CONSUMER BEHAVIOR UNIT IV

Consumer Behavior Model Lessons:

4.1 Models of Consumers

4.2 Models of Consumer Behavior: General Models

4.3 Models of Consumer Behavior: Specific Models

Duration: 3 hours per week

INTRODUCTION

Consumers are different. While the decision making process is alike, they have
varying perspectives and this contributes to the final decision. Explaining consumer
behavior models aid a marketer in identifying and understanding a wide range of
variables. Hence models assist a marketer recognize and identify buyer behavior and
help them produce recommendable marketing programs and strategies.

Scholars have tried to study the dynamics of consumer decision making; consumer
behavior from changing orientations, and numerous models have been proposed. In the
1940s, economic paradigms have created several models, to the irrational, impulsive,
emotional and susceptible social consumer of the 1950s and 1960s, for the 1960's and
70s information processor, to the cognitive and rational consumer post 1980's.

Evolution of purchase paradise has been observed; mentioned of the cognitive

paradigm, where purchase is seen as an outcome of problem solving; the conditioning
paradigm, where purchase is regarded as a behavior that can be learned; and the habit
paradigm, where it is regarded as a behavior pattern in a pre-established routine.

INSTRUCTIONAL OBJECTIVES

After completion of this Unit IV, the student shall know about:

● understand the Model of Consumer Behavior

● analyze the Model of Consumer Behavior in General Models
● evaluate the Model of Consumer Behavior in Specific Models
LESSON PROPER/METHODOLOGY

ACTIVITY

“"People don't buy for logical reasons. They buy for emotional reasons." ~

Zig Ziglar (1926)

What does this quote tell you?

ANALYSIS

4.1 Models of Consumers

Internal and external forces greatly affect the buying decision process of consumers'
approach in the marketplaces. Numerous scholars have attempted to analyze the
dynamics of consumer decision making and identified classified four erratic views
and perspectives, the fundamental forces steering within consumers that could be
employed to approach the marketplace. Such are Economic, Cognitive, Passive and
Emotional.

Economic view: Referring to the economic perspective of studying consumers, the

consumer is considered as being rational. Such a model assumes that there exists in
the market a state of perfect competition; the consumer is aware of the various
alternatives; consumer has the knowledge and ability to rank all of these; and finally
takes a rational decision. Consumers hold a decision and make a choice after taking
into account the cost and benefit, and the overall value in economic terms.

Cognitive view: As discussed in previous topic consumer searches for a product to

fulfill his needs and wants; nevertheless consumer is deemed as being a problem
solver. Consumer decisions are based on gathered and processed information. The
consumer is assumed to take decisions after a lot of thought and deliberation, so as to
get maximum benefit and value.

Passive view: In passive view, the consumer is regarded as impulsive and irrational,
who easily give in to the selling and promotional efforts of a marketer. It is assumed
that the consumers are submissive to the ego-centric interests of the marketer and
the notable sales person.

Emotional view: Emotional and impulsive consumers are being regarded in this view.
Consumers make decisions based on their moods and emotions. Hence, marketers
must put in extra effort and create positive mood and emotions.

4.2 Models of Consumer Behavior: General Models

How and why consumers behave in a marketplace can be regarded as the

consumer models with which refer to varying orientations and perspectives of
consumer approach. Varying orientations means how consumers impact the buying
decision process and general buyer behavior. Two types of consumer behavior model
(a) General models (b) Specific models.

THE GENERAL MODELS: There are four categories under general model such are
Economic model, Psychological model, Psychoanalytic model and Sociological model
The Economic model: This derives from economic perspective buying behavior. The
assumption is that getting the most benefits while minimizing costs. Thus, one can
recognize consumer behavior under economic indicators such as the consumer’s
purchasing power and the price of competitive products. Taken from the example,
a consumer will buy a similar product like facemask or face shield that is being offered
at a lower price by another online seller to maximize the benefits; the increase in a
consumer’s purchasing power will let them to increase the quantity of the products they
are purchasing.

Micro economic models:

The micro economic models focus on the behavior of purchasing; they

focus on what an average consumer would purchase and in what quantity. Stated
in this model, prices are set based on the balance of supply and demand in
the market. They also disregard why and how the needs/wants get prioritized,
and how the behavior is sustained.

For example, internet advertising is another segment dominated by two

companies, Alphabet Inc. (Google) and Facebook, Inc. Both act as price makers
instead of price takers. However, if there is a perfectly competitive market with
little or no product differentiation, companies must accept the prevailing market
price if they intend to sell their goods or services.

Macro economic models:

The macroeconomic models based on the overall trend in the economy

that has an impact and is also influenced upon by buying patterns. This
focuses on the total flows in the economy. Assumptions about consumer
behavior are made after analyzing such flows. Two orientations could also be
studied:

a) Relative income hypothesis: A consumers’ expenses are influenced by his

social environment and group. With his fixed income, the relative expenses
and the savings will not change, otherwise, if there is an enormous change in
the total income.

The hypothesis of what and how much a consumer spends his money
is not solely dependent on income, but is influenced by peers.

b) Permanent income hypothesis: In spite of the fact that total income

increases people primarily exhibit inertia towards spending as they want to
accumulate wealth; so purchasing patterns do not change immediately.

The Psychological model: The Learning Model or the Pavlovian Learning Model
also called the Psychological Model was proposed by classical psychologists Pavlov. As
stated in this model, the consumption behavior and decision making is a function of
relationship between human needs and drives, stimuli and cues, responses and
reinforcements.
People always have needs and wants; hence driven towards products and services
(stimuli and cues), in which they purchase (response), and are expecting a satisfying
experience (rewards and reinforcements); Repeat behavior or action would depend
on the reinforcement they have received.

Furthermore, it also explains that behavior is much affected by the learning

experiences of the consumer; thus learning is a product of information search,
information processing, reasoning and perception. Reinforcement guides to a habit
formation and the decision process for an individual becomes a cycle, leading to brand
loyalty. Consumers also learn through trial and error and experiences that are stored
in our memory. A scenario where a hidden symbol in a company's name or logo may
affect the subconscious mind of an individual and may influence him to buy that
product instead of a similar product from another company.

However, the limitations of studying consumer behavior with this approach are that
the model seems incomplete. Learning is not the only factor in the buying process and
the decision making. The model totally takes no notice of the role played by (a) other
individual determinants like perception, personality (the subconscious), attitudes;
as well as (b) interpersonal and group influences.

Psychoanalytic model:
Proponent Sigmund Freud, the model seeks to explain consumer behavior as a
resultant of forces that set off at subconscious level. The individual consumer has a
set of extensive seated motives which drive him towards certain buying decisions

Buyers' needs and desires operate at several levels of consciousness as assumed in

this model. Consequently, not all of the behavior is understandable and explainable by
the person. Also not all of human action or behavior is clearly visible and explainable.
There comes a time, wherein behavior may not be realized and understood by the
person himself. Drawing inferences from observation and probing can be
understood in such causes.

Two contributions that made to the psychoanalytic approach:

Gestalt model: The model was based on Gestalt principles (defining

“patterns and grouping”) lays emphasis on the perceptual processes that
impact buying behavior. This model explains that the consumption behavior
and decision making is based on how a consumer perceives a stimuli (the
product and the service offering and the 4 Ps) that is to say the external
environment and his own prior experiences.

Cognitive theory: Leon Festinger being the proponent, views the consumer
as one who faces a feeling of anxiety (dissonance), while he is making a
purchase; this is because he is surrounded with many alternatives, all of
 which seem desirable. Post-purchase, this dissonance increases even
further. There is a variance in the cognitive structure; and the consumer
tries to get out of this state as soon as he can. The consumer gathers
information that supports his choice and avoids information that goes at odds
with.

Sociological model: Thorstien Veblen was the proponent of this model,which focuses
on the role played by social groups and social forces. An individual’s consumption
pattern and buying behavior is affected by social factors such as his family, friends,
peers, social groups, reference group and culture that have played a major role.

According to Veblen, man is appraised as a “social animal”, and thus man conforms to
norms of its culture, sub culture and groups amongst which he operates.

In a situation, a manager and an employee may have different buying behavioral

patterns given their respective roles in the company they work for, but if they live in the
same community or have the same religion, they may purchase products from the same
company or brand.

In developing marketing strategies for a company or for your business, knowing this
model will help you create a good and effective strategy as consumers will buy goods
based on a number of different types of behavior.

IMPLICATION ON ECONOMIC MODEL

1. Micro economic models – consumers’ tend to be price sensitive and look for a
value proposition that makes them buy the offering and provide benefit against
cost incurred.
2. Macro economic model – Buyer’s decision are affected by fluctuations in the
economy, that implies marketer to offer deals and promotion for customers’ value
proposition
3. Psychological model – Buyers learn from experiences of personal and
environment. Consumer seeks to buy products/services that are rewarding and
have positive reinforcement. A product demonstration is applicable as well as
free samples and trials, hence consumer may find it satisfying if he will do repeat
purchase.
4. Psychoanalytic model – Here consumers were affected by hedonic elements
upon searching for functional benefits in doing purchase. Marketers must
accordingly understand the consumer psyche and 4Ps design the implications
were expected on pricing and promotion. Implications may also fall under brand
management, associations and imagery. Regarding the post-purchase decision,
marketers need to aid minimize the consumers’ post-purchase dissonance.
5. Sociological Model – An individuals’ purchase behavior is deeply affected by
their culture, sub-culture and social group so as to opinion leadership and social
group appeals.
4.3 THE SPECIFIC MODELS - The specific models that will be explained are Bettman’s
Model (1979) and the Engel, Blackwell and Kollat’s Model (Engel-Blackwell-Miniard)
Model.

Information Processing Model of Consumer Choice Bettman (1979):

It was the 1970s when Bettman introduced a consumer behavior model based
on information processing. The model shows that the consumer is central to a host of
information processing activities. Consumer receives a huge amount of information in
his environment from the marketer, competitors and other external factors. It is also
explained that buyers have a substantial storage of information as a database that
shapes over time from consumers’ learning, experiences, social influences etc. The
processing becomes difficult and unmanageable when consumers are exposed to huge
amounts of data. As Bettman stated consumers’ hold a limited capacity for
processing information and concluded that a consumer has its own method or
strategies to process information and use simple decision rules for specific situations.

Such consumer information process is depicted through several flowcharts

which identifies various components of the model and the interrelationships between
them. The seven major components of the model are skill development,
motivation , attention, knowledge collection and assessment, decision process,
consumption and learning processes.

1. Processing capacity: Bettman stated that in this step consumer has its
limitation on the capacity in processing information; most of the consumers are not
interested in doing intricate computations and extensive information processing. Dealing
with this problem, consumers are expected to select choice strategies that make
product selection an easy process.

2. Motivation: Motivation is placed in the core of the Bettman Information

Processing Model, which determines both the direction and the level of consumer
choice for more information in deciding between the choices. Motivation is yielded with
a hierarchy of goals mechanism that produce a series of different sub-goals to
simplify the choice selection. This mechanism proposed that the consumer's personal
experience in a specific place of market and he does not need to undergo the same
hierarchy every time to arrive at a decision, and became an organizer mechanism for
consumer efforts in making a choice. However, no concern was provided on religious
motives, and how religion might affect the consumer in his decision. Most of the general
motivation theories such as Maslow’s hierarchy of needs (1970) stress self-
realization, the need for power, and the need for association.

3. Attention and Perceptual Encoding: According to Bettman, the component of

this step is somewhat related to the consumer’s goal hierarchy. Categorizing the two
types of attention; the first one is voluntary attention, refers to a conscious allocation
of processing capacity to current goals.

The second type is involuntary attention, indicating automatic response to disruptive

events (e.g., recently acquired complex information). The two different types of attention
influence how individuals act in reaching goals and create choices. The perceptual
encoding reckon for the different steps that the consumer needs to perceive the stimuli
and whether he still needs sufficient information.

Figure 4.1: The Bettman Information-Processing Model of Consumer Choice Source: Bettman, J.R., An
Information Processing Theory of Consumer Choice, Reading, Mass: Addison-Wesley, 979, 17. In Schifman,
L.G. and Kanuk, L.L., Consumer Behavior, 3 rd Edition, Prentice Hall

4. Information acquisition and evaluation: Once the consumer senses that there
is inadequacy in present information, consumers will start to search for more information
from external sources. Newly acquired information is evaluated and measured for its
suitability or usefulness. Nevertheless, consumers will continue to gather more
information until all relevant information has been secured, or until they find that
gathering additional information is deemed costly in terms of time and money.

5. Memory: The consumer retains all the information he collects in these

components, and it will be the first place to look for when he needs to make a choice. If
this information is not sufficient, surely consumers will start looking again for external
sources.

6. Decision Process: This step in the Bettmans' Information Processing Model

signifies different types of choices are usually associated with other factors, which may
take place during the decision process. Specifically, this section deals with the
application of heuristics or rules of thumb, which are applied when selecting and
evaluating of specific brands. These basic heuristics a customer uses are affected by
both individual factors ( e.g. variations in personality) and situational factors
( e.g., urgency of decision); therefore, it is impossible that the same consumer
decision would occur in different circumstances or other consumers in the same
situation.
7. Consumption and learning processes: At this point, the future results will be
discussed after the purchase is done in this model. After evaluating the alternative the
customer will gain experience in this phase. This experience provides the user with
knowledge that can be applied to possible circumstances of preference. In his model,
Bettman emphasizes the processing of information and the ability of the consumer
to interpret this information for decision making, although no clarification has been given
as to the requirements under which the customer embraces or declines to process that
particular information.

An Assessment of the Model:

Engel, Blackwell and Kollat’s Model: Engel-Blackwell-Miniard Model of Consumer

Behavior:

Often referred to as the EKB model, the Engel, Kollat and Blackwell Model were
proposed to organize and characterize the body of consumer behavior information /
study. A detailed model, it describes the different components of customer decision
making and the relationships / interactions between them. The model went through
several changes and improvements, including attempts to expand on the
interrelationship between the different components and subcomponents; and
eventually, another model was introduced in the 1990s that later became to be called
the Engel, Blackwell and Miniard Model (EBM).

The model composed of five parts, viz. information input, information processing,
decision process phase, decision process variables, and external factors.

1. Information input: The information involves all kinds of stimuli that a consumer
is exposed to and triggers a kind of behavior. Consumers are exposed to a large
number of stimuli both marketing (advertising, publicity, direct selling,
demonstrations and exhibitions, store display, point of purchase stimuli) and non-
marketing sources (family, friends, colleagues); hence different stimuli compete for the
attention of the consumer. These stimuli give information to the consumer and trigger off
the decision making process.

2. Information processing: information is generated by stimuli obtained at first

stage; the information is converted into meaningful information. The stage involves the
presentation, focus, perception / understanding, acceptance, and retention of
information by consumers. Consumers are exposed to stimuli (and the
corresponding information); attention decides the stimuli to concentrate on; then
interprets and recognizes it, embraces it in its short-term memory and preserves it by
moving the data to long-term memory.
3. Decision-process stage: The user may enter this stage at any point during the
processing of the information. The model focuses on the five basic phases of
decisionmaking, i.e. problem recognition, search, alternative assessment, choice, and
outcomes (post-purchase evaluation and behavior).

There is problem recognition; this is preceded by a search for information, which may
be internal based on memory. The search of information is also affected by
environmental forces. Thereafter, the consumer will assess the various alternatives;
while evaluation, belief lead to the formation of attitudes, which in turn influences the
purchase intention. The next stage is the selection and purchase, which is influenced
by individual differences. Finally there is a conclusion, in the form of satisfaction and
dissatisfaction. This results acts as a feedback on the input and impacts the cycle again.
Environmental factors, individual differences and social influences, directly and
indirectly affect each of the stages of the decision process.
However, EKB indicated that not every user has to go through all five stages; it would
depend on whether the problem is comprehensive or a regular problem-solving
behaviour.

4. Decision process variables: The model proposes individual influences that

affect the various stages of the decision making process. Individual characteristics
include constructs like demographics, motives, beliefs, attitude, personality,
values, lifestyle, normative compliance, etc.

5. External influences: The model also proposes certain environmental and

situational influences that affect the decision making process. The environmental
influences include “Circles of Social Influence,” like culture, subculture, social
class, reference groups, family and other normative influences; situational
influences include consumer’s financial condition.

Figure 4.2 : Engel-Kollat-Blackwell (Engel-Blackwell-Miniard) Model of consumer Behavior Source: Engel,

J.F.,
Blackwell,R.D., & Miniard, P.W., Consumer behavior, 5 th Edition, CBS College Publishing. In Schifman, L.G. &
Kanuk, L.L., Consumer Behavior, 3rd Edition, Prentice Hall

The Engel Kollat Blackwell Model of Consumer Behavior integrates several

elements, which influence consumer decision-making such as beliefs, values, lifestyle,
attitude, personality and culture. The model hasn't shown what factors shape these
products, and why different types of personality can make different decisions? How are
we going to use those principles to deal with various personalities? Religion will clarify
some behavioral characteristics of the consumer and this will lead to better
understanding of the model and will give a more comprehensive view on decision-
making.
CONSUMER BEHAVIOR UNIT V Personality and Lifestyle
5.1 Introduction, Measurement of Attitude
5.2 Attitude Formation and Change
5.3 Personality: Theories of Personality, Personality and Understanding
Consumer Diversity

Duration: 3 hours per week

INTRODUCTION

As individuals we learn attitudes through our experience and communication with other
people. Our attitudes to a particular firm and its product offering as consumers really
influence the success and failure of a firm’s marketing strategy. Does attitude change
and are greatly influenced by our consumer’s personality and lifestyle. This module will
help us determine the formation and changes of persons attitude as well as personality
and diversity.

INSTRUCTIONAL OBJECTIVES
After completion of this Unit V, the student shall:
● identify the Measurement of Attitude
● understand the Attitude Formation and Change
● evaluate Personality and Theories through personality and understand consumer
diversity
LESSON PROPER/METHODOLOGY ACTIVITY

"In a consumer society there are inevitably two kinds of slaves: the prisoners of
addiction and the prisoners of envy."

~ Ivan Illich (1926 - 2002), Austrian Philosopher

What does this quote tell you?

ANALYSIS

Attitudes cannot be seen by our naked eyes, it can only be surmised from how
individuals behave. Nevertheless, it is pivotal that attitudes are evaluated.

This is because every person with a positive attitude towards an offering

product/service offering is more likely to make a purchase. However, attitudes can be
measured by way observation, qualitative studies and quantitative techniques (or
rating scales).

5.1 Measurement of Attitude

a) Observation: As described above, attitudes can be inferred from the way the
person conducts himself. By making behavioral observations a marketer can infer the
attitudes of a customer. For instance, if an individual patronizes and buys Colgate
toothpaste, it can be inferred that he likes that image.

Observation as a method of evaluating attitudes does have benefits and drawbacks.

Market researchers can make quick inferences and advantages are that on the
basis of past experiences. Disadvantages are that the process is intensive in terms of
time and money; further findings may not always be accurate and valid. The approach is
thus used to supplement other research instruments and techniques, and is generally
not used as the sole method of research.

b) Qualitative studies: Attitudes can also be measured by means of qualitative

tools and techniques which help to identify customer views and beliefs as well as their
feelings by involving them in open discussions. Such approaches may include focus
group forms, in-depth interviews and psychological testing.

Focus groups: In focus group interviews, 6-12 groups of consumers in number are
gathered together, and conversation is initiated about a product or service offering.
The discourse could range across a broad spectrum relevant to the offering, the brand
or the image, the dealer or any of the 4Ps. People are allowed to share their thoughts,
views and emotions freely and a moderator is in charge of the conversation.

When they begin to address a topic, they shift towards relevant product and service
offering problems, and this provides a researcher with useful insights. However, the
disadvantages with focus group interviews is that the sample may not always be an
absolute representative of the market segment to which the product is aiming. So
as to lead to being the absolute representative and providing valid findings, focus group
interviews might not be used in isolation, but are used with other tools and techniques .

Depth interviews: A depth interview is similar to a personal interview, where a

consumer is asked about the product/service, the brand, and the 4Ps. The consumer is
asked questions for a specific period of time, and his views and beliefs are recorded,
so to his feelings and gestures. The researcher feeds a question and the interviewee is
motivated to talk in length about his feedback and thoughts about the product and
service offering and the 4Ps. The lengthy talk motivation offers useful feedback and
shows details the interviewer could not have figured of or imagined. Questions like
"What," "When," "How" and "If" are used to allow for an informative discussion in
depth. The problem with interviews in depth is that it's time-consuming and costly. It
also requires educated psychologists as interviewers.

Psychological tests: There are a number of psychological assessments which are

used to infer and assess consumer attitudes. Projective approaches are widely used;
for example, the user may be asked to interpret a picture (Thematic Apperception
Test), or fill in a cartoon dialog, or write ten-twelve words that describe a figure or
image.

They may also be asked to complete an insufficient paragraph (as story writing), or
write the first word that comes to mind when describing or showing a product / service
or brand. Open ended questions such as the completion of sentences help to expose
customer perspectives and deeper feelings and perceptions about product deals,
brands and 4ps. The difficulty with psychological tests is that interpretation may turn out
to be subjective and it requires trained psychologists as interpreters.
c) Quantitative techniques, Rating scales or Attitude scales: Methods widely used
to assess attitudes are through the attitude scales. Consumer survey questionnaires
are used to quantitatively assess behaviors, based on rating scales. The most widely
used attitude scale is the Likert scale, which tests customer responses on a five-point
or seven-point scale based on degrees of agreement and disagreement, or preferences
and dislikes.

