GROUP INFLUENCES

Reference Groups Reference group influences---> a) Informational influence b) Normative influence Roles Role Load Evolving Roles Role Conflicts & Role Overload Group Communication

 Group: two or more individuals who share a set of norms , values or

beliefs and have certain implicitly /explicitly defined relationships to one another such that their behaviors are interdependent A reference group is a group whose presumed perspectives or values are being used by an individual as the basis for his or her current behavior.

 Informational Influence : occurs when an individual uses the

behaviors and opinions of reference group members as potential useful g\bits of information. This influence is based on either the similarity of the group members to the individual or the expertise of the influencing group member. Normative Influence :(utilitarian influence) occurs when an individual fulfills group expectation s to gain a direct reward or avoid sanctions. Normative influence is strongest when individuals have strong ties to the group and the product involved is socially conspicuous.

GROUP INFLUENCES
Opinion Leadership: High Product/ Purchase Involvement High Product Knowledge Low High Moderate

Moderate

low

Low

Group Influence
OPINION Leader Characteristics
100%

Diffusion of Innovation.

Fast Diffusion % of total group adopting innovation

Time

Purchase Involvement and Types of Decision Making

Low purchase involvement

High purchase involvement

Habitual decision making

Limited decision making

Extended decision making

Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

36

Purchase Involvement and Types of Decision Making (cont.)

37

Purchase Involvement and Types of Decision Making (cont.)

38

Consumer Buying decision Making Process

Problem Recognition
Information Search Alternative Evaluation & Selection

Store Choice
Post Purchase Behaviour/Processes

Nature of Problem Recognition

Problem recognition is the first stage in the consumer decision process
Problem recognition is the result of a discrepancy between a desired

state and an actual state that is sufficient to arouse and activate the decision process An actual state : is the way an individual perceives his/her feelings and situation to be at the present state. A desired State: way an individual wants to feel or be at the present time.

Process of Problem Recognition

Desired Consumer Lifestyle Desired State Current Situation Actual State

NATURE OF DISCREPANCY

No difference Satisfaction No action

Desired state exceeds Actual state Actual state exceeds desired state

problem recognized (Information search initiated)

1) Discovering consumer Problems

a) intuition : managers analyze a given product category and logically determine were improvements can be made. B) Research techniques: 1) Survey 2) Focus group Both focus group and survey tend to take one of the following approaches to problem identification. B1---> Activity analysis : Focuses on a particular activity such as preparing dinner,, maintaining the lawn etc. Focus group attempts to determine what problems the consumers feel occur during the performance of the activity. B2:---> Product Analysis: Examines the purchase and /or use of a particular product/brand. E.g :-- consumers may be asked about problems faced with W/M or CTV or Bikes etc.

2) Responding to consumer Problems

Marketers structure the marketing mix to solve the problems This can involve developing a new product or altering existing one ,

changing pricing policy , distribution or promotion. E.g : Weekend and late night stores (some 24 hours format)and also internet stores --- response to consumer problems of limited weekday shopping activities ---> particularly important to families were both spouses are working

The approach of graduation , companies respond with credit

cards , insurance - to solve problems associated with onset of financial independence and major change in lifestyle.

3. Approaches to activate problem recognition :

a) Influence desired state: marketers often advertise the benefits their products will provide , hoping that these benefits will become desired by consumers e.g Hyundai Accent ad b) Influence perceptions of existing state : e.g Personal care ads use statements that generate concerns about an existing state Lifebouy ad -- showing 3 college girls

3. Approaches to activate problem recognition :

The Timing Of Problem recognition : Consumers often recognize

problems at times when purchasing a solution is difficult. Or impossible. E.g Need for insurance after the accident Need for cold medicine when we are sick but we dont fell like going to the store to buy one. Common strategy is to trigger problem recognition in advance of actual problem CEASTE FIRE national Assurance , Dabur Chywanprash Franklin templeton ads.

Stage 2: Information search

What is nature of information search. What types of information are sought What sources of information are used What marketing strategies can be developed based on patterns of

search behavior. A) Nature of Information Search 1) Internal Search : If Trishun had given relief against cold last time , he would go to nearest store and buy Trishun without further information search or evaluation 2)External Search : a)Opinion of friends , neighbors , relatives b) Professional information that is provided in internet , newspapers ,magazines etc. C) Ads, Instore displays

 B) Types of Information Search:

1) Appropriate evaluation criteria for the solution of a problem 2) Existence of various alternative solution. 3) performance level or characteristics of each alternative solution on each alternative criterion

Decision rules
Conjunctive Rule

Establishes minimum required performance standards for each evaluation criterion and selects all brands that surpass these minimum standards. E.g - If Price=3, Weight =4, Processor-3, Battery Life-1, After sales service=2,Display quality= 3---are minimum standards then only Compaq and HP will qualify.

Decision Rules
Disjunctive Rule :
Establishes a minimum level of performance for each important attribute (normally a high level) . All brands that surpass the level for any key attribute are considered acceptable . E.g Price=5, Weight-5, Display Quality -5 , other parameters-

not critical

NEC (price), HP (Weight), Macintosh (Display Quality) will be in the final reckoning.

Decision Rules
3) Elimination By Aspects:
1) Consumers rank the evaluation criteria in terms of their importance and establishes a cut-off point for each criterion. 2) All brands are first considered on the most important criterion. 3) Those brands that do not surpass the cut-off point are dropped from further consideration. 4) The process continues till only one brand remains .

