Personal and Psychological Factors of Consumer Behaviour
Consumer Behaviour Notes B.Com 5th Sem CBCS Pattern
Psychological Factors affecting consumer behaviour
An individual’s buying decisions are further influenced by
psychological factors: perception, motivation, learning and attitudes. These factors
are what consumers use to interact with their world. They are the tools
consumers use to recognize their feelings, gather and analyze information,
formulate thoughts and opinions and take action.
A.
Perception: The term “perception” can be defined as the ability to
derive meaning. Derived from the word “perceive”, it refers to the ability of
giving meaning to whatever is sensed by our sense organs. It is the process
through which an individual interprets ones’ sensory impressions to give
meaning to them. Schiffman defines it as “the process by which an individual
selects, organizes, and interprets stimuli into a meaningful and coherent
picture of the world.”
Perception is the process of selecting, organizing and
interpreting information inputs to produce meaning. A person receives
information through the senses: sight, taste, hearing, smell and touch. How and
what consumers perceive strongly affect their behaviour toward products,
prices, package designs, salespeople, stores, advertisements and manufacturers.
B.
Motivation: Motivation involves the positive or negative needs, goals and
desires that impel a person to or away from certain actions, objects or
situations. By identifying and appealing to people’s motives – the reasons for
behaviour – a firm can produce positive motivation. Each person has distinct
motives for purchases, and these change by situation and over time. Consumers
often combine economic and emotional motives when making purchases.
There can be of
types of needs:
1. Biogenic needs: They arise from physiological states of
tension such as thirst, hunger
2. Psychogenic needs: They arise from psychological states of
tension such as needs for recognition, esteem
In the words of
William J Stanton, “A motive can be defined as a drive or an urge for which an
individual seeks satisfaction. It becomes a buying motive when the individual
seeks satisfaction through the purchase of something”. A motive is an inner
urge (or need) that moves a person to take purchase action to satisfy two kinds
of wants viz.
C.
Learning: Learning consists of changes in a person’s behaviour that is
caused by information and experience. Variations in behaviour that result from
psychological conditions such as hunger, fatigue, physical growth, or
deterioration are not considered learning. Learning refers to the effects of
direct and indirect experiences on future behaviour. Consumers learn about
products directly by experiencing them.
D. Beliefs
and Attitudes: The process of learning results in beliefs and attitudes
and they influence buying behaviour. A belief is a descriptive thought that a
person holds about something. Advertising seeks to increase people’s beliefs in
the product knowing fully well that it is beliefs that constitute product and
brand images. For instance, the beliefs in imported goods have given them
competitive edge over their made- in-Nigeria counterparts. The ongoing efforts
by the Federal Government towards changing these beliefs are designed to
encourage local manufacturing.
Government needs to provide the infrastructure- electric
power roads, water and transportation- that will enable rapid
industrialization. On the other hand, an attitude is a learned predisposition
to respond in a consistently favourable or unfavourable manner with respect to
a given object.
The attitude people have towards such things as religion,
politics, goods and services put them into a frame of mind of liking or
disliking these things. Attitude tends to be enduring because once an attitude
is formed it is consistent and difficult to change.
Attitude has three components namely cognitive, affective and
conative. Cognitive is concerned with the person’s knowledge of a situation; an
affective deal with the overall feelings about an object; while conative has to
do with the resultant behaviour or actions.
👉👉Consumer Behaviour Notes
Personal Factors affecting consumer behaviour
A person’s buying decisions are also influenced by personal
characteristics that are unique to each individual, such as age, gender,
education, economic condition, life-cycle stage, personality, self concept, and
life-style. Individual characteristics are generally stable over the course of one’s
life. The personal factors include:
1)
Age and Family cycle stage: The age
and family life cycle stage of a consumer can have a significant impact on
consumer behaviour. How old a consumer is generally indicates what products he
or she may be interested in purchasing. Consumer tastes in food, clothing,
cars, furniture and recreation are often age related. Judith Waldrop found
marketers are interested in understanding what products will sell well in the
youth market. Moreover, it is important to appreciate the influence may be more
significant to most marketers than is youth’s role as primary purchaser of
certain items.
