Factors That Influence Consumers Purchasing Decision - Essay Example

Consumer Influential Factor Paper 1. Abstract Consumer behavior is an important field of study when concerning the area of marketing management. Consumer behavior signifies the functional activities of consumers, such as selecting and purchasing any product or service. Consumer behavior clarifies the motive and logic behind specific purchasing pattern being followed within a market context. Various methods have been applied correspondingly, in order to understand such factors. For example, various secondary sources have been evaluated in order to gain information about the factors that influence buying behavior of the consumers. Furthermore, a mind map has been developed in order to explain the various factors that are observed to largely influence the buying procedure of iPhone 5S. A group debate has also been conducted in order to analyze the aforesaid subject matter, i.e. the patterns of consumer behavior in the iPhone 5S market context. In relation to the findings obtained, it can be apparently observed that psychological, personal, social and situational factors impose strong influences on consumers’ purchasing decisions. Furthermore, the group debate revealed various internal along with external factors that play a distinctive role to determine the selection and purchase procedures of products and/or services as followed by consumers in the modern day markets. 2. Introduction Consumer behavior is described as the study of the activities that commonly involve searching, evaluating and purchasing of specific products or services followed by the customers in satisfying their respective requirements. This concept mainly concentrates on how people make decisions concerning the utilization of money, time and effort on consuming products and/or services. In other words, it can be affirmed that consumer buying behavior can be described as the activities with respect to acquisition, utilization and disposition of products, services, thoughts and experiences (Bello, 2008). In the field of marketing management, consumer behavior explains the reasons and logics that trigger purchasing decision and consumption pattern of the buyers. It elucidates the procedure by which, consumers make purchasing decisions. This definition clearly exhibits the idea that consumer behavior is a decision-making procedure, which begins in the mind of the customers and leads towards a set if short-listed substitute products or services that can be purchased or availed to suffice their requirements. Subsequently, understanding consumer behavior is important because it assists organizations to develop strategies and ensure successful attainment of their marketing goals (Bello, 2008). Emphasizing the same notion, this essay intends to discuss about the factors that largely influence consumers’ purchasing decision. The objective is to understand how these factors contribute in determining the selection of products and/or services for the consumers. Furthermore, a mind map has also been developed for iPhone 5S in order to demonstrate how different influential factors have influenced the decisions of the customers when purchasing this product. On the other hand, a group debate has also been conducted to shed more light on the aspect of consumer purchasing behavior relating to iPhone 5S. 3. Hierarchy of Influence Factors affecting consumer purchasing behavior can be determined at various levels. At the most bottom level lays the situational factors that comprise social situation, time, reason for purchase and mood. However, these situational factors have low influence on purchasing decisions of the consumers. The second least influential factor is personal factors that possess comparatively higher scale of manipulating power than situational factors. These personal factors comprise personality, self-concept and lifestyle among others. The third aspect comprises psychological factors, which impose moderate influences while making purchasing decisions. It is often argued that psychological factors have much wider reach in the mind of the customers. It is the level in which customers hold most of the knowledge and power to make purchasing decisions. In the hierarchy of influence, cultural factors are considered as the fifth aspect, with high influence on consumer purchasing decision. Ultimately, the top of the influential hierarchy is the social factor, which has most influence on consumer purchasing decision (see figure 1). Following is the brief description of these influencing factors. Figure 1: Hierarchy of Influence Situational Factors The least influential factors are the situational factors that comprise social situation, time, reason for purchase and mood. However, these situational factors limited reach on influencing purchasing decisions of the consumers. Social situation: Social situation is an external element, which represents the shopping or marketing environment. This factor is considered important owing to the fact that it usually generates unplanned purchase of products and/or services. Based on various situations, purchasing behavior of the customers differs vastly. For example, social surroundings such as lighting, fragrance, music and display among others influence shoppers to make unplanned purchases of products and/or services (Mihić & Kursan, 2010). Mood: Mood is also identified as a vital situational factor, which influences the purchasing decisions of the consumers quite strongly. Mood is important, as it can lead to compulsive spending. For example, when consumers are in good mood, they usually make high level of purchasing. Several aspects, such as method of product display, attractive color, music and smell among others can change the mood of customers, generating stimuli for purchase (Mihić & Kursan, 2010). Time: Time is a chronological situational factor, which influences consumers’ purchasing behavior largely. The underlying notion herein precludes that — the more time is available for consumers; the higher is the possibility of unplanned purchase of any product or service. One the other hand, availability of lesser time represents urgency to make purchasing decisions. This often generates pressure and therefore, consumers attempt to recall less product information. Thus, in certain circumstances, consumers usually purchase those products on which they have utter trust (Mihić & Kursan, 2010). Reason for purchase: Apart from time, the reason for purchase can also be identified as an important influential factor when studying the various dimensions of consumer behavior. For example, while purchasing products, such as food items, consumers usually consider certain vital reasons such as hunger and their affordability in correspondence to the quoted price of the food items (Mihić & Kursan, 2010). Personal Factors The second factor is personal factors that possess higher scale of influencing power. The key personal factors, largely found to be affecting the consumers’ buying behavior are age, personality, self-concept, gender, phase of life and lifestyle. These have been described briefly in the following. Personality: It is quite obvious that personality vary according to person, time and place. Personality, in this context, refers to the behavior of consumers in different situations. Notably, individuals possess different personalities that can be categorized as dominant, aggressive and self-confident among others that prove to be quiet useful in determining consumers’ purchasing behavior for a specific product and/or service (Yakup & Jablonsk, 2012). Age and stages of life: Age and stages of life also have possible influence on consumers’ buying behavior. It is obvious that consumers often change the pattern of purchase with the passage of time. Again, as their life cycle comprises different phases such as teenage, single, married and adult among others, each of these stages of life indicates consumer inclination towards various choices of products and/or services (Yakup & Jablonsk, 2012). Gender: It is universally observed that gender also influences the purchasing behavior of consumers largely. Men and women seek for different products as they shop in diverse ways, making their purchasing patterns quite dissimilar (Yakup & Jablonsk, 2012). Self-concept: Self-concept is the other important influencing factor of consumer behavior. Self-concept, in general, refers to the idea, which represents how an individual observes himself/herself. The self-concept determines how consumers prefer to observe themselves; such as prettier, popular or smarter and therefore influence the purchasing behavior, as people often purchase products and/or services to improve or maintain their self-concept (Yakup & Jablonsk, 2012). Lifestyle: The lifestyle of consumers is another important personal factor, which influences consumer behavior strongly. Lifestyle signifies the way an individual desires to live in a society, which is further expressed by the surrounding aspects. Lifestyle is determined by the interests, thoughts and activities of consumers and hence, determines the pattern of purchasing behavior (Yakup & Jablonsk, 2012). Psychological Factors The third aspect is psychological factors, which also influence much significantly for making purchasing decisions. A detailed explanation of these factors has been portrayed in the following. Motivation: Motivation in this context is the suppressed requirement, which direct consumers to pursue their satisfactory factors. Arguably, consumers are constantly being influenced by various natural and mental motivators. For example, natural motivation appears from various conditions such as hunger, thirst or tension. On the other hand, psychological motivation appears from the aspiration of social acknowledgement, admiration or belonging in group environment. These motivational aspects ultimately generate requirements and therefore, help to make effectual purchasing decisions for the consumers (University of Delaware, n.d.). Perception: Perceptions perceived by the consumers is also identifiable as an important determinant of the purchasing decisions taken by consumers. It is regarded as the procedure through which, consumers acquire, systematize and understand information in order to form a meaningful picture regarding a specific product and/or service. Consumers usually develop their perceptions by discrete procedures of selective consideration, representation and retention. Such procedure further assists considerably in making purchasing decisions for consumers efficiently (University of Delaware, n.d.). Learning: It is also believed that purchasing behavior is influenced by