Family Influences on Consumer Behavior
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Questions and Answers

Match the Family Life Cycle stage with its description:

Bachelor Stage = Young and single without financial obligations Newly Married Couples = Young, no children, shared responsibilities Full Nest 1 = Young, married with child, focused on child's needs Full Nest 2 = Older, married with children, increased expenses Full Nest 3 = Older, married with dependent children, high income and expenditure Empty Nest = Older, married with no children, focus on self-improvement Solitary Survivor = Older, single retired people living alone

Define a family according to the provided content.

A family is two or more people living together who are related by blood or marriage.

Personal influences can be affected by a person's occupation, economic circumstances, and lifestyle.

True

Which influences play a significant role in family decision-making?

<p>All of the above</p> Signup and view all the answers

Diffusion is the process by which the acceptance of an innovation is spread by ________ to members of a social system over a period of time.

<p>communication</p> Signup and view all the answers

What is the consumer need related to achieving some practical benefit, such as durability or economy?

<p>Utilitarian needs</p> Signup and view all the answers

Consumers buy products directly, without considering their motives.

<p>False</p> Signup and view all the answers

Need for __________ - Consumers like to own products which give them a feeling of independence.

<p>independence</p> Signup and view all the answers

Match the following motivational conflicts with their descriptions:

<p>Approach-approach Motivational Conflict = Two equally attractive choices causing conflict Approach Avoidance Motivational Conflict = Faced by positive and negative consequences Avoidance-avoidance Conflict = Two undesirable consequences leading to conflict</p> Signup and view all the answers

What are the characteristics of High Involvement Decision Making?

<p>Products of very high value, involve a lot of risk, bought once in a lifetime or few times, attributes considered while choosing.</p> Signup and view all the answers

What is defined as an innovation?

<p>All of the above</p> Signup and view all the answers

What are the three types of product innovation related to the features inherent in the product and its effect on consumer behavior?

<p>Continuous, dynamically continuous, discontinuous</p> Signup and view all the answers

In continuous innovation, major behavioral changes are required for product adoption.

<p>False</p> Signup and view all the answers

What is the interpretation in the perception process?

<p>Assigning meaning to received sensations</p> Signup and view all the answers

In discontinuous innovation, the adoption of the product requires major _______ changes.

<p>behavioral</p> Signup and view all the answers

Match the classification of adopters with the respective percentages:

<p>Innovators = 2.5% Early adopters = 13.5% Early majority = 34% Late majority = 34% Laggards = 16%</p> Signup and view all the answers

Which group of adopters are younger, more educated, and have a capacity to absorb risk associated with new products?

<p>Innovators</p> Signup and view all the answers

What is the difference between semantic meaning and psychological meaning?

<p>Semantic meaning is the conventional meaning while psychological meaning is the meaning attached by individuals or groups based on their experiences.</p> Signup and view all the answers

According to Robert Plutchik, how many types of basic emotions are there?

<p>Eight</p> Signup and view all the answers

Personality traits are relatively stable characteristics according to trait theory.

<p>True</p> Signup and view all the answers

_____ reflects individual differences and can influence product choices as well as response to promotional efforts.

<p>Personality</p> Signup and view all the answers

Match the parts of Freud's psychoanalytic theory with their descriptions:

<p>Id = Source of basic drives demanding instant gratification Ego = Operates on reality principle and controls impulsive behavior Super Ego = Individual's moral code striving for perfection</p> Signup and view all the answers

What are cues in consumer behavior?

<p>Weak stimuli that provide direction to motivated activity</p> Signup and view all the answers

Reinforcement increases the likelihood of a response to be repeated in the future.

<p>True</p> Signup and view all the answers

What is short-term memory?

<p>Short-term memory is the memory that can be recalled immediately and is activated and in use.</p> Signup and view all the answers

Learning can be done under high involvement or low involvement situations. In a high involvement situation, the consumer is motivated to learn; in a low learning situation, there is no _____ to learn about the product.

