Factors Influencing Customer Choice

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Factors influencing consumer choice

Psychological Factors


Motivation is the force that drives us to satisfy a need.

Maslow’s theory of motivation:-

  • There is a hierarchy of needs
  • Some needs are more basic than others
  • The more basic needs must be satisfied first
  • As one level of needs is satisfied, a person moves on to the next level

The different levels of needs are:-

  • Physiological
  • Safety
  • Belonging
  • Esteem
  • Self-actualisation


Perception to our outlook and awareness of the world and what is going on around us. The problem for marketers is that different people will perceive the same thing differently.

Perception has many marketing implications, because marketers have to be careful not to go against the perceptions of their target market.


Lifestyle is used to group people to their activities and by their opinions of themselves and the world.

Personality and self-concept

Personality is the most complicated aspect of human beings. Personalities can be useful in analysing consumer behaviour for certain products. Our self concept is how we see ourselves, how we think other see us, how we would like to be seen, how we appear to others. The basic idea is that the things people buy reflect how they see themselves.


Consumers learn from their experiences in the marketplace, and these experiences will have an effect on their buying decisions. Businesses can increase demand for a product by associating it with strong drives.


Attitudes are what we believe about something, what we feel about something and how respond to something. A consumer’s attitude towards a product is highly likely to influence their behaviour towards it.

Socio-Cultural Factors

Socio-cultural factors have a great influence on buyer’s behaviour.


Culture is probably the most significant influence on consumer’s behaviour. Culture can be defined as a society’s values, beliefs, customs and patterns of behaviour.


A subculture is a subset of people with shared values and beliefs within a culture

Socioeconomic status

Is a division of society based on factors such as income, occupation and education.

  • Upper socioeconomic
  • Middle socioeconomic
  • Lower socioeconomic

The family is probably the biggest influence on buying behaviour. Marketers also need to focus product design and promotion of both males and females. When planning a marketing strategy, the marketing manager should know which member is the main decision-maker for the product so that promotion can directed at that person.

Reference groups

Reference groups are those groups with which a person identifies. Reference groups influence our behaviour because we want to fit in with the values and attitudes of the group.

Economic Factors

  • A person’s economic situation will influence the sorts of products they will buy. Economic situation is determined by a number of factors such as level of income, savings and ability to borrow. The more a person earns the greater their ability to buy goods and services.
  • Disposable income is the money left after taxes have been paid
  • Discretionary income is anything left of disposable income after spending on necessities such as good, clothing and shelter.
  • The ability to borrow is influenced by general interest rates

Government Factors

  • Decisions made by the government at all levels will have an effect on the buyer’s behaviour. Government policies also influence the level of economic activity which affects consumer’s confidence and ability to borrow.
  • Government legislation also regulates the sorts of goods and services that available.

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