Which factor does not directly influence how the consumer makes a purchase decision?
When you walk into a store, you are surrounded by different products. As you traipse down the aisle, you make thousands of tiny decisions. You purchase some items and pass on others. Sometimes you stick to your list, and other times you don’t. Show Do you ever wonder what’s behind your consumer buying decisions? As customers, we are constantly evaluating our options. There are tons of psychological, social, economic, cultural, and cognitive factors that cause us to choose (or not choose) to buy something. Knowing what some of these factors are will make you a savvy consumer. As a business, this knowledge is even more helpful! With it, you can understand why customers do what they do. We’ve said it before and we’ll say it again – understanding consumer behavior is critical to success! Does the idea of marketing a business make you feel like a little kid wearing a big lab coat? Join over 1,000 other mad scientists. Download our FREE Experimental Marketing Guide.
The Consumer Decision Making ProcessBefore you can understand the different factors that sway consumer behavior, you need to understand how consumers make decisions in the first place. The decision-making process varies from person to person but tends to involve five distinct stages. Need identificationFirst, the consumer recognizes that they have a need. In marketing, needs are not always what you may expect them to be. We will now borrow a passage from one of our older posts to expand upon that point.
The information searchNext, the consumer does some research. They read websites online, or perhaps check the newspaper. They talk to friends, family, and coworkers. Sometimes they see advertisements. In this stage, consumers get a sense of what products or services may address their need. Evaluation of alternativesAt this point, once the consumer has done some initial research, they weigh the pros and cons of different options. This can happen quickly or slowly, consciously or unconsciously. You may choose one brand of toothpaste over another for no deeper reason than because the packaging is prettier and catches your eye. On the other extreme, you may spend months choosing the right car to drive. Purchasing decisionAfter identifying their need or needs, gathering information, and considering alternatives, the consumer makes a decision to purchase. Post-purchase evaluationAfter their purchase, the consumer asks themselves whether their purchase was a good one. They may experience joy or relief, or alternatively, buyer’s remorse. What happens here determines whether or not they will make a similar purchase in the future. 35 Factors That Influence Consumer Buying DecisionsWith the consumer decision-making process all spelled out, you can imagine there are a variety of different factors which can change how consumers make decisions. Some are individual, psychological, cultural, or social. Others are the result of errors in judgment, which we will refer to later as “cognitive biases.” Some of these factors are ones that you – as a business owner and marketer – can influence directly. Others, you cannot, and you can only use this information to decide how to respond to common objections. Either way, you need to understand what is happening in consumers’ minds when they are making decisions. This will help you to more effectively sell your products or services! Individual Factors that Influence Consumer Buying DecisionsEvery person is unique and their needs are therefore different. There are a number of different factors unique to individuals which sway their decision-making process when it comes to making purchasing decisions. We’re going to talk about five big ones. 1. OccupationPeople often define themselves in terms of their job or career. Occupations affect the amount of time that people have to spend throughout the day, and that can skew their preference for convenience vs. cost savings. Executives will tend to lean toward the former with part-time workers leaning toward the latter. What’s more, occupation can affect what people need to get through their daily life. Executives will need professional clothing. College students, for the most part, won’t. 2. AgeAge impacts a lot of different purchasing decisions. Teenagers don’t buy houses and they don’t (or at least shouldn’t) buy beer. Likewise, people in their mid-40s are a lot less likely to spend money going out to clubs or buying flashy clothing, mid-life crises excepted. 3. Economic statusPeople with a lot of money can spend a lot of money. People without a lot of money cannot spend a lot of money. This is incredibly obvious but still has an outsized impact on what people are willing to purchase. 4. LifestyleQuoting directly from Management Study Guide: “[l]ifestyle…refers to the way an individual stays in the society. It is really important for some people to wear branded clothes whereas some individuals are really not brand conscious. An individual staying in a posh locality needs to maintain his status and image. An individual’s lifestyle is something to do with his style, attitude, perception, his social relations and immediate surroundings.” 