Consumer buying behaviour - Group Influences

1. External Influences
culture
subculture
demographi
cssocial
status
reference
groups
family
marketing
activities

2. Demographics
Describes population in terms of its size,
distribution and structure.
Population size and distribution
occupation
Education
Income
Age
Social Stratification

3. GROUP INFLUENCES
Reference Groups
Reference group influences--->
a) Informational influence
b) Normative influence
Roles
Role Load
Evolving Roles
Role Conflicts & Role Overload
Group Communication

4. Group: two or more individuals who share a set of norms , values or
beliefs and have certain implicitly /explicitly defined relationships to
one another such that their behaviors are interdependent
A reference group is a group whose presumed perspectives or values
are being used by an individual as the basis for his or her current
behavior.

5. Informational Influence : occurs when an individual uses the
behaviors and opinions of reference group members as potential useful
gbits of information.
This influence is based on either the similarity of the group
members to the individual or the expertise of the influencing group
member.
Normative Influence :(utilitarian influence) occurs when an individual
fulfills group expectation s to gain a direct reward or avoid sanctions.
Normative influence is strongest when individuals have strong
ties to the group and the product involved is socially conspicuous.

6. GROUP INFLUENCES
Opinion Leadership:
Moderate
Low
High
Moderate
Product Knowledge
High Low
High
low
Product/
Purchase
Involvement

7. Group Influence
» OPINION Leader Characteristics
» Diffusion of Innovation.
Time
Fast Diffusion
% of total
group
adopting
innovation
100%

8. Factors Affecting Spread Of Innovation
Type Of group
Fulfillment of felt need
compatibility
complexity
observability
trialability
Perceived risks

9. Factors Affecting The Spread of Innovations.
Type of group : Some groups are more accepting of change than
others. Young affluent and highly educated groups accept change ,
including new products , readily.
Marketing effort:The rate of diffusion is heavily influenced by the
extent of marketing effort involved.
Type of decision : refer to an individual v/s a group decision . The
fewer individuals involved in the purchase decision , the more rapidly
an innovation will spread..
Fulfillment of felt need: The more obvious the need that the
innovation satisfies , the faster the diffusion.
Compatibility: The more the purchase and use of innovation is
consistent with the groups’ values and beliefs, the faster the diffusion
Complexity : more difficult is the innovation to understand and use ,
the slower the diffusion.

10. Observability : The more easily the consumers can see the positive
effects of adopting an innovation , the more rapid the diffusion.
Relative advantage : an innovation either must have a performance
advantage or cost advantage . - Cassettes- CDs- VCDs- DVDs.
Trialability : The easier to have a low cost or low risk trial of the
innovation , the more rapid its diffusion --- > 14 days trial or money
back , test drive for cars.
Perceived risk : The more risk associated with trying an innovation ,
the slower the diffusion. Risks can be social, financial or
physical.

11. Diffusion of Innovation
Characteristics of individuals who adopt an innovation at varying
points in time.
Innovators : venturesome risk takers. Capable of absorbing the
financial and social costs of adopting an unsuccessful product.. They
tend to be younger, better educated and more socially forward.
Early adopters : tend to be opinion leaders in local reference groups.
They are willing to take a calculated risk on an innovation but are
concerned with failure.
Early majority :tend to be cautious with respect to innovations. Adopt
innovation after the innovation has proven successful with others..
Tend to be older, less well educated .
Late Majority : skeptical about innovations. They often adopt more to
social pressures or a decreased availability of previous product than
because of a positive evaluation of the innovation.
Laggards :hate change and are oriented towards the past.

12. Households
Husband-dominant decisions : automobiles, liquor, cigarettes , life
insurance and consumer electronic products.
Wife -dominant decisions : furniture, jewelry,food and home
appliances
Joint- decisions : House, vacation
How household menebers interact== Function (Role specialization of
different household members, degree of involvement each member has
in the product area)
Wives specialized role --- in certain aspects of child rearing ---
hence have a more specialized role in buying children clothing.
Involvement: A spouse interested in electronics as a hobby
/profession probably would greatly influence the purchase of a stereo ,
television or PC.

