Factors Influence Customer's Buying Behaviour

Student: Mavlonbek Soliev

Student ID: 0086MWMW0612

Subject: Understanding Customers

Program: BABS

Semester: Four

Submission Date: April 16

Lecturer: Mr. Albert Lim

2014

Westminster International College

The Assignment of Understanding Customers

Contents

Executive Summary ............................................................................................3

1.0 Introduction ..................................................................................................3

1.1 Purpose ......................................................................................................4

1.2 Objective and expansion .............................................................................4

2.0 Internal and External variables .......................................................................5

2.1 CULTURAL FACTORS ............................................................................5

2.1.1 Culture .................................................................................................5

2.1.2 Subcultures...........................................................................................5

2.1.3 Social Class ..........................................................................................6

2.2 SOCIAL FACTORS...................................................................................6

2.2.1 Reference Groups .................................................................................6

2.2.2 Family..................................................................................................6

2.2.3 Roles and Statuses ................................................................................7

2.3 PERSONAL FACTORS .............................................................................7

2.3.1Age and Stages in the Life Cycle ............................................................7

2.3.2 Occupation ...........................................................................................7

2.3.3 Lifestyle ...............................................................................................7

2.3.4 Personality and Self-Thought ................................................................8

2.4 PSYCHOLOGICAL FACTORS .................................................................8

2.4.1 Motivation............................................................................................8

2.4.1 Perception ............................................................................................8

3.0 Maslow's Theory of Motivation - Hierarchy of Needs .....................................9

4.0 Conclusion .................................................................................................. 10

5.0 Appendix: Works on Templates ................................................................... 11

6.0 Works Cited ................................................................................................ 33

E xecutive Summary The purpose of this report is to elaborate the factors which are influences to individuals before

making a purchase. And also as a customer view to think about and gain further insights into

three major areas of consumer behavior as applied to myself.

Internal and External influences of my purchases

Levels of involvement in my purchasing process

The main motivations for my purchases

The making a purchase is indeed a major decision of everyone’s life and daily. The report begins

with an introduction and the factors mentioned. This report ends with a conclusion point it is

summarized that the major findings of week-long purchases in terms of key influences and also

there are templates of those weekly purchases.

1.0 Introduction Currently, the penchants of buyers are changing more normally as it was decades back. What

was "in" yesterday is "out" now. Having the ability to distinguish and understand the subliminal

triggers that are liable for specific customer exercises and reactions is a key part of associations

when making suitable effects.

There are various variables that affect human behavior. The decision making method is affected

by social and social parts, for example through the solitary's family and friends. In our youth,

what we took in and how we watched all around this time, has an unmistakable impact on our

decision. What's more, it is affected by the staff angles (e.g. Age, lifestyle) and mental parts (e.g.

Enthusiasm, feelings and demeanor).

Purchaser behavior implies the philosophy of picking up and dealing with information to a

purchaser's decision and by using and surveying things and organizations. The Internet is more

the key which the customer can use to get information as expressed by his state of the psyche. A

main issue for viable fighting in today's business world for an association is the understanding of

buyer behavior. (Shodhganga, 2012)

To take sufficient developments in the region of promoting, one must perceive how people

observe, for example publicizing, how they evaluate how to eat up, how they settle on decisions

and how character impacts those decisions.

One should moreover analyze what sparks affect the individuals' decisions, how aura are

surrounded and how gatherings impact the client behavior.

The dismembers of these phenomena require the consideration of diverse systems, inside

and outside of the single individual.

Hence, to appreciate the obtaining direct one need to examine

Structuring and changing of Consumer Attitudes and Behavior the complex association

of an incredible arrangement of segments, present at assorted stages, from arousal to

decide, and additionally from purchase to post-purchase experiences.

1.1 Purpose

The purpose of this report is to better grasp, recognize and feel for customer needs by

experiencing it themselves. This may then probably help making us an all the more

effective promoter later on.

1.2 Objective and expansion

In no time we need to portray the objectives of the report.

So these are objectives:

Understand the importance, scope and monetary speculation of customer dismemberment

through reflection to oneself.

Critically break down the decision making-handle as a characteristic of customer

behavior speculation through assessment to oneself of.

