bba consumer behaviour

7/29/2019 BBA Consumer Behaviour

1/40

BBA-804 CONSUMER BEHAVIOUR

Prepared By:

Department of managementNIMS, Noida


2/40

Section I

Consumer Behaviour: Nature & Application.

Consumer as an individual: - Consumer needs & Motivations.

(ii) Influence of personality, psychographics & attitude on consumerbehaviour.


3/40

INTRODUCTION

All of us are consumers. We consume things of daily use, we also consume andbuy these products according to our needs, preferences and buying power. Thesecan be consumable goods, durable goods, specialty goods or, industrial goods.

What we buy, how we buy, where and when we buy, in how much quantity webuy depends on our perception, self concept, social and cultural background andour age and family cycle, our attitudes, beliefs values, motivation, personality,social class and many other factors that are both internal and external to us. Whilebuying, we also consider whether to buy or not to buy and, from which source orseller to buy. In some societies there is a lot of affluence and, these societies canafford to buy in greater quantities and at shorter intervals. In poor societies, the

consumer can barely meet his barest needs.

The marketers therefore try to understand the needs of different consumers andhaving understood his different behaviors which require an in-depth study of theirinternal and external environment, they formulate their plans for marketing.

Management is the youngest of sciences and oldest of arts and consumerBehavior in management is a very young discipline. Various scholars andAcademicians concentrated on it at a much later stage. It was during the1950s, that marketing concept developed, and thus the need to study thebehavior of consumers was recognized.

Marketing starts with the needs of the customer and ends with hissatisfaction. When everything revolves round the customer, then the studyof consumer behavior becomes a necessity. It starts with the buying ofgoods. Goods can be bought individually, or in groups. Goods can bebought under stress (to satisfy an immediate need), for comfort and luxuryin small quantities or in bulk. For all this, exchange is required. This

exchange is usually between the seller and the buyer. It can also be betweenconsumers.

Consumer behavior can be defined as the decision-making process andphysical activity involved in acquiring, evaluating, using and disposing ofgoods and services.


4/40

This definition clearly brings out that it is not just the buying ofgoods/services that receives attention in consumer behavior but, the processstarts much before the goods have been acquired or bought. A process ofbuying starts in the minds of the consumer, which leads to the finding of

alternatives between products that can be acquired with their relativeadvantages and disadvantages. This leads to internal and external research.Then follows a process of decision-making for purchase andUsing the goods, and then the post purchase behavior which is also veryimportant, because it gives a clue to the marketers whether his product hasbeen a success or not.

To understand the likes and dislikes of the consumer, extensive consumer

Research studies are being conducted. These researches try to find out:

What the consumer thinks of the companys products and those of its

Competitors?

How can the product be improved in their opinion?

How the customers use the product?

What is the customers attitude towards the product and its advertising?What is the role of the customer in his family?

The following key questions should be answered for consumer research. Amarket comes into existence because it fulfills the needs of the consumer. Inthis connection, a marketer has to know the 70s framework for consumerresearch.

Marketing Strategy and Consumer Behavior

(i) Marketing Analysis(a) Consumer(b) Company(c) Competition(d) Condition


5/40

(ii) Marketing Segmentation(e) Identify product related needs(f) Group customers with similar need sets(g) Describe each group

(h) Select target market(iii) Marketing Strategy(i) Product(j) Price(k) Distribution(l) Communication(m) Service(iv) Consumer Decision Process

(n) Problem recognition(o) Information searchinternal, external(p) Alternative evaluation(q) Purchase(r) Use(s) Evaluation(v) Outcomes(t) Customer satisfaction(u) Sales(v) Product/Brand image

APPLICATION OF CONSUMER BEHAVIOR

1.To Analyze Market Opportunity:The study on consumer behavior helps to understand marketopportunity, so we can enter to new market opportunities. Customer isthe king in the market, so analysis of consumer's needs is essential forunderstand nature of market.


6/40

2. Selecting the Target Market:

The study of consumer behavior help to understand market, it help tounderstand customer needs, and we can concentrate to particular needs

of customer. By the analysis of market if we find out one particularsegment needs a special care, then we can concentrate in to that area.

3 .Determining the Product Mix:

Having identified the unfulfilled need slot and having modified theproduct to suit differing consumer tastes, the marketer now has to getdown to the brass tacks of marketing. He has to determine the right mix

of product; price promotion and advertising understand his behavior.

4. Use in Non-profit and Social Marketing:

The knowledge of consumer behavior is also useful in the marketing ofnon-profit or social or governmental services of institution such ashospitals, voluntary agencies, law enforcement and tax collectionagencies.

APPROACHES TO CONSUMER BEHAVIOR

There are two broad approaches to study of consumer behavior amanagerial approach views consumer behavior as an applied socialscience. And other one holistic approach views consumer behavior as apure rather than applied social science.

Managerial approach: a managerial approach to consumer behavior tends to bemore micro and cognitive in nature. It is micro in emphasizing the individual

consumer. His or her attitude, perception, lifestyles, and demographiccharacteristics. Environmental affects, reference group, the family, culture arestudied in the context of how they influence the individual consumer behavior.

Holistic approach: a holistic approach is more macro in its orientation, it tends tofocus, more on the nature of consumption experience than on the purchasing


7/40

process because it stress the broader, culturally derived context of consumption.Consumption is seen as being symbolic as well as normative.

Role of Consumer Behavior in Marketing

Consumer Behavior refers to the study of buying tendencies of consumers.An individual who goes for shopping does not necessarily end up buyingproducts. There are several stages a consumer goes through before hefinally picks up things available in the market. Various factors, be it cultural,social, personal or psychological influence the buying decision of

individuals.

