Academic literature on the topic 'Consumer behavior before purchasing'
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Journal articles on the topic "Consumer behavior before purchasing"
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Gireesan, E. M. "CONSUMER BEHAVIOR AND FACTORS INFLUENCING PURCHASE DECISION OF XIAOMI SMART PHONES." International Journal of Interdisciplinary Research in Arts and Humanities 2, no. 2 (2017): 79–82. https://doi.org/10.5281/zenodo.1000931.
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Consumer Behaviour is a branch which deals with the various stages a consumer goes through before purchasing products or services for his end use<strong>. </strong>Consumer behavior can be broadly classified as the decisions and actions that influence the purchasing behavior of a consumer. What drives consumers to choose a particular product with respect to others is a question which is often analyzed and studied by marketers. Most of the selection process involved in purchasing is based on emotions and reasoning. Consumer behaviour is the study of how individual customers, groups or organizations select, buy, use, and dispose ideas, goods, and services to satisfy their needs and wants. It refers to the actions of the consumers in the marketplace and the underlying motives for those actions.
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Yadav, Nisha, Mayuri Thoke, Riya Shrivastav, and Vibhuti Prajapati. "Consumer Behavior in online purchasing." International Journal of Advanced Multidisciplinary Research and Studies 4, no. 3 (2024): 1108–12. http://dx.doi.org/10.62225/2583049x.2024.4.3.2908.
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Consumer behavior in online purchasing has become a crucial area of study in the digital age. With the proliferation of e-commerce platforms and the increasing availability of products and services online, understanding how consumers make choices in the digital marketplace is essential for both businesses and researchers. This study explores the various factors that influence consumer behavior in online purchasing, including product information, website design, trust, security, and social influence. Consumers often engage in extensive information search before making an online purchase, and their decisions are influenced by factors such as product reviews, recommendations, and the credibility of the e- commerce platform. Moreover, the impact of psychological and emotional factors, such as trust in online retailers and the perception of security, plays a significant role in shaping consumer behavior. Understanding the role of these factors is critical for businesses aiming to establish and maintain a positive online shopping experience for their customers. Social influence through social media and online communities also plays a notable role in online purchasing decisions, as consumers are often influenced by the experiences and recommendations of their peers. In conclusion, consumer behavior in online purchasing is a multifaceted area that requires a holistic understanding of various factors that drive decision- making. This research provides valuable insights for businesses looking to optimize their online strategies and improve customer experiences in the dynamic world of e-commerce.
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Mutholiah, Furiha, and Widiyanto Widiyanto. "Analisis Perilaku Konsumen Dalam Keputusan Pembelian Produk Celebrity Endorser." Business and Accounting Education Journal 2, no. 2 (2021): 195–205. http://dx.doi.org/10.15294/baej.v2i2.50648.
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The use of celebrity as an endorser influences the consumption psychology of consumer. The purpose of this research was to analyze the factors considered by the consumers, the steps of purchase decision made by the consumers and consumer behavior in making decision after purchasing of Semarang Roru Cake. The data collection techniques used were observation and interview. The validity of the data using regular observation, triangulation, peer review and detailed description. Data reduction, presentation, and conclusion were the data analysis techniques. The result showed that consumer behavior in making purchase decision on Celebrity Endorser Products (A Case Study: The consumer of Roru Cake Outlet in Semarang)”. Consisted of seven factors that influenced the consumers before buying the cake, they were Product Factor, Price Factor, Promotion Factor, Personal Factor, Social Factor, Cultural Factor and Environmental and Situation Factor. There were several stages of purchase decision made by Semarang Roru Cake consumers, they included the stages of need recognition, information searching, alternative evaluation, purchasing decision and post-purchase behavior. In purchase behavior, every consumer was different in deciding what to buy, complex buying behavior, purchasing behavior that reduced the inconvenience, purchasing behavior due to purchasing habit and behavior which seeked for the variations.
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Chen, Zhenggui. "Research on the Influence of Consumer Purchasing Behavior on the Market Supply and Demand Relationship." Modern Economics & Management Forum 5, no. 4 (2024): 679. http://dx.doi.org/10.32629/memf.v5i4.2562.
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Consumer purchasing behavior refers to all the activities and decision-making process of consumers when deciding to purchase a product or service, covering the psychological activities, information collection, evaluation and decision-making before and after the purchase. The purpose of studying consumer purchasing behavior is to understand the reactions and choices of consumers in different situations, and then to reveal the internal and external factors that affect their decisions. This is of great significance for enterprises to develop effective marketing strategies. Consumer purchasing behavior is mainly divided into three categories: planned purchase and impulse purchase, necessity purchase and non-essential purchase, single purchase and repeated purchase. Each type of behavior has different effects on enterprise marketing strategy and market supply and demand relationship in different situations.
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Wardhani, Roro, Adhiimsyah Luthfi, Andi Sularso, and Imam Suroso. "A Consumer Behavior and Lifestyle with the Interest of Buying As Mediation in Determining Home Purchase with Subsidy Credit in Jember." International Journal of Scientific Research and Management 8, no. 07 (2020): 1900–1911. http://dx.doi.org/10.18535/ijsrm/v8i07.em04.
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The need for houses is almost never decreasing, this opportunity is exploited by developers to realize government programs related to meeting the needs of subsidized housing mortgages. Developers must be able to know how consumer tastes are changing every day in line with current trends, and it is a challenge for developers to be able to predict future demand. This understanding needs further investigation to find out how consumers consider everything before finally making a decision to buy. The purpose of this study was to analyze and determine the effect of consumer behavior and lifestyle on the interests and decisions of the purchase of subsidized KPR housing in Jember Regency. The sample in this study consumers from 10 developers in Jember were 150 respondents. The results of the analysis show that consumer behavior influences consumer buying interest in the purchase of subsidized housing mortgages, lifestyle influences consumer buying interest in home mortgages, consumer behavior influences consumer purchasing decisions in buying subsidized housing mortgages in Jember, lifestyle has a significant effect on purchasing decisions in buying subsidized housing mortgages in Jember, buying interest influences purchasing decisions in determining the purchase of subsidized housing mortgages in Jember, and based on the results of testing the direct and indirect influence of consumer behavior and lifestyle on purchasing decisions through interest, the results show that the direct influence of consumer behavior and the lifestyle of buying interest and purchasing decisions has a greater influence than indirect influence.
 
 Keywords: consumer behavior, lifestyle, buying interest and purchasing decisions.
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Pirc Barčić, Andreja, Manja Kitek Kuzman, Tihana Vergot, and Petra Grošelj. "Monitoring Consumer Purchasing Behavior for Wood Furniture before and during the COVID-19 Pandemic." Forests 12, no. 7 (2021): 873. http://dx.doi.org/10.3390/f12070873.
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Monitoring consumer buying behaviors in terms of their preferences and attitudes has been known as an important driver for the success and development of various industries, including a wood furniture manufacturing. The aim of this study was to identify and compare the purchasing behaviors of furniture consumers in the period before and during the COVID-19 pandemic. Two surveys were conducted in Croatia, the first in April and May 2020 with the assumption that consumer purchasing behaviors will change during the COVID-19 pandemic in the following year and the second one during March 2021. Differences regarding consumer purchasing behaviors and preferences for wood furniture between respondents regarding demographic and economic factors before and during the pandemic were found. The coronavirus pandemic is teaching us all hard lessons about resilience and adaptability, and new opportunities and solutions are essential. Nowadays, it is becoming increasingly important to produce information. Research offers insights into future design and building communication to better meet the information needs of different types of consumers and to more broadly increase the acceptance and appeal of wood furniture in society in the spirit of sustainable and bio-based circular economy.
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Nirwana. "The Influence of Consumer Behavior, Perspectives and Types of Consumers in Purchasing Decision Making." JOURNAL OF ECONOMICS, FINANCE AND MANAGEMENT STUDIES 06, no. 01 (2023): 402–6. https://doi.org/10.5281/zenodo.7578814.
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Purchasing or consumption can be said to be the main goal of consumer behavior. While purchases will occur because of the need and desire for the product. But not infrequently the purchase is not caused by a need and desire. Someone before making a purchase begins with a need and a desire (want). Buying activity is part of an effort to fulfill the urge of needs and desires. Need is a state that is felt not to exist in a person. Something that is not in a person. The experience decisionmaking perspective is carried out by consumers who have experience in understanding brands and products. For consumers, knowledge about brands and products is considered sufficient. So there is no need for a lot of information related to the use of brands and products. The influence of experience from using brands and products has an impact on the purchasing decisionmaking process. The introduction of the problem around how the experience of brand and product problems before. Information search process based on solving problems from previous purchases. Brand and product choices are based on the impact of previous experience. Consumer behavior in the purchasing decision process does not always follow a linear path in the consumption process. Linear flow in decision making starts from problem recognition, seeking information, evaluating information, purchasing, and evaluating after purchase. Because consumers have different attitudes and views on brands and products. There are several types of consumers based on consumer involvement. Consumer engagement with brands and products. Consumer involvement in assessing brand existence. It is a consumer effort to compare brands, loyalty to certain brands, even rejection of certain brands. Consumer involvement in a brand is a consumer evaluation of a brand that has been known and is being promoted by the seller.
