cb module 3 shahid
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Consumer Behaviour
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Group and Reference Group Influence
Group
A collection of people interacting together in an
orderly way on the basis of shared norms,
values and expectations about one anothers
behavior
Time and communication
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Characteristics
Frequent Interactions
Shared norms and mutual
interest
Shared values and belief
Joint sense of responsibility
Betterment of the group
Elements affecting groupBehavior
Groups Size
Group leader
Nature and motivation of
members
Norms of the group
The roles assigned to each
individual
The environment
The task
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Group Influence
Useful analysis framework of group influence on
individual is the reference group. Basically for
comparison purposes.
Aspirational reference group refers to those others
against whom one would like to compare oneself
Associative reference groups includes people who
realistically represents the consumers current ornear-equals
Dissociative reference group include people that
the individual would not want to be like
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Types of Social Groups
Primary Group A small collection f people
who interact in a personal, informal and
intimate way
Secondary Group large groups whose
relationships are institutional and formal. They
may last for years but may scatter after a short
duration. More formal, specific purpose,
conceptually related, rarely emotionally tied.
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In-group and out-group In-group is a social
class where people have a sense of belonging.
In-groups are usually primary groups. An out-
group is one where members do not have the
sense of belonging.
Peer group Basically friends group or aprimary group, same age people somewhat
same status
Reference group Psychologically identified bypeople and used as reference while evaluating
themselves
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Consumer Relevant Groups and Types
Friendship Groups Informal groups, unstructured.Seeking and maintaining friendship is a basic drivefor a majority of the people. Influence on the productitem an individual finally selects
Shopping group 2 or more people who shoptogether for clothing, food or pass time. Purchasepals. MGM campaigns
Work Groups People on an average spends 40 hrs
a week in their work place. Informal as well as formal Virtual Groups or communities
Consumer action groups Temporary action group
and Permanent action group
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Reference Groups
People refer to these groups when evaluating their
qualities, attitude, values, behavior and desires
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Types of reference groups
Normative reference
groups Face to face
relation, Direct relation
Comparative referencegroup less direct
relationship. Consumers
adopts the lifestyle
gradually.
Factors affecting Reference
group Influence
Information and
Experience
Credibility, attractivenessand power of the
reference group
Conspicuousness of the
product Visible/verbal
eg cars , salt, etc..
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Application of Reference group
concept for promotion
Make the consumers aware of specific Brand orproduct
Offer the consumers a chance to compare his/her
behavior and attitudes with the behavior and attitude ofthe group
Influence the individual to adapt behavior that is in syncwith group
Aspiration, Administration, Empathy and Recognition
If he uses it, it must be good, I will be like him, if Iuse it, I have the same problem he had, and what
worked for him should work on me too
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3 major types of reference groups
Celebrities
Testimonials Eg;- SachinsMRF bat Endorsement Eg;- Priyanka Chopras Hero
pleassure
Actor Eg- Salman khan and revital
Spokesperson Eg;- Florida and nuvo
ExpertsChef introducing a cooking vessel
The common man Eg;- Fevicol, Vayoodha
hair oil,etc..
Other reference group Executives, Retailersand editorial contents, Trade characters and
cartoons, Seal of approval and product rating
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Celebrity Credibility
Benefits of reference group appeal
Increased brand awareness
Reduced perceived risk
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Family As a Group
The family is a group of persons related by
blood, marriage or adoption. Who resides
together . It is a basic social group
3 types of families
Married CoupleHusband, Wife and older
couples who have already raised their children
Nuclear familyHusband, wife and children
Extended FamilyNuclear family + 1 grand
parent
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Functions of family
Economic well-being
Emotional support
Suitable life style
Childhood socialization
Key consumption roles
Initiator
Influencer
Information gatherer
Decider
Purchaser Users
Maintainers
Disposers
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Decision Making of different
family members
Patriarchal
Matriarchal
Equalitarian (Synergic)
Dynamics of Husband/Wife
decision
Product or service variation
Variation by family role
structure orientation
Variation by stage in
decision making process
Variation by product
features
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Decision by Children
Children influence on theirparents in buying (Yield)
Children viewing T.V
Teenage children
Effects of Variable on Family
decision
Culture Social Class
Reference groups
Mobility
Geography location
Stage in family life cycle
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Role and Importance of Family Life
Cycle
Traditional Family Life Cycle
Stage 1 Bachelorhood Unmarried adult living away
from parents
Stage 2 Honeymooners Young married couple
Stage 3 Parenthood Married couple with a
child/children living with them
Stage 4 Post-Parenthood Older married coupleliving at home with no children
Stage 5 Dissolution Only one spouse alive
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Personal Influence and Opinion
Leadership
Individuals power to control or dominance onothers purchasing decisions
External or internal
Opinion leadership happens through WOM
Influence is informal and interpersonal
Opinion leader, Opinion seeker/opinion
receiver Creates viral or buzz
Roles can change
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Opinion Leader
Role Model
Influence primary group
Actor/celebrity
Knowledge power
Dynamics of opinion
leadership process
Credibility
Positive and negative
product information
Information and advice
Opinion leadership is 2 way
process
Opinion leadership is
category specific
Surrogate buyers
V s Opinion Leader
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Diffusion of Innovation
Why, how, and at what rate new
technologies and ideas spread
through cultures
Everett Rogers the process by
which an innovation iscommunicated through certain
channels over time among the
members of social system
Elements Innovation, Types ofcommunication channels, Rate of
Adoption, Social system which
helps frame the process of
innovation decision
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Types of Innovation Decisions
Optional Innovation Decision
Collective Innovation Decision
Authority Innovative Decision
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Different degrees of
Innovation
Continuous Innovation
Dramatic Continuous
Innovation
Discontinuous
Innovation
Culture and Adoption of
Innovation
Modernity
Homophily
Physical distance
Opinion leadership
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Diffusion Process and Adoption Process
KNOWLEDE PERSUATION
DECISION
IMPLIMENT
ATION
CONFORMA
TION
REJECT
ACCEPT
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Characteristics of Innovation
An Innovation which is an improvement over anearlier generation has better chance of adoption
An innovation that an individual feels is more
compatible with his way of life also has better chanceof Adoption
A complex innovation is not adopted easily
Triability determines the comfort and ease off use
of innovation
Observability determines the degree to which a
particular innovations visibility to others
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Rate of Adoption
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Adopter Categories
Innovators
Early Adopters Early Majority
Late Majority
Laggards
Opinion leaders and communication channels
Greater degree of exposure to the media
Sophisticated Nature Higher socioeconomic status
Greater degree of contact with change agent
Lots of social experience
More innovative
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Diffusion in Organisation
Collection-innovation decision
Authority-innovation decision
Consequences of adoption
Desirable v/s undesirable
Direct v/s indirect
Anticipated v/s unanticipated
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