05-12-2024

UNITED UNIVERSITY
FACULTY OF COMMERCE & MANAGEMENT

MBA – SEMESTER – III

(ELECTIVE SPECIALIZATION - MARKETING)

SUBECT NAME – CONSUMER BEHAVIOR

SUBECT CODE – CMPMA3101T
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UNIT - 5
EXTERNAL INFLUENCES
ON CONSUMER BEHAVIOR

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SOCIAL CLASSES &

CONSUMER BEHAVIOURS
• Social Stratification, the division of members of a society
into a hierarchy of distinct social classes, exists in all
societies.
• Social class usually is defined by the amount of status that
members of a specific class possess in relation to members
of other classes.
• Social-class membership develops consumer attitudes and
behavior. The measurement of social class is concerned with
classifying individuals into social class groupings.
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• These groupings are of particular value to marketers, who

use social classification as an effective means of identifying
and segmenting target markets.

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FEATURES OF
SOCIAL CLASS
1. The members of each class have relatively the same
status
• A social class is defined by the amount of status, which the
members of that class have in comparison with members of
other social classes.
• The members in a particular social class have relatively the
same status.
• An individual or family achieves social class by acquisition of
skills, education, wealth and recognition.
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• The status of the member reflects the aggregate effect of

influence and recognition conferred on them by the society.
• This in turn is either more or less than the status of other
classes.

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2. Persons within a given class tend to behave alike

• Social classes are homogeneous divisions of the society.

• Each social class shows similar life-styles, values, status,
prestige and interests. So, the behavior pattern of the
members become similar.
• There are also shared attitudes and behavioral pattern
among members. So, the behavioral pattern differs among
social classes.

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• For example, a person belonging to middle class prefers

economically priced cars. But upper income group will prefer
highly priced cars.
• Thus, social classes exhibit varying buying pattern in
purchase of products that meets the life-style, status and
prestige of their members.

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3. Social class is hierarchical

• Social class is determined by a hierarchical classification of
individuals and families with a distinct status. Families can
climb the social ladder by achievement of members.
• When each generation within a family tends to do better,
there is an upward mobility in the social ladder.
• When young adults have less disposable income than their
successful parents, they may slide down in the class
hierarchy. The hierarchical aspect of social class is important
to marketers.

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• Consumers may prefer to purchase products favored by their

own or higher social class (e.g. imported luxury
automobiles).
• Consumers may avoid certain products because they
perceive the products to be lower class products.

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4. Social class is measured by

a combination of variables
• Researchers use a combination
of variables to measure social
class.
• A number of socioeconomic
factors are combined to form
one over all members of social
class standing.
• They better reflect the
complexity of social class than
a single variable.
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• For example, to know the consumer perceptions of mail and

phone order shopping, the socioeconomic status was studied
by using a composite of income occupational status and
education.
• It reveals that higher the socioeconomic status, the more
positive are the consumers ratings of mail and phone order
buying, relative to in-store shopping.

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5. Social class is mobile

• Social class membership is not hard and fixed. Individuals
can move either up or down in social class standing.
• The availability of education and opportunities for self-
development prompts success in business and in
life. Successful persons move up to the higher class.
• Signs of upward mobility can be found in India easily. Many
young men and women start their own business to have
higher social status.

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• Higher social classes become reference groups for ambitious

men and women of lower social status.
• For instance, plastic surgery was once affordable only for
movie stars and other wealthy people.
• Today, consumers of all economic strata undergo cosmetic
surgery.

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6. Social class and status differentiation

• Researchers measure social class in terms of social status. They
define each social class by the amount of status of the members
of that class.
• It is also known as “Social stratification“. Social stratification has
resulted in differentiated roles.
• For example, a person with higher status owns a car. A middle
class status person owns a two-wheeler. A person with lower
status owns a bicycle.
• This is the symbolic identification of role and status based on
social classification.

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SEVEN CATEGORIES OF
SOCIAL CLASS
1. Upper- Upper
• Upper-Uppers are the social elite who live on innate wealth and
have well-known families. They maintain more than one home
and send their children to the best schools.
• They are in the market for jewelry, antiques, homes, and foreign
vacations.
• While small as group they serve as a reference group to others to
the extent that other social classes imitate their consumption
decisions.

