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    350 L8 Handout

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    Harper Lee
    This document discusses the influence of social factors on consumer behavior. It covers topics like consumer socialization, the role of reference groups like family and friends, and how the family life cycle affects consumption. Specifically, it describes how children learn consumer behaviors from socialization agents like family, peers and media. It also explains how reference groups influence consumers and the factors that determine a group's degree of influence, like the conspicuousness of a product. Additionally, it discusses the different stages in the traditional and non-traditional family life cycles and how consumption patterns change across these stages.

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    350 L8 Handout

    Uploaded by

    Harper Lee
    32 views41 pages
    This document discusses the influence of social factors on consumer behavior. It covers topics like consumer socialization, the role of reference groups like family and friends, and how the family life cycle affects consumption. Specifically, it describes how children learn consumer behaviors from socialization agents like family, peers and media. It also explains how reference groups influence consumers and the factors that determine a group's degree of influence, like the conspicuousness of a product. Additionally, it discusses the different stages in the traditional and non-traditional family life cycles and how consumption patterns change across these stages.

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    This document discusses the influence of social factors on consumer behavior. It covers topics like consumer socialization, the role of reference groups like family and friends, and how the family life cycle affects consumption. Specifically, it describes how children learn consumer behaviors from socialization agents like family, peers and media. It also explains how reference groups influence consumers and the factors that determine a group's degree of influence, like the conspicuousness of a product. Additionally, it discusses the different stages in the traditional and non-traditional family life cycles and how consumption patterns change across these stages.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    32 views41 pages

    350 L8 Handout

    Uploaded by

    Harper Lee
    This document discusses the influence of social factors on consumer behavior. It covers topics like consumer socialization, the role of reference groups like family and friends, and how the family life cycle affects consumption. Specifically, it describes how children learn consumer behaviors from socialization agents like family, peers and media. It also explains how reference groups influence consumers and the factors that determine a group's degree of influence, like the conspicuousness of a product. Additionally, it discusses the different stages in the traditional and non-traditional family life cycles and how consumption patterns change across these stages.

    Copyright:

    Attribution Non-Commercial (BY-NC)
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    of 41

    Lecture

    Social Influence on Consumer Behavior


    1

    Agenda
    1. Consumer socialization 2. Socialization under influence of
    Reference group Family

    Consumer Socialization
    The process by which children acquire the skills, knowledge, and attitudes necessary to function as consumers.

    Reference group
    Any person or group that

    (Refer Ch.9)

    serves as a point of comparison (or reference) for an individual in forming either general or specific values, attitudes, or a specific guide for behavior. 1. Normative Reference Groups on value
    E.g., good parents, or good students

    2. Comparative Reference Groups for benchmarking


    E.g., Slim Vs Obesity

    Major Consumer Reference Groups

    Factors That Affect Reference Group Influence


    1. Information & experience of individual 2. Credibility, attractiveness, and power of the reference group

    3. Conspicuousness of the product 4. Consumer conformity

    Credibility, attractiveness, and Power of the reference group


    Power exert over consumer: Choose products conform to the norms to avoid punishment. Power change behavior not attitudes. Depends on: Points in time Circumstances.
    7

    Factors Affecting Reference Group Influence

    Conspicuousness of the product


    Visually / Verbally conspicuous product Status-revealing products likely to be purchased with an eye to the reactions of relevant others

    Factors Affecting Reference Group Influence

    Public Vs Private; Luxury Vs Necessity


    (Bearden & Etzel 1982)

    Reference group influence on product and brand purchase decisions


    PRODUCT Weak Reference Strong Reference Group Influence Group Influence PUBLIC NECESSITIES Influence: Weak product & strong brand (watch, autos, suits) PRIVATE NECESSITIES Influence: Weak product & weak brand (mattress, refrigerator) PUBLIC LUXURIES Influence: Strong product & strong brand (golf clubs, yacht) PRIVATE LUXURIES Influence: Strong product & weak brand (Hi Fi Stereo; Jacuzzi)

