References 7

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Table of Contents

Introduction 2

Internal factors impacting consumer purchase decision 2

External factors impacting consumer purchase decision 4

Conclusion 6

References 7


Consumer purchase decision gets influenced by different factors which consist of both internal and external factors. Marketers need to take into account all the different factors which influences consumer decision making process and based on it need to identify the strategy they will use to sell the product. This paper will look at evaluating the different internal and external factors which have an influence on consumer decision making while looking to purchase a car. This will help the different users to understand the manner in which consumer gets impacted and the different core areas which they need to consider while looking to place their products or services before the consumer. The paper will thereby help to improve the process of approaching the customer and ensure that the customer can be converted into loyal one.

Internal factors impacting consumer purchase decision

The different internal factors which have an impact on consumer purchase decision while looking to purchase a car is as


The risk which consumer perceives with the product determines the purchase of the product. If the customer perceives the car to be risky because of some technical errors or engineering default then people will refrain from purchasing the product (Kotler & Armstrong, 2006). If the level of involvement with the car is high it will result in ensuring that more and more people look at purchasing the car as they will be guided by the motive to purchase the car. In addition to it the different attributes of the car will also help to perceive the risk which the consumer associated with the car and will be guided by those motives while looking to purchase the car. Further, a low degree of perceived risk will help to increase the chances of purchasing the car and would guide and mould the behaviour of consumer towards purchasing cars.


Past experiences of consumer also has a role in impacting consumer purchase behaviour. The learning which the consumer has garnered from their past experiences influences the behaviour of consumer which thereby impacts their purchase habits. If the past experience of the consumer with the purchase of car is good then the learning will be positive and the consumer will be influenced to purchase the same car again and again (Mowen & Minor, 2009). In case the past experience of the consumer is bad then the learning will be negative and even if a good product is provided the consumer past learning will guide him not to purchase the product again. In addition to it the most recent memories which the consumer has about the product or services influences him more as compared to past experiences as remembering the recent experiences is easy as compared to past events. The car players thereby look towards enriching the experience of the customer by providing free service, free trail, discounts and other offers so that learning for the consumer will be positive which would thereby influence their behaviour towards purchasing the product.


The motive which the consumer has behind purchasing the product also determines the degree to which the consumer will purchase the product. For example suppose a customer looks to procure a car for meeting the societal need then the customer would look for costly models so that more and more people perceive it as a social symbol (Kotler, 2009). In case the need for the car is to carry out the daily activities and duties then the consumer would look to purchase a car which is economical and has a low cost of service. The different motivation which the consumer has in relation to the product will determine whether the consumer purchases the product or not. Marketers while selling cars have to understand the different motivation which has guided the consumer towards purchasing the car and based on it has to develop the required strategy so that customer satisfaction can be enhanced.


The personality which the product reveals and the manner in which the person is able to associate with the product will determine whether the customer will purchase the product or not. In case the consumer is able to ensure that the car which is being purchased matches his personality and the same will be revealed within the society will be thereby guided to purchase the product (Hawkins, Best & Coney, 2006). This will have a positive impact on the consumer intention and would guide the consumer to purchase the product again and again. The ability of the consumer to be directly associated with the car will determine the personality which the product is revealing and would thereby help to ensure that the product is purchased.

Thus, the purchase habit and buying behaviour of consumer gets impacted by different internal factors which have a role in influencing their purchase decisions.

External factors impacting consumer purchase decision

The different external factors which have an impact on consumer purchase decision while looking to purchase a car is as

Culture is an important external factor which influences consumer purchase decisions. Culture refers to traditions, taboos, beliefs, attitudes and values that a person adopts in his life (Mousavi, 2009). The upbringing and culture will shape the type of car which a person prefers. If the culture allows the consumer to have a car which is designer and the person’s beliefs towards those are positive then the consumer will be persuaded to purchase that type of car. In a similar manner the cars which society permits and goes with the culture will be purchased more dominantly by consumers compared to other brand of cars available in the market. Marketers need to understand the type of customer they are dealing with, the manner in which the customer has grown, the different traditions and beliefs which the customer has and based on it should look at attracting customers. This will help to ensure that the customers are provided with the correct product and would tend to improve the overall degree of satisfaction.


This is similar to culture but is a group of individuals who are present within the same culture but have certain traits which are distinctive from others. The major determinant of sub-culture is religion, regional and ethnic differences which is present among consumer. This has made car manufacturers to use different strategies and models in different areas depending on the need and wants of the customer. The overall demand here is shaped by different factors which impacts consumer and determines the manner in which the person will purchase a product. For example car manufacturer based on customer and ethnic ground look to pitch different cars so that different type of customers can be attracted.

Social Class

Social class is the hierarchical arrangement which is followed in the society and signifies the social status which each individual has. This has an impact on consumer purchase decision as a person who is rich would look towards a car which is available with a few and acts as a social status (KhajehNasiri, 2008). The consumer will look at cars which matches their social profile as it will help the consumer to ensure that they are looked by people from within the society as one who belongs to an affluent class. Social class thereby impacts consumers and shapes the purchasing decision of people. In addition to it marketers look to understand the profile of the customer and based on it look to provide different cars so that they can attract the correct customers.

Group Influence

Consumers are also impacted by the group which they have as friends, families, and foes influences people to take different decisions. People while purchasing car are generally influenced by family members or friends as they provide the required advice which the consumer is seeking (Loudon & Della, 2002). A person while purchasing a car is likely to be influenced by the group with regard to the color of the car, the model of the car and other similar attributes. This is primarily on the backdrop that people within the society are used to be influenced by their near ones as they guide them so while looking to purchase a product like car the consumer being influenced by the group is very likely.


The paper thereby brings forward the manner in which different factors i.e. internal and external factors have an impact on consumer purchase decisions. Marketers need to consider the different factors while looking to prepare marketing strategies. It should further be seen that no factors have an impact in isolation but it is the culmination of different factors which impacts consumer purchase decisions. A range of factors work together and have an impact on consumer purchase decision. It is difficult to identify which factor will have more influence which increases the degree of risk for marketers as they have to understand those factor and based on it have to look at attracting people. This becomes imperative that every organization working in different areas consider the different factor and the impact it has on consumer decision so that better strategies to attract and retain customers can be identified.


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KhajehNasiri. E, 2008, What is the consumer behavior or customer behavior, Arak Islamic Azad University Publication. Arak.

Kotler, P, Armstrong, G, 2006, Marketing principles, Translated by Bahman Frozandeh, Amokhteh Publication, 5th Publication, Esfahan.

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Loudon, D, & Della, B, 2002, Consumer Behavior Concepts and Application, McGraw- Hill, New York.

Mowen, JO & Minor, MI. 2009. Consumer behavior ,internal and external factors, translated by Abass Saleh ARdestani and Mohmmad Reza Sadi. Diba puplication, Tehran.

Mousavi, N, 2009, „Investigation of the effective cultural factors on decision making for buying cars‟, M.A thesis, Shahid Beheshti University, Tehran.