Fact: how customers interpret marketing messages is heavily dependent on consumer buying behavior. True, personal preferences play a massive role in whether customers like your content or not, but consumer decisions likely fall into 5 main categories. There are 5 major factors influencing consumer behavior, and we’ll get into those here to help you see what makes your customers tick.
But what exactly does this mean? Every friend group has that one person who’d stand vehemently by designer, expensive, or bespoke products and services. Everything they have is perfectly tailored, in many more ways than one: a home that’s been designed to perfection, handbags from upscale boutiques all over the globe, tailored suits and dresses. Then you have, often in the same friend group, the person that buys thrift or fast fashion by principle, who takes pride in saving a buck, preferring to scrimp and save than invest in expensive things. Two different personality traits, and chances are, these two people get along like a house on fire.
That’s consumer behavior for you. There are 5 major factors influencing consumer buying: psychological, social, cultural, personal, and economic. When you understand the factors that sway consumer decisions, you’ll realize that you:
- Enhance the customer experience – since you can tailor your interactions, products, and services better to meet the needs and preferences of your target market;
- Develop products that effectively meet the evolving needs of your customers;
- Craft marketing messages that resonate better with your consumers;
- Manage customer relationships more adeptly;
- Drive sustainable growth;
- And, of course, expand internationally with better success, as you understand the behavioral nuances of consumers in different regions.
Yes, that’s why localization is absolutely crucial in understanding the consumer buying process.
Shall we? Let’s dive in.
Interested in buyer behavior? Check out this blog on Gen X vs. millennials – the target market with considerable disposable income.
1. Psychological Factors That Drive Consumer Behavior
According to Clootrack, there are 4 psychological factors that shape purchase decisions:
Motivation:
In other words, the reasons why someone is behaving in a particular way. Psychologists have debated on human motivation for quite some time now. Understanding what motivates your customers can help you understand what pushes them to buy. Let’s take the great psychologists – in a nutshell – to explain a bit of what this means.
Freud suggested that the psyche is composed of three parts: the id, or the primal part of our consciousness that operates on the pleasure principle; the ego, the rational part of our consciousness that operates on the reality principle; and the superego, a moral part of our consciousness that operates on societal values and norms, and acts as our conscience. How would you put this into practice? Grab your customer’s id through infographics that appeal to the pleasure principle through emotive storytelling. Appeal to the ego through detailed product descriptions, comparative features, and ratings that will help customers make informed decisions. Target the superego by marketing your social responsibility in marketing.
If we veer away from psychoanalysis, we have B.F. Skinner, the father of behavioral psychology, whose theory of operant conditioning believed that people are motivated by positive reinforcement (such as giving a gift for every purchase), negative reinforcement (by removing a negative stimulus after a behavior is performed, leading to the higher likelihood that that behavior will repeat – such as giving a discount or a coupon code to allay any pricing objections), and punishment (presenting an undesirable stimulus after a behavior to diminish the likelihood of that behavior repeating – we probably wouldn’t want to do that to our customers).
You get the idea.
Perception:
Another factor that has a large impact on consumer behavior is perception, or how people select, organize, and interpret stimuli to form a picture of the world around them. In other words, perception is all about how customers evaluate your products and services. Let’s face it, there’s a lot of noise out there, with more than 350 million products being sold on Amazon – not to mention ads, social media, and the input of friends and family.
The key is to rise above the noise. Follow the eCommerce SEO best practices to get found, and get your products bought.
Learning and Experience:
Remember we talked about operant conditioning up there? That’s one way people learn and acquire new knowledge. If I buy this product, I get a prize, so I’ll buy it again and again.
The other way that people learn is through classical conditioning, pioneered by Ivan Pavlov (yes, that Pavlov of the famous dogs experiment). The idea is to associate your product with a particular stimulus. You know how some sellers reinforce the “gifting” aspect of their products? This is actually a subtle form of classical conditioning. Although Amazon is picky about gift-receivers leaving positive reviews (you need an Order ID to post a review), there’s a high chance that a customer receiving an item as a gift will associate it with a happy feeling, leading them to purchase it for themselves next time around.
Attitudes and Beliefs:
These are core components of consumer decision-making. Attitudes reflect long-standing judgments about products, services, or brands – such as the two friends we talked about in our introduction. One might perceive designer perfume as an investment and a must-have, whereas the thriftier friend may view it as a frivolous indulgence. Beliefs represent the knowledge that individuals possess about these subjects – the former friend may have spent some time in luxury fashion houses, and therefore has a deeper understanding of its appeal, whereas the latter friend may be more focused on things like travel and experiences, which is where they’d rather put their money.
Positive attitudes can foster brand loyalty and encourage repeat purchases. Targeted marketing that reinforces the advantages of your products, and clever copy that steps in front of negative reviews or adverse perceptions, can cultivate positive connections.
