Group Dynamics of Consumer Behavior

1. CONSUMER BEHAVIOURC
AN ASSIGNMENT ON
GROUP DYNAMICS: REFERENCE GROUP / FAMILY /
FRIENDS
PRESENTED BY
SOUMYA KATIYAR
JIM, NOIDA

2. A group may be defined as two or more people who
interact to accomplish either individual or mutual goals.
Face to
face
Interact
ion
Commo
n Fate
Recogni
tion by
other
Inter
Depend
ence
Two or
more
persons
Common
Goal
GROUP
GROUP

3. c
 Group dynamics is a study of groups, and a general term for
group process
 It concerns how groups are formed, what is their structure
and which processes are followed in their functioning
 It is relevant to groups of all kinds – both formal and
informal
 The study of group dynamics can be useful in understanding
decision-making behavior
GROUP DYNAMICS

4. n
 Membership Group
 A group to which a person either belongs or would qualify or
membership in
 In this group, members approximately are from same age,
social status, and interests
 Symbolic Group
 A group in which an individual does not qualify to be a
member of the group but acts like a member by adopting the
group’s value, attitude and behavior
 The members of this group mostly are from different age
social status or interest
Classification of Groups of Membership Status

5.  Normative Group
 When we confirm to group norms in order to belong to that
group
 Example: SAT Exam – It’s a standardized test of academic
potential taken by high school juniors and seniors around the
United States
 Comparative Group
 Members of group that are important to a customer serve as
bases for comparison about product choice, brand, product
usage, activities, lifestyle and so on
 This influences the specific brands one purchase rather the
broader product class level decisions
 Comparative reference group serves as benchmark for
specific defined attitudes or behavior

6. Consumer Related Reference Groups:
 Friendship Groups
 Friendship group are typically classified as informal group
 Seeking and maintaining friendship of a basic drive of most people in this
group
 Shopping Groups
 Two or more people who shop together whether for food or clothing,
simply to pass the time, can be call a shopping group
 Work Group
 A group who do work together to earn money at the same place more
than 35 hours per week.
 There are two types of work group:
 Formal Group
 Informal Group

7.  Virtual Groups
 A virtual team is a group of individual who work with link
strengthened by web of communication technology
 They work across time, space and organizational boundaries
 Brand Communities
 A brand community is a community formed based on attachment
to a product or marquee
 Consumer Action Groups
 The Consumer Action Group (CAG) consists of volunteer consumers
advocating for changes that are important for people with
disabilities
 The Consumer Action Group's mission is to advocate for issues that
affect individuals in the disability community

8. Reference Group Appeals
 A variety of other promotional strategies can function creatively
as frames of reference for consumers
 e.g. The All India Council for Technical Education (AICTU) for
PGDM and Food Safety and Standards Authority of India (FSSAI)
for food
Functions of Family
 Provide Economic Well Being
 Provide Emotional Support
 Provide Suitable Lifestyle
 Provide Social Relationship
 Provide Religious Value
 Provide Interpersonal skills

9.  Initiators – Initiate consumption behavior
 Information Gatherers – Research alternatives
 Gatekeeper – Control flow of information to other members
 Influencer(s) – Provide information about s good or service to
other members
 Deciders – Have power to make final buying decision
 Buyers – Member(s) who actually make purchase
 Preparers – Transform product into useable form
 Users – Family members who use the good or service
 Maintainer – Responsible for maintenance of good
 Disposers - Responsible for disposal of good/service
Consumption Related Roles

10.  Families constitute an important economic and social unit that
affects consumption decisions
 Family has one of the strongest, immediate, and most pervasive
effects on consumer’s behavior
 It is considered as a significant decision-making unit, due to the
large quantity of products and service
 As in 1970, first preference was given to husbands and wives on
the family decisions
 But now a days, children play a big role in making the decision
 They play a role as an initiator and try to influence their parent
to buy the product or service
Dynamic of Family decision making

11. Young Adults, No
Child
Families With Young
Child <7 Years Old
Families With Young
Child 8 - 12 Years Old
Families With Young Child
>13 Years Old
Families With Working
Age , Adult Child
Elderly Couple
Family Life Cycle (FLC)

12.  Activities, Interests and Opinion (AIO)
F
 This method facilitates defining the target market beyond
simple demographic or product usage variations
 Marketers can use psychographic information to emphasize
features in a product that fits with a person’s lifestyle
 Provides useful input to advertisers regarding a much richer
mental image of target customers
 Helps marketers identify new product opportunities, draft
media strategies by understanding how a product fits or does
not fit into consumer lifestyle
Marketing Implications

13.  Product Packaging
l
 Helps to promote products
 Differentiate products from rivals
 Key part of brand image
 Aids identification and recognition
 Shape, color, size relate to customer motivation
 Key factor in consumer decision making
 Medium of advertisement and sales promotion message
FOCUS

14.  Place (Store Layout)
n
 Place of product can change the customer behavior
 The position of the location should be based on the
customer profile
 The location should be accessible to the customers
 It must me near by to the suppliers of the stores

15.  Marketing Communication
 Marketing communication is a process of planning, executing and
monitoring the brand message that create customer relationship
 It is a coordination of all marketing communication tools avenues
and sources within a company
 It is helpful to business to business interaction
 It I also helpful for marketing channel communication and
customer focus communication
 Meeting a common set of objectives for a brand
 Interaction over time with regard to customers

16.  This is an Act of the Parliament of India enacted in 1986 to protect
the interests of consumers in India
 The act was passed in Assembly in October 1986 and came into
force on 24 December 1986
 It makes for the establishment of consumer councils
 These Councils are established at the national, state and district
level to increase consumer awareness
 The right to be protected against the marketing of goods and
services which are hazardous to life and property
 The right to be informed about the quality, quantity, potency,
purity, standard and price of goods or services
CONSUMER PROTECTION ACT
(CP ACT)