Buying Decision Process - Consumer Behaviour - Lecture Slides, Slides for Consumer Behaviour. Birla Institute of Technology and Science
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saif29 January 2013

Buying Decision Process - Consumer Behaviour - Lecture Slides, Slides for Consumer Behaviour. Birla Institute of Technology and Science

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This lecture is from Consumer Behaviour. Key important points are: Buying Decision Process, Characteristics of Culture, Measurement of Culture, Value Measurement Survey Instruments, Cultural Values, Variations in Value S...
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TYPES OF REFERENCE GROUPS

Macro factors influencing Buying Decision Process •Culture •Subculture •Social Class •Reference Groups •Family

WHAT IS CULTURE? Culture as the sum total of learned beliefs, values, and customs that serve to direct

the consumer behavior of members of a particular society. Values also are beliefs. Values differ from other beliefs, however, because they

meet the following criteria : (1) they are relatively few in numbers, (2) they serve as a guide for culturally appropriate behavior, (3) they are enduring or difficult to change, (4) they are not tied to specific objects or situations, and (5) they are widely accepted by the members of a society

CHARACTERISTICS OF CULTURE • Culture Satisfies Needs • Culture Is Learned -- informal learning and technical

learning • ENCULTURATION AND ACCULTURATION • LANGUAGE AND SYMBOLS • Culture Is Shared …group customs • Culture Is Dynamic

CULTURE

• A complex set of values, ideas, beliefs, attitudes and other meaningful symbols, crated by human beings to shape human behavior and the artifacts for that behavior as they are transmitted from one generation to another.

THE MEASUREMENT OF CULTURE

• CONTENT ANALYSIS • CONSUMER FIELDWORK • VALUE MEASUREMENT SURVEY INSTRUMENTS The distinct characteristics of field observation are that (1)

it takes place within a natural environment, (2) it is performed sometimes without the subjects’ awareness, and (3) it focuses on observation of behavior.

• VALUE MEASUREMENT SURVEY INSTRUMENTS • THE YANKELOVICH MONITOR • DYG SCAN -- AN ENVIRONMENTAL SCANNING

PROGRAM

Cultural Values --------------------------------------------------------------------------------------------------- Terminal values Instrumental values (end-states of existence) (modes of conduct) --------------------------------------------------------------------------------------------------- A comfortable life (a prosperous life) Ambitious (hardworking, aspiring) An exciting life (a stimulating, active life) Broadminded (open-minded) A sense of accomplishment (lasting contribution) Capable (competent, effective) A world at peace (free of ware and conflict) Cheerful (lighthearted, joyful) Equality (brotherhood, equal opportunity) Courageous (standing up for your beliefs) Family security (taking care of loved ones) Forgiving (willing to pardon others) Freedom (independence, free choice) Helpful (working for others welfare) Happiness (contentedness) Honest (sincere, truthful) Inner harmony (freedom from inner conflict) Imaginative (daring, creative) Mature love (sexual and spiritual intimacy) Independent (self-reliant, self-sufficient) National security (protection from attack) Intellectual (intelligent, reflective) Pleasure (an enjoyable, leisurely life) Logical (consistent, rational) Salvation (saved, eternal life) Loving (affectionate, tender) Self-respect (self-esteem) Obedient (dutiful, respectful) Social recognition (respect, admiration) Polite (courteous, well mannered) True friendship (close companionship) Responsible (dependable, reliable) Wisdom (a mature understanding of life) Self-controlled (restrained, self-disciplined)

Variations in Value Systems ------------------------------------------------------------------------------------------------------ Orientation ------------------------------------------------------------------------------------------------------ Human nature Evil (changeable or Mixture of good and Good (changeable or unchangeable): Most evil (changeable or unchangeable): Most people are basically evil unchangeable ): there people are basically and can’t be trusted. are evil and good good and can be trusted. People-nature Subjugation to nature : Harmony with nature : Mastery over nature : relationship Life is largely controlled Live in harmony with People should challenge by outside forces nature and control nature Time sense Past oriented (tradition Present oriented Future oriented (goal bound) : People should (situational) : Make the oriented): Plan for the learn from and emulate most of the present future in order to make the glorious past. Moment : live for today it better than the past

Range

Variations in Value Systems ------------------------------------------------------------------------------------------------------ Orientation ------------------------------------------------------------------------------------------------------ Activity Being : Spontaneously Being-in-becoming : Doing : Stress action express impulses and Emphasize self- and accomplishment. Desires : stress who you realization. Are. Development of all aspects of the self as on integrated whole. Social relations Linear (authoritarian): Collateral (group Individualisitc : Each Lines of authority are oriented ): A person is person is autonomous clearly established, with an individual as well as and should have equal dominant-subordinate a group member rights and control over relationships clearly participating in his or her own destiny. Defined and respected collective decisions.

