Module 4

Amity Business School

MBA Class of 2011, Semester III
Consumer Behaviour
Module-IV
Vivek Singh Tomar

vstomar@amity.edu
1
Module IV (Content)
• Group Dynamics and Reference Groups,
• Family Decision Making
• Social Class
• Culture
• Subculture
What is a Group?
• Two or more people who interact to accomplish
either individual or mutual goals
• A membership group is one to which a person
either belongs or would qualify for membership
• A symbolic group is one in which an individual is
not likely to receive membership despite acting
like a member
Reference Group
A person or group that serves as a point of

comparison (or reference) for an individual in
the formation of either general or specific
values, attitudes, or behavior.
Broad Categories of Reference Groups

• Normative Reference Groups
• Comparative Reference Groups
Indirect Reference Groups
Individuals or groups with whom a person

identifies but does not have direct face-to-
face contact, such as movie stars, sports
heroes, political leaders, or TV personalities.
Major
Consumer
Reference
Groups
Reference Groups
Positive Influences on Conformity
Group Characteristics Personal Characteristics

• Attractiveness • Tendency to Conform
• Expertise • Need for Affiliation
• Credibility • Need to be Liked
• Past Success • Desire for Control
• Clarity of Group Goals • Fear of Negative Evaluation
Factors Encouraging Conformity:

A Reference Group Must ...
• Inform or make the individual aware of a specific

product or brand
• Provide the individual with the opportunity to compare
his or her own thinking with the attitudes and behavior
of the group
• Influence the individual to adopt attitudes and
behavior that are consistent with the norms of the
group
• Legitimize the decision to use the same products as
the group
Selected Consumer-Related
Reference Groups
• Friendship groups
• Shopping groups
• Work groups
• Virtual groups or communities
• Consumer-action groups
Brand Communities
• Suzuki Swift owners club
www.swiftowners.co.uk
• Sunsilk Gang of Girls
• Harley Davidson Owner Groups
• Kwality walls Cornetto hojaanede.com
Reference Group Appeals

Reebok uses
Celebrity Appeal: • Celebrities
Dhoni and Bipasha • The expert
• The “common man”
• The executive and
employee spokesperson
• Trade or spokes-
characters
• Other reference group
appeals
Types of Celebrity Appeals

TYPE DEFINITION EXAMPLE
Testimonial Based on personal usage, a celebrity Saif Ali Khan Ford Fiesta
attests to the quality of the product or
service
Endorsement Celebrity lends his name and appears Amitabh Bacchan Perfume
on behalf of a product or service with
which he/she may not be an expert
Actor Celebrity presents a product or David Beckham Gillete Mach

service as part of a character III
endorsement
Spokesperson Celebrity represents the brand or Bipasha Basu Gili
company over an extended period of
time
Customers
Providing
Testimonials
Spokes Character
Households
Family Households:
Married couple,
Nuclear family,
Extended family
Households
Non-Family Households:
Unmarried couples,
Friends/ Roommates,
Boarders
The Typical Household?
• Canada: Nuclear family

• Thailand: Extended family
• USA: Not married, no children
• India: Joint Family
Consumer Socialization
The process by which children acquire the

skills, knowledge, and attitudes necessary to
function as consumers.
Consumption Related
Socialization
A Simple Model of the Amity Business School
Socialization Process
Young
Young Person
Person
Other
Other Family
Family Friends
Friends
Members
Members
Influence
InfluenceMore
MoreBasic
Basic Influence
InfluenceMore
MoreExpressive
Expressive
Values/Behavior
Values/Behavior Attitudes/Behavior
Attitudes/Behavior
••Moral/religious
Moral/religiousprinciples
principles ••Style
Style
••Interpersonal
Interpersonalskills
skills ••Fashion
Fashion
••Dress/grooming
Dress/grooming standards
standards ••Fads
Fads
••Manners
Manners and
and speech
speech ••“In/Out”
“In/Out”
••Educational
Educationalmotivation
motivation ••Acceptable
Acceptableconsumer
consumer behavior
behavior
••Occupational
Occupationalcareer
career goals
goals
••Consumer
Consumer behavior
behavior norms
norms
Preadolescent Adolescent Teens Older

Other Functions of the Family

• Economic well-being
• Emotional support
• Suitable family lifestyles
Appealing to the
Responsibility of
Providing for Future
Family Financial
Need
Kurkure family
oriented theme
advertising
Eight Roles in the Family Decision-Making Process
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
– Syncratic
• Autonomic
– Solitary
– Unilateral
The Family Life Cycle
• Traditional Family Life Cycle

