Shift from Micro to Macro View: Understanding how larger social contexts influence individual consumer behavior.
Social Pressures: Influences can come from:
Society at large
Family and friends
Media platforms
Marketers themselves
Consumer Socialization
Definition: The process through which individuals learn to become consumers.
Influential Factors:
Family dynamics, including parental guidance and peer influences.
Learning about the value of money, decision-making regarding purchases, consumer behavior norms, and the distinction between saving and spending.
Parental Influence
Parents instill norms regarding acceptable products and behaviors concerning consumption.
Tendency for children to subconsciously emulate parental purchasing behavior through a phenomenon known as parental heuristic.
U.S. children typically learn consumerist behaviors at a younger age compared to other nations.
Normative vs. Informational Influence
Normative Influence: Driven by social norms that dictate acceptable behavior.
Conformity: The inclination to align behavior with that of peers.
Brand Choice Congruence: Consumers prefer brands that are positively perceived within their social circles.
Informational Influence: External entities provide data that shapes consumer decisions.
Valence Influence
Definition: The consumer's assessment of information as either positive or negative.
Word-of-Mouth (WOM): Information shared among consumers:
Consumers often spread negative experiences more frequently than positive ones, contributing to a higher influence.
Marketers must take negative WOM seriously, as it can significantly affect brand perception.
The relevance of WOM is amplified on social media platforms.
Factors that enhance virality include: Novelty, Curiosity, and Emotion.
Reacting to WOM
Marketers should proactively manage WOM through strategic communication strategies, whether paid or unpaid, including public relations efforts.
Marketers Spending on Social Influence
Increase in annual budgets allocated to social media influencers rather than traditional celebrity endorsements.
Social Influence - Definitions
Reference Group: A group with which a consumer identifies or compares themselves.
Associative Group: Groups to which an individual belongs.
Dissociative Group: Groups an individual chooses not to affiliate with.
Aspirational Group: Groups that individuals aspire to join but do not currently belong to.
Opinion Leader: Individuals who influence a reference group through the provision of information and opinions.
Compliance: The action of agreeing to requests, differing from normative influence which lacks explicit direction.
Reactance: An oppositional behavior to directives, e.g., a hard sell approach that may result in consumer resistance.
Case Study: Dunkin Donuts
Exploration of marketing strategies involving nano-influencers (less than 10K followers) who possess high credibility despite limited reach.
Social Influence - Case Study: Fisker Auto
Notable instance of consumer reaction via social media when a popular tech reviewer rejected a car model, impacting the brand severely. Demonstrates the importance of brand reputation management in the face of negative reviews.
Consumer Diversity
Disclaimer: General stereotypes may or may not apply to individuals.
Stereotypes: Often oversimplified societal images that can influence consumer behavior.
APC Diversity: Represents Age (biological), Period (historical), and Cohort (groups within the same age range) leading to similar behavioral patterns.
Understanding generational influences is critical for marketers.
Generational Overviews
Silent Generation (Age 80-95): Value hard work and saving due to experiences during the Great Depression and WWII.
Baby Boomers (Age 60-80): Focused on results and individual achievements; have accumulated significant wealth.
Gen X (Age 45-60): Skeptical of institutions and place importance on financial security; highest spending power.
Millennials (Age 30-45): Tech-savvy, emphasize experiences over possessions, prioritize social responsibility.
Gen Z (Age 15-30): Digital natives who are entrepreneurial and have heightened concerns about social equity and environmental issues.
Gen Alpha (Age <15): Anticipated to be globally aware, tech-savvy, and possibly entrepreneurial due to diverse influences.
Comparison of Generational Consumer Behavior
Marketers must understand psychographic differences across generations, as consumer behavior is continually evolving.
Gender & Consumer Behavior
Recognizes that purchasing habits differ significantly by gender:
Women engage more in high-effort decision-making.
Higher brand loyalty seen in men, while women may exhibit individual loyalty.