2)
Gender: Physiological differences between men
and women result in different needs, such as health and beauty products. Just
as important are the distinct cultural, social and economic roles played by men
and women and the effects that these have on their decision-making processes.
3)
Education: Education has been associated with the
purchase of books, healthier foods, and entertainment. Education also
influences how decisions are made. Educated consumers seek more information and
demand better quality products. Those with a limited education are generally at
a disadvantage not only in earning money but also in spending it wisely.
4)
Economic
Condition: The buying tendency of an
individual is directly proportional to his income/earnings per month.
How much an individual brings home decides how much he spends and on which
products? Individuals with high income would buy expensive and premium products
as compared to individuals from middle and lower income group who would spend
mostly on necessary items. You would hardly find an individual from a low
income group spending money on designer clothes and watches. He would be more
interested in buying grocery items or products necessary for his survival.
5)
Occupation:
The occupation of an individual plays a
significant role in influencing his/her buying decision. An individual’s
nature of job has a direct influence on the products and brands he picks for
himself/herself. An individual’s designation and his nature of work influence
his buying decisions. You would never find a low level worker purchasing
business suits, ties for himself. An individual working on the shop floor can’t
afford to wear premium brands everyday to work. College goers and students
would prefer casuals as compared to professionals who would be more interested
in buying formal shirts and trousers.
6)
Personality and Self concept: Personality
of an individual also influences his / her buying behaviour. Personality refers
to the unique psychological characteristics of an individual. It is usually
described in terms of distinguishing character traits, attitudes and habits - dominance,
sociability, autonomy, authoritative, aggressiveness, adaptability and the like.
Marketers must have in-depth knowledge of different human personalities.
7)
Life
Style: Lifestyle involves
classifying people according to their values, beliefs, opinions, and interests.
There is no one standardized lifestyle segmentation model, instead market
research firms, and advertising agencies are constantly devising new
categories, which will best help target possible consumers of their clients
products.
8)
Status’ in the Society: Persons
enjoying higher status in the society do spend a good amount of money on luxury
items such as luxury cars, luxury watches, premium brands of clothing,
jewellery, perfumes, etc.
Meaning of Perception
The term “perception” can be defined as the ability to derive
meaning. Derived from the word “perceive”, it refers to the ability of giving
meaning to whatever is sensed by our sense organs. It is the process through
which an individual interprets ones’ sensory impressions to give meaning to
them. Schiffman defines it as “the process by which an individual selects,
organizes, and interprets stimuli into a meaningful and coherent picture of the
world.”
Perception is the process of selecting, organizing and
interpreting information inputs to produce meaning. A person receives
information through the senses: sight, taste, hearing, smell and touch. How and
what consumers perceive strongly affect their behaviour toward products,
prices, package designs, salespeople, stores, advertisements and manufacturers.
Nature
of perception:
1. Perception is a complex process. After a stimulus is detected
by the sense organs, the perception process comes into play and involves the
interplay of three processes, viz., selection, organization and interpretation. It is a
dynamic process.
2. It is also an intellectual process; it involves a lot of
cognitive effort. Once sensation takes place, the perception process involves
the selection, organization and interpretation of data.
3. Perception is broad in nature; it includes a physiological
component (through sensation), as well as sociological and psychological components.
4. Perception is a subjective process as two people may perceive
the same stimuli differently. While two persons may be exposed to the same
stimuli, the manner in which they select them, organize and interpret them is
different. This is because the two are impacted by their background, learning
and experiences, motivation, personality, cultures, values and lifestyles,
social class effects etc which may be different from each other.
Factors affecting the
perception of consumers
Perception
of a consumer is affected by the following factors
1. Motives and needs: Our motives and needs will definitely influence
our perception. For example, a hungry person is motivated to recognise only the
food items among other articles. His attention cannot be directed towards other
things until his motive is satisfied.
2. Cognitive
styles: People are said to differ in the ways they characteristically
process the information. Every individual will have his or her own way of
understanding the situation. It is said that the people who are flexible will
have good attention and they are less affected by interfering influences and to
be less dominated by internal needs and motives than or people at the
constricted end.