Decision Rules
4) Lexicographic :
1)Seeks maximum performance at each stage. 2)Consumer ranks the criteria in order of importance . 3) Selects the brand that performs best on the most important attribute. 4) if 2 or more brands are tied on this attribute , they are evaluated on the 2nd important attribute. In this case , NEC would be selected on price. But if NEC -4 on price , it would have tied with Macintosh. Then NEC and Macintosh would be compared on Weight, wherein Macintosh would have got selected.

Decision Rules
Compensatory :
Rb=Wi*Bib Where Rb-overall rating of Brand b Wi= Importance oattached to evaluation criterion I Bib- Evaluation of brand b on criterion i, n= number of criteria. E.g - Price-30, weight- 25, Processor- 10, Battery Life 5, After sales service-10, Display quality-20 Rmac= 30(4)+25(4)+10(2)+5(3)+10(3)+ 20(5)= 385.

Internal influences

Motives

Emotions

Learning Perception

Personality

Internal Influence- Personality

DEFN : is an individuals characteristic response/tendencies across similar situations. Major theories of personality A)) Freudian Theory : Id, Ego, Superego B) Non- Freudian Theory : Karen Horney : Individuals classified into 3 personality groups : 1) Compliant -- Individuals who move towards others -- They want to be appreciated , loved--- peace loving , sober guys. 2) Aggressive : Who move against others--- desire to win /excel and win admiration. 3) Detached : Who move away from others --- desire independence , self- sufficiency and freedom from obligation.

Internal Influence- Personality

C) Jungian Theory : Jungian inspired psychological dimensions

1) Sensing-Intuiting 2) Thinking- Feeling 3) extrovert -introvert 4) Judging-Perceiving

D) Trait theory : Any distinguishing relatively enduring way in which

one individual differs from another.--- CATELLs Trait Theory. E.g : 1) Reserved v/s Outgoing 2) Shy v/s Venturesome 3) Conservative v/s experimenting 4) Relaxed v/s tense 5) Sober v/s happy-go-lucky

Internal Influence-Perception
Defn:- The process by which an individual selects , organizes,

interprets stimuli into a meaningful coherent picture of the world. Stimuli : unit of input to any of the senses (eyes,ears etc.)e.g of stimuli are ----> product, packaging, Brand name, Advt. Etc. The study of perception is largely the study of what we subconsciously add to or subtract from the sensory input to produce our own private picture of the world. ABSOLUTE THRESHOLD : The lowest level at which an individual can experience a sensation is called the absolute threshold. In simple terms the point at which a person can detect a difference between SOMETHING and NOTHING is that persons absolute threshold for that stimuli

Internal Influence-Perception
Under conditions of constant stimulation such as seeing the same ad

or the same set of hoarding the A.T increases. Companies change ads or have a series of ads or use different media to overcome this --- bus shelter, inside trains , on top of auto etc.
DIFFERENTIAL THRESHOLD : The minimal difference that can

be detected between two stimuli. This also called as J.N.D. (Just Noticeable Difference ) WEBERS LAW : J.N.D between two stimuli was not an absolute amount but an amount relative to the intensity of the first stimulus. The law states : Stronger the initial stimulus , the greater the additional intensity needed for the second stimulus to be perceived as different.

Internal Influence-Perception
E.g 1) Maruti 800 -- cost is 2,50,000

2) Cost goes up by 5000. 3) Cost goes up by 30000. PETROL PRICE = Rs. 42/litre 1) price goes up by 25 paise 2) price goes up by 1.25 paise Relevance to Marketing : companies try to find J.N.D for their products for the following reasons Reduction in product size , increase in product price or reduction in quality are not discernible to the public. Product Improvements/sales promotional schemes which are discernible.

ATTITUDE
DEFN: A learned predisposition to behave in a

consistently favorable or unfavorable way with respect to a given object.

Object

brand

Packaging

retailer

advertising

Attitude
Learned Predisposition : attitudes relevant to purchase behavior are

formed as a result of direct experience with the product , information acquired form others and exposure to mass media. Consistency : e.g If you like Japanese cars, when you want to buy a car--- it will be Japanese. Does situation have an influence on consumer attitudes? A specific situation can cause consumers to behave in ways seemingly inconsistent with their attitudes. E.g ---> Rohit uses Gillette shaving cream regularly --- Next time he chooses the super saver offer of Palmolive ---->Buy 1- Get 1 free ---> overall price is lower then Gillette.

Structural Model Of Attitudes

A) The tricomponent attitude model:

1) Cognitive 2) Affective 3) Conative component 1) Cognitive Component: consists of a consumers belief about an object. E.g ---> A consumer believes that DIET COKE has a) No Calories b) contains caffeine c) is competitively priced. The total configuration of beliefs about this brand represents the cognitive component of an attitude towards DIET COKE. BELIEFS MAY BE CORRECT OR INCORRECT----> BUT THEY ALWAYS EXIST.

 2) Affective Component :Feelings or emotional reactions

to an object represent the affective component of an

attitude. e.g A consumer who states I like Diet coke or Diet coke is terrible is expressing the results of an

emotional or affective evaluation of the product.

3) Conative or Behavioral component : Tendency to

respond in a certain manner towards an object. E.g a series of decisions to purchase /not purchase DIET COKE or to recommend it to friends would reflect the Conative component of an attitude.