13. Household Decision Making process for
children’s products
Consumer
(children)
Purchaser
(Parents)
Influencer
(Children)
Information
gatherer
(Parents)
Decision
maker
(Parents,
Children)
Comm.
Targetted at
children (Taste)
Comm. Targeted at
parents ( nutirtion)

14. Internal influences
Emotions
Personality
Perception
Learning
Motives

15. Internal Influence- Personality
DEFN : is an individual’s characteristic response/tendencies across
similar situations.
Major theories of personality
A)) Freudian Theory : Id, Ego, Superego
B) Non- Freudian Theory :
Karen Horney : Individuals classified into 3 personality groups :
1) Compliant -- Individuals who move towards others -- They
want to be appreciated , loved--- peace loving , sober guys.
2) Aggressive : Who move against others--- desire to win /excel
and win admiration.
3) Detached : Who move away from others --- desire
independence , self- sufficiency and freedom from obligation.

16. Internal Influence- Personality
C) Jungian Theory : Jungian inspired psychological dimensions
1) Sensing-Intuiting 2) Thinking- Feeling 3) extrovert -introvert
4) Judging-Perceiving
D) Trait theory : Any distinguishing relatively enduring way in which
one individual differs from another.--- CATELL’s Trait Theory.
E.g : 1) Reserved v/s Outgoing
2) Shy v/s Venturesome
3) Conservative v/s experimenting
4) Relaxed v/s tense
5) Sober v/s happy-go-lucky

17. Internal Influence-Perception
Defn:- The process by which an individual selects , organizes,
interprets stimuli into a meaningful coherent picture of the world.
Stimuli : unit of input to any of the senses (eyes,ears etc.)e.g of
stimuli are ----> product, packaging, Brand name, Advt. Etc.
The study of perception is largely the study of what we subconsciously
add to or subtract from the sensory input to produce our own private
picture of the world.
ABSOLUTE THRESHOLD : The lowest level at which an
individual can experience a sensation is called the absolute threshold.
In simple terms the point at which a person can detect a difference
between “SOMETHING” and “ NOTHING” is that person’s
absolute threshold for that stimuli

18. Internal Influence-Perception
Under conditions of constant stimulation such as “seeing” the same ad
or the same set of hoarding the A.T increases.
Companies change ads or have a series of ads or use different media to
overcome this --- bus shelter, inside trains , on top of auto etc.
DIFFERENTIAL THRESHOLD : The minimal difference that can
be detected between two stimuli. This also called as J.N.D. (Just
Noticeable Difference )
WEBER’S LAW : J.N.D between two stimuli was not an absolute
amount but an amount relative to the intensity of the first stimulus.
The law states : “Stronger the initial stimulus , the greater the
additional intensity needed for the second stimulus to be perceived as
different.”

19. Internal Influence-Perception
E.g ALTO -- cost is 2,50,000
1) Cost goes up by 5000.
2) Cost goes up by 30000.
PETROL PRICE = Rs. 80/litre
1) price goes up by 50 paise
2) price goes up by 5 Rs.
Relevance to Marketing :
companies try to find J.N.D for their products for the following
reasons-
– Reduction in product size , increase in product price or reduction in
quality are not discernible to the public.
– Product Improvements/sales promotional schemes which are discernible.

20. Internal Influence-Learning
Defn : Process by which individuals acquire the purchase and
consumption knowledge and experience they apply to future related
behavior.
Learning
Intentional
(Acquired as a result of
a careful search for
information)
Incidental
(Acquired
without
effort)

21. Learning
Basic elements required for learning
1) Motivation : Acts as a spur to learning with needs and
goals serving as stimuli.
E.g : Person wants to be like Sachin ---> will learn
about cricket , quality of bat, pitch etc.
2) Cues : Stimuli that give direction to motives
e.g -- An ad for a cricket camp will serve as cue for
cricket buffs wanting to improve their game .
Ad ---- CUE

22. Learning
– 3) Response : How individuals respond to a cue.
4) Reinforcement : Increases the likelihood that a specific
response will occur in the future as the result of particular cue.
e.g A student has cold . He takes Levocet tablets. Within a day he
becomes okay. “Levocet” tablets has enabled the student to get
through the exam week.-----> He is more likely to buy “Levocet”
in advance for the next exam.----> The tablets have lived up to
expectation.

