Question - What do you mean by consumer buying behaviour? Also describe various factors or forces that influences consumer buying behaviour.
In today’s era of the ever changing business environment, many firms strive hard for their sustenance and their stake in the market. With the growing advancement of technology, the growing globalization, increasing socio-economic involvement of businesses in foreign countries and the rising political interference in corporate world, it is becoming very challenging for organizations to manage and develop their business.
Customers have a very crucial role in the success of any organization since they are the people who generate revenue for the organization by buying, using and influencing others to buy their products and services. Hence, companies always want to know what makes the customer buy or not to buy their products and services. The perspective of marketing is about creating demand for the organization’s products and services and also fulfilling their customer needs – present or future. For this reason, it is imperative that marketing professionals recognize the manner in which the consumers react when they are exposed to available options varying in price, payment mode, and purchasing and delivering method.
From a point of view of a buyer, now-a-days it has become quite difficult to make a purchase decision as a result of so many available options which are so close in comparisons. It is difficult for consumers to decide on what they should spend their time, efforts, energy and money. There are several factors in the background playing a significant role to take customers to the final decision. On the other hand, it is very difficult for organizations to know on what the customer will spend their time, efforts, energy and money. Therefore, it is very crucial for their marketing team to understand the consumer buying behaviour.
The study of consumer behavior is very essential in the field of marketing as it helps firms to construct smarter marketing strategies by getting an insight about what affects the decision making of consumers. The purpose of this post is to analyze the theoretical aspects of consumer buying behavior and the factors that influence it.
Definition of Consume Buying Behaviour
According to American Marketing Association, consumer behaviour can be defined as "the dynamic interaction of affect and cognition, behaviour, and environmental events by which human beings conduct the exchange aspects of their lives."
According to Hawkins, Best, and Coney, 2001, p7, Consumer behaviour can be defined as "the study of individuals, groups or organizations and the processes they use to select, secure, use and dispose of products, services, experiences or ideas to satisfy needs and the impacts that these processes have on the consumer and society."
According to Satish K. Batra and S. H. H. Kazmi, 2004, Consumer behaviour is "the mental and emotional processes and the observable behaviour of consumers during searching purchasing and post consumption of a product and service."
Meaning of Consumer Buying Behaviour
Consumer Buying Behaviour is a complex and dynamic decision process; and physical activity of evaluating, acquiring, using, or disposing of products and services. Developing an effective marketing strategy requires in-dept knowledge of target consumers and how they behave and make their buying decision. Proper study of consumer behaviour is important as all marketing decisions are based on assumptions about consumer behaviour.
Consumer buying behaviour has two aspects - final purchase behaviour and decision making process. Purchase behaviour is visible to us, but the decision making process involves number of complex variables which are not visible to us. Purchase behaviour is the end result of long decision making process. Study of consumer behaviour attempt to understand the decision making processes of buyers.
Consumer buying behavior refers to the selection, purchase and consumption of goods and services for the satisfaction of their wants. There are different processes involved in the consumer behavior. Many factors, specificity and characteristics influence the individual in what he is and the consumer in his decision making process, shopping habits, purchasing behavior, the brands he buys or the retailers he goes. A purchase decision is the result of each and every one of these factors. Initially the consumer tries to find what commodities he would like to consume, then he selects only those commodities that promise greater utility. After selecting the commodities, the consumer makes an estimate of the available money which he can spend. Lastly, the consumer analyzes the prevailing prices of commodities and takes the decision about the commodities he should consume. Meanwhile, there are various other factors influencing the purchases of consumer such as social, cultural, economic, personal and psychological.
Factors Influencing Consumer Buying Behaviour
Following are the forces or factors that influences consumer buying behaviour :-
1) Psychological Factors
2) Social Factors
3) Cultural Factors
4) Economic Factors
5) Personal Factors
Psychological Factors that influences consumer buying behaviour :-
d) Beliefs and Attitude
Social Factors that influences consumer buying behaviour :-
c) Role and Status
Cultural Factors that influences consumer buying behaviour :-
c) Social Class
Economic Factors that influences consumer buying behaviour :-
a) Personal Income
b) Family Income
c) Income Expectations
d) Liquid Assets
e) Government Policy
Personal Factors that influences consumer buying behaviour :-
d) Life Style