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Liquid assets are those assets, which can be converted into cash very easily. To understand the factors that influence consumer behaviour and develop sound marketing strategy S. No. It can also be described as goals and needs of the consumers. Answer 4. ©Copyright 2020 www.clootrack.com All Rights Reserved. Remember that consumers are spending more time online and rely on reviews to make purchasing decisions. 3. 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. Occupation. As a Prime member, I can testify to being sorely disappointed if I have to purchase from a seller who does not offer 2-day shipping. The buyer in influenced by various variables like cultural, social, personal, and psychological factors. Let’s take a look at the notes given below to understand what influences consumer behaviour. Looking ahead. Social factors:. Life style can confirm the interest, opinions and activities of people. Attitude is a consumer’s favorable and unfavorable emotional condition or emotional feeling, also its tendency of reaction to certain actions and behaviours. These experiences influence a shopper’s behavior by changing the way the consumer reacts to products similar to those they’re familiar with. The time required to gather such information is quite moderate for example buying of goods like clothes and cosmetics. The buying behaviour of consumers is influenced by a number of internal or... 2. These factors refer to the set of values, preferences, perceptions, and ideologies of a particular community. 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. This decision take time as it needs too much of research work as the consumer will study almost all the options available in his economic range, the research is prolonged as the customer would want to buy the best option available for the price he is paying. Psychological factors influence the consumer market in many ways because a person's motivations, beliefs, attitudes and perceptions shape his buying behaviors. 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. 4. Factors that are personal to the consumers influence their buying behavior. Cultural and social factor. This is a decision of buying goods and spending your money. Humans are social beings and they live around many people who influence their buying behavior. Social Factors (family, groups, and social roles). 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. ADVERTISEMENTS: These factors include culture, subculture, social class, reference group and family influences. Economic Factors Influencing Consumer Behavior Definition: The Economic Factors are the factors that talk about the level of sales in the market and the financial position of the consumer, i.e. There are four psychological factors that influence consumer behaviour: Motivation, perception, learning, and attitude or belief system. When a consumer has higher disposable income, it gives more opportunity for the consumer to spend on luxurious products. You need to understand how does the customer think, reason, feel, and select between the option of products and services offered. 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. This attitude plays a significant role in defining the brand image of a product. When a person comes from a particular community, his/her behavior is highly influenced by the culture relating to that particular community. Everything can be bought and sold with the help of money. 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. 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. Each and every society across the globe has form of social class. Factor affecting Consumer Behavior Cultural Factors. Here are some articles that will help you to get more detail about the Influence Consumer Behaviour so just go through the link. Income has the ability to influence the buying behavior of a person. Learning is the research of products and services before the consumer takes the decision of buying a product. How should the company improve their marketing strategy and marketing campaigns based on their focused consumer behaviour? This is the first factors influencing consumer behaviour and it includes various points such as: (i) Culture-Culture is the first factor and it means that these are the shared set of beliefs which an individual acquires from ancestors and it is reflected in their believes customs, and consumption pattern. These factors are age, sex, education and income. Psychological Factors. A consumer is the end user or a target to whom the goods and services are sold. Cultural Factors Culture is one of the key factors that influences a consumer’s buying decisions. Department of Economics 50 Years of Excellence in Economics Other Microeconomic Influences on Managers In sum, How consumer behavior affects their revenue. External factors Influencing Consumer Behaviour. 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. Understanding how to motivate your customer is a powerful tool. When there is higher credit available to consumers, the purchase of comfort and luxury items increases. A person tends to buy things that are appropriate to this/her profession. For example, a doctor would buy clothes according to this profession while a professor will have different buying pattern. 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. The buying choices of youth differ from that of middle-aged people. 53 and is influenced by cultural trends as well as his social and societal environment. Culture forms the ideas, beliefs, values and behaviour of a person living in a particular region. For example, many consumers choose to buy Toyota cars because they have had good experiences with their previously owned Toyota cars. Hence their buying behavior is influenced by other people around them. Motivation speaks to the internal needs of the consumer. When a consumer has higher liquid assets, it gives him more confidence to buy luxury goods. You can observe a change in the consumer behavior of someone who has grown richer or more educated. The consumer chooses between competitors and their products. Figure 2 shows an outline of factors affecting consumer behaviour. A consumer is highly influenced by the amount of savings he/she wishes to set aside from his income. Consumer behavior is deeply influenced by cultural factors such as: buyer culture, subculture, and social class. When a consumer is offered easy credit to purchase goods, it promotes higher spending. It will be during this literature review that the factors will … Then understanding the environment of the customer is important. Teenagers will be more interested in buying colorful clothes and beauty products. External factors cannot affect the decision process directly but, these are also instrumental and exert an influence on consumer behaviour. Of course, it is not easy to find out answers to ‘whys’ of behaviour. However, some factors are more effective, while others have negligible effect on consumer behaviour. Why do we need to learn about consumer buying behavior?The simple answer is that no longer can we take the customers for granted. 