MARKETING SPECIALIZATION:

CONSUMER BEHAVIOUR

Subject- Consumer Behaviour Complied By – Prof. Poonam Barha

 Unit 2: Factors affecting Consumer Behaviour

External Influences on Consumer Behaviour

External influences are factors outside of an individual that can impact their buying
behaviour. These include culture, subculture, social class, reference groups, and family.

1. Culture

Culture is the set of values, beliefs, and customs that shape consumer behaviour within a
society. It influences what products are considered appropriate or desirable. It represents
the collective programming of the mind that distinguishes one group from another.

A belief is a proposition that reflects a person's particular knowledge and assessment of

something (that is, "I believe that...").

Subject- Consumer Behaviour Complied By – Prof. Poonam Barha

 Values are general statements that guide behaviour and influence beliefs. The function of a
value system is to help a person choose between alternatives in everyday life.

Customs are overt modes of behaviour that constitute culturally approved ways of
behaving in specific situations..

Impact on Behaviour: Culture influences consumer preferences, consumption patterns,

and attitudes toward brands. It shapes how individuals perceive products and services and
their motivation to purchase.

Example: In many Western cultures, individualism and personal achievement are highly
valued, which influences consumers to buy products that reflect personal success, like
luxury cars or branded clothing.

Example: In Japan, where respect for tradition is important, companies like Toyota focus
on promoting reliability and quality in their cars, aligning with cultural values of longevity
and precision.

2. Subculture

Subcultures are smaller groups within a larger culture that share unique values, behaviours,
interests or lifestyles, often based on ethnicity, religion, or geography.

Impact on Behaviour: Different subcultures (e.g., ethnic, religious, age-based) may have
unique consumption preferences and behaviours.

Example: Halal food products are marketed specifically to the Muslim subculture,
emphasizing compliance with religious dietary laws.

Example: Within the broader American culture, there are subcultures such as the Hispanic
community, which might prefer brands that cater to bilingual packaging and
advertisements.

3. Social Class

A division of a society based on social and economic status. Social class can influence the
types and quality of products a consumer purchase. Social class refers to the division of
society into groups based on income, education, and occupation. It influences
consumption patterns and brand preferences.

Social class, which is determined by such factors as occupation, wealth, income, education,
power, and prestige, is another societal factor that can affect consumer behaviour. The
best-known classification system includes upper-upper, lower-upper, upper-middle, lower-
middle, upper-lower, and lower-lower class. Lower-middle and upper-lower classes
comprise the mass market.

The upper-upper class and lower-upper class consist of people from wealthy families who
are locally prominent. They tend to live in large homes furnished with art and antiques.

Subject- Consumer Behaviour Complied By – Prof. Poonam Barha

 They are the primary market for rare jewellery and designer originals, tending to shop at
exclusive retailers. The upper-middle class is made up of professionals, managers, 2nd
business owners. They are ambitious, future-oriented people who have succeeded
economically and now seek to enhance their quality of life. Material goods often take on
major symbolic meaning for this group. They also tend to be very civic-minded and are
involved in many worthy causes. The lower-middle class consists of mid-level white-collar
workers.

Impact on Behaviour: People in different social classes tend to have distinct spending
patterns, tastes, and preferences.

Example: Luxury brands like Louis Vuitton target higher social classes who value status
symbols and can afford premium products.

Example: People in a higher social class might buy high-end electronics and designer
clothes, while those in a lower social class might prioritize budget-friendly options.

4. Reference Groups

Groups of people that individuals look to when forming attitudes and opinions. This can
include friends, colleagues, or social media influencers.

Impact on Behaviour: Consumers often seek approval from or align their preferences with
those of their reference groups, especially for products related to social identit

Example: A teenager may buy a particular brand of sneakers because their favorite
influencer on social media wears them.

Example: Influencers on platforms like Instagram serve as reference groups for younger
consumers, influencing their choices in fashion and tech gadgets.

5. Family

The family unit plays a significant role in shaping consumer behaviour through shared
values, buying habits, and preferences.

One of the most important reference groups for an individual is the family. A consumer's
family has a major impact on attitude and behaviour.

