case study on factors influencing consumer behaviour

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3.2: Factors That Influence Consumer Buying Behavior

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Learning Objectives

By the end of this section, you will be able to:

• List and describe the cultural factors that influence consumer buying behavior.
• Explain the social factors that impact consumer buying behavior.
• Discuss the personal factors that influence consumer buying behavior.
• Describe the psychological factors that influence consumer buying behavior.
• Explain situational factors that impact consumer buying behavior.

Cultural Factors That Influence Consumer Buying Behavior

Why people buy isn’t always a straightforward question. Think about the last time you bought a car, a bike, or other item. Why did you buy that specific make and model? Was it because its sleek style made you feel good about yourself? Perhaps you bought a particular brand because someone in your family bought the same brand. These are just a couple of examples of some of the factors that influence consumer buying behavior. Let’s examine some others.

Cultural factors comprise a set of values or ideologies of a particular community or group of individuals. These can include culture, subcultures, social class, and gender as outlined in Figure 3.4.

Culture refers to the values, ideas, and attitudes that are learned and shared among members of a group. Human behavior is largely learned. When you were a child, you learned basic values, perceptions, wants, and behaviors from your family and other external influences like the schools and churches you attended. Consider how these values and attitudes have shaped your buying behavior. For example, in a traditional Hindu wedding in India, a bride may wear red lehenga to the wedding, whereas Christian brides typically wear white. In India, widows are expected to wear white, whereas widows in the United States and other parts of the world generally wear more somber colors to a funeral. 2

A subculture is a group of people, such as environmentalists or bodybuilders, who share a set of values. Ethnic and racial groups share the language, food, and culture of their heritage. Other subcultures, like the biker culture, which revolves around a dedication to motorcycles, are united by shared experiences. The Amish subculture is known for its conservative beliefs and reluctance to adapt to modern technology. Think about what subculture(s) you may belong to and how they influence your buying behavior. For example, hip-hop music has long been associated with fashion, particularly sneakers. Run DMC’s 1986 hit “My Adidas” led to the first endorsement deal between a fashion brand and a musical act, setting the stage for lucrative partnerships spanning the decades since—Master P with Converse , Jay-Z and 50 Cent with Reebok , Missy Elliott and Big Sean with Adidas , and Drake with Nike .

Link to Learning: Failures and Inspirations

Cultural factors play a major role in determining how best to market to consumers. There are numerous examples of company efforts that failed because they did not reflect an understanding of the culture in a particular market. Watch this CNBC video on why Starbucks failed in Australia and read this article about how Coca-Cola and PepsiCo failed when they first moved into the Chinese market.

Also check out this CNBC video about why 7-Eleven failed in Indonesia.

Failures are always important because they come with learned knowledge, and if you understand the WHY behind the failure, the learning can lead to shifts in strategy and possible success. Read the inspiring story behind Run DMC ’s revolutionary market deal with Adidas and how it opened the door for current artists like 50 Cent, Jay-Z, and Puffy.

For more success stories, check out these videos about numerous companies that got it right . Examples include stories from Rihanna’s Fenty beauty line, Adobe ’s “When I See Black” ad, Bumble ’s “Find Me on Bumble” campaign, and many more!

Your social class is also an important influence on your buying behavior. Sociologists base definitions of social class on several different factors, including income, occupation, and education. While there is disagreement on the number of social classes defined by income in the United States, many sociologists suggest five social classes: upper class, upper-middle class, lower-middle class, working class, and the economically disadvantaged. 3 Income is largely defined by disposable income (the money you have left to spend or save after taxes are deducted), but its influence goes beyond just dollars, euros, yen, etc. For example, a lower-middle-class individual might focus primarily on price when considering a product, whereas an upper-middle-class person might consider product quality and features before price. However, you also can be influenced by a social class to which you don’t belong but by which you want to be accepted. Have you ever spent money you really didn’t have on brand name running shoes or a designer purse because that’s what your friends have?

Finally, your gender plays an important role in your buying behavior. People of different genders not only want different products as a result of their upbringing and socialization, but they approach shopping itself with different motives, perspectives, and considerations. While it’s always dangerous to stereotype, those who identify as male typically follow a utilitarian, more logic-based approach when shopping. They want a quick, effortless shopping experience. Those who identify as female, on the other hand, make decisions on a more emotional level. Zappos considers these different motives and provides different layouts on their landing pages for different genders. While the “male” version focuses on providing clear navigation by product categories, the “female” version aims to sell on emotion. 4

Link to Learning: Behind the Gender Differences

Gender differences lead to different buying behaviors. Read this article about one such example, Birchbox , a hair care and skin care subscription service. For even more information, check out this article about the reasons for the differences , which include purpose, experience, brain make-up, and more. Interesting reads!

You can also watch this Gaby Barrios TED Talk. Barrios is a marketing expert who speaks about how targeting consumers based on gender is bad for business.

This humorous video from The Checkout, a TV show about consumer affairs, discusses gender marketing packaging decisions and their impact on your wallet.

Another video about fashion brands focuses on how their parent companies leverage gender strategies.

Careers In Marketing: Women in Marketing

Let’s look at gender from another angle—women advancing in marketing. Part of a series about jobs in marketing , this article examines equity in the world of marketing. Findings include data on gender balance and inequality, and guidance on ways to improve.

For an inspirational moment, be sure to read these heartwarming stories about six mothers of great marketers .

Social Factors That Influence Consumer Buying Behavior

Social factors are those factors that are prevalent in the society where the consumer lives. Every society is composed of individuals who have different preferences and behaviors, and these individuals influence the personal preferences of others in the society. Humans are social individuals, and the influences of people’s family, reference groups, and roles and status (refer to Figure 3.5) have a huge impact on their buying behavior.

Let’s first consider the influence of family . It is generally believed that most people pass through two families: a family of orientation (i.e., the family to which you were born or with whom you grew up) and a family of procreation (the family formed through marriage or cohabitation, including your spouse, partner, and/or children). Consider first the family of orientation. When you were growing up, whether or not you recognized it, you likely developed some degree of buying behavior through watching adult members of your household and probably tend to buy the same products or services as you grow older. Was your father a die-hard Chevy driver? If so, the chances are good that you’ll probably at least consider buying a Chevy, too. Now consider the influence that your spouse, partner, and/or children have on your buying behavior. You may want that Chevy pickup because that’s what your father drove, but your spouse or partner may subtly (or perhaps not so subtly) sway you toward a Chevy crossover SUV because it’s more practical with kids to transport to school, sports, and other activities.

Reference groups are those groups with which you like to be associated. These can be formal groups, such as members of a country club, church, or professional group, or informal groups of friends or acquaintances. These groups serve as role models and inspirations, and they influence what types of products you buy and which brands you choose. Reference groups are characterized by having opinion leaders—people who influence others. These opinion leaders aren’t necessarily higher-income or better educated, but others view them as having more expertise in a particular area. For example, a teenage girl may look to the opinion leader in her reference group of friends for fashion guidance, or a college student might aspire to getting an advanced degree from the same university as an admired professor. Social media influencers also play a role here. Consider the influence that celebrities like Kendall Jenner (with more than 217 million Instagram followers) 5 or Leo Messi (with over 310 million Instagram followers) 6 have on individuals.

All people assume different roles and status depending upon the groups, clubs, family, or organizations to which they belong. For example, a working mother who is taking classes at the local community college assumes three roles at varying times—that of an employee, a mother, and a student. Her buying decisions will be influenced by each of these roles at different times. When she is shopping for clothing, her purchases may be influenced by any or all of these roles—professional attire for the office, casual clothes for classes, or yoga pants for home.

Personal Factors That Impact Consumer Buying Behavior

Personal factors, such as your occupation, age and life cycle stage, economic situation, lifestyle, and personality and self-concept also play a major role in your buying behavior (refer to Figure 3.6). Let’s examine each of these in more detail.

Age is a major factor that influences buying behavior because consumer needs and wants change with age. Your buying habits as a teenager or twentysomething are likely to be vastly different from your buying habits in middle age and beyond. Consider the four generational cohorts currently comprising the consumer market:

• Baby boomers (born between 1946 and 1964) are currently in their 60s and 70s. This generational cohort is approximately 70 million people strong in the United States and accounts for $2.6 trillion in buying power, 7 so you can imagine its impact on the consumer market. What types of products would you expect baby boomers to buy? Key categories for this group of buyers include pharmacy and health care products, household goods and appliances, wine, books (both digital and physical), cosmetics, and skin care products. 8
• Generation X (born between 1965 and 1979/80) are currently in their 40s and 50s. This cohort is approximately 65 million strong 9 and generally has more spending power than younger generational cohorts because they’re at or reaching the peak of their careers, and many Gen Xers are dual-income families. 10 This makes them an optimal target for higher-end brands and convenience-related goods, like made-to-order or prepared meals from the grocery store.
• Generation Y , also known as Millennials , (born between 1981 and 1994/96) are currently in their 20s and 30s. This cohort is the largest generation group in the United States, with an estimated population of 72 million. 11 One interesting aspect of Millennial buying is that they shop sustainably. They shop for brands that produce items with natural ingredients and ethical production lines and sustainable goods in every sector, such as food, household cleaning products, linens, and clothes. 12
• Generation Z , also known as Zoomers , (born between 1997 and 2012) are currently in their teens to early 20s, and they are just starting to have an economic impact on the consumer market. Although over 67 million strong, 13 many Zoomers are still in school and living with their parents, and their discretionary spending is limited.

Marketing in Practice: Marketing to the Ages

Knowing how to speak to your target market is critical. Knowing how to frame your message to a Baby Boomer versus a Gen Xer is what makes marketers successful. Want to know how to speak to each group? Check out these articles about marketing to different age demographics and generational marketing .

Learn from real-world examples of how age-agnostic marketing can work.

Have you ever seen a commercial or advertisement that pulls on your heartstrings because it gets you reminiscing? Nostalgia is an impactful tool in marketing because it gives a feeling of meaning and comfort. Check out this online blog to learn more about the impact of nostalgia in marketing.

Likewise, your life cycle stage has a major influence on your buying habits. Consider the different buying choices you would make as a single person who is renting an apartment in an urban area versus the choices you would make as a homeowner in the suburbs with children. It should be noted, though, that age and life cycle stage can often be poor predictors of buying behavior. For example, some 40-year-olds are just starting their families, while others are sending their kids off to college. Still other 40-year-olds are single (or single again). Some 70-year-olds may fit the stereotype of a retired person with a fixed income; others are still active or perhaps still working, with plenty of disposable income.

Your economic situation (income) is a huge influence on your buying behavior. Higher income typically means higher disposable income, and that disposable income gives consumers more opportunity to spend on high-end products. Conversely, lower-income and middle-income consumers spend most of their income on basic needs such as groceries and clothing.

Your occupation is also a significant factor in your buying behavior because you tend to purchase things that are appropriate to your profession. For instance, a blue-collar worker is less likely to buy professional attire like business suits, whereas attorneys, accountants, and other white-collar workers may favor suits or business casual work clothes. There are even companies that specialize in work clothes for certain types of workers, such as health care professionals who buy scrubs or construction workers who buy steel-toed boots.

Your lifestyle reflects your attitudes and values. What do you consider to be your lifestyle? Do you strive to live an active, healthy lifestyle? If so, your purchasing decisions may focus on healthier food alternatives instead of fast food. Do you consider yourself to be a soccer parent? You may (perhaps reluctantly) forgo that sports car for a minivan in order to transport your kids to youth sporting events or other activities.

Your personality and self-concept are also important factors influencing your buying behavior. Personality is the characteristic patterns of thoughts, feelings, and behaviors that make a person unique. It’s believed that personality arises from within the individual and remains fairly consistent throughout life. 14 Some examples of the many personality traits people might have include things like self-confidence, individualism, extroversion, introversion, aggression, or competitiveness. Your personality greatly influences what you buy as well as when and how you use or consume products and services.

Perhaps even more importantly, as consumers, people tend to buy not only products they need but also those products or services that they perceive as being consistent with their “self-concept.” In other words, they generally want the products they buy to match or blend in with who they think they are. 15

Psychological Factors That Influence Consumer Buying Behavior

Your buying choices are further influenced by several major psychological factors, including motivation, perception, learning, feelings, beliefs, and attitudes (refer to Figure 3.7).

Let’s first consider how motivation affects your buying behavior. Motivation is the process that initiates, guides, and maintains goal-oriented behaviors. It’s the driving force behind your actions. One of the most widely known motivation theories is Maslow’s hierarchy of needs (see Figure 3.8).

Abraham Maslow asserted that all individuals have five needs, arranged from the most basic lower-level deficiency needs to the highest-level growth needs. As Figure 3.8 shows, physiological needs are at the most basic level and include things like adequate food, water, and shelter. Think about how marketers may try to appeal to consumers based on physiological needs. For example, Snickers ran a very successful ad campaign based on the slogan “You’re not you when you’re hungry.”

The second level is safety and security, the need to be safe from physical and psychological harm. Once again, consider just a few successful marketing campaigns that have focused on safety—“You’re in Good Hands with Allstate ” and Lysol ’s “Practice Healthy Habits” campaign with its tagline “What It Takes to Protect.”

The third level is belonging, or social needs. This level includes things like the need for emotional attachments, friendship, love, or belonging to community or church groups.

Esteem, the fourth level, includes such needs as recognition from others, taking pride in your education or work, awards, and/or prestige.

The highest level is self-actualization, which involves self-development and seeking challenges. For example, Nike ’s “Find Your Greatness” campaign was intended to spark greatness in ordinary people, not just professional athletes.

Link to Learning: Examples of Maslow’s Five Needs

Check out this Snickers' “You’re not you when you’re hungry” commercial, which appeals to basic human physiological needs.

This Lysol “What It Takes to Protect” commercial appeals to the human needs for safety and security.

Consider this public service announcement (PSA) from the Ad Council that is dedicated to fostering a more welcoming nation where everyone can belong. How does it appeal to the human need for community and belonging?

One awesome esteem level example to check out is this one from Dove . Dove launched a campaign to boost female self-esteem and to celebrate female beauty in all shapes and sizes. The company also created “confidence-boosting boards” on Pinterest. The boards include self-esteem activities so girls and their parents can share words of encouragement.

Check out one of Nike’s commercials from the “Find Your Greatness” campaign. How does it appeal to the human need for self-actualization?

Maslow asserted that people strive to satisfy their most basic needs before directing their behavior toward satisfying higher-level needs, so it stands to reason that consumer buying behavior would follow this model. For example, you’d first have to fulfill your needs for food and shelter before you might consider putting money away for retirement or purchasing a home security system.

Link to Learning: Maslow and Marketing

Understanding Maslow’s hierarchy of needs will help you be an effective and impressive marketer. You’re going to see this model in many of your business courses, not just marketing, so take the time to learn about it. Check out this brief video that may help you understand how to use Maslow’s hierarchy of needs in marketing. Learn about why Maslow’s hierarchy of needs matters.

Perception is the way in which people identify, organize, and interpret sensory information. It’s another variable in consumer buying behavior because the perceptions you have about a business or its products or services have a dramatic effect on your buying behavior. What makes perception even more complex is that consumers can form different perceptions of the same stimulus because of three perceptual processes: selective attention, selective distortion, and selective retention. Let’s take a closer look.

Every day, you’re bombarded with marketing messages from TV commercials, magazine and newspaper ads, billboards, and social media ads. As of 2021, it was estimated that the average person encounters between 6,000 and 10,000 ads every single day. 16 It stands to reason that you can’t possibly pay attention to all of the competing stimuli surrounding you, so you’ll pay attention to only those stimuli that you consider relevant to your wants and needs at the time and screen out the rest. That’s the process known as selective attention .

Marketing in Practice: When Bombarding Backfires

Bombarding consumers with marketing messages can cause more harm than good. According to this article from Marketing Dive , bombarding people with ads would negatively impact a brand. This article from the Advertising Association shares data that indicates bombardment and intrusiveness negatively impact perceptions of advertising.

How can you combat the issue? Quantcast outlines ways to avoid ad bombardment.

Careers In Marketing: It’s about Ability

Your personal brand will be a significant factor when it comes to finding a job. What does your personal brand say today? What is your marketing story? Is it what you want it to be? If not, what will you do to change it? The end-of-chapter content includes various ways to explore your personal brand to help you prepare for your job search.

How are you going to stand out among other candidates? What can you do with your résumé? According to Jason Shen’s TED Talk, you should highlight your abilities and not your experience. He speaks to potential and how you can make yourself more attractive to potential employers by telling a story in a compelling way.

According to the American Marketing Association (AMA) , you need to know yourself well. Self-knowledge will help you know the kind of work environment you perform best in and what kind of work you enjoy most. The AMA is a great place to learn how to stand out as a marketing job applicant , target companies, prepare your best résumé, and have a successful interview.

Check out these sources on how to stand out and ways you can beat the competition:

• Freemanleonard : “How Marketers and Creatives Can Stand Out in Today’s Competitive Job Market”
• Recruiter.com : “13 Tried-and-True Creative Tactics Candidates Have Used to Stand Out in Interviews”
• Acadium : “Launch Your Digital Marketing Career: How to Stand Out as a Candidate”
• Indeed: “8 Marketing Interview Questions to Expect”
• Entrepreneur : “Building Your Brand Is How You Will Stand Out When Applying for a Job”
• Smart Insights : “7 Tactics to Help You Stand Out as a Marketer and Get Better Jobs”
• 24 Seven : “10 Tips to Ace Your Next Marketing Job Interview”

If you want to go the extra mile in making yourself stand out, reach out to current marketers and ask them questions. You can find hundreds, even thousands, of current marketers on LinkedIn . Try targeting people from companies you’re interested in or would like to learn more about. Look for specific people who are doing jobs that interest you. Going to an interview armed with information is incredibly powerful and will speak volumes to your interviewer. Be sure to find a way to work your completed research into the interview conversation because it will speak to your drive, curiosity, and ambition—all traits every interviewer wants to hear about. This will also be another way you can stand out from others interviewing for the job. Questions you could ask current marketers in preparation for an interview include (but by no means are limited to):

• What about you stood out in your interview process that made your current company hire you?
• Can you tell me about examples of people you’ve interviewed and why they stood out to you?
• How have candidates stood out when they spoke about their abilities in a job interview scenario?
• What are your thoughts on candidates sharing a college project with you as a way to demonstrate abilities?
• What advice do you have for me?

Be creative with your questions! Look online for other questions you could ask. Have fun!

Even the stimuli that people notice don’t always come across in the way in which the marketers intended. Selective distortion is the tendency of people to interpret information in a way that fits their preconceived notions. This was demonstrated years ago when PepsiCo launched its Pepsi Challenge blind taste test commercials. Participants were presented with two colas in unmarked plastic cups and asked to taste both colas and choose the one they liked better. Then the tester would lift a small screen to reveal the brand the participants preferred. In TV commercials that aired for years, Pepsi showed the stunned reactions of loyal Coca-Cola drinkers who had chosen Pepsi over Coke in the test. One grandmother in a commercial said, “I can’t believe it. I’ve never had a Pepsi in my life, but it must be better!” 17

People also tend to forget much of what they learn and to retain information that supports their preconceived attitudes and beliefs. That’s the power of selective retention , a bias by which you’re more likely to remember messages that are closely related to your interests, values, and beliefs rather than those that are contrary to those values and beliefs.

Beliefs, feelings, and attitudes also play an important role in consumer buying behavior. Beliefs are consumer perceptions of how a product or brand performs relative to different attributes. These beliefs are generally formed through personal experience, advertising, and conversations with others, and they play a vital role because they can be either positive or negative. You can even hold both positive and negative beliefs about the same thing. For example, you may believe that coffee is good for you because it helps you focus and stay alert, but you may also worry about the effect of coffee on your health and the way it stains your teeth. Human beliefs aren’t always accurate and can change according to the situation.

Consumer attitudes are a composite of a consumer’s beliefs, feelings, and behavioral intentions toward a product or service (see Figure 3.9).

We’ve already talked about beliefs, so let’s focus for a moment on affect, or feeling. Consumers often have certain feelings toward brands, products, or services. Sometimes these feelings are based on people’s beliefs, such as a vegetarian who can’t stand the thought of eating a hamburger, but you may also have feelings that are relatively independent of your beliefs. For example, someone who has strong environmentalist beliefs may object to clearing forests to make way for a housing development but may have positive feelings toward Christmas trees because they subconsciously associate these trees with the experience that they had at Christmas as a child.

The behavioral intention aspect of an attitude is what you as a consumer plan to do—buy the brand or not buy the brand. As with affect, this is sometimes a logical consequence of your beliefs but may sometimes reflect other circumstances. Consider a consumer who doesn’t particularly like a restaurant but will go there because it’s an after-class gathering spot with her friends. 18

Learning is still another important factor in consumer buying behavior. The fact is that consumer behavior is learned, and much of what you buy is based on your previous experiences with particular brands. This is commonly known as the Law of Effect , which asserts that, if an action is followed by a pleasant consequence, you’re likely to repeat it; if the action is followed by an unpleasant consequence, you’re less likely to repeat it. For example, let’s say you buy an Apple iPhone . If your experience with the iPhone is positive, you’ll probably be more inclined to buy another Apple product when you’re looking for a tablet or wearable. On the other hand, if you’ve had a not-so-positive experience with your iPhone, you’re likely to look at other brands when considering purchasing other devices.

Marketing in Practice: Lessons in Psychology

Psychology is a big part of marketing. Insight into your customers’ thinking will allow you to create marketing messages and stories that better speak to their needs. Learning, the process where customers acquire information they can apply to future purchases, is a foundational concept in marketing. Learn about the various types of learning and how they can impact marketing strategies from this Forbes article .

Situational Factors That Impact Consumer Buying Behavior

Situational factors influencing consumers are external (refer to Figure 3.10). These factors play an important role in how consumers experience a product and how these consumers’ opinions are formed.

Environmental factors such as music, lighting, ambient noise, and even smells can either discourage or encourage a consumer’s purchase decision. For example, researchers conducted a study on the effect of lighting on consumer purchases in a grocery store. They lit half the store with traditional fluorescent lighting and the other half of the building with LED lighting. Researchers conducted the study over 21 weeks and discovered that consumers bought 25 percent more products on the LED-lit side of the store. 19

Spatial factors also play a role. The way a product is displayed may make it seem desirable, but a crowded store or a long line at the cash register can suddenly make that same product seem less desirable. Think about it: Have you ever seen a long line to check out at the cash register and put the product you intended to buy back on the shelf because it simply wasn’t worth it to waste your time standing in line?

The Marketing in Practice feature box shows how sound and smell can affect consumers.

Marketing in Practice: Abercrombie & Fitch

As consumers, people usually don’t think twice about what a store smells or sounds like, the way it makes them feel or think, or what it makes them do. But Abercrombie & Fitch (A&F) thinks about it a lot (see Figure 3.11).

The company has its own line of men’s fragrances called “Fierce,” which is sprayed liberally in stores to give off what the company describes as a “lifestyle . . . packed with confidence and a bold, masculine attitude.” A&F knows who it wants in its stores, and by associating its fragrance with its stores, it creates a self-fulfilling prophecy for its male clientele who, by wanting to smell like A&F, will be like the models and sales staff in the store.

A&F also plays loud club music throughout its stores, attracting young people who can withstand loud music longer, while older customers may run from it. It’s just another way that A&F is enabling its stores to maintain a more youthful clientele and a “fresher” image. 20

Watch this video on Abercrombie & Fitch’s brand transformation for further insight on how A&F has positioned its retail brand Hollister as a global iconic teen brand and modernized the A&F brand to focus on young millennial consumers.

The social situation of shopping is another situational factor. Did you know that you’re more likely to stop to look at certain products when you’re in the company of a friend as opposed to a parent? The social aspect can even alter the price you’re willing to pay. You might be more inclined to purchase a more expensive product when you’re with a colleague or potential partner than you would if you’re with a friend or spouse. 21

The goal of your shopping trip is yet another situational factor. If you go to a store to look for a birthday present for your mother, your purpose is totally different than if you’re casually shopping for a new pair of shoes. The reason for shopping dictates the kinds of products customers are willing to interact with at that time and may cause them to bypass certain products they would normally interact with on another shopping trip. This is even true at the grocery store. You’ll interact with products differently if you’re on your weekly shopping trip versus simply going into the store because you’re out of milk.

Much like the purpose of your shopping trip, timing also influences your consumer behavior. If you’re in a rush because it’s Christmas Eve and you haven’t bought a present for your best friend yet, you’ll interact with fewer products than if you have hours to shop. Even if two people are looking for the same type of product, the one in a rush will probably end up with the most accessible product, whereas the leisurely consumer has time to weigh the price and quality of offerings.

Finally, your mood influences your buying behavior. Someone who is feeling sad or stressed interacts differently with products than a happy, relaxed shopper. The same can be said for someone who’s fatigued versus someone who’s full of energy.

Marketing in Practice: Situational Factors

There are many examples where companies use situational factors in their marketing approaches. Here are several online sites and specific articles:

• Westin and the White Tea Signature Scent
• The Aroma Trace : “Best Examples of Olfactory Marketing in Companies”
• Sync Originals: “10 Brands That Made Music Part of Their Marketing DNA”
• Omnify : “8 Simple Lighting Techniques That Boost Retail Sales”
• Science News: “Does Background Noise Make Consumers Buy More Innovative Products?”
• Journal of the Academy of Marketing Science : “Sounds Like a Healthy Retail Atmosphere Strategy: Effects of Ambient Music and Background Noise on Food Sales”

Knowledge Check

It’s time to check your knowledge on the concepts presented in this section. Refer to the Answer Key at the end of the book for feedback.

You’re at the shopping mall looking for a new pair of shoes when you smell the wonderful aroma of freshly baked pretzels. Before you know it, you’ve bought a giant pretzel with cheese sauce. What type of factors influenced your purchase?

• Psychological factors
• Social factors
• Situational factors
• Personal factors

Traditionally, in China, the bride’s wedding gown is red because the color is associated with good luck, happiness, and prosperity. Which influence on consumer buying behavior does this illustrate?

