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Understanding Consumer Behaviour: Factors and Impact on Purchase Decisions

Analyzing the impact of individual difference factors on consumer purchase decision and brand switching process in a case study organization, and discussing how marketers can apply this understanding to improve marketing strategies.

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Added on  2023-04-21

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This document explores the various factors that influence consumer behavior, such as technological advancements, marketing campaigns, situational cues, and economic factors. It also discusses the impact of individual difference factors on consumer purchase decisions and brand switching. The document delves into consumer decision-making processes and provides real-life examples, as well as an overview of customer behavior theories. Overall, it provides insights into understanding consumer behavior and its implications for marketing strategies.

Understanding Consumer Behaviour: Factors and Impact on Purchase Decisions

Analyzing the impact of individual difference factors on consumer purchase decision and brand switching process in a case study organization, and discussing how marketers can apply this understanding to improve marketing strategies.

   Added on 2023-04-21

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Customer Behaviour
National Bank of America
Student Name
Understanding Consumer Behaviour: Factors and Impact on Purchase Decisions_1
Consumer Behaviour 1
Contents
Introduction....................................................................................................................2
Individual difference Influence factors:.....................................................................2
Impact of individual difference factor on consumer purchase decision and brand
switching process.......................................................................................................................3
Consumer decision making............................................................................................5
Influence of individual difference factors on consumers’ decision making process.....6
Real life example of amazon..........................................................................................6
Customer behaviour theories..........................................................................................7
Individual difference on consumer behaviour to enhance organisation-marketing
strategies....................................................................................................................................8
Conclusion......................................................................................................................9
References....................................................................................................................10
Understanding Consumer Behaviour: Factors and Impact on Purchase Decisions_2
Consumer Behaviour 2
Introduction
In today’s scenario, numerous factors affect the buying behavior of individuals. Some of the
factors are categorized as internal factors, which influences the customers at a greater extent.
Likewise learning, perception, motivation, an attitude that are the major reasons, which are
understood by the marketer by conducting the appropriate approach.
Consumer behavior is a wide term, which cannot be understood completely because it is
more on human mind. However, it can be forecasted that how human behave in purchasing
situation through their previous purchase behavior (Joshi, and Rahman, 2015). Similarly, this
entire assessment is based on the customers buying behavior of the National Australia Bank.
This assessment is majorly pointing out towards individual different factors that what all
factors are relevant to the customers buying behavior (Perner, 2018).
Individual difference Influence factors:
Technological factors: The major factors behind the individual difference is of technological
change, innovation of the new and advanced technology in the banking sector have majorly
affected the customers buying behavior. Due to this advanced patterns of technology, the old
and out-dated traditional buying patterns that have affected their incentives. Moreover, the
bank has also outlined the prices for the financial instruments; due to this, they have a major
impact on the sales (Jaideep, 2018).
Marketing campaign: In this, the marketing research manager as aligned their operations
with the focus on the ultimate customers. They have worked over the offering of personal
investment that has continuously altered into consumers banking and wealth management
services for its clientele.
Situational cues: In general terms, it is estimated that near around 40% of the customers,
change their mind at the time of making purchases because of something they see, learn or
do.
Economic factor: In this, the purchasing decision and readiness to spend depend on
acquiring power. As both, the factors depends on the economic condition and they are more
dependent on the income of the individual, credit facility. Therefore, the purchasing power
and inclination of the customers are the key economic forces that affect the individual buying
decisions. In NBA, the rationale active type of customers involves actively in services that
are offered are too high and also very carefully makes the purchase decisions (ISN, 2017).
Understanding Consumer Behaviour: Factors and Impact on Purchase Decisions_3
Consumer Behaviour 3
Impact of individual difference factor on consumer purchase decision
and brand switching process
Other than the economic, social, technological factors, there is a psychological factor
likewise, perception, learning, beliefs, and attitude which influence the customer's behavior
considerably. In basic terms, these factors determine the individuals’ consumption behavior
(Business Jargons, 2018).
(Source: Jaideep, 2018)
Perception: Perception highlights the action of the persons by his/ her insight of the going
situation. Diverse people perceive the same condition with the same inspiration but
differently. Diverse perception arises due to selective attention, selective distortion and
selective retention. In NBA case, customers whose behavior is the interpersonal dependent
who are highly tangled in making the financial decisions but due to the complex situations
and the uncertain surroundings, the customers lose it confidence for purchasing it.
Furthermore, they contact the third party, the banks, or the other financial institutions to seek
advice and make the relevant decisions, which are beneficial to them Kaczmarek, et al, 2015)
Learning: Learning is that process in which the clienteles alter their behavior after they gain
material or experience about a product. It is that modification in the behavior, which occurs
because of repetition. In this, the mind of the individual thinks and decides which is based on
Understanding Consumer Behaviour: Factors and Impact on Purchase Decisions_4

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