Marketers need to understand the buying behavior of consumers for theirproducts to do well. It is really important for marketers to understand whatprompts a consumer to purchase a particular product and what stops himfrom buying.

What marketers need to understand?The psychology of consumers (what they feel about a particular product and theirbrand on the whole).

How consumers are influenced by their immediate surroundings, familymembers, friends, co workers and so on.

What a consumer thinks when he goes out for shopping?

A marketer needs to first identify his target consumers and understand theirlifestyles, psychologies, income, spending capabilities, mentalities to offerthem the right product.

Individuals from lower income group would never be interested in buyingexpensive and luxurious products. He would first fulfill his basic


8/40

physiological needs like food, air, water etc. Trying to sell a Mercedes or aRado watch to someone who finds it difficult to make ends meet woulddefinitely be a disaster.

Kelloggs K special would hardly find any takers in the low income group.In this segment, individuals would be more interested in buying fresh fruits,vegetables, pulses which are necessary for their survival rather thanspending on health supplements.

It is really essential for the marketers to understand the needs of consumers.Find out what they are actually looking for?

There are ideally two different ways which enable marketers to understandtheir consumers.

Primary Research

Secondary Research

Primary Research - Primary Research refers to a research methodology wheremarketers interact with consumers directly and gather as much information asthey can. Information is generally collected through surveys, questionnaires,feedback forms, interviews etc.

Secondary Research - Secondary Research often refers to relying on informationwhich has been collected by others at some point of time.The background and family status of an individual also influence his/her buyingbehavior.

Selling a laptop to an individual who is not much educated would be

pointless. Remember consumers would show interest in your products onlyif they are of any use to them or their immediate family members. A lowgrade worker would never be interested in purchasing business suits orformal shirts.


9/40

Canned juices are a hit among middle and higher income group whereindividuals are really conscious about their health and fitness. Individualswho live hand to mouth would never spend on sugar free tablets, healthsupplements, or for that matterDiet Coke.

It is also important to give complete information to end-users. Do not hideanything from them. It is not ethical. All tobacco products come with awarning. Individuals should be familiar with not only the benefits but alsothe side effects of the products.

CONSUMER NEEDS AND MOTIVATION

Diversity is not a new phenomenon. We all seek different pleasures and spend ourmoney in different ways. One husband and wife may spend their vacation on acruise to Singapore, their friends may prefer a camping trip to Nathiagali. Onefather and mother may buy their young child a bicycle; another may buy theirs apersonal computer. One woman may spend her Christmas bonus on a newwasher/dryer; her neighbor may spend hers to join a health club.

Human needsconsumer needsare the basis of all modern marketing.Needs are the essence of the marketing concept. The key to a companys

survival, profitability and growth in a highly competitive marketingenvironment is its ability to identify and satisfy unfulfilled consumer needsbetter and sooner than the competition.

Marketers do not create needs, though in some instances they may makeconsumers more keenly aware of unfelt needs. Successful marketers definetheir markets in terms of the needs they presume to satisfy, rather than in theterms of the products they sell. This is a market-oriented, rather than aproduction-oriented, approach to marketing. A marketing orientationfocuses on the needs of the buyer; a production-orientation focuses on the


10/40

needs of the seller. The Marketing concept implies that the manufacturerwill make only what it knows people will buy; a production orientationimplies that the manufacturer will try to sell what it decides to make.

What is Motivation?

We are interested in motivation because it is the driving force ofbehavior and there must be a reason, a motive for purchasing, and usingproducts.

Motivation can be described as the driving force within individuals thatimpels them to action. The driving force is produced by a state oftension, which exists as a result of an unfulfilled need. Individuals strive

both consciously and unconsciously to reduce this tension throughbehaviour which they anticipate will fulfill their needs and thus relievethem of the stress they feel. People experience wishes, desires andneeds. These can originate from unmet physical needs or from fantasy orimagery. On this basis, we can assume that needs can be triggered by

both internal and external forces.

There are many factors that can trigger motivation, and motivationalresearchers try to identify and understand these factors. Until now, therehas been a tendency to focus on needs, and a popular approach has beento assume that people do not act of their own will. Freud introduced thenotion are largely unconscious of the real psychological forces shapingtheir behaviour. his theory assumes that we grow up repressing manyurges. These urges are never eliminated or under perfect control; they

emerge as dreams, slips of the tongue, or in neurotic and obsessivebehaviour. So, reasons for purchasing a product may be conscious orunconscious.

Needs


11/40

We use the term need when referring to any human requirement, although

there is a variety of other words that may be sued such as wants or desires.Every individual has needs; some are innate, others are acquired, but, mostimportantly, needs underlie all human action. Innate needs

are physiological (i.e. biogenic); they include the needs for food, water, air,clothing, shelter and sex. Because they are needed to sustain biological life,

biogenic needs are considered primary needs or motives.

Acquired needs are needs that we learn in response to our culture orenvironment. They may include the need for self-esteem, prestige,affection, power or learning. Because acquired needs are generallypsychological (i.e. psychogenic), they are considered secondary needs ormotives.

GoalsGoals are sought-after results of motivated behaviour. All behaviour isgoal-oriented. Our discussion of motivation is in part connected togeneric goals that is, the general classes or categories of goals thatconsumers select to fulfill their needs. Marketers are even moreconcerned with consumers product-specific goals that is, thespecifically branded or labeled products they select to fulfill their needs.

