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Юриспунденкция

Social factors of consumer behavior.

External factors influencing the consumer behavior

What is consumer behavior?

Approaches to classify factors influencing the consumer behavior

Cultural factors of consumer behavior.

Social factors of consumer behavior.

The work with the consumer is the main task of employees in service sector. Understanding consumer behavior is vital for success in your business.

Consumer behavior can be defined as the process by which individuals search for, select, purchase, use, and dispose of goods and services, in satisfaction of their needs and wants.

Chambers, Chacko, and Lewis have summarized the basic beliefs about consumer behaviour into five premises. These premises provide a good basis on which to start a discussion of consumer behaviour.

Premise 1 : Consumer behaviour is purposeful and goal oriented. Sometimes it is difficult to understand, what makes the consumer choose this or that product. But what looks like irrational behaviour to a manager is completely rational to a consumer.

Premise 2 : The consumer has free choice. Consumers do not have to pay attention to your marketing communications. Messages are processed selectively. In most cases the consumer has several products from which to choose.

Premise 3 : Consumer behaviour is a process. Marketers need to understand the process.

Premise 4 : Consumer behaviour can be influenced. By understanding the purchase decision process and the influences on this process, marketers can influence how consumers behave.

Premise 5 : There is a need for consumer education. Consumers may act against their own interests because of a lack of knowledge. For example, some people think they can handle their alcohol and drive safely after excessive drinking. Marketers have a social responsibility to educate consumers e.g. giving information about the harm of drinking or smoking.

Scientists say that consumer behavior involves not only buying tangible products as bath soap or cars, but also the use of services, experiences, ideas such as going to the dentist, attending a concert, taking a trip or donating to charity.

Actual purchasing is only one stage of the Consumer Buying Decision Process, in general there are 6 stages of it:

Problem Recognition (awareness of need)--difference between the desired state and the actual condition.
Information search:

Internal search, memory.
External search if you need more information.

Evaluation of Alternatives--need to establish criteria for evaluation, features the buyer wants or does not want.
Purchase decision--Choose buying alternative, includes product, package, store, method of purchase etc.
Purchase--May differ from decision, time lapse between 4 & 5, product availability.
Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction.

As we mentioned above the consumer behavior can be influenced. There are different approaches to describe factors influencing consumer behavior. A classic example is the classification suggested by Philip Kotler. He divided influencing factors into four groups:

1) Cultural

2) Social

3) Personal

4) Psychological

CULTURAL factorsinclude a consumer’s culture, subculture and social class. These factors are often inherent in our values and decision processes.
SOCIAL factors include groups, family, roles and status. This explains the outside influences of others on our purchase decisions either directly or indirectly.
PERSONAL factors include such variables as age and lifecycle stage, occupation, economic circumstances, lifestyle (activities, interests, opinions and demographics), personality and self concept. These may explain why our preferences often change as our `situation' changes.
PSCHOLOGICAL factors affecting our purchase decision include motivation (Maslow's hierarchy of needs), perception, learning, beliefs and attitudes.

Cultural and social factors are external, personal and psychological are internal. External factors influence bigger groups of people, internal factors can be very different and individual.

Today we use the word culture in our everyday life and this word is related to different things like art objects or traditions, ways to dress and communicate. Culture includes nearly all spheres of our life and gives us the possibility to decide what is right or wrong. For example we should communicate with old people polite and with respect, it is a norm in our culture, this behavior is appreciated.

Culture is set of material objects (like paintings, or things in everyday life) and nonmaterial objects (etiquette, behavior), which get a meaning according to the value system, which is characteristic for this culture.

The idea about what is right or wrong or important is called value. System of values is the base of each culture.

There are universal values, e.g. freedom and dignity of a person. And some values can vary from one culture to another, e.g. collectivism – which is more important for oriental cultures and individualism, which is more important for European cultures. In oriental cultures it is wrong to express a critical position when you communicate with your colleagues or business partners, or just to say directly “no”. But it’s absolutely possible, even necessary if you communicate with Germans, who appreciate honesty and directness. In Western countries it is right when children leave home early and earn their living. In India, people still value joint family system and family ties. Children in India are conditioned to stay with their parents till they get married as compared to foreign countries where children are more independent and leave their parents once they start earning a living for themselves.

Another example be silent and wear dark clothes is norm of behavior by funeral. This behavior manifest respect to the situation and sorrow. But not in all cultures people wear dark clothes, in Asian cultures white color expresses sorrow.

Other characteristics of culture are:

· Culture is a collection of learned behavior. We learn from our childhood how we should behave in different situations. For example be silent in a museum or library. Say “Hi” to friends but “Good afternoon” to colleagues or professors.

· Culture is traditional. The norms of culture have been developing and changing within long periods of history. Some norms are currently no more important.

· Culture is created. There is an opposition between the words “culture” and “nature”. “Nature” is what we get from our birth, our abilities and power. But culture is not an instinct: we learn the norms which are created by the society and they give the possibility to realize our natural talents.

· Culture can be changed. When people change the context of living e.g. go to another country, they can change their behavior.

· Culture is organization and convergence. All norms of culture are connected with each other and build a system.

· Culture is shared by the members of the community.

· Culture determines needs.

Now scientists agree that the cultural factor has a very big impact on business life, it affects communication between business partners and the way marketers appeal to the buyers.

Cultural factors have a significant effect on an individual’s buying decision and determines what is acceptable with product advertising.

