The simple answer to why consumers make purchases – is to fill a need or satisfy a desire. Maslow’s hierarchy of needs identifies five levels ranging from physiological to self-actualization. For the purpose of this discussion a need can be classified as a necessity for survival such as food or shelter while a desire stems from the notion of fulfilling one’s ego.
In order to understand consumer buying behavior is important to comprehend how decisions are made and the dynamics that surround and influence these purchases. While not as complex as the business purchase decision making process, consumers engage in a five step process.
The consumer buying process includes the following:
- Problem recognition
- Information research
- Evaluation of Alternatives
- Final purchase decision
- Post-purchase behavior
Sometimes these steps occur subconsciously based on past experiences or are simplified for items that are purchased repeatedly. Regardless this process is influenced by internal and external factor as well as marketing. Below is a more in-depth look at these consumer purchasing influencers.
Internal consumer purchasing influences include:
- Perceptual filters can be defined as the way we view ourselves and the world we live in.
- Knowledge/Attitudes – once formed these are nearly impossible to change and marketers spend billions on awareness campaigns in the effort to inform and shape consumer attitudes.
- Personality – this is extremely important to understand especially for marketers of luxury products as consumers use products as an extension of their personality. A great example of a company that achieves this is Apple Computer Inc. They have created a very loyal customer base that projects themselves in the products that Apple offers.
- Lifestyle – this relates to the way we live our lives and the activities in which we engage.
- Roles – this includes the roles we feel we occupy as well as those perceived by others.
- Motivation/Involvement – involves the consumer’s desire for a specified outcome and the level of engagement required to achieve this.
External consumer purchasing influences include:
- Culture – ethnicity, religion, etc.
- Groups – this includes family, school, teams, etc.
- Situation – includes the physical environment, the consumer’s mental state and time constraints.
Marketing influences includes:
- Product
- Promotion
- Price
- Distribution
- Service
Understanding how these influences impact the consumer buying process is essential. Companies that are able to use both consumer research and analytics to help answer these questions and quickly react will ultimately be successful. Once they have overcome this initial hurdle the next challenge will involve nurturing and strengthening brand loyalty while adapting to an every changing marketplace.
Author: Brian Rice
