Factors Which Influence Consumer Choice

What is a Consumer?

What is a Consumer? A consumer is: someone who buys goods food, clothes, mobile phones, books, magazines, appliances, from a shop or other source. or services: electrician, technician, hairdresser, beautician, bus driver, or travel agent. for their personal use.

Black Friday Video We Americans are good at being consumers…

What influences what we buy? With neighbors: write down things that affect the things you buy. Why do you buy the things that you do?

Personal Factors Needs - essential items: e.g. food, clothes, etc Wants - something one can live without: e.g. another pair of shoes, a TV in the bedroom Likes/dislikes - personal taste or preferences Time available - time to shop around, time to do household chores and/or cook, time to travel

Personal Factors Values - what is personally important in life Emotions/mood - how one feels Knowledge – the background information one has about the product or service Hobbies – specialist equipment for hobbies

Social Factors Family – likes and dislikes may be passed on to children Friends - likes and dislikes may be passed on; wanting to have the same Other people – recommendations that help to make decisions Trends – things which are fashionable

Social Factors Entertainment options – CD’s, DVD’s, parties, family outings, cinema, sports, holidays Gender – norms for products and services; what is considered feminine/masculine Age – different age groups have different interests, therefore different wants

Economic Factors General personal/family income What one can afford at the time of purchase Credit cards available Value for money Special offers Reduced price (sales) Hire purchase options – buy now pay later Free credit options – e.g. No interest paid in first 12 months

Environmental Factors Buying products which can be reused – e.g. washable lunch boxes rather than a plastic bag Energy efficient products – e.g. light bulbs, appliances Water-saving products - e.g. certain dishwashers and automatic washing machines

Environmental Factors CFC-free products – e.g. buying appliances and aerosols (sprays) which are ozone-friendly Recyclable packaging Biodegradable packaging Items not tested on animals – e.g. personal care products Lifestyle – making consumption choices to promote sustainable development

Psychological Factors To bribe, encourage or reward someone Emotions – buying an item to make oneself feel good Celebrations – extra money spent on special occasions; treats Advertisements – Use different strategies to motivate consumers to buy

In summation: LOTS of things affect what and why you buy things. What’s important: Being able to overcome bias/influence and prioritize your wants and needs

How do other people affect what you buy?

How do other people affect what you buy? Advertisers Use psychology to get you to buy things you don’t need or didn’t want Social pressure (“keeping up with the Jones”) Fads, media, or friends get you to spend more than you intended to on clothing, cars, etc.

Collage Assignment Farrand Folder Consumers, Banking, and Checking 12 – “I Want That Collage”

Psychological Factors Planned buying – buying goods and services when all options have been considered; often to fulfil a need, but could also be a want Impulse buying – buying something on the spur of the moment, without consideration of need or options available