Module 3

ENVIRONMENTAL DETERMINANTS OF CONSUMER BEHAVIOUR

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Consumer behaviour encompasses the intricate process by which individuals allocate their e
resources-time, money, or effort towards various consumption-related items. This des a
comprehensive exploration of what they purchase, the rationale behind their purchases, inning of
purchases, the chosen shopping locations, the frequency of buying, the extent of debt utilization,
their post-purchase evaluations, and how these evaluations subsequently pact future buying
decisions. Moreover, it delves into the disposal of products after use. For an indication to thrive, it
must discern its target markets' needs, wants, and interests and then mind to offer superior
satisfaction more adeptly and economically than its competitors. pinnately, this endeavor should
be undertaken in a manner that upholds or even enhances the being of both customers and society.

Factors affecting Consumer behaviour

psycholgical •Motivation
•perception
•Learning

factors •Attitude

•Reference group
•Family

social factors •Roles and status

cultural •Culture
•sub Culture
•Social class

Factors
Personal •Age and life cycle stage
•Occupation
•Lifestyle

Factors •Econimic Circumstances

•Personality and self concept

These factors are encapsulated in the following paragraph.

Psychological factors influencing consumer behaviour

perception: How consumer interprets and make sense information about products and brands.

Motivation: The internal needs and desires that drive individuals to seek out purchase product’s

Attitudes des Cruisers overall evaluations and feelings onwards specific products or transits

Learning: The process through which consumers acquire knowledge and experiences that Impact
their choices,

Money: The ability to recall past experiences and information, affecting decision-making

Emotions: Feelings and moods that influence consumer preferences and buying onions

Personality: Enduring traits and characteristics that shape an individual's preferences and Behavior

Self-Concept: How consumers perceive themselves, which guides their product choices

Cognitive Processes: Mental activities like reasoning and problem-solving that influence decision-
making

Perceived Risk: Consumers evaluate potential adverse outcomes associated with a purchase.

SOCIAL FACTORS

Social factors are external influences that impact an individual's behaviour, decisions, and
preferences in a social context. These factors significantly shape consumer behaviour, influencing
what products or services people buy, how they buy them, and why.

Understanding these social factors is essential for businesses and marketers to create effective
marketing strategies, develop products that resonate with their target audience, and tailor their
messaging to align with consumers' cultural and social context.

Some key social factors that affect consumer behavior

1 Culture: Culture encompasses the values, beliefs, norms, and customs shared by a group of
people. It influences consumer behavior by shaping preferences, attitudes, and consumption
patterns. Different cultures have distinct choices for products, services, and communication styles.

2. Social Class: Social class refers to the hierarchical division of a society based on factors like
income, occupation, education, and lifestyle. Consumers from different social classes often have
different purchasing habits and preferences, Social class can impact the brands and products people
choose to associate with.
3.Reference Groups: Reference groups are the social circles to which an individual belongs
aspires to belong. These groups include family, friends, colleagues, and online communities.
People often seek validation and approval from their reference groups, influencing their purchasing
decisions and consumption behaviors.

4.Family Influence: Family members play a crucial role in shaping consumer behavior. Roles
within families, family traditions, and decision-making dynamics affect the products and services
households choose to buy.
Social Networks and social media: The rise of social media has significantly impact consumer
behavior. Recommendations and reviews from friends and online contentions preferences and
affiliations

6. Opinion Leaders and Influencers: Opinion leaders are individuals with high influence within
their social networks. Influences are often social media personalities with substantial following.
Their endorsernents and recommendations can strongly imp consumer choices.

7. Peer Pressure: Peer pressure refers to the influence of friends and peers on an individual
decision. Consumers may bay certain products or engage in specific behaviors to fit is we their
social groups

8. Social Norms and Values: Society's accepted norms and values can impact choices. For
example, environmentally conscious consumers may choose products that with their values, even
if they are more expensive.

9. Cultural Symbols and Trends: Certain symbols and trends become cultural market influence
consumer preferences. For instance, fashion, music, and lifestyle trails often d consumer choices.

10. Social Status and Identity: Consumers often use their purchases to communication social
status and self-identity. Brands and products that align with their desired image a more likely to
be chosen.

11. Cultural Subcultures: Within a larger culture, there are often subcultures with g values and
preferences. These subcultures can influence consumer behavior and prod choices,

We shall now discuss the influence of Reference groups, Family and Roles and Status on consumer
behaviour

1) REFERENCE GROUPS

In consumer behaviour, a reference group refers to a social group or category of individuals that
an individual use as a basis for comparing themselves and evaluating their attitudes. behaviour,
values, and opinions. Reference groups play a significant role in influencing individuals perceive
themselves and make purchasing decisions. These groups can, directly and indirectly, impact
consumer choices and behaviour.

FEATURES OF REFENCE GROUPS

Reference groups have several features that make them influential in shaping consume behavior
and decision-making. Here are some key features of reference groups:

1. Identification: Individuals may identify with a reference group based on common

characteristics, values, interests, or social affiliations. The stronger the identifications the greater
the influence of the reference group on the individual's choices.

2. Relevance: The relevance of a reference group to a particular decision of puss influence matters.
If a reference group's preferences align closely with the decision. is likely stronger.

3.Group Membership Whether an individual is a member of a particular reference group or

aspires to be member can affect the impact of that group on their behaviour Membership provides
exposure to group norms and values.

4.Social Distance: The perceived social distance between an individual and a reference group can
influence the group's degree of influence. Individuals may be me influenced by groups they
perceive as similar and relatable.