Internal and outside wellsprings of effect

Levels and level of consideration

Levels and level of spark

In their purchase behavior to better appreciate that of others.

2.0 Internal and External variables There is an incredible arrangement of segments that control the purchaser behavior process. The

greater part of these are positively troublesome to effect for a publicist. Hence, they have to

center extensively more of the components they can affect. The most vital variable one can use

to effect is wisdom. The shocks that information gives are therefore the component that begins

the process that prompts the client's decision. This makes it uncommonly discriminating to figure

the message in the information in the best possible way. There are various essential issues that

affect a purchaser's buying behavior. In the sections underneath the model of Kotler should be

depicted. Various these segments can use to partition the business area.

2.1 CULTURAL FACTORS

The broadest and deepest effect on client behavior is social variables. The parts played by social

order, subculture and social class are of unprecedented hugeness.

2.1.1 Culture

The most pivotal determinant of individuals' assemblies' needs and behavior is social order.

While growing up one increases values, insight, slant and practices by looking, listening and

picking up from family, school, sidekicks and so on.

2.1.2 Subcultures

Subcultures are more small degrees of social orders that give a more specific, recognizing

confirmation and socialization for its parts. Instances of subcultures are:

Nationalities,

Religions,

Racial, social events and Geographic ranges

The subculture Ids sway sustenance slant, preoccupation, calling objectives and that have been

just the tip of the ice shelf.

2.1.3 Social Class

All human social requests have some level of social stratification. The most well-known is social

class.

"Social classes are by and large homogeneous and holding on divisions in a social request, which

are continually asked for and whose parts offer tantamount values, venture, and behavior." Social

class reflects pay, occupation, preparing and domain of residence. Distinctive qualities may be a

difference in the way people dress, talk outlines, recreational slant and that is just the tip of the

ice sheet.

A cluster of traits shows a singular social class. Social classes show unique thing and brand slant

in various areas.14 Examples of this are home equipping, attire, and automobiles. Media slant

furthermore change. Advantaged favors magazines and books, despite the fact that more level

class likes TV. (Asendroph, 2010)

2.2 SOCIAL FACTORS

Despite social variables reference packs, family, parts and statues sway purchaser behavior.

2.2.1 Reference Groups

Different get-togethers effect buyer's behavior. Amasses that control effect practices and mindset

are called investment packs. Fundamental congregations are family, friends, teammates and

whatnot. In the Secondary social affairs are people with a more formal correspondence. The

social occasion joins affiliations like trade unions, religious accumulations and master

affiliations. Social event weight sways manner and lead much. (Bergman, 2000)

2.2.2 Family

A singular's family is the uttermost enticing reference pack. One can separate the family into two

get-togethers. The gathering of presentation plans with the effect that people have had on their

family all around the adolescence. Exactly when examining the assembly of increase one means

the effect people who live together have on each one in turn.

Life partner and wife affect the buying of unique things in assorted ways.

Husband Dominant: Automobile, TV and assurance.

Wife Dominant: Furniture, kitchenware, and blanket.

Equal: Vacation and outside summon. (Lawan, 2011)

2.2.3 Roles and Statuses

Part and status describe a singular position in every one gathering. Parts – practices that an

unique is depended upon to perform. Each part passes on a status. A couple of things are

recognized to be status pictures, in the same route as Rolls Royce. (Penner, 2008)

2.3 PERSONAL FACTORS

The decision to buy is moreover influenced by specific traits, for instance, age, arranges in the

life cycle, occupation, fiscal circumstances, lifestyle, character and self-concept.15

2.3.1Age and Stages in the Life Cycle

The taste in clothing, furniture, stimulation and the need for different sorts of sustenance,

organizations is age related. The usage is moreover shaped by the family life cycle. The family's

money related situation and then financing have an influence on the obtaining behavior. Mental

life blazes stages – changes through life, for instance, marriage and divorce. (Walker, 2009)

2.3.2 Occupation

Occupation affects a singular use plan. Heads buy suits. Carpenters buy working attire. In this

manner promoters endeavor to run across the expression related social events who have above

typical excitement to their thing. (Waddell, 2009,)

2.3.3 Lifestyle

For sure people beginning from the same subcultures, social class and occupation can incite

unique lifestyles.

