MODULE MKT 1063 MQF 2.0

CONSUMER BEHAVIOUR (MKT 1063)

4) Attitudes involve situational circumstances
▪ It is pertinent to understand how consumer attitudes vary from time to time.
▪ Attitudes are formed based on situational circumstances that need to be considered.

7.3 The Influence of Attitudes on Consumer Behaviour

Factors that influence attitude formation
1. Social Factors.
2. Direct Instruction.
3. Family.
4. Prejudices.
5. Personal Experience.
6. Media.
7. Educational and Religious Institutions.
8. Physical Factors.
9. Economic Status and Occupations.

Social Factors
Our attitudes may facilitate and maintain our relationships with members of positively valued
groups. Social roles and social norms can have a strong influence on attitudes.

Direct Instruction
Sometimes direct instruction can influence attitude formation.
For example, somebody gives information about the usefulness of some fruit. On the basis of
this information, we can develop a positive or negative attitude about that fruit.

Family
The parents, elder brother or sister provide information about various things.
Attitudes developed by an individual, whether positive or negative are the result of family
influence, are very powerful and difficult to change.

Prejudices
An attitude may involve a prejudice, in which we prejudge an issue without giving unbiased
consideration to all the evidence.
Prejudices are preconceived ideas or judgments where one develops some attitudes on
other people, objects, etc.
If we are prejudiced against a person, who is, accused of a crime, we may regard him as
guilty regardless of the evidence. We can also be prejudiced in favour of something .

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Personal Experience
The attitude will be more easily formed when personal experience involves emotional factors.
In situations involving emotions, appreciation will be more in-depth experience and longer
trace.

Media
As a means of communication, the mass media such as television, radio, has a major
influence in shaping people’s opinions and beliefs. There is new information on something
that provides the foundation for the emergence of new cognitive attitudes towards it.

Educational and Religious Institutions
As a system, educational and religious institutions have a strong influence in shaping
attitudes because they lay the foundation of understanding and moral concepts within the
individual.
Understanding the good and the bad, the dividing line between something that can and
cannot do is obtained from the center of the educational and religious institutions.

Physical Factors
Clinical psychologists have generally recognized that physical, health and vitality are
important factors in determining adjustment, and frequently it has been found that
malnutrition or disease or accidents have interfered so seriously with normal development
that serious behavioral disturbances have followed.

Economic Status and Occupations
Our economic and occupational positions also contribute to attitude formation.
They determine, in part, our attitudes towards unions and management and our belief that
certain laws are ‘good’ or ‘bad’. Our socio-economic background influences our present
and future attitudes.
Attitudes reflect more than just positive or negative evaluations: they include other
characteristics, such as importance, certainty, accessibility, and associated knowledge.

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Attitude Change Strategies
(1) Strategies for basic altering of attitudes among consumers
(2) Associating the product with special groups, events or causes
(3) Resolving two conflicting attitudes with a special group
(4) Altering components of multi-attribute model
(5) Changing the relative evaluation of attributes
(6) Changing beliefs about competitors’ brands
(7) Adding an attribute
(8) Changing the overall brand rating

Associating the product with special groups, events or causes
▪ For example, recently Mc Donald’s made a biggest fast food collaboration with cartoon

Despicable Me 3. Mc Donald’s added a new menus with minions influenced items in order
to help promote Despicable Me 3 . The research shows that it is indicated a good idea to
exposed to the consumers the reason oftheir sponsorship in order to avoid negative
motives.
Resolving two conflicting attitudes with a special group
▪ If the consumers were made to have a negative impact on the product or a specific
brand, but if they do not have any conflict, this made the consumers to alter their
judegement of the product. For example, disposing nappies can be made for the
environment but as it is made with organic cotton, it helps with the environment
sustainability.
Altering components of multi-attribute model
▪ It is done by adding an attribute that has been ignored by reflecting its actual product
innovation
Changing the relative evaluation of attributes
▪ For instance, within a product category such as dishwashing liquids, there are brands such
as Dawn that stress potency and brands such as Dove that stress gentleness. These two
brands of dishwashing liquids have historically appealed to different segments of the
overall dishwashing liquid market. Similarly when it comes to coffee, or when it comes to
headache remedies, there is the division between aspirin and acetaminophen.
Changing beliefs about competitors’ brands
▪ It is the strategy of changing consumer’s beliefs by comparing with the competitors
brands.For e.g.- Nike Vs Adidas

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Adding an attribute
▪ The first route, adding a previously ignored attribute, can be illustrated by the point that

yogurt has more potassium than a banana. For consumers interested in increasing their
intake of potassium, the comparison of yogurt and bananas has the power of enhancing
their attitudes toward yogurt.
Changing the overall brand rating
▪ Another strategy consists of attempting to alter consumer’s overall assessment of the
brand directly, without attempting to improve or change their evaluation of any single
brand attribute. Such a strategy frequently relies on some form of global statement that
“this is the largest selling brand” or “ the one all others try to initiate” or a similar claim that
sets the brand apart from all its competitors

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CHAPTER 8:
CULTURAL INFLUENCES

LEARNING OBJECTIVES:
1. Discuss how culture can influence consumer behaviour
2. Describe the subculture influence on consumer behaviour
3. Explain the influence of social class on consumer behaviour

8.1 Culture

8.1.1 Definition of culture
▪ Culture is the set of basic values, perceptions, wants, and behaviors learned by a
member of society from family and other important institutions.
▪ Marketers are always trying to spot cultural shifts so as to discover new products that
might be wanted.
▪ Every group or society has a culture, and cultural influences on buying behavior may
vary greatly from both country to county and country to country.
▪ Culture is generally a set of beliefs, language and symbols, rituals, meanings and customs
that encompasses the mutual characters of a social system within a society, nation or
nations

8.1.2 Characteristics of culture
▪ The following are the characteristics of culture:
1) Culture serves as an Invisible Hand
2) Culture is learnt
3) Culture can Satisfy Needs
4) Culture is Dynamic
5) Culture is shared

1) Culture serves as an Invisible Hand
▪ Culture is so natural and involuntary that many people take it for granted.
▪ For instance, when consumers are asked for a reason behind behaviour or actions.
▪ Consumers both view themselves in the context of their culture and react to their
environment based upon the cultural framework that they bring to that experience.
▪ Each individuals perceives the world through his own cultural lens.

