International Journal of Business and Research (IJBER)

ISSN: 0975-0479 Volume 11, November 2018

A Study on Factors Affecting Consumer Buying Behaviour

Amaresh Tyagi
Assistant Professor,Department of Management Studies
Sobhasaria Group of Institutions,Sikar
Email: [email protected]

ABSTRACT What we buy, how we buy, where and when

we buy, in how much quantity we buy
‘Consumer is the king of market’–the depends on our perception, self concept,
statement carries profound truth in it. Today social and cultural background and our age
the success of any firm depends upon the and family cycle, our attitudes, beliefs,
satisfaction of consumers. For satisfying the values, motivation, personality, social class
and many other factors that are both internal
consumers the firm should know about the
and external to us. While buying, we also
behavior of the consumers. In these consider whether to buy or not to buy and,
circumstances understanding consumer is a from which source or seller to buy. In some
very difficult task because of the changing societies, there is a lot of affluence and,
technology, innovation, and changes in life these societies can afford to buy in greater
style. Researchers conducted many research quantities and at shorter intervals. In poor
in this area, and they give only few societies, the consumer can barely meet his
barest needs. Consumer behaviour can be
suggestions, but there is no final conclusion.
defined as the decision-making process and
With the inevitability of change looming physical activity involved in acquiring,
large over the horizon, Indian companies evaluating, using and disposing of goods
must learn from their western counterparts; and services.This definition clearly brings
not only to identify the sources, timing and out that it is not just the buying of
direction of the changes likely to affect goods/services that receives attention in
consumer behaviour but, the process starts
India, but also the new competencies and
much before the goods have been acquired
perspective that will enable them to respond or bought. A process of buying starts in the
to these changes, comprehensively and minds of the consumer, which leads to the
effectively. Therefore, it is very essential to finding of alternatives between products that
a marketer to know the various factors that can be acquired with their relative
affect the consumer behavior. There are advantages and disadvantages. This leads to
many factors that affect the consumer internal and external research. Then follows
a process of decision-making for purchase
decision making process.
and using the goods, and then the post-
INTRODUCTION purchase behavior which is also very
All of us are consumers. We consume things important, because it gives a clue to the
of daily use, we also consume and buy these marketeers whether his product has been a
products according to our needs, preferences success or not.
and buying power. These can be consumable The study of consumer behavior helps firms
goods, durable goods, specialty goods or, and organizations improve their marketing
industrial goods. strategies by understanding issues such as,
 International Journal of Business and Research (IJBER)
ISSN: 0975-0479 Volume 11, November 2018

the psychology of how consumers think, communicate and increase their performance
feel, reason, and select between different continuously. A study by (Christensen 1999)
alternatives (e.g., brands, products); The shows that out shopping is inversely related
psychology of how the consumer is to the size of the town of residence. Some
influenced by his or her environment (e.g., researchers have viewed shopping as a
culture, family, signs, media); The behavior leisure activity (e.g. Jackson 1991, Newby
of consumers while shopping or making 1993). Other relevant studies address the
other marketing decisions; Limitations in interaction between the physical
consumer knowledge or information infrastructure and consumers’ choice of
processing abilities influence decisions and retail outlets. Even though Fernie (1997)
marketing outcome; how consumer does not treat consumer preferences as a
motivation and decision strategies differ separate issue, his work seems likely to
between products that differ in their level of provide inspiration for the present study.
importance or interest that they entail for the Fernie looked at the retail changes in the
consumer; and how marketers can adapt and United Kingdom and included a
improve their marketing campaigns and consideration of the logistical consequences
marketing strategies to more effectively of the developments there. The Robert V
reach the consumer. Kozinets & John F Sherry studies (2002)
have explained the flagship brand stores as
Literature Review: an increasingly popular venue used by
The various studies related to consumer marketers to build relationships with
behaviors in India and abroad are being consumers. They have stated that , as we
referred by the researcher. The general field move further into an experience economy in
is one which has been extensively studied, the new millennium, retailers are refining
and the research is discussed and reviewed the flagship brand store into new forms such
by Wahyuningsih and Chris Dubelaar as the themed retail brand store. This new
(2004) in his paper ‘Consumer Behavior and form not only promotes a more engaging
Satisfaction’ of Monash University. In their experience of the brand’s essence but also
studies they have concluded that To satisfy satisfies consumers looking for
their customers, companies need to identify entertainment alongside their shopping.
clearly each segment of consumers whether Douglas D. Davis and Edward L. Millner
they are passive, rational-active, or (2004) studies have concluded that series of
relationaldependent consumers. This is purchase decisions for chocolate bars given
because these three types of consumer (a) “rebates” from the listed price, (b)
perceive their levels of satisfaction “matching” quantities of chocolates for each
differently. Since rational active and bar purchased, and (c) simple price
relational dependent consumers are very reductions, participants purchase
sensitive about their feelings and significantly more chocolate bars under a
expectations, companies need to “matching” sales format than under a
comparable “rebate” format. In attention to
 International Journal of Business and Research (IJBER)
ISSN: 0975-0479 Volume 11, November 2018

