factors influencing consumer choice

• TODO consumer choice notes 📅 2024-04-18

• Customer choice (buying behaviour) refers to :: the decisions and actions of customers when they search for, evaluate, select, and purchase goods and services

Psychological influences

• Psychological factors are :: influences within an individual that affect buying behaviour.
• The five Psychological factors are :: (Perception, Motives, Attitudes, Personality and self-image, Learning)

Perception

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• The process through which people select, organise, and interpret information to create meaning.
  • Individuals often act on their perception of reality rather than reality itself
• Marketing attempt to create positive perceptions about their product in the mind of customers
  • in order to gain repeat sales and achieve profit maximisation

Motives

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• are the reasons that make an individual do something.
  • (e.g. comfort, health, safety, etc.)
• Advertising attempts to influence an individual’s motives
  • giving them a reason (motivation) to buy something.

Attitudes

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• are a person’s overall feeling about an object or activity.
• Customer attitudes influence the success or failure of business’ marketing strategy.

Personality

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• Personality is : the collection of the behaviours and characteristics that make up a person
  • influences the types or brands of a product a person buys
    • e.g. style of car, clothing, etc. to reflect their personality
• coupled with self-image

Self-image

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• is how a person views themselves

  • Major determinant in the products we buy:
    • as we buy products to reinforce an outward ideal image of ourselves

• Marketers will utilise this ‘you are what you buy’ tendency to increase sales

  • through celebrity ambassadors attaching their own public image to a product

Learning

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• refers to changes in an individual’s behaviour caused by information and experiences

• marketers can successfully use positive learned experiences to build brand loyalty.

• brand loyalty is :: when a favourable attitude towards a single brand results in repeat sales over time

Sociocultural influences

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• Sociocultural influences are : forces exerted by other people and groups that affect an individual’s buying behaviour

  • Social class
    • a person’s relative rank in society, based on their education, income or occupation
  • Culture
    • all the learned values, beliefs, behaviours and traditions shared by a society
  • Family and roles
    • different roles within the family and groups within society
  • Reference or peer groups
    • are groups of people with whom a person closely identifies, adopting their attitudes, values and beliefs.
      • Buying behaviour may change to match the rest of the group.

• Reference or peer groups are :: groups of people with whom a person closely identifies, adopting their attitudes, values and beliefs.

Economic influences

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• Economic forces influence a business’ capacity to compete and a customer’s ability to spend
  • can be seen in the forms of:
    • a Boom
    • a Recession

Boom

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• Low unemployment & rising incomes
  • Businesses increase production
  • Customers are willing to spend more
    • as they feel secure about their jobs and source of income
• Marketing plans should focus on increasing market share (growth)

Recession

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• high unemployment & falling incomes
  • Businesses decrease production
  • Customers spend less
    • as they feel insecure about their jobs and source of income
• Marketing plans should focus on maintaining market share (survival)

Government influences

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• Government regulations have a more direct and immediate impact on a business’ marketing plans
• Depending on economic state, the government will implement policies to expand or contract the economy
  • influencing business activity and the marketing plan