Consumer Behaviour

Module – 6
Dr Virupaksha Goud

Topics to be covered :
External Influences on Consumer Behaviour: Part 2 Groups: Meaning and Nature of Groups, Types
Family: The changing structure of family, Family decision making and consumption related roles, Key
family consumption roles, Dynamics of husband-wife decision making, The expanding role of
children in family decision making, The family life cycle & marketing strategy, Traditional family life
cycle & marketing implications, Reference Groups: Understanding the power & benefits of reference
groups, A broadened perspective on reference groups, Factors that affect reference group influence,
Types of reference groups, Friendship groups, Shopping groups, Work groups, Virtual groups,
Consumer-action groups, reference group appeals, Celebrities.

Groups
A group is a collection of two or more individuals who have relations to one another that make them
interdependent to some significant degree.

Nature of Groups
 A set of people engage in frequent interactions
 They identify with one another.
 They are defined by others as a group.
 They share beliefs, values, and norms about areas of common interest.
 They define themselves as a group.
 They come together to work on common tasks and for agreed purposes
 They are interdependent on each other.

Types of Groups
Primary and secondary groups
Primary groups are clusters of people like families or close friendship circles where there is close,
face-to-face and intimate interaction. There is also often a high level of interdependence between
members. Primary groups are also the key means of socialization in society, the main place where
attitudes, values and orientations are developed and sustained.

Secondary groups are those in which members are rarely, if ever, all in direct contact. They are often
large and usually formally organized. Trades unions and membership organizations such as the
National Trust are examples of these. They are an important place for socialization, but secondary to
primary groups.

Planned and emergent groups

Planned groups. Planned groups are specifically formed for some purpose – either by their
members, or by some external individual, group or organization.
Emergent groups. Emergent groups come into being relatively spontaneously where people find
themselves together in the same place, or where the same collection of people gradually come to
know each other through conversation and interaction over a period of time.

Socialization
Includes imparting to children the basic values and modes of behavior consistent with the culture.
Theses generally include moral and religious principles, interpersonal skills, dress and grooming
standards, appropriate manners and speech and the selection of suitable educational and
occupational or career goals.

Consumer Socialization of Children

Process by which children acquire the skills, knowledge, attitudes and experiences necessary to
function as consumers. Many preadolescent children acquire their consumer behavior norms
through observation of their parents and older siblings, who function as role models and sources of
cues for basic consumption learning.
 Shared shopping experiences (i.e. coshopping- when mother and child shop together) also
give children the opportunity to acquire in-store shopping skills.
 A socialization agent is a person or organization involved in the socialization process because
of frequency of contact with the individual and control over the rewards and punishments
given to the individual. Mothers are considered to be stronger consumer socialization agents
than their husbands because they tend to be more involved with their children.
 Adult Consumer Socialization : When a newly married couple establishes their own
household, their adjustment to living and consuming together is part of adult consumer
socialization.
 Intergenerational Socialization : Certain product loyalties or brand preferences transfer
from one generation to another – intergenerational brand transfer-for three or four
generations within the same family. For instance, specific brand preferences for products
such as peanut butter, ketchup, coffee are all product categories that are frequently passed
on from one generation to another generation.

Model of Socialization Process

Young Person

Other Family Friends

Members

Preadolescent Stage (Influence more Adolescent & Teenager

Basic Values/ Behavior) (Influence more Expressive
Attitudes/Behavior)
 Moral/Religious principles
 Interpersonal skills  Style
 Dress/grooming standards  Fashion
 Manners and speech  Fads
 Educational motivation  In/Out
 Occupational/career goals

Family
A social group of people living together and comprising of parents, siblings, share certain
characteristics and interdependent on each other is called a family. Members of the immediate
family includes spouses, parents, brothers, sisters, sons and/or daughters. Members of the
extended family may include grandparents, aunts, uncles, cousins, nephews, nieces,
and/or siblings-in-law.
 Types of Families
 Nuclear Family : A nuclear family includes only the husband, the wife, and unmarried
children.
 Joint Family : Includes, grandparents, sons, their wives and grandchildren living together.
 Single Mother Family with kids
 Single Father Family with kids

Changing structure of Family

 Joint family culture is changing to nuclear family culture.
 More number of working women in the family.
 Women playing an important role in buying decisions.
 Single parent family culture is growing.
 Increase in the number of cases of DISK (DOUBLE INCOME SINGLE KID)
 Increase in the number of cases of DINK (DOUBLE INCOME NO KIDS)

Marketing Implications
 Growing demand of small packet sizes like 1 kg, 2 kg, in grocery
items because of small sized families.
 Increase in demand of readymade foods like pickle, papads, ready to
eat meals and Readymade parathas due to working wives.
 Growth in the number of day care centres and play homes.
 Rise in the sales of microwave ovens.
 More spending on tourism and personal luxury.

Family Decision Making and Consumption Related Roles

 Initiator – A person who first suggests or thinks of the idea of buying the product. Eg. Patient
 Influencer – Person whose view or advice influences the decision. Eg. Doctor or Chemist
 Decider – Decides on any component of a buying decision – whether to buy, what to buy,
how to buy and where to buy. Eg.Patient or his relative.
 Buyer – who makes the actual purchase.Eg. Patient or his relative
 User – who consumes or uses the product or service. Eg. Patient

Dynamics of Husband Wife Decision Making

 Husband Dominated Decisions : Purchase of automobiles, electronic gadgets etc

 Wife dominated decisions : Purchase of grocery
 Joint Decision
 Autonomic(where either the husband or the wife is the primary or only decision maker)

For eg, During the 1950’s ,the purchase of a new automobile was strongly husband
dominated,whereas food and financial banking decisions were often wife-dominated. Fifty years
later,due to more of independent females, there is no certain boundary of males or females
dominated decisions. Today most of the decisions in a family are joint decisions.

