Consumer behaviour and the factors influencing buying decisions

Meaning of consumer behaviour

Consumer behaviour is the way people choose, buy, use and dispose of goods and services for their own or their household's use, together with the thinking before and after each purchase: how they search for and evaluate the options, and how they feel about the choice afterwards. Buying decisions are strongly influenced by four groups of factors, most of which the marketer cannot control but must understand.

Cultural factors

1. Culture. The values, habits and ways of seeing things that a person absorbs while growing up in a society. Indian buyers' emphasis on family, festivals and vegetarian food in many homes shapes demand.
2. Subculture. Groups sharing values based on region, religion, language or ethnicity; regional food preferences and festivals lead to regional products and campaigns.
3. Social class. Lasting layers of society marked by occupation, income, education and wealth; classes show distinct preferences in clothing, leisure and cars.

Social factors

1. Reference groups. Groups that serve as points of comparison, friends, colleagues, online communities, and opinion leaders and influencers whose views others follow.
2. Family. The unit within which most consumer buying is decided; husband, wife and children influence different purchases, and children increasingly influence food, gadgets and holidays.
3. Roles and status. People choose products that communicate their role and status, such as formal wear for a manager.

Personal factors

1. Age and life-cycle stage. Needs change from childhood to student life, marriage, parenthood and retirement.
2. Occupation. A farmer, a software engineer and a doctor buy different goods.
3. Economic situation. Income, savings and access to credit decide what and how much is bought.
4. Lifestyle. Patterns of activities, interests and opinions: fitness-conscious, outdoor, home-centred.
5. Personality and self-concept. Buyers choose brands that match how they see themselves.

Psychological factors

1. Motivation. A need strong enough to drive action, from physical and safety needs to social, esteem and self-fulfilment needs.
2. Perception. How people select, organise and interpret information; two buyers may see the same advertisement differently.
3. Learning. What a buyer does differently because of past experience; satisfaction with a brand reinforces repeat buying.
4. Beliefs and attitudes. Lasting opinions and evaluations that make buyers like or dislike a product; they are difficult to change.

Example of the factors together: a young professional buying her first car is driven by a status motive (psychological), advised by colleagues and family (social), limited by her income and loan eligibility (personal), and inclined towards a compact, fuel-efficient model by the values of her urban middle-class background (cultural).

Conclusion

A consumer's choice is the result of a complex interplay of cultural, social, personal and psychological factors. Understanding them helps marketers segment the market, design products and frame messages that fit the buyer.