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.

Geographic subculture Religion subculture Gender subculture Age subculture Generation Y (1977-94) Generation X (1965-79) Baby boomers (1946-64) seniors Geographic subculture Religion subculture Gender subculture

Age subculture Themes 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 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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Social comparison theory 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=P A354&lpg=PA354&dq=indian+consumers+core+values&s ource=bl&ots=pxVFz- kGOc&sig=MnnfmvTHDBvdm0wub83pgiyTEVU&hl=en&s a=X&ei=4rMzVKrmJcjIuAS9jIKwAQ&ved=0CDIQ6AEwA w#v=onepage&q=indian%20consumers%20core%20values &f=false

Indian Core values

Values Values: Value system Cultural values directly influence how 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.

Values The List of Values (LOV): • Warm relationships • Self-respect • Warm relationships • Self-fulfillment • Sense of belonging • Respect from others • Excitement • Security • Sense of accomplishment • Fun and enjoyment in life

Values Identifies eight market segments that share similar end values. Values and Lifestyles (VALS): Identifies eight market segments that share similar end values.

Social Factors: 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 common man (slice of life commercials) 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