Unit 2-4: Factors That Influence Customer Behaviour

Experiential Factor

- a desirable shopping experience will make consumers extend their stay with the retailer.

Roles and Status

- a person belongs to many groups, family, clubs and organisations. - the person's position in each group can be defined in terms of both role and status.

Occupation

- a person's occupation affects the goods and services bought. E.g. blue collar workers tend to buy rugged work clothes while white collar workers tend to buy business suits. - Companies can specialize in making products needed by an occupational group. E.g. computer software companies will design different products for brand managers, accountants, lawyers and doctors.

Personal factors that influences consumer behaviour

- age and life cycle stage - occupation - economic situation - life style - personality and self concept

Salespeople

- can directly influence customer's decision to purchase. - building strong relationships for future purchases.

Advertising

- can help companies develop consumers' awareness to an unmet need or introduce a product that consumers may see as valuable. - may need to use advertising to stave off the popularity of a competitor's products in the economic market.

Economic Situation

- economic situations have a great influence on a buyer's behavior. - an individual with high income and savings will purchase more expensive products. - an individual with lower income will purchase inexpensive products.

Social Class

- every society possesses some form of social class. - buying behavior of people in a given social class is similar.

Culture

- most basic cause of a person's wants and behavior. - every group or society has a culture. - cultural influences on buying behavior may vary greatly from country to country. - each culture contains different subcultures such as religions, nationalities, geographic regions and racial groups.

Age and life cycle stage

- people change the goods and services they buy over their lifetime. - tastes in food, clothes, furniture and recreation are often age related. - buying is also shaped by the stage of the family life cycle.

Consumer purchases are influenced by

- personal - social - cultural - commercial - experimental

Family and Groups

- primary groups : family, friends, neighbours and co-workers. - secondary : more formal and have less regular interactions such as religious groups, professional associations and trade unions.

Packaging

- size of a package influences buying decisions. - a larger package gives a consumer the impression that they are buying of more of whatever product is in it.

Life Style

- the way a person lives in a society and is expressed by the things in his/her surroundings. - work, hobbies, shopping, support interest (food, fashion, family recreation) and opinions (about themselves, business and products).

Social Factor

A consumer's behavior is influenced by social factors such as: - family and groups - roles and status

Consumer Behaviour

Selection, purchase and consumption of goods and services for the satisfaction customer wants.

Cultural Factor

can be divided into two sub factors - culture - social class

Commercial Factor

includes advertising, salespeople and advertising.

Personality and Self-Concept

refers to the unique psychological characteristics that lead to relatively consistent and lasting responses to one's own environment.