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N., MD. FAIYAZ AHMED. "CONSUMER PURCHASE BEHAVIOUR ON AIR CONDITIONER – A STUDY IN VANIYAMBADI TALUK TIRUPATTUR DISTRICT TAMILNADU." Journal of Jilin University 42, no. 08 (2023): 72–79. https://doi.org/10.5281/zenodo.8255563.
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<strong>Abstract</strong> Consumer Buying Behavior refers to consumers' actions taken (both on and offline) before buying a product or service. This process may include consulting search engines, engaging with social media posts, or various other actions. It is valuable for businesses to understand this process because it helps companies better tailor their marketing initiatives to the marketing efforts that have successfully influenced consumers to buy in the past. In this study, a research investigation was carried out to determine consumer purchase behavior towards purchasing Air conditioners in Vaniyambadi Taluk. Totally 200 consumers were selected from Vaniyambadi Taluk. The deliberate Sampling Method was adopted all through the research. <strong>Keywords: </strong>Consumer Behaviour, Air Conditioner, Impact of consumer behavior
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Kothari, Dr Hemant, Dr Swati Lodha, Dr Nirmala Joshi, and Ms Sana Khan. "A Study of the Impact of Online Consumer Buying Behaviour on Offline Market while Purchasing White Goods." MET Management Review 08, no. 02 (2021): 78–82. http://dx.doi.org/10.34047/mmr.2020.8210.
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The rise of e-commerce has transformed the way consumers shop for goods and services. In recent years, there has been a significant increase in online consumer buying behavior, with consumers turning to online channels to purchase white goods. This trend has had a significant impact on the offline market, and retailers who operate both online and offline need to adapt to the changing consumer behavior to remain competitive. The purpose of this research paper is to study the impact of online consumer buying behavior on offline market while purchasing white goods. The study indicates that online consumer buying behavior has a significant impact on the offline market while purchasing white goods. Consumers who purchase white goods online are more likely to compare prices, read reviews and conduct research before making a purchase. They are also more likely to purchase from retailers who offer free delivery and easy returns.
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Wang, Zitao. "The Analysis of the Marketing Strategy of MARS Regarding Social Media and Decision-Making Aspect." BCP Business & Management 34 (December 14, 2022): 428–35. http://dx.doi.org/10.54691/bcpbm.v34i.3045.
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The confectionery sector, as a segment of the fast-moving consumer industry, represents a rapidly changing market. This has led to continuous innovation in the field of confectionery products that may drive consumption because consumer behavior in this industry is constantly changing and evolving. As confectionery items are frequently purchased as a result of impulsive buying, brands keep concentrating on developing distinctive strategies to seek consumer attention. This paper focuses on Mars, one of the most successful confectionery companies, with the analysis of the marketing strategy it uses to create consumer centricity and drive consumers’ purchasing behavior based on social media and consumer decision-making perspective. A questionnaire is designed to identify consumer behavior and psychology, with 70 respondents finishing it. It can be found that the strategies of Mars focus on using high-impact emotional motivators to gain consumers’ attention and influence their purchasing behavior, which establishes consumers' resonance and leaves a deep impression in their minds. This result could help Mars to keep optimizing the brand marketing tactics in the post-pandemic era when consumers are more complex than before.
Dissertations / Theses on the topic "Consumer behavior before purchasing"
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Thienmongkol, Kaorat, and Pongsatorn Thaisuntad. "Consumer behavior toward online purchasing behavior : “What factors trigger the online purchasing decision of young Swedish consumer?”." Thesis, Mälardalens högskola, Akademin för ekonomi, samhälle och teknik, 2009. http://urn.kb.se/resolve?urn=urn:nbn:se:mdh:diva-6544.
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Program: MIMA student – International Marketing Course name: Master Thesis (EFO705) Title: Consumer behavior toward online purchasing behavior Authors: Kaorat ThienmongkolPongsatorn Thaisuntad Supervisor: Daniel Tolstoy Problem: “What factors trigger the online purchasing decision of young SwedishConsumer?” Purpose: The purpose of this report is to study the insights about the factors that triggerpurchasing behavior of young Swedish consumer to shopping on the internet.The result will enable managers of e-commerce firms to outline strategies topenetrate the Swedish market, and will also contribute to e-commerceliterature in general. The students who study and interested in this area will beable to use this result as their empirical data and to enhance their knowledge. Method: 160 questionnaires were used as primary data. Stockholm, Goteborg, Uppsala,Vasteras, and Eskiltuna are the cities that authors collected the data. Forsecondary data, authors collected data from the website. Conclusion: Young Swedish consumers have positive experience on online shopping, trustand like to shop online. They concern on the type of product when shoppingon the internet. And young Swedish consumer also effect by situational factor. Keyword: online shopping, online purchasing decision, consumer behavior
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Zakharova, Kateryna. "Influence of Packaging on Consumer Purchasing Behavior." Master's thesis, Vysoká škola ekonomická v Praze, 2015. http://www.nusl.cz/ntk/nusl-264056.
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The usage of the packaging as the marketing tool gains on its importance and allows companies to differentiate from each other and gain the attention of the potential customer. The aim of the current thesis is to provide an analysis of the impact of packaging on the consumer buying behavior on the example of the chosen company. Moreover, the research investigated to which extent company's customers are satisfied with the packaging they get, and to which extent such packaging incited them to buy the chosen company's products. Furthermore, the recommendations regarding packaging were presented. The mixed research method has been chosen for the research, since it provided a complex picture on the researched area, it included both quantitative and qualitative approaches. The data collection included the qualitative research in the form of the interview with the manager of the chosen company and quantitative research which was conducted and analyzed through the survey.
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Ahsan, Ayesha. "Consumer ratings-reviews and its impact on consumer purchasing behavior." Thesis, KTH, Skolan för datavetenskap och kommunikation (CSC), 2017. http://urn.kb.se/resolve?urn=urn:nbn:se:kth:diva-219309.
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Storytelling is one of the most creative, powerful and effective tools of modern marketing strategies and communication. Due to the expansion of social media, storytelling has become a popular marketing and sales tool that may affect consumer behavior. This research has been conducted from a storytelling perspective with the purpose of finding the correlation between consumer reviews and consumer purchasing behavior. This study focuses on consumer stories which are reflected in terms of product reviews and ratings. Where the correlation between these reviews and ratings and their effects on overall product sales are investigated. The study answers the question, “If reviews & rating have a correlation with consumer purchasing behavior in digital marketing, and if so then how this correlation could be defined?” The data collection and tests have been conducted in a practical environment. The German online stores have been used as the main mode of data collection. Depending on the nature of the data, the quantitative analysis approach has been adopted. By conducting real-time sales data tests, this study fills the gap in previous consumer research studies. The in-depth analysis of results show the correlation between consumer reviews and product sales. The results have revealed that consumer reviews may influence overall product sales and help a consumer in purchasing decision.<br>Storytelling är ett av de mest kreativa, kraftfulla och effektiva redskapen i modern marknadsföring. På grund av den ökande användningen av sociala medier har storytelling blivit ett populärt redskap för att påverka konsumenternas beteende. Denna studie har utförts från perspektivet av storytelling med syftet att finna en korrelation mellan kundrecensioner och kundernas köpbeteende. Studien fokuserar på kundernas historier som reflekteras i recensioner och betyg, där korrelationen mellan recensioner och betyg och övergripande försäljning undersöks. Studien syftar till att besvara frågan ”Om recensioner & betyg har en korrelation med kundernas köpbeteende i digital marknadsföring, och om så hur kan korrelationen definieras?” Datainsamlingen och testandet har utförts i en praktisk miljö. Tyska online butiker har använts som huvudsaklig metod för datainsamling. På grund av strukturen på data har en kvantitativ analys metod använts. Genom att genomföra tester i realtid, har denna studie kompletterat tidigare forskning kring kundbeteende. Den fördjupade analysen av resultaten visar att det finns en korrelation mellan kundrecensioner och försäljning. Resultaten har visat att kundrecensioner kan påverka försäljningen av produkter och hjälpa en konsument i ett köpbeslut.
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Fu, Qingchen, and Yue Yuan. "Factors influencing Chinese consumer behavior purchasing clothes online in Sweden." Thesis, Högskolan i Gävle, Avdelningen för ekonomi, 2015. http://urn.kb.se/resolve?urn=urn:nbn:se:hig:diva-19946.