<p>motivation</p> Signup and view all the answers

Match the following e-business benefits with their descriptions:

<p>No geographical boundaries, targeting individual clients is less costly = Advantages to the Consumer Quick order execution, faster realization of money, wider product choice = Advantages to the Consumer (Cont.) Standard for navigating, executing transactions, collaborative authoring = World Wide Web (WWW) Problem recognition, information search, evaluation of alternatives = Application to Consumer Behavior</p> Signup and view all the answers

Study Notes

Family Influences

  • Family is a social unit that influences consumer behavior
  • Family members exert reciprocal influence on each other in the decision-making process
  • Three main family influences: father, mother, and other family members
  • Each member has their own motives, beliefs, and predispositions that affect the decision-making process

Family Decision-Making

  • Family decision-making involves the following stages:
    • Problem recognition
    • Search for information
    • Evaluation of alternatives
    • Final decision
  • Family roles in decision-making:
    • Instrumental role: taken by the head of the family for achieving special goals
    • Expressive role: undertaken by the wife and other family members to provide emotional support
  • Important buying roles:
    • Initiator: person who suggests the idea of a product/service
    • Influencer: person who has a direct or indirect influence on the final purchase decision
    • Decider: person who makes the final decision
    • Purchaser: person who buys the product
    • Consumer: person who uses the product

Family Life Cycle Stages

  • Bachelor stage: young and single, no married, no children
  • Newly married couples: young, married, no children
  • Full nest 1: young, married, with children
  • Full nest 2: older, married, with children
  • Full nest 3: older, married, with dependent children
  • Empty nest: older, married, with no children living with them
  • Solitary survivor: older, single, retired people

Personal Influences

  • Personal influences are internal determinants that influence consumption patterns
  • Factors that affect personal influences:
    • Age and life cycle stage
    • Occupation
    • Economic circumstances
    • Lifestyle and pattern of living
    • Personality
    • Self-concept

Addition: Diffusion of Innovation

  • Diffusion is the process by which the acceptance of an innovation/new product is spread through communication to members of a social system over a period of time
  • Innovation is an idea, practice, or product perceived to be new by an individual or group
  • Types of innovation:
    • Firm-oriented
    • Product-oriented
    • Market-oriented
  • Diffusion process:
    • Fast diffusion
    • Typical diffusion
    • Slow diffusion
  • Factors affecting the rate of spread of innovation:
    • Type of group
    • Perceived risk
    • Type of decision
    • Marketing effort
    • Trial
    • Fulfillment of felt need
    • Compatibility
    • Relevant advantage
    • Complexity
    • Observability

Classification of Adopters

  • Innovators (2.5%): venture-some, risk-takers, younger, more educated, and socially mobile
  • Early adopters (13.5%): take calculated risks, opinion leaders, and provide information to groups
  • Early majority (34%): continuous, use products after innovators and early adopters, elders, well-educated, and less socially mobile
  • Late majority (34%): doubtful about innovation, adopt products due to pressure, less educated, and less socially mobile
  • Laggards (16%): traditional, skeptical, and least educated, with lowest social status and income### Information Processing for Consumer Decision-making
  • When a person is exposed to a stimulus, their attention is drawn towards the object, and the nerves transmit the sensation to the brain for processing.
  • Interpretation is the assignment of meaning to the received sensations, which is retained by the memory.
  • This leads to consumption behavior, which may have positive or negative feedback for the individual.

Exposure

  • Exposure occurs when a stimulus comes under the range of sensory receptors, and nerve exposure occurs.
  • Most of the stimuli to which an individual is exposed are self-selected, and we deliberately seek and avoid information of our interest.

Attention

  • Attention occurs when the sensory receptor nerves are activated by the stimulus, and the brain registers sensations for processing.
  • The market offers a variety of goods, and we selectively choose and attend to products and messages.
  • Attention is determined by three factors: stimulus, individual, and situation.

Interpretation

  • The same message can be interpreted in different ways, and it is how we assign meaning to sensations.
  • Interpretation involves a competitive or factual component and an effective or emotional response.

Memory and Misinterpretation of Marketing Messages

  • The marketeer must present messages in a way that they are not misinterpreted, but interpreted accurately.
  • Memory is the storage factor, which could be of long-term or short-term memory.

Perception and Marketing Strategies

  • Marketing strategy consists of directing the 4 Ps (Product, Price, Place, and Promotion) on the target market.
  • The product, its brand name, style, packaging, and other features should be such that a proper image or meaning is perceived by the individual.

Personality

  • Personality is an internal determinant that influences our consumption pattern.
  • Personality may be defined as those inner psychological characteristics that determine and reflect how a person responds to their environment.
  • Personality reflects individual differences and can be categorized into groups based on few traits.

Trait Theory

  • A trait is defined as a predisposition to respond in a particular way.
  • Traits are used to define the behavior of consumers.
  • There are 16 traits given by Raymond Cattell, which can be used to measure the degree of traits possessed by an individual.

