Consumer behavior is influenced by cultural, social, psychological and personal factors. Cultural factors include culture, subcultures, and social class. Social factors include reference groups and family influence. Psychological factors include motivation, perception, learning, beliefs, attitudes, and personality. Personal factors that influence consumer behavior are age, occupation, economic situation, lifestyle, and personality. Marketers must understand how these various factors shape consumer decision making and purchasing behaviors.

2. CONSUMER BEHAVIOUR
• Consumer behavior refers to the selection,
purchase and consumption of goods and
services for the satisfaction of their wants.
• there are various factors influencing the
purchases of consumer such as social, cultural,
personal and psychological, economic,
environment, and other factors.

4. Cultural Factor:
1. Culture:
Basically, culture is the part of every society
and is the important cause of person wants
and behavior. The influence of culture on
buying behavior varies from country to
country therefore marketers have to be very
careful in analyzing the culture of different
groups, regions or even countries.

5. 2.Subculture
Each culture contains different subcultures such
as religions, nationalities, geographic
regions, racial groups etc. Marketers can use
these groups by segmenting the market into
various small portions. For example
marketers can design products according to
the needs of a particular geographic group.

6. 3.Social Class
Every society possesses some form of social
class which is important to the marketers
because the buying behavior of people in a
given social class is similar. In this way marketing
activities could be tailored according to different
social classes. Here we should note that social
class is not only determined by income but there
are various other factors as well such as:
wealth, education, occupation etc.
• Upper class
• Middle class
• Lower class

7. Social Factors:
1.Reference Groups
Reference groups have potential in forming a
person attitude or behavior. The impact of
reference groups varies across products and
brands. For example if the product is visible
such as dress, shoes, car etc then the
influence of reference groups will be high.
Reference groups also include opinion leader

8. Membership or contractual groups:
They are those groups to which the person belongs,
and interacts. These groups have a direct influence
on their member’s behavior.
Primary or normative groups:
They refer to groups of friends, family members,
neighbors, co-workers etc whom we see most
often.
Secondary groups:
They include religious groups, professional groups
etc

9. Asprational groups:
These are groups to which a person would like
to join as member
Dissociative or avoidance groups:
These groups whose value an individual rejects
and the individual does not want to be
associated with.
Formal groups:
These groups have a known list of members.
Vary often recorded somewhere. An example
might be a professional association, or a club

10. Informal groups:
These are less structured, and are typically based
on friendship. An example would be an
individual’s circle of friends.
Automatic groups:
These are those groups, to which one belongs by
virtue of age, gender, culture or education. It’s
also called as category groups
Indirect groups:
The costumers are not in direct contact with the
influencers
Comparative groups:
The members of this group are those with whom
you compare yourself

11. Disclaiment groups:
Here the consumer is a member and has face to
face interaction with group members whose
values, attitudes, and behavior are
disapproved by him. You belong to some
groups, but not conform to the norms and
standards of those groups.
Contractual groups:
The groups with which we are in regular
contacts like college friends, office colleagues

12. 2.Family
Buyer behavior is strongly influenced by the
member of a family. Therefore marketers are
trying to find the roles and influence of the
husband, wife and children. If the buying
decision of a particular product is influenced
by wife then the marketers will try to target
the women in their advertisement. Here we
should note that buying roles change with
change in consumer lifestyles.

13. Family of orientation:
This is the family in which a person takes birth.
The influences of parents and individual’s
upbringings have a strong effect on the
buying habits
Family of procreation:
This is family formed by an individual with his
or her spouse and children. Normally after
marriage an individual’s purchasing habits
and priorities change under the influence of
spouse. As the marriage gets older, the
people usually settle in certain roles.

14. Influence of children on buying decision:
First born children generate more economic
impact than higher-order babies. Children also
have a role in applying pressure to their parents
to make particular purchasing decisions
3.Roles and Status
Each person possesses different roles and status in
the society depending upon the groups, clubs,
family, organization etc. to which he belongs.
For example a woman is working in an
organization as finance manager. Now she is
playing two roles, one of finance manager and
other of mother. Therefore her buying decisions
will be influenced by her role and status.

15. Internal or Psychological Factors
1.Motivation:
• A need becomes a motive when it is aroused to a
sufficient level of intensity. A motive is a need that is
sufficiently pressing to drive the person to act there
can be of type of needs
• Biogenic needs:
• They arise from physiological states of tension such as
thirst hunger.
• Psychogenic needs:
• They arise from physiological states of tension such as
needs for recognition esteem.

