Module 6

CONSUMER BEHAVIOUR
12MBAMM313
xternal Influences on Consumer Behaviour
(Part II)
Groups: Meaning and Nature of Groups, Types

Family: The changing structure of family, Family decision making

and consumption related roles, Key family consumption roles,
Dynamics of husband-wife decision making, The expanding role of
children in family decision making, The family life cycle &
marketing strategy, Traditional family life cycle & marketing
implications

Reference Groups: Understanding the power & benefits of

reference groups, A broadened perspective on reference groups,
Factors that affect reference group influence, Types of reference
groups, Friendship groups, Shopping groups, Work groups, Virtual
groups, Consumer-action groups, Reference group appeals,
Celebrities.
THE CHANGING
STRUCTURE OF FAMILY

Increased Life expectancy

Nuclear or extended family

Higher rates of divorce

Employed mothers

One-parent families

Family policies

Popular culture
FAMILY DECISION MAKING AND
CONSUMPTION RELATED ROLES

Key family consumption roles

Dynamics of husband-wife decision making

The expanding role of children in family decision making

 KEY FAMILY CONSUMPTION
ROLES
ROLE DESCRIPTION
Influencers Family member(s) who provide information to other members
about a product or service
Gatekeepers Family member(s) who control the flow of information about a
product or service into the family
Deciders Family member(s) with the power to determine unilaterally or
jointly whether to shop for, purchase, use, consume, or dispose of
a specific product or service
Buyers Family member(s) who make the actual purchase of a particular
product or service
Preparers Family member(s) who transform the product into a form suitable
for consumption by other family members
Users Family member(s) who use or consume a particular product or
service
Maintainers Family member(s) who service or repair the product so that it will
provide continued satisfaction.
Disposers Family member(s) who initiate or carry out the disposal or
discontinuation of a particular product or service
DYNAMICS OF HUSBAND-WIFE
DECISION MAKING
Husband-Dominated
Wife-Dominated
Joint
Equal
Autonomic
Solitary
THE EXPANDING ROLE OF CHILDREN
IN FAMILY DECISION MAKING
Pressure Tactics The child makes demands, uses threats to persuade you to
comply to his/ her request
Upward Appeal The child persuades you saying that the request was supported by
another family member, teacher or a family friend
Exchange The child promises to offer a service in return for a favour
Tactics

Coalition Tactics The child seeks the aid of others to persuade you to comply to his/
her request
Ingratiating The child seeks to get you in a good mood and think favourably of
Tactics him / her before asking you to comply to his/ her request
Rational The child uses logical arguments / factual evidence to persuade
Persuasion you to comply to his/ her request
Inspirational The child makes an emotional appeal that arouses enthusiasm by
Appeals appealing to your values and ideals.
Consultation The child seeks your involvement in making a decision
Tactics
The Family Life Cycle
Traditional Family Life Cycle

Stage I: Bachelorhood
Stage II: Honeymooners
Stage III: Parenthood
Stage IV: Post parenthood
Stage V: Dissolution

Modifications - the Nontraditional FLC

 AN EXTENDED FAMILY LIFE CYCLE
Middle-Aged
Divorced without
Children
Young
Divorced without Middle-Aged
Children Married without
Children
Middle-
Middle-
Young Aged
Young Aged
Married Married Older
Young Married Married Older
without without Unmarried
Single* with with Married*
Children Depende *
Children* Children
* nt
*
Children*
Young Middle-
Middle- Usual Flow
Divorced Aged
Aged Recycled Flow
with Divorce
Divorce
Children d * Traditional Family Flow
d with
* without
Children
Children
NOTEWORTHY NONTRADITIONAL
FLC STAGES
Alternative FLC Stages
Family Households
Childless couples
Couples who marry later
in life (in their late 30s or
later)
Couples who have first
child later in life (in their
late 30s or later)
Definition/Commentary
It is increasingly acceptable for married couples
to elect not to have children. Contributing forces
are more career-oriented married women and
delayed marriages.
More career-oriented men and women and
greater occurrence of couples living together.
Likely to have fewer or even no children.
Likely to have fewer children. Stress quality
lifestyle: Only the best is good enough
CONTINUED
Alternative FLC Stages Definition/Commentary
Family Households
Single parents I High divorce rates (about 50%) contribute to a
portion of single-parent households
Single parents II Young man or woman who has one or more
children out of wedlock.
Single parents III A single person who adopts one or more
Extended family children.
Young single-adult children who return home to
avoid the expenses of living alone while
establishing their careers. Divorced daughter or
son and grandchild(ren) return home to parents.
Frail elderly parents who move in with children.
Newlyweds living with in-laws.
CONTINUED
Alternative FLC Stages Definition/Commentary
Nonfamily Households
Unmarried couples Increased acceptance of heterosexual and
homosexual couples.
Divorced persons (no High divorce rate contributes to dissolution of
children) households before children are born.
Single persons (most are Primarily a result of delaying first marriage; also,
young) men and women who never marry.
Widowed persons (most Longer life expectancy, especially for women;
are elderly) means more over-75 single-person households.
Reference Groups
A GROUP may be defined as two or more people who
interact to accomplish their individual or mutual goals.

Membership Group

Symbolic Group

A REFERENCE GROUP is any person or group that

serves as a point of reference/comparison for an
individual in forming either general or specific values,
attitudes or behaviour.
UNDERSTANDING THE POWER
OF REFERENCE GROUPS
Reference Groups serve as frames of reference for
buying and consuming decisions.
Reference groups that influence broadly defined values
or behaviour are referred to as Normative Reference
Groups.
Reference Groups that serve as benchmarks for specific
attitudes or behaviour are called Comparative
Reference Groups
A BROADENED PERSPECTIVE
ON REFERENCE GROUPS
FACTORS THAT AFFECT
REFERENCE GROUP INFLUENCE

Information and Experience.

Credibility, Attractiveness and Power of the

Reference Group.

Conspicuousness of the product.

Individual Characteristics.
TYPES OF REFERENCE GROUPS
FRIENDSHIP GROUPS

SHOPPING GROUPS

WORK GROUPS

VIRTUAL GROUPS / COMMUNITIES

BRAND COMMUNITIES

CONSUMER-ACTION GROUPS

CELEBRITIES
REFERENCE
GROUP APPEALS
The Expert

The Common Man

The Executive and employee spokesperson

Trade or Spokes Characters

Other Appeals