ESSAY TEST QUESTION

The most important factor in Consumer Behavior

CLASS: MKT1601
SUBJECT: MKT201 - CONSUMER BEHAVIOR
LECTURER: MRS. LE THI VIET HA
STUDENT: NGUYEN TRANG NHUNG - HS163055

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 To achieve a successful and efficient marketing strategy, consumer behavior is
crucial. Marketers hope that by gaining a better grasp of this, they will be able to decide
which products are needed in the marketplace, which is outmoded, and how to best
offer the goods to customers. According to much research, there are many factors
affecting consumer behavior, but I think personal factors are the most important factors
in consumer behavior.

Consumer behavior is the study of how people make decisions about what they
buy, want, need, or do in relation to a product, service, or company. Understanding
consumer behavior is critical for predicting how a new product or service will be
received by potential customers. It also helps companies in finding untapped
opportunities. To fully know how consumer behavior affects marketing, we must first
understand the factors that influence consumer behavior. The situation, psychological,
environmental, and marketing aspects, personal factors, family, culture, etc are all
factors that impact a consumer's purchasing decision. Personal factors are the most
important among these factors.

Personal Factors are the factors that are unique to each customer and have a
significant impact on their purchasing decisions. These variables vary from person to
person, resulting in a wide range of perceptions, attitudes, and behaviors toward
certain goods and services. A person's decision-making process, distinctive habits and
hobbies, and opinions are all examples of these attributes. Demographic data such as
age, gender, income, occupation, and so on are included when evaluating personal
aspects. It also depends on one's personal preferences and opinions. Companies also
examine consumers' lifestyles — their daily routines, leisure activities – to gain a better
understanding of them. The most important factor in these personal factors is Age or
Lifecycle. At different ages, people tend to have different consumption habits. As an
example, purchases of confectionaries, such as chocolates, are more common while a
person is a child, but then he grows and matures, his tastes for it might change. A
Person's Income also has an impact on his consuming behavior. An individual's
purchasing power is determined by their income, therefore the more their income, the
higher their expenditure on other products. With a high-income person, he or she will
be able to spend more on expensive products which a low-income person won’t be able
to afford. As the next factor, Occupation is a substantial influence on the purchasing
decision. The products and brands that an individual chooses for himself or herself are
directly influenced by the nature of his or her job. People are more likely to purchase
products and services that promote their profession or status in society. For example, a

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businessman's purchasing habits will differ from those of other groups of people such
as doctors, teachers, and engineers. To be one of the most important personal factors,
The consumer's lifestyle also plays a significant role in people’s purchasing habits. The
term "lifestyle," coined by Austrian psychologist Alfred Adler in 1929, refers to how a
person lives in society. The style, attitude, perspective, social relationships, and
immediate surroundings all contribute to an individual's lifestyle. Each person's
purchase habits will differ depending on their lifestyle. A vegan is an example of this. A
vegan is someone who lives a healthy lifestyle that includes avoiding junk food and
eating more organic foods.

A case study of Starbucks in China can provide us with more detailed insight into
how personal factors influence consumer behavior. The influence of Western cultures
has changed Chinese people's lifestyles. Consequently, young Chinese people believe
that Chinese culture has become outdated and unfashionable. They have become more
stylish and have higher expectations for self-improvement. Moreover, Starbucks's target
market is also made up of young, well-educated, and trendy people. However, for
ordinary Chinese people, the cost of a Starbucks coffee cup is still too expensive. As a
result, Starbucks coffee is only affordable to the rich, giving the impression that it is
elite. Starbucks' lack of price competency could be a big obstacle to its progress in
China. Because most people do not appreciate coffee for its fine differences in taste, the
majority of people will choose to consume inexpensive coffee like Nescafé inside their
homes or offices rather than outdoors at an expensive café. For all these reasons,
Starbucks is only popular among young Chinese people who have high incomes and
modern lifestyles.

Having a fantastic product isn't enough to ensure long-term sales stability. It's all
about addressing customers' wants, getting to know what makes them tick, and
speaking to them in ways that entice them to participate. To do so, marketers use a
variety of reports, surveys, and tools to gain a better understanding of one thing:
consumer behavior. It's a marketer's dream come true. Although numerous elements
influence consumer behavior, personal factors are the most important since they have a
significant impact on people's purchasing decisions. By studying consumer behavior
and the factors that drive customer buying behavior, companies can create new goods,
marketing campaigns, and boost profitability.

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REFERENCES
Managementstudyguide.com. 2021. What is Consumer Behaviour - Meaning, Concepts, PPT. [online]
Available at: <https://www.managementstudyguide.com/what-is-consumer-behaviour.htm>
[Accessed 18 October 2021].

Business Jargons. 2021. What are the Personal Factors Influencing Consumer Behavior? - Business
Jargons. [online] Available at:
<https://businessjargons.com/personal-factors-influencing-consumer-behavior.html> [Accessed
18 October 2021].

Demandjump.com. 2021. The Importance of Consumer Behavior in Marketing. [online] Available at:
<https://www.demandjump.com/blog/the-importance-of-consumer-behavior-in-marketing>
[Accessed 18 October 2021].

StudyMoose. (2016). Starbucks Case for Consumer Behavior. [Online]. Available at:
https://studymoose.com/starbucks-case-for-consumer-behavior-essay [Accessed: 18 Oct. 2021]