Effects of personal factors and reference groups

Sanjay Chandwani

Model of Consumer Behavior Product Marketing and Other Stimuli Economic Technological Political Cultural Price Place Promotion Buyer’s Decision Process Buyer’s Black Box Characteristics Affecting Consumer Behavior Product Choice Brand Choice Dealer Choice Buyer’s Response Purchase Timing Purchase Amount .

Factors Affecting Consumer Behavior: Personal Personal Influences Age and Family Life Cycle Stage Economic Situation Occupation Personality & Self-Concept Lifestyle Identification Activities Opinions Interests .

Explain! • The ‘age effect’ and the ‘cohort effect’ • How change in age distribution of Indian population has changed consumption behaviour .Influence of age on cosumer behaviour • Product needs and interests vary with consumer’s age.

Effect of Life Cycle Stage • Life cycle is a sociological concept and emphasises age. Cohabitation (live-in). Unmarried/Wodowed persons.Hostelers. both change as an individual passes through stages of life cycle • Non-traditional stages. Extended Family.& Gay couples in more permissive societies . Dual family. marital status. occupation. composition of families and income of the person • Amount and pattern.

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Puppie. • Trend towards self employment as they end up being wealthier .Effect of Occupation • Occupation is a widely accepted and probably the bestdocumented measure of social class because it refelects the status of a person on society • Yuppie. Dinks. Wasp. etc.

aristocrats.Social Class and their behaviour patterns • Social class affects norms and values and hence consumptions and possessions • Different studies have formed a scale of status consumption (Conspicuous consumption…Veblen goods) • Education plays a key role in defining social class • Meaning of ‘money’ • Indian Upper Class (liquid cash.6% pa. professionals. traditionally affluent • Middle Class • Working class • Poor and distressed (BOP) . neo rich. 50 L) is growing at 11.

marketing communication and new product ideas • In India. lot of consumption changes are happening due to rapid change in life styles . Opinions (AIO) framework • Lifestyle characteristics rather than demographic variables provide more relevant information to understand consumer behaviour and to design effective advertising campaigns • Consumer lifestyles can have important implications for market profiling.Effect of Lifestyle on CB • Activities. Interests.

The New Subcultures • • • • • • Sports. . Movies and Music Lovers Hinglish effect The hangout groups Television and Gaming Religious sect/cult groups And…….

perceptions.Influence of Reference Groups • A reference group is a group to which an individual belongs • Said group is the individual’s frame of referenceand source for sharing his experiences. cognitions. and ideas of self • Provides the benchmarks and contrasts needed for comparison and evaluation of group related behaviour • Normative (broad comparisons) reference groups and comparative (narrow) reference groups .

depends on : Degree of visibility of product Degree of necessity Degree of involvement with the group Certainty of buyer Consumer conspicuousness Consumer conformity .Patterns of Reference Group’s influence • • • • • • • • Information and Experience Credibility and Power of the Reference Group.

(e.g Celebrity) Official groups Implicit groups (brand communities) Virtual groups or communities Consumer Action forums .Consumption related RG • • • • • • • • Primary Groups Secondary group Shopping group Aspirational groups.

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