Years ago, 60 Minutes aired a fascinating segment about the draw of SUVs, and how the reptilian brain is what motivates consumers to choose these behemoth vehicles.1 The program raised the premise that people are unaware of the subconscious reasons they make buying decisions.
Research backs up this theory. Studies have shown that most consumer behavior is driven by our subconscious.2 As consumers, we think we're making rational, fact-based purchasing decisions. Actually, the reverse is true.3 Most decision-making is done by our reptilian brain.
Located in the amygdala, the reptilian brain acts based on factors such as unconscious buying pain. Understanding this process is just one way brands sway people into making buying decisions. There are many factors influencing consumer behavior.
1. Personal factors
How you self-identify is a top factor influencing consumer buying behavior. When we see a role model, or someone else we identify with, enjoying a product or service—this sparks our interest.
Likewise, ads that appeal to the idealized version of our selves, whether that’s a fit athlete, a rugged individual, or a style maven, have a powerful draw.
People look to their reference groups as a standard to evaluate themselves. This could be a peer group, an elite club, celebrities or other influencers.4 Marketers tap into these reference groups to influence consumer behavior.
Personal factors also include your age, occupation and lifestyle.
How age influences buying behavior
When it comes to consumer purchasing behavior, teens have very different motivations and priorities than their parents. 85% of Gen Z consumers report that what they see on TikTok® and other social media sites is a major factor influencing their buying decisions.5 In contrast, Baby Boomers are focused on financial security, and tend to make buying decisions based on factors such as the price and quality of a product.6
How influences buying behavior
A person's lifestyle includes their attitudes, interests and opinions of consumers. Lifestyle marketers understand how our worldviews and values impact what products and services we buy.
If you see world travel as essential to a fulfilling life, this influences how you make decisions about spending disposable income.
Likewise, someone purchasing a car may make their choice because they're looking for a status symbol, an efficient commuting vehicle, a symbol of their eco-consciousness, or the comfort of safety for their family. Marketers tap into these lifestyle influences in the way they message their products to their target market.
How occupation influences buying behavior
What someone does for a living can also affect their buying behavior. There are economic factors at play (i.e., how much disposable income they have). However, their work life may influence consumer behavior in other ways.
A hair stylist may choose trendy products to fit in at a high-end salon, for example. Clothing choices may be driven by whether the employer is seen as an innovator or a more conservative brand.
2. Psychological factors
Marketers try to uncover the psychological factors that influence consumer behavior. Obviously, these complex factors are more difficult to ascertain than basic demographics about consumers like age and occupation.
Some psychologists believe that people make non-essential purchases to reinforce their social status or to alleviate sadness or boredom.7 Purchasing a new, shiny object releases dopamine in our brain, making us temporarily feel good.
Psychological factors affecting consumer behavior may include:8
- Conditional learning, which involves learning through repeated exposure to a product
- Cognitive learning, which is based on knowledge acquired about a product (ex: product reviews)
- Perceptions (the favorable or unfavorable image a product represents)
- Motivations (such as safety, self-esteem and social acceptance)
- Preconceived notions of a product or brand
Tapping into psychological factors that influence consumer behavior
So how do marketers use these psychological factors?
"Focus groups and surveys don’t often work to understand consumer behavior because consumers themselves don’t understand why they make purchase decisions,” says Christa Reyes, Business instructor at Rasmussen University.
“So, companies have found more creative ways to get inside the customer’s head," she says.
Some of these methods include…
Collecting data from smartphones
"Many people joke that their phones are listening to them, and while that might sound far-fetched, it is not entirely untrue,” says Reyes.
“Apps and voice assistants are constantly collecting information in the background, not just from what you say, but from everything you do,” Reyes explains. “Every tap, swipe, search and scroll provides clues about your interests, habits and potential purchases.”
Marketers and companies find, purchase or generate this data to tailor the ads you see, the promotional emails you receive and the product recommendations that show up on your feed. “The more you use your device, the more accurately it learns to predict what you are likely to buy next,” according to Reyes.
Running loyalty programs
A company’s rewards program might seem like a simple way to save money, but behind the scenes, they are probably getting more out of the arrangement than you are, according to Reyes. Your participation allows the company to track your purchase habits over time. They can see what you buy, when you buy it and how often.
This information helps businesses target you with personalized offers and encourage more frequent visits.
“I sometimes hesitate to sign up for loyalty programs because I know they are often less about rewarding me and more about learning how to get me to spend more,” Reyes says.
Optimizing store layout
Grocery stores often place staple items like milk and bread at the back, so you have to pass by many other products just to get what you came for. That walk through the store increases the chances of picking up things you did not plan to buy.
Shelf placement also matters.
Products placed at eye level tend to sell more, which is why companies pay extra to have their items positioned there. “Stores like T.J. Maxx® are known for their strategic checkout areas, where customers stand in line next to racks of small, tempting items,” Reyes explains. “These last-minute add-ons are a huge part of the store's overall sales strategy.”
Limited time or limited release offers
There is something about seeing a product labeled "only for a short time" that creates urgency.
“I recently saw a commercial for mango-flavored Mountain Dew® only at Little Caesars®, and even though I do not usually buy their pizza, I considered it—just to try the new drink because my kids were excited about it,” Reyes says.
“These types of offerings are designed to capitalize on our fear of missing out, and they work surprisingly well.”
3. Social influences
The behavior, beliefs, attitudes and preferences or others weight heavily on consumer behavior. Some studies show that social factors have the greatest influence over consumer behavior.9
Social factors may include…
Our family members
Observing our families greatly influences consumer behavior.10 Consciously or subconsciously, we often model ourselves after our parents and other family members. Everything from spending patterns to brand preferences play into decisions we make.