– Stage I: Bachelorhood
– Stage II: Honeymooners
– Stage III: Parenthood
– Stage IV: Postparenthood
– Stage V: Dissolution
• Modifications - the Nontraditional FLC
Targeting the To-Be- Married Segment

Targeting the
PostParenthood
Stage
An Extended Family life Cycle
Middle-Aged
Divorced without
Children
Young
Divorced without Middle-Aged
Children Married without
Children
Middle-
Middle-
Young Young Aged
Aged
Young Married Married Married Older Older
Married
Single* without with without Married* Unmarried*
with
Children* Children* Dependent
Children*
Children*
Young Middle- Middle- Usual Flow

Divorced Aged Aged Recycled Flow
with Divorced Divorced
* Traditional Family Flow
Children* with without
Children Children
Noteworthy Nontraditional FLC Stages

Alternative FLC Stages Definition/Commentary
Family Households
Childless couples It is increasingly acceptable for married couples to elect
not to have children. Contributing forces are more career-
oriented married women and delayed marriages.
Couples who marry later in More career-oriented men and women and greater
life (in their late 30s or later) occurrence of couples living together. Likely to have
fewer or even no children.
Couples who have first child Likely to have fewer children. Stress quality lifestyle:
later in life (in their late 30s or “Only the best is good enough”
later)

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 children.
Extended family 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.

Nonfamily Households
Unmarried couples Increased acceptance of heterosexual and homosexual
couples.
Divorced persons (no children) High divorce rate contributes to dissolution of households
before children are born.
Single persons (most are Primarily a result of delaying first marriage; also, men
young) and women who never marry.
Widowed persons (most are Longer life expectancy, especially for women; means
elderly) more over-75 single-person households.
Social Class
The division of members of a society into

a hierarchy of distinct status classes, so
that members of each class have either
higher or lower status than members of
other classes.
Social Class and Social Status
• Status is frequently thought of as the

relative rankings of members of each social
class
– wealth Social Comparison Theory
states that individuals
– power compare their
– prestige own possessions against those
of others to determine their
relative social standing.
Status Consumption
The process by which consumers actively

increase their social standing through
conspicuous consumption or possessions
Convenient Approaches to
Social Class
• Social status is usually defined in terms of one
or more of the following socioeconomic
variables:
– Family Income
– Occupational Status
– Educational Attainment
Targeting Upscale Customers

Percent Distribution of Five-Category

Social-Class Measure
SOCIAL CLASSES USA (%) India (%)
Upper 4.3 6.89
Upper-middle 13.8 7.10
Middle 32.8 15.44
Working 32.3 34.20
Lower 16.8 36.37
Total percentage 100.0 100.0
Social Class Measurement

• Subjective Measures: individuals are asked to
estimate their own social-class positions
• Reputational Measures: informants make
judgments concerning the social-class
membership of others within the community
• Objective Measures: individuals answer specific
socioeconomic questions and then are
categorized according to answers
Objective Measures
• Single-variable • Composite-variable
indexes indexes
– Occupation – Index of Status
Characteristics
– Education
– Socioeconomic Status
– Income Score
– Other Variables
Index of Status
Characteristics
(ISC)
A composite measure of social class that
combines occupation, source of income (not
amount), house type / dwelling area into a
single weighted index of social class
standing.
Socioeconomic
Status Score
(SES)
A multivariable social class measure used by the
United States Bureau of the Census that combines
occupational status, family income, and educational
attainment into a single measure of social class
standing.
Social-Class Profiles
THE UPPER-UPPER CLASS--COUNTRY CLUB
•Small number of well-established families
•Belong to best country clubs and sponsor major charity events
•Serve as trustees for local colleges and hospitals
•Prominent physicians and lawyers
•May be heads of major financial institutions, owners of major long-
established firms
•Accustomed to wealth, so do not spend money conspicuously
THE LOWER-UPPER CLASS--NEW WEALTH
•Not quite accepted by the upper crust of society
•Represent “new money”
•Successful business executive
•Conspicuous users of their new wealth
THE UPPER-MIDDLE CLASS--ACHIEVING

