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Internal factors--also called personal factors--represent the consumer's ability to benefit directly from the product in question. A person's motivation to purchase or consume any given product is an internal factor, and it may rely on a person's desire to achieve goals related to other internal and external factors. Perception greatly determines a consumer's behavior, allowing them to justify one action or another based on the perceived outcomes. Use of perception to motivate a consumer can be as simple as showing young and attractive people who are obviously very happy and successful and who are using the product in question.
External Factors
Social norms are a prominent external factor influencing consumer behavior. The prevalence of brand-name clothing or new trends in design and fashion, for example, affects what any individual consumer will choose for themselves. Cultural values are an increasingly tapped factor in influencing consumers. Advertising campaigns that boast American-made or sweatshop-free products are a common example. Some companies have begun to include such ideals not only in their advertising but also as an aspect of the products themselves. Some examples of the inclusion of cultural values in ownership of a product include Tom's Shoes, who donate a pair of shoes to children for every pair of shoes purchased, and the Purina One Hope Network, which donates a portion of profits from pet food sales to pet adoption efforts. In those cases, consumers are not only purchasing a product but also engaging in social activism.
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Introduction
What influences consumers to purchase products or services? The consumer buying process is a complex matter as many internal and external factors have an impact on the buying decisions of consumers. Consumers do not spend much time thinking about the purchase of low value products which are bought on impulse. Manufacturers of such products will need to implement strategies that encourage consumers to buy on impulse from them instead of their competitors.When consumers purchase high
value products or non impulse products, they often go through a set process. This process is discussed below. On the next page there is a discussion of what influences consumer buying behaviour and the different types of buying behaviour.
Problem or Need Recognition How do you decide which particular product or service to purchase? It could be that your Blu-Ray DVD player stops working and you now have to look for a new one; otherwise you will not be able to play your Blu-Ray films So you have a problem or a new need. This is the first step in the consumer buying process.
Information search
So we have a problem, our Blu-Ray player no longer works and we need to buy a new one. What is the solution? Yes go out and purchase a new one, but which brand? Shall we buy the same brand as the one that blew up? Or stay clear of that just in case the new player experiences the same problems as the old one? Consumer often go on an information search to help them choose their product. Sources of information include family, friends, retail staff and in this digital age the internet. The internet contains information about products (specifications), product reviews and online product forums. Information search may involve a visit to a retail store to view products that the consumer is interested in puchasing. In our example the consumer is on an information search to solve an immediate problem; they intend to make a purchase at the end of the process. Consumers also acquire and store information for future
purchases. Firms will take such consumers into account when designing their marketing strategies, in the hope that when such a consumer is ready to buy they will use the "stored" information about their product into account and buy their products. Evaluation of different purchase options So what Blu-Ray DVD player do we purchase? Will it be a Sony, Toshiba or Samsung player? Consumers often create a point system in their minds where products are scored based on how many of their features appeal to them. So for one customer, brand may be more important then price and for another customer product appearance may be important. In the case of a DVD player consumers may be reviewing sound and picture quality. An evaluation system is particularly useful when there is a large number of options. Marketing strategies will try and influence this stage of the process by highlighting product features that they think will appeal to consumers. Appealing product features will be emphasised on product packaging, promotional materials and the manufacturer's websites.
Purchase decision
After the evaluation process consumers will select the product they would like to purchase. Once product may be a clear winner or the consumer may have to reprioritise their criteria to help them select a product. The job of the seller is to ensure that the purchase process is simple and effective. Even at this stage the purchaser could change their mind and select a competitor product or cancel the purchase altogether. A long queue, impolite sales staff or complicated sales process can all dissuade consumers from buying. Even if a consumer buys on this occassion a negative buying experience could stop them buying in the future. Therefore sellers need to make the buying process as simple and enjoyable as possible to safeguard this and future purchases.
Post Purchase Behaviour
Ever have doubts about the product after you purchased it? Research shows that this feeling is a common post purchase behaviour. Manufacturers of products clearly want purchasers to feel proud of their purchase, so that they will purchase from them again and recommend them to family and friends. It is therefore just as important for manufacturer's promotions to reassure purchasers, as it is for them to attract new customers. Promotions should make puchasers feel that they have bought their product from a strong and reputable organisation with "good" products.
