environmental influences on consumer behavior

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    Environmental

    influences onconsumer behavior

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    Environmental influences physical environment: collection of nonhuman

    elements that comprise the field in whichconsumer behavior occurs (spatial and nonspatialelements);

    social environment: all human activities andinteractions;

    culture

    subculture

    social class

    reference groups

    family

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    Subcultureculture of a segment of society that differs in

    significant ways from the culture as a whole;

    ethnic groups geographic areas

    age groups

    religious affiliations socio-economic groups

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    Social class a hierarchy of social status in a societyleading to interactions of people as

    equals, superiors, or inferiors;

    influenced most heavily by educationalcredentials, occupation prestige level,

    income, and area of residence;

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    Reference groupsA group of people that serves as a standard

    of reference in guiding an individuals

    thoughts, feelings, and actions.

    Types of reference group influence: informational:

    normative (utilitarian):

    comparative (value-expressive):

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    To satisfy the expectations of fellow work associates,

    the individuals decision to purchase a particularbrand is influenced by their preferences.

    The individual seeks information from those whowork with the product as a profession.

    The individual sometimes feels that it would be niceto be like the type of person which advertisementsshow using a particular brand.

    The brand which the individual selects is influencedby observing a seal of approval of an independent

    testing agency (such as Good Housekeeping). The individual feels that the purchase of a particular

    brand helps him show others what he is, or wouldlike to be (such as an athlete, successfulbusinessman, good mother, etc.).

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    Reference group influence on product and

    brand choice (Bearden and Etzel 1982)

    necessity luxury

    private

    public

    brandchoice

    productchoice weak reference

    group influencestrong referencegroup influence

    strongreference

    groupinfluence

    weakreference

    groupinfluence

    PuNe(e.g., wristwatch,

    automobile,mans suit)

    PrNe(e.g., mattress,

    floor lamp,refrigerator)

    PuLu(e.g., golf club,

    snow skis,sailboat)

    PrLu(e.g., TV game,

    trash compactor,icemaker)

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    Families families vs. households:

    a family is two or more persons residing togetherwho are related by blood, adoption, or marriage;

    a household is one or more persons sharing thesame housing unit;

    many decision are made by families orhouseholds, not individuals;

    consumer behavior varies over the familylife cycle (based on age, marital status,and number and ages of children);

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    Parental Roles in Family Decision Making

    0% 50% 100%

    3

    2.5

    2

    1.5

    1

    wife dominant

    husband dominant

    autonomic syncratic

    Percentage of families engaging in joint decision making

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    Parental Influence by Product Category

    0% 50% 100%

    Percentage of families engaging in joint decision making

    3

    2.5

    2

    1.5

    1

    wife's clothing

    husband's clothing

    life insurance

    other insurance

    vacation

    television

    car

    food

    cleaningproducts

    cosmetics

    children's toys

    housing

    appliances

    wife

    dominant

    husband

    dominant

    alcoholic beverages

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    Parental Influence by Stage of Decision

    0% 50% 100%

    3

    2.5

    2

    1.5

    1

    life insurance

    car

    appliances

    wife

    dominant

    husband

    dominant

    husband'sclothing

    12

    3

    1 problem recognition

    2 search for information

    3 final decision

    Percentage of families engaging in joint decision making

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    The family life cycle young single 8.2 % young married without children 2.9 % other young

    married with children 17.1 % divorced with kids 1.9 %

    divorced with no kids 0.1 % middle-aged (35-65)

    married with children 33.0 % married with no dependent children 5.5 % married with no children 4.7 % divorced with no kids 0.3 %

    divorced with kids 1.9 % older(65+)

    married, spouse present 5.2 % unmarried, no spouse present 2.0 %

    all others 17.2 %