This document discusses the various factors that influence consumer choice. It identifies personal factors like needs, wants, likes/dislikes, and economic factors like income and affordability. Social factors such as family, friends, trends also shape consumer decisions. Environmental concerns and psychological elements such as planned buying vs impulse also impact what consumers choose to purchase. The document provides examples for each type of influencing factor and asserts that while consumers have some freedom in their choices, there are many internal and external elements that affect how people spend their money.

1. Factors Which
Influence
Consumer
Choice
Submitted by
Jithin Mathew
S2 MBA

2. Who is a Consumer?
• A consumer is someone who buys goods,
such as food, clothes, mobile phones,
books, magazines, appliances, from a
shop or other source.
• A consumer is also someone who buys a
service, usually from a specialist, such
as an electrician, technician,
hairdresser, beautician, bus driver, or
travel agent.
• A consumer buys goods or services for
his or her personal use.

3. What is Consumer Choice?
• Consumer choice is the way people
choose to spend their money.
• This is influenced by many factors.
• While people have some freedom of
choice, there are many factors which
may affect their choice.

4. What influences Consumer Choice?
Environ-
mental
factors
Psychological
factors
Economic
factors
Social
factors
Personal
factors
Factors
Influencing
Consumer
Choice

5. Personal Factors
• Needs - essential items:
e.g. food, clothes, etc
• Wants - something one
can live without:
e.g. another
pair of shoes, a TV in
the bedroom
• Likes/dislikes - personal
taste or preferences
• Time available - time to
shop around, time to do
household chores and/or
cook, time to travel

6. • Values - what is personally
important in life
• Emotions/mood - how one feels
• Knowledge – the background
information one has about the
product or service
• Hobbies – specialist equipment for
hobbies
Personal Factors

7. Social Factors
• Family – likes and
dislikes may be passed
on to children
• Friends - likes and
dislikes may be passed
on; wanting to have the
same
• Other people –
recommendations that
help to make decisions
• Trends – things which
are fashionable

8. • Entertainment options –
CD’s, DVD’s, parties, family
outings, cinema, sports,
holidays
• Gender – norms for
products and services; what
is considered
feminine/masculine
• Age – different age groups
have different interests,
therefore different wants
Social Factors

9. Economic Factors
• General personal/family
income
• What one can afford at the
time of purchase
• Credit cards available
• Value for money
• Special offers
• Reduced price (sales)
• Hire purchase options – buy
now pay later
• Free credit options –
e.g. No interest paid in first
12 months

10. Environmental Factors
• Buying products which
can be reused –
e.g. washable lunch
boxes rather than a
plastic bag
• Energy efficient
products –
e.g. light bulbs,
appliances
• Water-saving products -
e.g. certain dishwashers
and automatic washing
machines

11. • CFC-free products – e.g. buying
appliances and aerosols (sprays)
which are ozone-friendly
• Recyclable packaging
• Biodegradable packaging
• Items not tested on animals –
e.g. personal care products
• Lifestyle – making consumption
choices to promote sustainable
development
Environmental Factors

12. Psychological Factors
• Planned buying –
buying goods and
services when all options
have been considered;
often to fulfil a need,
but could also be a want
• Impulse buying –
buying something on the
spur of the moment,
without consideration of
need or options available

13. • To bribe, encourage or reward
someone
• Emotions – buying an item to
make oneself feel good
• Celebrations – extra money
spent on special occasions;
treats
• Advertisements – Use different
strategies to motivate
consumers to buy
Psychological Factors

14. THANK YOU