PAPER

CONSUMER BEHAVIOR

ENVIRONMENTAL INFLUENCES ON

CONSUMER BEHAVIOUR

By:

Dhifa Apriliana Rosadi

NIM : 185030207141005

Brawijaya University

MALANG

2020
 PREFACE

Thanks to Allah SWT who has given the bless to the writer for finishing the
Consumer Behavior paper assignment entitle “Environmental Influences on Consumer
Behaviour.”

The writer also wish o express his deep and sincere gratitude for those who have
guided in completing this paper. This paper contains some information about the
factorsof environmental influences on consumer behavior and how to analyze it.
Hopefully, this paper can help the reader to expand their knowledge about the topic.

Malang, 16th February 2020

Dhifa Apriliana Rosadi

 CHAPTER I

INTRODUCTION

1.1. Background
Marketers are obliged to understand consumers knowing what they need, what
their tastes are and how they make decisions so that marketers can produce goods
and services that are following consumer needs. In-depth understanding of
consumers will enable marketers to influence consumer decisions, so consumers
want to buy what is offered by marketers. Intense competition between brands
makes consumers have an increasingly strong position in a bargaining position.
Therefore marketers need to pay attention to how the situation and environment
of consumers that influence their decisions in consuming a product or service. What
factors influence consumers in making decisions to spend and consume a product or
service?

1.2. Formulation of the Problem

from that background we can take the formulation of the problems are:
1. What is the factor of environmental influences on consumen behavior?
2. What is consumer behavior?

1.3. Objective of the Research

1. To know what is the factor of environmental influences
2. To know what is consumer behavior
 CHAPTER II

RESULT AND DISCUSSION

2.1. Consumer Behavior

Consumer behaviour is the study of how individual customers, groups or
organizations select, buy, use, and dispose ideas, goods, and services to satisfy their
needs and wants. It refers to the actions of the consumers in the marketplace and the
underlying motives for those actions. Marketers expect that by understanding what
causes the consumers to buy particular goods and services, they will be able to
determine—which products are needed in the marketplace, which are obsolete, and
how best to present the goods to the consumers.
The study of consumer behavior assumes that the consumers are actors in the
marketplace. Starting from the information provider, from the user to the payer and
to the disposer, consumers play these roles in the decision process. The roles also
vary in different consumption situations.

2.2. Culture Influences

Culture is the value of thought and symbols that influence the behavior of one's
beliefs and habits in society. Culture is not only abstract, such as the values of
thought; but also cultural beliefs can take the form of material objects. Material
objects of culture are defined as cultural artifacts or material manifestations of a
culture. A value can be considered as a cultural meaning if every people in a society
have the same perception of these values. Culture will provide a clue to someone
about the behavior that can be accepted by society, and culture also provides a
sense of identity for someone in society. Here are some types of culture elements.
1. Value
Value is a trust or everything that is considered essential by someone or a
society. Values guide someone to behave according to their culture. Values
usually last long and are hard to change. Values will influence someone's
perspective which then perspective will influence one's behavior. For example,
here are some of the values shared by Indonesians.
 Men are heads of the household
  Respect for older people
 Pregnant before marriage is a disgrace to the family.

In Indonesian society, there have been some changes in the values adopted, for
example, in the past, only a few women wore a hijab, now a lot of women wear
hijab daily, the effect on the consumption is the demand for Muslim clothing is
increasing.

2. Norms
Norms are a principle of right action binding upon the members of a group and
serving to guide, control, or regulate proper and acceptable behavior. Norms
classified into two types, first, enacted norms that agreed based on government
regulations and usually shown in the form of laws, second, crescive norms, that
exist in culture and can be understood and lived if the person associates with
people from the identical culture.

3. Customs
Customs are various forms of behavior and actions that are culturally accepted
that have lasted over time and often passed down in the family setting. The
customs also involves different types of celebrations that are constantly carried
out routinely such as marriage ceremonies, religious ceremonies, and funeral
tradition.

4. Mores
Mores are various forms of ways that contain moral aspects, usually in the form
of actions that must not be carried out by someone in society. Violation of the
ban will result in social punishments. For example, at night it is forbidden to sell
salt and no one can buy salt at night. The reason is that it will bring bad luck to
the seller or the buyer.