PROFESSIONALS
•Have neither family status nor unusual wealth
•Career oriented
•Young, successful professionals, corporate managers, and business
owners
•Most are college graduates, many with advanced degrees
•Active in professional, community, and social activities
•Have a keen interest in obtaining the “better things in life”
•Their homes serve as symbols of their achievements
•Consumption is often conspicuous
•Very child oriented
THE LOWER-MIDDLE CLASS--FAITHFUL FOLLOWERS

•Primary non-managerial white-collar workers and highly paid blue-
collar workers
•Want to achieve “respectability” and be accepted as good citizens
•Want their children to be well behaved
•Tend to be churchgoers and are often involved in church-sponsored
activities
•Prefer a neat and clean appearance and tend to avoid faddish or
highly-styled clothing
•Constitute a major market for do-it-yourself products
THE UPPER-LOWER CLASS--SECURITY-MINDED

MAJORITY
•The largest social-class segment
•Solidly blue-collar
•Strive for security
•View work as a means to “buy” enjoyment
•Want children to behave properly
•High wage earners in this group may spend impulsively
•Interested in items that enhance leisure time (e.g., TV sets)
•Husbands typically have a strong “macho” self-image
•Males are sports fans, heavy smokers, beer drinkers
THE LOWER-LOWER CLASS--ROCK BOTTOM

•Poorly educated, unskilled laborers
•Often out of work
•Children are often poorly treated
•Tend to live a day-to-day existence
Appealing to Upward
Mobility
Geodemographic Clusters
A composite segmentation strategy that uses

both geographic variables (zip codes,
neighborhoods) and demographic variables
(e.g., income, occupation) to identify target
markets.
PRIZM (Potential Rating Index by Zip

Market)
A composite index of geographic and

socioeconomic factors expressed in residential
zip code neighborhoods from which
geodemographic consumer segments are formed.
A Profile of PRIZM Cluster: “Urban Gold

Coast” (Cluster 06)
SOCIOECONOMIC FACTORS:
Percent of U.S. households 0.60%

Predominant age range Mixed
Socioeconomic group Affluent
Demographic caption Professional urban singles and couples
Education College graduates
Occupation White collar
Race/Ethnicity White, Asian
LIFESTYLE:
Use WebTV online

Listen to Oldie Goldies
Read New York Magazine
Watch Politically Incorrect
What is Middle Class?

• India’s middle class numbers around 300 million
representing 30% of the population spread across 5,000
towns and cities.
• More than 70% of nuclear family units have moved out of
the traditional joint family households into their own
homes.
• Children continue to be the main focus of families.
• The size of the average middle-class family is 4.3 people
• An estimated 100% of households have televisions, 91%
have mobile phones and 19% own four-wheel vehicles.
Half the households experienced growing incomes in the
past 12 months, of which one-third enjoyed a rise in
excess of 20%.
What is Working Class?

• Of the 222 million households in India, the
absolutely poor households (annual incomes
below 45,000) accounted for only 15.6 % of
them or about 35 million (about 200 million
Indians). Another 80 million households are in
income levels of 45,000-90,000 per year
• These consumers tend to be more brand loyal
than wealthier consumers
Consumer Behavior and

Social Class
• Clothing, Fashion, and Shopping
• The Pursuit of Leisure
• Saving, Spending, and Credit
• Social Class and Communication
Culture
The sum total of learned beliefs, values, and

customs that serve to regulate the consumer
behavior of members of a particular society.
Culture
Culture offers order, direction, and guidance

in all phases of human problem solving:
When to eat, Where to eat,
What to eat for each meal,
What to serve guests at a dinner party,
picnic, or wedding.
Forms of Cultural Learning
Formal Learning
Informal Learning
Technical Learning
The Movement of Cultural Meaning

Culturally
Culturally Constituted
Constituted World
World
Advertising/Fashion Fashion
System System
Consumer
Consumer Goods
Goods
Possession Exchange Grooming Divestment
Ritual Ritual Ritual Ritual
Individual
Individual Consumer
Consumer
Location of Meaning
Instrument of Meaning Transfer

Issues in Culture
• Enculturation and acculturation
• Language and symbols
• Ritual
• Sharing of Culture
Selected Rituals and Associated Artifacts

