There are several factors that affect how customers buy. Understanding
what drives customers buying patterns is a potent tool to fight off competition.
It is also an effective tool for developing a marketing strategy to grow market
share.
Humans are emotional beings and our emotions can never really
be separated from our behavior. In essence, it is my expert opinion that there
is a correlation between how we feel and how we buy. When we buy we are bound
to consider how the product or service we buy affects our feelings. For
instance we may consider whether the service/product we buy equates to our social
standing in society, our financial capabilities, how our loved ones, friends or
neighbors feel, our religious beliefs, our technical expectations, individual
pleasures or even our affiliations amongst others.
A Customer’s
buying behavior relates to how individuals and organizations select, buy, use
and dispose of goods and services to satisfy their needs and wants. Our needs
and wants are influenced by several factors which we may either be consciously or
unconsciously aware of.
Customer
buying behavior/pattern is influenced by 3 factors:
Understanding these factors will enable you tailor your
products and services to suit them. When you understand how to take advantage
of these factors and apply them to your business, it is my belief that you will
experience an exponential growth in your sales.
The Cultural
Factor
Culture has
been widely described as the way and life of a people. It is a fundamental
determinant of a customer’s wants and behavior. It is a fact that the
environment we live in plays a large role in influencing our customers way of
life and indeed customer buying patterns. Cultures are often defined by
geographic locations, nationalities, ethnicity, race, religions, professions,
groups, organizations etc. It is therefore no wonder that smart companies
design specialized marketing programs, goods and services to meet the demand of
sub cultural groups which have grown large enough to form a sizeable portion of
the market share. Organizations must therefore redesign their products and
services to suit the peculiarities of all markets while taking into
consideration differences attached to geographical locations, nationalities and
the like. Marketing efforts should also be packed to demonstrate the
peculiarities of a product or service to the target markets culture.
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.
Personal Factors
Personal
factors such as age, color, size, habits, stage in life cycle, occupation,
personality, economic circumstances and personal lifestyle affects a customers
buying pattern.
Age: As individuals advance in age, the
products and services they will require will change. For instance, a female
entering the age of puberty will require sanitary towels. In addition, it is
arguably true that a customer’s preferences for things such as furniture,
clothes etc. will change as they advance in age. Color: Body color and customer
preference for color will affect buying decisions such as body creams,
cosmetics, etc.
Size: Size will affect buying decisions
such as diet choices, the need for recreational activities such as gymnasiums
etc.
Personal Lifestyles and Habits: Personality is psychological traits
that affect a customer’s lifestyle, habit, self-concept and ultimately the
customers buying behavior. These psychological traits form characters
consistent with the customer. A customer will most likely choose a brand which
is consistent with their character, lifestyle and personal belief.
Occupation and Economic Circumstances: A customer’s occupation will play an
important role in influencing their buying pattern. For instance an engineer or
foreman will need protective equipment’s such as booths, gloves, helmets etc.
while a banker will most likely be dressed in suits, corporate shoes etc. Also
a petroleum company is most likely to buy an SUV for its operations on the oil
field while a financial company such as a bank will most likely purchase
something smaller and classier like a Toyota corolla.
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