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reference group

reference group

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Published by Sachi Saraf
consumer behaviour
consumer behaviour

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Published by: Sachi Saraf on Apr 01, 2013
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04/01/2013

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Chapter 10

Consumers in their Social and Cultural Settings

What is a Group?
• Two or more people interact to accomplish either individual or mutual goals • A membership group is one to which a person either belongs or would qualify for membership • A symbolic group is one in which an individual is not likely to receive membership despite acting like a member

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.

Broad Categories of Reference Groups • Normative Reference Groups • Comparative Reference Groups .

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

Major Consumer Reference Groups .

Positive Influences on Conformity Group Characteristics • Attractiveness • Expertise • Credibility • Past Success • Clarity of Group Goals Personal Characteristics • Tendency to Conform • Need for Affiliation • Need to be Liked • Desire for Control • Fear of Negative Evaluation .

..Factors Encouraging Conformity: A Reference Group Must . • Make the individual aware of a specific product or brand • Provide opportunity to compare with attitudes & behavior of others • Influence to adopt attitudes and behavior that are consistent with norms of the group • Legitimize the decision to use the same products as the group .

Selected Consumer-Related Reference Groups • Friendship groups • Shopping groups • Work groups • Virtual groups or communities • Consumer-action groups .

Brand Communities • Group of runners who meet at the Niketown store in Boston on Wednesdays • Saturn car owners who meet for reunions and barbecues • Harley Davidson Owner Groups • Saab owners .

Reference Group Appeals Ann Taylor uses a Celebrity Appeal: Christy Turlington • • • • Celebrities The expert The “common man” The executive and employee spokesperson • Trade or spokes-characters • Other reference group appeals .

Types of Celebrity Appeals TYPE Testimonial DEFINITION Based on personal usage. a celebrity attests to the quality of the product or service Celebrity lends his name and appears on behalf of a product or service with which he/she may not be an expert Celebrity presents a product or service as part of a character endorsement EXAMPLE Sachin trusts Adidas Endorsement Tiger Woods for Accenture Actor Aishwarya for Loreal Spokesperson Celebrity represents the brand or Amitabh Bachhan for Kutch company over an extended period of Tourism time .

Customers Providing Testimonials .

SpokesCharacter .

Friends/ Roommates. Nuclear family. Boarders . Extended family Households Non-Family Households: Unmarried couples.Households Family Households: Married couple.

The Typical Household? • Canada: Nuclear family • Thailand: Extended family • USA: Not married. no children .

and attitudes necessary to function as consumers.Consumer Socialization The process by which children acquire the skills. knowledge. .

ConsumptionRelated Socialization .

A Simple Model of the Socialization Process Young Person Other Family Members Influence More Basic Values/Behavior •Moral/religious principles •Interpersonal skills •Dress/grooming standards •Manners and speech •Educational motivation •Occupational career goals •Consumer behavior norms Preadolescent Friends Influence More Expressive Attitudes/Behavior •Style •Fashion •Fads •“In/Out” •Acceptable consumer behavior Adolescent Teens Older .

Other Functions of the Family • Economic well-being • Emotional support • Suitable family lifestyles .

Appealing to the Responsibility of Providing for Future Family Financial Need .

Ad Telling Readers that a Great Vacation is Family Time .

consume.to shop for. use. Buyers Preparers Users Maintainers Disposers Family member who initiate or carry out the disposal or discontinuation of a particular product or service .Eight Roles in the Family Decision-Making Process ROLE Influencers Gatekeepers Deciders DESCRIPTION Family member providing info to other members about a product Family member controlling the flow of info about a product Family member with power to determine unilaterally or jointly . or dispose of a specific product or service Family member making the actual purchase of a particular product Family member transforming the product into a form suitable for consumption by other family members Family member who use or consume a particular product or service Family member who service or repair the product so that it will provide continued satisfaction. purchase.

Dynamics of Husband-Wife Decision Making • Husband-Dominated • Wife-Dominated • Joint • Autonomic –Equal –Syncratic –Solitary –Unilateral .

The Family Life Cycle • Traditional Family Life Cycle – Stage I: Bachelorhood – Stage II: Honeymooners – Stage III: Parenthood – Stage IV: Post-parenthood – Stage V: Dissolution • Modifications .the Nontraditional FLC .

Married Segment .Targeting the To-Be.

Targeting the PostParenthood Stage .

An Extended Family life Cycle Middle-Aged Divorced without Children Young Divorced without Children Middle-Aged Married without Children MiddleAged Married with Children* MiddleAged Married w/o dependent Children* Young Single* Young Married without Children* Young Married with Children* Older Married* Older Unmarried * Young Divorced with Children* MiddleAged Divorced with Children MiddleAged Divorced without Children Usual Flow Recycled Flow * Traditional Family Flow .

Noteworthy Nontraditional FLC Stages Alternative FLC Stages Family Households Childless couples Definition/Commentary It is increasingly acceptable for married couples to elect not to have children. More career-oriented men and women and greater occurrence of couples living together. Stress quality lifestyle: later in life (in their late 30s “Only the best is good enough” or later) . Likely to have fewer or even no children. Couples who marry later in life (in their late 30s or later) Couples who have first child Likely to have fewer children. Contributing forces are more career-oriented married women and delayed marriages.

A single person who adopts one or more children. Young single-adult children who return home to avoid the expenses of living alone while establishing their careers. Newlyweds living with in-laws. Divorced daughter or son and grandchild(ren) return home to parents.continued Alternative FLC Stages Family Households Single parents I Single parents II Single parents III Extended family Definition/Commentary High divorce rates (about 50%) contribute to a portion of single-parent households Young man or woman who has one or more children out of wedlock. . Frail elderly parents who move in with children.

High divorce rate contributes to dissolution of households before children are born. . also. means elderly) more over-75 single-person households.continued Alternative FLC Stages Nonfamily Households Unmarried couples Divorced persons (no children) Single persons (most are young) Definition/Commentary Increased acceptance of heterosexual and homosexual couples. Widowed persons (most are Longer life expectancy. especially for women. men and women who never marry. Primarily a result of delaying first marriage.

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