8 Chap - Module 2 - Understanding the Consumer

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MODULE 2 UNDERSTANDING THE CONSUMER

8.1 FACTORS INFLUENCING BUYER BEHAVIOR

# of factors influences buyer behavior. They can be grouped under 3broad categories:

1. Factors that are part of the buyer as an individual

2. Buyers social environment (group influence) AND

3. Information from a variety of sources

FACTORS THAT ARE PART OF THE BUYER AS AN INDIVIDUAL

An individuals religion & cultural background, his personality traits,self-concept, his general endowments, his upbringing in short, his

overall bio-data play a crucial role in his conduct as a buyer/consumer

These factors can be grouped broadly into 3 categories:

a. Personal factors

b. Cultural factors AND

c. Psychological factors

PERSONAL FACTORS

An individuals age, level of education, his occupation, overall economic

position & lifestyle all influence his role as a buyer. They decide what

products he will buy & consume. A persons self-concept & his concern

about status also influence his buying decisions. In fact, today people

are very concerned about their image & status in the society. It is a

direct outcome of their material prosperity.

Status is announced through various symbols like dress, ornaments,

possessions & general lifestyle. The desire for self-expression & self-advancement is closely linked with social status. For several people,

status is a major motive force guiding & shaping their life. Their

concept status decides what material possessions they should have. Even

if a product that constitutes a status symbol is beyond their immediate

reach, their aspiration to possess it will influence their decision-making

process.

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8.2 CULTURAL/PSYCHOLOGICAL FACTORS

CULTURAL FACTORS

Every culture, every religion & every language group dictates its own

unique patterns of social conduct. Within each religion, there may be

several sects & sub-sects; there may be orthodox groups &

cosmopolitan groups. In dress, food habits or marriage in almost all

matters of individual life religion & culture exercise an influence on

the individual, though the intensity may vary from society to society.

The dos & donts listed out by religion & culture impacts the

individuals lifestyle & buying behavior.

PSYCHOLOGICAL FACTORS

Just like the economic & social conditions, a mans disposition too has aclose bearing on his purchase decisions. Individuals coming under the

same economic & social groups can be vastly different when it comes to

certain personal believes, faiths & attitudes One may be timid & plain,

while another may be outgoing & aggressive.

One may be traditional in the overall view of life, while another may be

modern. One may be least innovative, while another may welcome

anything new. In fact, the maximum variations are seen here & in thematter of analysis & assessment too, this area poses maximum problem

to the marketer.

Personal beliefs, faiths & attitudes may also be called as psychographic

factors.

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8.3 FACTORS INFLUENCING BUYER BEHAVIOR

FACTORS THAT ARE PART OF THE BUYER AS AN INDIVIDUAL

Cultural Factors:

Culture, Religion, Language

Personal Factors:

Age, Education, Occupation, Economic Position

Lifestyle, Concern about Status Personality & Self-Concept

Stage in Family Lifecycle

Psychological Factors:

Motivation, Perception, Learning

Beliefs & Attitudes

BUYERS SOCIO-CULTURAL ENVIRONMENT (group influence)

Influence of Intimate Groups:

Family, Friends

Colleagues, Peer Groups

Influence of Broad Social Class:

Social class is a larger group than intimate groups & is decided by

several variables like income, occupation, place of residence etc.

A social class develops its lifestyle & behavior standards.

In their purchasing behavior, the class members are guided by

their class norms.

INFORMATION FROM VARIOUS SOURCES

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8.4 BUYERS SOCIAL ENVIRONMENT (Group Influence)

The buyer is not an ascetic (far-sighted). He is living in a society, isinfluenced by it & is in turn influencing its course of development. He is

a member of several organizations & groups, both formal & informal.

He belongs to a family, he works for a certain firm, he may be a

member of a professional forum, and he may belong to a particular

political group or a cultural body.

