Environmental influences on consumer behavior

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

Subculture
culture 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

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;

Social class

Reference groups
A group of people that serves as a standard of reference in guiding an individuals thoughts, feelings, and actions. Types of reference group influence:
informational:
normative (utilitarian): comparative (value-expressive):

To satisfy the expectations of fellow work associates, the individuals 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.).

Reference group influence on product and brand choice (Bearden and Etzel 1982)
public
product choice brand choice

weak reference group influence PuNe (e.g., wristwatch, automobile, mans suit)

strong reference group influence

strong reference group influence necessity

PuLu (e.g., golf club, snow skis, sailboat)

luxury

weak reference group influence

PrNe (e.g., mattress, floor lamp, refrigerator)

PrLu (e.g., TV game, trash compactor, icemaker)

private

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);

Parental Roles in Family Decision Making

3

wife dominant
2.5

autonomic

syncratic

1.5

husband dominant

1 0%

Percentage of families engaging in joint decision making 50% 100%

Parental Influence by Product Category

3 wife dominant 2.5
cleaning products wife's clothing food

cosmetics

husband's clothing

children's toys appliances vacation

2
alcoholic beverages

housing

television car

1.5
other insurance life insurance

husband dominant
1 0% Percentage of families engaging in joint decision making 50% 100%

Parental Influence by Stage of Decision

3 wife dominant 2.5 1 2 2
husband's clothing appliances

1 problem recognition 2 search for information 3 final decision

car

1.5 husband dominant 1 0%

life insurance

Percentage of families engaging in joint decision making

50%

100%

The family life cycle

young single young married without children other young

married with children divorced with kids divorced with no kids

8.2 % 2.9 % 17.1 % 1.9 % 0.1 % 33.0 % 5.5 % 4.7 % 0.3 % 1.9 % 5.2 % 2.0 % 17.2 %

middle-aged (35-65)

married with children married with no dependent children married with no children divorced with no kids divorced with kids older (65+) married, spouse present unmarried, no spouse present all others