UNIT-3

ENVIRONMENTAL DETERMINANTS OF CONSUMER BEHAVIOUR

Determnants of Consumer Behaviour

In a general scenario, we’ve got five main factors that determine consumer behavior, i.e these
factors regulate if a target customer purchases a product or not. These factors are namely
Psychological, Social, Cultural, Personal, and Economic factors.

. Psychological Factors

Interestingly, human psychology is actually an integral factor that influences consumer behavior
although these factors aren’t exactly easy to measure. A few integral psychological factors
driving the behavior of consumers are :

Motivation

Motivation actually becomes a considerable defining factor influencing a person’s buying

behavior. A popular motivation theory is Maslow's theory of hierarchy of needs in which he
developed a model that lays the foundation for 5 different levels of human needs where he lays
the base with psychological needs and moves on to safety needs, social needs, esteem needs and
finally heading to self-actualization needs. Amongst these requirements, our basic requirements
and security needs are generally put above all needs.

Perception
Our perception is shaped when we gather information regarding a product and examine it to
generate a relevant image regarding a certain product.

Whenever we see an advertisement, review, feedback or promotion regarding a product, we form

an image of that item. As a result, our perception plays an integral role in shaping our purchasing
decisions.
Learning
Every time we purchase a product we get a deeper knowledge about it through experience. This
learning mainly depends on our experience, knowledge, and skills.
This learning can either be cognitive or conditional. While in cognitive learning, we use our
knowledge for finding satisfaction and fulfilling his needs with the item we purchase, conditional
learning is where we get constantly exposed to a situation, enabling us to respond towards it.

For instance, we all seek resources through nonexperiential learning as we read reviews for
books and products on platforms like Amazon, learn about film reviews through platforms like
Rotten Tomatoes, and explore restaurants through Yelp.

Attitudes and Beliefs

We’ve all got certain attitudes or beliefs that consciously or subconsciously prompt our
purchasing decisions. For instance, while your friend who believes caffeine is adverse for one’s
health may prefer tea, you who believe that caffeine energizes us, may prefer coffee. Our attitude
and what we believe influence our behavior towards a product and also play a key role in
shaping the product’s brand image. So understanding a consumer’s attitude and belief becomes
useful for marketers to design their marketing campaigns.

2. Social Factors
We are all social animals so of course our purchasing decisions are impacted to some extent by
the people around. We are constantly working on imitating other human beings, longing to fit in
our surroundings. As a result social factors influence our buying behavior regarding items. Some
of these factors include:

 FAMILY
Our families actually have a considerable role to play in impacting our purchasing behavior. We
form an inclination or aversion towards certain products from our childhood by observing our
families use that product and persist in using those products as we grow up.

For instance, if our family members are fond of Papa Jones, we would subconsciously end up
choosing Papa Jones over say, Pizza Hut or Domino’s.

Family Influence on Consumer Behaviour

Family Meaning
The concept of family influence on consumer behaviour encompasses a range of consumers
(family members) with different purchasing needs and desires. Therefore, the differences among
different family members influence the range of buying decisions. In the decision
making process, some consumers of small age make their presence felt among the other
customers.

Family Decision Making

Family decision making is the process of deciding on matters that have an impact on one or more
family members, either directly or indirectly. The decisions taken by the family as a group are
different from those taken by an individual. For example, the family collectively choosing the
breakfast cereal options for each member is a family decision.

Family life cycle parameters

It was in the 1960s when Wells and Gruber (1966) came up with the concept of family
segmentation which they named a family life cycle. The family life cycle is used for
targeting and positioning consumers since it is mainly concerned with the different phases
and generations that a typical family passes through.
Formally the family life cycle can be defined as the series of stages typically through which
most of the family progresses, with different characteristics of the stages (Fingerman, Smith
and Berg, 2011). These characteristics are related to their demographics such as:
 marital status
 size of the family
 age of the family members
  employment status of the head of the family
 income level
 disposable income.
Family life cycle stages
The family life cycle can be conceptualized as the progression that involves various stages.
Different authors have segregated it into different stages. For this article, the most
comprehensive one has been chosen which is as follows.