• Social class
• Personality

Jazmine purchases a wireless alarm system for her apartment. According to Maslow’s hierarchy of needs, which level of needs does this purchase reflect?

• Physiological
• Safety/security
• Self-esteem

The tendency of people to interpret information in a way that supports what they already believe is known as ________.

• cognitive dissonance
• selective attention
• selective retention
• selective distortion

Attitudes are a composite of a consumer’s beliefs, feelings about, and ________ toward a product or service.

• predispositions
• behavioral intentions
• preconceived notions
• attributions

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Consumer Behavior Research

Exploring the Depths of Consumer Insights for Strategic Business Growth

In an era where understanding consumer behavior is more than a competitive edge, it’s a survival imperative, NielsenIQ (NIQ) and GfK emerge as pivotal allies. This expertise is essential for businesses in B2C commerce, retail, and beyond, aiming to navigate the complex consumer landscape for informed, strategic decision-making.

Definition and Importance of Consumer Behavior Research

Consumer behavior research is the study of how individuals make decisions to spend their resources on consumption-related items. It involves understanding the what, why, when, and how of consumer purchases. This field is crucial for businesses as it sheds light on consumer preferences, buying patterns, and decision-making processes. By understanding these aspects, companies can tailor their products and marketing strategies effectively, ensuring alignment with consumer needs and market trends, ultimately leading to increased customer satisfaction and loyalty.

Overview of the Impact of Consumer Behavior Research on Marketing Strategies

The insights from consumer behavior research are instrumental in shaping targeted marketing strategies. By understanding consumer motivations and behaviors, businesses can create more relevant and engaging marketing messages, leading to improved customer engagement and retention. This research helps in segmenting the market, identifying potential customers, and understanding the factors that drive consumer decisions. It also aids in predicting future trends, enabling companies to stay ahead of the curve. Effective use of consumer behavior research can lead to the development of products and services that meet the evolving needs of consumers, thereby enhancing brand loyalty and market share.

Consumer and shopper insights

Understand consumer and shopper behavior, demographics, and loyalty with modern, representative consumer panels and customer survey capabilities.

Understanding Consumer Behavior

These diverse influences combine to form unique consumer profiles, which businesses must understand to effectively target their marketing efforts..

Factors Influencing Consumer Behavior

Consumer behavior is influenced by a complex interplay of psychological, social, cultural, and personal factors. Psychological factors include perceptions, attitudes, and motivation, which guide consumers’ emotional and cognitive responses. Social factors encompass family, friends, and societal norms that shape buying habits through peer influence and social trends. Cultural factors involve the broader societal beliefs, values, and customs that dictate consumer behavior in a particular region. Personal factors such as age, occupation, lifestyle, and economic status also significantly impact consumer choices. These diverse influences combine to form unique consumer profiles, which businesses must understand to effectively target their marketing efforts.

The Role of Consumer Behavior in Decision Making

Consumer behavior plays a critical role in the decision-making process. It involves understanding how consumers decide upon their needs and wants, choose among products and brands, and determine their purchase methods. This knowledge is vital for businesses to design and position their offerings in a way that resonates with the target audience. Understanding consumer behavior helps in predicting how consumers will respond to marketing messages and product features, enabling businesses to tailor their strategies to meet consumer needs effectively. It also assists in identifying opportunities for new product development and market expansion.

Consumer Behavior Theories and Models

Consumer behavior theories and models provide frameworks for understanding and predicting consumer actions. The Stimulus-Response Model, for instance, illustrates how marketing stimuli and environmental factors influence consumer responses. Maslow’s Hierarchy of Needs explains consumer motivation in terms of fulfilling basic to complex needs. The Theory of Reasoned Action and the Theory of Planned Behavior focus on the relationship between attitudes, intentions, and behaviors. The Consumer Decision Model outlines the cognitive process involving need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior. These models help businesses in developing strategies that align with consumer psychology and behavioral patterns. They also assist in segmenting the market and targeting consumers with personalized marketing approaches, enhancing the effectiveness of marketing campaigns and product offerings.

Research Methods in Consumer Behavior Research

Customer analytics is vital for businesses across various sectors, including FMCG, sales, and e-commerce. It enables companies to create personalized experiences, improve customer engagement, and boost retention, ultimately leading to increased revenue. By understanding consumer behavior through data analysis, businesses can make informed decisions that resonate with their target audience.

Quantitative Research Methods

Quantitative research methods in consumer behavior research involve structured techniques like surveys and questionnaires to collect numerical data. These methods are useful for gauging consumer attitudes, preferences, and behaviors across larger populations. Statistical analysis of this data helps in identifying trends, testing hypotheses, and making generalizations about consumer behavior. Quantitative research is valuable for businesses as it provides measurable and comparable insights that can guide strategic decision-making. It helps in understanding the magnitude of consumer responses to various marketing stimuli and in assessing the potential market size for new products or services.

Qualitative Research Methods

Qualitative research methods in consumer behavior focus on understanding the deeper motivations, thoughts, and feelings of consumers. Techniques like in-depth interviews, focus groups, and observational studies provide rich, detailed insights that are not typically captured through quantitative methods. This approach is crucial for exploring the underlying reasons behind consumer choices, preferences, and attitudes. Qualitative research helps businesses in gaining a deeper understanding of consumer experiences, emotions, and perceptions, which can be invaluable in developing more effective marketing strategies, product designs, and customer service approaches. It allows companies to explore new ideas and concepts with consumers, gaining insights that can lead to innovation and differentiation in the market.

Experimental Research in Consumer Behavior

Experimental research in consumer behavior involves manipulating one or more variables to observe the effect on another variable, typically consumer behavior or attitudes. This method is used to establish cause-and-effect relationships, providing insights into how changes in product features, pricing, or marketing strategies might influence consumer behavior. Controlled experiments, often conducted in laboratory settings or as field experiments, allow researchers to isolate the effects of specific variables. This type of research is particularly valuable for testing new products, pricing strategies, and marketing messages before full-scale implementation. It helps businesses in making informed decisions based on empirical evidence, reducing the risks associated with new initiatives.

Factors Affecting Consumer Behavior

Psychological factors.

Psychological factors play a significant role in shaping consumer behavior. These include individual motivations, perceptions, attitudes, and beliefs. Motivation drives consumers to fulfill their needs and desires, influencing their buying decisions. Perception, how consumers interpret information, can significantly impact their choices, as it shapes their understanding of products and brands. Attitudes and beliefs, formed through experiences and social influences, guide consumer preferences and loyalty. Understanding these psychological factors is crucial for businesses as they influence how consumers view and interact with products and services. By aligning marketing strategies with consumer psychology, businesses can more effectively influence purchasing decisions and build stronger customer relationships.

Social Factors

Social factors significantly influence consumer behavior, encompassing the impact of society, family, and peer groups. Family members and friends can influence buying decisions through recommendations or shared experiences. Social groups, including social networks and communities, also play a role in shaping consumer preferences and behaviors. The influence of social media has become particularly significant, as it not only connects consumers but also serves as a platform for sharing opinions and experiences about products and services. Understanding these social dynamics is important for businesses as they can leverage social influences through targeted marketing strategies, influencer partnerships, and social media campaigns. Recognizing the power of social factors can help businesses in building brand awareness and loyalty among consumer groups.

Cultural Factors

Cultural factors are deeply ingrained elements that influence consumer behavior, including values, beliefs, customs, and traditions. These factors vary across different regions and societies, affecting how consumers perceive and interact with products and services. Cultural influences can determine consumer preferences, buying habits, and brand perceptions. For instance, color symbolism, dietary preferences, and language can all vary significantly between cultures, impacting marketing strategies and product development. Businesses must understand and respect these cultural nuances to effectively cater to diverse consumer markets. Adapting products and marketing messages to align with cultural values and norms can significantly enhance a brand’s appeal and acceptance in different markets.

Personal Factors

Personal factors, including age, gender, occupation, lifestyle, and economic status, also significantly influence consumer behavior. These factors determine individual needs, preferences, and purchasing power. For example, younger consumers may prioritize trendy and innovative products, while older consumers might value functionality and durability. Lifestyle choices, such as health consciousness or environmental awareness, can also drive consumer preferences and choices. Economic factors, such as income and economic conditions, influence consumers’ ability to purchase and their sensitivity to price changes. Understanding these personal factors is crucial for businesses to segment their market effectively and tailor their products and marketing strategies to meet the specific needs of different consumer groups.

Consumer Purchase Decision Making

Stages of the consumer purchase decision-making process.

The consumer purchase decision-making process typically involves several key stages: problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior.

In the problem recognition stage, consumers identify a need or desire.

During the information search, they seek out information about products or services that can fulfill their need. In the evaluation stage, consumers compare different options based on attributes such as price, quality, and brand reputation.

The purchase decision involves choosing a product and making the purchase. Finally, in the post-purchase stage, consumers evaluate their satisfaction with the purchase, which can influence future buying decisions and brand loyalty.

Understanding these stages is essential for businesses to effectively influence consumers at each step, from raising awareness to ensuring post-purchase satisfaction.

Influences on Consumer Purchase Decisions

Consumer purchase decisions are influenced by a multitude of factors, including product attributes, brand reputation, marketing messages, social influences, and personal preferences. Product features such as quality, price, and usability are key determinants of consumer choices. Brand reputation, built over time through consistent quality and marketing efforts, also significantly impacts purchase decisions. Marketing messages and advertising play a crucial role in shaping consumer perceptions and driving demand. Social influences, including recommendations from family and friends, as well as online reviews and influencer endorsements, can sway consumer decisions. Personal factors such as individual needs, preferences, and financial constraints also play a critical role. Businesses must consider these diverse influences when developing products and crafting marketing strategies to effectively appeal to their target audience.

Impulse Buying Behavior

Impulse buying behavior refers to unplanned purchases made by consumers, often driven by emotional factors rather than rational decision-making. This type of behavior is typically triggered by external stimuli such as attractive product displays, promotional offers, or persuasive sales tactics. Emotional responses, such as excitement or the desire for instant gratification, also play a significant role in impulse buying. Retailers often leverage this behavior by strategically placing impulse items near checkout areas or using limited-time offers to create a sense of urgency. Understanding the triggers of impulse buying can help businesses in designing marketing strategies and store layouts that encourage such purchases, potentially increasing sales and customer engagement.

Online Shopping and Consumer Behavior

Impact of online shopping on consumer behavior.

The rise of online shopping has significantly impacted consumer behavior, offering convenience, a wider selection of products, and often competitive pricing. Online shopping has changed the way consumers research products, compare prices, and make purchasing decisions. The ease of access to a vast array of products and the ability to shop at any time have increased the frequency and diversity of purchases. Online reviews and ratings have also become important factors in the decision-making process, as consumers increasingly rely on the opinions of others. Additionally, the personalized shopping experiences offered by many online retailers, through targeted recommendations and tailored marketing messages, have further influenced consumer buying habits. Understanding these shifts in consumer behavior is crucial for businesses to adapt their strategies for the digital marketplace, ensuring they meet the evolving needs and expectations of online shoppers.

Factors Influencing Online Buying Behavior

Several factors influence online buying behavior, including website usability, product variety, pricing, customer reviews, and the overall shopping experience. A user-friendly website with easy navigation and a seamless checkout process is crucial for attracting and retaining online shoppers. A diverse product range and competitive pricing are also key factors in attracting consumers. Customer reviews and ratings significantly impact purchase decisions, as they provide social proof and reduce perceived risk. The overall shopping experience, including customer service, delivery options, and return policies, also plays a vital role in influencing online buying behavior. Security and privacy concerns are additional considerations, as consumers are increasingly aware of data protection and online fraud. Businesses must address these factors to create a compelling online shopping experience that meets consumer expectations and drives online sales.

Comparison of Online and Offline Consumer Behavior

Online and offline consumer behaviors exhibit distinct differences, influenced by the unique aspects of each shopping environment. Online shopping offers convenience, a broader selection, and often more competitive pricing, leading to different purchasing patterns compared to offline shopping. Consumers tend to spend more time researching and comparing products online, while offline shopping is often driven by immediate needs and sensory experiences. The tactile experience and instant gratification of offline shopping are not replicable online, but the online environment offers personalized recommendations and a wealth of product information. Offline shopping also provides opportunities for personal interaction and immediate problem resolution, which can enhance customer satisfaction. Understanding these differences is crucial for businesses to tailor their strategies for each channel, ensuring a cohesive and complementary shopping experience that meets the needs and preferences of consumers in both online and offline environments.

Consumer Satisfaction and Loyalty

Importance of customer satisfaction in consumer behavior research.

Customer satisfaction is a critical component of consumer behavior research, as it directly impacts repeat purchases and brand loyalty. Satisfied customers are more likely to become repeat buyers, recommend the brand to others, and provide positive reviews. Customer satisfaction is influenced by various factors, including product quality, customer service, and overall shopping experience. Understanding and measuring customer satisfaction helps businesses identify areas for improvement, enhance customer experiences, and build long-term relationships with consumers. High levels of customer satisfaction lead to increased customer loyalty, which is essential for business growth and sustainability.

Factors Influencing Customer Satisfaction

Customer satisfaction is influenced by a range of factors, including product quality, price, service quality, brand image, and customer expectations. Product quality is a primary determinant of satisfaction, as consumers expect products to perform as advertised. Price also plays a role, as consumers evaluate the value they receive relative to the cost. Service quality, encompassing customer service interactions and the overall shopping experience, significantly impacts satisfaction levels. A positive, helpful, and efficient service experience can enhance satisfaction, while negative experiences can lead to dissatisfaction. Brand image, shaped by marketing communications and past experiences, influences consumer expectations and perceptions. Meeting or exceeding these expectations is key to achieving high levels of customer satisfaction. Additionally, personal factors such as individual needs, preferences, and past experiences also influence satisfaction. Businesses must consider these diverse factors to effectively meet consumer needs and enhance satisfaction levels.

Relationship Between Customer Satisfaction and Loyalty

The relationship between customer satisfaction and loyalty is strong and direct. Satisfied customers are more likely to develop a sense of loyalty to a brand, leading to repeat purchases and positive word-of-mouth recommendations. Loyalty is not just about repeat buying; it also involves an emotional connection and a preference for the brand over competitors. Satisfied customers are also more likely to be forgiving of minor issues and are less sensitive to price changes. Conversely, dissatisfied customers are more likely to switch to competitors and share negative experiences with others. Building customer loyalty requires consistently meeting or exceeding customer expectations, providing high-quality products and services, and maintaining positive customer relationships. Loyal customers are valuable assets to businesses, as they tend to have a higher lifetime value, lower acquisition costs, and can become brand advocates, promoting the brand through their networks.

Consumer Research and Marketing Strategies

Utilizing consumer research to develop effective marketing programs.

Consumer research is a vital tool for developing effective marketing programs. By understanding consumer needs, preferences, and behaviors, businesses can create targeted marketing strategies that resonate with their audience. Consumer research helps in identifying market segments, understanding consumer pain points, and uncovering opportunities for product development or enhancement. It also provides insights into the most effective channels and messages for reaching the target audience. Utilizing consumer research in marketing program development ensures that strategies are data-driven and customer-centric, increasing the likelihood of success. It enables businesses to tailor their marketing efforts to the specific needs and preferences of different consumer segments, improving engagement and response rates. Additionally, ongoing consumer research allows businesses to adapt their marketing strategies in response to changing consumer trends and market conditions, ensuring continued relevance and effectiveness.

Targeting Specific Consumer Segments Based on Research Findings

Targeting specific consumer segments based on research findings is a key strategy for effective marketing. Consumer research provides detailed insights into different consumer groups, including their demographics, psychographics, behaviors, and preferences. By analyzing this data, businesses can identify distinct segments within their target market, each with unique needs and characteristics. Targeting these segments with tailored marketing messages and product offerings increases the relevance and appeal of the brand to each group. For example, a segment characterized by health-conscious consumers would respond more positively to marketing messages emphasizing the health benefits of a product. Segment-specific targeting allows businesses to allocate marketing resources more efficiently, focusing on the most promising segments with the highest potential for conversion and loyalty. It also enhances the customer experience by providing consumers with products and marketing messages that are more closely aligned with their individual needs and preferences.

Adapting Marketing Strategies to Consumer Behavior Trends

Adapting marketing strategies to consumer behavior trends is essential for businesses to stay relevant and competitive. Consumer behavior is constantly evolving, influenced by factors such as technological advancements, cultural shifts, and economic changes. By staying attuned to these trends, businesses can anticipate changes in consumer needs and preferences, and adjust their marketing strategies accordingly. This may involve adopting new marketing channels, such as social media or influencer marketing, to reach consumers where they are most active. It could also mean developing new products or services that align with emerging consumer trends, such as sustainability or personalization. Adapting marketing strategies to consumer behavior trends requires a proactive approach, with ongoing research and analysis to identify emerging patterns. Businesses that successfully adapt to these trends can capture new market opportunities, enhance customer engagement, and maintain a competitive edge.

Case Studies in Consumer Behavior Research

Analysis of real-life examples and their implications.

Real-life case studies in consumer behavior research provide valuable insights into the practical application of theoretical concepts and the effectiveness of different marketing strategies. For example, a case study in the automotive industry might analyze how consumer preferences for eco-friendly vehicles have influenced car manufacturers’ product development and marketing strategies. In the retail sector, a case study could examine the impact of online shopping on brick-and-mortar stores and how these businesses have adapted to the digital era. These case studies offer concrete examples of how businesses have successfully navigated changes in consumer behavior, providing lessons and strategies that can be applied in other contexts. They also highlight the importance of consumer research in identifying market trends, understanding consumer needs, and developing effective marketing strategies. By analyzing real-life examples, businesses can gain a deeper understanding of consumer behavior, learn from the successes and challenges of others, and apply these insights to their own strategies.

Examination of Successful Marketing Campaigns Based on Consumer Behavior Research

Examining successful marketing campaigns that are based on consumer behavior research can provide valuable insights into effective marketing practices. These case studies demonstrate how a deep understanding of consumer needs, preferences, and behaviors can be leveraged to create impactful marketing campaigns. For instance, a campaign that effectively uses consumer data to personalize messages and offers can result in higher engagement and conversion rates. Another example might be a campaign that taps into current consumer trends, such as sustainability or wellness, to resonate with the target audience. Analyzing these successful campaigns can reveal key strategies and tactics that businesses can adopt, such as the use of specific channels, messaging techniques, or promotional offers. These case studies also highlight the importance of data-driven decision-making in marketing, showing how consumer research can inform and guide successful marketing initiatives.

Motivating Consumers and New Product Adoption

Strategies to motivate consumers to adopt new products.

Motivating consumers to adopt new products is a critical challenge for businesses. Effective strategies for encouraging new product adoption include leveraging social proof, offering free trials or samples, and creating educational content. Social proof, such as customer testimonials or influencer endorsements, can reduce perceived risk and increase consumer confidence in trying a new product. Free trials or samples allow consumers to experience the product firsthand, reducing barriers to adoption. Educational content, such as how-to guides or product demonstrations, can help consumers understand the value and benefits of the new product. Additionally, businesses can use targeted marketing campaigns to reach early adopters and innovators who are more likely to try new products and spread the word to others. Creating a sense of urgency or exclusivity around the new product, through limited-time offers or exclusive access, can also motivate consumers to adopt the product more quickly.

Innovations in Consumer Behavior Research for New Product Development

Innovations in consumer behavior research are playing a crucial role in new product development. Advanced analytics and data mining techniques allow businesses to analyze large datasets and uncover deep insights into consumer needs and preferences. Social listening tools enable companies to monitor social media and online conversations, gaining real-time insights into consumer opinions and trends. Virtual reality (VR) and augmented reality (AR) technologies are being used to test consumer reactions to new products in simulated environments, providing valuable feedback before market launch. Behavioral economics principles, such as understanding cognitive biases and decision-making processes, are also being applied to better predict consumer responses to new products. These innovations in consumer behavior research provide businesses with more accurate and comprehensive data, enabling them to develop products that are closely aligned with consumer needs and preferences, increasing the likelihood of market success.

Social Media and Consumer Behavior

Influence of social media on consumer behavior.

Social media has a profound influence on consumer behavior, shaping how consumers discover, research, and share information about products and services. Platforms like Facebook, Instagram, and Twitter serve as important channels for brand communication and engagement. Consumers use social media to seek recommendations, read reviews, and gather opinions from their networks, which significantly influences their purchasing decisions. Brands leverage social media for targeted advertising, influencer partnerships, and content marketing, creating opportunities for direct interaction and engagement with consumers. Social media also facilitates the spread of trends and viral content, quickly influencing consumer preferences and behaviors. The interactive and dynamic nature of social media means that consumer opinions and trends can rapidly change, requiring businesses to be agile and responsive in their social media strategies. Understanding the influence of social media on consumer behavior is essential for businesses to effectively engage with their audience and influence purchasing decisions.

Role of Social Media in Shaping Consumer Perceptions and Purchase Decisions

Recap of the importance of consumer behavior research.

Consumer behavior research is essential for businesses seeking to understand and effectively respond to the evolving needs and preferences of their target audience. It provides valuable insights into why consumers make certain choices, what influences their purchasing decisions, and how they interact with brands. This research is crucial for developing effective marketing strategies, creating products that meet consumer needs, and enhancing the overall customer experience. By staying informed about consumer behavior trends and applying these insights, businesses can improve customer engagement, increase brand loyalty, and drive growth. In today’s competitive marketplace, a deep understanding of consumer behavior is a key differentiator, enabling businesses to create more personalized, relevant, and impactful marketing initiatives.

Future Directions and Emerging Trends in Consumer Behavior Research

The future of consumer behavior research is marked by rapid advancements in technology and data analytics, leading to more sophisticated and nuanced understanding of consumer preferences and behaviors. Emerging trends include the use of artificial intelligence (AI) and machine learning to analyze consumer data, providing deeper and more predictive insights. The integration of biometric data, such as eye tracking and facial recognition, offers new ways to understand consumer responses to marketing stimuli. The growing importance of sustainability and ethical considerations is also influencing consumer behavior, leading to increased demand for eco-friendly and socially responsible products. Additionally, the rise of the experience economy is shifting focus from product features to customer experiences, requiring businesses to create more immersive and engaging customer interactions. Staying abreast of these trends and continuously innovating in consumer behavior research will be crucial for businesses to remain relevant and competitive in the changing market landscape.

How NIQ and GfK Can Help

In the complex world of consumer behavior, NIQ and GfK offer the expertise and tools necessary to navigate this landscape effectively. With comprehensive solutions like:

• NielsenIQ’s Homescan : Track, diagnose, and analyze consumer behavior from more than 250,000 households across 25 countries.
• Consumer analytics : Go deeper and create more clarity around shopper behavior with custom surveys and segmentation.
• Consumption moments : Reveal the true motivations behind customer consumption behavior and usage to guide product innovation and marketing strategy.
• gfknewron marke t : Create the right opportunities with gfknewron market
• gfknewron predict : Plan your future using the world’s most comprehensive sales tracking data for Tech & Durables.
• gfknewron Consumer : Understand your consumers’ behavior to redefine your success

By leveraging these tools, businesses can gain a competitive edge, adapting to market changes and consumer trends with agility and precision.

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The Influential Factors on Consumer Purchase Intention: A Case Study on MINISO

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Since 2017, the trend of Intellectual Property (IP) co-branding collaboration has become popular in China, meaning that different brands join forces to create new products and give them new brand meaning. Businesses employ brand licensing and international co-branding to fast expand the market and draw clients. MINISO, a listed company in the Chinese retail market, has taken advantage of this trend wisely and become a winner in the IP co-branding market. The aim of this paper was to investigate whether and how the IP marketing strategy implemented by MINISO has had an impact on consumer purchase intentions. This paper used the 4Ps of Marketing Mix and SWOT analysis to conduct a validated factor analysis to examine the relationship between the IP marketing strategies implemented by MINISO and consumer purchase intentions. The research concluded that MINISO's use of IP marketing tactics has influenced consumer purchase intentions and positively impacted MINISO's annual sales and company size. Therefore, the IP marketing strategy adopted by MINISO, which adapts its marketing approach to market trends, is conducive to increasing consumers’ purchase intentions. The paper also made several targeted recommendations based on the results of this study.

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Lin, S. (2023). The Influential Factors on Consumer Purchase Intention: A Case Study on MINISO. In: Li, X., Yuan, C., Kent, J. (eds) Proceedings of the 6th International Conference on Economic Management and Green Development. Applied Economics and Policy Studies. Springer, Singapore. https://doi.org/10.1007/978-981-19-7826-5_121

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Psychological factors and consumer behavior during the COVID-19 pandemic

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Roles Investigation, Writing – review & editing

Roles Writing – original draft, Writing – review & editing

Affiliations Department of Neuroscience, Imaging and Clinical Sciences, G. d’Annunzio University of Chieti-Pescara, Chieti, Italy, Center for Advanced Studies and Technology (CAST), G. d’Annunzio University of Chieti-Pescara, Chieti, Italy

Affiliation Department of Business Studies, Grenon School of Business, Assumption University, Worcester, MA, United States of America

Roles Conceptualization, Writing – review & editing

Roles Conceptualization, Methodology, Writing – review & editing

* E-mail: [email protected]

Roles Conceptualization, Writing – original draft, Writing – review & editing

• Adolfo Di Crosta, 
• Irene Ceccato, 
• Daniela Marchetti, 
• Pasquale La Malva, 
• Roberta Maiella, 
• Loreta Cannito, 
• Mario Cipi, 
• Nicola Mammarella, 
• Riccardo Palumbo, 

• Published: August 16, 2021
• https://doi.org/10.1371/journal.pone.0256095
• Reader Comments

The COVID-19 pandemic is far more than a health crisis: it has unpredictably changed our whole way of life. As suggested by the analysis of economic data on sales, this dramatic scenario has also heavily impacted individuals’ spending levels. To better understand these changes, the present study focused on consumer behavior and its psychological antecedents. Previous studies found that crises differently affect people’s willingness to buy necessities products (i.e., utilitarian shopping) and non-necessities products (i.e., hedonic shopping). Therefore, in examining whether changes in spending levels were associated with changes in consumer behavior, we adopted a fine-grained approach disentangling between necessities and non-necessities. We administered an online survey to 3833 participants (age range 18–64) during the first peak period of the contagion in Italy. Consumer behavior toward necessities was predicted by anxiety and COVID-related fear, whereas consumer behavior toward non-necessities was predicted by depression. Furthermore, consumer behavior toward necessities and non-necessities was predicted by personality traits, perceived economic stability, and self-justifications for purchasing. The present study extended our understanding of consumer behavior changes during the COVID-19 pandemic. Results could be helpful to develop marketing strategies that consider psychological factors to meet actual consumers’ needs and feelings.

