1. External Influences on Consumer Behaviour

2. Culture The sum total of learned beliefs, values, and customs that serve to regulate the consumer behavior of members of a particular society.

3. Influence of culture Consumers both view themselves in the context of their culture and react to their environment based upon the cultural frame work that they bring to that experience. Each individual perceives the world through his own cultural lens. Culture Satisfies Needs Culture exists to satisfy needs of the people of the society. It offers order, direction, and guidance in all phases of human problem solving:

4. Characteristics in Culture Culture is learned Enculturation and acculturation Language and symbols Ritual Sharing of Culture

5. Culture is Learned At an early age, we begin to acquire from our social environment a set of beliefs, values, and customs that make up our culture. Three distinct forms of cultural learning: 1. Formal learning: in which adults and older siblings teach a young family member “How to behave”; 2. Informal learning: in which a child learns primarily by imitating the behavior of selected others, such as family, friends, or TV stars. 3. Technical Learning: Which teachers instruct the child in an educational environment about what, how and why it should be done.

6. Enculturation and Acculturation The learning of one’s own culture is known as enculturation. The learning of a new or foreign culture is known as acculturation. Language and Symbols To communicate effectively with their audiences, marketers must use appropriate Language and symbols to convey desired products characteristics. Symbols VerbalNon verbal

7. Rituals A Ritual is a type of symbolic activity consisting of a series of steps occurring in a fixed sequence and repeated over time. The standpoint of marketers is the fact that rituals tends to be full with ritual products that are associated to some how enhance the performance of the ritual.

8. Selected Rituals and Associated product SELECTED RITUALSTYPICAL PRODUCTS WeddingJwellery,lehenga,safa etc 50th Wedding anniversary Catered party, card and gift, display of photos of the couple’s life together Diwali (festival) Crackers,idols,sweets etc. Valentine’s DayCandy, card, flowerss New Year’s EveChampagne, party, etc.

9. Culture is Shared Culture is viewed as group customs that link together the members of the society. Common language is the critical component that makes it possible for people to share values, experiences, and customs. Social Institutions transmitting the element of culture and sharing of culture 1.Family : primary agent for enculturation 2.Educational Institutions : imparts learning skills, history, patriotism, citizenship and technical training. 3.Religious Institutions : Perpetuate religious consciousness, spiritual guidance, and moral training. 4.Mass Media : wide range of cultural values.

10. Subcultures...... a subdivision of a national culture that is based on some unifying characteristic.... members share similar patterns of behavior that are distinct from those of the national culture.

11. Sub Culture Categories 1.Religion 2.Geographic region 3.Age 4.Gender Examples Hindu,muslim,christians etc North Indian,south Indians etc. Senior citizen, teenager Female, male

12. Cross Culture influence Cross culture influence are norms and values of consumers in foreign markets that influence strategies of multinational companies. Cultural differences in Nonverbal Communication to be taken care. Time : punctuality is given utmost importance in western culture. Space Agreements Symbols,colours

13. Social Class The division of members of a society into a hierarchy of distinct status classes, so that members of each class have either higher or lower status than members of other classes.

14. Social class Results from Socio- economic Factors Socio economic factors: Education, occupation Income and Heritage Social class –Upper,Middle and Lower Behaviours –Preferences, Purchases consumption pattern

15. Status Consumption The process by which consumers actively increase their social standing through (eye –catching )consumption or possessions.

16. Categorization of social class Upper class Upper Middle class Lower-Middle class Lower class

17. Social-Class Profiles THE UPPER-UPPER CLASS Small number of well-established families Belong to best country clubs and sponsor major charity events Serve as trustees for local colleges and hospitals Prominent physicians and lawyers May be heads of major financial institutions, owners of major long-established firms Accustomed to wealth, so do not spend money obviously THE LOWER-UPPER CLASS--NEW Wealthy Not quite accepted by the upper crust of society Represent “new money” Successful business executive Prominent users of their new wealth

18. continued THE UPPER-MIDDLE CLASS--ACHIEVING PROFESSIONALS Have neither family status nor unusual wealth Career oriented Young, successful professionals, corporate managers, and business owners Most are college graduates, many with advanced degrees Active in professional, community, and social activities Have a keen interest in obtaining the “better things in life” Their homes serve as symbols of their achievements Consumption is often eye-catching. Very child oriented

19. continued THE LOWER-MIDDLE CLASS--FAITHFUL FOLLOWERS Primary non-managerial white-collar workers and highly paid blue-collar workers Want to achieve “respectability” and be accepted as good citizens Want their children to be well behaved Prefer a neat and clean appearance.