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Connor, Krista. "Fresh Fruits and Vegetable Purchasing Patterns of Maine Senior Farmshare Participants." Fogler Library, University of Maine, 2006. http://www.library.umaine.edu/theses/pdf/ConnorK2006.pdf.
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Herrmann, Philipp [Verfasser]. "On consumer purchasing behavior in electronic markets : (Kumulative Dissertation) / Philipp Herrmann." Paderborn : Universitätsbibliothek, 2014. http://d-nb.info/1064647162/34.
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Ostrander, Joseph Bernard. "REGIONAL WINE REPUTATION: HOW IT INFLUENCES TRADE AND CONSUMER PURCHASING BEHAVIOR." DigitalCommons@CalPoly, 2015. https://digitalcommons.calpoly.edu/theses/1514.
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ABSTRACT
Regional Wine Reputation: How It Influences Trade
and Consumer Purchasing Behavior
Joseph Bernard Ostrander
What are wine trade buyers and wine consumers willing to pay for a bottle of wine based on the reputation of the grape growing region apart from existing corporate branding reputation, variety popularity, or accolades from industry periodicals and celebrity wine critics? Results from a previous study discovered how attitudes about place-of-origin influenced consumer perceptions regarding the quality associated with the wines from that region. Related research also looked at how wine prices depended on the quality associated with a wine region’s reputation when linked to older, and better known wine regions from different countries. The purpose of this research was to examine the attitudes of wine trade buyers and wine consumers to determine how much of an influence American Viticulture Areas (AVAs) have on their purchasing decisions.
A trade survey was conducted during November and December 2014 and sent via email to 1,778 wine trade contacts that were provided by a well-known winery in San Luis Obispo County. Final responses numbered 152 (8.5%) from trade businesses located in the U.S. The majority of participants were from Florida (24%) and California (22%), with 71% being on-premise sales channels while 29% were retail off-premise outlets.
Respondents to the trade survey were asked to rank eight different desirability factors about the wines they selected for resale. The two most desirable features indicated were: 1) Quality product; and 2) Reputation of wine region. However, the choice of wine From a well-known AVA, was only a somewhat to very desirable trait. This could suggest that the wine trade is either unaware or unsure of what an AVA is. Of the 152 wine trade respondents that were asked how often they make a decision to purchase one wine versus another based on where it was produced, 43% indicated they always, or very often do so. Moreover, 81% of the trade respondents indicated that a wine’s place-of-origin did influence their purchasing decision at least somewhat often.
A related survey involving 302 wine consumers was conducted in San Luis Obispo County during October 2014 and February 2015. Responses were collected outside selected grocery stores using the personal interview method. The survey demographics of those consumers that participated in the study were similar to the MRI+ statistics of domestic wine consumers, although there was a higher proportion of younger respondents in the current sample.
Wine consumers were also asked to rate six different features by desirability when making a decision to purchase wine. The two most desirable features indicated by respondents were: 1) Good value for quality; and 2) Varietal. However, wine selected From a respected region, was considered only a somewhat desirable trait. These findings were not surprising since 16% of the total consumers also indicated they did not know the place-of-origin of the wines they purchased. Likewise, 60% of consumers always, or very often Read the label to learn where the wine was produced, while only 38% indicated they always, or very often Make a decision to purchase one wine versus another based on where the wine was produced.
Results suggest that for the typical wine consumer the grape growing region is not an important factor when making a purchasing decision. Conversely, wine trade decision makers do consider a wine’s place-of-origin an important factor when they select wines for their restaurants, wine bar menus, and outlet shelves. Consequently, wine regions should prioritize efforts toward educating the wine trade by highlighting the quality of their area’s winegrowing practices.
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Bai, Xuan, and Liu Dongyan. "Car Purchasing Behavior in Beijing : - An Empirical Investigation." Thesis, Umeå University, Umeå School of Business, 2008. http://urn.kb.se/resolve?urn=urn:nbn:se:umu:diva-1833.
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<p>This study aims to give an overview on young Chinese consumers’ car purchase behavior. The results show that car purchasing decision is an important decision for most of Chinese. Consumers get information from different channels. The results of this study also tells us that Chinese consumers take “safety” as the most important characteristic and take “value for money” as the second most important and “riding comfort” as the third important characteristic. Chinese consumers take “after-sale maintenance” and “exterior design/size” as the forth most important factors when making the purchase decision. For “exterior design/size”, it indicates that Chinese people are status-seeking and Chinese people prefer to choose a bigger car with a good appearance (Mian Zi Che) to show their good social status and want to get respects from others. Chinese consumers put the least importance on resale value that is because second hand car market is not well developed in China.</p>
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Hardy, Jane P. "An Exploratory Field Study of Adolescent Consumer Behavior: The Family Purchasing Agent." Thesis, University of North Texas, 1989. https://digital.library.unt.edu/ark:/67531/metadc331907/.
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An exploratory field study was conducted to examine internal and external factors that influence adolescents' consumer behavior when serving as the family purchasing agents. Demographic, lifestyle, and marketing activities were examined to determine the influences that affect whether the adolescent will purchase the preferred family brands or other brands.
Participating adolescents were sent by their parents to the grocery store on two separate occasions to purchase four preselected grocery items. The brands purchased were recorded and compared to the preferred brand names provided by the parents.
While no statistical significance was found, occasional trends were observed. The analysis indicated that adolescents who experience a pluralistic family communication style will purchase products other than the preferred household brands. Adolescents who are exposed to television and radio tend to deviate more from the preferred family brands more often than do adolescents with less media exposure.
Adolescents who work are more likely to go to the grocery store more often for their families than do nonworking adolescents. Also, adolescents seem to possess a price sensitivity to both high and low-involvement grocery items.
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Wongdatengam, Siraporn, and Panjaporn Kruapanichwong. "Impact of Culture on Mobile Phone Purchasing A Comparison between Thai and Swedish Consumers." Thesis, Mälardalens högskola, Akademin för hållbar samhälls- och teknikutveckling, 2011. http://urn.kb.se/resolve?urn=urn:nbn:se:mdh:diva-12630.
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“Mobile phones as a communication technology fits into culture rather than imposes on a culture” (Xin, 2006).Therefore, the main purpose of this research was to investigate and to understand the impact national culture has on mobile phone buyer behaviour of Thai and Swedish consumers. The research was also conducted to identify whether there was a significant cultural difference of buying behaviour for these two cultures when purchasing mobile phones. Hofstede’s cultural dimensions (individualism/collectivism and power distance) was addressed in order to examine if culture influences Thai and Swedish consumers when purchasing a mobile phone. In order to examine the difference between Thai and Swedish consumers, a data analysis was conducted through the SPSS statistical program using an Independent Sample T-test and Pearson Correlations. The questionnaires were distributes to both Thai (70 sets) and Swedish (70sets) students in the University of Malardalen. The findings indicated that there is a significant difference between Thai and Swedish consumers in term of mobile phone purchasing behaviour as far as Hofstede’s cultural dimensions. A major contribution to this study is that it will provide an insight into the differences in culture between Swedish and Thai consumers, the Eastern and Western cultural divide and how culture influences mobile phone purchasing behaviour. The findings will also assist managers in mobile phone organizations to manage the dynamics of culture through time as well as to enhance their communications and promotional strategies within an overall marketing strategy. Incorporating culture into their overall marketing and communications strategies will enable organizations to meet customer needs and expectations, sustain and increase growth along with market share and to maximize profitability.
Books on the topic "Consumer behavior before purchasing"
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Sabavala, Darius J. Monitoring short-run changes in purchasing behaviour. INSEAD, 1991.
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Naumov, Vladimir. Consumer behavior. INFRA-M Academic Publishing LLC., 2020. http://dx.doi.org/10.12737/1014653.
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The book describes the basic issues concerning consumer behavior on the basis of the simulation of the decision-making process on buying behavior of customers in the sales area of the store and shopping Internet sites. 
 The classification of models of consumer behavior, based on research in the area of economic, social and psychological theories and empirical evidence regarding decision-making by consumers when purchasing the goods, including online stores. Methods of qualitative and quantitative research of consumer behavior, fundamentals of statistical processing of empirical data. 
 Attention is paid to the processes of consumers ' perception of brands (brands) and advertising messages, the basic rules for the display of goods (merchandising) and its impact on consumer decision, recommendations on the use of psychology of consumer behavior in personal sales.
 Presents an integrated model of consumer behavior in the Internet environment, the process of perception of the visitor of the company, the factors influencing consumer choice of goods online. 
 Is intended for preparation of bachelors in directions of preparation 38.03.02 "Management", 38.03.06 "trading business" and can be used for training of bachelors in direction of training 43.03.01 "Service", and will also be useful for professionals working in the field of marketing, distribution and sales.