For example, Lipton Company wants their consumers to view iced tea asa good way to quench summer thirst (i.e. as a product-specific goal).

The Selection of Goals

People have many needs, and for any given need there are manydifferent and appropriate goals. The goals selected by individualsdepend on their personal experiences, physical capacity, prevailingnorms and values, and the goals accessibility in the physical and social

environment. For example, a young man may have a strong hunger need.If he is a young university athlete, he may envision a thick sirloin steakas his goal object; if his doctor has advised him not to consume redmeat, he may then settle for tuna steak. If he has never tasted steak, if itis outside the realm of personal experience, he would probably not even


12/40

think of it, but instead select a food that has previously satisfied hishunger.

Our perception of ourselves also serves to influence the specific goals

we select. The products we own, would like to own, or would not like toown, are often perceived in terms of how closely they reflect our self-image. A product that is perceived as matching our self-image has agreater probability of being selected than one that is not. Thus, a manwho perceives himself as young or sophisticated may drive a Porschewho perceives herself as rich and conservative may drive a Mercedes .Interdependence of Needs and Goals

Needs and goals are interdependent; neither exist without the other. However,people are often not as aware of their needs as they are of their goals. For example,a teenager may not be consciously aware of her social needs but may join aphotography club to meet new friends. A local politician may not be aware of apower need but may regularly run for public office.

Positive and Negative Motivation

Motivation can be positive or negative in direction. We may feel a strong drivingforce towards some object or condition, or a driving force away form some objector condition. For example, a person may be impelled towards a restaurant to fulfilla hunger need and away form motorcycle transportation to fulfill a safety need.

Rational versus Emotional Motives

Some consumer behaviorists distinguish between so called rational motives andemotional (or-rational) motives. They use the term rationally when they carefullyconsider all alternatives and choose those that give them greatest utility. In amarketing context, rationality implies that consumers select goals based on totally


13/40

objective criteria, such as size, weight, price, or kilometers per liter. Emotionalmotives imply the selection of goals according to personal or subjective criteria(e.g. pride, fear, or the desire for individuality, affection, status).

The Dynamic Nature of Motivation

Motivation is a highly dynamic construct that is constantly changing in reaction tolife experience.

Needs and Goals are constantly changing

Our needs and goals are always growing and changing in response to our physicalcondition, environment, interactions with others, and experiences. As we attainour goals, we develop new ones. If we do not attain our goals, we continue tostrive for old ones, or develop substitute goals. Some of the reasons why need-driven human activity never ceases include the following:

Existing needs are never completely satisfied; they continually induce activitydesigned to attain or maintain fulfillment.

As needs become satisfied, new and higher order needs emerge to be fulfilled.

People who achieve their goals set new and higher goals for themselves.

Arousal of Motives

Most of our specific needs are dormant much of the time. The arousal of anyspecific set of needs at a specific point in time may be caused by internal stimulifound in our physiological conditions, or in our emotional or cognitive processes,or by external stimuli in the outside environment. For the most part, purchases will


14/40

not be made unless we experience a need and are activated to satisfy it.Unsatisfied needs create a state of tension.

There is agreement that most individuals are tension avoiders. However, if tension

cannot be avoided, most of us would wish to resolve the tension as quickly aspossible, and this creates a certain type pf behavior. The amount of energy we arewilling to expend in the purchase of a product is a function of both the level oftension the unsatisfied need state creates and the degree to which we think theproduct will satisfy the need. Motivation levels can, therefore, range from passionto inertia. In turn, this affects the level of involvement that consumers display inthe purchase situation.

Physiological Arousal

Bodily needs at any specific moment are rooted in our physiological condition atthat moment. A drop in blood sugar level, or stomach contractions, will triggerawareness of a hunger need. A decrease in body temperature will induceshivering, which makes us aware of the need for warmth.

Emotional Arousal

Thinking or daydreaming sometimes results in the arousal or stimulation of latentneeds. People who are bored or frustrated in attempts to achieve their goals oftenengage in daydreaming, in which they imagine themselves in all sorts of desirablesituations. These thoughts tend to arouse dormant needs, which may produceuncomfortable tensions that push them into goal-oriented behavior. A youngwoman who dreams of becoming a business tycoon may enroll in businessschool. A young man who wants to play professional football may identify with amajor league player and use the products he endorses commercially.

Cognitive Arousal


15/40

Sometimes random thoughts or a personal achievement can lead to a cognitiveawareness of needs. An advertisement that provokes memories of home mighttrigger instant recognition of the need to speak with someone special.

Environmental Arousal

The set of needs activated at a particular time are often determined by specificcues in the environment. Without these cues, the needs would remain dormant.For example, the six o clock news, the sight or smell of freshly baked bread, fastfood TV commercials, the childrens return from school all these may arouse theneed for food.

Hierarchy of Needs

One of the most widely accepted theories for human motivation has beendeveloped by Abraham Maslow. His theory can be applied to interpreting howconsumer goods and services can be perceived as satisfying different level ofneeds of consumers.

In summary, the hierarchy of needs theory postulates a five-level hierarchy ofprepotent human needs. Higher-order needs become the driving force behindhuman behavior as lower-level needs are satisfied. The theory says, in effect, thatdissatisfactionnot satisfactionmotivates behavior.

A Trio of Needs

Some psychologists believe in the existence of a trio of basic needs: the needs forpower, affiliation, and achievement.

The power need relates to our desire to control our environment. It includesthe need to control other people and various objects. This need appears to be


16/40

closely related to the ego need, in that many individuals experienceincreased self enhancement when they exercise power over objects orpeople. A number of products, such as cars, lend themselves to promises ofpower or superiority for users.

