12/1/2020 Determinants & Factors influencing Consumer Behaviour - BBA|mantra

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In a Market, different consumers have different needs. As all consumers are unique they Subscribe Now
exhibit different behaviour while making a purchase decision due to various factors
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influencing consumer behaviour. Therefore it is important to understand the various
factors influencing consumer behaviour.

Factors In uencing Consumer Behaviour

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12/1/2020 Determinants & Factors influencing Consumer Behaviour - BBA|mantra

The Various factors influencing Consumer Behaviour can be classified into 4 categories:

Economic Factors
Personal Factors
Cultural and Social Factors
Psychological Factors

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Blog (36)
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Business Statistics (49)
Company Law (14)
Economic Factors in uencing consumer behaviour: Computer Applications (9)
Consumer Behaviour (22)
Personal Income – Total Income of the consumer
Cost Accounting (3)
Discretionary Income – Income available to a consumer after deducting taxes and
E-commerce (8)
basic cost of living.
Entrepreneurship (11)
Financial Accounting (2)
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12/1/2020 Determinants & Factors influencing Consumer Behaviour - BBA|mantra

Disposable Income – Income available with consumer to spend according to his Financial Management (29)
wishes Financial Services (19)
Family Income – Income of the family. Lower income families have less demand than Human Resource Management (18)
prosperous families. Income Tax (2)

Consumer Expectations Regarding Future Income International Business (13)

Availability of Liquid Assets with the consumer Investment Analysis & Portfolio Management (11)

Consumer Credit – Availability of consumer credit, Credit policies IT & Technical Skills (5)
Macro-Economics (9)
Level of Standard of Living
Management Accounting (18)
A consumer demands more and spends more with increase in his income or Management Information System (4)
expectations of future profits or availability of liquid cash or availability of credit but Managerial Economics (2)
saves and demands less in its absence. The nature of consumption and buying pattern Marketing & Advertising (7)
of a consumer is also affected by the income of the family and the level of standard of Marketing Management (18)

living. Marketing of Services (6)

Micro-Economics (2)
Operations Management (2)
Personal Factors in uencing Consumer Behaviour:
Organizational Behaviour (7)
Age – People of different ages have different needs. Personal Finance (2)

Occupation – Professionals, businessman, salaried-workers have different demands. Principles of Management (9)

Life Cycle Stage – Newly born, Teenager, Bachelor, Married, Parent, Grand Parent Project Management (11)

Lifestyle – Achievers, Strugglers, Strivers, Makers Projects and Presentations (33)

Public Finance (11)
Personality – Aggressive, Shy, Introvert, Extrovert, Conservative, Experimental
Research Methodology (9)
Self-Concept – One`s perceptions towards themselves.
Rural Marketing (1)
Strategic Management (14)
Cultural Factors affecting Consumer Behaviour
Uncategorized (1)

Culture – Culture is basically the way of living and thinking pattern that is followed
from generation to generation in a society. It includes knowledge, belief, traditions,
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morals, values, customs and other such habits that are acquired by people as
members of a society. Internal Sources of Finance
October 17, 2020

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12/1/2020 Determinants & Factors influencing Consumer Behaviour - BBA|mantra

Eg. Indian culture is entirely different from cultures of other Asian, Arabic and Western Bangalore, take your
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level
Sub-culture – Sub-culture is a segment of culture which helps a marketer to know Deferred Shares and No Par Shares
September 10, 2020
another person’s culture either psychologically, socially or through mass identification.
Sub-culture consists of a group of people within a culture who exhibit similar buying
behaviour and have similar believes. Mutual Fund – Meaning, Types, Advantages, Mutual
Funds in India

E.g. Within India, buying behaviour of muslims of the north India can be differentiated September 9, 2020

form the muslims of the south India

Merchant Banking – Meaning, Signi cance, Functions
June 28, 2020
Social class – Social class segments the market on the basis income criteria and
standard of living. It refers to divisions of members of a society on the basis of
Retail Banking and Retail Lending
education, occupation, income etc. Usually people belonging to the same social class
June 27, 2020
have similar preferences in case of choice of residence, entertainment, luxary
products etc.
Bank Mandate, Power of Attorney, Banker`s Lien,
E.g. Buying behaviour of the upper class can be easily differentiated from the middle Right to Set-off, Garnishee Order and Attachment
order
and lower class.
June 27, 2020

