Buying Behavior of Customers

This document discusses the buying behavior of customers, including the role of group interaction, the influence of reference groups, and the factors that affect buying behavior. It also explores the role of marketers in advertising, promotion, and persuasion.

Running head: BUYING BEHAVIOR OF CUSTOMERS
BUYING BEHAVIOR OF CUSTOMERS
Name of Student
Name of the University
Author Note

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Table of Contents
Response to question 1: The role of group interaction in decision making process of a customer.2
Effect of reference groups on the buying decisions of the customers.........................................2
Response to question 2: discussion on factors of buying behavior.................................................3
Psychological factors...................................................................................................................4
Social factor.................................................................................................................................4
Cultural factors............................................................................................................................4
Personal factors............................................................................................................................4
Economic factors.........................................................................................................................5
Response to question 3: the role of a marketer in :..........................................................................5
Advertising......................................................................................................................................5
Promotion....................................................................................................................................5
Persuasion....................................................................................................................................6

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Response to question 1: The role of group interaction in decision making
process of a customer
Figure 1: Social factors influencing consumer behavior
Source: (Zhang and Benyoucef 2016)
Effect of reference groups on the buying decisions of the customers
There are various influencers who try to influence the customers decision making process
by gathering sufficient information about the products and services and trying to impose their
decisions on the buyers decision making (Kapuge 2016). The influencer that has the highest level
of influence on the customers buying decision is that of the reference groups. The reference
groups consists of the people that the customer compares himself with and that are related to the
customers. These people may be his friends, family, relatives, neighbor. Customers try to

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conform to the group 1norms and therefore purchase certain goods and services to meet those
norms. There are some opinion leader for all the social groups who influence others decisions
through interacting with them. Therefore if the people from the reference group purchase any
products, the customers will most likely buy that products. For example: in the case study the
customers who has come to buy the products are influenced by the reference group brought with
them such as all the customers have bring their families or even friends foe purchasing the cars.
Interaction and communication with these group have an impact on the buyers decision-making
process.
Response to question 2: discussion on factors of buying behavior
Figure 2: factors influencing the buyer behavior
Source : (Joshi and Rahman 2015)

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Psychological factors
There are various factors that influence his psychology such as the motivation to buy the
product, perception about the products and the company brand, attitudes and beliefs towards the
product and the company and others (Kimmel 2018). According to Maslow, when an individual
has some needs he will be motivated to satisfy those needs so if a customer’s wants a product it
will create a sense of need in him until he buys that product and this sense of need will motivate
him to buy the products.
Social factor
The social factors include all those factors that influence the customers buying decision
because of the fact that the customers want to be accepted by the society in which they live
(Wang and Yu 2017). The customers try to imitate the buying decisions of the reference groups
such that they are accepted by the reference groups. These groups include- family, neighbor,
relatives and others.
Cultural factors
The behavior of an individual is developed during his childhood itself because he learns
the culture from the people around him. Culture has a major role to play in determining the
choices of the customers towards products and services.
Personal factors
There are different personal factors that influence the customers buying behavior such as
his age, his income level, occupation, lifestyle and others. If a person earns a handsome salary
then they will be more interested in spending the same on goods and services as compared to
people who do not.

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Economic factors
There are a number of economic factors that influence the decision-making process of the
customers. These are his family income, the credit available related to the goods, his saving and
various other factors.
Response to question 3: the role of a marketer in :
Advertising
The marketers should try to create awareness among the customers related to the brands
that are available in the show room and the price range in which these are available. The target
audience for the automatic models are the software engineers and the businessman so the
marketers can convert potential buyers into customers by giving them sufficient information
about the same (De Mooij 2018). The advertiser can create a good brand image of the company
in the minds of the customers through showing personality endorsements of the products and
others.
Promotion
In order to promote the products the marketers can discuss about the offers given by the
company during festive season’s such that the customers can be attracted. The marketers can
offer test drive for the customer and his family since the wives and the children are the ones who
influence the buying decisions of the customers to great extent. The markets should try to create
a positive image of the company in not only the minds of the customers buy also the reference
groups.

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Persuasion
In order to persuade the target market, the marketers should try to show them how the
company is superior to others through its valuable products and services. The company may give
various premium offers top persuade the customers.

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References
De Mooij, M., 2018. Global marketing and advertising: Understanding cultural paradoxes.
SAGE Publications Limited.
Joshi, Y. and Rahman, Z., 2015. Factors affecting green purchase behaviour and future research
directions. International Strategic management review, 3(1-2), pp.128-143.
Kapuge, K.D.L.R., 2016. Determinants of organic food buying behavior: Special reference to
organic food purchase intention of Sri Lankan customers. Procedia food science, 6, pp.303-308.
Kimmel, A.J., 2018. Psychological foundations of marketing: the keys to consumer behavior.
Routledge.
Wang, Y. and Yu, C., 2017. Social interaction-based consumer decision-making model in social
commerce: The role of word of mouth and observational learning. International Journal of
Information Management, 37(3), pp.179-189.
Zhang, K.Z. and Benyoucef, M., 2016. Consumer behavior in social commerce: A literature
review. Decision Support Systems, 86, pp.95-108.