Affiliation is a well-known and well-researched social motive that has far-reaching influence on consumer behavior. The affiliation need suggests thatbehavior is highly influenced by the desire for friendship, acceptance, andbelonging. People with high affiliation needs tend to have a strongdependence on others. They often select goods they feel will meet with theapproval of friends.

A considerable number of research studies have focused on theachievement need. Individuals with a strong need for achievement oftenregard often regard personal accomplishment as an end in itself. Theachievement need is closely related to both the egoistic need and self-actualization need. People with a high need for achievement have certaintraits that make them open to relevant appeals. They are more self-confident, and enjoy taking calculated risks. They research theirenvironment actively, and are very interested in feedback. Their interest inmonetary rewards or profits is primarily due to the feedback that moneyprovides as to how they are doing.

PERSONALITY, PSYCHOGRAPHICS AND CONSUMER

BEHAVIOUR

INTRODUCTION

Consumer behaviour is an integral part of our human activity andconcerns those processes that influence our consumption related


17/40

decisions. These processes consist of a range of external and internalfactors such as culture, income, perception, attitudes, learning patternsand personality (Schiffman & Kanuk, 1991). They help us understandthe various consumption needs of individuals and the reasons for the

decisions that consumers make. Within this open system's perspective,focus will be placed on one of these internal variables, namelypersonality, and the influence, affect and relevance it has on individualbehaviour and marketing research in South Africa.

Personality indicates the persistent disposition of an individual to behavein a particular way (Sarason & Sarason, 1986). Individuals can thereforebe described as high risk takers, aggressive or very sociable, and it

serves to help us differentiate between individuals, and to segmentpeople into different personality groups. Personality has therefore beenfound to be one of the more engrossing concepts in consumer behaviourbecause it is thought that it will enable marketers to segment people intosimilar consuming groups and thereby facilitate the development ofstandardised products and promotional campaigns (Schiffman & Kanuk,1991). It has also been thought that because of the persistent or stablequality of personality, one can learn which personality characteristicswill influence specific consumer responses (Schiffman & Kanuk, 1991).

Various personality theories and psychographic inventories havetherefore been applied to the area of marketing in order to explain andpredict such behaviour.

PERSONALITY THEORIES

Psychoanalytic Theory

In consumer behaviour, the psychoanalytic theory has been applied in

order to emphasize the unconscious nature of personality, and the waybehaviour is related to childhood conflicts and the stresses between theid, ego and super ego within the personality system (Assael, 1987). Theinteraction of these three components account for the variety ofpersonalities, attitudes and behaviour patterns of people, and for some ofthe consumer decisions people make (Kassarjian, 1971).


18/40

Researchers in applying the psychoanalytic theory to consumerbehaviour have based their studies on the premise that human drives arelargely unconscious, and that consumers are not aware of their truemotives (Engel & Blackwell, 1990). It has been argued that these

unconscious motives can only be determined through indirect methodsof research, and therefore techniques such as observation and inference,projective techniques, focus group discussions and in depth interviewshave been used. They focus on the consumers purchases so that what wewear, drive and the products we use are reflections and extensions of ourpersonality (Schiffman & Kanuk, 1991).

The psychoanalytic approach has been criticised because it lacks

empiricism. It has also been questioned whether it is really possible thatdeep-seated motives can be influenced by advertising strategies (Assael,1987). However, despite this critique, psychoanalysis has providedmarketers with some actionable findings. In the case of power tools,studies have suggested that they seem to provide men with a feeling ofomnipotence and masculinity, while in the case of men who buyconvertibles, it is seen as a substitute mistress (Engel & Blackwell,1990).

To a large extent, advertising has been influenced by the psychoanalyticapproach to personality, especially in terms of the emphasis on sexualand other deep seated biological instincts (Engel & Blackwell, 1990).Marketers have tried to influence the behaviour of consumers bystimulating the individual's primitive instincts and fantasies, and offeringa means of gratification for them.

Although the psychoanalytic approach lacks empiricism, and findingsbased on this kind of research have been subject to serious questions ofvalidity, it has made marketers realise that consumers are driven byinternal forces of which they are unaware. Psychoanalysis has served tobring marketers face to face with a group of consumers, and instead ofpresenting marketers with a number of meaningless statistical outcomes,it has provided them with some explanation as to the behaviour of


19/40

consumers. Prior to the advent of such personality research, advertisingand marketing research was described as "a wasteland of percentage"(Assael, 1987 p.218). However, researchers havestated that one shouldgo further to gain a thorough and in-depth understanding of personality

and consumer decision making, as a consumer's personality is a result ofmore than just subconscious drives (Engel & Blackwell, 1990).


20/40

Section II

Consumer as a perceiver & learner.Individual differences in behavior personality, values, lifestyle.Consumer behavior & external influences :-

Group dynamic & consumer reference groups


21/40

Consumer as a perceiver & learner.

The customers perception of a product or a brand is what matters Perception is

the process by which an individual selects, organizes, and interprets the

information he or she receives from the environment.

