Consum

er
Behavio
r
Fatima Ferheen
Mahwish Moin
Maria Ahmed
Tazeem Ul Haq
Zaid Khan
June 09, 2010

[EFFECTS OF PEER
PRESSURE ON
CONSUMER
BEHAVIOR]
There are some people that an individual keeps in mind when making a purchase.
Usually, such people disseminate opinions and other individuals are pressured
into following their trend, becoming associated with them and using them as a
standard of their purchase decisions. Such people have a direct influence on the
purchase behavior of consumer.
 Peer Pressure &
Consumer Behavior

General Mc Arthur

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 Peer Pressure &
Consumer Behavior

Table of Contents

.................................................................................................................................... 2

General Mc Arthur.....................................................2

Table of Contents........................................................................................................ 3

Introduction................................................................................................................. 4

Peer Pressure Phenomenon..................................................................................4

A Typical Scenario.................................................................................................5

Peer Pressure and Consumption Decisions...........................................................5

The Affect of Peer Pressure on Consumer Behavior..............................................5

The Power of Peer Pressure..................................................................................6

Consumer Perspective..........................................................................................6

Peer Pressure in Pakistan .....................................................................................7

Marketing Perspective..........................................................................................7

Conclusion................................................................................................................... 8

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 Peer Pressure &
Consumer Behavior

Introduction

Peers are the people with whom one can identify and spend time. In children and teens, they are
usually, but not always, of the same age group. In adults, peers may be determined less by age
and more by shared interests or professions. Peer pressure occurs when an individual experiences
implied or expressed persuasion to adopt similar values, beliefs, and goals, purchase decisions, or
to participate in the same activities as those in the peer group.

Peer Pressure Phenomenon

Peer pressure is inevitable since there always exists one ‘cool group’ at school – which basically
includes a bunch of kids who do all the things that they are not supposed to do and make it seem
like a ‘cool’ or ‘happening’ thing to do. Children, who are too sincere at studies, have often been
at the receiving end of ridicule, and a lot of meaningless bashing by the bullies at school.
Indulging in fancy gadgets, expensive clothes, alcoholism, drug abuse, eating disorders and
smoking are some of the activities that are a part of the peer pressure phenomenon.

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 Peer Pressure &
Consumer Behavior
A Typical Scenario

Dressed in her Sana Safinaz lawn A-line shirt and white culotte, Sarah almost felt as if she was
hiding herself behind the layers of make-up that she dabbed before coming to school. She
remembered the first time she stepped into university. It was a nightmare for Sarah when she was
ridiculed for her dull dressing sense, her messed up hairdo and her geeky spectacles. She was sick
and tired of people laughing at her and looking at her as if she had walked out straight from
another planet. She was sick of being alone, and leading a non-existent profile in university until
she decided it was time for her to join the bandwagon. She started dressing up like the Barbie
dolls in her class, even picked up a few make up tips from them. The spectacles were replaced
with colored lenses, intensive treatment of face acne pursued. She shopped from the outlets
where the ‘cool’ crowd went. She stocked her wardrobe with Crossroads and Stone Age attire
and accessories. She signed up on Facebook, started Twittering, tuned into listen to Coke studio
and frequented the cafes. Although she hated it, she even smoked sheesha occasionally just to fit
in. Soon she was what her peers wanted her to be – one of the lot.

Peer Pressure and Consumption Decisions

Peer pressure exists for all ages. Three-year-old kids insist that their parents take them to the
store right away and buy them the latest fad toy because their friends have it. When the parents
don’t comply to these demands, the kids have a temper tantrum. Nine-year-old Sarah wears a
new shirt to school once, then refuses to wear it again because her friends made fun of it. Ahmad,
at sixteen, works out three hours a day to have a "perfect" body. When one of his friends at the
gym offers him some anabolic steroids, he accepts, sacrificing his health for his image.
Meanwhile, Ahmad's forty-year-old father just took out a loan he couldn't afford to buy a new
BMW because most of his neighbors drive luxury cars, and he didn't want them to think he
couldn't afford one too. No one is immune from peer pressure.