Stage 1: Bachelor stage

At this stage of the life cycle, people are young and their earnings are relatively low since
most of the bachelors are just beginning their careers. They have few financial
responsibilities and thus tend to have relatively high discretionary incomes. People in this
stage are characterized as being more interested in appearance. Therefore they tend to spend
more on fashionable items such as clothing and electronic gadgets. Impulsive and premium
buying is a common characteristic of this group. This group also tends to spend more on
food, entertainment and vacations.

Stage 2: Newly married couple

With marriage comes responsibilities, therefore the requirement for resources changes. This
group can be considered to be in a better financial position due to the absence of children.
One of the major characteristics of this stage is that people in this stage tend to have the
highest purchase rate, particularly for consumer durables. Their purchases tend to include
refrigerators, television, stereos, sensible and durable furniture, and vacations. Furthermore,
they may also start investing to build reserves for their future. Thus the marketers of such
goods and financial services tend to target them (Wells and Gubar, 2007).

Stage 3: Full nest 1 (Young married, with child)

When the first child is born, the full nest 1 stage begins. The arrival of a child brings major
changes in a family’s consumption pattern. At this stage, money is majorly directed towards
buying baby furniture, toys, medicines, vitamins, baby food, and baby clothing. Furthermore,
the increased family size may necessitate more space which requires the family to move into
a bigger home. New parents explore baby products extensively before purchasing, therefore
advertising helps them. In addition to this, in many cases, the mother may need to quit her
job, which can cause a significant reduction in family income. This leads to a sense of
dissatisfaction in the couple with their financial position and decreased disposable income
(Raj and Chandrasekar, 2013).

Stage 4: Full nest 2 (older, married, with children)

In this stage of the family life cycle, the family’s financial position tends to start improving,
possibly due to advancement in careers. With this improved financial positioning, families
still tend to remain new product-oriented but are now less influenced by advertisements since
they have more buying experience. In this stage, the families tend to buy more food items,
children’s clothing, bicycles for the children, sports equipment for them, and so on.
Furthermore, at this stage, the children start going to school so expenses in terms of their
school fees, books, and stationary increase. The families also start saving for the future
education of their children (Barnhill, 2011).

Stage 5: Full nest 3 (older, married with dependent children)

In this stage, the family income continues to grow and their financial position becomes more
stable. This type of family has a high expenditure on consumer durables, mainly because
there is a need to replace older items. However, they are more resistant to advertisements
since they have become more experienced buyers now and are harder to entice. This group
tends to buy items such as tasteful furniture, automobiles, non-necessary appliances,
magazines, dental services, and luxury items (Plagnol and Easterlin, 2008).

Stage 6: Empty nest (older, married, with no dependent children)

At this stage of the family cycle, children are no longer living with their parents. Thus with
no burden of child-related expenses, the family’s financial position stabilizes and their
savings tend to accumulate. The couple is now free to purpose their wants and desires and
thus hobbies become an important source of satisfaction for them. More is now spent on
luxury, self-improvement items, medical care, and health products. Furthermore, expenses
are done on homeownership and home improvement (William, 2018).

Stage 7: Solitary survivor

This stage of the family life cycle involves retired people living alone after the death of their
partner. Thus, their life tends to become lonely and their income reduces significantly due to
retirement. This tends to bring drastic changes in their consumption pattern and living style.
Healthcare services become an important factor in their life.
Use of life cycle for marketers
The stages at which families are tends to have a strong impact on the type of goods and
services they want and what is their consumption pattern along with the volume of
consumption of the specific product. As shown in the above section each stage has its own
specific and unique needs, and have a different pattern in which they accumulate their
objects and demands that are placed due to different family size. Thus family life cycle can
be indicated as the better predictor of the consumption pattern. Identifying the family life
cycle stage correctly helps marketers develop appropriate products and services that can meet
specific needs at each family stage. It also helps them design specific promotional strategies
that meet the needs of the specific target audience.