5. Conformity Pressure Reference groups can exert pressure for conformity, encouraging
individuals to align their choices and behaviors with group norms to gain acceptance and approval,

6.Information Source: Reference groups provide information, opinions, and experiences.

Individuals may turn to their reference groups for advice and recommendations about products and
services.

7. Norms and Values: Reference groups establish norms, values, and standards that guide
individual behavior. People often conform to these norms to maintain group harmony.

8. Aspirational Value: Aspirational reference groups represent the groups individuals desire to
belong to. Their influence stems from the aspiration to be associated with the group's
characteristics and lifestyle.

9. Opinion Leaders: Certain individuals are perceived as opinion leaders or experts within
reference groups. Their recommendations and opinions can carry more weight and influence the
group members.

10. Social Identity: Reference groups contribute to an individual's social identity. People often
make choices that align with the identity projected by their reference groups.

11. In-Group vs. Out-Group: People may distinguish between their in-group (reference group)
and out-group (those not belonging to the reference group). In-group members are more likely to
be positively influenced.
12. Media and Celebrity Influence: Celebrities and media figures can serve as aspirational or
indirect reference groups, impacting consumer behavior through endorsements, associations, and
role modeling.

13. Cultural Context: The cultural and societal context shapes the types of reference groups that
hold significance within a particular society or community.

14. Dynamic Nature: Reference groups can change over time due to shifts in social relationships,
life stages, and aspirations.

15. Multiple Reference Groups: Individuals often belong to multiple reference groups
simultaneously, each with its own set of influences on different aspects of their lives.

Understanding these features helps marketers and researchers comprehend how reference groups
influence consumer behavior and tailor strategies to appeal to specific reference group dynamics
for effective communication and engagement.

INFLUENCE OF REFERENCE GROUPS ON CONSUMER BEHAVIOUR

Reference groups have a significant influence on consumer behavior in various ways. Here is a list
of the key ways in which reference groups can impact individuals' choices and decisions:

1. Informational Influence: Reference groups provide valuable information, opinions, and

recommendations about products, services, and brands. Individuals often seek advice and guidance
from group members before making purchase decisions,

2. Normative Influence: Reference groups establish social norms and standards that guide
behavior. People conform to these norms to gain acceptance and approval from their groups.

3. Conformity and Social Approval: People often align their choices with those of their reference
groups to fit in, gain social approval, and avoid standing out negatively,

4. Value Expression: Consumers select products and brands that align with their reference groups'
values, attitudes, and lifestyles. This allows them to express their identity and affiliation.

5. Aspirational Influence: Aspirational reference groups represent the ideals and aspirations
individuals strive to achieve. People may imitate the behaviors and choices of these groups to
move closer to their desired identity.

6. Dissociative Influence: Individuals may avoid products or behaviors associated with reference
groups they do not want to be linked with to prevent negative associations.

7. Product Adoption and Rejection: Reference groups can influence the adoption or rejection of
products, services, and trends. Positive opinions from a reference group caps lead to adoption,
while negative opinions can lead to avoidance.
8. Decision-Making: The opinions and choices of reference group members can impact an
individual's decision-making process, helping them evaluate options and make mon informed
choices.

9. Brand Loyalty: Reference group preferences can contribute to developing brand loyalty. If a
reference group is loyal to a certain brand, its members may follow suit.

10. Fashion and Trends: Reference groups are pivotal in setting fashion trends and influencing
what is considered fashionable or desirable within a particular social circle.

11. Media and Entertainment Choices: Reference groups can shape media consumption,
entertainment preferences, and cultural interests. People may engage with content and activities
that their reference groups favor.

12. Social Media Impact: In the digital age, reference groups on social media platform can
significantly impact consumer behavior, with individuals often emulating influencers and
trendsetters.

13. Purchase Decisions: Reference groups can affect where and when individual’s mule
purchases. Recommendations from reference group members an influence we shop and what they
buy.

14. Risk Reduction People may rely on their reference groups to reduce uncertainty and mitigate
perceived risks associated with certain products or choices.

15.. Opinion Leaders: Influential members within reference groups, such as opinion leaders, can
have a more pronounced impact on the decisions of other group members.

16. Social Identity: Reference groups contribute to an individual's sense of identity and belonging
People's choices often align with the group's identity to strengthen their social connections.

REFERENCE GROUP POWER

Reference groups exert various power over individuals, influencing their behaviors, choices,
attitudes. These powers can be categorized into several types based on the mechanisms rough
which they impact consumer behavior. Here are the different powers of reference groups:

1. Informational Power: Reference groups possess informational power when they

provide individuals with relevant and valuable information about products, services, and brands.
Individuals seek advice, recommendations, and insights from their reference groups to make
informed decisions. The group's collective knowledge helps individuals navigate the complex
landscape of consumer choices.

2. Normative Power: Normative power stems from establishing social norms, values, and
standards within reference groups. People conform to these norms to gain acceptance and approval
from their groups. The fear of deviating from group expectations motivates individuals to align
their choices with the group's preferences.

3. Coercive Power: Coercive power involves using negative consequences or punishment to

influence behavior. Reference groups may exert coercive power by threatening social exclusion or
rejection if an individual does not conform to the group's norms and preferences. This fear of being
ostracized can lead to compliance.

4. Reward Power. Reward power arises when individuals receive positive reinforcement or
rewards for conforming to reference group norms. This can include social recognition, praise, and
acceptance from group members. Individuals are motivated to align their choices with the group's
preferences to gain these rewards.

