Culture can have a profound effect on consumer behavior and impact how a product is marketed. Hence consumer perception becomes a great influence on the buying decision of consumers. Reference groups are considered a social influence in consumer purchasing. Individuals can also be reference groups (usually known as opinion leaders). Schools, friends, and peers are examples of informal reference groups. Fraud: Credit card fraud is a form of consumer misbehavior that can cost billions of dollars a year. Within a cultural group, there exists many subcultures. Then the married couple transition to Full Nest stages, where the family has dependent children living at home. There are generally three components of a culture: beliefs, values, and customs. Failing to do so can result in lost sales and opportunities. Perhaps the simplest model to define social class is a three-tiered approach that includes the rich, the middle class, and the poor. For example, a few years ago Shaquille O’Neal was used to endorse Pepsi because Pepsi felt he represented the spirit of teenagers of the time. All these professionals can influence the decisions consumers make within their area of expertise. A consumer’s learning depends on skills and knowledge. A new refrigerator, for example, is likely to be a joint decision, while a week’s groceries might be selected by a single member of the family. Material goods often take on major symbolic meaning for this group. A marketer may decide his product is best suited for a specific demographic and will define that demographic as clearly as possible. Start studying Chp 11- social influences on Consumer Behavior. A consumer’s family is one of the most significant factors because a family helps shape an individual’s attitudes and behaviors. Source can communicate information widely. Although fairly expensive to do, many retailers have begun fighting consumer misbehavior. Retailers often employ more security and staff during times where the propensity for consumer misbehavior increases, such as during “Black Friday” sales. Influence on Consumer Behavior. Whereas if a consumer is interested in saving more, then most of his income will go towards buying products. Some of the important psychological factors are: When a person is motivated enough, it influences the buying behaviour of the person. A marketer should try to understand the factors that influence consumer behavior. J.J. Abrams, “Apple Fanatic”: TV series creator J.J. Abrams can influence other people to buy certain products by saying how much he likes the product. Elderly people have a totally different buying behavior. A person has many needs such as the social needs, basic needs, security needs, esteem needs and self-actualization needs. Definition of Consumer Behaviour 2. A person tends to buy things that are appropriate to this/her profession. US Navy 081007-N-8848T-889 Dale Earnhardt Jr. autographs a hat for Seaman Recruit Heather Martinez. Interaction between spouses and the number and ages of children play a particularly powerful role on buying behaviors. Humans are social beings and they live around many people who influence their buying behavior. Kellie Elmerraji. This attitude plays a significant role in defining the brand image of a product. They are often groups that consumers will look to to make purchasing decisions. Once the children leave, the family enters the Empty Nest Stage, which is typically where older married couples (working or retired) no longer have dependent children living with them. Consumers seek out help in making consumer purchases. Other models have as many as a dozen levels. A persona is a social role. A person is influenced by the role that he holds in the society. There is a major difference in the consumer behavior of different social classes. Dale Earnhardt, Jr.: Celebrities are opinion leaders for the products or services they promote. Higher family income influences the people in the family to buy more. Disposable income refers to the money that is left after spending towards the basic needs of a person. There is also a distinction in the type of goods purchased. They usually have deeper expertise in a certain area, and are often looked to for help in making consumer decisions. relating to a product, they develop an impression about the product. Hence, the marketers try hard to understand the attitude of a consumer to design their marketing campaigns. Consumer misbehavior is specifically related to retail and other markets, and includes things from cutting in line to fights between customers to credit card fraud. The lower class, in contrast, are much more concerned with simply getting by; they focus more on necessities. These subcultural groups share the same set of beliefs and values. One way to understand the consumer behavior of a family is to identify the decision maker for a purchase. A persona may be created to capture the “soccer mom,” perhaps by giving her a name or other defining characteristics. Consumer Behaviour – Social Factors; Social factors are also subdivided into the following. Consumer misbehavior refers to the common occurrence of consumers acting outside the norm. Often, the decision maker changes based on the type of purchase or the size of the purchase. Cultural Factors include the basic values, needs, wants, preferences, perceptions, and behaviors that are observed and learned by a consumer from their near family members and other important people around them. The buying choices of youth differ from that of middle-aged people. Hence basic needs and security needs have the power to motivate a consumer to buy products and services. Each of these subcultures will have specific influences on consumer behavior. Upper Class : Social class has a profound effect on the types and quantity of consumer goods purchased. When more people are earning in the family, there is more income available for shopping basic needs and luxuries. 