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ISSN Print: 2394-7500
ISSN Online: 2394-5869
Impact Factor: 5.2
IJAR 2016; 2(10): 76-80
www.allresearchjournal.com
Received: 13-08-2016
Accepted: 14-09-2016
N Ramya
Assistant Professor,
Department of Commerce with
Professional Accounting,
Dr. N. G. P. Arts and Science
College, Coimbatore – 641048,
Tamil Nadu, India
Dr. SA Mohamed Ali
Ph.D., Professor,
CMS Institute of Management
Studies, Coimbatore – 641049,
Tamil Nadu, India
Correspondence
N Ramya
Assistant Professor,
Department of Commerce with
Professional Accounting,
Dr. N. G. P. Arts and Science
College, Coimbatore – 641048,
Tamil Nadu, India
Factors affecting consumer buying behavior
N Ramya and Dr. SA Mohamed Ali
Abstract
Consumer Buying Behaviour refers to the buying behaviour of the ultimate consumer. Many factors,
specificities and characteristics influence the individual in what he is and the consumer in his decision
making process, shopping habits, purchasing behavior, the brands he buys or the retailers he goes. A
purchase decision is the result of each and every one of these factors. An individual and a consumer is
led by his culture, his subculture, his social class, his membership groups, his family, his personality,
his psychological factors, etc.. and is influenced by cultural trends as well as his social and societal
environment. By identifying and understanding the factors that influence their customers, brands have
the opportunity to develop a strategy, a marketing message (Unique Value Proposition) and advertising
campaigns more efficient and more in line with the needs and ways of thinking of their target
consumers, a real asset to better meet the needs of its customers and increase sales.
Keywords: Pigeonholing, chunking, law of primacy, socio-economic classification
Introduction
Consumer buying behavior refers to the selection, purchase and consumption of goods and
services for the satisfaction of their wants. There are different processes involved in the
consumer behavior. Many factors, specificities and characteristics influence the individual in
what he is and the consumer in his decision making process, shopping habits, purchasing
behavior, the brands he buys or the retailers he goes. A purchase decision is the result of each
and every one of these factors. Initially the consumer tries to find what commodities he
would like to consume, then he selects only those commodities that promise greater utility.
After selecting the commodities, the consumer makes an estimate of the available money
which he can spend. Lastly, the consumer analyzes the prevailing prices of commodities and
takes the decision about the commodities he should consume. Meanwhile, there are various
other factors influencing the purchases of consumer such as social, cultural, economic,
personal and psychological.
Factors Influencing Consumer Buying Behaviour
The consumer behaviour or buyer behaviour is influenced by several factors or forces. They
are: 1. Internal or Psychological factors
2. Social factors
3. Cultural factors
4. Economic factors
5. Personal factors.
International Journal of Applied Research 2016; 2(10): 76-80
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International Journal of Applied Research
There are five questions that support any understanding of
consumer behaviour.
i) Who is the market and what is the extent of their
power with regard to the organisation?
ii) What do they buy?
iii) Why do they buy?
iv) Who is involved in the buying?
v) How do they buy?
vi) When do they buy?
vii) Where do they buy?
The answers of these questions provide the understanding of
the ways in which buyers are most likely to respond to
marketing stimuli. The stimulus-response model of buyer
behaviour is shown below.
According to this model, stimuli in the form of both the
external environment and the elements of the marketing mix
enter the buyer’s ‘black box’ and interact with the buyer’s
characteristics and decision processes to produce a series of
outputs in the form of purchase decisions.
The task faced by the marketing planner involves
understanding how the black box operates, for which two
principal components of the box must be considered; firstly
the factors that the individual brings to the buying situation
and secondly the decision processes that are used.
The consumer behaviour or buyer behaviour is influenced
by several factors or forces. They are:
1. Internal or psychological factors
The buying behaviour of consumers is influenced by a
number of internal or psychological factors. The most
important ones Motivation and Perception.
a) Motivation
In the words of William J Stanton, “A motive can be defined
as a drive or an urge for which an individual seeks
satisfaction. It becomes a buying motive when the
individual seeks satisfaction through the purchase of
something”. A motive is an inner urge (or need) that moves
a person to take purchase action to satisfy two kinds of
wants viz. core wants and secondary wants.
So, motivation is the force that activates goal-oriented
behaviour. Motivation acts as a driving force that impels an
individual to take action to satisfy his needs. So it becomes
one of the internal factors influencing consumer behaviour.
