The top 5 factors that influence consumer buying decisions
Earlier, encouraging people to buy was pretty easy due to traditional ads but the situation has turned on its head because people now consider various factors before making a purchase.
In the case of millennials, things seem more difficult because they compare the same product on multiple e-commerce sites and also seek coupons before making the payment. And this is a bitter pill to swallow for business owners because now they have to go to greater lengths to boost sales growth.
Let’s look closely at the top 5 factors that influence consumers’ buying decisions.
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Since the number of brands is increasing rapidly in the e-commerce world, consumers are exposed to an overwhelming range of products. Somewhere, it creates a problem while making a buying decision. To overcome this, they check product reviews to learn about the shopping experience of past customers.?
Brands shouldn’t take this factor for granted. Therefore, it is imperative for them to keep increasing the quality of their products and services. It will help to secure outstanding reviews and build brand loyalty.
There was a time when product recommendations were taken seriously but that’s not the case anymore. The reason is that brands run loyalty programs to turn customers into brand advocates. Referrers get a discount coupon upon a successful referral. However, referees who buy products sometimes get an awful experience. In short, WOM (word of mouth) is not as effective as it was before.??
Nowadays, consumers check what is being said on social networking sites like Twitter, Facebook, Instagram, etc. In case they find the brand trustworthy, they proceed with shopping.?
Hence, it is vital to be active on social media channels and engage with commenters in a casual yet respectful manner to build an unblemished brand image.?
Another factor that influences consumers’ buying decisions significantly is their purchasing preferences. There are times when online business owners witness low sales despite offering top-of-the-line products. It happens because their products don’t match consumers’ preferences related to the shipping time, pricing, lifestyle, etc.
Thus, it is crucial for brands to understand customer demographics and develop their strategies accordingly. And it would be great if they reduce their international shipping rates as it will attract prospects globally and encourage them to purchase.?
Consumers’ buying decisions are strongly influenced by cultural factors, and it is significant because if a person belongs to a particular community, it is very likely that his/her buying decision relies on the culture followed by that particular community.
For marketers, it is paramount to understand that culture varies from one country to another. Hence, they have to be at their best while analyzing cultural factors. It will help them to come up with better strategies to boost sales.
Here, we would like to give a vivid example of McDonald’s India, which has overhauled its menu to match tastes and preferences. Besides building a strong brand image and making customer acquisition easier, this move helped to avoid the potential backlash that could have been triggered due to a menu containing beef-related items.
In India, cows are worshiped wholeheartedly. Thus, McDonald’s does not even try to sell beef. To take care of non-vegetarian customers, it frequently introduces new chicken meals and snacks.
Well, when such a giant company can go the extra mile to meet customer expectations and secure better sales, you shouldn’t be hesitating while dropping the old-school approach.?
Buying decisions also vary according to the age of consumers. For example, millennials often purchase from their favorite brands. They make a quick purchase decision after comparing the price on 2 to 3 e-commerce websites and checking the reviews.
On the other hand, consumers falling under the category of Generation X often do a comprehensive research before making a buying decision. There could be any reason behind this, for instance, unfamiliarity with the brand, fear of online fraud, etc. Owing to this, they take decisions quite late or abandon the cart in the worst scenarios.
In addition, consumers’ buying behavior changes with the passage of time. Therefore, it is extremely important for brands to keep people of all ages in mind while working on their products and services.
In this day and age, understanding customers’ needs is fundamental for brands to develop valuable products and services. Otherwise, it’ll be next to impossible for them to improve their dropping sales figures and accomplish desired profits.
We have discussed the top 5 reasons that influence consumers’ buying decisions significantly, thus they should be kept in mind while developing new products and services.
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