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2) Culture is learnt
▪ Culture also is learning process.
▪ Individuals tend to acquire knowledge, values, beliefs and customs through
observation and experiences encountered.
▪ It can be learnt through formal learning, informal learning and technical learning.
▪ Formal learning includes the teachings by family members to children on the rightful
way to behave and such.
▪ Informal learning is acquired through imitation of others’ behavior. (example :
advertisement and social networks)
▪ Technical learning refers to instructing children on the “dos” and don’ts” relating to
social rules and regulations that need to be adhered to in public, schools and at
home respectively.

3) Culture can Satisfy Needs
▪ Culture generally exists in an attempt to satisfy society’s needs.
▪ It offers order, direction and guidance in all phases of human problem solving by
providing “ tried-and –true” methods of satisfying physiological, personal and social
needs.
▪ For example : culture provides standards and “rules” about when to eat, where to
eat, what is appropriate to eat and what to serve.
▪ Culture is also associated with what society’s members consider to be a necessity
and what they view as a luxury.
▪ Example : 55% of American adults consider a microwave to be a necessity and 36%
consider a remote control for a TV, DVD and other forms of consumer electronics to
be necessity.

4) Culture is Dynamic
▪ Culture is also dynamic and vibrant.
▪ It is not static but instead involves as changes occurs within a society or nation.
▪ Change occurs as a result of technological development, a shift in population,
political instability and assimilation of other cultures respectively.
▪ Marketers who monitor cultural changes also often find new opportunities to
increase corporate profitability.
▪ Example : the utilization of smartphones and other technological gadgets such as
computers and computer tablets amongst the elderly population has been on the
increase over the past decade as a result of the constant need to be in touch with
loved ones around the globe.

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5) Culture is shared

▪ Culture is collectively shared for it to be significantly vibrant and dynamic.
▪ The culture frequently is viewed as group customs that link together the members of

a society.
▪ Common languages is the critical cultural components that make it possible for

people to share values, experiences and customs.
▪ For example : a group that is formed in households, schools or colleges and even

houses of worship for people of different religious faiths would thus share similarities in
terms of beliefs, rituals and meanings.
▪ Example ; Religious institutions provide and spread religious consciousness, spiritual,
guidance and moral training.

8.1.3 Types of culture
There are three types of culture:
1. National Culture
2. Sub-Culture / Intra-National
3. Cross-Cultural Analysis

National Culture
▪ It is a form of “ shared” standard operating procedures, unstated assumptions, tools,

norms, values , habits about sampling the population and the like.
▪ It has a collective definition in terms of common language @ dialect amongst people

within a specific geographic area over certain vast periods of time.

Sub-Culture / Intra-National
▪ Sub-culture refers to a distinct group of existing as an identifiable segments within a larger,

more complex society such as nationality, religion, age, sex, social class and occupation.
▪ For example : Age subcultures like Baby boomers, Generation X and Generation Y
▪ Intra-national culture refers to micro-culture.
▪ It defined as different set of beliefs or values that are observed over considerable periods

of time within a nation of diverse ethnic groups such as Malaysia and United Kingdom.

Cross-Cultural Analysis
▪ It can be extended across two or more nations.
▪ The extent to which consumers from two or more nations are either similar or different in

consumption.
▪ In marketing products and service to Muslim dominated populations, global marketers

need to consider the elements of halal in their business transaction. Example : McDonalds

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8.2 Subculture

Subculture : which is a group whose members share significant belief and common
preferences.

The following are some common examples of subcultures, which typically include:
▪ Age cohorts = Baby Boomers, Generation X, Generation Y, etc.
▪ Gender and sexual preferences and variations
▪ Country of birth and racial backgrounds = where they were born, born internationally,
first-generation, second-generation etc.
▪ Regional and state/province locations and related lifestyles
▪ Differing religious beliefs, particularly those that strongly influence behavior and values
▪ Social class = upper, middle, lower class

8.2.1 Nationality and Ethnicity Subcultures
▪ Ethnic subculture provides a psychological source of group identification.
▪ Milton M. Gordon in his “The Sub-society and the Subculture”mentioned three functions

that an ethnic subculture may serve. They are:
✓ Ethnic subculture provides a psychological source of group identification.

An individual gains a sense of identity as he interacts with other members of the same
ethnic group. The interaction increases intimacy among the members and they feel
good to identify themselves with a distinct group.
✓ It also offers a patterned network of groups and organizations, and a member of the
said subculture may maintain cordial and intimate relationship with other members as
long as he wishes.
✓ An individual migrating to a new culture may find it difficult to understand many aspects
of that culture. Here the ethnic subculture to which he belongs may help him to view
the new culture by providing him a guideline on the new culture.
▪ Each of the ethnic subculture has unique traditions and behaviors that have potential
influence on product preferences and consumption behavior.
▪ A particular market consisting of ethnic subcultures may be the focus of a marketer. But,
it is not very easy to reach effectively a particular ethnic subculture with a particular
type of product.
▪ The reason is that not everyone in the same ethnic subculture will consume the same
type of product, nor will lead the same lifestyle.
▪ A Bangladeshi, for example, migrated to US from district (region) ‘X’ will not have the
same food habit as one migrated to the same country from district (region) ‘Y’ from

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Bangladesh. It means that, to be effective, marketers should further study ethnic
subcultures on the basis of demographic and other aspects. Based on the results of
such study, the same ethnic market may be further segmented and different offers
should be made for different subsegments.

8.2.2 Religious Subcultures
▪ An individual’s religious affiliation influences to a great extent his consumption pattern.
An individual’s religious affiliation influences to a great extent his consumption pattern.
▪ Those who belong to a particular religion may buy/not buy and use/not use certain
goods and services. Members of a particular religion constitute what we call religious
subculture.
▪ Religious beliefs and rituals may dictate the use of certain items and may discourage
the consumption of others. Muslims for example, buy and consume certain specific
food items heavily during the month of ‘Ramadan’ and buy lot of gifts during the ‘Eid-
Ul-Fitr”.
▪ Again, Islam discourages its followers the consumption of certain items such as
alcoholic beverages, pork etc.
▪ It is expected that members of a particular religious subculture will display similar
behavioral patterns in their purchases and consumption.
▪ But, differences may be found among the members of a particular religious subculture
in terms of their consumption and life style.
▪ A devout member of ‘Islam’ may consider it immoral to be materialistic, where another
member of the same religion may find nothing wrong in becoming materialistic.
▪ A marketer of cine-magazine will have no problem in reaching the later person, where
it will be almost impossible for him to penetrate the market consisting of people of the
other mentality and religious beliefs.

