Unit 2 consumer behavior

CONSUMER BEHAVIOR
Presented by
Dr. D VARALAKSHMI
B.Tech,MBA, Ph.D
Lecturer in Management
JNTUA
CULTURE
• culture can be defined as the sum total of
learned beliefs, values and customs that serve
to guide and direct the consumer behaviour of
all members of that society.
• Culture is learned through three ways
1. formal learning
2. informal learning
3. technical learning
Characteristics of Culture
• Culture is learned.
• Culture regulates society –Norms, standards
of behaviour, rewards and punishments.
• Culture makes life more efficient
• All members follow same norms.
• Culture is adaptive.
• Culture is environmental.
• Multiple cultures are nested hierarchically.
Types of culture
• National culture
• Popular culture
• Sub culture
• Corporate culture
Hofstede’s Five Dimensions of Culture
• Culture has a profound impact on the way consumers
perceive themselves, products they buy and use,
purchasing processes, and the organisations from
which they purchase. Marketers, however, are giving
more attention, to understanding macro cultures and
how they affect consumer behaviour.
1. Individualism versus collectivism
2. Power Distance
3. Uncertainty Avoidance
4. Masculinity/femininity
5. Abstract versus associative thinking
Cultural Influences
• Culture influences the pattern of living, of
consumption, of decision-making by
individuals.
• Culture forms a boundary within which an
individual thinks and acts.
• It can be acquired from the family.
Unit 2 consumer behavior
Measurement of Culture
• Content Analysis
• Consumer Fieldwork
• Value Measurement Instruments
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.
Consumer Feedback
• Field Observation
– Natural setting
– Subject unaware
– Focus on observation of behavior
• Participant Observation
Field Observation
• A measurement technique that takes place
within a natural environment that focuses on
observing behaviour (sometimes without the
subjects’ awareness).
• Takes place within a natural environment
• Performed sometimes without the subject’s
awareness
• Focuses on observation of behaviour
Participant Observation
• 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
Culture and Marketing Strategy
• 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
CROSS CULTURAL CONSUMER
BEHAVIOUR
• Cross-cultural marketing is defined as ―the
effort to determine to what extent the
consumers of two or more nations are similar
or different.
• This will facilitate marketers to understand the
psychological, social and cultural aspects of
foreign consumers they wish to target.
Importance
A company can enter a foreign market as a
• Domestic exporter
• Foreign importer
• Foreign government-solicit the firm to sell abroad
The firm‘s objectives could be:
• To determine how consumers in two or more societies are
similar/different and devise suitable, appropriate strategies .
• Devise individualized marketing strategy if cultural beliefs, values and
customs of a specific country are different
Characteristic features of a firm going global:
• 1. High market share in the domestic market
• 2. Advantageous economies of scale
• 3. Access to marketing/manufacturing bases across global borders.
• 4.Availability of resources and capability to absorb huge losses
• 5. Product/technology clout
• 6. Cost and differentiation advantages
•
Problems in Cross Cultural marketing
1. Problems related to product selection: The marketer
going for cross cultural marketing has to select the
customers/ market not on the basis of the superficial
similarities of age or income, but by using the real
motivating factors that prompt them to accept or
reject products.
2. Problems related to promotion/marketing
communication: e.g. Ariel in the middle east and also
Pepsi
3. Problems related to pricing: the marketer has to adjust
his pricing policies according to the local economic
conditions and customs.
4. Problems related to selection of distribution channels:
Cross Cultural Consumer Analysis
• Cross-cultural consumer analysis can be
defined as the effort to determine to what
extent the consumers of two or more nations
are similar or different.
• A major objective of cross-cultural consumer
analysis is to determine how consumers in
two or more societies are similar and how
they are different.
Positive Effects
• Many consumers may take into consideration
the country of origin of a product.