"A singular's lifestyle is the singular's case of living on the planet as conveyed in the unique's

activities, diversions and decisions." (Independence Blue Cross, 2010)

2.3.4 Personality and Self-Thought

Every unique has a one of a kind character that affects his/her buying behavior. Character

properties are:

Self-conviction,

Dominance,

Autonomy,

Sociability,

Defensiveness and

Adaptability.

Personality is a helpful variable when breaking down buyer behavior. Thought to oneself (Self-

picture) is related to character. This customarily differentiates from the certified thought to

oneself (How one viewpoint oneself.) and also other individuals thought to oneself (How one

assumes others see oneself). (Terraciano, 2009)

2.4 PSYCHOLOGICAL FACTORS

Four principle contemplations affect the acquiring choice - motivation, distinguishment, taking

in and feelings and mindset.

2.4.1 Motivation

Individuals have quite a few people needs at any given time. Physiological needs (Maslow's

Theory of

Persuasion) like sustenance and safe house is animated by survival.22 Social and respect needs

like the feeling of having a spot and recognition is not excellent enough to rouse a singular

rapidly. It transforms into an expectation when the need is blended to a sufficient level of force.

2.4.1 Perception

Right when a unique is convinced he/she is prepared to act. How one exhibition is influenced by

one’s wisdom of the circumstances.

"Distinguishment is the approach by which a remarkable pick, masterminds and interprets

information inputs to make a bona fide picture of the world."

Physical supports and moreover jars are in the including field and conditions inside the novel

effects also the acumen. (Tieger, 2011)

3.0 Maslow's Theory of Motivation - Hierarchy of Needs Abraham Maslow created the Hierarchy of Needs model in 1940-50s USA, and the Hierarchy of

Needs hypothesis remains substantial today for comprehension human inspiration, administration

preparing, and self-awareness. In fact, Maslow's plans encompassing the Hierarchy of Needs

concerning the obligation of managements to give a work environment that sways and empowers

workers to satisfy their own particular special potential (acknowledgment toward oneself) are

today more important than at any time in the past. Abraham Maslow's book Motivation and

Personality, distributed in 1954 (second release 1970) presented the Hierarchy of Needs, and

Maslow developed his thoughts in other work, prominently his later book Toward A Psychology

Of Being, a huge and important editorial, which has been amended lately by Richard Lowry,

who is in his own particular right a heading scholar in the field of motivational brain research.

Abraham Maslow was conceived in New York in 1908 and passed on in 1970, despite the fact

that different productions show up in Maslow's name in later years. Maslow's Phd in brain

science in 1934 at the University of Wisconsin structured the premise of his motivational

exploration, at first concentrating on rhesus monkeys. Maslow later moved to New York's

Brooklyn College. (Journal of Experimental Psychology, 2012)

Behind everything thing we do is a need that needs to be fulfilled. We have intuitions that keep

us alive and proceed our species. But there are different needs that go past our body's impulses.

Maslow's Hierarchy of Needs begins at the fundamental physiological needs, we require simply

to stay alive. Once these are made we have a need for security, then we need adoration and

friendship. Within our gathering we need to have self regard. At least we have a need of

fulfilling our true ability that Maslow calls Self Actualization. The five needs in Maslow's

Hierarchy incorporate: (Journal of Social , 2011)

I. Self Actualization -Fulfillment Needs (true ability) This is the extraordinary level where

individuals have need of reason, self-awareness and acknowledgment of their

probabilities. People on this level are completely useful, acting absolutely on their own

volition and have a solid identity.

II. Ego -Self Esteem Needs (self confidence, particular worth, self-rule) On this level,

individuals act from their personal needs. They esteem the choices of others, with a

specific end goal to put stock in themselves. It is a matter of confidence through

admiration from others.

III. Social - Love and Belongingness Needs (love, kinship, comradeship) At this level,

individuals need to feel adored. Here cherishing one's self has not been completely ran

across. Some families are hard bound. If this need is extremely solid, there could be a

race to satisfy this need bringing about short of what perfect accomplice choice.

IV. Security - Safety Needs (security; insurance from mischief) Here we may incorporate

living in a safe territory far from dangers. This level is less averse to be found in

youngsters as they have a more amazing need to feel safe. The individuals who stress

over little things, for example, drinking out of plastic glasses have solid security needs.

