Factors Affecting Consumer Behaviour

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Cultural Factors Affecting Consumer Behaviour

Cultural Factors

Cultural factors comprise of set of values and ideologies of a particular community or group of individuals. It is the culture of an individual which decide the way he/she behaves. In other words, culture is nothing but values of an individual. What an individual learns from his parents and relatives, as a child, becomes his culture.

Cultural factors have a significant effect on an individual’s buying decision. Every individual have different sets of habits, beliefs and principles which he/she develops from his family status and background. What they see from their childhood becomes their culture.

Religion

As we know, there are lots and lots of types of religions that exist around the word. No doubt, different religion can influence on people values, habits or even lifestyles as well. Therefore, companies need to consider well by understanding the religions that exist in that particular country. For example, a Muslim is prohibited to consume any pork or alcoholic drinks. They are forbidden to do so is all because of their religious belief. Without achieve an understanding of the market religion aspect, organisation might offense other religion or even struggle to stay in the market.

Status

People from upper class, generally, have a tendency to spend on luxurious items such as expensive gadgets, cars, dresses, etc. You would hardly find an individual from a lower-class spending money on high-end products. A person who finds it difficult to make ends meet would rather prefer spending on items necessary for survival. Individuals from middle class segment generally are more interested in buying products which would make their future secure.

Gender

Admittedly, it is quite easy to see the differences between female and male. However, it is now relevant to discover the differences between genders when it relates to buyer behaviour. It is necessary to explore what influences a man and a woman to buy a product or service and what appeals primarily to them. Retailers cannot promote to men the same way they do to women due to the fact that both genders are different; biologically, psychologically, and socially. Therefore, to sell products to both sexes accurately, they need to consider a range of different techniques.

Retailers take into consideration the issues of femininity and masculinity, which play a huge part in society today. These are also considered strong aspects of identity and self-concept. Before retailers construct promotional campaigns, they need to identify the different attributes/traits that are associated with both men and women, which ultimately groups them into either gender. For example, the most stereotypical traits that males are known for are; brave, competitiveness, aggressive, active and strong, whilst women, on the other hand, are usually stereotyped as being; sensitive, gentle, caring and emotional. Advertisers will use these stereotypical traits to create products and marketing material which appeal to a certain gender.

The difference in gender buyer behaviour is that many products are sex-typed, which leads to differences in gender buyer decisions, as a product usually holds feminine or masculine attributes which consumers can often associate with one gender or the other. Marketers are the main reason why products are usually sex-typed, for example; colour coded pink baby toys and princess playhouses hold the feminine attribute, which therefore will not usually appeal to men. This also occurs with major brand names, many names containing alphanumeric, are assumed quite technical and therefore assumed to be masculine. There is also a gender difference, which influences the things consumers may buy. Studies show that men tend to buy instrumental and leisure items whilst women will tend to buy symbolic and self-expressive goods.

Retailers usually discover that alternative methods may need to take place when a potential customer is male rather than female for example the use of colour in a promotion, advertising and packaging can all create and present a gender message to consumers. Colours in adverts usually identify what gender it is aimed at. Light pink, lilacs and reds are often aimed for women, whilst men usually relate to royal blues and greens. For women, the promotions emphasised beauty and youth whilst with the men it was upon value ambition and physical strength.

Social Factors Affecting Consumer Behaviour

Social Factors

Social factors play an essential role in influencing the buying decisions of consumers. Human beings are social animals. We need people around to talk to and discuss various issues to reach to better solutions and ideas. We all live in a society and it is really important for individuals to adhere to the laws and regulations of that society.

Social factors influencing consumer buying decision can be classified as:

Reference Groups

Every individual has some people around who influence him/her in any way. Reference groups comprise of people that individuals compare themselves with. Every individual knows some people in the society who become their idols in due course of time.

Co-workers, family members, relatives, neighbours, friends, and seniors at the workplace often form reference groups.

Primary Reference Group

Consists of individuals one interacts with on a regular basis.

Primary groups include:

• Friends
• Family Members
• Relatives
• Co-Workers

All the above influence the buying decisions of consumers due to following reasons:

• They have used the product or brand earlier.
• They know what the product is all about. They have complete knowledge about the features and specifications of the product.

Tim wanted to purchase a laptop for himself. He went to the nearby store and purchased a Dell Laptop. The reason why he purchased a Dell Laptop was because all his friends were using the same model and were quite satisfied with the product. We tend to pick up products our friends recommend.

A married individual would show a strong inclination towards buying products which would benefit not only him but also his family members as compared to a bachelor. Family plays an important role in influencing the buying decisions of individuals.

A consumer who has a wife and child at home would buy for them rather than spending on himself. An individual entering into marriage would be more interested in buying a house, car, household items, furniture, and so on. When an individual gets married and starts a family, most of his buying decisions are taken on behalf of the entire family.