8.2.3 Generational (Age) Subcultures
▪ The elderly people display quite different consumption behaviors with that of teenagers
and middle aged people.
▪ Subcultures may also be based on the age differences of people living in the same
country and belonging to the same main culture. It is likely that those who belong to
the teen age group will behave quite differently than those of middle age or elderly.
▪ The youth market is a significant subculture for the marketer. It is important to marketers
not only because it is lucrative, but also because many consumption patterns held
throughout life are formed at this time.
▪ The youth, as they start their career in this age are flaunt with more luxury items. Since
they have little obligation at this age, they can spend whatever they are. Their

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consumption patterns lean toward personal care and luxury items.
▪ The middle aged group, on the contrary, are matured, worried about the future and

careful in making purchase decisions. As an attempt to build a reserve for the future,
they are likely to be conservative in buying many material goods, and are found to
spend money on protective investments.
▪ The elderly people display quite different consumption behaviors with that of teen-agers
and middle aged people.
▪ The elderly subculture consists of people who have gone on retirements or whose
regular income generating activities have ceased. They have got some special
characteristics.
▪ Most of them live with their children; their health conditions gradually deteriorate; have
emotional difficulties; have minimum amount of money at hands to spend; are
price/value conscious; are deal prone; like to shop as it has special meaning; are tuned
in to the mass media; and read direct mail, package labels, and package inserts.
▪ Because of their differences with other groups, they also require different types of
products.
▪ The elderly people, because of deteriorating health, will require more fat free foods,
tonic items, medical advice and medication as well as hospitalization. Since they have
limited incomes, they prefer comparison shopping.

8.2.4 Gender Subcultures

▪ Subculture may also be formed based on gender difference, such as subculture of males
and subculture of females.

▪ Since every society emphasizes distinct, specific roles for men and women, they are likely
to behave differently.

▪ As their behaviors vary, they consume different types of products and respond differently
to marketing appeals.

▪ Men for example, are influenced more by aggressiveness, competitiveness,
independence, self-confidence, and masculinity.

▪ Women on the other hand, are influenced by neatness, gentleness, tactfulness,
talkativeness, and femininity. There are products which are equally used by men and
women.

▪ But, different appeals in the same product are needed for these two groups. Cosmetics,
perfumes, clothing, bicycles etc., are used both by men and women.

▪ But, you know that different designs, colors, sizes, shapes, and fragrances are provided for
by the marketers to appeal people of different sex. Bicycle, for example, is designed
differently for men and women.

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▪ Even promotional appeals are made different for these two groups. Again, among the
females, those who are professionals, behave differently than those of non-
professionals/housewives.

▪ The working women, particularly those, who are married, will again require different types
of products and services that may not be bought by unmarried working women. The
shopping patterns of these two groups will also vary.

▪ Since characteristics, attitudes, and needs vary between these two groups they may be
considered as two different market segments.

8.3 Social class

8.3.1 Definition

• Most societies have some form of social class structure. This structure infers a certain
amount of prestige or status to individuals based on their classification within the
hierarchy.

• Members of each class share similar values and social status, and also tend to have shared
patterns of consumer behaviour.

• An individual’s social class can affect the leisure activities they take part in, the products
and services they purchase, the organisations they join and their attitudes to
certain products.

• Social class is relatively a permanent and ordered division in a society whose members
share similar value, interest and behaviour.

• Social class is not determined by a single factor, such as income but it is measured as a
combination of various factors, such as income, occupation, education, authority, power,
property, ownership, lifestyles, consumption, pattern etc.

• There are three different social classes in our society.
• They are upper class, middle class and lower class.
• These three social classes differ in their buying behaviour.
• Upper class consumers want high-class goods to maintain their status in the society.
• Middle class consumers purchase carefully and collect information to compare different

producers in the same line.
• Lower class consumers buy on impulse.
• Therefore marketing managers are required to study carefully the relationship between

social classes and their consumption pattern and take appropriate measures to appeal
to the people of those social classes for whom their products are meant.

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Upper Upper Class
• Upper-Uppers are the social elite who live on inherited wealth and have well-known

families. They maintain more than one home and send their children to the best
schools. They are in the market for jewelry, antiques, homes, and foreign vacations.
While small as group they serve as a reference group to others to the extent that other
social classes imitate their consumption decisions.

Lower Upper Class
• Lower Uppers are persons who have earned high income or wealth through

exceptional ability in their profession or business. They usually come from the middle-
class. They tend to be active in social and civic affairs and seek to buy the symbols of
social status for themselves and their children, such as expensive cars, homes and
schooling. Their ambition is to be accepted and the upper-upper status, a status that
is more likely to be achieved by their children than themselves.

Upper Middle Class
• Upper Middles possess neither family status nor unusual wealth. The primarily

concerned with “career”. They have attained positions as professionals, independent
businesspersons, and corporate managers. They believe in education and want their
children to develop professional or administrative skills so that they will not drop into the
lower stratum. They are civic minded and are a quality market for good clothes, homes,
furniture and appliances.

Lower Middle Class
• The common man represents this group. Some are highly paid workers and small

business owners and may not have a very high education.This class aspires for
respectability. They wish to have well maintained houses in good neighbourhoods.
Marketeers sell products, to this group, which have respectability and social
acceptance in the society.

Upper Lower Class
• Upper Lowers are working, though their living standard is just above the poverty line.

They perform unskilled work and are poorly paid. Often they are educationally
deficient. Although they fall near the poverty line, they manage to maintain some level
of cleanliness.

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Lower Lower Class
• Lower Lowers are visibly poverty-stricken and usually out of work. Some are not

interested in finding permanent jobs and most are dependent in charity for income.
Their homes and possessions are “dirty, ragged, and broken-down”.

How does social class affect consumption?
• Social class affects consumer behaviour in different ways as many consumers are

motivated by social class factors to acquire and consume certain products and services.
Some of the ways in which social class can impact consumer behaviour include
conspicuous consumption, the trickle-down effect and status float behaviour.