A need becomes a motive when it is aroused to a sufficient
level of intensity. A motive is a need that is sufficiently
pressing to drive the person to act. There can be of types of
needs:
1. Biogenic needs
They arise from physiological states of tension such as
thirst, hunger
2. Psychogenic needs
They arise from psychological states of tension such as
needs for recognition, esteem
b) Perception
Human beings have considerably more than five senses.
Apart from the basic five (touch, taste, smell, sight, hearing)
there are senses of direction, the sense of balance, a clear
knowledge of which way is down, and so forth. Each sense
is feeding information to the brain constantly, and the
amount of information being collected would seriously
overload the system if one took it all in. The brain therefore
selects from the environment around the individual and cuts
out the extraneous noise.
Therefore the information entering the brain does not
provide a complete view of the world around you. When the
individual constructs a world-view, she then assembles the
remaining information to map what is happening in the
outside world. Any gaps (and there will, of course, be plenty
of these) will be filled in with imagination and experience.
The cognitive map is therefore not a ‘photograph’; it is a
construct of the imagination. This mapping will be affected
by the following factors:
1. Subjectivity
This is the existing world-view within the individual, and is
unique to that individual.
2. Categorisation
This is the ‘pigeonholing’ of information, and the pre-
judging of events and products. This can happen through a
process known as chunking, whereby the individual
organises information into chunks of related items. For
example, a picture seen while a particular piece of music is
playing might be chunked as one item in the memory, so
that sight of the picture evokes the music and vice versa.
3. Selectivity
This is the degree to which the brain is selecting from the
environment. It is a function of how much is going on
around the individual, and also of how selective
(concentrated) the individual is on the current task.
Selectivity is also subjective: some people are a great deal
more selective than others.
4. Expectation
These lead individuals to interpret later information in a
specific way. For example, look at this series of numbers
and letters:
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International Journal of Applied Research
In fact, the number 13 appears in both series, but in the first
series it would be interpreted as a В because that is what the
brain is being led to expect, (The В in Matura Ml Script
looks like this. B)
5. Past experience
This leads us to interpret later experience in the light of
what we already know. Psychologists call this the law of
primacy, Sometimes sights, smells or sounds from our past
will trigger off inappropriate responses: the smell of bread
baking may recall a village bakery from twenty years ago,
but in fact the smell could have been artificially generated
by an aerosol spray near the supermarket bread counter.
An example of cognitive mapping as applied to perception
of product quality might run as follows.
The consumer uses the input selector to select clues and
assign values to them. For quality, the cues are typically
price, brand name and retailer name. There are strong
positive relationships between price and quality in most
consumers’ perceptions, and brand name and quality;
although the retailer name is less significant, it still carries
some weight.
2. Social factors
Man is a social animal. Hence, our behaviour patterns, likes
and dislikes are influenced by the people around us to a
great extent. We always seek confirmation from the people
around us and seldom do things that are not socially
acceptable. The social factors influencing consumer
behaviour are a) Family, b) Reference Groups, c) Roles and
status.
a) Family
There are two types of families in the buyer’s life viz.
nuclear family and Joint family. Nuclear family is that
where the family size is small and individuals have higher
liberty to take decisions whereas in joint families, the family
size is large and group decision-making gets more
preference than individual. Family members can strongly
influence the buyer behaviour, particularly in the Indian
contest. The tastes, likes, dislikes, life styles etc. of the
members are rooted in the family buying behaviour.
The family influence on the buying behaviour of a member
may be found in two ways
i) The family influence on the individual personality,
characteristics, attitudes and evaluation criteria and
ii) The influence on the decision-making process involved
in the purchase of goods and services. In India, the head
of the family may alone or jointly with his wife decides
the purchase. So marketers should study the role and
the relative influence of the husband, wife and children
in the purchase of goods and services.
An individual normally lives through two families
Family of orientation
This is the family in which a person takes birth. The
influences of parents and individual’s upbringing have a
strong effect on the buying habits. For instance, an
individual coming form an orthodox Tamil or Gujarati
vegetarian family may not consume meat or egg even
though she may appreciate its nutritional values.
Family of procreation
This is the family formed by an individual with his or her
spouse and children. Normally, after marriage, an
individual’s purchasing habits and priorities change under
the influence of spouse. As the marriage gets older, the
people usually settle in certain roles. For instance, a father
normally takes decisions on investment whereas the mother
takes decision on health of children.