3. A marketer should understand the dynamic of the social class as well. Therefore, it’s essential to have a prominent online presence on various social media platforms. Reference groups are groups that consumers compare themselves to or associate with. Although there are many different roles that can influence how a consumer behaves, three in particular are presented here: influencers, prosumers, and personas. A decision maker for a purchase can be a husband, wife, or even a child, and sometimes decisions are made in collaboration. Influencers are people who have a relatively large audience in which to tout their beliefs. Clubs, associations, and religious organizations are usually formal reference groups. Complex buying behavior. Age deliver influence through the mass media, including advertising, sales promotions, publicity, special events, and social media posts. Many factors influence purchasing. Sometimes, these opinion leaders can actually be groups, known as reference groups. For example, the role of father can be different than the role of mother in purchasing consumer goods. Study of Consumer as an Individual 4. They have the standing to be able to influence others. A prosumer is usually a serious hobbyist, with similar interests and skills of professionals. Human try to imitate other humans and also wish to be socially accepted in the society. Another aspect of understanding the impact of families on buying behavior is the family life cycle. Celebrities are often used as opinion leaders in promoting a product. Culture can be further divided into subcultures. On the other hand, if a reference group disapproves of a product, those that associate with that group will probably not purchase the product. Learn vocabulary, terms, and more with flashcards, games, and other study tools. One way to understand the family’s impact on consumer behavior is to identify the decision maker for a purchase. The social class is not just determined by the income, but also other factors such as the occupation, family background, education and residence location. If a marketer wishes to target efforts toward the upper classes, then the market offering must be designed to meet their expectations in terms of quality, service, and atmosphere. Essay Contents: Essay […] Celebrity endorsements in marketing are a way to give clout to a product or service. Based on this attitude, the consumer behaves in a particular way towards a product. If a marketer can identify key opinion leaders for a certain group, she can then direct her efforts towards attracting these individuals. Everyone is expected to behave in a certain way based on the reference group we belong to. When a consumer has higher disposable income, it gives more opportunity for the consumer to spend on luxurious products. Top ways that social media influences consumer behavior. Social factors: family, friends, education level, social media, income, they all influence consumers’ behavior. Social media is no longer just about conversations; it’s about commerce. Subcultures can consist of people from different religion, caste, geographies and nationalities. Additionally, celebrities can be used as a reference group. Describe the different types of consumer roles. The latest trend in marketing is the introduction of the social media. Discuss the importance of opinion leaders in marketing and how they can influence the success of a product or service. When there is an increase in disposable income, it leads to higher expenditure on various items. Sellers are making it easy for the consumers to avail credit in the form of credit cards, easy installments, bank loans, hire purchase, and many such other credit options. also deliver information personally. The importance of understanding the role of social influence, how others affect our emotions, opinions, or behaviors, in consumption has a long and varied history in the fields of sociology, psychology, and marketing. 2005; Dahl 2013). Consumer behavior, while still driven by personal, psychological, and social factors, has changed with the advent of social media. Opinion leaders are generally people who have the ability to influence others. Customer perception is a process where a customer collects information about a product and interprets the information to make a meaningful image about a particular product. Reference Group: If a reference group endorses a product, either through use or statements about the product, those that look to the group will often purchase that product. By Dr. Kevin Lance Jones Social Influences Information and Pressures from Individuals, groups, and the mass media that affect how a person behaves. These personal factors differ from person to person, thereby producing different perceptions and consumer behavior. Culture; Sub-culture; Social Class; Reference Group Opinion Leaders Family (1) Culture refers to the way of living of a group of people.It includes knowledge, belief, traditions, morals, values, customs and other such habits that are acquired by humans as members of a group. People go through a family life cycle composed of different stages of purchasing patterns. For example, a local high school teacher may be an opinion leader for parents in selecting colleges for their children. Income has the ability to influence the buying behavior of a person. Learning comes over a period of time through experience. Other examples of prosumers are found in home improvement and cooking segments. As such, opinion leaders can shape how a product is viewed. Meaning and