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Reference Groups and Family Influences

Reference Groups and Family Influences. Consumer Problems and Recognition. Consumer problem: Discrepancy between ideal and actua l state--e.g., consumer : has insufficient hair is hungry has run out of ink in his or her inkjet cartridge

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Reference Groups and Family Influences

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  1. Reference Groups and Family Influences

  2. 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 reduction <----- vacation, movie, medication

  3. 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 Purchase Decision Process

  4. Marketing helps consumers Internal Stimuli Internal Stimuli recognize an and and imbalance between External Stimuli External Stimuli present status and preferred state Preferred State Present Status Need Recognition

  5. Information Search: Seeking Value • Internal Search- Recall information from memory • External Search information from outside environment Non-marketing controlled Marketing controlled

  6. Approaches to Search for Problem Solutions INTERNAL Memory Thinking EXTERNAL Word of mouth, media, store visits, trial CATALOG

  7. PSYCHOLOGICAL INFLUENCESON CONSUMER BEHAVIOR • Motivation – what stimulates behavior to satisfy a need Maslow’s Hierarchy of Needs

  8. Selective Exposure Consumer pays attention to certain stimuli and ignores others SelectiveComprehension Consumer interprets info so that it is consistent with his beliefs Selective Retention Average consumer only remembers 30% of information heard PSYCHOLOGICAL INFLUENCESON CONSUMER BEHAVIOR • Perception

  9. Social Influences on Buying Decisions Reference Groups Opinion Leaders Family Members Sociocultural Influences on Consumer Behavior

  10. 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

  11. 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.

  12. Major Consumer Reference Groups

  13. Primary Direct – Face to face Secondary Reference Reference Groups Groups Aspirational – 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. Indirect- No Personal Contact Dissociative

  14. Broad Categories of Reference Groups • Normative Reference Groups • Comparative Reference Groups

  15. 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.

  16. Reference Group Influences on the Consumption Process Types of Reference Group Influence Reference group influence can take three forms: Informational Influence Normative Influence(utilitarian influence) Identification Influence( value expressive)

  17. 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

  18. 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

  19. Selected Consumer-Related Reference Groups • Friendship groups • Shopping groups • Work groups • Implicit Groups or Brand Communities • Virtual groups or communities • Consumer-action groups

  20. Selected Consumer-Related Reference Groups The Internet has created many friendship and shopping groups.

  21. Brand Communities

  22. Reference Group Appeals • Celebrities • The expert • The “common man” • The executive and employee spokesperson • Trade or spokes-characters • Other reference group appeals

  23. Households Family Households: Married couple, Nuclear family, Extended family Households Nonfamily Households: Unmarried couples, Friends/ Roommates, Boarders

  24. 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

  25. SOCIOCULTURAL INFLUENCESON CONSUMER BEHAVIOR • Family Life Cycle

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