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White, J. Michel. Buying your next car: How to stick it to the dealer before the dealer can stick it to you. Slingshot Books, 1990.
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Holmberg, Carina. Stores and consumers: Two perspectives on food purchasing. Stockholm School of Economics, 1996.
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author, Sreeranganadhan K., ed. Marketing strategies on the Indian gold ornament market: An empirical approach. Ashwin-Anoka Press, 2014.
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Grinblatt, Mark. Interpersonal effects in consumption: Evidence from the automobile purchases of neighbors. National Bureau of Economic Research, 2004.
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Geva, Aviva. Hitnahagut tsarkhanim: Haḥlaṭot ḳeniyah. ha-Universiṭah ha-petuḥah, 2012.
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Fogel, Yosef. Hitnahagut tsarkhanim. Miśrad ha-ḥinukh ṿeha-tarbut, ha-Minhal le-madaʻ ṿe-ṭekhnologyah, 2003.
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Geva, Aviva. Hitnahagut tsarkhanim: Ha-tsarkhan bi-sevivato. ha-Universiṭah ha-petuḥah, 2015.
Find full textBook chapters on the topic "Consumer behavior before purchasing"
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Chapa, Sindy, and Monica D. Hernandez. "Modeling the Indicators of Purchasing Behavior Toward Counterfeits." In Global Consumer Behavior. John Wiley & Sons, Inc., 2013. http://dx.doi.org/10.1002/9781118614877.ch13.
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Pourmahdi, Katayoon, Anna-Greta Nyström, and Amin Majd. "Machine Learning Promoting Sustainable Customer Behavior and Product Pricing." In Technology, Work and Globalization. Springer Nature Switzerland, 2025. https://doi.org/10.1007/978-3-031-74779-3_11.
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Abstract The emergence of sustainability concerns has significantly influenced company strategies. The growing importance of sustainability is particularly affecting marketing, especially product-line pricing strategies. Companies are being coerced into integrating sustainability goals and eco-friendly practices into their current operations; practices which also entail pricing strategies. Proposing optimal pricing strategies according to customer-perceived prices, to maximize sales optimization, has thus gained increased attention from both practitioners and scholars. This chapter explores sustainable consumer behavior and aims to investigate how organizations influence sustainable consumption through a pricing strategy that relies on descriptive and predictive analytics using machine learning methods. More precisely, the focus of this chapter is to provide a comprehensive overview of factors affecting sustainable consumer behavior and the role of price by using descriptive analytic methods (data summarization and visualization) and predictive analytic methods (logistic regression) as tools. Our empirical context features a Nordic retail conglomerate and covers data on sustainable consumer behavior from 2019 to 2024, to which descriptive and predictive analytics using machine learning methods are applied. We conclude the chapter by discussing how retailers can analyze and predict their customers’ purchasing behavior regarding choosing sustainable products over substituting ones.
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Eroglu, Sertac, and Nihan Tomris Kucun. "Traditional Market Research and Neuromarketing Research." In Advances in Marketing, Customer Relationship Management, and E-Services. IGI Global, 2020. http://dx.doi.org/10.4018/978-1-7998-3126-6.ch008.
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Marketing research, dedicated to comprehending consumer behavior and purchasing practice, comprises methodical gathering, analysis, and interpretation of related data. Since the understanding of consumer behavior is a comprehensive and complicated task, the contemporary marketing studies argue that traditional marketing research should be supported by neuromarketing methods to explore consumers' psychology, motivation, and behavior. In this chapter, the advantages and disadvantages of traditional marketing and neuromarketing research methodologies and the differences between them are discussed. The traditional market research methods are explained through their qualitative and quantitative dimensions. The most commonly used grouping scheme of techniques in neuromarketing research is presented, namely, neurometric, biometric, and psychometric techniques. The marketing research supported by neuromarketing approaches enables us to look at the consumers' mind as closely as we have never experienced before and opens up new horizons in understanding consumer and marketing relationship.
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Chakraverty, Aishwarrya, and Deepesh Mandal. "Role of Consumer Mood Analysis in Buying Guitars." In Advances in Marketing, Customer Relationship Management, and E-Services. IGI Global, 2019. http://dx.doi.org/10.4018/978-1-5225-5690-9.ch003.
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This chapter explores consumer engagement, brand/category recall of the target audience by utilizing the mind and mood analysis method. What really goes into the decision-making process by the consumers before making a choice in the market which is full of clutter in its space has been the sole purpose of this research paper. The arduous work involved processes to find out the consumer buying behavior of guitars by semi-professionals and professionals at Indian semi-metro cities. With the growing numbers of offline and online stores, consumers are spoilt for choices when it comes to purchasing the desired products. The innovative world and various brands of products make it difficult for a consumer to make a buying decision. The authors aimed to throw some light into how such decisions are made by choosing a target audience and one of the most popular musical instruments, guitars, by using some invigorating techniques which have been discussed in this research paper.
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Mittal, Tania, Pankaj Madan, Kirti Sharma, and Aditya Dhiman. "Delineate Omnichannel Retailer and Consumer Engagement on Social Networks." In Empirical Research for Futuristic E-Commerce Systems. IGI Global, 2022. http://dx.doi.org/10.4018/978-1-6684-4969-1.ch015.
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Customers are riding a wave of social media growth, transforming the customer's journey to purchase and aspire to go social. Social networking is the driving factor behind the evolution of retail and customer behavior. Today's retailers' widespread usage of social media as a marketing strategy has never been seen before. The omnichannel market has been addressed in Marketing 4.0 as a brand commitment approach where retailers incorporate omnichannel retail through social networks in the consumer purchasing route (5 A's: be aware, appeal, ask, act, and advocate). Omnichannel retailing convergence is a transition rather than a change that has a pronounced effect on consumers and retailers. The omnichannel market is a process of combining various platforms to provide a smooth and reliable consumer experience. This chapter discusses how technology serves as propulsion and gives a significant impetus to social networks for omni-retailing in the coming years in India. It also discusses how network integration differs depending on geography and product segment.
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Fill, Chris, and Scot McKee. "Organisational Buying Behaviour." In Business Marketing: The Theory and Practice of B2B. Goodfellow Publishers, 2011. http://dx.doi.org/10.23912/978-1-906884-54-3-1760.
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This chapter introduces traditional views about organisational buying behaviour, before progressing to consider the importance of relationships and the contribution that systems and technology have made to this aspect of business marketing. The chapter starts with a comparison of the main characteristics associated with both consumer and organisational purchasing behaviour. Then, following an examination of the decision making unit and the decision making processes generally assumed to be adopted by organisations, the focus moves to reflect upon the different influences that can impact on an organisation’s purchasing activities. The last section looks at the nature of uncertainty and the way in which organisations attempt to reduce buyer-perceived risk. It ends by examining how relationships between buyers and sellers can evolve and affect the purchasing behaviour of organisations.
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Khan, Arbaaz, and Dr Mohd Sarwar Rahman. "ANALYZING CONSUMER BEHAVIOR IN THE INDIAN FINANCIAL MARKET: A COMPREHENSIVE STUDY OF OPTIONS TRADING FUNDAMENTALS." In ECONOMIC, SOCIAL, AND TECHNOLOGICAL DYNAMICS IN CONTEMPORARY INDIA. NOBLE SCIENCE PRESS, 2023. http://dx.doi.org/10.52458/9789388996969.nsp2023.eb.ch-11.
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The chapter "Introduction to Options Trading" gives a basic overview of options trading, covering key concepts such as the definition of options, calls vs. puts, the underlying asset, option types (American vs. European, exotic), and key terminology (strike price, expiration date, premium, in-the-money, at-the-money, out-of-the-money). It goes over the functions of options in speculation, hedging, and income creation, with an emphasis on risk and reward profiles for purchasing and selling options. The chapter also discusses trading methods, such as reading option chains, as well as regulatory issues surrounding options exchanges and account approval in India. It emphasises the significance of understanding options fundamentals before implementing advanced methods and understands the inherent hazards of option trading.
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Yu, Li, Sang-Binge Tsai, Dakai Li, Limei Teng, and Guodong Li. "A Research of the Influence on the Consumer Behavior From CSR Information Embedded in the Process of Online Purchasing." In Advances in Environmental Engineering and Green Technologies. IGI Global, 2018. http://dx.doi.org/10.4018/978-1-5225-3537-9.ch007.
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As the online purchasing is becoming prevalent, more and more corporates started to show their CSR information in the processes of online retail. For example: some CSR information could be showed in the “COMMODITY DETAILS”. Could this kind of information affect consumer behavior? By recognizing three types of embedded CSRC information, according to the consumer behavior experiments, this paper will show CSR's influences on the consumer behavior such as evaluation of the company, purchasing intention, and purchasing intention. By the comparison of the results after three types' CSR communication, we found that CSR information could significantly affect consumer behavior and the consumer response will differ from different types of CSR information embedded.
