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Review Paper on Factors Influencing Consumer Behavior

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In the last years, consumer behaviour and their decision-making process has advanced and has become an important topic in the marketing society. This paper presents an extensive review on the influencing factors on consumers behavior and their buying decision-making process in marketing. The marketing starts and finish with the consumer hence, consumer purchasing decision making shows how well the organizations’ marketing strategy suits marketing demand. Consumer behavior includes the psychological procedures which consumers experience in understanding their requirements. Discovering patterns to rectify these requirements, taking buying decisions for example, whether to purchase goods and services and if so, which types of brands and where, interpret tips, making plans, and executing these plans for example, with engaging in comparison shopping or real buying of products, Totally, modern and professional marketing staffs try to know consumers and their responses, therefore, analyses the essential traits of their behavior.
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Review Paper on Factors Influencing Consumer
Behavior
Ahmad Hosaini1, Dr. Kuldeep Chand Rojhe2
1Master of Business Administration Department
Shoolini University of Biotechnology & Management Science
Solan, Himachal Pradesh, Bajhol, India
Ahmadhosaini2019@gmail.com - Phone +91 7807527692
2Professor, Master of Business Administration Department
Shoolini University of Biotechnology & Management Science
Solan, Himachal Pradesh, Bajhol, India
Faculty of Management Sciences & Liberal Arts
kuldeeprojhe@shooliniuniversity.com phone +91 9882044749
Article Info
Volume 83
Page Number: 7059 - 7066
Publication Issue:
May - June 2020
Article History
Article Received: 19 November 2019
Revised: 27 January 2020
Accepted: 24 February 2020
Publication: 18 May 2020
Abstract:
In the last years, consumer behaviour and their decision-making process has advanced
and has become an important topic in the marketing society. this paper presents an
extensive review on the influencing factors on consumers behavior and their buying
decision-making process in marketing. The marketing starts and finish with the
consumer hence, consumer purchasing decision taking shows how well the
organizations’ marketing strategy suits marketing demand. Consumer behavior includes
the psychological procedures which consumers experience in understanding their
requirements. Discovering patterns to rectify these requirements, taking buying
decisions for example, whether to purchase goods and services and if so, which types of
brands and where, interpret tips, making plans, and executing these plans for example,
with engaging in comparison shopping or real buying of products, Totally, modern and
professional marketing staffs try to know consumers and their responses, therefore,
analyses the essential traits of their behavior.
Keywords: consumer behavior, perception, culture, purchasing, family, personality,
social.
I. INTRODUCTION
Organizations for acquiring their commercial success,
it is significant that managers know consumers
behavior, the relationship among the consumer
behavior and marketing course of actions is
emphasized because the success of organizations’
marketing course of actions depends upon managers’
recognizing’s’ of the consumer behavior (knowing of
the behavior that consumer display is particularly
significant during an economic depression) (Kotler
and Caslione, 2009). On the bases of the consumers
purchasing behavior marketing staff’s analysis the
consumer behavior, consumers play three different
roles, such as user, payer and purchaser. Studies have
displayed that consumer behavior is tough to
anticipate, even for the experts in the area (Armstrong
& Scott, 1991). The marketing starts and finish with
the consumer hence, consumer purchasing decision
taking shows how well the organizations’ marketing
strategy suits marketing demand. Consumer behavior
includes the psychological procedures which
consumers experience in understanding their
requirements. Discovering patterns to rectify these
requirements, taking buying decisions for example,
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whether to purchase goods and services and if so,
which types of brands and where, interpret tips,
making plans, and executing these plans for example,
with engaging in comparison shopping or real buying
of products Totally, modern and professional
marketing staffs try to know consumers and their
responses therefore, analyses the essential traits of
their behavior. Analyzing consumer behavior assists to
make sure who the consumers are, what consumers
wants and how consumers use and react to the
products, the marketing staffs study the wants of
consumer by the conducting surveys (Furaiji, et al,
2012). Consumers behavior studies try to recognize
the purchaser’s decisions-taking process, both
personally and jointly. It analyses personal consumer
traits like, demographics and behavioral variables in a
strive to know the human beings wants. study of
consumer behavior admits for boost knowing and
predicting relevant to not merely the issue of buys
although buying aims and buying regularity
(Schiffman, et al, 2007).
