This document discusses external influences on consumer behavior, including groups, culture, subculture, family, social class, and opinion leadership. It provides a simple model of consumer behavior and describes how internal and external factors are interconnected and influence the consumer decision making process. Groups like reference groups, membership groups, and aspirational groups are discussed. Culture and subculture pass values from generation to generation and influence consumer norms. Family is the most important reference group and its life cycle stages impact consumption. Social class determines consumer lifestyles and purchasing tendencies. Opinion leaders exert personal influence and are sought for advice.

1. MODULE II– BBA 3(XAVIER’S)
External Influences in
Consumer Behavior

2. Consumer
Purchase
Decision
Motives
Personality
Needs
Perception
Learning
Attitudes
Business
Economic
Family
External Factors
Internal Factors
SIMPLE MODEL OF CONSUMER BEHAVIOR

3. INTRODUCTION
 Consumer purchasing decisions are often affected by factors that are
outside of their control .
 Consumers are faced with many external influences, including an
individual’s culture, subculture, household structure, and groups that
he/she associates with.
 Marketers and business owners call these external influences because
the source of the influence comes from outside the person rather than
from inside.
 Both internal and external factors are inter connected and work together
to assist the consumer decision making process.

4. INFLUENCING FACTORS IN CONSUMER DECISION MAKING

5. GROUP BEHAVIOR
 Man is social animal who loves to be in groups. Groups
represent two or more individuals who share a set of norms,
values, or beliefs and interact to accomplish individual or mutual goal.
 When do Group Exert Influence?- The group influence on an individual’s
buying behavior depends on three factors-
 Attitude towards the group: This includes Pride, Status, etc.
 Nature of the group: This includes, Cohesive, Frequently interacting,
Exclusive membership.
 Nature of the Product: This includes visibility of the product,
Uniqueness of the product.
 Examples: Harley Davidson Bike group, Friends connection, Alumni of
an institute, etc.

6. TYPES OF GROUPS

7. REFERENCE GROUP
 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 behavior.
 Often a distinction is made between group and reference group. Group
is defined as two or more individuals who share a set of norms, values,
or beliefs and have certain implicit and explicit relationship. Where as
reference group is one whose presumed perspective or values are being
used by an individual to take decisions.
 Examples: Shopping with friends, family, educational
decisions.

8. Positive
membership
Aspiration group
Disclaimant group Dissociative group
Membership Non-membership
Types of Membership
Positive
membership
Aspiration group
Disclaimant group Dissociative group
Primary
Secondary
Informal Formal
Anticipatory
Symbolic
Types of aspiration group
TYPES OF REFERENCE GROUP

9. TYPES OF REFERENCE GROUP
 An individual can be a member of a reference group such as the family
and would be said to be part of a membership group
 The same individual may aspire to belong to a cricket club and would be
said to be part of an aspiration group.
 A disclaimant group is one to which an individual may belong to or join,
then reject the group’s values.
 Also an individual may also regard the membership in a specific group
as something undesirable and to avoidable. Such a group is a
dissociative group.
 Primary Informal group: It includes family, peer group, friends etc.
 Secondary Informal group: Women kitty party, sports group, etc
 Primary formal group: Business group, working colleagues etc.
 Secondary formal: Only frequently meet are not so cohesive in nature.

10. CULTURE
 Culture influences consumers through the norms and values established
by the society in which they live.
 It is the broadest environmental factor that influences consumers
behavior.
 Culture is inculcated- It is passed down from one generation to another
through institutions such as family members and religion.
 As culture evolves, it may be possible to associate benefits of a product
or brand with new values or it may be necessary to change the product if
that value is no longer gratifying the society. Example: Movies, TV
serials, etc.

11. SUB CULTURE
 A sub culture is a segment within a culture that share a set if meanings,
values or activities that differ in certain respects from those of the overall
culture.
 Sub culture analysis enables the marketing manager to focus on beliefs,
values, and customs shared by member of a specific sub group make
them desirable candidates for special marketing attention.
 Sub culture tend to transfer their beliefs and values
from generation to generation. Example: Youths

12. Category Sub- Culture
Geography North Indian, South Indian, East Indian
Regional Gujarati, Marathi, Punjabi, Tamilians,
Malayalees, etc.
Age Children, Teenagers, Youth, Working
professional, etc.
Elderly
People
50 Plus.
Women Children, Teenagers, Youth, Married women,
etc.
Caste Muslims, Christians, Hindu, etc.
EXAMPLES FOR SUB CULTURE

13. FAMILY
 Family is defined as a group of two or more
people related by birth, marriage or adoption
and residing together.
 House hold is a family and any
unrelated person residing in the same house
and consuming food from a common kitchen
at least once a day. Eg: Hostel
 Family consists of Parent, Siblings, Spouse, Grandparents,
Relatives, etc.
 Family by far is the most important reference group. It is also
the most basic consumption unit for most consumer goods.

14. FUNCTIONS OF FAMILY
Emotional
Support
Suitable
Life Style
Social
Relationships
Morals and
Ethical
Values
Religious
Values
Interpersona
l Skills
Economic
Well Being
Provides

15. FAMILY LIFE CYCLE STAGE
Bachelor stage Young, single person <35
Income Expense
Newly married Young couples no children
Income Expense
Full Nest I Young couples with <6 yrs
children Income Expense
Full Nest II Young couples with 6-12 yrs
children Income Expense
Full Nest III Old married couples with
dependent teenage Income Expense
Empty Nest I Old married couples with no
children living Income Expense
Solitary
Survivor
Older single person
Income Expense

16.  A consumer's social class refers to his or her standing
in society. It is determined by a number of factors,
including education, occupation and income.
 While income is an important indicator of social class,
the relationship is far from perfect since social
class is also determined by such factors as place
of residence, cultural interests and world-view.
SOCIAL CLASS

17. SOCIAL CLASS CATEGORY
Life-style Orientations & Purchasing Tendencies of the Different Social
Classes.
Social Class Life-style Orientation Purchasing Tendencies
Upper Class Good taste
Graceful living
Good Things in life
Individual expression
Interest in arts and culture
Quality merchandise
Expensive hobby and recreation
equipment
Travel
Art
Middle Class Respectability
Conformity
social esteem
Items in fashion
Items related to self presentation
Nice clothing, and home items.
Working Class Fun oriented
Focus on Possessions
Work related life
Newest appliances
Sporting events
Food items
Lower Class Close family relationships
Not interested in world affairs
Neighborhood oriented
Readily available products
Status symbols

18. OPINION LEADERS HIP
 Opinion leaders are those people who, in a given situation, are able to
exert personal influence.
 They are the ones most likely to influence others through word-of-mouth
communication because others seek advice and information from them
.
 In marketing context opinion leaders are those people who have used
the product by them self.
 Young consumers often take the assistance of opinion leaders in there
purchase.

19. OPINION LEADERSHIP FLOW OF INFORMATION

20. DHANYAWAD