    Factors Affecting Reference Group Influence

    Consumer Conformity

    Ability of reference groups to: Inform or make aware compare own thinking Vs the group. norms and legitimized decision

    10

    Selected Consumer-related Reference Groups


    Friendship Groups Informal but important Shopping Groups social needs / risk reduction (bandwagon effect) Work Groups formal or informal work groups Virtual Groups or Communities multi-personality problem to marketers Consumer Action Groups / consumerists ad hoc / permanent)
    11

    Reference Group Appeals In Promotion Strategies


    Slice-of-life

    Testimonials
    Endorsements

    Credibility / trustworthiness of the celebrity is a powerful influence

    12

    Identification to Reference Group in Advertisement

    Based on: 1. Admiration 2. Aspiration 3. Empathy 4. Recognition (of a person real or stereotypical, or of a situation)
    13

    The Expert
    The expertise must be relevant to the use of product.

    14

    The Common Man


    Someone just like the customer Testimonials of satisfied customers. Families are often depicted in "real-life" situations in commercials.

    15

    Executive and Employee Spokesperson


    The Executive Spokesperson achievements and status admired by public / business leaders Front-line Employee who speaks directly to the consuming public

    16

    Trade or spokes-characters
    Quasi-celebrity endorsers Exclusive to a specific product Cartoon character

    17

    The Family Influence to Consumer


    Family Vs household Types of families dominate:
    1. 2. 3. 4. The Married Couple The Nuclear Family. The Extended Family The Single-parent family

    18

    The Family Function


    Socialization of children imparting basic values & modes of behavior Marketers target parents for socialization of children to establish experiences continue throughout life.

    19

    A Simple Model of the Socialization Process (Fig. 10.4)


    Young Person Family Members
    Influence Basic Values/Behavior
    Moral/religious principles Interpersonal skills Dress/grooming standards Manners and speech Educational motivation Occupational career goals Consumer behavior norms

    Friends
    Influence Expressive Attitudes/Behavior
    Style Fashion Fads In/Out Acceptable consumer behavior

    Preadolescent

    Adolescent

    Teens

    Older
    20

    Theory of Reasoned Action


    Beliefs that specific referents think I should or should not perform the behavior

    Beliefs that the behavior leads to certain outcomes

    Evaluation of the outcomes

    Motivation to comply with the specific referents

    Attitude toward the behavior

    Intention Behavior

    Subjective Norm

    21

    Consumer Socialization of Children


    Instrumental learning with reinforcement/reward.
    Vicarious learning / observation

    22

    Adult Consumer Socialization


    Socialization begins in early childhood and extends throughout a person's entire life.
    Continuous socialization throughout the life Different reference groups have different impact in different stage of life. Inter generational Socialization

    23

    Parental Influences
    Protective parents
    Parents who stress that children should not stress their own preferences, but go along with parents judgment

    Consensual parents
    Parents who encourage children to seek harmony; open to the childrens viewpoint

    Pluralistic parents
    Parent who encourage children to speak up and express their individual preference

    24

    Tactics of Children to Influence Parents


    (Table 10.4)

    1. Pressure tactics 2. Upward appeal


    E.g., support of grand parents; teachers.

    3. Exchange tactics 4. Coalition tactics


    Seek alliance (e.g., sibling) Make request when parents in a good mood

    5. Ingratiating tactics

    6. Rational persuasion 7. Inspirational appeals


    Appeals to the enthusiasm or values of parents

    8. Consultation tactics
    Seek parents advice on a decision (get parents to endorse their own ideas)

    25

    Other Functions of The Family


    Economic well-being Emotional support The provision of emotional nourishment Love, affection, intimacy, Support and encouragement Decision making and personal or social problems. Suitable family lifestyles

    26

    Key Family Consumption Roles


    Family-related duties are constantly changing. Users / Influencers / Buyers Deciders unilaterally or joint decision Gatekeepers Preparers / Maintainers Disposers - initiate disposal Changing husband-wife decision making

    27

    The Family Life Cycle (FLC)


    FLC analysis enables market segmentation FLC is a composite variable combining
    marital status, size / age of family members,

    employment status of the head of household.

