Factors that Determine Consumer Behaviour

Consumer behaviour is the study of how people purchase and use goods, services, and ideas. It is influenced by a range of factors including social, cultural, psychological, and economic.

Social Factors

Social factors refer to the influence of family, peers, and other social networks on consumer behaviour. This includes the family’s beliefs and values, which can shape what products a consumer purchases and how they view them. Additionally, the opinions and behaviour of peers and other social networks can also influence consumer behaviour. For example, if a consumer’s friends are all using a particular product, they may be more likely to purchase it.

Cultural Factors

Cultural factors are values, beliefs, and attitudes that are shared among a group of people and are passed down from generation to generation. These factors can strongly influence consumer behaviour, as they shape a person’s attitudes and beliefs about certain products and services. For instance, beliefs about the importance of organic foods may lead a consumer to purchase organic produce.

Psychological Factors

Psychological factors include a consumer’s perceptions, attitudes, and emotions. These can have a major impact on consumer behaviour, as they influence how a consumer perceives and evaluates a product or service. For example, a consumer may be more likely to purchase a product if it is seen as a status symbol or if it is associated with positive emotions.

Economic Factors

Economic factors refer to a consumer’s financial resources and ability to purchase goods and services. This includes a consumer’s income, employment status, and access to credit. Economic factors can influence a consumer’s purchasing decisions, as they determine how much money a consumer has to spend and on what.

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