Citation: Di Crosta A, Ceccato I, Marchetti D, La Malva P, Maiella R, Cannito L, et al. (2021) Psychological factors and consumer behavior during the COVID-19 pandemic. PLoS ONE 16(8): e0256095. https://doi.org/10.1371/journal.pone.0256095

Editor: Marcel Pikhart, University of Hradec Kralove: Univerzita Hradec Kralove, CZECH REPUBLIC

Received: March 8, 2021; Accepted: July 31, 2021; Published: August 16, 2021

Copyright: © 2021 Di Crosta et al. This is an open access article distributed under the terms of the Creative Commons Attribution License , which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

Data Availability: All data are available from the figshare database (accession number(s) DOI: 10.6084/m9.figshare.14865663.v2 , URL: https://figshare.com/articles/dataset/RawData_PO_sav/14865663 ).

Funding: The authors received no specific funding for this work.

Competing interests: The authors have declared that no competing interests exist.

Introduction

Coronavirus disease 2019 (COVID-19) refers to an infection (SARS-CoV-2) of the lower respiratory tract [ 1 , 2 ], which was first detected in Wuhan (China) in late December 2019. Since then, the number of contagions by COVID-19 has been increasing globally each day [ 3 ]. In March 2020, the World Health Organization (WHO) declared the COVID-19 outbreak a global pandemic [ 4 ]. Subsequently, several national governments implemented long-term full or partial lockdown measures to reduce the spread of the virus. Although these strict measures have proven to be quite effective in containing the further spread of the virus, they have severely impacted the global economic system and caused an unprecedented shock on economies and labor markets [ 5 ]. As a matter of fact, the COVID-19 pandemic can be defined as far more than just a health crisis since it has heavily affected societies and economies. COVID-19 outbreak has unpredictably changed how we work, communicate, and shop, more than any other disruption in this decade [ 6 ]. As reflected by the analysis of economic data on sales, this dramatic situation has greatly influenced consumer attitudes and behaviors. According to a study conducted by the Nielsen Company, the spread of the COVID-19 pandemic led to a globally manifested change in spending levels related to consumer behavior [ 7 ]. Specifically, a growing tendency in the sales of necessities has been observed: consumer priorities have become centered on the most basic needs, including food, hygiene, and cleaning products. In Italy, consumer shopping preferences have changed throughout the pandemic. Initially, when Italy was the first country in Europe to experience the spreading of COVID-19 (between March and April 2020). Consumer behavior tended to compulsively focus on purchasing essential goods, especially connected with preventing the virus, such as protective devices and sanitizing gel [ 8 ]. The pandemic changed the consumption patterns, for instance reducing sales for some product categories (e.g., clothes), and improving sales for other categories (e.g., entertainment products) [ 9 ]. Also, research indicated that job insecurity and life uncertainty experienced during the pandemic negatively impacted on consumer behavior of Italian workers [ 10 ].

It comes as no surprise that in such a situation of emergency, the need for buying necessities takes precedence [ 11 ]. However, the investigation of antecedent psychological factors, including attitudes, feelings, and behaviors underlying changes in consumer behavior during the COVID-19 pandemic, have received less attention. Nevertheless, understanding the psychological factors which drive consumer behavior and products choices can represent a crucial element for two main reasons. First, such investigation can extend our understanding of the underpinnings of the changes in consumer behavior in the unprecedented context of COVID-19. Second, obtained results could be helpful in the development of new marketing strategies that consider psychological factors to meet actual consumers’ needs and feelings [ 12 ]. On the one side, companies could benefit from this knowledge to increase sales during the COVID-19 pandemic [ 13 ]. Moreover, understanding these needs and feelings could be fundamental to improve the market’s preparedness to face future pandemics and emergencies [ 14 , 15 ]. On the other hand, consumers could take advantage of this new market’s preparedness to respond to their actual needs and feelings. As a result, in case of future emergency, factors such as anxiety and a perceived shortage of essential goods could be reduced [ 16 ], whereas well-being and the positive sense of self of the consumers could be supported [ 17 ]. Furthermore, the novelty of the present study lies in two main aspects. First, based on previous studies highlighting that crises differently affect people’s willingness to buy necessities and non-necessities products [ 11 , 18 ], we adopted a fine-grained approach and disentangled between necessities and non-necessities. Second, considering the unprecedented context of the COVID-19 pandemic, we adopted an integrative approach to investigate the role of different psychological factors such as fear, anxiety, stress, depression, self-justifications, personality traits, and perceived economic stability in influencing consumer behavior. Noteworthy, all these factors have been implicated in consumer behavior in previous research, but, to our knowledge, no study has considered all of them at once. Therefore, considering both the lack of studies that have focused on these factors at once and the unique opportunity to study them in the context of such an unprecedented global pandemic, we adopted an integrative approach to get one of the first overviews of the role of the several psychological factors influencing consumer behavior.

Previous studies in consumer psychology and behavioral economics have highlighted that several psychological factors impact consumer behavior differently [ 18 – 20 ]. Consumer behavior refers to the study of individuals or groups who are in the process of searching to purchase, use, evaluate, and dispose of products and services to satisfy their needs [ 12 ]. Importantly, it also includes studying the consumer’s emotional, mental, and behavioral responses that precede or follow these processes [ 21 ]. Changes in consumer behavior can occur for different reasons, including personal, economic, psychological, contextual, and social factors. However, in dramatic contexts such as a disease outbreak or a natural disaster, some factors, more than others, have a more significant impact on consumer behavior. Indeed, situations that potentially disrupt social lives, or threaten individuals’ health, have been proven to lead to strong behavioral changes [ 22 ]. An example is panic buying, a phenomenon occurring when fear and panic influence behavior, leading people to buy more things than usual [ 23 ]. Specifically, panic buying has been defined as a herd behavior that occurs when consumers buy a considerable amount of products in anticipation of, during, or after a disaster [ 24 ]. A recent review on the psychological causes of panic buying highlighted that similar changes in consumer behavior occur when purchase decisions are impaired by negative emotions such as fear and anxiety [ 25 ]. Noteworthy, in the context of the COVID-19 pandemic, Lins and Aquino [ 23 ] showed that panic buying was positively correlated with impulse buying, which has been defined as a complex buying behavior in which the rapidity of the decision process precludes thoughtful and deliberate consideration of alternative information and choice [ 25 ]. The analysis of the different psychological factors involved in consumer behavior and changes in purchase decisions still represents an area that is scarcely explored. Arguably, during an uncertain threatening situation, such as a health crisis or a pandemic, the primitive part of our brain usually becomes more prominent, pushing individuals to engage in behaviors that are (perceived as) necessary for survival [ 26 – 29 ]. Importantly, these primitive instinctual behaviors can override the rational decision-making process, having an immense impact on usual consumer behavior. Therefore, the basic primitive response of humans represents the core factor responsible for changes in consumer behavior during a health crisis [ 16 ]. Specifically, fear and anxiety originated from perceived feelings of insecurity and instability, are the factors driving these behavioral changes [ 30 ]. In line with the terror management theory [ 31 ], previous studies have shown that external events, which threaten the safety of individuals, motivate compensatory response processes to alleviate fear and anxiety [ 32 , 33 ]. These response processes can prompt individuals to make purchases to gain a sense of security, comfort, and momentarily escape, which can also serve as a compensatory mechanism to alleviate stress. However, as such buying motivation represents an attempt to regulate the individuals’ negative emotions, the actual need for the purchased products is often irrelevant [ 34 ].

Pandemics and natural disasters are highly stressful situations, which can easily induce negative emotions and adverse mental health states [ 35 – 37 ] such as perceived lack of control and instability, which are core aspects of emergency situations, contribute directly to stress. In turn, research has highlighted that stress is a crucial factor in influencing consumer behavior. For example, past studies have shown that individuals may withdraw and become passive in response to stress, and this inaction response can lead to a decrease in purchasing [ 38 , 39 ]. However, some studies point out that stress can lead to an active response, increasing impulsive spending behaviors [ 40 , 41 ]. Moreover, event-induced stress can lead to depressive mood. In some cases, the depressive mood may translate into the development of dysfunctional consumer behavior, such as impulsive (the sudden desire to buy something accompanied by excessive emotional response) and/or compulsive buying (repetitive purchasing due to the impossibility to control the urge) [ 41 , 42 ]. In this context, Sneath and colleagues [ 37 ] highlighted that changes in consumer behavior often represent self-protective strategies aimed at managing depressive states and negative emotions by restoring a positive sense of self. Importantly, a recent study conducted during the COVID-19 pandemic showed that depression predicted the phenomenon of the over-purchasing, which was framed as the degree to which people had increased their purchases of some necessities goods (e.g. food, water, sanitary products, pharmacy products, etc.) because of the pandemic [ 43 ].

A recent study recommended a differentiation between necessity and non-necessity products to better understand consumer behavior in response to stressful situations [ 18 ]. According to the authors, contrasting findings on the link between stress and consumer behavior may be due to the fact that stress affects certain purchasing behaviors negatively, but others positively, depending on the type of product under investigation. On one side, it has been argued that consumers may be more willing to spend money on necessities (vs. non-necessities) by making daily survival products readily available. Accordingly, recent research documented an increase in buying necessities products (i.e., utilitarian shopping) during and after a traumatic event [ 11 ]. However, other findings showed that impulsive non-necessities purchasing (i.e., hedonic shopping) could also increase as an attempt to escape or minimize the pain for the situation. That is, non-necessities buying is used as an emotional coping strategy to manage stress and negative emotional states [ 44 ]. To reconcile these findings, Durante and Laran [ 18 ] proposed that people adopt strategic consumer behavior to restore their sense of control in stressful situations. Hence, high stress levels generally lead consumers to save money and spend strategically on products perceived as necessities. Importantly, regarding the impact of perceived stress due to the COVID-19 pandemic on consumer behavior, a recent study showed that the likelihood of purchasing quantities of food larger than usual increased with higher levels of perceived stress [ 45 ].

Another psychological factor implicated in consumer behavior that deserves special attention is self-justification strategies [ 46 ]. Self-justification refers to the cognitive reappraisal process by which people try to reduce the cognitive dissonance stemming from a contradiction between beliefs, values, and behaviors. People often try to justify their decisions to avoid the feeling of being wrong to maintain a positive sense of self [ 17 ]. In consumer behavior research, it is widely acknowledged that consumers enhance positive arguments that support their choices and downplay counterarguments that put their behavior in question [ 47 ]. Based on previous research, it is plausible that, within the context of the COVID-19 pandemic, self-justifications for buying non-necessities products may also include pursuing freedom and defying boredom [ 11 , 48 ]. Further, the hedonistic attitude of “I could die tomorrow” or “You only live once” could certainly see a resurgence during the COVID-19 emergency [ 48 ], and become a crucial mechanism accounting for individual differences in consumer behavior. Based on these considerations, in the context of the COVID-19 pandemic, self-justifications strategies could be relevant for non-necessities, since products for fun or entertainment could be more suited to the pursuit of freedom and to defy boredom. Conversely, self-justifications strategies related to necessities could be implemented to a lesser degree, due to the very nature of the products. The unprecedented context of the pandemic could already justify the purchase of those essential goods by itself, and additional justifications may not be necessary.

Furthermore, several studies have shown that household income has a significant impact in determining people’s expenses [ 49 – 51 ]. Not surprisingly, the research highlighted a positive relationship between income and spending levels [ 52 ]. Income is defined as money received regularly from work or investments. Interestingly, a different line of research pointed out that self-perceived economic stability is a more appropriate determinant of consumer behavior than actual income [ 53 , 54 ]. Usually, people tend to report subjective feelings of income inadequacy, even when their objective financial situation might not support such attitude [ 55 ]. An interesting explanation for this bias draws on the social comparison process. Indeed, the study of Karlsson et colleagues [ 53 ] showed that, compared to families who considered themselves to have a good financial situation, households which considered themselves to be worse off economically than others reported fewer purchases of goods, perceived the impact of their latest purchase on their finance to be greater, and planned purchases more carefully. Furthermore, a recent study in the context of the COVID-19 emergency showed that people who believed to have limited financial resources were the most worried about the future [ 56 , 57 ]. Therefore, in the present study, we measured both the income and the perceived economic situation of the respondents to respectively consider the objective economic information and the subjective perception of respondents. However, considering the state of uncertainty experienced by many households during the COVID-19 pandemic [ 58 ], we changed the comparison from other families to participants’ economic situation in different time frames. We asked respondents to report perceived economic stability before, during, and after the emergency.

Finally, besides situational factors related to the specific emergency, the individuals’ personality traits are likely to have a role in determining consumer behavior as well. Past research has highlighted that the Big Five personality traits [ 59 ] can differently predict consumer behavior [ 60 ]. Specifically, conscientiousness, openness, and emotional stability (alias neuroticism) were related to compulsive buying, impulsive buying, and utilitarian shopping. Nevertheless, how different personality traits are related to consumer behavior is still an open question [ 61 ].

We conducted a nationwide survey in the Italian population to examine consumer behavior during the lockdown phase due to the COVID-19 pandemic. Since the COVID-19 emergency has emphasized the usefulness of essential goods (e.g. food, medications, etc.) compared to non-essential products (e.g. luxury items such as clothes and accessories) [ 62 ], in our study, we categorized products in necessities and non-necessities. Furthermore, changes in spending levels (necessities vs. non-necessities) were examined to confirm the effect that COVID-19 had on people’s expenses. Moreover, we tried to clarify the relationship between changes in spending levels and changes in consumer behavior. Finally, we focused on the psychological factors underlying changes in consumer behavior toward the target products. Based on the literature, we expected to find an increase in purchases with a more noticeable rise in necessity products. Specifically, we explored potential underpinnings of consumer behavior by examining mood states and affective response to the emergency, perceived economic stability, self-justification for purchasing, and personality traits. All these factors have been implicated in consumer behavior in previous research, but, to our knowledge, no study has considered all of them at once. Therefore, in this study, we adopted an integrative approach to study the contribution of different psychological factors by considering their mutual influence (see Fig 1 ). Specifically, based on the empirical findings and theoretical accounts presented above, we hypothesized that during the COVID-19 pandemic:

• Higher levels of anxiety and COVID-related fear would explain changes in consumer behavior, increasing the need for buying necessities.
• Higher levels of stress would lead consumers to save money or, in alternative, would increase the need to spend money on necessities (i.e., utilitarian shopping).
• Higher levels of depressive state would be associated with an increase in the need for buying, both necessities and non-necessities.
• Higher implementation of self-justification strategies would be associated with a higher need for buying, especially for non-necessities.
• Higher perceived economic stability would be associated with an increase in the need for both necessities and non-necessities.

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https://doi.org/10.1371/journal.pone.0256095.g001

The construct involved in the study is placed in the center of the figure. Arrows depart from these constructs to show the hypothesized relationship between the constructs and the outcomes of the present study (Necessities and Non-necessities). The symbol “±” was used to take into consideration two possible opposite directions.

Materials and methods

Data were collected through a series of questionnaires, using a web-based survey implemented on the Qualtrics software. The survey was active in the period starting from April 1st, 2020, to April 20th, 2020, during the first peak of the contagion in Italy. We used a convenience sample due to the exceptional situation of the COVID-19 pandemic and the time constraints to conduct our investigation. Therefore, participants were recruited through word-of-mouth and social media. Inclusion criteria were the age over 18 and be resident in Italy. First, socio-demographic information was collected, including gender, age, annual income, and education. Then, questions on spending levels and consumer behavior, both before the COVID-19 pandemic and during the first week of lockdown in Italy, were presented, separating necessities and non-necessities. Finally, a series of specifically created questionnaires and standardized measures were administered to investigate psychological and economic variables.

Participants

A total of 4121 participants were initially recruited. For the present study, we adopted a rigorous approach, excluding 104 participants over the age of 64, since they relied on retirement benefits and -from an economic point of view- were considered a specific population, not comparable to the rest of the sample [ 63 ]. Furthermore, we excluded 184 participants who did not report spending any money before the COVID-19 pandemic on buying necessities and/or non-necessities. Therefore, 3833 Italian participants (69.3% women, age M = 34.2, SD = 12.5) were included in this study. All participants provided their written informed consent before completing the survey. The study was conducted following the ethical standards of the Declaration of Helsinki and was approved by the Institutional Review Board of Psychology (IRBP) of the Department of Psychological, Health and Territorial Sciences at G. d’Annunzio University of Chieti-Pescara (protocol number: 20004). Participants did not receive monetary or any other forms of compensation for their participation.

Demographic variables

A demographic questionnaire was administered to collect background information. The questions considered age, gender, annual income, and education. The annual income was then categorized into five levels, based on the income brackets established by the Italian National Statistical Institute [ 64 ]. Education was categorized into five levels, from elementary to school to postgraduate degree.

Consumer behavior during COVID-19

We created this questionnaire from scratch to get a comprehensive overview of people’s economic attitudes and behaviors during the COVID-19 emergency. The idea of this new questionnaire was developed based on a series of previous studies on consumer behavior [ 43 , 65 – 67 ]. However, specific items were developed from scratch adapting them to the specific unprecedented context of the COVID-19 pandemic. Specifically, these items were created following a series of group discussions between all co-authors of the present study. To directly measure changes in consumer behavior due to the COVID-19 pandemic, participants were requested to compare their actual behavior to their normal behavior before the COVID-19 outbreak. Therefore, the initial statement in the questionnaire underlined that answers had to be given by referring to the COVID-19 emergency period compared to everyday life before the outbreak.

The factor structure and reliability were evaluated in the larger sample ( n = 4121), using principal component analysis (PCA) and Cronbach’s alpha. The results revealed a six-factor structure and satisfactory reliability values (see S1 Table for more details). Note that the PCA and reliability analyses were also conducted on the current subsample, and the pattern of results did not change.

For the present study’s aims, we focused on three scales: “Necessities”, “Non-necessities”, and “Self-justifications”. Items are shown in Table 1 . The first two scales investigated consumer behavior toward the different framed products. Specifically, items addressed the individual’s attitudes, feelings, and behaviors toward necessities and non-necessities. Thus, higher scores reflected greater value (e.g., need, utility) placed on the target products.

https://doi.org/10.1371/journal.pone.0256095.t001

The self-justifications scale referred to consumers’ thoughts to justify their purchases, with no distinction between necessity and non-necessity products. Higher scores reflected a frequent use of self-justifications in purchasing items.

For all these scales, responses were given on a Likert scale ranging from 0 ( not at all ), to 100, ( extremely ). Total scores on each scale were obtained by averaging all items.

Change in spending levels due to COVID-19

A fourth scale, i.e. “Spending Habits,” was extracted from the questionnaire mentioned above. As we aimed at measuring changes in the spending levels due to the COVID-19 emergency, we decided to use single items instead of the total scale score (items are presented in Table 1 ). Specifically, we created three percentage scores: “Changes in General Spending”, “Changes in Necessities spending”, and “Changes in Non-necessities spending” considering the difference between the money spent during the first week of lockdown, and the money spent on average in a week before the emergency (see Table 1 notes). Scores reflect the change in the amount (in Euro) that people devolved in purchasing the target products (hypothetical range from -1999 to +1999).

Big Five Inventory 10-item (BFI-10)

Big Five Inventory 10-item (BFI-10) is a short scale designed to briefly assess the five personality traits with two items for each trait. Specifically, these traits are: Agreeableness (example item: “I see myself as someone who is generally trusting”), Conscientiousness (example item: “I see myself as someone who does a thorough job”), Emotional stability (example item: “I see myself as someone who is relaxed, handles stress well”), Extraversion (example item: “I see myself as someone who is outgoing, sociable”), and Openness (example item: “I see myself as someone who has an active imagination”) [ 68 ]. In addition, respondents are asked to indicate whether they agree or disagree with each statement on a 5-point Likert-type scale, ranging from 1 ( not agree at all ) to 5 ( totally agree ). A previously validated Italian version was used in the present study [ 69 ].

Generalized anxiety disorder (GAD-7)

The GAD-7 [ 70 ] is a 7-item self-reported measure designed to screen for generalized anxiety disorder and to measure the severity of symptoms, based on the DSM-IV criteria. This measure is often used in both clinical practice and research. Specifically, respondents are asked the frequency they have experienced anxiety symptoms in the past two weeks (e.g., “Not being able to stop or control worrying”) on a 4-point Likert scale, ranging from 0 ( not at all ) to 3 ( nearly every day ). The total score ranges from 0 to 21, with higher scores indicating worse anxiety symptomatology.

Patient health questionnaire (PHQ-9)

The patient health questionnaire (PHQ-9) is a 9-item self-reported brief diagnostic measure for depression [ 71 ]. Specifically, respondents are asked of the frequency they felt bothered by several depressive symptoms during the past two weeks (e.g., “Little interest or pleasure in doing things”) on a 4-point Likert scale, ranging from 0 ( not at all ) to 3 ( nearly every day ). Total score ranges from 0 to 27, with higher scores indicating higher depressive symptoms.

Perceived Stress Scale (PSS)

The Perceived Stress Scale (PSS) is a 14-item self-report measure designed to assess the degree to which situations are appraised as stressful [ 72 ]. Each item (e.g., “In the last month, how often have you been upset because of something that happened unexpectedly?”) is rated on a 5-point Likert scale ranging from 0 ( never ) to 4 ( very often ). Thus, the total score ranges from 0 to 56, with a higher score indicating a higher level of perceived stress during the COVID-19 emergency.

Fear for COVID-19

We administered the Fear for COVID-19 questionnaire to measure fear and concerning beliefs related to the COVID-19 pandemic [ 35 , 36 , 73 ]. This questionnaire was created from the assumption that, during a health crisis, the individual’s fear is determined by both the hypothesized susceptibility (i.e., probability of contracting a disease) and the expected severity of the event (i.e., perceived consequences of being infected) [ 25 ]. Therefore, the 8 items dealt with the perceived probability of being infected by COVID-19 (Belief of contagion) and the possible consequences of the contagion (Consequences of contagion). See Table 1 for the complete list of the items. Previous studies have reported the PCA and reliability of the questionnaire [ 36 ]. Responses were given on a Likert scale ranging from 0 ( not at all ), to 100, ( extremely ). A total score was obtained by averaging the items (range 0–100).

Perceived economic stability

This questionnaire was developed to assess the subjective perception of an individual’s economic situation. The PCA in the larger sample revealed a unidimensional structure (see S2 Table for more details). The scale assessed perceived economic stability in three different timepoints: before, during, and after (in terms of expectation) the COVID-19 pandemic. Responses were given on a Likert scale ranging from 0 ( not at all ), to 100, ( extremely ). The total score was calculated by averaging these three items (range 0–100).

Statistical analysis

We preliminary investigated changes in spending levels due to the COVID-19 pandemic, comparing expenses before the emergency to expenses during the COVID-19 pandemic. First, we analyzed changes in the average general spending level. Then, we performed dependent (paired) sample t -tests between “Changes in necessities spending” and “Changes in non-necessities spending” to examine differences between products framed as necessities and non-necessities.

Afterward, we checked whether changes in spending levels were associated with changes in consumer behavior by conducting Pearson’s correlation analyses, respectively between “Changes in necessities spending” and “Necessities”, and “Changes in non-necessities spending” and “Non-necessities” scores.

Finally, to investigate the psychological underpinnings of consumer behavior, we performed two hierarchical multiple regressions, respectively, with “Necessities” (Model 1) and “Non-necessities” (Model 2) as outcomes. The same predictors were entered in Model 1 and Model 2. Specifically, the order of the steps was designed to include at first the socio-demographic information as control variables. Hence, we entered the age, gender, annual income brackets, and education in the first step. In Step 2, we included the personality measures (i.e., Big-Five personality traits) since these traits are stable and are not affected by the specific situation. In Step 3, Anxiety, Depression, and Stress were entered, to analyze the impact of emotional antecedents of consumer. Further, we decided to include Fear for the COVID-19 in a separate fourth step to evaluate the effect of this specific aspect. We included perceived economic stability at Step 5 after the psychological variables. This choice allowed to analyze the impact of the perceived economic stability after controlling for the role of emotional antecedents on consumer behavior. Finally, following the same logic, we included self-justifications strategies.

Considering “Changes in General spending”, our results showed that our sample reported, on average, an increase of 60.48% in the general spending level during the first week of lockdown. Furthermore, significant differences between “Changes in Necessities spending” and “Changes in Non-necessities spending”, t (3832) = 11.99, p < .001, were detected. Indeed, the spending level for necessities products showed an increase of 90.69%, while for non-necessities products, the average increase was only 36.11%. Means and standard deviations are presented in Table 2 .

https://doi.org/10.1371/journal.pone.0256095.t002

The results of the correlation analyses indicated that there was a significant positive association between “Changes in necessities spending” and “Necessities”, r (3831) = .22, p < .001. Furthermore, a significant positive association was highlighted between “Changes in non-necessities spending” and “Non-necessities”, r (3831) = .23, p < .001. Therefore, people’s changes in spending levels were related to their attitudes and feelings toward specific products. This finding supported our choice to investigate the psychological underpinnings of people’s consumer behavior.

Hierarchical multiple regression analyses were performed on the two consumer behavior scores. In addition, control variables, psychological factors, and economic variables were entered as predictors as detailed above.