From a marketing viewpoint, the level of demand for many
products is dictated more by the number of households than
by the number of families. The relevance of families to
marketing is therefore much more about consumer
behaviour than about consumer demand levels.
b) Reference group
A group is two or more persons who share a set of norms
and whose relationship makes their behaviour
interdependent. A reference group is a group of people with
whom an individual associates. It is a group of people who
strongly influence a person’s attitudes values and behaviour
directly or indirectly. Reference groups fall into many
possible grouping, which are not necessarily to be
exhaustive (i.e. non over-lapping).
c) Roles and status
A person participates in many groups like family, clubs, and
organizations. The person’s position in each group can be
defined in tern of role and status. A role consists of the
activities that a person is expected to perform. Each role
carries a status. People choose products that communicate
their role and status in society. Marketers must be aware of
the status symbol potential of products and brands.
3. Cultural factors
Kotler observed that human behaviour is largely the result
of a learning process and as such individuals grow up
learning a set of values, perceptions, preferences and
behaviour patterns as the result of socialisation both within
the family and a series of other key institutions. From this
we develop a set of values, which determine and drive
behavioural patterns to a very large extent.
According to Schiffman and Kanuk, values include
achievement, success, efficiency, progress, material
comfort, practicality, individualism, freedom,
humanitarianism, youthfulness and practicality. This broad
set of values is then influenced by the subcultures like
nationality groups, religious groups, racial groups and
geographical areas, all of which exhibit degrees of
difference in ethnic taste, cultural preferences, taboos,
attitudes and lifestyle.
Cultural factors consist of a) Culture, b) Sub culture and c)
Social class.
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a) Culture
Culture is the most fundamental determinant of a person’s
want and behaviour. The growing child acquires a set of
values, perception preferences and behaviours through his or
her family and other key institutions. Culture influences
considerably the pattern of consumption and the pattern of
decision-making. Marketers have to explore the cultural
forces and have to frame marketing strategies for each
category of culture separately to push up the sales of their
products or services. But culture is not permanent and
changes gradually and such changes are progressively
assimilated within society.
Culture is a set of beliefs and values that are shared by most
people within a group. The groupings considered under
culture are usually relatively large, but at least in theory a
culture can be shared by a few people. Culture is passed on
from one group member to another, and in particular is
usually passed down from one generation to the next; it is
learned, and is therefore both subjective and arbitrary.
For example, food is strongly linked to culture. While fish is
regarded as a delicacy in Bengal, and the Bengalis boast of
several hundred different varieties, in Gujarat. Rajastan or
Tamil Naru, fish is regarded as mostly unacceptable food
item. These differences in tastes are explained by the culture
rather than by some random differences in taste between
individuals; the behaviours are shared by people from a
particular cultural background.
Culture can change over a period of time, although such
changes tend to be slow, since culture is deeply built into
people’s behaviour. From a marketing viewpoint, therefore,
it is probably much easier to work within a given culture
than to try to change it.
b) Sub-Culture
Each culture consists of smaller sub-cultures that provide
more specific identification and socialisation for their
members. Sub-culture refers to a set of beliefs shared by a
subgroup of the main culture, which include nationalities,
religions, racial groups and geographic regions. Many sub-
Cultures make up important market segments and marketers
have to design products and marketing programs tailored to
their needs.
Although this subgroup will share most of the beliefs of the
main culture, they share among themselves another set of
beliefs, which may be at odds with those held by the main
group. For example, Indians are normally seen as orthodox,
conservative people, but rich, up-market youths do not
hesitate to enjoy night parties with liquor and women.
c) Social class
Consumer behaviour is determined by the social class to
which they belong. The classification of socioeconomic
groups is known as Socio-Economic Classification (SEC).
Social class is relatively a permanent and ordered division in
a society whose members share similar value, interest and
behaviour. Social class is not determined by a single factor,
such as income but it is measured as a combination of
various factors, such as income, occupation, education,
authority, power, property, ownership, life styles,
consumption, pattern etc.
There are three different social classes in our society. They
are upper class, middle class and lower class. These three
social classes differ in their buying behaviour. Upper class
consumers want high-class goods to maintain their status in
the society. Middle class consumers purchase carefully and
collect information to compare different producers in the
same line and lower class consumers buy on impulse.
Therefore marketing managers are required to study
carefully the relationship between social classes and their
consumption pattern and take appropriate measures to
appeal to the people of those social classes for whom their
products are meant.
