Understanding How People Make Purchase Decisions

Why does a customer purchase the things he/she does? Where does a customer like to go shopping and when? Also, do your pals’ shop in different places or in a single place?

Any market professional has a desire to know the responses to all these queries. After all, these professionals are aware that when they know these answers, they will be better placed to create and communicate about their offerings. Based on these factors, their customers would wish to purchase their offerings.

It is referred to studying consumer behavior, which takes into account several reasons. These may include social, psychological, situational, as well as, personal reasons. People shop for items, purchase and use them. They eventually dispose the ofse products.

Key factors that determine your customers’ purchasing decisions

1. Cultural factors

Did you know that cultural factors can have a fine impact on the purchasing decision process of a consumer? Every individual is surrounded by a complex cultural and social environment. As such the type of offerings, they want to use may be indirectly or directly impacted by their cultural context. Such cultural factors can comprise moral values, caste, tradition, religion, and race.

2. Social factors

These factors can comprise social status, family, and groups. Social factors also influence the purchasing decisions of the customers. Such factors may also echo an endless inflow through which the consumers get acquainted with various consumption values.

3. Psychological factors

There are four major contributors that influence customer purchasing behavior as far as psychological factors are concerned. These are attitudes and beliefs, learning, motivation, and perception.

4. Personal factors

These factors include economic and social status, lifestyle, consumer gender, occupation, and age. Personal factors may collectively or individually influence consumers’ purchasing decisions.

5. Marketing mix factors

The marketing mix has four key components. These are places of distribution, promotion, pricing, and product. Each of the components can have either an indirect or direct influence on the purchasing decisions of people. Any consumer typically takes into account several criteria such as the features of the product, whether the product is available at the desired location, and the price tag apart from other criteria.

6. Functional factor

As the name suggests, this particular factor is about consumer requirements. The needs are supported by reasoning that can not only make sense but can also fit the customer’s best interest. The functional factor is one such factor, which plays an extremely crucial role to influence an individual’s purchasing decision.

7. Economic factor

Although we are discussing in the end, it is the most important factor,  which can have an impact on a person’s purchasing decision. After all, people can hardly purchase items they cannot afford to buy. The most crucial thing here is how affordable the item is rather than the function of the product.

Customer behavior may insinuate various things such as how groups or individuals opt to purchase. Such behaviors also include using and disposal of services or goods so that their needs can be satisfied. As such, it is imperative to appreciate that many factors influence customer behavior.

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