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2. Lower-Uppers
• Lower Uppers are persons who have earned high income or
wealth through exceptional ability in their profession or business.
• The lower‐upper class includes those with “new money,” or
money made from investments, business ventures, and so forth.
They usually come from the middle-class.
• They tend to be active in social and civic affairs and seek to buy
the symbols of social status for themselves and their children,
such as expensive cars, homes and schooling.
• Their ambition is to be accepted in the upper-upper status, a
status that is more likely to be achieved by their children than
themselves.
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3. Upper –Middles
• Upper Middles possess neither family status nor unusual wealth.
The primarily concerned with “career”.
• They have attained positions as professionals, independent
businesspersons, and corporate managers.
• They believe in education and want their children to develop
professional or administrative skills so that they will not drop into
the lower stratum.
• They are civic minded and are a quality market for good clothes,
homes, furniture and appliances.

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4. Middle Class
• The middle class is average paid white and blue-collar workers
who try to do the proper things.
• Often they will buy products to “keep up with the trends”. The
middle class believes in spending more money on “worth-while
experiences” for their children and aiming them towards
professional colleges.
• The report released by PRICE added that the share of middle
class in the total population rose from 14 per cent in 2004-05 to
31 per cent in 2021-22.
• One in every three Indians is "middle class" in India with income
between Rs 5 lakh and Rs 30 lakh per annum.
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5. Working Class
• The working class (or laboring class) comprises those engaged in
manual-labor occupations or industrial work, who are
remunerated via waged or salaried contracts.
• The working class are those minimally educated people who
engage in “manual labor” with little or no prestige.
• The working class depends heavily on relatives for economic and
emotional support, advice on purchase, and for assistance in
times of trouble.
• Unskilled workers in the class—dishwashers, cashiers, maids, and
waitresses—usually are underpaid and have no opportunity for
career advancement.
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6. Upper Lowers
• They are occupying the upper part of the lower class.
• Upper Lowers are working, though their living standard is just
above the poverty line.
• They perform unskilled work and are poorly paid.
• Often they are educationally deficient. Although they fall near
the poverty line, they manage to maintain some level of
cleanliness and hygiene.

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7. Lower Lowers
• They are underclass and those at lowest possible position in a
class hierarchy.
• Lower Lowers are visibly poor and usually out of work. Some are
not interested in finding permanent jobs and most are dependent
in charity for income.
• They live below the poverty line with limited to no participation in
the labor force
• Their homes and possessions are “dirty, ragged, and broken-
down”.

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CULTURE
• Culture consists of traditional ideas and in particular the values,
which are attached to these ideas. It includes knowledge, belief,
art, morale, law, customs and all other habits acquired by man as
a member of society.
• An accepted concept about culture is that includes a set of learned
beliefs, values, attitudes, habits and forms of behaviour that are
shared by a society and are transmitted from generation to
generation within that society.
• Two terms that are associated with culture are:
A. Enculturation–Learning about one’s own culture
B. Acculturation–Learning about a new culture
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Culture is learned through the following three ways:

1. Formal learning: Parents and elders teach children the proper
way to behave. For instance, you have been taught that you need
to study to be successful and happy in life. This learning may
influence your response both as a student and individual towards
education.

2. Informal learning: We learn by imitating the behaviour of our

parents, friends, or by watching TV and film actors in action.

3. Technical learning: Instructions are given about the specific

method by which certain things to done such as painting, dancing,
singing etc.
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Let us understand the influence of cultural factors on

buying decision of individuals with the help of various
examples.

• Females staying in West Bengal or Assam would prefer buying

sarees as compared to Westerns. Similarly a male consumer
would prefer a Dhoti Kurta during auspicious ceremonies in
Southern India as this is what their culture is.
• Our culture says that we need to wear traditional attire on
marriages and this is what we have been following since years.
• People in North India prefer breads over rice which is a favorite
with people in South India and East India.
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CHARACTERISTICS
OF CULTURE
• Culture is acquired through learning.
• Culture regulates society norms, standards of behaviour, rewards
and punishments.
• Culture makes life more efficient.
• All members follow same norms.
• Culture is adaptive.