Regarding Model 1 (Necessities), results showed that all the steps explained a significant amount of additional variance (see Table 3 for detailed results). When personality traits were entered in the model (Step 2), only agreeableness, openness, and emotional stability negatively predicted the outcome. However, when anxiety, depression, and stress were entered in the model (Step 3), only openness remained statistically significant. The variables entered in Step 3 contributed to explaining 7% of the variance, with anxiety and stress positively predicting the outcome. Adding fear for COVID-19 in the following step increased the explained variance by 6%, reduced the impact of anxiety, and completely overrode the effect of stress, which became non-significant. In the following steps, perceived economic stability offered a small but significant contribution (1%), and Self-justifications explained even further variance (4%). Overall, in the final step, the final model explained 23% of the variance in Necessities. Inspecting coefficients, we found that, after accounting for control variables, openness ( p < .001), anxiety ( p < .001), fear for COVID-19 ( p < .001), perceived economic stability ( p < .001), and self-justifications ( p < .001) emerged as significant predictors.

https://doi.org/10.1371/journal.pone.0256095.t003

In Model 2 (Non-necessities), results indicated that each step significantly contributed to explaining the outcome (see Table 4 ). In Step 2, personality traits explained 2% of the outcome variance, with consciousness and openness emerging as significant predictors and remaining significant until the final step. Notably, consciousness was negatively associated with non-necessities behavior, while high scores in openness were associated with higher scores on the Non-necessities scale. In Step 3, only depression was significantly and positively related to the outcome and remained so in subsequent models. Both fear for COVID-19 and perceived economic stability further significantly explained the outcome, albeit weakly (about 1% of variance each one). Higher levels of fear and perceived economic stability were associated with higher scores on the Non-necessities scale. Noteworthy, adding Self-justifications in the final step explained a substantial share of variance, equal to 12%. Specifically, higher scores on self-justifications were associated with higher scores on the Non-necessities scale. Furthermore, self-justifications also had a greater impact on non-necessities compared to those had on necessities, t (7664) = -10.60, p < .05. Total variance explained in the final step was 22%, with conscientiousness ( p < .001), openness ( p = .001), depression ( p = .002), perceived economic stability ( p = .009), and self-justifications ( p < .001) being significant predictors.

https://doi.org/10.1371/journal.pone.0256095.t004

The present study aimed to examine changes in consumer behavior and their psychological antecedents during the lockdown period due to the COVID-19 pandemic. We were specifically interested in separating necessity and non-necessity products since previous studies suggested that such a distinction is helpful to better understand consumer behavior[ 18 , 74 ]. First, our results indicated a 61% increase in spending levels during the first week of the lockdown, compared to the average expenses before the health crisis. Furthermore, spending levels were differently increased for buying products framed as necessities (91%) and non-necessities (36%). Second, we examined consumer behavior through Necessities and Non-necessities scales, which included measures related to the psychological need of buying, the specific aspects of the purchase experience (e.g., impulsiveness, perceived utility, satisfaction), and the number of products purchased. Our results highlighted that changes in consumer behavior were positively associated with changes in spending levels during the COVID-19 emergency.

Finally, we focused on psychological factors that can explain these changes in consumer behavior. In this context, our hypothesis about the role of the identified psychological factors in predicting consumer behavior during COVID-19 was supported. Also, our findings confirmed the importance of separating necessities from non-necessities products, as we found that they had different psychological antecedents. Regarding the investigation on spending levels, our findings are in line with sales data reporting that, during the COVID-19 pandemic, consumer priorities have become more centered on necessities, including food, hygiene, and cleaning products[ 7 , 62 ]. Therefore, the present study confirmed the greater tendency to buy necessities products during the COVID-19 pandemic. It is noteworthy to mention that our sample also reported an increase in spending levels related to non-necessities products. These data can be explained by referring to previous research that considered increases in non-necessities spending levels to respond to the hedonistic pursuit of freedom, defying boredom, restoring the sense of self, and compensatory mechanism, to alleviate negative psychological states[ 16 , 32 , 34 , 37 , 44 , 75 ]. However, as highlighted in the study by Forbes and colleagues[ 76 ] these hedonic needs and compensatory mechanisms can have a different impact during or in the aftermath of a crisis. In addition, the authors highlighted that the consumption of non-necessities products increased, as a way of coping to alleviate negative psychological states, particularly in the short term after a natural disaster. According to these results, a recent study conducted during the COVID-19 pandemic suggested that some factors, such as the degree of perceived threat, may vary during the COVID-19 pandemic, thus, having a different impact on consumer behavior[ 77 ]. Therefore, future research could delve into the analysis of changes in consumer behavior over time in relation to the different phases of the COVID-19 pandemic.

Regarding our investigation of consumer behavior’s antecedent psychological factors, we found partly different antecedents for necessities and non-necessities. Regarding demographic effects, in the present study, we found that men were more oriented in terms of needs and feelings toward non-necessities than women. A possible explanation could consider the context of the COVID-19, whereas the lockdown has imposed the closure of physical stores. In this context, it could be appropriate to refer to those studies that found several gender differences between consumer e-commerce adoption and purchase decision making. Specifically, research has shown that men and women have different psychological pre-disposition of web-based purchases, with men having more positive attitudes toward online shopping[ 78 , 79 ]. Furthermore, a study conducted during COVID-19 showed that women spent more time on necessities such as childcare and chores compared to men[ 80 ]. Regarding age differences, we found that younger people were more oriented toward non-necessities products. A study conducted in Italy during the COVID-19 pandemic highlighted that older adults showed lower negative emotions than younger adults[ 73 , 81 , 82 ]. In this view, it is possible that lower emotional antecedents, such as depressive states, lowered the need to buy non-necessities for more aged people. Another study conducted during the COVID-19 pandemic showed that older adults, aged 56 to 75, had significantly reduced the purchase of non-necessities goods compared to younger people[ 83 ]. Furthermore, considering the closure of physical stores, it is possible that younger people were more able and got used to buy a broader range of non-necessities products by e-commerce. However, it is important to note that we excluded in the present study people aged over 65. We also found a positive effect of income on necessities. A possible explanation is that people more stable from an economic point of view were more oriented to feel the need to buy products. However, surprisingly we did not find this effect for non-necessities. Finally, we found a positive effect of education on non-necessities. This data is congruent with another study conducted during the COVID-19 pandemic, showing that people with higher education (e.g., bachelor’s degrees and graduate or professional degrees) tended to buy an unusual amount of goods than people with lower education[ 84 ].Furthermore, another study highlighted that during COVID-19 pandemic entertainment and outdoor expenses significantly varied across different education groups[ 85 ]. Considering the present results, further studies should better investigate the impact of socio-demographic factors on the need to purchase necessities and non-necessities during health emergency and natural disaster.

Furthermore, after accounting for control variables (gender, age, income brackets, and education), consumer behavior toward necessities was explained by personality traits (openness), negative emotions (anxiety and COVID- related fear), perception of economic stability, and self-justifications. On the other side, consumer behavior toward non-necessities was explained by conscientiousness, openness, depression, perceived economic stability, and self-justifications.

Present findings showed that negative feelings have a considerable role in predicting changes in consumer behavior related to necessities products. This result is consistent with previous literature showing that, during a health crisis, fear and anxiety are developed from perceived feelings of insecurity and instability[ 30 ]. To reduce these negative feelings, people tend to focus on aspects and behaviors that can help them regain control and certainty, such as buying[ 86 ]. Therefore, changes in consumer behavior could be explained as a remedial response to reduce fear and anxiety related to the COVID-19 emergency. According to our hypothesis, present findings indicated that fear and anxiety play an important role in predicting changes in consumer behavior related to necessities. In contrast, no significant effects were found on non-necessities. A possible explanation for this remarkable difference can be provided by research in survival psychology, which highlighted that individuals might undergo behavioral changes during events such as natural disasters or health crises, including herd behavior, panic buying, changes in purchasing habits, and decision making[ 8 , 76 ]. Following these changes, individuals can be more engaged in behaviors that are necessary for survival[ 26 , 87 ]. In this view, COVID-related fear and anxiety could lead individuals to feel the need to buy necessities products useful for daily survival.

Stress is another factor suggested to differently affect changes in consumer behavior toward necessities and non-necessities[ 18 ]. It is noticeable that consumers experiencing stressful situations may show increased spending behavior, explicitly directed toward products that the consumer perceives to be necessities and that allow for control in an otherwise uncontrollable environment[ 18 ]. Our results partly support this position, showing that stress has a specific role in predicting changes in consumer behavior related to necessities but not to non-necessities. However, the role of stress was no longer significant when fear was entered in the regression model. Noteworthy, we focused on fear for COVID-19, therefore, it is possible that in such an exceptionally unprecedented situation, fear had a prominent role compared to stress. Moreover, previous literature shows that the relationship between fear and consumer behavior increases as the type of fear measured becomes more specific[ 88 ]. In this sense, further studies could delve into the relationship between fear and stress in relation to consumer behavior.

Notably, past studies had found a relationship between depressive states and consumer behavior, suggesting that changes in consumer behavior can represent self-protective behaviors to manage negative affective states[ 37 ]. The role of depression was highlighted by our results in respect to consumer behavior only related to non-necessities. Therefore, conversely to the study conducted in the UK and Ireland during the COVID-19 pandemic by Bentall et colleagues (2021), we did not find a relationship between depression and buying necessities. It is important to note that we described non-necessities products as “products for fun or entertainment”. In our opinion, people with higher levels of depressive symptoms may feel a greater need for this kind of product. Thus, people were drawn more toward this category of purchases because it was better suited to satisfy compensatory strategies to improve their negative emotional states. However, future studies are required to investigate this possibility and deepen the relationship between depressive states and the need to buy necessities and non-necessities. Furthermore, considering that depressive mood can be related to severe dysfunctional aspects of consumer behavior, such as impulsivity and compulsivity, future clinical studies should further investigate this relationship.

Furthermore, based on the limited and contrasting literature on this topic, we considered the role of personality traits. As suggested by previous studies, conscientiousness and openness were found to be associated with consumer behavior[ 89 – 91 ]. Interestingly, we found that personality traits were more relevant in consumer behavior toward non-necessities than necessities products. Only openness had a role in (negatively) predicting consumer behavior toward necessities, whereas conscientiousness (negatively) and openness (positively) predicted consumer behavior toward non-necessities. Unexpectedly, we found that people with a high level of openness showed high scores in consumer behavior toward non-necessities but low scores in necessities products. We speculated that individuals with higher levels of openness, which are more inclined to develop interests and hobbies[ 92 ], might have experienced a higher need to purchase non-necessities products during the lockdown. On the other hand, individuals with lower scores of openness, which tend to prefer familiar routines to new experiences and have a narrower range of interests, might have been more focused on purchasing necessity products. However, further studies should investigate the different roles of openness on necessities vs non-necessities consumer behavior. Globally, we acknowledge that the specific role and directions of these different personality traits on consumer behavior toward necessities and non-necessities is still an unexplored question, fully deserving of further investigations.

Finally, in both regression models, perceived economic stability and self-justifications predicted changes in consumer behavior. It comes as no surprise that individuals who perceived themselves and their family as more economically stable were prone to spend more in both products categories, necessities and non-necessities [ 52 , 53 ]. More intriguing, we found that the self-justifications that consumers adopted to motivate their purchases were a strong predictor of consumer behavior, especially in relation to non-necessities, where it explained the largest amount of variance (12%). Therefore, our hypothesis on the greater impact of self-justifications strategies on non-necessities compared to necessities was confirmed. Non-necessities, framed as products for fun or entertainment, seem more suited to satisfy that pursuit of freedom and the need to defy boredom that people increasingly experienced during the COVID-19 pandemic[ 48 ]. Therefore, we confirmed that the hedonistic attitude is an important predictor of consumer behavior during the COVID-19 pandemic. This result supported and extended previous literature showing that, during a crisis, changes in consumer behavior are related to self-justifications and rationalizations that people formulate to feel right in making their purchases, including the pursuit of freedom and the reduction of boredom[ 11 , 48 ]. Companies and markets can acknowledge this process and use it to develop new marketing strategies to meet consumers’ actual needs, feelings, and motivation to purchase during the COVID-19 emergency[ 12 ]. On the one hand, satisfying these needs could support and favor well-being and the positive sense of self, which are essentially sought by the consumer developing such self-justification strategies[ 17 ]. On the other hand, focusing on strategies that consider these psychological self-justifications could be a winning marketing strategy for increasing sales, contributing to the economic recovery after the COVID-19 outbreak[ 13 ].

The results of the present study highlighted that the COVID-19 pandemic had a considerable impact on consumer behavior. In our sample, this impact resulted in increased spending levels accompanied by an increase in the psychological need to purchase both necessities and non-necessities products. Furthermore, our findings demonstrated that several psychological factors predicted these changes in consumer behavior. Notably, consumer behavior respectively toward necessities and non-necessities differed on some psychological predictors.

Some limits of the current study need to be acknowledged. First, we studied consumer behavior from a broad perspective on a non-clinical sample, therefore we did not include dysfunctional aspects related to consumer behavior, such as impulsivity and compulsivity buying and hoarding behavior, which the emergency may elicit. Hence, in relation to the COVID-19 pandemic, it would be interesting to integrate our results with investigations of dysfunctional aspects of consumer behavior. Furthermore, since the unique opportunity to study psychological factors and consumer behavior during this unprecedented period, we adopted an integrative approach to consider the impact of several psychological factors at once, obtaining one of the first overviews of consumer behavior during the COVID-19 pandemic. However, combining all these psychological factors could have led to an aggregation bias[ 93 ], which could have masked the specific roles of each of the individual factors influencing consumer behavior. Therefore, future studies could adopt a more fine-grained approach to disentangle the role of each factor. Another limit is that we collected data during the initial stage of the COVID-19 outbreak in Italy. Notably, we reasoned that focusing on the very first period of the lockdown would likely allow us to capture the greater shift in consumer behavior, thus offering compelling evidence on the first impact of the pandemic on consumers. Nevertheless, it is likely that consumer behavior will undergo further changes in the longer term. Hence, future studies should investigate the evolution of consumer behaviors in relation to the development of the pandemic. Indeed, it is likely that when the “sense of urgency” and the negative affective reaction to the emergency will decrease, also the need for buying and purchases preferences would change. Furthermore, since we asked participants to estimate their weekly expenditures before and during the COVID-19 pandemic, it is important to keep in mind that our study focused on the people’s perception of changes in expenses. We did not know how much reliable these estimations were, and it is possible that objective assessment of change in the amount of money spent before and during the pandemic diverge from subjective views. In the present study, we focused on individual internal factors that could influence consumer behavior. However, other external factors, including the lockdown restrictions as the closure of physical stores, had certainly had a further impact on consumer behavior. Notwithstanding these limitations, this study represents one of the first attempts to examine changes in consumer behavior during the COVID-19 pandemic from a behavioral economic perspective, providing a thorough analysis of the psychological factors driving changes in consumer behavior, with a direct link to previous psychological research in consumer behavior. Furthermore, our results provided new evidence on the role of psychological factors influencing necessities and non-necessities spending and extended our knowledge of the antecedents of consumer behavior changes during the unprecedented health crisis we are experiencing.

In conclusion, the present study, by shedding new light on changes in people’s behavior due to the pandemic, fits into the growing body of research which helps increase economic and psychological preparedness in the face of future health emergencies.

Supporting information

S1 table. pattern matrix of the pca for the questionnaire on consumer behavior during the covid-19 pandemic..

https://doi.org/10.1371/journal.pone.0256095.s001

S2 Table. PCA for the “Perceived economic stability” questionnaire.

https://doi.org/10.1371/journal.pone.0256095.s002

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OPINION article

Factors affecting impulse buying behavior of consumers.

• Instituto Superior de Gestão, Lisbon, Portugal

In recent years, the study of consumer behavior has been marked by significant changes, mainly in decision-making process and consequently in the influences of purchase intention ( Stankevich, 2017 ).

The markets are different and characterized by an increased competition, as well a constant innovation in products and services available and a greater number of companies in the same market. In this scenario it is essential to know the consumer well ( Varadarajan, 2020 ). It is through the analysis of the factors that have a direct impact on consumer behavior that it is possible to innovate and meet their expectations. This research is essential for marketers to be able to improve their campaigns and reach the target audience more effectively ( Ding et al., 2020 ).

Consumer behavior refers to the activities directly involved in obtaining products /services, so it includes the decision-making processes that precede and succeed these actions. Thus, it appears that the advertising message can cause a certain psychological influence that motivates individuals to desire and, consequently, buy a certain product/service ( Wertenbroch et al., 2020 ).

Studies developed by Meena (2018) show that from a young age one begins to have a preference for one product/service over another, as we are confronted with various commercial stimuli that shape our choices. The sales promotion has become one of the most powerful tools to change the perception of buyers and has a significant impact on their purchase decision ( Khan et al., 2019 ). Advertising has a great capacity to influence and persuade, and even the most innocuous, can cause changes in behavior that affect the consumer's purchase intention. Falebita et al. (2020) consider this influence predominantly positive, as shown by about 84.0% of the total number of articles reviewed in the study developed by these authors.

Kumar et al. (2020) add that psychological factors have a strong implication in the purchase decision, as we easily find people who, after having purchased a product/ service, wonder about the reason why they did it. It is essential to understand the mental triggers behind the purchase decision process, which is why consumer psychology is related to marketing strategies ( Ding et al., 2020 ). It is not uncommon for the two areas to use the same models to explain consumer behavior and the reasons that trigger impulse purchases. Consumers are attracted by advertising and the messages it conveys, which is reflected in their behavior and purchase intentions ( Varadarajan, 2020 ).

Impulse buying has been studied from several perspectives, namely: (i) rational processes; (ii) emotional resources; (iii) the cognitive currents arising from the theory of social judgment; (iv) persuasive communication; (v) and the effects of advertising on consumer behavior ( Malter et al., 2020 ).

The causes of impulsive behavior are triggered by an irresistible force to buy and an inability to evaluate its consequences. Despite being aware of the negative effects of buying, there is an enormous desire to immediately satisfy your most pressing needs ( Meena, 2018 ).

The importance of impulse buying in consumer behavior has been studied since the 1940's, since it represents between 40.0 and 80.0% of all purchases. This type of purchase obeys non-rational reasons that are characterized by the sudden appearance and the (in) satisfaction between the act of buying and the results obtained ( Reisch and Zhao, 2017 ). Aragoncillo and Orús (2018) also refer that a considerable percentage of sales comes from purchases that are not planned and do not correspond to the intended products before entering the store.

According to Burton et al. (2018) , impulse purchases occur when there is a sudden and strong emotional desire, which arises from a reactive behavior that is characterized by low cognitive control. This tendency to buy spontaneously and without reflection can be explained by the immediate gratification it provides to the buyer ( Pradhan et al., 2018 ).

Impulsive shopping in addition to having an emotional content can be triggered by several factors, including: the store environment, life satisfaction, self-esteem, and the emotional state of the consumer at that time ( Gogoi and Shillong, 2020 ). We believe that impulse purchases can be stimulated by an unexpected need, by a visual stimulus, a promotional campaign and/or by the decrease of the cognitive capacity to evaluate the advantages and disadvantages of that purchase.

The buying experience increasingly depends on the interaction between the person and the point of sale environment, but it is not just the atmosphere that stimulates the impulsive behavior of the consumer. The sensory and psychological factors associated with the type of products, the knowledge about them and brand loyalty, often end up overlapping the importance attributed to the physical environment ( Platania et al., 2016 ).

The impulse buying causes an emotional lack of control generated by the conflict between the immediate reward and the negative consequences that the purchase can originate, which can trigger compulsive behaviors that can become chronic and pathological ( Pandya and Pandya, 2020 ).

Sohn and Ko (2021) , argue that although all impulse purchases can be considered as unplanned, not all unplanned purchases can be considered impulsive. Unplanned purchases can occur, simply because the consumer needs to purchase a product, but for whatever reason has not been placed on the shopping list in advance. This suggests that unplanned purchases are not necessarily accompanied by the urgent desire that generally characterizes impulse purchases.

The impulse purchases arise from sensory experiences (e.g., store atmosphere, product layout), so purchases made in physical stores tend to be more impulsive than purchases made online. This type of shopping results from the stimulation of the five senses and the internet does not have this capacity, so that online shopping can be less encouraging of impulse purchases than shopping in physical stores ( Moreira et al., 2017 ).

Researches developed by Aragoncillo and Orús (2018) reveal that 40.0% of consumers spend more money than planned, in physical stores compared to 25.0% in online purchases. This situation can be explained by the fact that consumers must wait for the product to be delivered when they buy online and this time interval may make impulse purchases unfeasible.

Following the logic of Platania et al. (2017) we consider that impulse buying takes socially accepted behavior to the extreme, which makes it difficult to distinguish between normal consumption and pathological consumption. As such, we believe that compulsive buying behavior does not depend only on a single variable, but rather on a combination of sociodemographic, emotional, sensory, genetic, psychological, social, and cultural factors. Personality traits also have an important role in impulse buying. Impulsive buyers have low levels of self-esteem, high levels of anxiety, depression and negative mood and a strong tendency to develop obsessive-compulsive disorders. However, it appears that the degree of uncertainty derived from the pandemic that hit the world and the consequent economic crisis, seems to have changed people's behavior toward a more planned and informed consumption ( Sheth, 2020 ).

Author Contributions

All authors listed have made a substantial, direct and intellectual contribution to the work, and approved it for publication.

Conflict of Interest

The authors declare that the research was conducted in the absence of any commercial or financial relationships that could be construed as a potential conflict of interest.

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Keywords: consumer behavior, purchase intention, impulse purchase, emotional influences, marketing strategies

Citation: Rodrigues RI, Lopes P and Varela M (2021) Factors Affecting Impulse Buying Behavior of Consumers. Front. Psychol. 12:697080. doi: 10.3389/fpsyg.2021.697080

Received: 19 April 2021; Accepted: 10 May 2021; Published: 02 June 2021.

Reviewed by:

Copyright © 2021 Rodrigues, Lopes and Varela. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) . The use, distribution or reproduction in other forums is permitted, provided the original author(s) and the copyright owner(s) are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

*Correspondence: Rosa Isabel Rodrigues, rosa.rodrigues@isg.pt

Disclaimer: All claims expressed in this article are solely those of the authors and do not necessarily represent those of their affiliated organizations, or those of the publisher, the editors and the reviewers. Any product that may be evaluated in this article or claim that may be made by its manufacturer is not guaranteed or endorsed by the publisher.

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Ability of the Marketing executive to effectively and efficiently design, plan and produce a product, price it, strategically promote and distinctively distribute it, is determined by his ability to make the product satisfactory to a complex set of consumers. McCarthy (1971) opines that, Marketing is the performance of business activities that direct the flow of goods and services from the producers to consumers or users in order to satisfy customers and accomplish the firm's objectives. The consumer is the pivot on which all marketing activities and decisions revolve. The consumer as the central focus of marketing activities has remained complex and unpredictable. What motivates, induces or informs his choice of one product brand rather than the other has been a subject of investigations and researches. The formulation and adoption of major classic and contemporary models in consumer and organizational behaviour for managerial decision-making in marketing practice is justified on the need to ensure knowledge of consumers for effective and efficient service delivery. Consequently, this paper broadly reviews major classic contour behaviour models in relationship to managerial decision-making in marketing practice. INTRODUCTION The subject of consumer behaviour has dominated most part of contemporary Marketing literature. Colossal investments made in product design, packaging, quality distinction, advertising, sales promotion, among others are all aimed at wooing the customer to make favorable decisions towards a firm's product offering. The firm's task is made even more complex because the complexity of the consumer makes it apparently difficult to instantly determine his needs and wants. The consumer makes decisions based on a lot of priorities, including among others personal beliefs, peer group influences, social status, economic status, cultural affinity, and other environmental variables. Therefore, firms are expected to sufficiently demonstrate how distinctive their product offerings qualify to receive the patronage of consumers. Much as it is the obvious task of the firm to study and identify the complexities in a consumer in order to serve him better, so also would the consumer consciously make deliberate efforts to choose between one firm's offering and another.

nhlakanipho sdwaba

Journal ijmr.net.in(UGC Approved)

Consumer behaviour is the study of individuals, groups, or organizations and all the activities associated with the purchase, use and disposal of goods and services, including the consumer's emotional, mental and behavioural responses that precede or follow these activities. Consumer behaviour emerged in the 1940s and 50s as a distinct sub-discipline in the marketing area. Consumer behaviour is an inter-disciplinary social science that blends elements from psychology, sociology, social anthropology, ethnography, marketing and economics, specially behavioural economics. It examines how emotions, attitudes and preferences affect buying behaviour. Characteristics of individual consumers such as demographics, personality lifestyles and behavioural variables such as usage rates, usage occasion, loyalty, brand advocacy, willingness to provide referrals, in an attempt to understand people's wants and consumption are all investigated in formal studies of consumer behaviour. The study of consumer behaviour also investigates the influences, on the consumer, from groups such as family, friends, sports, reference groups, and society in general. The study of consumer behaviour is concerned with all aspects of purchasing behaviour-from pre-purchase activities through to post-purchase consumption, evaluation and disposal activities. It is also concerned with all persons involved, either directly or indirectly, in purchasing decisions and consumption activities including brand-influencers and opinion leaders. Research has shown that consumer behaviour is difficult to predict, even for experts

International Journal of Advanced Research (IJAR)

IJAR Indexing

Consumer Buying Behaviour refers to the buying behaviour of the ultimate consumer. Many factors, specificities and characteristics influence the individual in what he is and the consumer in his decision making process, shopping habits, purchasing behaviour, the brands he buys or the retailers he goes. A purchase decision is the result of each and every one of these factors. An individual and a consumer is led by his culture, his subculture, his social class, his membership groups, his family, his personality, his psychological factors, etc. and is influenced by cultural trends as well as his social and societal environment. By identifying and understanding the factors that influence their customers, brands have the opportunity to develop a strategy, a marketing message (Unique Value Proposition) and advertising campaigns more efficient and more in line with the needs and ways of thinking of their target consumers, a real asset to better meet the needs of its customers and increase sales.

