Factors Which

Influence

Consumer

Choice
Submitted by
Jithin Mathew
S2 MBA
 Who is a Consumer?

• A consumer is someone who buys goods,

such as food, clothes, mobile phones,
books, magazines, appliances, from a
shop or other source.

• A consumer is also someone who buys a

service, usually from a specialist, such
as an electrician, technician,
hairdresser, beautician, bus driver, or
travel agent.

• A consumer buys goods or services for

his or her personal use.
 What is Consumer Choice?

• Consumer choice is the way people

choose to spend their money.

• This is influenced by many factors.

• While people have some freedom of

choice, there are many factors which
may affect their choice.
What influences Consumer Choice?

Personal
factors

Environ-
Social
mental
factors
factors Factors
Influencing
Consumer
Choice

Psychological Economic
factors factors
 Personal Factors
• Needs - essential items:
e.g. food, clothes, etc

• Wants - something one

can live without:
e.g. another
pair of shoes, a TV in
the bedroom

• Likes/dislikes - personal
taste or preferences

• Time available - time to

shop around, time to do
household chores and/or
cook, time to travel
Personal Factors

• Values - what is personally

important in life

• Emotions/mood - how one feels

• Knowledge – the background

information one has about the
product or service

• Hobbies – specialist equipment for

hobbies
 Social Factors
• Family – likes and
dislikes may be passed
on to children

• Friends - likes and

dislikes may be passed
on; wanting to have the
same

• Other people –
recommendations that
help to make decisions

• Trends – things which

are fashionable
 Social Factors

• Entertainment options –
CD’s, DVD’s, parties, family
outings, cinema, sports,
holidays

• Gender – norms for

products and services; what
is considered
feminine/masculine

• Age – different age groups

have different interests,
therefore different wants
Economic Factors
• General personal/family
income
• What one can afford at the
time of purchase
• Credit cards available

• Value for money

• Special offers
• Reduced price (sales)
• Hire purchase options – buy
now pay later
• Free credit options –
e.g. No interest paid in first
12 months
 Environmental Factors
• Buying products which
can be reused –
e.g. washable lunch
boxes rather than a
plastic bag

• Energy efficient
products –
e.g. light bulbs,
appliances

• Water-saving products -
e.g. certain dishwashers
and automatic washing
machines
Environmental Factors

• CFC-free products – e.g. buying

appliances and aerosols (sprays)
which are ozone-friendly

• Recyclable packaging

• Biodegradable packaging

• Items not tested on animals –

e.g. personal care products

• Lifestyle – making consumption

choices to promote sustainable
development
 Psychological Factors

• Planned buying –
buying goods and
services when all options
have been considered;
often to fulfil a need,
but could also be a want

• Impulse buying –
buying something on the
spur of the moment,
without consideration of
need or options available
Psychological Factors

• To bribe, encourage or reward

someone

• Emotions – buying an item to

make oneself feel good

• Celebrations – extra money

spent on special occasions;
treats

• Advertisements – Use different

strategies to motivate
consumers to buy
THANK YOU