Another widely used measure is one which uses a bipolar scale consisting of opposite
adjectives for each extreme; this is classified as a Semantic Differential Scale.
Although it may be time consuming to obtain feedback, rating scales offer a medium for
quantitative research and therefore contribute to accurate and relevant results.
Nevertheless, caution should be taken when selecting a sample representative.

5.2 ATTITUDE FORMATION AND CHANGE:

Attitude formation is of key importance to a marketer. This is because he needs to

develop positive attitudes for his product and service offering, as also his brand.
Attitudes comprise three components: knowledge, feeling and behavior; while we can
just observe behavior, the knowledge and feeling component remain hidden. Thus, we
can infer that an attitude, (whether positive or negative) is formed based on the
observation of one’s behavior.

That is why learning is defined as a change in behavior that occurs as a result of

experience. Once attitudes are formed (as a result of learning), it is very difficult to
change them.

a) Attitude Formation:
Attitudes are formed as a result through the learning process. The formation of attitudes
can be described via behavioral theories ( maybe classical conditioning or operant
conditioning), cognitive learning and social learning.

i) Classical Conditioning: The concept of stimulus generalization, stimulus

discrimination and repetition provide formation of attitudes.

People tend to buy products that are associated or connected with familiar brand
names. Line extensions and brand extensions contribute to the creation of favorable
attitude formation. The favorable attitude is the output of repeated satisfaction with
successful brands owned by a firm or a company; consumers associate the
brand/image and favorable attitude associated with the mother brand to the new entrant
brands from the same outlet.Another factor is that by using endorsers, famous
celebrities as brand endorsers, businesses are seeking to create a positive connection
between the celebrity and the new "neutral."

Consumers still feel good towards popular brands. The effective brand name is the
unconditional stimulus which results in a positive perception through repetition and
positive feedback (the unconditioned response).

ii) Instrumental Conditioning: In general, a consumer passes through cognition,

attitude and behavior in making purchases. Conversely, in certain kinds of purchases,
the sequence lies as cognition, behavior and attitude like low-involvement purchases,
impulse goods, trials or situational factors . Thus, following the act of purchasing
and consumption of the commodity, attitudes develop.

Consumers prefer to shape attitudes in such situations, depending on the

encouragement they get. They build a positive attitude towards the product or service
offering and/or the brand if the acts of purchasing and use are accompanied by a
satisfying experience in terms of customer satisfaction.Otherwise they are indifferent
to the brand, or may even develop a negative attitude.

iii) Cognitive Learning Theory: Attitudes are often formed on the basis of data that
a person gathers through his environment about a service or product and/or a brand.
Such information may be unique to the product or service that is stored in his memory,
or may be incidental. The consumer forms positive or negative attitudes based on the
selection, storage and retention of information and on knowledge and beliefs.
Marketers, either in print, audio-visual media or also by their salespeople and
distributors, should be cautious in presenting information about their product and
service offers. And instead of just presenting unnecessary detail, they should
concentrate on a few relevant features; too much cluttering leads to perceptual
blocking.

While attitudes are formed as a result of learning, they are influenced by various
sources. Such sources include self-experiences, as well as direct and indirect
influences; direct influences are influences from family and friends, salespersons
(direct marketers) as well as dealers; indirect influences include influences via mass
media, either print or audio-visual.

Self-experiences have a major role to play in the formation of attitudes. Consumers

form favorable and unfavorable attitudes towards product and service offerings
based on self-experience. They try out product and service offerings and also evaluate
them. Thus, marketers attempt to elicit trial by offering sales discounts or even free
samples.

Direct influences through interactions with members of family as also with friends and
relatives, and primary reference groups impact the formation of attitudes. Salespersons
as well as dealers also have a role to play in the formation of attitudes. These marketing
representatives provide information to the consumers and attempt to favorably influence
the potential customer’s towards their product and service offerings and/or brands.

Indirect influences via mass media, either print or audio-visual provide information to
the consumers and this helps in formation of attitudes. Consumers are kept informed by
the marketer on various product and service offerings, features attributes, prices as well
as their availability.

Impact of sources in attitude formation:

Marketers publish brochures and pamphlets. They distribute pieces of information via
mass media, through newspapers, magazines and trade journals, as well as
through advertisements on TV. Such information about the product and service offering
and the 4Ps influences consumers’ attitudes, whether favorable or unfavorable.
Companies also have their websites where consumers often blog about their
experiences. They publish consumer experiences and expert opinions, which affect
attitude formation.

Here it would be worth noting that both the split brain theory, route to persuasion and
elaboration likelihood model could have implications; In cases of high involvement, the
consumer would look for factual appeals, while in case of low involvement, he would be
receptive to social and/or emotional appeals.

b) Attitude Change:

Once formed, attitudes are constant and lasting. However, that does not mean that they
cannot be changed. Attitudes can be changed or modified in the same manner as they
are formed, for example through learning. They can be changed or modified by creating
a change or alteration in any one or all of the factors that make up the attitude, like
knowledge, feeling and behavior. Changing any or both of the tri-components takes
considerable effort on the part of the marketer, who needs to provide awareness
through the media as well as use reference group appeals and opinion leaders to
influence attitudes change.

Attitude change via cognition: Attitudes can be changed by providing information

about the brand, and changing consumer beliefs about the attributes of a brand. It can
also be brought about by changing the importance that consumers’ attach to the
attributes of a product.

Attitude change via affect: Attitude can also shift perceptions by creating optimistic
feelings and emotions toward a brand. The store's ambience, incentive programs,
welldesigned commercials with celebrities etc. often create optimistic mood states that
affect attitudes.

Attitude change via behavior: Consumer attitude can also be changed by eliciting a
trail on the part of the consumer and encouraging him to use the product.

However, as newer information about product attributes, benefits, features etc. is

provided so as to bring about change in consumer beliefs and attitudes, consumers
tend to experience some level of attitudinal inconsistency. Such feelings of
inconsistency lead to uneasiness and tension in the minds of consumers and as a
natural consequence, they attempt to seek consistency in thoughts, feelings, and
actions. In fact, they desire a match between the three components, and more so,
want their attitudes to be in consistency with their knowledge.

Researchers have proposed two theories that address the issue of consistency
among behavioral processes, viz., the cognitive dissonance theory and the attribution
theory. As per the cognitive dissonance theory, a consumer would face a feeling of
discomfort and dissonance, when the tri components fail to match with one another, and
the person’s knowledge, feelings and behavior conflict with one another. In such a
situation, the person would face cognitive dissonance and in order to reduce this
dissonance, he would attempt to change the inconsistent cognitive elements.

According to the attribution theory, it is a tendency on the part of human beings to

attribute the reasons of their behavior on to themselves (internal attribution) or to
others (external attribution). Consumers also make attributions that match their
existing beliefs, evaluations, and actions. They could also attribute the reasons for
their belief to others. Both the theories, i.e. the cognitive dissonance theory and the
attribution theory result in subsequent attitude changes.

Different methods will change / modify attitudes. By bringing about a change in the
views
, values or product assessment of consumers, the marketer may take steps that
can affect consumer attitudes. Some of the strategies a marketer may take for
changing attitudes or influencing attitudes (with specific examples) are listed below:

1. A change in the product itself (package): The marketer may bring about a change
in the product itself, adding on to benefits that are provided by the product or service
offering. The marketer might also add on to newer attributes and functionality. In this
way, marketer could either claim to make whatever he was providing earlier in a nice
manner, or provide something that the competitor cannot provide.

In such a manner, the marketer put on the value proposition. It becomes a favorable
attitude as the perceived value of the product/brand increases.

For instance: A lady has a neutral attitude, and is indifferent to the numerous shampoo
brands available. She claims the same is true for brands like Pantene, Sunsilk, Dove
and Garnier. For example, Sunsilk now comes up with a promotional scheme whereby
the shampoo gives a conditioner free, or it introduces a scheme where you can buy one,
and get another for free. In such a case, the lady may form a positive attitude towards
buying Sunsilk, as she would feel that she is consuming more value for money. The
same thing, if Dove claims to prevent hair fall, and strengthen hair growth, the lady may
create a favorable attitude to Dove.

Although it could be costly to change the product itself, requiring improvements in

technology and production methods, as well as adjustments in marketing strategies, the
marketer may instead adjust only the packaging. Packaging may also offer advantages
such as ease of use, ease of carriage and handling, and storage.

For example: Spring refined vegetable oil began to be preferred by single households
over other competitors; this is because it was introduced in small packs as 200 ml Tetra
Pack.

2. Identifying evaluative criteria for the consumer: Consumers sum up their

views , values and general attitudes based on the different strengths and benefits of
the product. Sometimes they neglect an attribute because they are unaware of an
attribute or a gain or a criterion. The marketer may help to define evaluative
requirements for the customer. The marketer will concentrate on those parameters
where he thinks he's on a good track.

For example: Watsons product promotes its brand Expert Powder Hair dye, by
mentioning five attributes. The most important of which is "zero percent ammonia". If
they stress this, they provide the user with evaluative standards to equate with other
ammonia and other chemicals colors and shades. Consumers tend to believe that
Watsons product is a safer brand because it does not contain the ammonia that is
harmful.

3. Modifying or changing the criteria for evaluation: Also, the marketer may
define requirements that would alter or adjust the current assessment criteria. This
means that he focuses his attention on encouraging customers to use certain attributes
for assessment, which he had not done before.

As discussed above, consumers are summarizing their opinions and general

attitudes based on the various attributes and benefits of the product. They provide
varying degrees of importance to the different characteristics and requirements, and the
overall attitude towards the product and service offering will change by altering or
improving the assessment criteria.

In general, the marketer finds himself able to do this because he has updated his
product and added characteristics and functionality to the product. He advocates certain
qualities for which he has the “uniqueness” or the ones on which he best performs. He
would avoid talking about those qualities that he doesn't possess or perform well on.

For example: A dishwash bar is supposed to sparkle clean the utensils and leave
behind a good smell. These had been the evaluative criteria, for choosing a brand
against another. However, Jyothy laboratories Ltd. emphasized on the bacteria that
remains on the utensils even after they have been washed and left sparkling clean.
They promoted their brand Exo Detergent Bar and Liquid as the only antibacterial dish
wash liquid with Cyclozan as the active ingredient. In this manner they modified and
changed the criteria for evaluation.

4. Associating the product/ brand with an existing favorable attitude: The

brand can also be associated with socio-economic , cultural, and environmental
factors. A product / service association with the favorable cause will lead to favorable
attitudes towards the company. Marketers aim to build favorable attitudes towards their
products by associating them with current favorable attitudes towards a cause through
causerelated marketing. In this way, not only do they contribute to the social cause but
also influence consumer attitudes’ towards their products, and or brands. Thus,
the marketer tries to alter consumer attitudes toward products and service offerings,
and/or brands by associating them with socio-economic, cultural political and
environmental causes as also social groups and events.

