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Factors influencing consumer behaviour

By

Sunita Sen

Cultural influence:

A) Cultural and societal influence:

Throughout his existence, an individual will be influenced by his family, his friends, his cultural environment or society that will

“teach” him values, preferences as well as common behaviours to their own culture.

Culture:

Basic values, perceptions, wants and behaviors

Learned from family and important institutions

Cultural values: widely held beliefs that endure over time.

Instrumental values

Terminal values

Features

Culture is a learned response

Culture is shared

Culture is adaptive

Dynamism in culture

B) Subculture

Subcultures are groups of people who share the same values based on a common experience or a similar lifestyle in general.

Subcultures are the nationalities, religions, ethnic groups, age groups, gender of the individual, etc..

Group of people with shared value systems

Based on common life experiences and situations

Marketing to Subcultures

Procter & Gamble targets

Hispanics using print and TV and has developed special Spanish versions of some brands.

Age subculture

Generation Y (1977-94)

Generation X (1965-79)

Baby boomers (1946-64) seniors

Geographic subculture

Religion subculture

Gender subculture

Age subculture

Themes

Purchasing behaviour

Coming of age technology

Price quality attitude

Attitude towards brands

Behaviour towards ads

Generation Y

Savvy, Pragmatic

Computer in every home

Value oriented

Brand embracing

Generation X

Materialistic

MICROWAVE in every home

Price oriented

Against branding

Boomers

Narcissistic

TV in every home

Conspicuous consumption

Brand loyal

Rebel against hype Rebel against hype Respond to image building type

Gender subculture:

Women show superior affect and purchase intention towards ads that are verbal, harmonious, complex and catagory oriented whereas men show superior affect and purchase intention towards ads that are comparative, simple and attribute oriented.

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C) Social Class:

Social classes are defined as groups more or less homogenous and ranked against each other according to a form of social hierarchy. Even if it’s very large groups, we usually find similar values, lifestyles, interests and behaviours in individuals belonging to the same social class.

Social comparison theory

We often assume three general categories among social classes:

Lower class

Middle class

Upper class

Measuring social class

1. Subjective measures

Reputational measures

Objective measures:

Single variable indexes

Composite variable indexes

D) Cultural trends:

Cultural trends or “Bandwagon effect” are defined as trends widely followed by people and which are amplified by their mere popularity and by conformity or compliance with social pressure. The more people follow a trend, the more others will want to follow it.

For example, Facebook has become a cultural trend. The social network has widely grew to the point of becoming a must have, especially among young people.

Culture and marketing strategies

Identify key cultural values that affect the consumption of the product

Ensure the marketing mix appeals to these values

Examine changes in cultural values and adapt the marketing mix if needed

Modify marketing mix to subcultures if the culture is heterogeneous

Be aware of symbols and ritual

Measurement of culture

Content analysis

Consumer fieldwork

Value measurement instrument

Content Analysis

A method for systematically analyzing the content of verbal and/or pictorial communication.

Frequently used to determine prevailing social values of a society.

Field Observation

A measurement technique that takes place within a natural environment that focuses on observing behaviour

(sometimes without the subjects’ awareness).

Field Observation

Takes place within a natural environment

Performed sometimes without the subject’s awareness

Focuses on observation of behaviour

Participant-Observers

Researchers who participate in the environment that they are studying without notifying those who are being observed

Value Measurement Survey

Instruments

Rokeach Value Survey (RVS)

A self-administered inventory consisting of eighteen “terminal” values (i.e., personal goals) and eighteen “instrumental” values (i.e., ways of reaching personal goals).

List of Values (LOV)

A value measurement instrument that asks consumers to identify their two most important values from a nine-value list that is based on the terminal values of the Rokeach Value Survey

(continued)

Indian core values:

Family orientation http://books.google.co.in/books?id=ftOqpp6OTc4C&pg=P

A354&lpg=PA354&dq=indian+consumers+core+values&s ource=bl&ots=pxVFzkGOc&sig=MnnfmvTHDBvdm0wub83pgiyTEVU&hl=en&s a=X&ei=4rMzVKrmJcjIuAS9jIKwAQ&ved=0CDIQ6AEwA w#v=onepage&q=indian%20consumers%20core%20values

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Indian Core values

Values

Values:

Shared beliefs or cultural norms about what is important or right.

Value system

Our total set of values and their relative importance

Cultural values directly influence how

Consumers view and use individual products, brands, and services.

Values

The List of Values (LOV):

Self-respect

• Warm relationships

• Self-fulfillment

• Sense of belonging

• Respect from others

• Excitement

• Security

• Sense of accomplishment

• Fun and enjoyment in life

Values

Values and Lifestyles (VALS):

Identifies eight market segments that share similar end values.

Social Factors:

A.

Reference group and membership group:

The membership groups of an individual are social groups to which he belongs and which will influence him. The membership groups are usually related to its social origin, age, place of residence, work, hobbies, leisure, etc.

More generally, reference groups are defined as those that provide to the individual some points of comparison more or less direct about his behaviour, lifestyle, desires or consumer habits. They influence the image that the individual has of himself as well as his behaviour. Whether it is a membership group or a non-membership group.

Reference group:

Normative reference group that influence general or broadly defined values or behaviour.

Comparative reference group that serve as a benchmark for specific or narrowly defined attitude or behaviour.

Indirect reference group

Direct reference group

Major consumer Reference group

Opinion Leaders

Trendsetters – individuals who are more likely to purchase new products early and to serve as information source for others in a group.

Factors that affect reference group’s influence:

Information and experience

Credibility, attractiveness and power of the reference group

Conspicuousness of the product.

Reference group and consumer conformity

Market leaders are interested in encouraging conformity.

Non market leaders re new brands appeal for non conformity

In common marketing usage 5 major reference group are:

Celebrity Appeal

Types

Testimonial

Endorsement

Spokesperson

Definition

Based on personal usage, a celebrity attests to the quality of the product or service

Celebrity lends his/her name and appeal on behalf of product or service with which he/she may or may not be an expert.

Celebrity represents the brand or company over an extended period of time.

The expert

The common man (slice of life commercials)

The executive and employee spokesperson

Trade or spokes-character

Other reference appeals

Seals of approval

Consumer reports

Many brands look to target opinion leaders (initiator or influencer) to spread the use and purchase of their product in a social group. Either through an internal person of the group when it comes to a small social group. Or through a sponsorship or a partnership with a reference leader (celebrity, actor, musician, athlete, etc.) for larger groups.

Family

Family is defined as two or more persons related by blood, marriage or adoption who reside together.

Nuclear family

Extended family

Single parent family

Eight roles in the family Decision-Making

Process:

Influencers: provide information to other members

Gatekeepers : control the flow of information

Deciders: have power to determine unilaterally or jointly whether to buy or not

Buyers: make actual purchases

Preparers: transform products into form suitable for consumption

Users: use the product or service

Maintainers: service or repair the product for continued satisfaction

Disposers: carry out disposal or discontinuation of the product.

Family life cycle

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