Introduction
Consumer behaviour is affected by many uncontrollable factors. Just think, what influences you before you buy a product or service? Your friends, your upbringing, your culture, the media, a role model or influences from certain groups?
Status and Culture
Culture is one factor that influences behaviour. Simply culture is defined as our attitudes and beliefs. But how are these attitudes and beliefs developed? As an individual growing up, a child is influenced by their parents, brothers, sister and other family member who may teach them what is wrong or right. They learn about their religion and culture, which helps them develop these opinions, attitudes and beliefs (AIO) . These factors will influence their purchase behaviour however other factors like groups of friends, or people they look up to may influence their choices of purchasing a particular product or service. Reference groups are particular groups of people some people may look up towards to that have an impact on consumer behaviour. So they can be a singer like the Lady Gaga or your immediate family members. Opinion leaders are those people that you look up to because your respect their views and judgements and these views may influence consumer decisions. So it maybe a friend who works with the IT trade who may influence your decision on what computer to buy. The economical environment also has an impact on consumer behaviour; do consumers have a secure job and a regular income to spend on goods? Marketing and advertising obviously influence consumers in trying to evoke them to purchase a particular product or service. People's social status will also impact their behaviour. What is their role within society? Are they Actors? Doctors? Office worker? and mothers and fathers also? Clearly being parents affects your buying habits depending on the age of the children, the type of job may mean you need to purchase formal clothes, the income which is earned has an impact. The lifestyle of someone who earns 250000 would clearly be different from someone who earns 25000. Also characters have an influence on buying decision. Whether the person is extrovert (out going and spends on entertainment) or introvert (keeps to themselves and purchases via online or mail order) again has an impact on the types of purchases made.
Maslows Hierarchy of Needs
Abraham Maslow hierarchy of needs theory sets out to explain what motivated individuals in life to achieve. He set out his answer in a form of a hierarchy. He suggests individuals aim to meet basic psychological needs of hunger and thirst.
When this has been met they then move up to the next stage of the hierarchy, safety needs, where the priority is with job security and knowing that you have a regualar income. Social needs come in the next level of the hierarchy, the need to belong or be loved is a natural human desire and people strive for this belonging. Esteem need is the need for status and recognition within society, status sometimes drives people, the need to have a good job title and be recognised or the need to wear branded clothes as a symbol of status. Self-actualisation the realisation that an individual has reached their potential in life. The point of self-actualisation is down to the individual, when do you know you have reached your point of self-fulfilment? But how does this concept help an organisation trying to market a product or service? Well as we have established earlier within this website, marketing is about meeting needs and providing benefits, Maslows concept suggests that needs change as we go along our path of striving for self-actualisation. Supermarket firms develop value brands to meet the psychological needs of hunger and thirst. Harrods develops products and services for those who want have met their esteem needs. So Maslows concept is useful for marketers as it can help them understand consumer needs and wants. For further information on motivation theory please visit www.learnmanagement2.com
Types of buying behaviour
There are four typical types of buying behaviour based on the type of products that intends to be purchased. 1. Complex buying behaviour is where the individual purchases a high value brand and seeks a lot of information before the purchase is made. 2. Habitual buying behaviour is where the individual buys a product out of habit e.g. a daily newspaper, sugar or salt. 3. Variety seeking buying behaviour is where the individual likes to shop around and experiment with different products. So an individual may shop around for different breakfast cereals because he/she wants variety in the mornings! 4. Dissonance reducing buying behaviour is when buyers are highly involved with the purchase of the product, because the purchase is expensive or infrequent. There is little difference between existing brands an example would be buying a diamond ring, there is perceived little difference between existing diamond brand manufacturers.
Summary
There are five stages of consumer purchase behaviour Problem/Need Recognition Information search. Evaluation of purchases. Purchase decision. Post purchase behaviour. Culture has an impact on the company and the way products are developed. Marketers should take into account Maslows hierarchy of needs when putting together their product idea.