V. Body -Physiological Needs (air, sustenance, rest, incitement, movement) People at this

level have a tendency to be broken down or in crisis sort circumstances. They have

natural needs for physical harmony (homeostasis). People with absence of asylum,

garments, sustenance concentrate on these needs. People regularly disregard some of

these fundamental needs in ordinary life when they consume garbage sustenance, go

without slumber, don't work out, or don't reproduce their psyches.

4.0 Conclusion In our life every day we make a purchase for the different products, services. This certainly adds

lots of beauty to the our own world and life. Through this assignment, report a lot of findings

were found for myself. It should be mentioned here that before, I never think about my purchases

such as how much is my weekly purchase and what are the main factors are influencing me,

influenced me to make the purchase . During analyzing the my purchases I found that external

factors like advertisements, my family, friends are the most significant factors. High involvement

of my needs are the Psychological and Esteem needs, like food and clothes. Out of twenty

weekly purchases, there are only seven of them that I made by internal influences. The most

important point I found for myself is my consumer behavior is easily influenced by marketer or

any media advertisement or even simple recommendation.

5.0 Appendix: Works on Templates

Date: 03.04.2014

Item: iPhone 4S

Price: RM 900

Purchased from: “Digital One “ shop Subang Parade

Spent time for making the decision: It took more than two weeks for me

to make a decision.

Effort put into the decision making

process:

High involvement

Other goods that in

consideration/available:

iPhone 5 and Lenovo K900

Ideaphone

Influences which led me to make it a

choice :

The main significant factor that I

have been influenced and led me to

buy the iphone 4S is

recommendations of my friends (

external influences ). My experienced

friendtold me: its faster and more

comfortable than android phones

and the phone is at the cheap price.

Maslow’s hierarchy of Needs

Esteem: I am very confident with the

phone because my friends have

experienced it and Apple brand users

get others attention easily.

Date: 05.04.2014

Item: Screen Guard “Tank”

Price: RM80

Purchased from: “Nexxone” shop Subang Parade

Spent time for making the

decision:

Two days


process

Middle involvement

Other products that were in

consideration/available

There were other screen protectors

from Nexxone brand such as: Matte,

Clear, Privacy.

Factors that influenced me to

make it a choice:

The factor that led me to buy it was

advertised on TV at the shop

(external influences) and I

experienced by hitting with scissor

but nothing happen it and I really

wanted to buy that awesome

product ( internal influences).

Maslow’s hierarchy of Needs:

Safety needs: I wanted to be my

phone safe even drop or

scratching by other things.

Date: 07.03.2014

Item: Groceries

Price: RM34

Purchased from: First Subang, Giant Mall

Spent time to make a decision: 2hours

Effort put into the decision

making process

Low involvement


consideration & available

The Giant Shopping Mall is the

nearest my home and I made a

shopping after Class

Factors which influenced me to

make it a choice:

It’s been long I have not eaten

our national foods and I wanted

to cook pilaf. (Internal

influences)


Physiological needs: Food is the

one of the significant basic

need for the existence of

people. It is impossible to surv ive

without it.

Date: 08.03.2014

Item: Casual Shoes

Price: RM99

Purchased from: Online Shopping, “ Zalora”

Time spent on making the

decision:

1week


making process:

High involvement

Other products that were

considered/available:

I used to buy my shoes online

and Zalora is the most

convenient one for me.


make it a choice:

When I found that shoe, it was

which I was looking for and I

wanted to buy it without any

doubt.


Physiological needs: Our clothes,

Shoes everything we wear and

how we wear the mirror of

ourselves and we need them.

Date: 09.04.2014

Item: Umbrella

Price: RM15

Purchased from: “Mydin” shopping mall

Spent time for making the

decision:

Two days


making process

Middle involvement


consideration/available

This was the only choice.

