Effects of personal factors and reference groups

Sanjay Chandwani

Model of Consumer Behavior

Product
Marketing and Other Stimuli

Economic Technological Political Cultural

Price
Place Promotion

Buyers Decision Process

Buyers Black Box

Characteristics Affecting Consumer Behavior

Product Choice Brand Choice Dealer Choice

Buyers Response

Purchase Timing Purchase Amount

Factors Affecting Consumer Behavior: Personal

Personal Influences
Age and Family Life Cycle Stage
Economic Situation Occupation

Personality & Self-Concept

Lifestyle Identification
Activities Opinions

Interests

Influence of age on cosumer behaviour

Product needs and interests vary with consumers age. Explain! The age effect and the cohort effect

How change in age distribution of Indian population has

changed consumption behaviour

Effect of Life Cycle Stage

Life cycle is a sociological concept and emphasises age, occupation, marital status, composition of families and income of the person Amount and pattern, both change as an individual passes through stages of life cycle Non-traditional stages- Hostelers, Cohabitation (live-in),

Extended Family, Dual family, Unmarried/Wodowed

persons,& Gay couples in more permissive societies

Effect of Occupation
Occupation is a widely accepted and probably the bestdocumented measure of social class because it refelects the

status of a person on society

Yuppie, Puppie, Wasp, Dinks, etc. Trend towards self employment as they end up being wealthier

Social Class and their behaviour patterns

Social class affects norms and values and hence consumptions and possessions Different studies have formed a scale of status consumption (Conspicuous consumptionVeblen goods) Education plays a key role in defining social class Meaning of money Indian Upper Class (liquid cash. 50 L) is growing at 11.6% pa- aristocrats, neo rich, professionals, traditionally affluent Middle Class Working class Poor and distressed (BOP)

Effect of Lifestyle on CB
Activities, Interests, Opinions (AIO) framework Lifestyle characteristics rather than demographic variables provide more relevant information to understand consumer behaviour and to design effective advertising campaigns

Consumer lifestyles can have important implications for

market profiling, marketing communication and new product ideas In India, lot of consumption changes are happening due to rapid change in life styles

The New Subcultures

Sports, Movies and Music Lovers Hinglish effect The hangout groups Television and Gaming Religious sect/cult groups And.

Influence of Reference Groups

A reference group is a group to which an individual belongs Said group is the individuals frame of referenceand source for sharing his experiences, perceptions, cognitions, and ideas of self

Provides the benchmarks and contrasts needed for

comparison and evaluation of group related behaviour

Normative (broad comparisons) reference groups and

comparative (narrow) reference groups

Patterns of Reference Groups influence

Information and Experience Credibility and Power of the Reference Group- depends on : Degree of visibility of product Degree of necessity Degree of involvement with the group Certainty of buyer Consumer conspicuousness Consumer conformity

Consumption related RG
Primary Groups Secondary group Shopping group Aspirational groups- (e.g Celebrity) Official groups Implicit groups (brand communities) Virtual groups or communities Consumer Action forums