Conspicuous consumption
▪ Conspicuous consumption refers to the purchase and subsequent conspicuous use

of expensive products that clearly display one’s social class.
▪ The newly wealthy sometimes engage in conspicuous consumption so that others know

that they have now ‘arrived’.
▪ For example, some celebrities, like the American talk show host Jay Leno, have extensive

automobile collections of very expensive modern or antique cars.
▪ This car collecting has now become a hobby of some wealthy consumers and they indulge

themselves primarily to display their possessions to their peers.

Trickle-down effect
▪ The trickle-down effect occurs when consumption patterns observed in the upper classes

are copied by the lower classes.
▪ Consumers in the lower classes sometimes aspire to be like their wealthier counterparts and

so they may consume similar products or services in order to ‘live like the other half does’.
▪ Members of lower classes aspire to be wealthy and one way of feeling that this is being

achieved is by purchasing products that the wealthy do, including cars, clothing and food.

Status float
▪ Status float is effectively the reverse of the trickle-down effect, whereby consumers in the

upper classes begin to copy purchase patterns and consumption behaviour previously
seen in the lower classes.
▪ In many Western countries, wealthy suburban youth are now frequent purchasers of rap
music and hip hop clothing.
▪ The hip hop phenomenon originated in the working-class neighbourhoods in New York
City.

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8.3.2 Social Classes’ Characteristics

The major social class characteristics are: they (1) are bounded. (2) are hierarchical,
(3) are mutually exclusive, (4) are exhaustive, (5) are influential, (6) exhibit status, (7)
multidimensional, (8) restrict behavior, (9) are homogeneous, and (10) are dynamic.

1. Social classes are Bounded:
By bounded it is meant that there are clear breaks between each social class. This
break separates one social class from another. Such a boundary clearly indicates who
will be included and who will be not in a particular class.

2. They are Hierarchical:
Social classes are ordered. It means that, they are positioned vertically. One social class
precedes the other, and the individuals placed in different social classes have different
statuses from high to low.

3. Social Classes are Mutually Exclusive:
Social class system indicated that an individual can only belong one social class in a
particular time period. It does not mean that movement between the classes is
restricted. An individual can move from one class to the another over time. But,
generally, an individual is placed in one social class at a particular time.

4. They are Exhaustive:
Social classes are exhaustive in the sense that everyone in the society must fit in some
social class or other, i.e., an individual in a society cannot be classless. Even if one does
not possess any material thing, he will be considered as member of a particular class.

5. They are Influential:
Social classes are important determinants of consumer behavior. Variations in
consumption of goods and services indicate that social classes are influential. But, the
degree of such influence depends on an individual's class awareness and class
consciousness.

6. They Exhibit Status:
Status means one's position or rank in the social system as perceived by others. Whether
an individual will assume high or low status depends on the class to which he belongs.
Certain social class members assume higher status than members of other social
classes. One's status within the class, again depends on his personal characteristics. For
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example, all university professors do not enjoy the same status as their personal
characteristics vary.

7. Social Classes are Multidimensional:
Social classes are not based on one property or dimension. They are rather based on
many, and, as a result they are termed as multidimensional. We do not classify people
according to one criterion, such as income, rather number of other criteria are used
for social classification. Some of the other criteria as used in social classification are:
influence, occupation, education, heredity, and living area.

8. They Restrict Behavior:
It is expected that members of a particular social class will interact with members of
their class except few exceptions. People also feel comfortable interacting with people
of the same class, mind and mentality. Such a unidimensional interaction restricts
interpersonal communications about products, stores, and similar topics. People of
upper class, for example, may talk about a particular product whose name is not even
heard by the members of a lower class.

9. They are Homogeneous:
Individuals belonging to a particular social class will have similar attitudes, values,
beliefs, interests, activities, lifestyles, and consumption behavior. Where they will differ
from the members of others classes in these respects. This homogeneity among the
members of a particular social class helps marketers segmenting markets effectively.

10. Social Classes are Dynamic:
The concept of social class is not a rigid one. By this we mean that, individual may
move among different social classes over time- upward or downward. Again, status of
one particular social class may also change over time as the society reassesses social
class status. Air hostesses' status, for example, in our country has changed over time
with the change in people's attitudes toward this profession. This change has brought
change in their social class position.

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Marketing Strategy and the Social Classes
▪ Marketeers are interested in supplying the right products to the right customer (target

segment)at the right price at the right time and with the right promotion.
▪ For this, first the target segment is selected and this can be done on the basis of social

class, which is a better prediction of a consumer’s lifestyle than income.
▪ Reasons for shopping and purchases also differ among the social classes.
▪ The upper classes shop for pleasure, and tend to visit stores which are exclusive and

sophisticated.
▪ The situation of stores are also important. They visit boutiques and are particular where

they go shopping.
▪ The upper and middle classes indulge in greater information search and get information

through the TV, magazines, newspapers, and from groups and individuals of their social
status.
▪ The lower classes are involved in buying less costly products and have much less
information. They are more concerned with social relationship and respond to products
and promotion of a different nature.

[Source from https://www.wisdomjobs.com/e-university/consumer-behaviour-tutorial-
94/what-is-a-social-class-10500.html]

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CHAPTER 9:
SOCIAL INFLUENCES

LEARNING OBJECTIVES:
1. Explain the influence of reference group in consumer behaviour
2. Discuss how family can influence consumer behaviour
3. Describe the influence of roles and status on consumer behaviour

9.1 Reference Group

9.1.1 Definition
▪ Reference groups are groups that consumers compare themselves to or associate with.
▪ Reference groups are similar to opinion leaders in that they can have a profound

influence on consumer behavior.
▪ Reference groups are considered a social influence in consumer purchasing.
▪ They are often groups that consumers will look to to make purchasing decisions. So if a

reference group endorses a product, either through use or statements about the product,
those that look to the group will often purchase that product.
▪ On the other hand, if a reference group disapproves of a product, those that associate
with that group will probably not purchase the produ
▪ A group is two or more persons who share a set of norms and whose relationship makes
their behaviour interdependent.
▪ A reference group is a group of people with whom an individual associates.
▪ It is a group of people who strongly influence a person’s attitudes values and behaviour
directly or indirectly.
▪ Reference groups fall into many possible groupings, which are not necessarily to be
exhaustive (i.e., non over-lapping).

