A customer purchases products to satisfy their needs or wants which influences a consumer behavior to buy products to meet their need. According to Philip Kotler,”Consumer Behaviour is the study of how individuals, groups and organizations select, buy, use and dispose of goods, services, ideas and experiences to satisfy their needs and wants” Factors Influencing Consumer Behaviour There are different factors which are responsible for influencing Consumer Behaviour. • Economic Factors-Economic factors are the factors which directly affects the financial condition of consumer. Economic factors such as personal income, family income, government policy, discretionary income etc…influencing the consumer behavior in buying a product. • Psychological factors: Psychological factors such as need, motivation, personality, lifestyles etc affects very much in influencing consumer behavior as they purchase only to satisfy their needs.
It is a significant aspect to bear in mind before launching a new product as mentioned previously. For a business, to avoid the risk of product failure, marketers should study the behavior of consumers and then produce accordingly. There are four different factors that have an impact on consumer behavior, and they are cultural factors, social factors, personal factors and psychological factors. The first factor is culture, which involves the thoughts, words, traditions, feelings and language of society. Cultural Factors: Culture is the part of every society and is the significant cause of a person’s wants, needs, and behavior.
Various factors, be it cultural, social, personal or psychological influence the buying decision of individuals. Marketers need to understand the buying behavior of consumers for their products to do well. It is really important for marketers to understand what prompts a consumer to purchase a particular product and what stops him from buying. To cope up with these differences and to bridge this gap it becomes necessary to understand the behavior of different customers with different approaches. What marketers need to understand?
The psychological factors are motivation, perception, learning, beliefs and attitudes which will affect consumer buying decision. Then it comes to the consumers buying decision process. The consumers need to recognise the quality and the price of the products. They will go for searching the information about the products they are going to buy. The consumers will make an evaluation of products they want to buy.
Consumer Behaviour Definition, Consumer Behaviour theory, factors affecting consumerbehaviour, psychology of marketing, consumer behaviour case study Consumer behaviour refers to the psychological process that leads to a consumer’s decision to buy a product or service offering. This process involves decisions in terms of what, when, where, how and from which vendor to make the purchase. This is influenced by: • Psychological factors such as the personal thinking process that includes motivation, personality, perception and the consumer’s attitude, the process of making the decision in marketing, consumer’s interaction with friends, family and peers and making the choice of where to buy from, based on cost, features and product appeal • Internal
Consumer behavior is the behavior that consumers in searching for, purchasing, using, evaluating, and disposing of product and services that they expect will satisfy their needs. It also defined as how they make decisions to use their available resources (time, money, effort) on consuming or purchasing items (Hawkins 2004). Also, according to Jagdish N. Sheth, customer behavior is the activities of the customers that result in decisions and actions to pay for purchase, and use products and services, whether it is a mental or physical activity. Consumer behavior can’t just change in a snap. But creating a niche by finding and focusing on very specific markets that might encourage change may do so.
This is often referred to as consumer influence rather than putting the consumer at the centre of the organization in a process which is often referred to as consumer dominion. 2.3.2 What Influences Consumer Behavior Marketers must fully understand both the theory and reality of consumer behavior. A consumer’s buying behavior is influenced by cultural, social, and personal factors. Cultural factors exert the broadest and deepest influence. Cultural Factors: Culture element refers to the beliefs, values, and views shared in a society.
A consumer is defined as someone who purchases goods and services for personal use. When studying consumers, you examine how individuals decide on what to buy, they buy a certain item, how it would be used, and how they dispose the purchased item if no longer needed. Schiffman (2012) defines consumer behaviour as the behaviour consumer’s display in searching for, purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs. There are certain factors which influence the decision making of consumers. Such factors can personal, situational, or psychological.
However, the society is make up a number of individuals whereby their preferences and behaviours are different. “These behaviours influence the personal preferences of the other set of individuals as they tend to perform those activities which are acceptable to the society” (Business Jargon). Below are the important social factors that influence an individual behaviour one or the other way: • Family: Family members play an important role in designing the preferences and behaviour of an individual. It also offers the environment whereby the individual develop, develop personality and obtain values. Moreover, a child acquires their buying behaviour and preferences whereby thy watch their parents and want to buy the same products when they get bigger.
CHAPTER 1 INTRODUCTION CUSTOMER ATTITUDE Customers are individuals with likes and dislikes. When the people in a particular group feel one way or another about a product, service, entity, person, place or thing, it is said to be a generalized consumer attitude that will affect the marketing of that person, product or entity in positive or negative ways. Marketers strive to influence customers attitudes, and understanding the prevailing attitude is the first step to changing it if needed. One of the major reasons for conducting marketing research is to understand customers’ attitudes. Attitudes will affect the behavior.