What are the key factors that influence consumer decision making and behavior?

1 Motivation and goals

Motivation is the driving force behind consumer behavior, as it determines the needs and wants that customers seek to fulfill with their purchases. Goals are the desired outcomes that customers hope to achieve with their consumption. Different types of motivation and goals can affect how customers evaluate and choose products or services. For example, some customers may be motivated by functional needs, such as quality, convenience, or price, while others may be motivated by emotional needs, such as status, identity, or pleasure.

2 Perception and attention

Perception is the process of selecting, organizing, and interpreting sensory information, while attention is the focus of mental resources on relevant stimuli. Perception and attention can influence consumer behavior by affecting how customers perceive and process information about products or services. For example, some customers may be influenced by the color, shape, or packaging of a product, while others may be influenced by the brand name, slogan, or logo. Customers may also pay more attention to certain sources of information, such as advertisements, reviews, or word-of-mouth, depending on their preferences and trust.

3 Attitude and beliefs

Attitude is the overall evaluation of a product or service, while beliefs are the specific thoughts or opinions that customers have about a product or service. Attitude and beliefs can influence consumer behavior by affecting how customers form and change their preferences and intentions. For example, some customers may have a positive attitude and belief toward a product or service because of their previous experience, loyalty, or recommendation, while others may have a negative attitude and belief because of their dissatisfaction, complaint, or rumor.

4 Learning and memory

Learning is the process of acquiring and modifying knowledge, skills, or behaviors, while memory is the storage and retrieval of information. Learning and memory can influence consumer behavior by affecting how customers recall and use information about products or services. For example, some customers may learn and remember a product or service because of its distinctive features, benefits, or associations, while others may forget or confuse a product or service because of its similarity, complexity, or irrelevance.

5 Social and cultural factors

Social and cultural factors are the external influences that shape the values, norms, and behaviors of customers. Social factors include the groups, networks, and roles that customers belong to or interact with, such as family, friends, peers, or celebrities. Cultural factors include the beliefs, traditions, and customs that customers share or follow, such as religion, ethnicity, or nationality. Social and cultural factors can influence consumer behavior by affecting how customers conform to or deviate from the expectations and preferences of others.

6 Situational and personal factors

Situational and personal factors are the internal and external circumstances that affect the specific context of consumption. Situational factors include the time, place, mood, or occasion of consumption, such as season, location, or event. Personal factors include the characteristics, traits, or states of customers, such as age, gender, personality, or mood. Situational and personal factors can influence consumer behavior by affecting how customers perceive and respond to the opportunities and constraints of consumption.