Every individual goes through the following stages and shows a different buying need in each stage:

• Bachelorhood: purchases alcohol, bike, mobile phone(spends lavishly).
• Newly Married: tend to purchase a new house, car, household furnishings (spends sensibly).
• Family with Children: purchases products to secure his as well as his family’s future.
• Empty nest (children getting married)/retirement/old age: medicines, health products, and necessary Items.

Secondary Reference Groups

Secondary groups share indirect relationship with the consumer. These groups are more formal and individuals do not interact with them on a regular basis, for example - religious associations, political parties, clubs, etc.

Role In Society

Each individual plays a dual role in the society depending on the group he belongs to. An individual working as Chief Executive Officer with a reputed firm is also someone’s husband and father at home. The buying tendency of individuals depends on the role he plays in the society.

Social Status

An individual from an upper middle class would spend on luxurious items whereas an individual from middle to lower income group would buy items required for his/her survival.

Personal / Family Factors Affecting Consumer Behaviour

Occupation

The occupation of an individual plays a significant role in influencing his/her buying decision. An individual’s nature of job has a direct influence on the products and brands he picks for himself/herself.

An individual’s designation and his nature of work influence his buying decisions. You would never find a low-level worker purchasing business suits and ties for himself. An individual working on the shop floor can’t afford to wear premium brands to work every day.

College goers and students would prefer casuals as compared to professionals who would be more interested in buying formal shirts and trousers.

Age

Age and human lifecycle also influence the buying behaviour of consumers. Teenagers would be more interested in buying bright and loud colours, as compared to a middle aged or elderly individual who would prefer decent and subtle designs.

A bachelor would prefer spending lavishly on items like beer, bikes, music, clothes, parties, clubs, and so on. A young single person would hardly be interested in buying a house, property, insurance policies, gold, etc. An individual who has a family, on the other hand, would be more interested in buying something which would benefit his family and make their future secure.

Economic Condition

The buying tendency of an individual is directly proportional to his income/earnings per month. How much an individual brings home decides how much he spends and on which products?

Individuals with high income would buy expensive and premium products as compared to individuals from middle and lower income group who would spend mostly on necessary items. You would hardly find an individual from a low-income group spending money on designer clothes and watches. He would be more interested in buying grocery items or products necessary for his survival.

Lifestyle

Lifestyle, a term proposed by Austrian psychologist Alfred Adler in 1929, refers to the way an individual stays in the society. It is really important for some people to wear branded clothes whereas some individuals are really not brand conscious. An individual staying in a posh locality needs to maintain his status and image. An individual’s lifestyle is something to do with his style, attitude, perception, his social relations and immediate surroundings.

Personality

An individual’s personality also affects his buying behaviour. Every individual has his/her own characteristic personality traits which reflect in his/her buying behaviour. A fitness freak would always look for fitness equipment whereas a music lover would happily spend on musical instruments, CDs, concerts, musical shows, etc.

Psychological Factors Affecting Consumer Behaviour

Motivation

There are several other factors which motivate individuals to purchase products and services. An individual who is thirsty would definitely not mind spending on soft drinks, packaged water, juice, and so on. Recognition and self-esteem also influence the buying decision of individuals.

Individuals prefer to spend on premium brands and unique merchandise for others to look up to them. Certain products become their status symbol and people know them by their choice of picking up products that are exclusive.

Perception

What an individual thinks about a particular product or service is his/her perception towards the same. Individuals with the same needs might not purchase similar products due to difference in perception.

Individuals think differently and their perceptions do not match. Individuals perceive similar situation differently due to difference in the way they interpret information.

Difference In Perception

There are three different processes which lead to difference in perception:

Selective Attention - Selective attention refers to the process where individuals pay attention to information that is of use to them or their immediate family members. An individual is exposed to numerous advertisements, billboards, hoardings, etc. in a single day, but he is interested in only those which would benefit him in a particular way. He would not be interested in information which is not relevant at the moment.

Selective Distortion - Consumers tend to perceive information in a way which would be in line to their existing thoughts and beliefs.

Selective Retention - Consumers remember information which would be useful to them, rest all they forget in due course of time. Michael wanted to purchase a watch for his wife and thus he remembered the RADO advertisement which he had seen several days ago.

Learning

Learning comes only through experience. An individual comes to know about a product and service only after he/she uses the same. An individual who is satisfied with a particular product/service will show a strong inclination towards buying the same product again.

Belief And Attitude

Beliefs and attitude play an essential role in influencing the buying decision of consumers. Individuals create a certain image of every product or service available in the market. Every brand has an image attached to it, also called its brand image.

Consumers purchase products/services based on their opinions which they form towards a particular product or service. A product might be really good but if the consumer feels it is useless, he would never buy it.

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