To begin, let’s defining what a consumer is. Foremost, the consumer is the one who governs the market and market trends. In fact, a consumer is a person who pays an amount to consume the goods and/or services sold by an organization. On the top of that, they play a very important role in the demand and supply chain of each economic system in each nation. Producers of goods and services are entirely dependent on the latter because without them they would have no reason to produce. This is the reason why an offer only makes sense if there is demand.
There are four main factors that affect consumer behavior, such as :
It has a very important role in the determining consumer behavior. This includes three type of culture :
Culture is a very complex belief of human behavior. It includes, the human society, the roles that the society plays, the behavior of the society, its values customs and traditions.
Sub-culture is the group of people who share the same values, customs and traditions. You can take the example of the nation, the religion, racial groups and also groups of people sharing the same geographic location
3. Social Class
It is important to know what social class is being targeted. Indeed, each society has its own social class and purchasing behavior is specific to each social class. Remember not just the income but even other factors describe social class of a group of consumers.
Social factors are subdivided into three category :
1. Reference groups
Under social factors reference groups have a great potential of influencing consumer behavior. However, its impact varies across products and brands. Besides, this group often includes an opinion leader
The behavior of a consumer is not only influenced by their motivations and personalities. In fact, families and family members who living together can also influence behavior of consumer.
3. Role and status
People who belong to different organizations, groups or club members, families play roles and have a status to maintain. Actually, these roles and status that they have to maintain also influences consumer behavior as they decide to spend accordingly.
In addition to, a number of personal factors also influence the consumer behavior. In fact, this is one major factor that influences consumer behavior. The sub factors under personal factor are listed below.
- Age and life cycle stage
Age of a consumer and his life cycle are two most important sub factors under personal factors. Indeed, with the age and the life cycle the consumers purchase options and the motive of purchase changes, with his decisions of buying products change. In this way, this stage does affect consumer behavior.
Occupation of a consumer is affects the goods and services a consumer buys. In most cases, the occupations group has above average interest in buying different products and services offered by organizations. In fact organizations produce separate products for different occupational groups.
- Financial or economic situations
If the economic situation of a consumer is not good or stable it will affect his purchase power. That is to say, if the consumers or the economy of a nation is suffering a loss it defiantly affects the consumers purchase or spending decisions.
- Life style
People originating from different cultures, sub cultures, occupations and even social class have different styles of living. Above all, life style can confirm the interest, opinions and activities of people. Thus, different life styles affect the purchase pattern of consumers.
- Self concept and personality
Every individual is different and have different and distinct personalities. So, their distinct personalities and distinct physiology effects their buying decisions. As a result, purchase of products and services defers from
person to person.
There are four psychological factors affect consumer behavior very strongly. This includes :
Motivation is activating the internal needs and requirements of the consumer. Also, it can be described as goals and needs of the consumers.
Perception is sensing the world and the situations around and then taking a decision accordingly. Similarly, every individual look as the world and the situations differently. Not only, the judging ability and capacity of every individual is different and hence the look at the world differently but also this is what separates the decision taking abilities
3. Experience and learning
Learning is the research of products and services before the consumer takes the decision of buying a product. Self educating these days is done online and also in groups. Experience is taking a lesson from the past experiences of a product and service. Learning and experience both again play an important role in influencing the consumer’s behavior as it influences their purchase decision.
4. Attitude and beliefs
Attitude is a consumer’s favorable or unfavorable emotional condition to certain actions and behaviors. Beliefs of people determine what they think about the product. Thus, attitude and beliefs are also important and need to be taken into consideration while studying human behavior.