2. The Social Factors Influencing Consumer Behavior
Social influences play a crucial role in shaping habitual buying behavior. The customer journey is influenced by the customer’s society; individual consumer characteristics are swayed by external influences way more than we are willing to admit. These social influences are family and society.
Family Influence: Navigating Family-Based Decision-Making Across Cultures
Family dynamics play a crucial role in shaping purchasing behaviors, with variations evident across different cultural contexts. In the more individualistic societies of the West, for instance, you may not see this manifest as strongly as it does in collectivistic cultures – such as in India, Latin America, or parts of Asia – where family dynamics are a crucial way of life. The question you need to answer as an Amazon seller is, is your consumer base more individualistic or collectivistic? The answer will feed into your product marketing strategies – do you feature models enjoying your product by themselves, or in a family setting? Mirroring your consumer’s circumstances is an excellent way to improve conversions.
Social Groups & Peer Influences: Social Proof in e-Commerce
You already know this part. Social proof and peer influence influence consumer confidence and spending patterns. Customers gravitate towards products that friends and family (or online reviews!) stand behind. People seek products that other peers recommend. A great way to influence purchasing decisions – no matter where in the world you sell – is to utilize the power of social proof for Amazon sellers, and tap into influencer marketing. Many micro influencers – so, not the Cristiano Ronaldos and Kylie Jenners, but more like people on TikTok, YouTube, and Instagram with a strong following, who engage their target market organically and regularly – feel like friends to their followers. When you tap into their influence, you not only share their target market, you leverage the social proof and peer influence of a person whom your customers like, follow, and engage with, regularly.
3. How Cultural Factors Affect Consumer Behavior
Local values and ideologies play a big role in influencing a customer’s buying decision. Cultural norms, and other factors such as ethnicity and economic factors, heavily influence how people buy products and services all over the world. We’ve seen it many times ourselves here at YLT Translations; the driving force behind a British customer isn’t necessarily the same driving force behind a Mexican customer.
Market Research for Consumer Insights
Planning to expand? Discover the cultural factors that shape consumer behavior. Market testing can help in understanding consumer behavior across global markets. What types of products do different markets prefer to buy? Japanese homeowners may gravitate towards home appliances that are multi-purpose, such as a multi-cooker that works as a pressure cooker, slow cooker, rice cooker, and steamer all in one, because their homes are smaller in size and minimalist by design. Having one appliance that fulfills the role of many is a practical purchase. On the other hand, dishwasher sales have risen in Germany over the past few years. German customers prize efficiency and convenience over hyperconnectivity, which is probably why they prefer built-in dishwashers over free-standing ones.
Understanding local traditions, purchasing habits, consumer preferences, and economic factors that shape each local marketplace can help you fine-tune your marketing to correspond to the cultural values of each region you sell in.
Effective Localization Strategies: Balancing Cultural Adaptation and Brand Identity
Localization isn’t just about translating content into different languages. It’s about adapting products and brands – and marketing efforts – to align with local cultural norms, values, and expectations without compromising the brand’s core identity. You might modify product features, packaging, and marketing campaigns to resonate with local tastes, while maintaining the brand’s universal appeal.
Effective localization strategies require a delicate balance – integrating local cultural elements can make a brand more relatable and accessible, especially if it feels more local, but the brand message and identity must remain consistent to avoid confusion and preserve brand identity. Here’s how to create an effective eCommerce branding strategy that’s localized per market, but adapted to the global brand as a whole.
A Case Study on Using Cultural Norms to Sell Products
Let’s illustrate this nuance real quick in the form of beauty products.
Japanese customers are all about clear, bright, and useful skin, so skincare products that feature traditional Japanese ingredients like green tea, rice water, and camellia oil work wonderfully. Japanese consumers are also quite meticulous about the ingredients of their skincare products, so the listings that perform well are very detailed with product descriptions and ingredient benefits.
German customers meanwhile are all about sustainability and natural products. Beauty products that do well in Germany tout things like “organic,” “cruelty-free,” and “recycled packaging,” with Amazon’s “Green Product” label that helps German customers easily identify sustainable products.
In short, make sure your product marketing positioning resonates with the cultural norms of your customers.
4. Personal Factors That Impact Consumer Buying Behavior
We’ve seen so far that a lot the factors that influence consumer attitudes are external. Family, society, peers, culture, and so on. But a person’s life cycle will also influence them when buying goods or services.
Age and Life Cycle: Demographic Data is Important
Buyers purchase products depending on their stage in life. Put it this way. You probably wouldn’t market a bed rail to the Gen Z market. Your infographics, copywriting, and A+ need to cater to a more elderly crowd (and if this is you, did you know the elderly are a very lucrative demographic to have?). Similarly, if you’re in the tech category, you might want to appeal to those Gen Z kids – their prowess with technology is so intuitive, there’s no doubt about it.
