cb module 3 shahid

8/10/2019 CB Module 3 Shahid

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Consumer Behaviour


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Group and Reference Group Influence

Group

A collection of people interacting together in an

orderly way on the basis of shared norms,

values and expectations about one anothers

behavior

Time and communication


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Characteristics

Frequent Interactions

Shared norms and mutual

interest

Shared values and belief

Joint sense of responsibility

Betterment of the group

Elements affecting groupBehavior

Groups Size

Group leader

Nature and motivation of

members

Norms of the group

The roles assigned to each

individual

The environment

The task


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Group Influence

Useful analysis framework of group influence on

individual is the reference group. Basically for

comparison purposes.

Aspirational reference group refers to those others

against whom one would like to compare oneself

Associative reference groups includes people who

realistically represents the consumers current ornear-equals

Dissociative reference group include people that

the individual would not want to be like


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Types of Social Groups

Primary Group A small collection f people

who interact in a personal, informal and

intimate way

Secondary Group large groups whose

relationships are institutional and formal. They

may last for years but may scatter after a short

duration. More formal, specific purpose,

conceptually related, rarely emotionally tied.


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In-group and out-group In-group is a social

class where people have a sense of belonging.

In-groups are usually primary groups. An out-

group is one where members do not have the

sense of belonging.

Peer group Basically friends group or aprimary group, same age people somewhat

same status

Reference group Psychologically identified bypeople and used as reference while evaluating

themselves


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Consumer Relevant Groups and Types

Friendship Groups Informal groups, unstructured.Seeking and maintaining friendship is a basic drivefor a majority of the people. Influence on the productitem an individual finally selects

Shopping group 2 or more people who shoptogether for clothing, food or pass time. Purchasepals. MGM campaigns

Work Groups People on an average spends 40 hrs

a week in their work place. Informal as well as formal Virtual Groups or communities

Consumer action groups Temporary action group

and Permanent action group


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Reference Groups

People refer to these groups when evaluating their

qualities, attitude, values, behavior and desires


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Types of reference groups

Normative reference

groups Face to face

relation, Direct relation

Comparative referencegroup less direct

relationship. Consumers

adopts the lifestyle

gradually.

Factors affecting Reference

group Influence

Information and

Experience

Credibility, attractivenessand power of the

reference group

Conspicuousness of the

product Visible/verbal

eg cars , salt, etc..


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Application of Reference group

concept for promotion

Make the consumers aware of specific Brand orproduct

Offer the consumers a chance to compare his/her

behavior and attitudes with the behavior and attitude ofthe group

Influence the individual to adapt behavior that is in syncwith group

Aspiration, Administration, Empathy and Recognition

If he uses it, it must be good, I will be like him, if Iuse it, I have the same problem he had, and what

worked for him should work on me too


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3 major types of reference groups

Celebrities

Testimonials Eg;- SachinsMRF bat Endorsement Eg;- Priyanka Chopras Hero

pleassure

Actor Eg- Salman khan and revital

Spokesperson Eg;- Florida and nuvo

ExpertsChef introducing a cooking vessel

The common man Eg;- Fevicol, Vayoodha

hair oil,etc..

Other reference group Executives, Retailersand editorial contents, Trade characters and

cartoons, Seal of approval and product rating


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Celebrity Credibility

Benefits of reference group appeal

Increased brand awareness

Reduced perceived risk


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Family As a Group

The family is a group of persons related by

blood, marriage or adoption. Who resides

together . It is a basic social group

3 types of families

Married CoupleHusband, Wife and older

couples who have already raised their children

Nuclear familyHusband, wife and children

Extended FamilyNuclear family + 1 grand

parent


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Functions of family

Economic well-being

Emotional support

Suitable life style

Childhood socialization

Key consumption roles

Initiator

Influencer

Information gatherer

Decider

Purchaser Users

Maintainers

Disposers


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Decision Making of different

family members

Patriarchal

Matriarchal

Equalitarian (Synergic)

Dynamics of Husband/Wife

decision

Product or service variation

Variation by family role

structure orientation

Variation by stage in

decision making process

Variation by product

features


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Decision by Children

Children influence on theirparents in buying (Yield)

Children viewing T.V

Teenage children

Effects of Variable on Family

decision

Culture Social Class

Reference groups

Mobility

Geography location

Stage in family life cycle


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Role and Importance of Family Life

Cycle

Traditional Family Life Cycle

Stage 1 Bachelorhood Unmarried adult living away

from parents

Stage 2 Honeymooners Young married couple

Stage 3 Parenthood Married couple with a

child/children living with them

Stage 4 Post-Parenthood Older married coupleliving at home with no children

Stage 5 Dissolution Only one spouse alive


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Personal Influence and Opinion

Leadership

Individuals power to control or dominance onothers purchasing decisions

External or internal

Opinion leadership happens through WOM

Influence is informal and interpersonal

Opinion leader, Opinion seeker/opinion

receiver Creates viral or buzz

Roles can change


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Opinion Leader

Role Model

Influence primary group

Actor/celebrity

Knowledge power

Dynamics of opinion

leadership process

Credibility

Positive and negative

product information

Information and advice

Opinion leadership is 2 way

process

Opinion leadership is

category specific

Surrogate buyers

V s Opinion Leader


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Diffusion of Innovation

Why, how, and at what rate new

technologies and ideas spread

through cultures

Everett Rogers the process by

which an innovation iscommunicated through certain

channels over time among the

members of social system

Elements Innovation, Types ofcommunication channels, Rate of

Adoption, Social system which

helps frame the process of

innovation decision


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Types of Innovation Decisions

Optional Innovation Decision

Collective Innovation Decision

Authority Innovative Decision


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Different degrees of

Innovation

Continuous Innovation

Dramatic Continuous

Innovation

Discontinuous

Innovation

Culture and Adoption of

Innovation

Modernity

Homophily

Physical distance

Opinion leadership


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Diffusion Process and Adoption Process

KNOWLEDE PERSUATION

DECISION

IMPLIMENT

ATION

CONFORMA

TION

REJECT

ACCEPT


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Characteristics of Innovation

An Innovation which is an improvement over anearlier generation has better chance of adoption

An innovation that an individual feels is more

compatible with his way of life also has better chanceof Adoption

A complex innovation is not adopted easily

Triability determines the comfort and ease off use

of innovation

Observability determines the degree to which a

particular innovations visibility to others


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Rate of Adoption


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Adopter Categories

Innovators

Early Adopters Early Majority

Late Majority

Laggards

Opinion leaders and communication channels

Greater degree of exposure to the media

Sophisticated Nature Higher socioeconomic status

Greater degree of contact with change agent

Lots of social experience

More innovative


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Diffusion in Organisation

Collection-innovation decision

Authority-innovation decision

Consequences of adoption

Desirable v/s undesirable

Direct v/s indirect

Anticipated v/s unanticipated

cb module 3 shahid

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