What is Consumer Behaviour?
The study of consumers and the methods they utilise to select, use (consume), and dispose of goods and services, as well as the emotional, mental, and behavioural responses of consumers is known as Consumer Behaviour. Understanding consumer behaviour is essential for firms to develop powerful marketing tactics that may affect customers’ decision-making processes.
It is a psychological process as it is all about the consumer’s emotions. In this process, the customer initially recognises the need for the product and then seeks a method or medium to meet these demands by making buying decisions, such as deciding whether or not to purchase a certain product. Then he checks the facts, makes a strategy, and executes the buying plan. Consumer behaviour is psychological in the sense that it is human behaviour, and it may vary with even the least shift in the market, atmosphere, or trend.
Studying consumer behaviour is crucial for marketers because it helps them to better communicate with customers. They can fill the market gap and identify the items that are required and the products that are no longer in use by knowing how customers choose a product. Marketing professionals may display their goods in a way that has the most influence on consumers by researching consumer behaviour. Understanding consumer purchasing behaviour is key for businesses to reach out to and engage clients, as well as convince them to buy their products.
Major Factors Influencing Buying Behaviour
1. Cultural Factors
The biggest and deepest influence on consumer behaviour comes from cultural factors. This group of factors mostly consists of broad culture, subculture, and social class culture.
a) Broad Culture: Culture is a highly complex conception of human activity as it includes human society, the roles that society performs, how society behaves, and its values, traditions, and conventions. Culture must be examined since it has a substantial influence on consumer behaviour.
b) Subculture: A subculture is a group that shares the same beliefs, customs, and values. They are the nation, religion, racial groupings, and individuals who live in the same geographical area.
c) Social Class Culture: Every culture has a social class, according to society. It is essential to understand what social class is being targeted because, in general, a social class’s purchasing habits are relatively similar. A group of customers’ social class is determined by their income and other factors.
2. Social Factors
Consumer behaviour is influenced by social factors. A number of social factors, including family, reference groups, and roles and statuses, have a significant impact on how consumers respond to products, brands, and businesses. To effectively meet their requirements, marketers must examine these social factors of their target market.
a) Family: One of the most significant social elements influencing purchasing behaviour is the family. Where there is a joint family structure, where children live with family for a longer period of time, this is more important. Values, customs, and tastes are innately passed on from parents to their children. The most significant primary reference group is made up of family members. Family is where a person learns their values, including those related to religion, politics, ambition, self-worth, love, and respect. One’s behaviour is influenced by needs, choices, buying habits, consumption rate, and many other factors that are determined by the family.
b) Reference Groups: A reference group is a group of individuals with whom a person identifies. The reference group’s members typically have similar purchasing habits and influence one another.
c) Income Level: Consumer demands and wants are influenced by income. The preferences of wealthy and poor customers are very different. Between wealthy and less wealthy consumers, there is a significant gap in terms of quality, brand image, novelty, and pricing. It is essential for a marketer to understand the expectations of customers with different income levels and then target them accordingly.
d) Roles and Status: The position a person holds in society has an impact on them. If a person holds a high position, his decision will have a big impact on the purchasing decision. A corporation’s Chief Executive Officer will make purchases consistent with his position; however, a staff member or employee of the same organisation will make purchases differently.
3. Personal Factors
The consumers’ own personal factors have an impact on their purchasing decisions. These personal factors differ from person to person, resulting in different opinions and consumer behaviours.
a) Age: Individuals’ purchasing decisions are influenced by the age group to which they belong. When compared to youngsters, elderly people’s purchasing behaviour would be completely different.
b) Income: The shopping habits of a person are influenced by their income. The purchasing power of customers increases with wealth. When a customer has more money on hand, they have the potential to spend more on expensive products. Whereas, consumers who fall into the low or middle-income bracket spend the majority of their income on necessities like food and clothing.
c) Occupation: A consumer’s occupation affects his or her purchasing behaviours. A person prefers buying items that are related to his or her work. A senior corporate executive, for example, might purchase formal apparel, but a creative designer would choose casual clothing.
d) Lifestyle: A person’s attitude and manner of life define who they are in society. A consumer’s lifestyle has a significant impact on their buying behaviours. A person who lives a healthy lifestyle will spend more money on healthier food choices.
4. Psychological Factors
Understanding consumer behaviour relies heavily on human psychology. Psychological factors are difficult to measure, yet they are powerful enough to affect a purchasing choice.
Some of the most important psychological factors are:
a) Motivation: Motivation to do something frequently impacts a person’s purchasing behaviour. Individuals have several kinds of needs, including social, basic, and security requirements, as well as esteem and self-actualization needs. The fundamental requirements and security needs take priority over all other wants and these encourage a customer to purchase things and services.
b) Perception: Our perception is formed when we receive information about a product and analyse it in order to generate an appropriate image of that product. We build an image of a product whenever we see an advertisement, review, comment, or promotion. As a result, our perception influences our purchase decisions significantly.
c) Attitudes and Beliefs: Consumer attitudes and opinions also have an impact on purchasing decisions. The consumer acts in a specific way towards a product based on their mindset. Mindset is very important in developing a product’s brand image. Therefore, a marketer works hard to understand customer attitudes in order to build marketing initiatives.
