MKM58 Buyer Behaviour School of Business and Law Sample
Introduction
Buying behaviour is termed the actions that people take with regards to buying and using products. Along with this, it is also known as the action that is taken by the consumer at the time of selecting or buying the products and services (Simangunsong, 2018).
This decision making is the process that is mainly used at the time of making the choice between the products and services by identifying, gathering information or assessing the alternative resource. In this regard, the present essay will discuss the impact of buying behaviour on decision making. It will also give an understanding related to the contemporary theories on buyer behaviour. Further, it will also explain the information regarding the ability to influence the behaviour of the buyers that is within the variety of marketing contexts.
Moreover, buying behaviour is the type of behaviour that is related to the way in which people shop different types of products that is from the product discovery to the purchase. The buying behaviour of the people has mainly relied upon the different factors that are known as the practical, social and personal factors (Chukwu et. al. 2019).
All these factors directly influence the buyers’ purchase decision that also including the driver that is rational and irrational. Mainly buy behaviour are of four types that are extended decision making, habitual buying behaviour, limited decision making and variety-seeking buying behaviour.
Factors that affect the buying behaviour
There are so many factors that have a direct influence on the buying behaviour at the time of making the decision. The factors give a different type of information along with the understanding that why people have to face high impact at the time of decision making for buy behaviour. The factors are explained below:
Economic factor: It is one of the main foundation and most important factors that comes first in the list of the purchasing decision (Sofi and Najar, 2018). The reason behind influencing the buying decision of the people is that they cannot buy the product because they cannot afford it.
This factor does not include the need for the product but it describes the important thing that is affordability. For example, there are few people who do not think at the time of purchasing the product whether it is high or low range whereas the people who have low income think about this because they cannot afford it.
Functional Factor: The factor has a full focus on understanding the needs and the logic that fits and make the sense for the interest of the customers. It also plays an important role at the time of making the decision related to the buying behaviour (Spiteri Cornish, 2020).
Marketing mix factor: The factor has mainly relied upon the 4 factors that are known as the product, promotion, place and pricing that has a direct and indirect impact upon the buying behaviour of the consumers at the time of decision. At the time of selecting the product, the consumer sees the different types of things that are regarding the characteristic of the price charged product and substitute of the product and others.
Personal factor: The factor is mainly based upon the age, occupation, social, and lifestyle and economic along with the gender of the customer. There are different choices of the men and women and they buy all the things that they like accordingly (Orji et. al. 2017). This factor also has an impact upon the buying behaviour of the people at the time of decision making that is individually or collectively.
Along with cultural, social, and psychological factors the consumer’s behaviour transforms with their own perspective through which they learn trends and understand the products. Every individual has varied customs and perceptions. To generalize the behaviour based on personal factors one can classify the people on the basis of their age, income, lifestyle choices, occupation, and many more.
Therefore, various factors determine the critical features of consumer behaviour. These factors help the organiser to evaluate the behaviour of the customers, the factors that determine the purchase choice of the customer, fixating the products based on the targeted consumers, consistency of their shopping, frequency of number times they shop, and their choices for buying a product or what the pattern of purchasing things (SINGH et. al. 2021).
It is very essential to develop knowledge of the above-mentioned information. Knowledge of this information helps the business models to understand the market trends from the perspective of consumers, if the organizer can understand the customers’ choices, then both parties can connect with each other, this will also help to establish a long-term relationship between both buyers and seller. There are various factors that influence the actions of consumers.
Psychological factors: This can be considered as the hardest behaviour to measure and analyse which influences the choices of the customers to a large extent. Although it is only an integral part of human psychology all the decisions are initially made through this (Lai, 2017). These features involve having inspiration, developing a perception, increasing the knowledge by learning the behaviours, and lastly examining the attitudes and beliefs of the people.
Social factors: Socializing in society greatly influence our perspective and behaviour. Everyone always wants to fit into the environment that society has created, unconsciously everyone wants to be accepted within their culture and society, while doing so our perception changes. Some are influenced by their family, while some by their reference groups, and while others want to be accepted according to their roles and status in society.
Cultural Factor: At some point, each person’s ideologies and values are inspired by the environment that society has provided them with. Subconsciously or consciously individuals are following the rules and regulations made by the society that people live in to belong to the community.
A few inside points would be that the customer’s behaviour is basically built through requirements, values, necessity behaviour, and the individual perception to observe and absorb the things they learn from the close relative or a good friend (Kathiravan et. al. 2019).
Within a culture, there are subculture groups these are individuals who share the same beliefs and values for society. Lastly, the person’s perception is also altered to maintain their social status among the people with whom they spent most of their time.
Financial factor: The statics of purchasing largely depend upon the country’s financial stability in the market, the purchasing budget is developed based on the economic circumstances only. If the country is prosperous and have financial stability then the purchasing power of the customer will be more.
The nation’s economic condition is not the only factor that determine but the personal stability in monetary department also affects the purchasing decisions of the individuals. The family income and conditions would be another factor and expectations from the finances to spend on which resource will determine the decision-making procedure while buying a product. The savings that are created through personal income can regulate the decision of the customers (Sarkar et. al. 2021).
If the saving is more the individual will purchase more. another source of the income is liquid assets these are assets that converted into cash at the time of need from the stocks, mutual funds and savings from the current account (Pise et. al. 2021). Lesser the liquid asset lesser will be the expenditure on purchasing the goods.
Figure 1Element impacting buying decision
(Source: Factors influencing consumer behaviour, 2021)
Contemporary theories on buying behaviour
The theory helps the people at the time understand the things which are related to making the decision at the time of their purchase that is by helping the marketers capitalise and business to predict. The dimensions of the contemporary theories are mainly based upon the personal, psychological, social, and cultural.
