5 Factors Influencing Consumer Behaviour (+ Buying Decisions)

Summary

In this insightful video, Stephen Houraghan from Brand Master Academy explores five key factors influencing consumer behavior: psychological, social, cultural, economic, and personal factors. He delves into how motivation, perception, learning, and attitudes shape buying decisions, and highlights the importance of understanding these factors to effectively influence and stimulate consumer choices. The video is a valuable resource for anyone looking to build strong brands that resonate with their audience.

Takeaways

• 🚀 Building a brand requires understanding consumer behavior to influence buying decisions effectively.
• 🔍 Five core factors influence consumer behavior: psychological, social, cultural, economic, and personal factors.
• 🧠 Psychological factors include motivation, perceptions, learning, and attitudes and beliefs that drive consumer decisions.
• 🏆 Maslow's hierarchy of needs helps understand motivation levels and their impact on consumer behavior.
• 👥 Social factors such as family approval and reference groups significantly affect purchasing choices.
• 🌐 Cultural influences, including values, preferences, and traditions, shape consumer behavior and brand perception.
• 🏛 Subcultures within a larger culture can have specific beliefs that differ and are important for targeted marketing.
• 💼 Economic factors like personal and family income, income expectations, and savings plans determine spending power.
• 👛 Personal factors such as age, occupation, and lifestyle play a crucial role in shaping an individual's buying decisions.
• 🤝 Aligning brand messaging with consumers' deep-seated beliefs can create a powerful emotional connection and brand loyalty.
• 🛍️ A positive brand experience can reinforce buying behaviors, while a negative one can deter future purchases.

Q & A

What is the main topic of the video by Stephen Houraghan?

The main topic of the video is the five factors influencing consumer behavior, which helps to understand what drives customers to make buying decisions.

What is the purpose of the 'Pro Brand Strategy Blueprint' mentioned in the video?

The 'Pro Brand Strategy Blueprint' is a free download designed to help viewers fast track their results in building brands that go beyond visuals using strategy, psychology, and creative thinking.

Can you explain the concept of Maslow's hierarchy of needs as it relates to consumer motivation?

Maslow's hierarchy of needs outlines five levels of human needs, starting with basic needs like food and shelter at the bottom and self-actualization at the top. It suggests that a person's motivation to buy is influenced by which level of needs they are currently focused on fulfilling.

How do perceptions influence consumer behavior according to the video?

Perceptions are formed based on experiences and can become reputations, which in turn become brand equity. Positive perceptions of a brand can lead to a willingness to buy or pay more for a brand than its competitors.

What role does learning play in shaping consumer buying decisions?

Learning through experiences can change buying behaviors and influence future decisions. A negative brand experience, for example, can lead to a change in purchasing decisions in the future.

How are attitudes and beliefs significant in the decision-making process of consumers?

Attitudes and beliefs are powerful because they are often deeply rooted in emotions or traditions and are hard to change. They can significantly influence the products and brands that consumers choose, as they tend to align with these beliefs.

Why are social factors important in influencing consumer behavior?

Social factors are important because humans are social creatures who value the opinions of their peers and seek a sense of belonging. Social standing and the perceptions of others can greatly affect purchasing decisions.

What is the impact of family on an individual's buying decisions?

Family can serve as a foundation and reference point for many purchasing decisions. Approval from family members can significantly influence whether an individual chooses to buy a particular product or brand.

How do cultural and traditional factors shape consumer behavior?

Cultural and traditional factors shape basic values, preferences, and behavioral patterns, which in turn influence purchasing decisions. Subcultures within a larger culture can also have more specific beliefs that affect buying choices.

What economic factors are discussed in the video that can affect consumer buying decisions?

The video discusses personal income, family income, income expectations, and savings plans as economic factors that can determine the means available to consumers and thus influence their buying decisions.

Can you describe the personal factors that influence consumer buying decisions as mentioned in the video?

Personal factors include age, occupation, and lifestyle. These factors provide insight into a consumer's life and can affect how they make buying decisions, such as what products they are likely to purchase based on their stage in life or their professional and personal interests.