(Americans)
SELECTED RITUALS TYPICAL ARTIFACTS
Wedding White gown (something old, something new, something
borrowed, something blue)
Birth of child U.S. Savings Bond, silver baby spoon
Birthday Card, present, cake with candles
50th Wedding anniversary Catered party, card and gift, display of photos of the
couple’s life together
Graduation Pen, U.S. Savings Bond, card, wristwatch
Valentine’s Day Candy, card, flowers
New Year’s Eve Champagne, party, fancy dress
Thanksgiving Prepare a turkey meal for family and friends
Indian rituals (16 Sanskars)

The 16 Samskaras
Most of the Brahmins used to follow complex rituals in connection with major
events in their lives, such as pregnancy, childbirth, education, marriage, and death.
Although, the number of major samskaras fluctuates between 12 and 18 in the
Grhya Sutras, later, it became 16 in number,generally known as "Shodasha
Samskaras" (Ṣoḍaśa Saṃskāra).
Garbhadhana Karnavedha
Pumsavana Vidyarambha
Simanatonayana Upanayana
Jatakarman Praishartha
Namakarana Keshanta and Ritusuddhi
Nishkramana Samavartana
Annaprashana Vivaha
Chudakarana Antyeshti
Nightly Facial Beauty Ritual of a Young Internet

Sales Representative
1. I pull my hair back with a headband.
2. I wash my face with tepid water using Dove facial cleanser to remove all
makeup.
3. Next, I use a Q-tip with some moisturizer around my eyes to make sure all eye
makeup is removed.
4. I apply Dermacil facial cream to my face to heavily moisturize and Clinique
Dramatically Different Lotion on my neck and throat.
5. If I have a blemish, I apply Clearasil Treatment to the area to dry it out.
6. Twice weekly (or as necessary) I use Aapri Facial Scrub to remove dry and
dead skin.
7. Once a week I apply Clinique Clarifying Lotion 2 with a cotton ball to my face
and throat to remove deep down dirt and oils.
8. Once a month I get a professional salon facial to deep clean my pores.
Culture and Advertising

• Is it the role of advertising to socialize readers
on how to dress, decorate their homes,
choose wines and food for parties, etc?
– Grihashobha
– Cosmopolitan
– Femina
The Measurement of Culture
• Content Analysis
• Consumer Fieldwork
• Value Measurement Instruments
Content
Analysis
A method for systematically analyzing the

content of verbal and/or pictorial
communication. The method is frequently used
to determine prevailing social values of a
society.
Field
Observation
A cultural measurement technique that takes

place within a natural environment that focuses
on observing behavior (sometimes without the
subjects’ awareness).
Characteristics of Field Observation
• Takes place within a natural environment

• Performed sometimes without the subject’s
awareness
• Focuses on observation of behavior
Participant-
Observers
Researchers who participate in the

environment that they are studying without
notifying those who are being observed.
Value Measurement Survey Instruments
• Rokeach Value Survey (RVS): A self-administered

inventory consisting of eighteen “terminal” values (i.e., personal
goals) and eighteen “instrumental” values (i.e., ways of reaching
personal goals).
• List of Values (LOV): A value measurement instrument that
asks consumers to identify their two most important values from a
nine-value list that is based on the terminal values of the Rokeach
Value Survey
• Values and Lifestyles (VALS): A value measurement
based on two categories: self-definition and resources
The Rokeach Value Survey

TERMINAL VALUES INSTRMENTAL VALUES
A COMFORTABLE LIFE AMBITIOUS
AN EXCITING LIFE BROAD-MINDED
A WORLD AT PEACE CAPABLE
EQUALITY CHEERFUL
FREEDOM CLEAN
HAPPINESS COURAGEOUS
NATIONAL SECURITY FORGIVING
PLEASURE HELPFUL
SALVATION HONEST
SOCIAL RECOGNITION IMAGINATIVE
TRUE FRIENDSHIP INDEPENDENT
WISDOM INTELLECTUAL
continued
TERMINAL VALUES INSTRMENTAL VALUES
A WORLD OF BEAUTY LOGICAL
FAMILY SECURITY LOVING
MATURE LOVE OBEDIENT
SELF-RESPECT POLITE
A SENSE OF ACCOMPLISHMENT RESPONSIBLE
INNER HARMONY SELF-CONTROLLED
American Core Values
• Achievement and • Individualism

success • Freedom
• Activity • External conformity
• Efficiency and • Humanitarianism
practicality • Youthfulness
• Progress • Fitness and health
• Material comfort
Criteria for Value Selection

• The value must be pervasive.
• The value must be enduring.
• The value must be consumer-related.
Subculture
A distinct cultural group that exists as an

identifiable segment within a larger, more
complex society.
Relationship Between Culture and