• Country-of-origin commonly:
– France = wine, fashion, perfume
– Italy = pasta, designer clothing, furniture, shoes,
and sports cars
– Japan = cameras and consumer electronics
– Germany = cars, tools, and machinery
Negative Effects
• Some consumers have animosity toward a country
– People’s Republic of China has some animosity to Japan
– Jewish consumers avoid German products
– New Zealand and Australian consumers boycott French
products
Socio-Cultural Influences
• Marketing involves both technical and social
elements.
◦ Technical elements are generally universally
◦ Social elements are market specific and display
the cultural differences of a given society
• The impact of socio-cultural factors on
marketing is important in understanding
consumer behaviour and planning appropriate
market strategies
Socio-Cultural Dimensions
• Customs, lifestyles, and values that
characterize a society
◦include anything within the context of society
that has the potential to affect behaviour.
• Examples of socio-cultural variables.
◦ Population demographics, educational levels,
norms and values, attitudes toward social
responsibility...
Socio-Cultural Aspects marketers
should consider
• Aesthetics
• Education
• Language
• Law and Politics
• Material Culture
• Religion
• Social Organizations
• Technology
• Values and Attitudes
Unit 2 consumer behavior
Economic Factors
• Economic Factors are the factors that talk
about the level of sales in the market and the
financial position of the consumer, i.e. how
much an individual spends on the purchase of
goods and services that contribute to the
overall sales of the company.
Unit 2 consumer behavior
SOCIAL AND CULTURAL
ENVIRONMENT
• GROUP: A group may be defined as two or
more people who interact to accomplish some
goals.
a. Primary versus Secondary Groups : interaction
b. Formal versus Informal Groups : structure
c. Large versus Small Groups: size and
complexity
d. Membership versus Symbolic Groups:
association
SOCIAL CLASS
• The division of members of a society into a hierarchy of distinct
status classes, so that members of each class have relatively the
same status and the members of all other classes have either more
or less status.
Characteristics of Social Classes:
1. Persons within a given social class tend to behave more alike
2. Social class is hierarchical
3. Social class is not measured by a single variable but is measured as
a weighted function of one‘s occupation, income, wealth,
education, status, prestige, etc.
4. Social class is continuous rather than concrete, with individuals
able to move into a higher social class or drop into a lower class.
SOCIAL STRATIFICATION
• Social stratification refers to the system of ranking people into
groups according to one or more criteria deemed important to
society. These include race, colour and wealth among others.
• It can also be defined as the process by which society is divided in
terms of hierarchy where one social group is placed higher than
another group. This hierarchy is a rank order of groups and is linked
strongly to perceptions of ethnicity, colour, class and even gender.
• It is based on four principles:-
1. Social stratification is a trait of society, not simply a reflection of
individual differences
2. Social stratification carries over from generation to generation
3. Social stratification is universal but variable .
4. Social stratification involves not just inequality but beliefs as well
REFERENCE GROUPS
• Reference groups are groups that serve as a
frame of reference for individuals in their
purchase decisions.
• valuable perspective for understanding the
impact of other people on an individual's
consumption beliefs, attitudes, and behavior.
• Reference groups that influence general values or
behavior are called normative reference groups.
• Reference groups that serve as benchmarks for
specific or narrowly defined attitudes or behavior
are called comparative reference groups.
TYPES OF REFERENCE GROUPS
• A contactual group is a group in which a
person holds membership or has regular face-
to-face contact and of whose values, attitudes,
and standards he or she approves.
• An aspirational group is a group in which a
person does not hold membership and does
not have face-to-face contact, but wants to be
a member.
TYPES OF REFERENCE GROUPS
• A disclaimant group is a group in which a
person holds membership or has face-to-face
contact but disapproves of the group's values,
attitudes, and behavior.
• An avoidance group is a group in which a
person does not hold membership and does
not have face-to-face contact and disapproves
of the group's values, attitudes, and behavior.
