Evaluating the Main Factors Which Influence Customer Buying Decision
Consumers are the end users of goods and services while a group of customers who purchase goods for inputs example organisations and businesses are referred to as customers. We will focus on the main factors that influence customer buying behaviour and we will focus on the economic, social and physiological perspectives.
The economic perspective of customer behaviour focuses on the price of products, advertisement and also the income levels of buyers, the sociological point of view focuses on reference groups and culture and finally the psychological perspective focuses on the decision making process and motivation theory.
The price of substitutes also play a major role in determining the consumers purchasing behaviour, in a situation where a substitute of a product is less expensive, then the consumer will purchase the substitute. under the price of a product we will also consider the risk associated with buying a certain product, the more expensive a product is the higher the risk and the higher the consequences of making the wrong decision, buyers will also consider the scrap value of and mostly this is associated with vehicle and machinery product, products with very high prices and low scrap value will be less preferred.
Certain goods also will be purchased by high income earners, for example high income earners will tend to purchase expensive luxurious goods while low income earners will purchase cheap goods; however there is need to consider the type of good that is produced such as giffen goods whose demand decreases as the income levels rise. Therefore we can conclude that income levels do influence the purchasing decision of consumers.
AVAILABILITY OF CREDIT FACILITIES:
The availability of credit facilities means that a consumer can purchase products on credit basis; therefore the consumer can still afford to purchase very expensive products despite his or her low income. The existence of credit facilities will influence the customers buying decision and also influences impulse buying in that the consumer will purchase goods on credit without having to consider his low income or financial constraints.
We will focus on the Maslow’s theory of motivation, this theory suggest that human beings seek to satisfy lower needs and then the higher needs, he hieratically arranged human needs from low needs to higher needs as follows:
Physiological needs– this include the basic needs such as food and shelter
Safety– this include shelter and the needs to protect one from danger
Affection– these are the needs for one to belong to certain groups or family
Self esteem– these are the needs for recognition and dignity
Self actualisation– these are the needs to realise our full potential
Advertisements also act as an influence to the buyer’s decision to buy; adverts are means by which the availability and the quality of products are notified to consumers. Also they act as ways in which confidentiality is increased to the buyers of a product, a good example is where vehicle manufacturing firms continue to advertise products and owners of such products will always check these adverts for the reassurance of the quality of the products they already bought.
Therefore adverts are a major influencing factor to buyers when they decide what to buy, they are persuasive in nature and also they provide information about a product including quality, offers and price cuts, availability of a product and the price of the product and this aids the consumers to make quick decisions about purchasing a product. The adverts also aid in building brand preferences and loyalty through their constant and consistent campaigns.
Consumer buying decisions will in most cases be influenced by the prices, income, and availability of credit facilities, emotional attachment, need satisfaction, technical factors and advertisements. When products prices are low the more the consumer is influenced to buy the product, however the influence of price depends on the price elasticity.
Income also plays a major role in determining the consumer’s decision on buying, the higher the disposable income the more the quantity of products a consumer will buy, this however depends on the income elasticity of the product, however there need to distinguish the type of good because some goods are less demanded as income rises.
Under the need satisfaction we consider the Maslow’s motivation theory where consumers will first satisfy the lower needs before moving on to higher needs. Advertisements also pay a major role in shaping the preferences of consumers in that they persuade buyers to buy certain products, they inform consumers on the availability of certain products, quality and also help build brand loyalty.
All this factors contribute to the decisions consumers make when deciding on what to buy, therefore consumer’s decisions depend upon so many factors which must be taken into consideration by firms when undertaking market research in order to increase their sales volumes to attain higher profits.
Jobber D. ( ) marketing
Bruce and Jewel ( ) business studies