Theory of Reasoned Action
The purpose of the theory is to give the explanation related to the relationship between the behaviour and attitude that is present within the people (Gulati, 2017). The theory was invented in the year 1960s by Martin Fishbein. It is mainly based upon analysing the information regarding the importance of the attitudes at the time of the decision making.
Figure 2 Theory of Reasoned Action
Source: (Onlinemaster, 2021)
The main role of the theory is to give information about the consumer act at the time of creating or receiving the particular outcomes that are based upon the behaviour. For this theory, consumers are known as the rational actor that shows their interest at the time of buying the product.
The theory has mainly relied upon the decision making process that is used by the individual at the time of buying the products. Under this, the author has said that people only take the decision which is based upon the specific result that they have expected. The consumer also has the ability that they can easily change their mind at the time of completing the action. Further, they can also decide the different courses of action for decision.
The theory will help the marketer to easily identify all the things that can result in having a direct impact upon the buying behaviour of the people at the time of decision making. For example like company, Axe body uses this type of theory so that they can easily identify the ways for linking their products with the needs and desirability of the women (Aragoncillo and Orus, 2018).
It highlights the ways which give the information about the significance of moving people through the sales pipeline. Although, with the help of this the marketer can easily understand the long gaps that are between the completion of the action or the initial intention that allows the individual to talk to them. It has mainly relied upon the product and services under which the questions are the outcomes of the purchase in which the people can easily take the decision at the time of purchasing it.
Online shopping has become trend in the past year years the words used for same were trading, bartering and even market. Internet over these years has given people a wide and an appealing platform for online shopping for youth. Online shopping is any sort of sale on the internet.
To study consumer decision making process is important because of the wide and rapid global development in various fields. The marketing era has created a pressure on marketers to create more truthful and useful works. The platform of online shopping is expanding very furiously for example a new modern products competes with the old traditional products in the market (Sharma et. al. 2020).
In online shopping if there is any company making bigger investments will large number of opponents in a short period of time. Any sort of growth detected in online sales can be said as a fragment of having a wellbeing of internet having been provided with a lot of information inexpensively. Technology has grown with a great speed and same is with the shopping culture.
The improvement of technology has modified the way people shop and has focused towards the mode of online shopping. Online shopping is just another way of saying it in the terms electronic shopping, virtual shopping, digital, shopping, electronic commerce, home shopping. It refers to the action of buying materials and need from the seller and small businesses over the internet through the use of a web browser or mobile application.
Undoubtedly, the Internet has become a primary element of our daily everyday operations. With the mode of online shopping, consumers can buy anything around the world and the checking out process is a much easier as compared to buying a brick and any other stores store respectively.
Online shopping is much convenient and allows consumers to shop from anywhere at every time. In fact, people do online shopping in order to save their time. Consumers find online shopping more easier and mess free than in-store shopping as it does not require them to stand in queues and wait for billing and also is saves a good amount of money (Qalati et. al. 2019).
Online shopping allows the customer the comparison of wide range of products as it gives information about product specifications and consumers who already purchased the product can right the review of it so the next person buying gets the idea of it. In addition to that it also helps in finding out the brand and companies which offers exceptional and reliable quality of products at an inexpensive and justified amount of money.
In fact, consumer gets attracted to the lower priced products set on the products buy the vendors. The term consumer buying behaviour states the decision taken by a consumer before purchasing any product online.
Purchasing behaviour of a customer can be said to be dependent on some of the following factors such as the buyer’s age, gender and needs and wants and various other factors and reasons.
It involves a very large and deep process also including making an idea about one’s own needs, having good research about the product brand and the specific company, also having an idea about how any other product could be used in replacement of it and then deciding to buy the product for their use.
According to Forbes article it says that growth of the trend of online shopping has been very rapid in the modern world. Some of the countries which are under development have not had their hands on this trend so far.
This created a great vocation for companies to make an investment in establishing their business online. On the other hand, most of the companies in world who are being doubtful about the benefits of online shopping and therefore are reluctant to make an investment for same. Rapid growth in online marketing has resulted in competition of attracting consumers (Vishwakarma et. al. 2021).
Meanwhile consume too are trying to become part time marketers and therefore the want the products to be genuine and truthful. Notably, most consumers are still scared that there may be money lost through unprincipled deals and smart payment fraud. Consumers have experienced risks which affect make them doubt online shopping for the most part.
In addition, most of the consumers now don’t trust this platform because of the frauds being done with them in past. Customers who have come across the sites which don’t seem promising make them doubt the process of online shopping. It is important to find out how experienced benefits of online shopping affects the number and online buying behaviour of the customers.
They have experienced risks of online shopping influences online buying behaviour of the previous consumers Information about the product also affects online purchasing behaviour of the consumers. There are generations such as millennial and generation Z which has bought an impact over digital world.
They have been different browsing and shopping trend which influences this consumer phycology. There are multiscreen generation people who conduct online research before making purchase, so even if they are buying in store they probably done some type of browsing initially.
References
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Chukwu, B.A., Kanu, E.C. and Ezeabogu, A.N., (2019). The impact of advertising on consumers buying behaviour. International Journal of Arts and Commerce, 8(1), pp.1-15.
Gulati, S., (2017). Impact of peer pressure on buying behaviour. International Journal of Research-Granthaalayah, 5(6), pp.280-291.
Onlinemaster, (2021). Four Consumer Behavior Theories Every Marketer Should Know. [Online]. Available through: < https://onlinemasters.ohio.edu/blog/four-consumer-behavior-theories-every-marketer-should-know/>
Orji, M.G., Sabo, B., Abubakar, M.Y. and Usman, A.D., (2017). Impact of personality factors on consumer buying behaviour towards textile materials in South Eastern Nigeria. International Journal of Business and Economics Research, 6(1), pp.7-18.
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