CONSUMERS IN THEIR SOCIAL AND CULTURAL SETTINGS - 2

Prof. SAVICA

SOCIOLOGICAL DETERMINANTS

Each person is a social being, influenced by the ENVIRONMENT in which he lives or works

Factors

Culture

Subculture

Social class

Reference groups

Social groups

Family

Lifestyle

Roles and status

REFERENCE GROUPGroup that serves as a frame of reference for individuals

in their purchase or consumption decisions

identification / imitation

REFERENCE GROUP

Reference groups consist of individuals or groups that have a strong influence on consumer behavior

Individuals Groups

Celebrities Athletes Political leaders

Music groups Sports groups Political parties

REFERENCE GROUPWhy reference groups are important?

Better lifestyle

New fashion

Accepting new products

REFERENCE GROUP

What impact can reference groups have?

Normative

Comparative

Informative

Identification

1

2

3

4

REFERENCE GROUP1. Normative = Basic code of conduct

Family

Reference group sets norms for general or broadly defined behavior of individuals

(appropriate way to dress, to behave in special occasions, to select food for good nutrition, how and where to shop, how to behave in a church, museum,

etc...)

REFERENCE GROUP2. Comparative = Benchmark for

comparison

Neighbors

Reference group serves as a benchmark for specific or narrowly defined behavior

(admiring and imitating the lifestyle of neighbors-the way they maintain their home, their taste in clothing, their choice of holidays, home furnishings, cars,

etc….)

REFERENCE GROUP3. Informative = Reference group serves as a source of

information for directing the consumer behavior

Friend 30.2%

Doctor (specialist) 22.1%

Beauticians / hairdresser 18.6%

Magazine 14.0%

pharmacist 8.1%

Partner 7.0%

TOTAL 100%

Who would you ask for an information or advice on products for skin care?

REFERENCE GROUP4. Identification = Reference group with which an individual wants to

identify(celebrities, athletes, political leaders, TV spokesmen, well-dressed

people, people that have an interesting outfit)

REFERENCE GROUPTypes of reference groups

Friendship

Shopping groups Virtual groups Family

Brand communities Celebrities

Work groups

REFERENCE GROUPReference groups and marketing

• To determine the degree of influence of the reference group • To determine who is the leader in the reference group• To create a promotional activity for the most influential reference group• To try to increase the impact of the group

FAMILYFamily is a primary reference group of two or more persons related

by blood, marriage or adoption who reside together! Household is a group of people that represents a consumption

community!

All the families are households, but not all households are families!

FAMILYTypes of families

Nuclear familyExtended

familySingle-parent

family

FAMILY

Functions of family

Sharing economic situation

Socialization of children

Building a lifestyle

Emotional support

FAMILYFamily- Lifecycle stages

FAMILY

0% 50% 100%

3

2.5

2

1.5

1

Dominant wife

Dominant husband

Autonomous decision Joint decision

Percentage of families who make a joint decision

Who makes the buying decision?

0% 50% 100%

Percentage of families who make a joint decision

3

2.5

2

1.5

1

Clothes for wife

Clothes for husband

Life insuranceOther isnurance

Holidays

TV

Car

Food

Cleaning products

Cosmetics

Toys for kids

Home furnishings

Home appliances

Dominant wife

Dominant husband

Alcoholic beverages

FAMILY

Joint decision

Autonomous decision

Who makes the buying decision?

Husband/Wife Decision Roles for Services

FAMILY

ROLE AND STATUS

Role – set of behaviors that are expected of an individual in a certain position in society

ROLE AND STATUSOne person– many roles in the same time

husband parent economist manager athlete

behavior behavior behavior behavior behavior

Conflict of roles

Limited resources – time!

Product: fast food

ROLE AND STATUSRoles of a student

ROLE AND STATUS

Status – General respect that society gives to a certain person

CEO CEO

10.000 € / monthly 3.000 € / monthlySame social class, different status!

power

property

heritage

lifestyle

income

LIFESTYLE

Lifestyle is a way of life, the way people spend their time and money (activities), what they consider important in their life

(interests) and what they think about themselves and the world around them (opinions).

LIFESTYLEActivities

The way people spend their time and money

walking

learning

cooking

relaxing

reading

Sports clothes, equipment

vegetables, stove, spices

books, pens

CD, bed, pajamas

book, newspaper, magazine

Activities Products

LIFESTYLE

InterestsPreferences and priorities of the people

Interests

family

work

fashion

food

home

LIFESTYLEOpinions

What people think of themselves and the world around them

Opinions

politics

economics

culture

social problems

future

MINI TEST

Explain the following terms:

• Normative reference groups: -----------------------------------• Comparative reference groups: --------------------------------• Household vs. family:--------------------------------------------• Socialization of kids:---------------------------------------------• Conflict of roles:--------------------------------------------------• Status:----------------------------------------------• Reference group:---------------------------• AIO:-------------------------------------------• Dominant husband:-----------------------------------• Joint family decision:----------------------------------------