Contents
Meaning of Consumer Behaviour
Consumer Behavior is study of how consumer purchase, use and dispose of goods for satisfying their needs. It simply refers to a manner in which customers reacts in the market. It specifies the way in which consumers makes purchase decisions in market. Different consumers react in a different way in market.
There are various likes and dislikes of consumers that influence their behavior in market. Understanding consumer behavior is crucial as it helps in understanding them in a better way. Consumer behavior concept consists of different stages starting from arise of a need to final purchase of product for consumption.
Nowadays businesses are using customer relationship management technology to properly understand their customers. This technology helps in acquiring required information from customers. Information acquired is stored in database and is used for serving customers properly.
Determinants of Consumer Behaviour
Personal Factors
Personal factors refer to demographic features of population which differentiates people needs from one another. These factors influence the buying pattern of consumers. Personal factors comprises of age, occupation, personality, lifestyle, Life cycle stage and self-concept. Peoples with varied ages have distinct demands like child will have more desire for toffee or chocolate whereas youth will prefer coffee.
In the same way, occupation influences the consumer behavior. People engaged in businesses need ordinary clothes whereas persons engaged in corporate sector required formal suits to wear.
Economic Factors
Economic factors studies the effect of economic conditions and income distribution pattern in an economy on consumers buying behavior. The main economic determinants include personal income, family income, consumer credit, standards of living and expectations regarding future income.
Consumers earning large incomes and having sufficient funds will demand more than those having low funds or earning small income. Similarly if peoples have higher standards of living they will demand for luxury items while one with lower living standards will have only basic needs.
Cultural and Social Factors
This refers to social and cultural trends which enables people’s in taking their buying decisions. It means traditions, beliefs and perceptions of society, family, religion and nation. Social and cultural factors comprises of culture, social class, social groups, subculture, opinion leaders, role and status.
Buying pattern of an individual is affected by attitude, desires and values of its family members. Peoples are influenced by their social caste and class where they share similar lifestyle, values, behavior and interests.
Psychological Factors
Consumers buying decisions varied according to his psychology and thinking pattern. Person’s likes and dislikes mainly depend upon his psychology. The main psychological factors are motivation, involvement, learning, attitude and perception.
Motivation is the internal desire that force people to purchase products and depends on their position in hierarchy of needs. Also, attitude and involvement of individual with particular goods makes him to buy it.