Factors that Affect Reference Group
Influence
• Information and Experience
• Credibility, Attractiveness, and Power of the
Reference Group
• Conspicuousness of the Product
• Reference Group Impact on Product and
Brand Choice
• Reference Groups and Consumer Conformity
BENEFITS OF REFERENCE GROUP
• Increase brand awareness
• They serve to reduce perceived risk. (celebrity,
common man and expert)
FAMILY INFLUENCE
• The importance of the family or household
unit in consumer behavior arises for two
reasons:
1. Many products are purchased by a family
unit.
2. Individuals‘ buying decisions may be heavily
influenced by other family members.
STAGES IN FAMILY LIFE CYCLE
STAGES ECONOMIC
CIRCUMSTANCES
LIKELY BUYING BEHAVIOR
BACHELORHOOD
PARENTHOOD
POSTPARENTHOOD
DISSOLUTION
How Personal Influences is Related
with Consumer Behavior?
• These factors are not visible, though they
influence the consumer to a great extent.
1. Age and Life cycle Stage
2. Occupation And Income
3. Life Style
4. Personality
Unit 2 consumer behavior
1 sur 38

Contenu connexe

Tendances(20)

Similaire à Unit 2 consumer behavior(20)

Consumer behaviour, ch 3Consumer behaviour, ch 3
Consumer behaviour, ch 3
satishjoshidbs4.3K vues
cONSUMER bEHAVIOUR.pptxcONSUMER bEHAVIOUR.pptx
cONSUMER bEHAVIOUR.pptx
agreshgupta26 vues
Consumer behaviour and marketingConsumer behaviour and marketing
Consumer behaviour and marketing
Sukanti Sahoo1.4K vues
Social classSocial class
Social class
RonakMenghwani1269 vues
Consumer Behavior in HealthcareConsumer Behavior in Healthcare
Consumer Behavior in Healthcare
Zulfiquer Ahmed Amin12.6K vues
Consumer behaviourConsumer behaviour
Consumer behaviour
kawther Ali27.3K vues
MM 5.pptMM 5.ppt
MM 5.ppt
Sapnachauhan678 vues
Consumer behavior definitionConsumer behavior definition
Consumer behavior definition
Falak Sher46 vues
Consumer behaviorConsumer behavior
Consumer behavior
Olya Singaevska891 vues
Customer vs. consumerCustomer vs. consumer
Customer vs. consumer
Monika Dey2.1K vues

Dernier(20)

Human Connection in Modern Ecommerce Marketing - Kyle Allison, The Doctor of ...Human Connection in Modern Ecommerce Marketing - Kyle Allison, The Doctor of ...
Human Connection in Modern Ecommerce Marketing - Kyle Allison, The Doctor of ...
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions20 vues
Improve Your Digital Experience to Drive More Revenue - Alp Mimaroglu, SyscoImprove Your Digital Experience to Drive More Revenue - Alp Mimaroglu, Sysco
Improve Your Digital Experience to Drive More Revenue - Alp Mimaroglu, Sysco
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions18 vues
Executive Influence in the Digital Age - Zeev Wexler, Wexler Consulting GroupExecutive Influence in the Digital Age - Zeev Wexler, Wexler Consulting Group
Executive Influence in the Digital Age - Zeev Wexler, Wexler Consulting Group
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions44 vues
Panel - Digital Marketing Trends - Martin Weinberg, MarketGenesisPanel - Digital Marketing Trends - Martin Weinberg, MarketGenesis
Panel - Digital Marketing Trends - Martin Weinberg, MarketGenesis
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions34 vues
The Art and Science of Data-Driven Creativity (in Advertising) - Ken Gamage, ...The Art and Science of Data-Driven Creativity (in Advertising) - Ken Gamage, ...
The Art and Science of Data-Driven Creativity (in Advertising) - Ken Gamage, ...
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions18 vues
Driving value from first-party data in a privacy-centric world - Vimal Badian...Driving value from first-party data in a privacy-centric world - Vimal Badian...
Driving value from first-party data in a privacy-centric world - Vimal Badian...
