Consumer Behavior Notes - MRKT 3000

Consumer Behavior Notes - MRKT 3000

• Key Considerations: Understanding cultural issues influencing consumer attitudes and behaviors.

  • Social Influences:

  • Parental Influence: How parental decisions influence consumer choices.

  • Normative Influence: Social norms shaping behavior.

  • Informational Influence: Information provided by peers or influencers.

  • Valence: Positive or negative influences on consumer attitudes.

  • Reference Groups: Groups individuals identify with that influence their purchasing decisions.

  • Social Media Influencers: Impact of online personalities on consumer behavior.

  • Consumer Diversity:

  • Variations in consumer behavior according to generational, gender, ethnic, and religious lines.

  • Understanding how sex and identity shape consumer preferences.

Week 10b: Household and Social Class

• Household Definition: One or more individuals sharing a dwelling.

• Family Types:

  • Nuclear Family: Parents and children.

  • Extended Family: Nuclear family plus other relatives.

• Trends in Family Structure:

  • Decreasing family size and older marriage ages (2021: Men - 30.4 years, Women - 28.6 years).

Household Life Cycles

• Lifecycle Changes: Each stage in a household lifecycle influences consumer behavior and purchases.

  • Key factors include:

  • Pets

  • Marriage

  • Children

  • Multi-generational living

  • Alternative lifestyle couples

Changes in Household Structure

• Increased instances of:

  • Delayed marriages

  • Same-sex couples leading to fewer children

  • Dual-career households

  • High divorce rates (~40%)

• Implications: Fewer children may threaten societal stability.

Declining Population Concerns

• Potential effects of a declining population:

  • Shrinking economy

  • Aging population

  • Increased social unrest and demand for immigration

  • Slowed innovation and expansion

Consumer Behavior Roles in Household

• Decision-making roles within households vary based on:

  • Household type

  • Cultural background

  • Temporal factors

Household Decision Types

• Autonomous Decisions: Individual decision-making.

• Partner-Dominated Decisions: One partner leads the decisions.

• Child-Dominated Decisions: Children influence major decisions.

• Syncratic Decisions: Shared decision-making among household members.

Social Class Definitions and Components

• Hierarchy: Status positions within society.

• Social Class Determinants:

  • Education Level: A primary determinant in the U.S.

  • Inherited vs. Earned Status: Class can often be inherited or achieved.

  • Socioeconomic Status (SES): Measured based on income, education, and demographics.

Social Classes Over Time

• Upward Mobility: Achieving a higher social status than parents.

• Downward Mobility: Falling to a lower class than parents.

• Class Fragmentation: Emergence of various segments post-WWI and post-USSR.

Social Class and Consumption

• Conspicuous Consumption: Purchases signaling class status to others.

• Compensatory Consumption: Buying to compensate for social insecurities.

Social Class and Money

• Multiple interpretations of money:

  • Power

  • Freedom

  • Security

  • Emotions (Love, Esteem, Success)

• Question of Happiness: Does money equate to happiness?

Upcoming Agenda

• Quiz #3: Cover chapters 10-13 on (Date: Tues 3/25)

• Group Project: Focus on Household Dynamics and Psychographics (Date: Thurs 3/27)