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 subcultureThemes Generation Y Generation X Boomers

Purchasing behaviour

Savvy, Pragmatic

Materialistic Narcissistic

Coming of age technology

Computer in every home

MICROWAVE in every home

TV in every home

Price quality attitude

Value oriented Price oriented Conspicuous consumption

Attitude towards brands

Brand embracing

Against branding

Brand loyal

Behaviour towards ads

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

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Indian core values: Family orientation http://books.google.co.in/books?

id=ftOqpp6OTc4C&pg=PA354&lpg=PA354&dq=indian+consumers+core+values&source=bl&ots=pxVFz-kGOc&sig=MnnfmvTHDBvdm0wub83pgiyTEVU&hl=en&sa=X&ei=4rMzVKrmJcjIuAS9jIKwAQ&ved=0CDIQ6AEwAw#v=onepage&q=indian%20consumers%20core%20values&f=false

Indian Core values

ValuesValues

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.

ValuesValues

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

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

ValuesValues

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 Definition

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

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

Spokesperson 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