What is Consumer Behaviour?
The study of consumers and the methods they utilise to select, use (consume), and dispose of goods and services, as well as the emotional, mental, and behavioural responses of consumers is known as Consumer Behaviour. Understanding consumer behaviour is essential for firms to develop powerful marketing tactics that may affect customers’ decision-making processes.
It is a psychological process as it is all about the consumer’s emotions. In this process, the customer initially recognises the need for the product and then seeks a method or medium to meet these demands by making buying decisions, such as deciding whether or not to purchase a certain product. Then he checks the facts, makes a strategy, and executes the buying plan. Consumer behaviour is psychological in the sense that it is human behaviour, and it may vary with even the least shift in the market, atmosphere, or trend.
Studying consumer behaviour is crucial for marketers because it helps them to better communicate with customers. They can fill the market gap and identify the items that are required and the products that are no longer in use by knowing how customers choose a product. Marketing professionals may display their goods in a way that has the most influence on consumers by researching consumer behaviour. Understanding consumer purchasing behaviour is key for businesses to reach out to and engage clients, as well as convince them to buy their products.
Major Factors Influencing Buying Behaviour
1. Cultural Factors
The biggest and deepest influence on consumer behaviour comes from cultural factors. This group of factors mostly consists of broad culture, subculture, and social class culture.
a) Broad Culture: Culture is a highly complex conception of human activity as it includes human society, the roles that society performs, how society behaves, and its values, traditions, and conventions. Culture must be examined since it has a substantial influence on consumer behaviour.
b) Subculture: A subculture is a group that shares the same beliefs, customs, and values. They are the nation, religion, racial groupings, and individuals who live in the same geographical area.
c) Social Class Culture: Every culture has a social class, according to society. It is essential to understand what social class is being targeted because, in general, a social class’s purchasing habits are relatively similar. A group of customers’ social class is determined by their income and other factors.
2. Social Factors
Consumer behaviour is influenced by social factors. A number of social factors, including family, reference groups, and roles and statuses, have a significant impact on how consumers respond to products, brands, and businesses. To effectively meet their requirements, marketers must examine these social factors of their target market.
a) Family: One of the most significant social elements influencing purchasing behaviour is the family. Where there is a joint family structure, where children live with family for a longer period of time, this is more important. Values, customs, and tastes are innately passed on from parents to their children. The most significant primary reference group is made up of family members. Family is where a person learns their values, including those related to religion, politics, ambition, self-worth, love, and respect. One’s behaviour is influenced by needs, choices, buying habits, consumption rate, and many other factors that are determined by the family.
b) Reference Groups: A reference group is a group of individuals with whom a person identifies. The reference group’s members typically have similar purchasing habits and influence one another.
c) Income Level: Consumer demands and wants are influenced by income. The preferences of wealthy and poor customers are very different. Between wealthy and less wealthy consumers, there is a significant gap in terms of quality, brand image, novelty, and pricing. It is essential for a marketer to understand the expectations of customers with different income levels and then target them accordingly.
d) Roles and Status: The position a person holds in society has an impact on them. If a person holds a high position, his decision will have a big impact on the purchasing decision. A corporation’s Chief Executive Officer will make purchases consistent with his position; however, a staff member or employee of the same organisation will make purchases differently.
3. Personal Factors
The consumers’ own personal factors have an impact on their purchasing decisions. These personal factors differ from person to person, resulting in different opinions and consumer behaviours.
a) Age: Individuals’ purchasing decisions are influenced by the age group to which they belong. When compared to youngsters, elderly people’s purchasing behaviour would be completely different.
b) Income: The shopping habits of a person are influenced by their income. The purchasing power of customers increases with wealth. When a customer has more money on hand, they have the potential to spend more on expensive products. Whereas, consumers who fall into the low or middle-income bracket spend the majority of their income on necessities like food and clothing.
c) Occupation: A consumer’s occupation affects his or her purchasing behaviours. A person prefers buying items that are related to his or her work. A senior corporate executive, for example, might purchase formal apparel, but a creative designer would choose casual clothing.
d) Lifestyle: A person’s attitude and manner of life define who they are in society. A consumer’s lifestyle has a significant impact on their buying behaviours. A person who lives a healthy lifestyle will spend more money on healthier food choices.
4. Psychological Factors
Understanding consumer behaviour relies heavily on human psychology. Psychological factors are difficult to measure, yet they are powerful enough to affect a purchasing choice.
Some of the most important psychological factors are:
a) Motivation: Motivation to do something frequently impacts a person’s purchasing behaviour. Individuals have several kinds of needs, including social, basic, and security requirements, as well as esteem and self-actualization needs. The fundamental requirements and security needs take priority over all other wants and these encourage a customer to purchase things and services.
b) Perception: Our perception is formed when we receive information about a product and analyse it in order to generate an appropriate image of that product. We build an image of a product whenever we see an advertisement, review, comment, or promotion. As a result, our perception influences our purchase decisions significantly.
c) Attitudes and Beliefs: Consumer attitudes and opinions also have an impact on purchasing decisions. The consumer acts in a specific way towards a product based on their mindset. Mindset is very important in developing a product’s brand image. Therefore, a marketer works hard to understand customer attitudes in order to build marketing initiatives.