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CONSUMER SOCIAL CLASSES CHAPTER 4: ENVIRONMENTAL INFLUENCES:Shopping Groups

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Consumer Psychology (PSY - 514)
VU
LESSON27
CONSUMER SOCIAL CLASSES
CHAPTER 4: ENVIRONMENTAL INFLUENCES
Understanding:
 Shopping groups
 Celebrity and other reference groups
 Family as group
Shopping Groups
Two or more people who shop together, whether for food, clothing or simply to pass the time can be called a
shopping group. Such groups are often the offshoots of family or friendship groups and are often called purchase
pals
Motivation for Shopping with Purchase Pals
Shopping with groups could be a pleasant experience because of different types of motivations including:
Social Motive :To spend time together and enjoy lunch after shopping
Risk Avoidance: (Reduce the risk while making an important decision)
Reducing the Error: (Have someone whose expertise will reduce the chance of making an incorrect
purchase)
None of the members knows about the product under consideration
Defensive Reasons: Members may feel more confident with collective decision
In-Home Shopping Party
Group that gathers together in the home of a friend to attend a party devoted to demonstrating the features of a
specific line of product
Benefits of In-home Shopping Party
The features of a product can be marketed to a group of potential customers. Early purchasers tend to create a
bandwagon effect. Undecided guests often overcome a reluctance to buy when they see their friends make positive
purchase decisions. Some guests may feel obliged to buy because they are in the home of the sponsoring host or
hostess.
Customer Referral Program
Customer Referral Programs make use of elements of shopping behavior that take into account the group
dynamics. It usually focuses on Member Gets Member (MGM) Campaign. Current customer is asked to persuade
other members to become members. For example Membership Clubs of the Hotels
Work Groups
Workgroups consist of people who work together. Workgroups serve a major influence on consumer behavior of
members
Formal Workgroups consists of the individuals who work together as part of team and thus have sustained
opportunity to influence each other's consumption related actions and attitudes
Informal Workgroups consists of people who have become friends as a result of working for the same company,
whether or not they work together as a team. Members of informal workgroups may influence the behavior of
other members during coffee or lunch breaks or after work meetings
Virtual Group Communities
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Consumer Psychology (PSY - 514)
VU
Web based consumer groups. Such groups/communities provide access to members with ample information,
fellowship, and social interaction covering an extremely wide range of topics and issues (e.g. vegetarianism,
cooking, trading, electronic equipments, software, matchmaking, technology, etc...)
Evolution in the Definition of Communities
50 Years ago definition of community stressed the notion of geographic proximity and face to face relationship,
today community is much more broadly defined as sets of social relationships among people.
On the internet It does not matter who you are. People are free to express their thoughts.
Be emotionally intimate with those they don not know at all. The anonymity on the web gives its user maximum
freedom. Communicating on the internet makes people explore the boundaries of their personalities and shift
from one persona to the other. The exchange of knowledge that can take place within a virtual community can
help a good product sell faster and poor products fail faster.
Brand Communities
Specialized non-geographically bound community, based on a structured set of social relationships amongst
admirers of a brand ... It is marked by a shared consciousness, rituals and traditions and sense of moral
responsibility.
Marketers some time design specific product or service to create a sense of community or take advantage of pre-
existing relationships (e.g. offer to members of a family and relatives or friends, or even people doing business
with each other). Runners get together at Nike town store. Saturn automobile reunions and barbeques, Jeep
owners.
Consumer Action Groups
Groups dedicated to providing consumers with assistance in their effort to make the right purchase decisions,
consume services and products in a healthy and responsible manner and generally add to the quality of their over-
all lives
Categories of Consumer Action Groups are those that organize to correct specific consumer abuse and then
disband it. They organize to address broader more pervasive problem areas and operate over an extended or
indefinite period of time.
Examples may be group of neighbors who meet with local highway departments to demand additional stop signs
be placed on specific corners in their residential neighborhoods. It could be group of parents who band together
to protest the sale of cigarettes to the minors in their neighborhoods.
