Family Economics and Consumer Education

Family Economics And Consumer Education 3 (2+1)

Lesson 25 : Consumer Behavior

Factors influencing consumer decisions in relation to buying of goods and services

Consumer’s decisions regarding the buying of goods and services depend upon a variety of factors influencing their buying behavior. The life style itself is influenced by

1. Age
2. Sex
3. Family size
4. Occupation
5. Employment status
6. Mobility
7. Educational status
8. Environment
9. Marketing activities, Culture and subculture’, Perception and Learning, Personality Traits, Emotions and Values etc.

1. Age: The kind of product that satisfies needs or desires at different ages will influence buying decisions. Age affects the kind of choice made.
2. Sex: Men and women differ in their product choices according to the basic differences in their personality and other traits which exist between the sexes. Women by nature behave habitually and in a cognitive manner. They usually hesitate to buy new products which they have not heard about. In contrast men try new products more easily and readily. The males have a tendency to decide quickly and buy at a first shop where the needed product is available, while women usually survey the market before making the decision on buying. Women generally get attracted by discount sales, attractive packages etc.
3. Family Size: The size of the family always influences the choice. If family is large, decisions will be influenced more by the priorities of products rather than other factors. Most decisions made will be habitual, cognitive, economic and productive.
4. Social Status: This directly affects the purchasing power of the families. Higher the income more will be the expenditure on luxuries and lesser percentage on basic needs especially on food.
5. Occupation: The nature of the job reflects the needs of the people. The requirements of the products will be guided by their leisure time, company they keep at work, environment and location.
6. Employment Status: The level of hierarchy at which people are placed in an organization reflects their economic and social status and influences their choices. Ex: A clerk in a government office may have only enough money to afford basic needs of life for his family. An officer in the same office can spend more on luxuries.
7. Mobility: If the people have to travel long distances to work, their products decisions will be guided by the hours away from the house and the time they spend on travel
8. Educational Status: An educated consumer is likely to make more rational rather than cognitive or impulsive decisions as compared to one who is illiterate and is unaware about what else is available to him. Education prepares a person to make better choices with confidence.
9. Environment: People’s immediate family and social environment have a great influence on choices. People wear, eat or use what others do. They easily get influenced by siblings, colleagues and others. These influences are linked to consumers through information search and then processing it.

Consumer Decision Making Process is indicated in the following chart