Factors determining Consumer Behaviour

Consumer behavior is influenced by various factors, which can be broadly categorized into internal and external factors. Here are some examples:

Internal Factors:

  • Perception: Perception refers to the way consumers interpret and process information about products and services. Perception is influenced by various factors, such as past experiences, expectations, and cultural background. For example, consumers may perceive a particular brand as high quality based on past experiences, and this perception may influence their purchasing behavior.
  • Motivation: Motivation refers to the driving force behind consumers’ behavior. Consumers are motivated by various needs, such as physiological, safety, social, esteem, and self-actualization needs. For example, a consumer may be motivated to buy a luxury car to satisfy their social and esteem needs.
  • Learning: Learning refers to the way consumers acquire knowledge and experience about products and services. Learning can be influenced by personal experience, social interactions, and marketing communication. For example, consumers may learn about the benefits of a particular brand through advertising or word of mouth.
  • Attitudes: Attitudes refer to consumers’ overall evaluation of products and services. Attitudes are influenced by personal values, beliefs, and experiences. For example, a consumer may have a positive attitude towards eco-friendly products because they value sustainability.
  • Personality: Personality refers to consumers’ individual characteristics that influence their behavior. Personality traits such as extroversion, conscientiousness, and openness can influence consumer behavior. For example, an extroverted consumer may be more likely to purchase products that reflect their outgoing personality.

External Factors:

  • Culture: Culture refers to the values, beliefs, and customs of a society. Culture influences consumer behavior by shaping consumers’ needs, wants, and behavior. For example, in some cultures, it may be more common to purchase products that reflect status and social class.
  • Social Factors: Social factors such as family, reference groups, and opinion leaders influence consumer behavior. For example, a consumer may be influenced by their family members or friends when making a purchasing decision.
  • Demographic Factors: Demographic factors such as age, gender, income, and education influence consumer behavior. For example, a young consumer may be more likely to purchase products that reflect their lifestyle and interests.
  • Economic Factors: Economic factors such as income, inflation, and recession influence consumer behavior. For example, during a recession, consumers may be more price-sensitive and purchase lower-priced products.
  • Marketing Mix: The marketing mix, which includes product, price, promotion, and place, influences consumer behavior. For example, consumers may be more likely to purchase a product if it is promoted through social media or offered at a discount price.
Factors Definition Examples
Internal Factors
Perception The way consumers interpret and process information about products and services. Past experiences, expectations, cultural background.
Motivation The driving force behind consumers’ behavior. Physiological, safety, social, esteem, and self-actualization needs.
Learning The way consumers acquire knowledge and experience about products and services. Personal experience, social interactions, marketing communication.
Attitudes Consumers’ overall evaluation of products and services. Personal values, beliefs, experiences.
Personality Consumers’ individual characteristics that influence their behavior. Extroversion, conscientiousness, openness.
External Factors
Culture The values, beliefs, and customs of a society. Social norms, traditions, religion.
Social Factors The influence of family, reference groups, and opinion leaders. Family members, friends, colleagues.
Demographic Factors The influence of age, gender, income, and education. Young consumers, high-income earners, college graduates.
Economic Factors The influence of income, inflation, and recession. Price sensitivity, buying power.
Marketing Mix. The influence of product, price, promotion, and place. Brand reputation, price discounts, advertising, distribution channels.

error: Content is protected !!