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3. Influence of social ambience L 3 Ing. Jiří Šnajdar 2013.

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2 3. Influence of social ambience L 3 Ing. Jiří Šnajdar 2013

3 3.1. Socialisation process of consumer Socialisation process can we understand as obtaining of ability to live in human society. It means: to understand the culture to accept complex of values and norms to master ways of behaviour in typical social situations. In general the socialisation and enculturation of consumer represents a process, where people obtain skill, knowledge, attitude and norm of behaviour, necessary to handle with consumable behaviour. Socialisation process proceeds through social groups, their influencing.

4 3.2. Social groups social categories social aggregates groups in own meaning. Social categories Social category is complex of persons with at least one common sign. For example people of certain age, profession etc.

5 Social aggregate Is spatial connection of people. accidental social aggregates (people on beach) crowds : aggregates with common theme * passive crowds(listener of a concert) * active crowds : spectatorial, aggressive, escapist, recruit, expressive Physical densityPersonal factors Crowd perception Adaptation strategies

6 Shoppingconformation with crowd Time of shoppinginformation process Discussion with shop assistant evaluation of alternatives Special requirements purchase of famous mark Outputs satisfaction in shop satisfaction with purchase image of shop faithfulness parameters for next shopping

7 Crowd perception in shop : physical factors, number of shoppers, waiting in lanes, overcrowd, restriction of movement personal factors : last experience, knowledge of time, aggressivity, Impatience Groups in own meaning Under conception of social groups we understand mostly groups in own meaning.

8 1.existence of mutual communication network activity (in some regions) 3.common target 4.differentiation of roles and positions 5.system of norms and values 6.system of sanctions 7.knowledge about membership to a group 8.knowledge about group difference Social groups: primary secondary formal informal - Classes – associations - foreign - family - ethnic groups - organisations - own - friends - neighbours

9 big middle small Schema of structure of social groups shows rather open than strict divide between individual types. Formal requirement of membership Primary (common personal contact face to face) no yes family fraternities friends associations shopping groups teams clubs Scouts

10 Secondary (small contact Face to face) sport hero professional association admire profession religious organisation Represent of environmental life style This table is useful also in following points : sketches in original to much bipolar view on social groups, shows possible penetration of groups (team could be the base for future friends)

11 Family and other primary groups Between the main primary groups belong following characteristics : often personal contact small number of members confidence and solidarity non-forced membership (spontaneity) long lasting Signs of primary groups must be understood with some tolerance. The basic primary group is a family, however spontaneity in the view of children is arguable.

12 Family We differentiate a nuclear family, created by parents + children enlarged, here come to nuclear family also relatives. A human is mostly a member of two families : family in which is he born and family which he sets up. Parents transmit on children : value systems, examples of behaviour, information, esthetic feeling.

13 Schematically showed : Oriented elements from parents side General influence on consumable behaviour Particular element of consumable behaviour Particular element of consumable behaviour in for example choice of trade mark, kind of product (firm makes the name for several generations). From here is resulting trend to renew old marks etc. In scope of forming phase a human sets up family, makes a new home, influences his children, retrospectively influence his own behaviour. New formulas of consumable behaviour are created.

14 Second phase (timely defined by the moment when an individual leaves original family) is intercepted in detail in form of so called life cycle of family (sometimes also mentioned as life cycle of household). Family life cycle As family life cycle is understood changing of specific phases, through these come life of most families. Newly – it is spoken about non-traditional interpretation of family life cycle – is into definition of periods of life cycle integrated also situation, event. divorce rating of parents so, as are such families event. households markedly difference with their consumer behaviour.

