ABE Level 5 Diploma in

Business Management
and Marketing

Buyer and Consumer

Behaviour

2017 Place image here

ABE Level 5 Diploma in Business Management and
Marketing – Buyer and Consumer Behaviour

Element 1 – Internal and external factors affecting consumer   purchase

behaviour

Learning outcome 1 – Analyse the major influences on consumer choice  

This presentation is provided by ABE for tutors to use to facilitate classroom learning, in
conjunction with the session plans and activities supplied. Please involve your students
actively in your sessions, using the ideas provided here - plus some of your own.

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INTERNAL AND EXTERNAL FACTORS AFFECTING
CONSUMER PURCHASE BEHAVIOUR

Learning Outcome:

1. Analyse the major influences on consumer choice (weighting 25%)

1.1 Analyse the personal characteristics of the consumer as an individual

1.2 Analyse the concept of motivation and its role in customer decision-making
1.3 Discuss the external forces that influence customer buying behaviour
1.4 Explain aspects of contemporary customer behaviour

 
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So what is buyer and consumer behaviour?
It’s the way we respond to brand marketing, made up of…..

How we think and feel about a brand

Our purchase decision process

Who we are; where we live

The influence of others

The influence of our environment

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Analyse the personal
characteristics of the consumer as
an individual

1.1
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 What we mean by internal and external influences on
consumer behaviour

INTERNAL INFLUENCES EXTERNAL INFLUENCES

Personal Psychological Cultural Social

Influences Influences Influences Influences

• Personality • Motivation • Culture • Family

• • Self- • Sub-culture • Peer groups
Chrematistic perception • Individual • Reference
s • Beliefs culture groups
• Lifestyle • Attitudes • Social class • Opinion
• Life stage leaders

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 “Consumer behaviour can be
thought of as the actions,
Peter Ling,
reactions, and consequences
Deputy Dean,
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that take place as the

RMIT University
consumer goes through a
decision-making process,
reaches a decision, and then
puts the product to use”
.

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 Dimensions of personality
Fiske’s 5-factor model

1 2 3
Neuroticism Agreeableness Openness

4 5
Extraversion Conscientiousness

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 How personality traits influence human behaviour

Ambitiousness Introversion
Self-confidence
Individualism Bravery
Authoritarianism
Extroversion Compulsiveness

Aggressiveness
Competitiveness
Friendliness
Adaptability
Conscientiousness
Dogmatism Hedonism

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Who you think you are is what counts

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Your self-
perception Self- Decisions and
influences Self- Decisions and
perception behaviour
perception behaviour
the decisions
you make

Outcomes
Outcomes
and
and
responses
responses

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 Emotional verses rational purchase behaviour

EMOTIONAL CRITERIA
RATIONAL CRITERIA
• Appearance
• Economic
• Brand
• Functionality
• Esteem
• Performance
• Feelings
• Features
• Ego
• Reliability
• Expectations
• Quality
• Attitudes
• Level of risk
• Opinions
• Status

(Source: https://pixabay.com/en/passenger-car-automotive-car-150155/)

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 Learned behaviours are a major influence on our
decisions

Repetition Conditioning
(Or operant (Or classic
conditioning): conditioning)
Brands Brands try to create
encourage a positive consumer
consumers to attitude through
repeat their association.
purchase
behaviours by
with rewards

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 Analyse the concept of motivation and
its role in customer decision-making

1.2
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 Maslow’s Hierarchy of Needs
Motivation:
Why we can’t learn effectively
when we’re hungry

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An alternative approach:
Demotivation could simply be
dissatisfaction

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 The need for achievement

Or are there only needs

that drive our The need to avoid failure
behaviours?
(McClelland's 4 needs theory)
The need for power

The need for affiliation

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When motivations collide:

Three principle conflicts

in making a choice

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Discuss the external forces that
influence customer buying behaviour

1.3
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 Society and
Religion, social culture influence:
Social norms, class, ethnic
values and typologies; The essence of us
behaviours regional
Social rules and variations
laws

Gender, age
education, life
experience.

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 Consumers
need spending
power to keep
the economy
going round

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 Not all consumers are the same
Some broad characteristics of consumer behaviour in developing countries:

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And we’re all influenced by others
The power of peer groups, family members, colleagues and opinion leaders to shape
buying behaviour

GROUPS Friends; team mates; colleagues; reference groups

GROUPS Friends; team mates; colleagues; reference groups

FAMILY Immediate family; extended family; family roles

FAMILY Immediate family; extended family; family roles

OPINION
OPINION Public figures; social media; celebrities; teachers
LEADERS Public figures; social media; celebrities; teachers
LEADERS

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Explain aspects of contemporary
customer behaviour

1.4
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 Aspects of contemporary customer behaviour
Some major changes that marketers monitor and measure

• Collaborative consumption
• Artificial intelligence
Sharing, swapping and bartering
products and services Bots; learning machines and AI
delivering personalised services
• Home manufacturing
3D printing enabling consumers to ‘make’
their own products; spare parts.
• New retail models

• The end of the high street bank No boundaries between online;

offline and e-commerce
Decreasing demand for a personal
banking service

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The implication for marketers of trends and changes
The big 3 impacts

The On-Demand Expectations of

Consumers

The Activist Economy

The Complete Fragmentation of Media

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 Contact
ABE’s offices are located in
New Malden,
Greater London, UK.

5th Floor, CI Tower, St. Georges Square,

New Malden, Surrey, KT3 4TE, UK

Tel. +44 (0)20 8329 2930

Fax. +44 (0)20 8329 2945

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