Group & Situational Effect
___Decision Making part 2___
Andrew - Nawel - Perry

What are the
external factors
that influence our
purchase ?

What is the point of this presentation ?
Are consumers rational ? Or are they influenced ?
Marketers’ Roles :
⇒ Fulfill consumers Wants and Needs
⇒ Understand their Choices
⇒ Sell our product easily

Situational Effect
on
Consumer Behavior

A consumption situation includes :
- a Buyer
- a Seller
- a Product or Service
As well as other factors...

A consumer will make different purchase depending on
⇒ The mood of the consumer
⇒ If the is consumer alone or not
⇒ If he is in a hurry or not
⇒ How he will use the product

DAY RECONSTRUCTION METHOD
People’s mood increased gradually throughout the day and is punctuated
by occasional anxiety, anger and frustration.
Activities such as watching tv or
socializing make people happy
Activities such as commuting or
housekeeping make them feel
unhappy, annoyed and stressed

The self-image
A person’s self image is the idea, conception or mental
image one has of oneself
It will tend to influence what the he or she will buy.
⇒ Some consumers imitate the people they admire and may buy the same
brands
⇒ Others will buy different product depending on how they want people to
see them.
(Eg: Guy on a
date Vs with
friends)

Usage of the product
Consumers make
different purchase
choices depending on
how they plan to use it
(Eg : Shoes)

The importance
of
Time

Time, one of our most important resource
● Time is an important factor in decision making
● It is an economical variable
⇒ We try to maximize satisfaction by dividing time between
activities
⇒ Different Time Styles
⇒ Same perception of time poverty

It is the subjective experience of the passage of time
● Five time perspectives metaphors :
⇒ Time is a pressure cooker (shopping is stressful)
⇒ Time is a map (research before buy)
⇒ Time is a mirror (loyal consumer)
⇒ Time is a river (spontaneous shoppers)
⇒ Time is a feast (variety seekers)
Psychological time

Waiting Time
Queuing theory is the mathematical study of waiting in line.
The experience when we wait has a big effect on our evaluations of
what we get at the end of the wait.

The Shopping
Experience

Physical environment
Many environmental factors influence decision-making
Marketers have control over some of these, such as atmospherics
⇒ Wall colors
⇒ Smells
⇒ Sounds
⇒ Store layout
⇒ The number of consumers
( packed or empty store ?)

Shopping orientation
We segment people in term of their shopping orientation (ie,
view of shopping)
Why people shop ?
- Social experience
- Sharing of common interest
- Instant Status
- The thrill of the Hunt

E-Commerce: Clicks Versus Bricks
Showrooming
visiting a store to examine
a product before buying it
E-Commerce will replace
traditional retailing

Benefits
● Shop 24 Hours
● Less traveling
● Lower Prices
● More choices of product
● Receive relevant information
● Fast delivery
● Virtual auctions
E-Commerce
Limitations
● Lack of Security
● Fraud
● Can’t touch items
● Expensive to order & then return
● Exact colors may not reproduce
on computer monitors

Retailing as Theater
Landscaping themes
Association with Images of nature, earth, and animals
Marketscape Themes
Association with man-man made places
Cyberspace Themes
Images of information & communication technology
Mindscape Themes
Abstract ideas & concepts, fantasy, and spiritual overtones

Store Image
Store have “Personalities”
● Location
● Merchandise suitability
● Knowledge & congeniality of sale staff

Atmospherics
“Conscious designing of
space and various
dimensions to evoke
certain effects in buyers”
-- M.R. Solomon p. 363--

In-store Decision Making
Mental budgets
Typically composed of both an itemized portion
Mobile shopping apps
Imaginative new ways for retailers to guide shoppers

Unplanned buying
recognize a new need while in a store
Spontaneous Shopping
Impulse buying
experience an urge that you can’t resist

Interaction Styles
● Nonassertive person (non-social)
● Assertive person (stand-out)
● Aggressive person (rude)
Salesperson role
● Knows Customers traits
● And preferences better than an
inexperienced salesperson
Dyadic encounter
two parties (buyer and seller) reach an
agreement about roles of each
participant
The salesperson: A lead Role in the Play

The Social Power
___ of ___
Group
Social Power
The capacity to alter others’ action
6 types
● Reference
● Information
● Legitimate
● Expert
● Reward
● Coercive

Reference Power
You admire a person or a group,
then you try to copy their behaviors
Information Power
They know things others love to know
They have Information Power!

Legitimate Power
Positional or Authoritical Power
Expert Power
You follow his recommendations
because he’s the expert!
Police Soldier Professors

Reward Power
Provide positive reinforcement
Coercive Power
Influence by social or physical
intimidation

Informational
“You use the brand because it has good
reviews from your friends”
Utilitarian
“You use the brand to satisfy your family’
s expectations of you”
Value-Expensive
“You think using the brand will enhance
your image in those girls’ eyes”
Reference Group
Who can significantly influence
people’s evaluations, aspirations;
or behaviors

Name letter effect
All things equal, we like people who share our names or even initials better than
those who don’t
Platypus
My name is Perry,
so I will like...
Pizza Hut
Peter Pennsylvania

Normative Influence
Reference groups that help set & enforce
fundamental standards of conduct
Comparative Influence
Reference groups that influence decisions
about specific brands & activities
Parents may influence you in attitudes towards
marriage or future career
Your sorority sisters may influence your decisions on
newest clothes brands

“Brandfest”
Brand-sponsored events intended to promote strong
brand loyalty among customers
Who’s wanna join Apple’s community?
“Collective Value Creation”
Brand community members work together to develop
better ways to use & customize products
Brand Community
Group of consumers who share a set of social relationships based on usage or interest in products

Consumer Tribe
Group of people who share a lifestyle and can identify with each other because of a shared
allegiance to an activity or a product.
Consumer Tribe: specific product - Brand community: specific brand
Tribal Marketing Strategy
Link a product’s identity to an activity-based “tribe”

Membership Reference Group
People you actually know
Propinquity
Closer physical distance - closer relationship
Mere Exposure
The more you see them - the more you like them
Group cohesiveness
As group’s value to you increase - the more they
can influence your decision
Aspirational Reference Group
You don’t know them but you admire them
anyway!
Application
Brand ambassador

Deindividualization
When individual identities become submerged
within a group
Home shopping party
When a brand representative make a sales
presentation to a group gathering at a member’
s house - direct selling
Group Shopping
We get away with more when we do it
in a group

Cultural Pressures
Different cultures have different level of conformity
Fear of deviance
“They fear of being boycotted if they do something
different”
Commitment
The more you commit - the more you conform
Group unanimity, size & expertise
Larger & more powerful group has more conformity
Susceptibility to interpersonal influence
People’s need to have others think highly of them
Conformity
People change in beliefs / actions to
react to group pressure
NORM - informal rule, govern
what is right or wrong
WHAT INFLUENCE YOUR CONFORMITY?

Thank you
~~~ for ~~~
listening