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Consumer Behaviour - Meaning, Determinants and its Importance

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❶Thus, each nation has its distinct culture ; however, in a particular nation, there may be subcultures identified on the basis of ethnicity, nationality, religion and race.

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Opinion Leaders — It refers to a key individual in a group which influences the behaviour of members of the group by providing them relevant information about new trends and products in the market. Role and Status — Every person plays many roles in the society i. People also select and buy products according to their status in the society. CEO of a company would prefer to buy branded products from big stores, while a worker in the same company may prefer value for money products from nearby stores.

Customers behave differently towards the same marketing mix product due to their respective psychological makeup. The psychological factors that affect consumer behaviour are: Mere physical attributes do to talk of a store image. Other intangible factors, too, influence consumer perception of stores image such as advertising, inter-personal communication and experience.

The concept of perceived-risk recognizes that consumer experiences a sense of risk in purchase and that consumer behaviour can be studied profitably as a risk reducing behaviour. Consumer behaviour involves risk in the sense that any action of a consumer will produce results which he cannot predict with certainty. The perception of risk in a purchase situation is a function of the possible consequences and the product uncertainty involved.

The level of perceived risk is a function of the uncertainty involved and the possible consequences of purchase and can be reduced by gaining greater certainty or by minimising consequences. In most cases, it is increasing the element of certainty.

In behavioural science, learning means any change in behaviour which comes about as a result of experience. Learning is the process of acquiring knowledge. This process of learning is made up of four stages namely, Drive- cue-response and Reinforcement. Thus, hunger or thirst can be a drive.

Here, it can be purchased of food item or soft-drink. The food item or soft-drink. The food item or soft drink satisfies the hunger or the thirst. When reinforcement happens, the response may be duplicated resulting in habit formation or absence of reinforcement results in extinction of learnt habit. As most consumer behaviour is learnt behaviour, it has deep impact on consumer buying process. Prior experience and learning acts as buying guide. In-spite of such habitual behaviour, one can think of reasonable amount of brand switching, trying new products, does take place.

The strong tendency of most consumers to develop brand loyalties definitely benefits the makers of established brands. This makes the manufacturer of a new brand to face difficulty in breaking such loyalties and encouraging brand switching. He succeeds in his efforts when he shows that his product is potentially much more satisfying than his competitors.

Free sampling, in store trial and demonstrations and deal activities may be used to break the existing brand barrier to establish new patterns of purchase behaviour. To the extent the learning and brand loyalty can be gained for a product, the manufacturer activates a more stable sales profile less vulnerable to the competitive inroads.

The concept of attitude occupies a central position in the consumer behaviour studies in particular and social psychology in general because; attitude measurements help in understanding and prediction of consumer behaviour. Attitudes develop gradually as a result of experience; they emerge from interaction of a person with family, friends, and reference groups. There are three distinct components of attitude namely, cognitive, affective and co-native.

It is based on the reason and is linked with knowledge and about the object, thing or an event whether it is pleasant or unpleasant, tasty how an individual responds to the object, thing or an event. It is based on the other two components and is related with his behaviour. Each of the three attitude components vary according to both the situation and the person.

The marketer may be interested in confirming the existing attitudes, or change in the existing attitudes or create new attitudes depending on how his product is performing in the market. Attitude confirmation is, perhaps, the easiest course of action which is followed in case of established products.

Such an act involves only reminding the consumers as to why they like it and why they should continue it to purchase. Attitude changing is more difficult task than mere confirming it. It is a change from disposition to act in the direction of the original attitude to a disposition to act in the opposite direction.

A product disliked is to be liked by the consumers. It is really a difficult process. Attitude creation is to make the consumers to forget the old products or brands and to make them to go in for new product or brand entirely altogether, in fact, it is comparatively easier to create new attitudes than to change the existing one. The most powerful instrument of attitude change and creation is advertising. However, in strict sense, it refers to the essential differences between one individual and another.

Therefore, personality consists of the mannerisms, habits and actions that make a person an individual and thereby serve to make him distinct from everyone else. It is the function of innate drives, learned motives and experience. This means that an individual responds with certain amount of consistency to similar stimuli.

The personality of an individual is either expressed in terms of traits or type. The personality traits may be aggressiveness honesty anxiety independence sociability and so on.

The personality types may be introvert or extrovert or another classification as tradition direction outer direction and inner direction. Each of these traits and types has been explored as the possible clues to the behaviour of consumers. In the area of psychological determinants, the consumer behaviour was seen from the stand point view of an individual.

Many of the decisions made by consumers are taken within the environment of the family and are affected by the desires, attitudes, and values of the other family members. Family, as a primary group, is vital because, it links the individual with a wider society and it is through this that the individual learns the roles appropriate to the adult life. There is another way of classifying the family based on family life-cycle. The family influence on the individual personality characteristics, attitudes and the evaluative criteria and.

The family influence in the decision-making process involved in the purchases. Family is both a purchasing and consuming unit. Therefore, it is essential to note the distinguished family roles of the members. That is why; every marketer is keenly interested in four points in case of family purchase. In nuclear families, it is mostly the house-wife that has an upper hand in family purchases regarding her family role such as food, clothing, cosmetics, interior decoration and jewelleries.

Father has say over clothing, education, insurance etc. Family life-cycle also has its own influence on buying behaviour. If you want to launch a new service, re-brand your business or simply improve your profitability, you will need a basic understanding of some of the things that control consumer behavior. Consumers can be unpredictable at times, but usually react to certain factors and concerns.

As culture shifts its perception on certain topics, consumers follow. This can be good or bad for business, depending on what you sell. When movie stars and commercials glorified smoking as a way to look cool, cigarette sales surged. Now that more people are aware of the risks of smoking and society looks down on smokers, less people are smoking.

Spotting culture shifts is an important skill in protecting your business, especially if you sell goods like clothing or entertainment products.

Factors Influencing Consumer Behaviour

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ADVERTISEMENTS: The determinants of consumer behaviour can be grouped into three major captions namely, economic, psychological and sociological. An attempt is .

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The buying behavior of consumer is affected by a number of factors which are generally uncontrollable. These factors are also known as determinants of consumer buying behavior. These factors are also known as determinants of consumer buying behavior.

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How can we analyze consumer market and what are determinants which tell buyer behavior? Ans. The most important issue for the marketers is to identify the needs of the consumers because customer and consumer makes the marketing process complete. Determinants & Factors influencing Consumer Behaviour In a Market, different consumers have different needs. As all consumers are unique they exhibit different behaviour while making a purchase decision due to various factors influencing consumer behaviour.

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Predicting and understanding consumer behavior is one of the largest challenges a business can face. For every successful product or high-impact event, there are dozens of failures or mistakes. If you want to launch a new service, re-brand your business or simply improve your profitability, you will need a basic. Consumer behaviour and consumption behaviour are two different concepts developed and cannot be used as a substitute. Consumer behaviour deals with the process of an individual or organization in coming to the purchase decision, whereas consumption behaviour is .