CONSUMER BEHAVIOUR

Chapter 6 : The American society: Families and households. Chapter 7: Group Influences on Consumer Behavior

AURELIE FABRE I ELLIOT LALOI

I DIMAS WIJANARKO I IWAN SYLVANUS|

NINA NURMAYANTI

PPM SCHOOL OF MANAGEMENT 2013

FAMILY HOUSELHOLDS
The Household= basic purchasing and consuming unit influences most consumption decisions

Consumer Behavior Hawkins- 12th Edtion

THE HOUSEHOLD LIFE CYCLE

HLC = useful tool for segmenting markets and developing marketing strategy

Consumer Behavior Hawkins- 12th Edtion

FAMILY DECISION MAKING: The nature of family purchase roles

6 types of purchases roles Marketers must determine who in the family plays which role before they can affect the family decision process

Consumer Behavior Hawkins- 12th Edtion

FAMILY DECISION MAKING: categorization

wife-dominant
individualized husband-dominant

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joint

children-dominant

Consumer Behavior Hawkins- 12th Edtion

CONSUMER SOCIALIZATION
Consumer socialization deals with the processes by which young people (from birth until 18 years of age) learn how to become consumers Consumer skills Consumption-related preferences

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Consumption-related attitudes

instrumental training

FAMILY
modeling
Consumer Behavior Hawkins- 12th Edtion

mediation

CONSUMER SOCIALIZATION

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5. Making Independent Purchases 4. Making Assisted Purchases 3. Making Selections 2. Making Requests 1. Observing five stages of learning how to shop

Consumer Behavior Hawkins- 12th Edtion

Chapter 7 : Group Influences on Consumer Bevavior

Consumer Behavior Hawkins- 12th Edtion

TYPE OF GROUPS Groups : Two or more individuals who share a set of norms, values, or

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Membership
Aspirational reference groups Degree of contact

beliefs.

Attraction
Consumer Behavior Hawkins- 12th Edtion

CONSUMPTION SUBCULTURE Consumption Subculture : Distinctive subgroup of society that self-selects on the basis of shared commitment to a particular product class, brand, or consumption activity Online Community

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Brand Community

Consumer Behavior Hawkins- 12th Edtion

THE TYPE OF INFLUENCE

Reference Group Influences :

Informational

Use behavior & opinion

Normative

Fulfill group expectation

Identification

Internalized values & norms

Consumer Behavior Hawkins- 12th Edtion

COMMUNICATION WITHIN GROUPS AND OPINION LEADERSHIP

Mass Communication Information Flows

Word Of Mouth (WOM)

Key Opinion Leader (KOL)

Strategies designed to generate WOM and encourage opinion leadership ADVERTISING PRODUCT SAMPLING RETAILING CREATING BUZZ

DIFFUSION OF INNOVATIONS
CATEGORIES OF INNOVATION
A. CONTINUOUS INNOVATION B. DYNAMICALLY CONTINUOUS INNOVATION C. DISCONTINUOUS INNOVATION ADAPTOR CATEGORIES Innovators A B

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C

Early Adopters
Early Majority Late Majority Laggards

CASE 1
Families and Households Influence :

PEPSODENT CASE IN INDONESIA

FAMILY INFLUENCE : PEPSODENT CASE

Started launched in 1980 1st toothpaste in Indonesia known as hereditary brand Biggest market share in Indonesia Pepsodent - Household product that used by all family members

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WHY CHOOSE PEPSODENT?

They use Pepsodent because their parents use Pepsodent Their parents taught them using Pepsodent in their children age - habit They dont know the real reason why choose Pepsodent They just use the toothpaste that already available at home

FAMILY INFLUENCE : PEPSODENT CASE

35% consumer buy Pepsodent

because of family influence

33% consumer buy Pepsodent

because of family tradition
Source : Research Consumer Behavior in Pepsodent Buying Decision by Viviyanti BR Tampubolon, IPB. 2006

In INDONESIA Decision maker in buying family product is Mom HLC Strategy Younger (<35) : Full Nest I, Single Parents I Middle Age (35-64) : Delayed Full Nest I, Full Nest II, Single Parents II In those stage DM start to think the balance between price and benefit Pepsodent Consumer do the Pepsodent Consumer Socialization to their children in Stage 3 (8-11 yo) : period of concrete operation

FAMILY INFLUENCE : PEPSODENT CASE

PEPSODENT DECISION MAKING PROCESS
INFLUENCER (heritage older family)

Communicati on at children (happy time when brushing teeth)

INITIATOR (parents)

DM (parents)

PURCHASER (parents)

USER (all family members)

Communica tion at parents (functional) INFO GATHERS (parents)

CASE 2
Group Influences On Consumer Behaviour

BOOK STORE : BEST SELLER

WHAT OUR GROUPS READING

THE INFLUENCE OF THE GROUP : THE CASE OF BOOKS

When trying to buy a book, we are usually lost. An easy solution: buy the best sellers ! We assume that the majority of people can not be totally wrong.

THE INFLUENCE OF THE GROUP : THE CASE OF SOCIAL NETWORKS

Winner-takes-all competition: at some point everyone switch to the dominating platforms because the others are too small. I choose one product so I can share the same experience that my peers.