Factors Influencing Consumer Behavior

By Sunil Shastri MBA 2nd Sem

Consumer Behavior
Consumer behavior is the study of how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experience to satisfy their needs and wants.

What Influences Consumer Behavior?

Cultural Factors Social Factors Personal Factors

Culture
Culture is the fundamental determinant of a persons wants and behaviors acquired through socialization processes with family and other key institutions.
Ex: American Culture & Indian culture

Subcultures: subgroup of culture with its own, different modes of behavior

Subcultures can differ by:
Ethnicity or Nationality Age or Gender Religion Social class Profession

International Perspective on Cultural Influences

Cultural differences are particularly important for international marketers Successful strategies in one country often cannot extend to other international markets because of cultural variations

Social Classes
Social classes: groups whose rankings are determined by occupation, income, education, family background, and residence location.
lower - lowers upper - lowers working class middle class upper middles lower uppers upper - uppers

Social Factors
Reference Groups
Membership groups direct face to face influence
Primary groups family, friends Secondary groups religious, professional Aspirational groups people hope to join Dissociative groups whose behavior an individual reject

Family
Family of orientation (parents, siblings etc.,) Family of procreation (spouse & children)

Roles and Status

Personal Factors
Age and stage in the life cycle Occupation and economic circumstances Personality and self concept : Confidence, dominance, autonomy, etc., Lifestyle and values

The Family Life Cycle

A typical Indian family life cycle is as below:

Model of Consumer Behavior

Key Psychological Processes

Thank You