Consumer Behaviour Unit 1 Determinants of Buyer Behaviour

Determinants of Buyer Behavior

Buyer behavior is influenced by a variety of factors that collectively shape how consumers make
decisions regarding the purchase of products and services. These determinants are typically
classified into several categories, including cultural, social, personal, and psychological
influences. By understanding these determinants, businesses can tailor their marketing strategies
to better align with consumer preferences and needs.

1. Cultural Determinants

Cultural factors are the most pervasive determinants of consumer behavior, deeply influencing
values, beliefs, and preferences.

a. Culture:

Culture refers to the learned values, perceptions, wants, and behaviors that are passed down from
generation to generation within a society.

Culture shapes consumers' decisions regarding what they buy, how they buy it, and when they buy
it. Consumers from different cultures have varying preferences for products and services.

For instance, in many Western countries, individualism is a key cultural trait, influencing
consumers to make decisions based on personal preferences, whereas in collectivist cultures (e.g.,
Japan), consumers may prioritize group consensus when making purchases.

b. Subculture:

Subcultures are smaller groups within a culture that share specific values, norms, or interests, often
based on ethnicity, religion, or geography.

Subcultures have their own unique purchasing patterns, which can differ from the dominant
culture. For instance, in India, the purchasing behaviors of consumers from different religious or
regional backgrounds can vary significantly, influencing their choices of food, clothing, and other
products.

c. Social Class:

1
Consumer Behaviour Unit 1 Determinants of Buyer Behaviour

Social class refers to the division of a society into hierarchical groups based on factors such as
income, education, occupation, and wealth.

Social class affects consumer preferences, the types of products they buy, and the amount they are
willing to spend. For instance, higher-income individuals may prefer luxury brands, while middle-
class consumers may prioritize value for money and practicality.

2. Social Determinants

Social determinants refer to the influence of the consumer's social environment, including family,
reference groups, and social roles, on purchasing behavior.

a. Family:

Family members often play a crucial role in influencing consumer behavior, as they are directly
involved in decision-making processes for household purchases.

Family structure and dynamics influence the types of products purchased, such as groceries,
electronics, and home appliances. For instance,, Parents may influence the purchase of a family
car, while children might have a say in selecting products like toys or entertainment devices.

b. Reference Groups:

Reference groups are groups of individuals that a person looks to for guidance, advice, or approval
regarding purchasing decisions. These can include friends, colleagues, or online communities.

Consumers are influenced by the opinions and behaviors of their reference groups, especially for
high-involvement or socially visible products. For instance, a consumer may choose a particular
brand of sportswear based on recommendations from their gym community or social circle.

c. Roles and Status:

People have different roles and status in society (e.g., as a professional, parent, community leader),
which can influence their buying behavior.

The role and status that individuals hold influence the types of products they buy, often reflecting
their position in society. For instance, a manager in a company might prefer formal business attire
to reflect their professional status.

2
Consumer Behaviour Unit 1 Determinants of Buyer Behaviour

3. Personal Determinants

Personal factors are unique to each individual and significantly influence their buying behavior.
These factors include age, occupation, income, lifestyle, and personality.

a. Age and Life-Cycle Stage:

Consumer preferences and needs change over the course of life, depending on the person’s age
and stage of life (e.g., student, professional, parent, retiree).

As people age, their buying priorities change. Younger individuals may focus on trendy or tech-
related products, while older individuals may prioritize comfort and health-related products. For
instance, a young adult may prioritize purchasing a smartphone, while an older person may focus
on buying healthcare products.

b. Occupation and Economic Circumstances:

A person's occupation and economic situation directly influence their purchasing behavior.

Individuals in higher-income jobs are more likely to buy premium or luxury products, while those
in lower-income positions may prioritize affordability and basic functionality. For instance, a
corporate executive might buy a luxury car to reflect their economic status, while a teacher may
opt for a practical and budget-friendly vehicle.

c. Lifestyle:

Lifestyle refers to a person’s way of living, including their activities, interests, and opinions, which
influence their choices and preferences.

