Personal Factors Effecting Consumer Behaviour (Philip Kotler Summary)

PERSONAL FACTORS EFFECTING CONSUMER BEHAVIOUR :

• Age/Life cycle stage.
• Occupation.
• Economic circumstances.
• Life style.
• Personality/ Self concept.

Age/ Life Cycle Stage:

Buyer’s choice in many products related to age & family life cycle.

Family life cycle stages could be:

• Bachelor: Young/ Single people not living at home.
  • Few financial burdens.
  • Fashion opinion leaders.
  • Recreation oriented.
  • Buy basic kitchen equipment/ furniture/ vacations.
• Newly Married Couple:  Young/ No children.
  • Better off financially than they would be in near future.
  • High purchasing rate of consumer durables- furniture/ auto/ refrigerator (may be highest purchasing rate).
• Full Nest 1:  Youngest child under six.
  • Home purchase.
  • Low liquid assets.
  • Dissatisfied with financial positions & savings.
  • Interested in new products.
  • Influenced by advertisements.
  • Buy: washing m/c, T.V., Baby food, toys.
• Full Nest 2:  Youngest child above six years.
  • Better financial position.
  • Lower influence of advertisements.
  • Buy large size packs/ multiple units.
  • Buy: Food, Cleaners, Educational Accessories.
• Full Nest 3:  Older Married Couple with Dependent Children.Empty Nest 1:  Older Married Couples with NO Children Living with them.
  • Better financial position.
  • Children may start getting jobs.
  • Difficult to influence with advertisement.
  • But: Furniture, Magazines, Appliances.
• • Family head still working.
  • Peak home owners.
  • Most satisfied with financial position and savings.
  • Buy: Travel, recreation, self education, gifts.
  • Not interested in new products.

• Empty Nest 2:  Older Married Couple
  • No children at home
  • Head of family retired.
  • Drastic decrease in income.
  • Keep home.
  • Buy medical care.
• Solitary Survivor:  Working.
  • Income still good.
  • May sell home.
• Solitary Survivor:  Retired.
  • Drop in income.
  • Buy medical care.
  • Needs attention/ affection/ security.

Marketers choose life cycle groups as target market.

Occupation:

Person’s occupation influences his/her consumption pattern.

Example:

• Blue collar worker       : work clothes + shoes.
• Senior Manager           : suits/ air travels/ club memberships.

Marketers try to identify occupational group that would have above average interest in their products. At times, company may specialize its products for certain occupational groups. Example: – miner cap, sports shoe for different sports.

Economic Circumstances:

Affects choice of products.

Components of economic circumstances could be

• Spendable income       (level/ stability/ time pattern).
• Savings & Assets        (including liquid assets).
• Debts/ Borrowing Power.
• Attitude towards ‘Spending Vs Savings’.

Marketers of income sensitive goods need to pay attention towards trends in

• Personal income.
• Savings.
• Interest rates.

In a recession, marketers may need to

• Redesign.
• Reposition.
• Reprice their products.

Lifestyle: (Psychographic):

Persons from same subculture/ occupation/ may lead different lifestyles.

Lifestyle: Person’s pattern of living in the world, expressed in the person’s Activities/ Interests/ Opinion.

• Lifestyle portrays the whole person’s interacting with his/her environment.
• Marketers search for relationship between their products & lifestyle groups (coefficient of correlation, r > 0.7).
• Lifestyles classified through frameworks. – AIO Framework and VALSI Framework.

Personality / Self Concept:

Each person has a distinct personality that influences his/ her buying behaviour.

Personality implies a person’s distinguishing psychological characteristic & enduring responses to his/her environment.

Described by traits such as:

• Self confidence.
• Dominance.
• Autonomy.
• Deference.
• Sociability.
• Defensiveness.
• Adaptability.

Personality may be variable in analyzing consumer behaviour provided personality types can be accurately classified & their direct co-relation to product/ brand choices indicated.

Related to personality is the person’s self concept.

Self-concept is a person’s image about him/her self (self image).

Marketers need to develop communication strategies so that:

• Advertisements/ Communication appeal to personality traits.
• Brand/ Products image relates target market’s self image.