Some of their buying behaviors persist in us as we grow up. It's likely that many of the brands that were on your kitchen table when you were growing up continue to be ones you purchase today.
Our reference groups
The buying behavior of our peers is a major influence on consumer behavior. The proliferation of social networks has amplified the influence of these reference groups, such as friends, church members and colleagues.
Our social class
Where we are in the social class hierarchy affects our choices of everything from what we eat to where we live. Researchers theorize that there are marked differences between the consumer behavior of those who are working class vs. those who are middle class. Their belief is that our social class affects our thinking style, which in turn affects how we process consumer information.11
4. Cultural influences
Consumer buying behavior is also influenced by the values of the communities that we're part of. Cultural factors influence consumer behavior in several different ways. The shared values and norms of our communities have a huge impact on buying behavior.12
Brand loyalty is also closely correlated with cultural identity in so far as people associate certain products with their own culture or nationality.
American marketing, for example, is rife with symbols and messages about individualistic cultures due to the cultural emphasis on individual success. These messages tend to resonate with American consumers.12
What works in one country or with one demographic of customer, may fall flat in another. Humor, for instance, is widely used in the United States to connect with consumers, especially on social media.
Brands like Wendy’s® have built a reputation for snarky and entertaining posts that resonate with their audience. In contrast, a similar tone might not work in Japan, where advertising tends to be more reserved and respectful.
This makes global companies an interesting study in marketing tactics.
For example, McDonald’s® shifts their marketing and product offerings to align with local tastes, demographics and values, according to Reyes.
"For example, during Hispanic Heritage Month, some locations with large Latino populations such as Miami have run campaigns featuring bilingual ads or menu items inspired by Latin flavors,” Reyes says. “In areas with strong sports cultures, McDonald’s partners with local pro teams in their promotions to deepen customer loyalty.”
5. Economic factors
Economic factors can be unpredictable. But consumer behavior is definitely tied to them.
Individual personal income
The personal income of an individual and their family is a strong indicator of consumer buying behavior. The percentage of disposable income you have correlates to your willingness to spend.
Market conditions
The economic situation where you live also plays a role.
If your region is suffering from high unemployment or the country is facing economic instability, this can put caution in your purchasing decisions, even if you have higher disposable income.
Times of uncertainty (like during the pandemic) make people much more cautious in their purchasing decisions.
Consumer purchases tempered in early 2025, as public concern started rising about increases in the price of everyday products.13 Intentions to purchase a vehicle, for example, are affected not just by personal income but by fuel prices as well as government policies.
Access to consumer credit
Having access to credit increases consumers' purchasing power. Consumer surveys have found that people typically use credit to purchase household durable goods such as appliances as well as larger items like cars.
Authors Thomas A. Durkin et. al. write that “while behavior research indicates that consumers do not always make the cognitive efforts required for an extensive decision process...evidence from analysis of actual credit card behavior indicates that consumers are sensitive to costs and do not incur costly mistakes.”14
Consumer behavior is a constantly-shifting puzzle
The art of marketing is honestly fascinating. If you find these elements of consumer behavior interesting, you might have the right type of mind to not only solve, but to enjoy solving, these kinds of puzzle.
It won't surprise you to learn that marketing is a massive industry. Companies invest a great deal of time and money into marketing their products—and it goes much deeper than the end-products we are all familiar with (ads, commercials, etc...). It wouldn't be a stretch to say there's a marketing role for almost every type of person.
Check out 11 Types of Marketing Specializations: The Practical Guide to see what we mean.
Wendy’s® is a registered trademark of Quality is Our Recipe, LLC
McDonald’s® is a registered trademark of McDonald’s Corporation
Little Caesars® is a registered trademark of LC Trademarks, Inc
Mountain Dew® is a registered trademark of Pepsico, Inc.
T.J. Maxx® is a registered trademark of NBC Fourth Realty Corp
TikTok® is a registered trademark of TikTok Ltd.
1The Thrill of the SUV, CBS News website. Viewed 6/6/25
2Ahmed Alsharif, et. Al, Neuroimaging Techniques in Advertising Research, April 23, 2021 MDPI website, Viewed 6/6/25
3Anne Stephenson, The Reptilian Brain: The Key to Understanding Shopper Behavior November 4, 2024. Explorer Research website, Viewed 6/6/25
4Tatiana Walk-Morris, ICSC: 85% of Gen Z says social media impacts purchase decisions (June 9, 202). Retail Dive website, Viewed 6/6/25
5Stephanie Harlow, Baby Boomers' spending habits in 2025, GWI website, Viewed 6/6/25
6Andrea Niosi, Introduction to Consumer Behavior, Lifestyle and Psychographics, BCcampus website, Viewed 6/6/25
7Consumer Behavior, Psychology Today website Viewed 6/6/25
8Lawerence Chapman and James Shaw, What factors influence consumer behavior?. Product Marketing Alliance website, Viewed 6/6/25
9Jainish Roy and Lalit Sachdeva, Psychological Factors Impacting the Consumer, Behaviour of Customers, Journal of Lifestyle & SDG's Review. Viewed 6/6/25
10Family: The foundation of consumer behavior, Clootrack website, Viewed 6/6/25
11Rebecca M. Carey and Hazel Rose Markus, Understanding consumer psychology in working-class contexts, August 26, 2016, Journal of Consumer Psychology, Science Direct website
12Sharon Shavitt, Dua Jiang, and Hyewan Cho, Stratification and segmentation: Social class in consumer behavior, August 26, 2016 Journal of Consumer Psychology, Science Direct website
13ConsumerSignals, May 2025, Deloitte Insights website, Viewed 6/6/25
14Thomas A. Durkin, Gregory Alleihausen, and Todd J. Zywicki, Consumer Credit and the American Economy (book), 2025 Law & Economics Center website