A consumer's lifestyle determines the products they are interested in and willing to spend on. For
example, health-conscious consumers may purchase organic food and fitness equipment. For
instance, a fitness enthusiast may regularly purchase sportswear, fitness gadgets, and health
supplements to align with their active lifestyle.

d. Personality and Self-Concept:

Personality traits (such as introversion, extroversion, risk tolerance) and self-concept (how
individuals perceive themselves) influence buying decisions.

3
Consumer Behaviour Unit 1 Determinants of Buyer Behaviour

Consumers often choose products that align with their personality and self-image. For instance, an
extroverted person may prefer bold, trendy clothing and vibrant colors, while an introverted
individual may choose more understated, classic styles.

4. Psychological Determinants

Psychological factors drive the internal processing of information and how consumers react to
different stimuli in the market. These determinants include motivation, perception, learning,
beliefs, and attitudes.

a. Motivation:

Motivation refers to the internal drives that lead consumers to fulfill their needs. It is often
explained through Maslow's Hierarchy of Needs, which ranks needs from basic (physiological)
to complex (self-actualization).

Consumers are motivated by different levels of needs, and this influences their purchasing
priorities. For instance, a person motivated by safety needs may purchase insurance or home
security systems, while someone motivated by self-actualization may invest in personal
development courses.

b. Perception:

Perception is the process by which individuals select, organize, and interpret information to form
a meaningful picture of the world.

How consumers perceive a product or brand, based on marketing, branding, and prior experiences,
significantly impacts their purchasing decisions. For instance, a well-designed package may create
a positive perception of product quality, even if the contents are similar to a lower-priced
alternative.

c. Learning:

Learning refers to the changes in behavior that result from experience. Consumers learn from their
own experiences, as well as from the experiences of others, including reviews and
recommendations.

4
Consumer Behaviour Unit 1 Determinants of Buyer Behaviour

Learning affects consumer decisions, as past positive experiences may lead to brand loyalty, while
negative experiences can discourage future purchases. For instance, a consumer who has had a
good experience with a brand’s product is more likely to repurchase from that brand in the future.

d. Beliefs and Attitudes:

Beliefs are a consumer’s thoughts about a product or brand, while attitudes are their feelings or
evaluations toward it.

Consumers’ beliefs and attitudes shape their preferences, influencing whether they choose to buy
a product. Positive beliefs and attitudes can encourage brand loyalty, while negative ones can deter
purchases. For instance, a consumer who believes that a particular brand is environmentally
friendly may prefer it over a competing brand that does not align with their sustainability values.

5. Situational Determinants

Situational factors refer to temporary conditions or contexts that affect consumer behavior in a
given situation.

a. Physical Environment:

The physical setting in which a purchase occurs, such as the store layout, lighting, and music, can
influence buying decisions.

A well-organized and aesthetically pleasing store environment can encourage impulse purchases,
while a chaotic or unappealing environment may deter buyers.

For instance, consumers are more likely to linger and purchase items in a brightly lit, well-designed
retail space with comfortable surroundings.

b. Time Factors:

The amount of time available to make a purchase decision can significantly impact consumer
choices.

When time is limited, consumers may make quick, less informed decisions, while those with ample
time may engage in extensive research before purchasing. For instance, a consumer shopping
under time pressure during a sale might buy a product impulsively without thorough comparison.

5
Consumer Behaviour Unit 1 Determinants of Buyer Behaviour

c. Purchasing Context:

The specific circumstances surrounding the purchase, such as whether it is for personal use, a gift,
or a special occasion, can influence consumer behavior.

Consumers may choose different products depending on the purpose of the purchase. For instance,
a consumer may buy more expensive or luxurious products as gifts, but opt for budget-friendly
alternatives for personal use.