the learning behavior of the customers too. Consumers learn various purchasing behaviors specifically through determinations, indications, responses and reinforcements. Determination is a strong inner stimuli, which creates indications and such indications assist consumers to decide when and how to react to a specific stimuli. On the other hand, responses are the activities of consumers on certain determinations and indications from environmental stimuli (University of Delaware, n.d.). Attitude: Attitude is another important psychological factor, which strongly influences consumers’ purchasing behavior. It is in this context that by conducting regular activities, people built attitudes. Consumer attitudes are descriptive thoughts regarding any aspect or object. Attitudes put individuals into particular frames of mind and assist them to move forward or away from certain products and/or services (University of Delaware, n.d.). Cultural Factors The cultural factors that influence consumers’ purchasing behavior are culture, sub-culture and social class, reference groups, opinion of leaders and family. Culture: Culture is important in determining the requirements and behaviors of consumers. It signifies principles, philosophies and approaches that are acknowledged by certain homogenous group of people and transmitted to the next generation. Culture determines which products or services are acceptable within certain group of people, therefore, determining the purchasing decisions of the consumers at large (Nagarkoti, 2009). Sub-culture: Society comprises several sub-cultures. These sub-cultures are group of individuals, who share similar values based on mutual experiences or related lifestyle. Sub-cultures can be nationalities, religions, ethnic groups or age groups that have certain similar requirements. Thus, the suitability of a product and/or service is determined by the aforesaid sub-cultural elements (Nagarkoti, 2009). Social class: Social class also influences the purchasing behavior of the consumers. Persons within a specific social class possess almost similar morals, lifestyles and interests. Social class also tends to impose strong influences on the desires and the consumption patterns of the consumers at large. For instance, consumers who belong to high social class usually consume more healthy food products in comparison with the consumers of low social class. On the other hand, consumers of low social class are highly concerned about price while selecting a product and/or service than consumers belonging to high social class (Nagarkoti, 2009). Social factors Social factors are the most influential factors which determine consumer purchasing decision it comprise family, reference group and opinion of leaders. Family: Family is the most influencing societal factor in determining the consumers’ purchasing decision. Family establishes a situation of socialization, in which, individuals progress outlines their personality and obtain values. Furthermore, family also develops attitudes and opinions regarding perceptions about certain brands and desires, resulting in influencing the purchasing decisions of the consumers by an extensive degree (Nagarkoti, 2009). Reference group: Reference group signifies individuals with similar values, attitudes or behaviors. Such group can comprise families, co-workers, friends or organizations and therefore, impose a certain degree of influence on the attitude or behavior of consumers towards buying certain products and/or services. However, the influence level might vary based on characteristics of reference group (Nagarkoti, 2009). Opinion of leader: Opinion of leaders also acts as an important influence for consumers, when making purchasing decisions. They act as a spokesperson in order to market any particular product and/or service to the consumers (Nagarkoti, 2009). 4. Discussion of the Mind Maps As stated above, consumers’ purchasing behavior is related with several factors. A few of these factors can impose short-run influences, while others might impose long-run impacts. These aspects have significant position in purchasing and also help to change brands. In order to understand the most influential factors of purchasing, a mind map has been developed on purchasing of iPhone 5S (refer to appendix 2). There are several influential factors to be considered when determining the buying decisions of any smartphone brand, including the iPhone 5S. These factors might include family along with friends, culture, individual psychology and situation. These factors have the capability to change consumers’ purchasing behavior. Amongst other factors, the imperative aspect, which has been found in purchasing smartphone, is the social factors comprising of particularly family and friends. Family and friends constitute the biggest parts in everyone’s life and therefore, tend to impose considerable influences in making effective purchase decisions. In my social context, my brothers and relatives use iPhone. Additionally, my parents seek fashionable and high-tech products, which inspired me to purchase a smartphone. The reference group comprising my friends also influenced my purchasing decision. Since, most of the friends use iPhone, it helped me to select this brand in place of other brands, such as of Samsung. Culture is the second biggest influential