Tuesday, September 23, 2014

Understanding Customer Behavior - Part 2


Customer behavior relates to how individuals and organizations select, buy, use and dispose of goods and services to satisfy their needs and wants. Customer buying behavior is influenced by a number of factors which include cultural, social and personal factors. 



Social Factors:
Social factors which affect customer buying patterns include reference groups, family, social roles and status.
Reference Groups:
Reference groups may have direct or indirect influence on a customer’s behavior. Groups having a direct influence include family, friends, neighbors and co-workers. Relationships with sub groups tend to be informal and continuous. However, groups having an indirect influence on a customer’s behavior include religious groups, professional groups etc. Interactions with such groups tend to be more formal in nature. Reference groups have the power to influence members to adopt new behaviors, lifestyles and attitudes. Influencing the group’s opinion leaders is a good way to exercise control over members of the group.

 Family:
Family members are arguably the most influential group on a customer’s behavior. As people are born and they grow, the family they belong to plays an important role in influencing their attitude towards society. Buying patterns are also greatly influenced by one’s spouse and children as well as the social status of the family. The likes and dislikes of individual members of a family have the power to influence the buying patterns of other members in the family.  For instance, mothers are traditionally known to influence buying patterns where food items are concerned. Also children may sometimes play an important role in influencing which recreational centers the family visits. Identifying who is most interested in a product within a family and purposefully influencing that person or group can help influence the buying patterns of the entire members of the family.

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