For example: Procter & Gamble, in association with CRY and Sony has launched the
Project “Shiksha”, to help educate the underprivileged children. As and when a
consumer buys a P&G product, he/she supports one day’s education of one child. A
favorable attitude towards the cause, leads to a favorable attitude towards the brand,
P&G. In this manner, P&G tries to create a favorable attitude towards its products and
elicits action on the part of consumers to buy their brands.

5. Changing the basic motivational function:function, the ego-defensive

function, the value-expressive function, and the function of information.

Consumers develop attitudes about a product / brand based on all or only a few of those
functions. A marketer may shift customer perceptions by concentrating on a feature that
was not previously associated with the product and/or brand. In other words, it means
that the marketer gives prominence to new needs and shows customers that it can
serve a purpose that was not considered earlier.

For example: Phenyle, the traditional brand from Bengal Chemicals, has been
perceived as a cleaning agent that has been used to clean floors. Reckitt Benckiser
(India) Ltd. Introduced their brand Lysol, which was positioned not only as a cleaner that
keeps homes clean but also as a disinfectant that left behind a good smell, and
protected the family from illness caused by germs. So by making a new need prominent
and changing the basic motivational function of floor cleaners, Reckitt Benckiser was
able to create a favorable attitude towards their brand.

6. Changing consumer opinion and beliefs about competitor brands: Also, by

negating the appeal of competing brands, the marketer might develop a favorable
attitude towards his brand. He was able to change the prevalent customer attitudes and
perceptions about competitive products.

For example: GlaxoSmithKline(GSK) Consumer Healthcare India Ltd. claims that their
energy drink, Horlicks promotes growth and provides energy faster and better than
Complan. Heinz India Pvt. Ltd claims the same for their brand, Complan. Thus, both try
changing consumer opinions about their brands by comparing them with competitor
brands.

_______________________________________________________

5.3 Personality: Introduction, Theories of personality, Personality and

Understanding Consumer Diversity

In terms of personality traits, marketers have long tried to relate towards consumers.
They also intuitively thought that customer purchasing is likely to be affected by
personality traits, and where and how they purchase. For this reason , people in
marketing and advertising have often portrayed particular personality
characteristics or attributes in their messages of making and advertising.

INSTRUCTIONAL OBJECTIVES
After completion of this lesson 5.3, the student shall:
• remember the definition and nature of personalities

• understand the types, Theories and Personality of consumer diversity,

consumer innovativeness and related personality traits; cognitive factors from
consumer materialism to compulsive consumption and consumer
ethnocentrism
• analyze brand personality types

PERSONALITY

Personality can be defined as those internal characteristics which determine and

represent how an individual responds to their environment. These characteristics are
the features, qualities, traits, factors and mannerisms that distinguish one individual
from another. Look at the picture below and analyze the difference between type A and
type B personality.
According to Carl Gustav Jung, 1934 “Personality is the supreme realization of the
innate idiosyncrasy of a living being. It is an act of high courage flung in the face of life,
the absolute affirmation of all that constitutes the individual, the most successful
adaptation to the universal condition of existence coupled with the greatest possible
freedom for selfdetermination.”

NATURE

Does your personality affect your food choices?

1. Personality reflects individual differences.

2. Personality is consistent and enduring.
3. Personality can change.

THEORIES A) FREUDIAN THEORY & PRODUCT PERSONALITY

Sigmund Freud’s psychoanalytic theory of personality. It comprises Id, Ego, and
Superego.

B) NEO-FREUDIAN PERSONALITY THEORY

This theory is also called socio-analytic theory. The researchers in this theory
believed that social relationships are essential to personality formation and
development. From the proposal of “KAREN HORNEY” the 3 types of personality
groups:

a) Compliant individuals- moving towards others (wanting to be loved,

desired & appreciated)
b) Aggressive individuals- who move against others (desire to excel & win
admiration)
c) Detached individuals- who move away from others (desire independence
, selfsufficiency, and individualism or freedom)

C) TRAIT THEORY
• Personality theory concentrates on psychological characteristics.
• Trait- any distinctive, relatively enduring way in which one individual varies from
another.
• Personality is to related to how consumers make their choices or to
consumption of a broad product category but not a specific brand
PERSONALITY & UNDERSTANDING CONSUMER DIVERSITY CONSUMER
INNOVATIVENESS RELATED PERSONALITY TRAITS

● Innovativeness - The degree to which consumers are receptive to new products,

new services or new practices.
● Optimum Stimulation Level - A personality trait that measures the level or
amount of novelty or difficulty that people look for in their personal experiences.
o High Optimum Stimulation Level consumers tend to accept risky and
novelty products more readily than low OSL consumers.
● Dogmatism - A personality trait that indicates the degree of rigidity displayed
by a person toward the unknown and toward information contrary to his or her
own developed beliefs. Dogmatic (open-minded) customers are more likely to
choose emerging products to existing or conventional alternatives.
● Sensation Seeking - A personality trait characterized by the need to take
physical and social risks for the sake of such experience with varied, novel and
complex stimuli, experiences and willingness. ● Social character
o Inner –directed
▪ Consumers who choose to base on their own inner values.
▪ More open to be innovators
▪ Tendency to accept ads that emphasize product features and
benefits
▪ Consumers who appear to look to others for guidance and direction.
▪ Will be less likely to innovate
▪ Tend to prefer advertisements that feature social acceptance.
● Variety-novelty seeking - A personality trait related to Optimum Stimulation
Level which measures a consumer's degree to variety seeking. Many different
types of market variation tend to pursue exploratory purchasing behavior
(switching brands to new, different, and perhaps better alternatives); use
innovation (using a product that has already been adopted).
● Need for uniqueness - Consumers who avoid appearing to conform (being
conventional) to expectations or standards of others.

COGNITIVE PERSONALITY FACTORS ● Need for recognition

A person's apprehension about the enjoyment of thinking about using a
product.
● Visualizers against verbalizers
A person's preference for visual (i.e. TV, Internet) or verbal (i.e. radio)
information conveyed.

FROM CONSUMER MATERIALISM TO COMPULSIVE CONSUMPTION

● Consumer materialism is considered to be a person's extent to being
"materialistic"
● Consumers' fixed consumption behavior is based on certain goods or product
types.
● Compulsive consumption behavior “addicted” or “out-of-control” consumers.
CONSUMER ETHNOCENTRISM
Ethnocentrism consumers believed it is wrong to purchase foreign-made goods.
They can be targeted by giving emphasis on nationalistic themes.

BRAND PERSONALITY
Brand personality is like "making the brand alive" The attribution of human
personality traits (seriousness, comfort, imagination, etc.) to a brand as a means to
achieve differentiation. This is usually achieved through long-term advertising and
suitable packaging and graphics.

Product personality and Gender - Assigning gender as part of personality

definition is entirely consistent with the marketplace reality that products and
services are viewed by consumers as having a “gender-being.” Armed with
such awareness of the perceived gender of a product or a particular brand,
marketers are in a stronger position to select visual and copy-text for different
marketing messages. For example Hero Honda Pleasure- "why should boys
have all the fun" the Gillette Venus- Feminine products, the Cleaning, Home
care products; Masculine products: gadgets, bikes, cars, etc.

Product personality and geography - Products hold a powerful geographical

connection in the minds of customers. Geographical equity can be created by the
use of geographical associations.

Example local products made in Bulacan.

Personality and color - Color combinations in packaging and products denotes

personality.
● Red - Exciting, passionate, strong, Makes food smell better, Coffee in a
red cup or glass can be perceived as "rich" or sophisticated, Women have
a preference for bluish red, Men have for yellowish red, Coca cola its own
red.
● Green- Secure, natural, relaxed, easy-going, living things, Good work
environment, Associated with vegetables & chewing gum
● Black- Sophistication, power, authority , mystery Powerful clothing and
High-tech electronics
● White- Goodness, purity, cleanliness, delicacy, refinement, formality,
suggests reduced calories, Pure & wholesome food and Clean, bath
products.
CI) CONSUMER BEHAVIOR UNIT VI Groups, Social Class and Consumer
Reference Group
Lessons:

6.1 Group Dynamics and Consumer Relevant Groups

6.2 Characteristics of Social Class and Factors Affecting Social Class
6.3 Role of Reference Groups and other Societal Groupings in
Influencing Consumer Behavior

6.4 Family Life Cycle, Social Influences and Decision-Making

Duration: 3 hours per week

CII) INSTRUCTIONAL OBJECTIVES

After completion of this Unit VI, the student shall:
● understand fundamental concepts of social involvement and group dynamics
● define a class and its impact on consumer selections
● emphasize the role of reference groups in influencing consumer behavior
● identify other social and societal groupings that affect consumer buying
processes
● discuss the family life cycle, social influences, and decision making and its
implication on consumer behavior
LESSON PROPER/METHODOLOGY

CIII) ANALYSIS

6.1 What is Group Dynamics?

Let us first clarify what exactly group dynamics are?
Group dynamics are related to determining the interactions and forces between
group members in a social situation.
What then is a group?
A group will comprise of:
1. Two or additional people who are interdependent with each other, with group
members and
2. The group shares a set of beliefs, values, and norms, which regulate their mutual
conduct.

Group emphasizes individual leadership, personal accountability, and exclusive work

products as having a common interest, objectives, and continuing interaction.
Within this definition's broad scope are both an intimate "group" of two neighbors who
informally attend a fashion show and a larger, more formal group, such as a
neighborhood. We can also say that the identifiable features of a group are:

1. Two or more persons: At least two people have to be present to form a group.
2. Collective identity: Each group member must believe that he is a group
member and be aware of his group activity participation.
3. Interaction: The group members will interact with each other, share their ideas,
and communicate.
4. Shared goal interest: Members of the group will also concur with the attainment
of objectives. Each member of the group must at least share one of the group
concerns.

Let us now see how groups form and develop.

Reasons for the Formation of a Group
1. Social interactions
2. The cluster acts as a vehicle of socialization
3. Group is a way of need satisfaction
4. A change from the usual work environment
5. Helps in group deciding and obtaining the duty done

Advantages of Groups
What do we gain if we form groups?
1. Groups will find and access way more information than an individual alone.
2. A more significant number of approaches to the problem being able to view
issues from different perspectives can help groups perform better on a complex
task.
3. Participation increases acceptance.
4. A better comprehension of the problems and the solution.
 5. The group acts as a motivator.

Disadvantages of Groups
1. Solution-mindedness
2. Compromised results
3. Untimely decisions
4. Conflicts
5. Diffusion of responsibility
6. Freeriding or social loafing
7. High coordination cost in time and money
8. Dominance
9. Pressures to conformity

Types of Groups
1. Primary versus Secondary Groups
Suppose a person regularly interacts with other individuals (with family members,
neighbors, or co-workers whose opinions are valued). In that case, these individuals
belong as a primary group for that person.

On the opposite hand, if an individual interacts solely sometimes with such others, or
doesn't contemplate their opinions to be necessary, they represent a secondary group
for that person. Clearly stated from this definition, show that the critical distinctions
between primary and secondary groups are the frequency in which individuals interact
with them and, therefore, the importance of the groups to the individual.

