Consumer Behavior

So is its true that individualism is dead and that consumer behavior is dominated by the influence of groups? There is no doubt consumer behavior is heavily influenced by groups. Individuals are always striving to conform to group behavior and to please others and this influences the purchase choices that they make. The influence of groups also helps to establish trends in lifestyle, fashion, and the assimilation of new products, into the lives of consumers.

The notion of ‘virtual communities’ has been around ever since the inception of the internet. Whereas people used to meet and form communities geographically, the internet allows groups of like-minded people to meet virtually through communities based on, for example, online chat rooms and forums.… Read the rest

Each consumer in society is a member of different groups depending on their culture, various subcultures or even social class can influence their consumer purchase. A group can be formed when two or more individuals share a set of norms and beliefs. A group becomes a reference group when an individual recognizes with the group and takes on many of the values, attitudes or personal standards of group members and use it as the base of his/her day to day behavior. Reference group is defined as having significant relevance upon an ‘individual’s evaluations, aspirations or behavior influencing the consumer. The nature of reference group influence can take three forms, this is because some groups and individuals are able to influence greater than others and affect a range of consumption.… Read the rest