9.1.2 Types of Reference Group
▪ There are 4 types of reference group:

1. Aspirational Group
2. Primary and Secondary Group
3. Non-Membership and Membership Group
4. Formal and Informal Group

CONSUMER BEHAVIOUR (MKT 1063)

Aspirational Group
▪ These are groups in which in which people are not members but desire to become on of future date.
▪ The aspiration may become true once they are ready to join the group at the future point of time.
▪ The influences exerted by such group members on consumers make them join many group every now

and then.

Primary and Secondary Group
▪ Primary Groups are basically ones whose members are closely knit. Family and relatives fall in this

group.
▪ Secondary Groups are not as closely knit as Primary Groups. They may be memberships in clubs where

the meeting may happen only once a while.
▪ The influence exerted by both the Primary and Secondary members play a crucial role in the decision-

making process pertaining to purchase of goods and services.

Non-Membership and Membership Group
▪ Membership Groups are the ones which insist on people to become members to avail benefits offered

by the same.
▪ Non-Membership group are general groups in which one associate them for keeping self-updated

about certain aspects of their interest. Such groups do not insist on any types of memberships.
▪ The influence exerted by Membership groups on consumers and their purchase decisions are many a

times higher than of the same from non-Membership groups.
▪ This is mainly because of the adherence levels exhibited in Membership groups.

Formal and Informal Group
▪ Formal groups are bound by set rules and regulations. Informal group lack the same.
▪ The unstructured nature of informal groups tends to exert lesser influence over consumer preferences

than the Formal Groups which are highly structured.
▪ Due to the structure nature of Formal groups, the influence on the group members with respect to

various aspects is generally high.

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9.1.3 Factors Affecting Reference Group Influence
▪ Many factors pertaining to Reference Groups tend to influence consumers and their

purchase related decisions.
▪ Three factors concerned with Reference Groups are:

1) Norms
2) Status
3) Roles.

Norms
▪ Are rules set by Reference Groups in writing.
▪ People who belong to the Group are expected to adhere to the same at all points of

time.
▪ Norms force consumers to go in for certain options as a part of their adherence process.

Status
▪ Status of members in the reference groups matter the most when it comes to decision

making pertaining to purchase.
▪ Member who are highly positioned within a group have the power to take the final

decision of purchase.
▪ For instance, in the case of a family, the father holds and upper hand in decision making

pertaining to purchases.

Roles.
▪ Roles here refer to the part played by every member of the reference group.
▪ In a typical family environment, each family members plays a different role like

gatekeeper, initiator, decision maker, influencer and many more.

[ Reference to https://bbamantra.com/reference-group-consumer-behaviour/ ]

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9.2 Family

9.2.1 Definition of family

▪ Family is a social group. It is also an earning, consuming and decision-making unit.
▪ It also can be defined as two or more persons related by blood, marriage, or adoption

residing together.
▪ All purchases are influenced by family members.
▪ Family is a closely-knit unit, and the bonds in a family are more powerful than in other

groups.
▪ This is the family formed by an individual with his or her spouse and children.
▪ Normally, after marriage, an individual’s purchasing habits and priorities change under

the influence of spouse.
▪ As the marriage gets older, the people usually settle in certain roles.
▪ For instance, a father normally takes decisions on investment whereas the mother takes

decision on health of children.
▪ From a marketing viewpoint, the level of demand for many products is dictated more by

the number of households than by the number of families.
▪ The relevance of families to marketing is therefore much more about consumer behaviour

than about consumer demand levels.

9.2.2 Family Decision-Making and Members’ Roles

▪ Marketers recognize that families operate as units in terms of consumption behavior, and
many researchers have studied the dynamics of family decision-making.

▪ Specifically, marketers focus on husband–wife decision-making, the relative influence
each family member has regarding consumption, the children’s role in family decision-
making, and the multiple roles that family members may assume regarding the purchase,
use, and maintenance of their homes, products, and services.

HUSBAND–WIFE DECISION-MAKING
Marketers have studied each spouse’s relative influence in consumption and identified four
patterns of husband–wife decision-making:
1. Husband-dominated decisions are those where the husband’s influence is greater

than the wife’s.
2. Wife-dominated decisions are those where the wife’s influence is greater than the

husband’s.
3. Joint decisions are those where the husband’s and wife’s influences are equal.

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4. Autonomic decisions are those where either the husband or the wife is the primary
or only decision maker.

CHILDREN’S INFLUENCE ON FAMILY DECISION-MAKING
▪ Over the past several decades, children have played a more active role in what the family

buys, as well as in the family decision-making process.
Children’s growing influence is the result of families having fewer children (which increases
the influence of each child), the existence of more dual-income couples who can afford
to permit their children to make a greater number of choices, and encouragement by the
media to allow children to “express themselves.” In addition, single-parent households
often push their children toward household participation and self-reliance.
▪ The study identified the following tactics that children typically use:
1. Pressure: The child demands, threatens, and tries to intimidate the parents.
2. Exchange: The child promises something (e.g., to “be good” or to clean her or his

room) in exchange.
3. Rational: The child uses a logical arguments and factual evidence.
4. Consultation: The child seeks parents’ involvement in the decision.
5. Ingratiation: The child tries to get the parent in a good mood first and then make the

request.

FAMILY MEMBERS’ ROLES
Here’s another perspective on family decision-making. This time it consists of identifying the
roles that members play in buying decisions and consumer behavior.

1. Gatekeepers: Often the parents who control the information that reaches the family’s
children by using the parental control features available on TVs, computers,
and other communication devices. As described earlier, indulgent and authoritative
parents are attentive gatekeepers. When targeting these parents, electronics makers
should emphasize their products’ sophisticated information-control features.

2. Influencers: Family member(s) who provide information to other members about
a product or service. For example, companies selling SUVs should recognize that
children influence the family’s purchase of a new model.

3. Deciders: Although children might have influenced the car’s purchase, the parents
are those with the power to decide which car to buy.

4. Buyers: Those who manage the actual purchase. For example, one spouse might
manage decorating the home and another buying the family’s transportation.

5. Preparers: Transform products—manly foods—for the consumption of the family.
6. Users: Uses or consumes the product or service. Particularly, for gifts given from one

family member to another, the buyer and user is different.

