Environmental and Product Influences

8/7/2019 Environmental and Product Influences

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VKV


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Culture

Cultural shifts create opportunities fornew products or may otherwise influenceconsumer behavior.

Subcultures are of interest to marketers.

Culture

Culture is the Setof Values,

Perceptions, Wants& BehaviorLearned by aMember of Society

and Family.


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Subculture

A subculture is a segment within a culturethat shares a set of meanings, values oractivities that differ in certain respects from

those of the overall culture.


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Examples ofSubcultureSub culture dimension Examples

Nationality Indian , south African

Religion Hindu, Islam

Gender Female, Male

Age Generation Y, Baby

Boomers

Life style Punks, GothicRacial group Indian, White

Geographic region North Indian, South

Indian


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Marketing toSubcultures

Procter & Gambletargets Hispanicsusing print andTV. P&G has alsodeveloped specialSpanish versions

of some brands.


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Class

Information and Pressures from Individuals,

groups, and the mass media that affect how

Social Class

Societys relativelypermanent & ordereddivisions whose membersshare similar values,

interests, and behaviors.

Measured by: Occupation,Income, Education, Wealthand Other Variables.


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Factors

Group Reference Gr. Family Status


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FamilyMembers

Most important social institution for manyconsumers

Family members assume different roles

(initiator, influencer, decision maker,purchaser, consumer)


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FAMILIES ANDHOUSEHOLDS


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Sources ofInfluence

Opinion Leaders are individuals who act as as aninformation broker between the mass media and theopinions and behaviors of an individual or group.

Market Mavens are consumers whohas and communicates considerablemarketplace information to others.


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Normative & InformationalInfluences

Normative Influence is social pressuredesigned to encourage conformity to theexpectations of others.

Normative influence is derives fromnorms, which are societies collectivedecisions about what behavior should

be.

Informational influence is the extentto which sources influence consumerssimply by providing information.

Informational influence is importantbecause it can affect how much time and

effort a consumer devote to informationsearch and decision making.


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Marketing Implications forWord of Mouth

Marketers options for dealing with

rumors

Marketers need to engineer favorableword of mouth

Marketers need to prevent and respondto negative word of mouth

Word of mouth has a dramatic effect onconsumers product perceptions and

offerings in the marketplace


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Product influences onconsumer behavior

o be successful, product must meet the needs of

target market better than the competition does

and to understand the needs of target market, it

is essential to get into the consumers attitude of

products core and augmented values.

product is anything a consumer acquires or

might acquire to meet a perceived need.

a ers o e


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0ayers o e

Product


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Product EnvironmentProduct-related stimuli that consumers atten

comprehend


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Characteristics of Products Speed - How soon do consumers

experience the benefits of thisproduct?

Compatibility - How well does this

product fit consumers currentaffect, cognitions and behavior?

Trialability - Can the consumer try

the product on a limited basis withlittle risk?

Observability - Do consumers seeor otherwise sense this product?

Simplicity - How easy is it for

consumers to understand and usethis product?

Relative advantage - What makesthis product better than competitiveofferings?

Communicability: Can results be

easily observed or described toothers?


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The Adoption CurveThe Adoption Curve

Time

%

Ado

ption

Ra

t e

0%

100%

InnovatorsEarly Early LateLaggards

adoptersmajoritymajority

3-5% 10-15% 34% 34% 5-15%


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EVALUATION TYPE

Decision based on overallvalue of alternatives(good attribute canoutweigh bad ones)

Absolutely must meet atleast one important criterion(e.g., car must haveautomatic transmission)

Combination of the two(e.g., one non-compensatory measure,then compensatory

tradeoffs on other attributes

Consumer finds initialcriteria unrealistic andproceeds to less desirablesolution


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Documents

Environmental and Product Influences