The Psychoanalytic Theory of Freud

  • Sigmund Freud proposed that every individual's personality is the product of struggle among three interacting forces: Id, Ego, and Super Ego.
  • The Id is a source of strong, basic, and instinctive drives and urges that demand instant gratification.
  • The Ego operates on a reality principle and seeks to achieve the pleasurable demands of the Id in a realistic way.
  • The Super Ego is the individual's moral code and helps in striving for perfection.

Emotions

  • Emotions control our behavior and are relatively uncontrolled feelings that affect our behavior.
  • Emotions have been categorized into eight types: fear, anger, joy, sadness, acceptance, disgust, expectancy, and surprise.
  • Emotions are mostly associated with behavior and can be used to arouse the interest of the consumer.

Self-Concept

  • Self-concept can be described as how one perceives himself and his behavior in the marketplace.
  • Self-concept is not very realistic because an unconscious component is always present.
  • Self-concept can be divided into six types: actual self, ideal self, social self, ideal social self, expected self, and situational self.

Motivation

  • Motivation plays an important part in making a decision and is an inner feeling that stimulates the action to be taken by an individual.
  • Motivation provides a specific direction or results in a response.
  • Maslow's Theory of Motivation is a macro theory that accounts for most human behavior in general.

McGuire's Psychological Motives

  • McGuire's classification of motives is more specific and used more in marketing.
  • The motives are: need for consistency, need for novelty, need for affiliation, need to categorize, need for self-expression, need for ego defense, need for assertion, need for reinforcement, and need for modelling.

Marketing Strategies Based on Motivation

  • Consumers do not buy products, they buy motive satisfaction or problem solutions.
  • Marketeers try to find the motives for buying and build their products and marketing mixes around these motives.
  • A marketeer tries to find out the motive for buying, how to formulate a strategy to fulfill these motives, and how to reduce conflict between motives.### Motivational Research
  • Motivational research is a method to find out motives by asking indirect questions to elicit information from respondents
  • It involves unstructured disguised interviews or questionnaires to design marketing strategies around appropriate motives

Motivational Conflicts

  • Consumers have multiple motives, leading to conflicts in their minds about which motive to prioritize
  • There are three types of motivational conflicts:
    • Approach-Approach Motivational Conflict: two equally attractive choices
    • Approach-Avoidance Motivational Conflict: positive and negative consequences
    • Avoidance-Avoidance Conflict: two undesirable consequences

Involvement

  • Involvement is the intensity of interest with which consumers approach their dealings in the market place
  • Characteristics of involvement:
    • Related to consumer's values and self-concept
    • Varies in individuals depending on different situations
    • Related to some form of arousal
  • Types of involvement:
    • Routinized Response Behavior or Least Involvement: low-involvement, routine purchases
    • Low Involvement Decision Making: medium-involvement, occasional purchases
    • High Involvement Decision Making: high-involvement, infrequent purchases

Information Processing

  • Consumers process information from various sources to make purchasing decisions
  • The 5 major ways consumers use information:
    • Evaluating products and services
    • Justifying previous product choices
    • Deciding whether to buy or postpone
    • Satisfying needs from available products
    • Serving as a reminder to purchase products
  • Information processing involves 4 stages: stimuli, stages of processing, situation, and executive system

Learning and Memory

  • Learning is a change in the content or organization of long-term memory
  • Types of learned behavior:
    • Physical behavior
    • Symbolic learning and problem solving
    • Affective learning
  • Elements of learning:
    • Purpose or intention
    • Cues
    • Response
    • Reinforcement
  • Factors influencing learning:
    • Importance
    • Reinforcement
    • Repetition
    • Imagery

E-Business and Consumer Behavior

  • E-Business provides benefits such as:
    • No geographical boundaries
    • Targeting individual clients is less costly
    • Fewer middlemen
    • Quicker order execution
    • Faster realization of money
    • Greater customer choice
  • Advantages of e-business to consumers:
    • Convenience
    • Low prices
    • Good quality
    • Proper service
  • Applications of e-business:
    • Interorganisational (business to business)
    • Intraorganisational (within a business)
    • Business to customer (B2C)
  • The World Wide Web (WWW) is a standard for navigating, publishing information, and executing transactions
  • E-Business provides consumers with more information and alternatives to solve problems, influencing their decision-making process

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This quiz explores the role of family in shaping consumer behavior, including the family life cycle and personal influences on buying decisions.

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