5.Expert Power. Expert power is associated with influential members within reference groups
who possess specialized knowledge, expertise, or credibility. These opinion leaders or experts can
sway others' decisions due to their reputation and expertise in a specific area.

6.Referent Power: Referent power is based on individuals' admiration, respect, and emotional
connection toward their reference groups. People aspire to be like the group members they admire,
leading them to adopt the group's attitudes, behaviors, and preferences to enhance their sense of
identity and belonging.

7. Innovative Power: Innovative power involves introducing new ideas, trends, and behaviors by
reference groups. When groups adopt novel products or behaviors, their members may follow suit,
motivated to stay current and be part of the group's forward- thinking identity.

8.Conspicuous Consumption Power Reference showed their individuals consumption favored

by their groups. This con or s by consuming luxury ay or or high-status products serves to signal
their affiliation and social standing.

9.Social Comparison Power: Individuals often engage in social comparison by Somparing

themselves to their reference groups. This process can lead to adjustments behavior to align with
the group's perceived status, achievements, and attributes

10. Relational Power: Reference groups can shape individuals' relationships and social teractions.
Individuals may form friendships and connections with those with similar reference group
affiliations, creating a network of like-minded individuals.

11. Cultural Power: Some reference groups hold cultural significance, influencing individuals
adoption of cultural practices, traditions, and beliefs. These group contribute to the transmission
of cultural values and heritage.

12. Aspirational Power: Aspirational reference groups inspire individuals to adopt behaviors,
values, and attitudes that align with their desired identity. People may make choices to emulate the
lifestyles of these groups and move closer to their aspirational goals.
13. Escalation of Commitment Power: Reference groups can influence individuals to commit
more deeply to a particular choice or behavior. Once individuals align with reference group, they
may continue to invest in the group's preferences, reinforcing their sense of identity.

Understanding these powers helps businesses, marketers, and policymakers design strategies that
leverage reference groups to influence consumer behavior effectively, whether it's through targeted
marketing campaigns, product placements, or creating products that align with group norms and
aspirations.

FACTORS INFLUENCING THE ACCEPTANCE OF REFERENCE GROUP

1. Relevance and Similarity: Individuals are more likely to accept and be influenced by reference
group relevant to their identity, interests, and values. The more similar

2.Social Identities an individual identifies with a reference group's identity and values plays a
significant role. If the group's identity aligns with the individual self-concept, they are more likely
to accept its influence.

3.Perceived Attractiveness: If individuals perceive the reference group as attractive, prestigious,

or admirable, they are more likely to seek its acceptance and adopt its behaviors.

4..Group Size: Larger reference groups might exert stronger influence due to the increased
likelihood of encountering diverse opinions and a more comprehensive range of norms.

5.Social Status and Power: Reference groups with higher social status and power can have a more
substantial influence. Individuals often strive to align themselves with groups that are respected
and influential.

6. Opinion Leaders: Influential members within a reference group, such as opinion leaders or
experts, can enhance the group's acceptance and influence.

7.Group Cohesiveness: Cohesive reference groups, where members share close bonds and
interactions, tend to have a more pronounced impact on individual behavior.

8. Conformity Pressure: If a reference group exerts pressure for conformity, individuals may accept
the group's influence to avoid rejection or exclusion.

9. Cultural and Social Context: The cultural norms and societal values within a particular context
can shape the acceptance of specific reference groups. Cultural mlevance and alignment influence
the degree of acceptance.

10. Media Exposure: Exposure to reference group representations through media, such as social
media influencers, can impact individuals' acceptance and willingness to be influenced by them.
11. Life Stage and Identity Development: Different reference groups may be more influential at
different stages of an individual's life. People may be more open to accepting certain reference
groups as they develop their identities.

12. Degree of Interaction: More frequent interactions with reference group members, rither face-
to-face or digitally, can lead to greater acceptance and influence.

13. Personal Values: An individual's personal values and beliefs can impact their willingness to
accept a reference group's influence. If the group's values align with their own, they are more likely
to accept it.

14.Peer Pressure: The pressure exerted by peers to conform to reference group norms can
significantly impact acceptance and behavior.

TYPES OF REFERENCE GROUPS

1.Normative Reference Groups: Normative reference groups are those whose norms, v Nel
behaviors an individual seeks to conform to gain social acceptance and approval The bestablish
social standards that guide an individual's behaviory People align er Choices and actions with the
expectations of these groups to avoid rejection and main group harmony.

2. Comparative Reference Groups: Comparative reference groups are those against which
individuals compare themselves to assess their attitudes, behaviors, and achievements. The
comparison provides a benchmark for self-evaluation. These groups influence individu
perceptions of themselves and their self-esteem. Comparative reference groups cat positive
(aspirational) or negative (avoidance).

3. Indirect Reference Groups: Indirect reference groups are not directly visible or knows the
individual, but their influence is channeled through social norms, cultural values, a media
representation. These groups shape the individual's beliefs, preferences, a behavior indirectly.
They can encompass societal expectations, cultural trends, generalized representations in media.

4. Contractual Reference Groups: Contractual reference groups involve formal or communal

relationships, such as memberships or affiliations with organizations, clubs, or professional
associations. Individuals who enter into these contracts often adopt the norms and values the group
in exchange for benefits or membership privileges.

5. Aspirational Reference Groups: Aspirational reference groups are those individuals aspe to
join or emulate. Individuals are motivated by the desire to align themselves with these groups'
perceived values, behaviors, and status. Aspirational groups are often associated wi prestige,
success, and a desired lifestyle.