Factors that influenced me to

make it a choice:

Currently in Malaysia raining season

and everyday is becoming rainy I

really need an umbrella (external

influence)


Safety needs: Umbrella, people use

it to secure and safe their body

from rain

Date: 07.03.2014

Item: Powerbank “Mili”

Price: RM139

Purchased from: “Nexxone” shop Subang Parade


decision:

3hours


making process:

High involvement



There was Moigus brand of

powerbank but Mili was cheaper

than it.


make it a choice:

The reason that influenced me to

buy the powerbank is: iPhone’s

baterylife is not very good

especially if it is second hand

that’s why I bought the

powerbank together with

Screenguard from same shop


Safety: I wanted to be my phone

with extra battery and I don’t

want to have any problem if

suddenly it will be out of battery

Dat e: 08.03.2014

It em: Charger Dell

Price: RM220

Purchased from: “More-IT “ shop Subang Parade

Time spent on making t he decision: 1 month

Effort put int o t he decision making

process:

High involvement

Ot her product s t hat were


My lap-top brand is Dell and there

is no other suit charger from other

brands

Fact ors which influenced me t o make it

a choice:

The factor that influenced me to

buy the charger is my charger

spoiled and I couldn’t use

anymore (external influences)


Safety

Esteem: now I am very confident

with myself reason why is I can do

my assignments for me and I am

able to use my lap-top anytime.

Date: 08.03.2014

Item: T-shirt POLO

Price: RM79

Purchased from: Parkson, Subang Parade


decision:

2 days


making process:

High involvement



I bought it to wear together with

my new shoe that I bought from

Zalora, and there was not any

other choice


make it a choice:

As I mentioned above, my

purpose to buy it was to wear

together with my new shoes(

internal influence)






Date: 09.03.2014

Item: Socks

Price: RM25

Purchased from: F.O.S Empire shopping mall


decision:

1 day


making process:

High involvement



There was not any other product


make it a choice:

I liked the design and color of

socks once I saw them and I just

bought internal influences)



socks everything we wear and



Date: 09.03.2014

Item: Coffee, Long Black

Price: RM14

Purchased from: “Jibby&Co” restaurant


decision:

10minuts


making process:

Middle involvement



I like the Cappucino and Long

Black but that time I just buy Long

Black


make it a choice:

After shopping at an Empire

shopping Gallery that day we

just wanted to have a lunch at

the new Restaurant called

Jibby&Co with my friend.

(external&internal influences)


Physiological needs: we need a

food to be exist, it is important for

people for their existence and to

surv ive

Date: 09.03.2014

Item: BBQ Beef Ribs

Price: RM35

Purchased from: “Jibby&Co”


decision:

10 minuts


making process:

High involvement



In the menu there were Pastas

and Pizza but usually I don’t

much it them


make it a choice:

The factor that led me to have it

for my lunch is when I asked the

waiter,what is their sign, he said

that meal and I ordered it.


Physiological needs: as I

mentioned above food is our

basic need for our existence

Date: 09.03.2014

Item: Dessert, cake, Vogue

Price: RM16.50

Purchased from: Jibby&Co


decision:

15 minutes


making process:

Low involvement



There was not any other desserts

available


make it a choice:

When I found that shoe, it was

which I was looking for and I

wanted to buy it without any

doubt.






Date: 10.03.2014

Item: Hair Cut

Price: RM9

Purchased from: Maximum, SS15


decision:

Two days


making process:

Low involvement



There are other salons in Subang

Parade, or Empire, but this is the

one I used to come every time


make it a choice:

Since I come to Malaysia, usually

I am the client of this salon, until

today I have not been

dissatisfied with the

performance of every staff of

them.


I am very satisfied with the basic

services (needs) offered comfort,

location, affordable, near and

very cheap pricing. Everytime

after hair cut saw my new style

make my Self-esteem too good.

Dat e: 10.03.2014

It em: Hundred plus

Price: RM2.90

Purchased from: 99Market, SS17

Time spent on making t he decision: 10 minutes

Effort put int o t he decision making

process:

High involvement

Ot her product s t hat were


There are other drinks like Pepsi, Coca-

Cola or Iced Lemon tea ,but when I’m

very thirsty they can come over my

thirsty feeling

Fact ors which influenced me t o make it

a choice:

The reason why I used to buy the drinks

from the 99Market is it ’s much

cheaper than other shops and the

reason why I bought Hundred Plus is

this is the best drink, which you

overcome your thirsty feeling once

drink and if t is drunk before bed you

will have a good sleep


Physiological needs: as I mentioned

above food is our basic need for our

existence

Date: 10.03.2014

Item: Key

Price: RM9

Purchased from: Fast Feed


decision:

One day


process:

High involvement



There is also one shop at Big AEON

makes key, but last time also I went to

Fast Feed and I satisfied from their

serv ice


make it a choice:

The reason why I went to Fast Feed

that I experienced with them, usually I

go there, since 2012 I used to use their

serv ice( internal influence)


I was satisfied with the basic services (

needs) offered which were in comfort

location, affordable, competitive

pricing. I have been confident about

my flat, safety, after hav ing a new

key.