5. Conventions
The conventions describe suggestions or habits. How a person must act every
day and is usually related to consumer behavior, namely routine behavior carried
 out by consumers. For example, when you drink coffee or tea you will add some
sugar to it.

6. Myth
Myth illustrates a story or belief that contains values and idealism for a society.
As an example, some people believed in a myth to the numbers 13 and 14 which
are believed to bring bad luck.

7. Symbol
Symbols are all things, names, colors, and concepts that have other important
meanings, namely the desired cultural meaning. Some companies create various
types of symbols by showing shapes or colors that make the characteristics of
the company's products.

Products and services play a very important role in influencing culture because
products can carry messages of cultural significance. Cultural Meanings are the
values of norms and beliefs communicated symbolically. Cultural meanings or
symbolic meanings that have been attached to the product will be transferred to
consumers in the form of possession ritual, exchange ritual, grooming ritual, and
divestment ritual.

2.3. Family and Household Influences

The family is a micro-environment, which is the environment that is closest to
the consumer. Family is an environment where most consumers live and interact
with other family members. Family members will influence each other in the
decision to purchase products and services.
There are two main reasons why studying the family is important from the
perspective of consumer behavior. First, various kinds of products and services
bought by the consumer on behalf of the family. Second, the decision to choose
products or services that are used repeatedly is influenced by family members or
jointly decided by all family members.
1. The Definition of Family and Household
The family is a group of two or more people who are bound by marriage,
blood (offspring: children or grandchildren), and adoption. Meanwhile,
household is a broader term than family, and family is part of the household.
The family has the meaning of the relationship between its members, while
households describe the management of a residence by a group of people who
do not have family ties. A household can consist of one person, while a family
consists of at least two people.
Households consist of two types, namely family households and non-
family households. A family household consists of:
a) husband and wife household;
b) the husband, wife and children household;
c) husband and wife households, and children living in different households;
d) single parent households (only fathers or mothers only); and
e) other households (siblings, or other family members living together in one
house).
Non-family household is a household whose members are not bound by
marital relations, blood or adoption. Non-family households consist of:
a) a household inhabited by a man himself;
b) a household inhabited by a woman herself; and
c) households that are inhabited by two or more people who are not related by
family.

2. The Role of Family Members in Purchasing Decision Making

Here are some roles of family members in making decisions.
a. Initiator, a family member who has an idea or idea to buy or consume a
product.
b. Influencer, a family member who is always asked for his opinion about a
product or brand to be purchased and consumed.
c. Gate Keeper, a family member who filters all information that comes into the
family.
 d. Decider, a family member who has the authority to decide whether to buy a
product or a brand.
e. Buyer, a family member who buys a product or who is given the task to make
a product purchase.
f. User, a family member who uses or consumes a product or service.

Marketers need to understand how the role of family members in product

decision making. Understanding who plays a role in the decision making of a
product is very useful in developing marketing strategies to determine the target
market of the product.

2.4. Reference Group

The reference group is an individual or a group of people that influencing
other's actions. The reference group is used by someone as a basis for measurement
or a reference in forming cognitive and behavioral affective responses. The
reference group intention provide standards and values that will influence one's
behavior. In a marketing perspective, a reference group is a group that serves as a
reference for someone in purchasing and consumption decisions.
1. Types of Reference Group
a. Formal and Informal Group
Formal groups are associations that have an approved organizational
structure and officially registered membership, for example, political
parties, universities, and companies. Informal groups are associations
that do not have an approved organizational structure and the official sort
of membership is not recorded. Informal groups are usually formed
because of social bonds.
b. Primary and Secondary Groups
Primary groups are groups with limited membership interaction between
members directly face to face have an emotional bond between members.
Secondary groups have ties that are laxer than primary groups between
group members. There may also be direct face-to-face contact between
group members having little influence on other members.
 c. Aspiration and Dissociation Groups
Aspiration groups are groups that show a desire to follow the norms of
values and behavior of others who are used as a reference group.
Aspiration group members Do not have to be members of the reference
group or between aspiration group members do not have to be bound and
communicate with each other. A dissociation group is a person or group
that tries to avoid association with the reference group.