IAEME PUBLICATION

Consumer behaviour can be defined as the decisions and actions taken by the consumers which influence their purchasing behaviour. Consumers' response to external stimulus either in form of marketing strategies or personal, economic and social attributes and their decision and buying behaviour is largely affected by this stimulus. It is thus, an inter-disciplinary social science that draws upon the disciplines of anthropology, psychology, sociology and marketing apart from economics. Therefore, many marketers often believe that a clear understanding of the buying behaviour of the consumers helps to analyse both past, present and future market scenario. The examination of the economic theories is helpful in identifying the consumer behaviour from the perspective of utility, prices and other economic aspects. But they do not reflect the perceptions or attitude of a consumer towards a product. So, to understand the consumer behaviour, a more holistic approach is required, that involves economic, non-economic theories and the decision making models. This paper is an attempt to understand the economic and psychological theories that influences the consumer behaviour. Further, an attempt has been made to correlate the consumer behaviour theories and consumer decision making models to explain the factors affecting the buying decisions of the consumers.

Annals of the Bhandarkar Oriental Research Institute

Sheetal Bura

Digital marketing is the component of marketing that uses the Internet and online-based digital technologies such as desktop computers, mobile phones, and other digital media and platforms to promote products and services. Digital marketing refers to advertising through digital channels such as search engines, websites, social media, email, and mobile apps. Using these online media channels, digital marketing is the method by which companies endorse goods, services, and brands. Consumer behavior of individuals, groups, or organizations and all the activities associated with the purchase, use, and disposal of goods and services. Consumer behavior consists of how the consumer's emotions, attitudes, and preferences affect buying behavior. In today's way of marketing and sales of the products specific specialty goods lot, many options are available. It is not necessary to shop for these varieties of goods; they should do the traditional way of shopping. As we can see, technology has changed a lot and it has brought marketing to the palm top of the consumer. This is more challenging and opportunistic for a consumer to buy their products. There are lot many options such as company websites, and shopping apps, where company outlets, specialized product outlets-traditional ways of selling are available and through these options, shopping has become very easy, comfortable, and timesaving. This paper precisely studies the changing behavior of the respondent's buying pattern i.e. from traditional to the latest technology/ trends following. The researcher is intended to study the buying behavior of the respondents, who would prefer to buy the product and what are the factors responsible for buying the products. The products are easily available on the traditional platform, selling them, is called brick and mortar system. There are various types of products, which the customer plans to buy through an e-platform. During the study, it was observed that the factors that are affecting the buying pattern are-Eplatform, which includes various influential criteria. The study aims to investigate the purchasing behavior of consumers towards electronic goods and to identify the key factors that influence customers' decision to purchase these products.

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2 Abstract: The current debate was started between the economic theory and marketing theory on the issue of key determinants of consumers&#39; response to product offer. Through in depth analysis of the available data, it has confirmed that the level of education and income level are only two key determinants of consumers&#39; response to product offer. Moreover, the consumers&#39; are not homogeneous in terms of their response to product offer in context of level of education and income level. Consumers&#39; who earn more i.e. have high income level are more responsive to product offers as compared to those who earn less within a month. Convincingly, the consumers with high level of income have adequate saving and surplus amount to spend on such extra product offerings. Contrary to this condition the consumers with limited earnings do not have something extra to pay against such product offers. It is therefore confirmed that the level of income is a significant predictor of consume...

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A study on factors limiting online shopping behaviour of consumers

Rajagiri Management Journal

ISSN : 0972-9968

Article publication date: 4 March 2021

Issue publication date: 12 April 2021

This study aims to investigate consumer behaviour towards online shopping, which further examines various factors limiting consumers for online shopping behaviour. The purpose of the research was to find out the problems that consumers face during their shopping through online stores.

Design/methodology/approach

A quantitative research method was adopted for this research in which a survey was conducted among the users of online shopping sites.

As per the results total six factors came out from the study that restrains consumers to buy from online sites – fear of bank transaction and faith, traditional shopping more convenient than online shopping, reputation and services provided, experience, insecurity and insufficient product information and lack of trust.

Research limitations/implications

This study is beneficial for e-tailers involved in e-commerce activities that may be customer-to-customer or customer-to-the business. Managerial implications are suggested for improving marketing strategies for generating consumer trust in online shopping.

Originality/value

In contrast to previous research, this study aims to focus on identifying those factors that restrict consumers from online shopping.

• Online shopping

Daroch, B. , Nagrath, G. and Gupta, A. (2021), "A study on factors limiting online shopping behaviour of consumers", Rajagiri Management Journal , Vol. 15 No. 1, pp. 39-52. https://doi.org/10.1108/RAMJ-07-2020-0038

Emerald Publishing Limited

Copyright © 2020, Bindia Daroch, Gitika Nagrath and Ashutosh Gupta.

Published in Rajagiri Management Journal . Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode

Introduction

Today, people are living in the digital environment. Earlier, internet was used as the source for information sharing, but now life is somewhat impossible without it. Everything is linked with the World Wide Web, whether it is business, social interaction or shopping. Moreover, the changed lifestyle of individuals has changed their way of doing things from traditional to the digital way in which shopping is also being shifted to online shopping.

Online shopping is the process of purchasing goods directly from a seller without any intermediary, or it can be referred to as the activity of buying and selling goods over the internet. Online shopping deals provide the customer with a variety of products and services, wherein customers can compare them with deals of other intermediaries also and choose one of the best deals for them ( Sivanesan, 2017 ).

As per Statista-The Statistics Portal, the digital population worldwide as of April 2020 is almost 4.57 billion people who are active internet users, and 3.81 billion are social media users. In terms of internet usage, China, India and the USA are ahead of all other countries ( Clement, 2020 ).

The number of consumers buying online and the amount of time people spend online has risen ( Monsuwe et al. , 2004 ). It has become more popular among customers to buy online, as it is handier and time-saving ( Huseynov and Yildirim, 2016 ; Mittal, 2013 ). Convenience, fun and quickness are the prominent factors that have increased the consumer’s interest in online shopping ( Lennon et al. , 2008 ). Moreover, busy lifestyles and long working hours also make online shopping a convenient and time-saving solution over traditional shopping. Consumers have the comfort of shopping from home, reduced traveling time and cost and easy payment ( Akroush and Al-Debei, 2015 ). Furthermore, price comparisons can be easily done while shopping through online mode ( Aziz and Wahid, 2018 ; Martin et al. , 2015 ). According to another study, the main influencing factors for online shopping are availability, low prices, promotions, comparisons, customer service, user friendly, time and variety to choose from ( Jadhav and Khanna, 2016 ). Moreover, website design and features also encourage shoppers to shop on a particular website that excite them to make the purchase.

Online retailers have started giving plenty of offers that have increased the online traffic to much extent. Regularly online giants like Amazon, Flipkart, AliExpress, etc. are advertising huge discounts and offers that are luring a large number of customers to shop from their websites. Companies like Nykaa, MakeMyTrip, Snapdeal, Jabong, etc. are offering attractive promotional deals that are enticing the customers.

Despite so many advantages, some customers may feel online shopping risky and not trustworthy. The research proposed that there is a strong relationship between trust and loyalty, and most often, customers trust brands far more than a retailer selling that brand ( Bilgihan, 2016 ; Chaturvedi et al. , 2016 ). In the case of online shopping, there is no face-to-face interaction between seller and buyer, which makes it non-socialize, and the buyer is sometimes unable to develop the trust ( George et al. , 2015 ). Trust in the e-commerce retailer is crucial to convert potential customer to actual customer. However, the internet provides unlimited products and services, but along with those unlimited services, there is perceived risk in digital shopping such as mobile application shopping, catalogue or mail order ( Tsiakis, 2012 ; Forsythe et al. , 2006 ; Aziz and Wahid, 2018 ).

Literature review

A marketer has to look for different approaches to sell their products and in the current scenario, e-commerce has become the popular way of selling the goods. Whether it is durable or non-durable, everything is available from A to Z on websites. Some websites are specifically designed for specific product categories only, and some are selling everything.

The prominent factors like detailed information, comfort and relaxed shopping, less time consumption and easy price comparison influence consumers towards online shopping ( Agift et al. , 2014 ). Furthermore, factors like variety, quick service and discounted prices, feedback from previous customers make customers prefer online shopping over traditional shopping ( Jayasubramanian et al. , 2015 ). It is more preferred by youth, as during festival and holiday season online retailers give ample offers and discounts, which increases the online traffic to a great extent ( Karthikeyan, 2016 ). Moreover, services like free shipping, cash on delivery, exchange and returns are also luring customers towards online purchases.

More and more people are preferring online shopping over traditional shopping because of their ease and comfort. A customer may have both positive and negative experiences while using an online medium for their purchase. Some of the past studies have shown that although there are so many benefits still some customers do not prefer online as their basic medium of shopping.

While making online purchase, customers cannot see, touch, feel, smell or try the products that they want to purchase ( Katawetawaraks and Wang, 2011 ; Al-Debei et al. , 2015 ), due to which product is difficult to examine, and it becomes hard for customers to make purchase decision. In addition, some products are required to be tried like apparels and shoes, but in case of online shopping, it is not possible to examine and feel the goods and assess its quality before making a purchase due to which customers are hesitant to buy ( Katawetawaraks and Wang, 2011 ; Comegys et al. , 2009 ). Alam and Elaasi (2016) in their study found product quality is the main factor, which worries consumer to make online purchase. Moreover, some customers have reported fake products and imitated items in their delivered orders ( Jun and Jaafar, 2011 ). A low quality of merchandise never generates consumer trust on online vendor. A consumer’s lack of trust on the online vendor is the most common reason to avoid e-commerce transactions ( Lee and Turban, 2001 ). Fear of online theft and non-reliability is another reason to escape from online shopping ( Karthikeyan, 2016 ). Likewise, there is a risk of incorrect information on the website, which may lead to a wrong purchase, or in some cases, the information is incomplete for the customer to make a purchase decision ( Liu and Guo, 2008 ). Moreover, in some cases, the return and exchange policies are also not clear on the website. According to Wei et al. (2010) , the reliability and credibility of e-retailer have direct impact on consumer decision with regards to online shopping.

Limbu et al. (2011) revealed that when it comes to online retailers, some websites provide very little information about their companies and sellers, due to which consumers feel insecure to purchase from these sites. According to other research, consumers are hesitant, due to scams and feel anxious to share their personal information with online vendors ( Miyazaki and Fernandez, 2001 ; Limbu et al. , 2011 ). Online buyers expect websites to provide secure payment and maintain privacy. Consumers avoid online purchases because of the various risks involved with it and do not find internet shopping secured ( Cheung and Lee, 2003 ; George et al. , 2015 ; Banerjee et al. , 2010 ). Consumers perceive the internet as an unsecured channel to share their personal information like emails, phone and mailing address, debit card or credit card numbers, etc. because of the possibility of misuse of that information by other vendors or any other person ( Lim and Yazdanifard, 2014 ; Kumar, 2016 ; Alam and Yasin, 2010 ; Nazir et al. , 2012 ). Some sites make it vital and important to share personal details of shoppers before shopping, due to which people abandon their shopping carts (Yazdanifard and Godwin, 2011). About 75% of online shoppers leave their shopping carts before they make their final decision to purchase or sometimes just before making the payments ( Cho et al. , 2006 ; Gong et al. , 2013 ).

Moreover, some of the customers who have used online shopping confronted with issues like damaged products and fake deliveries, delivery problems or products not received ( Karthikeyan, 2016 ; Kuriachan, 2014 ). Sometimes consumers face problems while making the return or exchange the product that they have purchased from online vendors ( Liang and Lai, 2002 ), as some sites gave an option of picking from where it was delivered, but some online retailers do not give such services to consumer and consumer him/herself has to courier the product for return or exchange, which becomes inopportune. Furthermore, shoppers had also faced issues with unnecessary delays ( Muthumani et al. , 2017 ). Sometimes, slow websites, improper navigations or fear of viruses may drop the customer’s willingness to purchase from online stores ( Katawetawaraks and Wang, 2011 ). As per an empirical study done by Liang and Lai (2002) , design of the e-store or website navigation has an impact on the purchase decision of the consumer. An online shopping experience that a consumer may have and consumer skills that consumers may use while purchasing such as website knowledge, product knowledge or functioning of online shopping influences consumer behaviour ( Laudon and Traver, 2009 ).

From the various findings and viewpoints of the previous researchers, the present study identifies the complications online shoppers face during online transactions, as shown in Figure 1 . Consumers do not have faith, and there is lack of confidence on online retailers due to incomplete information on website related to product and service, which they wish to purchase. Buyers are hesitant due to fear of online theft of their personal and financial information, which makes them feel there will be insecure transaction and uncertain errors may occur while making online payment. Some shoppers are reluctant due to the little internet knowledge. Furthermore, as per the study done by Nikhashem et al. (2011), consumers unwilling to use internet for their shopping prefer traditional mode of shopping, as it gives roaming experience and involves outgoing activity.

Several studies have been conducted earlier that identify the factors influencing consumer towards online shopping but few have concluded the factors that restricts the consumers from online shopping. The current study is concerned with the factors that may lead to hesitation by the customer to purchase from e-retailers. This knowledge will be useful for online retailers to develop customer driven strategies and to add more value product and services and further will change their ways of promoting and advertising the goods and enhance services for customers.

Research methodology

This study aimed to find out the problems that are generally faced by a customer during online purchase and the relevant factors due to which customers do not prefer online shopping. Descriptive research design has been used for the study. Descriptive research studies are those that are concerned with describing the characteristics of a particular individual or group. This study targets the population drawn from customers who have purchased from online stores. Most of the respondents participated were post graduate students and and educators. The total population size was indefinite and the sample size used for the study was 158. A total of 170 questionnaires were distributed among various online users, out of which 12 questionnaires were received with incomplete responses and were excluded from the analysis. The respondents were selected based on the convenient sampling technique. The primary data were collected from Surveys with the help of self-administered questionnaires. The close-ended questionnaire was used for data collection so as to reduce the non-response rate and errors. The questionnaire consists of two different sections, in which the first section consists of the introductory questions that gives the details of socio-economic profile of the consumers as well as their behaviour towards usage of internet, time spent on the Web, shopping sites preferred while making the purchase, and the second section consist of the questions related to the research question. To investigate the factors restraining consumer purchase, five-point Likert scale with response ranges from “Strongly agree” to “Strongly disagree”, with following equivalencies, “strongly disagree” = 1, “disagree” = 2, “neutral” = 3, “agree” = 4 and “strongly agree” = 5 was used in the questionnaire with total of 28 items. After collecting the data, it was manually recorded on the Excel sheet. For analysis socio-economic profile descriptive statistics was used and factors analysis was performed on SPSS for factor reduction.

Data analysis and interpretation

The primary data collected from the questionnaires was completely quantified and analysed by using Statistical Package for Social Science (SPSS) version 20. This statistical program enables accuracy and makes it relatively easy to interpret data. A descriptive and inferential analysis was performed. Table 1 represents the results of socio-economic status of the respondents along with some introductory questions related to usage of internet, shopping sites used by the respondents, amount of money spent by the respondents and products mostly purchased through online shopping sites.

According to the results, most (68.4%) of the respondents were belonging to the age between 21 and 30 years followed by respondents who were below the age of 20 years (16.4%) and the elderly people above 50 were very few (2.6%) only. Most of the respondents who participated in the study were females (65.8)% who shop online as compared to males (34.2%). The respondents who participated in the study were students (71.5%), and some of them were private as well as government employees. As per the results, most (50.5%) of the people having income below INR15,000 per month who spend on e-commerce websites. The results also showed that most of the respondents (30.9%) spent less than 5 h per week on internet, but up to (30.3%) spend 6–10 h per week on internet either on online shopping or social media. Majority (97.5%) of them have shopped through online websites and had both positive and negative experiences, whereas 38% of the people shopped 2–5 times and 36.7% shopped more than ten times. Very few people (12%), shopped only once. Most of the respondents spent between INR1,000–INR5,000 for online shopping, and few have spent more than INR5,000 also.

As per the results, the most visited online shopping sites was amazon.com (71.5%), followed by flipkart.com (53.2%). Few respondents have also visited other e-commerce sites like eBay, makemytrip.com and myntra.com. Most (46.2%) of the time people purchase apparels followed by electronics and daily need items from the ecommerce platform. Some of the respondents have purchased books as well as cosmetics, and some were preferring online sites for travel tickets, movie tickets, hotel bookings and payments also.

Factor analysis

To explore the factors that restrict consumers from using e-commerce websites factor analysis was done, as shown in Table 3 . A total of 28 items were used to find out the factors that may restrain consumers to buy from online shopping sites, and the results were six factors. The Kaiser–Meyer–Olkin (KMO) measure, as shown in Table 2 , in this study was 0.862 (>0.60), which states that values are adequate, and factor analysis can be proceeded. The Bartlett’s test of sphericity is related to the significance of the study and the significant value is 0.000 (<0.05) as shown in Table 2 .

The analysis produced six factors with eigenvalue more than 1, and factor loadings that exceeded 0.30. Moreover, reliability test of the scale was performed through Cronbach’s α test. The range of Cronbach’s α test came out to be between 0.747 and 0.825, as shown in Table 3 , which means ( α > 0.7) the high level of internal consistency of the items used in survey ( Table 4 ).

Factor 1 – The results revealed that the “fear of bank transaction and faith” was the most significant factor, with 29.431% of the total variance and higher eigenvalue, i.e. 8.241. The six statements loaded on Factor 1 highly correlate with each other. The analysis shows that some people do not prefer online shopping because they are scared to pay online through credit or debit cards, and they do not have faith over online vendors.

Factor 2 – “Traditional shopping is convenient than online shopping” has emerged as a second factor which explicates 9.958% of total variance. It has five statements and clearly specifies that most of the people prefer traditional shopping than online shopping because online shopping is complex and time-consuming.

Factor 3 – Third crucial factor emerged in the factor analysis was “reputation and service provided”. It was found that 7.013% of variations described for the factor. Five statements have been found on this factor, all of which were interlinked. It clearly depicts that people only buy from reputed online stores after comparing prices and who provide guarantee or warrantee on goods.

Factor 4 – “Experience” was another vital factor, with 4.640% of the total variance. It has three statements that clearly specifies that people do not go for online shopping due to lack of knowledge and their past experience was not good and some online stores do not provide EMI facilities.

Factor 5 – Fifth important factor arisen in the factor analysis was “Insecurity and Insufficient Product Information” with 4.251% of the total variance, and it has laden five statements, which were closely intertwined. This factor explored that online shopping is not secure as traditional shopping. The information of products provided on online stores is not sufficient to make the buying decision.

Factor 6 – “Lack of trust” occurred as the last factor of the study, which clarifies 3.920% of the total variance. It has four statements that clearly state that some people hesitate to give their personal information, as they believe online shopping is risky than traditional shopping. Without touching the product, people hesitate to shop from online stores.

The study aimed to determine the problems faced by consumers during online purchase. The result showed that most of the respondents have both positive and negative experience while shopping online. There were many problems or issues that consumer’s face while using e-commerce platform. Total six factors came out from the study that limits consumers to buy from online sites like fear of bank transaction and no faith, traditional shopping more convenient than online shopping, reputation and services provided, experience, insecurity and insufficient product information and lack of trust.

The research might be useful for the e-tailers to plan out future strategies so as to serve customer as per their needs and generate customer loyalty. As per the investigation done by Casalo et al. (2008) , there is strong relationship between reputation and satisfaction, which further is linked to customer loyalty. If the online retailer has built his brand name, or image of the company, the customer is more likely to prefer that retailer as compared to new entrant. The online retailer that seeks less information from customers are more preferred as compared to those require complete personal information ( Lawler, 2003 ).

Online retailers can adopt various strategies to persuade those who hesitate to shop online such that retailer need to find those negative aspects to solve the problems of customers so that non-online shopper or irregular online consumer may become regular customer. An online vendor has to pay attention to product quality, variety, design and brands they are offering. Firstly, the retailer must enhance product quality so as to generate consumer trust. For this, they can provide complete seller information and history of the seller, which will preferably enhance consumer trust towards that seller.

Furthermore, they can adopt marketing strategies such as user-friendly and secure website, which can enhance customers’ shopping experience and easy product search and proper navigation system on website. Moreover, complete product and service information such as feature and usage information, description and dimensions of items can help consumer decide which product to purchase. The experience can be enhanced by adding more pictures, product videos and three-dimensional (3D), images which will further help consumer in the decision-making process. Moreover, user-friendly payment systems like cash on deliveries, return and exchange facilities as per customer needs, fast and speedy deliveries, etc. ( Chaturvedi et al. , 2016 ; Muthumani et al. , 2017 ) will also enhance the probability of purchase from e-commerce platform. Customers are concerned about not sharing their financial details on any website ( Roman, 2007 ; Limbu et al. , 2011 ). Online retailers can ensure payment security by offering numerous payment options such as cash on delivery, delivery after inspection, Google Pay or Paytm or other payment gateways, etc. so as to increase consumer trust towards website, and customer will not hesitate for financial transaction during shopping. Customers can trust any website depending upon its privacy policy, so retailers can provide customers with transparent security policy, privacy policy and secure transaction server so that customers will not feel anxious while making online payments ( Pan and Zinkhan, 2006 ). Moreover, customers not only purchase basic goods from the online stores but also heed augmented level of goods. Therefore, if vendors can provide quick and necessary support, answer all their queries within 24-hour service availability, customers may find it convenient to buy from those websites ( Martin et al. , 2015 ). Sellers must ensure to provide products and services that are suitable for internet. Retailers can consider risk lessening strategies such as easy return and exchange policies to influence consumers ( Bianchi and Andrews, 2012 ). Furthermore, sellers can offer after-sales services as given by traditional shoppers to attract more customers and generate unique shopping experience.

Although nowadays, most of the vendors do give plenty of offers in form of discounts, gifts and cashbacks, but most of them are as per the needs of e-retailers and not customers. Beside this, trust needs to be generated in the customer’s mind, which can be done by modifying privacy and security policies. By adopting such practices, the marketer can generate customers’ interest towards online shopping.

Conceptual framework of the study

Socioeconomic status of respondents

KMO and Bartlett’s test

Cronbach’s α

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Further reading

Grabner-Kräuter , S. and Kaluscha , E.A. ( 2003 ), “ Empirical research in on-line trust: a review and critical assessment ”, International Journal of Human-Computer Studies , Vol. 58 No. 6 , pp. 783 - 812 .

Nurfajrinah , M.A. , Nurhadi , Z.F. and Ramdhani , M.A. ( 2017 ), “ Meaning of online shopping for indie model ”, The Social Sciences , Vol. 12 No. 4 , pp. 737 - 742 , available at: https://medwelljournals.com/abstract/?doi=sscience.2017.737.742

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3.2 Factors That Influence Consumer Buying Behavior

Learning outcomes.

By the end of this section, you will be able to:

• 1 List and describe the cultural factors that influence consumer buying behavior.
• 2 Explain the social factors that impact consumer buying behavior.
• 3 Discuss the personal factors that influence consumer buying behavior.
• 4 Describe the psychological factors that influence consumer buying behavior.
• 5 Explain situational factors that impact consumer buying behavior.

Cultural Factors That Influence Consumer Buying Behavior

Why people buy isn’t always a straightforward question. Think about the last time you bought a car, a bike, or other item. Why did you buy that specific make and model? Was it because its sleek style made you feel good about yourself? Perhaps you bought a particular brand because someone in your family bought the same brand. These are just a couple of examples of some of the factors that influence consumer buying behavior. Let’s examine some others.

Cultural factors comprise a set of values or ideologies of a particular community or group of individuals. These can include culture, subcultures, social class, and gender as outlined in Figure 3.4 .

Culture refers to the values, ideas, and attitudes that are learned and shared among members of a group. Human behavior is largely learned. When you were a child, you learned basic values, perceptions, wants, and behaviors from your family and other external influences like the schools and churches you attended. Consider how these values and attitudes have shaped your buying behavior. For example, in a traditional Hindu wedding in India, a bride may wear red lehenga to the wedding, whereas Christian brides typically wear white. In India, widows are expected to wear white, whereas widows in the United States and other parts of the world generally wear more somber colors to a funeral. 2

A subculture is a group of people, such as environmentalists or bodybuilders, who share a set of values. Ethnic and racial groups share the language, food, and culture of their heritage. Other subcultures, like the biker culture, which revolves around a dedication to motorcycles, are united by shared experiences. The Amish subculture is known for its conservative beliefs and reluctance to adapt to modern technology. Think about what subculture(s) you may belong to and how they influence your buying behavior. For example, hip-hop music has long been associated with fashion, particularly sneakers. Run DMC’s 1986 hit “My Adidas” led to the first endorsement deal between a fashion brand and a musical act, setting the stage for lucrative partnerships spanning the decades since—Master P with Converse , Jay-Z and 50 Cent with Reebok , Missy Elliott and Big Sean with Adidas , and Drake with Nike .

Link to Learning

Failures and inspirations.

Cultural factors play a major role in determining how best to market to consumers. There are numerous examples of company efforts that failed because they did not reflect an understanding of the culture in a particular market. Watch this CNBC video on why Starbucks failed in Australia and read this article about how Coca-Cola and PepsiCo failed when they first moved into the Chinese market.

Also check out this CNBC video about why 7-Eleven failed in Indonesia.

Failures are always important because they come with learned knowledge, and if you understand the WHY behind the failure, the learning can lead to shifts in strategy and possible success. Read the inspiring story behind Run DMC ’s revolutionary market deal with Adidas and how it opened the door for current artists like 50 Cent, Jay-Z, and Puffy.

For more success stories, check out these videos about numerous companies that got it right . Examples include stories from Rihanna’s Fenty beauty line, Adobe ’s “When I See Black” ad, Bumble ’s “Find Me on Bumble” campaign, and many more!

