Question

Using a simple model,explain the complexities of factors that influences consumer's purchase behaviour

Answer 1

There are many theories and factors that talk about factors influencing consumer's purchase behavior, let me go ahead and narrate a few important ones.

Few consumer's buying decision is very spontaneous and few take time to research and then make a decision to buy.

Below are a few factors that influence consumers purchase behavior:

Financial viability: Affordability in terms of money, plays an extremely important role. Companies operating from Countries where the segment of the middle-class income group is high have customized offerings targeting and segmenting to this specific group.

Socio-economic strata and cultural factors: Socioeconomic status and cultural factors play a vital role in impulsive decision making. Consumers are influenced by their social circle such as family, friends for buying. Few have the interest in possessing niche or unique items, this is because they have the money to spend and would want to stand unique among their social circle. Remember self-actualization in Maslow's hierarchy, this concept suits this scenario.

Need: In most of the cases, need drives the consumers to make the decision of buying. Need has a role to influence when an individual has basic requirements to be fulfilled.

Product differentiation: Many companies offer different product lines (product mix), marketers design these products and services with marginal differences in their features, price, packaging, etc. It is called product differentiation This is to influence the decision making of a consumer. Product differentiation helps in catering to a wide variety of consumers as it fits all the customer segments especially those who are price conscious and in turn, helps the companies as the scope of upsell or customers upgrading themselves to higher features is possible.

Technical factors: Functional characters, fitment of the product or services, customization, and tailored needs plays a great role in influencing the customer purchase decision.

Personal factors: Other factors such as age, consumer's lifestyle, profession, occupations do influence consumer purchase behavior.