Impact on Behaviour: Family members can influence each other's choices, from everyday
items to major purchases like homes or cars.

Example: A family's preference for organic food can influence all its members to buy
organic products.

Example: Parents often influence children’s choices in products like toys or clothes, while
children’s preferences might affect what brands of food or snacks are purchased by the
family.

Subject- Consumer Behaviour Complied By – Prof. Poonam Barha

 Internal Influences on Consumer Behavior

Internal influences are psychological factors that

affect how consumers make decisions. These
include needs and motivations, perception,
personality, lifestyle, values, learning, memory,
beliefs, and attitudes.

1. Needs & Motivations

Needs are the basic requirements that drive a consumer's desire to purchase a product,
while motivations are the reasons behind their actions.

Motivation is a concept that is difficult to define, in fact, the difficulty of defining motives
and dealing with motivation in consumer research accounts for its limited application.

A motive is the inner drive or pressure to take action to satisfy a need. To be motivated is
to be a goal-oriented individual. Some goal are positive, some are negative, some
individuals have a high level of goal orientation, some have a very low level.

Needs are essential requirements for survival or well-being (e.g., food, shelter), while
motivations are the driving forces that push consumers to fulfill these needs. Needs are
often categorized into primary (physiological) and secondary (psychological) needs.

Impact on Behaviour: Consumers motivations guide their buying decisions, aiming to

satisfy their basic or higher-level needs (as outlined by Maslow’s hierarchy of needs).

Example: A person may buy food to satisfy hunger (physiological need) or purchase a
luxury car to achieve a sense of status (esteem need).

Example: Maslow’s hierarchy of needs shows that consumers buy certain products to fulfil
different needs, such as purchasing a security system (safety needs) or designer clothes
(self-esteem needs).

Example: A person may feel the need for safety, motivating them to purchase a reliable
and highly-rated car.

2. Perception

The process by which individuals select, organize and interpret information to form a
meaningful picture of the world.

Perception is how consumers interpret and make sense of the information about products
and brands that they encounter through their senses (sight, sound, etc.).

Subject- Consumer Behaviour Complied By – Prof. Poonam Barha

 Impact on Behaviour: How consumers perceive products (e.g., price, quality, branding)
influences their purchasing decisions. Two individuals can perceive the same product
differently, based on their experiences and biases.

Example: A product marketed as "organic" may be perceived as healthier, influencing

consumers to choose it over conventional alternatives, even if the actual difference is
minima

Example: The packaging of Apple products is designed to create a perception of simplicity

and sophistication, making consumers associate the brand with high quality.

Example: A consumer might perceive a product as high quality if it is advertised by a well-

known celebrity.

3. Personality

The unique psychological characteristics that consistently influence how a person responds
to their environment.

Personality refers to an individual’s consistent patterns of behaviour, thought, and

emotion. It often drives purchasing habits based on personal traits like introversion or
extroversion.

Personality is used to summarize all the traits of a person that make him/her unique. No
two people have the same traits but several attempts have been made to classify people
with similar traits.

Impact on Behaviour: Different personality types lead to varied buying behaviors. For
example, adventurous personalities may be attracted to new or unconventional products.

Example: An extroverted person may prefer social, outgoing activities and buy products
that help them stand out like event tickets or social gadget while an introverted person
might choose products that support a more reserved lifestyle like books.

Example: An adventurous person may prefer buying outdoor gear and travel experiences
over indoor entertainment options.

4. Lifestyle

A person’s pattern of living as expressed in their activities, interests, and opinions.

Lifestyle reflects how consumers live their lives, including their activities, interests, and
opinions. This shapes their buying preferences and behaviours.

Lifestyle refers to the way an individual lives, encompassing their daily activities, interests,
opinions, and consumption habits. It reflects personal values and social identity.

Subject- Consumer Behaviour Complied By – Prof. Poonam Barha

 Lifestyle one of the newer and increasingly important set of factors that is being used to
understand consumer behaviour is lifestyle. Lifestyle has been generally defined as the
attitudes, interests, and opinions of the potential customer.

