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    Social Factors Affecting Consumer Behaviour: Reference Groups

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    Tobalynti
    Social factors greatly influence consumer buying decisions. Primary reference groups like family, friends, and coworkers have the most direct influence as they provide recommendations and share their experiences with products. An individual's decisions also depend on their role and status in society. For example, a married person with children will prioritize purchases for their family over personal items, and higher income individuals tend to buy more luxury goods compared to lower income individuals focused on necessities.

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    Social Factors Affecting Consumer Behaviour: Reference Groups

    Uploaded by

    Tobalynti
    36 views2 pages
    Social factors greatly influence consumer buying decisions. Primary reference groups like family, friends, and coworkers have the most direct influence as they provide recommendations and share their experiences with products. An individual's decisions also depend on their role and status in society. For example, a married person with children will prioritize purchases for their family over personal items, and higher income individuals tend to buy more luxury goods compared to lower income individuals focused on necessities.

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    Social factors of Con Beh

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    Social factors greatly influence consumer buying decisions. Primary reference groups like family, friends, and coworkers have the most direct influence as they provide recommendations and share their experiences with products. An individual's decisions also depend on their role and status in society. For example, a married person with children will prioritize purchases for their family over personal items, and higher income individuals tend to buy more luxury goods compared to lower income individuals focused on necessities.

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    © All Rights Reserved
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    36 views2 pages

    Social Factors Affecting Consumer Behaviour: Reference Groups

    Uploaded by

    Tobalynti
    Social factors greatly influence consumer buying decisions. Primary reference groups like family, friends, and coworkers have the most direct influence as they provide recommendations and share their experiences with products. An individual's decisions also depend on their role and status in society. For example, a married person with children will prioritize purchases for their family over personal items, and higher income individuals tend to buy more luxury goods compared to lower income individuals focused on necessities.

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    Social Factors affecting Consumer

    Behaviour
    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:

     Reference Groups
     Immediate Family Members
     Relatives
     Role in the Society
     Status in the society

    1. Reference Groups
    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:

    a. Primary Group - consists of individuals one interacts with on a regular basis.

    Primary groups include:

     Friends
     Family Members
     Relatives
     Co Workers

    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:

     Bachelorhood: Purchases Alcohol, Beer, Bike, Mobile Handsets (Spends


    Lavishly)
     Newly Married: Tend to purchase a new house, car, household furnishings.
    (Spends sensibly)
     Family with Children: Purchases products to secure his as well as his
    family’s future.
     Empty nest (Children getting married)/Retirement/Old Age: Medicines,
    Health Products, and Necessary Items.

    A Ford Car in the neighbourhood would prompt three more families to buy the same
    model.

    b. Secondary Groups - Secondary groups share indirect relationship with the


    consumer. These groups are more formal and individuals do not interact with them on
    a regular basis, Example - Religious Associations, Political Parties, Clubs etc.
    2. Role in the Society
    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.

    3. Social Status
    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.

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