The Process of Perception

Sensation Organization Interpretation

Factors that Shape Perception

Stimulus characteristicsThe nature of information from the environmentContext characteristicsThe setting in which the information is receivedCustomer characteristicsPersonal knowledge and experiences

Stimulus Characteristics

SensoryStimulates any of the five sensesInformation contentMoves the perceptual process beyond sensation or stimulus selection

towards organization and interpretation

The Customer as a Learner

Learning is a change in the content of long-term memory


22/40

Human learning is directed at acquiring a potential for future adaptivebehaviour

Mechanisms of Learning

Cognitive learningClassical conditioningInstrumental conditioningModelling

Cognitive Learning

Acquiring new information from written or oral communication(i) Rote memorization(ii) Information is rehearsed until it gets firmly lodged in long-term

memory(iii) Problem solving(iv) Actively processing information

Classical Conditioning

The process in which a person learns an association between twostimuli due to their constant appearance as a pair (i.e., Pavlovs dog)

(i) Unconditioned stimulus (UCS)(ii) A stimulus toward which a customer already has a pre-existing

specific response, so the response to it does not have to beconditioned

(iii) Conditioned stimulus (CS)(iv) A stimulus to which the customer either does not have a response, or

has a pre-existing response that needs modification, so a newresponse needs to be conditioned

Instrumental Conditioning


23/40

We learn to respond in certain ways because a response is instrumental toobtaining a reward Behaviourism theory (B.F. Skinner)

Marketers use this learning mechanism most effectively by makingthe product its own intrinsic reward

(i) Coupons(ii) Sweepstakes(iii) Rebates(iv) Frequent flier programs

Modelling

We learn by observing others Four classes of people likely to be imitated by others:

Persons superior in age-grade hierarchy Persons superior in social status Persons superior in intelligence ranking system Superior technicians in any field

Components of Personality

While there are many different theories of personality, the first step is tounderstand exactly what is meant by the term personality. A brief definitionwould be that personality is made up of the characteristic patterns ofthoughts, feelings and behaviors that make a person unique. In addition tothis, personality arises from within the individual and remains fairlyconsistent throughout life.

Some of the fundamental characteristics of personality include:

Consistency - There is generally a recognizable order and regularity tobehaviors. Essentially, people act in the same ways or similar ways in avariety of situations.


24/40

Psychological and physiological - Personality is a psychological construct,but research suggests that it is also influenced by biological processes andneeds.

It impacts behaviors and actions - Personality does not just influence howwe move and respond in our environment; it also causes us to act in certainways.

Multiple expressions - Personality is displayed in more than just behavior.It can also be seen in our thoughts, feelings, close relationships and othersocial interactions.

Theories of Personality

There are a number of different theories about how personalitydevelops. Different schools of thought in psychology influence manyof these theories. Some of these major perspectives on personalityinclude:

Type theories are the early perspectives on personality. Thesetheories suggested that there are a limited number of "personalitytypes" which are related to biological influences.

Trait theories viewed personality as the result of internalcharacteristics that are genetically based.

Psychodynamic theories of personality are heavily influenced by thework of Sigmund Freud, and emphasize the influence of the

unconscious on personality. Psychodynamic theories includeSigmund Freuds psychosexual stage theory and Erik Eriksons

stages of psychosocial development.

Behavioral theories suggest that personality is a result of interactionbetween the individual and the environment. Behavioral theorists


25/40

study observable and measurable behaviors, rejecting theories thattake internal thoughts and feelings into account. Behavioral theoristsinclude B. F. Skinner and John B. Watson.

Humanist theories emphasize the importance of free will andindividual experience in the development of personality. Humanisttheorists include Carl Rogers and Abraham Maslow.

Value

is a concept that describes the beliefs of an individual or culture. A set

of values may be placed into the notion of a value system. Values areconsidered subjective and vary across people and cultures. Types ofvalues include ethical/moral values, doctrinal/ideological (political,religious) values, social values, and aesthetic values. It is debatedwhether some values are innate.

Personal values

Personal values evolve from circumstances with the external worldand can change over time. Integrity in the application of values refersto its continuity; persons have integrity if they apply their valuesappropriately regardless of arguments or negative reinforcement fromothers. Values are applied appropriately when they are applied in theright area. For example, it would be appropriate to apply religiousvalues in times of happiness as well as in times of despair.

Personal values are implicitly related to choice; they guide decisionsby allowing for an individual's choices to be compared to each

choice's associated values.

Personal values developed early in life may be resistant to change.They may be derived from those of particular groups or systems,such as culture, religion, and political party. However, personalvalues are not universal; one's genes, family, nation and historical


26/40

environment help determine one's personal values. This is not to saythat the value concepts themselves are not universal, merely that eachindividual possess a unique conception of them i.e. a personalknowledge of the appropriate values for their own genes, feelings and

experience.

Personal values of other persons are dignity of that other person.

Life Style

A lifestyle typically reflects an individual's attitudes, values or worldview. Therefore, a lifestyle is a means of forging a sense of self and tocreate cultural symbols that resonate with personal identity. Not allaspects of a lifestyle are voluntary. Surrounding social and technicalsystems can constrain the lifestyle choices available to the individualand the symbols she/he is able to project to others and the self.

The lines between personal identity and the everyday doings that

signal a particular lifestyle become blurred in modern society. Forexample, "green lifestyle" means holding beliefs and engaging inactivities that consume fewer resources and produce less harmfulwaste (i.e. a smaller carbon footprint), and deriving a sense of selffrom holding these beliefs and engaging in these activities. Somecommentators, [who?] argue that, in modernity, the cornerstone oflifestyle construction is consumption behavior, which offer thepossibility to create and further individualize the self with different

products or services that signal different ways of life.

Lifestyle may include views on politics, religion, health, intimacy,and more. All of these aspects play a role in shaping someone's


27/40

lifestyle. In the magazine and television industries, "lifestyle" is usedto describe a category of publications or programs.