2. Formal versus Informal Groups

Formal groups like project task forces, boards of administrators, and temporary
committees come together to perform specific tasks. On the opposite hand, Informal
groups evolve within the work setting to gratify a spread of members' needs not met by
formal groups.

3. Large versus Small Groups

It is commonly fascinating to distinguish between groups in terms of their size or
complexity.

A large group, perhaps thought of as one in with a single member, is unlikely to learn
more than a few of the group's members personally or be reminded of the specific tasks
or activities of more than a limited number of other group members.
Samples of large groups embrace such complex organizations as Philippine Bar
Association. In distinction, members of a small group are likely to know every member
personally and know every member's specific role or group activities.

Know every member's specific role or group activities. For example, group health
insurance is expected to know all the other members and be aware of their duties and
interests. In the realm of consumer behavior, I've observed that in some groups, a
singlemember knows only a few of a group's members personally or is fully aware of
the roles.

4. Membership versus Symbolic Groups

Another way to categorize or classify groups is by membership versus symbolic
groups. A membership cluster could be a group to which someone either belongs or
would qualify for membership.

Let's say, for example, the association of doctors or a tennis club, etc. In contrast, a
symbolic group is a group in which an individual is not likely to receive membership
even if they act like a member by adopting that group's values, behavior, and attitude.

Studying these groups is very relevant to the marketer as they exert the most significant
potential influence on an individual's consumption decisions.

CONSUMER-RELEVANT GROUPS The Family

It is a view that from childhood, an individual's needs and consumption decisions are
influenced by his/her family. The family's importance in various decisions, usually based
on the frequency of contact that an individual has with other family members.

Friendship Groups
The immediate group which an individual forms after he/ she moves out from the house
is a friendship group. Friendships also are proof of maturity and independence, for
they represent a breaking removed from the family and, therefore, the forming of social
ties with the surface world.

Formal Social Groups

In contradiction to friendship groups' relative intimacy, this traditional social group is
remote and serves different individual functions. Someone joins a proper grouping to
satisfy such specific goals: make new friends, meet "important" people (e.g., for career
advancement), or promote a particular cause. As a result of members of a formal
grouping usually consuming specific merchandise alone, such groups are of interest
to marketers. For instance, the membership list of a men's club would be of interest
to local men, Insurance agents, automobile agents, and tax accountants.
Membership is a formal social group that may influence a consumer's behavior in
several ways. As an instance, members of such groups have frequent opportunities
to discuss merchandise, services, or stores informally. Some members could copy the
consumption behavior of alternative members whom they admire.

Shopping Groups
Two or more people who shop together for food, clothing, or to pass the time may be
known as searching groups. Such groups are typically offshoots of family or friendship
groups. Individuals prefer to shop with others they feel had additional expertise with
or knowledge about a desired product or service. Shopping with others additionally
provides a part of social fun to an often dull, however necessary task.

Also, it reduces the risk that a purchase decision is progressing to be socially

unacceptable. Almost a few marketing or consumer behavior studies have examined
the nature of shopping groups. However, one view of shoppers' in-store behavior
revealed some variations between the group and individual shopping. The research
found that shopping parties of a minimum of three persons deviated more from their
original purchase plans (they bought either additional or less than initially planned)
than did either single shoppers.

The study additionally found that shopping groups cared-for cover another store
territory than people shopping alone. Thus, they had more chances to check and
examine the product and build unplanned purchases. A special kind of searching
group, particularly in-home shopping, typically consists of women attending a friend's
home to accompany a "party" given to a specific product line's marketing.

The in-home party approach allows marketers to run and exhibit their products'
features concurrently to many potential customers. The undecided guests typically
overcome a reluctance to shop for once they see their friends build positive purchase
choices. What is more, some of the guests may feel obliged to buy because they are
guests in the sponsoring hostess's home.

Consumer Action Groups

This kind of consumer group has become progressively visible since the 1960s and has
been ready to influence each manufacturer and retailer's product design and
promoting practices. Consumer action groups can be a cluster divided into two broad
categories: people who organize to correct a specific consumer abuse, then disband,
and organize to deal with more comprehensive, more pervasive, downside areas and
conduct over an extended or indefinite duration of your time.

A bunch of tenants who unify to dramatize their dissatisfaction with the quality of service
provided by their landlord, or a bunch of angry community members who unite to block
the doorway of a fast-food outlet into their middle-class neighborhood, are samples of
temporary, cause-specific consumer action groups.

Work Groups
The sheer ample time that individuals consume at their jobs, of more than 35 hours per
week, provides ample chance for workgroups to serve as a significant influence on
members' consumption behavior. Both the formal workgroup and informal
friendship/workgroup have the potential for influencing consumer behavior.

The standard workgroup consists of those people who work along as a team. Their
direct and sustained work relationship offers substantial opportunities for one or
more members to influence other team members' consumer-related attitudes and
activities. Members of informal work groups might influence other members'
consumption behavior throughout coffee or lunch breaks or after-hours meetings
and conferences.

Social Class
Social class is more of a sequence, i.e., a range of social positions, on which every
member of society is set aside and placed. But, social researchers have divided this
time into a small number of specific classes. Thus, we tend to blow over this
framework; people employ to assign individuals for families to a social-class category.

Social class may be outlined as 'The division of members of a society into a hierarchy of
distinct status classes so that members of every class have comparatively a similar
status and also the members of all different classes have either a lot of or less status.

6.2 Characteristics of Social Classes:

1. Persons inside a given socio-economic class tend to behave a lot of alike.
2. Socio-economic class is hierarchical.
3. Socio-economic class isn't possible measured by one variable; however it is
calculated as a weighted function of one's occupation, income, wealth, education,
status, prestige, etc. individuals for families in a social-class category.
4. Social class is continuous rather than concrete, with individuals moving into a higher
social level or dropping into a lower grade.

Factors responsible for Social Stratification

Status,
S. No Value & Soc Factors affecting Social class
Prestig e ial
enjoyed Cla
ss
 Lower level occupation with no authority,
1 Low Low less income, and no education or
er minimum education.
Cla Example: Labor class or clerks, etc.
ss
Graduates, or postgraduates, executives
‘managers of companies with authority,
2 Mediu Midd drawing a handsome salary of which a
m le certain amount can be saved and
Cla invested. Example: Executives or middle-
ss level managers
Authoritative person, drawing a handsome
salary, very often professionally qualified,
High
3 High working in a very senior position, or a
er
person born into a rich family, with a good
Cla
background of education.
ss
Table 2.1 Factors showing social class differences

Impact of social class

● Provides a sense of identity
● Imposes a set of normative behaviors ● Classes share values, possessions,
customs, and activities
● Marketing acknowledgment to customers of different economic means
● Marketing to the low-income consumer
● Some marketers ambivalent as not perceived as long-term customers constitutes
a substantial group
● Target with value-oriented strategies

CIV) PAUSE FOR A THOUGHT: ABSTRACTION

Select an organization or group of people that are familiar to you – for example your
college, workplace, religious institution, or civic associations. Describe any personal
experiences you have had with them. Who are the members, and why did they band
together?
_____________________________________________________________________
_
_____________________________________________________________________
_
_____________________________________________________________________
_
__________________________________________________________

6.3 REFERENCE GROUPS

Reference groups are groups that can dramatically influence the way an individual
thinks and behaves. Any group that individuals use as a standard for evaluating
themselves and their behavior is a reference group. Reference groups have two
essential purposes.
They serve a normative function by setting and enforcing standards of conduct and
belief. The high school students who want the hip-hop crowd's approval will help to
follow a group's dictates, at least to some extent.

Reference groups also perform a comparison function by serving as a standard

against which people can measure themselves. An actor will evaluate himself against a
reference group composed of others in the acting profession.

Reference groups may facilitate the process of anticipatory socialization. For

example, a college student majoring in finance may read the Wall Street Journal, study
the annual reports of corporations, and listen to midday stock market news on the radio.
Such a student is using financial experts as a reference group to which he or she
aspires.

Often, two or more reference groups influence us at the same time. Our family
members, neighbors, and co-workers all shape different aspects of our self-evaluation.

Broadening the Reference Group Concept

Like many other concepts borrowed from the behavioral sciences, the reference group's
meaning has changed over the years. As initially employed, reference groups were
narrowly defined to include only those groups with which a person interacted directly
(e.g., family and close friends). However, the concept has gradually broadened to
include both direct and indirect individual and group influences. Indirect reference
groups consist of those individuals or groups with whom a person does not have direct
face-to-face contacts, such as movie stars, sports heroes, political leaders, or TV
personalities.

Referents that a person might use in evaluating their general or specific attitudes or
behavior vary from an individual to several family members to a broader kinship, from a
voluntary association to a social class, a profession, an ethnic group, a community,
or even a nation.

TYPES OF REFERENCE GROUPS

Reference groups refer to a degree of involvement with the group and the positive or
negative influences on their values, attitudes, and behavior.

1. A contractual group is a group in which a person holds membership or has

regular face-to-face contact and whose values, attitudes, and standards they
approve. Thus a contractual group has a positive influence on an individual's
attitudes or behavior.
 2. An aspirational group is when a person does not hold membership and does
not have face-to-face contact; however, he wants to be a member. Thus it serves
as a decisive influence on that person's attitudes or behavior.
3. A disclaiming group is a group in which a person holds membership or has
faceto-face contact but disapproves of its values, attitudes, and behavior. Thus,
the person tends to adopt attitudes and behavior in opposition to the group's
norms.
4. An avoidance group is when a person does not hold membership and does not
have face-to-face contact and criticism of its values, attitudes, and behavior.
Thus 'the person tends to adopt attitudes and behavior that are in opposition to
those of the group.

Factors that Affect Reference Group Influence

The degree of influence in which a reference group applies to an individual's behavior
usually depends on its nature and the product and specific social factors.

Information and Experience

1. An individual who has firsthand experience with a product or service or can
quickly obtain a full message about it is less likely to be impacted by others'
advice. On the opposite hand, a person who has little or no firsthand
experience with merchandise information about it (e.g., a person who considers
that relevant advertising may be misleading or deceptive) is more likely to seek
others' advice or example.

Research on imitative behavior caters to some exciting insights on how awful

experience or information concerning a product makes consumers more susceptible
to the impact, either positive or negative, of others. For example, suppose a medical
school student wants to impress his new girlfriend. In an instant, he may take her to a
restaurant that he knows from experience to be good or to one that has been highly
recommended by the local newspaper's Dining-Out Guide. Suppose he has neither
personal experience nor information he regards as valid. In that case, he may seek
friends' advice or imitate others' behavior by taking her to a restaurant he knows is
frequented by physicians he admires.