6. Discriminant Reference Groups: Discriminant reference groups represent categories

individuals do not belong to, and they make comparisons to distinguish themselves these groups.
Individuals may define their identity in opposition to these groups to eati their uniqueness and
differentiation.
7. Avoidance Reference Groups: Avoidance reference groups are those that individua
bandistance themselves from due to negative ferece groups are those that int pan. People may
reject these groups' behaviors, choices, or altitudes to prevent ne perceptions or stigmatization.

8. Non-Membership Reference Groups: These groups are not based on actual me but still
influence individuals due to their perceived relevance and significance.

9. Brand Communities: These reference groups form around shared interests in peticsite brands
or products. Consumers who feel strongly connected to a brand may become part its behaviors.

FAMILY

In consumer behavior, "family" refers to individuals connected by blood, marriage, adoption, or a

strong sense of shared responsibility and commitment. The family unit is crucial in fluencing
consumer behavior and purchase decisions. It is considered one of the most supificant reference
groups and social contexts that shape a person's attitudes, values, preforzaces, and consumption
patterns.

Family members often interact, communicate, and make joint purchase decisions and
consumption-related matters. Various family members, such as parents, siblings, spouses, and
chidem, shape an individual's consumer behavior through their roles, relationships, and mactions.
Here are some ways in which family impacts consumer behavior.

L Socialization: Family plays a vital role in socializing individuals, teaching them cultural norms,
values, and behaviors related to consumption. Children learn about brands, products, and
consumption practices from their parents and family.

2. Role Differentiation: Family roles and responsibilities, such as the roles of parents, children,
and spouses, influence decisions and who holds decision-making power for different types of
purchases.

3. Decision-Making Dynamics: Different family structures have varying decision-making

dynamics. In some families, decisions are centralized and made by one or a few members, while
in others, decisions are more participatory and involve multiple family members.

4. Influence on Purchase Decisions: Family members influence each other's purchase Jecisions
through suggestions, recommendations, and discussions about brand products, and services.

5. Joint vs. Individual Decisions: Some purchases are made collectively by the family unit, while
others are individual choices. The type of purchase and its significance often determine whether
it's a joint or individual decision.

6. Norms and Values: Family sets the foundation for an individual's norms and values related to
consumption. This can include factors like frugality, brand loyalty, environmental consciousness,
etc.
7. Intra-Family Conflicts: Conflicts may arise within the family when members have differing
purchasing preferences or priorities. These conflicts can influence the final decision or lead to
compromises.

8. Consumer Socialization: Family members are models for learning how to shop, make purchase
decisions, and evaluate products. Children observe their parents' behaviors and attitudes,
influencing their future consumption patterns.

9. Parental Influence: Parents substantially impact their children's consumer behavior directly
(by making decisions for them) and indirectly (by shaping their preferences and attitudes).

10. Life Stage Transitions: Family influences may change over different life stages, such as when
individuals move out of their parent's home, start their own families, or become caregivers for
elderly family members.

11. Family Communication: Open communication within families allows for sharing
information, opinions, and advice about products and services.

12. Brand and Product Loyalty: Family traditions and loyalty to specific brands or products can
be passed down through generations, impacting buying decisions.

FAMILY LIFE CYCLE

The family life cycle typically consists of the following stages:

Bachelor Stage: This stage includes young, single individuals who have not yet formed their
families. Their consumption patterns may be characterized by independence, experimentation, and
spending on personal interests and experiences. Some examples of expenditure that are typically
associated with the Bachelor Stage are:

 Entertainment and social activities

 Personal care products and services

 Technology gadgets

 Dining out and fast food

 Travel and vacations

Honeymoon Stage: This stage involves newly married couples setting up their household Stage:
This stage involving home and purchasing furniture, appliances, and route may focus on
establishing af expenditures that are typically associated with

Honeymoon Stage are:

  Household furnishings and appliances

 Home decor and renovation expenses

 Wedding-related expenses

 Home entertainment systems

Parenthood Stage -
 Baby clothing, furniture, and equipment

 Diapers and baby care products

 Childcare and babysitting services

 Pediatric medical expenses

 Maternity and baby-related classes

4. Parenthood Stage Full Nest I: Families have young children who depend on them Spending
continues to focus on child-related expenses, education, and family-oriented activities. Some
examples of expenditures that are typically associated with the Parenthood Stage - Full Nest I are:

 School supplies and educational expenses

 Children's clothing and shoes

 Family outings and activities

 Children's hobbies and sports equipment

 Health and wellness products for the family

5. Parenthood Stage Full Nest II: Families in this stage have older children or teenagem.
Spending may shift towards education, extracurricular activities, and more discretionary items as
children become more independent.Some examples of expenditures the ar typically associated
with the Parenthood Stage - Full Nest II are:

 Education-related expenses (tutoring, test prep)

 Family vacations and travel

 Electronics and gadgets for children

  Personal care products for teenagers

6. Parenthood Stage Empty Nest I: Children leave home for higher education employment in
this stage. Parents may have more disposable income, and spending coul directed toward travel,
leisure may have more disposable income, and spee expenditures that are typically associated with
the Parenthood Stage - Empty Nest I am

 Travel and leisure activities

 Home renovations and upgrades

 Fitness memberships and wellness programs

 Entertainment and Hobbies

 Retirement planning and investments

Parenthood Stage - Empty Nest II: At this stage, parents are often near retirement age or have
already retired. They may continue to focus on travel, hobbies, and health-related expenditures.
Some examples of expenditures that are typically associated with the Parenthood Stage-Fimpty
Nest II are:

