Consumer BehaviorStudent Name
Insert DateConsumer BehaviorFactors affecting consumer behavior
There are many factors affecting consumer behavior. These can be split into:
Cultural factors
Personal factors
Social factors
Psychological factors
Under cultural factors we have:
Culture
Simply put, culture is the basic component of each society. It dictates a person’s wants and behavior. Every culture has its effects on the consumer behavior and it varies throughout the world depending on the country.
Sub-culture
In each culture there are different sub groups known as subcultures. These are due to differences in religions, geographic locations, and racial groups among others. Different groups
Social class
Each society has a social class which is very important in the determination of how consumers buy the different commodities. Some of the factors which affect social class include:
Wealth
Education
Occupation.
Under the personal factors we have
Age and lifecycle stage
It is very evident that as people get older, they change the way they shop as their tastes also change. Young people buy different things from those which are bought by older people. This may be determined by factors such as marital status and other factors.
Economic situation
The economic situation of a consumer is a very important factor to be considered during purchasing a commodity. When the economic situation of a consumer is good, then their choice of commodities will be more expensive.
Occupation
People working in different work positions will need different products. For instance, let us think of a mechanic and a chief executive officer. These two people need different types of clothes. While the CEO will need to shop for suits, the mechanic will go for strong, more rugged clothes which suit their duties.
Personality
Different people have varied personalities. The different personalities of the consumers have an effect on how these people shop for products. Personality defines what a person is in reality. This defines a person’s likes or dislikes.
Self concept
Self concept is the personal image of the consumers. This defines how the consumer views themselves. It is very important in determining how different consumers buy their preferred products.
Lifestyle
This defines a person’s living patterns, opinions and interests. It also shows how a person is willing to spend in certain commodities. There are some people who can spend in buying expensive electronics and vehicles while others will think this is being extravagant.
Psychological factors
Perception
All of us perceive things differently and this defines how we think about those things. This also means that various groups of consumers think differently when it comes to products. Think of new fashion for example.
Learning
This is the ability of the different consumers to adapt and change due to different response to experience and observations. People have different levels at which they respond to change. Some people are more rigid than others.
Motivation
This defines how consumers’ efforts are energized and sustained towards a certain direction or goal. If a consumer is not motivated when buying a certain commodity, then it means they will drop their interest in that commodity.
Beliefs and attitude
These are the descriptive thoughts that a person holds on something. For example there are some people who do not see a big deal in buying short clothes whereas others think it is a taboo. This may be influenced by religion and other factors.
Social factors
Roles and status
This involves the duties a person is expected to perform. It usually defines how the consumers buy different goods.
Reference groups
These are groups of people who may directly or indirectly influence one’s buying characteristics. For instance, the buying behavior of any teenager will be subject to the parents’ approval in one way or the other.
Family
This is the basic group of someone’s social life. It influences their thinking and beliefs and their perception on a certain commodity. It also influences their attitude towards the various products.
Environmental conditions
There are different commodities whose consumption is influenced by the environmental conditions. For example, people rarely buy jackets in during sunny and dry seasons.
Geographical location
Geographical area of a certain consumer determines the consumer’s buying power. This is because it also influences the consumer’s income.
Tastes and preferences
Different consumers have different tastes and preferences. The consumers have different tastes on the products they consume.
Prices
If products are of the same use and almost similar quality, then the consumers will consider their prices in order to buy the product with the best price.
Income
The income by any consumer is the main factor to be considered when making decisions on consumption. The consumers with higher income have a higher propensity to consume.
Variety of substitutes
Some consumers consider different varieties of substitutes to a certain good or product. The consumer analyses the product and its substitutes and check the one which well suits their needs.
Fashion and styles
Most consumers usually follow the emerging goods. With the ever dynamic and changing fashion, consumers will be unwilling to buy old fashion of commodities when new fashion is out.
Exposure
Consumers having more exposure can consume products from anywhere in the world as opposed to consumers with little exposure who are very cautious when it comes to buying new goods
Technology
People who are exposed to new technologies can buy different commodities from those people who do not have access to technology. Research has shown that even mobile phones can influence consumer behavior significantly.
Internal factors
They include: Exposure, personality, Beliefs, age, occupation, lifestyle, learning ablity and personality.
Situational
These include: Prices, marriage status, economic situation
External
Some of them are: Environmental conditions, geographical location
Conclusion
There are numerous factors which influence consumer behavior and these influence how consumers shop for their commodities. It is important for the marketers to ensure that they understand the different needs of the consumers. This will influence how they can win the different groups of consumers.
References
Peter, J. P., Olson, J. C., & Grunert, K. G. (1999). Consumer behavior and marketing strategy (pp. 329-48). London: McGraw-Hill.
Park, C. H., & Kim, Y. G. (2003). Identifying key factors affecting consumer purchase behavior in an online shopping context. International Journal of Retail & Distribution Management, 31(1), 16-29.
Hawkins, D., & Mothersbaugh, D. (2009). Consumer behavior building marketing strategy. McGraw-Hill.
