Social Influence, Group Influence and Influences of Households and Family on Consumer Behaviour

Presented To: Dr. Vinay Chauhan Presented By: Ankush Kohli (08) Sudhanshu Gupta (34)

Consumer Behaviour
The behavior that

consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs.

What is a Group?
Two or more people who interact to accomplish either individual or mutual goals A membership group is one to which a person either belongs or would qualify for membership A symbolic group is one in which an individual is not likely to receive membership despite acting like a member

Reference Groups
A person or group that serves as a point of

comparison (or reference) for an individual in the formation of either general or specific values, attitudes, or behavior. Broad Categories of Reference Groups
Normative Reference Groups

Comparative Reference Groups

Indirect Reference Group

Individuals or groups with whom a person identifies but does not have direct face-to-face contact, such as movie stars, sports heroes, political leaders, or TV personalities.

Major Consumer Reference Groups

Positive Influences on Conformity

Group Characteristics Attractiveness Expertise Credibility Past Success Clarity of Group Goals Personal Characteristics Tendency to Conform Need for Affiliation Need to be Liked Desire for Control Fear of Negative Evaluation

Factors Encouraging Conformity: A Reference Group Must ...

Inform or make the individual aware of a specific product or brand Provide the individual with the opportunity to compare his or her own thinking with the attitudes and behavior of the group Influence the individual to adopt attitudes and behavior that are consistent with the norms of the group Legitimize the decision to use the same products as the group

Selected Consumer-Related Reference Groups

Friendship groups Shopping groups Work groups Virtual groups or communities Consumer-action groups

Brand Communities
Group of runners who meet at the Niketown store in

Boston on Wednesdays Saturn car owners who meet for reunions and barbecues Harley Davidson Owner Groups Saab owners

Reference Group Appeals

Celebrities The expert The common man The executive and employee spokesperson Trade or spokes-characters Other reference group appeals

Types of Celebrity Appeals

TYPE Testimonial DEFINITION Based on personal usage, a celebrity attests to the quality of the product or service EXAMPLE Pat Riley for 1-Day Accuvue disposable contact lenses

Endorsement

Celebrity lends his name and Senior pro golfer Larry appears on behalf of a product or Laoretti for TE-AMO service with which he/she may cigars not be an expert Celebrity presents a product or service as part of a character endorsement Jason Alexader for Rold Gold pretzels

Actor

Spokesperson

Celebrity represents the brand or Lee Trevino for Motorola company over an extended telecommunications period of time products

Households
Family Households: Married couple, Nuclear family, Extended family

Households Non-Family Households: Unmarried couples, Friends/ Roommates, Boarders

The Typical Household?

Canada: Nuclear family
Thailand: Extended family USA: Not married, no children

Consumer Socialization
The process by which children acquire the skills, knowledge, and attitudes necessary to function as consumers

A Simple Model of the Socialization Process

Young Person Other Family Members Friends Influence More Expressive Attitudes/Behavior Style Fashion Fads In/Out Acceptable consumer behavior

Influence More Basic Values/Behavior

Moral/religious principles Interpersonal skills Dress/grooming standards Manners and speech Educational motivation Occupational career goals Consumer behavior norms Preadolescent

Adolescent

Teens

Older

Other Functions of the Family

Economic well-being Emotional support Suitable family lifestyles

Eight Roles in the Family Decision-Making Process

ROLE Influencers
Gatekeepers Deciders

DESCRIPTION Family member(s) who provide information to other members about a product or service
Family member(s) who control the flow of information about a product or service into the family Family member(s) with the power to determine unilaterally or jointly whether to shop for, purchase, use, consume, or dispose of a specific product or service Family member(s) who make the actual purchase of a particular product or service Family member(s) who transform the product into a form suitable for consumption by other family members Family member(s) who use or consume a particular product or service Family member(s) who service or repair the product so that it will provide continued satisfaction. Family member(s) who initiate or carry out the disposal or discontinuation of a particular product or service

Buyers Preparers Users Maintainers Disposers

Dynamics of Husband-Wife Decision Making

Husband-Dominated
Wife-Dominated Joint Equal Syncratic Autonomic Solitary Unilateral

The Family Life Cycle

Traditional Family Life Cycle Stage I: Bachelorhood Stage II: Honeymooners Stage III: Parenthood Stage IV: Postparenthood Stage V: Dissolution Modifications - the Nontraditional FLC