2.3 Purchase Intention and Consumer Behavior Ajzen (1991) suggested that intentions are presumed to be an indicator of to what extent people willing to approach certain behavior and how many attempts they are trying in order to perform certain behavior. Buying Behaviour, This paper’s aim is to provide an in-depth elucidation of the many aspects that influence consumer behaviour. This includes three stages-pre- purchase behavior, the actual purchase and the stage of post-purchase behavior. Internal or psychological factors:. Their distinct personalities and distinct physiology effects their buying decisions. The environment includes the family of the consumer, their social atmosphere, their culture, etc. We have four main factors that affect consumer behaviour they are; Culture plays a very vital role in the determining consumer behaviour it is sub divided in. Humans are social beings and they live around many people who influence their buying behavior. How a single or a group of consumer behavior does affects the society and the atmosphere and the economy of the nation. In short, perceived usefulness will influence consumers’ intention to purchase in high risk condition (Xie et al., 2011). The Government is one of the prominent ones among these factors which have considerable bearing on the marketing decision-making. Hence purchase of products and services defers from person to person. Comprehension of these factors is instrumental in seg­menting and positioning products and in motivating consumers to buy. amdan01@yahoo.com Abstract –This study assesses cultural factors influencing consumer buying Man is a social animal. Consumer Behaviour is an effort to study and understand the buying tendencies of consumers for their end use. THE CERTIFICATION NAMES ARE THE TRADEMARKS OF THEIR RESPECTIVE OWNERS. These needs can be psychological needs, needs of security, social needs, esteem needs and also self actualizing needs. Let’s look at them in detail. Consumer Behaviour helps us understand the buying tendencies and spending patterns of consumers. If a person is in a high position, his buying behavior will be influenced largely by his status. External factors Influencing Consumer Behaviour. Sub-culture is the group of people who share the same values, customs and traditions. With the age and the life cycle the consumers purchase options and the motive of purchase changes, with his decisions of buying products change. Factor affecting Consumer Behavior. When a customer sees advertisements, promotions, customer reviews, social media feedback, etc. 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? Personal Factors Influencing Consumer Behavior Definition: The Personal Factors are the individual factors to the consumers that strongly influences their buying behaviors. set of values and ideologies of a particular community or group of individuals Experience is taking a lesson from the past experiences of a product and service. Understanding how to motivate your customer is a powerful tool. The occupation of an individual plays a significant role in influencing his/her buying decision. These factors are consumers, small groups, family, and social roles and status and can be explained as under : Reference Groups. Family income is the total income from all the members of a family. The buying behavior is highly influenced by the lifestyle of a consumer. When a person buys a product, he/she gets to learn something more about the product. The producers of the goods and services would lack the motive of producing as there would be no demand for their products. 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. ALL RIGHTS RESERVED. This is what separates the decision taking abilities. Factors that influence consumer behaviour can be internal and external to the individual. Culture plays a very vital role in the determining consumer behaviour it is sub... 2. The factors influencing buyer’s purchase decisions can be conveniently divided into following categories: Economics Environment: Environmental factors constitute an important determinant of organizational purchasing. Not all consumer exhibit the same buying 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. Higher income gives higher purchasing power to consumers. Major Factors Influencing Consumer Behavior. A good understanding of the different factors that influence consumer behavior is crucial to marketers and is therefore the subject of much market research. Reference group is a group of people with whom a person associates himself. These factors are considered as social factors. If a consumer decided to save more, then his expenditure on buying reduces. These factors are not individualistic and are external to the individual. Motivation is activating the internal needs and requirements of the consumer. 2. Culture needs to be examined as it is a very important factor that influences consumer behaviour. As mentioned earlier, consumer behaviour is the study of how a consumer behaves while purchasing a new product. Many small groups exert influence on a person’s behavior. Cultural Factors include the basic values, needs, wants, preferences, perceptions, and behaviors that are observed and learned by a consumer from their near family members and other important people around them. The consumer psychology is different when they shop and make decisions of spending their money. 2. Personal Factors (age and life-cycle stage, occupation, economic situation, lifestyle, personality, and self-concept). However, if you ask these 12 basic questions, then the going can be easy. Consumer behaviour is the study of individuals, groups, or organizations and all the activities associated with the purchase, use and disposal of goods and services, and how the consumer's emotions, attitudes and preferences affect buying behaviour. Whereas, a weak economy reflects a struggling market that is impacted by unemployment and lower purchasing power. Human psychology is a major determinant of consumer behavior. Consumer behavior is influenced by cultural factors … Culture is a very complex belief of human behaviour it includes the human society, the roles that the society plays, the behaviour of the society, its values customs and traditions. Consumer buying behavior determines how our consumers decide to buy our product and what are the various factors responsible for this decision?. People living with each other in an […] Sinopsis de FACTORS THAT INFLUENCE CONSUMER BEHAVIOUR TOWARDS BUYING SUSTAINABLE PRODUCTS. Consumer behaviour deals with as to why and why not an individual purchases particular products and services. The more active the consumers of the nation the more active will be the nation’s consumer market. Not all individuals would prefer to buy similar products. People living with each other in an […] Factors Influencing Consumer Behaviour: Cultural Factors Affecting Consumer Behaviour Consumer behaviour is a study of how people buy, what they buy, when they buy and why they buy. Within a cultural group, there exists many subcultures. Now that you know who is a consumer you also must know what is consumer behaviour and how does it affect the organizations. But when the disposable income reduces, parallelly the spending on multiple items also reduced. Every individual is different and have different and distinct personalities. The factors do not affect equally to all the buyers; they have varying effect on their behaviour. A third factor that plays huge importance into consumer behavior is social proof. No, you aren’t necessarily directionally challenged. 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. It’s still too early to tell how much consumer behavior will change due to the COVID-19 pandemic. Based on this attitude, the consumer behaves in a particular way towards a product. Economic factors bear a significant influence on the buying decision of a consumer. 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. Here you are also taking a decision. 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. Consumer perception is a major factor that influences consumer behavior. © 2020 - EDUCBA. At an early age, buyers learn to recognize acceptable behavior and choices when selecting products. Consumer behavior is deeply influenced by cultural factors such as: buyer culture, subculture, and social class. Consumer behaviour deals with as to why and why not an individual purchases particular products and services. Education and income also important and need to understand the factors influencing behaviour... Under: reference groups under... 3 effect on consumer behaviour social atmosphere, their social,... Stage, occupation, economic situation, lifestyle, personality, and attitude or system. Be researched wants and behavior richer or more educated sub cultures, occupations even... 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