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions49 vues
Content – Then, Now & Tomorrow - Danish Pervez, BfoundContent – Then, Now & Tomorrow - Danish Pervez, Bfound
Content – Then, Now & Tomorrow - Danish Pervez, Bfound
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions48 vues
Social Media Marketing Master Class - Uptin Saiidi, Up10 MediaSocial Media Marketing Master Class - Uptin Saiidi, Up10 Media
Social Media Marketing Master Class - Uptin Saiidi, Up10 Media
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions50 vues
Generative AI The New Wild West of SEO - Ryan Huser, ResignalGenerative AI The New Wild West of SEO - Ryan Huser, Resignal
Generative AI The New Wild West of SEO - Ryan Huser, Resignal
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions25 vues
Digital Marketing Trends - Kuralay Assainova, Liana TechnologiesDigital Marketing Trends - Kuralay Assainova, Liana Technologies
Digital Marketing Trends - Kuralay Assainova, Liana Technologies
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions49 vues
What I learned from Online advertising - Michelle Geere, AdbotWhat I learned from Online advertising - Michelle Geere, Adbot
What I learned from Online advertising - Michelle Geere, Adbot
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions31 vues
The Cost of Ignoring Enterprise User Experience - Kevin Richardson, INVIDI Te...The Cost of Ignoring Enterprise User Experience - Kevin Richardson, INVIDI Te...
The Cost of Ignoring Enterprise User Experience - Kevin Richardson, INVIDI Te...
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions36 vues
The Relationship Between Strategy, Marketing and Technology - Nikki Cockcroft...The Relationship Between Strategy, Marketing and Technology - Nikki Cockcroft...
The Relationship Between Strategy, Marketing and Technology - Nikki Cockcroft...
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions35 vues
Generative AI The New Wild West of SEO - Ryan Huser, ResignalGenerative AI The New Wild West of SEO - Ryan Huser, Resignal
Generative AI The New Wild West of SEO - Ryan Huser, Resignal
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions35 vues
The HUMAN Brand Building Lasting Customer Loyalty - Chris Malone, Fidelum HealthThe HUMAN Brand Building Lasting Customer Loyalty - Chris Malone, Fidelum Health
The HUMAN Brand Building Lasting Customer Loyalty - Chris Malone, Fidelum Health
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions34 vues
Predictive Data Generation for New Agile Marketing Systems - Michael Cohen, P...Predictive Data Generation for New Agile Marketing Systems - Michael Cohen, P...
Predictive Data Generation for New Agile Marketing Systems - Michael Cohen, P...
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions28 vues
Growing Beyond Expectations, 10 Marketing Lessons From Hyper-growth Companies...Growing Beyond Expectations, 10 Marketing Lessons From Hyper-growth Companies...
Growing Beyond Expectations, 10 Marketing Lessons From Hyper-growth Companies...
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions28 vues
Revolutionizing Marketing - Harnessing the Power of AI - Michael Letschin, BrevoRevolutionizing Marketing - Harnessing the Power of AI - Michael Letschin, Brevo
Revolutionizing Marketing - Harnessing the Power of AI - Michael Letschin, Brevo
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions32 vues

Unit 2 consumer behavior

  • 1. CONSUMER BEHAVIOR Presented by Dr. D VARALAKSHMI B.Tech,MBA, Ph.D Lecturer in Management JNTUA
  • 2. CULTURE • culture can be defined as the sum total of learned beliefs, values and customs that serve to guide and direct the consumer behaviour of all members of that society. • Culture is learned through three ways 1. formal learning 2. informal learning 3. technical learning
  • 3. Characteristics of Culture • Culture is learned. • Culture regulates society –Norms, standards of behaviour, rewards and punishments. • Culture makes life more efficient • All members follow same norms. • Culture is adaptive. • Culture is environmental. • Multiple cultures are nested hierarchically.
