Utility And Behavioral Factor

Utility is define as the satisfaction derived from the consumption of a commodity which determines consumption and demand behavior. As such, it is the

foundation of consumer’s behavior: Cultural Factors Social Factors Personal Factors Psychological Factors

Cultural

• Culture

• Subculture

• Social class

Social

• Reference group

• Family

• Roles and status

Personal

• Age and life-cycle stage

• Occupation

• Economic circumstances

• Lifestyle

• Personality and self-concept

Psychological

• Motivation

• Perception

• Learning

• Beliefs and attitudes

Buyer

Cultural FactorsCultural Factors exert the broadest and deepest influence on consumer behavior. Culture is one of the most fundamental determinant of person’s wants and behavior. While lower creatures are largely governed by instinct.

Social FactorsA consumer’s behavior is also influenced by social factors such as the consumer’s reference groups, family, and social roles and statuses.

Reference Groups are those groups that have a direct or indirect influence on the person’s attitudes or behavior.

Personal FactorsA buyer’s decision are also influence by personal outward characteristic such as: the buyer’s age and life cycle, occupation, economic circumstances, lifestyle, personality, and self-concept.

Psychological FactorA Person’s purchases are also influence by psychological factor: motivation, perception, learning, and beliefs and attitudes.

Perception can be defined as the process by which an individual selects, organizes, and interprets information to create meaningful picture of the world.

Self actualization needs(self-development and realization)

Esteem needs(Self- esteem, recognition, status)

Social needs(sense of belongingness, love)

Safety needs(security, protection)

Physical need(hunger, thirst)

Hierarchy of Needs

Physical Needs – food clothing, shelter and sleep.

Safety needs – security, protection, stability, freedom from fear and anxiety, and need for structure and limits.

Social Needs – need for family and friends, relationships and part of the group.

Esteem Needs – refer to the reaction of the other towards, the individual, how one views him/herself, and the need for favorable judgment.

Self-actualization Needs – the tendency, in spite of the lower needs being satisfied, to feel restless unless we are doing what we think we are capable of doing.