For the purposes of this tutorial we will break these influences down into three main categories: Internal, External and Marketing. However, those interested in learning more about customer buying activity may want to consult one or more consumer behavior books where they will find additional methods for explaining consumer buying behavior. For the most part the influences are not mutually exclusive. Instead, they are all interconnected and, as we will see, work together to form who we are and how we behave. For each of the influences that are discussed we will provide a basic description and also suggest its implication to marketers. Bear in mind we only provide a few marketing implications for each influence; clearly there are many more.
getting my moneys worth?), and perceived risk (e.g., What happens if I make a bad decision?). Marketing Implications: Motivation is also closely tied to the concept of Involvement, which relates to how much effort the consumer will exert in making a decision. Highly motivated consumers will want to get mentally and physically involved in the purchase process. Not all products have a high percentage of highly involved customers (e.g., milk) but marketers who market products and services that may lead to high level of consumer involvement should prepare options that will be attractive to this group. For instance, marketers should make it easy for consumers to learn about their product (e.g., information on website, free video preview) and, for some products, allow customers to experience the product (e.g., free trial) before committing to the purchase.
Perceptual Filter
Perception is how we see ourselves and the world we live in. However, what ends up being stored inside us doesnt always get there in a direct manner. Often our mental makeup results from information that has been consciously or subconsciously filtered as we experience it, a process we refer to as a perceptual filter. To us this is our reality, though it does not mean it is an accurate reflection on what is real. Thus, perception is the way we filter stimuli (e.g., someone talking to us, reading a newspaper story) and then make sense out of it. Perception has several steps.
Exposure sensing a stimuli (e.g. seeing an ad) Attention an effort to recognize the nature of a stimuli (e.g. recognizing it is an ad) Awareness assigning meaning to a stimuli (e.g., humorous ad for particular product) Retention adding the meaning to ones internal makeup (i.e., product has fun ads)
How these steps are eventually carried out depends on a persons approach to learning. By learning we mean how someone changes what they know, which in turn may affect how
they act. There are many theories of learning, a discussion of which is beyond the scope of this tutorial, however, suffice to say that people are likely to learn in different ways. For instance, one person may be able to focus very strongly on a certain advertisement and be able to retain the information after being exposed only one time while another person may need to be exposed to the same advertisement many times before he/she even recognizes what it is. Consumers are also more likely to retain information if a person has a strong interest in the stimuli. If a person is in need of new car they are more likely to pay attention to a new advertisement for a car while someone who does not need a car may need to see the advertisement many times before they recognize the brand of automobile. Marketing Implications: Marketers spend large sums of money in an attempt to get customers to have a positive impression of their products. But clearly the existence of a perceptual filter suggests that getting to this stage is not easy. Exposing consumers to a product can be very challenging considering the amount of competing product messages (ads) that are also trying to accomplish the same objective (i.e., advertising clutter). So marketers must be creative and use various means to deliver their message. Once the message reaches consumer it must be interesting enough to capture their attention (e.g., talk about the products benefits). But attending to the message is not enough. For marketers the most critical step is the one that occurs with awareness. Here marketers must continually monitor and respond if their message becomes distorted in ways that will negatively shape its meaning. This can often happen due in part to competitive activity (e.g., comparison advertisements). Finally, getting the consumer to give positive meaning to the message they have retained requires the marketer make sure that consumers accurately interpret the facts about the product.
Marketing Implications: For marketers it is important to know that consumers make purchase decisions to support their self concept. Using research techniques to identify how customers view themselves may give marketers insight into products and promotion options that are not readily apparent. For example, when examining consumers a marketer may initially build marketing strategy around more obvious clues to consumption behavior, such as consumers demographic indicators (e.g., age, occupation, income). However, in-depth research may yield information that shows consumers are purchasing products to fulfill self-concept objectives that have little to do with the demographic category they fall into (e.g., senior citizen may be making purchases that make them feel younger). Appealing to the consumers self concept needs could expand the market to which the product is targeted.
cultures exist where groups share similar values in terms of ethnicity, religious beliefs, geographic location, special interests and many others. Marketing Implications: As part of their efforts to convince customers to purchase their products, marketers often use cultural representations, especially in promotional appeals. The objective is to connect to consumers using cultural references that are easily understood and often embraced by the consumer. By doing so the marketer hopes the consumer feels more comfortable with or can relate better to the product since it corresponds with their cultural values. Additionally, smart marketers use strong research efforts in an attempt to identify differences in how sub-culture behaves. These efforts help pave the way for spotting trends within a sub-culture, which the marketer can capitalize on through new marketing tactics (e.g., new products, new sales channels, added value, etc.).