2. Three Kinds of Reference Group Influences

Normative influence is the effect of a group of references on a person
through social norms that must be obeyed and served. The normative
influence will be stronger for someone to follow the reference group if there
is (1) Strong pressure to comply with existing norms, (2) Social acceptance
as strong motivation, (3) Products and services purchased will be seen as
symbols of social norms. A consumer tends to match what the reference
group says or suggests if there is a strong necessity to follow the norms. A
consumer may have a strong motivation to follow the style of the reference
group because there is a desire to be accepted by the reference group.
The reference group will influence someone through its role as a bearer
of the expression of values. A consumer will buy a luxury vehicle with the
aim that others can see him as a successful person or the vehicle can
enhance his self-image. Consumers have the view that other people assess
the success of a person is characterized by the possession of a luxury
vehicle so they decide to own the vehicle so that they can be seen as
someone successful.
The reference group will influence the choice of a product or brand from
a consumer because the reference group is highly trusted because of its
better knowledge and information.

2.5. Consumer Environmental and Situation

1. Consumer Environmental
Consumers also interact with the surrounding natural environment, it is
 influenced by the natural surroundings, weather, temperature, climate, and
geographical location, even consumers will affect the surrounding
environment. Consumers who behave carelessly like throwing garbage into the
sewer will cause environmental damage and harm all parties. This is called the
consumer environment.
According to Peter and Olson (2010), that defining the consumer
environmental as “The environment refers to all the physical and social
characteristics of a consumer’s external world, including physical objects
(products and stores), spatial relationships (location of stores and products in
stores), and social behavior of other people (who is around and what they are
doing).” Based on this definition the consumer environment is divided into two
types social environment and physical environment. The social environment is
other people who are around consumers and include the action of these people.
The consumer environment can be divided into the macro-environment and
micro-environment. The macro-environment is an environment that is close to
consumers who interact directly with consumers. While the micro-environment
is what determines the behavior and cognitive attitudes of certain consumers.
The physical environment is anything that takes the form of a point around the
consumer, including a variety of store products and store locations and in-store
products.

2. Consumer Situation
The situation is not the physical environment or the characteristics of the
social environment. The meaning of the situation is defined by a consumer who
behaves in an environment to achieve certain goals. The consumer situation
consists of three factors which is, the place at which the behavior occurs, when
an explanation of why the behavior occurs, and its effect on consumer
behavior.
The consumer situation consists of three kinds: (1) communication
situation (seeking for information), (2) buying situation (visiting the store and
shopping), and (3) usage situation (product consumption and disposal). A
communication situation is an atmosphere or environment in which consumers
obtain information or communicate. Information may be obtained through
private or non-private communication. By talking with friends, family,
neighbors, or store attendant consumers could obtain information privately.
Advertising, radio, internet, leaflets, brochures, billboard, etc. are the type of
information consumers could obtain unintentionally while gathering the
information.
The purchasing situation is the environment or atmosphere experienced
or faced by consumers when buying products and services. The purchasing
situation in a retail store will have the characteristics of the consumer situation
namely the physical environment, social environment, time of purchase reason
and mood.
The third consumer situation is the situation of consumption or the
situation of use or the situation of the use of products and services that is the
situation or atmosphere when consumption occurs. Consumers often choose a
product because of consideration of the consumption situation. Manufacturers
often use the concept of usage situations in marketing their products. Products
are often positioned as products to be used in certain usage situations.
 CHAPTER III

CLOSURE

3.1 Conclusion
Consumer behavior is the study of how individual customers, groups or
organizations select, buy, use, and dispose ideas, goods, and services to
satisfy their needs and wants. The factor that influences the environmental
in consumer behavior are culture, family and household, the reference
group, and the environmental and situation of the consumer. The marketers
obliged to understand those factor to aim for consumer satisfaction and need
for product and services.
 REFERENCES

Sumawarman, Ujang. 2004. Perilaku Konsumen: Teori dan Penerapannya dalam

Pemasaran. Penerbit Ghalia Indonesia, Bogor.

http://www.yourarticlelibrary.com/marketing/market-segmentation/consumer-
behaviour-meaningdefinition-and-nature-of-consumer-behaviour/32301