factor in the context of purchasing decisions of the customers. Culture determines personal habits and customs. It fundamentally helps in making effective decisions on products to purchase. For instance, in my culture, gold is regarded as the symbol of wealth and affluence. Thus, while making purchasing decisions of iPhone, I preferred purchasing the gold color one. On the other hand, the sub-cultures also influenced my purchasing decision towards iPhone 5S. In my sub-culture, people prefer to develop self-image through demonstrating new cell phone model. Such standpoints helped me to purchase iPhone and to show off about how great the device is. The third important factor, which affects the purchasing decision of the customers, is the personal factor. Contextually, my personal factors are subjected to personalities, age and income level. Notably, most of the young consumers prefer purchasing popular and new products; thus with this concern, it is also obvious for me to experience new cell phone devices, such as iPhone 5S, rather than purchasing other brands. On the other hand, income is also a vital aspect for making effective purchasing decision. It can be apparently noted that most of the middle-income group people avoid purchasing expensive smartphone. Thus, income also determines the choice of any specific product. Another personal factor influencing the purchasing behavior of the customers is personality. Due to low level of self-confidence, it took longer time for me to select any product. Specially mentioning, several external influencing factors have shaped my product choices. Psychological factor is the fourth important influential factor, which created a strong influence on the purchasing decisions made by the customers. The various psychological factors comprise motivation, perception and learning. My key motivation for purchasing iPhone is admiration and within the reach of budget. Besides, it is quite difficult to change perception towards the use of Apple smartphone product due to its appearance, features and specialized functions. I have also learnt various specializations of different mobile phone devices and these learning helped me to make viable product choices according to my requirements. The fifth influential factor of purchasing decision is situational factors like location, emotional condition and time. Retail outlets with attractive location always appeal most customers. Justifiably, the stores of Apple are positioned in upmarket locations, having beautiful atmosphere such as appealing lighting and display. Thus, these places provide strong impression and develop a feeling of fashionableness. Besides, the ambiance of Apple stores, such as internal design and decoration greatly enhances the mood to stay long time and purchase or explore more products. Besides, Apple also provides consumers to test the products, resulting in influencing their respective purchase decisions at large. 5. Discussion of Debates The group debate assisted in understanding the influential factors in the hierarchy of influence. Accordingly, several internal along with external factors of purchasing have been elaborately discussed in the debate. Amongst them, the imperative internal factors include personal requirements, experiences, emotions and attitudes. Personal requirements are a vital internal factor, which motivates consumers towards buying certain products and/or services. On the other hand, experience is the other key internal influential factor of consumer purchasing behavior. Whenever customers encounter new situation, they incorporate certain perceptions that ultimately affects their respective purchase decision at large. On the other hand, emotions also determine the purchase decision of the consumers. Certain emotions, such as feeling of pleasure, arousal or supremacy, are often observed to influence customers to purchase their desired product and availing any sort of predetermined services. Ultimately, the attitudes regarding any product and/or service also influence the purchasing decision of customers. Every individual observes the world in a different manner wherein such observations are manifested in the attitudinal aspects. The attitudes might not be valid, but to a certain extent, these attitudes might often result in the selection or rejection of any specific product and/or service. There are certain external factors that also may influence consumers’ purchasing decision at large. Amongst these, two imperative external factors are culture and society. The discussion validates that cultural impact on purchase is hierarchical in nature. According to the level of influence, there are five aspects, namely university culture, generational culture, regional culture, ethnic culture and national culture. In this similar context, influence of social factors also tends to be hierarchical in nature. For instance, media has high influence on purchasing behavior in comparison with the attributes like school and family. The following figure demonstrates the key internal along with external factors of consumers’ purchasing behavior. Figure 2: Internal and External Factors of Consumers’ Purchasing Behavior 6. Discussion of Surprises While compiling the paper, the key problems faced by the group were searching and segregating proper sources. Multiple keywords have been used in order to find proper information regarding the influential factors of purchasing. Furthermore, it was also quite surprising and challenging too for the group to develop the mind map. Since there are multiple factors related to purchasing behavior, it becomes quite challenging to incorporate each factor in the mind map. On the other hand, the group discussion also revealed various other factors (such as nature and role), which also imposes a strong influence on the purchase behavior of consumers in a group. It was quite a surprise because these factors were not pre-planned for exploration; however had emerged during the course of developing the mind map. Integrating and arranging such information from variety of sources proved to be a challenging task while compiling the paper. 