15 Shopping decision in family Except phases, the family goes with from life cycle view, influences the consumer behaviour also disintegration of shopping decision between family members. We can follow : dividing on expressive and instrumental role dividing according to domination of one partner dividing according to type of participation on shopping decision

16 Dividing according to domination of one partner According to dividing of roles between husband and wife we differentiate four main types of purchase decision in the family: autonomous (each decides independently), predominance of man (husband), predominance of woman (wife), together (purchase decision result of mutual consideration of both partners). 50 % (households deciding together)

17 Dividing according to type of participation on purchase decision: According to how the members of family come in the certain purchase decision, are determined following “function” roles : initiator (arises purchase idea) user (who will use the product) persuade (who can influence the process of purchase decision) Present of roles is qualified by type of purchase, products category. Difference between the type “purchase agent” and “passive dictate” is, in the first case, more or less direct requirement of user, in the second case choose on the base of user´s knowledge.

18 On that how and what type is developed in given family, influence many factors : stereotypes of sex, sources, who makes for, experience, social status, demographic characteristics, importance of purchase, perceived risk, cultural standards. Together it is necessary to take into consideration that the role of a man, woman (but also children) grows or weakens in dependence with purchase decision process, for example at decision about purchase of house “technique” can be the role of woman bigger in the phase of problem recognising, less at searching and evaluating of information. The woman´s role at decision about purchase of a car increase in case of choice of colour shade.

19 Influence of children To the children is attached mostly the role of influencing (rate of influence at deciding about purchase a product is conditioned by product category, age, parents´ attitudes). Children represent furthermore in some spheres not only insignificant purchase power. Relative soon form at children relation to a mark. Also this is one of fundamental reasons, why sometimes marketing activities tries to address school ambience. Influence of family versus influence of friends In frame of primal groups we concentrated specially on the family. Further important primal group are friends.

20 Other primary groups Purchasing groups are, in marketing point of view on consumable behaviour rational people, who go together shopping: provide consumer with background of his experience in decisive moment, lower social risk, namely agreement of purchase by social ambience induce satisfied feeling even joy from shopping increase self-confidence of consumer in his decisions.

21 Working groups. Working groups can have their importance also in consumer behaviour – especially non-formal working groups, namely those who are not based on a formal organisation, but on friendly relationships, mutual sympathies. They work like friends. Reference relationships Sometimes are in connection with primary groups mentioned also reference groups, even if the reference group can be as a primary group, so secondary group.

22 Reference group is a social group, an individual identifies with. The individual has at the same time more reference groups. Successful use of reference relationships – groups is basis of placement of product, service on market. Wider understanding of notion reference group A reference group is any group or person (!), which is used by individual (or group) as point of comparison or reference at forming of general, so specific values, attitudes, behaviour.

23 Characteristic of reference groups : reference group is characterised by : group norms, standards of behaviour, cohesiveness – extent when a person fells to be bond with group norm (increases with higher communication between members, higher interaction between members, influence on member´s excommunication), conformity – stage when individual internally agrees, it is differentiated internal and external conformity disintegration or roles – expecting behaviour of individual in a group, status – personal reputation in a group.

24 Tendencies in influencing of reference groups on consumer behaviour reference group as source of information and help at variant appraisal IndividualReference groupProduct The target is purchase of product, service – within getting information, necessary to make a decision, and advice turns individual to his reference group. Reference group has here information function.

25 reference group as target (social) Individual Product Reference group Purchase of certain product, service is expression of social sort (real or aspiration) to certain reference group. This influence of reference group can be designated as some symbolic influence, where the product becomes a symbol of membership to reference group. Two trends of this symbolical relation : - Identification : in meaning of value expression and comparison. It has to increase image. - Norma (normative influence) : in meaning of confirmation of conformity.

26 Influence rate of reference group on consumer´s behaviour increases with : lack of information necessary to purchase decision, less experience of purchaser with given product category, higher authenticity and power of reference relationship (binding with solidarity, conformity, status, role, norm a standard of reference group), higher product conspicuously, higher price of product, service, less frequency of purchase, higher rarity, availability.

