Individual and Psychological Influencing Buying Decisions. Week 10

Transcription

1 Individual and Psychological Influencing Buying Decisions Week 10 1

2 Objective Identify and understand the individual factors and psychological factors that affect consumer buying decisions. To understand the various measures of individual and psychological factors and their role in Consumer Behavior.

3 Factors Influencing Buying Decisions Cultural Factors Individual Factors Social Factors Psychological Factors CONSUMER DECISION- MAKING PROCESS BUY / DON T BUY

4 Individual (Personal) Influences Occupation Age Life Cycle Personality Self-Concept Lifestyle 4

5 Occupation An individual s nature of job has a direct influence on the products and brands he picks for himself. 5

6 Age and Human Lifecycle Teenagers would be more interested in buying bright and loud colors. Middle aged or elderly individual would prefer decent and subtle designs. A bachelor would prefer spending lavishly on items like beer, bikes, music, clothes, parties, clubs and so on. A young single would hardly be interested in buying a house, property, insurance policies, gold etc. 6

7 Economic Condition The buying tendency of an individual is directly proportional to his income/earnings per month. How much an individual brings home decides how much he spends and on which products. Individuals with high income would buy expensive and premium products. Middle and lower income group spend mostly on necessary items. 7

8 Lifestyle The way an individual stays in the society. An individual s lifestyle is something to do with his style, attitude, perception, his social relations and immediate surroundings. It is important for some people wear branded clothes whereas some individuals are really not brand conscious. An individual staying in a posh (noble) locality needs to maintain his status and image. 8

9 Personality Characteristics or traits which reflect individual s buying behaviour. A fitness freak (curious person) would always look for fitness equipment. A music lover would happily spend on musical instruments, CDs, concerts, musical shows etc. 9

10 Psychological Influences Perception Motivation Learning Beliefs & Attitudes 10

11 Perception What an individual thinks about a particular product or service is his perception towards the same. For one, a Dell Laptop might be the best laptop while for others it could be just one of the best brands available. Individuals with the same needs might not purchase similar products due to difference in perception. 11

12 Perception Selective Exposure : Consumer notices certain stimuli and ignores others Selective Distortion: Consumer changes or distorts information that conflicts with feelings or beliefs Selective Retention : Consumer remembers only that information that supports personal beliefs 12

13 Motivation Recognition and self esteem also influence the buying decision of individuals. Individuals prefer to spend on premium brands and unique merchandise for others to look up to them. Certain products become their status symbol and people know them by their choice of picking up products that are exclusive. Nancy went to a nearby restaurant and ordered pizza for herself. Hunger was the motivating factor for Nancy to purchase pizza. 13

14 Learning Learning comes only through experience. An individual comes to know about a product and service only after he uses the same. An individual who is satisfied with a particular product will show a strong inclination towards buying the same product again. 14

15 Types of Learning Experiential: An experience changes behavior Conceptual: Not learned through direct experience 15

16 Beliefs and Attitude Individuals create a certain image of every product or service available in the market. Every brand has an image attached to it, also called its brand image. Consumers purchase products based on their opinions which they form towards a particular product. A product might be really good but if the consumer feels it is useless, he would never buy it. 16

17 Discussion Question 1. Explain what individual and psychological influences that took place when you bought your car? your house? 2. Identify three different products that you bought. What individual and psychological influences your buying decisions in these products. 17

18 Discussion Question 3. What individual inputs would influence the purchase of a (a) TV set, (b) concentrated liquid laundry detergent, (c) fat-free ice cream? Explain your answers. 18