Question

The rise of digital technology has seen a fundamental shift in the way media are consumed. Although television traditionally has been a mainstay of home entertainment, the more recent shift in media consumption—coupled with the rise in the availability of Internet-enabled devices—has meant that time spent in front of the television now is shared with smartphones, tablets, and laptops (Deloitte, 2016; Google, 2014).

Identify and discuss 5 internal and 5 external factors influencing consumer behaviour.                                                                                          

Discuss the ways in which digital technology is influencing consumer behaviour with regard to the television industry.                       

Answer 1

Consumer Behavior

Consumer behavior is the study of the process in which a consumer makes a decision to buy a product or service to satisfy his or needs and wants.

Internal factors influencing consumer behavior:

1. Lifestyle: People coming from different occupations, social status and cultures have different lifestyles. These consumers make purchasing decisions depending on their lifestyle.
2. Motivation: Motivation are the goals a person wants to achieve. Motivation could be having a higher esteem or needs for security. Motivation drives the consumer to make purchases that meet their goal.
3. Perception: Perception is the view of the world, ideas and situations to people. Every person has a different perception. This perception of each person influences their judging ability and hence, their purchasing decisions.
4. Attitude: Attitude is a person’s positive or negative emotional makeup. Attitude enforces a reaction to an idea, situation or behavior. Therefore, a person’s buying behavior is also influenced by his or her attitude.
5. Experience: Experience is a person’s past experience with regard to a product or service. The past experience influences the consumer’s future purchase of a product or service.

External factors influencing consumer behavior:

1. Culture: Culture refers to the traditions, values, ethnicity or religious identity of a person. Culture is experienced by a person from right from childhood and influences a person’s behavior throughout his or her life. It even influences food items, language and dressing style of a person. So, culture is a big factor influencing consumption behavior
2. Social Class: Social class is the hierarchical arrangement of the society that is mostly defined by the income a person earns. A person’s social status influences the person’s lifestyle and consumption behavior.
3. Reference Groups: Reference group is a group that serves as a frame of reference or point of comparison for a person in forming an idea, values and attitude. Reference groups influences consumption decisions.
4. Family: Family are the people who are related to you by birth or marriage. A person’s attitude, belief and habits. A person’s family influences consumption decisions.
5. Opinion Leaders: Opinion leaders are people who can influence a person. There are times when a person even imitates their opinion leader. Opinion leaders influence purchasing decisions.

Digital technology’s influence on consumer behavior with regard to television Industry

Television Advertising is a marketing tool that companies use to influence a consumer to buy their product or service. It also creates awareness about a product or service. Television advertising influences consumer behavior in the following ways:

1. Animation: When a television advertisement uses animated characters in advertising, kids are influences and they influence their parents’ consumption decision.
2. Humor Advertisement: Young consumers are attracted by humorous advertisement. It makes the advertisement memorable for the young consumer. Humorous advertisement assigns a positive feeling about the product or service. It even promotes a liking for the brand.
3. Repetition: Repetition of a television advertisement influences the consumer to finally purchase the product or service.
4. Celebrities: Many advertisements are promoted by celebrities. The consumer tends to be heavily influenced if their favorite actor or sportsperson says they use the product and encourages the viewer to use it as well.
5. Product Placement: Product placement is an advertising strategy used by companies today to influence consumer behavior. The company strategically places the product in a scene in a movie or television series or song.

I hope that was helpful :)