Consumer Behaviour

External influences - IntroductionWhat are external influences in consumer behavior?

a. What a consumer eats, wears, and believes are all learned and influenced bythe culture they live in, their family, childhood and social environment. All ofthese are external factors that affect purchases.

Here is a list of the external influences that affect consumer behavior:

Age

Race

Gender

Education level

Cross-cultural influences

Sub-cultures (Hispanic-American)

Social status (upper, middle, lower)

Customs, Beliefs, Expectations, Traditions, Habits

Reference groups are groups that have shared beliefs, interests andbehaviors and influence a consumers behavior:

Examples include: Religious, Political, Family, Friends, Co-workers,Clubs and Associations.


28/40

People are social and they want to belong to special groups. Groupmembers share common interests, influence each other, and share rulesand values. Primary groups are those with the most influence, such asfamily members; secondary groups have less interaction than the

primary group, such as clubs and organizations. As children grow intoteenagers, their parents become less of an influence and peer groupsbecome more of an influence. All groups exert what is calledsocialpower; some groups have more power than others over consumers

decisions. Values

Community

Family Life Cycle

c. External influences can also include situational influences, sometimescalled atmosphericssensory items in an environment that may changebuying patterns, such as music, color, smell, and lighting. If a store playsloud rock music, they may attract young adults, but drive away olderconsumers. Color is a huge influence on behavior, but is also dependent

on culture, since different cultures perceive colors differently. In the USwhite is a color worn at weddings, and in China, red is the color ofchoice for weddings. Many bakeries will pump the smell of their treatsoutside the store, so that passersby will be more likely to want to comein.

d. Before making a purchase, consumers will go through an externalinformation search. They will go through this search in order to

evaluate the alternatives and narrow down their list of choices. Itincludes: Personal experiencehave they purchased this product before? How do

they feel about it?

Websites/Internet searchresearching the quality of the product
http://www.marketingteacher.com/lesson-store/lesson-external-influences-family-life-cycle.htmlhttp://www.marketingteacher.com/lesson-store/lesson-external-influences-family-life-cycle.htmlhttp://www.marketingteacher.com/lesson-store/lesson-external-influences-family-life-cycle.html


29/40

Knowledgesomeone with little or no knowledge of the product willneed lots of information!

Friends/reference groupsconsumers ask friends, family and coworkersabout their experiences with the product.

Advertising and promotions

e. A purchase may be ultimately made due to Heuristics. This is apersonal set of values that everyone has and it causes consumers to buywhat they are comfortable buying, such as purchasing from specificcountries of origin, or products that they are brand loyal to.

THE INFLUENCE OF REFERENCE GROUPS

This section deals with various aspects of the dynamics of referencegroup influence.

You would know from your personal experience that, influential peoplein your life have helped to shape your buying decisions. You will findthat this holds true for items like clothing, for instance, that must beacceptable by your peer group. A major reason for studying groups is

that interaction among people modifies behavior.

Reference groups influence consumer behaviour in two ways:

1) They set levels of aspiration for the individual, i.e. they offer cues as to whatlifestyle should be led.

2) They define items appropriate for a member of the group to lead that lifestyle.You had learnt earlier on, that, reference groups are defined as groups that apersonrefers to, and identifies with, to the extent that the group becomes a norm, standardor point of reference.A reference group is, in other words, a group to which a person will comparehimself or herself, to determine his or her own relative standing.


30/40

Consumers also look to reference groups for guidance and advice.Reference groups are usually small groups, and are not as broad as an entire socialclass. The reference group concept was, in fact, originally developed in connectionwith small groups. These include the family, close friends, neighbours, religious

groups, work groups and also, athletic groups. The family is recognised as animportant reference group. In addition, various family members may play differentroles in the purchase consumption process. Like the family, there are several othersocial groups that have an enormous influence on our lives. They regulate our livesthrough establishing standards of dress and conduct, and the accomplishment of taskson a face-to-face basis.

Issues of importance to marketing concerning reference group influence include: What influence do reference groups exert on individuals? How does reference group influence vary across products and brands?

These two issues will be discussed in the following sections.

How Reference Groups Influence ConsumptionReference groups affect consumers through a variety of means: through norms, throughinformation, and through influencing the value expressive needs of consumers. They influenceconsumers through bringing about attitude changes by encouraging the expression of certainvalues and attitudes expressed through the group. Because an individual wants t be a part of agroup, he or she will be influenced by the values and attitudes of the group. Furthermore,

groups whose members exhibit similar social characteristics are more susceptible to attitudechange than groups whose members are less homogeneous. Thus people frequently

buy products that others in their group buy. You must remember, of course, that individualswho feel a strong sense of identification with a group do so because they derive strong

psychological or material benefit from being associated with the group. Reference groups alsoinfluence consumption through norms and conformity pressures. All members of a group mustadhere to the norms established for that group. To enforce normative systems, groups tend toexert conformity pressure, direct or indirect, on their members. For example, teenager peergroups exert pressure on members' choice of clothing. Conformity pressure is common ineveryone's personal experience. Of course, it is possible that the pressure to conform can

produce the opposite effect. Levels of Group Involvement: In addition, there are three processesor levels of group involvement. These have been termed as compliance, identification andinternalisation. Compliance involves only overt behaviour on the part of the individual andmakes no demands on personal beliefs and attitudes. Identification represents a closer, moredependent relationship than that implied by compliance. In identification, the individual


31/40

complies to maintain a social relationship. Identification also reinforces the self-perceptions ofindividuals. Internalising the values of the group occurs at the third stage. In internalisation,consumers enforce the values of the group even in its absence.

What is a Group?

