Factors Influencing Purchase Decision of a Consumer23rd February 2020
Culture is one of the key factors that influences a consumer’s buying decisions. These factors refer to the set of values, preferences, perceptions, and ideologies of a particular community. At an early age, buyers learn to recognize acceptable behavior and choices when selecting products.
For example, it is our culture that teaches us that, as a buyer, we need to make payments and honor contracts, pay on time, observe rules, and assume responsibility when seeking information. Sometimes ‘cultural shifts’, due to the influence of different cultures indicate the need to introduce new products.
Each culture is further divided into various subcultures based on age, geographical location, religion, gender (male/female), etc.
Social factors, which includes the groups to which the customer belongs, and his or her social status, also affect purchase decisions. Human beings are innately social. They need people to interact with, and make decisions. Social groups, like families, can influence the buying decisions of consumers. These factors are further divided into:
Family is one of the most important buying organizations in our society and, is thus, the most influential group. Family has a direct or indirect influence on the behavior and attitude of a buyer. In the traditional setting, it was the wife in a husband-wife model relationship who was responsible for making buying decisions related to product categories such as household products, food, and clothing. However, with more women opting for full-time professional careers, these roles have changed. Today, it may be a man doing the household shopping. So, it is important to have a marketing mix that targets these consumers as well.
Social class or status can also influence buying decisions. The members of a social class are one that share similar behavior, values, and interests. Apart from income, people in the same occupation, neighborhood, or educational system can belong to a shared social classes.
With a contribution of 49%, free shipping is the second most significant factor that influences the consumer decision making process. Free shipping usually attracts customers who purchase very often from online stores and websites. Free shipping helps to keep the customers hooked for a longer period of time.
To avoid bearing the entire burden of shipping costs, you can add a fraction of shipping costs into your products but remember that prices have to be competitive too.
Product and Information Quality
One of the most important factors that influence the consumer’s buying behavior is product quality and product information. Promoting and selling good quality products at the right time and the right platform are vital to a business’s success.
Product descriptions, specifications, product videos, and more can be utilized to influence the consumer’s decision making process.
Undeniably, a lack of personal touch is something which an eCommerce business suffers from. But, it can overcome this challenge by putting an easy return policy in place. Defined and easy return policies are really very helpful if they are in favor of consumers. In a business where sie or color of the product can mismatch, easy return policy helps you get the consumer’s trust.
A Great Navigation in the eCommerce website helps in getting positive user experience. It will help the consumers in getting the idea where they are and where to move on. Good navigation includes everything from well-defined categories to site maps. It gives a simple sneak-peek into the list of products that the company offers.
The process of checkout must be really simple. If the checkout process is complicated, there are chances that the customer might lose interest in purchasing the product. Ensure a great CX for the consumer buying process.
Pro tip: There are a few things which can make the check out process easy. For example, customers are able to send 2 different products in 2 different states, they are able to apply discount coupons easily, send personalized cards with different products and more.
Customers often lookout for new products. Try to add new launches to the product catalog. Consumers always look for something that is new and innovative. Moreover, new products attract more traffic too.
Pro tip: To increase the traffic on your website, it is considered as a good practice (from an SEO point of view) to add a ‘New Products’ section.
With the above seven factors in mind, analyze the business model of your business. Take necessary actions to positively influence your customer’s purchase decision. There are many factors that influence the customer’s decisions. Thereby, analyze the requirements of your business and focus on providing maximum CX to your customers. To keep your business on top of the competition, make sure that you analyze the marketing trends properly and include them in your strategy.