purchase decision, such as the nature of their physical environment, their emotional state, or time constraints. Not all situations are controllable, in which case a consumer may not follow their normal process for making a purchase decision. For instance, if a person needs a product quickly and a store does not carry the brand they normally purchase, the customer may choose a competitors product. Marketing Implications: Marketers can take advantage of decisions made in uncontrollable situations in at least two ways. First, marketers can use promotional methods to reinforce a specific selection of products when the consumer is confronted with a particular situation. For example, automotive services can be purchased that promise to service vehicles if the user runs into problems anywhere and at anytime. Second, marketers can use marketing methods that attempt to convince consumers that a situation is less likely to occur if the marketers product is used. This can also be seen with auto products, where marketers explain that using their product will prevent unexpected damage to their vehicles.
Minor New Purchase these purchases represent something new to a consumer but in the customers mind is not a very important purchase in terms of need, money or other reason (e.g., status within a group). Minor Re-Purchase these are the most routine of all purchases and often the consumer returns to purchase the same product without giving much thought to other product options (i.e., consumer is brand loyalty). Major New Purchase these purchases are the most difficult of all purchases because the product being purchased is important to the consumer but the consumer has little or no previous experience making these decisions. The consumers lack of confidence in making this type of decision often (but not always) requires the consumer to engage in an extensive decision-making process.. Major Re-Purchase - these purchase decisions are also important to the consumer but the consumer feels confident in making these decisions since they have previous experience purchasing the product.
For marketers it is important to understand how consumers treat the purchase decisions they face. If a company is targeting customers who feel a purchase decision is difficult (i.e., Major New Purchase), their marketing strategy may vary greatly from a company targeting
customers who view the purchase decision as routine. In fact, the same company may face both situations at the same time; for some the product is new, while other customers see the purchase as routine. The implication of buying behavior for marketers is that different buying situations require different marketing efforts
However, whether a consumer will actually carryout each step depends on the type of purchase decision that is faced. For instance, for minor re-purchases the consumer may be quite loyal to the same brand, thus the decision is a routine one (i.e., buy the same product) and little effort is involved in making a purchase decision. In cases of routine, brand loyal purchases consumers may skip several steps in the purchasing process since they know exactly what they want allowing the consumer to move quickly through the steps. But for more complex decisions, such as Major New Purchases, the purchasing process can extend for days, weeks, months or longer. So in presenting these steps marketers should realize that, depending on the circumstances surrounding the purchase, the importance of each step may vary.
CONSUMER BUYING BEHAVIOR Definition: Consumer behavior refers to the mental and emotional process and the observable behavior of consumers during searching, purchasing and post consumption of a productor service.Consumer behavior involves study of how people buy, what they buy, when they buy andwhy they buy. It blends the elements from psychology, sociology, sociopsychology,anthropology and economics. It also tries to assess the influence on the consumer fromgroups such as family, friends, reference groups and society in general.Buyer behavior has two aspects: the final purchase activity visible to any observer andthe detailed or short decision process that may involve the interplay of a number of complex variables not visible to anyone. Factors Affecting Consumer Buying Behavior Consumer buying behavior is influenced by the major three factors:1.Social Factors2.Psychological Factors3.Personal Factors. A.Social Factors Social factors refer to forces that other people exert and which affect consumers purchase behavior. These social factors can include culture and subculture, roles andfamily, social class and reference groups. Example: By taking into consideration Reference group, these can influence/ affect theconsumer buying behavior. Reference group refers to a group with whom anindividual identifies herself/ himself and the extent to which that person assumesmany values, attitudes or behavior of group members. Reference groups can befamily, school or college, work group, club membership, citizenship etc.Reference groups serve as one of the primary agents of consumer socialization and learning and can be influential enough to induce not only sociallyacceptable consumer behavior but also socially unacceptable and even personal6
destructive behavior. For example, if fresher student joins a college / university,he/she will meet different people and form a group, in that group there can be behavior patterns of values, for example style of clothing, handsets which most of group member prefer or even destructive behavior such as excessive consumption of alcohol, use of harmful and addictive drugs etc. So, according to how an individualreferences him / herself to that particular reference group, this will influence andchange his/her buying behavior. B.Psychological Factors
These are internal to an individual and generate forces within that influenceher/his purchase behavior. The major forces include motives, perception, learning,attitude and personality. Example: Attitude, is an enduring organization of motivational, emotional, perceptualand cognitive processes with respect to some aspect of our environment.Consumer form attitude towards a brand on the basis of their beliefs about the brand. For example, consumers of Sony products might have the belief that the products offered by Sony are durable; this will influence those customers to buySony products due to this attitude towards the brand. C.Personal Factors These include those aspects that are unique to a person and influence purchase behavior. These factors include demographic factors, lifestyle, and situationalfactors. Example: s Lifestyle is an indicator of how people live and express themselves on the basis of their activities, interests, and opinions. Lifestyle dimension provide a broader view of people about how they spend their time the importance of thingsin their surroundings and their beliefs on broad issues associated with life andliving and themselves. This is influenced by demographic factors and personality.