An Extended Family life Cycle

Middle-Aged Divorced without Children Young Divorced without Children Middle-Aged Married without Children Young Married with Children * Young Divorced with Children * MiddleAged Married with Children * MiddleAged Married without Depende nt Children*

Young Single*

Young Married without Children *

Older Married*

Older Unmarried *

MiddleAged Divorce d with Childre n

MiddleAged Divorce d without Children

Usual Flow Recycled Flow * Traditional Family Flow

Noteworthy Nontraditional FLC Stages

Alternative FLC Stages Family Households Childless couples Definition/Commentary It is increasingly acceptable for married couples to elect not to have children. Contributing forces are more career-oriented married women and delayed marriages. More career-oriented men and women and greater occurrence of couples living together. Likely to have fewer or even no children. Likely to have fewer children. Stress quality lifestyle: Only the best is good enough

Couples who marry later in life (in their late 30s or later) Couples who have first child later in life (in their late 30s or later)

continued
Alternative FLC Stages Family Households Single parents I Single parents II Single parents III Extended family Definition/Commentary High divorce rates (about 50%) contribute to a portion of single-parent households Young man or woman who has one or more children out of wedlock. A single person who adopts one or more children. Young single-adult children who return home to avoid the expenses of living alone while establishing their careers. Divorced daughter or son and grandchild(ren) return home to parents. Frail elderly parents who move in with children. Newlyweds living with in-laws.

Social Class
The division of members of a society into a hierarchy of distinct status classes, so that members of each class have either higher or lower status than members of other classes.

Social Class and Social Status

Status is frequently thought of as the relative rankings

of members of each social class

wealth power prestige

Social Comparison Theory states that individuals compare their own possessions against those of others to determine their relative social standing.

Status Consumption
The process by which consumers actively increase

their social standing through conspicuous consumption or possessions

Convenient Approaches to Social Class

Social status is usually defined in terms of one or more

of the following socioeconomic variables:

Family Income Occupational Status

Educational Attainment

Social Class Measurement

Subjective Measures: individuals are asked to

estimate their own social-class positions Reputational Measures: informants make judgments concerning the social-class membership of others within the community Objective Measures: individuals answer specific socioeconomic questions and then are categorized according to answers

Objective Measures
Single-variable Composite-variable

indexes
Occupation Education

indexes
Index of Status

Income
Other Variables

Characteristics Socioeconomic Status Score

Social-Class Profiles
THE UPPER-UPPER CLASS--COUNTRY CLUB Small number of well-established families Belong to best country clubs and sponsor major charity events Serve as trustees for local colleges and hospitals Prominent physicians and lawyers May be heads of major financial institutions, owners of major long-established firms Accustomed to wealth, so do not spend money conspicuously

Contd
THE LOWER-UPPER CLASS--NEW WEALTH
Not quite accepted by the upper crust of society Represent new money Successful business executive Conspicuous users of their new wealth

Contd
THE UPPER-MIDDLE CLASS--ACHIEVING

PROFESSIONALS Have neither family status nor unusual wealth Career oriented Young, successful professionals, corporate managers, and business owners Most are college graduates, many with advanced degrees Active in professional, community, and social activities Have a keen interest in obtaining the better things in life Their homes serve as symbols of their achievements Consumption is often conspicuous Very child oriented

Contd
THE LOWER-MIDDLE CLASS--FAITHFUL FOLLOWERS Primary non-managerial white-collar workers and highly

paid blue-collar workers Want to achieve respectability and be accepted as good citizens Want their children to be well behaved Tend to be churchgoers and are often involved in churchsponsored activities Prefer a neat and clean appearance and tend to avoid faddish or highly-styled clothing Constitute a major market for do-it-yourself products

Contd
THE UPPER-LOWER CLASS--SECURITY-MINDED

MAJORITY The largest social-class segment Solidly blue-collar Strive for security View work as a means to buy enjoyment Want children to behave properly High wage earners in this group may spend impulsively Interested in items that enhance leisure time (e.g., TV sets) Husbands typically have a strong macho self-image Males are sports fans, heavy smokers, beer drinkers

Contd
THE LOWER-LOWER CLASS--ROCK BOTTOM
Poorly educated, unskilled laborers Often out of work Children are often poorly treated Tend to live a day-to-day existence