Family Economics And Consumer Education 3 (2+1)

Lesson 26 : Buying Practices

Factors influencing the buying decisions

There are different influences both internal and external which affect buying decisions and are discussed here

1. Cost: Cost is an important factor which determines choice in majority of the consumer’s transactions. The consumer buys the goods if the costs of the items liked by him are within predetermined price structure or as planned in his budget. The consumer may also buy slightly higher priced goods if he is convinced of better quality characteristics or some additional benefits from the goods. However consumer preferences are greatly guided by the price of a product.
2. Availability: Usually buying decisions are made in advance in the form of shopping list before going to market. The purchase of an item listed by the consumer depends upon its availability in the market. In case of non availability alternatives presented by the seller have to decide on the spot. Availability of certain goods is associated with certain regions like coastal areas relating to fish
3. Season: Availability of certain goods depends up on the seasons like fruits, vegetables etc. The requirement of the goods rather than its price influences the buying preferences of the consumer. So consumer has to change his choice of items depending on the season
4. Demand: Demand is a factor which influences the buyer preferences. Goods which do not have close substitutes such as milk or oil will always be bought even if prices increase. All essential goods fall in this category. Whenever demand exceeds supply, products become costlier and vice versa. Thus, the prices are directly linked to demand and the consumer has to take appropriate decisions with respect to particular goods.
5. Environmental Influence: Consumers prefer to buy advertised goods in general. Other influences such as those of friends, attractive displays discount offers; weather, mass media etc also have their impact on buyers. The influence of mass media like TV, radio, films, magazine, news papers, posters etc have their impact on buying practices of the consumers.
6. Habit: People buy a product or a brand because they are used to it over time. Even better product is discarded because habits get deep rooted. It is difficult to get rid of change. Some consumers buy from a particular shop by virtue of habit without realizing that other consumers pay less for the same product elsewhere.
7. Hobbies: Some goods are brought because certain consumers have hobbies related to those goods like musical instruments, sports goods, stamps, coins etc.