Consumer perception is a major factor that influences consumer behavior. Some of the important economic factors are: When a person has a higher disposable income, the purchasing power increases simultaneously. Elderly people have a totally different buying behavior. At an early age, buyers learn to recognize acceptable behavior and choices when selecting products. Researchers divide shoplifters into two categories: “boosters,” professionals who resell what they steal, and “snitches,” amateurs who steal for their personal use. Why are social influences important? There are generally three components of a culture: beliefs, values, and customs. Forget going into stores to discover … Social Factors are made up of : Reference groups Family Roles/ Status Reference Groups: – A person’s reference group consist of all the groups that have a direct/ indirect influence on the person’s attitude/ behaviour. Subcultures can consist of people from different religion, caste, geographies and nationalities. Social class is considered an external influence on consumer behavior because it is not a function of feelings or knowledge. For example, a doctor would buy clothes according to this profession while a professor will have different buying pattern. There is also a distinction in the type of goods purchased. For example, the role of father can be different than the role of mother in purchasing consumer goods. Social factors: family, friends, education level, social media, income, they all influence consumers’ behavior. Social … Higher income gives higher purchasing power to consumers. Reference groups can be either formal or informal. A new refrigerator, for example, is likely to be a joint decision, while a week’s groceries might be selected by a single member of the family. Retailers often employ more security and staff during times where the propensity for consumer misbehavior increases, such as during “Black Friday” sales. Upper Class : Social class has a profound effect on the types and quantity of consumer goods purchased. In keeping with this idea, people will often modify their own behavior to coincide with group norms (even those that profess non-conformity are in some ways conforming with other people who want the same thing). Influence of Consumer Behaviour on Decision Making Process. These factors refer to the set of values, preferences, perceptions, and ideologies of a particular community. We need people around to talk to and discuss various issues to reach to better solutions and ideas. The consumer buying habits and decisions greatly depend on the economic situation of a country or a market. When a nation is prosperous, the economy is strong, which leads to the greater money supply in the market and higher purchasing power for consumers. Friends, clubs, religious groups, and celebrities can all act as reference groups. Consumer Behaviour in their Cultural and Social Settings 5. Friends: Friends are one of the most powerful reference groups because they influencing our consumer behavior. Hence basic needs and security needs have the power to motivate a consumer to buy products and services. Social class is often hard to define; in fact, many people dispute the existence of social classes in the United States. For example, a person can be a part of the larger “American” culture and still be a member of other subcultures based on his or her socio-economic background. With the aim of discovering social media influence on consumer behavior, in this quantitative research we analyze the use of social networks Facebook, YouTube, Twitter and Instagram by Samsung, Apple, Xiaomi and BQ as the axis of promotion of their products, increase of web traffic, improvement of the image of the company or the brand and obtaining brand notoriety. Although a very common crime, it is still considered consumer misbehavior. Factors Influencing Consumer Decisions in Principles of Marketing by Lumen Learning is licensec CC BY: Attribution. Consumers are actively engaging with brands as a part of their purchasing decision. CC licensed content, Specific attribution, http://en.wikipedia.org/wiki/Influencer_marketing, http://en.wikipedia.org/wiki/Persona_(marketing), http://www.fotopedia.com/items/flickr-417146851, http://en.wikibooks.org/wiki/Marketing/Consumer_Behavior%23Social_influences, https://dl.dropboxusercontent.com/u/31779972/Introducing%20Marketing.pdf, http://commons.wikimedia.org/wiki/File:US_Navy_021029-N-3228G-007_Navy_family_shops_at_the_Pearl_Harbor_commissary.jpg, http://en.wikipedia.org/wiki/Reference_group, http://en.wikipedia.org/wiki/Thought_leader, http://en.wikipedia.org/wiki/opinion%20leader, http://en.wiktionary.org/wiki/target_market, http://commons.wikimedia.org/wiki/File:Friends.jpg, http://en.wikibooks.org/wiki/Marketing/Consumer_Behavior, http://en.wikipedia.org/wiki/Opinion_leadership, http://www.boundless.com//sociology/definition/reference-group, http://commons.wikimedia.org/wiki/File:Auto_Mechanic.jpg, http://commons.wikimedia.org/wiki/File:US_Navy_081007-N-8848T-889_Dale_Earnhardt_Jr._autographs_a_hat_for_Seaman_Recruit_Heather_Martinez.jpg, http://en.wikipedia.org/wiki/Consumer_behaviour%23Other_influences, http://en.wikipedia.org/wiki/Social_class_in_the_United_States, http://en.wiktionary.org/wiki/social_class, http://en.wiktionary.org/wiki/disposable_income, http://www.fotopedia.com/items/flickr-5693470861, http://en.wikipedia.org/wiki/Social_class_in_the_United_States%23Culture, http://en.wiktionary.org/wiki/socio-economic, http://www.fotopedia.com/items/flickr-5257442738, http://en.wikipedia.org/wiki/Black_market, http://en.wikipedia.org/wiki/Credit_card_fraud, http://en.wikipedia.org/wiki/Shoplifting%23Motivations, http://en.wikipedia.org/wiki/credit%20card%20fraud, http://en.wikipedia.org/wiki/Black%20Friday, http://www.fotopedia.com/items/flickr-3274955487. Social class is important to predict the consumer behavior. Consumer Behaviour is an effort to study and understand the buying tendencies of consumers for their end use. Schools, friends, and peers are examples of informal reference groups. Social media is no longer just about conversations; it’s about commerce. Reference groups are groups that consumers compare themselves to or associate with. Social class is important to predict the consumer behavior. Each social class has distinct characteristics and approaches to consumer purchases. Social class can have a profound effect on consumer spending habits. One’s race, religion and class are all ways subcultures can be established. Culture can have a profound effect on consumer behavior and impact how a product is marketed. Of course its impact varies across products and brands. After reading this essay you will learn about:- 1. Consumer Behaviour – Social Factors; Social factors are also subdivided into the following. 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