 Travel and vacation packages

 Health and medical expenses

 Home maintenance and improvements

 Leisure and cultural activities

 Seniors' social clubs and memberships

Solitary Survivor: This stage involves individuals who are single again due to divorce, separation,
or the death of a spouse. Their spending patterns may be influenced by their penonal needs and
lifestyle preferences. Some examples of expenditures that are typically asociated with the Solitary
Survivor are:

 Solo travel and experiences

 Health and wellness products

 Financial planning and investments

 Hobbies and personal interests

  Social activities and memberships

DIFFERENT ROLES IN THE FAMILY DECISION PROCESS

in the family decision-making process, various individuals play distinct roles based on their in the
in purchasing decisions. These roles collectively be the outcome of the decision-making process.
The functions can vary based ctively plexity of the decision and the nature of the product or service
being considered

Here are the different roles typically observed in the family decision process:

Initiator. The initiator is the individual who first recognizes the need or desire for a paticular
product or service. They may become aware of a problem, opportunity or desire mething new. The
initiator's role is to initiate decision-making by suggesting a solution. For example, imagine a
teenager interested in playing a musical instrument. The teenages fires to take up guitar lessons
after seeing a friend's performance at school.

Influencer, Influencers provide suggestions, advice, or opinions that influence decisions making.
They may not necessarily make the final decision, but their input carries weight and impacts how
others perceive the options. Influencers can be family members or externa sources, such as friends,
colleagues, or experts. Consider the previous example teenager's older sibling is an accomplished
guitarist and suggests that learning to play guitar would be a great idea. The sibling's opinion
carries weight and influences teenager's decision.

. Gatekeeper: The gatekeeper controls the flow of information and access to the deci 3 making
process, They determine which options and information reach other f members. This role is often
seen in families with children, where parents decide whit member services are consideration. The
parents decide which couple why prodich is considering a family children for their impus, decide
which destinations to and present these options to the input.

Decision Maker: The decision oputers in this individual pltimately makes the fas Dhoice among
the available optioned Considering the Ponsibilities include entf choicnation, comparing
alternatives, and considering the family's preferences, neob informationstraints. Continuing with
the family vacation, example, after doming bodens and considering the family's preferences and
budget, the parents decide for the vacation. wher

Purchaser: The purchaser is the individual who physically acquires the product or no This person
may or may not be the same as the decision maker. For example, par decide on a toy for their child,
but the child accompanies them to the store to purchase the vacation scenario, the parents make
the reservations, book accommodation purchase tickets for the chosen destination.

User: Users are the individuals who will directly consume or utilize the product or serie Their
preferences and needs play a significant role in the decision-making prices especially for products
that are highly personal or involve personal experiences. The ent family, including parents and
children, will be the users of the vacation experience. The comfort, interests, and preferences will
influence the activities and choices made during de trip.

Disposer: The disposer is responsible for deciding how to dispose of or replace a probat once it
is no longer useful or needed. This role is particularly relevant for durable goods and items with a
longer lifespan. After the family vacation, the parents decide to sell or de some old luggage that is
no longer needed.

Observer: Observers are family members who are not directly involved in the decise making
process but are aware of the choices being considered. Their reactions and opin might be
considered, especially if the decision has broader implications for the family. It same family
vacation scenario, grandparents might be observers who are aware of vacation plans and provide
their opinions or suggestions even though they are not dint involved in the decision-making
process.

FUNCTIONS OF FAMILY

1.Economic Well-being:

Budgeting and Spending: Families influence consumer behavior by determining how financial
resources are allocated. Economic decisions, such as budgeting, saving, and spending patterns,
impact the types of products and services that can be purchased.

Influencing Consumption Patterns: Families discuss financial priorities and onstraints affecting
each member's choices. For instance, a family might collectively decide to invest in education,
health, or leisure activities, influencing purchasing decisions in those areas.

2.Religious Values:

Guiding Consumption Choices: Religious values and beliefs often dictate what products and
services are considered appropriate or aligned with one's faith. Families may make consumption
decisions based on religious dietary restrictions, clothing preferences, and other cultural practices.

3. Interpersonal Skills:

Negotiation and Decision-making: Family members learn interpersonal skills throu interactions
related to consumer decisions. Negotiating preferences, compromiting choices, and reaching a
consensus will all contribute to developing interpersonal dil

4. Moral and Ethical Values:

Informed Consumer Choices: Families include slipped ethical values that p Informer behavior.
Ethical considerations, for de supporting sustainable prod avoiding products with exploitative
practices, or making socially responsible choices

5. Social Relationships:

Shared Experiences: Consumer choices can be influenced by a desire to foster Families may
engage in shared activities, such as dining vacationing, strengthening bonds, and creating lasting
memories. Gift-Giving and Symbolism: Family members exchange gifts that hold sentiment value.
Consumer choices, such as the type of gift selected, can convey emotions and
strengthen family ties.

6. Suitable Lifestyle:

Lifestyle Choices: Families often choose a suitable lifestyle that aligns with thet values and
resources. Consumer behavior is influenced by choices related to homing transportation, leisure
activities, and more, all of which contribute to their choses lifestyle.

7. Emotional Support:

Coping Mechanisms: Family members provide emotional support during challenging times.
Consumer behavior might be influenced by a desire to uplift or reward oneself or others through
emotional coping or celebration.

Symbolic Purchases: Emotional support can lead to symbolic purchases that bell meaning within
the family context. For example, buying a special meal or item celebrate achievements or
milestones.