7. Ethical Aspect of Hierarchy of Influence There are several ethical aspects that are required to be taken into concern in the hierarchy of influential factors. For instance, increased level of consideration towards environment also influences the choices of products for certain consumers. Due to several initiatives taken to protect environment, it is inevitable that products, which significantly damage the natural environment can be rejected by the customers, irrespective of various influential factors. Consumerism is the other important ethical aspect in the hierarchy of influence. Consumers belonging to this present day context possess increased level of knowledge and information regarding varied product categories. Thus, it can be affirmed that misrepresentation of products through advertisement or other promotional campaign might influence consumers’ purchasing behavior at large (Carrigan & Attalla, 2001). On the other hand, the reputation of brand with respect to ethical performance such as work environment, employee treatment and corporate social responsibilities among others also have had strong impacts on the hierarchy of influence particularly on psychological factors of consumers. 8. Influential Factors that Require Exploration The factor of advertisement also necessitates exploration in order to understand the influential factor of purchasing behavior. The commercials used for promotional objective by different organizations generate stimuli for purchase. It provides relevant information to the potential consumers in order to make them purchase. However, this factor has not been acknowledged in the text as the influence of advertisement is entrenched in psychological factors. Contextually, it can be mentioned that advertisement indirectly influences consumers’ purchasing behavior. It generates or shapes the perceptions of the consumers regarding a product or service and hence, determines their purchasing decisions. Furthermore, other influential factors, which also necessitate exploration, are income and occupation. Irrespective of various social, cultural or other influences, income and occupation of consumers also determine the purchasing pattern of consumers (Babin & Harris, 2010). 9. Conclusion Every consumer has his/her individual approach towards making purchase decisions. They often get influenced by several factors that can be situational, psychological, personal social or cultural. These factors seem to appear different from one particular individual to other and help in motivating consumers when selecting a particular product and/or service. Furthermore, these factors also cause customers to develop brand preferences. Although some of these factors can be controlled by organizations, but understanding their influences at various levels (such as most influential to least influential) is vital in order to select marketing strategies. Furthermore, understanding these influential factors at various levels is also helpful for appealing the products or services to the target consumers. In conclusion, it can be stated that for gaining success in the competitive market, it is essential for marketers to consider all these factors while designing products and also while developing marketing campaign. Considering these influential aspects of consumers might have the opportunity to enhance the product and/or service quality and ensure complete satisfaction to the customers, which would ultimately result in increased sales. References Babin, B. J., & Harris, E. (2010). CB2. United States: Cengage Learning. Bello, L. (2008). Consumer behavior. Retrieved from http://www.academia.edu/1430234/CONSUMER_BEHAVIOUR Carrigan, M., & Attalla, A. (2001). The myth of the ethical consumer - do ethics matter in purchase behavior? Journal of Consumer Marketing, 18(7), 560-578. Mihić, M., & Kursan, I. (2010). Assessing the situational factors and impulsive buying behavior: market segmentation approach. Management, 15(2), 47-66. Nagarkoti, B. (2009). Factors influencing consumer behavior of smartphone users. Retrieved from http://www.theseus.fi/bitstream/handle/10024/70466/Nagarkoti_Bishal.pdf?sequence=1 University of Delaware. (n.d.). Contents of chapter 6 class notes. Retrieved from http://www.udel.edu/alex/chapt6.html Yakup, D., & Jablonsk, S. (2012). Integrated approach to factors affecting consumers purchase behavior in Poland and an empirical study. Global Journal of Management and Business Research, 12(15), 61-87. Appendices Appendix 1: SWOT Analysis of Hierarchy of Influence Appendix 2: Mind Map Read More