The Affect of Peer Pressure on Consumer Behavior

Buyers will conform to what others purchase so as not to stand out. We also believe that if we
purchase what others buy we are reducing our risk. If your product or service becomes the "in"
thing, your sales will come to you more easily over time. If buyers see several people rush to

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 Peer Pressure &
Consumer Behavior
your booth to purchase a product, chances are they will also come by to have a look. Have you
ever peered into the door of a restaurant that is new to you, to see how many people are in there
eating? If it's not reasonably crowded, you probably walked away. This is an example of peer
pressure buying.

The Power of Peer Pressure

Peer groups have so much influence, especially with adolescents, because, no matter how
inappropriate it seems to adults, belonging to a group really does give something significant to
the young person. Peer groups provide a place where children feels accepted, where they can feel
good about themselves, and where their self-esteem is enhanced. Some psychologists also point
out that life become simpler when we conform to expectations. Young people tend to gravitate
toward other young people with the same problems and in the same situations as themselves and
where they feel they will be understood and accepted. There is a very, very strong need to satisfy
that thirst for unity and for acceptance. The feeling of belonging is a very powerful force that can
outweigh ties to cast, school, family, or community.

Consumer Perspective

It would not be far-fetched to say that most consumption is fed by peer pressure. The race for
bigger, better and more fashionable possessions is after all between peers. If there was no one to
compete with, why would people use credit cards to change their cars or buy new gadgets when
the current one was performing just fine?

Consumers buy things to maintain their social standing. Fancy houses, flashy cars, trendy apparel
and all the bling of designer merchandise is based on the pressure to appear to be successful,
fashionable and ‘with it’. So people continue to labor to keep up appearances. They watch a game
they loathe so that they can join in the discussion with friends the next day. People will wear stuff
that they feel uncomfortable in to be considered fashionable amongst friends. They will take a
loan to buy a car they cant afford and enroll their kids in a study program so that they can boast
about it to friends even though their child is incredibly unhappy about the decision.

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Consumer Behavior
Peer Pressure in Pakistan

In our collectivist society decisions are rarely based on personal basis, rather they are weighed in
the light of society’s view of them. Parents make their children miss a year so they can reappear
in the medical college entry exam, if they fail in the first attempt. They pay millions of rupees to
enroll them in private med schools so that they can boast to be parents of doctors. In Pakistan
engineering and medicine are still the most coveted degrees despite the changing needs of the job
market.

Fashion is consumed with religious zeal and zest. Obese old women will wear culottes and paint
their nails red if that is what their friends are doing. 8 year olds girls will want to get their arms
waxed and have highlights in hair. There is no limit of age.

Weddings are consumption driven and based on the dictates of society. A girl has to be decked
with gold before she can be married off. Despite the surging prices of gold, people continue to
buy it for fear of hearing jeers of in-laws and even own family. Although he girl would rather
have her parents buy her a car or some other gadget for that amount. But the wishes of society
take a front seat.

Marketing Perspective

This has rather interesting implications for marketers. It means that if they can identify the
trendsetters of their target market and effectively capture them then they have won half the game.
The rest of the target market will eventually follow suit whether they like it or not. No ifs and
buts. Already this strategy is in use by most big companies. Apple makes it a point to share its
latest gadget’s protype with tech enthusiasts who blog about it. Fashion houses invite celebrity
endorsements. Political parties try to take journalists on board. Companies have been known to
visit schools and colleges, identify the most popular kids and offer them their product for free to
use and recommend to friends. Marketers have over time learned to capture the hearts and minds
of the key influencers who exercise great persuasion power over their peers.

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Conclusion

Peer pressure feeds consumption. People consume ideas, places, hobbies, services and
merchandise on the basis of peer influence. This has many implications for marketers; while
devising marketing campaigns this fact can be used to position the product offering favorably in
the minds of consumers. Peer pressure also gives a deep insight into the minds of consumer and
helps advertisers understand why consumers behave the way they do. In our society particularly,
we tend to be conformists. We feel immense pressure to base our consumption decisions on
social norms dictated by friends and family, be it in terms of choosing a university, profession or
wedding planner. Thus, peer pressure has considerable impact on consumer behavior and is
prevalent across all ages and segments of society.