20. Consumer Behavior and Social Class Clothing, Fashion, and Shopping The Pursuit of Leisure Saving, Spending, and Credit Social Class and Communication

21. Reference Group A person or group that serves as a point of comparison (or reference) for an individual in the formation of either general or specific values, attitudes, or behavior. Eg : family, friends etc

22. Indirect Reference Groups Individuals or groups with whom a person identifies but does not have direct face-to-face contact, such as movie stars, sports heroes, political leaders, or TV personalities.

23. Types of Groups Membership Groups : Formal and Informal Primary /Secondary Aspiration group: Anticipatory Symbolic

24. Types of Celebrity Appeals TYPEDEFINITIONEXAMPLE TestimonialBased on personal usage, a celebrity attests to the quality of the product or service Wasim akram diabetes check machine -Accuchek EndorsementCelebrity lends his name and appears on behalf of a product or service with which he/she may not be an expert Navvratan oil and Amitabh Bachhan. SpokespersonCelebrity represents the brand or company over an extended period of time

25. Broad Categories of Reference Groups influence Informative Influence: Normative influence : Comparative Influence :

26. Word-of-Mouth Communication Word-of-Mouth Communication (WOM) Much Information About Products and Services is Actually Conveyed by Individuals on an Informal Basis called Word-of-Mouth Communication (WOM). Factors That Encourage WOM Are: Person is Highly Involved With the Product Person is Highly Knowledgeable About the Product Person Has a Genuine Concern for Someone Else Person May be Uncertain About a Recent Purchase

27. Negative Word-of-Mouth Negative Word-of-Mouth:Negative Word-of-Mouth: Is weighted more heavily by consumers than positive comments.. May influence consumers’ attitudes toward a product as well as their intention to buy it. RumorsRumors are the chief form of negative WOM. BoycottsRumors often result in Boycotts of products, companies, or services.

28. Opinion Leaders Opinion Leader An Opinion Leader is Someone Who is Knowledgeable About related Products and Whose Advice is Taken Seriously By Others in a given situation. Have Prescreened, Evaluated, and Synthesized Product Information Have Prescreened, Evaluated, and Synthesized Product Information Are Similar to the Consumer in Values and Beliefs Have Prescreened, Evaluated, and Synthesized Product Information Are Socially Active in Their Community Are Technically Competent and Have Expert Power Are Often Among the First to Buy New Products Opinion Leaders Opinion Leaders

29. Extent of An Opinion Leader’s Influence Generalized Opinion LeadersVery few people are Generalized Opinion Leaders, someone whose recommendations are sought for all types of purchases. More likely, opinion leaders are either: MonomorphicMonomorphic, or an expert in a limited field. PolymorphicPolymorphic, or an expert in several fields. PolymorphicEven opinion leaders who are Polymorphic, tend to concentrate on one broad domain, such as electronics or fashion.

30. Identifying Opinion Leaders Self-Designating Method

31. Understanding internal /psychological factors influencing consumer behaviour Consumer as an Individual

32. Psycological Factors Motivation Learning Attitude Perception

33. Types of Needs Innate Needs/Primary Needs Physiological (or biogenic) needs that are considered primary needs or motives Eg : Food,Clothing,shelter etc Secondary Needs/Acquired needs Learned in response to environment. These are generally psychological Eg :self esteem,prestige,power, status affection etc

34. Motivation Process Hunger advertisements repetition advertisements Buying decision Specific goal /product Specific goal Motivation

35. What is Motivation Motivation is the driving force within individuals that impel them to action. This is that force which is produced by a anxiety as a result of unfulfilled needs.

36. Goals : result/fulfilled needs/wants Goals : The sought-after results of motivated behaviour. Generic goals are general categories of goals that consumers see as a way to fulfill their needs Product-specific goals are specifically branded products or services that consumers select as their goals. The goals selected by an individual depend on their: Personal experiences Physical capacity Prevailing cultural norms and values

37. Maslow’s Hierarchy of Need ICICI T