Culture can be further divided into subcultures. When a consumer is offered easy credit to purchase goods, it promotes higher spending. While a skill can be gained through practice, knowledge can be acquired only through experience. relating to a product, they develop an impression about the product. Discuss the three components of a culture and how they impact consumer behavior. Perhaps the most obvious effect is the level of disposable income of each social class. Influence of Consumer Behaviour on Decision Making Process. Researchers generally agree that shoplifters are driven by either economic or psychosocial motives. Values are general statements that guide behavior and influence beliefs. Economic factors bear a significant influence on the buying decision of a consumer. Culture can be different by region, different groups and even countries. Social factors 3. Estimates put the cost of credit card fraud to billions of dollars. A marketer may decide his product is best suited for a specific demographic and will define that demographic as clearly as possible. The importance of understanding the role of social influence, how others affect our emotions, opinions, or behaviors, in consumption has a long and varied history in the fields of sociology, psychology, and marketing. One source of help is an opinion leader. Sellers are making it easy for the consumers to avail credit in the form of credit cards, easy installments, bank loans, hire purchase, and many such other credit options. The latest trend in marketing is the introduction of the social media. Consumers seek out help in making consumer purchases. Subcultures can consist of people from different religion, caste, geographies and nationalities. When consumers experience a positive economic environment, they are more confident to spend on buying products. Within a cultural group, there exists many subcultures. A consumer’s family is one of the most significant factors because a family helps shape an individual’s attitudes and behaviors. Some economists estimate the total monetary value of consumer misbehavior to be in the hundreds of billions of dollars. Although a very common crime, it is still considered consumer misbehavior. For example, the role of father can be different than the role of mother in purchasing consumer goods. Marketing strategies should reflect the culture that is being targeted. Other models have as many as a dozen levels. Friends: Friends are one of the most powerful reference groups because they influencing our consumer behavior. – Reference groups are either Membership Group. A persona simply helps a marketer get a clearer picture of who will be buying his product. Social media is no longer just about conversations; it’s about commerce. SOCIAL FACTORS AFFECTING CONSUMER’S PURCHASE IN FURNITURE Reference group Reference group can be defined as any person or group of people who significantly influences an individual’s behavior ( Sakpichaisa, 2012). They can heavily influence purchasing patterns. But when the disposable income reduces, parallelly the spending on multiple items also reduced. Motivation: The level of motivation influences the buying behavior of the consumers.It is very well explained by Maslow through his need hierarchy theory comprising of basic needs, security needs, social needs, esteem needs and self-actualization needs. Reference groups are groups that consumers will look to for help in making purchasing decisions. This is evident in a number of ways, such as through roles. The study focused on how social media affects consumers from different age ranges and races. They usually have deeper expertise in a certain area, and are often looked to for help in making consumer decisions. Each plays a role in influencing consumer purchasing. Another aspect of understanding the impact of families on buying behavior is the family life cycle. With access to an almost-infinite ocean of information at any given time, businesses have to seize every opportunity to be in front of their target audiences. Of course its impact varies across products and brands. A consumer’s behaviour is influenced by the following social factors: 1. A person develops preferences from his childhood by watching family buy products and continues to buy the same products even when they grow up. Schools, friends, and peers are examples of informal reference groups. The lower class, in contrast, are much more concerned with simply getting by; they focus more on necessities. Social Factors are made up of : Reference groups Family Roles/ Status Reference Groups: – A person’s reference group consist of all the groups that have a direct/ indirect influence on the person’s attitude/ behaviour. Influencers are people who have a relatively large audience in which to tout their beliefs. 3. Since the cost of consumer misbehavior can be so high, many retailers feel it is worth fighting. For example, a few years ago Shaquille O’Neal was used to endorse Pepsi because Pepsi felt he represented the spirit of teenagers of the time. For example, a person can be a part of the larger “American” culture and still be a member of other subcultures based on his or her socio-economic background. Consumers are looking for reviews and recommendations. Consumers are constantly seeking out the advice of knowledgeable friends or acquaintances who can provide information, give advice, or actually make the decision. 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. By Dr. Kevin Lance Jones Social Influences Information and Pressures from Individuals, groups, and the mass media that affect how a person behaves. Dissociate Group. Some of the important economic factors are: When a person has a higher disposable income, the purchasing power increases simultaneously. Factors Influencing Consumer Behaviour 3. It is generally recognized that there are social behaviors that are acceptable in a given situation. Hence, understanding consumer behavior in the context of social commerce has become critical for companies that aim to better influence consumers and harness the power of their social ties. Retailers often employ more security and staff during times where the propensity for consumer misbehavior increases, such as during “Black Friday” sales. Forget going into stores to discover … Grocery Shopping: Families are a major influence on shopping patterns and consumer habits. Definition of Consumer Behaviour 2. For example, taking one’s mother out for dinner and buying her presents for Mother’s Day is an American custom. Material goods often take on major symbolic meaning for this group. also deliver information personally. Cultural Practices: Cultural practices can have a huge impact on consumer behavior. For some product categories, there are professional opinion leaders who are quite easy to identify–for instance, auto mechanics, beauticians, stock brokers, and physicians. A marketer should understand the dynamic of the social class he or she is targeting. ADVERTISEMENTS: Read this article to learn about the influence of social and economic classes on consumer behaviour. For example, a doctor would buy clothes according to this profession while a professor will have different buying pattern. In many parts of the world, black markets operate side by side with legal markets, sometimes openly. Consumer Behavior. If a consumer decided to save more, then his expenditure on buying reduces. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Opinion leaders can have a profound influence on the success of a product, and on one’s own consumer purchases. There are four main types of consumer behavior: 1. Most consumers around the world now carry posting and purchasing power around in their pockets with them every day. Whereas low-income or middle-income group consumers spend most of their income on basic needs such as groceries and clothes. Based on this attitude, the consumer behaves in a particular way towards a product. Consumers who have liquid assets tend to spend more on comfort and luxuries. Social Influence and Consumer Behavior (Spring 2013) Curator: Darren Dahl. Income has the ability to influence the buying behavior of a person. The pervasive influence of social context on consumer behavior is anecdotally and empirically well documented (Argo et al. 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