Purchasing is part and parcel of our daily activities. We spend money on products and services many times in a day and every day without realizing the logic behind our purchasing behavior. Have you ever stopped for a while and review your product options? How did you arrive at a decision?
This is a two-part blog that dissects the factors that impact people’s behavior as a consumer.
What is Consumer Behavior?
This refers to the consumption or purchase of goods and services to satisfy the needs and wants of an individual.
This explains how a personal situation can sway a person’s preference when purchasing.
Age – This life aspect has a major impact on a person’s buying behavior mainly because of the changing needs as a person moves in to different stages of life. For obvious reasons, one’s needs and preferences shift depending on the current phase wherein a person stands in the life cycle. This mainly covers the change in clothes, nutrition, hygiene and medical needs.
Occupation – A person’s profession is another significant influence that has bearing on what a person buys. A good example would be the attire for work. A white-collar job requires business attire while a blue-collar job requires an outfit suitable for manual or field tasks.
Lifestyle and Personality – Character and way of living vary from person to person, which can therefore affect a consumer’s preference and buying behavior. Personality is not about what a person wears per se but how he/she acts and carries himself/herself on a particular circumstance. Lifestyle, on the other hand, encompasses a person’s choice of living and interaction based from his/her interests and opinions.
(See Related Topic: The Cost Of Living An Unhealthy Lifestyle In The Philippines)
This explains how a person’s purchasing decision is impacted by other people and surroundings.
Family – It is the basic and most familiar unit in the society. Upbringing and orientation in the family are contributing factors to a person’s buying behavior, too. For instance, the mother and father as main providers and heads of the household decide and purchase what they think is best for the whole family. The number of family members is also a vital aspect to deliberate. On another note, there are nuclear families out there who have more liberty when buying as opposed to the traditional joint decision.
Reference Groups – This potentially contributes in the formation of a consumer’s purchasing mindset. This factor mainly includes brands or products that are heavily influenced by prominent figures, organization leaders, professionals, or people with exceptional skillset and knowledge on a specific field. It can be said that these influencers are points of reference when deciding to acquire a product or service.
Roles and Status – People have different roles depending on the organization one belongs to. Alongside clubs, peers, organizations, factions such as gender, familial roles, and position at work are also contributing factors.
Alongside personal and social factors aforementioned, there are more facets that shape a consumer’s behavior like cultural, psychological, and economic aspects. Discover more about each in the next part of this two-part blog