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 âvirtual communitiesâ 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. Here individuals, who share common interests, can make contact with each other without any geographic restrictions. The interaction between members of such groups tends to be more uninhibited that it Continue reading
Consumer Behavior
Approaches to Studying Consumer Behaviour
Consumers possess considerable discretion to make independent and autonomous choices about what they will and will not buy, from whom they will buy, as well as from whom they will not, and this purchasing power leaves most businesses that are not monopolies little choice but to adopt a consumer orientation, meaning that they must resolutely focus on understanding customers in order to more effectively fulfill their needs. Specifically, in marketing, a good understanding of customersâ lives to the maximum extent possible is crucial to ensuring that the most appropriate products and services are being marketed to the right people in the most effective way possible. Influencing consumersâ behavior, and in particular, their purchasing decisions, is at the focal point of all the effort and resources that are devoted to marketing and because of this fact, marketers will require an in-depth understanding of the principles and motivations behind consumersâ behavior if Continue reading
Group Influence on Consumer Behavior
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 âindividualâs 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. Informational influence: This is when the reference group is used as a knowledgeable source in the different parts of the buyerâs Continue reading