Factors influencing consumer behaviour

Consumer behavior are a process involving: acquisition of goods, its use, and disposal of it. These include not only physical actions, but also all the operations taking place in the psyche at the time of purchase. Consumer behavior is a structured series of reactions to various stimuli.

Types of consumer behavior

There are two main types of consumer behavior on the market:

• intentional, fully conscious, well thought out and towards a specific purpose, this behavior reflects attitudes of consumers and their desires,
• unintentional, usually not conscious, performed automatically on the under the influence of the reflex. They do not reflect the real needs of the consumer.

Both types of consumer behavior can be further classified into:

• voluntary, activities that arise from an inner desire which are not limited by anything,
• involuntary, pressured, or arising out of compulsion. Due to restriction resulting from the difficult situation of individuals, such action may be the result of the influence of other people.

Both voluntary and involuntary behavior can be further separated into:

• rational - that allows the consumer to the greatest possible satisfaction with purchase. Rational purchase takes place when the consumer for the given sum of money buys so many goods to be most satisfied with the purchase.
• irrational, illogical or inconsistent with the expectation of the consumer, and he knows that at the time of purchase.

Factors influencing consumer behavior

Consumer behavior during purchase can be classified by four factors. " There are the following determinants of consumer behavior:

• cultural factors, which include: culture, social group,
• Social factors which are: social group, family members, status and role. Particular attention should be paid to the family, which in a situation of higher expenditures will constitute a decision group,
• personal factors which include the characteristics of the individual consumer, such as age and the associated phase of the life cycle, occupation, financial situation, lifestyle, hobbies and personality,
• psychological factors, which include such elements as: motivation, perception, education and beliefs.

Models of consumer behavior

Consumer behavior models are a kind of schemes of mechanisms and phenomena that are the basis for creating theories about them. Most frequently mentioned models of consumer behavior are:

• EBK model
• Bettman model
• Fishbein model
• AIDA model
• Hierarchy of effects model
• DAGMAR model
• Howard Sheth model of consumer behaviour

Examples of Factors influencing consumer behaviour

1. Cultural Factors: Cultural factors have a major influence on consumer behavior. These factors include culture, subculture, and social class, which all contribute to the consumer's unique set of values, beliefs, and attitudes. Cultural factors play a major role in determining how consumers make decisions and how they view various products and services. For example, the type of food that is consumed in different countries is a reflection of their culture.
2. Social Factors: Social factors also influence consumer behavior, as they determine the type of relationships that consumers have with other people. Factors such as family, reference groups, peers, and social media have an effect on consumer behavior. For example, a consumer might purchase a product because of peer pressure or because of an endorsement from an influencer on social media.
3. Personal Factors: Personal factors include the consumer's lifestyle, age, occupation, economic status, and personality. These factors impact the type of products and services that a consumer is likely to purchase. For example, a young professional in the finance industry is likely to be more interested in high-end professional products and services than a college student.
4. Psychological Factors: Psychological factors such as motivation, perception, learning, attitude, and beliefs also influence consumer behavior. These factors affect how consumers perceive a product or service and how they make decisions. For example, a consumer may purchase a product because they believe it will make them look cool or fashionable.
5. Situational Factors: Situational factors refer to the consumer's physical and social environment at the time of purchase. These factors include time, location, and occasion. For example, a consumer may be more likely to purchase a product if it is available at a convenient location or if it is offered at a discounted price.

Advantages of Factors influencing consumer behaviour

The advantages of factors influencing consumer behaviour can be summarized as follows:

• Social Factors: Social factors play a major role in consumer buying behaviour. They influence how people think, how they act, and what they decide to purchase. Social factors may include family, friends, culture, and socio-economic status.
• Personal Factors: Personal factors influence what people choose to buy. These factors include age, occupation, lifestyle, and income. People's individual reactions to products and services are also personal factors.
• Psychological Factors: Psychological factors are beliefs, attitudes, and emotions that influence how people buy. These include motivation, perception, learning, and attitudes. People's perceptions of products and services, their memories, and the way they feel about them all shape their buying decisions.
• Cultural Factors: Cultural factors are a set of values, beliefs, and customs shared by a particular group of people. They influence how people think, behave, and make decisions. Cultural factors are especially important when marketing globally and understanding the nuances of different cultures.

Limitations of Factors influencing consumer behaviour

• Consumer behavior is affected by a variety of factors, but there are some limitations to consider when trying to identify and analyze these influences.
• One limitation is that consumer behavior is not solely based on individual preferences or decisions. The external environment, such as laws, regulations, and economic conditions, can also play a role in shaping consumer behavior.
• Another limitation is that consumer behavior is subject to change over time. Consumers’ preferences and needs can change as the situation or circumstances change, requiring businesses to be flexible and adaptable in their approach.
• A third limitation is that consumer behavior is often unpredictable and hard to predict. Consumers can be influenced by a variety of factors, including advertising, media, and peer pressure, making it difficult to accurately anticipate their behavior.
• Finally, consumer behavior is also affected by psychological factors, such as emotions, beliefs, and attitudes. These factors can be difficult to measure and can be affected by a variety of external influences. As such, they can be difficult to take into account when analyzing consumer behavior.

Factors influencing consumer behaviour — recommended articles

Consumer decision making process — Consumer buying behaviour — Nicosia model — EBK model — Fishbein model — AIDA model — Howard Sheth model of consumer behaviour — Bettman model — Hierarchy of effects model

References

• F.M. Nicosia, Consumer Decision Processess; Marketing and Advertising Implications, Prentice Hall, Englewood Cliffs, N.J. 1966, p. 156.
• Bettman, J. R., & Jones, J. M. (1972). Formal models of consumer behavior: a conceptual overview. The Journal of Business, 45(4), 544-562.
• Bettman, J. R., Luce, M. F., & Payne, J. W. (1998). Constructive consumer choice processes. Journal of consumer research, 25(3), 187-217.
• Simonson, I., Carmon, Z., Dhar, R., Drolet, A., & Nowlis, S. M. (2001). Consumer research: In search of identity. Annual review of psychology, 52(1), 249-275.