Consumer Behaviour Lecture 4 Group Influences Chapter 7

Consumer Behaviour Lecture 4. . Group Influences Chapter 7 Lifestyles Chapter 12 HAUT Transfer Abroad Programme

Opinion Leaders • Opinion Leaders have a significant and long term involvement with the product/market • Market Mavens = a wide range of experiences eg technology… tend to be better informed. . – Tend to be better educated. – Tend to be well respected… - credible. – Tend to be well read. • WOM – Viral Social Networks – sharing…

Consumer Behaviour What is a group? A group is two or more people who interact to acheive either individual or mutual goals A group is a set of individuals who interact with one another over some period of time and who share a common goal HAUT Transfer Abroad Programme

Consumer Behaviour Types of Group Reference Groups Ascribed Groups Aspirational Groups Dissociative group Primary Group Formal Group Informal Group HAUT Transfer Abroad Programme

Consumer Behaviour Formal Groups A group whose organisation and structure are defined in writing – constitution, rules. Informal Groups People who interact together often on a social basis to pursue a fun objective or short term task HAUT Transfer Abroad Programme

Consumer Behaviour Dissociative Groups Those sets of people with whom a consumer does not want to be associated with. For example CHAVS HAUT Transfer Abroad Programme

Consumer Behaviour Reference Groups of people that a consumer uses as a point of reference to evaluate the correctness of his / her actions, beliefs and attitudes HAUT Transfer Abroad Programme

Consumer Behaviour Reference Groups • Informational –Learning • Normative – conforming • Identification – relating to Examples of = Figure 7 -2 HAUT Transfer Abroad Programme

Consumer Behaviour Lifestyle How people live their lives in terms of Activities Interests Likes/dislikes Attitudes Consumption Expectations Feelings HAUT Transfer Abroad Programme

Sociocultural Influences • Personal Influence – Opinion leadership – Word of mouth and rumors – Reference groups • Associative: “We’re the Pepsi generation…” • Dissociative: “It’s not your father’s car. ” • Aspirational • Culture • Subculture

Self Between ideal state And Real state

Self Concept Self concept is the totality of a person’s thoughts and feelings having reference to himself or herself as an object = Who do you think you are? How you want to be perceived? Ideal Self – aspirational Social Self – how others see you.

Extended Self Concept Self plus possessions Leads into Lifestyle

Potential Family Life Cycle Stages YOUNG SINGLE YOUNG COUPLE EMPTY NEST I/II FULL NEST I/II/III SINGLE PARENT OLDER SINGLE BLENDED

Economic/Marketing Implications of Household Cycles • Income tends to increase with time • But children/ obligations add cost • Divorce – increases costs – may change income distribution marriage • Product demand due to – singles with low expenses – new couples – divorced families – children – empty nesters --> more income

Household Decision Making • Roles/influence – Information gatherers/holders – Influencers – Decision makers – Purchasers – Users

FLC and Marketing Structure of family unit Family purchases and consumption behavior Stage of the family life cycle Family decision process Marketing strategy

Family Structure • Nuclear family • Extended family • Single family

A Modern Family Life Cycle Middle-aged divorced without children Young single Young married without children Middle-aged married without children Young married with children Young divorced with children Middleaged married with children Middle-aged married without dependent children Middle-aged divorced with children Usual flow Recycle flow Traditional family flow Older married Older unmarried Middle-aged divorced without dependent children

Stages of the Family Life Cycle Stage Younger(<35) Single I Young married Full nest I Single parent I Middle-aged (35 -64) Single II Delayed full nest I Full nest II Single parent II Empty nest I Older (>64) Empty nest II Single III Marital Status Single Married Children at Home None < 6 years > 6 years

Roles in Family Decision Making Roles Influencers Gatekeepers Deciders Buyers Users Disposers Description of Roles

Family Decision-Making Process for Children’s Products Influencers (children) (parents) Communications targeted at children (taste, image) Communications targeted at parents (nutrition) Initiators (parents, (children) Information gatherers (parents) (children) Decision makers (parents, children) Purchasers (parents) (children) User (children)

Consumer Socialization Antecedents Socialization Process Outcomes Social Structural Variables Agent-Learner Relationships • Modeling • Reinforcement • Social Interaction Socialization Agents • Parents • Peers • Schools • Mass media Age or Life Cycle Position (Moschis and Churchill 1978) Learning Properties

Dynamics of Husband-Wife Decision Making • Husband-Dominated • Wife-Dominated • Joint • Autonomic

Family Life Cycle/Social Stratification Matrix Stage of Household Life Cycle Social Class Lower Single I Young married Full nest I Single parent I Single II Delayed full nest I Full nest II Single parent II Empty nest I Single III Empty nest II Upper. Lower Working Lower. Middle Upper Up

Diffusion Of Innovations • How and when and if consumers adopt new products…… • Innovation = introduction of new products and concepts onto the market • May be involve no change to Attitude Process but may be radical new chocolate bar – wearable technology

Diffusion of Innovation • Adoption process • STAGES 1. Awareness 2. Interest 3. Evaluation 4. Trial 5. Adoption

Diffusion of Innovation • Consumer Framework • STAGES 1. Problem Recognition 2. Search 3. Alternative Evaluation of Solutions 4. Purchase 5. PPE

Factors Influencing Spread of Innovation pp 231 -233 • • • Group Targeted Involvement in decision Marketing Investment Need met Compatibility with norms Net benefit Complexity Visibility Trial ability/sampling Perceived Risk

Types of people adopting - • • • Innovators Early Adopters Early Majority Late Majority Laggards • Think about Ewatches? Burger Kings? Contact Lenses,