5. PersonalityEverybody has different likes and dislikes. Often, they are so deeply ingrained into us, that we can’t explain why we like or dislike something! Don’t underestimate the importance of personal preferences in purchasing decisions. Psychological Factors that Influence Consumer Buying DecisionsConsumer buying decisions are also influenced by hidden factors that consumers themselves may not even be aware of. We can think of these as psychological factors. 6. MotivationThe consumer decision-making process is ultimately based on the drive to meet a certain need. This is the essence of the consumer’s motivation. Are they seeking safety or comfort? Are they seeking stimulation or recognition? 7. PerceptionBranding goes a long way toward influencing what people think of products, services, and the companies that provide them. Luxury is, for better or worse, a made-up concept. It’s largely determined by how a company chooses to present itself. In the consumer’s mind, Apple products may be seen as more luxurious than Android products. A Lexus ES300, despite being functionally identical to a Toyota Avalon, can command a higher price because of perception. 8. LearningEvery consumer has a different background, meaning they have different knowledge and skills. Each consumer will take their own individual life learning and apply it to the consumer buying process. 9. Attitudes and beliefsSimilarly, every consumer has different attitudes and beliefs that influence what they think about particular products. Usually, overcoming attitudes and beliefs is very difficult, but it can be done. For example, Old Spice had a reputation for being an old man’s deodorant in the early 2010s, until they launched a very successful viral marketing campaign that changed young people’s beliefs about the brand. 10. Prior experienceIf your brand is big enough, there is a chance that individuals you meet will already have had an experience with your brand. Whether that experience was a good one or a bad one will swing their decision-making process. Cultural Factors that Influence Consumer Buying DecisionsIndividual and psychological factors imply that the consumer decision-making process is highly individualized. This is not the case, however. People are intrinsically social, and their behaviors are informed heavily by the culture in which they were raised. 11. CultureDepending on where you grew up, you will pick up certain beliefs, customs, and rituals. You do this because people around you are doing the same and you learn from them. These vary from region to region. Just look at the difference in McDonald’s menus in different countries. 12. SubcultureCultures can be broken down into ever smaller pieces. People in Los Angeles have a different life than people in rural California. Taking it one step further, people in Beverly Hills have a different lifestyle than people in Anaheim. As you look deeper at individual cultures, you find an enormous variation in people who you would think have a lot in common. Want to see a good example of subcultures that is easy to get your head around? Watch the Breakfast Club. 13. Social classWhether you are working class, middle class, or wealthy will determine the way you live your life. Consumers who fall into these social class categories will exhibit different behaviors. The working class will try to satisfy basic needs and save a lot of money. The wealthy, meanwhile, don’t care as much about money but rather often make purchases to save them time. 14. ReligionPeople’s religious beliefs also influence their purchasing decisions. Once more, Management Study Guide provides a great example.
Does the idea of marketing a business make you feel like a little kid wearing a big lab coat? Join over 1,000 other mad scientists. Download our FREE Experimental Marketing Guide.
Social Factors that Influence Consumer Buying DecisionsConsumer buying decisions are often affected by deeply personal factors (individual and psychological). They are also affected by the basic social context in which we live: cultural factors. Even still, there are often more explicit social factors that affect how consumers make decisions too. 15. FamilyChildren tend to pick up buying behaviors from their parents and siblings. This comes from sharing personality traits by genes and also from learned behavior. If you’ve ever seen a newly wealthy person saving mustard packets from a fast-food restaurant, it’s likely that they picked up the habit from their working-class family. 16. Reference groupsA reference group is a group of people that you would like to be associated with. Often people buy items in order to become part of a group. For example, a newly graduated law student may choose to buy a fancy suit so that they can fit in with high-powered lawyers in their firm. 17. Decision-making rolesDecision-making styles are often influenced by the role a person has in a purchasing process. We’ll quote from a previous post on this one.