the net consequences of decisions, as well as influence of culture on the purchasing

some “rebate aversion”, explain the behavior varies from country to country,
preference for matching discounts.
therefore sellers have to be very careful in
Objectives : the analysis of the culture of different
groups, regions or even countries.
The purpose of this study is to investigate
• Subculture : Each culture has different
internal and external influences on
consumers purchasing decisions . subcultures, such as religions, nationalities,
geographical regions, racial, etc. marketing
1. To Find how consumer buying groups may use these groups, segmenting
behavior factors influence
the market in several small portions. For
Consumers when purchasing
example, marketers can design products
cosmetic products.
2. To study the influence of Income according to the needs of a specific
Level of the respondents on geographical group.
consumer buying behavior • Social Class : Every society has some kind
dimensions of social class is important for marketing
3. To study the various factors that because the buying behavior of people in a
influences the consumer behavior. particular social class is similar. Thus
4. To understand the relationship
marketing activities could be adapted to
between consumer behavior
different social classes. Here we should note
and custom er val ue,
s ati sfacti on, trust and that social class is not only determined by
ret ent ion income, but there are several other factors
such as wealth, education, occupation etc.
FACTORS AFFECTING CONSUMER
BEHAVIOR :
2. SOCIAL FACTORS
There are several factors that influence Social factors also influence the purchasing
consumer purchases, such as social, cultural, behavior of consumers. Social factors are:
personal and psychological. The explanation the reference groups, family, the role and
of these factors is as follows. status.
• Reference groups : Reference groups
1. CULTURAL FACTORS have the potential for the formation of an
Consumer behavior is deeply influenced by attitude or behavior of the individual. The
cultural factors, such as buyer’s culture, impact of reference groups vary across
subculture and social class. products and brands. For example, if the
• Culture : Essentially, culture is the share product is visible as clothing, shoes, car etc.,
of each company and is the major cause of the influence of reference groups will be
the person who wants and behavior. The high. Reference groups also include opinion
 International Journal of Business and Research (IJBER)
ISSN: 0975-0479 Volume 11, November 2018

leader (a person who influences others by marketers to develop suitable products for
his special skill, knowledge or each stage.
other characteristics). • Occupation : The occupation of a person
• Family : Buyer behavior is strongly has a significant impact on their buying
influenced by a family member. So vendors behavior. For example, a marketing manager
are trying to find the roles and influence of of an organization is trying to buy business
the husband, wife and children. If the suits, while a low level worker in the same
decision to purchase a particular product is organization buy-resistant clothing work.
influenced by the wife of then sellers will try • Economic situation : economic situation
to target women in their ad. Here we should of the consumer has a great influence on
note that the purchase of roles change with their buying behavior. If income and savings
changing lifestyles of consumers. a customer is high, then going to buy more
• Roles and Status : Each person has expensive products. Moreover, a person
different roles and status in society in terms with low income and savings buy
of groups, clubs, family, etc. organization to cheap products.
which it belongs. For example, a woman • Lifestyle : Lifestyle clients is another
working in an organization as manager of factor affecting import purchasing behavior
finance. Now she is playing two roles, one of consumers. Lifestyle refers to the way a
of the chief financial officer and the mother. person lives in a society and express things
Therefore, purchasing decisions will be in their environment. It is determined by the
influenced by their role and status. client’s interests, opinions, etc and activities
shapes their whole pattern of acting and
3. PERSONAL FACTORS interacting in the world.
Personal factors may also affect consumer • Personality : Personality changes from
behavior. Some of the important factors that person to person, time to time and place to
influence personal buying behavior are: place. Therefore, it can greatly influence the
lifestyle, economic status, occupation, age, buying behavior of customers. In fact,
personality and self esteem. personality is not what one has, but is the
• Age : Age and life cycle have a potential totality of the conduct of a man in different
impact on the purchasing behavior of circumstances. Has different characteristics,
consumers. It is obvious that consumers such as dominance, aggression, confidence
change the purchase of goods and services etc that may be useful to determine the
over time. Family life cycle consists of behavior of consumers to the product or
different stages as young singles, married service.
couples, unmarried couples etc that help
 International Journal of Business and Research (IJBER)
ISSN: 0975-0479 Volume 11, November 2018

