Businesses must understand these behavioral patterns and buying processes because it helps them figure out the needs of their consumers.
Almost every single thing we do every day requires decisions. Some have turned into habits, and decision-making is simply second nature.
May it be washing your face after waking up, getting yourself a cup of coffee, or picking the clothes you need—everything has a thought process of decision-making.
These everyday decisions, big or small, keep marketers up at night. Decision eats up a great portion of a consumer buying behavior toward purchasing a product or service from a business.
With these in mind, we’ll delve deep into what consumer buying behavior is and the factors that affect it.
What is consumer buying behavior?
Consumer buying behavior is the thought process, decisions, attitudes, and actions of a buyer toward purchasing (or not purchasing) a product or service.
Their process may involve search engines, social media posts, or a variety of other factors—anything that would help them decide whether or not to buy a certain product or service.
Businesses must understand these behavioral patterns and buying processes because it helps them figure out the needs of their consumers. They can also better tailor their marketing efforts to their buyers.
Marketers have been studying the factors that affect the entire buying journey. Read on to discover what these factors are and what you can do to address the different consumer buying behaviors.
Factors affecting consumer buying behaviors
Consumer buying behavior has several determinants. Knowing what these factors are will help you and your team improve product development and marketing plans.
Economic factors
Consumer buying decisions are mainly based on someone’s capability to pay for a product. That said, the country’s economic status also plays a role here.
When a country’s economic status is progressive, it leads to an abundant money supply in the market. This, in turn, increases purchasing power which motivates consumer buying behavior.
A buyer’s behavior is, first and foremost, influenced by the amount of money or savings they are able to spend. So, when an individual has a higher income, the higher purchasing power they have. As the income increases, so does the expenditures on various items.
That also goes without saying that when an income decreases, the spending on multiple items also decreases.
Cultural factors
Culture is everything that surrounds us, and it encompasses our everyday routine, lifestyle, tradition, and beliefs. These traditions and beliefs are upheld by people with the same set of values and ideologies.
These values are further developed in various communities. When a person has their own set of beliefs, and principles, their behavior changes. Cultural influences largely shape people’s consumerist tendencies.
Cultural factors influence people’s values, preferences, perceptions, and buying behaviors. They can also be affected by cultural differences such as social class, occupation, family and cultural background, education, and livelihood.
Psychological factors
Psychological factors have a significant influence on consumer buying behavior. If people’s mental and emotional spaces are in good condition, they will be motivated enough to spend for their security, self-esteem, and self-actualization needs.
Motivation, customer perception, learning process, and attitude influence consumers buying behavior. These factors encourage customers to collect information, evaluate a product, and interpret them the way they want to.
Social factors
Humans all belong to larger units of society that influence their buying behavior. People try to mirror and perform just like other members of society. Their actions and behavior are all affected by the attempt to be socially accepted in a community.
These are called social factors. This can be a family, a person’s preferences, lifestyle, and childhood—all of these contribute to someone’s buying behavior.
In a society where the class is segmented, people want to uphold or elevate their social status.
So, if a person has a credible social status, their buying behavior will be influenced largely by this position. They will continue to behave in the market according to their social status.
Looking from all angles
Humans have certain pre-conceived notions and beliefs before even making a certain purchase. These can all be influenced by their own upbringing, income, societal status, or motivations.
As they become adults and decision-making consumers, these factors would then contribute to their purchasing decisions or consumer buying behavior.
All the factors we’ve mentioned above play a significant role in defining a product or service. They are things businesses should factor into their sales and marketing efforts to increase sales and stay relevant.
