A CB L2 FACTORS

Lesson Overview

This lesson focuses on understanding consumer behavior, specifically the various factors that affect how consumers select, purchase, and consume goods and services to satisfy their needs and wants.

Learning Outcomes

• Upon completion of this lesson, students will be able to:

  1. Describe consumer buying behavior.

  2. List the stages of the decision process.

  3. Compare the factors influencing consumer buying behavior.

Consumer Behavior Defined

• Consumer behavior encompasses the selection, purchase, and consumption of goods and services aimed at fulfilling personal wants.

• Consumers tend to choose products that they find appealing and that promise maximum utility.

• Additionally, consumers assess their available financial resources to make informed purchasing decisions.

Stages of the Decision Process

When a consumer decides to purchase a product, they typically pass through five stages:

1. Problem Recognition: Identifying a need or desire that prompts the purchase.

2. Information Search: Gathering information about possible products that fulfill that need.

3. Evaluation of Alternatives: Comparing different options based on features, prices, and benefits.

4. Purchase Decision: Making the final decision on which product to buy.

5. Post-Purchase Behavior: Reflecting on the purchase experience, which can influence future buying behavior.

Factors Influencing Consumer Buying Behavior

Consumer buying behavior is impacted by various factors, primarily categorized into:

Cultural Factors

1. Culture: The collective way of life that shapes consumer preferences, including traditions, rituals, and societal norms.

2. Sub-cultures: Groups within a culture that share distinctive values or experiences, such as ethnicity or religion.

3. Social Classes: Groups that reflect social hierarchy, influencing values, lifestyles, and buying behaviors.

4. Cultural Trends: Popular trends that appeal to a wide audience, often driven by social pressure and conformity.

Social Factors

• Social influences play a significant role in buying behavior:

  • Reference Groups: Groups that influence an individual's attitudes and behavior, whether through belonging or aspiration.

  • Family: The family unit significantly influences an individual's values and consumption patterns, shaping their buying choices.

  • Social Roles and Status: A person's role in society and their status can dictate their purchasing decisions influenced by expectations from peers and society.

Personal Factors

• These factors relate to an individual's characteristics:

  • Age, lifecycle stage, occupation, economic status, interests, opinions, personality, and self-image all influence consumer decisions.

Psychological Factors

1. Motivation: The driving forces behind why consumers make purchases.

2. Perception: How individuals interpret information encountered through marketing and advertising.

   • Selective Attention: Focusing on specific stimuli while filtering out others.

   • Selective Distortion: Different interpretations based on individual experiences.

   • Selective Retention: The tendency to remember only certain information.

3. Learning: Behavioral changes as a result of experiences and interactions with products.

4. Beliefs and Attitudes: Formed through personal experience and influenced by social interactions, impacting consumer choices.

Conclusion and Next Steps

• Students are reminded that Assignment #3 and Lesson #3 materials will be available as outlined:

  1. Read handout #3.

  2. Watch video clip #3.

  3. Prepare for a graded recitation in the next meeting.

  4. Complete and submit Self-assessment #3 and End of Lesson Assessment #3 within one week.