TCB Business

What are the factors that influence consumer choice?

Psychological, Sociocultural, Economic and Government

First factor?

Psychological
Perception
People don’t respond to reality directly, but to how they perceive it. Because of this, marketers focus on shaping positive perceptions of their products in consumers’ minds. If a product is seen as low quality, inferior, or unethical, consumers are unlikely to buy it.
Motives
Consumer choices are driven by motives such as comfort, health, safety, ambition, taste, pleasure, fear, entertainment, cleanliness, and social approval. Advertising tries to influence these motives to encourage people to choose specific products.
Attitude
A consumer’s attitude toward a business and its products can strongly affect how successful its marketing strategy is. People are more likely to support businesses they see as ethical and fair, including whether the company treats its workers well.
Personality
Personality can influence what people buy, including whether they prefer new or well-known brands. Some people feel the need to always have the latest items to feel confident or satisfied, while others don’t place importance on owning new products and are comfortable without them.

Second Factor?

Sociocultural influences:
1. Family and roles influence buying behaviour because people make different purchasing decisions based on their responsibilities in the family and community, such as household and healthcare products.

2.Peer groups influence buying behaviour because people may change what they buy to match the beliefs, attitudes, and preferences of the groups they belong to.

3.Social class influences buying behaviour because factors like education, occupation, and income affect the type, quality, and quantity of products people purchase.

4.Culture and subculture influence buying behaviour because culture shapes everyday choices such as clothing, food, and lifestyle, while subcultures have their own distinct values and behaviours that affect what people buy.

Third Factor?

Economic Influences
Economic conditions strongly affect consumers’ ability and willingness to spend. During a boom, people feel financially secure, so spending increases. During a recession, confidence drops and people reduce their spending significantly.

Fourth influence?

Government
Governments influence consumer behaviour through economic policies and regulations. Economic policies can affect spending habits, while laws against misleading advertising help protect consumers and shape business practices. Governments also intervene directly in the marketplace through rules and campaigns related to issues such as driving, smoking, gambling, domestic violence, terrorism, border control, skin cancer prevention, workplace safety, and public health measures like social distancing and stay-at-home orders.

What is marketing?

It is the whole process of providing goods and services to satisfy the needs and wants of consumers at the right place and time, using the right promotions.

What are the 4 Ps of successful marketing?

Product, Price, Place and Promotion.

What is the first P of successful marketing?

Promotion

Promotion refers to any type of marketing communication​

used to inform or persuade target audiences of the relative ​

merits of a product, service, brand or issue. ... ​

The aim of promotion is to increase awareness, create interest, generate sales or create brand loyalty

What is the second P of successful marketing?

Price

Price: This is really, important for any business. If your customers do not have a lot of money, are they going to buy a product that is way too expensive? Consider your target market.

What is the third P of successful marketing?

Product
Product: What is your product? Is it an invention? Is it a social change movement? Is it something new? Is it something needed?

What is the fourth P of successful marketing?

Place
Place: Where should you promote your product? How can someone actually purchase it and where from?

Successful marketing needs to involve the following elements?

• research: gathering information from potential consumers about their wants and needs​

• publicity: providing information about a new product or service​

• promotions: assisting the launch of products and services (for example, events)​

• advertising: promoting new behaviours (for example, anti-litter, Quit campaign, road safety programs)​

• evaluation: finding out the success of the product or campaign​

Target markets?

• Entrepreneurs aim their products at target markets i.e. the specific group of consumers you are hoping to sell your products to. ​

• Marketing analysts break down target markets further to show how the types of products and brands purchased reflect the personality and lifestyle of the user (this called ‘psychographic segmentation’). ​

• Eg age, gender, income, occupation, education or geographical location. ​

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• Through market research such as surveys and telephone marketing, information about products and users is gathered. Have you had calls at home?​

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• Feedback may reveal information about brand loyalty, or how memorable a brand or advertisement is. ​

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• Brand loyalty is when customers favour one company’s brand of goods (or services) over a competing brand; for example, you may know someone who will purchase only an Apple iPhone as their smart phone. Are there both advantages and disadvantages to being loyal to brands?​

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