27 It is obvious that influence of reference group is connected with life cycle of product. In the phase of product introducing on the market in the influence of reference group mainly on ownership / use of category. Fashion With influence of reference groups are closely connected fashion moves. - Fashion represents surge of social conformity. For as much as the fashion trends concern not only one category of products, it is necessary to apprehend the mutual fashion denominator.

28 -On propagation of fashion surges, trends participate three effects : trickle down effect : fashion culture elements spread from higher social placed groups (to classes) into groups with lower social position. trickle up effect : some culture elements prove first in behaviour of groups with lower social position, thanks to circumstances become a part of fashion world. trickle across effect : fashion elements in this case spread in social groups with similar position. Cycle of fashion adoption : classic with extreme long duration especially of regress phase fashion craze.

29 Conditions for integration of reference groups into marketing accesses At marketing considerations concerning stress on retracting of reference groups into consumer decision appear three basic questions, problems : Exist influencing reference groups in sphere of current and potential customers ? Is their influence sufficiently strong ? Exist possibility to use reference groups in communication and consecutively in connection with spheres of marketing implements ?

30 Process of fashion adoption A Preliminary phase introduce acceleration B Acceptance phase general acceptation C Regress phase decrease increase out of date Situations in use of reference groups in marketing : Use of identification Use of identification is based on symbolic influence of reference groups and consumer behaviour in medial marketing communication. Use of celebrities: At use of celebrities from view of effect of referential binding it is followed their authenticity, talent, charisma, fame, reputation pertinently other characteristics.

31 Use of experts : based on profession, education, experience of experts, who give testimonial. Use of company´s executive : if it fulfils assumptions to make a reference contact. Theme of common man : reference relationship is based on, that “someone like me” uses some products, services and is satisfied with them. Use of symbolic characters (characters licence) – mostly drawn figures from different picture and similar serials. Use of general personal types (courage – climbers, pilots, divers or figures from advertising of tobacco companies)

32 Opinion leadership Each person in scope of reference group has specific status. The opinion leader becomes a member of a group, who has the highest status. The opinion leader can also become those, who : reflect most closely standards of group, have most information, are educated Therefore is differentiated : - polygraphic opinion leadership (in almost all trends, spheres - binding with highest status) - monographic opinion leadership (in some sphere only – binding with other sources of opinion leadership).

33 Opinion leaders have usually bigger liberty of behaviour, because continuously most intensely influence norms and standards of reference group. Opinion leaders work among others as source of information. Some characteristic of opinion leaders, important from point of view of marketing : higher exposure in media, more time spend on special spheres, are interested more in products categories, know more, innovate more, are more integrated in society.

34 Two-level communication process : Basic direction of use of opinion leaders in marketing is indirect communication with segments, consumer groups through opinion leaders. We address opinion leaders (often via medial communication), then those “with power” of their reference influence transmit to final consumers. Sometimes it is spoken about two- level effect. Two-level communication marketing message communication channel There is also some connection with above stated “trickle-down effect.

35 word – of – mouth Influence of opinion leaders on consumer behaviour in reference groups is very important also because using the most effective form of communication, personal communication face to face. This form is sometimes designated as (Word-of-Mouth) and includes both verbal and non-verbal (!) direct personal communication. Researches show, that more often are through this communication form transmitted negative experiences then positive.

36 In principle it is possible to differentiate : Short chains words of mouth, information about product transmitted especially inside reference group. Long chains –rumours, information transmitted also between different reference groups through the mediation of trickle across. Importance of word-of-mouth increases if : consumers have not enough information about product, objective criterion about mark evaluation are missing, there is a big interest in product, exist strong relations with reference group, an individual affiliates to new reference groups consumers are seeking for new life experience products are expensive, new, important, complicated, difficult to evaluate.