 REFERENCE GROUPS
Reference groups are basically groups of people with whom we associate ourselves. These
include clubs, schools, professional or playgroups, churches, and even acquaintances or a group
of friends, etc. The people in the reference groups normally have a common pattern of
purchasing and an opinion leader who influences them in terms of their buying behavior.
 Reference groups are groups (social groups, work groups, family, or close friends) a
consumer identifies with and may want to join. They influence consumers' attitudes and
behavior. A reference group helps shape a person's attitudes and behaviours. Opinion leaders are
people who influence others.

Functions of Reference Groups

 Reference groups provide individuals with a basis for reference and evaluation of their
attitudes and beliefs.
 Setting a benchmark of measure allows people to determine their self-identity and their
conduct in a social environment.
 Additionally, they act as a source of inspiration or aspirations for people to live up to and
work towards.
 Reference groups also help shape our values in terms of what we think is right or wrong.
This distinction is made when we decide which values we want to emulate and which
ones we want to reject.
 Finally, they allow us to immerse ourselves in a new environment by providing us with a
standard to follow so that we may fit in better.

Types of Reference Groups

Harold Kelley (1952) recognised two distinct types of reference groups based on the functions
that they perform –

1. NormativeReferenceGroups – Normative reference groups serve as a source of an

individual’s norms, values and attitudes. These are groups that people look up to so that they
may understand how to conduct themselves in any given environment. For example, a new
employee in an organisation will look to older employees to understand what the acceptable code
of conduct is in that organisation.
2. Comparative Reference Groups –
Comparative reference groups are those which individuals use as a standard against which they
compare themselves during the process of self-appraisal. For example, in a football team, junior
players may compare themselves to their more experienced counterparts in terms of skill,
technique and performance.

3. Aspiration Group

It is the group of individuals who would like to be connected and want to be identified through
them. For instance, people might be influenced and aspire to join the elite businesses with
membership requirements. They might want to get their names associated with groups like a
country club, yacht club, an expensive community, etc. If the owners know the appropriate
reference groups of companies, their brands can be spoken for by reaching for a well-known
person in the aspiration groups.

4. Dissociative Group
As the name suggests, the people want themselves to be detached from this group.These groups
influence the behavior, attitude, and values that are not considered consistent in the eyes of the
masses. So, getting away from such groups seems better for people.

5. Membership Group

These groups require the individuals to be the members in groups here and now. They include
groups like social clubs or groups, fraternities, etc.Some groups are less public, like religious
organizations, families, country clubs, etc. These groups and the aspiration groups can prove to
help promote and market luxury products.

Characteristics of Reference Groups

1. Reference groups set ideals of behaviour and attitudes, values and ideologies for those
who refer to them.
2. They are not organised groups of people who consciously or deliberately stand to
represent specific social values. Instead, they may be understood as conceptual groups
because they are non-membership groups.
3. In order to become a member of a reference group, individuals must adopt the lifestyle
and values of the group. For example, immigrants in Western countries learn to
incorporate Western culture into their own lifestyle so that they can cultivate a sense of
acceptance and belonging.
4. An individual’s reference group is in a constant state of flux. As we enter into novel
social environments or new phases of life, we change the reference groups that we look
up to for self-appraisal.
Importance
 Thus, reference groups become sources of an individual’s understanding of self-identity
and cognition and perception.
 Furthermore, they allow individuals to evaluate their conduct and performance in any
given social or professional situation.
 Reference group behaviour exists in complex societies such as ours that pride themselves
in their capitalist and industrialised fabric. In such communities, studying reference group
behaviour may be a means to understanding social relationships and attitudes.

