Consumer behavior is strongly influenced by many internal and external factors, including:
- Internal conditions: demographics, psychographics (lifestyle), personality motivation, knowledge, attitudes, beliefs, and feelings
- External influences: culture, sub-culture, locality, royalty, ethnicity, family, social class, past experience reference groups, lifestyle, and market mix factors
An individual's motivation, perception, attitude, and beliefs are considered psychological factors. Other factors such as income level, personality, occupation, and lifestyle are categorized as personal factors. Motivation is versatile enough that it spans multiple areas, including physiological, behavioral, cognitive, and social.
Motivation may be rooted in a basic human need to minimize physical pain and maximize pleasure, and it may include specific needs such as eating and resting. However, motivation is ultimately linked to emotion.
Intrinsic and Extrinsic Motivation
Motivation can originate from oneself (intrinsic) or from other people (extrinsic).
- Internal, or intrinsic motivation ismotivation that is driven by an interest or enjoyment in the task itself, and exists within the individual rather than relying on any external pressure. Intrinsic motivation is based on taking pleasure in an activity rather than working towards an external reward. Intrinsic motivation has been studied since the early 1970s.
- External, or extrinsic motivation comes from outside of the individual. Common extrinsic motivations are rewards, like money, and the threat of punishment. Competition is extrinsic because it encourages the performer to win, not simply to enjoy the intrinsic rewards of the activity. A cheering crowd and trophies are also extrinsic incentives.
Widely Recognized Motivational Theories
- Incentive Theory: A reward, tangible or intangible, is presented after the occurrence of a behavior, with the intent of causing the behavior to occur again. Incentive theory in psychology treats motivation and behavior of the individual as though they are influenced by beliefs, such as engaging in activities that are expected to be profitable.
- Escape-seeking dichotomy model: Escapism and seeking are major factors influencing decision making. Escapism is a need to break away from a daily life routine, whereas seeking is described as the desire to learn or gain some inner benefits through travelling.
- Drive-reduction theory: Individuals have certain biological drives, such as hunger. As time passes the strength of the drive increases if it is not satisfied (in this case by eating). Upon satisfying a drive, the drive's strength is reduced.
- Cognitive dissonance theory: Cognitive dissonance occurs when an individual experiences an inconsistency between their views of the world around them and their own personal feelings and actions.