CONSUMER BEHAVIOUR

TY – BACHELORS

Prof. Kinnarie Singh

 FAMILY
• Most important reference group

• Family influence on buyer behaviour exists due to the relationship dynamics between family
members.

• Lifestyles indicates interaction with the environment wherein the person belongs to the family.

• The family into which one is born is called family orientation whereas the one established by
marriage is the family procreation.

• Cohesion is the emotional bonding between family members. It indicates how close family members
feel on emotional level.
 FUNCTIONS OF THE FAMILY
Social Functions

• Two components of family identity:

• Cultural – cultural values & family practices

• Relational – unique individual identifies which sums up these behaviour of the member.

• Socialization: it is the process by which young people acquire skills, knowledge, values, beliefs &
attitudes relevant to their functioning in the market & society.

• Stages of socialization – Investigation  Socialization  Maintenance  Re-socialization  Remembrance

 FUNCTIONS OF THE FAMILY
• Co-shopping: some parents are in the habit of taking their children when they go for shopping.

• Media co-viewing: Practice of watching TV programmes with all family members sitting together.

• Parenting Style of socialization:

• Authoritarian (total obedience from children)

• Authoritative (children enjoy rights but with obligations & duties)

• Permissive (freedom with little responsibilities)

• Strict (over-protection of children)

• Indulgent (pampering of the children)

 FUNCTIONS OF THE FAMILY
Economic Functions

• Consumption roles:
• Initiators

• Information search

• Influencers

• Decision makers

• Purchasers

• Disposers

Emotional Functions
 TYPES OF FAMILY

Types of Family

Nuclear Family Extended Family Joint Family

 FAMILY INFLUENCE ON BUYER
BEHAVIOUR
• Initiators (need recognition & beginning of purchase process)
• Influencer (person who influences decisions, criteria to be considered during the final choice)
• Gate Keepers (family members who control the flow & direction of the content of information)
• Decision Maker (person who makes the final decision)
• Buyer (person who actually buys the product)
• User (person who uses the product)
• Maintainer (person who maintains the product for its continued use)
• Disposer (person responsible to dispose-off the product)
 REASONS OF DISSATISFACTION
• Core service failure
• Service encounter failure
• Unethical practices
• Pricing
• No response
• Poor quality
• Inconvenience
• Competitors shine
• Hopping
 FACTORS AFFECTING THE NEED
OF THE FAMILY

Factors affecting the need of

the family

Economic Social Psychological Physical Cultural Emotional Security Affiliation

Needs Needs Needs Needs Needs Needs Needs Needs
 FAMILY LIFE CYCLE STAGE &
SIZE
• FLC represents a series of stages through which most families progress with varying characteristics
across different stages.

• Characteristics relate to:

• Market status
• Size of the family
• Age profile of the family members
• Employment status of the head of the family
• Income level
• Disposable income at hand
 FAMILY LIFE CYCLE STAGE &
SIZE
Stage 1:
Bachelorhood

Stage 2:
Honeymooners
Full Nest I

Stage 3: Parenthood Full Nest II

Empty Full Nest I Full Nest III

Empty Full Nest II Stage 4: Post-
parenthood
Empty Full Nest III

Stage 5: Dissolution
 SOCIAL CLASS & INFLUENCES
Social class refers to a group of people in a society who occupy social positions placed at a similar level of
hierarchy.

Characteristics
• Similar behaviour in a social class
• Satisfaction is universal
• Social class in diverse forms
• Social class is hierarchical
• Social class has privilege
• Social class has summation of traits
• Social class is continuous
• Social class as sub-culture
• Social class has relevance
• Social class has mobility
 SOCIAL CLASS
Types of Social Class
• Upper Class
• Middle Class
• Lower Class

Social Influence on consumers w.r.t. the following:

• Reference Groups
• Primary Group
• Secondary Group
• Social Status (types of social class)
• Consumer Role in the Society
 GROUP DYNAMICS
Social process by which people interact face to face in small groups is called group dynamics.

