FACTORS INFLUENCING CONSUMER BUYER BEHAVIOR*CB & C

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Major factors that influence consumer buyer behaviourBuying Behaviour is the decision processes and acts of people involved in buying and using products.We need to understand: Why consumers make the purchases that they make? What factors influence consumer purchases? The changing factors in our society.

Consumer Buying Behavior refers to the buying behavior of final consumers -individuals & households - who buy goods and services for personal consumption.These final consumers make up the consumer market.CB & C*

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Consumers buyer behaviour and the resulting purchase decision are strongly influenced by cultural, social, personal and psychological characteristics. A consumers buyer behaviour is influenced by four major factors:Cultural factorsSocial factorsPersonal factorsPsychological factorsAlthough many of these factors cannot be directly controlled by marketers, understanding of their impact is essential as marketing mix strategies can be developed to appeal to the preferences of the target market.CB & C*

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Cultural Factors

Culture

Sub-Culture

Social Class

Social Factors

Reference Groups

Family

Roles & Status

Personal FactorsAge & Lifecycle stage

Occupation

Economic situation

Lifestyle

Personality & Self Concept Psychological FactorsMotivation

Perception

Learning

Beliefs & Attitudes

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CULTURAL FACTORS Include a consumers culture, subculture and social class. These factors are often inherent in our values and decision processes.Culture SubcultureSocial Class5CB & C

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CultureCulture is the learned values, perceptions, wants, and behavior from family and other important institutionsCulture is the most basic cause of a persons wants and behaviorCulture reflects basic values, perceptions, wants, and behaviorsCultural shifts create opportunities for new products or may otherwise influence consumer behavior5CB & C

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SubcultureSubculture are groups of people within a culture with shared value systems based on common life experiences and situations. Subcultures include nationalities, religions, racial groups and geographic regions.Major subculture groups in the U.S.A include; Hispanic consumers, African-American consumers, Asian-American consumers, and Mature consumersMany brands now target specific subcultures with marketing programs tailored to their specific needs and preferences. For example, P&Gs Cover Girl Queen cosmetics line was inspired by Queen Latifah to celebrate the beauty of women of color.5 - 10*CB & C

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Social ClassSocial classes are societys relatively permanent and ordered divisions whose members share similar values, interests, and behaviors.They include;Upper classMiddle classWorking classLower classSocial classes are measured by a combination of occupation, income, education, wealth, and other variables5 - 10*CB & C

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The Major American Social Classes5 - 12*CB & C

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SOCIAL FACTORS Include groups (reference groups, aspirational groups and member groups), family, roles and status. This explains the outside influences of others on our purchase decisions either directly or indirectly.Reference groupsFamily Roles & Status5CB & C

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Reference Groups and social networksMembership, Reference, and Aspirational groupsMarketers attempt to reach opinion leaders within groups important to target marketOpinion leaders are recruited as brand ambassadors or for buzz marketingOnline social networks allow marketers to interact with consumers e.g. Facebook, Twitter, Orkut, My space, Twoo etc.5 - 10*CB & C

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FamilyStrongly influences buying behaviorGender stereotypes for certain types of purchases are relaxing in the U.S.Children are very influential, and have substantial disposable income of their ownRoles and statusRole = Expected activitiesStatus = Esteem given to role by society

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PERSONAL FACTORS Include such variables as age and lifecycle stage, occupation, economic circumstances, lifestyle (activities, interests, opinions and demographics), personality and self concept. These may explain why our preferences often change as our `situation' changes.Age & Lifecycle stageOccupation Economic situationLifestyle Personality & Self-Concept5CB & C

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Lifestyle A persons pattern of living as expresses in his or her activities, interests, and opinions.Lifestyle is expressed in terms of an individuals psychographics.People within the same subculture, social class, and occupation may have different lifestyles. Thus people often buy the lifestyles represented by products or services

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PersonalityRefers to the unique psychological characteristics that distinguish a person or groupGenerally defined in terms of traitsCan be useful in analyzing consumer behavior for certain product or brand choicesBrands may also have personalities

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PSYCHOLOGICAL FACTORS Psychological factors affecting our purchase decisions. Motivation Perception Learning Beliefs and Attitudes5CB & C

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Motivation A motive is a need that is sufficiently pressing to direct the person to seek satisfaction. The term motivation research refers to qualitative research designed to probe consumers hidden, subconscious motivations. Consumers often dont know or cant describe why they act as they do. Thus, motivation researchers use a variety of probing techniques to uncover underlying emotions and attitudes toward brands and buying situations.According to Maslow, human needs are arranged in a hierarchy. Starving people will take little interest in the latest happenings in the art world.5 - 19*CB & C

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Maslows Hierarchy of Needs5 - 24*CB & C

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Perception A process by which people select, organise and interpret information to form a meaningful picture or word.Selective attentionselective distortionselective retention All these cause people to perceive things differently.

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Learning Changes in an individuals behavior arising from experienceOccurs due to an interplay of drives, stimuli, cues, responses, and reinforcementStrongly impacted by the consequences of an individuals behaviorBehaviors with satisfying results tend to be repeated

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Beliefs and AttitudeA belief; is a descriptive thought that a person hold about something

An Attitude; is a persons consistently favourable or unfavourable evaluations, feelings and tendencies towards an object or idea.

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