Social Factors in uencing Consumer Behaviour  Bangalore, take your

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Social Group – A group is any collection of individuals with similar interests, opinions level
and activities. An individual draws cues regarding consumption and disposal of products Banking Instruments & Banking Transactions

from various social groups he belongs to. The various social groups an individual forms June 27, 2020

a part of are:
Corporate Banking – Services, Clientele, Products &
Pricing
Reference Group – It refers to all those people which directly affect the purchase
June 22, 2020
pattern and decision of a consumer as they serve as a point of reference or
comparison for the consumer while making a purchase decision. Classi cation of Loans
Contractual Group – It includes friends, family, peers who have a direct and daily June 22, 2020
face to face interaction with an individual. They are the most important source of
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influence on consumer behaviour. KYC – Know Your Customer – Meaning, Objectives,

Norms
Avoidance Group – A group of people that have a negative impact on a consumer. A
June 21, 2020
consumer disassociates himself from such a group and avoid using products and
services used, recommended or promoted by the avoidance group.
Aspirational Group – It includes film stars, TV celebrities, Sport stars etc. whom a
consumer aspires to be. A consumer wants to associate himself with people he
aspires and uses products and services used, recommended and promoted by them.

Opinion Leaders – It refers to a key individual in a group which influences the

behaviour of members of the group by providing them relevant information about new
trends and products in the market.

Role and Status – Every person plays many roles in the society i.e. employee to his
boss, parent to his children, referrer for young ones, advisor to peers etc. and their
buying pattern depends upon the role they play in the society. People also select and
buy products according to their status in the society. Social status of a person refers to
his/her position in the society depending upon his income, occupation, education etc.

E.g. CEO of a company would prefer to buy branded products from big stores, while a
worker in the same company may prefer value for money products from nearby stores.
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Psychological Factors affecting Consumer Behaviour:

Customers behave differently towards the same marketing mix (product) due to their
respective psychological makeup. The psychological factors that affect consumer
behaviour are:

Motivation – A motive is an internal force that drives a person to do something i.e.

fulfill a need, achieve a goal, solve a problem. Different motives of a consumer can be
understood through Maslow Hierarchy of needs. All consumers react differently
towards a product depending upon their position in the hierarchy. i.e. an individual will
first satisfy his basic needs and then move upward in the hierarchy with satisfaction of
each want.
Involvement – It refers to the amount of interest or importance a consumers shows
towards a product. A consumer may have high or low involvement in a product.

For e.g. a cricketer will give very high importance and will be highly involved while
purchasing a cricket bat while he may have very low involvement and interest when
purchasing luggage bags.

Perception – It is a process of selecting, organizing, and interpreting information from

our internal and external environment to form a meaningful picture. All consumers
perceive the same product differently according to their own perceptions.

For e.g. Wrestling is perceived differently by different people, some perceive it a

meaning less fighting while some consider it a sport.

Learning – It is a process which brings a permanent change in the behaviour of a

person. People generally learn through past experiences and develop a certain
behaviour towards a product or service.
Personality – It refers to the total of all physical, mental and moral characteristics of a
person. Customers buy products that suit their personality, for example some people

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prefer wearing formal clothes some like to wear casual clothes depending upon what
suits their personality.
Lifestyle – A person`s lifestyle is made up of his activities, opinions and interests.
Lifestyle of a person also depends upon his position in the life cycle stage i.e.
Teenager, Bachelor, Married etc.

E.g. while teenagers or children are care free and majorly spend on recreation activities
and Parents are more money conscious and majorly spend on consumer durables.

Attitude – Attitude is a person`s predisposition to act favourably or unfavourably

towards a product, service, event, people etc. It is the way a person thinks or feels
about an object. Consumers develop a positive or negetive attitude towards a product
or service due to a marketing stimuli, situational variables, experience or advertising
and then decide upon an intended action for that product or service.

For E.g. entrepreneurs attitude towards risk, some are risk takers some like to play it
safe

Determinants of Consumer Behaviour

Factors influencing consumer behaviour can also be classified into Individual

Determinants and External Determinants. The individual determinants shape and
determine the needs and motives of a consumer and direct him towards a purchase,
while the external determinants indirectly influence the purchase process by filtering
through individual determinants.

Individual Determinants affecting External Determinants affecting

Consumer Behaviour Consumer Behaviour
Motivation Culture

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12/1/2020 Determinants & Factors influencing Consumer Behaviour - BBA|mantra

Perception Sub-culture
Attitude Social Class
Personality and Self Concept Social Group
Learning and Memory Family and Other Influences

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