Characteristics
• Consists of two or more persons
• Formal social structure
• Common fate
• Face-to-face interactions
• Emotionally connected
• Mutually dependent
• Enjoy recognition as group
• Enjoy self-definition as group
• Clarify doubts, confusion & misconception
• Assume role to help each other.
 ROLE OF GROUP DYNAMICS
• Increases knowledge about ourselves
• Develops ability to anticipate the actions & reactions
• Facilitative smooth interpersonal relationships
• Facilitates self-actualization needs & job satisfaction
• Facilitates motivation, leadership & communication
 TYPES OF GROUPS
• Primary & Secondary Groups
• Small & Large Groups
• Formal & Informal Groups
• Membership & Reference Groups
• In-groups & Out-groups
 CONSUMER REFERNCE GROUPS

It is any person or a group that serves as a point of comparison for an individual in forming either general or
specific values, attitudes or specific guide for behaviour.

Three factors influencing individuals buying behaviour:

• Individuals attitude towards the group

• Nature of the group

• Nature of the product

 CONSUMER REFERNCE GROUPS

Roles in reference groups:

• Initiator

• Influencer

• Decision maker

• Buyer
 CONSUMER REFERNCE GROUPS

Factors determining reference groups

• Information power

• Referent power

• Expert power

• Legitimate power

• Coercive power

• Reward power
 CONSUMER REFERNCE GROUPS

Types of reference groups

• Normative reference groups

• Comparative reference groups

• Aspirational reference groups

• Contractual reference groups

• Avoidance reference groups

• Disclaimant reference groups

 CONSUMER REFERNCE GROUPS

Factors that affect reference groups influence:

• Information & experience

• Credibility

• Power groups

• Attractiveness

• Conspicuousness of the product

 CONSUMER REFERNCE GROUPS

Selected consumer-related reference groups:

• Friendship groups

• Shopping groups

• Work groups

• Virtual groups or communities

• Brand communities

• Consumer-action groups
 OPINION LEADERS & SOCIAL
INFLUENCES
Opinions leader is a person who actively filters, interprets or provides products & brands related information to their
family, friends & colleagues.

• They actively help others in making right purchases

• They are generally product or activity specific

• They are prepared to come in person for shopping

Social influence is determined by two agents:

• Bonding

• Trusted agents
 IN-GROUP & OUT-GROUP
INFLUENCES
The group to which an individual belongs or feels that he belongs is called in-groups & the rest of the
groups are out-groups.

Characteristics of In-group: Characteristics of Out-group:

• Ethnocentrism • Overlapping

• Similar behaviour • Dissimilar behaviour

• Group feelings • Unpleasant feelings

• Sense of unity • Negative attitudes

• Fellow feelings • Negative assessment

 OPINION LEADERS
Role of Opinion Leaders
• Authority figure
• Trend setter
• Local opinion leaders

Role of Opinion Leaders in Diffusion of Innovation

• Informal • Influencer
• Knowledgeable • Relative advantage
• Communication • Superior status
• Product specifics • Credibility
 OPINION LEADERS
Role of Opinion Leaders in Purchase Process
• Usage behaviour
• Personal behaviour
• Celebrity endorsements
• Differentiation
• Reason assignment
 CULTURAL INFLUENCES ON
CONSUMER BEHAVIOUR
• Culture satisfies needs
• Culture is learned
• Culture helps in adaptations
• Culture is dynamic
• Culture is shared
• Culture supports rituals
• Culture is symbolic
• Culture is differential
 SUB-CULTURAL INFLUENCES ON
INDIVIDUALS
Sub-culture can be identified on the basis of:
• Nationality • Languages
• Religion
• Demographic
• Race
• Social class system
• Social class
• Acculturation
• Gender
• Age • Age
• Geographic location • Religious sub-culture
• Regional sub-culture
 TRADITIONAL SYSTEM
Core traditional values:
• Family orientations
• Saving orientations
• Festivities
• Discretionary purchases
• Achievement orientations
• Shift in focus