II. Types of Consumer Behavior
Table 1 (Consumer purchasing Decision Process. Own
illustration based on Pride and Ferrell, 2007; Hansen,
2005)
Problem
recognition
Evaluation of
alternatives
Purchase
decision
Post-
purchase
evaluation
the study of consumer behavior recommends that
consumers experience or go through five steps of
decision-taking process whenever want to make a
purchase. This is summarized in the table 1 that model
indicates that consumers experience and pass through
five steps in each purchase. However, in the routine
purchasing decisions, consumers commonly delete
some or reverse some these steps. The purchasing
process starts with the need recognition. At this step,
the purchasers identify a problem or requirement, or
react to a marketing stimulus. The second step is
search for information or how much consumers
require information (if any) is needed, to take
decision. Information can be from internal resources
like memory and experience that consumers have or
external information search from friends, relatives,
family, through social media or from the marketing
staffs that can provide consumers the required
information. If the requirement is strong and product
and service which fulfill the requirement is easily
available, a buying decision is likely to be made
quickly. If this is not the case, the information search
process starts. A customer can acquire information
from different resources: individual sources (family,
friends), commercial resources (advertising,
packaging, retailers), and public resources (magazines,
newspapers, radio, Internet, television). The
helpfulness and extent of effect of each of these
resources of information will differ by products and by
consumers (Furaiji, et al, 2012). It does not produce
value if the marketing staffs hold higher control over
the information that is supplied (or not supplied) to
buyers, and the patterns that, information displays
(Kivetz, et al, 2000). In the assessment step the buyers
are supposed to prefer among the possible choice’s
brands and products. A significant element of the
degree of the assessment is whether the buyers fell
“involve” into products. A purchaser’ degree of
involvement specifies why she/he is encouraged to
look for tips about a specific product or brand even
though basically avoid others. The degree of
involvement, including additional components,
influences a person’s selection from one of three types
of buyers purchasing behavior: daily response
behavior, limited decision taking, and lengthy decision
taking (Pride, et al, 2007). In the Table (2) is showing
a comparison of types of behaviors. For, products and
services that consumers purchase frequently they use
routine response behavior. These products and
services are low-cost items and requires very little
information to search and less decision efforts such
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purchasing of milk, eggs, bread of socks) consumers
for purchasing such mentioned products and services
spend very less time to decide if they purchase these
items and don’t usually require to study reviews or
guide with friends for their point of views before
doing routine purchases. However, consumers when
face with the ethical goods and services, consumers
sometimes get included, and this consequences in a
lengthier seeking for information (Carrigan, et al,
2001; Zander, et al, 2011). These are commonly not
big buys, on the less ended of the pricing range. While
purchasing such features, consumers may go for a
specific brand but are sociable with many brands in
the product families and look more than one as
existence agreeable. Usually, little level of
involvement products is purchased approximately
regularly, Limited decision taking creates by
combination of a lengthy buying decision and a daily
one. Consumers that take part in this kind of purchaser
behavior usually understand what kind of product they
desire even though, are attempting to choose a brand.
buying clothes is a proper illustration of in what way
limited decision-taking goes. A customer that requires
a new pair of shoes goes into a shop looking for shoes
but seeks a sort of brands to specify which pairs are
the best suit. When customers involve in buying that
requires limited decision taking, they can look for
recommendation from marketing staffs or
recommendation from friends. this type of decision
taking demands a moderate quantity of time for tips
collection and consideration. The search is not as
comprehensive or as time taking as it is with
expensive items. The most complicated kind of
purchasing behavior, lengthy decision taking, happens
while buyers and are unfamiliar, expensive products,
or often bought products for instance, a computer, car,
TV, or building. consumers allocate substantial extent
of time looking for a large number of possible options
in advance they purchase. They make oral
communication with trustworthy companions,
household, associates and sales professionals and
study reports, grading online and buyers magazines.
consumers attending in a lengthy decision-taking
procedure usually allocate more time to create an
ultimate buy decision and allot more time looking for
their choices. Several of mentioned buyers experience
analytical dissonance. Lengthy decision taking is
repeatedly used for buying the products in which
requires more involvement (Furaiji, et al, 2012).
Purchasing a special product is not always elicited the
same kind of problem-solving process. Most
consumers even now and then make buys solely on
impulse, rather than on the base of any of these three
purchasing behaviors. Impulse purchasing is a not
planned decision to purchase products or services,
made just prior to a purchase. Such buys range from
small (chocolate, candy, gum) to substantially big
(clothes, jewelry, art) and often cause to problems
such as financial difficulties, family disapproval, or
sensing of guilt or saddening situations (Business
Dictionary, 2012).
