External influence of consumer behavior, family and reference group

TEAMTEAM-6

GROUP:
Two or more persons who are interacting with one another in such a manner that each person influences and is influenced by each other Marvin.E.Shaw

Features of group:
1. 2. 3. 4.

Two or more persons Collective identity Interaction Shared goal interest

Reasons for formation of group:

1. 2. 3.

4. 5.

Interpersonal attraction The group acts as a vehicle of socialization Groups serve as a means of need satisfaction A change from usual work environment Helps in group decision-making and getting decisionthe job done

Advantages of groups:
1.

2.

3. 4.

5.

Greater sum total of knowledge and information Greater number of approaches to the problem Participation increases acceptance Better comprehension of the problems and the solution Group acts as a motivator.

Disadvantages of groups:
1. 2. 3. 4. 5. 6. 7. 8. 9.

Solution of mindedness Compromised results Untimely decisions Conflicts Diffusion of responsibility Free riding or social loafing High co-ordination costs in time & money coDominance Pressures to conformity.

TYPES OF GROUPS RELEVANT TO CONSUMER BEHAVIOUR

The Marketing Manager have the clear idea about the groups related to an individual, Because the individual customer is always depends upon his reference group to make decision of purchase .
For example If the family has teenaged children, they have their own set of taste and preferences especially related to clothing, cosmetics, film and magazines. These teenagers get easily motivated by novelties. So here teenagers are the reference group for consumer.


In the nuclear family setup the urban house wife is an active partner in the family decisions. She is the live manager of her household . She is decision maker of the purchase of house hold items like cooking gas, electric stove, grinders, refrigerator, etc


ROLE OF FAMILY MEMBERS IN DECISION MAKING PROCESS

INFLUENCER  GATE KEEPER  DECIDER  BUYER  PREPARER  USER  MAINTAINER


FAMILY LIFE CYCLE



Family life cycle plays vital role in influencing consumer behaviour and also helps gaining insight into the consumption related behaviour Bachelorhood Newly married couple Parenthood with growing children Older married couple with children married and family head retired from services.

   

Friendship Group
Friendship group, it is mainly concern to youth market, this youth market generally comprises of about graduate, post graduate students, Executives, Emerging professionals A high intent to purchase product and services is found in this market. They easily get motivated to purchase reasonably rated and high value products as perceived by their friends. The influence of friends on the buying behaviour is seen in their desire to have access credit cards wearing mens wear which falls in line to their friends choice.

Shopping friends group

Perception  Matching personality  Styles  Outlook  Cost angle  Prestige  Usage or utility


WORK GROUP
Formal group  Informal group Formal group  Permanent formal work group  Temporary formal work group


Formal social clubs

Human beings are generally considered to be social in nature, spend much of his/her time in group situations is understood as social clubs Ex: Rotary club, Loins club Such social system generally comprises of three elements activities, Interaction, sentiments

MEANING Hebert Hyman, has defined a reference group as the type of group that an individual uses as a point of reference in determining his own judgment, preferences, belief and behavior .

Types of Groups (Reference Groups)

 Normative

Reference Groups  Comparative Reference Groups  Contactual Reference Groups

1. Normative

Reference Groups : Reference groups that directly influence general or broadly defined values or behaviour are usually called normative reference groups.

2. Comparative

Reference Groups : Reference groups which will serve as a benchmark for certain specific or narrowly defined attitudes are called comparative reference groups. Reference Groups : Another way of

3. Contactual

FACTORS WHICH PLAY A ROLE IN REFERENCE GROUP INFLUENCES



Information and experience: The last few years have witnessed enormous diversity in the amount of informative available to the marketing decision makers. Our own governments economic liberalization programmers have brought about a lot of changes in the structure of the market place. Credibility, Attractiveness and power of the reference groups: The groups members are attracted to each other by some social bonds because they share some common concerns, values or ideology. Conspicuous of the product: It is to be noted conspicuous of the product could be a visually conspicuous one or a verbally conspicuous one. Visually conspicuous means the product appeals to others without any barriers of communication. For example visually conspicuous products could be car, automobiles, pagers, shoes, apparel, technical and utility products etc.

METHODS OF REFERENCE GROUP AND CONSUMER CONFORMITY TO THE GROUP

 Inform

or make the individual aware of the product.  Provide an opportunity to the individual to make a comparative study of her way of thinking viz-a-viz the attitudes and vizbehaviour of the group.  Influence the individual to adopt attitudes and behaviour that are consistent with the norms of the group.

Better communication

and increased brand

awareness:
Reference group acts as the source of learning through observation and hearing others experiences and also with more data and information available from other group members. members.
Reduced

perceived risk :

The perceived risk is reduced with the customers association with reference group. the group provides and shares the information about the product with members in an open environment . The past experience of other members with usage of the product brand are also reveled .

Conclusion
Human beings by nature are group living is one of the most enduring features of this race. The reference group and family also play a major role in influencing consumer behavior. To have a better understanding of the complex buying behavior of a consumer, the marketer has to undertake an in-depth study into understand who comprises of the target markets reference group.