Celebrity and Other Reference Group Appeals
Celebrities can be a powerful force in creating interest or actions with regard to purchasing or using selected goods
and services
Types of Reference Groups in this regard include:
 Celebrity Appeal
 Expert Appeal
 Common Man Appeal
 Executive and Employee Appeal
 Trade or Spokes Character Appeal
1. Celebrity Appeal
Celebrities mostly include:
 Movie Stars
 TV Stars
 Entertainers Sports Icons
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Consumer Psychology (PSY - 514)
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Entertainers
According to an estimate about 25% of advertisements include celebrities. Advertisers spend enormous sums of
money to have celebrities to promote their products with the exception that the reading or reviewing audience will
act positively to the celebrity's association with their product. Famous people hold the viewers' attention.
Examples
Michael Jordon Under contract with NIKE till 2023
 Tiger Woods has a five year contract with Buick , estimated at $ 30 Million
 Tiger Woods also with NIKE where his deal is going to rise up to $ 80 Million
 David Beckham signed a contract with Gillette worth $ 68 Million
Celebrity Credibility
Audience's perception of the celebrity's level of expertise in endorsing a product is considered important by the
target consumers. It matters to them that
­  How much the celebrity knows about the product area
­  How hones the celebrity is about what he or she says about the product)
2. Expert Appeal
A person who because of his/her occupation, special training, or experience is in a unique position to help the
prospective consumer evaluate the product or service that the advertisement promotes.
Example
 Advertisement of a quality Oil may feature the endorsement of a chef
 The advertisement of a toothpaste endorsed by a dentist
 The advertisement of a car leasing plan endorsed by a financial analyst
3. The Common Man Appeal
Reference Group Appeal that uses the testimonials of satisfied customers is known as the Common Man
Approach.
Examples
A Middle aged humble and innocent lady ­ endorsing a financial savings plan
 NIKE Sneakers Ad taking the common youngsters playing cricket on the roof tops of the buses
Advantage of the Common Man Appeal
The Common Man Appeal demonstrates to the prospective Customer that some one just like them uses and is
satisfied with the product or service being advertised. Common Man Appeal is especially effective in public health
announcements. Most Television Commercials show a typical person or family solving a problem using the
advertised product/service.
4. Executive-Employee Spokesperson
Increasing number of companies has shown their CEO's in the advertisements.
5. Trade or Spokes Character Appeal
Characters created by the company to endorse their products, E.g. Ninja Turtles, Commander Safeguard, etc..
Other Reference Group Appeals
 Respected Retailers
 Editorial Content of Special interest magazines
 Fashion Magazines Endorsements (Fashion Designers)
 Seals of Approval (Medical/Pharmaceutical products, ISO certifications, etc...)
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Family
Key Family Consumption Roles include:
 Influencers:
­  Family members who provide information to other family members about the product/service
 Gatekeepers
­  Family Members who control the flow of information about a product/service in the family
 Deciders
­  Family Members with the power to decide unilaterally or jointly whether to shop for, purchase,
use, consume or dispose of a specific product/service
 Buyers
­  Family members who make the actual purchase of a particular product/service
 Preparers
