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