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7. Maintainers: in charge of repairs so that products continue to work well.
8. Disposers: Carries out the disposal of a product or discontinuation of a service.

▪ Children from dual-income households are often the deciders, buyers, and preparers of
foods, so marketers of cuisine goods must study the roles of children in this area of the
family’s consumption.

▪ For example, children should be able to open packaging safely and easily and
understand measurement units and preparation instructions.

▪ Because children—in the role of maintainers—often perform housekeeping chores by
themselves; makers of, say, vacuum cleaners should observe how children use their
products and make sure that kids can do so safely.

9.2.3 Family Life cycle
▪ The family life cycle represents the life stages of a typical family.
▪ It is a composite variable that combines marital status, size of family, age of family members

(focusing on the age of the oldest or youngest child), and employment status of the head
of household, and then classifies the family into a “typical” stage.
▪ The ages of the parents and the relative amount of disposable income are inferred from
the family’s stage in the cycle.
▪ There are several stages in the FLC.

1. Bachelorhood
2. Honeymooner
3. Parenthood
4. Post-parenthood
5. Dissolution

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Bachelorhood:
▪ The bachelorhood stage refers to young single men and women, mostly college-

educated, who have incomes that allow them to leave home and establish their own
households.
▪ Increasingly, though, even employed college graduates continue to live at home and
save toward setting up their own homes.
▪ Single persons spend considerable amounts on clothing, cars, travel, and entertainment.
Marketers should differentiate between singles who live at home (with their parents) and
those who have left it.

Honeymooners:
▪ The honeymooners stage refers to young and newly married couples. Educated,

engaged couples have a combined discretionary income. If both establish career paths,
their incomes grow steadily.
▪ A spouse going back to graduate school usually calls for curtailing spending and a more
moderate lifestyle. People with considerable discretionary incomes are prime targeting
prospects. Most couples overspend on their weddings.
▪ Afterward, they are in the market for home furnishings, travel, and financial planning
services.
▪ Because many young husbands and wives both works, these couples often have a
combined income that permits them to purchase more indulgent possessions, as well as
save and invest money.
▪ Honeymooners have considerable start-up expenses when establishing a new home.
They must find a place to live, buy furniture, and decorate and set up their households.

Parenthood:
▪ The parenthood stage designates married couples with at least one child living at home.
▪ This is the longest stage of the family life cycle. Also known as the “full-nest” stage,

parenthood usually extends over more than a 20-year period.
▪ Because of its long duration, this stage can be divided into shorter phases: preschool

phase, elementary school phase, high school phase, and college phase.
▪ Throughout these parenthood phases, the interrelationships of family members and the

structure of the family gradually change.
▪ Furthermore, the financial resources of the family change significantly, as one (or both)

parents progress in their careers and as child rearing and educational responsibilities
gradually increase and then decrease as children become self-supporting.

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Post parenthood:
▪ The post-parenthood stage refers to older married couples (or singles) with no children

living at home.
▪ Because parenthood extends over many years, the start of this stage (also known as

“empty nest”) is traumatic for some parents and liberating for others.
▪ For many parents, this stage represents the opportunity to do all the things they could not

do or afford while their children lived home or went to college.
▪ During this stage, most married couples are financially secure and have a lot of leisure

time. They travel more frequently, take extended vacations, and might even to able to
purchase a second home in a warmer climate. The couples have higher disposable
incomes because of savings and investments, and they have fewer expenses (no
mortgage or college tuition bills).
▪ They look forward to being involved grandparents. Therefore, families in the post
parenthood stage are an important market for luxury goods, new automobiles, expensive
furniture, and vacations to faraway places. Chapter 12 discusses postretirement
consumer behavior.

Dissolution
▪ The dissolution stage refers to the family with one surviving spouse.
▪ If the surviving spouse is in good health, is working or has adequate savings, and has

supportive family and friends, the adjustment is easier.
▪ The surviving spouse (women live longer than men) often tends to follow a more

economical lifestyle.
▪ Many surviving spouses seek each other out for companionship; others enter into second

(or third and even fourth) marriages.

9.3 Roles and Status

9.3.1 Definition
▪ A person participates in many groups like family, clubs, and organizations.
▪ The person’s position in each group can be defined in term of role and status.
▪ A role consists of the activities that a person is expected to perform.
▪ Each role carries a status. People choose products that communicate their role and
status in society.
▪ Marketers must be aware of the status symbol potential of products and brands.
▪ Each person possesses different roles and status in the society depending upon the
groups, clubs, family, organization etc. to which he belongs.
▪ The social role and status profoundly influences the consumer behavior and his

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purchasing decisions.
▪ Example: A person who is a Chief Executive Officer in a company will buy according
to his status while a staff or an employee of the same company will have different
buying pattern.

9.3.2 Types of consumer roles
▪ Consumers have different roles in purchasing products and services, and these roles
can influence their buying behavior:
• Influencer
• Prosumers
• Personas

The Role as Influencer
▪ Influencers are people who have a relatively large audience in which to tout their beliefs.
▪ In the consumer world, influencers can impact the success or failure of a product by using

it or shunning it.
▪ A marketer often targets influencers rather than the entire target market, because these

influencers can alter the behavior of other people.
▪ Influencers can be influential buyers, retailers, or people, such as journalists or industry

professionals (among others).
▪ Influencers are sometimes ranked according to six criteria: market reach (how many

people the influencer will connect with), independence (no vested interest in product),
frequency of impact, expertise, persuasiveness, and thoroughness (the extent to which
influence is exerted across the decision lifecycle).

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The Role as Prosumers
▪ In its most common usage, a prosumer is usually a serious hobbyist, with similar interests

and skills of professionals.
▪ The term “prosumer” has transformed from meaning “professional consumer” to meaning

“product and brand advocate.”
▪ Rather than simply “consuming” products, people are becoming the voices of those

products and significantly impacting the success or failure of companies, products, and
brands, particularly through their involvement on the social web.
▪ The leaders of this shift are the members of the social web — bloggers, microbloggers,
forum posters, social networking participants, and so on, who spread messages, influence
people around the world, and drive demand.
▪ Refer to a consumer who exceeds his/her role by creatively engaging and co-producing
value alongside an organization or platform
▪ For example, the availability and relatively low cost of photography equipment have
given rise to many people who are serious about photography but are not usually paid for
their work.
▪ This is an important role for marketers to consider, as the prosumer generally uses
professional (or nearly professional) equipment and has relatively high disposable income.
▪ Other examples of prosumers are found in home improvement and cooking segments.