Mc Donald’s is a brilliant example of adaptation to the specificities of each culture and each market. Well aware of the importance to have an offer with specific products to meet the needs and tastes of consumers from different. cultures, the fast-food giant has for example: a McBaguette in France (with french baguette and Dijon mustard), a Chicken Maharaja Mac and a Masala Grill Chicken in India (with Indian spices) as well as a Mega Teriyaki Burger (with teriyaki sauce) or Gurakoro (with macaroni gratin and croquettes) in Japan.

While all the ingredients used by McDonald’s in arabic and muslim countries are certified halal. The fast food chain not offering, of course, any product with bacon or pork.

Each culture further comprises of various subculturesaccording to geographic regions or human characteristics such as age and ethnic background.

The subcultures are often considered by the brands for the segmentation of a market in order to adapt a product or a communication strategy to the values or the specific needs of this segment.

For example in recent years, the segment of “ethnic” cosmetics has greatly expanded. These are products more suited to non-Caucasian populations and to types of skin pigmentation for african, arab or indian populations for example.

Example:

Tim wanted to purchase a laptop for himself. He went to the nearby store and purchased a Dell Laptop. The reason why he purchased a Dell Laptop was because all his friends were using the same model and were quite satisfied with the product.

So, we ask our friends about their opinion towards the brands. We tend to pick up products that have been recommended us by other people. Very many people can’t do shopping alone, even if they buy clothes, and in case of more expensive purchases people very often make a decision according to their family members’ opinion.

Social Factors influencing consumer buying decision can be classified as under:

Reference Groups
Immediate Family Members
Role and Status in the Society

What is a reference group?

Every individual has some people around who influence him/her in any way. Reference groups comprise of people that individuals compare themselves with: - co-workers, family members, relatives, neighbors, friends, seniors at workplace often form reference groups.

Reference groups have direct or indirect influence on one’s beliefs and attitudes. A teenager buys shoes that are in accordance to the tastes of his friends. A more matured person would choose more durable or conservative shoes.

Reference groups are generally of two types:

1) Primary Group - consists of individuals one interacts with on a regular basis.

Primary groups include:

Friends
Family Members
Relatives
Co Workers

2) Secondary Groups - Secondary groups share indirect relationship with the consumer. These groups are more formal and individuals do not interact with them on a regular basis, Example - Religious Associations, Political Parties, Clubs etc.

The relationship to groups can be different and affect the customer in different ways. For example, scientists divide between the group, to which one really belongs and aspirational groups - to which he or she would like to belong. For example richer people or celebrities. Also there are disassociation groups – which the customer doesn’t want to belong to- e.g. elder people.

Family is the most basic group a person belongs to. Family plays an important role in influencing the buying decisions of individuals.

Marketers must understand:

· that many family decisions are made by the family unit

· consumer behavior starts in the family unit

· family roles and preferences are the model for children's future family (can reject/alter/etc)

· family buying decisions are a mixture of family interactions and individual decision making

· family acts as interpreter of social and cultural values for the individual.

Husband-wife involvement in purchases varies widely by product category. Husbands are more dominant in purchasing cars and insurances, wives are more dominant in purchasing of household goods.

A consumer who has a wife and child at home would buy for them rather than spending on himself. An individual entering into marriage would be more interested in buying a house, car, household items, furniture and so on. When an individual gets married and starts a family, most of his buying decisions are taken by the entire family.

A very important aspect of understanding the impact of families on buying behavior is the family life cycle(Blackwell, Miniard & Engel, 2001). Most, though certainly not all, individuals and families pass through an orderly sequence of life stages that can be used to understand their purchasing patterns.

A typical adult starts in the bachelor stage of being young and single and then moves to being part of a married couple with children.

· In the stage of young and single people have relatively low income. At this stage, people don’t have many financial obligations, therefore, many of them spend most of their income on cars, furnishings, fashions, recreation, alcoholic beverages, and vacations. For the singles with young child, they may spend more on day care and baby product.

· In a Newly Married Stage, because they have two incomes source, therefore these families have the highest purchase rate on durable goods, such as furniture and appliances, and appear to be more susceptible to advertising.

· A Full Nest is the stage which the families have their first child. At this stage, most families decide that one parent stay home to care for the child. This usually leads to a decline in disposable income, therefore, effect the consumption pattern. Families start to spend on children product, such as furnishings for the child, baby food, toys and skates.

· The next stage is a Full Nest when the youngest child has reached school age, the family’s financial position has improved since both parents usually working at this stage of FLC. The consumption patterns continue to be influenced by the children. Discount department stores, mass merchandiser and warehouse club stores are popular for families in this stage.

· When the parents enter their 40s, the financial position continues to improve because the children earn their money from part-time employment. The family starts to purchase another car, computer, and some luxury appliances.

· For those people who marry and do not have children have more disposable income to spend on travel and entertainment.

· In the Empty Nest stage, family is most satisfied with its financial position. The couple can spent on what they want rather than what the children need. They usually spend on home improvements, luxury items, vacations, and second homes. Some of them are looking for fun educational opportunities.

· The following stage is when the income earners have retired. The expenditures become more health oriented, also some travel consumptions.

Understanding the family life cycle is beneficial for marketers because it helps in defining target customers.

Among various members in a reference group, there are some who are referred to as opinion leaders. Members respect the views of an opinion leader, and seek his counsel and guidance on a particular issue. An opinion leader can influence purchase decisions because members respect them for their expertise, or their social standing.

An opinion leader is a very credible source of word-of-mouth communication, and most of them ensure that their views on issues are known to members of the reference group. Their credibility is higher, as they are part of the reference group and do not have vested interests in selling the product to others, unlike marketers.

It is extremely difficult to identify opinion leaders as they appear to be like other members of their group. They do not stand out, though their influencing power is stronger.

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