VALUE LIFESTYLE MODEL

Primary Motivation: The primary motivation dimension of the VALS model focuses
understanding the psychological and emotional drivers that influence consumer behavior
categorizes individuals based on their core values, aspirations, and underlying motivations wh
purchasing. This dimension is divided into three main categories

Ideals: Consumers primarily motivated by " Ideals" are driven by a desire for wit more significant
societal issues, such as environmental sustainability, social justice, are concerned b valuesire often
stracted products that align with their ethical and moral values,

Achievement: Consumers motivated by Achievement are focused on per Achieve status, and
recognition. They seek products and experiences that enhance se Image and communicate their
accomplishments to others. Brands emphasizing qui prestige, and social recognition resonate with
these consumers.

Self-Expression: Consumers motivated by "Self-Expression value individual creativity, and the

freedom to express their unique identities. They are attracted products that allow them to stand out
from the crowd and communicate their Brands offering customizable options and innovative,
unconventional products w likely appeal to self-expression-oriented consumers.

Resources Dimensions: This dimension categorizes individuals based on their econom and
psychological resources. It is divided into three segments:

Innovators: These consumers have high resources, both economically mi psychologically. They
are open to adopting new products and are often among the for to try innovative offerings.

Thinkers: Thinkers have resources but tend to be more rational and pragmatic in ther decision-
making. They carefully evaluate options and gather information before making choices.

Achievers: Achievers are well-off in terms of resources and seek products that refl their status and
success. They value established brands and products that align wi their desired image.

VALS SEGMENTS

VALS divides customer’s segments into Thinkers, Achievers, Experiencers, Beleves Strives, and
Makers. We will explain these segments in the following paragraphs

1. Thinkers: Thinkers are practical and rational consumers who value information knowledge.
They make decisions based on careful consideration and research. example could be someone who
spends time reading reviews, comparing features evaluating options before purchasing a new
smartphone. They might prefer probes that offer clear benefits and serve a functional purpose.

2. Achivers . Achievers motivated by success , status. They might choose high-end cars or designer
clothing to signal their achievements to others

3.Experiencers. Es peeking novel driven by excitement and adventure. They enjoy trying things
and novel experiences. An example might be someone galarty attends music festivals, trics new
outdoor activities, and actively engages in the latest trends. They might be early adopters of tech
gadgets and enjoy exploring different cuisines,

4.Belevers: Believers have strong traditional values and are often motivated by religious or family
oriented considerations. An example could be an individual who prefers to buy products from
companies that align with their religious beliefs or support family values. They might choose
brands that prioritize social responsibility and community involvement.

Strivers: Strivers aspire to improve their social status and lifestyle. They may not have the
resources of Achievers, but they still seek products that project success. An example could be
someone who buys affordable luxury items, like a designer handbag from a mid-cange brand, to
appear more affluent than they are.

Makers: Makers are practical and creative individuals who enjoy hands-on activities and elf-
expression. An example might be someone who enjoys DIY home improvement projects and
prefers to create personalized gifta for friends rather than buying store-bought sums. They might
be interested in tools, craft supplies, and workshops.

HOUSEHOLD (FAMILY) DECISION-MAKING PROCESS

The family decision-making process in consumer behaviour refers to how family members vely
make choices about purchasing products or services. Families are often considered a may mit of
consumption, and the dynamics within a family significantly influence how we reached regarding
what to buy, where to buy it, and how to use it. The following dupan explains the family decision
making process in detail

Initiators: The process often begins with an initiator recognizing a need of desine fo product or
service. This person might be a child who sees an advertisement for a parent who identifies a need
for a household appliance. A child who sees commerciul popular toy may expresses a strong desire
to have it.

Influencers: Individuals, including children, parents, or external sources (friends, med fe can
influence the initiation stage. For instance, a child might initiate the desire for a produt due to peer
influence or media exposure.

Communication to Children and Parents: Marketers use different strategits Communicate with
children and parents. Children might be targeted with appealing vi while parents might receive
detailed information about product features and benefits

Decision-Makers: Depending on the decision-making dynamics within the family, pre or parents
and children, might be decision-makers. Their preferences, values, considerations influence the
final decision. Influencers, which could be the child themselves, other family members, friends, or
media, can shape parents' decisions. Parents consider ther child's preferences, interests, and
feedback, as well as their own values and boden constraints when making the final decision.

Purchase: The purchase of goods by parents for their children is a common and essential aspect
of consumer behavior within families. Once a decision is reached, parents proced with the
purchase. This involves selecting a specific product, choosing a retailer or platfom and completing
the transaction. Parents might also involve their children in the purchase process, especially for
items where the child's preferences are necessary, like clothing, toys. or accessories.

Users: The individuals who will use the purchased product are crucial. Their need preferences,
and experiences with the product can impact future decisions and influenz word-of-mouth
recommendations. The individuals who will use the purchased product an crucial. Their needs,
preferences, and experiences with the product can impact fun decisions and influence word-of-
mouth recommendations.

CONSUMER AND THEIR IMPACT ON MARKETING

The role of consumers in consumer behavior is a fundamental aspect of understanding individuals
interact with products, services, and the marketplace. Consumers play roles in influencing their
purchasing decisions, behaviors, and interactions within the Here are some of the leading roles
consumers take on in the realm of consumer behavior:

1. Buyers: This is the most straightforward role of consumers. They are the individual who engage
in the process of purchasing goods and services to satisfy their needs and the Consumers assess
the available options, compare features, prices, and benefits and then decide which products or
services to buy.

2. User :can significantly impact their perceptions, satisfaction, and likelihood of repeat purchases.
Positive experiences can lead to brand loyalty, while negative experiences deser future purchases.