 ROLES AND STATUS

We are all of course influenced by the role that we hold in society. The higher position we hold,
the more our status affects what and how much we purchase. For instance, the CEO of a
company and a normal employee would have a varied buying pattern.

3. CULTURAL FACTORS
We all have our values and ideologies that are shaped by the values and ideologies of the society
we exist in and the community we belong to. Our behavior is consciously or subconsciously
driven by the culture followed by that particular community.

For instance, let’s take the example of McDonald's India

 India has a massive consumer base with McDonald’s has adjusted its menu to match the tastes
and preferences of the local community in whose vicinity it resides. For instance, on account of
cows being sacred and widely worshipped in India, chicken has been put in place of beef. The
fast-food corporation introduced McCurry Pan in India, a baked menu item consisting of curried
vegetables.

A few significant cultural factors include :

 Culture
Our cultural factors are basically basic requirements, values, wants behaviors, and preferences
that are observed and absorbed by us from our close family members as well as other significant
people around us.

 Subculture
Amongst a cultural group, we have several subcultures. These groups share a common set of
values and beliefs. They can consist of people from varied nationalities, religions, caste, and
geographies. An entire customer segment is formed by this customer segment.

We’ve taken an easy example of Burger King here. In their advertising strategy, the platform
wished its “Ramadan Kareem” implying to have a generous Ramadan.

Burger King has adapted to the Muslim culture and created its advertisement in Ramadan style
by showing a mostly eaten burger, presented in the shape of a crescent moon.

The Cultural Factors are the factors that an individual learns at a very early stage of life
due to socialization within the family and other key institutions, such as the set of values,
preferences, behavior patterns, and perceptions are learned as the individual grows.

Some of the important cultural factors are:

Culture: The culture refers to the beliefs, customs, rituals and practice that a particular group of
people follows. As a child grows, he inculcates the buying and decision-making patterns through
his family and the key institutions. The culture varies from region to region and even from
country to country. Such as the sale of “sarees” and “Lungis” is more in South than the North
India. Therefore, the marketer should carefully study all the different cultures and frame the
marketing strategies accordingly.

1. Subculture: The culture can be further divided into subculture wherein the people are classified
more specifically on the basis of their shared customs and beliefs, including religions,
geographic regions, nationalities, etc. The different sub-cultures forms several market segments
whose needs can be carefully studied by the marketer, and the strategic marketing decisions can
be taken accordingly. Such as the needs of the people living in metro cities and the ones living in
B-grade cities must be identified before the launch of the marketing campaign.
2. Social Class: The social class to which an individual belongs influences the buying decision.
Generally, the people belonging to the same class are said to be sharing the similar interest, value
and the behavior. Our society is classified into three social classes upper class, middle class, and
the lower class. The consumers belonging to these classes possess different buying behaviors.
Such as an individual belonging to the upper class buy those products or services that advocate
his status while the lower class people buy those products which satisfy their basic needs.

 Social Class
Each society all over the globe is defined and known by some form of social class. This social
class is determined collectively by our family backgrounds, occupation, education, and residence
location. Our social class is another component holding the reins for consumer behavior.

4. Personal Factors

Alongside social, psychological, and cultural factors, we all have factors that are personal to us
that influence our choices. These factors vary from person to person, introducing varied
perceptions and behavior.

Some of these personal factors include:

 Age
Age is one of the primary factors that impact our preferences. The vibrant and flashy purchasing
choices of a teenager would obviously differ from what an elderly person purchases. Meanwhile,
we have middle-aged people who are naturally more focused on purchasing properties, houses,
or vehicles.
 Income
Our income definitely impacts our purchasing behavior. The higher our income, the more
purchasing power we hold and vice versa. Higher disposable income compels us to spend more
on luxurious items while a lower or mediocre income makes us spend more on our basic needs
like education, groceries, and clothing.

 Occupation
Our occupation largely steers our purchasing decision making. We all tend to purchase the items
that are relevant or suitable for our profession. For instance, a businessman would have a
different clothes purchasing pattern in comparison to an artist.

