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Reference Groups and Family Influences Consumer Problems and Recognition • Consumer problem: Discrepancy between ideal and actual state--e.g., consumer: – has insufficient hair – is hungry – has run out of ink in his or her inkjet cartridge • Problems can be solved in several ways--e.g., stress <----- vacation, movie, medication reduction Purchase Decision Process Need Recognition Perceiving a value Information Search Seeking a value Cultural, Social, Individual and Psychological Factors affect all steps Evaluation of Alternatives Assessing value Purchase Buying value Post-purchase Behavior Assess value in consumption Need Recognition Marketing helps consumers recognize an imbalance between present status and Internal Stimuli and External Stimuli preferred state Preferred State Present Status Information Search: Seeking Value Internal SearchRecall information from memory External Search information from outside environment Non-marketing controlled Marketing controlled Approaches to Search for Problem Solutions INTERNAL Memory Thinking EXTERNAL Word of mouth, media, store visits, trial CATALOG PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR Motivation – what stimulates behavior to satisfy a need Maslow’s Hierarchy of Needs PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Perception Selective Exposure Consumer pays attention to certain stimuli and ignores others Selective Comprehension Consumer interprets info so that it is consistent with his beliefs Selective Retention Average consumer only remembers 30% of information heard Sociocultural Influences on Consumer Behavior Social Influences on Buying Decisions Reference Groups Opinion Leaders Family Members What Is a Group? • Two or more people who interact to accomplish either individual or mutual goals • A membership group is one to which a person either belongs or would qualify for membership • A symbolic group is one in which an individual is not likely to receive membership despite acting like a member Reference Group A person or group that serves as a point of comparison (or reference) for an individual in the formation of either general or specific values, attitudes, or behavior. Major Consumer Reference Groups SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR Reference groups are people to whom an individual looks as a basis for self-appraisal or as a source of personal standards. Direct – Face to face Reference Groups Primary Secondary Indirect– No Personal Contact Aspirational Dissociative Broad Categories of Reference Groups • Normative Reference Groups • Comparative Reference Groups Indirect Reference Groups Individuals or groups with whom a person identifies but does not have direct face-to-face contact, such as movie stars, sports heroes, political leaders, or TV personalities. Reference Group Influences on the Consumption Process Types of Reference Group Influence Reference group influence can take three forms: 1. Informational Influence 2. Normative Influence (utilitarian influence) 3. Identification Influence ( value expressive) Groups degree of dependence depends on following factors: • Product/trademark’s degree of visibility by the group members • Product’s degree of necessity • Person’s degree of involvement • Certainty of buyers during the buying process • Conspicuousness of products • conformity Factors Encouraging Conformity: A Reference Group Must ... • Inform or make the individual aware of a specific product or brand • Provide the individual with the opportunity to compare his or her own thinking with the attitudes and behavior of the group • Influence the individual to adopt attitudes and behavior that are consistent with the norms of the group • Legitimize the decision to use the same products as the group Selected Consumer-Related Reference Groups • • • • • • Friendship groups Shopping groups Work groups Implicit Groups or Brand Communities Virtual groups or communities Consumer-action groups Selected Consumer-Related Reference Groups The Internet has created many friendship and shopping groups. Brand Communities Reference Group Appeals • • • • • • Celebrities The expert The “common man” The executive and employee spokesperson Trade or spokes-characters Other reference group appeals Households Family Households: Married couple, Nuclear family, Extended family Households Nonfamily Households: Unmarried couples, Friends/ Roommates, Boarders The Family Life Cycle • Traditional Family Life Cycle – Stage I: Bachelorhood – Stage II: Honeymooners – Stage III: Parenthood – Stage IV: Postparenthood – Stage V: Dissolution • Modifications - the Nontraditional FLC SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR Family Life Cycle