Influence of External Factors on Consumer Purchasing Decision - Coursework Example

Consumer behavior is not a theory which is just applicable to consumers but there are several factors which have an impact on consumer behavior. Some of the factors which have an impact on consumer behavior are wants, needs, internal and external factor which thereby influences the different decision making dimensions. The culmination of different internal and external factors have an impact on the decision which is taken by consumers and thereby the behavior of customers gets shaped up due to different factors which has a large impact on the consumer decision. There are a numerous of factors which has an influence on the behavior of customers and the external factors influences the decisions making to a large extent. An external factor which has an influence on consumer decision making is derived from different outside sources (Rath, 2008). The external factors have a large influence on customers as these factors are beyond the control of humans and have a large impact on the overall decision making process. The external factors consist of different dimensions and variables like cultural, demographic, social, family status, and marketing activities which has an influence on the overall process of carrying out the different activities. The fact that the above mentioned factors are not guided by the person himself but is due to some externalities or person other than the consumer it thereby has an impact on the overall decisions which is taken and is considered external to the person who takes the decisions. Cultural factors have an important role in the purchase decisions made by the consumer as the presence of different factors have a different influence on the customer and there impacts the decisions which is taken by the customer. Culture is the multidimensional model that includes knowledge, beliefs, art, morality, values systems, laws, customs, habits, traditions, or other human capabilities acquired by members of a society (Best, Coney & Hawkins, 2004). The fact that culture is decided by different factors and each factor has a large influence on the overall decisions which are taken thereby has an impact on the consumer. Culture helps to provide the required guidelines or boundaries within which the behavior of the person will be considered as accepted or not and is a commonplace where all the activities are to be carried out in the most effective manner. Since, cultural dimensions has a large influence and determines the process in which the person will act so that the behavior of the person is considered fit acts as a measure through which consumer behavior gets influenced. Culture thereby acts as a lens through which the consumer is able to look at the different options and products which will be deemed fit and acceptable to the society (Solomon & Rabolt, 2004). This acts as a pivotal point which helps to determine the manner in which the purchasing style of the consumer will be directed and helps to understand the entire mechanism through which the consumer will look at purchasing the different products and services. Cultural factors can further be subdivided into three categories which are as other-oriented, environment-oriented, and self-oriented values (Best, Coney & Hawkins, 2004). The different values have a different influence on the customer due to which the purchasing habit of the consumer gets modified as the customer based on his values determine the product which will be purchased. This values will thereby have an impact on the purchase decision regarding shoes as the customer will look at the product differently based on the value that the cultural factors provides him and will thereby purchase the product based on different dimensions and will have an impact on the overall decisions which are taken by the customers. Other-oriented values are the views which are developed regarding a group or subgroup or individuals and help to impact the overall style of taking decisions. Some of the examples in the same direction are collective view, age role influence, extension and limitation witnessed within the family, gender issues, diversity, and so on (Best, Coney & Hawkins, 2004). These factors have an influence on the purchase decision for shoes as collective view might result in the actual change in the mind set of the consumer and might make the customer some other product that the customer might not have decided before. This will thereby have an impact on the overall decision making and influence the purchase decision of the customer regarding shoes. The cultural values which have a relation with the society’s physical, economical and technological environment are called as environment related values. Some of the examples of the same are tradition, cleanliness, standards, nature, performance status, and so on (Best, Coney & Hawkins, 2004). These factors have an influence on purchase decision in case of shoes for examples some cultural tradition might me such that they not allow the use of rubber products which might thereby impact the purchase decisions as the consumer will look at purchasing shoes which are made from leather. This has an impact on the overall decisions which the consumers takes regarding the product and thereby has an impact on the overall long term sustainability of the business as understanding those and providing the customers with products or services based on their needs and wants will help to ensure maximum satisfaction. The self oriented values are those which the society finds fit and can be demonstrated at different situations like active/passive tendencies, sexual values, religious views, materialistic expectancies, and attitudes towards work/leisure (Best, Coney & Hawkins, 2004). The above mentioned factors have an influence on the overall decisions which are taken by the consumer while looking to purchase the product like a shoe because the self oriented values influences consumer and determines the manner in which the purchase decision will be evaluated. For example some religious views might not allow the use of rubber products which might thereby impact the purchase decisions as the consumer will look at purchasing shoes which are made from leather. This will thereby impact the purchasing decisions which the organization has to understand so that the consumers can be provided with different products and services based on their needs and cultural requirements will help