Table 2. Analyzing different kinds of Behavior
daily response
behavior
Limited
decision
taking
Lengthy
decision
taking
Degree of
involvement
little
little
High
Value of
Product
little
little to
medium
High
Brand priority
More than one
is acceptable,
hence one
shall be
prioritized
Many
Differ,
usually
many
Information
Search attempts
Little
little to
moderate
Lengthy
Time
consuming
Abruptly
Abruptly to
medium
Lengthy
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III. Factors Influencing Consumer Behavior
Consumers behaviors are affected by these
components like cultural factors, conception factors,
civil components, and psychological factors. These
factors are recognized via the marketers for
recognizing the consumers and to be capable to make
a determination on the course of actions for what type
of buyers be target. Therefore, these components are
using for sectioning the market and determine
consumer groups (Hasslinger, et al, 2007).
1-cultural factors- cultural factors are recognized as
the most significant influencers on the consumers
behaviors that are divided in three parts such as
culture, cultural subgroups and social classes.
A-Culture- culture is known as the most essential
cause of personal needs and wants. consumer behavior
is mainly leaned, and which we are visible to various
groups of worth and believes from an adolescence,
and this worth affect their behavior and decision
taking. Therefore, these factors are fascinating to
marketing staffs and significant indexes of definite
consumer behavior taste (Kotler, et al, 2007).
B- Cultural subgroup-they are minuscule groups
establishments with the definite affiliate of individuals
in which communicate worth and believes like,
origins, system of believes and earthly areas.
recognized cultural subgroups are capable of be served
as a significant and productive market section that is
capable of be marketed (Hasslinger, et al, 2007).
C-Social classes- social classes are consisting of a
combination of components that collect various kinds
of affiliates. few recognized components are such as,
earning, period of animate existence, development of
knowledge, and property and also civil classes are
identified as a class structure (Kotler, et al, 2007).
2-Civil factors- social components are divided into
three various categories, such as reference groups,
household and civil roles and status.
A-reference groups- these groups influence on the
behavior of individuals according to the believes that
individuals have on them. Membership groups have
direct influence on the behavior of the consumers like
family, neighbors, and co-workers. individuals want to
be part of the Reference groups, but they are not.
Reference groups directly and indirectly create the
individual’s behavior and attitude. Reference groups
by three various ways they can influence the person
behavior. Reference groups expose people to fresh
behaviors and style of livings, they impact on an
individual attitude and oneself-concept, as well
reference groups develop press of being confirmed via
others. Opinion leader is Another significance
influence, in which influences people to pursue his or
her believes and attitudes against specific issues,
products and areas (Kotler, et al, 2007).
B-Household- on the purchasing behavior of
consumers household affiliates have high extent of
impact. The level of engagement and domination by
the household affiliates are different, till what extend
and in which pattern. Hence, it is significant for the
marketing personnel to recognize what role is showed
via whom in the household, and approaching the
promotion toward the principal affecting part of the
household affiliate (Hasslinger, et al, 2007).
C-roles and status- people belong to various types of
groups and play distinguish roles while having
different positions in their groups. And also, roles are
those activities that groups members expect from the
others or from the people to perform (Kotler, et al,
2007).
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3-personal factors- these components have
approximately more impact on the consumer
behaviors that are described in the following such as:
A- Age and process of lifeform phase- consumers
during their life they experience various phases as they
spend life periods. These various phases also display
various shifts which the consumers may go through
while arriving at a new phase. Hence marketers
determine their market goals in proviso of various
phases in order to improve suitable marketing scheme
(Kotler, et al, 2007).
B-occupation-consumers’ occupation has a great
extent of influence on the purchasing behavior of the
consumers the jobs aim to have influence on the
products, purchased via the buyers. this causes to the
chance of improving various kinds of products, which
fits keens recognized to be above average within an
occupation (Hasslinger, et al, 2007).
C-Economic situation- the consumers products
choice will be affected by the consumers ‘wealth.
Some consumers may be sensitive on the in issue of
price of products and services or not rely upon on the
amount of earnings. amount of retaining, amount rate
of interest, and also the products and services solely
(Hasslinger, et al, 2007).
D-lifestyle- it is known as the way of consumers
living, which identified by the activities, interests, or
point of view consumers have, it also describes how
the consumers communicate with the world
(Hasslinger, et al, 2007).
