1. Factors Which Influence Consumer Choice

2. What is a Consumer?

3. 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.

4. Black Friday Video
We Americans are good at being consumers…

5. 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?

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. How do other people affect what you buy?

16. 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.

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

18. 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