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Yu, Li, Sang-Binge Tsai, Dakai Li, Limei Teng, and Guodong Li. "A Research of the Influence on the Consumer Behavior From CSR Information Embedded in the Process of Online Purchasing." In Corporate Social Responsibility. IGI Global, 2019. http://dx.doi.org/10.4018/978-1-5225-6192-7.ch081.
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As the online purchasing is becoming prevalent, more and more corporates started to show their CSR information in the processes of online retail. For example: some CSR information could be showed in the “COMMODITY DETAILS”. Could this kind of information affect consumer behavior? By recognizing three types of embedded CSRC information, according to the consumer behavior experiments, this paper will show CSR's influences on the consumer behavior such as evaluation of the company, purchasing intention, and purchasing intention. By the comparison of the results after three types' CSR communication, we found that CSR information could significantly affect consumer behavior and the consumer response will differ from different types of CSR information embedded.
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Yeboah, Elizabeth, and Bolormaa Khongorzul. "Conscious consumption in clothing : How to increase the awareness of conscious consumption." In Shape the future together! : IV. BBS International Sustainability Student Conference Proceeding. Budapesti Gazdasági Egyetem, 2022. http://dx.doi.org/10.29180/9786156342218_8.
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This research paper considers ethical behavior which is depicted as conscious consumption in the clothing industry. Conscious consumption is the social movement based on the increased awareness of how conscious purchasing and consumption effect society at large. It is concerned with the impact of purchasing decisions by consumers on the environment and the economy. This paper discusses the level of awareness of conscious consumption amongst people, the amount of sustainability in clothing companies, does not consider sustainability in other industries (food, road, etc.). There is previous study entitled “Consumers’ Attitudes towards Sustainability and Sustainable Labels in the Fashion Industry” by Lina Forsman and Denise Madsen in 2017, which has been done by qualitative method between Generation Y . However, this research paper has done quantitative survey between mostly generation Z. We noticed less consciousness on the part of consumers in the garment industry in a quantitative method by the survey of 44 people undertaken and as forecasted candidates revealed they do not take into consideration the sustainability of a company before purchasing the clothes. The reason behind this behavior is the deficiency of information about the concept. This text offers empirical research on how consumers can assist in achieving sustainability through their conscious purchasing. It adds on how individual consumers are more interested in the prices than the sustainability of a good. This paper outlines some practical suggestions that consumers should be more conscious of the usage of certain garments and the impact of their purchasing decisions on the environment and the economy. This paper is purposed to change the mindset of people into being more conscious about what they are consuming and being more environmentally friendly.
Conference papers on the topic "Consumer behavior before purchasing"
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M, Lilly Florence, T. Varun, S. Senthilkumar, N. Sheeba Florence, Sudeshna Seal, and Sangeetha S. "Consumer Behavior and Satisfaction Rate in Social Media Purchasing Ads Using Radial Basis Function Networks (RBFNS) Based BAT Algorithm." In 2025 International Conference on Automation and Computation (AUTOCOM). IEEE, 2025. https://doi.org/10.1109/autocom64127.2025.10956732.
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Ouyang, Jiali, and Raslapat Suteeca. "The Analysis of Consumer Preferences and Purchasing Behavior of Thai Herbal Products in the Chinese Market of Gold Mint Products Co., Ltd." In 2025 Joint International Conference on Digital Arts, Media and Technology with ECTI Northern Section Conference on Electrical, Electronics, Computer and Telecommunications Engineering (ECTI DAMT & NCON). IEEE, 2025. https://doi.org/10.1109/ectidamtncon64748.2025.10961975.
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Kamaruddin, Nur Nadira Izlyn, Azlinah Mohamed, and Syaripah Ruzaini Syed Aris. "Online Advertising on Consumer Purchasing Behavior." In NISS2020: The 3rd International Conference on Networking, Information Systems & Security. ACM, 2020. http://dx.doi.org/10.1145/3386723.3387854.
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Fedorcea, Nadejda. "Peculiarities of flooring purchasing behavior." In Simpozion Ştiinţific al Tinerilor Cercetători. Ediţia a 22-a. Academy of Economic Studies, 2025. https://doi.org/10.53486/sstc2024.v1.34.
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Understanding consumer behavior in the flooring industry enables the development of suitable products. The aim of this research is to investigate the factors influencing consumers' flooring purchase decisions and to identify recent trends in this field. The research methods used included both qualitative analyses, through personal observations and documntation, and quantitative analyses, through questionnaires and relevant statistical data. The results highlight that factors such as durability, aesthetics, cost, and sustainability are among the most important considerations for consumers in the flooring purchase process. Additionally, there has been an increase in interest in eco-friendly materials and personalized products, reflecting a shift in consumer preferences towards more sustainable options tailored to individual needs. These findings provide a solid foundation for the development and implementation of effective marketing strategies in the flooring industry, aiming to meet the continuously changing demands of consumers and maintain a competitive advantage in an increasingly dynamic and complex commercial environment.
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Završnik, Bruno. "Consumer behavior for buying clothes." In 7th International Scientific Conference Contemporary Trends and Innovations in Textile Industry – CT&ITI 2024. Union of Engineers and Technicians of Serbia, Belgrade, 2024. http://dx.doi.org/10.5937/ct_iti24049z.
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The clothing industry is highly competitive, with rapidly changing trends, diverse customer preferences, and intense market competition. Therefore, gaining insight into consumer behavior in this specific area becomes essential for apparel retailers who want to create successful business strategies. Understanding the motivations, preferences and patterns of consumer behavior is crucial for market orientation and the creation of effective marketing strategies that will meet customer expectations and at the same time increase the competitive advantage of clothing stores on the market. The basic purpose of our research was to determine the most important factors that influence the purchasing decision of consumers, the influence of fashion trends and influencers, the choice of clothing stores and the choices of online and physical stores.
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Kuramoto, Kaoru, Yosuke Kurihara, and Satoshi Kumagai. "CONSUMER PURCHASING BEHAVIOR ANALYSIS USING CVS POS DATA." In 53rd International Academic Conference, Dubai. International Institute of Social and Economic Sciences, 2020. http://dx.doi.org/10.20472/iac.2020.053.010.
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V, Vimalnath, Gururaj Phatak, Pushpa Hongal, Vishal Kumar R, Varsha Agarwal, and Guruprasad Ramakrishna Naik. "Factors Influencing Consumer Purchasing Behavior Regarding Luxury Brands." In The First Pamir Transboundary Conference for Sustainable Societies- | PAMIR. SCITEPRESS - Science and Technology Publications, 2023. http://dx.doi.org/10.5220/0012526600003792.
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Shayaa, Shahid, Mohammed Ali Al-Garadi, Arsalan Zahid Piprani, Muhammad Ashraf, and Ainin Sulaiman. "Social Media Sentiment Analysis of Consumer Purchasing Behavior vs Consumer Confidence Index." In the International Conference. ACM Press, 2017. http://dx.doi.org/10.1145/3175684.3175712.
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Haziri, Fortesa, Lulzim Shabani, and Miloslava Chovancova. "Customer game experience impact on gamification and online purchasing." In Contemporary Issues in Business, Management and Economics Engineering. Vilnius Gediminas Technical University, 2019. http://dx.doi.org/10.3846/cibmee.2019.078.
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PPurpose – the purpose of the current research was to investigate the influence of the experience of players and no-players on their purchasing behavior in a gamified purchasing setting. Research methodology – PLS-SEM has been employed to investigate the effect of gaming on consumer behavior and analyze the data gathered via the questionnaire distributed online. Findings – unlike studies in different domains, where the positive impact of game experience in a gamified learning environment and purchasing intention towards gamified products has been highlighted, the results of this research reveal the irrelevance of game experience in online purchasing behavior. Research limitations – firstly, no comparison has been made concerning the differences between board-games and online games. Secondly, the length of time spent playing has not been analyzed. Lastly, the research does not offer any insight regarding the country, nor compare online and offline buying behavior. Practical implications – eventually, game experience needlessly impacts the purchasing process in a gamified setting. Game design, personality, characteristics, cultural background and other attributes of the participants are an important caveat. Originality/Value – the research reveals stimulating results for scholars in the field of gamification, game elements, consumer behavior, and online purchasing
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BÎRSAN, Alina-Nicoleta, Raluca-Elena GHINEA, Robert-Andrei COSTACHE, and Cristina STATE. "PANDEMIC CONSUMER – HOW THE PANDEMIC CHANGED OUR BUYING HABITS: ROMANIAN EXAMPLE." In International Management Conference. Editura ASE, 2022. http://dx.doi.org/10.24818/imc/2021/01.11.
