Factors Which

Influence

Consumer Choice

What is a Consumer?

What is a Consumer?• A consumer is:

– someone who buys goods• food, clothes, mobile phones, books, magazines, appliances, from a shop or other source.

– or services:• electrician, technician, hairdresser, beautician, bus driver, or travel agent.

for their personal use.

Black Friday Video

• We Americans are good at being consumers…

What influences what we buy?

• With neighbors:– write down things that

affect the things you buy.

– Why do you buy the things that you do?

Personal Factors• Needs - essential

items: e.g. food, clothes, etc

• Wants - something one can live without: e.g. another pair of shoes, a TV in the bedroom

• Likes/dislikes - personal taste or preferences

• Time available - time to shop around, time to do household chores and/or cook, time to travel

• Values - what is personally important in life

• Emotions/mood - how one feels

• Knowledge – the background information one has about the product or service

• Hobbies – specialist equipment for hobbies

Personal Factors

Social Factors

• Family – likes and dislikes may be passed on to children

• Friends - likes and dislikes may be passed on; wanting to have the same

• Other people – recommendations that help to make decisions

• Trends – things which are fashionable

• Entertainment options – CD’s, DVD’s, parties, family outings, cinema, sports, holidays

• Gender – norms for products and services; what is considered feminine/masculine

• Age – different age groups have different interests, therefore different wants

Social Factors

Economic Factors

• General personal/family income

• What one can afford at the time of purchase

• Credit cards available

• Value for money • Special offers• Reduced price (sales)• Hire purchase options – buy

now pay later• Free credit options –

e.g. No interest paid in first 12 months

Environmental Factors

• Buying products which can be reused – e.g. washable lunch boxes rather than a plastic bag

• Energy efficient products – e.g. light bulbs, appliances

• Water-saving products - e.g. certain dishwashers and automatic washing machines

• CFC-free products – e.g. buying appliances and aerosols (sprays) which are ozone-friendly

• Recyclable packaging

• Biodegradable packaging

• Items not tested on animals – e.g. personal care products

• Lifestyle – making consumption choices to promote sustainable development

Environmental Factors

• To bribe, encourage or reward someone

• Emotions – buying an item to make oneself feel good

• Celebrations – extra money spent on special occasions; treats

• Advertisements – Use different strategies to motivate consumers to buy

Psychological Factors

In summation:

• LOTS of things affect what and why you buy things.

• What’s important:– Being able to overcome bias/influence

and prioritize your wants and needs

How do other people affect what you buy?

How do other people affect what you buy?

• Advertisers– Use psychology to get you to buy things

you don’t need or didn’t want• Social pressure (“keeping up with the

Jones”)– Fads, media, or friends get you to spend

more than you intended to on clothing, cars, etc.

Collage Assignment

• Farrand Folder– Consumers,

Banking, and Checking

– 12 – “I Want That Collage”

Psychological Factors

• Planned buying – buying goods and services when all options have been considered; often to fulfil a need, but could also be a want

• Impulse buying – buying something on the spur of the moment, without consideration of need or options available