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Factors inflencing consumer choice - KO
Transcript of Factors inflencing consumer choice - KO
Factors Influencing Customer Choice
Understanding these factors will help companies;
Design a product according to customer’s needs
Design strategies that will convince them to buy their products
The 4 main factors influencing customer choice will interact with the marketing mix to determine customer choice:
The personal characteristics of individuals that influence their behaviour. These factors relate to the way people think and develop attitudes to certain products.
Psychological factors that influence customer choice include:
Perception: the opinion that a customer has about a particular product.
Personality and self concept
Beliefs and attitudes
Maslow's Hierarchy of Needs
Socio-cultural factors are features of a person’s background or culture and their social status
A person’s cultural background will heavily affect their moral code, their attitude and thief product choices.
Socio-cultural factors also encompass a person’s position in the family life cycle. A persons purchase decisions will be heavily influenced by their family status: unmarried; young married without children; married with children; older married and children grown up; or older retired.
A person’s social status (upper, middle and lower status) will also affect the types of purchase decisions they make.
Eg. Thorstein Veblen, an economist, suggested that rich people waste their money on purchasing items solely to show off their wealth
Reference groups or peer groups – are those groups with which a person identifies eg. Friends, sporting teams. (very influential for teenagers)
Governments influence purchase decisions by regulating businesses, distribution channels, incomes, advertising and the economy as a whole. Govt. Influence pervades all aspects of the marketing mix and consumers’ lives for businesses, govt’s can influence all aspects of the marketing mix.
For example; For individuals, govt. Influence on purchasing decisions is the setting of income tax rates. GST.
Even though some individuals in a household many have insufficient income to make purchase decisions, if the household they live in has a sufficient income, the purchase can still be made.
E.g. Children have no source of income but can influence purchase
Consumer expectations of the future also heavily influence the purchase decisions of consumers. If consumers believe the economy is slowing down, they will spend less and save more.
Different products satisfy different needs. When developing marketing strategies marketers target specific needs.
MATCH THE SLOGANS TO THE NEEDS THEY ARE TARGETING:
1. “Toyota Lexus one of the rare cars purchased for the people who can afford a more expensive car”
2. “Australian Army Reserve do something for yourself”
3. “Nutri grain, Iron man food"
4. "Good on you mum, tip tops the one"
Economic factors (mainly income) are often a significant constraint on a persons ability to purchase goods and services.
No matter how much a person may need a product, without the necessary funds they will be unable to purchase it.
Name all the reference (peer) groups that influence how you act and name a product you have purchased as a result of associating with those groups.
One image — two
People often hold quite different views about the same thing,whether it is a product, a person, a
movie or an experience they share because they perceive it differently.
Although businesses cannot control people’s perception, they do try to influence them.
Marketing is about understanding customers, their needs and what influences their choices.
Understanding these factors will help companies:
Factors Influencing Customer Choice
Hip Hop Culture Influences Marketing in America
The Marketing Mix