3. Mental
set: Set
refers to preparedness or readiness to receive some sensory input. Such
expectancy keeps the individual prepared with good attention and concentration.
For example, when we are expecting the arrival of a train, we listen to its
horn or sound even if there is a lot of noise disturbance.
4. Selectivity: This
is the degree to which the brain is selecting from the environment. It is a
function of how much is going on around the individual, and also of how
selective (concentrated) the individual is on the current task. Selectivity is
also subjective. Some people are a great deal more selective than others.
5. Expectation: Expectations affect the perception of
a person. Expectations are related with the state of anticipation of particular
behaviour from a person. For example, a technical manager will expect that the
non- technical people will be ignorant about the technical features of the
product.
6. Situation:
Elements
in the environment surrounding an individual like time, location, light, heat
etc., influence his perception. The context in which a person sees the objects
or events is very important.
7. Cultural
Upbringing: A person’s ethics, values and his cultural upbringing also play an
important role in his perception about others. It is difficult to perceive the
personality of a person raised in another culture because our judgement is
based upon our own values.
8. Past experience:
This leads us to interpret later experience in the light of what we already
know. Psychologists call this the law of primacy, Sometimes sights, smells or
sounds from our past will trigger off inappropriate responses: the smell of
bread baking may recall a village bakery from twenty years ago, but in fact the
smell could have been artificially generated by an aerosol spray near the
supermarket bread counter.
Perceptual
process/ mechanisms
The perceptual process starts when a person is exposed to a
stimulus and the sensory receptors report the same to the human body. While the
senses may be exposed to various stimuli, the human senses select only some of
these at a point of time. This is because the sense organs have a limited capacity
at a particular point of time. After the sense organs, report a few stimuli,
the perceptual
process takes over. Of the stimuli that have been detected, few are
selected, organized and interpreted for meaning. This is known as
perception.
Although we may differ in perceptual processes, universally
speaking, the perceptual process comprises four components, viz., input,
perceptual mechanism, output and behaviour. Let us have a discussion
on these.
i. Input: The input to the perceptual process refers to the
various stimuli that surround an individual and exist in his environment. It could assume
various forms, for example, it could be another person, object, thing, or
situation. The perceptual process begins when the sensory receptors detect a
stimulus in the environment, which acts as an input to the perceptual
mechanism.
ii. Perceptual mechanism: The perceptual mechanism consists
of three sub-processes, viz., selection, organization and interpretation.
Once the sense organs detect a stimulus in the environment, a person selects,
organizes and interprets it through perceptual selectivity, perceptual organization
and perceptual interpretation. Put together, these are known as perceptual mechanisms.
1. Perceptual selection or perceptual selectivity refers to a
tendency within a person to select one or a few out of the many stimuli present
in the environment; this selectivity is based on one’s demographic,
socio-cultural and psychographic factors. A person would tend to select those
stimuli that appear relevant and attractive to him.
2. Perceptual organization refers to the process of organizing the
various stimuli with other cues around so that a whole picture can be
created. In other words, the various stimuli are organized and given a form. It
is the process of organizing inputs into a definite and interpretable
structure.
3. Perceptual interpretation refers to the process of drawing in
inferences out of the organized whole (of stimuli), and giving meaning to it.
iii. Output: Once the input has been interpreted, it
results in an output. This output towards the stimuli assumes various forms,
for example, in the formation of emotions and moods, feelings and opinions,
as well as attitudes and beliefs.
iv. Behaviour: The resultant behaviour is an outcome of the
output. Based on his emotions and moods, feelings and opinions, as well as
attitudes and beliefs, a person would enact out behaviour. This behaviour is a function of
and will be reflective of such emotions and moods, feelings and opinions,
as well as attitudes and belief.
Elements
of Perception
Elements of Perception are given below
1) Sensation:
Sensation is the immediate and direct response of the sensory organs to
stimuli. A stimulus may be any unit of input to any of these senses. Examples
of stimuli include products, packages, brand names, advertisements and
commercials. Sensory receptors are the human organs that receive sensory
inputs. Their sensory functions are to see, hear, smell, taste and feel. All of
these functions are called into play, either singly or in combinations, in the
evaluation and use of most consumer products.