  • 4. Types of culture • National culture • Popular culture • Sub culture • Corporate culture
  • 5. Hofstede’s Five Dimensions of Culture • Culture has a profound impact on the way consumers perceive themselves, products they buy and use, purchasing processes, and the organisations from which they purchase. Marketers, however, are giving more attention, to understanding macro cultures and how they affect consumer behaviour. 1. Individualism versus collectivism 2. Power Distance 3. Uncertainty Avoidance 4. Masculinity/femininity 5. Abstract versus associative thinking
  • 6. Cultural Influences • Culture influences the pattern of living, of consumption, of decision-making by individuals. • Culture forms a boundary within which an individual thinks and acts. • It can be acquired from the family.
  • 8. Measurement of Culture • Content Analysis • Consumer Fieldwork • Value Measurement Instruments
  • 9. 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.
  • 10. Consumer Feedback • Field Observation – Natural setting – Subject unaware – Focus on observation of behavior • Participant Observation
  • 11. Field Observation • A measurement technique that takes place within a natural environment that focuses on observing behaviour (sometimes without the subjects’ awareness). • Takes place within a natural environment • Performed sometimes without the subject’s awareness • Focuses on observation of behaviour
  • 12. Participant Observation • Researchers who participate in the environment that they are studying without notifying those who are being observed
  • 13. 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
  • 14. Culture and Marketing Strategy • 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
  • 15. CROSS CULTURAL CONSUMER BEHAVIOUR • Cross-cultural marketing is defined as ―the effort to determine to what extent the consumers of two or more nations are similar or different. • This will facilitate marketers to understand the psychological, social and cultural aspects of foreign consumers they wish to target.
  • 16. Importance A company can enter a foreign market as a • Domestic exporter • Foreign importer • Foreign government-solicit the firm to sell abroad The firm‘s objectives could be: • To determine how consumers in two or more societies are similar/different and devise suitable, appropriate strategies . • Devise individualized marketing strategy if cultural beliefs, values and customs of a specific country are different Characteristic features of a firm going global: • 1. High market share in the domestic market • 2. Advantageous economies of scale • 3. Access to marketing/manufacturing bases across global borders. • 4.Availability of resources and capability to absorb huge losses • 5. Product/technology clout • 6. Cost and differentiation advantages •
  • 17. Problems in Cross Cultural marketing 1. Problems related to product selection: The marketer going for cross cultural marketing has to select the customers/ market not on the basis of the superficial similarities of age or income, but by using the real motivating factors that prompt them to accept or reject products. 2. Problems related to promotion/marketing communication: e.g. Ariel in the middle east and also Pepsi 3. Problems related to pricing: the marketer has to adjust his pricing policies according to the local economic conditions and customs. 4. Problems related to selection of distribution channels:
  • 18. Cross Cultural Consumer Analysis • Cross-cultural consumer analysis can be defined as the effort to determine to what extent the consumers of two or more nations are similar or different. • A major objective of cross-cultural consumer analysis is to determine how consumers in two or more societies are similar and how they are different.
  • 19. Positive Effects • Many consumers may take into consideration the country of origin of a product. • Country-of-origin commonly: – France = wine, fashion, perfume – Italy = pasta, designer clothing, furniture, shoes, and sports cars – Japan = cameras and consumer electronics – Germany = cars, tools, and machinery
  • 20. Negative Effects • Some consumers have animosity toward a country – People’s Republic of China has some animosity to Japan – Jewish consumers avoid German products – New Zealand and Australian consumers boycott French products
  • 21. Socio-Cultural Influences • Marketing involves both technical and social elements. ◦ Technical elements are generally universally ◦ Social elements are market specific and display the cultural differences of a given society • The impact of socio-cultural factors on marketing is important in understanding consumer behaviour and planning appropriate market strategies
  • 22. Socio-Cultural Dimensions • Customs, lifestyles, and values that characterize a society ◦include anything within the context of society that has the potential to affect behaviour. • Examples of socio-cultural variables. ◦ Population demographics, educational levels, norms and values, attitudes toward social responsibility...