Date: 11.03.2014

Item: Nasi Goreng Malayu

Price: RM7.50

Purchased from: Pelita, Indian Muslim Restaurant


decision:

5 minutes


process:

High involvement



In the same area with Pelita there

are other restaurants which I

have not known, this is only the

one I used to v isit


make it a choice:

Everytime I used to have a lunch

at Pelita, which is a convenient

location, and nearer to the

college


I very satisfied with the taste,

performance of the food, basic

service (need).

Date: 09.03.2014

Item: BBQ Beef Ribs

Price: RM35

Purchased from: “Jibby&Co”


decision:

10 minuts


process:

High involvement



In the menu there were Pastas

and Pizza but usually I don’t

much it them


make it a choice:

The factor that led me to have it

for my lunch is when I asked the

waiter, what is their sign, he said

that meal and I ordered it.


Physiological needs: as I

mentioned above food is our

basic need for our existence

Date: 10.03.2014

Item: Watermelon Juice

Price: RM3.70

Purchased from: Pelita, Indian Muslim Restaurant


decision:

Immediately


process:

High involvement



I may choose other fresh juices at

that time but my favorite is

Watermelon and I immediately I

ordered it.


make it a choice:

Watermelon is my favorite, if I

have a eaten outside I have

watermelon everytime.


I satisfied the freshness of the

juices, basic service ( need)

Date: 12.03.2014

Item: Returning Ticket To Uzbekistan

Price: $650

Purchased from: Uzbekistan Airways


decision:

It took 1 month for me


making process:

High involvement



This is the only choice


make it a choice:

The factor that led me buy the

ticket, my family and friends

wanted me to v isit

them.(external influences)


I wante to see my family after

one year, love and belongings.

Till today I only flew in this airlane

I satisfied about serv ice, safety

and security.

Date: 13.03.2014

Item: Pizza

Price: RM55

Purchased from: Online, Pizza-hut


decision:

20 minutes


process:

High involvement



I am the regular customer of Pizza

hut,I have never tried other pizzas


make it a choice:

The factor led me to purchase for

the pizza ht pizza that I am the

regular customer f pizza hut, I love

its pizzas, it’s really the best for me

( internal influences)


Physiological needs: Food is the

most important basic need for

human being. We can`t surv ive

without it.

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Asendroph, 2010. Head-to-head comparison of the predictive validity of. European Journal of

Personality, 3(11), p. 327–346.

Bergman, C., 2000. Purchasing Behaviour. 2nd ed. Sydney: Prentice Hall.

Independence Blue Cross, 2010. Lifestyle, Philadelphia: 1901 Market Street .

Journal of Experimental Psychology, 2012. Maslow, Abraham "The Influence of Familiarization

on Preferences". Experimental Psychology, 21(11), pp. 162-180.

Journal of Social , 2011. Maslow, Abraham "The Comparative Approach to Social Behavior".

Social , 15(12), pp. 404-429.

Lawan, L. A., 2011. Evaluation of Socio-Cultural Factors Influencing Consumer Buying.

International Journal of Basics and Applied Sciences, 5(12), pp. 12-18.

Penner, B., 2008. Psychology. 8th ed. Boston: Houghton Mifflin Company.

Shodhganga, 2012. CONSUMER BEHAVIOUR. [Online]

Available at: http://shodhganga.inflibnet.ac.in/bitstream/10603/9162/7/07_chapter%202.pdf

[Accessed 13 April 2014].

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Tieger, D., 2011. The Art of SpeedReading People. Personality and Individual Differences,,

5(13), p. pp. 66 .

Waddell, R., 2009,. “Miley Strikes Back". Billboard, 3(11), p. 7–8..

Walker, J., 2009. Marketing to Opinion Leaders. Small Business Trends,, 4(13), pp. 6-9.