 Lifestyle
Our way of life is one of the most powerful influencers that controls our choices. Our lifestyle
dominates our buying behavior quite significantly. Suppose we are on a diet then the products we
purchase will also complement our diet, from food, weighing scale to using protein.

For instance, Oprah Winfrey’s brand has been developed to charm women that are
socially conscious seekers, readers, idealists, self-helpers, working women, who work towards
achieving balance and self-fulfillment.
5. Economic Factors

The purchasing quirks and decisions of the consumer largely rely upon the market or nation’s
economic circumstances. The more that a nation is prosperous and its economy stable, the larger
will be the money supply of the market and the consumer’s purchasing power.

A strong, healthy economy brings purchasing confidence while a weak economy reveals a
strained market, marked by a weakened purchasing power and unemployment.

Some significant economic factors include:

 Personal Income:
Our personal income is the criteria that dictate the level of money we will spend on buying goods
or services. There are primarily two kinds of personal incomes that a consumer has namely
disposable income and discretionary income.

Our disposable income is mainly the income that remains in hand after removing all necessary
payments such as taxes. The greater the disposable personal income the greater would be the
expenditure on several products, and the same would be the case when it is the other way round.
 Family Income:
Our family income is actually an aggregate of the sum total of the income of all our family
members. This income also plays a considerable role in driving consumer behavior. The income
that remains after meeting all the basic life necessities is what is then used for buying various
goods, branded items, luxuries, durables, etc.

 Income Expectations:
It's not just our personal and family income that impacts our buying behavior, our future income
expectations also have a role to play. For instance, if we expect our income to rise in the future,
we would naturally spend a greater amount of money in purchasing items. And of course, in case
we expect our income to take a plunge in the near future, it would have a negative influence on
our expenditure.
Consumer Credit:
The credit facilities at our behest also impact our purchasing behavior. This credit is normally
provided by sellers, either directly or indirectly via banks or financial institutions. If we have
flexible credit terms as well as accessible EMI schemes, our expenditure on items is likely to
increase and in less flexible credit terms would result in the opposite.

 Liquid Assets:
Even the liquid assets we’ve maintained influence our purchasing behavior. In case you are
wondering, these are the assets that get promptly converted into cash such as stocks, mutual
funds, our savings or current accounts. If we have more liquid assets, there is a greater likelihood
of us spending more on luxuries and shopping items. Lesser liquid assets meanwhile result in
lesser expenditure on these items.
  Savings:
The savings generated from our personal income are also regulating our buying behavior. For
instance, if we take the decision of saving more from our income for a certain period of time, our
expenditure on goods and services would be lesser and for that period and if we wish to save
less, our expenditure on such items would increase.

Family life cycle stages

The concept of the family life cycle has gained popularity in the last few decades due to its
relevance in the consumer decision-making process . For example, as a person grows older,
his buying choices depend less on his own needs and more on his family’s collectively.
Marketers by understanding the stage of a person in the family life cycle can anticipate their
needs and can shape marketing strategies according to them. Furthermore, as stated by
William (2018), the family life cycle model helps to profile the consumer, using which the
businesses can determine which set of audiences they should appeal to.
Family life cycle parameters
It was in the 1960s when Wells and Gruber (1966) came up with the concept of family
segmentation which they named a family life cycle. The family life cycle is used for
targeting and positioning consumers since it is mainly concerned with the different phases
and generations that a typical family passes through.
Formally the family life cycle can be defined as the series of stages typically through which
most of the family progresses, with different characteristics of the stages (Fingerman, Smith
and Berg, 2011). These characteristics are related to their demographics such as:

 marital status

 size of the family

 age of the family members

 employment status of the head of the family

 income level

 disposable income.

