How do consumer characteristics influence buying behavior?

Consumer behavior refers to the selection, purchase and consumption of goods, services, ideas and experiences for the satisfaction of their needs and wants. There are different processes involved in the consumers buying behavior which are: What commodity to consume? Selects commodities that promise greater utility. Estimate available money that can be spent. Analyzes prevailing prices of commodities. Take the decision about the commodities to consume.

Meanwhile, there are various other factors influencing the purchases of consumer such as social, cultural, personal and psychological. The explanation of these factors is given below:

1. CULTURAL FACTORSVideo- Advertisement as refreshments??? Advertisement for India-

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Cultural factors comprise of set of values and ideologies of a particular community or group of individuals. It is the culture of an individual which decides the way he/she behaves. In simpler words, culture is nothing but values of an individual. What an individual learns from his parents and relatives as a child becomes his culture. Example - In India, people still value joint family system and family ties. Children in India are conditioned to stay with their parents till they get married as compared to US where children are more independent and leave their parents once they start earning a living for themselves. e.g. Females staying in West Bengal or Assam would prefer buying sarees as compared to Westerns. Similarly a male consumer would prefer a Dhoti Kurta during auspicious ceremonies in Eastern India as this is what their culture is. Girls in South India wear skirts and blouses as compared to girls in north India who are more into Salwar Kameez. Our culture says that we need to wear traditional attire on marriages and this is what we have been following since years. People in North India prefer breads over rice which is a favorite with people in South India and East India. Cultural Factors are further classified into: Culture:-The set of basic values perceptions, wants, and behaviors learned by a member of society from family and other important institutions. Culture is the most basic cause of a persons wants and behavior. Every group or society has a culture, and cultural influences on buying behavior may vary greatly from country to country. Sub Culture:-A group of people with shared value systems based on common life experiences and situations. Each culture contains smaller sub cultures a group of people with shared value system based on common life experiences and situations. Sub culture includes nationalities, religions, racial group and

geographic regions. Many sub culture make up important market segments and marketers often design products. Social Class:-Almost every society has some form of social structure; social classes are societys relatively permanent and ordered divisions whose members share similar values, interests and behavior. 2. SOCIAL FACTORS-Human beings are social animals. We need people around to talk to and discuss various issues to reach to better solutions and ideas. We all live in a society and it is really important for individuals to adhere to the laws and regulations of society.This in turn affects our buying behaviors.

Social Factors influencing consumer buying decision can be classified as under: Reference Groups-Video- Bored to read???? Watch the lecture instead ;)

Every individual has some people around who influence him/her in any way. Reference groups comprise of people that individuals compare themselves with. Every individual knows some people in the society who become their idols in due course of time.Co-workers, family members, relatives, neighbors, friends, seniors at workplace often form reference groups.Reference groups are generally of two types: i. Primary Group - consists of individuals one interacts with on a regular basis. Primary groups include Friends, Family Members, Relatives, Co Workers.ExampleTim wanted to purchase a laptop for himself. He went to the nearby store and purchased a Dell Laptop. The reason why he purchased a Dell Laptop was because all his friends were using the same model and were quite satisfied with the product. We tend to pick up products our friends recommend.ii. Secondary Groups Secondary groups share indirect relationship with the consumer. These groups are more formal and individuals do not interact with them on a regular basis Example - Religious Associations, Political Parties, Clubs etc. Role in the Society-Each individual plays a dual role in the society depending on the group he belongs to. An individual working as Chief Executive Officer with a reputed firm is also someones husband and father at home. The buying tendency of individuals depends on the role he plays in the society.

Status in the society-An individual from an upper middle class would spend on luxurious items whereas an individual from middle to lower income group would buy items required for his/her survival.

3. PERSONAL FACTORSNot all individuals would prefer to buy similar products. Consumer behavior deals with as to why and why not an individual purchases particular products and services. Personal Factors play an important role in affecting consumer buying behavior. Personal Factors influencing consumer buying decision can be classified as under:

Occupation-The occupation of an individual plays a significant role in influencing his/her buying decision. An individuals nature of job has a direct influence on the products and brands he picks for himself/herself.ExampleTim was working with an organization as Chief Executive Officer while Jack, Tims friend now a retired professor went to a nearby school as a part time faculty. Tim always looked for premium brands which would go with his designation whereas Jack preferred brands which were not very expensive. Tim was really conscious about the clothes he wore, the perfume he used, the watch he wore whereas Jack never really bothered about all this. Economic Condition-The buying tendency of an individual is directly proportional to his income/earnings per month. How much an individual brings home decides how much he spends and on which products?ExampleIndividuals with high income would buy expensive and premium products as compared to individuals from middle and lower income group who would spend mostly on necessary items. You would hardly find an individual from a low income group spending money on designer clothes and watches. He would be more interested in buying grocery items or products necessary for his survival. Lifestyle-Lifestyle, a term proposed by Austrian psychologist Alfred Adler in 1929, 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.ExampleAn individual staying in a posh locality needs to maintain his status and image. An individuals lifestyle is something to do with his style, attitude, perception, his social relations and immediate surroundings. Personality-An individuals personality also affects his buying behavior. Every individual has his/her own characteristic personality traits which reflect in his/her buying behavior.ExampleA fitness freak would always look for fitness equipments whereas a music lover would happily spend on musical instruments, CDs, concerts, musical shows etc.

4. PSYCHOLOGICAL FACTORSVideo Advertisement connecting people personally and touching psychology

Psychological Factors influencing consumer buying decision can be classified as under:

Motivation-Nancy went to a nearby restaurant and ordered pizza for herself.Why did Nancy buy pizza?Answer - She was feeling hungry and wanted to eat something.In the above example, Hunger was the motivating factor for Nancy to purchase pizza. There are several other factors which motivate individuals to purchase products and services. An individual who is thirsty would definitely not mind spending on soft drinks, packaged water, and juice and so on. Recognition and self-esteem also influence the buying decision of individuals.Why do people wear branded clothes ?Answer - Individuals prefer to spend on premium brands and unique merchandise for others to look up to them. Certain products become their status symbol and people know them by their choice of picking up products that are exclusive. An individual who wears a Tag Heuer watch would never purchase a local watch as this would be against his image. Perception-What an individual thinks about a particular product or service is his/her perception towards the same. For someone a Dell Laptop might be the best laptop while for others it could be just one of the best brands available. Individuals with the same needs might not purchase similar products due to difference in perception.ExampleCatherine and Roselyn had a hectic day at work and thus wanted to have something while returning from work. Catherine ordered a large chicken pizza with French fries and coke while Roselyn preferred a baked vegetable sandwich. Though both Catherine and Roselyn had the same motivation (hunger), but the products they purchased were entirely different as Roselyn perceived pizza to be a calorie laden food. Individuals think differently and their perceptions do not match. Learning-Learning comes only through experience. An individual comes to know about a product and service only after he/she uses the same. An individual who is satisfied with a particular product/service will show a strong inclination towards buying the same product again.

Beliefs and Attitude-Beliefs and attitude play an essential role in influencing the buying decision of consumers. Individuals create a certain image of every product or service available in the market. Every brand has an image attached to it, also called its brand image. Consumers purchase products/services based on their opinions which they form towards a particular product or service. A product might be really good but if the consumer feels it is useless, he would never buy it.