to attract and retain customers for a longer period of time. Apart from the above mentioned factors the consumer purchase decision gets influenced by other cultural factors like non-verbal communications, language, global cultures, symbols, and etiquette. Organizations and marketers looking to satisfy the customers and expecting to attract and retaining the old customers have to focus on satisfying the needs and wants of the customers. This can be achieved to a large extent by understanding the customers’ culture’s values, norms, myths, and rituals (Sheth, Mittal & Newman, 1999). This will act as a framework through which the customer requirements will be better understood and will help to provide the required direction through which the organization will be able to improve efficiency and bring the required transformation which will help the business to understand the consumers better and satisfy them. Organization especially the shoe provider has to realize and understand the fact that consumers come from different geographical location having different culture so the process of influencing consumers will be different as the purchase decisions will be influenced in different ways. Different culture has different norms and requirements with regard to clothing, behavior, religious and marital statuses, and the manner the person within the organization resides (Solomon & Rabolt, 2004). This will have an impact on the purchase decisions being made by the consumer and will require that the organization understand the needs and requirements of the customers so that they become adaptable and flexible so that the different needs of the customer can be understood. This will help to develop the required framework through which the organization is able to ensure that customer satisfaction gets enhanced and will act positively in contributing towards the long term goal and customer purchasing decision. The shoe provider has to understand the cultural dimensions as they are beyond the control of an individual and has the same effect on all people belonging to the same culture. Being able to understand the different cultural dimensions will help to bring about the required transformation and will provide the required directives through which the shoe provider will be able to attract the different section of the society towards the products and will have a positive influence in influencing the purchasing decisions of the consumer. The next major external factor which has an influence on the purchasing decision of the consumer is the demographics. Demographics is a process which helps to classify the population based on different factors like size, individual attributes, distribution, and structure (Best, Coney & Hawkins, 2004). Demographics have a key role in influencing the consumer decision as the behavior of an individual is directly related to different factors like age, education, income, and occupation. The different demographical factors have an influence on the consumer decisions as consumer based on the different factors determine the product or services they are going to purchase. For example, if the population has a higher percentage of small children within the age of 4-10 years then the demand for foot ware for children within the same age group will increase considerably compared to the demand for other shoes for people belonging to different age group. The demographic variables have a direct influence on the consumption pattern of an individual because the different demographical factors along with the culmination of different external and internal factors influences the customers and brings about the change in the consumer purchasing decision. The present scenario highlights that the demographics is witnessing an increase in baby boomer population which has provided new needs and wants before the society, single families and blended families presenting the different requirements, ethnic diversity, increase in the role of women in the society through more business opportunity, and social class disruption (Sheth, Mittal & Newman, 1999). This has increased the need that the shoe provider looks at understanding the demographical trend and based on it brings the required transformation which will help to increase the overall service quality and will help to provide the customers with shoes which is most desired. This will have an impact on the overall customer perception and will thereby influence the manner in which the purchase decisions are being made by the consumers. It has also been seen that when people speak about demographics it is mainly related to population size and distribution. Understanding the population trends and pattern helps the marketers to understand the manner in which they need to place their products and services. This helps to provide the required direction and framework through which the organization is able to increase the overall effectiveness and ensure that the business is able to understand the needs and requirements of the market better. This is followed by occupation which has an important role in determining the manner in which the different expectations of the people are achieved (Best, Coney & Hawkins, 2004). Understanding the occupation of the consumer helps the marketers to understand the needs and wants of the customers as it can be matched with affordability and will thereby determine the manner in which the customer purchasing power will influence his purchasing decisions. The purchasing power will further act as a point for the show provider as best on the customer profile with regard to the occupation and the purchasing power the shoe provider will be able to develop products based on the market requirements and will be able to influence the customers towards it (Rath, Bay, Petrizzi & Gill, 2008). This will have a positive impact and will help to develop strategies which are aimed at satisfying the different needs and requirements of the customers. The other important factor which should be considered while considering the demographics is the education level that the population has. The level of education will influence the customer purchasing decision as the customer will be able to understand the different products, quality compare the products with other products in the market and will be able develop the required fundamentals through which the business will be able to ensure better customer satisfaction. This will also help the marketer to relate the value