The Role as Personas
▪ A persona is a social role.
▪ Personas describe customers while roles describe relationships between customers and

the product or service.
▪ Roles do not resemble real people. They define a collection of characteristic needs,

interests, expectations, and behaviors in relation to a product/service.
▪ Personas on the other hand are figurative models that resemble real customers, even

down to photos, background information, and personal history.
▪ Marketers often create a “persona” for their products and services in order to represent

the different user types in a target market.
▪ A marketer may decide his product is best suited for a specific demographic and will

define that demographic as clearly as possible.
▪ For example, “soccer mom” might be the target market for minivans. A persona may be

created to capture the “soccer mom,” perhaps by giving her a name or other defining
characteristics.
▪ A persona simply helps a marketer get a clearer picture of who will be buying his product.

[https://courses.lumenlearning.com/]

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CHAPTER 10:
TECHNOLOGICAL INFLUENCES

LEARNING OBJECTIVES:
1. Define technology
2. Explain the technological influences on consumer behaviour

10.1 Introduction to Technological Influences

Definition of Technology
▪ Technological environment is the forces that create new technologies, creating new

product and market opportunities.
▪ Technology has released such wonders as antibiotics, organ transplants, notebook

computers and the Internet.
▪ New technologies create new markets and opportunities.
▪ Companies that do not keep up with technological change soon will find their products

outdated.

Role Of Technology
▪ The journey of change from conventional devices to modern devices with super speed

data helped the marketer to reach consumers of all ages and satisfy their needs. With the
help of technology marketer can be connected with the consumer whether the consumers
are online or offline.
▪ Technology makes the whole world a one community and that helped the company to
reach all consumers easily and quickly.
▪ In olden times, if a consumer wants to buy a product, he needs to reach shop within the
working hours of that shop. Otherwise, he won’t be able to buy that product.
▪ But with the emergence of e-commerce, customers can buy products at any time. If they
want to buy a product or get any information about the product, he can get it at another
time.
▪ Now, every consumer knows that he is the king of the market and that have much more
power than the marketer.
▪ Consumer’s level of expectation is also changed a lot when these is smart devices got a
place in our life. So all business should be careful in updating with the changes, or they will
be thrown out of market.
▪ The attitude of marketer is greatly influenced by social media. Customer services were
provided by companies through emails and phone calls. But with the popularity of social

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medias and live chats, if an enquiry from a customer is not answered within seconds, the
brand reputation of the company will be affected and there is no place for the company
in the minds of whole world.
▪ In short, with technology consumers are more connected, their expectations become high
and more sophisticated tools are being used for getting the needs satisfied.

Technology-stages of transition
▪ About a century ago, no one could even imagine shopping from home through internet or

virtual stores. But, now it became a reality.

PRE-1800s: 1800s: THE BIRTH LATE 1800s-MID
TRADITIONAL SHOPS OF DEPARTMENT 1900s: MAIL ORDER
AND CATALOGUES
STORES

1900s: BABY BOOM LATE 1900s: THE 2000s-NOW: THE
ERA OF BIG BOX INTERNET AGE

STORES

PRE-1800s: TRADITIONAL SHOPS
▪ Barter system was common in this era. Goods produced at one place is sold locally and

transported to far away places.
▪ Most of the retail business is done in small scale as a family owned establishment.

1800s: THE BIRTH OF DEPARTMENT STORES
▪ During this era, the transportation system became more popular and effective.
▪ As it is less costly, people began to use this mode for transporting goods to distant places.
▪ Then the retail sector began to grow. The largest retail store “Marble Palace” was built by

Alexander Stewart in 1846.
▪ It became the first department store and later it influenced others to develop stores in this

design.
▪ The introduction of small paper roll recording each transaction resulted in first “sales

receipts”. Later, this became inevitable for doing any business. Then department stores
began to flourish in our country.

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LATE 1800s-MID 1900s: MAIL ORDER AND CATALOGUES
▪ This is a period of boom for mail order business.
▪ During this period, Catalogues became popular.
▪ Mail order catalogues specifying name of product and price helped to keep a record for

sending goods to long distance.

1900s: BABY BOOM
▪ After the Second World War, a population explosion known as “baby-boom” increased the

consumer demand.
▪ As a result, new highways, shopping centers etc. were emerged.
▪ Then the first credit card program is launched in America 1958.
▪ In 1960 the debit card is invented.
▪ In 1962, discount stores like Walmart, Target etc. were opened.

LATE 1900s: THE ERA OF BIG BOX STORES
▪ With the emergence of large bulk item stores, department store faces a decline in their

business.
▪ Big box store chains got a place in the minds of consumers as they can purchase all items

at one location.
▪ Walmart became largest retail store. Amazon.com became very active, selling goods

online through internet.

2000s-NOW: THE INTERNET AGE
▪ During the internet age, many retail shops and department stores came to an end.
▪ They close the doors as the consumer turned to online shopping from their homes.
▪ Amazon became the largest online retailer.
▪ In 2006 Face book debuted, and companies could promote themselves on social network.
▪ In 2008, Apple and iTunes, became the largest music retailer in the world.
▪ The technology paved way to calculate myriad transactions in seconds.

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Trends Of Innovation
▪ In order to survive, a business needs to customize its products. Consumers are voting again

and again
▪ (through their purchases) for devices they offer peace of mind and anticipate their needs.
▪ Following are some of the innovative trends shown impact on consumer behavior:

1) Smart Phones
▪ Out of 5 billion people who are using mobile phones, 1.08 billion people are smart
phone users. People prefer smart phones than normal mobile phone because of the
multi-function utilities of smart phones.
▪ They can be used for the purpose of gaming, apps, mobile advertising and social
networking.
▪ There is a direct impact between increasing demand of smart phone and purchase
pattern of consumers.
▪ Smartphone increases the convenience of users as it helps for e-mail, chat, shopping
etc. Smart phones work as a useful shopping aid, for instance, getting instant shopping,
scanning product bar code etc.

2) Social media
▪ Social media is a platform for communication both for consumers and sellers.
Consumers seek advice on making purchase whether consumer durable or service
through social networking sites like Face book and Google.
▪ Similarly many companies are using them to influence consumer opinions and buying
patterns.