Credibility, Attractiveness, and Power of the Reference Group

A reference group perceiving as credible, attractive, or powerful can induce consumer
attitude and behavior change. For example, when consumers are concerned with
obtaining accurate information about a product or service's performance or quality, they
are likely to be persuaded by those they consider trustworthy and knowledgeable.
That is, they are more likely to be influenced by sources with high credibility. When
consumers are primarily concerned with the acceptance or approval of others they like,
with whom they identify, or who offer them status or other benefits, they are likely to
adopt their product, brand, or other behavioral characteristics.

When consumers are primarily concerned with the power that a person or group can
exert over them, they might choose products or services that conform to that person's
norms or group to avoid ridicule or punishment. However, unlike other reference
groups that consumers follow either because they are credible or attractive, power
groups are not likely to cause attitude change. Individuals may conform to the behavior
of an influential person or group but are not expecting to experience a difference in
their attitudes. Different reference groups may influence an individual's beliefs,
attitudes, and behavior at other times or under alternative circumstances.

For example, a young female attorney's dress habits may vary, depending on her place
and role. She may conform to the dress code by wearing conservative business suits by
day and drastically alter her dress mode after work by wearing more conspicuous,
striking styles.

The conspicuousness of the product

A reference group's potential influence varies according to how visually or verbally
conspicuous a product is to others. A visually prominent work can be seen and
identified by others, which will stand out and be noticed (e.g., a luxury item or novelty
product).

Even if a product is not visually conspicuous, it may be verbally conspicuous, it

may be highly exciting or easily described to others. Mostly noticeable merchandise
and status-revealing (a new automobile, fashion clothing, home furniture) are most
likely to be purchased with an eye to relevant others' reactions. Less conspicuous
products

(canned fruits, laundry soaps) are less likely to be bought with a reference group in
mind.

The success of a brand of status running shoes like Reebok is promoted by the fact
that it is relatively easy to spot a person wearing them-given the distinctive flag symbol
on each shoe's side.

Reference Group Impact on Product and Brand Choice

In some cases, and for some products, reference groups may influence both a
person's product category and brand (or type) choices. Such products are called
productplus, brand-plus items. In other cases, reference groups influence only the
product category decision.
In still other cases, reference groups influence the brand (or type) decision. These
products are called product-minus, brand-plus items.

Finally, in some cases, reference groups influence neither the product category nor
the brand decision; these products are called product-minus, brand-minus items.

Conformity
Marketers are particularly interested in reference groups' ability to change consumer
attitudes and behavior (i.e., encourage conformity). To be capable of such influence,
a reference group must:

1. Inform or make the individual aware of a specific product or brand;

2. Provide the individual with the possibility to match their thinking with the
attitudes and behavior of the group;
3. Influence the individual to adopt attitudes and behavior that are consistent with
the norms of the group;
4. Legitimize an individual's decision to use the same products as the group.

The ability of reference groups to influence consumer conformity demonstrates the

results of a classic experiment designed to compare the effects.

Benefits of the Reference Group Appeal

Reference group appeals have two principal benefits for the advertiser: they increase
brand awareness, and they serve to reduce perceived risk.

Increased Brand Awareness

Reference group appeals allow the advertiser to gain and retain the attention of
prospective consumers with greater ease and effectiveness than is possible with
many other types of promotional campaigns.

Particularly true of the celebrity form of reference group appeal, where the personality
employed is generally well known to the relevant target segment.

Celebrities tend to draw attention to the product through their popularity. These give the
advertiser a competitive advantage in gaining audience attention, particularly on
television, where there are so many brief and similar commercial announcements.
Reduced Perceived Risk
The use of one or more reference group appeals may also serve to lower the
consumer's perceived risk in purchasing a specific product. The example set by the
endorser or testimonial-giver may demonstrate to the consumer that uncertainty about
the product purchase is unwarranted:

1. Consumers who admire a particular celebrity often have the following reactions
to the celebrity's endorsement or testimonial.
For, e.g., "She wouldn't do a commercial for that product if she didn't believe it
was excellent."

2. When consumers are concerned about the technical aspects of a product,

they welcome an acknowledged or apparent expert's comments. For, e.g., "If he
says it works, then it really must work."
3. Common Man. When consumers are worried about how a product will affect
them personally, they are likely to be influenced by a specific man endorsement
or testimonial.
For, e.g., "People just like me are using that product."
CV) PAUSE FOR A THOUGHT: ABSTRACTION
1. What are the consumer relevant groups? How significantly do they influence
consumer behaviors?
2. What is social class? What are its characteristics?
3. Explain social stratification and its influence on marketing?
4. Describe reference groups and their types. Cite examples.
5. Analyze the influence that a reference group exerts on an individual's behavior.
6. Discuss the reference group's impact on product and brand choices.

CVI) THE FAMILY

The essentials of the family or household unit in consumer behavior arises for two
reasons:

1. A family unit purchases many products.

2. Other family members may heavily influence individuals' buying decisions.

How households or families make shopping for choices relies upon family
members' roles in purchasing, consuming, and impacting products.

Household products canbe purchased through someone, however, fed on with many.
In contrast, personal care items, such as cosmetics or shaving cream, might be bought
by an individual family member for their consumption. On the other hand, homes and
cars are often purchased by both spouses, perhaps with involvement from children or
other members of the extended family.

What is a Family?
A family is a group of two or more persons related by blood, marriage, or adoption who
live together.

● The nuclear family is composed of the immediate group of father, mother, and
children living together.
● The extended family is the alternative relatives, resembling
grandparents, uncles and aunts, cousins, and parents-in-law.
● The family that one is born into is commonly known as the family of orientation,
whereas the one established by marriage is the procreation family.
In a more dynamic sense, the people who represent a family may describe themselves
as members of the only primary social group. The latter live along and act to satisfy
their personal and mutual needs.

What is a Household?
The term household describes all persons, both related and unrelated, who occupy a
housing unit. There are significant differences between the terms household and family,
even though they sometimes used it interchangeably. It is essential to distinguish
between these terms when examining data.

The term household is becoming a more critical unit of analysis for marketers
because of the rapid growth in nontraditional families and non-family households.
Among nonfamily homes, the great majority consist of people living alone. The
remaining non-family households include older adults living with non-family members,
such as persons of Opposite Sex Sharing Living Quarters, friends living together,
and same-sex couples.

Structural Variables Affecting Families and Households

Marketers can better understand family and household decisions by examining the
sociological dimensions of how families make consumer decisions. Three
sociological variables that help explain how a family's function includes cohesion,
adaptability, and communication.

● Cohesion is the emotional bonding between family members. It measures how

close to each other family members feel on a personal level. Cohesion reflects a
sense of connectedness to or separateness from other family members.
● Adaptability measures a family's ability to change its power structure, role
relationships, and relationship rules in response to situational and developmental
stress. The degree of adaptability shows how well a family can meet the
challenges presented by changing situations.
● Communication is a facilitating dimension, critical to movement on the other two
sizes. Positive communication skills (such as empathy, reflective listening, and
supportive comments) enable family members to share their changing needs
 related to cohesion and adaptability. Negative communication skills (such as
double messages, double binds, criticism)

FUNCTIONS OF THE FAMILY

Four essential functions granted by the family specifically are vital to a discussion of
shopper behavior. These includes:

1. Economic Well-Being
Contributing money suggests that to its dependents is a primary family function. But
the family divides its responsibilities for giving economic well-being has modified
significantly throughout the past twenty-five years. The husband's traditional roles as
a financial provider and wife as homemaker and child rearer are still valid.

The economy of kids has changed. Today, even though some teen children work, they
seldom assist the family financially. Their folks are still expecting to supply for his or her
needs. However, a number of them get enough pocket- cash to choose their
consumption of discretionary items.

The provision of emotional attachment (including love, affection, and intimacy) to its
members is an essential primary function of the contemporary family. In fulfilling this
function, the family adapts support and commitment and assists its members in coping
with personal or social problems. To make it simpler for working parents to show their
love, affection, and support for their children in times of need and give them greeting-
card companies have been marketing cards provided for parents to deliver their children
the help they need.

For instance, in most communities, more educational and psychological centers are
available that are designed to assist parents who want to provide their children improve
their learning and communication skills, or generally, better adjust to their
environments.

1. Suitable Family Lifestyles

Another vital family function in terms of consumer behavior is establishing a comfortable
lifestyle for the family. Family lifestyle commitments, including the allotment of time,
greatly influence the consumption figure.
For example, the sustainable increase in the number of married women working
outside their homes has subsided for the time they have available for household
chores and has created a market for convenience products and fast-food restaurants.
Also, with both parents working, an increased emphasis is placed on the notion of
―quality time, rather than the number of time‖ spent with children and other family
members. Realizing the scarcity of quality family time, Hotels feature various
weekend packages targeted to couples and their children.

2. Socialization of Children and Other Family Members

The socialization of family members, especially young children, is a central family
function. In the increasing part, this process consists of imparting to children the
primary value and modes of behavior validated with the culture.

These include influenced by moral and religious principles, interpersonal skills,

proper dress code standards, appropriate manners, the way speech is delivered,
and selecting suitable educational and occupational or career goals. Socialization
skills (methods, goals, values, and other qualities) are imparted to a child directly
through instruction and indirectly through observation of parents and older siblings'
behavior. Marketers often target parents seeking assistance in the task of socializing
preadolescent children.

6.4 FAMILY LIFE CYCLES

Families undergo a series of stages that change them over time. This method may
historically be called the family life cycle (FLC). The concept may need to be modified
to the household life cycle (HLC) or consumer life cycle (CLC) in the future to
mediate changes in society. But, we will use the term FLC to demonstrate how the life
cycle changes consumer behavior over time.

Family Life Cycle Characteristics

The traditional FLC illustrated family patterns as consumers marry, have children,
leave home, lose a spouse, and retire.
Stages in
Family Economic Likely Buying Behavior
Life Circumstances
Cycle
 Bachelorhood Earning reasonable good Buy, basic kitchen equipment
(Young, single and stable financial basic furniture, motor vacation
staying alone) statement, no financial travel trip with friends
burdens
Parenthood Better off financially,
(young married though home Buys baby food, comfy toys,
just attained purchases at peak, less diapers, chest & cough
parenthood) liquid assets, not able medicines
to save more money
Post Financial position Concentrates on home
parenthood improved with the wife improvements. Buy more
(growing valuable furniture, car,
children or working, probability of household appliances, and
grown-up homeownership on the magazines. Interested in
children) higher side). vacation packages.
Dissolution Income, although good, is Buy more medicinal products
(retired & lone not fascinated by and other products for the
surviving spending. A forceful cut purpose of retirement. Seeks
spouse) in financial gain is likely more attention, affection, and
important. security conscious.
Consumer Activities Occurring in Various Life Cycles

Young Singles
Young singles may live alone, with their nuclear families, or with friends, or cohabitate
with partners. Although earnings tend to be relatively low, these consumers usually
don't have many financial obligations and don't feel the need to save for their
futures or retirement.

Many of them find themselves spending as much as they make on cars, furnishings for
first residences away from home, fashions, recreation, alcoholic beverages, and food
away from home, vacations, and other products.

