Consumers are the primary axis around which the complete business revolves. No consumers, no business! Therefore, it is absolutely necessary for each one of us to study the pattern of consumer behavior, as by carefully observing the consumer psychology and the factors affecting consumer buying behavior, we will be able to develop new products, and do the branding more efficiently and eventually increase revenue.

Now,

What is Consumer Behaviour and why does it matter?

It refers to the factors that influence consumers’ buying decisions, like social trends, lifestyle, working patterns, motivation to buy something, etc. Companies endeavour to understand people who are most likely to buy from them. Also, it is studied to develop more attractive advertising campaigns and sales strategies.

It’s highly significant to understand consumers’ buying behavior in order to get to the root of why people prefer to buy your product. You can use the knowledge so acquired to dramatically increase your product’s impact in the market and meet your sales goals.

What are the prime factors that influence the consumer buying process?

When looking at what a consumer needs to engage enthusiastically with the products, the following factors emerge:

• Psychological factors

There are multiple psychological factors when determining consumers’ decision-making process:

• Motivation
• Perception
• Experience
• Attitude and belief
• Social factors

A customer’s social group influences how he/she shops, it comes from factors like:

• Social class
• Educational level
• Peer groups
• Family and friends

It can be said that social factors reflect a steady and dynamic influx through which people learn different meanings of consumption.

Cultural factors

Whether it’s family, friends, or the environment, a person’s cultural background plays an important role in determining his/her purchasing decisions. Since the culture varies from place to place, it is imperative for businesses to analyze every aspect of it, like:

• Religion
• Geographic regions
• Racial groups, etc.

This way you will be equipped to tailor your marketing strategies or specific ad campaigns that will help you to succeed in achieving your goals.

Economic factors

To understand the consumer buying process, it is necessary to take into consideration economic factors like:

• Level of savings
• Assets
• Debts
• Creditworthiness
• Attitudes towards savings vs. spending

Knowing this helps companies to determine the right price of their products and services.

Personal factor

This is a broader category that encompasses the likes, dislikes, and interests of a particular audience – certain age groups could favor digital products like e-books while others may enjoy physical books. There are lifestyle choices to that range from comfort to fashion. Some brands even target audiences by male or female for niche products like beauty oils and shaving creams.

Whichever personal factor plays the part in your target audience, use that information to offer solutions to common problems.

It’s crucial to engage with your customers whenever viable to learn the factors affecting consumer behavior, what they want in order to help yourself meet their needs.