Consumer credit influences consumer behaviour if more consumer credit is available on liberal terms, expenditure on comforts and luxuries increases, as it induces consumers to purchase these goods, and raise their living standard. The consumer decision making process is influenced by various factors, those factors can be summarized as social, psychological and personal factors social factors include reference groups and group compliance so that behaviour is influenced by specific values, codes and culture and distinguishes groups from each other. In the meantime, before deciding to buy a commodity, various factors tend to influence the decision-making process in this article, we look at one of the common factors that affect consumer buying behavior reference groups. Consumer behavior can be defined as activities related to acquiring, consuming, and get rid of the goods or services, which also includes the decision-making process preceding and after the event took place [3.
Consumer behaviour helps us understand the buying tendencies and spending patterns of consumers not all individuals would prefer to buy similar products consumer behaviour deals with as to why and why not an individual purchases particular products and services personal factors play an important. A reference group is the group whose perspective we consider now our reference could be very large or very small including few of our family members or few close friends reference groups influence people a lot in their buying decisions. Social factors: social factors that affect consumer buying decisions social factors include family, reference groups, opinion leaders, social class, life cycle, culture, and subculture consumers may use products or brands to identify with or become a member of a reference group.
Environmental and situational influences consumer environment those factors existing independently of individual consumers and firms that influence the exchange process. The collective behavior of fads tend to influence fashion and consumer behavior without leaving a lasting societal impact collective behavior can often result in peer pressure, which compels people to conform to group behavior or risk ostracism. Group strength, group size, immediacy, and similarity are all factors that can influence compliance in an individual there are a number of techniques used to gain compliance, including the foot-in-the-door technique, the door-in-the-face technique, low-balling, ingratiation, and the norm of reciprocity.
The consumer's social situation, time factors, the reason for their purchases, and their moods also affect their buying behavior your personality describes your disposition as other people see it market researchers believe people buy products to enhance how they feel about themselves. A reference group can have considerable influence on the consumption decisions of an individual consumer an individual's reference group can range from family to a nation or a culture. An actual or imaginary individual or group that has a significant effect upon an individual's evaluations, aspirations or behaviour forms of reference groups: informational influence, utilitarian influence,value-expressive influence (range from known person to unknown famous person or character. - norms control group member behavior by establishing standards of right and wrong - status inequities create frustration and can adversely influence productivity - the impact of size on a group's performance depends upon the type of task in which the group is engaged. An aspirational reference group is a group a person wants to join and they need to conform to its norms non-aspirational influence our behavior when we try to maintain distance from them a consumer may avoid buying a certain car to avoid being associated with a group.
A reference group compromises people or institutions that provide a lot of social influence but two conditions need to be met: the purchase product must be one that others can see and identify and the purchased item must be conspicuous, stand out as something unusual, and be a brand or product that not everyone own. Consumer behaviour: text and cases satish k batra and shh kazmi about the author stan mack is a business writer specializing in finance, business ethics and human resources. - reference group influence consumer behaviour in three ways expose individual to new behaviour & lifestyle influences person's attitude & self-concept. Understanding consumer behavior is a broad and complicated task, but with the right research mix you can begin to get a detailed understanding of your customers and their motivations.
#1: change social conversations a recent gallup poll published in the state of the american consumer report indicates that despite the tremendous number of americans using social media platforms, only 5% say those platforms have a great deal of influence on their purchasing decisions. Social influences on consumer behavior by dr kevin lance jones social influences information and pressures from individuals, groups, and the mass media that affect how a person behaves why are socia. The study, identity and emergency intervention: how social group membership and inclusiveness of group boundaries shape helping behavior, by mark levine, amy prosser, david evans, and stephen reicher, appears in the personal and social psychology bulletin 2005, volume 31.
- cultural influences of consumer behavior understanding consumer buying behavior entails marketing, relationships, and consumer behavior consumer behavior comprises all the consumer decisions and activities connected with the choosing, buying, using and disposing of goods and services. Group dynamics is a system of behaviors and psychological processes occurring within a social group (intragroup dynamics), or between social groups (intergroup dynamics) the study of group dynamics can be useful in understanding decision-making behaviour, tracking the spread of diseases in society, creating effective therapy techniques, and. Reference groups can influence a consumer by affecting how they perceive a given product or service (ie, an informational influence), by affecting what the consumer values or aspires to be (ie, a value-expressive influence) and/or by affecting the type of behavior displayed by the consumer (ie, a utilitarian influence) (park and lessig. Consumer's buyer behaviour and the resulting purchase decision are strongly influenced by cultural, social, personal and psychological characteristics an understanding of the influence of these factors is essential for marketers in order to develop suitable marketing mixes to appeal to the target customer.