Environment Influence On Consumer Behaviour d6b30

Consumer Behavior Environmental influences

Environmental influences on consumer behavior

Consumer Behavior Environmental influences

Environmental influences • physical environment: collection of nonhuman elements that comprise the field in which consumer behavior occurs (spatial and nonspatial elements); • social environment: all human activities and interactions; – culture – subculture – social class – reference groups – family

Consumer Behavior Environmental influences

Dimensions of cultural variation (Hofstede 1980) • power distance: degree to which human inequality (in of prestige, wealth, power, etc.) is considered normal by the population of a country; • uncertainty avoidance: degree to which people in a country prefer structured over unstructured situations (rigidity vs. flexibility); • individualism/collectivism: degree to which people in a country prefer to act as individuals rather than as of a group; • masculinity/femininity: degree to which values such as assertiveness, performance, success and competition prevail over values such as quality of life, warm interpersonal relationships, service, care for the weak, and solidarity;

Consumer Behavior Environmental influences

• • • • • • • • •

use of status symbols showing people alone or as part of a group long copy and testimonials by experts respect for old age nonconforming lifestyles men or women in nontraditional roles importance of being well-groomed nuclear vs. extended family “It’s so good, you want to keep it for yourself” vs. “It’s so good, you want to share it with others” • “Be the best” or “Big is beautiful” vs. “Brilliant in its simpleness”

Consumer Behavior Environmental influences

Globalization vs. adaptation • globalization: argument that companies should ignore superficial cultural differences, learn to operate as if the world were one large market, and pursue this market with standardized marketing mixes (Levitt 1983); • adaptation: argument that companies should emphasize local cultural differences, segment markets on the basis of these differences, and adapt their marketing mixes to the local culture;

Consumer Behavior Environmental influences

In-class exercise: Cross-cultural marketing blunders Describe an incident in which a marketing strategy failed because of the marketer’s ignorance of cross-cultural differences in consumer behavior. If possible, relate an example that you’re personally familiar with.

Consumer Behavior Environmental influences

Subculture culture of a segment of society that differs in significant ways from the culture as a whole; • ethnic groups • geographic areas • age groups • religious affiliations • socio-economic groups

Consumer Behavior Environmental influences

Social class • a hierarchy of social status in a society leading to interactions of people as equals, superiors, or inferiors; • influenced most heavily by educational credentials, occupation prestige level, income, and area of residence;

Consumer Behavior Environmental influences

Reference groups A group of people that serves as a standard of reference in guiding an individual’s thoughts, feelings, and actions. Types of reference group influence: – informational: (acceptance of information from others);

– normative (utilitarian): (conformity with expectations of others);

– comparative (value-expressive): (identification with values of others);

Consumer Behavior Environmental influences

• To satisfy the expectations of fellow work associates, the individual’s decision to purchase a particular brand is influenced by their preferences. • The individual seeks information from those who work with the product as a profession. • The individual sometimes feels that it would be nice to be like the type of person which ments show using a particular brand. • The brand which the individual selects is influenced by observing a seal of approval of an independent testing agency (such as Good Housekeeping). • The individual feels that the purchase of a particular brand helps him show others what he is, or would like to be (such as an athlete, successful businessman, good mother, etc.).

Consumer Behavior Environmental influences

Reference group influence on product and brand choice (Bearden and Etzel 1982) public

necessity

product choice brand choice

weak reference group influence

strong reference group influence

strong reference group influence

PuNe (e.g., wristwatch, automobile, man’s suit)

PuLu (e.g., golf club, snow skis, sailboat)

PrNe (e.g., mattress, floor lamp, refrigerator)

PrLu (e.g., TV game, trash compactor, icemaker)

weak reference group influence

private

luxury

Consumer Behavior Environmental influences

Families • families vs. households: – a family is two or more persons residing together who are related by blood, adoption, or marriage; – a household is one or more persons sharing the same housing unit;

• many decision are made by families or households, not individuals; • consumer behavior varies over the family life cycle (based on age, marital status, and number and ages of children);

Consumer Behavior Environmental influences

Parental Roles in Family Decision Making 3

wife dominant 2.5

syncratic

autonomic

2

1.5

husband dominant

Percentage of families engaging in t decision making

1 0%

50%

100%

Consumer Behavior Environmental influences

Parental Influence by Product Category 3 cleaning products

wife dominant

wife's clothing

2.5

food

cosmetics

children's toys appliances

husband's clothing

2

housing

vacation

alcoholic beverages television car

1.5 other insurance life insurance

husband dominant Percentage of families engaging in t decision making

1 0%

50%

100%

Consumer Behavior Environmental influences

Parental Influence by Stage of Decision 3 wife dominant

1 problem recognition 2 search for information 3 final decision 2.5 1 2

appliances

3

husband's clothing

2

car

1.5 husband dominant

life insurance

Percentage of families engaging in t decision making

1 0%

50%

100%

Consumer Behavior Environmental influences

The family life cycle • young single • young married without children • other young

– married with children – divorced with kids – divorced with no kids • middle-aged (35-65) – married with children – married with no dependent children – married with no children – divorced with no kids – divorced with kids • older (65+) – married, spouse present – unmarried, no spouse present

• all others

8.2 % 2.9 % 17.1 % 1.9 % 0.1 % 33.0 % 5.5 % 4.7 % 0.3 % 1.9 % 5.2 % 2.0 % 17.2 %