Consumer behavior dictates how customers choose, purchase, and use your goods or services. It also determines the actions of consumers within the marketplace and the motivations for their actions. So to make effective strategic marketing decisions, you must first understand the factors that influence consumer behavior.
What Are the Factors Influencing Consumer Behavior?
Consumer behavior is influenced by personal, situational, psychological, and social factors. As a business owner, collecting as much pertinent data on these factors as possible is important. Doing so will help you efficiently reach your target audience.
Here’s what goes into each factor and the insights you can glean from them:
- Personal Factors
Personal factors that influence consumer behavior include specific demographic factors like:
- Gender
- Age
- Occupation
- Income
- Interests
- Personal opinions
Brands have leveraged demographics for years to make assumptions about consumer buying behavior. To better understand what motivates your customers to make a purchase, take a close look at their individual lifestyle choices, such as leisure activities and daily routines.
- Situational Factors
Situational factors are temporary considerations that inform consumer behavior. Some of these are physical in nature, such as a brick-and-mortar store’s layout, location, lighting, music, colors, and scent. Other common situational factors include the time of day, the current mood of the customer, and holidays.
Sometimes, these situational factors work in your favor, but they often present as objections that keep consumers from purchasing. Successful businesses can overcome these objections by making situational factors as convenient and pleasing as possible.
- Psychological Factors
A person’s mindset will influence their buying behavior. For example, you probably won’t be able to sell a brand-new vehicle to someone out of work and struggling to pay their bills. Remember that a consumer’s reaction to your marketing campaigns will be driven by their current state of mind and underlying beliefs.
- Social Factors
Social factors include such things as class, ethnic background, and education. Remember that social factors also consider the people surrounding your target consumer, including their friends, family, and social network. Additionally, many cultures have different rituals and customs that influence the products they buy and how they live.
Generally, buyers within similar social classes tend to exhibit similar purchase behaviors. Furthermore, many researchers focused on consumer behavior say that a consumer’s family is the biggest factor in their buying behavior.
How to Collect Consumer Behavior Data
Because the motivations that drive consumer behavior can be so broad, the best way to become an expert is by using several different research methods.
These include:
- Requesting consumer feedback
- Surveys
- Focus groups and online panels
- Question and answer websites
The data you collect from these sources can then be compiled and studied to collect insights and compare them to your current strategy. By incorporating this valuable feedback into your marketing efforts, you can better serve your target audience.
Leveraging Behavioral Insights into Actionable Strategies
Learning how to turn consumer behavior information into an actionable strategy is one of the best ways to drive more sales for your business. Contact us today for a free consultation that will show you how to build a solid overall digital marketing plan.
Leave a Reply: