What are the factors that determine consumer behaviour?
So basically I will start answering this question with a question.lets say you going to a mall because you want to buy some clothes and you want to go to grocery shop as well to buy some groceries.So first I am going to take example of shopping. You will shop your clothes keeping in mind one thing constant that you have to manage the budget for grocery shopping As well.The first factor determined isPrice- or you can say moneythen you will roam a while to lifestyle or shopperstop and will look for options again keeping many things in mindsuch as:-quality, fabric( which means you’rd behaviour is constantly thinking about quality and the durability of the product), then pattern, color, prints, getting a better product at lesser price from other brand, thinking that you might get discount from online than offline shopping (so you will jot down the product details and youll search immediately in ur mobile shopping apps you have installed) if you'll find a better deal for the same product your behaviour to buy offline is negative and to buy online is positive and if you are not getting that product online you will buy it from the store right that moment.Similarl, your grocery shopping is also determined by the offers supermarkets are providing, your budget, your requirement, comparison than the Kirana stores near to your place, comparison than again online option such Grofer etc, availability of the exact brand you looking for your kitchen.therefore, this way many factors determine the consumer behaviour right from the needs till the end purchase.There is one more concept called post-purchase consumer behaviour which analyse and study the behaviour and pattern of consumers pos purchase behaviour, psychology. This is to improvise the customer relationshi managemen to induce and tap more customers.I hope this example helped you to put yourself in real time example and imagine and think of your own as a consumer and study your own behaviour before buying, while buying and after you purchase the good or service.
How does social class impacts consumer behavior?
Social class is how society makes a division based on social and economic status.Consumer behavoir is how individual or groups selects, secure and use products, services and experiences to satisfy a need.An example could be a “yuppie”, a well-paid young middle class professional with a luxurious lifestyle - and on the other hand a homeless man living on the streets. Which is a contrast also seen in the book “American Psycho” - in that way litterature is a great way of exemplifying ideas and ideal types.Anyway, social class - and perhaps the stigmatization that follows - can certainly affect the consumer. As to how - that is a very broad question. It all depends on the society, the social groups you spend time with, the social heritage we get from our parents, our education and the peers we have throughout our lives.If we look at the economic status, a tendency is that the bigger economic capital, the more we spend. With a lot of money we usually buy lxurious cars, designer goods and generally use a lot of money. But it doesn’t always work that way - there are a lot of factors that can control what direction we go in life. Social status also have a lot to do with that. Social status can be made by achievements - but can also be determined by an inherited position - as we see in the caste system in India.In conclusion social class can affect all parts of our actions - but doesn’t necessarily mean everything. It could make people buy a certain brand because it’s well regarded in their social circle, it could make people buy cheap products because of their economic background. It could also make people take a stance against the capitalist, consumer-controlled society completely. It all depends on a lot of factors in our lives.If you are particularly interested in consumer culture I would suggest that you read about the sociologist Georg Simmel.
What is consumer behavior?
According to the books I have read consumer behaviour is the study of consumers and the processes they use to choose, use (consume), and dispose of products and services. A more in depth definition will also include how that impacts the world. Consumer behavior incorporates ideas from several sciences including psychology, biology, chemistry and economics.All marketing decisions are based on assumptions and knowledge of consumer behavior.
What are social factors in consumer behaviour? What are some examples?
When it comes to consumer behavior, the following social factors play a huge role:1. Reference GroupsBasically, reference groups are people you may compare yourself with, or whose opinions you may use as a reference.Family and friends are great examples of primary reference groups. Let’s say you’re looking at a brand of car to buy. More often than not, you would ask them first what you think about your choices. The fact that you also hang out with these people all the time also means that your buying decisions are already being influenced. Whatever brands they use, you would probably use yourself.There are also secondary reference groups that could influence consumer behavior. These are people you may not be directly related to, but whose opinions could bear some weight in your decision-making.The people in a civic group you joined, for example, could affect the way you choose the products you buy. The religious group you belong to or some common interest social media groups you joined are also great examples.2. Role in the SocietyEverybody has a role in the society. This also affects one’s behavior when it comes to the products and services they choose.A CEO, for example, would probably have very different choices from high school students when it comes to the kind of gadgets they buy. The former would look for something that has a more executive appeal to it, something that would help them become more productive. As for the latter, they would probably go for trends over function.3. Social StatusSocial status defines how much a person is able to spend on the products and services they need. For example, someone from the lower class may hope for high end services, but would probably settle for something cheaper and within their budget. On the flipside, somebody from the upper class would probably go for more expensive choices.Hope this helps!