Cognitive BiasesFor better or worse, people are not rational thinkers. Sometimes this can be good. Making decisions on sloppy heuristics allows us to do what we need to do without being paralyzed by continual analysis of all possible outcomes. Of course, relying on heuristics to make decisions can have some comically bad effects sometimes. A cognitive bias is a systematic error in thinking that affects the decisions and judgments that people make. There are a lot of cognitive biases. Wikipedia has a pretty thorough list here. Below, we’ll paraphrase and simplify their list. Each of these biases provides yet another way to influence your consumer behavior. 18. Selective factfindingWe like to find facts that support beliefs we already had to begin with. As you can imagine, that would lead to some pretty flawed reasoning. 19. Selective perceptionOn an even deeper level, we can see and hear things that already support our beliefs. That’s because deep down, we’re not even paying attention to evidence that doesn’t line up with our preexisting beliefs. 20. Premature termination of the search for evidenceThis is exactly what it sounds like: you stop looking for evidence long before you ought to, meaning you are never exposed to critical information. 21. Conservative biasThis refers to a tendency to stick with thought patterns that have worked in the past but don’t apply to new situations. 22. Limited experienceSimilar to the conservative bias, this implies either an unwillingness or inability to use information that falls outside of prior experiences when making decisions. 23. Wishful thinkingIn selective perception, you see what you expect to see. With wishful thinking, you see what you want to see. Both can steer you wrong. 24. Recency biasThis happens when you consider recently discovered information more strongly than old information. The best way to counter this is by thinking in terms of Bayesian probability. 25. Repetition biasPeople often tend to believe what they hear a lot. This is part of why propaganda works in an authoritarian regime. It’s also why people believe they need to drink eight glasses of water per day. 26. Anchoring biasAnchoring happens when the first source of information you see on a subject overshadows all subsequent information. An example of this in the wild: a shirt is marked as 50% off a ridiculously inflated price. 27. GroupthinkThis happens when your individual decision-making preferences are overridden by the desire to fit in with others who hold different beliefs. 28. Source credibilityIf you don’t like a person or organization, you may ignore what they say, even if what they say is sound advice. 29. Incremental decision-making and escalating commitmentThink of this as being a “frog slowly boiled.” This happens when a company convinces you to try a free or cheap version of their product and then upsells you later. 30. InconsistencySimply put, this means using different decision-making criteria in similar situations. 31. Attribution asymmetryDirect quote from Wikipedia: “[w]e tend to attribute our success to our abilities and talents, but we attribute our failures to bad luck and external factors. We attribute other’s success to good luck and their failures to their mistakes.” 32. Role fulfillmentThis is what happens when you make a decision based on what you think other people expect you to do. 33. Illusion of controlThis entails making decisions based on a failure to account for uncertainty. Put bluntly, we know less than we think we do. 34. OvergeneralizationExactly what it sounds like: imagining things as being simpler than they are, and allowing that to destroy an otherwise good decision-making process. 35. Ascription of causalityOften, people like to believe that A causes B when A just so happens to occur at the same time as B. In other words, “correlation does not imply causation.” Final ThoughtsThinking about the many factors that can influence consumer buying decisions will make you a much savvier marketer. Even simple decisions are made with an enormous amount of unspoken context. Taking time to put that context into words will allow you to market more effectively and meet people’s needs! Does the idea of marketing a business make you feel like a little kid wearing a big lab coat? Join over 1,000 other mad scientists. Download our FREE Experimental Marketing Guide.
What are the 4 factors that influence consumer purchases?In general, there are four factors that influence consumer behaviour. These factors impact whether or not your target customer buys your product. They are cultural, social, personal and psychological.
What are the 5 main factors that influence purchasing decisions?Typically, there are five core factors that influence the decision to buy which are:. Psychological Factors.. Social Factors.. Cultural Factors.. Economic Factors.. Personal Factors.. What factors influence the decision to purchase a product?Here are 5 major factors that influence consumer behavior:. Psychological Factors. Human psychology is a major determinant of consumer behavior. ... . Social Factors. Humans are social beings and they live around many people who influence their buying behavior. ... . Cultural factors. ... . Personal Factors. ... . Economic Factors.. What are at least 3 factors affecting consumers purchasing decision?Keeping that in mind, the following are three of the biggest factors that influence consumer purchasing decisions in today's digital age:. Product/Service Reviews.. Peer Recommendations.. Social Media.. |