Factors Influencing Consumer Behavior

Factors Influencing Consumer Behavior

Generally, consumer behaviours are determined by the various environmental factors such as –

I. Social –cultural factors – (It includes family back-ground, social class, cultural back-ground)
II. Economical factors (Income, purchasing power, capacity of spent and save)
III. Physiological factors (Age, occupation, lifestyle, personality etc)
IV. Psychological factors (motivation, perception, beliefs and attitudes etc)

These factors are explained as under:

Actually the inputs for consumer behaviour are in the form of purchasing power, marketing mix and other intra-personal influences. These inputs are processed well in the customer‘s mind then the output becomes available in from of feeling and preferences to certain products. Purchase decision is the final result of buyers‘ behaviour. Then too, how these factors works and consumer purchases. The products will be bitterly understood with the explanation of following factors influences on consumer behaviour.


social factors means those factors which are related to an individuals social class like family, reference group, social role and status etc. Practically all buyers‘ behaviour is influenced by other people that are members of the family, friends, etc. Social influences act in two directions, first they provide information and second the standards of behavior against which alternative buying behaviors are measured. Even social status and location affect the buyer considerably.

Cultural factor means values, beliefs, faith and traditions accepted willingly by buyers or specific class of buyers. It is social heritage. It relates to social values, attitudes towards work, beliefs, moral, language and so on. These are so pervasive that they are hard to identified and analyze. These act as basis for market segmentation, product development and advertising. As cultural factors exert deepest influence on consumer behavior, marketer, needs to be aware of all these cultural influences on buyer behavior and adjust his marketing activities.


Economical factor consisting of income size of the family, propensity consumes and save consumer credit. These factors affect consumers buying behavior for e.g. a rich person may not be very conscious / alert about the price and can be purchase high priced product, where as a person belongs to low income will be very sensitive about the price and can purchase low priced product. Here consumers‘ behavior is affected due to High or Low purchasing power.

The economic factor like a family size or disposable personal income or propensity to consume and save are also compelling buyer to change their style of purchase for e.g. the small family where every member is earning will have higher disposable income and vice-versa or the people who saves for future and have less consumption and wanted to have balance between consumption and saving also spent less. All these behaviors of the people are directing the marketer to design his marketing policy with the consideration of their economic aspects.


These factors are refers to age, occupation, life style, income, personality etc. These are personal distinctiveness for e.g. the young people may have different behavior compare to elder people in terms of style, colour, quality of products etc.

Occupation also influence buyers behavior for e.g. doctors, company executives or others professional can spends much of their income on luxurious product where as clerks or workers may not pay attentions on luxurious products because of their occupations. Life style and personality affects buyer‘s behaviors. Life style means the way of a person he lives. If person consumes product like high quality cloth, perfumes, watches etc. it conveys his life styles. Here marketer by identifying life style, design marketing strategy.

Personality is the distinctive quality of a person. It is seen in terms of self confidence, intelligence, adaptability, independence etc. Personality is important variable affecting choice of brands.



Psychological factors are important to understand the buying decision of consumer. Psychological factor are nothing but a scientific study of human mind and his function. This study helps the marketer to know the consumers behavior. Generally psychological factor includes motivation, perception, learning, belief and attitudes.

Motivation is inner-drive to fulfill the needs. What motivates a consumer is relative concept. The same factors of motivation may not motivate a consumer throughout his life. That is why Abraham Maslow has identified a hierarchy of needs and explains why people are driven by particular needs at particular time.

Perception is another psychological factors that consumer forms about certain situation e.g. two people may differently view the same situation because of different perception. Perception is the process of selecting, organising and interpreting information inputs for creating meaningful picture. If perception is positive then people can take purchasing decision. Therefore marketer need to develop positive perception towards the brands.

Learning is knowledge acquiring by studies. Learning plays an important role in the buying decision process. It brings about changes in behaviour resulting from observation and experience. It helps in knowing, the brand name, its features, uses and so on. It enables the consumer to make an informed choice.

Beliefs are the firm opinions about something. It is based on knowledge or faith. It influences buying behaviour. A consumer‘s belief about the products influences his buying decisions. Marketers are interested in knowing the beliefs that people have about their products and services. Steps are taken to correct or wrong beliefs, if any.

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