3.Influencers: Consumers can act as influencers within their social circles. Their opinions,
reviews, and recommendations can substantially impact the purchasing decisions of friends,
family, and peers. This role has become even more prominent with the rise of social media and
online reviews.

4 Decision-Makers: Certain individuals have a more significant say in purchasing decisions in

many households. When choosing products or services, these decision- makers might consider
factors like budget, preferences, and family needs.

5. Researchers: Consumers often engage in research before making a purchase. They seek out
information, read reviews, compare products, and evaluate options to make informed decisions.
The easy access to information on the internet has amplified this role

6.Innovators and Early Adopters: Some consumers are trendsetters who eagerly adopt new
products, services, or technologies as soon as they become available. Their willingness to try new
things can influence the adoption rate among other consumers.

7. Advocates: When consumers have positive experiences with a brand or product, they might
become advocates who actively promote and defend the brand. They might do this through word-
of-mouth recommendations, online reviews, and social media sharing.

8.Co-Creators: In some cases, consumers are invited to participate in creating or customizing

products and services. This might involve providing feedback, suggesting improvements, or
collaborating directly with companies to develop new offerings.

9. Critics and Complainers: Consumers dissatisfied with a product or service can play the role
of critics or complainers. Their feedback can prompt improvements and changes, whether directly
to the company or through public channels.

10. Sustainability- and Ethics-Conscious Consumers: In recent years, consumers have become
more aware of their consumption choices' ethical and environmental impact. Many consumers now
take on the role of responsible buyers, supporting brands and
CONSUMER STATUS

The social status of a consumer refers to their relative position or rank within a social group. It
reflects the prestige, influence, and respect an individual holds compared to hers within their
society. One's wealth or income does not solely determine social status; it is by factors such as
education, occupation, lifestyle, achievements, and the recognition
of peers and society. Several factors influence the social status of a consumer. This factory ca be
categorized into two main types: ascribed factors and achieved factors. Ascribed fucion those that
an individual is born into or inherits, while achieved factors are those that an individu attains
through their efforts and accomplishments. Here are some key factors that influen consumer's
social status:

ASCRIBED FACTORS:

1 Birth and Family Background: A Family wealth, educations, often starts with lo Births
socioeconomic background, Family wealth, education, and social con can influence an individual's
early social status.

2. Age and Gender: Age and gender play roles in ascribing social status. Societies a Ane specific
expectations and perceptions about the status of different age groupe genders.

3. Ethnicity and Race: In some societies, ethnicity, and race can significantly impar individual's
social status due to historical, cultural, and systemic

4. Geographical Location: The region or country in which an individual is born and raised can
influence their social status due to differences in economic developmen education, and
opportunities.

5. Inherited Assets: The inheritance of assets, such as property, financial resources, heirlooms,
can contribute to an individual's social status.

ACHIEVED FACTORS:

1. Education: Higher levels of education are often associated with higher social stan Educational
achievements can lead to better career opportunities and increased respec within society.

2. Occupation and Career Success: The type of profession and career achievements ca
significantly impact social status. Certain professions are often perceived as having higher prestige
and influence.

3. Income and Wealth: Economic prosperity and financial success contribute individual's social
status. Higher-income and wealth often provide access to boor opportunities and a more luxurious
lifestyle.

4. Professional Achievements: Recognition and accomplishments in a specific field. as winning

awards, publishing influential work, or enhance social status. making significant contributions,
5. Philanthropic Activities: Engaging in charitable endeavors and contributing to so causes can
enhance an individuals social status by highlighting their commitme positively impacting society.

6. Network and Connections: Building and maintaining a strong social and profesio network can
increase social Building and mentionin provide opportunities, aces resources, and recognition.

7.Leadership positions in organizations, community groups, or titutions can elevate an

individual's social status by demonstrating their ability to influence and guide others.

8.Inovations and Entrepreneurship: Creating innovative products, services, or dresses can

elevate an individual's social status by showcasing their creativity, vision, and impact on the
market.

9.Public Recognition: Being recognized in the media, receiving awards, and gaining public
attention for positive achievements can contribute to higher social status

CULTURAL FACTORS

Culture in consumer behavior refers to the set of shared values, beliefs, norms, tradition, symbols,
and practices within a particular society or social group. It encompasses the way people live, their
customs, and their worldview. Culture plays a significant role in shaping consumen attitudes,
preferences, behaviors, and purchasing decisions. It influences how individuals perceive products
and services and how they interact with brands and make consumption choices.

Several aspects of culture have a direct impact on consumer behavior:

1. Values and Beliefs: Cultural values are the fundamental principles that guides society's behavior
and preferences. Consumers often align their consumption choles with these values. For instance,
cultures emphasizing environmental sustainability might lead consumers to prefer eco-friendly
products.

2. Norms and Social Customs: Cultural norms dictate acceptable behaviors within a society. These
norms extend to consumer behavior, influencing what is consideml appropriate or inappropriate
when purchasing and using products. For example, cultuni norms might dictate appropriate
clothing for different occasions.

3. Symbols and Rituals: Culture is rich with symbols and rituals that hold meaning within society.
Consumers associate products with these symbols and rituals, impacting their preferences. For
instance, certain gifts might be exchanged during specific holidays or celebrations.

4. Language and Communication Styles: Language is a key cultural element that shapes how
consumers perceive and engage with brands. Companies often adapt this marketing messages to
resonate with the cultural nuances of their target audience’s language and communication styles.
5. Aesthetics and Design Preferences: Cultural aesthetics influence design affecting product
appearance and packaging tape, and visual elements cultural significance can impact consumer
perception and desirability.