23. LEARNING
Learning Theories-
1) Behavioral -- a) Classical b) Instrumental
2) Cognitive
CLASSICAL CONDITIONING :All organisms are relatively
passive entities that could be taught certain behavior through repetition
(conditioning)
Three basic concepts derived from Classical theory :
1) Repetition: works by increasing the strength of association
and by slowing the process of forgetting.
2) Stimulus Generalization : Making the same response to
slightly different stimuli.
The practice of Marketing a whole line of company products
under the same brand name , capitalizes on the consumer's ability
to generalize favorable brand association from one product to
other. E.g : TATA

24. LEARNING
Stimulus Discrimination : Opposite of stimulus generalization ,
wherein consumer selects a specific stimulus from among similar
stimuli.
The consumer’s ability to discriminate among stimuli is the basis of
Positioning Strategy---> unique image in consumer’s mind.

25. Classical Conditioning
IVAN PAVLOV
Unconditional
Stimulus (US)
Meat Paste
Conditional
Stimulus (CS)
Bell
Conditional
Stimulus (CS)
Bell
Unconditional
Response (UR)
Salivation
Conditioned
Response (CR)
Salivation
E.g : CS--Brands , Products, Retail stores , CR- Purchases or
store patronage. US---> Celebrity endorsers

26. Instrumental Conditioning
B.F.SKINNER
Stimulus
Situation
(Need
clothes
want a
good
full shirt)
Louis
Philippe
Arrow
Van
Huesen
Park
Avenue
Response
Arm length short
Uncomfortable at shoulder
Perfect Fit
Too Tight
Reward

27. Instrumental Conditioning
Consumers learn by means of a trial and error process in which some
purchase behaviors result in more favorable outcomes than other
purchase behavior. A favorable experience is instrumental in teaching
the individual to repeat a specific consumption behavior.
Positive Reinforcement : Consists of events that
strengthen the likelihood of a specific response e.g
“CLEAR” helps in reducing dandruff----> will result in
repetition of shampoo purchase.
Negative Reinforcement : unpleasant outcome that serves
to encourage a specific behaviour.
E.g ---1) Fear ads---> 1) Cease fire 2) National Insurance.
In each of these cases the consumer is
encouraged to avoid negative consequences by buying the
advertised product.

28. Cognitive Learning theory
A considerable amount of learning takes place as a result
of consumer thinking and problem solving
Learning involves complex mental processing of
information .
Key point of this theory is--->
Information Processing : Consumers process product
information by attributes, brands, comparison between
brands on key features etc.

29. ATTITUDE
DEFN: A learned predisposition to behave in a
consistently favorable or unfavorable way with respect to a
given object.
brand Packaging retailer
advertising
Object

30. Attitude
Learned Predisposition : attitudes relevant to purchase behavior are
formed as a result of direct experience with the product , information
acquired form others and exposure to mass media.
Consistency : e.g If you like Japanese cars, when you want to buy a
car--- it will be Japanese.
Does situation have an influence on consumer attitudes?
A specific situation can cause consumers to behave in ways seemingly
inconsistent with their attitudes.
E.g ---> Rohit uses Gillette shaving cream regularly --- Next
time he chooses the super saver offer of Palmolive ---->Buy 1- Get 1
free ---> overall price is lower then Gillette.

31. Structural Model Of Attitudes
A) The tricomponent attitude model:
1) Cognitive 2) Affective 3) Conative component
1) Cognitive Component: consists of a consumer’s
belief about an object. E.g ---> A consumer believes that DIET
COKE has a) No Calories b) contains caffeine c) is competitively
priced. The total configuration of beliefs about this brand represents
the cognitive component of an attitude towards DIET COKE.
BELIEFS MAY BE CORRECT OR INCORRECT----> BUT
THEY ALWAYS EXIST.

32. 2) Affective Component :Feelings or emotional reactions
to an object represent the affective component of an
attitude. e.g A consumer who states “ I like Diet coke “
or “ Diet coke is terrible” is expressing the results of an
emotional or affective evaluation of the product.
3) Conative or Behavioral component : Tendency to
respond in a certain manner towards an object.
E.g a series of decisions to purchase /not purchase
DIET COKE or to recommend it to friends would reflect
the Conative component of an attitude.