Range

SUMMARY OF AMERICAN CORE VALUES

VALUE GENERAL FEATURES RELEVANCE TO CONSUMER BEHAVIOR _______________________________________________________________________________________________ Achievement and Hard work is good;success flows Act as a justification for acquisition of goods Success from hard work (“You deserve it”) Activity Keeping busy is healthy and Stimulates interest in products that are time-savers natural and enhance leisure time Efficiency and Admiration of things that solve Stimulates purchase of products that function Practicality problems (e.g., save time and effort) well and save time Progress People can improve themselves; Stimulates desire for new products that fulfill tomorrow should be better than unsatisfied needs;ready acceptance of products today that claim to be “new” or “improved” Material Comfort “The good life” Fosters acceptance of convenience and luxury products that make life more comfortable and enjoyable Individualism Being oneself (e.g., self-reliance, Stimulates acceptance of customized or unique self-interest, self-esteem) products that enable a person to “express his or her own personality” Freedom Freedom of choice Fosters interest in wide product lines and differentiated products

SUMMARY OF AMERICAN CORE VALUES

VALUE GENERAL FEATURES RELEVANCE TO CONSUMER BEHAVIOR _______________________________________________________________________________________________ External Conformity Uniformity of observable behavior; Stimulates interest in products that are used or desire for acceptance owned by other in the same social group Humanitarianism Caring for others, particularly Stimulates patronage of firms that compete with the underdog market leaders Youthfulness A state of mind that stresses being Stimulates acceptance of products that provide the “Young at heart” and having a illusion of maintaining or fostering youthfulness Fitness and Health Caring about one’s body, including Stimulates acceptance of food products, activities, the desire to be physically fit and equipment perceived to maintain or and healthy increase physical fitness

WHAT IS SUBCULTURE?

We define subculture, then, as distinct cultural group that exists as an identifiable segment within a larger, more complex society Thus, the cultural profile of a society or nation is composite of two distinct elements : (1) the unique beliefs, values, and customs subscribed to by members of specific , subcultures; and (2) the central or core cultural themes that are shared by most of the population, regardless of specific subcultural memberships.

SUBCULTURAL CATEGORY EXAMPLES ________________________________________________________________________ Nationality ( i..e.,birthplace of ancestors French, puerto Rican, Korean) Religion Catholic,Hindu, Jew Geographic Region Southeastern, Midwestern,Eastern Race African-American, Caucasian, Asian-American Age Elderly, Teenage, Middle Age Gender Female, Male Occupation Engineer, Cook, Plumber Social Class Lower, Middle, Upper

RELATIONSHIP BETWEEN CULTURE AND SUBCULTURE

Dominant Cultural Traits of U.S. Citizens

Subcultural Traits of Northerners

Subcultural Traits of Southerners

AGE SUBCULTURES : (BASIC NEEDS,CONVENIENCE, PLACE PREFERENCES ETC) GENERATION X..18-29 YEAR BABY BOOMERS ..35-55 OLDER CONSUMERS …SENIOR CITIZENS PROFESSIONAL SUBCULTURES (SHOPPING PATTERN, TYPE OF PRODUCTS , BRAND PREFERENCES) WORKING WOMAN CALL CENTRE YOUTH

Social Standing Social Standing : How it is Derived and How it Influences Behavior

Socio economic factors Occupation Education Ownership Income

Social Standing Upper Class Middle Class Working Class Lower Class

Unique behaviors Preferences Purchases Consumption Communication

WHAT IS SOCIAL CLASS ?

Is defined as the division of members of a society into a hierarchy of distinct status classes, so that members of each class have relatively the same status and members of all other classes have either more or less status.