Newly Married Couples

Newly married couples without children are usually better off financially than when
they were single since they often have two incomes available to spend on one
household. These families tend to spend a substantial amount of their payments on
cars, clothing, vacations, and other leisure activities. They also have the highest
purchase rate and most increased average purchases of durable goods
(particularly furniture and appliances) and appear to be more susceptible to advertising.

Full Nest I
With the arrival of the first child, parents begin to change their family roles and decide if
one parent will stay to care for the child or if they will both work and buy daycare
services. In this stage, families are likely to move into their first home, purchase
furniture, and furnishings for the child; and purchase new items such as baby food, toys,
sleds, and skates. These requirements reduce the family's ability to save, and the
husband and wife are often dissatisfied with their financial position.

Full Nest II
In this stage, the youngest child has reached school age; the employed spouse's
income has improved. Consequently, the family's financial position usually improves,
but the family finds itself consuming more and more. Consumption patterns continue
to be heavily influenced by the children since the family tends to buy large-sized
packages of food and cleaning suppliers, bicycles, music lessons, clothing, sports
equipment, and a computer.

Full Nest III

As the family grows older and parents enter their mid-40s, their financial position usually
continues to improve because the primary wage earner's income rises, the
second wage earner is receiving a higher salary. The children earn from occasional
and parttime employment. The family typically replaces some worn pieces of furniture,
buys some luxury appliances, and spends money on education.

Families also spend more on computers at this stage, purchasing additional PCs for
their older children. Depending on where children go to college and how many seek
higher education, the family's financial position may be tighter than other
instances.

Married, No Kids
Couples who marry and do not have children are likely to have more disposable income
to spend on charities, travel, and entertainment than others in their age range. Not
only do they have fewer expenses, but these couples are also more likely to be
dualwage earners, making it easier for them to retire earlier if they save appropriately.
Older Singles
Single, age forty or above, other possible single once more (ending the stages of legal
status due to divorce or death of a spouse) or status single
for life, either cluster of which might not have youngsters living within the
household.

This group now has more available income to spend on travel and leisure but feels the
pressure to save for the future, since there is no second income to rely on as they
get older.

Empty Nest I
At this stage, the family is most satisfied with its financial position. The children
have left home and are financially independent, allowing the family to save more. In this
stage, discretionary income is worth spent on what the couple wants rather than what
they need. Therefore, they pay for home improvements, luxury items, vacations, sports
utility vehicles, food away from home, travel, and products for their grandchildren.

Empty Nest II
But this time, the income earners have retired, usually resulting in a reduction in
income and disposable income. Expenditures become health-oriented, centering on
such items as medical appliances and health and medicines. But many of these families
continue to be active and in good health, allowing them to spend time traveling,
exercising, and volunteering. Many continue working part-time to supplement their
retirement and keep them socially involved.

Solitary Survivor
Solitary survivors are either employed or not employed. If the surviving spouse has
worked outside the home in the past, they usually continue employment or go back
to work to live on earned income (rather than saving) and remain socially active.
Expenditures for clothing and food usually decline in this stage, with income spent on
health care, sickness care, travel, entertainment, and services. Those who are not
employed are often on fixed payments and may move in with friends to share housing
expenses and companionship, and some may choose to remarry.
Retired Solitary Survivor
Retired solitary survivors follow the same general consumption patterns as solo
survivors; however, their income may not be high. Depending on how much they
have been able to save throughout their lifetimes, they can afford to buy a wide range of
products. These individuals have special needs for attention, affection, and security
based on their lifestyle choices.

Marketers use the descriptions of these FLC stages when analyzing marketing and
communication strategies for products and services. Still, they often add additional
information about consumer markets to analyze their needs, identify niches, and
develop consumer-specific marketing strategies.

Family life cycle influential needs

Relationships with other family members influence many aspects of consumer behavior.
Family members may share many attitudes and values, consider each other's
opinions, and divide various buying tasks. Marital status, age, at the age of any children
in the family have a primarily material effect on how people spend their income. Put
together, these dimensions tell us about the life-cycle stage of family.

Let's take a look closer look at how a few of these stages influence buying behavior.
FAMILY DECISION-MAKING
Families use products even though individuals usually purchase them. Determining
what products should be worth buying, which retail outlet to use, how and when
products are using, and who should buy them is a complicated process involving
various roles and actors.

Role Behavior
Families and other groups demonstrate what sociologist Talcott Parsons called
instrumental and showy role behaviors.

● Instrumental roles, commonly known as functional or economic roles, involve

financial, performance, and other group members' functions.
● Expressive roles involve supporting other family members in the decision-
making process and expressing the family's aesthetic or emotional needs,
including upholding family norms.

Individual Roles in Family Purchases

Family consumption choice involves at least five definable roles, which may be
assumed by spouses, children, or other household members. Both multiple parts and
multiple actors are standard. Marketers need to communicate with consumers thinking
about each of these roles, remembering that different family members will take
different functions depending on the situation and product. For example, children
are users of cereals, toys, clothing, and many other products but may not be the
buyers. One or both parents may be the decider and the buyer, although the children
may be necessary as influencers and users.

Family Roles
For a family to perform as a cohesive unit, roles or tasks adore doing the laundry,
getting ready meals, setting the dinner table, casting off the garbage, and walking. One
or additional family members should carry the dog out. In our dynamic society and so
on, family-related roles are continuously evolving.
Key Family Consumption Roles
The roles played by the different family members will vary from product to product.
While shopping in the market, a housewife comes across a new variety of juice that she
buys for the family. Her decision to purchase does not directly involve the influence of
other family members.

She is the decider, buyer, but may or may not be the preparer and not the only
user. In the case of products such as television, car, music systems, furniture, or any
other product that some or all the family members are likely to use, the purchase
decision is expecting to be a joint or group decision.

There are eight distinct roles in the family decision-making process. A look at these
roles provides further insight into how family members act in their various
consumptionrelated parts:
1. Influencers: are those relations that cater info and recommendation and
therefore influence the purchase. The house's woman tells her family concerning
the new eatery that has opened within the neighborhood, and her favorable
description of it affects her husband and teenage children.
2. Gatekeepers: Those family members control the flow of information about a
product/service, thus impacting other family members' decisions. The teenaged
son who demands a racing bicycle may withhold much of the relevant
information on all brands except that he fancies, thereby influencing his father's
decision in favor of his preferred brand.
3. Deciders: Family members who can unilaterally or jointly decide whether to buy
a product or service. The husband and wife may together decide about the
purchase of a new refrigerator.
4. Buyers: are those family members who decidedly buy a specific product or
service. A homemaker may be the person who buys all the foodstuffs, rations,
and toiletries, which are consumed by all the family members.
 5. Preparers: are those family members who transform or prepare the product into
the form in which it is consuming. The housewife may arrange and cook the
family meal using raw vegetables, lentils, spices, oil, and other ingredients.
6. Users: are those family members who use or consume a particular product or
service. All family members may use the car, watch the television, and listen to
the stereo music system.
7. Maintainers: Family member(s) who service or repair the product to provide
continued satisfaction.
8. Disposers: Family member(s) who initiate or carry out the disposal or
discontinuation of a particular product or service.

Influencing Spouses and Breakdown Shopper Conflicts

When creating consumer decisions, husbands and wives typically decide to
influence one another to make what they feel to be the most specific outcome. Six
influence methods for resolving husband/wife consumption-related conflicts want to be
distinguished.
● Expert: At the spouse's attempt to use his or her superior information about
decision alternatives to influence the other spouse.
● Legitimacy: An attempt by a spouse to control the other spouse based on
position in the household.
● Bargaining: An objective by a spouse to secure influence now will be
exchanging with the other spouse in time.
● Reward: An aim of a spouse to influence the other spouse's behavior by offering
a reward.
● Emotional: An attempt by a spouse to use an emotion-laden reaction to
influence the other spouse's behavior.
● Impression: Any persuasiveness tries by one spouse to influence the behavior
of another.
These influence methods tend to be employed by either husbands or wives once they
disagree or conflict with the opposite spousal equivalent relating to specific shopper
decisions.
Children
As any parent knows, young children try to influence family decisions as soon as they
possess the necessary communication skills needed to interact with other family
members (―Buy me a cookie‖, ―I want a Barbie doll‖, ―Let's eat at McDonald' s‖.).

Older children are probably to hitch additional promptly in family consumption

activities. During a study of kids aged half dozen to 14, over [*fr1] indicated that they
impact family purchase decisions, which are akin to selecting vacations, stereo
equipment, and residential laptops. Alternative analysis suggests that children play
comparatively essential roles once it involves initiating interest in a new computer and
also the actual purchase decision.

The parent-child relationship can be viewed as an influence versus yield situation

as it relates to consumer behavior. Specifically, children try to influence their parents to
make a purchase (to yield). In observing buyers in a supermarket, it is evident that
children try to control their parents to make purchases of particular interest (e.g.,
laundry detergents) to view ads on Television.

Teenagers and Post teen

An essential variety of teenagers have discretionary spending in terms of paying
patterns. High school students (those in grades seven through 12) are most fascinated
by sports and fitness. Boys between the ages of sixteen and nineteen spend most of
their cash on movies, dating, entertainment, vehicle expenses, and clothing. In contrast,
ladies of that age spend most of their money on clothing, cosmetics, and fragrances.

The teen market may be dividing in terms of lifestyle groups. The figure below
presents a four-category segmentation schema of the teenage market.
Such a segmentation framework has value for marketers who wish to focus their
marketing efforts on a particular subgroup of teens.

Segmen Key Characteristics

t
Name
1. Socially Primarily female; active and extroverted. Also optimistic and plan to
driven. attend college.
2.
Versatile Slightly more females than males are responsible teens, but less
Participant optimistic and less likely to plan to attend College than the Social
Driven. They are comfortable in social and solitary situations.

3. P Slightly more males than females: withdrawn, self-conscious, and

assi the least are comfortable in social situations. They are less
ve optimistic about the future and spend the least.
Intr
over Primarily males are outgoing, active, and much interested in
ts participating in and watching sports. Sports influence their
selfimage.

4. S
port
s
Oriented
Lifestyle segmentation and subdivided of the teen market

Family marketing
Family selling thinks about the connections between relations supporting the roles
they assume and the relationship between the vendee and family shopper and between
the purchaser and the decision-maker.

Family marketing identifies scenarios where some purchase might have more than one
decision-maker, whereas some have more than one consumer. The family marketing
model, as seen in Figure 3.1, represents nine cells describing various
purchaserconsumer relationships. Depending on where different products fall in the
matrix, marketers can advertise and position products differently according to their
purchaserconsumer relationships.

The family purchase decision-making process can be complicated, but answering the
following questions helps identify different purchaser-consumer relationships.
● Who‘s buying for whom?
● Who are the principal characters?
 ● What‘s the plot for the purchase? ● Who wants what when?
● What can we assume?

