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MARKETING APPLICATION OF
REFERENCE GROUPS , FAMILY & CULTURE
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Consumer behavior Process through which buyers make decisions.
Marketers borrow extensively from psychology and sociology to better understand consumer behavior.
Consumer behavior is usually understood as a function of interpersonal influences and personal factors.
WHAT IS CONSUMER BEHAVIOR ?
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An individual or group who serve as points of comparison or reference and have a significant relevance on an individual's evaluations, aspirations or behaviour
A group consists of two or more people who interact with each other to accomplish some goal.
A reference group involves one or more people used as a basis for comparison or point of reference in forming affective and cognitive responses and performing behaviors.
WHAT IS REFERENCE GROUP?
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Play a vital role in socializing the consumer and transmitting society’s norms and values
Influence a person’s values, beliefs, attitudes and behaviors.
About :- products and brands
What product attributes are important
What lifestyles are desirable
purchase/consumption decisions
What do they do?
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Reference groups are cultural groups in that members share certain common cultural meanings.
Marketers try to determine the content of the shared meanings of various reference groups.
Reference groups can have both positive and negative effects on consumers.
ANALYZING REFERENCE GROUPS
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FACTORS INFLUENCING BUYING DECISIONS
Social Factors
Individual Factors
Psycho-logical Factors
Cultural Factors CONSUMER
DECISION-MAKINGPROCESS
BUY /
DON’T BUY
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Reference groups People or institutions whose opinions are valued and to whom a person looks for guidance in his or her own behavior, values, and conduct, such as family, friends, or celebrities.
Influence of reference group depends on two conditions:
• Purchased product must be seen and identifiable.
• Purchased product must be conspicuous, something not everybody owns.
REFERENCE GROUPS
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A group consists of two or more people who interact with each other to accomplish some goal.
A reference group involves one or more people used as a basis for comparison or point of reference in forming affective and cognitive responses and performing behaviors.
CONTINUE……
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CULTURAL INFLUENCES
Culture Set of values, norms, attitudes, and
other meaningful symbols that shape
human behavior and the artifacts, or
products, of that behavior as they are
transmitted from one generation to the
next.
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Culture Values, beliefs, preferences, and tastes handed down from one generation to the next.
Culture is a broad environmental determinant of behavior.
Culture:
The values, ideas, attitudes, and symbols that people adopt to communicate, interpret, and interact as members of society.
CONTINUE….
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COMPONENTS OF CULTURE
Myths
Language
Values
Customs
Rituals
Laws
Material artifacts
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CULTURE IS. . .
Learned
Functional
Pervasive
Dynamic
Culture is learned and transmitted from one generation to the next.
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Groups within a culture that have their own modes of behavior.
• In U.S. subcultures can differ by ethnicity, nationality, age, rural versus urban location, religion, and geographic distribution.
• Population mix in U.S. is changing as the Hispanic, African American, and Asian populations grow.
SUB-CULTURES
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Ethnic Patterns:
The norms and values of specific groups or subcultures within a society. Demographic characteristics used to identify subcultures:
Nationality - Hispanics, Italians
Race - African-American, American Indian, Asian
Region - New England, the South
Age - Elderly, teenager
Religion - Catholic, Jewish, fundamentalist
ETHNIC PATTERN
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Everyone belongs to multiple social groups: family, neighborhood, clubs, and sports teams.
Group membership influences buying decisions.
SOCIAL INFLUENCES
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Groups establish norms of behavior—values, attitudes, and behaviors that a group deems appropriate for its members.
Differences in status and roles within groups also influence behavior.
Some Americans make purchases to enhance their status within social groups, and others work to reduce their consumption dramatically.
CONTINUE…..
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Six classes: upper-upper, lower-upper, upper-middle, lower-middle, working class, lower class.
Income not always a primary factor.
Individuals’ buying habits sometimes reflect the class to which they aspire
Social Classes:
Relatively homogeneous divisions within a society that contain people with similar values, needs,
lifestyles, and behavior
SOCIAL CLASSES
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A family has at least two people, the householder and someone who is related to the householder by blood, marriage, or adoption.
Like other influences, families have norms of expected behavior, status relationships, and roles.
FAMILY INFLUENCES
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Family decision making refers to how family members
interact and influence one another
when making purchase choices for the household.
CONTINUE…..
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Thank you