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Unit 2 · Topic 2.2

2.2 Consumer Behavior

People buy things to meet needs and wants, but the reasons behind any single purchase mix personal, psychological, social and situational factors. Laws and technology change buying habits over time, and marketers use Cialdini's principles of influence to nudge people toward yes.

Key terms

  • rational decision-making
  • purchasing pattern
  • situational influences
  • principles of influence
  • scarcity
  • reciprocity

How people decide what to buy

When several products meet the same need, people choose based on price, features that set products apart, availability and advertising.

For big decisions, like a car or a home, many people use a rational process: they compare options step by step and pick the one that best fits their needs. That usually leads to a better choice, but it costs time and effort to gather information. Most small purchases, like a drink on the way to school, are habits or routines that take almost no thought.

Four kinds of influences

  • Personal factors: age, sex, education, income, budget, job and lifestyle. They shape what you need and what you can afford.
  • Psychological factors: your values and beliefs, perceptions, learning (what past experiences taught you) and motivations. They shape your attitude toward a product and whether you're willing to buy.
  • Social and cultural factors: friends, family, social status, cultural norms and media. They shape what seems acceptable or desirable to buy.
  • Situational factors: store design (noise, lighting, layout), timing and whether the product is in stock. They create short-term conditions that make buying more or less likely, like candy at the checkout line.

Purchasing patterns, laws and technology

A purchasing pattern is your usual routine for buying: when, how often and how much. Where you live and work, your income and the habits of your family and friends all shape it.

Laws change patterns by controlling what people can buy and when and where. Consumer protection laws, for example, keep fraudulent or unsafe products off the market. When a law makes a product hard to get, people often switch to substitute products that meet the same need.

Technology changes patterns by making new products and ways of shopping possible. The internet in the 1990s and smartphones in the 2010s changed how people shop, find information and get entertainment.

Cialdini's principles of influence

Psychologist Robert Cialdini identified mental shortcuts that make people more likely to say yes to a request. Marketers build sales tactics on them.

PrincipleThe ideaMarketing tactic
ScarcityThings seem more desirable when they seem rareOnly 3 left!, limited-time offers
AuthorityPeople follow experts and authority figuresA dentist recommending a toothpaste, showing credentials
ConsensusPeople do what others like them are doingStar ratings, 10,000 five-star reviews
LikingPeople say yes to people they like or relate toAds with people who look like the target customer, friendly salespeople
ReciprocityPeople feel they owe something back after receiving somethingFree samples, free trials, small gifts
ConsistencyPeople act in line with how they see themselvesMarketing a product as what health-conscious people buy
UnityPeople are swayed by groups they feel part ofExclusive members' groups, inviting fans to help design products

Worked examples

Try each one yourself first, then open the solution.

  1. Example 1

    Naming the principle behind a tactic

    Identify the Cialdini principle each tactic uses: (a) A skincare brand's ad features a dermatologist in a white coat. (b) A grocery store hands out free cheese samples. (c) A shoe website shows only 2 left in your size. (d) A sports drink invites customers to join its runners' club and vote on new flavors.

    Show the solution
    1. Step 1: (a) The dermatologist is an expert, so this is authority.
    2. Step 2: (b) A free gift creates a feeling that you owe something back, so this is reciprocity.
    3. Step 3: (c) Low stock creates urgency, so this is scarcity.
    4. Step 4: (d) Joining a club and helping create products builds a sense of belonging to a group. The trap is calling it consensus; consensus is about following what most people do, while unity is about feeling part of a group.

    Answer: (a) authority, (b) reciprocity, (c) scarcity, (d) unity.

Common mistakes

  • Confusing consensus (most people like it, so I will too) with unity (I'm part of this group).
  • Calling store layout or timing a psychological factor. Those are situational influences.
  • Assuming every purchase is rational. Most small purchases are habits.

On the exam

  • Multiple-choice sets often describe a sales tactic and ask which principle of influence it uses, or which factor (personal, psychological, social or situational) explains a buying decision.
  • If you're asked to develop or evaluate a sales tactic, name the principle, describe the tactic and explain why it would work on the target customer.

Connected topics

Videos

  • Consumer Behavior | AP Business Topic 2.2

    Jacob CliffordWatch on YouTube (opens in a new tab)

  • AP BPF 2.2: Consumer Behavior (FULL LESSON) AP Business with Personal Finance

    MAMAKOWatch on YouTube (opens in a new tab)

  • Science Of Persuasion

    Team CialdiniWatch on YouTube (opens in a new tab)

  • Defense Against the Dark Arts of Influence: Crash Course Business Soft Skills #2

    CrashCourseWatch on YouTube (opens in a new tab)

  • 7 Principles of Psychological Persuasion

    SproutsWatch on YouTube (opens in a new tab)

  • Consumer Decision-Making Process (With Examples) | From A Business Professor

    Business School 101Watch on YouTube (opens in a new tab)

Check yourself: 2.2 Consumer Behavior

4 questions on 2.2 Consumer Behavior. Pick an answer to see if you got it, and why.

Glow Lab, a skincare brand, is testing four sales tactics on its website.

Tactic 1: A banner reads, "Only 3 left at this price!"

Tactic 2: Every order comes with a free travel-size sample of a new face cream.

Tactic 3: Product pages show "4.8 stars from 12,000 reviews" and "Most popular with shoppers like you."

Tactic 4: Ads feature a board-certified dermatologist recommending Glow Lab products.

Hypothetical marketing plan

Question 1 of 4

Tactic 1 draws mainly on which of Cialdini's principles of influence?

Question 2 of 4

Tactic 2 draws mainly on which principle of influence?

Question 3 of 4

Which pairing correctly matches Tactics 3 and 4 with principles of influence?

Question 4 of 4

Glow Lab wants a fifth tactic based on the unity principle. Which tactic fits best?

0 of 4 answered