Topic 2.2 · Consumer Behavior
Consumer Behavior
Why and how consumers buy, what shapes purchasing patterns, and Cialdini's principles of influence.
25 min read Reviewed
Learning objectives
- 2.2.AExplain why and how consumers make buying decisions.
- 2.2.BDescribe the impact of legal and technological factors on consumer purchasing patterns.
- 2.2.CEvaluate sales tactics that draw upon Cialdini’s principles of influence, and develop a sales tactic.
Objective statements © College Board, quoted from the Course and Exam Description.
Consumers buy goods and services to meet needs and wants. When several rival products meet the same need, choices are swayed by price, differentiated features, availability and advertising.
Rational vs. habitual buying
| Rational process | Habitual / routine | |
|---|---|---|
| When | Consequential purchases (a car, a home, a college) | Small, frequent purchases (snacks, coffee) |
| How | Systematically compare alternatives | Little or no deliberation |
| Trade-off | Better fit, but costs time to gather information | Fast, but may miss better options |
Four groups of factors that shape buying decisions
| Factor group | Examples | How it works |
|---|---|---|
| Personal | Age, sex, education, income, budget, occupation, lifestyle | Shapes what you need, want and can afford |
| Psychological |
Key terms
- Rational decision process
- Systematically evaluating alternatives before an important purchase. It finds a better fit but costs time.
- Habitual purchase
- A routine buying decision made with little deliberation, like a daily coffee.
- Purchasing pattern
- A consumer's typical routine for purchases: timing, frequency and quantity.
- Substitute product
- A different product that meets the same need, often adopted when the usual product becomes harder to get.
- Scarcity principle
- People want items more when they seem rare (e.g., “limited-time offer”).
- Authority principle
- People tend to follow experts and authority figures (e.g., a dentist endorsing toothpaste).
- Consensus principle
- People follow what others in their group do (e.g., showcasing positive reviews). Also called social proof.
- Reciprocity principle
- People feel obligated to give back after receiving something (e.g., free samples).
- Liking principle
- People are influenced by those they like or relate to (e.g., relatable people in ads).
- Consistency principle
- People repeat behavior that matches their self-image (e.g., “for health-conscious shoppers”).
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