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Romanian economy has been, for almost two decades now, based on consumption. Thus, private consumption has become a vital element in supporting national economy and everyday life, with peaks and lows. Numerous studies have documented the Romanian consumer’s behaviour and purchasing trends, concluding that Romanians are more than just customers, rather “patients”. Big retail chains have become "the main cause" for their illness, called consumerism. Before the pandemic, Romanian customers chose to acquire goods that they did not need, just because they were trending or because it brought them a boost of image within their social group. On the other hand, from the point of view of sales targets and other economic indicators, that retailers use to build their strategies upon, it can be understood how this “disease” is increasing, transforming consumerism into a real national (with international reach) pandemic. The profit of large retail companies has shown that in peacetime (without war, cataclysms, or other adverse events), retail companies know how to manage their business and, above all, understand how to influence buyer behaviour. Under Covid pandemic threats potential customers’ access to physical premises had been restricted, therefore retail companies swiftly adapted to the Governmentally influenced change of buying patterns by increasing online accessibility. We have investigated through a quantitative analysis how pandemic procurement and consumption trends varied under these circumstances. Our research showed results that we found easy to predict, but difficult to explain from an economic point of view, mainly due to the psychological impact external factors played in general economy.
Reports on the topic "Consumer behavior before purchasing"
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Ganeshalingam, Mohan, Robert Hosbach, Liat Zavodivker, Brian Gerke, Colleen Kantner, and Hannah Stratton. Consumer Purchasing Behavior and Usage of Lighting in the Residential Sector. Office of Scientific and Technical Information (OSTI), 2023. http://dx.doi.org/10.2172/1907806.
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Islam, Muhammad Azizul, Pamela Abbott, Shamima Haque, and Fiona Gooch. Impact of Global Clothing Retailers' Unfair Practices on Bangladeshi Suppliers During Covid-19. University of Aberdeen, 2023. http://dx.doi.org/10.57064/2164/19814.
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Based on a survey of 1,000 Bangladeshi factories/suppliers1 producing clothes for global fashion brands and retailers, this research highlights reports of unfair trading practices encountered by manufacturers during Covid-19. Suppliers reported that retailers/brands cancelled orders, refused to pay for goods dispatched/in-process and demanded a reduction in price for orders already placed before March 2020. Since then, they further pressured the suppliers to reduce prices. Suppliers reported that in December 2021, despite the rising costs of inputs and the additional costs of Covid-19 mitigation measures, 70% of brands/retailers were still buying garments at similar prices to those in March 2020 from at least some of their suppliers. More than 50% of factories reported at least one of the following four unfair practices by brands/ retailers: cancellation of orders, price reduction, refusal to pay for goods dispatched/in production and delaying payment of invoices. Such unfair trading practices impacted suppliers’ employment practices resulting in worker turnover, loss of jobs and lower wages. Importantly, one in five factories reported that they had struggled to pay the Bangladeshi legal minimum wages since the factories had reopened following the March and April 2020 lockdown. We recommend countries with large consumer markets where global retailers and brands sell their clothes legislate to curb unfair purchasing practices by outlawing them and appointing an adjudicator or a fashion watchdog. This would ensure that buyers/retailers cannot dump disproportionate and inappropriate risks onto their suppliers and that retailers and brands conform to the norms of fair commercial practices.
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Financial Stability Report - Second Half of 2022. Banco de la República, 2023. http://dx.doi.org/10.32468/rept-estab-fin.sem2.eng-2022.
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Banco de la República’s main goal is to preserve the purchasing power of the currency in coordination with the general economic policy that is intended to stabilize output and employment at long-term sustainable levels. Properly meeting the goal assigned to the Bank by the 1991 Constitution critically depends on preserving financial stability. This is understood to be a general condition in which the financial system evaluates and manages the financial risks in a way that facilitates the suitable performance of the economy and efficient allocation of resources while, at the same time, it is able to absorb, dissipate, and mitigate the appearance of risks that may arise as a result of adverse events. This Financial Stability Report meets the goal of giving Banco de la República’s diagnosis of the financial system’s and its debtors’ recent performance as well as of the main risks and vulnerabilities that could affect the stability of the Colombian economy. The Report is intended to inform the public and the participants in the financial markets about the trends and risks affecting the system and it also intends to promote public debate on this subject. The results presented here also serve as a basis for the monetary authority to assess the effects and risks of monetary policy at the current situation and to adopt measures under its purview to promote financial stability. The analysis presented in this edition of the Report leads to the conclusion that there has been a strong credit trend in Colombia in the last few months that is consistent with the strength of economic activity. Credit continues to grow (in all its categories and especially in consumer loans) while past-due and risky loans continue to decline for the aggregate portfolio. In general terms, the favorable performance of credit establishments (CIs) in a context of tighter financial conditions and greater volatility in financial markets continues to reflect the soundness and stability of the Colombian financial system. In spite of exhibiting a recent decline, CIs are keeping liquidity and capital adequacy indicators well above the regulatory minimums. Its aggregate profitability, in turn, returned to the levels seen before the pandemic shock and showed a positive performance in financial intermediation activities. With respect to non-bank financial institutions, the recent volatility of the financial markets has led to reductions in their level of assets due to the devaluations in their investment portfolios. This has been reflected mainly in reduced profitability for Trust Companies (TC) and Pension Fund Managers (PFM). In line with the positive performance of economic activity in 2021 and so far in 2022, the rapid surge in household loans in Colombia, especially consumer loans together with the high levels of household debt to disposable income ratio is still considered a source of vulnerability for the stability of the Colombian financial system just as it was in the previous edition of this Report (see section 2.2.2). In addition, given the large current account deficit and the foreign financing needs, the exposure of the Colombian economy and financial institutions to changes in financial conditions persists in a global environment of high uncertainty. In any case, the results presented in this Report indicate that the financial system has shown to be resilient to the materialization of adverse scenarios (see Chapter 3). In compliance with its constitutional objectives and in coordination with the financial system’s security network, Banco de la República will continue to closely monitor the financial stability outlook at this juncture and will make the necessary decisions to ensure the proper functioning of the economy, facilitate the sufficient flow of credit and liquidity resources, and promote the smooth functioning of the payment system. Box 1: Insurance Industry Performance During the Covid-19 Pandemic - Financial Stability Report, Second Half of 2022. Gualtero-Briceño, Daniela and Pirateque-Niño, Javier Eliecer Box 2: Recent Trends in the Financial Position of Households - Financial Stability Report, Second Half of 2022. Gómez-Molina, Andrés Camilo; Mariño-Martínez, Juan Sebastián and Osorio-Rodríguez, Daniel Box 3: A Description of the Foreign Exchange Risk of Real Sector Firms in Colombia in 2021 - Financial Stability Report, Second Half of 2022. Carmona-Duarte, Alvaro; Martinez-Osorio, Adrian and Niño-Cuervo, Jorge Jorge Niño
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Monetary Policy Report, October 2023. Banco de la República, 2023. http://dx.doi.org/10.32468/inf-pol-mont-eng.tr4-2023.
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Inflation has decreased since April, and it is projected to continue to reduce significantly throughout 2024 as it converges toward 3%. In September 2023, the headline annual inflation rate was 10.99% and completed six consecutive months of declines. Core inflation, excluding food and regulated items, has experienced three consecutive months of reductions and currently stands at 9.5%. The reduction in inflation has been slower than the projected by the Central Bank and market analysts, primarily due to: More persistent price increases in services and regulated baskets, which are affected by indexation mechanisms of past inflation and minimum wage. Increases in some prices of perishable food items. Going forward, monetary policy actions will continue contributing to inflation reduction in 2024 and its convergence toward the 3% target during 2025. Projections for 2024 consider the impact of the El Niño with moderate effects on food and energy prices, the implementation of healthy taxes, and necessary adjustments in fuel prices. Economic activity and employment continue to grow, with a projected GDP growth of 1.2% for 2023. The economic slowdown this year allows economic activity and consumption and investment expenditures to align with the long-term productive capacity of the economy, contributing to inflation reduction. For the third quarter, available economic indicators suggest an annual GDP growth of 0.4%. Despite the low growth rate, economic activity would maintain the high levels achieved in the first half of the year. Employment continues to grow in most economic sectors, and the unemployment rate remains historically low. The economic slowdown has been milder than the projected by the Central Bank, resulting in an upward revision of the 2023 growth rate from 0.9% to 1.2%. For 2024, the economy is expected to maintain a slow growth pace (0.8%), contributing to the inflation convergence to the target. Private consumption will adjust, while investment levels will remain lower than before the pandemic. In 2025, the economy is expected to return to growth rates close to those sustainable in the long-term. These adjustments in the economy are reflected in a reduction of the current account deficit and less vulnerability to external conditions changes. The policy interest rate remains at 13.25%, currently appropriate level to consolidate inflation reduction toward the 3% target and to foster sustainable economic growth. In the September and October meetings of 2023, the Board of Directors, by majority, decided to keep the interest rate unchanged at 13.25%. The current monetary policy stance is driven by persistent high inflation, forecasts and expectations of inflation exceeding the 3% target, and with levels of economic activity close to its productive capacity. The Bank will continue to monitor the economy and its key risks to make decisions that are in the best interest of the country. Some important risk factors to watch in the coming months include: El Niño phenomenon evolution, which may result in additional impacts on inflation. Wage adjustments that will be determined in the coming months. The persistence of higher price increases, particularly, in the services sub-basket. The behavior of global short and long-term interest rates that may affect the exchange rate. The economic slowdown. Reducing inflation brings multiple benefits to the economy: Reducing inflation toward the target supports the preservation of wage purchasing power. Low and stable inflation prevents regressive income and wealth redistributions. In particular, low-income individuals and the unemployed have fewer mechanisms to shield themselves from the eroding impact of inflation on their income and savings. When inflation is low, it becomes more predictable and facilitates the development and continuity of long-term financing markets (such as TES and mortgages), enabling the financing of government, corporate, and household investment projects. Additionally, when inflation is low, real interest rates are lower, making it more affordable to finance these projects. When inflation is low and stable, price movements of goods and services are more informative about the sectors in which it is most valuable to increase production. This leads to a better sectoral allocation of capital and labor and, therefore, to raising the total productivity of the economy.