Family life cycle stages

The family life cycle can be conceptualized as the progression that involves various stages.
Different authors have segregated it into different stages. For this article, the most
comprehensive one has been chosen which is as follows.
 Figure 1: Family
life cycle stages (Evans, Jamal and Foxall, 2006)

Stage 1: Bachelor stage

At this stage of the life cycle, people are young and their earnings are relatively low since
most of the bachelors are just beginning their careers. They have few financial
responsibilities and thus tend to have relatively high discretionary incomes. People in this
stage are characterized as being more interested in appearance. Therefore they tend to spend
more on fashionable items such as clothing and electronic gadgets. Impulsive and premium
buying is a common characteristic of this group. This group also tends to spend more on
food, entertainment and vacations.

Stage 2: Newly married couple

With marriage comes responsibilities, therefore the requirement for resources changes. This
group can be considered to be in a better financial position due to the absence of children.
One of the major characteristics of this stage is that people in this stage tend to have the
highest purchase rate, particularly for consumer durables. Their purchases tend to include
refrigerators, television, stereos, sensible and durable furniture, and vacations. Furthermore,
they may also start investing to build reserves for their future. Thus the marketers of such
goods and financial services tend to target them (Wells and Gubar, 2007).

Stage 3: Full nest 1 (Young married, with child)

When the first child is born, the full nest 1 stage begins. The arrival of a child brings major
changes in a family’s consumption pattern. At this stage, money is majorly directed towards
buying baby furniture, toys, medicines, vitamins, baby food, and baby clothing. Furthermore,
the increased family size may necessitate more space which requires the family to move into
a bigger home. New parents explore baby products extensively before purchasing, therefore
advertising helps them. In addition to this, in many cases, the mother may need to quit her
job, which can cause a significant reduction in family income. This leads to a sense of
dissatisfaction in the couple with their financial position and decreased disposable income
(Raj and Chandrasekar, 2013).

Stage 4: Full nest 2 (older, married, with children)

In this stage of the family life cycle, the family’s financial position tends to start improving,
possibly due to advancement in careers. With this improved financial positioning, families
still tend to remain new product-oriented but are now less influenced by advertisements since
they have more buying experience. In this stage, the families tend to buy more food items,
children’s clothing, bicycles for the children, sports equipment for them, and so on.
Furthermore, at this stage, the children start going to school so expenses in terms of their
school fees, books, and stationary increase. The families also start saving for the future
education of their children (Barnhill, 2011).

Stage 5: Full nest 3 (older, married with dependent children)

In this stage, the family income continues to grow and their financial position becomes more
stable. This type of family has a high expenditure on consumer durables, mainly because
there is a need to replace older items. However, they are more resistant to advertisements
since they have become more experienced buyers now and are harder to entice. This group
tends to buy items such as tasteful furniture, automobiles, non-necessary appliances,
magazines, dental services, and luxury items (Plagnol and Easterlin, 2008).

Stage 6: Empty nest (older, married, with no dependent children)

At this stage of the family cycle, children are no longer living with their parents. Thus with
no burden of child-related expenses, the family’s financial position stabilizes and their
savings tend to accumulate. The couple is now free to purpose their wants and desires and
thus hobbies become an important source of satisfaction for them. More is now spent on
luxury, self-improvement items, medical care, and health products. Furthermore, expenses
are done on homeownership and home improvement (William, 2018).

Stage 7: Solitary survivor

This stage of the family life cycle involves retired people living alone after the death of their
partner. Thus, their life tends to become lonely and their income reduces significantly due to
retirement. This tends to bring drastic changes in their consumption pattern and living style.
Healthcare services become an important factor in their life.
Use of life cycle for marketers
The stages at which families are tends to have a strong impact on the type of goods and
services they want and what is their consumption pattern along with the volume of
consumption of the specific product. As shown in the above section each stage has its own
specific and unique needs, and have a different pattern in which they accumulate their
objects and demands that are placed due to different family size. Thus family life cycle can
be indicated as the better predictor of the consumption pattern. Identifying the family life
cycle stage correctly helps marketers develop appropriate products and services that can meet
specific needs at each family stage. It also helps them design specific promotional strategies
that meet the needs of the specific target audience.
Occupation and economic circumstances in consumer behaviour
Conversely, lower-income and middle-income consumers spend most of their income on
basic needs such as groceries and clothing. Your occupation is also a significant factor in your
buying behavior because you tend to purchase things that are appropriate to your profession.