    28

    Traditional Family Life Cycle


    Stage One Bachelorhood

    Stage Two Honeymooners


    Stage Three - Parenthood (full-nest stage)

    Phase by children growth:


    Preschool / primary / high school / university.

    29

    Traditional Family Life Cycle


    Stage Four Post-parenthood (empty-nest stage) Parents = Rebirth Stage Five Dissolution Rejuvenation? second (or third and even fourth) marriages Nontraditional FLC Stages

    30

    Nontraditional FLC Family Stages


    Alternative FLC Stage Childless couples Definition/Commentary Increasingly acceptable with more careeroriented married women and delayed marriages Likely to have fewer or no children Likely to have fewer children. Want the best and live quality lifestyle High divorce rate - about 50% lead to this Child out of wedlock Single person who adopts Adult children return home. Divorced adult returns home. Elderly move in with children. Newlyweds live with in-laws.

    Couples who marry later in life Couples with first child in late 30s or later Single parents I Single parents II Single parents III Extended family

    31

    An Extended Family life Cycle


    Middle-Aged Divorced without Children Young Divorced without Children

    Middle-Aged Married without Children Young Married with Children * MiddleAged Married with Children * MiddleAged Married without Dependen t Children* MiddleAged Divorce d without Children

    Young Single*

    Young Married without Children *

    Older Married *

    Older Unmarried *

    Young Divorced with Children *

    MiddleAged Divorce d with Childre n

    Usual Flow Recycled Flow *Traditional Family Flow

    32

    Social Status and Social Class


    Status is defined by demographic variables: 1. family income. 2. occupational status. 3. educational attainment. Social class is defined as The division of members of a society into a hierarchy of distinct status classes, so that members of each class have either higher or lower status than members of other classes members of each class same status

    33

    Social Comparison Theory


    Social comparison theory: individuals normally compare their own material possessions with those owned by others in order to determine their relative social standing. Visible or conspicuous possessions indicators of status
    Upward social comparison: compare himself to someone who is worse off in order to bolster his self-esteem. Downward social comparison: compare upward with someone who appears to have more purchasing power make the consumer feel somewhat inferior. 34

    Status consumption
    Status consumption is the process by which consumers endeavor to increase their social standing through conspicuous consumption and possession.
    I.e., a consumer may display purchases that will reflect positively on his social status by comparison to those surrounding him.

    35

    The Measurement of Social Class


    Social class can be thought of as a continuum range of social positions on which each member of society can be placed. Subjective measures
    self-perceptions / class consciousness. Most consider themselves as middle class.

    36

    The Measurement of Social Class


    Reputational measures
    by selected community informants

    Objective measures
    by socio-demographic variables. Through questionnaires of factual questions Socioeconomic Status Score (SES)

    37

    Social Class Mobility


    Individuals can move either up or down in social class from the class position held by their parents. Most people think of upward mobility upper classes become the aspiration reference group for ambitious men and women. Higher-class symbols in ad.

    38

    Segmenting the Affluent Market


    Approx. 20% of all households in HK (above CPI
    Attractive target customers The affluent market is not one single market Segmentation 1. Two careers 2. No strings attached 3. Nanny's in charge 4. Well-feathered nests 5. The good life - with no person employed

    A&B)

    39

    The Non-affluent Consumer


    Majority of the mass market Working class approx. 80% of all Hong Kong households (CPI A&B) The size and income of the non-affluent group make them an important target market. Downscale consumers are more brand loyal than wealthier consumers since they can less afford to make mistakes in switching to unfamiliar brands.

    40

    The Arrival of The "Techno Class"


    Techno Class
    high degree of literacy, familiarity and competency with technology, especially computers and the Internet. Advertisement featuring technological superstar

    Technological Under-classed

    41

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