Your social class is also an important influence on your buying behavior. Sociologists base definitions of social class on several different factors, including income, occupation, and education. While there is disagreement on the number of social classes defined by income in the United States, many sociologists suggest five social classes: upper class, upper-middle class, lower-middle class, working class, and the economically disadvantaged. 3 Income is largely defined by disposable income (the money you have left to spend or save after taxes are deducted), but its influence goes beyond just dollars, euros, yen, etc. For example, a lower-middle-class individual might focus primarily on price when considering a product, whereas an upper-middle-class person might consider product quality and features before price. However, you also can be influenced by a social class to which you don’t belong but by which you want to be accepted. Have you ever spent money you really didn’t have on brand name running shoes or a designer purse because that’s what your friends have?

Finally, your gender plays an important role in your buying behavior. People of different genders not only want different products as a result of their upbringing and socialization, but they approach shopping itself with different motives, perspectives, and considerations. While it’s always dangerous to stereotype, those who identify as male typically follow a utilitarian, more logic-based approach when shopping. They want a quick, effortless shopping experience. Those who identify as female, on the other hand, make decisions on a more emotional level. Zappos considers these different motives and provides different layouts on their landing pages for different genders. While the “male” version focuses on providing clear navigation by product categories, the “female” version aims to sell on emotion. 4

Behind the Gender Differences

Gender differences lead to different buying behaviors. Read this article about one such example, Birchbox , a hair care and skin care subscription service. For even more information, check out this article about the reasons for the differences , which include purpose, experience, brain make-up, and more. Interesting reads!

You can also watch this Gaby Barrios TED Talk. Barrios is a marketing expert who speaks about how targeting consumers based on gender is bad for business.

This humorous video from The Checkout, a TV show about consumer affairs, discusses gender marketing packaging decisions and their impact on your wallet.

Another video about fashion brands focuses on how their parent companies leverage gender strategies.

Careers In Marketing

Women in marketing.

Let’s look at gender from another angle—women advancing in marketing. Part of a series about jobs in marketing , this article examines equity in the world of marketing. Findings include data on gender balance and inequality, and guidance on ways to improve.

For an inspirational moment, be sure to read these heartwarming stories about six mothers of great marketers .

Social Factors That Influence Consumer Buying Behavior

Social factors are those factors that are prevalent in the society where the consumer lives. Every society is composed of individuals who have different preferences and behaviors, and these individuals influence the personal preferences of others in the society. Humans are social individuals, and the influences of people’s family, reference groups, and roles and status (refer to Figure 3.5 ) have a huge impact on their buying behavior.

Let’s first consider the influence of family . It is generally believed that most people pass through two families: a family of orientation (i.e., the family to which you were born or with whom you grew up) and a family of procreation (the family formed through marriage or cohabitation, including your spouse, partner, and/or children). Consider first the family of orientation. When you were growing up, whether or not you recognized it, you likely developed some degree of buying behavior through watching adult members of your household and probably tend to buy the same products or services as you grow older. Was your father a die-hard Chevy driver? If so, the chances are good that you’ll probably at least consider buying a Chevy, too. Now consider the influence that your spouse, partner, and/or children have on your buying behavior. You may want that Chevy pickup because that’s what your father drove, but your spouse or partner may subtly (or perhaps not so subtly) sway you toward a Chevy crossover SUV because it’s more practical with kids to transport to school, sports, and other activities.

Reference groups are those groups with which you like to be associated. These can be formal groups, such as members of a country club, church, or professional group, or informal groups of friends or acquaintances. These groups serve as role models and inspirations, and they influence what types of products you buy and which brands you choose. Reference groups are characterized by having opinion leaders—people who influence others. These opinion leaders aren’t necessarily higher-income or better educated, but others view them as having more expertise in a particular area. For example, a teenage girl may look to the opinion leader in her reference group of friends for fashion guidance, or a college student might aspire to getting an advanced degree from the same university as an admired professor. Social media influencers also play a role here. Consider the influence that celebrities like Kendall Jenner (with more than 217 million Instagram followers) 5 or Leo Messi (with over 310 million Instagram followers) 6 have on individuals.

All people assume different roles and status depending upon the groups, clubs, family, or organizations to which they belong. For example, a working mother who is taking classes at the local community college assumes three roles at varying times—that of an employee, a mother, and a student. Her buying decisions will be influenced by each of these roles at different times. When she is shopping for clothing, her purchases may be influenced by any or all of these roles—professional attire for the office, casual clothes for classes, or yoga pants for home.

Personal Factors That Impact Consumer Buying Behavior

Personal factors, such as your occupation, age and life cycle stage, economic situation, lifestyle, and personality and self-concept also play a major role in your buying behavior (refer to Figure 3.6 ). Let’s examine each of these in more detail.

Age is a major factor that influences buying behavior because consumer needs and wants change with age. Your buying habits as a teenager or twentysomething are likely to be vastly different from your buying habits in middle age and beyond. Consider the four generational cohorts currently comprising the consumer market:

• Baby boomers (born between 1946 and 1964) are currently in their 60s and 70s. This generational cohort is approximately 70 million people strong in the United States and accounts for $2.6 trillion in buying power, 7 so you can imagine its impact on the consumer market. What types of products would you expect baby boomers to buy? Key categories for this group of buyers include pharmacy and health care products, household goods and appliances, wine, books (both digital and physical), cosmetics, and skin care products. 8
• Generation X (born between 1965 and 1979/80) are currently in their 40s and 50s. This cohort is approximately 65 million strong 9 and generally has more spending power than younger generational cohorts because they’re at or reaching the peak of their careers, and many Gen Xers are dual-income families. 10 This makes them an optimal target for higher-end brands and convenience-related goods, like made-to-order or prepared meals from the grocery store.
• Generation Y , also known as Millennials , (born between 1981 and 1994/96) are currently in their 20s and 30s. This cohort is the largest generation group in the United States, with an estimated population of 72 million. 11 One interesting aspect of Millennial buying is that they shop sustainably. They shop for brands that produce items with natural ingredients and ethical production lines and sustainable goods in every sector, such as food, household cleaning products, linens, and clothes. 12
• Generation Z , also known as Zoomers , (born between 1997 and 2012) are currently in their teens to early 20s, and they are just starting to have an economic impact on the consumer market. Although over 67 million strong, 13 many Zoomers are still in school and living with their parents, and their discretionary spending is limited.

Marketing in Practice

Marketing to the ages.

Knowing how to speak to your target market is critical. Knowing how to frame your message to a Baby Boomer versus a Gen Xer is what makes marketers successful. Want to know how to speak to each group? Check out these articles about marketing to different age demographics and generational marketing .

Learn from real-world examples of how age-agnostic marketing can work.

Have you ever seen a commercial or advertisement that pulls on your heartstrings because it gets you reminiscing? Nostalgia is an impactful tool in marketing because it gives a feeling of meaning and comfort. Check out this online blog to learn more about the impact of nostalgia in marketing.

Likewise, your life cycle stage has a major influence on your buying habits. Consider the different buying choices you would make as a single person who is renting an apartment in an urban area versus the choices you would make as a homeowner in the suburbs with children. It should be noted, though, that age and life cycle stage can often be poor predictors of buying behavior. For example, some 40-year-olds are just starting their families, while others are sending their kids off to college. Still other 40-year-olds are single (or single again). Some 70-year-olds may fit the stereotype of a retired person with a fixed income; others are still active or perhaps still working, with plenty of disposable income.

Your economic situation (income) is a huge influence on your buying behavior. Higher income typically means higher disposable income, and that disposable income gives consumers more opportunity to spend on high-end products. Conversely, lower-income and middle-income consumers spend most of their income on basic needs such as groceries and clothing.

Your occupation is also a significant factor in your buying behavior because you tend to purchase things that are appropriate to your profession. For instance, a blue-collar worker is less likely to buy professional attire like business suits, whereas attorneys, accountants, and other white-collar workers may favor suits or business casual work clothes. There are even companies that specialize in work clothes for certain types of workers, such as health care professionals who buy scrubs or construction workers who buy steel-toed boots.

Your lifestyle reflects your attitudes and values. What do you consider to be your lifestyle? Do you strive to live an active, healthy lifestyle? If so, your purchasing decisions may focus on healthier food alternatives instead of fast food. Do you consider yourself to be a soccer parent? You may (perhaps reluctantly) forgo that sports car for a minivan in order to transport your kids to youth sporting events or other activities.

Your personality and self-concept are also important factors influencing your buying behavior. Personality is the characteristic patterns of thoughts, feelings, and behaviors that make a person unique. It’s believed that personality arises from within the individual and remains fairly consistent throughout life. 14 Some examples of the many personality traits people might have include things like self-confidence, individualism, extroversion, introversion, aggression, or competitiveness. Your personality greatly influences what you buy as well as when and how you use or consume products and services.

Perhaps even more importantly, as consumers, people tend to buy not only products they need but also those products or services that they perceive as being consistent with their “self-concept.” In other words, they generally want the products they buy to match or blend in with who they think they are. 15

Psychological Factors That Influence Consumer Buying Behavior

Your buying choices are further influenced by several major psychological factors, including motivation, perception, learning, feelings, beliefs, and attitudes (refer to Figure 3.7 ).

Let’s first consider how motivation affects your buying behavior. Motivation is the process that initiates, guides, and maintains goal-oriented behaviors. It’s the driving force behind your actions. One of the most widely known motivation theories is Maslow’s hierarchy of needs (see Figure 3.8 ).

Abraham Maslow asserted that all individuals have five needs, arranged from the most basic lower-level deficiency needs to the highest-level growth needs. As Figure 3.8 shows, physiological needs are at the most basic level and include things like adequate food, water, and shelter. Think about how marketers may try to appeal to consumers based on physiological needs. For example, Snickers ran a very successful ad campaign based on the slogan “You’re not you when you’re hungry.”

The second level is safety and security, the need to be safe from physical and psychological harm. Once again, consider just a few successful marketing campaigns that have focused on safety—“You’re in Good Hands with Allstate ” and Lysol ’s “Practice Healthy Habits” campaign with its tagline “What It Takes to Protect.”

The third level is belonging, or social needs. This level includes things like the need for emotional attachments, friendship, love, or belonging to community or church groups.

Esteem, the fourth level, includes such needs as recognition from others, taking pride in your education or work, awards, and/or prestige.

The highest level is self-actualization, which involves self-development and seeking challenges. For example, Nike ’s “Find Your Greatness” campaign was intended to spark greatness in ordinary people, not just professional athletes.

Examples of Maslow’s Five Needs

Check out this Snickers' “You’re not you when you’re hungry” commercial, which appeals to basic human physiological needs.

This Lysol “What It Takes to Protect” commercial appeals to the human needs for safety and security.

Consider this public service announcement (PSA) from the Ad Council that is dedicated to fostering a more welcoming nation where everyone can belong. How does it appeal to the human need for community and belonging?

One awesome esteem level example to check out is this one from Dove . Dove launched a campaign to boost female self-esteem and to celebrate female beauty in all shapes and sizes. The company also created “confidence-boosting boards” on Pinterest. The boards include self-esteem activities so girls and their parents can share words of encouragement.

Check out one of Nike’s commercials from the “Find Your Greatness” campaign. How does it appeal to the human need for self-actualization?

Maslow asserted that people strive to satisfy their most basic needs before directing their behavior toward satisfying higher-level needs, so it stands to reason that consumer buying behavior would follow this model. For example, you’d first have to fulfill your needs for food and shelter before you might consider putting money away for retirement or purchasing a home security system.

Maslow and Marketing

Understanding Maslow’s hierarchy of needs will help you be an effective and impressive marketer. You’re going to see this model in many of your business courses, not just marketing, so take the time to learn about it. Check out this brief video that may help you understand how to use Maslow’s hierarchy of needs in marketing. Learn about why Maslow’s hierarchy of needs matters.

Perception is the way in which people identify, organize, and interpret sensory information. It’s another variable in consumer buying behavior because the perceptions you have about a business or its products or services have a dramatic effect on your buying behavior. What makes perception even more complex is that consumers can form different perceptions of the same stimulus because of three perceptual processes: selective attention, selective distortion, and selective retention. Let’s take a closer look.

Every day, you’re bombarded with marketing messages from TV commercials, magazine and newspaper ads, billboards, and social media ads. As of 2021, it was estimated that the average person encounters between 6,000 and 10,000 ads every single day. 16 It stands to reason that you can’t possibly pay attention to all of the competing stimuli surrounding you, so you’ll pay attention to only those stimuli that you consider relevant to your wants and needs at the time and screen out the rest. That’s the process known as selective attention .

When Bombarding Backfires

Bombarding consumers with marketing messages can cause more harm than good. According to this article from Marketing Dive , bombarding people with ads would negatively impact a brand. This article from the Advertising Association shares data that indicates bombardment and intrusiveness negatively impact perceptions of advertising.

How can you combat the issue? Quantcast outlines ways to avoid ad bombardment.

It’s about Ability

Your personal brand will be a significant factor when it comes to finding a job. What does your personal brand say today? What is your marketing story? Is it what you want it to be? If not, what will you do to change it? The end-of-chapter content includes various ways to explore your personal brand to help you prepare for your job search.

How are you going to stand out among other candidates? What can you do with your résumé? According to Jason Shen’s TED Talk, you should highlight your abilities and not your experience. He speaks to potential and how you can make yourself more attractive to potential employers by telling a story in a compelling way.

According to the American Marketing Association (AMA) , you need to know yourself well. Self-knowledge will help you know the kind of work environment you perform best in and what kind of work you enjoy most. The AMA is a great place to learn how to stand out as a marketing job applicant , target companies, prepare your best résumé, and have a successful interview.

Check out these sources on how to stand out and ways you can beat the competition:

• Freemanleonard : “How Marketers and Creatives Can Stand Out in Today’s Competitive Job Market”
• Recruiter.com : “13 Tried-and-True Creative Tactics Candidates Have Used to Stand Out in Interviews”
• Acadium : “Launch Your Digital Marketing Career: How to Stand Out as a Candidate”
• Indeed : “8 Marketing Interview Questions to Expect”
• Entrepreneur : “Building Your Brand Is How You Will Stand Out When Applying for a Job”
• Smart Insights : “7 Tactics to Help You Stand Out as a Marketer and Get Better Jobs”
• 24 Seven : “10 Tips to Ace Your Next Marketing Job Interview”

If you want to go the extra mile in making yourself stand out, reach out to current marketers and ask them questions. You can find hundreds, even thousands, of current marketers on LinkedIn . Try targeting people from companies you’re interested in or would like to learn more about. Look for specific people who are doing jobs that interest you. Going to an interview armed with information is incredibly powerful and will speak volumes to your interviewer. Be sure to find a way to work your completed research into the interview conversation because it will speak to your drive, curiosity, and ambition—all traits every interviewer wants to hear about. This will also be another way you can stand out from others interviewing for the job. Questions you could ask current marketers in preparation for an interview include (but by no means are limited to):

• What about you stood out in your interview process that made your current company hire you?
• Can you tell me about examples of people you’ve interviewed and why they stood out to you?
• How have candidates stood out when they spoke about their abilities in a job interview scenario?
• What are your thoughts on candidates sharing a college project with you as a way to demonstrate abilities?
• What advice do you have for me?

Be creative with your questions! Look online for other questions you could ask. Have fun!

Even the stimuli that people notice don’t always come across in the way in which the marketers intended. Selective distortion is the tendency of people to interpret information in a way that fits their preconceived notions. This was demonstrated years ago when PepsiCo launched its Pepsi Challenge blind taste test commercials. Participants were presented with two colas in unmarked plastic cups and asked to taste both colas and choose the one they liked better. Then the tester would lift a small screen to reveal the brand the participants preferred. In TV commercials that aired for years, Pepsi showed the stunned reactions of loyal Coca-Cola drinkers who had chosen Pepsi over Coke in the test. One grandmother in a commercial said, “I can’t believe it. I’ve never had a Pepsi in my life, but it must be better!” 17

People also tend to forget much of what they learn and to retain information that supports their preconceived attitudes and beliefs. That’s the power of selective retention , a bias by which you’re more likely to remember messages that are closely related to your interests, values, and beliefs rather than those that are contrary to those values and beliefs.

Beliefs, feelings, and attitudes also play an important role in consumer buying behavior. Beliefs are consumer perceptions of how a product or brand performs relative to different attributes. These beliefs are generally formed through personal experience, advertising, and conversations with others, and they play a vital role because they can be either positive or negative. You can even hold both positive and negative beliefs about the same thing. For example, you may believe that coffee is good for you because it helps you focus and stay alert, but you may also worry about the effect of coffee on your health and the way it stains your teeth. Human beliefs aren’t always accurate and can change according to the situation.

Consumer attitudes are a composite of a consumer’s beliefs, feelings, and behavioral intentions toward a product or service (see Figure 3.9 ).

We’ve already talked about beliefs, so let’s focus for a moment on affect, or feeling. Consumers often have certain feelings toward brands, products, or services. Sometimes these feelings are based on people’s beliefs, such as a vegetarian who can’t stand the thought of eating a hamburger, but you may also have feelings that are relatively independent of your beliefs. For example, someone who has strong environmentalist beliefs may object to clearing forests to make way for a housing development but may have positive feelings toward Christmas trees because they subconsciously associate these trees with the experience that they had at Christmas as a child.

The behavioral intention aspect of an attitude is what you as a consumer plan to do—buy the brand or not buy the brand. As with affect, this is sometimes a logical consequence of your beliefs but may sometimes reflect other circumstances. Consider a consumer who doesn’t particularly like a restaurant but will go there because it’s an after-class gathering spot with her friends. 18

Learning is still another important factor in consumer buying behavior. The fact is that consumer behavior is learned, and much of what you buy is based on your previous experiences with particular brands. This is commonly known as the Law of Effect , which asserts that, if an action is followed by a pleasant consequence, you’re likely to repeat it; if the action is followed by an unpleasant consequence, you’re less likely to repeat it. For example, let’s say you buy an Apple iPhone . If your experience with the iPhone is positive, you’ll probably be more inclined to buy another Apple product when you’re looking for a tablet or wearable. On the other hand, if you’ve had a not-so-positive experience with your iPhone, you’re likely to look at other brands when considering purchasing other devices.

Lessons in Psychology

Psychology is a big part of marketing. Insight into your customers’ thinking will allow you to create marketing messages and stories that better speak to their needs. Learning, the process where customers acquire information they can apply to future purchases, is a foundational concept in marketing. Learn about the various types of learning and how they can impact marketing strategies from this Forbes article .

Situational Factors That Impact Consumer Buying Behavior

Situational factors influencing consumers are external (refer to Figure 3.10 ). These factors play an important role in how consumers experience a product and how these consumers’ opinions are formed.

Environmental factors such as music, lighting, ambient noise, and even smells can either discourage or encourage a consumer’s purchase decision. For example, researchers conducted a study on the effect of lighting on consumer purchases in a grocery store. They lit half the store with traditional fluorescent lighting and the other half of the building with LED lighting. Researchers conducted the study over 21 weeks and discovered that consumers bought 25 percent more products on the LED-lit side of the store. 19

Spatial factors also play a role. The way a product is displayed may make it seem desirable, but a crowded store or a long line at the cash register can suddenly make that same product seem less desirable. Think about it: Have you ever seen a long line to check out at the cash register and put the product you intended to buy back on the shelf because it simply wasn’t worth it to waste your time standing in line?

The Marketing in Practice feature box shows how sound and smell can affect consumers.

Abercrombie & Fitch

As consumers, people usually don’t think twice about what a store smells or sounds like, the way it makes them feel or think, or what it makes them do. But Abercrombie & Fitch (A&F) thinks about it a lot (see Figure 3.11 ).

The company has its own line of men’s fragrances called “Fierce,” which is sprayed liberally in stores to give off what the company describes as a “lifestyle . . . packed with confidence and a bold, masculine attitude.” A&F knows who it wants in its stores, and by associating its fragrance with its stores, it creates a self-fulfilling prophecy for its male clientele who, by wanting to smell like A&F, will be like the models and sales staff in the store.

A&F also plays loud club music throughout its stores, attracting young people who can withstand loud music longer, while older customers may run from it. It’s just another way that A&F is enabling its stores to maintain a more youthful clientele and a “fresher” image. 20

Watch this video on Abercrombie & Fitch’s brand transformation for further insight on how A&F has positioned its retail brand Hollister as a global iconic teen brand and modernized the A&F brand to focus on young millennial consumers.

The social situation of shopping is another situational factor. Did you know that you’re more likely to stop to look at certain products when you’re in the company of a friend as opposed to a parent? The social aspect can even alter the price you’re willing to pay. You might be more inclined to purchase a more expensive product when you’re with a colleague or potential partner than you would if you’re with a friend or spouse. 21

The goal of your shopping trip is yet another situational factor. If you go to a store to look for a birthday present for your mother, your purpose is totally different than if you’re casually shopping for a new pair of shoes. The reason for shopping dictates the kinds of products customers are willing to interact with at that time and may cause them to bypass certain products they would normally interact with on another shopping trip. This is even true at the grocery store. You’ll interact with products differently if you’re on your weekly shopping trip versus simply going into the store because you’re out of milk.

Much like the purpose of your shopping trip, timing also influences your consumer behavior. If you’re in a rush because it’s Christmas Eve and you haven’t bought a present for your best friend yet, you’ll interact with fewer products than if you have hours to shop. Even if two people are looking for the same type of product, the one in a rush will probably end up with the most accessible product, whereas the leisurely consumer has time to weigh the price and quality of offerings.

Finally, your mood influences your buying behavior. Someone who is feeling sad or stressed interacts differently with products than a happy, relaxed shopper. The same can be said for someone who’s fatigued versus someone who’s full of energy.

Situational Factors

There are many examples where companies use situational factors in their marketing approaches. Here are several online sites and specific articles:

• Westin and the White Tea Signature Scent
• The Aroma Trace : “Best Examples of Olfactory Marketing in Companies”
• Sync Originals : “10 Brands That Made Music Part of Their Marketing DNA”
• Omnify : “8 Simple Lighting Techniques That Boost Retail Sales”
• Science News : “Does Background Noise Make Consumers Buy More Innovative Products?”
• Journal of the Academy of Marketing Science : “Sounds Like a Healthy Retail Atmosphere Strategy: Effects of Ambient Music and Background Noise on Food Sales”

Knowledge Check

It’s time to check your knowledge on the concepts presented in this section. Refer to the Answer Key at the end of the book for feedback.

• Psychological factors
• Social factors
• Situational factors
• Personal factors
• Social class
• Personality
• Physiological
• Safety/security
• Self-esteem
• cognitive dissonance
• selective attention
• selective retention
• selective distortion
• predispositions
• behavioral intentions
• preconceived notions
• attributions

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• Authors: Dr. Maria Gomez Albrecht, Dr. Mark Green, Linda Hoffman
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• Book title: Principles of Marketing
• Publication date: Jan 25, 2023
• Location: Houston, Texas
• Book URL: https://openstax.org/books/principles-marketing/pages/1-unit-introduction
• Section URL: https://openstax.org/books/principles-marketing/pages/3-2-factors-that-influence-consumer-buying-behavior

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• Published: 25 May 2024

Examining consumer behavior towards adoption of quick response code mobile payment systems: transforming mobile payment in the fintech industry

• Mohammad Ali Yousef Yamin   ORCID: orcid.org/0000-0002-6944-6866 1 &
• Omima Abdalla Abass Abdalatif 1  

Humanities and Social Sciences Communications volume  11 , Article number:  675 ( 2024 ) Cite this article

Metrics details

• Business and management
• Information systems and information technology

The quick response (QR) code-enabled mobile payment has gained large attention from academicians and policymakers due to its fast, convenience, and usefulness. However, acceptance of this technology among consumers is limited and rare in a few cases. Therefore, current research attempts to gain insight into factors that influence consumer behavior to adopt QR code-enabled mobile payment. This research has developed an integrated research framework that combines the technology acceptance model, theory of reasoned action, transaction speed, convenience, and innovativeness to investigate consumer behavior to adopt QR code mobile payment. In addition to that moderating effect of transaction speed is tested between consumer attitude and intention to adopt QR code-driven mobile payment. This study empirically investigates consumer attitudes and intention to adopt the QR mobile payment system with 216 responses. Findings of the statistical analysis have revealed that perceived usefulness, perceived ease of use, convenience, subjective norms, and innovativeness explained a substantial variance \({R}^{2}\) 52.3% in measuring user attitude to adopt QR code-enabled mobile payment. Practically, this study suggests that policymakers should pay attention to perceived convenience, transaction speed, subjective norm, and perceived usefulness to boost consumer attitude and intention to adopt QR-enabled mobile payment. This study is unique as it integrates the technology acceptance model and theory of reasoned action to investigate consumer behavior towards the adoption of QR code mobile payment. This study is also valuable as it examines the moderating effect of transaction speed between consumer attitude to accept QR code and their intention to adopt QR code-driven mobile payment and adds a new dimension to information system literature.

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Introduction.

The rapid acceptance of mobile phone devices has transformed individual personal and professional lives. Aside from communication tools mobile devices are now being used in the fintech industry for mobile payments. Mobile payment denotes to payment process wherein business transactions are performed through mobile devices (Liu and Zheng, 2023 ; Nicoletti et al., 2017 ). A recent development in mobile payment systems is the advent of QR code technology, which has gained large attention from academicians and policymakers due to its fast, convenient, and useful service (N. Singh et al., 2020a ). The QR code is a storage system that comprises a dot matrix kind of bar code and can be shown or printed on the screen, interpreted by a special reader, and reveals extensive information that could not be explained by traditional bar code (Denso, 2000 ). Although the QR code-enabled mobile payment method is easy, convenient, and enjoyable (Chang et al., 2021 ) however, the acceptance of quick response payment system is at its initial stage (Bhat et al., 2023 ; Boden et al., 2020 ; Yan et al., 2021 ). Consistently, the focus of this research is to understand factors that influence user behavior to adopt quick response (QR) codes for mobile payments.