4. Economic Factors
Consumer behaviour is influenced largely by economic
factors. Economic factors that influence consumer
behaviour are
a) Personal Income,
b) Family income,
c) Income expectations,
d) Savings,
e) Liquid assets of the Consumer,
f) Consumer credit,
g) Other economic factors.
a) Personal Income
The personal income of a person is determinant of his
buying behaviour. The gross personal income of a person
consists of disposable income and discretionary income. The
disposable personal income refers to the actual income (i.e.
money balance) remaining at the disposal of a person after
deducting taxes and compulsorily deductible items from the
gross income. An increase in the disposable income leads to
an increase in the expenditure on various items. A fall in the
disposable income, on the other hand, leads to a fall in the
expenditure on various items.
The discretionary personal income refers to the balance
remaining after meeting basic necessaries of life. This
income is available for the purchase of shopping goods,
durable goods and luxuries. An increase in the discretionary
income leads to an increase in the expenditure on shopping
goods, luxuries etc. which improves the standard of living of
a person.
b) Family income
Family income refers to the aggregate income of all the
members of a family.
Family income influences the buying behaviour of the
family. The surplus family income, remaining after the
expenditure on the basic needs of the family, is made
available for buying shopping goods, durables and luxuries.
c) Income Expectations
Income expectations are one of the important determinants
of the buying behaviour of an individual. If he expects any
increase in his income, he is tempted to spend more on
shopping goods, durable goods and luxuries. On the other
hand, if he expects any fall in his future income, he will
curtail his expenditure on comforts and luxuries and restrict
his expenditure to bare necessities.
d) Savings
Savings also influence the buying behaviour of an
individual. A change in the amount of savings leads to a
change in the expenditure of an individual. If a person
decides to save more out of his present income, he will
spend less on comforts and luxuries.
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e) Liquid assets
Liquid assets refer to those assets, which can be converted
into cash quickly without any loss. Liquid assets include
cash in hand, bank balance, marketable securities etc If an
individual has more liquid assets, he goes in for buying
comforts and luxuries. On the other hand, if he has less
liquid assets, he cannot spend more on buying comforts and
luxuries.
f) Consumer credit
Consumer credit refers to the credit facility available to the
consumers desirous of purchasing durable comforts and
luxuries. It is made available by the sellers, either directly or
indirect у through banks and other financial institutions.
Hire purchase, installment purchase, direct bank loans etc
are the ways by which credit is made available to the
consumers.
Consumer credit influences consumer behaviour. If more
consumer credit is available on liberal terms, expenditure on
comforts and luxuries increases, as it induces consumers to
purchase these goods, and raise their living standard.
g) Other economic factor
Other economic factors like business cycles, inflation, etc.
also influence the consumer behaviour.
5. Personal factor
Personal factors also influence buyer behaviour. The
important personal factors, which influence buyer
behaviour, are a) Age, b) Occupation, c) Income and d) Life
Style
a) Age
Age of a person is one of the important personal factors
influencing buyer behaviour. People buy different products
at their different stages of cycle. Their taste, preference, etc
also change with change in life cycle.
b) Occupation
Occupation or profession of a person influences his buying
behaviour. The life styles and buying considerations and
decisions differ widely according to the nature of the
occupation. For instance, the buying of a doctor can be
easily differentiated from that of a lawyer, teacher, clerk
businessman, landlord, etc. So, the marketing managers
have to design different marketing strategies suit the buying
motives of different occupational groups.
c) Income
Income level of people is another factor which can exert
influence in shaping the consumption pattern. Income is an
important source of purchasing power. So, buying pattern of
people differs with different levels of income.
d) Life Style
Life style to a person’s pattern or way of living as expressed
in his activity, interests and opinions that portrays the
“whole person” interacting with the environment. Marketing
managers have to design different marketing strategies to
suit the life styles of the consumers.
Conclusion
For a successful consumer oriented market service provider
should work as psychologist to procure consumers. By
keeping in mind affecting factors things can be made
favorable and goal of consumer satisfaction can be
achieved. Study of consumer buying behaviour is gate way
to success in market.
References
1. Consumer Behavior. Building Marketing Strategy, 12th
Edition by Delbert Hawkins and David Mothersbaugh
2. Consumer Behavior by Wayne D. Hoyer Deborah J.
MacInnis, Rik Pieters.
3. Consumer Behavior. 10th Edition by Leon Schiffman
and Leslie Kanuk.
4. Consumer Behavior 11th Edition by Leon G. Schiffman
and Joseph Wisenblit.
5. Social Psychology of Consumer Behavior by Michaela
Wanke.
6. Consumer Psychology by Cathrine Jansson-Boyd.