... life style patterns, combines the virtues of demographics with the richness and
dimensionality of psychological characteristics.... Life style is used to segment the
marketplace because it provides the broad, everyday view of consumers life style
segmentation and can generate identifiable whole persons rather than isolated fragments.

Impact on Behaviour: A consumer’s lifestyle influences their spending on different

categories (e.g., health, entertainment, education). People with different lifestyles may
purchase vastly different products.

Example: A health-conscious consumer may buy organic foods, gym memberships, and
fitness equipment, while a luxury-oriented individual might spend more on high-end
fashion and travel.

Example: Consumers with an active lifestyle are more likely to buy products like fitness
equipment and athleisure wear (e.g., Nike or Adidas).

Example: Someone who leads a health-conscious lifestyle might spend more on gym
memberships and organic foods.

5. Values

Core beliefs that guide behaviour. They are deeply held principles that affect decisions and
actions. They often influence long-term decisions and are resistant to change.They are
central to how people view the world and make decisions.

Impact on Behaviour: Consumer values influence their ethical decisions, such as choosing
environmentally friendly products or fair-trade goods.

Example: A consumer who values sustainability might prioritize purchasing eco-friendly

products, even if they cost more than regular alternatives

Example: Consumers who value sustainability might prefer to buy products from eco-
friendly brands like Patagonia, which emphasizes environmental responsibility.

Example: A person who values environmental sustainability may choose to buy eco-friendly
products.

6. Learning

Changes in an individual’s behaviour arising from experience.

Learning refers to the process by which consumers change their behaviour based on past
experiences or exposure to new information.

Subject- Consumer Behaviour Complied By – Prof. Poonam Barha

 Impact on Behaviour: Learning affects future purchasing decisions based on past
satisfaction or dissatisfaction.

Example: If a consumer has a positive experience with a particular brand, they are likely to
become repeat buyers. Conversely, a negative experience may lead them to avoid the
brand in the future.

Example: A consumer who has learned that a certain skincare brand consistently gives
them good results is likely to continue purchasing products from that brand in the future.

Example: A consumer learns to associate a particular brand of pain relief with effectiveness
after using it successfully in the past, influencing future purchases.

7. Memory

The process by which information is stored and retrieved, which can influence brand recall
and purchase decisions.

Memory plays a role in consumer behaviour as it helps consumers recall past experiences
with products, which influences future purchases.

Impact on Behaviour: Recalling a pleasant past experience with a product or service

encourages repeat purchases, while negative memories can deter future engagement.

Example: A consumer who remembers a great vacation at a specific hotel is more likely to
book with the same hotel chain for their next trip.

Example: Coca-Cola relies on consistent branding and advertising to remain in consumers

long-term memory, ensuring they think of Coca-Cola when choosing soft drinks.

Example: A memorable jingle from a commercial might make a consumer more likely to
recall and choose that brand while shopping.

8. Beliefs & Attitudes

Beliefs are descriptive thoughts that a person holds about something, while attitudes are
feelings or evaluations of something that influence their behaviour.

Beliefs are specific ideas that individuals hold to be true, while attitudes are general
feelings or evaluations toward a product or brand.

Impact on Behaviour: Positive beliefs and attitudes lead to a higher likelihood of purchase,
while negative beliefs can prevent it.

Example: A consumer who believes that a particular brand of smartphone is innovative and
reliable will have a positive attitude toward it and is more likely to purchase it.

Subject- Consumer Behaviour Complied By – Prof. Poonam Barha

Example: A consumer may believe that organic products are healthier, which leads them to
develop a positive attitude towards Whole Foods and shop there for groceries.

Example: If a consumer believes that a brand of shoes is high-quality and durable (belief),
they may develop a positive attitude towards that brand, leading them to purchase it.

Consumer behaviour is shaped by a complex mix of external and internal factors.External

influences like culture, social class, and family determine the societal norms that
consumers adhere to, while internal factors such as motivation, perception, personality,
and lifestyle drive individual preferences and purchasing decisions.

Subject- Consumer Behaviour Complied By – Prof. Poonam Barha