How does consumer spending drive the economy?
A lot of the US economy consists of buying and selling things that are consumed. Sometimes the product is consumed as quickly as a Big Mac. Sometimes the product lasts as long as a new car. And some consumer products, like refrigerators or washing machines, may last decades. I often hear reports on 'consumer spending' or 'consumer confidence' state that consumer spending is 70% of the US economy. Maybe the 70% is inflated by including a lot of long term purchases. Maybe it's only 40%. Either way, it's a lot. And a lot of that spending is discretionary. E.g., you can decide whether to spend a couple of thousand dollars getting your car's transmission repaired, or you can decide to spend a few tens of thousands on a new car. Or you can decide to spend some intermediate amount on a used car. And those choices affect the lives of a lot of other people - auto mechanics, auto makers, used car salesmen, ...So, when consumers spend more or less money, the rest of the economy thrives or struggles. But consumer spending isn't just a cause, driving the rest of the economy. It's also an effect, dependent on the rest of the economy. When consumers suddenly spend less, it's usually because they lost their jobs, or their homes lost value, or they couldn't get a loan, or they used up their savings paying medical bills, or ... Long term, whether consumers have money to spend depends on how much real value their jobs create. The economy has so many interconnected feedback loops that it's usually a mistake to think about just one of them in isolation.
How does social class affect buying behavior?
How does social class affect buying behavior? It dictates it!Think about it. For a person who earns around $2,000 a month, they would spend the entire, or at least, most of the $2,000 on things they really need, then buy the extras or the non-important stuff if they have something left over. But for someone worth, say, $1M, using $2,000 on an extravagant meal or a new gadget will not be an issue. Basically, the higher a person earns, the bigger their capacity to spend on things that are considered as non-essential.The same can also be said about a person’s educational attainment, or their financial know-how. You might argue that there are people from lower classes who find it easy to spend on things that are not important sometimes. In this case, financial literacy is a clear factor. People who know more about how money works are usually able to handle money more efficiently. They may look at ways to invest the money they have instead of spending it on goods or services.Hope this helps!
Which one is more effective in affecting the economy: the Fiscal Policy or the Monetary Policy?
Which one is more effective in affecting the economy: the Fiscal Policy or the Monetary Policy? Please let me know your opinion and tell me why you feel this way.
Difference between macro economics and micro economics?
Macroeconomics The field of economics that studies the behavior of the aggregate economy. Macroeconomics examines economy-wide phenomena such as changes in unemployment, national income, rate of growth, gross domestic product, inflation and price levels. Macroeconomics is focused on the movement and trends in the economy as a whole, while in microeconomics the focus is placed on factors that affect the decisions made by firms and individuals. The factors that are studied by macro and micro will often influence each other, such as the current level of unemployment in the economy as a whole will affect the supply of workers which an oil company can hire from, for example. //////////////////////////////////// Microeconomics: The branch of economics that analyzes the market behavior of individual consumers and firms in an attempt to understand the decision-making process of firms and households. It is concerned with the interaction between individual buyers and sellers and the factors that influence the choices made by buyers and sellers. In particular, microeconomics focuses on patterns of supply and demand and the determination of price and output in individual markets (e.g. coffee industry). The field of economics is broken down into two distinct areas of study: microeconomics and macroeconomics. Microeconomics looks at the smaller picture and focuses more on basic theories of supply and demand and how individual businesses decide how much of something to produce and how much to charge for it. People who have any desire to start their own business or who want to learn the rationale behind the pricing of particular products and services would be more interested in this area. Macroeconomics, on the other hand, looks at the big picture (hence "macro"). It focuses on the national economy as a whole and provides a basic knowledge of how things work in the business world. For example, people who study this branch of economics would be able to interpret the latest Gross Domestic Product figures or explain why a 6% rate of unemployment is not necessarily a bad thing. Thus, for an overall perspective of how the entire economy works, you need to have an understanding of economics at both the micro and macro levels.