Four factors that influence Consumer Behavior
What is Consumer Behavior?
Consumer behavior is the study to see how individual like customers, groups or companies select, buy, select and use products and/or services to satisfy their needs and wants. It refers to the actions of the consumers in certain markets or the general marketplace and the underlying motives for those actions.
Consumers usually get influenced by many factors of persuasive communication. Either that communication is advertising, personal selling or word of mouth. Consumers get easily influenced and might change their wants or needs to find what’s the best for them. So what are the factors that influence consumers?
The Factors that influence Consumer Behavior
- The Purchasing power of the Consumer
The purchasing power of a consumer plays an important role in influencing the consumer behavior. The consumers generally analyze their purchasing capacity or budget, before taking a final decision on what to buy, either being a product or service. The product may be excellent, but if it fails to meet the buyers purchasing ability, it will have high impact on it its sales. If companies segment consumers based on their buying capacity, that would help in determining eligible consumers to achieve better results.
2. Group influence
Group influence is also affecting the decisions made by a consumer. The primary influential group consisting of family members, classmates, coworkers, relatives. The secondary influential group consisting of neighbors and acquaintances are seen have greater influence on the purchasing decisions of a consumer.
3. Personal preferences of the Consumer
Consumer behavior is influenced by various types and those types being likes, dislikes, priorities, morals, values or even culture. In certain industries such as fashion, food and personal care etc. the personal view and opinion of the consumer for style and fun, can become the influencing factor. Advertisements can help in influencing these factors to some extent. The personal consumer likes and dislikes can create greater influence on the end purchase made by a consumer.
4. Economic conditions for certain products or services
Consumer spending decisions are known to be greatly influenced by the economic situation going on, in the market. This holds true especially for purchases for expensive products like vehicles, houses and other household appliances. A positive economic environment is known to make consumers more confident and willing to indulge in purchases irrespective of their personal financial liabilities.