Broadening the Corporate Governance Agenda: The Corporate Social Responsibility
In recent years, there has been an increasing emphasis on governing corporations according to social and environmental norms and ensuring that the negative externalities associated with them are minimized. When we talk about negative externalities, what we mean are the social and environmental costs that corporations impose on society and which are not factored into […]
SWOT Analysis of Microsoft
Introduction The recent announcement of the change of leadership at the helm of Microsoft has sparked speculation about possible strategic directional changes as well as kindled hopes that the pioneering company and its iconic founder who appeared to be floundering in recent years may well be getting their act together. The ensuing SWOT Analysis places […]
Porters Five Forces Model of Competition
Michael Porter (Harvard Business School Management Researcher) designed various vital frameworks for developing an organization’s strategy. One of the most renowned among managers making strategic decisions is the five competitive forces model that determines industry structure. According to Porter, the nature of competition in any industry is personified in the following five forces: Threat of […]
Orientation of Customers
Orientation of customer means how the customer’s preferences are possessed or in what areas of business the customers are conscious. A customer can be cost oriented, value oriented or technology oriented as discussed below: Cost Oriented Customers- A cost-oriented customer focuses on least costs products and is ready to compromise on efficacy, performance and quality. […]
Brand Identity vs Brand Image
Brand Identity Brand Image 1 Brand identity develops from the source or the company. Brand image is perceived by the receiver or the consumer. 2 Brand message is tied together in terms of brand identity. Brand message is untied by the consumer in the form of brand image. 3 The general meaning of brand […]
Consumer Behaviour is an effort to study and understand the buying tendencies of consumers for their end use.
Social factors play an essential role in influencing the buying decisions of consumers.
Human beings are social animals. We need people around to talk to and discuss various issues to reach to better solutions and ideas. We all live in a society and it is really important for individuals to adhere to the laws and regulations of society.
Social Factors influencing consumer buying decision can be classified as under:
Every individual has some people around who influence him/her in any way. Reference groups comprise of people that individuals compare themselves with. Every individual knows some people in the society who become their idols in due course of time.
Co workers, family members, relatives, neighbours, friends, seniors at workplace often form reference groups.
Reference groups are generally of two types:
Primary groups include:
All the above influence the buying decisions of consumers due to following reasons:
They have used the product or brand earlier.
They know what the product is all about. They have complete knowledge about the features and specifications of the product.
Tim wanted to purchase a laptop for himself. He went to the nearby store and purchased a Dell Laptop. The reason why he purchased a Dell Laptop was because all his friends were using the same model and were quite satisfied with the product. We tend to pick up products our friends recommend.
A married individual would show strong inclination towards buying products which would benefit not only him but also his family members as compared to a bachelor. Family plays an important role in influencing the buying decisions of individuals.
A consumer who has a wife and child at home would buy for them rather than spending on himself. An individual entering into marriage would be more interested in buying a house, car, household items, furniture and so on. When an individual gets married and starts a family, most of his buying decisions are taken by the entire family.
Every individual goes through the following stages and shows a different buying need in each stage:
A Ford Car in the neighbourhood would prompt three more families to buy the same model.
Each individual plays a dual role in the society depending on the group he belongs to. An individual working as Chief Executive Officer with a reputed firm is also someone’s husband and father at home. The buying tendency of individuals depends on the role he plays in the society.
An individual from an upper middle class would spend on luxurious items whereas an individual from middle to lower income group would buy items required for his/her survival.
Your email address will not be published. Required fields are marked *
