4 Key Factors Influencing Consumer Behaviour
WHAT IS CONSUMER BEHAVIOUR?
The consumer, who is considered as the KING of the market is the main dominant factor in the market and market trends. Let’s study the KING first. A consumer is someone who pays for the consumption of the goods and services sold by a company or organisation. It plays a vital role in the demand and supply chain of every economic system. There is the motive to produce when there is the demand for the good; without the demand, there would be no production.
WHO IS A CONSUMER?
A consumer is not necessarily an individual; a consumer can also be an organisation. A consumer is someone who is buying the commodities or the services from the seller. But he or she needs to be the end user or a target to whom the goods and services are sold. In other words, it can be described as:
An organisation or an individual who is the final user of the products and the services produced by the company.
The consumer is considered to be the decision maker in the market.
WHAT DECISIONS CAN BE TAKEN BY THE CONSUMER?
The consumer is liable for taking the decision in the following situations:
- The decision of buying a product or not buying from any shop or store is totally on the will of the consumer.
- The consumer is the deciding factor for the advertisements of the organisation; he needs to decide whether he wants to be influenced by the marketing strategies or not.
- The consumer decides the product they want to purchase and the timing when they want to buy it.
- The consumer decides among the competitors and their products.
WHY DECISION MAKING DEPENDS ON THE CONSUMER?
Every individual has been a consumer at some point in time and has been participated in the consumer market. The consumer market is the place where the consumer has the right and the power to decide between spending their money. Even buying chocolate would be considered as the part of the consumer market as the buyer has participated in the buying process whether it is from some store or a shop. The decision making involves in this process, the decision of buying goods and spending your money. You are the decision maker of how much money you want to spend on what thing you want to spend. You also need to decide among the competitors that whom to choose and why to choose. The more active the consumer of the nation, the more active will be the nation’s consumer market.
WHAT IS CONSUMER BEHAVIOUR?
You must know what is consumer behaviour after knowing who is a consumer and its effects on the organisation.
Consumer behaviour is a psychological process related to the emotions of the consumer. In the process, the consumer starts with recognising the need of the product and then finds a way or a medium of solving these needs, making the decision of the purchase that whether he should buy it or not. Then confirms the information after jotting down a plan and then implements the plan of making the purchase.
Consumer behaviour is human psychological behaviour which can change with the slightest change in the market, the trend and the atmosphere. The study of the consumer behaviour is a challenge that took a few challenges that are how can you study consumer behaviour.
WHICH ARE THE FACTORS THAT INFLUENCE CONSUMER BEHAVIOUR?
The marketers try to understand the actions of the consumers in the marketplace and the underlying motives behind those actions. These below-mentioned motives are the factors that influence the behaviour of the consumer:
The human psychology plays a crucial role in designing the preferences of the consumers, their likes and the dislikes for a particular service or a product. Some of the major psychological factors are:
Motivation is the process that activates the internal needs and requirements of the consumer. It can also be described as the goals and the needs of the consumers. Motivation arouses and directs the consumers towards certain goals. These needs can be psychological needs, social needs, esteem needs, needs to security and also self-actualising needs.
Perception is sensing the world and the situations around for taking a decision. You can decide as per your perception. Every individual look at the world and the situations in his or her way. The judging ability and capacity of every individual are different, and consequently, their point of view for everything is quite different. This is what separates the decision-making abilities of the individual.
- Experience and Learning
Learning is the research of products and services before the consumer decides against buying a product. These days’ people do self-learning through the internet or in the groups. Experience is taking the lessons from the past happenings or experiences of a product and the service. Learning and experience both play an important role in influencing the behaviour of the consumer as it influences their decision of the purchase.
- Attitudes and beliefs
Attitude is the favourable and unfavourable emotional condition or the emotional feeling of the consumer and the tendency to react to certain actions. Beliefs of people on the specification of the product also one of the major reason affecting it. Hence, attitude and beliefs are also important and need to be taken into consideration while studying consumer behaviour.
Some personal factors affect the behaviour of the consumer. There are the factors that influence the behaviour of the consumer.
- Age and life cycle stage
Age of a consumer and his life cycle are two most important subfactors under personal factors. The preferences and the choices of the people change with the change in the age. They would buy the products as per their age and life cycle.
Occupation of a consumer affects the goods and services that consumer buys. The effect of occupation group is above average as people are interested in buying according to their organisation they are working in. In fact, organisations produce separate products for different occupational groups.
- Financial or economic situations
It is the major factor that affects the buying of the product. One would buy as per his pocket and the economic situations. If the economic situation of a consumer is not good or stable, it will affect his purchase power. If the whole economy is suffering a loss, it also affects the majorly the consumer's purchase or spending decisions.
People originating from different cultures, subcultures, occupations and even social class have different styles of living. Lifestyle decides the interest, opinions and activities of the people. Different lifestyles affect the purchase pattern of consumers.
- Personality and self-conception
Every individual is different and has distinct personalities. Their distinct personalities and psychology affect the buying decisions. Hence, the purchase of products and services differ from person to person.
Social factors are divided into following:
- Reference Groups
Under social factors, reference groups have a great potential of influencing the behaviour of the consumer. Of course, its impact varies across products and brands. It also includes the leader of the opinion.
The behaviour of a consumer is not only influenced by their motivations and personalities but also their families and the member of the family who is living together either because of blood relationship or marriage.
- Role and status
People belonging to different companies, clubs or groups have to maintain status. These roles and status that they have to maintain also affect the consumer behaviour as they decide to spend accordingly.
Thus, these are the things that affect the consumer behaviour and their buying practices majorly.