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Monetary Policy Report - October 2022. Banco de la República Colombia, 2022. http://dx.doi.org/10.32468/inf-pol-mont-eng.tr4-2022.
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1.1 Macroeconomic summary In September, headline inflation (11.4% annually) and the average of core inflation indicators (8.6% annually) continued on a rising trend, and higher increases than expected were recorded. Forecasts increased again, and inflation expectations remained above 3%. Inflationary surprises in the third quarter were significant and widespread, and they are the result of several shocks. On the one hand, international cost and price shocks, which have mainly affected goods and foods, continue to exert upwards pressure on national inflation. In addition to these external supply shocks, domestic supply shocks have also affected foods. On the other hand, the strong recovery of aggregate demand, especially for private consumption and for machinery and equipment, as well as a higher accumulated depreciation of the Colombian peso and its pass-through to domestic prices also explain the rise in inflation. Indexation also contributes, both through the Consumer Price Index (CPI) and through the Producer Price Index (PPI), which continues to have a significant impact on electricity prices and, to a lesser degree, on other public utilities and rent. In comparison with July’s report, the new forecast trajectory for headline and core inflation (excluding food and regulated items) is higher in the forecast horizon, mainly due to exchange rate pressures, higher excess demand, and indexation at higher inflation rates, but it maintains a trend of convergence towards the target. In the case of food, a good domestic supply of perishable foods and some moderation in international processed food prices are still expected. However, the technical staff estimates higher pressures on this group’s prices from labor costs, raw material prices, and exchange rates. In terms of the CPI for regulated items, the new forecast supposes reductions in electricity prices at the end of the year, but the effects of indexation at higher inflation rates and the expected rises in fuel prices would continue to push this CPI group. Therefore, the new projection suggests that, in December, inflation would reach 11.3% and would decrease throughout 2023 and 2024, closing the year at 7.1% and 3.5%, respectively. These forecasts have a high level of uncertainty, due especially to the future behavior of international financial conditions, external price and cost shocks, the persistence of depreciation of the Colombian peso, the pace of adjustment of domestic demand, the indexation degree of nominal contracts, and the decisions that would be made regarding domestic fuel and electricity prices. Economic activity continues to surprise on the upside, and the projection of growth for 2022 rose from 6.9% to 7.9% but lowered for 2023 from 1.1% to 0.5%. Thus, excess demand is higher than estimated in the previous report, and it would diminish in 2023. Economic growth in the second quarterwas higher than estimated in July due to stronger domestic demand, mainly because of private consumption. Economic activity indicators for the third quarter suggest that the GDP would stay at a high level, above its potential, with an annual change of 6.4%, and 0.6% higher than observed in the second quarter. Nevertheless, these numbers reflect deceleration in its quarterly and annual growth. Domestic demand would show similar behavior, with a high value, higher than that of output. This can be explained partly by the strong behavior of private consumption and investment in machinery and equipment. In the third quarter, investment in construction would have continued with mediocre performance, which would still place it at levels lower than those observed before the pandemic. The trade deficit would have widened due to high imports with a stronger trend than that for exports. It is expected that, in the forecast horizon, consumption would decrease from its current high levels, partly as a consequence of tighter domestic financial conditions, lower repressed demand, higher exchange rate pressures on imported goods prices, and the deterioration of actual income due to the rise in inflation. Investment would continue to lag behind, without reaching the levels observed before the pandemic, in a context of high financing costs and high uncertainty. A lower projected behavior in domestic demand and the high levels of prices for oil and other basic goods that the country exports would be reflected in a reduction in the trade deficit. Due to all of this, economic growth for all of 2022, 2023, and 2024 would be 7.9%, 0.5%, and 1.3%, respectively. Expected excess demand (measured via the output gap) is estimated to be higher than contemplated in the previous report; it would diminish in 2023 and could turn negative in 2024. These estimates remain subject to a high degree of uncertainty related to global political tension, a rise in international interest rates, and the effects of this rise on demand and financial conditions abroad. In the domestic context, the evolution of fiscal policy as well as future measures regarding economic policy and their possible effects on macroeconomic imbalances in the country, among others, are factors that generate uncertainty and affect risk premia, the exchange rate, investment, and the country’s economic activity. Interest rates at several of the world’s main central banks continue to rise, some at a pace higher than expected by the market. This is in response to the high levels of inflation and their inflation expectations, which continue to exceed the targets. Thus, global growth projections are still being moderated, risk premia have risen, and the dollar continues to gain strength against other main currencies. International pressures on global inflation have heightened. In the United States, core inflation has not receded, pressured by the behavior of the CPI for services and a tight labor market. Consequently, the U.S. Federal Reserve continued to increase the policy interest rate at a strong pace. This rate is expected to now reach higher levels than projected in the previous quarter. Other developed and emerging economies have also increased their policy interest rates. Thus, international financial conditions have tightened significantly, which reflects in a widespread strengthening of the dollar, increases in worldwide risk premia, and the devaluation of risky assets. Recently, these effects have been stronger in Colombia than in the majority of its peers in the region. Considering all of the aforementioned, the technical staff of the bank increased its assumption regarding the U.S. Federal Reserve’s interest rate, reduced the country’s external demand growth forecast, and raised the projected trajectory for the risk premium. The latter remains elevated at higher levels than its historical average, within a context of high local uncertainty and of extensive financing needs from the foreign sector and the public sector. All of this results in higher inflationary pressures associated to the depreciation of the Colombian peso. The uncertainty regarding external forecasts and its impact on the country remain elevated, given the unforeseeable evolution of the conflict between Russia and Ukraine, of geopolitical tensions, and of the tightening of external financial conditions, among others. A macroeconomic context of high inflation, inflation expectations and forecasts above 3%, and a positive output gap suggests the need for contractionary monetary policy, compatible with the macroeconomic adjustment necessary to eliminate excess demand, mitigate the risk of unanchoring in inflation expectations, and guarantee convergence of inflation at the target. In comparison with the July report forecasts, domestic demand has been more dynamic, with a higher observed output level that surpasses the economy’s productive capacity. Headline and core inflation have registered surprising rises, associated with the effects of domestic and external price shocks that were more persistent than anticipated, with excess demand and indexation processes in some CPI groups. The country’s risk premium and the observed and expected international interest rates increased. As a consequence of this, inflationary pressures from the exchange rate rose, and in this report, the probability of the neutral real interest rate being higher than estimated increased. In general, inflation expectations for all terms and the bank’s technical staff inflation forecast for 2023 increased again and continue to stray from 3%. All of the aforementioned elevated the risk of unanchoring inflation expectations and could heighten widespread indexation processes that push inflation away from the target for a longer time. In this context, it is necessary to consolidate a contractionary monetary policy that tends towards convergence of inflation at the target in the forecast horizon and towards the reduction of excess demand in order to guarantee a sustainable output level trajectory. 1.2 Monetary policy decision In its September and October of 2022 meetings, Banco de la República’s Board of Directors (BDBR) decided to continue adjusting its monetary policy. In September, the BDBR decided by a majority vote to raise the monetary policy interest rate by 100 basis points (bps), and in its October meeting, unanimously, by 100bps. Therefore, the rate is at 11.0%. Boxes 1 Food inflation: a comparison with other countries
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Monetary Policy Report - January 2023. Banco de la República, 2023. http://dx.doi.org/10.32468/inf-pol-mont-eng.tr1-2023.