There is constant interaction between the individual & the groups to

which he belongs. And all these interactions leave some imprint on him,

which influences him in his day-to-day life & consequently, his buyingbehavior. Since there are 2 broad groups of which an individual is a

part, we shall discuss group influence in 2 parts:

1. Influence of intimate group AND

2. Influence of the broad social class

INFLUENCE OF INTIMATE GROUP

Examples of intimate groups are family, friends, close colleagues &

closely knit organizations. These groups exercise a strong influence on

the lifestyles & the buying patterns of its members. Among these

groups, the most influential & primary groups are the family & peer

groups. The peer groups are close-knit groups composed of individuals,

who have a common social background & who normally belong to the

same age group. The peer group has the greatest influence on the

individual member as a stabilizer of styles & behavior patterns.

In any intimate group, there is likely to be an informal group leader.

Though the leader may not directly influence every member in his day-to-day purchases, his judgment on men & matters, and facts & fashions

is respected by the group; and his views & lifestyle influence their

buying decisions. He is normally the innovator in the group & he

becomes the propagator of products & ideas. These opinion leaders or

influencers play a key role in marketing. Marketers often try to reach

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these leaders first through ads & other means of communication. And if

the leaders are convinced, their groups are likely to follow suit.


8.5 INFLUENCE OF BROAD SOCIAL CLASS

Structurally, the social class is a larger group than the intimate groups.

The constitution of a social class is decided by the income, occupation,

place of residence etc., of the individual members.

The members off a social class enjoy more or less the same status &prestige in the community. They share a common lifestyle & behavior

pattern. And, they normally select a product or a brand that caters to

their class norms.

Often, they even do their shopping in the same shopping area &

patronize selected shops, which befit their class image. This does not

mean that all the members of a given social class will buy the same

product & the same brand or conform to the same style, amounting to a

sort of regimentation.

Differential liking may exist among the members. But, in a buying

situation in which objective standards are not available to guide them,

they may conform to the class norms.

Studies have shown that the extent of influence the social class has on its

members will depend on the extent of attractiveness the group holds outto them. The greater the attractiveness, the larger is the behavioral

conformity.

Study of group influence on individual buying behavior will help

marketers to develop right strategies for different customer segments. It

is not feasible for them to appeal to the fancies of every individual

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buyer. They can find commonalities or patterns among specific

groups of buyers & work on them.


8.6 INFORMATION FROM VARIOUS SOURCES

The buyer today is exposed to a veritable flood of information,

unleashed on him from different sources. These sources inform him

about new products & services, improved versions of existing products,

new uses for existing products & so on. The information sources that

persuade people to try a product include: advertising, samples & trials,

displays in shops & salesmens suggestions.

Each of these sources provides some information to the buyer about the

products. When the buyer sees an ad for a product, he is informed

about the existence of the product. Later on, he may develop a positive

or negative attitude towards the product or he may remain neutral. In

any case, a piece of information about the product is made available to

him & it has some influence on his buying behavior.

Delivering a free sample of the product to a prospective buyer may also

create in his mind an idea about the product. This, however, does not

ensure that he will try it. Whether he will try it or not depends on

several factors. But if the sample is tried, it generates some information,

positive or negative, which in turn influences the buying behavior.

The availability of the product in the shop by itself acts as an

information source to the buyer. The buyer may evince an interest inthe product & may inquire about it. The product advertises itself.

Often salesmen serve as a source of information to buyers. The salesmen

may inform the prospects about a product explain its advantages & may

even suggest a trial purchase. In cases where a rapport has already been

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established between the buyer & the salesman, the latters suggestions

are normally taken as reliable.


8.7 CLASSIFICATION OF BUYING MOTIVES

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BUYING

MOTIVES

PRODUCT

MOTIVES

PATRONAGE

MOTIVES

Rational

Patronage

Motives

Emotional

Patronage

Motives

Emotional

Product

Motives

Rational

Product

Motives

Alternate Classification

of Product Motives

Operational

Product

Motives

Socio

Psychological

Product

Motives

Documents

8 Chap - Module 2 - Understanding the Consumer