THE EXPANDING ROLE OF CHILDREN IN FAMILY DECISION MAKING

Over the past few years, the role of children in family decision making has expanded. This is due to
the reason that families have fewer children now and due to double income they are able to afford
the demands of their kids.
  TACTICS USED BY CHILDREN TO INFLUENCE THEIR PARENTS
Pressure Tactics : Child makes demands, uses threats to persuade you to comply
with his request.
 Upward Appeal : Child seeks to persuade you saying that the request was approved
by an older member of the family.
 Exchange Tactics : Child makes an explicit promise togive you some sort of service
such as washing car,cleaning house or taking care of the baby.
 Coalition Tactics : Child seeks the aid of others to persuade you to comply with his
request.
 Consultation Tactics : child seeks your involvement in making a decision.

Conceptual Framework Related to Factors explaining the development of

strategies by 10year old children to influence Parental Decisions on Food
Purchasing

Individual
Differences

Gender
Strategies to
Interpersaonal
Influences influence Children’s food
parental choice
Eat foods similar to decisions on food
those eaten by others.
purchasing

Environmental
Influences

Societal Influences

Traditional Family Life Cycle

Stage 1: Bachelorhood
Stage 2 : Honeymooners
Stage 3 : Parenthood
Stage 4 Post-parenthood
Stage 5 :Dissolution

Bachelorhood
Cosnsits of young single men and women who have established households apart from their
parents. Young single adults are apt to spend their income on rent, basic home furnishings, the
purchase and maintenance of automobiles, travel and entertainment and clothing and accessories.

Honeymooners
Starts immediately after the marriage vows are taken and continues until the arrival of couple’s first
child. Considerable start-up expenses when establishing a new home : major and minor appliances,
bedroom and living room furniture, carpeting,drapes, dishes and a host of utensils and accessory
items.

Parenthood
Usually extends over more than a 20 year period. And a couple has its first child. Indulge in shopping
for kids clothing, diapers, food items, insurance policies, kid’s education.

Post-parenthood
All the children have left home. Married couple tend to be most comfortable financially. They travel
more frequently, take extended vacations, purchase a second home or refurnish the old one, new
automobiles, expensive furniture etc.

Dissolution
Dissolution of the basic family unit occurs with the death of one spouse. Surviving spouse often
tends to follow a more economic lifestyle, looking for old age home, medicines and basic necessity
items.

Reference Groups

A Reference group is any person or group that serves as a point of comparison for an individual in
forming either general or specific values, attitudes or a specific guide for behaviour. Reference
groups are groups that serve as frames of reference for individuals in their purchase or consumption
decisions.

Types of Reference Groups

Friendship Groups : Typically classified as informal groups because they are usually unstructured and
lack specific authority levels. The opinions and preferences of friends are an important influence in
determining the products or brands a consumer ultimately selects. Marketers of products such as
brand name clothing, fine jewellery, snack foods, and alcoholic beverages recognize the power of
peer group influence and frequently depict friendship situations in their ads.

Shopping Groups
Two or more people who shop together, whether for food, clothing or simply to pass the time can be
called as shopping group. Such groups are often offshoots of family or friends and therefore they
function as purchase pals. The motivations for shopping with a purchase pal range from a primarily
social motive (to share time together) and to help to reduce the risk when making an important
decision or purchase.

Work Groups
The sheer amount of time that people spend at their jobs, provides ample opportunity for work
groups to serve as a major influence on the consumption behaviour of the members. The formal
work group consists of individuals who work together as part of a team and thus have a sustained
opportunity to influence each other’s consumption related actions and attitudes. Informal
friendship work groups consist of people who have become friends as a result of working for the
same firm but not as a team. They influence the other members during coffee or lunch break.

Virtual Groups
Group formed on Internet or through computers are termed as virtual groups. You can chat online
and get the review of the movie, or influence you group member who is staying abroad.

Consumer-action groups
Group emerged as a result of consumerist movement is termed as consumer group. They can
influence the consumers in making correct purchase decisions.

Power and Influence of Reference Groups

 Reference Groups as Setters of Roles
Roles are behavior patterns that people are expected to carry out based on the positions they hold
within groups. Members of the group expect certain behaviors and feel the need to conform to
them.
As a family member, she may perform the role of parent, nurturing, supporting, and disciplining her
children.

 Reference Groups as Information Sources

When a reference group is used as an information source, individuals obtain and use all types of
information from group members. Information is gathered either verbally or in writing from the
group or by direct demonstration, instruction, or observation of group members. Members become
authoritative sources for all kinds of information.

 Reference Groups as Normative Influences

We noted earlier that groups have normative systems. Members of the group are influenced by the
system. Individuals act in ways that will meet the normative system expectations of the group. The
reward for this conforming behavior is increased group acceptance. If norms are not accepted or
acted on, rewards may be withheld or sanctions imposed.

 Reference Groups as an Expression of Self-Value

Reference groups can also draw people to them because these organizations have values, beliefs,
attitudes, images, and lifestyles that match their own. Individuals tend to join groups whose
characteristics are in line with their own or groups with whom they wish to become more identified.
Individuals can also, in turn, use their membership in these groups to confirm their own self-value as
they relate to the greater society.

Celebrities
Being famous offers some advantages such as financial wealth and easier access to things that are
more difficult for non-famous people to access, such as the ability to more easily meet other famous
or powerful people, but that being famous also often comes with the disadvantage of creating the
conditions in which the celebrity finds themselves acting, at least temporarily (although sometimes
over extended periods of time), in a superficial, inauthentic fashion.