SOCIAL FACTORS
Reference Groups
The consumer’s decision to purchase and use certain products and services is influenced not only by psychological factors, his personality and life style, but also by the people around him with whom he interacts and various social groups he belongs to.
A group is defined as two or more people who interact to achieve Individual or common goals.
The 3 categories of groups are-
· Primary & Secondary groups- A primary group is one with which an individual interacts on a regular basis and whose Opinion is of importance to him.
For eg:- Family, neighbours, close friends, collegues and co-workers
Secondary groups are those with which an individual interacts only occasionally and does not consider their opinion very important.
· Formal & Informal groups- Rotary, lions, Jaycees are well known social groups in our society. A formal group has a highly defined structure, specific roles and authority positions and specific goals. An informal group is loosely defined and may have no specified roles and goals. For eg- meeting neighbours over lunch once in a month, for friendly exchange of news.
· Membership & Symbolic groups- A membership group is one to which a person belongs or qualifies for membership. All workers in a factory qualify for membership to the labour union. Symbolic group is one in which an individual aspires to belong but is not likely to be recognized as a member. A head clerk in an office may act as if he belongs to the top management group by adopting their attitudes, values and modes of dress etc.
· Reference groups- are used in advertising to appeal to different market segments, group situation with which potential customers can identify are used to promote products and services. Hidden in this appeal in the subtle inducement to the customer to identify himself with the user of the product in question. The three types of reference group appeals are celebrities, experts and common man.
| celebrities | Film stars & sport Heroes |
| experts | Doctors, accountants, lawyers |
| Common man | Lalitaji (surf) |
Indirect reference groups comprise those individuals or groups with whom an individual does not have any direct face to face contact such as filmstars, TV stars, sportsmen, politician.
Direct reference groups are ones which exert a significant influence on consumer’s purchase decision and behavior can be classified as
· Family
· Friendship groups
· Formal shopping groups
· Consumer action groups
· Work groups
Family – two families shape an individual’s consumption behavior.
1. Family of orientation is the family in which an individual is born, consists of parents, brothers and sisters.
2. Family of procreation consists of consumer’s spouse and children. Within the family, different members play different roles, marketers want to find out exactly the role played by individual member. For eg- traditionally wife purchases food, clothing and other household sundries, Husband plays a dominant role in the purchase of automobiles/insurance children are also beginning to exert their influence on family purchase decisions. TV, music system, personal computers etc.
Roles
An individual may participate in many groups has position within each group can be defined in terms of activities he is expected to perform. For eg:-
| | At workplace | At home |
| Individual | manager | Spouse/parents |
| Requires | 3 piece suit, tie, leather shoes | Jeans/T-Shirt/ Kurta Pyjama |
| Reason | To reflect status | Informal/comfort |
Status
Each role a person plays has a status which is relative prestige according to society. People buy and use products which reflect their status.
Group Norms
The norms of a group are the implicit rules of conduct and behavior that are expected of its member.
For eg:- multinational company in India
Norm for office wear is shirt/tie even in summer
Marketers need to identify the various groups to which potential consumers belong to market the products required.
Conformity
This implies that members of a group have adopted attitudes and behavior patterns that are consistent with the group’s norms. In the context of consumer behavior it refers to the percentage of members who knowingly use the same brand of product.
Opinion leaders
Apart from family, a consumer is influenced by the advice he receives from his friends, neighbours, relatives and collegues about what products and services he should buy.
This process of influencing is known as the opinion leadership process and is described as the process by which the opinion leaders normally influences the actions and attitudes of others.
The advice of opinion leaders is sought in case of specific products. People who have acquired considerable knowledge and experience in a particular field are considered as opinion leaders in that area.
Advertisers/marketers are therefore concerned with reaching opinion leaders.
Diffusion of Innovation
The acceptance of new products, brands and ideas is known as the diffusion of innovation. Marketers are concerned with spread or diffusion of this innovation.