Definition of Social Class : Consumer behaviour is influenced by environment in which one lives. CC licensed content, Specific attribution, http://en.wikipedia.org/wiki/Influencer_marketing, http://en.wikipedia.org/wiki/Persona_(marketing), http://www.fotopedia.com/items/flickr-417146851, http://en.wikibooks.org/wiki/Marketing/Consumer_Behavior%23Social_influences, https://dl.dropboxusercontent.com/u/31779972/Introducing%20Marketing.pdf, http://commons.wikimedia.org/wiki/File:US_Navy_021029-N-3228G-007_Navy_family_shops_at_the_Pearl_Harbor_commissary.jpg, http://en.wikipedia.org/wiki/Reference_group, http://en.wikipedia.org/wiki/Thought_leader, http://en.wikipedia.org/wiki/opinion%20leader, http://en.wiktionary.org/wiki/target_market, http://commons.wikimedia.org/wiki/File:Friends.jpg, http://en.wikibooks.org/wiki/Marketing/Consumer_Behavior, http://en.wikipedia.org/wiki/Opinion_leadership, http://www.boundless.com//sociology/definition/reference-group, http://commons.wikimedia.org/wiki/File:Auto_Mechanic.jpg, http://commons.wikimedia.org/wiki/File:US_Navy_081007-N-8848T-889_Dale_Earnhardt_Jr._autographs_a_hat_for_Seaman_Recruit_Heather_Martinez.jpg, http://en.wikipedia.org/wiki/Consumer_behaviour%23Other_influences, http://en.wikipedia.org/wiki/Social_class_in_the_United_States, http://en.wiktionary.org/wiki/social_class, http://en.wiktionary.org/wiki/disposable_income, http://www.fotopedia.com/items/flickr-5693470861, http://en.wikipedia.org/wiki/Social_class_in_the_United_States%23Culture, http://en.wiktionary.org/wiki/socio-economic, http://www.fotopedia.com/items/flickr-5257442738, http://en.wikipedia.org/wiki/Black_market, http://en.wikipedia.org/wiki/Credit_card_fraud, http://en.wikipedia.org/wiki/Shoplifting%23Motivations, http://en.wikipedia.org/wiki/credit%20card%20fraud, http://en.wikipedia.org/wiki/Black%20Friday, http://www.fotopedia.com/items/flickr-3274955487. 2. Consumer Behavior. While a skill can be gained through practice, knowledge can be acquired only through experience. Consumer misbehavior is specifically related to retail and other markets, and includes things from cutting in line to fights between customers to credit card fraud. So if a reference group endorses a product, either through use or statements about the product, those that look to the group will often purchase that product. Consumer Behaviour in their Cultural and Social Settings 5. Some economists estimate the total monetary value of consumer misbehavior to be in the hundreds of billions of dollars. Out of all these needs, the basic needs and security needs take a position above all other needs. At an early age, buyers learn to recognize acceptable behavior and choices when selecting products. The function of a value system is to help a person choose between alternatives in everyday life. The consumer behaviour or buyer behaviour is influenced by several factors or forces. Factors That Influence Consumers’ Buying Behavior in Marketing Principles (v. 2.0) is licensed under a Creative Commons by-nc-sa 3.0 license. These factors refer to the set of values, preferences, perceptions, and ideologies of a particular community. Personal Factors. Distinguish between an opinion leader and reference group. Some of the personal factors are: i. Contractual Gr… Often, an opinion leader is among the first to use a new product or service, and can then pass on his or her opinions of the product to others. If a consumer decided to save more, then his expenditure on buying reduces. Human beings are social animals. Most, though certainly not all, individuals and families pass through an orderly sequence of life stages that can be used to understand their purchasing patterns. For example, “soccer mom” might be the target market for minivans. Personal factors: 1. Social Group –A group is any collection of individuals with similar interests, opinions and activities. When a consumer has higher liquid assets, it gives him more confidence to buy luxury goods. Customs are modes of behavior that constitute culturally approved ways of behaving in specific situations. The pervasive influence of social context on consumer behavior is anecdotally and empirically well documented (Argo et al. Consumer Behaviour is an effort to study and understand the buying tendencies of consumers for their end use. Consumer perception is a major factor that influences consumer behavior. For example, the upper-middle class are generally ambitious, future-oriented people who have succeeded economically and now seek to enhance their quality of life. The decision process is affected by a number of factors such as culture, social class, personal influences, family, religion, region he […] Teenagers will be more interested in buying colorful clothes and beauty products. Reference groups are similar to opinion leaders in that they can have a profound influence on consumer behavior. Social Influence and Consumer Behavior (Spring 2013) Curator: Darren Dahl. For example, a doctor would buy clothes according to this profession while a professor will have different buying pattern. Consumers have certain attitude and beliefs which influence the buying decisions of a consumer. Social Factors are made up of : Reference groups Family Roles/ Status Reference Groups: – A person’s reference group consist of all the groups that have a direct/ indirect influence on the person’s attitude/ behaviour. A spouse and children, however, can exert an even more significant force on a consumer’s purchases. Each and every society across the globe has form of social class. Internal or psychological factors: The buying behaviour of consumers is influenced by a number of internal or psychological factors. 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