of the product to the customer needs and requirements and will thereby act as a major stone through which the shoe provider will be able to influence the work force (Cohen, 2006). This will thereby help to create a positive impact and will bring the required transformation through which the organization will be able to influence the customer and ensure that the purchasing decision is based on different factors through which customer satisfaction will be maximized. The next demographics and most important and has an influence on the consumer purchasing decision and comprises of income and age. The purchasing power of the person has an impact on the product that the customer will purchase and determines the purchasing habit of the consumer as income and wealth that the person has influences the overall decisions and makes the person determines the manner in consumer decisions gets affected. It is to be examined at this point that income level ensures that the consumer can purchase the products but doesn’t not wholly determine or guarantee that the product or services will be purchased by the consumer. Further, income has an impact on the purchasing decision of the business because of the fact that the average citizen spends a certain percentage of the income on non essential items which includes shoes as well. Thus, the amount of money or the percentage of money which the person has kept aside for different non essential purpose will decide the manner in which the purchasing decision of the consumer will be influenced (Rath, Bay, Petrizzi & Gill, 2008). This also has an impact on the marketers which determines the manner in which the different products and services will be priced so that they are able to determine the manner in which the different service standards can be attained. This will thereby help to ensure that the consumer preference towards the product and services can be understood and will act as a guiding force through which the overall behavior of the consumer will be decided. Further, income level has a direct or indirect relation to other demographic variables, such as occupation, education, or social status and will thereby have an impact on the overall potential for the customers. The shoe provider will thereby need to aim at developing a process through which the different needs and wants of the customers can be better understood so that they are able to develop a framework through which the shoe provider will be able to deliver the required service standard. The overall strategy will thereby help to find out the required dimensions and developments through which better customer retention becomes possible. It is also noted that age is considered as one of the most important determinant to understand the manner in which different factors influences customers and it is important to consider requirements of different people with regard to age group and culture. This will help to develop the required framework and will be aimed at developing the required process which aims at maximizing customer satisfaction. The age in this regard is considered as the date of birth and has no resemblance to the manner the person feels as it doesn’t have an influence on the how the person feels about his age. Customers belonging to different age bracket have different values which thereby makes the consumer react in a different way which determines the purchasing decision. Generational studies exist to help guide marketers and retailers with dealing with their customers from various generations: pre-depression, depression, baby boomers, and Generations X and Y (Rath, Bay, Petrizzi & Gill, 2008). The importance of age increases in case of shoe provider as the shoe provider provides shoes of different sizes based on the different age profile. Further the design of the shoes is also influenced by the age group that the organization is looking to attract. For example shoes for the children will be bright and colorful whereas the same for people in the higher age group will be simpler. The production design and shoe industry thereby gets affected due to the age profile of the consumers which the shoe manufacturer needs to understand as the different factors will have a role in determining the manner in which the purchase decisions will be affected by the age of the consumer. Another important factor which has to be considered while evaluating the external factors which influence consumer decision making process is the social class. Providing the required value on social class and linking the same relationship will help to identify useful behavior which will act as a guiding stone and provide important information regarding variables influencing purchasing decision of the consumer. The social class system helps to identify the individuals based on different factors like their income, occupation, educational levels, attitudes, and lifestyles (Best, Coney & Hawkins, 2004). It has even been identified that social status acts one of the major determinant to understand the manner in which consumer behavior in the society gets influenced and helps to find out different factors which will help to increase the overall relevance of understanding the different factors influencing customers purchasing decision The importance of social status increases in case of shoe provider as the shoe provider has to look at different dimensions and understand the manner in which the different variables influence customers to purchase shoe. This will help to determine the quality and the manner in which the product has to be developed so that the customer needs and requirements are satisfied. This will thereby act as a benchmark for the shoe provider and will provide the required opportunity through which changes can be made so that customer satisfaction level is enhanced. The other external factor which influences the consumer purchasing decisions is the influence of friends and relatives. These are tangible factors and can be easily seen. It has been examined that the purchasing decision of a person gets influenced if he has a family along with him. This will have an impact on the shoe provider as the behavior of the consumer purchasing shoes will change when the consumer is with a family and when he is alone which the shoe provider needs to understand and based on it provide the different products so that customer satisfaction can be enhanced. For example, a consumer purchasing a shoe will look to receive confirmation from his family