Factors influencing buying behaviour

The main factors that influence buying behaviour are as follows:

1. Economic factors:

• Price
• Income
• Distribution of income
• Competition with substitutes
• Utility
• Consumer preferences

2. Social factors:

• Culture
• Attitude of society
• Social values
• Life style
• Personality
• Size of family
• Education
• Health standards

3. Psychology

It decides the personality, taste, attitudes of individuals or groups, lifestyle, preferences especially on occasions like marriage. The demonstration influence is also dependent upon psychology of an individual.

4. Anthropology and Geography

Climate, region, history all affect consumer behaviour. In hot countries like India, certain products, which keep us cool like squashes, sarbats, are demanded, but they certainly have no demand in cold regions. The dress is also influenced by climate along with other factors. Culture is also influenced by climate.

5. Technology

In case of equipments, whether for consumer use or industrial use, is affected by technological innovations and features. But it is not confined to durable goods only. Even in case of perishable goods the shelf life etc are determined by technological developments. Innovations and introduction of new products also depend upon technological change.

6. Situational influences

• Purchase task – who are you buying for?
• Social surroundings – who are you shopping with?
• Physical surroundings – where are you shopping?
• Temporal factors – how much time do you have to shop?
• Antecedent states –
  • What kind of mood are you in?
  • Have you just been paid?
  • Do you shop for status or self-gratification?

7. Others

This includes knowledge – technical or otherwise and information.

Government decisions, laws, distribution policies have also big effect on consumer behaviour. All these factors are studied by consumer behaviour scientists and then they decide what production and marketing strategy should be adopted to develop a particular product, change the existing product and what pricing and marketing mix should be used to attract more customers towards the product or service to optimize sales and profits.

MNC’s and few big companies have ignored except the consumer behaviour study in India. It is because till recently say upto the beginning of 90’s there was sellers market and anything could be sold. Therefore hardly any attention was paid to the consumer. For instance, Hindustan Motors continued to produce the same car for decades till Maruti appeared on the arena. But with the competition emerging many cars, refrigerators, TV’s and many items appeared on the scene. This resulted into the study of consumer behaviour.