Occupation of a consumer influences the buying behavior. A person tends to buy things
that are appropriate to this/her profession. For example, a doctor would buy clothes according to
this profession while a professor will have different buying pattern.

Personal Factors affecting Consumer Behaviour

Consumer Behaviour helps us understand the buying tendencies and spending patterns of
consumers. Not all individuals would prefer to buy similar products.

Consumer behaviour deals with as to why and why not an individual purchases particular
products and services.

Personal Factors play an important role in affecting consumer buying behaviour.

1. Occupation

The occupation of an individual plays a significant role in influencing his/her buying

decision. An individual’s nature of job has a direct influence on the products and brands
he picks for himself/herself.

1. An individual’s designation and his nature of work influence his buying decisions. You
would never find a low level worker purchasing business suits, ties for himself. An
individual working on the shop floor can’t afford to wear premium brands everyday to
work.

College goers and students would prefer casuals as compared to professionals who would
be more interested in buying formal shirts and trousers.

2. Age

Age and human lifecycle also influence the buying behaviour of consumers.
Teenagers would be more interested in buying bright and loud colours as compared to a
middle aged or elderly individual who would prefer decent and subtle designs.

A bachelor would prefer spending lavishly on items like beer, bikes, music, clothes,
parties, clubs and so on. A young single would hardly be interested in buying a house,
property, insurance policies, gold etc. An individual who has a family, on the other hand
would be more interested in buying something which would benefit his family and make
their future secure.
 3. Economic Condition

The buying tendency of an individual is directly proportional to his income/earnings

per month. How much an individual brings home decides how much he spends and on
which products?

Individuals with high income would buy expensive and premium products as compared
to individuals from middle and lower income group who would spend mostly on
necessary items. You would hardly find an individual from a low income group spending
money on designer clothes and watches. He would be more interested in buying grocery
items or products necessary for his survival.

4. Lifestyle

Lifestyle, a term proposed by Austrian psychologist Alfred Adler in 1929, refers to the
way an individual stays in the society. It is really important for some people to wear
branded clothes whereas some individuals are really not brand conscious. An individual
staying in a posh locality needs to maintain his status and image. An individual’s lifestyle
is something to do with his style, attitude, perception, his social relations and immediate
surroundings.

5. Personality

An individual’s personality also affects his buying behaviour. Every individual has
his/her own characteristic personality traits which reflect in his/her buying behaviour. A
fitness freak would always look for fitness equipments whereas a music lover would
happily spend on musical instruments, CDs, concerts, musical shows etc.

Consumer Socialization

Consumer socialization refers to the process by which individuals learn to become

consumers. It is a critical aspect of modern society, as it helps individuals understand how to
navigate the marketplace and make purchasing decisions. The stages of consumer socialization
are essential to understand because they provide insight into consumers' purchasing decisions
and how marketers can influence them.

Consumer socialization refers to how individuals acquire the attitudes, values, and
behaviors associated with being a consumer. This process starts early and continues throughout
an individual's life. Individuals learn how to make purchasing decisions, evaluate products and
services, and interact with marketers and retailers through consumer socialization. The stages of
consumer socialization are a series of phases an individual goes through as they develop into a
consumer.
Stages of Consumer Socialization

Childhood Stage

The childhood stage of consumer socialization begins when a child becomes aware of the
marketplace. This stage is characterized by observation and imitation, as children watch their
parents and other adults engage in consumer behavior. During this stage, children learn about
money and the value of goods and services. They also begin to develop preferences for specific
brands and products. Marketers can influence this stage of consumer socialization by targeting
advertisements for children and promoting their products as desirable. Parents and family
members play a significant role in shaping children's attitudes toward consumerism during this
stage. They teach children to make purchasing decisions, evaluate products and services, and
interact with marketers and retailers. Children also learn about the importance of money and how
to save and spend it wisely.