F-personality- this is essentially described by the
term certainty, control over others, genialness,
independence, protectiveness, versatility, aggression.
These concerning minds components are the
consequence of an individual’s surrounding. Persons’
character is the aggregation of dynamic and arranged
set of characteristics that an individual owns and
uniquely affect his or her comprehensions,
encouragement, and behaviors in different conditions
(Ryckman, 2004).
G-Oneself-concept or oneself-image- this is the
visionary comprehension in which the human beings’
holds demonstrate persons ‘characters. This approach
brings some disagreement because people may have
an approach in which fulfills whom they are but, is not
admitted with who they desire to be (the perfect
oneself-concept), the inquiry then come into being
whom we choose to fulfil (Hasslinger, et al, 2007).
4-Psychological factors- the psychological factors are
divided into four following concepts such as
(motivation, perception, learning, learning, beliefs and
attitudes).
A-Motivation-this concept refers to an individual
requirement that must be fulfilled. These requirements
are in various types such as (biological requirements
like appetite for food, thirstiness and displeasure). As
well as there are other requirements like, concerning
the mind requirements like need for
acknowledgement, venerate and needs for belongness.
Needs do not get fulfilled until they extend to some
point of intensity and then turn into motives for the
buyer to fulfil establishment. Freud argued that human
beings do not really and fully know about their
motivations. On the other side according to Maslow’s
theory human beings requirements are arranged from
the most urgent to the least urgent needs and known as
the Maslow’s hierarchy of requirement that begins
from the physiological needs, safety needs, social
needs, esteem needs and self-realization needs, when
one need gets fulfilled the individual moves to next
step to fulfil (Hasslinger, et al, 2007).
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Figure 1 (Maslow’s motivation model, Kotler, et al, 2007)
B-Conception- this concept means that pattern in
which human beings interpret their environment
differently. Conception is a procedure in which a
person chooses, arranges and interprets information.
For interpreting information there are three various
processes in which make a determination how
individuals interpret their information, such as
selective consideration, selective distortion, and also
selective retention (Kotler, et al, 2007).
C-Learning- learning can be defined as the act that
can change human beings’ behavior through the
following components such as (Kotler, et al, 2007).
1- Drives- these are strong inner wants in which
call for action.
2- Stimuli- these are those objects that drive for
some extent of action.
3- Cues-these are small stimuli which specify,
when an individual will respond, where an
individual will respond and how an
individual will respond.
4- Reinforcement- when the response and
stimuli against an object is practiced more
than one time.
D-Beliefs and attitudes- these factors can be
acquired by the human beings through learning and
practicing. They can influence the purchasing
behavior by creating an image from the brands and
products in the consumers’ heads. A belief can be
described as an explanatory thought about objects
and is based on the actual knowledge, point of view
and faiths, believes can be created by human beings’
emotions. Attitude can be defined as the human
beings’ evaluations, feelings, tendencies against
somethings, and also, the determinations of human
beings about somethings such as like and dislike
(Kotler, et al, 2007).
IV. Results and discussion
Marketing begins with the consumer and finish with
the consumer. Satisfaction of consumer gets the
significant goal of a business enterprise. The
essential to ensure consumer fulfilment lies in
recognizing of the consumer, his likes and dislikes,
his expectations and encouragement, in short
understanding of consumer behavior. Consumer
behavior caters a clear essential for recognition and
knowing consumer requirements. Hence, the
analysis of consumer behavior for any product is
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significance to the marketers in shipping the fortunes
of their organizations, and also the study of
consumer behavior is crucial for managing
consumption of goods and by that sustaining
economic. Consumer behavior is an extensively
studied area. It allows the organizations to know
how consumers decide about acquiring products and
services. Marketing managers are always eager to
understand more about the consumer behavior;
hence they are able to prepare better communication
and advertising campaigns about their products and
services. Many people make purchasing decision
daily but they don’t realize the components that
derive them to this settlement. Commonly the
components influencing consumers purchasing
behavior involve, concerning mental components,
civil components, cultural components and personal
components. Consumer behavior doesn't stay
identical or consistent in every condition it changes
from time to time. There are different components
that affects consumer behavior. As the change comes
in these components, consumer behavior also
changes such as Demographic Factors, social factors
and cultural factors. Consumer purchasing decision
process involves five stages in which, actual buying
(for decisions that are complicated) is the only stage
on the process. Not all decision-making process
causes to a purchase and also, not all consumer
decision always involves these stages, and
determined by the extent of complexity such as
problem recognition, information search, evaluation
of alternative, purchase decision and post. There are
different types of consumer purchasing behavior that
consumers engaging and conducting in their
purchasing such as (daily Response/Programmed
Behavior, Limited Decision taking, lengthy Decision
taking/Complex high level of involvement and
Impulse purchasing in which no conscious planning
of purchasing the products.
