Understanding Consumer Behavior

1
Understanding Consumer Behavior
PsychologicalInfluences
Situational Influences
Marketing Strategy
Social Influences

• Social Influences
• Part 3 of 3

2
Social Influences on Buyer Behavior
Culture subculture
Family Values
Social Class
REFERENCE GROUPS
ORGANIZATIONS
Roles
MEDIA
(Complex Mental Processes)
Consumer Behaviors
Your marketing mix stimulates the Black Boxs
Influence on product decisions
3
Cultural Forces produce ones basic customs,
lifestyles, and attitudes
Social Institutions
Political - Legal Economic Educational
Psycho-logical sources
Social Values Religious Roles, Morality Norms,
Family Roles

Decision making
Cultural Forces
Situational sources
Work Ethic
Culture shared social values, norms roles ...
a handed down way of life
Materialism
4
Core Cultural Values in America
Relevance to Consumer Behavior
General Feature
Value
Progress Material comfort
Stimulates desire for new products that
fulfill un- satisfied needs New
product acceptance that claim to be new
or improved Fosters acceptance of
convenience and luxury products that make
life more enjoyable
People can improve themselves tomorrow
should be better The good life
5
Core Cultural Values in America
Relevance to Consumer Behavior
General Feature
Value
Success flows from hard work Keeping busy
is healthy natural Admiration of things that
solve problems (e.g., save time and effort)
Acts as a justification for acquisition of
goods (You deserve it) Stimulates interest
in products that save time and enhance
leisure- time Stimulates purchase of
products that function well and save time
Achievement and success (work ethic) Activity E
fficiency and practicality
6
Core Cultural Values in America
Relevance to Consumer Behavior
General Feature
Value
Being ones self (e.g., self-reliance,
self-interest, and self-esteem (Self-fulfillment
) Freedom of choice
Individualism (responsibility?) Freedom (equa
lity)
Stimulates acceptance of customized or
unique products that enable a person to
express his or her own personality
Fosters interest in wide product lines and
differentiated products
7
A Model of Values Product Images
Cultural meaning in macro social and physical
environment
Marketing strategies
Fashion systems
Institutions Educ Govt
Cultural meaning in products and services
Rituals Symbols - Gestures
Time-Space
Colors
Cultural values norms in consumers
Social interactions
Intentional actions
8
Sub cultural Influences on the Buying Process

• Sub culture (s) are similar but different from
  the broad culture. Examples
• African-American Subculture
• Hispanic Subculture
• Asian-American Subculture
• English, Scot, German
• Irish, Italian, Greek
• Polish, Russian, etc.
  
• Result a Melting Pot, a tossed salad

9
Environmental Sensitivity..
is adapting to the culture-specific needs wants
of different markets
Beliefs
Values
Negative (-)
Positive ()
10
Socialization Process
The process through which a person acquires the
values, norms and personal skills to function in
society as a consumer.

• Family Parents -- Children
  (relationship(s))
• verbal discussions
• actual behaviors
• Religion
• Social Influences
• Peers - Community - Media

11
Applied Marketing
12
Social Influences on the Buying Decision Process

• Family decision-making processes
• Autonomic - equally shared decision-making
• Husband-dominant -husband makes decisions
• Wife-dominantwife makes decisions
• Syncraticdecisions made jointly

13
Role - Actions and activities that a person in a
particular position is supposed to perform based
on expectations of the individual and surrounding
persons (Multiple roles expectations affect
behavior.
Example Buyer seller status as a cultural symbol

• The attractiveness of a salesperson and their
  similarity to the customer increase the level of
  satisfaction (in America).

14
Social Class . . . The uneven distribution of
status
An open group of individuals with similar social
rank. - having similar attitudes, values,
language patterns, and possessions.

