2. Definition: Consumer Behavior The definition for consumer behavior: “Is the study of when, why, how, and where people do or do not buy a product. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioral variables in an attempt to understand people’s wants. It also tries to asses influences on the consumer from groups such as family, friends, reference groups, and society in general”(Wikipedia, 2010).
3. Demographic High rates of credit card possession are documented across numerous studies of college students(Sallie Mae, 2009). Recent research by Robb, Moody & Abdel-Ghany (2011) suggested that financial factors behavior, student loan debt, and the presence of other forms of debt play a significant role in student persistence behavior as well as in student perceptions of debt.
4. Money attitudes 92% of undergrads use there credit cards for college expenses, the other top expenses are for food, clothing and cosmetics. Compulsive buying behavior Lifestyle Need based expenses
5. Sociocultural Influences On Consumer Behavior Personal influence Reference groups The family Social class Culture Subculture
6. Reference Groups Reference groups are people to whom an individual looks as a basis for self-appraisal or as a source of personal standards. Reference groups have an important influence on the purchase of luxury products but not of necessities: Membership group: Aspiration group: One group is associated with the college student, the other group is a group that the college student wishes to be associated with.
7. Persistence Behavior It recognizes the significance of several socio-demographic and academic factors such as: Student background GPA Gender Race/Ethnicity Campus integration/Involvement In this model we consider financial factors as well as financial aid and income expenses from parents, if available.
8. At-Risk While many high schools across the country offer personal finance courses as electives, there are only nine states in the U. S. that require students to enroll in some type of personal finance course to obtain their diploma. (National Coalition on Economic Education, 2007). This course should be standard for all high schools across the globe.
11. Not to be At-Risk Consider revising your spending habits Only purchase items that are needed. Protect what you have invested in. Think about your finances after college.
12. Good Luck with Your Consumer BehaviorByKimberly GaryArgosy University/Atlanta2011
Editor's Notes
Consumer behavior is a psychological influence for most college students, as well a socio-cultural influence.
Example given: relying on credit card usage, relying on student loan money to pay for additional expenses,
Some respondents, however, reported entertainment expenses as well.
Sociocultural influences evolve from a formal and informal relationships with other people. Having socio-cultural relationships to a degree, influences your consumer behavior.
This is like when you were in high school you needed to get those new Jordan’s that just came out or those new pairs of jeans that everybody is wearing.
It is clear that consumer debt and student loan debt are positively correlated.
This knowledge will increase the decisions and behaviors of college students in the beginning of their college life/experience.
Things we need as we further our studies, while in college.
Things we do not need while in college, they are not of the necessities.
Long-term financial well-being will have an affect on your credit scores, it will be used by lenders, insurers, and employers.