Culture determines what people wear, eat, reside and travel.

Cultural values in India are good health, education, respect for
age and seniority
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CONTEMPORARY CHANGES IN CULTURE

In today’s culture, time scarcity is a growing problem, which
implies a change in beliefs. Some changes in our culture are:

1. Convenience:
• As more and more women are joining the work force there is
an increasing demand for products that help lighten and
relieve the daily household chores, and make life more
convenient.
• This is reflected in the soaring sale of washing machines,
microwaves, pressure cookers, mixer-grinders, food
processors, frozen food etc.
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2. Education:
• People in our society today wish to acquire relevant
education and skills that would help improve their career
prospects.
• This is evident from the fact that so many professional
educational centers are coming up, and still they cannot
seem to meet the demand.
• Therefore many career oriented & vocational institutes are
coming up with the idea of skill enhancement courses and
marketing their institutions on the basis of new way of
learning.
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3. Physical appearance:
• Today, physical fitness, good health and smart appearance
are on premium today.
• Slimming centers and beauty parlours are mushrooming in
all major cities of the country.
• Cosmetics for both women and men are being sold in
increasing numbers. Even exclusive shops are retailing
designer clothes.

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4. Materialism:
• There is a very definite shift in the people’s cultural value
from spiritualism towards materialism.
• We are spending more money than ever before on acquiring
products such as air-conditioners, cars, luxurious items etc,
which adds value to our physical comfort as well as to the
status.

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SUBCULTURES
Culture can be divided into subcultures: A sub-culture is an
identifiable distinct, cultural group, which, while following the
dominant cultural values of the overall society also has its own belief,
values and customs that set them apart from other members of the
same society.
Sub-culture categories are:
• Nationality: Indian, Sri-lanka, Pakistan, Canadian
• Religion: Hinduism, Islam, Sikh, Christian
• Race: black, white
• Age: young, middle aged, elderly
• Gender: Male, Female
• Occupation: Farmer, teacher, business
• Social class: upper, middle, lower
• Geographic regions: South India, North-eastern India
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1. Religion (Christianity, Hindu, Muslim, Sikhism,

Jainism etc)
• A Hindu bride wears red, maroon or a bright colour lehanga
or saree whereas a Christian bride wears a white gown on her
wedding day. It is against Hindu culture to wear white on
auspicious occasions. Muslims on the other hand prefer to
wear green on important occasions.
• For Hindus eating beef is considered to be a sin whereas
Muslims and Christians absolutely relish the same. Eating
pork is against Muslim religion while Hindus do not mind
eating it.
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• A sixty year old individual would not like something which is

too bright and colorful. He would prefer something which is
more sophisticated and simple. While a teenager would
prefer funky dresses and loud colours.
• In India widows are expected to wear whites. Widows
wearing bright colours are treated with suspicion.

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2. Status (Upper Class, Middle class and Lower Class)

• People from upper class generally have a tendency to spend
on luxurious items such as expensive gadgets, cars, dresses
etc.
• You would hardly find an individual from a lower class
spending money on high-end products.
• A person who finds it difficult to make ends meet would
rather prefer spending on items necessary for survival.
• Individuals from middle class segment generally are more
interested in buying products which would make their future
secure.
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3. Gender (Male/Female)
• People generally make fun of males buying fairness creams
as in our culture only females are expected to buy and use
beauty products.
• Males are perceived to be strong and tough who look good
just the way they are.

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CONCEPT OF FAMILY
What is a Family?
• A family is a group of two or more persons related by blood,
marriage, or adoption who reside together.
• The nuclear family is the immediate group of father, mother, and
child(ren) living together.
• The extended family is the nuclear family, plus other relatives,
such as grandparents, uncles and aunts, cousins, and parents-in-
law.
• The family into which one is born is called the family of
orientation, whereas the one established by marriage is the family
of procreation.
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What is Family Decision Making?