­  Family Members who transform a product into a form suitable for consumption by other
members
 Users
­  Family Members who use or consume a particular product/service
 Maintainers
­  Family members who service or repair the product so that it will provide continuous satisfaction
 Disposers
­  Family Members who initiate or carry out the disposal or discontinuation of a product /service
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Table of Contents:
  1. INTRODUCTION TO CONSUMER PSYCHOLOGY:Consumer Behavior
  2. INTRODUCTION TO CONSUMER PSYCHOLOGY:Consumer research
  3. INTRODUCTION TO CONSUMER PSYCHOLOGY:Marketing Mix, Product, Price
  4. INTRODUCTION TO CONSUMER PSYCHOLOGY:Customer Value, Perceived Value
  5. VALUE AND RETENTION FOCUSED MARKETING AND CONSUMER DECISION MAKING PROCESS
  6. CONSUMER RESEARCH:Quantitative Research, Qualitative Research
  7. MAJOR STEPS IN CONSUMER RESEARCH PROCESS:Design of Primary research
  8. QUANTITATIVE RESEARCH DESIGNS & DATA COLLECTION METHODS
  9. QUANTITATIVE RESEARCH DATA COLLECTION TECHNIQUES:ATTITUDE SCALES
  10. QUALITATIVE RESEARCH DESIGNS & DATA COLLECTION METHODS
  11. CUSTOMER SATISFACTION MEASUREMENT, SAMPLING, AND DATA ANALYSIS AND REPORTING
  12. MARKET SEGMENTATION AND ITS BASES:Geographical Segmentation
  13. BASES FOR SEGMENTATION: DEMOGRAPHIC SEGMENTATION PSYCHOGRAPHIC SEGMENTATION
  14. BASES FOR SEGMENTATION: SOCIOCULTURAL SEGMENTATION USE RELATED SEGMENTATION USAGE SITUATION SEGMENTATION
  15. BASES FOR SEGMENTATION: BENEFIT SEGMENTATION:Intrinsic Cues
  16. BASES FOR SEGMENTATION: HYBRID SEGMENTATION STRATEGIES
  17. MARKET SEGMENTATION IMPLEMENTING SEGMENTATION STRATEGIES ENVIRONMENTAL INFLUENCES CULTURE
  18. HOW CULTURE IS LEARNT ENVIRONMENTAL INFLUENCES:Formal Learning
  19. CULTURE AND ITS MEASUREMENT ENVIRONMENTAL INFLUENCES
  20. MEASUREMENT OF CULTURE ENVIRONMENTAL INFLUENCES:Consumer Fieldwork
  21. SUBCULTURE CHAPTER 4: ENVIRONMENTAL INFLUENCES
  22. AGE AND GENDER SUBCULTURE CHAPTER 4: ENVIRONMENTAL INFLUENCES
  23. BASES FOR SEGMENTATION: BENEFIT SEGMENTATION:Market Segmentation
  24. SOCIAL CLASS CHAPTER 4: ENVIRONMENTAL INFLUENCES:Occupation
  25. CONSUMER SOCIAL CLASSES CHAPTER 4: ENVIRONMENTAL INFLUENCES:Affluent Consumer
  26. CONSUMER SOCIAL CLASSES CHAPTER 4: ENVIRONMENTAL INFLUENCES:Membership Group
  27. CONSUMER SOCIAL CLASSES CHAPTER 4: ENVIRONMENTAL INFLUENCES:Shopping Groups
  28. UNDERSTANDING PERSONALITY CHAPTER 5: INDIVIDUAL DETERMINANTS OF CONSUMER BEHAVIOR
  29. CONSUMER PERSONALITY, TRAIT THEORY AND SELF IMAGES
  30. CONSUMER MOTIVATION:Needs, Goals, Generic Goals
  31. UNDERSTANDING LEARNING:Intentional and Incidental Learning, Implications for Marketers
  32. INSTRUMENTAL CONDITIONING, INFORMATION PROCESSING AND MEMORY
  33. ATTITUDES:Characteristics of Attitudes, Attitudes have consistency
  34. ATTITUDE FORMATION AND CHANGE:How attitudes are learned?
  35. ATTITUDE CHANGE STRATEGIES:Resolving two conflicting attitudes
  36. INTRODUCTION TO CONSUMER DECISION MAKING:Decision Complexity
  37. Problem Recognition, Search and Evaluation and Decision and Purchase
  38. Decision and Purchase:Consumer Decision Rules, Output, Relationship Marketing
  39. Decisions Related to Post Purchase:Product Set up and Use
  40. Marketing Implications of Decisions Related to Post Purchase:Understanding
  41. Post Purchase Evaluation:Determinants of Satisfaction, Consumer Complaint Behavior
  42. Post Purchase Dissonance:Dissonance Reduction, Marketing Implications
  43. Consumerism:Roots of Consumerism, The Nature of Consumerism
  44. Consumerism Issues and Responses:Environmental Concerns, Consumer Privacy
  45. Review Consumer Psychology Course:Consumer Research, Consumerism