A group is: two or more people who share a common definition and evaluation of themselves and

behave in accordance with such a definition(Vaughan & Hogg, 2002, p. 200)

a collection of people who interact with one another, accept rights and obligations asmembers and who share a common identity.

Criteria for a group include: formal social structure

face-to-face interaction 2 or more persons common fate common goals interdependence

self-definition as group members recognition by others

Introduction to Group Dynamics

Human beings exhibit some characteristic behavior patterns in groups.

People involved in managing groups and group members themselves canbenefit from studying theories and doing practical exercises which help

them to better understand people's behaviour in groups and groupdynamics.

When group patterns are combined with study of individual development,

then group dynamics can also be applied to education and therapy (as isoften the case in experiential, outdoor and adventure education).

People may may underestimate the importance of society and group

memberships on their lives. Whilst people sometimes undertake solojourneys ut by and large much of our experiences of life involve being


32/40

engaged with others and groups. The nature of these groups can be quite

varied, from a family going for a walk, to the crowd at a football game, toan internet discussion group, to a group of fellow workers.

Given the diverse, yet common occurrence of groups, what is the nature

and pattern of such groupexperiences? The social dynamics which occurwithin groups over time vary from group to group, but also illustrate some

commonalities.

What are the important characteristics of reference group

Characteristics of Reference Group

The following are the main characteristics of 'Reference group'.

(1) Reference groups are the conceptual groups not the actual groups,

because these are non-membership groups.

(2) Relative deprivation is the kernel of reference group behaviour. Forinstance an Indian scientists who compares his lot with another Indianscientist settled in the United States feels deprived of manyinfrastructural facilities favourable to research.

(3) Anticipatory socialisation is another basic element of referencegroup. In order to get a membership in the reference group the

individuals undergo the process of socialisation that is, take on thevalues and lifestyles of the group to which they would like to belong infuture. Similarly the low caste Hindus irritate in an anticipation that theywould be included in the high castes.


33/40

(4) Reference group need not remain the same forever. An individualmay change his reference groups as he takes on different statuses in life.

(5) Reference groups are not that much significant in simple societies as

they are in modern societies. In modern complex societies referencegroups are abundant.

(6) In reference group behaviour one relates oneself to the otherindividuals or groups and tries to adopt their values and standards.


34/40

Section III

Social class & Status.Culture & ethic values.Family & household influences.

Situational influences.

What is social class?


35/40

Any observer of American society would quickly note that there are large variationsin wealth, material possessions, power and authority, and prestige in our society. Theywould also note differences in access to education, healthcare and leisure. One childin ten lives in poverty in major industrial countries, one in five in the United States.

Taken together these differences in resources and outcomes are thought of as the basisof inequality. What is the source of this inequality? Some say it is the result of anunequal distribution of resources, power and authority.

What are resources: money, land, assetsdistinction made between wealthmonetary value of all own and incomeamount of money brought in through wages,investment, etc.What is power: ability to be in charge, to ruleWhat is authority: control, particularly in the face of resistance

Are material interests (money, land, assets, etc.) the only basis ofinequality? Status represents another form of inequalitystanding, esteem, respect,prestige, may involve physical ability, intelligence, beauty, occupations that areranked in order of prestigedoctors, corporate lawyers, financial experts togarbage collectors and janitors.

When sociologists talk ofsocial class, they refer to a group of individuals who occupya similar position in the economic system of production. Within that systemoccupation is very important because it provides financial rewards, stability and

benefits like healthcare. Are people in similar positions, aware of each other? In broadterms, yes. Get information (cues) by type of job, neighborhood, clothing, cars, etc.Also get information by conversationtopics, style, grammar etc. Can peoplemislead or be misled? Of course. Is there a point of view specific to socialclass? Middle class values? Working class values?

How many social classes are there in the United States? Disagreement within thefield on both the number and the composition of these classes. Many sociologistssuggest five:Upper ClassElite

Represent institutional leadership, heads of multinational corporations, foundations,universitiesCapitalist eliteowners of lands, stocks and bonds and other assetswealth derivedfrom what they ownForbes magazine publishes a list of the 400 wealthiest families in America. In 1997,net worth had to be at least $475 million.Bill Gates, in that year, had net worth pf 39.8billion. Of all the wealth represented on the Forbes list, more than half is inherited.


36/40

Newly acquired wealth, nouveau riche, have vast amounts of money but not oftenaccepted into old money circles.

Upper Middle ClassRepresent scientific and technical knowledgeengineers, accountants, lawyers,

architects, university faculty, managers and directors of public and privateorganizations. Have both high incomes and high social prestige. Well-educated. Difficult to define a middle class (i.e. upper middle, middle middle andlower middle) probably the largest class group in the United Statesbecause beingmiddle class is more that just income, about lifestyles and resources, etc.

Lower Middle ClassClerical-administrativeProvide support for professionalsEngage in data collection., record-keepingParalegals.\, bank tellers, salesBlue-collar workers in skilled trades

Working ClassCraft workersLaborers in factoriesRestaurant workersNursing home staffRepair shops, garages

Delivery services

Poor

Working poorwork full-time at wages below poverty lineSocial servicesUnderclass

Social class is one of the most important concepts that sociologists discuss and yet itsdefinition is often illusive. There are two classical sociologists who are most

important in the discussions about classKarl Marx and Max Weber.

What are the core values of Ethical Culture?


