Consumer Behavior Environmental influences Environmental influences on consumer behavior.
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Transcript of Consumer Behavior Environmental influences Environmental influences on consumer behavior.
Consumer BehaviorConsumer BehaviorEnvironmental influences
Environmental Environmental
influences on influences on
consumer behaviorconsumer behavior
Consumer BehaviorConsumer BehaviorEnvironmental 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 BehaviorConsumer BehaviorEnvironmental influences
In-class exercise: Hofstede’s cultural dimensions
Go to http://www.geert-hofstede.com/index.shtml and read the descriptions of the four primary dimensions of cultural variation (power distance, individualism, masculinity, and uncertainty avoidance). How does the U.S. rate on the four dimensions? Which countries are highest and lowest on each dimension? What are the marketing implications of a country’s standing on each dimension?
Consumer BehaviorConsumer BehaviorEnvironmental influences
Dimensions of cultural variation (Hofstede 1980)
• power distance:
• uncertainty avoidance:
• individualism/collectivism:
• masculinity/femininity:
Consumer BehaviorConsumer BehaviorEnvironmental 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 BehaviorConsumer BehaviorEnvironmental 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);
• 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 BehaviorConsumer BehaviorEnvironmental influences
Subcultureculture 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 BehaviorConsumer BehaviorEnvironmental 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 BehaviorConsumer BehaviorEnvironmental influences
Reference groupsA 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:
– normative (utilitarian):
– comparative (value-expressive):
Consumer BehaviorConsumer BehaviorEnvironmental 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 advertisements 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 BehaviorConsumer BehaviorEnvironmental influences
Reference group influence on product and brand choice (Bearden and Etzel 1982)
necessity luxury
private
public
brandchoice
product choice weak reference
group influencestrong referencegroup influence
strongreference
groupinfluence
weakreference
groupinfluence
PuNe(e.g., wristwatch,
automobile,man’s suit)
PrNe(e.g., mattress,
floor lamp,refrigerator)
PuLu(e.g., golf club,
snow skis, sailboat)
PrLu(e.g., TV game,
trash compactor, icemaker)
Consumer BehaviorConsumer BehaviorEnvironmental 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 BehaviorConsumer BehaviorEnvironmental influences
Parental Roles in Family Decision Making
0% 50% 100%
3
2.5
2
1.5
1
wife dominant
husband dominant
autonomic syncratic
Percentage of families engaging in joint decision making
Consumer BehaviorConsumer BehaviorEnvironmental influences
Parental Influence by Product Category
0% 50% 100%
Percentage of families engaging in joint decision making
3
2.5
2
1.5
1
wife's clothing
husband's clothing
life insuranceother insurance
vacation
television
car
food
cleaningproducts
cosmetics
children's toys
housing
appliances
wifedominant
husbanddominant
alcoholic beverages
Consumer BehaviorConsumer BehaviorEnvironmental influences
Parental Influence by Stage of Decision
0% 50% 100%
3
2.5
2
1.5
1
life insurance
car
appliances
wifedominant
husbanddominant
husband'sclothing
1
2
3
1 problem recognition2 search for information3 final decision
Percentage of families engaging in joint decision making
Consumer BehaviorConsumer BehaviorEnvironmental influences
The family life cycle• young single 8.2 %• young married without children 2.9 %• other young
– married with children 17.1 %– divorced with kids 1.9 %– divorced with no kids 0.1 %
• middle-aged (35-65)– married with children 33.0 %– married with no dependent children 5.5 %– married with no children 4.7 %– divorced with no kids 0.3 %– divorced with kids 1.9 %
• older (65+)– married, spouse present 5.2 %– unmarried, no spouse present 2.0 %
• all others 17.2 %