Adolescent Stage

The adolescent stage of consumer socialization is marked by increased independence and

decision-making. During this stage, adolescents assert their identities and make purchasing
decisions based on personal preferences. They also develop more sophisticated criteria for
evaluating products, such as quality, price, and social status. Marketers can influence this stage
of consumer socialization by targeting advertisements at adolescents and promoting their
products to express individuality and social status.
Early Adulthood Stage

The early adulthood stage of consumer socialization is characterized by increased

financial independence and the establishment of personal lifestyles. During this stage,
individuals make purchasing decisions based on their own needs and want, as well as their values
and beliefs. They also develop brand loyalties and establish long-term relationships with certain
products and brands.

Marketers can influence this stage of consumer socialization by targeting advertisements

for young adults and promoting their products to express personal identity and lifestyle. During
this stage, individuals develop their identities and become more independent. They start to make
their own purchasing decisions and have their preferences for brands and products. Peer
influence becomes a significant factor in shaping consumer behavior during this stage.
Adolescents are more likely to purchase based on what their friends are buying rather than what
their parents or family members recommend.

Middle Adulthood Stage

The middle adulthood stage of consumer socialization is marked by increased stability

and security. During this stage, individuals focus more on maintaining their current lifestyles and
meeting their basic needs. They also tend to be more brand loyal and resistant to change.
Marketers can influence this stage of consumer socialization by targeting advertisements for
middle-aged adults and promoting their products as a way to maintain a comfortable lifestyle.

Late Adulthood Stage

A focus on health and longevity characterizes the late adulthood stage of consumer
socialization. During this stage, individuals prioritize products and services that support their
physical and emotional well-being. They also tend to be more skeptical of advertising and more
discerning in purchasing decisions.

Marketers can influence this stage of consumer socialization by targeting advertisements

for older adults and promoting their products as a way to maintain health and well-being. During
this stage, individuals typically retire and have more free time and disposable income. They may
become more interested in luxury products and experiences like travel and fine dining.
Factors Influencing Consumer Socialization-They include the consumer's age, sex, gender, social
class, and religious affiliation, in addition to their social and economic standing.

Introducing Agents

They include people like parents, siblings, brothers, classmates, instructors, and the
media who have an immediate impact on the customer. While watching TV stimulates
consumption for emotional reasons, the family is crucial in educating about consumption's
logical components.

Two different learning processes contribute to consumer socialization. One is imitating

others by paying attention to what family members do. Most people's early life experiences have
a lasting impact on them. Hence, brand loyalty is passed down from parents to children, and
preferred brands may endure for twelve years. Operant conditioning is the second form of
learning. This suggests that a youngster is likelier to repeat consumption behaviors that are
praised and complemented than those that are mocked or have a lower likelihood of negative
consequences.

Consumer socialization happens in subtle, sometimes hidden ways. There are four main ways
that a person inside a family might be exposed to familial influences −

 On several instances when the child consumes, the parents serve as examples for them.
Without the parents' knowledge or an intentional attempt to educate, the youngster picks up
new skills via observation.
 Parents and children talk about specific goods or brands, benefits, and drawbacks.
 When youngster gets older, they start dealing with money. As a result, the family offers
chances for a youngster to get additional experience as a consumer through presents and
allowances.
Conclusion

Consumer socialization is a lifelong process that starts in infancy and continues throughout an
individual's life. The stages of consumer socialization are a series of phases an individual goes through as
they develop into a consumer. Parents, family members, peers, and marketing messages all significantly
shape consumer behavior at each stage. By understanding the different stages of consumer socialization,
marketers can create more effective advertising messages and better understand their target audience.

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