4. PSYCHOLOGICAL FACTORS attitudes of customers with special

There are four major psychological factors campaigns in this regard.
that affect the purchasing behavior of
consumers. These are: perception, CHANGING TRENDS IN INDIAN
motivation, learning, beliefs and attitudes. CONSUMER BEHAVIOUR
• Motivation : The level of motivation also
affects the purchasing behavior of Bulk Purchasing: Urbanization is taking
customers. Each person has different needs, place in India at a dramatic pace and is
such as physiological needs, biological influencing the life style and buying
needs, social needs, etc. The nature of the behaviour of the consumers. The working
requirements is that some are more urgent, urbanites are depending more on fast and
while others are less pressing. Therefore, a ready-to-serve food, they take less pain in
need becomes a motive when it is most traditional method of cooking and cleaning.
urgent to lead the individual to seek Bulk purchases from hyper stores seems to
satisfaction. be the trend these days with purchasing
• Perception : Select, organize and interpret becoming more of a once-a-week affair,
information in a way to produce a rather than frequent visits to the
meaningful experience of the world is called neighborhood market/store/vendor. The
perception. There are three different popular growing shopping trend among
perceptual processes which are selective urbanities is purchasing from super markets
attention, selective distortion and selective to hyper stores.
retention. In the case of selective attention, Trendy Lifestyles: The current urban
sellers try to attract the attention of the middle and upper class Indian consumer
customer. Whereas in case of selective buying behaviour to a large extent has
distortion, customers try to interpret the western influence. There is an increase in
information in a way that supports what positive attitude towards western trends. The
customers already believe. Similarly, in the Indian consumer has become much more
case of selective retention, marketers try to open-minded and experimental in his/her
retain information that supports their beliefs. perspective. There is now an exponential
• Beliefs and Attitudes: Client has specific growth of western trend reaching the Indian
beliefs and attitudes towards different consumer by way of the media and Indians
products. Because such beliefs and attitudes working abroad. Foreign brands have gained
shape the brand image and affect consumer wide consumer acceptance in India.
buying behavior so traders are interested in Buyers' Market In The Making: The
them. Marketers can change beliefs and sellers' market is slowly moving towards
 International Journal of Business and Research (IJBER)
ISSN: 0975-0479 Volume 11, November 2018

becoming the buyers' market. Since, India's 2006). A consumer's behaviour is also
economic liberalization policies were influenced by social factors, such as the
initiated in 1991, many new product consumer's reference group, family, and
offerings have entered the Indian market and social roles and statuses. A person's
product variety has also increased manifold. behaviour is strongly influenced by many
Import licensing restrictions are being groups .A persons reference group are those
eliminated and tariffs significantly reduced groups that have a direct (face to face) or
and this has led to large range of consumer indirect influence on the person's attitudes or
goods made available in India. Indian behaviour. Members of the buyer's family
consumers have always preferred foreign can exercise a strong influence on the
goods and with the liberalization, they now buyer's behaviour. A traditional family in
have a choice of foreign products vis-a-vis India is different from a western family in
the local products. that the "empty nest" stage of the family life
Rise in Analytics : In the past, companies cycle is not very common. The decision
focused more on sales and the number of making process for the purchasing of
people that came through locations and consumer durables is quite elaborate, as
stores, but the rise in online business seems many members with their diverse view are
to have advanced the necessity of tracking involved in it. At the same time, the
and analytics. Advancements in technology characteristics of Indian families are
make it easier to track visitors to a site, changing under the influence of external
along with their locations, buying habits, factors such as liberalization and media
and other information. Some businesses are explosion. Indian families are presently in a
responding by hiring full-time employees to state of flux, shifting from being strictly
track analytics and look for ways to improve hierarchical to more egalitarian in character.
sales once a buyer has landed on a specific We can distinguish between two families in
site or page. the buyer's life. The family of orientation
consists of one's parents. From parents a
CONCLUSION : Culture is the most persons acquires an orientation towards
fundamental determinant of a person's wants religious, politics, and economics and a
and behaviour. A child growing up in India sense of personal ambitions, self -worth, and
is exposed to the following values: love. Even if the buyer no longer interacts
achievement and success, activity, efficiency very much with his or her parents, the
and practicality, progress, material comfort, parents influence on the unconscious
individualism, freedom, external comfort, behaviour of the buyer can be significant. In
humanitarism, youthfulness (Agrawal, countries where parents continue to live with
 International Journal of Business and Research (IJBER)
ISSN: 0975-0479 Volume 11, November 2018

their children, their influence can be Schiffman, Leon G. Consumer Behavior ,

Dorling Kindersley(India) licensees of
substantial like India. In case of expensive pearson Education New Delhi, 2008,
products and services, husband and wives http://www.freepatentsonline.com/
engage in more joint decision making. The (http:// www.consumerpsychologist.com/
2007-05-03)
market needs to determine which member
(http:// edms. matrade. gov.my 2007-05-03)
normally has the greater influence in the
purchase of a particular products or services.
either the husband or the wife, or they have
equal influence. The following products and
services fall under such: Husband--
dominant: life insurance, automobiles,
television Wife--dominant: washing
machines, carpeting, non-living--room
furniture, kitchenware Equal: Living--room
furniture, vacation, Housing, outside
entertainment. Adapting to social conditions
play the most important role in establishing
your brand in the market.
(http://www.consumerpsychologist.com).
This also means that customers are open to
new and different products from time to
time. It's just that they want the product to
be flexible and adaptable to their needs and
preferences. People are changing from time
to time, so do their tastes and preferences.
Identifying those is the first step towards
achieving success and the rest depends on
the performance of the product.

REFERENCES
Agrawal, Meenu. Consumer Behaviour and
Consumer Protection in India, New Delhi,
New Century Pub, 2006
Khan, Matin , Consumer Behavior and
Advertisement Management ,N ew age
international (p) limited, New Delhi, 2006