E.g. A CEO or Manager is likely to buy more formal clothes, ties andshoes or PDAs and less informal clothes like jeans as compared to a Mechanic or Civil engineer. So according to their lifestyle and profession, the buying behavior of people differ from one another.
Factors Affecting Consumer Buying Behavior: Consumer buying behavior is influenced by the major three factors:1. Social Factors2. Psychological Factors3. Personal Factors. A. Social Factors Social factors refer to forces that other people exert and which affect consumerspurchase behavior. These social factors can include culture and subculture, roles andfamily, social class and reference groups. Example: Culture is the fundamental determinant of a persons wants and behavior.By taking into consideration Reference group, these can influence/ affect the consumerbuying behavior. Reference group refers to a group with whom an individual identifiesherself/ himself and the extent to which that person assumes many values, attitudes orbehavior of group members. Reference groups can be family, school or college, work group, club membership, citizenship etc. Reference groups serve as one of the primaryagents of consumer socialization and learning and can be influential enough to induce notonly socially acceptable consumer behavior but also socially unacceptable and evenpersonal destructive behavior.For example, if fresher student joins a college / university, he/she will meetdifferent people and form a group. In that group there can be patterns of values, forexample style of clothing, handsets which most of group member prefer or evendestructive behavior such as excessive consumption of alcohol, use of harmful andaddictive drugs etc. So, according to how an individual references him / her to thatparticular reference group, this will influence and change his/her buying behavior.
B. Psychological Factors These are internal to an individual and generate forces within, that influenceher/his purchase behavior. The major forces include motives, perception, learning,attitude and personality
. Example: Attitude is an enduring organization of motivational, emotional, perceptual andcognitive processes with respect to some aspect of our environment. Consumer formsattitude towards a brand on the basis of their beliefs about the brand.For example, consumers of Sony products might have the belief that the productsoffered by Sony are durable; this will influence those customers to buy Sony productsdue to this attitude towards the brand. C. Personal Factors These include those aspects that are unique to a person and influence purchasebehavior. These factors include age, stage in the life cycle, occupation, economiccircumstances, lifestyle, values and situational factors . Example: Lifestyle is an indicator of how people live and express themselves on the basis of their activities, interests, and opinions. Lifestyle dimension provide a broader view of people; about how they spend their time, the importance of things in their surroundingsand their beliefs on broad issues associated with life and living and themselves. This isinfluenced by demographic factors and personality.E.g. A CEO or Manager is likely to buy more formal clothes, ties and shoes orPDAs and less informal clothes like jeans as compared to a Mechanic or Civil engineer.So according to their lifestyle and profession, the buying behavior of people differs fromone another.
When people act they learn. Learning involves changes in an individuals behavior arising from experience. Learning theory teaches marketers that they can build updemand for a product by associating it with strong drives, using motivating cues and positive reinforcement. o Beliefs and attitudesThrough doing and learning, people acquire beliefs and attitudes. These in turninfluence buying behavior. A belief is a descriptive thought that a person holds aboutsomething. The beliefs make up product and brand images and people act on theseimages.An attitude is a person enduring favorable or unfavorable evaluations, emotionfeelings and action tendencies toward some object or idea. Thus a company would bewell advised to fit product into existing attitudes rather than try and change peoplesattitudes. s