would prefer to buy similar products. Higher income gives higher purchasing power to consumers. A: The factors influencing consumer behaviour are- 1. 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. Understanding how consumer behavior impacts marketing renders it vital to understand those factors which affect consumer behavior and which include: Cultural Factors. Many small groups exert influence on a person’s behavior. Consumer Behaviour helps us understand the buying tendencies and spending patterns of consumers. 3. Every individual goes through the following stages and shows a different buying need in each stage: Young Twenties: Spends on outfits, partying, casual dining, adventure activities, etc. The economic crisis has passed. Consumers have changed their behaviour over the last two years due to the instability of the economic environment. 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