External Influences on Consumer Behavior:

Part 2

Contents

Groups: Meaning and Nature of Groups, Types

Family: The changing structure of family, Family decision
making and consumption related roles, Key family
consumption roles, Dynamics of husband-wife decision
making,
The expanding role of children in family decision making,
The family life cycle & marketing strategy, Traditional
family life cycle & marketing implications,
Reference Groups: Understanding the power & benefits of
reference groups, A broadened perspective on reference
groups, Factors that affect reference group influence,
Types of reference groups, Friendship groups, Shopping
groups, Work groups, Virtual groups, Consumer-action
groups, reference group appeals, Celebrities

Consumers in
their Social and
Cultural Settings

Intro
Groups

exist in every formal and

informal type of organizations.
Such groups are created by the
members for its satisfaction.
Very often groups get formed
automatically because of the operation
of various socio psychological factors.
Such groups affect the behaviour of its
members.

What is a Group?

Two or more
people who
interact to
accomplish either
individual or
mutual goals

Importance of groups
1. Play

an important role in consumer

socialization
2. The process by which we acquire the
skills, knowledge and attitudes necessary
to function as consumers
3. As consumers we learn to think and
behave according to societys expectations
as modeled by the groups we interact with

Characteristics of Groups:
1.Two

or more persons:
2.Collective identity
3.Interaction
4.Shared goal interest

Classifications/Types
1.

2.

A membership group is one to

which a person either belongs or
would qualify for membership
(laughter club, housing societies)
A symbolic group is one in which
an individual is not likely to
receive
membership
despite
acting like a member ( Indian
cricket team as reference to
armature cricketers)

Reference
Group

A person or group
that serves as a
point of
comparison (or
reference) for an
individual in the
formation of either
general or specific
values, attitudes, or
behavior.

Types of reference groups

Normative Reference
Groups
(e.g Family)

Comparative
Reference Groups

(e.g. Neighbors & friends)

Indirect
Reference
Groups

Individuals or groups
with whom a person
identifies but does not
have direct face-to-face
contact, such as movie
stars, sports heroes,
political leaders, or TV
personalities.

Selected Consumer-Related
Reference Groups
Friendship groups ( informal
peer group)
Shopping groups
Work groups ( groups at
workplace)
Virtual groups or communities
(e.g Chatting on net)
Consumer-action groups

Reference Group Appeals

Celebrities
The expert ( Karthikeyan
for SPEED petrol)
The common
man( Harpic)
The executive and
employee spokesperson
Trade or spokes-characters
Other reference group
appeals

Nakshtra uses a
Celebrity Appeal:

FAMILY
A Concept In Flux

Household & Family

Household is a group of people or a person

who occupy a housing unit.
Family is a group of two people or more (one
of whom is the householder) related by birth,
marriage or adoption.

Households
Family Households:
Married couple,
Nuclear family,
Extended family

Bangalore, India

Prof. B.K.Murty,

Households
Non-Family Households:
Unmarried couples,
Friends/ Roommates,
Boarders

The Typical Household?

Canada: Nuclear family

Thailand: Extended family
USA: Not married, no children
India : Couple with 2 or more children

Types of Family
The married couple consist of husband and
wife
Nuclear family is a married couple and their
children
Extended family is nuclear family with
grandparents
Blended family is nuclear family along with
children from previous marriage/s.
Single parent family is a parent and atleast a
child
Joint family

Table 10.6 Eight Roles in the Family DecisionMaking Process

ROLE
Influencers

DESCRIPTION
Family member(s) who provide information to other members about a
product or service

Gatekeepers

Family member(s) who control the flow of information about a product

or service into the family

Deciders

Family member(s) with the power to determine unilaterally or jointly

whether to shop for, purchase, use, consume, or dispose of a specific
product or service

Buyers

Family member(s) who make the actual purchase of a particular product

or service

Preparers

Family member(s) who transform the product into a form suitable for
consumption by other family members

Users

Family member(s) who use or consume a particular product or service

Maintainers

Family member(s) who service or repair the product so that it will

provide continued satisfaction.

Disposers

Family member(s) who initiate or carry out the disposal or

discontinuation of a particular product or service

Functions of the family

Economic well being

Emotional support
Suitable family lifestyles
Socialization of family members

Family Decision Making and

Consumption Related Roles

Dynamics of husband and wife decision

making
Husband dominated
Wife dominated
Joint
autonomic

Socialization and related roles of family

members

Socialization of family members ranging from

young children to adults is a central family
function. In case of children this includes
imparting to children the basic values and modes
of behaviour consistent with the culture

Consumer
Socialization

The process by which

children acquire the
skills, knowledge, and
attitudes necessary to
function as consumers.