37 Importance of direct personal communication of reference group finds its response in use of different accesses : use of opinion leaders, in some cases the companies rely only on communication through word-of-mouth, mostly at some luxurious products, where the mass advertising could move even downgrade their perception at finish consumers, Buzz-marketing, stimulation, for example through form of teaser campaigns, Event marketing, product placement, simulation word-of-mouth (give a product to use to famous people – simulate conditions of reference transmission), reduction of negative influence of word-of-mouth. “Ask those, who already have” – once of type of communication appeals. It is about support, progress of intensity word-of-mouth.

38 Secondary groups Secondary groups are mostly large groups inside society, based on vicarious non-personal contact, rather former with distinctive decrease of authenticity, contact among members is occasional. Association Relatively long-term grouping of people (more or less formal organised). It is possible to differentiate : associations based on voluntary membership (clubs, interest organisations,...), associations based on non- voluntary membership (surrounding – prison,hospital, army, …), based on facticity of membership (man becomes their member without his own will).

39 Ethnical groups Result from racial, national etc. Conditions, are based more on facticity of membership, are understood as specific type of secondary groups. In marketing the greatest attention is binding with importance and influence of social classes. Social class and social stratification Social class is opened group of individuals with similar social categorisation. Vertical organisation or social stratification is natural feature of each community.

40 Specifics of social stratification Among circumstances influencing specific form of social stratification in given ambience belongs : distance between sections (classes), permeability rate : possibility of social mobility, form of social lifts, inner consistence of social classes, sections. During monitoring of consumer behaviour in marketing we meet with changes of understanding of social classes : social classes are relatively stable homogenous groups of people, which are in society organised hierarchically, and which have similar interests, values and behaviour.

41 Main characteristics influencing social stratification sorting: changeable “fortune” : mainly economical-social characteristics (profession, property, income, …) changeable statuses – interaction, personal prestige, respect to others, behaviour, daily relationships, socialisation (learning, taking on postures, habits, …) changeable “powers” : power (ability to enforce own requests over others), class subconscious (phase when people realise their social position), mobility (children – parents).

42 Characteristics of social classes - express social status – are multi-dimensional, - are organised hierarchically, - are scope of references for individual norms, - are dynamical, - discourage from contact with members of other social classes, -influence mutually their consumption. Difference display of social classes Value and cognitive approach of social classes Higher classesLower classes

43 - Some areas of influencing of social class on consumer behaviour - By recognising of needs and use of evaluating criterions, - free time : higher classes - theatre, concert, lower classes – television, fishery, football. - Process of information searching for purchase decision : labourer class – relatives, close friends, middle class – active searching, printed media. - Social speech : classes differ in choose of vocabulary – structure of sentence – fluency of phrasing. - Choose of media : higher classes – magazines, newspapers, lower classes – television.

44 Reaction on advertisement : higher classes : estimate rather rationality, cosmopolitanism, product character, success, “snobbish” appeal is less effective, middle classes : appreciate rather special offer, elaborated and stylish advertising, more suspicious to advertisement, lower classes : rather less critical, appreciate rather active visual character.

45 - Social mobility : Higher social classes are used as reference groups for lower classes. In marketing orientation, at concentration on lower classes, are enforced symbols of higher classes. - Status oriented consumption : Consumption behaviour motivated by social stratification, reputation, success is at estimating of product utility sensitive on status symbolic.

46 - Social mobility : Higher social classes are used as reference groups for lower classes. In marketing orientation, at concentration on lower classes, are enforced symbols of higher classes. - Status oriented consumption : Consumption behaviour motivated by social stratification, reputation, success is at estimating of product utility sensitive on status symbolic.

47 - Following of social stratification By effecting of social stratification of society are considering following methods : Subjective method : self- perception (connected with perception of own image). Reputation method : perception of others Objective method : we use relatively objective variables. Basic possible dimensions used to register social stratification, follow from above stated axis reputation / power / fortune.

48 Some components of social status Authority, power, ownership, income, profession, public function, education, life style, ancestors, connections, consumer formulas. Also we purchase in correspondence with our social status and so fulfil one of our social roles. Position in social group Views on life style

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