37/40

"The first postulate of Ethical Culture is the existence of a moral law as permeating asthe physical laws of nature... Is this conception of god less real, less inspiring, lessreasonable than the concept of an absolute creator and ruler of the universe?""The second postulate of ethical religion is the existence of a spiritual element inhuman nature which makes us capable of seeking the fulfillment of the moral law in

our daily conduct. It is on the ground of this capability that we attribute worth tohuman beings." Ethical Values

Ethical Culture values are optimum principles of behavior based on the understandingthat human beings are autonomous individuals whose wellbeing, paradoxically,depends on their connections to everyone and everything else.

Respect for Human Worth. I am an evolving person cultivating goodness.Every person is a creative source with an inherent capacity for goodness.

Responsibility. I am in charge of who I am and what I do. Everyone isaccountable for his or her actions.

Love. I encourage the beauty, goodness, and creative power in every person.Everyone has the right to be all he or she can be.

Freedom. I appreciate and express my uniqueness. Everyone has the right tomake his or her own choices.

Kindness. I care for the well-being of people. Everyone has the right to safety. Fairness. I act as I wish ideally to be treated. Everyone has the right to an equal

opportunity. Trust. I honor my agreements. Everyone is accountable for his or her promises.

Truthfulness. I speak without misleading. Everyone can face reality honestly. Forgiving. I admit my mistakes: by expressing sorrow for causing harm, by makingamends, and by learning a better way. Everyone can learn by trial and error.

Joy. I choose to find within me delight in being alive. Everyone can experience thebliss of being in harmony with his or her ethical yearnings.

Family influence in consumer behavior

FAMILY INFLUENCE IN CONSUMER BEHAVIORThe family is the most important consumer buying organization insociety, and family members constitute the most influential primaryreference group. We can distinguish between families in the buyers

life.


38/40

The family of orientation consists of parents and siblings. From parentsa person acquires an orientation toward religion, politics, andeconomies, and a sense of personal ambition, self-worth, and love. Evenif the buyer no longer interacts very much with his or her parents, their

influence on behavior can be significant. In countries where parents livewith grown children, their influence can be substantial.A more direct influence on everyday buying behavior is the family of

procreation namely ones spouse and children.The makeup of the American family however has changed dramatically.Census Bureaus newest numbers shows that married couple

households the dominant cohort since the countrys founding

have slipped from nearly 80% in the 1950s to roughly 50% today.

The above figures mean that the Unites States 86 million single adultscould soon define the new majority. Already, un-married make up 42%of the workforce, 40% of home buyers, 35% of voters, and one of themost powerful consumer groups on record.Marketers will have to pay attention not only to the buying habits ofsingletons? who have delayed marriage, but also to families onceconsidered on the fringe that are cohabiting partners , divorced parentswho share custody, single parents by choice , and same sex couples whomay or may not have children.Marketers are interested in the roles and relative influences of familymembers in the purchase of a large variety of products and services. Inthe United States, husband-wife involvement has traditionally variedwidely by product category. The wife has usually acted as thefamilys main purchasing agent, especially for food, sundries, andstaple-clothing items. Now traditional purchasing roles are changing,and marketers would be wise to see both men and women as possibletargets.

With expensive products and services like cars, vacations, or housing,the vast majority of husbands and wives engage in more in more jointdecision making. Given womens increasing wealth and income

generating ability, financial service firms such as Citigroup, Charles

Schwab, and Merrill Lynch have expanded their efforts to attract womeninvestors and business owners. And marketers are realizing that men


39/40

arent the main buyers of high-tech gizmos and gadgets these days.Women actually buy more technology than men do, but consumerelectronics stores have been slow to catch on to this fact. Some savvyelectronics stores are starting to heed womens complaints of being

ignored, patronized, or offended by salespeople.Radio Shack Corp., a 7,000-store chain, began actively recruiting femalestore managers so that a woman manages about one out of every sevenstores.Nevertheless, men and women may respond differently to marketingmessages. One study showed that women valued connections andrelationships with family and friends and placed a high priority onpeople. Men, on the other hand, related more to competition and placed

a high priority on action. Marketers are taking more direct aim at womenwith new products such as Quakers Nutrition for Women cereals

and crest Rejuvenating Effects toothpaste. Gillette Co. researchedpsychological issues specific to women and came out with anergonomically designed razor Venus that fits more easily in a

womans hand. Sherwin-Williams recently designed a Dutch Boyeasy-to-use Twist and pour? pint can targeted specifically atwomen.Another shift in buying patterns is an increase in the amount of dollarsspent and the direct and indirect influence wielded by children and teens.Direct influence describes childrens hints, request, and

demandsI want to go to McDonalds.? Direct influence ofkids between the ages of 4 and 12 totaled around $275 billion in 1999.Their indirect influence on parental spending accounted for another $312billion of household purchases. Indirect influence means that parentsknow the brands, product choices, and preferences of their childrenwithout hints or outright requests. One research study showed that

teenagers were playing a more active role than before in helping parentschoose a car, audio / video equipment, or a vacation spot.Marketers use every possible channel of communication to reach kids,especially such popular media as Nickelodeon, Cartoon Network, or theDisney Channel on TV and magazines such as Nickelodeon, SportsIllustrated for kids, and Disney Adventures.


40/40

We summarize that the marketers have to concentrate on the interests ofvarious consumers may be from the same family group or otherwise. Tolist out each of them are separate consumers in their own right and theycan be listed as, housewives or women in the household, husband,

children, grand parents, singletons, cohabiting partners , divorcedparents who share custody, single parents by choice, and same sexcouples who may or may not have children. Today it is not specific toadvanced countries alone but the type of aforesaid type of consumers arenow common even in Asian and African countries.

bba consumer behaviour

Documents