• Social stratification upper middle lower
• Social Mobility
• Conspicuous consumption
• Influence Trickle Down or Across? (fashion)

15
Retail stores have a social status
Product Involvement Many consumers value
shopping activities finding bargains.
16
Social Class Behavioral Traits and Purchasing
Characteristics
Upper Class (14 of Population)Includes
upper-upper, lower-upper, upper-middle
Behavioral Traits Buying
Characteristics

• Income varies among the groups Prize quality
  merchandise but goals are the same
  Favor prestigious brandsVarious lifestyles
  preppy, Products purchased
  conventional, intellectual, etc. reflect good
  taste,Neighborhood and prestigious Invest in
  art, schooling important Spend money on
  travel, theater, books, tennis, golf,
  and swimming clubs.

Source Adapted with permission from Richard P.
Coleman, The Continuing Significance of Social
Class to Marketing, Journal of Consumer
Research, Dec. 1983, pp. 265-80, with data from
J. Paul Peter and Jerry C. Olson, Consumer
Behavior Marketing Strategy Perspective
(Homewood, Ill. Irwin, 1987), p. 433
17
Social Class Behavioral Traits and Purchasing
Characteristics
Middle Class (32 of Population) Behavioral
Traits Buying Characteristics

• Often in management Like
  fashionable itemsConsidered white collar
  Consult experts via
  
  Prize good schools books, articles,
  etc.,
• Desire an attractive home before
  purchasing in a nice, well-maintained
  Spend for experiences neighborhood
  considered worthwhile Often emulate
  the upper class for their children .
  
  .
  (e.g., ski trips,college
  Enjoy travel and physical activity education,
  Often very involved in childrens Tour
  packages, school and sports activities
  weekend tours .
  Attractive home
  furnishings

18
Social Class Behavioral Traits and Purchasing
Characteristics
Working Class (38 of Population) Behavioral
Traits Buying Characteristics

• Emphasis on family, especially for Buy
  vehicles equipment economic and emotional
  support related to recreation,camping(e.g.,
  job opportunity tips, help in and selected
  sports times of trouble) Strong sense
  of valueBlue collar Shop for best
  bargains at off-Earn good incomes price and
  discount storesEnjoy mechanical items and
  Purchase automotive equip- recreational
  activities ment for making repairs Enjoy
  leisure time after working Enjoy local
  travel, hard recreational parks

19
Social Class Behavioral Traits and Purchasing
Characteristics
Lower Class (16 of Population) Behavioral
Traits Buying Characteristics

• Often down and out through no Most products
  purchased fault of their own (e.g., layoffs,
  are for survival company takeovers)
  Ability to convert good Can include individuals
  on discards into useable welfare
  and the homeless items. Often
  have strong religious beliefsMay be forced to
  live in less desirable neighborhoodsIn spite
  of their problems, often good-
• hearted toward others
• Enjoy everyday activities when possible

20
Reference Groups

• A group that strongly influences the values,
  attitudes behavior of an individual.
  
• Membership Aspirational Disassociative
• Example Egyptian weddings (family status/honor)
  1998 Belly dancer with Wagitha
• Opinion Leaders (gatekeepers) A knowledgeable,
  accessible individual who provides information
  about a specific sphere of interest to followers

21
Reference Groups for a College
Membership groups
Reference groups
Camera club
Athletic club
Successful young businesspeople
Employees at job
Friends
Classmates
Family
Dorm or roommates
Professional athletes and entertainers
Spectators at various events
22
Social Reference Groups influence Buying Behavior
The Social Norm component influences most brand
choices.
23
Tween trend
Applied marketing
Flows of social influence

• Teenage clothing trends normally trickle down
  to younger girls who imitate older teenagers (who
  are wearing these retro shirts

• Care Bear t shirts are now a way to counter the
  phenomenon of kids who outgrow toys and adapt to
  pre-teen behavior at ever-earlier ages

24
A Model of Consumer Decision Making
Information in the environment
Interpretation Exposure,attention, and
comprehension
Memory Product knowledge and involvement
Consumer decision making
Knowledge, meanings and beliefs
Integration Attitudes and intentions
Behavior