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Course: Consumer Behavior
Unit-1 Consumer in the Marketplace
Unit-2 Models of Consumer Behavior
Unit-3 Cultural Influences on Consumer Decision making
Unit-4 Sociological Influences on Consumer Decision making
Unit-5 Personal / Individual Influences on Decision making
Unit-6 Psychological Influences on Decision making
Unit-7 Consumer Decision Making Process
Unit-8 Consumer Influence & Diffusion of Innovation
Consumer Behavior
IILM-Graduate School of Management
04/17/23 3
Consumer Behavior Social Influence on Consumer Behavior
IILM-Graduate School of Management
04/17/23 4
Social Factors
ReferenceGroups
Social Roles & Statuses
Family
In addition to cultural factors, a consumer’s behavior is influenced by such social factors as:
Consumer Behavior Social Influence on Consumer Behavior
IILM-Graduate School of Management
04/17/23 5
Reference Groups • A person’s reference groups consist of all the groups that have a
direct (face-to-face) or indirect influence on his/her attitudes or behavior.
• Groups having a direct influence on a person are called membership groups.
• Some membership groups are primary groups, such as family, friend, neighbors and co-workers, those with whom the person interacts fairly continuously and informally.
• People also belong to secondary groups, such as religious, professional and trade-union groups, which tend to be more formal and require less continuous interaction.
• Aspirational groups are those a person hopes to join• Dissociative groups are those whose values or behavior an
individual rejects.
Consumer Behavior Social Influence on Consumer Behavior
IILM-Graduate School of Management
04/17/23 6
Reference Groups: Opinion Leader • Manufacturers of products and brands where group influence is strong
must determine how to reach and influence opinion leaders in these reference groups.
• An opinion leader is the person in informal, product –related communications who offers advice or information about a specific product, such as which of several brands is best or how a particular product may be used.
‘Prior to the launch of its KitKat Kubes, a variant of the popular KitKat brand, Nestle hired an agency to create a buzz among opinion leaders in the age 16 to 25 market. A database of about 20,000 was sent text messages and then this database was whittled down to 100 opinion leaders by the phone questionnaire. The opinion leaders were sent a large box of KitKat Kubes. One project manager at Nestle said:’ It only takes 50 people to make a craze.’ But of course, it has to be right fifty people’.
Consumer Behavior Social Influence on Consumer Behavior
IILM-Graduate School of Management
04/17/23 7
Opinion Leader: A Source of Information & Advice • Opinion Leaders are the source of both Information & Advice. They may
simply talk about their experience with a product, relate what they know about a product, or, more aggressively advice others to buy or to avoid a specific product.
• The kinds of product or service information that opinion leaders are likely to transmit during a conversation include the following:
1. Which of several brands is best: “In my opinion, when you consider picture quality versus price, Sony offers the best value in small digital cameras.”
2. How to best use a specific product: “I found that my walls look best when I paint with a roller rather than a pad.”
3. Where to shop: “ When Adidas has a sale, the values are terrific.”4. Who provides the best service: “ Over the past few years, I‘ve had my
car serviced and repaired at Tom’s Garage, and I think its service can’t be beat.”
Consumer Behavior Social Influence on Consumer Behavior
IILM-Graduate School of Management
04/17/23 8
Reference Groups: Opinion Leader • An opinion leader is the person in informal……..
‘To reach opinion leaders involved with their African American communities, Chrysler is taking its cars to church. As part of its ‘Inspired Drives’ tour, in which the company sets up tracks around the country for customers to test its latest models, Chrysler is locating test drives at influential megachurches. Missionary Baptist Church in Georgia, is one. Situated on 250 acres, it has 25,000 members and a charismatic senior pastor, Bishop Long. Bishop Long hosts a weekly program on the Trinity Broad- casting Network and is an occasional advisor to government policy makers. By locating test drives at megachurches-and partnering with them at fundraising events, such as a Patti Labelle concert to raise funds for cancer research- Chrysler has found a powerful way to reach customers’.
Consumer Behavior Social Influence on Consumer Behavior
IILM-Graduate School of Management
04/17/23 9
Reference Groups: Opinion Leader • An opinion leader is the person in informal……..
‘Brands like Levi’s, Provogue & Planet M have used teenage icons as brand ambassadors and endorsers very effectively, particularly by getting celebrities for in-store promotions’.
Consumer Behavior Social Influence on Consumer Behavior
IILM-Graduate School of Management
04/17/23 10
Family• Family members influence buying decisions. In traditional joint
family, the influence of grandparents on major purchase decisions and to some extension the lifestyles of the younger generations, is still intact, though diminishing.
• In urban India, with the growth of nuclear families, and both wife and husband working, the role of women in major family decisions such as purchase of house, automobile and durables has grown substantially.
• In most cases joint decision making becoming a common phenomena with significant influence of teenage children, particularly in technology-savvy products such as cell phones, computer & music systems.
Consumer Behavior Social Influence on Consumer Behavior
IILM-Graduate School of Management
04/17/23 11
WifeDominant
HusbandDominant
Joint
100 50 075 25
Women’s clothing
Pots & pans
Child clothing
groceries
vacations
TV sets
Family car Sport equipment
Lawn mower
Paint wallpaper
lamps
Men’s leisure clothing
Men’s business clothing
cameraFinancial planning
furniture
refrigerator
luggage
carpet
Toys/games
stereo
hardware
Extent of role specialization
Relative influence of husbands & wives
Informationsearch
Final decision
Consumer Behavior Social Influence on Consumer Behavior
IILM-Graduate School of Management
04/17/23 12
Roles & Statuses
• The person’s position in each group can be defined in terms of role & status.
• A role consists of the activities a person is expected to perform.
• Each role carries a status. A senior vice president of marketing has more status than a sales manager and…
• People choose products that reflect and communicate their role & actual or desired status in society. Marketers must aware of the status symbol potential of product and brands.
Consumer Behavior Social Influence on Consumer Behavior
IILM-Graduate School of Management
04/17/23 13
MFL’s offer of ready-made garments to the Rural Market
Consumer Behavior Social Influence on Consumer Behavior
IILM-Graduate School of Management
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