cb unit-iv (sociological influences on consumer decision making)

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By :

Prof. Amit Kumar

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Course: Consumer Behavior

Unit-1 Consumer in the Marketplace

Unit-2 Models of Consumer Behavior

Unit-3 Cultural Influences on Consumer Decision making

Unit-4 Sociological Influences on Consumer Decision making

Unit-5 Personal / Individual Influences on Decision making

Unit-6 Psychological Influences on Decision making

Unit-7 Consumer Decision Making Process

Unit-8 Consumer Influence & Diffusion of Innovation

Consumer Behavior

IILM-Graduate School of Management

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Consumer Behavior Social Influence on Consumer Behavior


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Social Factors

ReferenceGroups

Social Roles & Statuses

Family

In addition to cultural factors, a consumer’s behavior is influenced by such social factors as:



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Reference Groups • A person’s reference groups consist of all the groups that have a

direct (face-to-face) or indirect influence on his/her attitudes or behavior.

• Groups having a direct influence on a person are called membership groups.

• Some membership groups are primary groups, such as family, friend, neighbors and co-workers, those with whom the person interacts fairly continuously and informally.

• People also belong to secondary groups, such as religious, professional and trade-union groups, which tend to be more formal and require less continuous interaction.

• Aspirational groups are those a person hopes to join• Dissociative groups are those whose values or behavior an

individual rejects.



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Reference Groups: Opinion Leader • Manufacturers of products and brands where group influence is strong

must determine how to reach and influence opinion leaders in these reference groups.

• An opinion leader is the person in informal, product –related communications who offers advice or information about a specific product, such as which of several brands is best or how a particular product may be used.

‘Prior to the launch of its KitKat Kubes, a variant of the popular KitKat brand, Nestle hired an agency to create a buzz among opinion leaders in the age 16 to 25 market. A database of about 20,000 was sent text messages and then this database was whittled down to 100 opinion leaders by the phone questionnaire. The opinion leaders were sent a large box of KitKat Kubes. One project manager at Nestle said:’ It only takes 50 people to make a craze.’ But of course, it has to be right fifty people’.



http://www.nestle.in/default.aspx

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Opinion Leader: A Source of Information & Advice • Opinion Leaders are the source of both Information & Advice. They may

simply talk about their experience with a product, relate what they know about a product, or, more aggressively advice others to buy or to avoid a specific product.

• The kinds of product or service information that opinion leaders are likely to transmit during a conversation include the following:

1. Which of several brands is best: “In my opinion, when you consider picture quality versus price, Sony offers the best value in small digital cameras.”

2. How to best use a specific product: “I found that my walls look best when I paint with a roller rather than a pad.”

3. Where to shop: “ When Adidas has a sale, the values are terrific.”4. Who provides the best service: “ Over the past few years, I‘ve had my

car serviced and repaired at Tom’s Garage, and I think its service can’t be beat.”



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Reference Groups: Opinion Leader • An opinion leader is the person in informal……..

‘To reach opinion leaders involved with their African American communities, Chrysler is taking its cars to church. As part of its ‘Inspired Drives’ tour, in which the company sets up tracks around the country for customers to test its latest models, Chrysler is locating test drives at influential megachurches. Missionary Baptist Church in Georgia, is one. Situated on 250 acres, it has 25,000 members and a charismatic senior pastor, Bishop Long. Bishop Long hosts a weekly program on the Trinity Broad- casting Network and is an occasional advisor to government policy makers. By locating test drives at megachurches-and partnering with them at fundraising events, such as a Patti Labelle concert to raise funds for cancer research- Chrysler has found a powerful way to reach customers’.



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Reference Groups: Opinion Leader • An opinion leader is the person in informal……..

‘Brands like Levi’s, Provogue & Planet M have used teenage icons as brand ambassadors and endorsers very effectively, particularly by getting celebrities for in-store promotions’.



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Family• Family members influence buying decisions. In traditional joint

family, the influence of grandparents on major purchase decisions and to some extension the lifestyles of the younger generations, is still intact, though diminishing.

• In urban India, with the growth of nuclear families, and both wife and husband working, the role of women in major family decisions such as purchase of house, automobile and durables has grown substantially.

• In most cases joint decision making becoming a common phenomena with significant influence of teenage children, particularly in technology-savvy products such as cell phones, computer & music systems.



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WifeDominant

HusbandDominant

Joint

100 50 075 25

Women’s clothing

Pots & pans

Child clothing

groceries

vacations

TV sets

Family car Sport equipment

Lawn mower

Paint wallpaper

lamps

Men’s leisure clothing

Men’s business clothing

cameraFinancial planning

furniture

refrigerator

luggage

carpet

Toys/games

stereo

hardware

Extent of role specialization

Relative influence of husbands & wives

Informationsearch

Final decision



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Roles & Statuses

• The person’s position in each group can be defined in terms of role & status.

• A role consists of the activities a person is expected to perform.

• Each role carries a status. A senior vice president of marketing has more status than a sales manager and…

• People choose products that reflect and communicate their role & actual or desired status in society. Marketers must aware of the status symbol potential of product and brands.



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MFL’s offer of ready-made garments to the Rural Market



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Srikanth’s Dream- A store of home accessories



cb unit-iv (sociological influences on consumer decision making)

Leadership & Management