Authors like Tew et al. ( 2021 ) asserted that QR code mobile payment systems have gained less attention when compared to other mobile-empowered financial services like Internet or mobile banking. Nevertheless, current research fills the research gap in this context and integrates the technology acceptance model with the theory of reasoned action to investigate consumer attitudes and behavioral intention to adopt the QR code mobile payment system in Saudi Arabia. This study is significant as it integrates the technology acceptance model and theory of reasoned action toward consumer adoption of the QR code mobile payment system in Saudi Arabia. In addition to that this research examines how perceived enjoyment, convenience, and innovativeness impact consumer behavior to accept QR code-enabled payment systems in the Saudi region. This study is unique as it conceptualizes the moderating effect of transaction speed between consumer attitude to accept QR code and their intention to adopt a QR code-based mobile payment system. The following section demonstrates the definition of the constructs and supporting literature to generate hypotheses.

Research model and hypotheses development

Qr code-enabled mobile payment.

With the emergence of 4th industrial revolution fintech industry has evolved several fintech services including the Internet of things (IOT), artificial intelligence, near-field communication, smartphone applications, and quick response code payment systems (Liu and Zheng, 2023 ; Mi Alnaser et al., 2023 ; Nicoletti et al., 2017 ; Shang et al., 2023 ). Similarly, the mobile payment system is also updated with the latest innovative applications and software. Traditionally, mobile payments have been done with mobile banking applications or web-based internet banking also known as e-banking (Rahi et al., 2023 ; Rahi et al., 2021b ). Nevertheless, the use of these applications for payments was found complex when compared with the quick response (QR) payment system. Therefore, an alternative service namely a quick response (QR) payment system has gained consumer attention in a cashless society (Alamoudi, 2022 ). With the advent of quick response (QR)-enabled payment systems consumers are no longer constrained to credit/debit card services (Chang et al., 2021 ). The use of QR codes is easy and enjoyable. For instance, the consumer just needs to scan a QR code with their mobile phone camera and payment will be completed quickly (Gutiérrez et al., 2013 ). In the context of Saudi Arabia, the Saudi payment authority has recently made a contract with the High-tech payment systems authority to introduce a QR code scheme. Nevertheless, consumers are reluctant to adopt QR code-enabled mobile payment systems in the Saudi retail industry. Therefore, it is essential to understand factors that impact consumer behavioral intention to adopt a QR code-enabled mobile payment system.

Technology acceptance model

The technology acceptance model was invented by Davis ( 1993 ) and investigated consumer attitudes and behavior toward adopting technology. The technology acceptance framework comprises two main exogenous constructs namely usefulness and ease of use. The perceived usefulness is the degree to wherein individuals perceive technology as useful and improves task performance (Ahn and Park, 2023 ; S. Singh et al., 2020b ). Therefore, ease of use is identified as the extent to wherein technology is perceived by users as easy and simple to use and enhances individual task performance (Davis et al., 1989 ). It is assumed that QR code mobile payment is new technology and hence usefulness and ease of use would encourage users to adopt mobile payment driven by QR code. Prior literature on information systems has long established that usefulness and ease of use influence consumer intention to adopt QR code-enabled payment systems (Cao et al., 2016 ; de Luna et al., 2019 ; Kaatz, 2020 ; Ooi and Tan, 2016 ; Shankar and Datta, 2018 ). Therefore, the following hypotheses are proposed:

H1: Perceived usefulness impacts consumer attitude towards QR code mobile payment .

H2: Perceived ease of use impacts consumer attitude towards QR code mobile payment .

Theory of reasoned action

The theory of reasoned action was introduced by Ajzen and Fishbein and has been widely used in information system studies (Ajzen and Fishbein, 1977 ). TRA determines consumer attitudes and subjective norms to adopt a specific technology (Flavian et al., 2020 ). Subjective norm is the extent that measures individual values and beliefs whether important people encourage or discourage them from adopting technology (Flavian et al., 2020 ). Nevertheless, the subjective norm in the QR code context is conceptualized as the degree wherein individual belief is affected by surrounding people’s opinions including family and peers, and brings the feeling that QR code-based payment is attractive and must be used for financial activities (Flavian et al., 2020 ; Shang et al., 2023 ; Wu and Gong, 2023 ). Prior studies have established the positive impact of the subjective norm in measuring consumer attitudes toward adopting mobile payment (Al Nawayseh, 2020 ; Baptista and Oliveira, 2015 ; Liu and Zheng, 2023 ). Therefore, the subjective norm is hypothesized as:

H3: Subjective norm is related to consumer attitude towards QR code-based mobile payment .

Perceived convenience and innovativeness

The role of perceived convenience and innovation is found critical in determining consumer behavior to adopt QR codes (Boden et al., 2020 ; Nguyen and Dao, 2024 ). Perceived convenience is the extent to wherein users believe that payment through a QR code is easy and convenient (Boden et al., 2020 ; Chen, 2008 ). It is argued that digital consumers expect the use of technology to be time-saving and convenient and hence they prefer to use innovative technology (Boden et al., 2020 ). The term innovativeness is the degree to wherein consumer perceives that technology is new and amusing (Liu and Zheng, 2023 ; Rahi and Abd Ghani, 2021 ). Therefore, it is assumed that innovation will motivate consumers to try new mobile technology which is QR code-enabled mobile payment (Boden et al., 2020 ; Kim et al., 2010 ). Both convenience and innovativeness have substantial support from literature to predict consumer behavior to adopt QR code-based mobile payment (Chen and Nath, 2008 ; Cowart et al., 2008 ; De Kerviler et al., 2016 ; Kim et al., 2010 ; Makki et al., 2016 ; Ooi and Tan, 2016 ; Rampton, 2017 ; Slade et al., 2015 ; Zhang et al., 2018 ). Therefore, convenience and innovativeness are hypothesized as:

H4: Convenience determines consumer attitude towards QR code mobile payment .

H5: Perceived innovativeness positively determines consumer attitude towards QR code-based mobile payment .

The main attractiveness of QR codes is speed during financial transactions. For instance, users do not need to login and they just scan and pay their bills by using a QR code (Yan et al., 2021 ). Therefore, the importance of transaction speed cannot be neglected in measuring user attitude and intention to adopt QR code-based payment. The term transaction speed is the extent to wherein consumer feels that the use of QR code mobile payment increases transaction speed that is not possible in traditional mobile payment methods (Chen, 2008 ; Yan et al., 2021 ). Therefore, it is assumed that transaction speed will boost consumer confidence resulting higher acceptance rate of QR code-enabled mobile payment. In literature prior studies have established that transaction speed is the core factor that influences consumer behavior and encourages to adoption of QR code mobile payment systems (Chen, 2008 ; Norton and Hall, 2006 ; Teo et al., 2015b ; Yang, 2009 ). Nevertheless, this study advances the body of knowledge and conceptualizes transaction speed as a moderating factor in the relationship between consumer attitude and intention to adopt QR code-enabled mobile payment. Therefore, the following hypotheses are proposed:

H6: Attitude towards QR code influences consumer intention to adopt QR code mobile payment .

H7: Transaction speed has a moderating effect on consumer attitude and intention to adopt QR code-based mobile payment .

After reviewing detailed literature this study has summarized that perceived usefulness, ease of use, subjective norm, transaction convenience, enjoyment, and innovativeness have a positive impact on consumer attitude and intention to adopt QR code-enabled mobile payment. In addition to that transaction speed has been conceptualized as a moderating factor in the relationship between consumer attitude and intention to adopt QR code-enabled mobile payment. The theoretical framework is exhibited in Fig. 1 .

Theoretical framework.

Methodology

Scale measurement.

Scale development is the process of retaining relevant research items for construct assessment (Rahi et al., 2019 ). Rahi et al. ( 2019 ) asserted that developing a new scale is not essential if theory exists. Therefore, in the current study scale exists and hence scale items are adopted from past studies and then adapted into the current research setting. Construct items of usefulness and ease of use were adopted from Yan et al. ( 2021 ) and Rahi et al. ( 2018 ). Scale items for subjective norms were adopted from Liébana-Cabanillas et al. ( 2015 ). Perceived convenience items were adopted from Teo et al. ( 2015a ). Moving further innovativeness items were adopted from Slade et al. ( 2015 ) and Rahi and Abd. Ghani ( 2018 ). Scale items for attitude were adopted from Rahi, Khan, et al. ( 2021a ). Scale items for intention to adopt QR code mobile payment were adopted from Yan et al. ( 2021 ) and (Rahi, 2022 ). Next to this transaction speed items were adopted from Yan et al. ( 2021 ) and Teo et al. ( 2015a ). Scale items are presented in Table 1 . Concerning with Likert scale type researchers have found substantial support against the 7-point Likert scale (Rahi et al., 2019 ; Rowley, 2014 ). Therefore, 7 point Likert scale is used wherein 7 indicates strongly agree and 1 represents strongly disagree.

Research approach, sample size calculation, and data collection

The current research investigates user behavior towards the adoption of quick response code-enabled mobile payment. Consequently, an integrated research framework is established and empirically investigated with numerical data. Nevertheless, before data collection, it is essential to select a population and adequate sample size. The population of this study is smart mobile phone users all around Saudi Arabia. Therefore, sample computation is done with the prior power method (Rahi, 2018 ; Rahi, 2023 ). The priori power method estimates sample size through predictors. There are seven predictors in the research framework and requires a sample of 153 respondents for empirical analysis. The face validity issue is addressed through a pilot study (Hair et al., 2015 ). For the pilot survey, 20 smart mobile phone users were approached physically and requested to fill out the questionnaire. Overall, respondents have faced no difficulty in filling out the questionnaire, however, they have suggested adding preliminary questions to screen out relevant respondents. Thus, a preliminary question is added to the main research questionnaire having contents that whether respondents are smartphone users or not. The purpose of this preliminary question is to identify relevant respondents. Thus, respondents having smart mobile phones were allowed to participate in the research survey.

Concerning with sampling approach researcher has selected a purposive sampling approach for data collection (Hair et al., 2015 ). According to Samar Rahi ( 2017a , 2017b ) purposive sampling approach could be selected if the objective of the research is to collect data only from selective respondents. As the population of this study is smartphone mobile banking users therefore purposive sampling approach was most appropriate. For data collection, a research questionnaire was distributed among 243 mobile banking users who requested to fill out the survey questionnaire. These respondents were approached by visiting different retail stores located in Jeddah city of Saudi Arabia. As the research design of this study is based on cross-sectional thus data were collected at once. In addition to that participation in this research survey was voluntary instead of mandatory. Among 243 respondents 216 respondents participated in the QR code mobile payment research survey with an attractive response rate of 88%. Thus, these numerical responses were further analyzed with a structural equation model.

A descriptive analysis is conducted to disclose the respondent’s characteristics. In the data set, there are 69% male therefore 31% of respondents are counted as female participants. Respondent’s age is measured and descriptive analysis has revealed that a total of 135 respondents are aged between 21 to 30 years. Therefore, a total of 35 respondents were found aged between 31 to 40 years. Next 36 respondents are found aged between 41 to 50 years. Therefore, only 10 respondents are found aged between 51 to 60 years. Aside from age comparison education level of the respondents is measured following three categories including high school education, i.e., equivalent to 10th grade, graduation level, i.e., equivalent to 14th years of education and master level of education, i.e., equivalent to 16 years of education. Results indicate that 42 respondents have a high school education. Therefore, 78 respondents have shown graduation level of study. Similarly, 96 respondents have shown master-level education and participated in the research survey.

Data analysis

Addressing common method biases issue.

The quantitative research that is based on a research survey may be affected due to common method issues. In addition to that in this study structured survey questionnaire has been used for data collection. Nevertheless, authors like Hair et al. ( 2015 ) have stated that common method variance issues could arise if data have been collected at one point in time against all predictor and criterion variables. Thus, the CMV issue is addressed through procedural and statistical remedies. Following procedural remedies questionnaires were jumbled up and then distributed among respondents. Therefore, among statistical remedies common method variance bias is assessed through Harman’s single-factor solution (Fornell and Larcker, 1981 ; Rahi, 2022 ). Harman’s single-factor solution suggests that the value of the first un-rotated factor must be less than 40% (Fornell and Larcker, 1981 ). Result of the Harman’s single-factor solution suggests that the value of the first un-rotated factor was 11% less than 40% and hence confirmed the validity of the data.

Structural equation modeling

The structural equation modeling approach is incorporated for data estimation. This approach is based on two stages namely structural model and measurement model. Initially, data were analyzed with a measurement model and established factors reliability, indicator reliability, discriminant, and convergent validity of the instruments. Therefore, in the second stage hypotheses were tested. For data estimation, Smart-PLS software v.3.39 has been used (Rahi et al., 2022 ).

Measurement model

In measurement model estimation indicator reliability was assessed first following the criterion that the loading of the indicator must be higher than 0.60 (Rahi, 2018 ; Rahi et al., 2022 ). Therefore, factor reliability was tested with composite reliability and Cronbach alpha following the criterion that the value of CR and CA must be greater than 0.70 (Podsakoff et al., 2003 ; Rahi et al., 2022 ). Similarly, convergent validity is assessed with average variance extracted following a threshold value of 0.50 (S. Rahi, 2017a , 2017b ; Rahi et al., 2022 ). Table 1 exhibits the results of the measurement model.

Another analysis in the measurement model is identified by Fornell and Larcker which measures the discriminant validity of the factors (Podsakoff et al., 2003 ; M. Yamin, 2020a ). Discriminant validity is established that constructs measure distinct concepts and discriminant. Therefore, the Fornell and Larcker analysis is employed to test discriminant validity (Fornell and Larcker, 1981 ; M. Yamin, 2020a ). It is suggested that for adequate discriminant validity square root of AVE must be higher in the correlation table (Fornell and Larcker, 1981 ; M. A. Y. Yamin, 2020b ). Results of the Fornell and Larcker analysis are shown in Table 2 indicating satisfactory discriminant validity of the factors.

The cross-loading method is an alternative method to measure the discriminant validity of the constructs. This method has suggested that the loading of the indicator must be higher when comparing corresponding construct indicator loadings (Fornell, 1992 ; Yamin, 2019 ). Table 3 depicts that cross-loadings are higher and demonstrates that constructs are discriminant and measure distinct concepts.

Measuring the discriminant validity of the constructs is critical and therefore Heterotrait-Monotrait ratio analysis is recommended to measure the discriminant validity of the constructs (Kline, 2011 ). According to Kline ( 2011 ), cross-loading and Fornell and Larcker analysis have shown some deficiencies and hence HTMT is the most appropriate analysis to be taken into consideration. This analysis suggests that values of HTMT ratios must be ≤0.90 indicating adequate discriminant validity of the constructs (Gold et al., 2001 ; Kline, 2011 ). The results of the HTMT ratio are shown in Table 4 .

Structural assessment

The structural model tests the hypotheses relationship using the bootstrapping method (Hair Jr et al., 2016 ). Nevertheless, prior to structural model assessment multi-collinearity issue is addressed through the variance inflation factor (VIF). Results of the VIF analysis indicate that values of the VIF were lower than the threshold value, i.e., 3.3 hence confirming that multi-collinearity is not likely an issue in this study. Finally, data were bootstrapped for structural assessment. Results of the bootstrapping have revealed values of path coefficient, t -statistics, standard error, and significance level. The findings of the hypotheses analysis are shown in Table 5 .

Table 5 demonstrates that perceived usefulness has a positive impact on user attitude and statistically confirmed H1: β  = 0.158 path, significance p  = 0.005 and t -statistics of 2.901. Therefore, perceived ease of use has a positive impact on user attitude and is supported by β  = 0.059 path, significance p  = 0.046, and t -statistics of = 1.790, and hence H2 is confirmed. Concerning subjective norms results have shown that subjective norms have a positive impact on user attitude and are statistically backed by β  = 0.149 path coefficient, significance level p = 0.000, and t -statistics of 4.969. Perceived convenience has shown a positive impact on user attitude to adopt QR code-enabled payment and is supported by H4: β  = 0.493 path, significance p  = 0.000, and t -statistics of 15.306. Innovativeness has shown a significant influence on user attitude and hence confirmed H5: β  = 0.104 path coefficient, significance level p  = 0.002, and t -values of 3.236. Consumer attitude has shown a positive influence on user behavioral intention to adopt QR code mobile payment and is supported by H6: β  = 0.668 path, significance p = 0.000, and t -statistics of 18.515. These results are shown in Appendix 1 with path coefficient and significance level. Overall, results have shown a positive influence of exogenous factors in measuring endogenous factors. The variance explained by exogenous factors in measuring endogenous factors and the effect size of the factors is given in the following section.

Factors affect size, predictive power, and R 2

The structural model assessment has established the impact of exogenous factors in determining endogenous variables. Nevertheless, the variance explained by these factors was assessed with the coefficient of determination R 2 . Results indicate that user attitude is jointly measured by perceived usefulness, perceived ease of use, convenience, subjective norms, and innovativeness and explained substantial variance R 2 52.3% in measuring user attitude to adopt QR code-enabled mobile payment. Therefore, user intention to adopt QR code-enabled mobile payment is measured by transaction speed and attitude and explains a large variance in user intention R 2 55% hence confirming the validity of the research model. Next to this effect size analysis is incorporated to disclose the impact of each factor in measuring user attitude and intention. Results indicate that perceived convenience has a substantial effect size in measuring user attitude when compared with other exogenous factors. On the flip side, the attitude has shown a large effect size in measuring user intention to adopt QR-enabled mobile payment. Nevertheless, transaction speed has shown a small effect size when compared with attitude. Finally, predictive power was tested with Q 2 as recommended by earlier studies (Rahi and Abd Ghani, 2021 ; M. Yamin, 2020a ). Results as depicted in Table 6 revealed substantial predictive power to measure consumer attitude Q 2 37.3% and intention to adopt QR-enabled mobile payment Q 2 41.4%. Therefore, it is confirmed that the research model is theoretically and statistically valid to measure consumer attitude and intention to adopt QR-enabled mobile payment.

Importance-performance analysis

The current study has analyzed data with importance-performance analysis to reveal the importance and performance of the factors. Rahi ( 2022 ) stated that before incorporating IPMA analysis it is essential to select a single outcome variable. Consistently user intention to adopt QR mobile payment is selected as an outcome variable. Results of the IPMA analysis revealed that user attitude has the highest importance in determining mobile banking users’ intention to adopt QR-enabled payment. Therefore, perceived convenience is found second most important factor in measuring user intention. Moving further transaction speed is found third most important factor to determine user intention. In addition to that the importance of perceived usefulness and subjective norm was also notable. However, factors like ease of use and innovativeness have shown less importance and hence weak influence on user intention to adopt QR-enabled mobile payment. Table 7 comprises the outcome of the IPMA analysis.

Aside from statistical values trend of the importance and performance is tested with an importance-performance map. IPMA map as shown in Fig. 2 indicates that factors like perceived convenience, transaction speed, subjective norm, and perceived usefulness are the most influential factors in determining user attitude and intention to adopt QR-enabled mobile payment. Therefore, policymakers should pay attention to perceived convenience, transaction speed, subjective norm, and perceived usefulness to boost user attitude which in turn will enhance consumer intention to adopt QR-enabled payment.

IPMA analysis map.

Transaction speed

As this study discusses QR code-enabled mobile payment consequently, speed is being considered as the main factor that influences user attitude and intention to adopt mobile payment derived by quick response code. As a result, the moderating effect of transaction speed is tested between consumer attitude and intention to adopt QR code-enabled payment. The moderating analysis is calculated with a product indicator approach (Rahi, 2022 ). Findings of the moderating analysis are exhibited in Fig. 3 demonstrating significant values of path coefficient β  = 0.138, adequate significance p  < 0.05, and t -statistics 3.995 and hence established H7.

Moderating effect of transaction speed.

Although statistical findings have established that transaction speed positively moderates the relationship between user attitude and intention to adopt QR code-enabled mobile payment nevertheless, the power of the moderating effect is analyzed with a simple slope graph. A simple slope graph basically displays the trend of the relationship at positive and negative gradients. A simple slope graph given in Fig. 4 illustrates that TRS at +1 SD is sharply moving upwards when compared with a negative trend at TRS at -1SD. This trend explains that with transaction speed user attitude and intention will be higher towards the adoption of QR code-enabled mobile payment.

Trend of the moderating effect.

The quick response code-enabled mobile payments have revolutionized the fintech industry around the globe (Yuan et al., 2023 ). Now consumers don’t need to remember long passwords and they can pay by scanning a QR code anywhere in the world. Despite the widespread use of mobile devices, the adoption of QR code-enabled mobile payment systems is limited among the Saudi population (Bhat et al., 2023 ). Therefore, factors underpinned theory of reasoned action and the technology acceptance model were conceptualized to investigate user attitudes and intentions to adopt QR code-enabled mobile payment. Underpinned factors have shown a positive impact in predicting consumer attitude and behavioral intention to adopt QR code-enabled payment. Refereeing to technology acceptance model results have confirmed that both perceived usefulness and ease of use have a positive influence on user attitude and are consistent with prior studies (de Luna et al., 2019 ; Shankar and Jebarajakirthy, 2019 ). Concerning with factors underpinned theory of reasoned action results have confirmed that the positive impact of subjective norms in determining consumer attitude and consistent with prior studies (Al Nawayseh, 2020 ; Baptista and Oliveira, 2015 ). This study has added some additional factors namely convenience and innovativeness to determine consumer attitude and behavioral intention. Therefore, statistical findings have confirmed that perceived convenience positively impacts consumer attitude and is consistent with prior studies (Boden et al., 2020 ; Chen, 2008 ). Likewise, innovativeness is positively related to consumer attitude and is similar to prior research findings (Boden et al., 2020 ; Kim et al., 2010 ). Aside from predicting consumer attitude, this research has tested the impact of consumer attitude toward behavioral intention to adopt QR code-enabled mobile payment. Findings have confirmed that consumer attitude positively impacts consumer behavioral intention to adopt QR code-driven mobile payment hence supporting to argument developed by prior studies (Chen, 2008 ; Yan et al., 2021 ).

Although the newly developed integrative model has confirmed statistical validity to measure consumer attitude however the impact of underpinned factors was tested with a coefficient of determination and effect size analysis. Overall, the research framework demonstrates that consumer attitude is jointly measured by perceived usefulness, perceived ease of use, convenience, subjective norms, and innovativeness and explained substantial variance R 2 52.3% in measuring user attitude to adopt QR code-enabled mobile payment which is higher than previous study (Yan et al., 2021 ). In the extended model consumer intention to adopt QR code-enabled mobile payment is measured by transaction speed and attitude and explained by a large variance in consumer intention R 2 55%, i.e., greater than prior studies (Chang et al., 2021 ; Yan et al., 2021 ). Similarly, effect size f 2 analysis has revealed a substantial impact of perceived convenience in measuring consumer attitude. These findings indicate that convenience is the most important factor behind the selection of a QR code-based payment option. Nevertheless, this study has also revealed that if the objective is to determine consumer behavioral intention to adopt QR code payment it is mandatory to have a positive attitude. This is also confirmed with effect size analysis wherein results have revealed that consumer attitude has a substantial impact in measuring consumer intention to adopt a QR code payment system. The following sub-section demonstrates the theoretical and practical contributions of this study.

Contribution to theory and method

In terms of theoretical contributions this study has developed an integrative research model with the help of the theory of reasoned action and technology acceptance model and hence contributes to information system literature. In addition to that this study has outlined innovativeness as exogenous factor in the research model and examined consumer attitudes to adopt QR codes and hence enrich information systems in the context of innovativeness. Similarly, examining perceived convenience impact to investigate consumer attitude also contributes to the literature. Aside from the direct relationship, this study has confirmed the moderating impact of transaction speed between consumer attitude and intention to adopt QR code-enabled payment and added a new dimension to the research model. This study widely contributes to methods. For instance, the research methodology is designed under the positivist paradigm. Additionally, a survey was administered at a large scale, and over 216 respondents participated in this research. These responses were analyzed with the structural equation modeling approach which is the latest statistical approach for financial analysis.

Contribution to practice

Practically this study directs that policymakers should pay attention to factors underpinned theory of reasoned action, the technology acceptance model, perceived convenience, and innovativeness. More precisely this study recommends that perceived convenience is the most important factor in determining consumer attitude to accept QR-based payment. Nevertheless, a unified perspective is taken from the importance-performance analysis. Results of the importance-performance analysis indicate that factors like perceived convenience, transaction speed, subjective norm, and perceived usefulness are the most influential factors in determining user attitude and intention to adopt QR-enabled mobile payment. Consequently, policymakers should pay attention to perceived convenience, transaction speed, subjective norm, and perceived usefulness to boost user attitude and intention to adopt QR-enabled mobile payment. This study has also concluded that transaction speed moderates the relationship between consumer attitude and behavioral intention to adopt QR code-enabled mobile payment. Therefore, if policymakers highlight the transaction speed character of the QR code it will impact positively both consumer attitude and intention to adopt a QR code-based payment system.

The current research develops an integrated research framework that combines the technology acceptance model, theory of reasoned action, transaction speed, convenience, and innovativeness to investigate consumer behavior toward the adoption of a QR code mobile payment system. For empirical investigation, responses were collected through a research survey that was administered to smart mobile phone users. Results of this study have concluded that perceived usefulness, perceived ease of use, convenience, subjective norms, and innovativeness positively impact consumer attitude and explained a substantial variance \({R}^{2}\) 52.3% in determining user attitude to adopt QR code-enabled mobile payment. Moreover, consumer intention to adopt QR code-enabled mobile payment is predicted by transaction speed and consumer attitude and disclosed a large variance \({R}^{2}\) 55% in consumer behavioral intention to adopt QR code mobile payment. Aside from the overall impact of exogenous factors in predicting endogenous factor effect size analysis was conducted. Similarly, effect size f 2 analysis has revealed the substantial effect of perceived convenience in determining consumer attitude to adopt QR code-driven payment. The model is further extended with the moderating effect of transaction speed and reveals a significant moderating effect between consumer attitude and intention to adopt QR code-driven mobile payment. Theoretically, this study has developed an integrative research model with the help of the theory of reasoned action and technology acceptance model and hence contributes to information system literature. Therefore, for practitioners, this study suggests that policymakers should pay attention to perceived convenience, transaction speed, subjective norm, and perceived usefulness to boost consumer attitude and intention to adopt QR-enabled mobile payment. Moreover, this study has suggested if policymakers visualize the transaction speed character of QR codes it will impact positively on consumer attitude and behavior to adopt QR code-based payment. To conclude this research provides useful findings to policymakers to understand factors that influence consumer behavior to adopt quick response code mobile payment systems. Quick response code is an emerging technology and hence it will bring transformation in the Saudi fintech industry.