Influences on the Decision Process

How do husbands and wives comprehend their relative impact on decision making
across the decision stages? And what does this mean for marketers? Joint choices
tend to be ready about vacations, televisions, refrigerators, and living room furniture.

Autonomic decision-making manages to be present in decisions about categories

that include women's jewelry, men's leisure clothing, indoor paint and wallpaper, and
luggage.
By understanding wherever on this ―map‖ the selections to shop for explicit product
fall, marketers will begin to work out aspects of specific products to advertise to totally
different unit members and which media can reach the authoritative family member.

Influence by Decision Stage

Spouses apply different degrees of influence when passing through the various
stages of the decision-making process. This movement from information search to the
final decision may be minimal in many low-involvement goods but more pronounced for
dangerous goods or have high family involvement.

Activity is most pronounced for refrigerators, family autos, upholstered living room
furniture, carpets, or rugs. For all one knows, vacations are the most democratic of a
family's purchase decisions—separate campaign timing to coincide with specialized
interests, especially for merchandise with a long planning cycle.

Influence of employment

In the past, marketers could refer to the traditional role structure categories to
determine which family member was most likely to buy a specific product. Although
traditional buying roles still apply, husbands in dual-income marriages are also willing to
prevent at the grocery to select up many items.

Influence of Gender

As the gender gap narrows, husband and wife decisions are combined. Qualls studied
family decisions concerning vacations, automobiles, children's education, housing,
insurance, and savings. Prior studies showed that decisions regarding these products
were usually reporting as wife or husband dominant.

Qualls found overwhelmingly that joint decisions are now the norm for these products,
with 80 percent of children's education and housing decisions made jointly.
Increasing women's resources and shifting toward egalitarianism produces more joint
decision-making in product and service categories of perceived high risk.
CONSUMER BEHAVIOR UNIT VII
Influence of Culture on Consumer Behavior
Lessons:

7.1 Characteristics of Culture and its Measurements

7.2 Definition of Subculture and its Types & related Interactions

7.3 Cross-cultural Consumer Analysis & Alternative Multinational Strategies

7.4 Cross-cultural Psychographic Segmentation

7.5 Marketing mistakes/issues

Duration: 3 hours per week

INSTRUCTIONAL OBJECTIVES
After completion of this Unit VII, the student shall:
● understand the concepts of culture & its subcultures
● analyze the cross-cultural consumer analysis
● apply alternative multinational strategies and cross-cultural psychographic
segmentation
● understand related marketing mistakes/issues

LESSON PROPER/METHODOLOGY

ANALYSIS

7.1 Characteristics of Cultures and their Measurements

All of us are part of a cultural fabric that affects our behavior, including our consumers’
behavior. Culture is the sum of learned beliefs, values, and customs that regulate
members of a particular society.

Characteristics of Culture

❖ Learned Behavior
❖ Culture is Abstract
❖ Culture includes Attitudes, Values, and Knowledge
 ❖ Culture also has Material Objects
❖ The Members of Society share culture
❖ Culture is Super organic
❖ Culture is Pervasive
❖ Culture is a Way of Life
❖ Culture is Idealistic
❖ Culture is Transmitted among Members of Society
❖ Culture is Continually Changing
❖ Language is the Chief Vehicle of Culture
❖ Culture is Integrated
❖ Culture is Trans missive
❖ Culture is Dynamic
❖ Culture is Gratifying
❖ Culture Varies from Society to Society

Measurements of Culture

❖ Content Analysis
Systematic analytical method as to content of verbal and/or pictorial
communication.

❖ Field Observation
Cultural measurement technique takes place within a natural environment that
focuses on observing behavior (sometimes without the subject’s awareness.)
❖ Value Measurement Instruments
➢ Rokeach Value Survey (RVS)
➢ List of Values (LOV)
➢ Value and Lifestyle (VALS)

Measurement Issues

It is critical to establish the equivalence of scales and measures used to obtain data
from different countries with different cultures with ff. considerations:

● Equivalence of constructs being studied

● Equivalence of measures of the concepts under study
 ● Equivalence of sample being studied in each country or culture

The concepts of reliability, defined as consistency over time, and validity are
essential to any market research effort, especially those that cross-national boundaries.

7.2 Definition of Subculture and its Types and related Interactions

We are taught how to adjust to our environment’s environmental, biological,
psychological, and historical parts through our culture.

A belief is an opinion that reflects a person's particular knowledge and assessment.

Values are general statements that guide behavior and influence beliefs and attitudes.
A value system helps people choose between alternatives in everyday life.

Customs are overt modes of behavior that constitute culturally approved ways of
behaving in specific situations. Dominant cultural values are referred to as core values;
they tend to affect and reflect a particular society’s core character.

Secondary values also exist in any culture. Secondary costs are less permanent
values that can sometimes be influenced by marketing communications. Also,
secondary values are often shared by some people but not others. These values serve
as a basis for subcultures.

A natural evolution that occurs in any culture is the emergence of subcultures. Five of
the most critical society’s core character that creates subcultures are:

❖ Material culture.
❖ Social institutions.
❖ Belief systems.
❖ Aesthetics. ❖ Language.

Types of Subcultures:

● Race & Ethnicity

● Gender
● Age
● Nationality
● Religion
● Geographic region
● Occupation
● Social class
● Counterculture
7.3 Cross-cultural Consumer Analysis & Alternative Multinational Strategies
Forecasts of the future

● "High Pace/High Peace: High-speed lifestyles create new goals and needs."
This tension between high pace and high peace shows no sign that it will go
away. Simultaneously, data suggest that there are opportunities for marketers
to become a bridge to get people to both their high pace and high peace goals.
● "Kinnections: The movement to connection in technology, relationships,
and brands": These connections are different from the past. They can be
fastchanging and dynamic (kinetic). They appear to be part of a desire for a
greater sense of association (kinship). The movement to connections, thus, is a
move toward "connections.”
● "Diversity/Destiny": Multiculturalism defines the nation's tastes in food areas
to popular music. To succeed in this year of diversity/destiny, marketers need to
know both sides.
● "Marketing by life stage": Marketers have traditionally relied on standard
demographics to understand and predict consumer behavior. But the study
shows that life stages are more evident in economic business transactions
related to marketing.

Cultural Challenges of Conducting International Marketing Research

Cultural elements such as social institutions, gender roles, language, religion,
aesthetics, education, and time orientation are closely intertwined with national culture.
They have a significant impact on the acceptability and adoption of new products and
services.

Cultural differences deeply affect the adoption of products and services and other
forms of market behavior. Cultural forces have taken on strategic importance that
cannot be ignored when marketing new and existing products and services.

Social factors embody a culture’s entire organization, including its groups and
institutions, its social infrastructure system, and the process by which resources are
distributed. Naturally, social structure affects market research decisions, including the
cost of conducting the research, reaching the target markets, collecting the data,
etc.
The target market’s knowledge of and familiarity with product service offerings
also plays a critical role in conducting research. Market research specialists demand
certain levels of educational and technological skills.

Cultural Norms
Following language, the most significant variable in successful foreign market
research is cultural norms. These norms are very influential forces and can represent
the difference between successful product introduction and failure. Unfortunately,
cultural norms are usually very subtle rather than blatant and obvious, making them
hard to discern and detect.

CVII) Cross-cultural Consumer Analysis

According to Berkman and Gilson, Cross-cultural research is a methodology for
comparing cultures based on similarities and differences and studying small segments
of a total culture with consideration of statistical, typological, and content-related
aspects.

Objective: To determine how consumers of different societies are similar & different.

The greater the similarity between nations, the more feasible it is to use relatively similar
marketing strategies in each nation. On the other hand, if the cultural beliefs, values,
and customs of specific target countries are found to differ widely, then a highly
individualized marketing strategy is indicated for each country.

CVIII) Alternative Multinational Strategies

In a cross-cultural analysis of English, the United States, Canadian & Australian
markets, Sommers and Kernan offer four strategies for expanding existing products into
new markets. Their primary considerations are twofold: 1) the cultural values which
will determine how a product is positioned, and 2) cultural cues as to how a
product may best be marketed. Strategies are:

1. Same product-same promotion

2. Same product-different promotion
3. Different product-same promotion
4. Different product-different promotion

7.4 Cross-cultural Psychographic Segmentation

Understanding cross-culture help marketers:
 ❖ Towards proper adaptations in their product, pricing, distribution and promotion
policies.
❖ To segment markets virtually.
❖ To identify reference groups that will have a bearing on consumer behavior
needed to tailor their promotional programs to respective specific reference
groups.

Approaching World Markets: Segmentation versus Standardization

Generally, the recent trend in international marketing has veered away from
segmentation toward greater market standardization.

Because a significant degree of culture universally exists throughout the world,

marketing experts urge the more economical approach of viewing several countries in
one market.

Acculturation is a needed marketing viewpoint.

In a sense, cross-cultural acculturation is a dual process for marketers. First,

marketers must thoroughly orient themselves to new society’s values, beliefs, and
customs to appropriately position and market their products. Second, to gain
acceptance for a culturally new product in a foreign culture, they must develop a
strategy that encourages members of that society to modify or even break with their
traditions.

7.5.1 Basic Research Issues in Cross-Cultural Analysis:

❖ Differences in language and meaning

❖ Differences in market segmentation opportunities
❖ Differences in consumption pattern
❖ Differences in the perceived benefits of products and services
❖ Differences in the criteria for evaluating products and services
❖ Differences in economic and social conditions and family structure
❖ Differences in marketing research possibilities
CIX) Frameworks for assessing multinational strategies

Multinational marketers face the challenge of creating marketing and advertising

programs capable of communicating effectively with a diversity of target markets.
Various frameworks have been developed to determine the degree to which marketing
and advertising efforts should be either globalized or localized, or mixed or combined to
assist in this imposing task.

A Product Recognition Continuum for Multinational Marketing

Stage One: A brand is “alien” and unavailable but may be desirable.

Stage Two: Local consumers view a brand made elsewhere as “foreign,” but locally
available.

Stage Three: Local consumer’s accord imported brand “national status.”

Stage Four: Brand owned by a foreign company is made (wholly or partly) domestically
& has come to be perceived by locals as a local being “adopted” (naturalized).

Stage Five: Brand has lost its national identity. Consumers everywhere see it as
“borderless” or global; not only can people not identify where it comes from, but they
never ask this question.

When looking for success in a foreign market, it has been suggested that a company
should remember the 3 P’s: Place, People, and Product. Often the key to success is
to “be global but to act and learn locally.”

Hence, marketers should conduct extensive cross-cultural research and set global
strategies accordingly to fulfill an urgent need for more systematic and conceptual
crosscultural analyses.

7.5.2 Additional Marketing Errors/Issues:

❖ Lack of Research and Testing

❖ Improper Focus and Positioning
❖ Marketing without Unique Selling Proposition
❖ Lack of focus on Customer’s needs & demands and its related influences across
different countries and cultures