Subculture
Subcultural Dominant Subcultural

Traits Cultural Traits
of Traits of of
North Indians Indian Citizens South Indians
Examples of Major Subcultural Categories
CATEGORIES EXAMPLES
Nationality Bangladeshi, Pakistani, Anglo Indian
Religion Hindu, Muslim, Christian, Sikh
Geographic region Northeast, Southwest, Midwestern
Race Caucasian, Mediterranean, Mongolian,

Dravidian
Age Senior citizen, teenager, Xers
Gender Female, Male
Occupation Bus driver, mechanic, engineer
Social class Lower, middle, upper
Major Age Subcultures
Generation X Generation Y
Market Market
Seniors Baby Boomer

Market Market
Generation Y
Born between 1977 and 1994; also called

echo boomers and millennium generation
3 Subsegments of Gen Y
• Gen Y Adults
• Gen Y Teens
• Gen Y Tweens
Generation X
Born between 1965 and 1979; post baby

boomer segment (also referred to as Xers or
busters).
Baby Boomers
Individuals born between 1946 and 1964

(approximately 45% of the adult population).
Baby Boomers
• The largest age category alive today

• Frequently make important consumer
purchase decisions
• Include a small subsegment of trendsetting
consumers (yuppies) who influence consumer
tastes of other age segments
Seniors
Generally older consumers. Consist of

subcultures, including the 50-plus market and
the “elderly consumers” market.
Three Senior Subsegments
• The Young-Old (65-74)

• The Old (75-84)
• The Old-Old (85 and older)
Issues in Understanding Sex as a

Subculture
• Sex Roles and Consumer Behavior
– Masculine vs. Feminine Traits
• The Working Woman
– Segmentation Issues
– Shopping Patterns
Segmenting the Female Market
• Four Segments:
– Stay-at-Home Housewives
– Plan-to-Work Housewives
– Just-a-Job Working Women
– Career-Oriented Working Women

Module 4

Caricato da

Informazioni sul documento

Descrizione originale:

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

Module 4

Caricato da

Copyright:

Formati disponibili

Amity Business School

Amity Business School

Vivek Singh Tomar

A person or group that serves as a point of

Broad Categories of Reference Groups

Indirect Reference Groups

Individuals or groups with whom a person

Positive Influences on Conformity

Group Characteristics Personal Characteristics

Factors Encouraging Conformity:

• Inform or make the individual aware of a specific

Reference Group Appeals

Types of Celebrity Appeals

Actor Celebrity presents a product or David Beckham Gillete Mach

The Typical Household?

• Canada: Nuclear family

The process by which children acquire the

Preadolescent Adolescent Teens Older

Other Functions of the Family

The Family Life Cycle

• Traditional Family Life Cycle

Targeting the To-Be- Married Segment

Young Middle- Middle- Usual Flow

Noteworthy Nontraditional FLC Stages

Alternative FLC Stages Definition/Commentary

Alternative FLC Stages Definition/Commentary

The division of members of a society into

Social Class and Social Status

• Status is frequently thought of as the

The process by which consumers actively

Targeting Upscale Customers

Percent Distribution of Five-Category

Social Class Measurement

THE UPPER-MIDDLE CLASS--ACHIEVING

THE LOWER-MIDDLE CLASS--FAITHFUL FOLLOWERS

THE UPPER-LOWER CLASS--SECURITY-MINDED

THE LOWER-LOWER CLASS--ROCK BOTTOM

A composite segmentation strategy that uses

PRIZM (Potential Rating Index by Zip

A composite index of geographic and

A Profile of PRIZM Cluster: “Urban Gold

Percent of U.S. households 0.60%

Use WebTV online

What is Middle Class?

What is Working Class?

Consumer Behavior and

The sum total of learned beliefs, values, and

Culture offers order, direction, and guidance

Forms of Cultural Learning

The Movement of Cultural Meaning

Instrument of Meaning Transfer

Selected Rituals and Associated Artifacts

Indian rituals (16 Sanskars)

Nightly Facial Beauty Ritual of a Young Internet

Culture and Advertising

The Measurement of Culture

A method for systematically analyzing the

A cultural measurement technique that takes

Characteristics of Field Observation

• Takes place within a natural environment

Researchers who participate in the

Value Measurement Survey Instruments

• Rokeach Value Survey (RVS): A self-administered