The decisions consumers make regarding purchases are highly impacted by personal factors, and marketers need to recognize this when planning their marketing strategies. Not only do an individual’s beliefs, values, attitudes, and preferences play a part in what they purchase but personal factors such as age, gender, lifestyle choices, job roles, and income can also have an impact.
To understand how personal factors shape consumer behavior, let’s look at a few examples –
- Age can significantly impact one’s shopping decisions. While younger generations may find the latest trends and cutting-edge technologies appealing, older consumers may prefer timeless classics for their classic, ageless appeal.
- Your lifestyle can be a critical factor in deciding what to buy. Those who lead an active lifestyle are more likely to invest in outdoor sporting goods, while those with a hectic work life will gravitate toward convenience products
- Your occupation can have an incredible impact on their buying behavior. High-income professions, such as doctors and lawyers, are more likely to be drawn toward expensive designer brands that symbolize their success. In contrast, individuals with lower incomes tend to search for economical alternatives.
Personal Factors that Influence Consumer Behavior
1) Occupation and its impact On Consumer Behavior
Position and profession have a major impact on our daily lives; from the time we spend to lifestyle choices in clothing, food, and entertainment. An individual’s occupation profoundly impacts the products and brands they choose to purchase.
Occupation is also one of the important economic factors. Depending on the profession, individuals have different levels of disposable income which ultimately influences their purchasing decisions. Disposable income refers to the amount an individual has remaining to spend after covering all necessary living costs, such as rent and groceries.
Executives in higher-paying positions are likely to make distinct consumer choices compared to those who work in retail or hospitality.
It is evident that the divide between blue-collar workers and executives exists from their distinct choices when purchasing apparel – while business suits are more suitable for executives, blue-collar workers usually lean towards tougher workwear.
Executives often have the luxury to spend their disposable income on upscale products, while blue-collar workers strive for value when selecting what items to purchase.
2) Age and Life Stage
Age and life stages are one of the most crucial personal factors influencing consumer behavior. Our preferences for food, fashion, and other items fluctuate based on our age throughout life. From furniture to recreation, what we pick is often associated with the stage of our lives.
Additionally, the family life cycle heavily factors into critical purchasing decisions. As families develop over time they pass through different stages that also shape their buying habits significantly.
Age and life stage play an important role in determining what a consumer may buy. Teenagers are often drawn to bright, vibrant colors while middle-aged or elderly individuals will typically lean toward more subdued designs.
Young adults tend to be drawn towards cutting-edge technology, while those nearer retirement prefer more functional items such as comfortable reading chairs or kitchenware. Conversely, parents of young children are likely to seek educational toys and furniture that are suitable for their kids; whereas those without children may lack the same enthusiasm.
3) Economic condition
Understanding the financial situation of an individual has a major influence on their product preference and shopping habits. Economic factors decide the purchasing power of an individual with higher disposable income and another individual with a weaker economic situation. Higher family income influences consumer buying behavior, as there will be more money available to spend.
Consequently, marketers are invested in tracking consumer spending, personal income, savings accounts, and interest rates to stay ahead of the curve. An individual’s buying capacity is related directly to their income. What someone earns each month determines how much they can spend, and on what goods or services. When someone’s economic condition improves, his or her consumer credit as well as purchasing power increases simultaneously.
During recessions, the spending power of customers decreases and the demand for luxury items drops significantly. Rarely would someone from a low-income background indulge in the extravagances of designer clothing and watches; rather, they are more likely to invest their money into groceries or other necessities for survival.
An individual’s life choices, ethics, heritage, and background all affect the way they choose to live life — and this contributes significantly to their purchasing habits. LifeStyle is an influential factor in consumer buying behavior that must not be overlooked. It comprises different social factors like reference groups, cultural factors, etc that decide buying behavior of an individual or any particular community.
Individuals within the same subculture, social class, or occupation can often lead vastly different lifestyles. To illustrate this point, two doctors may not share a preference for their lifestyle. Lifestyle refers to someone’s way of living determined by psychographics – including behavioral traits and decisions they make in life.
While one doctor may prefer to save their funds for a vacation, another might delight in the lavishness of a high-end car or an opulent Rolex watch. The lifestyle choices each doc makes are often dependent on how they choose to prioritize their spending. A healthy lifestyle can be an integral feature of a rich doctor’s family members while a rich businessman might not follow a similar sort of healthy lifestyle.
5) Personality and self-concept
Every person is distinct, and those individual personality traits can highly influence buying behavior. Personality encompasses the distinguishing psychological qualities that set apart an individual or a group of people. Your idea of yourself can profoundly affect the items you purchase. This self-concept is connected to how an individual sees themselves and shapes their understanding of, and conversations with, others in society. These two are the key psychological factors that affect buying decisions of consumers.
Personality is often characterized by traits such as assertiveness, extroversion, independence, protectiveness, ability to adjust, and aggressiveness. Self-confidence also plays a major role when determining personality. A brand personality is the combination of human attributes that can be associated with a particular company. Studies have found five traits to define it –
- Sincerity – Genuine, honest, and sunny
- Excitement – Audacious, spirited, and progressive
- Competence – Dependable, smart, and successful
- Sophistication – Stylish, aristocratic, and attractive
- Ruggedness – Rugged outdoorsy type
Individuals with strong self-confidence and the ability to tune out outside influences are more likely to purchase a product that is unique or stands apart from the competition. Their own beliefs, values, and opinions will be what drive their decisions when it comes time to make a buying choice – they’re not swayed by trends or popular opinion.
Conversely, those who are more considerate of the social environment may base their purchase decisions on what is popular among people in their circle.
Why analyze Personal Factors influencing Consumer Buying behavior?
To gain a better grasp of the reasons and stimulus behind customers’ buying decisions, you must thoroughly review personal factors. Investigating such elements can provide your organization with an advantage when it comes to recognizing why people pick some products or services over others, aiding you in tailoring the appropriate message to the correct audience.
- There are numerous aspects to be taken into account when examining consumer purchasing behavior, including but not limited to lifestyle, income level, age, and life cycle stage.
- As people move through different phases in their lives, their buying habits transition significantly as well; thus understanding these elements can bring great value and provide you with the ability to adapt marketing plans and merchandise offerings accordingly.
- It is essential to recognize that psychological characteristics and attitudes toward your brand play a key role in customer purchasing decisions.
- Examining how these factors influence your intended audience can help you build better campaigns that yield the desired outcomes.
To comprehend what motivates a customer to make particular buying decisions, marketers and advertisers need to recognize the various personal factors associated with this behavior.
Age, gender, income level, and lifestyle — are all aspects that shape an individual’s tastes and values. Consequently, by understanding how such variables contribute to consumer choices we will be more successful in creating promotional plans tailored specifically for our target market.
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