Factors Influencing Consumer Behavior

Social

Referencegroups

Family

Rolesand

status

PersonalAge andlife-cycle

OccupationEconomicsituationLifestyle

Personalityand

self-concept

Psycho-logical

MotivationPerceptionLearning

Beliefs andattitudes

Buyer

Culture

Sub-culture

Socialclass

Culture

Sub-culture

Socialclass

Cultural

Culture

Sub-culture

Socialclass

Culture

Sub-culture

Socialclass

Cultural

Culture is the fundamental cause of a Person's Wants and Behavior.

Culture is the set of basic values, perception,wants,behaviour learned by the members of society from family and other institutions.

Culture

Factors Affecting Consumer Behavior:

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Subculture• Group of people with shared

value systems based on common life experiences.

• Hispanic Consumers• African American

Consumers• Asian American Consumers• Mature Consumers

Factors Affecting Consumer Behavior

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Social Class• Society’s relatively

permanent & ordered divisions whose members share similar values, interests, and behaviors.

• Measured by: Occupation, Income, Education, Wealth and Other Variables.(Maruti,Surf /Rin,Excel)

Social Factors

Referencegroups

Family

Rolesand

status

• Reference group– An actual or imaginary individual or group that has a

significant effect upon an individual’s evaluations, aspirations or behaviour

Types of Reference GroupMember Reference

GroupAspiration

Reference GroupDisclaimant

Reference GroupAvoidance

ReferenceGroup

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Factors Affecting Consumer Behavior: Social

Groups• Membership• Reference

Groups• Membership• Reference

Family (most important) Family (most important)

Roles and StatusRoles and Status

Social FactorsSocial Factors

Opinion leaders are individuals who exert direct or indirect social influence over others.

Opinion leaders are individuals who exert direct or indirect social influence over others.

Opinion Leaders

Word of mouth is the influencing of people during conversations.Word of mouth is the influencing of people during conversations.

Word of Mouth

AgeLife-Cycle Stage

Personal Factors

1. Single2. Newly Married Couples3. Full Nest I4. Full Nest II5. Full Nest III6. Empty Nest I7. Loner8. Solitary Survivor, Retired

Stages in Family Life-Cycle

LIFESTYLE

Lifestyle refers to the way people live, how they spend their time and money, what activities they pursue, and what their attitudes and opinions are about the world they live in

Personality

Personality refers to a person’s consistent behaviors or responses to recurring situations.

Personality refers to a person’s consistent behaviors or responses to recurring situations.

Psycho-Logical

MotivationPerceptionLearning

Beliefs andattitudes

Psycho-Logical

MotivationPerceptionLearning

Beliefs andattitudes

Motivation

Motivation is the energizing force that stimulates behavior to satisfy a need.or achievement of goals

Motivation is the energizing force that stimulates behavior to satisfy a need.or achievement of goals

Laddering

Why Saffola• Good For Health• To Keep Family fit• To enjoy food without any fear of inc.in Cholesterol• To avoid putting on weight• To boost confidence

Why Saffola• Good For Health• To Keep Family fit• To enjoy food without any fear of inc.in Cholesterol• To avoid putting on weight• To boost confidence

Perception

Perception is the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world.

Perception is the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world.

MotivationPerception

The process by which an individual selects, organizes, and interprets inputs to create a meaningful picture of the world.Selective ExposureSelective DistortionSelective Retention

Psychological Factors

Selective Exposure-selects inputs to be exposed to our awareness. More likely if it is linked to an event, satisfies a current need, intensity of input changes (sharp price drop).

Selective Distortion – Changing/twisting current received information inconsistent with beliefs.

Selective Retention—remember inputs that support beliefs, forgets those that don’t. Exposed to 1500 advertisements per day. Can’t be expected to be aware of all these inputs, and certainly will not retain many.

Learning

Learning refers to those behaviors that result from (1) repeated experience and (2) reasoning.

Learning refers to those behaviors that result from (1) repeated experience and (2) reasoning.

Attitude

An attitude is a “learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way.”

An attitude is a “learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way.”

Beliefs

Beliefs are a consumer’s subjective perception of how a product or brand performs on different attributes based on personal experience, advertising, and discussions with other people.

Beliefs are a consumer’s subjective perception of how a product or brand performs on different attributes based on personal experience, advertising, and discussions with other people.