Family decision making is a concept in marketing & consumer
behavior where an individual decides to buy a certain product or
service after deciding it along with his or her family.
• Family decision making is a collective decision by the family, even
if the individual is going to buy the product or service entirely with
his/her own money.
• Individual members perform different roles in a family which
ultimately leads to a unique buying tendency of the family as a
whole. The roles are (refer next slide):

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1. Information Gatherers
These are the individual who share information about the product of
relevance among the family members. These people have great
power as they can selectively transfer information which they favor
and discard any information which are not liked by them, thus
playing a crucial role in family decision making.

2. Influencers
These people do not have the power to buy things but they have a
great power to influence the decision. For Ex- Children in family can
really influence the decision for which movie to watch in movie
theatre.
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3. Decision Maker
The decision maker has the power to decide whether to buy or not,
what to buy, when to buy, where to buy, etc. These family members
would discuss and listen to all the members but may have the final
or an important say in the decision. Most of the times, senior
members of the family make these decisions.

4. Purchaser
The purchase is the one which actually purchase the items following
the orders to decision maker. But it can also decide the product in
case of unavailability of product or may/may not buy according to
his/her will.
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Family Decision Buying Example

• A bachelor guy may freely spend money on gadgets or eating out
but once he has a family, his buying pattern changes. He is more
interested in buying mutual funds, insurance or house. If there is
a child, more money is spent on toys, nutritious food and
education.
• Also an example can be of a car. If there is a family, a person
might want to buy a car after consulting with everyone and based
on the needs like space required, features, mileage and other
preferences within the group.

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KEY FAMILY CONSUMPTION ROLES

There are eight distinct roles in the family decision-making process.

1. Influencers:
• Those family members who provide information and advice and
thus influence the purchase. The housewife tells her family about
the new eatery that has opened in the neighborhood and her
favorable description about it influences her husband and teenaged
children to also visit the restaurant.
• Influencers are the family member(s) who provide information to
other members about a product or service.

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2. Gatekeepers: Family member(s) who control the flow of

information about a product or service into the family.

3. Deciders: Family members who have the power to unilaterally or

jointly decide whether or not to buy a product or service. The
husband and wife may jointly decide about the purchase of a new
refrigerator.

4. Buyers: Those family members who actually buy a particular

product or service. A housewife may be the person who actually buys
all the foodstuffs, rations and toiletries, which are consumed by all
the family members.
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5. Preparers: Those family members who transform or prepare the

product into the form in which it is actually consumed. The
housewife may prepare the family meal using raw vegetables,
lentils, spices, oil and other ingredients.

6. Users: Those family members who use or consume a particular

product or service.

7. Maintainers: Family member(s) who service or repair the

product so that it will provide continued satisfaction.

8. Disposers: Family member(s) who initiate or carry out the

disposal or discontinuation of a particular product or service.
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REFERENCE GROUP
• A Reference group refers to a group of people you refer to, while
making buying decisions. It is a group that serves as a reference
point for an individual for his/her beliefs, attitude and behaviour.
• A group consists of two or more individuals who share a set of
norms, values or beliefs and have a defined relationship such that
their behaviour is interdependent.
• Family members, Relative, Friends, Colleagues and other close
acquaintance are usually termed as Reference Group.
• Common organizations like Colleges, Schools, Police Academies
and membership firms also fall under Reference Group.

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CHARACTERISTICS OF REFERENCE GROUPS

• Reference Group consists of people who share interests in
common.
• Opinions or recommendations made by people in Reference
Groups have a huge impact on the approach and behaviour of a
potential consumer.
• Reference Groups play an important role in setting standards
pertaining to purchase decisions made from time to time.
• Reference Groups become successful when homogeneity is found
in the same.
• All members associated with the group are expected to perform
certain rules and regulations set through mutual understanding.
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NATURE OF REFERENCE GROUP

1. Norms – These are unwritten codes or standards of conduct
that are assigned to an individual within a group.
2. Roles – These are functions that an individual assumes or that
the group assigns to an individual to attain group objectives.
E.g. The influencer, the gatekeeper, decision maker, purchaser,
consumer
3. Status – It is the position of authority that is designated within
a group. High status implies greater power and influence.
4. Socialization – It is the process by which an individual learns
the group norms and role expectations.