3) Online education
▪ Many students are moving from traditional method of learning to E-learning.
▪ Online segment is categorized into different sub-segments such as K-12 learning, Higher
Ed learning and Corporate E-learning.
▪ Online education helps the students to get access of highly qualified professors across
different
geographical regions.

4) Mobile payments
▪ Now days, consumers are making payment online. Mobile payment facilitates transfer
of money through mobile phone.
▪ It can be made through premium SMS, Direct mobile billing, Mobile web payments,
and contactless NFC (Near Field Communications).
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5) Mobile apps
▪ Mobile apps can greatly influence the consumer behavior.
▪ Now a days, mobile apps are widely use in every industry like banking, consumer
goods, manufacturing, media & entertainment, pharmaceuticals, travel and
hospitality.

10.2 The Influence of Technology on consumer behaviour

▪ There is no doubt that technology has changed the approach of companies on how to
conduct business. It’s hard to believe that in the past ten years the significance of so many
things has changed almost too quickly.

▪ Here is a quick brief on how the technology is exerting its influence on consumer behavior :
1. Social Media
2. Online Opinions
3. Mobile devices and payments
4. Integration of Technologies
5. Augmented Reality

10.2.1 Social Media

▪ The meaning of social networking websites and what they serve has changed
dynamically. It has come a long way from being a place for just socializing and
entertainment to being a severe marketing and selling platform.

▪ Businesses, from MSMEs to larger companies, need to keep an eagle eye on these
platforms and use these to form a better bridge between their services and customer.

▪ The Q&As will provide you with details like what do consumers want, what are they
looking for, you and your competitor’s strengths and weaknesses.

▪ We have come a long way of discussing how social media and search influence the
customer’s decision journey.

▪ From Facebook to Twitter, to Youtube, to Amazon; the users look almost everywhere
possible for an authentic buyer reaction before buying.

▪ Also, Youtube videos provide customers with better feedback and reviews with
different products and comparisons between different products.

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10.2.2 Online opinion

▪ Discussion forums like Quora, WikiAnswers, StackExchange, Facebook Questions,
Reddit, Twitter, Instagram and even LinkedIn Answers (oriented around professionals)
are helpful in gauging your audience’s views.

▪ You need to be quick on working with all kinds of feedback to your product or services.
Just ‘replying’ to the query is not enough.

▪ A negative response needs to be addressed and elucidated immediately. Just making
a feedback forum and watching over your user base won’t solve anything. With
everyone now connected, it is easy to be cornered on that one weak point of your
business. Note, one user’s experience may crumble up your loyal customer base.

▪ Return with a proper solution; apologies not with just words but also compensate for
their negative experience. Reaching out to your customer with solutions is a perfect
way to win loyalty.

▪ Remember to ‘act’ on feedbacks because if you don’t, they sure will. These online
responses possess the power to change the consumer’s buying behavior to a
considerable extent

10.2.3 Mobile Device and payments

▪ It’s essential to create your online presence on mobile-friendly websites and even app
stores. Everything is accessible.

▪ And not only just that, not being available through their phones gives a wrong
impression of not being authentic or an excellent service or product provider.

▪ A person in Walmart or Target with a mobile in their hand are readily browsing around
the product’s details and reviews, and buy the product that fits their need.

▪ Being online is now way more simple and helps in keeping consumers and companies,
both informed about each other, and it isn’t a brand new thing.

▪ Moreover, increased mobile payment security has heightened online buying activities.
People are now more comfortable to go window shopping on their smartphones. The
online buying trend has climbed drastically in the past few years. Consequently,
according to Gartner, retailers are investing heavily in digital techniques to meet their
customer’s expectations.

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10.2.4 Integration of Technology

▪ IoT is not something you could ignore now. From Alexa to multiple wearable devices to
everything through the cloud, things are getting connected, this, in turn, gives you the
IoT phenomenon.

▪ Cloud allows companies to monitor consumer behavior like never before.
▪ With only more progress to come its way, the big data and IoT will be able to produce

more personalized services to customers.
▪ New product ideas and defining the user base is only getting more explicit with

everything surfboarding the cloud.
▪ Sharing, storing, and outsourcing have become easier drastically in the past few years

account.
▪ Data on the cloud allows companies with access to full-scale data to analyze the

buying behavior and improving algorithms to assist them in serving their customers
better

10.2.5 Augmented Reality

▪ Now, many brands have taken a few more steps forward into Augmented and Mixed
Reality. Top examples being:
1) IKEA
▪ To solve the problem of how a sofa or a Shelf Unit is going to look in your room, the
furniture retailer IKEA brought in an AR app to help visualize e-commerce
consumers to how an item might look in their area.
2) Timberland

▪ In 2014, Timberland provided a virtual fitting room created by Lemon & Orange.
Timberland virtual room allows shoppers to view themselves in different outfits
without any hassle.

▪ Many other brands like the following have also been providing their customers with the
Augmented Reality techniques as an easy-going way to understand their products and
with fun AR experiences:
✓ Mercedes
✓ BMW
✓ Lego
✓ Converse

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✓ Ray-Ban
✓ Cadbury
✓ Patron Tequila
✓ Tesco
✓ Lacoste
▪ These technologies have proved to influence the user’s purchase intention positively.
A study in International Marketing has shown how exactly the use of AR has favorably
changed the customer’s shopping behavior.

[https://www.hitechnectar.com/blogs/technology-consumer-behavior/]

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REFERENCES:
TEXTBOOK:
Kotler, P., & Armstrong, G., (2018). Principles of Marketing: Global Edition (17th edition.) UK:
Pearson education.
Leon Shiffman & Joe Wisenblet (2019). Consumer Behaviour ( 12th. Edition). New York.
Pearson.
Michael R. Solomon. (2018). Consumer Behaviour: Buying, Having and Being (12th edition.)
Global Edition. UK: Pearson.
Wayne D. Hoyer, Deborah J. MacInnis & Rik Pieters (2018). Consumer Behavior (7th Edition).
USA. Cengage Learning.
INTERNET
https://www.hitechnectar.com/blogs/technology-consumer-behavior/
https://courses.lumenlearning.com/
https://www.tutorialspoint.com/consumer_behavior/
https://www.wisdomjobs.com/e-university/consumer-behaviour

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