Factors That Influence Buying Behaviour and Decisions

Factors that influence buying behaviour and decisions
Essay
Consumer behaviour is an area of the Economic science that examines

how, where, when, and why individuals make purchase decisions, under the impact
of which factors these decisions are formed and what the consumer's reaction is
when he buys a given product. It is a combination of many elements from different
fields of psychology, sociology, social anthropology and economics. The buying
behaviour analyses aim to identify how diverse factors influence decision-making
processes.
There are five stages in the process of decision-making when buying a

product: problem recognition, information search, evaluation of alternatives,
purchase decision and post-purchase behaviour. Initially, the consumer tries to find
what commodities he would like to buy and he selects only those that promise
greater utility. After choosing the products, the buyer makes an estimate of the
available money which he can spend. Lastly, he analyzes the prevailing prices of
commodities and takes the decision about the ones he should purchase.
Buying behaviour refers to the buying behaviour of the ultimate

consumer. Many factors influence the purchaser in his decision-making process,
shopping habits and the brands or retailers he selects. A buying decision is the
result of each of these factors. Consumer behaviour is influenced by four major
factors: cultural and social (external), personal and psychological (internal).
1
Culture is crucial when it comes to understanding the needs and the
behaviour of an individual. Throughout his existence, the consumer will be
influenced by his cultural environment that will teach him values and preferences.
For a brand, it is important to take into account the cultural factors inherent to each
market in order to adapt its product and its marketing strategy. “McDonald’s” is a
brilliant example of adaptation to the specificities of each culture and market. Well
aware of the importance to have an offer with specific products to meet the needs
and tastes of consumers in different countries, the fast-food giant has for example:
a “McBaguette” in France (with french baguette and Dijon mustard), a “Masala
Grill Chicken” in India (with Indian spices), as well as a “Mega Teriyaki Burger”
(with teriyaki sauce) in Japan.
Social factors explain the outside influences of others on the consumer

purchase decisions either directly or indirectly. Man is a social animal. Therefore,
his behaviour patterns, likes and dislikes are formed by the people around him to a
great extent. These factors fall into three main categories: groups, family and social
roles and status. For example, if you had never tasted “Coca-Cola” during your
childhood and your parents had described it as a product full of sugar and not good
for health, there would have been far less chance for you to buy it when you grow
up than for someone who has drunk it since childhood.
Personal factors also influence buying behaviour. They include such

variables as age, education, occupation and lifestyle (activities, interests, opinions).
These may explain why our preferences often change as our situation changes. For
example, during his life, a consumer could change his diet from unhealthy products
(fast food, ready meals, etc.) during adolescence, to a healthier diet during mid-life
in order to follow a low cholesterol diet to avoid health problems.
2
Psychological factors affect consumer behaviour as well. Some of the
most important ones are: motivation, perception and beliefs and attitudes. For
example, several experiments have shown that even if consumers are given the
same product, they find the product better when they have been told that it is from a
brand they like, than when they have been told that it is a generic brand.
Identifying and understanding the factors that influence buying

behaviour, gives brands the opportunity to develop various marketing strategies and
advertising campaigns. This is a real asset which leads to better meeting the needs
of the customers and increasing the sales. These factors cause consumers to
develop product and brand preferences.
A brand is a name, term, symbol, or any other feature that identifies one
seller's good or service as distinct from those of other sellers. Brands often create
specific products (sometimes even without significant difference) for the same type
of product in order to target a given age group or a sub-culture.
In my opinion, consumers are more receptive to products and marketing

strategies that specifically target them. For instance, a teenager may want the shoe
model or smart phone used by the group from his high school in order to be
accepted by this group. A football beginner may want to buy advanced brands or
products used by experienced football players in order to get closer to this group.
What is more, consumers tend to remember especially the benefits of a brand they
like and forget the drawbacks or competing products advantages. Furthermore, a
study shows that 68% of consumers prefer to buy products from brands they are
familiar with and 22% buy new product just because it is from the brand they like.
Another analysis has also suggested that the social perception of a brand or a
retailer plays a role in the behaviour and purchasing decisions of consumers.
3
This is the reason why companies use branding - a powerful and
sustainable marketing strategy used to create or influence a brand. It has for main
purpose to: create an emotional connection with the consumer, provide justification
for paying a premium price for a product, create loyalty to the product or the
organization and demonstrate the quality and the benefits of the product and the
company behind it.
Consumer behaviour is constantly changing, it is not static. It varies from

consumer to consumer, from country to country and from product to product.
Commodities are of different value and importance to buyers, which implies that
the decision-making processes are dissimilar one to another. There are many
factors that influence the consumer behaviour as well. A better understanding of
these factors gives companies the opportunity to satisfy the needs of their
customers in a much more efficient way.

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Factors that influence buying behaviour and decisions

Consumer behaviour is an area of the Economic science that examines

There are five stages in the process of decision-making when buying a

Buying behaviour refers to the buying behaviour of the ultimate

Social factors explain the outside influences of others on the consumer

Personal factors also influence buying behaviour. They include such

Identifying and understanding the factors that influence buying

In my opinion, consumers are more receptive to products and marketing

Consumer behaviour is constantly changing, it is not static. It varies from

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