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1. Macroeconomic Summary In December, headline inflation (13.1%) and the average of the core inflation measures (10.3%) continued to trend upward, posting higher rates than those estimated by the Central Bank's technical staff and surpassing the market average. Inflation expectations for all terms exceeded the 3.0% target. In that month, every major group in the Consumer Price Index (CPI) registered higher-than-estimated increases, and the diffusion indicators continued to show generalized price hikes. Accumulated exchange rate pressures on prices, indexation to high inflation rates, and several food supply shocks would explain, in part, the acceleration in inflation. All of this is in a context of significant surplus demand, a tight labor market, and inflation expectations at different terms that exceed the 3.0% target. Compared to the October edition of the Monetary Policy Report, the forecast path for headline and core inflation (excluding food and regulated items: EFR) increased (Graphs 1.1 and 1.2), reflecting heightened accumulated exchange rate pressures, price indexation to a higher inflation rate (CPI and the producer price index: PPI), and the rise in labor costs attributed to a larger-than-estimated adjustment in the minimum wage. Nevertheless, headline inflation is expected to begin to ease by early 2023, although from a higher level than had been estimated in October. This would be supported initially by the slowdown forecast for the food CPI due to a high base of comparison, the end anticipated for the shocks that have affected the prices of these products, and the estimated improvement in external and domestic supply in this sector. In turn, the deterioration in real household income because of high inflation and the end of the effects of pent-up demand, plus tighter external and domestic financial conditions would contribute to diluting surplus demand in 2023 and reducing inflation. By the end of 2023, both headline and core (EFR) inflation would reach 8.7% and would be 3.5% and 3.8%, respectively, by December 2024. These forecasts are subject to a great deal of uncertainty, especially concerning the future behavior of international financial conditions, the evolution of the exchange rate, the pace of adjustment in domestic demand, the extent of indexation of nominal contracts, and the decisions taken regarding the domestic price of fuel and electricity. In the third quarter, economic activity surprised again on the upside and the growth projection for 2022 rose to 8.0% (previously 7.9%). However, it declined to 0.2% for 2023 (previously 0.5%). With this, surplus demand continues to be significant and is still expected to weaken during the current year. Annual economic growth in the third quarter (7.1 % SCA)1 was higher than estimated in October (6.4 % SCA), given stronger domestic demand specifically because of higher-than-expected investment. Private consumption fell from the high level witnessed a quarter earlier and net exports registered a more negative contribution than anticipated. For the fourth quarter, economic activity indicators suggest that gross domestic product (GDP) would have remained high and at a level similar to that observed in the third quarter, with an annual variation of 4.1%. Domestic demand would have slowed in annual terms, although at levels that would have remained above those for output, mainly because of considerable private consumption. Investment would have declined slightly to a value like the average observed in 2019. The real trade deficit would have decreased due to a drop in imports that was more pronounced than the estimated decline in exports. On the forecast horizon, consumption is expected to decline from current elevated levels, partly because of tighter domestic financial conditions and a deterioration in real income due to high inflation. Investment would also weaken and return to levels below those seen before the pandemic. In real terms, the trade deficit would narrow due to a lower momentum projection for domestic demand and higher cumulative real depreciation. In sum, economic growth for all of 2022, 2023, and 2024 would stand at 8.0%, 0.2% and 1.0%, respectively (Graph 1.3). Surplus demand remains high (as measured by the output gap) and is expected to decline in 2023 and could turn negative in 2024 (Graph 1.4). Although the macroeconomic forecast includes a marked slowdown in the economy, an even greater adjustment in domestic absorption cannot be ruled out due to the cumulative effects of tighter external and domestic financial conditions, among other reasons. These estimates continue to be subject to a high degree of uncertainty, which is associated with factors such as global political tensions, changes in international interest rates and their effects on external demand, global risk aversion, the effects of the approved tax reform, the possible impact of reforms announced for this year (pension, health, and labor reforms, among others), and future measures regarding hydrocarbon production. In 2022, the current account deficit would have been high (6.3 % of GDP), but it would be corrected significantly in 2023 (to 3.9 % of GDP) given the expected slowdown in domestic demand. Despite favorable terms of trade, the high external imbalance that would occur during 2022 would be largely due to domestic demand growth, cost pressures associated with high freight rates, higher external debt service payments, and good performance in terms of the profits of foreign companies.2 By 2023, the adjustment in domestic demand would be reflected in a smaller current account deficit especially due to fewer imports, a global moderation in prices and cost pressures, and a reduction in profits remitted abroad by companies with foreign direct investment (FDI) focused on the local market. Despite this anticipated correction in the external imbalance, its level as a percentage of GDP would remain high in the context of tight financial conditions. In the world's main economies, inflation forecasts and expectations point to a reduction by 2023, but at levels that still exceed their central banks' targets. The path anticipated for the Federal Reserve (Fed) interest rate increased and the forecast for global growth continues to be moderate. In the fourth quarter of 2022, logistics costs and international prices for some foods, oil and energy declined from elevated levels, bringing downward pressure to bear on global inflation. Meanwhile, the higher cost of financing, the loss of real income due to high levels of global inflation, and the persistence of the war in Ukraine, among other factors, have contributed to the reduction in global economic growth forecasts. In the United States, inflation turned out to be lower than estimated and the members of the Federal Open Market Committee (FOMC) reduced the growth forecast for 2023. Nevertheless, the actual level of inflation in that country, its forecasts, and expectations exceed the target. Also, the labor market remains tight, and fiscal policy is still expansionary. In this environment, the Fed raised the expected path for policy interest rates and, with this, the market average estimates higher levels for 2023 than those forecast in October. In the region's emerging economies, country risk premia declined during the quarter and the currencies of those countries appreciated against the US dollar. Considering all the above, for the current year, the Central Bank's technical staff increased the path estimated for the Fed's interest rate, reduced the forecast for growth in the country's external demand, lowered the expected path of oil prices, and kept the country’s risk premium assumption high, but at somewhat lower levels than those anticipated in the previous Monetary Policy Report. Moreover, accumulated inflationary pressures originating from the behavior of the exchange rate would continue to be important. External financial conditions facing the economy have improved recently and could be associated with a more favorable international context for the Colombian economy. So far this year, there has been a reduction in long-term bond interest rates in the markets of developed countries and an increase in the prices of risky assets, such as stocks. This would be associated with a faster-than-expected reduction in inflation in the United States and Europe, which would allow for a less restrictive course for monetary policy in those regions. In this context, the risks of a global recession have been reduced and the global appetite for risk has increased. Consequently, the risk premium continues to decline, the Colombian peso has appreciated significantly, and TES interest rates have decreased. Should this trend consolidate, exchange rate inflationary pressures could be less than what was incorporated into the macroeconomic forecast. Uncertainty about external forecasts and their impact on the country remains high, given the unpredictable course of the war in Ukraine, geopolitical tensions, local uncertainty, and the extensive financing needs of the Colombian government and the economy. High inflation with forecasts and expectations above 3.0%, coupled with surplus demand and a tight labor market are compatible with a contractionary stance on monetary policy that is conducive to the macroeconomic adjustment needed to mitigate the risk of de-anchoring inflation expectations and to ensure that inflation converges to the target. Compared to the forecasts in the October edition of the Monetary Policy Report, domestic demand has been more dynamic, with a higher observed level of output exceeding the productive capacity of the economy. In this context of surplus demand, headline and core inflation continued to trend upward and posted surprising increases. Observed and expected international interest rates increased, the country’s risk premia lessened (but remains at high levels), and accumulated exchange rate pressures are still significant. The technical staff's inflation forecast for 2023 increased and inflation expectations remain well above 3.0%. All in all, the risk of inflation expectations becoming unanchored persists, which would accentuate the generalized indexation process and push inflation even further away from the target. This macroeconomic context requires consolidating a contractionary monetary policy stance that aims to meet the inflation target within the forecast horizon and bring the economy's output to levels closer to its potential. 1.2 Monetary Policy Decision At its meetings in December 2022 and January 2023, Banco de la República’s Board of Directors (BDBR) agreed to continue the process of normalizing monetary policy. In December, the BDBR decided by a majority vote to increase the monetary policy interest rate by 100 basis points (bps) and in its January meeting by 75 bps, bringing it to 12.75% (Graph 1.5). 1/ Seasonally and calendar adjusted. 2/ In the current account aggregate, the pressures for a higher external deficit come from those companies with FDI that are focused on the domestic market. In contrast, profits in the mining and energy sectors are more than offset by the external revenue they generate through exports. Box 1 - Electricity Rates: Recent Developments and Indexation. Author: Édgar Caicedo García, Pablo Montealegre Moreno and Álex Fernando Pérez Libreros Box 2 - Indicators of Household Indebtedness. Author: Camilo Gómez y Juan Sebastián Mariño