Occupation and Income Levels: Consider Economic Status and Professional Needs
Things like where people work and how high they are up the corporate ladder also play a role in consumer behavior. Put it this way – you wouldn’t market a luxury watch to a less affluent consumer, like someone saddled with student debt or still trying to make a name for themselves in the workplace. You might want to market budget-friendly clothing or bags instead, focusing on durability and style at an affordable price point, appealing to those that seek value in their purchases.
That’s why demographics are important. Knowing how much your target market earns in a year can help you understand what’s important to them.
Lifestyle & Personality: Get to Know Your Customer!
Inasmuch as friends and family influence each other’s purchase decisions, consumers are heavily driven by their own lifestyle and personality traits. Factors vary across different target markets because this one’s rather individualistic; it depends on the likes and dislikes of your customer.
For instance, if you’re selling trendy urban clothing, you’ll want to appeal to people who live and/or work in big cities, where the fashion-forward are celebrated and understood, as opposed to more conservative societies in rural areas. In other words, think Singapore, Italy, or France.
By tailoring your product offerings and marketing messages to fit the lifestyle preferences and personality traits of your target market, you can effectively engage with consumers on a more personal and relevant level, enhancing the likelihood of purchase decisions.
5. Economic Factors and Their Impact on Consumer Behavior
You could follow all the tips we’ve listed in this blog, and still not convert your audience – because economic health is a major factor that influences consumer behavior. Economic influences need to be taken into consideration.
Income and Spending Power: The Influence of Economic Conditions on Consumer Spending Habits
Disposable income and overall economic conditions have a big say on how customers buy. Let’s say one of the regions you’re selling in is facing an economic slump; you’d want to go easy on pushing non-essential items and luxury goods. Many countries have economic slumps specific to them – take for instance the German economic crisis (2022-present), the 1997 Asian financial crisis, or the 2014 Brazilian economic crisis. Before deciding on a country to expand to, it’s important to run a full feasibility – and this includes a careful assessment of your future customer. Are they financially ready to buy your product? Is it a necessity for them? Will they part with their disposable income to buy your product?
Consumer Credit Availability: Impact on Purchasing Behavior Across Different Countries
Countries that have a good credit card absorption rate will likely have a larger buying capacity, because credit options allow them to pay over time. For example, in the United States, where credit cards and loans are readily accessible, consumers frequently utilize credit for various types of purchases. In contrast, in countries with less developed credit systems, purchases are more likely to be planned and saved for, affecting the types of products consumers are willing to buy.
Some cultures mistrust credit and prefer Cash on Delivery purchase methods, while others depend on credit for almost everything. This article by Oban International talks about the culture of money, and how it’s one of the increasingly important factors when making a purchase.
Economic Trends and Consumer Confidence: Global Impact on Amazon Sales Strategies
Factors such as inflation rates, unemployment levels, and GDP growth influence how consumers view their financial stability and future. High consumer confidence typically leads to increased spending, while low confidence may cause consumers to hold back on non-essential purchases. Understand what’s going on in each country you sell in, and adapt your marketing and pricing strategies to align with consumer sentiment. For instance, during times of economic uncertainty, highlighting value, reliability, and cost-effectiveness can resonate more with cautious buyers. Conversely, during economic booms, consumers may be more receptive to premium offerings and luxury goods.
Additional Factors Influencing Consumer Behavior
In addition to these 5 factors influencing consumer behavior, there are a few outliers that may also impact your customers:
Technological Advances
Social media, e-Commerce, and social buying have transformed how customers discover, evaluate, and purchase products. Customers have a wealth of knowledge at their fingertips – meaning they’re capable of making more informed decisions, and have easier access to a broader range of options.
Market Conditions
We talked already about economic instability – political instability, evolving cultural norms, and changing market trends will also have an impact on consumer confidence and spending habits. Feeling a slump in one of the countries you sell in? Perhaps check the news, and see if there’s anything that’s shaking your customers’ confidence.
Conclusion: Understand the Consumer Buying Process for Global Success
Understanding the factors influencing consumer behavior is critical for anyone aiming to expand globally. By recognizing the various factors that influence buying decisions, such as psychological, social, cultural, personal, and economic influences, you can tailor your offerings more precisely to meet the nuanced demands of different markets. In doing so, you not only enhance the customer experience; you can also change your product around a little to meet consumer needs. You’ll also craft more relevant and resonant marketing messages, and cultivate deeper customer relationships.
Effective localization is crucial to this process. Recognizing and adapting to the behavioral nuances of consumers in diverse regions can dramatically improve your market penetration and customer loyalty. At YLT Translations, we specialize in helping Amazon sellers expand their reach through expert localization services.
By understanding and integrating cultural subtleties into your marketing efforts, you can ensure your products resonate with local audiences while maintaining a strong global brand identity. Reach out to YLT Translations to explore how expert localization can transform your international sales strategy and help you succeed in global markets!
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