or friends that the product which has been chosen is perfect and matches his style (Cohen, 2006). This will have a large impact on the overall decision on the consumer as the consumer will be guided by different external factors which will have an influence on the overall decisions that is taken. Household is another important factor which has an influence on the consumer decisions. Household in this aspect comprises of the number of heads that lives together in a family and determines the manner in which one has an influence on another. Household forms an important determinant in bringing a change in the consumer purchasing habits because the person gets influenced by the group he is in (Factor, 2000). In case of examining the behavior of the household it is important to consider the manner in which buyer, payer, and user carries out their roles and responsibilities and the influence they have on the group. The fact that the household determines the product which will be purchased acts as a point where the consumer purchasing habits gets altered The shoe provider needs to understand the different composition of the household and needs to understand buyer, payer, and user requirements so that the factors which have an influence on them can be understood. This will help to develop the required framework through which better efforts can be laid on understanding the manner in which the customer gets influenced. This will thereby help the shoe provider to ensure that they are able to satisfy the needs and requirements of the customers and will be able to act on the different aspect of external environment to ensure maximum satisfaction for the customers. Apart from the household and families the purchasing decision also gets influenced due to several other groups like friends, moms from the daycare, co-workers, or other random shoppers. This will have a large influence on the decisions which are taken within the consumer as the different factors will influence the customer to purchase a product or not. The shoe provider needs to understand the different groups which has an influence on consumer and needs to understand the manner in which the different needs and requirements of the customers can be satisfied (Manning & Reece, 2001). This will help to develop the required framework through which better efforts can be laid on understanding the manner in which the customer gets influenced. This will thereby help to bring the required transformation and ensure better development of process through which the customer needs and requirements are better understood. The last external factor which has to be considered as it has a role on customer purchasing habits is the marketing activities which the organization has done with regard to the product or services. The marketing activities helps the consumer to recall the product or services when a purchasing decision is made and the consumer decides in advance what has to be purchased by having a look at the different advertisements and promotional tools which is used by different organization (Primary, 2000). This helps to create a long lasting impression on the minds of the consumer and influences the consumer to make the purchasing decision. The shoe provider needs to act smart and needs to create an impression about the product through different marketing activities. This will help the consumer to remember the product easily and will thereby act as a major guiding force and point which will influence the customers towards a certain product or services. The customer based on the different needs and requirements will thereby be able to develop the required framework which will provide maximum opportunity to satisfy the customer and provide the required information to the customer which will have an influence on his purchasing decisions. Thus, the paper highlights the manner in which different external factors influences the consumer purchasing decisions. This are important factors which the marketing and the other members within the organization needs to understand as it will help to provide the basic framework based on which different product or services will be provided. The shoe provider needs to understand the different external factors clearly and needs to aim at developing strategies which reduces the impact and helps to create a positive image so that attraction and retention of the customer becomes easily. The external factors have a large influence on customers as these factors are beyond the control of humans and have a large impact on the overall decision making process. The shoe provider will thereby need to aim at developing a process through which the different needs and wants of the customers can be better understood so that they are able to develop a framework through which the shoe provider will be able to deliver the required service standard. The overall strategy will thereby help to find out the required dimensions and developments through which better customer retention becomes possible. Thus, the overall strategy will be aimed towards reducing the impact of the external factors so that a framework is developed which will help to provide better products according to the needs and requirements of the customer so that they are satisfied. This will help to ensure that the entire process helps to attract and retain customers and will provide as a useful impetus through which overall productivity of the organization improves. References Best, R., Coney, K., & Hawkins, D. (2004). Consumer behavior: Building marketing strategy (9th ed.). New York: McGraw-Hill/Irwin. Cohen, M. (2006). Why customers do what they do: Who they are, why they buy, and how you can anticipate their every move. New York, NY: McGraw-Hill Companies. Factor. (2000). Webster’s new world college dictionary (4th ed., p. 508). Foster City, CA: IDG Books Worldwide. Manning, G., & Reece, B. (2001). Selling today: Building quality partnerships (8th ed.). Upper Saddle River, NJ: Prentice-Hall, Inc. Primary. (2000). Webster’s new world college dictionary (4th ed., p. 1140). Foster City, CA: IDG Books Worldwide. Rath, P., Bay, S., Petrizzi, R., & Gill, P. (2008). The why of the buy: Consumer behavior and fashion marketing. New York: Fairchild Books, Inc. Sheth, J., Mittal, B., & Newman, B. (1999). Customer behavior: Consumer behavior and beyond. Mason, OH: Thomson South-Western. Solomon, M., & Rabolt, N. (2004). Consumer behavior in fashion. Upper Saddle River, NJ: Prentice Hall. Read More