Limitations and future research directions

This research has some limitations and therefore it is important to acknowledge these limitations for future research directions. First, the integrative research model has combined the theory of reasoned action and the technology acceptance model altogether to investigate consumer intention to adopt QR code-based mobile payment. However, this study has not claimed to include all factors that impact consumer attitudes and behavioral intention to adopt QR code-enabled mobile payment. Therefore, future researchers are suggested to extend the current research model with service quality factors such as system quality, and information quality. Second, this study has outlined innovativeness as a single factor to investigate consumer attitudes toward adopting QR code-based payment. Aside from innovativeness diffusion of innovation theory also comprises compatibility. Therefore, future researchers may add compatibility in the current research framework to understand how it impacts consumer attitudes and intention to adopt QR code-based payment. Similarly, the perceived convenience factor has been extracted from self-determination theory. Nevertheless adding some other factors underpinned by self-determination could strengthen the research framework. Moreover, security is identified as an important concern for technology users. Therefore, future researchers are suggested to extend the current research model with perceived security to get deep insight into consumer behavior toward the adoption of QR codes. Another limitation of this study is that it collects data at one point in time and is based on a cross-sectional research design. Nevertheless, future researchers may investigate consumer adoption behavior under a longitudinal research design. “Descriptive analysis has shown that the majority of the respondents were young and expected that young people would have more incline towards adoption of innovative technology when compared with old age people. Thus, future researchers are suggested to examine the behavior of old age people and observe their attitude towards the adoption of QR code-enabled mobile payment. Another limitation of this research is to assess data biases through Harman’s single-factor analysis. However, testing common method bias through marker variables could reveal robust results. Finally, this study is conducted in a developing country context like Saudi Arabia. Nevertheless, a comparative study may be conducted to reveal how consumer attitudes and behavior toward the adoption of QR codes vary in different regions.

Data availability

Data used for this study are publicly available at the following link: https://github.com/mohammadyamin1978/data .

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Acknowledgements

This work was funded by the University of Jeddah, Jeddah, Saudi Arabia under grant No. (UJ-23-SHR-65). Therefore, the authors thank the University of Jeddah for its technical and financial support.

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Yamin MAY and Abdalatif OAA: conceived and designed the study. Abdalatif OAA: conducted the experiments and collected the data. Yamin MAY: analyzed and interpreted the data. All authors critically revised the manuscript for important intellectual content and approved the final version for publication.

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Yamin, M.A.Y., Abdalatif, O.A.A. Examining consumer behavior towards adoption of quick response code mobile payment systems: transforming mobile payment in the fintech industry. Humanit Soc Sci Commun 11 , 675 (2024). https://doi.org/10.1057/s41599-024-03189-w

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Understanding and shaping consumer behavior in the next normal

Months after the novel coronavirus was first detected in the United States, the COVID-19 crisis continues to upend Americans’ lives and livelihoods. The pandemic has disrupted nearly every routine in day-to-day life. The extent and duration of mandated lockdowns and business closures have forced people to give up even some of their most deeply ingrained habits—whether spending an hour at the gym after dropping the kids off at school, going to a coffee shop for a midday break, or enjoying Saturday night at the movies.

About the authors

This article, a collaboration between McKinsey and the Yale Center for Customer Insights, was written by Tamara Charm, Ravi Dhar, Stacey Haas , Jennie Liu, Nathan Novemsky, and Warren Teichner .

Such disruptions in daily experiences present a rare moment. In ordinary times, consumers tend to stick stubbornly to their habits, resulting in very slow adoption (if any) of beneficial innovations  that require behavior change. Now, the COVID-19 crisis has caused consumers everywhere to change their behaviors —rapidly and in large numbers. In the United States, for example, 75 percent of consumers have tried a new store, brand, or different way of shopping  during the pandemic. Even though the impetus for that behavior change may be specific to the pandemic and transient, consumer companies would do well to find ways to meet consumers where they are today and satisfy their needs in the postcrisis period.

Behavioral science tells us that identifying consumers’ new beliefs, habits, and “peak moments” is central to driving behavioral change. Five actions can help companies influence consumer behavior for the longer term:

• Reinforce positive new beliefs.
• Shape emerging habits with new offerings.
• Sustain new habits, using contextual cues.
• Align messages to consumer mindsets.
• Analyze consumer beliefs and behaviors at a granular level.

Reinforce positive new beliefs

According to behavioral science, the set of beliefs that a consumer holds about the world is a key influencer of consumer behavior. Beliefs are psychological—so deeply rooted that they prevent consumers from logically evaluating alternatives and thus perpetuate existing habits and routines. Companies that attempt to motivate behavioral change by ignoring or challenging consumers’ beliefs are fighting an uphill battle.

The COVID-19 crisis, however, has forced many consumers to change their behaviors, and their new experiences have caused them to change their beliefs about a wide range of everyday activities, from grocery shopping to exercising to socializing. When consumers are surprised and delighted by new experiences, even long-held beliefs can change, making consumers more willing to repeat the behavior, even when the trigger (in this case, the COVID-19 pandemic) is no longer present. In other words, this is a unique moment in time during which companies can reinforce and shape behavioral shifts to position their products and brands better for the next normal.

When consumers are surprised and delighted by new experiences, even long-held beliefs can change, making consumers more willing to repeat the behavior.

For example, approximately 15 percent of US consumers tried grocery delivery for the first time during the COVID-19 crisis. Among those first timers, more than 80 percent say they were satisfied with the ease and safety of the experience; 70 percent even found it enjoyable. And 40 percent intend to continue getting their groceries delivered after the crisis, suggesting that they’ve jettisoned any previously held beliefs about grocery delivery being unreliable or inconvenient; instead, they’ve been surprised and delighted by the benefits of delivery.

Another example of changing beliefs involves at-home exercise. The US online fitness market has seen approximately 50 percent growth in its consumer base since February 2020; the market for digital home-exercise machines has grown by 20 percent. It’s likely that many people who tried those fitness activities for the first time during the pandemic believed that at-home exercise couldn’t meet their exercise needs. That belief has clearly changed for many of these consumers: 55 percent who tried online fitness programs and 65 percent who tried digital exercise machines say they will continue to use them, even after fitness centers and gyms reopen. To reinforce the new belief that online fitness can be motivating and enjoyable, NordicTrack, in a recent TV ad titled “Face Off,” shows that online workouts can foster the same friendly competition and connection that people look for when they go to the gym or attend in-person exercise classes.

An effective way to reinforce a new belief is to focus on peak moments—specific parts of the consumer decision journey that have disproportionate impact and that consumers tend to remember most. Peak moments often include first-time experiences with a product or service, touchpoints at the end of a consumer journey (such as the checkout process in a store), and other moments of intense consumer reaction.

Some companies have focused on enhancing the consumer’s first-time experience. Plant-based-meat  manufacturer Beyond Meat, for instance, was already benefiting from delays in meat production in the early days of the COVID-19 crisis: its sales more than doubled between the first and second quarters of 2020. In collaboration with local restaurants  and catering companies, the company has been delivering free, professionally prepared food to hospitals and other community centers. By giving away Beyond Burgers prepared by professional chefs, Beyond Meat is creating positive first experiences with its product at a time when consumers are more open to trial.

As the consumer journey has changed, so have the peak moments, and it’s crucial for companies to identify and optimize them. For example, a peak moment in a grocery store might be the discovery of an exciting new product on the shelf. In the online-grocery journey, however, a peak moment might instead be on-time delivery or the “unboxing” of the order (the experience of taking the delivered items out of the packaging). Grocers could consider including a handwritten thank-you note or some other surprise, such as a free sample, to reinforce consumers’ positive connections with the experience.

Highly emotional occasions can spark intense consumer reactions and therefore present an opportunity for companies to create peak moments associated with their products or brands. For example, when graduations shifted from formal, large-scale ceremonies to at-home, family celebrations, Krispy Kreme offered each 2020 graduate a dozen specially decorated doughnuts for free. With that promotion, the company connected its brand with an emotional event that may not have been a key occasion for doughnuts prior to the pandemic.

Shape emerging habits with new products

Companies can nudge consumers toward new habits through product innovation. For instance, the COVID-19 crisis has spurred consumers to become more health oriented  and increase their intake of vitamins and minerals. Unilever reported a sales spike in beverages that contain zinc and vitamin C, such as Lipton Immune Support tea. The company is therefore rolling out such products globally. It’s also aligning its innovation priorities with consumers’ emerging health-and-wellness concerns.

Similarly, packaged-food companies can encourage the habit of cooking at home. Spice manufacturer McCormick’s sales in China have sustained double-digit increases compared with 2019, even as the Chinese economy has reopened  and people go back to their workplaces. The same pattern could play out in other countries. Kraft Heinz’s innovation agenda for its international markets now prioritizes products that make home cooking pleasurable, fast, and easy—products such as sauces, dressings, and side dishes. These will be targeted at “light” and “medium” users of Kraft Heinz products.

Sustain new habits, using contextual cues

Habits can form when a consumer begins to associate a certain behavior with a particular context; eventually, that behavior can become automatic. To help turn behaviors into habits, companies should identify the contextual cues that drive the behaviors. A contextual cue can be a particular task, time of day, or object placement. For example, more consumers are keeping hand sanitizer and disinfecting wipes near entryways for easy access and as a reminder to keep hands and surfaces clean. Product packaging and marketing that reinforces the put-it-by-the-door behavior can help consumers sustain the habit.

Some companies may need to identify—and create—new contextual cues. Before the COVID-19 crisis, a contextual cue for chewing-gum consumption was anticipation of a social interaction—for instance, before going to a club, while commuting to work, and after smoking. As social occasions have waned during the pandemic, a chewing-gum manufacturer must look for new contextual cues, focusing largely on solo or small-group activities, such as gaming and crafting. Gum manufacturers could consider designing packaging, flavors, and communications that reinforce those new associations.

Align messages to consumer mindsets

People across the country have felt an intensified mix of anxiety, anger, and fear because of recent events, making marketing a tricky terrain to navigate. The heightened emotions and increased polarization of the past few months could drive lasting changes in consumers’ behavior and shape their long-term preferences. Companies should therefore ensure that all their brand communications are attuned to consumer sentiment. The quality of a company’s communication  and its ability to strike the right tone will increasingly become a competitive advantage.

McKinsey’s consumer-sentiment surveys  show that consumers are paying closer attention to how companies treat their employees  during this crisis—and taking note of companies that demonstrate care and concern for people. That has implications for how brands connect with consumers and what types of messages will resonate. Hair-care brand Olaplex, for example, became one of the most mentioned hair-care brands on social media when it started an affiliate program: the company donated a portion of its proceeds from product sales to customers’ local hairstylists, helping them stay afloat during salon closures.

That said, consumers will see through—and reject—messages and actions that are performative and that seek to commercialize social issues. A brand’s communications must align with its purpose ; otherwise, the messages won’t ring true. Testing marketing messages among a diverse group of consumers, in the context in which those messages will appear, could help prevent costly missteps.

Analyze consumer beliefs and behaviors at a granular level

Consumer beliefs, habits, occasions, and emotional-need states will continue to evolve rapidly over the next year or two as the world awaits a COVID-19 vaccine. For consumer companies to stay abreast of those changes, monitoring product sales alone won’t be sufficient. Companies must also conduct primary consumer-insights work, with a focus on identifying changed behaviors and associated changed beliefs and motivators to get a comprehensive picture of the changing consumer decision journey.

Qualitative, exploratory research will have a particular role to play as a precursor to (and, in some cases, a substitute for) quantitative research. Digital data-gathering and monitoring techniques—such as mobile diaries, social-media “listening,” and artificial-intelligence-driven message boards—will be vital tools to help companies understand emerging behaviors and contextual cues. When structured well, those insights generate new thinking within an organization that can be validated through larger-scale surveys and in-market testing. Companies can then refine their product offerings and marketing messages accordingly.

In addition, granular analyses of footfall data and omnichannel sales will unearth telling details, such as which geographic regions are seeing in-person commerce rebound first and which products consumers are buying (such as smaller pack sizes to avoid sharing, activewear versus office wear, and so on). Whereas in the past, companies might have fielded high-level usage and attitude surveys and brand trackers a few times a year, it’s especially important now for companies to keep a closer eye on the evolution of consumer behavior on a weekly or monthly basis.

The COVID-19 crisis has changed people’s routines at unprecedented speed—and some of those changes will outlast the pandemic. Even in states and cities that have reopened, consumers remain cautious about resuming all of their precrisis activities. We’ve seen differences in consumer behavior across geographic markets and demographic groups, and those differences will only widen during the recovery phase, given that the health, economic, and social impact of COVID-19 isn’t uniform. Companies that develop a nuanced understanding of the changed beliefs, peak moments, and habits of their target consumer bases—and adjust their product offerings, customer experiences, and marketing communications accordingly—will be best positioned to thrive in the next normal.

Tamara Charm is a senior expert in McKinsey’s Boston office; Ravi Dhar is director of the Center for Customer Insights at the Yale School of Management; Stacey Haas is a partner in McKinsey’s Detroit office; Jennie Liu is executive director of the Yale Center for Customer Insights; Nathan Novemsky is a marketing professor at the Yale School of Management; and Warren Teichner is a senior partner in McKinsey’s New Jersey office.

This article was edited by Monica Toriello, an executive editor in the New York office.

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Five Key Stages of Consumer Decision-Making Process

Quick Summary

The buyer decision process outlines the steps consumers take from recognizing a need to post-purchase behaviour, which is crucial for effective marketing strategies. The five stages are need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behaviour. Psychological, personal, social, and cultural factors influence consumer decisions. Marketers can use these insights to create impactful campaigns. The blog provides actionable tips and case studies for each stage.

Understanding consumer behaviour is essential for businesses aiming to influence purchase decisions. The buyer decision process provides a structured approach to deciphering how consumers move from recognizing a need to post-purchase evaluations. This knowledge is vital for marketers to tailor their strategies, ensuring they meet consumer needs at every stage.

The consumer decision-making process encompasses various stages, each offering opportunities for engagement. Recognizing these stages helps businesses create targeted campaigns and improve customer satisfaction. This blog aims to provide a detailed guide on the consumer purchase decision process, highlighting its importance and offering actionable tips for marketers to influence consumer decisions effectively. 

What is the Buyer Decision Process?

The buyer decision process is a sequence of steps consumers go through when deciding to purchase a product or service. This process is significant in marketing because it helps businesses understand and anticipate consumer needs, improving their strategies to influence buying behaviour effectively.

Understanding the consumer decision-making process allows marketers to engage consumers at each stage, enhancing their overall experience. This process is deeply rooted in consumer behaviour theories, which explain how and why consumers make purchasing decisions. The key stages include need recognition, information search, evaluation of alternatives, purchase decisions, and post-purchase behaviour.

The consumer purchase decision process involves understanding consumer needs and providing solutions that align with those needs. Marketers can leverage insights from this process to develop targeted campaigns that resonate with their audience, ultimately driving sales and fostering customer loyalty. By comprehending each stage of the consumer buying process, businesses can create more effective marketing strategies and improve customer satisfaction. 

The Five Stages of the Consumer Buying Process

1. Need Recognition

Consumers identify a need or problem that requires a solution. This can be triggered by internal stimuli like hunger or external stimuli such as advertisements. Marketers can influence this stage by understanding consumer needs through market research and creating targeted campaigns that highlight these needs. For instance, health-conscious consumers might recognize a need for nutrient-rich snacks due to fitness goals.

2. Information Search

Once a need is recognized, consumers seek information to fulfil it. They use various sources, including search engines, reviews, and personal recommendations. Marketers should ensure their content is easily accessible through SEO strategies, informative ads, and engaging social media content. For example, a consumer looking for a new smartphone might read online reviews and watch product videos.

3. Evaluation of Alternatives

Consumers compare different products or services to make a decision. They consider factors like price, quality, and reviews. Marketers can influence this stage by providing detailed product information, positive customer testimonials, and competitive pricing. For example, when choosing a laptop, consumers might compare specs, prices, and user reviews.

4. Purchase Decision

At this stage, the consumer decides to purchase. Influencing factors include promotions, convenience, and previous experiences. To reduce cart abandonment, marketers should focus on optimizing the purchasing process, offering incentives, and ensuring a smooth checkout experience. An online store with an easy checkout process and promotional discounts can encourage purchases.

5. Post-Purchase Behavior

After the purchase, consumers evaluate their satisfaction with the product or service. Positive experiences can lead to repeat purchases and brand loyalty, while negative experiences may result in returns or negative reviews. Marketers can enhance post-purchase satisfaction through follow-up emails, loyalty programs, and responsive customer service. A company can send a thank-you email with a discount code for future purchases, encouraging repeat business.

Understanding these five stages of the consumer decision-making process allows businesses to engage with consumers at each step effectively. By tailoring strategies to the consumer purchase decision process, marketers can better meet consumer needs and drive sales. 

Factors Influencing the Consumer Decision-Making Process

1. Psychological Factors

Psychological factors play a significant role in the buyer decision process. These include motivation, perception, beliefs, and attitudes. For instance, a consumer’s motivation to buy a healthy snack could stem from a desire for better health. Marketers can create messages that resonate with these psychological triggers, making their products more appealing.

2. Personal Factors

Personal factors such as age, occupation, lifestyle, and economic status influence the consumer buying process. Younger consumers might prioritize trendy, tech-savvy products, while older consumers may focus on practicality and reliability. Tailoring marketing efforts to these personal factors can improve relevance and effectiveness.

3. Social Factors

Social factors like family, roles, and social status impact buying decisions. A consumer might choose a brand because it’s popular among their peers or family. Marketers should consider these influences when developing campaigns, ensuring they appeal to the target audience’s social dynamics.

4. Cultural Factors

Cultural factors, including culture, subculture, and social class, shape consumer preferences and behaviours. Understanding cultural nuances can help marketers create more targeted and appealing messages. For example, a product marketed in a culturally diverse area should reflect the values and traditions of the local population.

By understanding these factors, businesses can tailor their strategies to align with the consumer purchase decision process. This alignment enhances their ability to influence consumer decisions, driving sales and fostering loyalty. 

The Role of Digital Marketing in the Buyer Decision Process

1. Impact of Online Reviews and Social Media

Online reviews and social media significantly influence the buyer decision process. Consumers often rely on reviews and social media feedback to make informed choices. Positive reviews and social proof can enhance a brand’s credibility, while negative reviews can deter potential buyers. Marketers should actively manage online reviews and engage with customers on social media to build a trustworthy reputation.

2. Importance of a Strong Online Presence

A strong online presence is crucial in the consumer buying process. Consumers search for information online before making a purchase. Having a well-optimized website and active social media profiles can ensure that consumers find relevant information about your products. SEO strategies and engaging content can attract potential customers during the information search stage.

3. Strategies for Engaging Consumers at Each Stage

Marketers can use various strategies to engage consumers at each stage of the consumer decision-making process:

• Need Recognition: Create awareness through targeted ads and social media campaigns.
• Information Search: Provide detailed product information, blog posts, and FAQs on your website.
• Evaluation of Alternatives: Offer comparisons, customer testimonials, and product demos.
• Purchase Decision: Simplify the checkout process and offer promotions.
• Post-Purchase Behavior: Follow up with emails, request feedback, and offer loyalty programs.

By effectively using digital marketing, businesses can influence the consumer purchase decision process and drive higher engagement and conversions. 

Tips for Marketers to Influence the Buyer Decision Process

1. Creating Compelling Content for Need Recognition

Develop content that addresses consumer needs and pain points. Use targeted ads and informative blog posts to create awareness. By highlighting your product’s benefits, you can trigger potential customers’ need for recognition.

2. Providing Valuable Information During the Search Phase

Ensure that your website is optimized for SEO and contains detailed product information. Offer blog posts, FAQs, and how-to guides. Engaging content helps consumers during the information search stage of the consumer buying process.

3. Highlighting Unique Selling Points and Benefits

During the evaluation stage of the consumer decision-making process, emphasize what sets your product apart. Use comparisons, customer testimonials, and product demos to showcase your unique selling points. This can help consumers see the value in choosing your product over competitors.

4. Offering Incentives and Promotions to Drive Purchases

Use promotions, discounts, and limited-time offers to encourage purchases. Simplify the checkout process to reduce cart abandonment. Incentives can be a strong motivator in the purchase decision stage of the consumer purchase decision process.

5. Ensuring Excellent Customer Service for Post-Purchase Satisfaction

Provide outstanding customer service to enhance post-purchase satisfaction. Follow up with emails, request feedback, and offer loyalty programs. Positive post-purchase experiences can lead to repeat business and brand loyalty, completing the buyer decision process successfully.

By implementing these tips, marketers can effectively influence each stage of the consumer buying process and drive better business results.

Case Studies: Brands Successfully Navigating the Buyer Decision Process

1. Warby Parker

Warby Parker, an eyewear brand, excels at understanding the buyer decision process. It engages consumers from need recognition to post-purchase behavior. The brand identified a gap in the market for affordable, stylish eyewear. 

By offering home try-ons, they address the need for recognition and information search stages. Their strong online presence and customer testimonials aid in the evaluation of alternatives. Simplified checkout processes and promotions drive purchase decisions. Post-purchase, Warby Parker ensures satisfaction through follow-up emails and excellent customer service, fostering brand loyalty.

2. Native Deodorant

Native Deodorant is another brand that effectively leverages the consumer decision-making process. It tapped into the rising demand for natural personal care products. By highlighting its aluminium-free deodorants, it addresses consumer needs for safe, effective options. 

Native uses influencer marketing and social media to enhance the information search stage. They provide detailed product information and comparisons to help consumers evaluate alternatives. Native’s straightforward purchasing process and promotional offers encourage purchases. Post-purchase, they engage customers through follow-up communications and loyalty programs, ensuring high satisfaction and repeat business.

Amazon excels at leveraging the buyer decision process to drive sales and enhance customer satisfaction. The company focuses on need recognition by offering a wide range of products and personalized recommendations based on previous purchases and browsing history. 

During the information search stage, Amazon provides detailed product descriptions, customer reviews, and Q&A sections. The evaluation of alternatives is facilitated by comparison features and extensive reviews. 

Amazon’s streamlined checkout process and one-click purchasing option simplify the purchase decision. Post-purchase, Amazon follows up with order confirmations, delivery tracking, and easy return policies to ensure customer satisfaction and loyalty.

4. Starbucks

Starbucks has mastered the consumer decision-making process by creating a strong brand identity and engaging customer experience. They recognize the need for a convenient, quality coffee experience and fulfill this need with accessible store locations and mobile ordering. 

Information about their products is readily available through their website and app, which also highlight customer reviews and nutritional information. Starbucks encourages the evaluation of alternatives by offering a diverse menu and seasonal promotions. 

The purchase decision is made seamless through a user-friendly app that allows for easy payments and loyalty rewards. Post-purchase, Starbucks engages customers with personalized offers and updates via their app and email newsletters, fostering loyalty and repeat business.

Apple effectively uses the consumer purchase decision process to build strong customer loyalty and drive sales. The company excels in need recognition by constantly innovating and creating products that meet evolving consumer demands. 

Apple’s comprehensive website, in-store experiences, and product demonstrations support information search. Apple also facilitates the evaluation of alternatives by showcasing product features, specifications, and customer testimonials. 

Apple makes the purchase decision easy through streamlined online and in-store purchasing processes and financing options. Post-purchase, Apple ensures customer satisfaction with exceptional customer service, support, and robust warranty programs, encouraging repeat purchases and brand advocacy.

Understanding the buyer decision process is essential for marketers who want to influence consumer behaviour effectively. By recognizing the stages of the consumer buying process, businesses can create targeted strategies that meet consumer needs at each step. This leads to improved engagement, higher conversion rates, and stronger customer loyalty.

Implementing strategies that align with the consumer decision-making process helps businesses stay competitive. It is important to continually adapt to changing consumer preferences and leverage digital tools to enhance marketing efforts. Encouraging marketers to apply these insights can drive better results and foster long-term customer relationships.

For further engagement or consultation services, reach out to us to enhance your marketing strategies based on the consumer purchase decision process.

What is the most important stage in the consumer buying process?

The most important stage can vary, but recognition is often critical. This stage initiates the entire buyer decision process. By identifying and understanding the consumer’s needs, businesses can tailor their marketing strategies to address and fulfill these needs effectively.

How do psychological factors affect consumer decision-making?

Psychological factors such as motivation, perception, beliefs, and attitudes significantly impact the consumer decision-making process. These factors shape how consumers recognize needs, search for information, evaluate options, and make purchase decisions. Marketers can create campaigns that resonate with these psychological triggers to influence consumer behavior.

What role does social media play in the buyer decision process?

Social media plays a vital role in every stage of the consumer buying process. It helps in need recognition through targeted ads and influencer endorsements. It aids in information search by providing reviews and recommendations. Social media also influences the evaluation of alternatives and can drive purchase decisions through promotions and social proof.

How can businesses improve post-purchase customer satisfaction?

Businesses can improve post-purchase satisfaction by offering excellent customer service, implementing loyalty programs, and actively seeking and addressing customer feedback. These actions ensure a positive post-purchase experience, fostering repeat business and loyalty within the consumer purchase decision process.

What are some common mistakes marketers make during the buyer decision process?

Common mistakes include neglecting the need recognition stage, providing insufficient information, ignoring customer feedback, and failing to optimize the purchasing experience. By understanding the consumer decision-making process and addressing these areas, marketers can improve their strategies and better meet consumer needs. 

I am currently pursuing my Masters in Communication and Journalism from University of Mumbai. I am the author of four self published books. I am interested inv writing for films and TV. I run a blog where I write about film reviews.

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