SOCIAL CLASS AND SOCIAL STATUS • Social Class is Hierarchical • Social Class and Market Segmentation • Social Class and Behavioral Factors • Social Class as a Frame of Reference

SOCIAL CLASS Requirements for a Social Class System

Upper Class

Middle Class

Working Class

Lower Class

ELEMENTS OF SOCIAL STATUS •WEALTH

•POWER(DEGREE OF PERSONAL CHOICE OR INFLUENCE OVER OTHERS) • PRESTIGE (THE DEGREE OF RECOGNITION RECEIVED FROM OTHERS)

Different Social Class

Life-style Orientations & Purchasing Tendencies of the Different Social Classes ----------------------------------------------------------------------------------------------------------- Social Class Life-style Orientation Purchasing Tendencies ----------------------------------------------------------------------------------------------------------- Upper Class Good taste Quality merchandise Graceful living Expensive hobby and Good Things in life recreation equipment Individual expression Art Interest in arts and Books Culture Travel Middle Class Respectability Items in fashion Conformity Items related to self Propriety presentation social esteem Nice clothing, and home Items for Children

Different Social Class Life-style Orientations & Purchasing Tendencies of the Different Social Classes ----------------------------------------------------------------------------------------------------------- Social Class Life-style Orientation Purchasing Tendencies ----------------------------------------------------------------------------------------------------------- Working Class Fun oriented Newest appliances Parochial /narrow minded Sporting events Unsophisticated taste Newest and biggest item Focus on Possessions, not ideas Lower Class Close family relationships Status symbols Not interested in world Products enhancing affairs self-esteem Neighborhood oriented Pseudo symbols of Immediate gratification prosperity, such as used scooters Readily available products

“Upward Pull Strategy” Targeted at Middle Class

Target market

Middle Class

Aspirations To belong to upper-middle class

Prefer Products consumed by upper- middle class

Positioning Upper class symbolism for middle class products

the measurement of social class Two-category social-class schemas • Blue collar, white collar • Lower, upper • Lower, middle Three-category social-class schemas • Blue collar, gray collar, white collar • Lower, middle, upper Four-category social-class schema • Lower, lower-middle, upper-middle, upper Five-category social class schemas • Lower,working-class, lower-middle, upper-middle, upper • Lower, lower-middle, middle, upper-middle, upper Six-category social-class schema • Lower-lower, upper-lower, lower-middle, upper-middle, lower-upper, upper-upper Seven-category social-class schema • Real lower-lower, a lower group of people but not the lowest, working class, middle class, upper-

middle, lower-upper, upper-upper Nine-category social-class schema • Lower-lower, middle-lower, upper-lower, lower-middle, middle-middle, upper-middle, lower-upper,

middle-upper, upper-upper.

the measurement of social class The upper-upper class-Country Club Establishment • Small number of well-established families • Belong to best country clubs and sponsor major charity events • Serve as trustees for local colleges and hospitals • Prominent physicians and lawyers • May be heads of major financial institutions, owners of major long-established firms • Accstomed to wealth, so do not spend money conspicuously The Lower-upper Class -- New Wealth • Not quite accepted by the upper crust of society • Represent “new money” • Successful business executives • Conspicuous users of their new wealth The upper-middle class - Achieving Professionals • Have neither family status nor unusual wealth , Career-oriented • Young successful professionals, corporate managers, and business owners • Most are college graduates, many with advanced degrees • Active in professional, community, and social activities • Have a keen interest in obtaining the “better things in life” • Their homes serve as symbols of their achievements • Consumption of often conspicuous ; and Very child-oriented

the measurement of social class The lower-middle class -- Faithful Followers • Primarily nonmanagerial white-collar workers and highly paid blue-collar workers • Want to achieve “ respectability” and be accepted as good citizens • Want their children to be well-behaved • Tend to be churchgoers and are often involved in church-sponsored activities • Prefer a neat and clean appearance, and tend to avoid faddish or highly-styled clothing • Constitute a major market for do-it-yourself products The upper-lower class -- Security-minded Majority • The largest social-class segment • Solidly blue collar • Strive for security (sometimes gained from union membership) • View work as a means to “buy” enjoyment • Want children to behave properly • High wage earners in this group may spend impulsively • Interested in items that enhance their leisure time (e.g.. TV sets, hunting equipments) • Husbands typically have a strong “macho” self-image • Males are sports fans, heavy smokers, beer drinkers The lower-lower class -- Rock Bottom • Poorly educated, unskilled laborers, Often out of work • Children are often poorly treated and Tend to live a day-to-day existence.

Identify the following concepts

Roles and Status

Life cycle

FAMILY BUYING INFLUENCES The Reciprocal Influences of Family Members

HusbandWife

Child

Cognitions Behaviors Environments

Cognitions Behaviors Environments

Cognitions Behaviors Environments

CONSUMER SOCIALISATION A model of consumer socialization

Socioeconomic status Sex Age Social Class Religious background

Media Family members Peers Teachers

Modeling Reinforcement Stage of cognitive development

The socialized consumer

Background factors Socialization

agents Learning mechanisms

Outcomes

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