Factors which influnce the consumer choice
-
Upload
jithin-mathew -
Category
Self Improvement
-
view
542 -
download
0
description
Transcript of Factors which influnce the consumer choice
Factors Which
Influence
Consumer Choice
Submitted by Jithin Mathew
S2 MBA
Who is a Consumer?
• A consumer is someone who buys goods, such as food, clothes, mobile phones, books, magazines, appliances, from a shop or other source.
• A consumer is also someone who buys a service, usually from a specialist, such as an electrician, technician, hairdresser, beautician, bus driver, or travel agent.
• A consumer buys goods or services for his or her personal use.
What is Consumer Choice?
• Consumer choice is the way people choose to spend their money.
• This is influenced by many factors.
• While people have some freedom of choice, there are many factors which may affect their choice.
What influences Consumer Choice?
Environ-mental factors
Psychological factors
Economic factors
Social factors
Personal factors
Factors Influencing Consumer
Choice
Personal Factors
• Needs - essential items: e.g. food, clothes, etc
• Wants - something one can live without: e.g. another pair of shoes, a TV in the bedroom
• Likes/dislikes - personal taste or preferences
• Time available - time to shop around, time to do household chores and/or cook, time to travel
• Values - what is personally important in life
• Emotions/mood - how one feels
• Knowledge – the background information one has about the product or service
• Hobbies – specialist equipment for hobbies
Personal Factors
Social Factors
• Family – likes and dislikes may be passed on to children
• Friends - likes and dislikes may be passed on; wanting to have the same
• Other people – recommendations that help to make decisions
• Trends – things which are fashionable
• Entertainment options – CD’s, DVD’s, parties, family outings, cinema, sports, holidays
• Gender – norms for products and services; what is considered feminine/masculine
• Age – different age groups have different interests, therefore different wants
Social Factors
Economic Factors
• General personal/family income
• What one can afford at the time of purchase
• Credit cards available
• Value for money • Special offers• Reduced price (sales)• Hire purchase options – buy
now pay later• Free credit options –
e.g. No interest paid in first 12 months
Environmental Factors
• Buying products which can be reused – e.g. washable lunch boxes rather than a plastic bag
• Energy efficient products – e.g. light bulbs, appliances
• Water-saving products - e.g. certain dishwashers and automatic washing machines
• CFC-free products – e.g. buying appliances and aerosols (sprays) which are ozone-friendly
• Recyclable packaging
• Biodegradable packaging
• Items not tested on animals – e.g. personal care products
• Lifestyle – making consumption choices to promote sustainable development
Environmental Factors
Psychological Factors
• Planned buying – buying goods and services when all options have been considered; often to fulfil a need, but could also be a want
• Impulse buying – buying something on the spur of the moment, without consideration of need or options available
• To bribe, encourage or reward someone
• Emotions – buying an item to make oneself feel good
• Celebrations – extra money spent on special occasions; treats
• Advertisements – Use different strategies to motivate consumers to buy
Psychological Factors
THANK YOU