  • 23. Socio-Cultural Aspects marketers should consider • Aesthetics • Education • Language • Law and Politics • Material Culture • Religion • Social Organizations • Technology • Values and Attitudes
  • 25. Economic Factors • Economic Factors are the factors that talk about the level of sales in the market and the financial position of the consumer, i.e. how much an individual spends on the purchase of goods and services that contribute to the overall sales of the company.
  • 27. SOCIAL AND CULTURAL ENVIRONMENT • GROUP: A group may be defined as two or more people who interact to accomplish some goals. a. Primary versus Secondary Groups : interaction b. Formal versus Informal Groups : structure c. Large versus Small Groups: size and complexity d. Membership versus Symbolic Groups: association
  • 28. SOCIAL CLASS • The division of members of a society into a hierarchy of distinct status classes, so that members of each class have relatively the same status and the members of all other classes have either more or less status. Characteristics of Social Classes: 1. Persons within a given social class tend to behave more alike 2. Social class is hierarchical 3. Social class is not measured by a single variable but is measured as a weighted function of one‘s occupation, income, wealth, education, status, prestige, etc. 4. Social class is continuous rather than concrete, with individuals able to move into a higher social class or drop into a lower class.
  • 29. SOCIAL STRATIFICATION • Social stratification refers to the system of ranking people into groups according to one or more criteria deemed important to society. These include race, colour and wealth among others. • It can also be defined as the process by which society is divided in terms of hierarchy where one social group is placed higher than another group. This hierarchy is a rank order of groups and is linked strongly to perceptions of ethnicity, colour, class and even gender. • It is based on four principles:- 1. Social stratification is a trait of society, not simply a reflection of individual differences 2. Social stratification carries over from generation to generation 3. Social stratification is universal but variable . 4. Social stratification involves not just inequality but beliefs as well
  • 30. REFERENCE GROUPS • Reference groups are groups that serve as a frame of reference for individuals in their purchase decisions. • valuable perspective for understanding the impact of other people on an individual's consumption beliefs, attitudes, and behavior. • Reference groups that influence general values or behavior are called normative reference groups. • Reference groups that serve as benchmarks for specific or narrowly defined attitudes or behavior are called comparative reference groups.
  • 31. TYPES OF REFERENCE GROUPS • A contactual group is a group in which a person holds membership or has regular face- to-face contact and of whose values, attitudes, and standards he or she approves. • An aspirational group is a group in which a person does not hold membership and does not have face-to-face contact, but wants to be a member.
  • 32. TYPES OF REFERENCE GROUPS • A disclaimant group is a group in which a person holds membership or has face-to-face contact but disapproves of the group's values, attitudes, and behavior. • An avoidance group is a group in which a person does not hold membership and does not have face-to-face contact and disapproves of the group's values, attitudes, and behavior.
  • 33. Factors that Affect Reference Group Influence • Information and Experience • Credibility, Attractiveness, and Power of the Reference Group • Conspicuousness of the Product • Reference Group Impact on Product and Brand Choice • Reference Groups and Consumer Conformity
  • 34. BENEFITS OF REFERENCE GROUP • Increase brand awareness • They serve to reduce perceived risk. (celebrity, common man and expert)
  • 35. FAMILY INFLUENCE • The importance of the family or household unit in consumer behavior arises for two reasons: 1. Many products are purchased by a family unit. 2. Individuals‘ buying decisions may be heavily influenced by other family members.
  • 36. STAGES IN FAMILY LIFE CYCLE STAGES ECONOMIC CIRCUMSTANCES LIKELY BUYING BEHAVIOR BACHELORHOOD PARENTHOOD POSTPARENTHOOD DISSOLUTION
  • 37. How Personal Influences is Related with Consumer Behavior? • These factors are not visible, though they influence the consumer to a great extent. 1. Age and Life cycle Stage 2. Occupation And Income 3. Life Style 4. Personality