16. MASLOW’S NEED HIERARCHY THEORY
 Physiological Needs:
The needs that taken as the starting as the starting point in
motivation are called basic or physiological needs.
 Safety Needs:
These needs are also important for most of the
people, everybody wants job security, protection against
dangers, safety of property, etc.
 Social needs
Man is a social being. He is therefore interested in
conversation, sociability, exchange of
feelings, companionship, recognition, belongingness, etc.

17. Esteem and status needs
These needs embrace such things as self
confidence, independence, achievement,
competence, knowledge, initiative and
success
Self fulfillment needs
These are the needs of the highest order, they
are generally found in persons whose first
four needs have already been fulfilled. They
are concerned with archiving what a person
considers to be his mission in life.

18. 2.Perception
Selecting, organizing and interpreting information in a
way to produce a meaningful experience of the world
is called perception. There are three different
perceptual processes which are selective
attention, selective distortion and selective retention.
3.Learning:
It is defining as the changes in the behavior of an
individual arising from the past practice or previous
experience. The buying behavior is critically affected
by their learning experience. The learning process
occurs through the interplay of drives, stimuli, cues
responses and reinforcement.

19. 4.Beliefs and Attitudes
Customer possesses specific belief and attitude
towards various products. Since such beliefs and
attitudes make up brand image and affect
consumer buying behavior therefore marketers
are interested in them. Marketers can change
the beliefs and attitudes of customers by
launching special campaigns in this regard.
5.Goals:
The basic consequences, needs or values that a
consumer wants to achieve are called end goals

20. 6.Risk and uncertainty:
In the case of the inexperienced buyer, there is a
greater risk attached to making the purchase.
Inexperienced buyers have, by definition, less
knowledge of the product category they are
planning to buy into.
7.Heuristic:
In order to reduce risk, and to simplify the
decision-making process, consumers will usually
have a set of heuristics
• Search Heuristic
• Evaluation Heuristic
• Choice Heuristic

21. 8.Personality:
Personality refers to a dynamic concept that
describes the growth and Development of
an individual’s whole psychological system,
which looks at some aggregate whole that is
greater than the sum of the parts
Psychoanalytic theory:
Marketers use many themes in advertising
based on psychoanalytic understanding of
personality such as fantasy, wish fulfillment,
aggression, and escape from life’s pressures.

22. Social-cultural theory:
It Believe that social and cultural variables are
more important than biological drives in the
development of individual personality
Trait theory:
Trait theorists construct personality tests and
ask respondents to record their responses to
many items. Respondents are required to
mark ‘agree’ or ‘disagree’ with certain
statements such as ‘like’ or ‘dislike’ certain
situations or kinds of people.

23. 9.Self-concept :
Most marketers consider self-concept as most
relevant as it focuses on how the self-image or
self-concept of individuals influences their
purchase behavior.
Personal factors:
The personal factors of an individual such as
occupation, income, life –style, etc. are
important determents of an individual buying
decision. The income level determines the
expenditure of a person. Life style reflects the
manner in which a person lives and spends time
and money

24. 1.Age and life cycle stage
• Bachelor stage: young, single people not living
at home
• Newly married couples: young, no children.
• Full nest 1: youngest child below 6th age
• Full nest 2: youngest child, age 6th or more
• Full nest 3: older married couples with
dependent children.
• Empty nest1: older married couples on children
living with them, head in labor force
• Empty nest2: older married no children living at
home.

25. 2.Occupation
The occupation of a person has significant impact
on his buying behavior. For example a marketing
manager of an organization will try to purchase
business suits, whereas a low level worker in the
same organization will purchase rugged work
clothes
3.Economic Situation:
Consumer economic situation has great influence
on his buying behavior. If the income and
savings of a customer is high then he will
purchase more expensive products. On the
other hand, a person with low income and
savings will purchase inexpensive products

26. 4.Life Style:
Lifestyle of customers is another import factor
affecting the consumer buying behavior.
Lifestyle refers to the way a person lives in a
society and is expressed by the things in his/her
surroundings.
5.Personality:
Personality changes from person to person, time
to time and place to place. Therefore it can
greatly influence the buying behavior of
customers. Actually, Personality is not what one
wears; rather it is the totality of behavior of a
man in different circumstances