V. Conclusion
Consumer behavior refers to a process in which
consumers select, buy and utilize of products and
services to meet consumers needs and desires.
Different processes are conducted in the consumers
purchasing behavior. Firstly, the consumers attempt
of discovering which products they want to
consume, then they select merely those products that
warrant greater efficacy. After products are being
selected, the buyers create a measurement of the
accessible finance that they are capable to allocate.
finally, the consumers analyze the dominant prices
of products and forms the decision about the
products they should consume. During the interval,
there are different factors that influence on the
purchases of Consumer likes civil components,
cultural components, personal components and
psychological components and also When
purchasing any products consumers experience these
process that consist of five stages at first Stage
consumers aware of a problem or known as
(problem recognition), at second Stage consumers
search for information that is known as (information
search) at third Stage consumers evaluate different
alternatives and known as (evaluation of
alternatives) at fourth Stage consumers make
purchasing decision that is known as (purchase
decision) and in the end stage or fifth Stage is
known as post purchase behavior.
Acknowledgement
All praises and thanks to Almighty Allah, the source
of knowledge and wisdom to mankind, who
conferred us with power of mind and capability to
take this material contribution to already existing
knowledge. All respect and love to him who is an
everlasting model of guidance for humanity as a
whole.
we would like to express our deep and sincere
gratitude to our family, for motivating and
supporting us to accomplish current paper and
providing worthy guidance in the entire of this
paper. Their attention, vision, goodwill and
encouragement have intensely encouraged us. Our
families have been helping us in all walks of our life,
and such sincere and sacrificing is appreciable,
finally we would like to present contemporary
research paper to all new scholar generation. And we
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wish them find this paper useful for their current and
future researches.
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Daily decisions on food purchase are known to be undertaken using limited information search. However, when confronted with ‘ethical’ products, consumers often become more involved, and this results in a more extensive search for information. This research focuses on the information search behaviour of European consumers with regard to ethical attributes like animal welfare or environmental aspects of organic food by means of an Information Display Matrix. Row-wise information search by product characteristics (attributes) was widely preferred over information search by product alternatives (column-wise). Therefore, information (e.g. in the Internet) should increasingly be provided by attributes. The majority of consumers use simplifying and selective search strategies when looking for information on organic food with additional ethical attributes. Consumers tend to start information search in the top, left hand corner and move towards the bottom, right hand corner. Thus, principal attributes should be placed in the upper left corner and be followed by the next most important and so on when presenting information on an array of different products. Our results show that information search patterns of consumers depend on socio-demographic characteristics like gender and age and, to a lesser extent, also on attitudes regarding environmental or social aspects of food production. Thus, marketers, particularly those using the Internet, should revise their systems of information provision and focus increasingly on consumers' needs.
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Two current trends, information overload combined with increased control of marketers (e.g., on the Internet) over the manner in which their products are sold and presented to buyers, suggest that deciding what information to provide or not to provide can determine a product's success in the marketplace. Although it has long been recognized that most purchase decisions are made with incomplete information, we still know very little about the effect of missing information on consumer choice. Building on earlier work by Slovic and MacPhillamy (1974), we demonstrate that a tendency to give more weight to attributes on which all considered options have values ("common attributes"), relative to attributes for which not all options have values ("unique attributes"), can often lead to intransitive preferences. Using process measures, it is further shown that buyers tend to interpret missing attribute values in a way that supports the purchase of the option that is superior on the common attribute. The results indicate that information presentation format and inferences about mission values cannot account for the observed effects of missing information on consumer choice. We also show that the purchase decisions of buyers who consider attribute importance prior to making a choice and those with high need for cognition are less susceptible to influence by missing information. Finally, the findings indicate that choosing from sets with missing information can impact buyer tastes and purchase decisions made subsequently. We discuss the theoretical and practical implications of this research.
Consumer behaviour in online shopping
  • A Hasslinger
  • S Hodzic
  • C Opazo
Hasslinger A, Hodzic S, Opazo C. Consumer behaviour in online shopping.