Figure 10.11 A Simple Model of the

Socialization Process
Young
Young Person
Person
Other
Other Family
Family
Members
Members

Friends
Friends

Influence
Influence More
More Basic
Basic
Values/Behavior
Values/Behavior

Influence
Influence More
More Expressive
Expressive
Attitudes/Behavior
Attitudes/Behavior

Moral/religious
Moral/religiousprinciples
principles
Interpersonal
Interpersonal skills
skills
Dress/grooming
Dress/groomingstandards
standards
Manners
Mannersand
andspeech
speech
Educational
Educational motivation
motivation
Occupational
Occupational career
career goals
goals
Consumer
Consumerbehavior
behavior norms
norms
Preadolescent

Style
Style
Fashion
Fashion
Fads
Fads
In/Out
In/Out
Acceptable
Acceptable consumer
consumer
behavior
behavior

Adolescent

Teens

Older

Other Functions of the

Family

Economic well-being
Emotional support
Suitable family lifestyles

Family Life Cycle

The stages through which a family
progresses in a orderly way. While most
families still do, there are more complex
cycles.
The consecutive stages the family passes
through over time
It is a useful method for segmenting and
developing marketing strategy as in each
stage the family has unique
characteristics, financial situation and
purchasing patterns.

Traditional family life cycle

The traditional family life cycle is a

progression of stages through which many
families pass, starting with bachelorhood,
moving on to marriage, the to family growth,
to family contraction and ending with the
dissolution of the basic unit

The Family Life Cycle

Traditional Family Life Cycle

Stage
Stage
Stage
Stage
Stage

I: Bachelorhood
II: Honeymooners
III: Parenthood
IV: Postparenthood
V: Dissolution

Modifications - the Nontraditional FLC

Figure 10.15 Targeting the ToBe- Married Segment

Figure 10.16
Targeting
the
PostParenth
ood Stage

Figure 10.15 An Extended Family life Cycle

Middle-Aged
Divorced without
Children
Young
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*

MiddleAged
Married
without
Dependent
Children*

MiddleAged
Divorced
with
Children

MiddleAged
Divorced
without
Children

Older
Married*

Older
Unmarried*

Usual Flow
Recycled Flow
* Traditional Family Flow

Table 10.9 Noteworthy Nontraditional

FLC Stages
Alternative FLC Stages
Family Households
Childless couples

Definition/Commentary

Couples who marry later in

life (in their late 30s or
later)

More career-oriented men and women and greater

occurrence of couples living together. Likely to have
fewer or even no children.

It is increasingly acceptable for married couples to

elect not to have children. Contributing forces are
more career-oriented married women and delayed
marriages.

Couples who have first child Likely to have fewer children. Stress quality
later in life (in their late 30s lifestyle: Only the best is good enough
or later)

Table 10.9 continued

Alternative FLC Stages Definition/Commentary
Family Households
Single parents I
High divorce rates (about 50%) contribute to a
portion of single-parent households
Single parents II

Young man or woman who has one or more

children out of wedlock.

Single parents III

A single person who adopts one or more

children.
Young single-adult children who return home

Extended family

to avoid the expenses of living alone while

establishing their careers. Divorced daughter or
son and grandchild(ren) return home to parents.
Frail elderly parents who move in with
children. Newlyweds living with in-laws.

Reference
Group

A person or group
that serves as a point
of comparison (or
reference) for an
individual in the
formation of either
general or specific
values, attitudes, or
behavior.

Reference groups

From a marketing perspective reference

groups are groups that serves as frames of
reference for individuals in their purchase or
consumption decisions.

Reference groups

Normative Reference
Groups
(e.g Family)

Comparative
Reference Groups

(e.g. Neighbors & friends)

reference groups that influence general or

broadly defined values or behaviour are called
normative reference groups
Ex: family
Reference groups that serves as benchmarks
for specific or narrowly defined attitudes or
behavior are called comparative reference
groups
Ex: neighbourhood

Broadening the reference group concept

Indirect
Reference
Groups

Individuals or groups
with whom a person
identifies but does not
have direct face-to-face
contact, such as movie
stars, sports heroes,
political leaders, or TV
personalities.

Types of reference groups

Contactual group
Aspirational group
Disclaimant group
Avoidance group

Factors that affect reference group

influence

Information and experience

Credibility attractiveness and power of the
reference group
Conspicuousness of the product

Types of reference groups

Friendship groups ( informal
peer group)
Shopping groups
Work groups ( groups at
workplace)
Virtual groups or communities
(e.g Chatting on net)
Consumer-action groups

Reference Group Appeals

Nakshtra uses a
Celebrity Appeal:

Celebrities

How celebrities are used?

Testimonial
Endorsement
Actor
Spokesperson

Credibility of the celebrity

Does it matter who the
celebrity is

The expert ( Karthikeyan for SPEED petrol)

The common man( Harpic)
The executive and employee spokesperson
Trade or spokes-characters
Other reference group appeals