2) The Absolute Threshold - The lowest
level at which an individual can experience a sensation is called the absolute
threshold. The point at which a person can detect the difference between
“something” and “nothing” is that person’s absolute threshold for the stimulus.
Sensory adaptation is a problem that causes many advertisers to change their
advertising campaigns regularly. Marketers try to increase sensory input in
order to cut through the daily clutter consumers experience in the consumption
of advertising. Some increase sensory input in an effort to cut through the
advertising “clutter.” Other advertisers try to attract attention by decreasing
sensory input.
3) The Differential Threshold The
minimal difference that can be detected between two stimuli is called the
difference threshold or the JND (just noticeable difference). A 19th century
German scientist named Ernst Weber discovered that the JND between two stimuli
was not an absolute amount, but an amount relative to the intensity of the
first stimulus. Weber’s law states that the stronger the initial stimulus, the
greater the additional intensity needed for the second stimulus to be perceived
as different.
Lifestyle affecting Consumer Behaviour
Lifestyle involves classifying people according to their
values, beliefs, opinions, and interests. There is no one standardized
lifestyle segmentation model, instead market research firms, and advertising
agencies are constantly devising new categories, which will best help target
possible consumers of their clients products. Lifestyle is an important aspect
when looking at consumer choices. Just because there may be two women with
similar age and income, does not mean they’re likely to purchase the same
products. Below will be some examples of why lifestyle is an important aspect
to consider:
1) Status in
the Society: Social status is one of the key elements to how
and why people buy certain products and services. It affects the quality and
quantity of what people buy. Persons enjoying higher status in the society
do spend a good amount of money on luxury items such as luxury cars, luxury
watches, premium brands of clothing, jewellery, perfumes, etc.
2) Product
involvement: People’s lifestyle comes into play
especially when they come to high involvement products. These products carry
high risk, are complex or have high price tags. They may be a car, home or
insurance policy lifestyle comes into play here. Take for example buying a
home. Some people might be outdoorsy, love gardening and want quiet. Whereas
another couple may love fresh air, need a medium sized home and love the beach.
3) Activities: The
activities people undertake vitally determine how their money will be spent.
For example: if a person is dedicated to the gym and works in a gym, then
they’re likely to spend most of their money on gym clothes, weights, exercise
machines and healthy food.
4) Self-image: Self-image
is a strong aspect when thinking about how lifestyle affects purchases. The way
someone feels they should look will strongly affect what they buy.
Impact of Personality and Self concept
on Consumer Behaviour
Meaning: The term ‘personality’ is derived from the Latin
word ‘persona’ which means a mask. According to K. Young, “Personality is a
patterned body of habits, traits, attitudes and ideas of an individual, as
these are organised externally into roles and statuses, and as they relate
internally to motivation, goals, and various aspects of selfhood.” G. W.
Allport defined it as “a person’s pattern of habits, attitudes, and traits
which determine his adjustment to his environment.”
Personality of an individual also influences his / her buying
behaviour. Personality refers to the unique psychological characteristics of an
individual. It is usually described in terms of distinguishing character
traits, attitudes and habits - dominance, sociability, autonomy, authoritative,
aggressiveness, adaptability and the like. Marketers must have in-depth
knowledge of different human personalities.
Theories
on Personality
1) Psychoanalytic Theory
2) Neo-Freudian Theory and
3) Trait Theory
1) Freud’s psychoanalytic theory provides the
foundation for the study of motivational research, which operates on the
premise that human drives are largely unconscious in nature and serve to
motivate many consumer actions.
2) Non- Freudian theory tends to emphasize the
fundamental role of social relationships in the formation and development of
the personality.
Ø Alfred Adler viewed human beings as seeking to
overcome feelings of inferiority.
Ø Harry Stack Sullivan believed that
people attempt to establish significant and rewarding relationships with
others.
Ø Karen Horney saw individuals as trying to
overcome feelings of anxiety and categorized them as compliant, aggressive or
detached.