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TYPES OF REFERENCE GROUP

1. Primary Groups
• Primary reference groups are basically the set of people whom
you meet every day. They can be from your family, your close
friends, your roommates, etc.
• These people from primary groups may have a direct and strong
impact in your lives and your buying decisions since they are very
significant to you.
• Primary groups make you comfortable and give you a feeling that
they are with you when you are confused about a purchase.

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2. Secondary Groups
• Secondary reference groups are usually formal and they speak
less frequently. They might be professionals, your collogues, your
seniors at work or your acquaintance at club, etc.
• In secondary reference groups the power to influence people is
quite less as compared to primary reference groups as people in
these groups are not that comfortable in sharing their thoughts or
views on the purchase.

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3. Aspirational Group
• Aspirational group is the one to which a person may want to
become part of. They currently are not part of that group
but wish to become and get with that group.
• For doing the same, they try to dress, talk, act and even
think the way the members of that group do.
• For example, people who like Sachin Tendulkar wish to
become like him and meet him and so start purchasing and
using all those products that he endorses.

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4. Dissociative Group
• The people in these groups are totally opposite to the people in
the aspirational group. Here people deny of becoming or getting
connected to a particular group. They just hate being related to
that group.
• For example, if people don’t like a particular political community,
they would never like being connected to them. So they would try
all the possible ways to avoid the way in which they dress, think
or act.
• Thus marketers need to understand the likes and dislikes of the
consumers and also the groups to which they belong.

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5. Family
Family of a consumer plays an important role in the decision making process. The
parents, siblings, relatives all have their own views about a particular purchase.
Following are the roles in the family decision making process −
• Influencers − Influencers are the ones who give ideas or information about the
product or service to the consumer.
• Gate Keepers − Gatekeepers are the family members who usually panel the
information. They can be our parents or siblings too who can in any form provide
us the information about the product.
• Decision Makers − Family or our parents who usually have the power to take
decisions on our behalf are the decision makers. After the complete the research
they may decide to purchase the particular or dispose it.
• Buyers − Buyer is the one who actually makes the purchase of the product.
• End Users − The person who finally uses the product or consumes the service
is the ultimate consumer also called as End user as per the context.
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INFLUENCE OF REFERENCE GROUPS

ON CONSUMER BEHAVIOR
The involvement of members in a group can range anywhere between a simple one
or one with high dedication levels. It can be divided into:
1. Compliant
2. Identity
3. Internalization COMPLAINT

IDENTITY

INTERNATIONALIZATION

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1. Compliant
• This type of group members remain in a group paying the set
membership fees, participating in the meetings and other get
together in the instructed manner and adhere to things like dress
code etc. during all occasions.
• They do not undergo any change as far as their attitude and
personality is concerned just because they are the members of the
group.
• In a typical consumer scenario, being one of the members of the
group, people tend to go in for the brands and products when the
same is suggested by another group member.

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2. Identity
• People of this type tend to mend their attitudes and ideas to suit
the objectives of the organization they associate themselves with.
They will be more inclined towards attaching themselves with the
group through services and other such activities.
• They express their pride in being one of the group members and
show this as their key identity.
• In a real life purchase decision making scenario, any consumer
who identifies himself with the group he is associated with,
respects the opinion of the group members more than any other
thing.

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3. Internalization
• The involvement levels of people who fall in this category are
very high. Not only they act highly dedicated to the group but
they pull in others into the group.
• They motivate other members of the group to get involved in a
deeper manner. They become one with the group. Anyone with
such high levels of involvement in groups will go in for
recommendations from other in the group with respect to their
purchase decisions.
• They try to influence the purchase decision of others also basing
the same on the recommendations of other group members.

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Difference is an accident of birth and it should therefore

never be the source of hatred or conflict. The answer to
difference is to respect it.
- John Hume (Former Member of the European Parliament)

THANK YOU
END OF
UNIT - 5
Reference Books:
1. Schiffman Leon G. and Kanuk Leslie lazar- Consumer Behavoiur,
Pearson/ Prentice Hall.
2. Hawkins, Best and Coney- Consumer Behaviour, Tata Mc Graw Hill.
Dr. Nishant Dabhade

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