Sociocultural factors of consumer behavior Lecture 3
Structure • Consumer behavior: definitions. • Approaches to classify factors influencing the consumer behavior • Cultural factors of consumer behavior. • Social factors of consumer behavior.
What is customer behavior? • Consumer buying behavior can be defined as the process by which individuals search for, select, purchase, use, and dispose of goods and services, in satisfaction of their needs and wants.
Basic beliefs about customer behavior (by Chambers, Chacko, and Lewis) • Consumer behavior is purposeful and goal oriented. • The consumer has free choice. Consumers do not have to pay attention to your marketing communications. In most cases the consumer has several products from which to choose. • Consumer behavior is a process. marketers need to understand the process. • Consumer behavior can be influenced. • There is a need for consumer education. Consumers may act against their own interests because of a lack of knowledge.
Stages of Consumer Buying Decision Process • • • Problem Recognition Information search Evaluation of Alternatives Purchase decision Purchase Post-Purchase Evaluation
Factors influencing customer behavior
Culture is a collection of learned behavior • • Culture is the traditional Culture is created Culture can be changed Culture includes differences as similarities Culture is organization and convergence Culture is shared by the members of the community Culture determines needs
Mc Donald’s worldwide
Reference group: comprise of people that individuals compare themselves with. • Primary Group - consists of individuals one interacts with on a regular basis: friends, family members, relatives, co-workers • Secondary Groups - Secondary groups share indirect relationship with the consumer. These groups are more formal and individuals do not interact with them on a regular basis, Example - Religious Associations, Political Parties, Clubs etc.
Families influence consumer decision: • Many family decisions are made by the • • family unit Consumer behavior starts in the family unit Family roles and preferences are the model for children's future family (can reject/alter/etc) Family buying decisions are a mixture of family interactions and individual decision making Family acts an interpreter of social and cultural values for the individual.
Family life-cycle and consumer decision • In the Stage of Young and Single people have relatively low income. At this stage, people don’t have many financial obligations, therefore, many of them spend most of their income on cars, furnishings, fashions, recreation, alcoholic beverages, and vacations. • In a Newly Married Stage, because they have two incomes source, therefore these families have the highest purchase rate on durable goods, such as furniture and appliances, and appear to be more susceptible to advertising. • A Full Nest is the stage which the families have their first child. At this stage, most families decide that one parent stay home to care for the child. This usually leads to a decline in income, therefore, effect the consumption pattern. Families start to spend on children product, such as furnishings for the child, baby food, toys and skates. • A Full Nest when the youngest child has reached school age, the family’s financial position has improved since both parents usually working at this stage of FLC. The consumption patterns continue to be influenced by the children. • When the parents enter their 40 s, the financial position continues to improve because the children earn their money from part-time employment. The family starts to purchase another car, computer, and some luxury appliances. • In the Empty Nest stage, family is most satisfied with its financial position. The couple can spent on what they want rather than what the children need. They usually spend on home improvements, luxury items, vacations, and second homes. Some of them are looking for fun educational opportunities.
The influence of social class • Social class is an open group of individuals who have similar social rank. Criteria of dividing the society into classes can be: occupation, education, income, wealth, race, ethnic groups and possessions. • To some degree, consumers in the same social class exhibit similar purchasing behavior.
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