3) Trait Theory is a major departure from the
qualitative or subjective approach to personality measurement. It postulates
that individuals possess innate psychological traits to a greater or lesser
degree, and that traits can be measured by specifically designed scales or inventories.
Because they are simple to use and to score and can be self-administered,
personality inventories are the preferred method for many researchers in the
assessment of consumer personality.
"The 5 Personality Traits”
These traits are extroversion,
conscientiousness, agreeableness, openness, and neuroticism or sometimes
referred to as emotional intelligence.
1) Extraversion
is characterized by outgoing, talkative, sociable and assertive behavior.
Extraverts often engage in "actions [that are] directed toward obtaining
power and dominance"
2) Conscientiousness: The personality trait of conscientiousness
is characterized by diligence and organization. Conscientiousness is described
by words like "precise," "efficient," "orderly,"
and "persistent." Conscientious individuals generally do not like the
idea of spending a lot of time in waiting lines, since it is perceived to be
inefficient.
3) Agreeableness: The personality trait of agreeableness is
related to the need for pleasant, cooperative and harmonious relations.
Agreeable people are courteous, flexible, tolerant and forgiving. By contrast,
people who display low levels of agreeableness tend to be more competitive in
their day-to-day activities.
4) Openness: Openness of a consumer is also key for marketers to take
into consideration. If someone is open to things that means they are willing
and able to try new ideas and products. This is important when introducing a
new product because there are going to be those consumers who are afraid to
venture off from the product they are used to, but marketers can use research
and find what it takes to get to the closed off consumers and make them willing
to try new things and be a bit more open. Consumers who are open-minded on the
other hand, don't necessarily have to stay with the clear cut product, but they
are willing to try new things and be adventurous.
5) Neuroticism: Neuroticism is a trait where individuals are
prone to negative thoughts such as anxiety, anger, envy, guilt and so on. Such
individuals are often in a state of depression and do not how to enjoy life.
They always look at the negative sides of life and find extremely difficult to
cope up with stress.
All "The 5 Personality Traits" are
very important to take into consideration when developing new products or even
just trying to recreate an already existing product.
Determinants of
Personality
Personality does not evolved by a single factor. It is a mixture
of a lot of things. Some of those factors are psychological, some are physical,
some are biological and some are even hereditary. Some of the basic factors
that affects personality are:
1. Brain: Brain is one of the most important factors of
personality determinant. It is generally believed that the father and the child
adopt almost the same type of brain stimulation and the later differences are
the result of the environment in which the child has been grown up. Electrical
Stimulation of the Brain (ESB) and Split Brain Psychology (SBP) and
the outcomes of genetic transmissions and are the tools that are used by the
management of any organization to mould and amend the employee’s behavior to a more
positive and proper one.
2. Physical Factors: One of the most important factors in
determining personality is the ‘Physical
Characteristics’ of
an individual. It is believed that this factor plays a vital role in
determining one’s behavior in any organization. Physical features may involve
the height of a person (short or tall), his color (white or black), his health
status (fat or skinny) and his beauty (handsome or ugly). These factors are
involved when interacting with any other person and thus contribute in the
personality development in many ways.
3. Social Factors: Social factors also
play a vital role in determining one’s personality. The things that revolve and
evolve around us on a regular basis determine our personality. The society that
we live in, the cultural environment that we face daily, the community we get
interacted to, all are included in this factor. Relationships, co-ordination,
co-operation, interaction, environment in the family, organizations,
workplaces, communities, societies all contribute in way or another as
personality determinants.
4. Cultural and Religious Factors: The culture in which one lives
in, that may involve traditional practices, norms, customs, procedures, rules
and regulations, precedents and values, all are important determinants of
personality. Moreover, the creed, religion and believes are also very important
factors of personality determinants.
5. Heredity: Heredity is another factor determining human
personality. Some of the similarities in man’s personality are said to be due
to his common heredity. Every human group inherits the same general set of
biological needs and capacities. These common needs and capacities explain some
of our similarities in personality. Man originates from the union of male and female
germ cells into a single cell which is formed at the moment of conception.