Factors Influencing Customer Choice

Factors Influencing Customer Choice – psychological, sociocultural, economic, government

Psychological factors: internal and personal motivations (perception, motives, attitude, personality, self-image)

  • Will the product improve my appearance/self-image/status?

Sociocultural factors: forces exerted by other people and groups that affect an individual’s buying behaviour (friends, family, religion, ethnicity, income, education, etc.)

  • Does this product relate to my religion/background?
  • Will my relationship with my peers be affected?

Economic factors: relates to the financial situation (income, unemployment) in which an individual finds themselves in or the state of the economy “boom” or “recession” (which affects consumer demands)

  • Can I afford this?
  • Am I getting value for money?

Government factors: influence of government legislation and the regulation of markets. For example, income tax, interest rates. Government factors can impact directly or indirectly on business activity and customers’ spending habits, and therefore the marketing plan.

  • Competition and Consumer Act 2010 (Cth)

Extract from Business Studies Stage 6 Syllabus. © 2010 Board of Studies NSW.