9 Group and Situational Effects on Consumer Behavior

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1 9 Group and Situational Effects on Consumer Behavior CONSUMER BEHAVIOR Buying, Having, and Being ELEVENTH EDITION Michael R. Solomon Chapter Objectives 1. Many factors at the time of purchase dramatically influence the consumer decision-making process. 2. The information a store s layout, Web site, or salespeople provides strongly influences a purchase decision. 3. Other people and groups, especially those that possess social power, influence our decisions Chapter Objectives (Cont.) Chapter Objectives (Cont.) 4. We seek out others who share our interests in products or services. 5. Our desire to be consistent with other people motivates us to mimic what they buy and use. 6. Marketers often need to understand consumers behavior rather than a consumer s behavior. 7. The decision-making process differs when people choose what to buy on behalf of an organization rather than for personal use. 8. Our traditional notions about families are outdated. 9. Members of a family unit play different roles and have different amounts of influence when the family makes purchase decisions

2 Learning Objective 1 Many factors at the time of purchase dramatically influence the consumer s decision-making process Figure 9.1 Issues Related to Purchase and Postpurchase Activities A consumer s choices are affected by many personal factors and the sale doesn t end at the time of purchase Social and Physical Surroundings Temporal Factors: Economic Time Affect a consumer s motives for product usage and product evaluation Décor, odors, temperature Co-consumers as product attribute Large numbers of people = arousal Interpretation of arousal: density versus crowding Type of patrons Timestyle Time Poverty

3 Temporal Factors: Psychological Time Social Temporal Orientation Planning Orientation Five Perspectives on Time Time is a. Pressure cooker Map Mirror River Feast Polychronic Learning Objective 2 In what ways do you experience time poverty? What products do you purchase because of the sense of time poverty? The information a store s layout, Web site, or salespeople provides strongly influences a purchase decision

4 Figure 9.2 The Shopping Experience: Dimensions of Emotional States Reasons for Shopping Social experiences Sharing of common interests Interpersonal attraction Instant status The thrill of the hunt E-Commerce: Clicks versus Bricks Benefits: good customer service, more options, more convenient Limitations: lack of security, fraud, actual shopping experience, shipping charges Will e-commerce eventually replace traditional brick-and-mortar retailing? Why or why not? What are the benefits that traditional retail stores provide that e-commerce cannot provide?

5 Retailing as Theater Store Image: The Store s Personality Landscape themes Marketscape themes Cyberspace themes Mindscape themes Location + merchandise suitability + knowledge/congeniality of sales staff Other intangible factors affecting overall store evaluation: Interior design Types of patrons Return policies Credit availability Salespeople Play a Key Role How would you depict an impulse buyer? Explain

6 Learning Objective 3 Other people and groups, especially those who possess some kind of social power, influence our decisions. What Are Sources of Power? Social power: capacity to alter the actions of others Referent power Information power Legitimate power Expert power Reward power Coercive power For each type of social power source of influence, share an example of a time you experienced that form of influence. Learning Objective 4 We seek out others who share our interests in products or services

7 Influences of Reference Groups Informational Utilitarian Value-expressive Brand Communities and Consumer Tribes A group of consumers who share a set of social relationships based upon usage or interest in a product Consumer tribes share emotions, moral beliefs, styles of life, and affiliated product Brandfests celebrated by community Figure 9.4 Collective Value Creation Membership versus Aspirational Reference Groups Membership reference groups People the consumer actually knows Advertisers use ordinary people Aspirational reference groups People the consumer doesn t know but admire Advertisers use celebrity spokespeople

8 Factors Predicting Reference Group Membership Propinquity Mere exposure Positive versus Negative Reference Groups Avoidance groups: motivation to distance oneself from other people/groups Antibrand communities: coalesce around a celebrity, store, or brand but in this case they re united by their disdain for it Group cohesiveness Consumers Do It in Groups Why do we conform? Cultural pressure Fear of deviance Commitment Group unanimity Interpersonal influence How can marketers use the characteristics that explain conformity to persuade individuals to follow consumer trends?

9 Learning Objective 6 Marketers often need to understand consumers behavior rather than a consumer s behavior. Roles In Collective Decision Making Initiator Gatekeeper Influencer Buyer User Learning Objective 7 The decision-making process differs when people choose what to buy on behalf of an organization rather than for personal use. Organizational Decision Making Organizational buyers: purchase goods and services on behalf of companies for use in the process of manufacturing, distribution, or resale. Business-to-business (B2B) marketers: specialize in meeting needs of organizations such as corporations, government agencies, hospitals, and retailers

10 Compared to Consumer Decision Making, Organizational Decision Making Involves many people Requires precise, technical specifications Is based on past experience and careful weighing of alternatives May require risky decisions Involves substantial dollar volume Places more emphasis on personal selling Assume that you are a sales representative for a large company that markets laptop computers. List all the people that may be involved in making the decision to purchase from you. Try to match all the people to their possible decision roles as outlined on the previous slide What Influences Organizational Buyers? The buyclass theory of purchasing divides organizational buying decisions into 3 types: Level of information required Seriousness of decision Familiarity with purchase Table 9.4 Types of Organizational Buying Decisions Buyclass theory: organizational buying decisions divided into three types, ranging from most to least complex: Buying Situation Extent of Effort Risk Buyers Involved Straight rebuy Modified rebuy Habitual decision making Limited problem solving Low Low to moderate Automatic reorder One or a few New task Extensive problem solving High Many

11 Summarize the buyclass model of purchasing. How do decisions differ within each class? Learning Objective 8 Our traditional notions about families are outdated The Modern Family Unit Changes in family structure Boomerang kids Sandwich generation Changes in household concept How does the changing nature of the family affect marketing mix decisions marketers make to target families and family members?

12 Nonhuman Family Members Pets are treated like family members Pet-smart marketing strategies: Name-brand pet products Lavish kennel clubs Pet accessories Family Life Cycle Factors that determine how couples spend money: Whether they have children Whether both spouses work Family life cycle (FLC) concept combines trends in income and family composition with change in demands placed on income Variables Affecting FLC Age Marital Status Children in the Home Ages of Children in the Home For the following products, discuss how having children or not might affect the choices a couple makes. What do such variations mean for marketers? Groceries Cars Vacations

13 Learning Objective 9 Members of a family unit play different roles and have different amounts of influence when the family makes purchase decisions. Household Decisions Consensual Purchase Decisions Accommodative Purchase Decisions Resolving Decision Conflicts in Families Interpersonal need Product involvement and utility Responsibility Power Who Makes Key Decisions in the Family? Autonomic decision: one family member chooses a product Syncretic decision: involve both partners Used for cars, vacations, homes, appliances, furniture, home electronics, interior design, phone service As education increases, so does syncretic decision making

14 Factors Affecting Decision-Making Patterns Among Couples Sex-role stereotypes Spousal Resources Experience Socioeconomic Status Heuristics in Joint Decision Making Synoptic ideal: the couple takes a common view and act as joint decision makers Heuristics simplify decision making: Salient, objective dimensions Task specialization Concessions based on intensity of each spouse s preferences Chapter Summary What exposure have you had to family decisions made in your own family? Can you see the patterns discussed in the chapter in those decisions? Give an example. Many factors affect the consumer decision-making process. The retail environment and experience is a strong influence. Other people and groups, especially those with social power, influence our decisions. We seek out others who share our interests in products

15 Chapter Summary (Cont.) Marketers need to understand behavior in collective decision-making situations. The decision-making process differs when people choose what to buy on behalf of an organization rather than for personal use. Our traditional notions of family are outdated. Family members play different roles and varying levels of influence