Key features of Society / Market Social & Cultural Forces

Culture is set of shred of values passed from generation in a society.

Family Priorities of families and the relationships among family members with regard to purchasing and consumption vary considerably from culture to culture. Customs and behavior Set of actions which are directed towards the customary behavior and it is often hard to understand. Education The education level in a country affects the literacy rate, which in turns influences branding, advertising and labeling. Language difference - Most difficult part of society which divides society in different parts and then micro-marketing initiatives take place to cater the same.

Economic Environment

1) Infrastructure 2) Level of economic development 3) Competition

Political & Legal Forces

Local operating laws Political outlook Law enforcement and practice

Consumer Market and Consumer Buying Behavior

Consumer Market

Consumer market is not only large, it is dynamic. To develop an appreciation of this dynamic consumer market, we take into the following factors.

Geographical Distribution Rural Population, Urban Population, the suburban population.

Consumer Demographics Age, family life cycle, education and income, race and ethnicity.

Consumer Buying Decision Process

Need Recognition

Everyone has unsatisfied needs and wants that create discomfort. Thus the process of deciding what to buy begins when a need that can be satisfied through consumption becomes strong enough to motive a person. Internal stimuli and external stimuli. First Stage of the buyer decision process in which the consumer recognizes a problem or need

Information Search - if the consumer drive is so fast and satisfy product is nearby it will not go for search but if it is needed it will save the need in memory and search for the information Identification of alternatives

once a need has been recognized, the consumer must next identify the alternatives capable of satisfying the need.

Evaluation of alternatives Evaluation may involve a single criterion. Decisions - once all the process are passed , consumer must decide whether to buy or not. Post purchase behavior experience learnt from the buying decision process.

Characteristics affecting Consumer Behavior Social Influences Cultural Forces - Culture, Subculture, social classes. Cultures do change over time, Subculture are groups in a culture that exhibit characteristics behavior patter sufficient to distinguish them from other groups within the same culture. Social Class is ranking with in a society determined by the members of the society. Buying behavior is often strongly influenced by the class to which they belong. upper class( inherited wealth, Executives, owners of large business) Upper middle class , Lower middle class, Upper lower middle class, lower-lower class. Social Factors - Groups, Family, Roles and status Each group in a society develops its own standard of behavior that then serve as guides or frames of reference, for the members, Families and a circle of friends. Family is agroup of two or more people related by blood, marriage or adoption living together in a household.

Personal Factors Age and life cycle stage, Occupation, Economic Situation, Personality and Self Concept. Average age of society, Economic downturn (rise in inflation rate). Personality is defined broadly as individuals pattern of traits that influence behavioral responses.

Psychological Factors Motivation, Perception, Learning and Belief & attitudes. (Maslows Hierarchy theory) 1) 2) 3) 4) 5) Physiological needs Safety Need Social Needs Esteem Needs Self actualization Needs

A need must be aroused or stimulated before it becomes a motive. Thus, a motive is a need sufficiently stimulated to move an individual to seek satisfaction.

Perception is the process of receiving, organizing and assigning meaning to information or stimuli detected by our five senses. It plays a major role in the stage of buying-decision process where alternatives are identified.

Attitude is a learned predisposition to an object or class of objects in a consistently favorable or unfavorable way. It is used in the evaluation of alternatives process.

Learning involves changes in behavior resulting from observation and experience. It plays an important role in every stage of buying-decision process.

Maslows Hierarchy of needs

Characteristics affecting Consumer Behavior Situational Influences

Time Dimension the time of day influences the demand for some products. ( AC purchase in Summer) The Surroundings - physical surroundings are the features of a situation that are apparent to the senses. Term of purchased T&C of sale as well as the transaction-related activities that buyers are willing to perform affect consumer buying. Consumer Moods and Motives Sometime consumers are in a temporary state of mind that influence their buying decisions.