Social Structure decision-make Cultural norms define social roles, and these roles can impact
consumer decline fur instance, familial roles purchasing decisions within a household

Cultural Subgroups: Within a larger culture, there can be subgroups with unique beliefs and
preferences. Marketers often target these subcultures to tailor products and messaging to specific
consumer segments.

Cultural Trends and Influences: Cultural trends and popular movements can impact consumer
behavior. For instance, shifts toward health and wellness might lead consumers to seek healthier
food and fitness-related products.

Globalization and Cross-Cultural Influences: As cultures interact and globalize, consumers may
adopt elements from other cultures. This can lead to the fusion of different cultural preferences
and behaviors,

Understanding cultural influences is crucial for businesses and marketers to reach and consumers
effectively. Marketers need to consider cultural sensitivity and tailor them resonate with their
target audiences' cultural values and norms. Failure to recognize impact cultural differences can
lead to misinterpretations, misunderstandings, and sulk marketing campaigns.

CULTURE & CROSS-CULTURAL INFLUENCES

A subculture refers to a distinct group within a larger society that shares distinctive values,
behaviour, and preferences that distinguish it from the mainstream culture. Subcultures megs based
on various factors, such as shared interests, beliefs, hobbies, demographics, les, and experiences.
These groups often form around shared experiences, interests, or ties that are not fully represented
by the dominant culture.

Subcultures can significantly influence consumer behaviour because they impact how niduses
make purchasing decisions, how they engage with products and brands, and how they met with
other members of the subculture. Subculture members often rely on their shared ns and interests
to guide their choices, including the brands they support, the products they be and their activities.

lies are some examples of subcultures and their implications for consumer behavior.

1. Youth Subculture: The youth subculture encompasses individuals with similar values, interests,
and behaviors. Their consumption patterns are often influenced by trends, peer groups, and a desire
for self-expression. Marketers targeting this subculture often focus on novelty, individuality, and
trends to appeal to their dynamic preferences.

2 Luxury Subculture: Members of the luxury subculture seek high-end, exclusive, and premium
products and experiences. Their purchasing decisions are often driven by Matos, quality, and
exclusivity. Luxury brands emphasize craftsmanship, rarity, and social prestige to attract
consumers within this subculture.

3.Alternative Subculture: The alternative subculture includes individuals who reject mainstream
norms and embrace countercultural aesthetics and values. They might

4.Cultural or Ethnic Subcultures in formed cultural of Culturist. They influence preferences for
traditional foods, clothing, and fraction Marketers may tailor products and messages to resonate
with specific cultural vale and customs.

6. Retro or Nostalgia Subculture: Members of this subculture have a fondness for put eras and
vintage styles. They might seek out products, brands, and experiences evoke nostalgia.

7. Health and Wellness Subculture: This subculture strongly emphasizes health, fitness, and overall
well-being. Their consumption choices include organic foods, equipment, wellness retreats, and
health-related apps.

8. Tech and Geek Subculture: Individuals within this subculture are passionate technology,
gaming, science fiction, and other geek-related interests. They adopt the latest gadgets, video
games, and pop culture merchandise.

9. Artistic or Creative Subculture: Artists and creative individuals may prioritize and innovative
products that allow them to express their creativity. This can include it supplies, craft materials,
and unconventional fashion choices.

10. Foodie Subculture: Food enthusiasts within this subculture are interested in exploring diverse
cuisines and culinary experiences. They might seek out gourmet restaurant specialty ingredients,
and cooking classes.

11. Adventure or Travel Subculture: This group values exploration and new experiences Their
consumption choices include outdoor gear, travel services, and adventure-reel products.

12. Music Subculture: Fans of specific music genres or bands form subcultures wide distinct styles
and preferences. Their consumption includes concert tickets, streaming services, and band
merchandise.

GROUP DYNAMICS AND CONSUMER REFERENCE GROUPS

Group dynamics refer to individuals' interactions, relationships, and behaviors and how influence
their buying decisions, preferences, and consumption patterns. Group dynamics play significant
role in shaping consumer behavior. People are social beings who often market based on the
influence and interactions of the groups they belong to or associate with.

Key aspects of group dynamics in consumer behavior include:

1. Social Influence: People are influenced by the opinions, preferences, and behavior those around
them. Group dynamics determine the degree to which individuals conn to or diverge from the
choices made by other group members.

2. Norms and Conformity: Group norms are shared standards that guide behavior vote the group.
Individuals often conform to these norms to gain acceptance and a rejection. This conformity can
extend to consumer choices and product preferences

3. Opinion Leaders: Some group members might hold more influence due to expertise,
credibility, or assertiveness. These opinion leaders can shape the and behaviors of others within
the group.

4. Group Polarization: Group discussions can lead to a strengthening of existing at and beliefs.
If a group leans toward a certain preference, individuals may become more inclined toward that
preference after group interaction.

5.Leadership and Roles: Within groups, individuals might assume leadership roles, guiding the
group's decisions and steering its behaviors. Their opinions and choices can impact the entire
group's consumer decisions

6.Communication Patterns: How information is exchanged within the group can influence the
spread of ideas, opinions, and trends. Word-of-mouth communication, both offline and online, can
play a significant role in shaping individual consumer preferences.

7.Group Cohesion: The level of unity and closeness within a group can impact how members
interact and influence each other. A tightly-knit group might exhibit stronger shared preferences
and behaviors compared to a loosely connected group.