Consumer Decision-Making - External Factors - Coursework Example

Consumer Decision Making: External Factors Name Institution Name Date Introduction Consumer behavior is integral in effectiveness engaged with consumers and marketers can capitalize on this component. Consumer behavior is influenced by both internal and external forces. The external forces influence consumer purchasing decisions because it is beyond the control of the consumers and decisions are influenced by external forces. Consumers usually face an array of external influences that include associated groups, household structure, subculture and individual’s culture. Business owners and marketers refer to these components as external factors because the source is outside the individual control. Competition is fierce, and product provision is numerous and consumers have to addresses these components to make informed decisions. For the success of a business, the business owners and marketers should understand the behavior consumers. The purpose of this paper is to analyze external factors in making decisions in relative to an array of products and services. Group Behavior Consumers are social individuals who love being in groups (Hawkins & Mothersbaugh, 2009). Groups bring together more than one person who share beliefs, values or norms and usually interact with the purpose of accomplishing mutual or individual goal (Darley, Blankson & Luethge, 2010). Consumer behavior decisions occur in different types of group setting (Lee et al., 2011). A group norm dictates the behavior of the group members and breaking some of the rules may result in penalties (Pepper, Jackson & Uzzell, 2009). Three factors arise, which are attitude towards the group, the nature of the group and the nature of the product (Cova, Kozinets & Shankar, 2012). Attitudes towards a Group The status and pride of the group are some of the important factors that dictate the behavior of the individuals and forming the framework of customer decision-making (Steg & Vlek, 2009). Attitudes and pride are aimed at fulfilling a requirement of a given class or social status. For example, consumers with higher status class would prefer high class branded clothes and any other individual within the group will tend to purchase clothes within this class setting (Pepper, Jackson & Uzzell, 2009). If any individual within the group decides to purchase clothes that are deemed cheaper, the attitudes of other people within the group are affected. Therefore, the attitudes of the individuals within the group dictate and define what is appropriate for what is inappropriate (Solomon, Polegato & Zaichkowsky, 2009). Nature of the Group Norms, values, and status are some of the important components that ascribes to individual behavior within the group (Hawkins & Mothersbaugh, 2009). The beliefs of the individuals within a group define the power that brings together the different entities within the group (Darley, Blankson & Luethge, 2010). The individuals within the team are premised on the roles and responsibilities and how individuals are valued within the group (Daugherty, Eastin & Bright, 2008). The beliefs in a group usually develop over time and define some aspects that the grouped upholds. Groups may be driven by values while others may be driven by social grouping (Pepper, Jackson & Uzzell, 2009). For example, the value of a product is usually subjective and dependents on economic disposition of an individual (Solomon, Polegato & Zaichkowsky, 2009). A person in one group may decide to eat at a luxury and expensive place because the person believes in the value of money while another person may choose a cheaper place because the individual cannot afford the bill. Nature of the Product The nature of the product and the value ascribed to the products determines whether a consumer decides to acquire the product (Darley, Blankson & Luethge, 2010). For example, if the social grouping is of high standards, the individuals within the group would tend to purchase products and services associated with the given standards (Hoffmann & Soyez, 2010). The attitudes of the group and nature of product complements each other and defines the approach in which consumers takes to arrive at consumer based decision (Pepper, Jackson & Uzzell, 2009). A consumer social group may prefer a Porsche and may not give much credit who buys a cheaper and low-class Toyota Pius. Culture The society usually establishes the values and norms, and consumers tend to stay within these defined cultural expectations. It is the most important component that influences the consumer’s behaviors (Chan, Wong & Leung, 2008). Culture is passed through generations and other institutions such as religion and family members (Lee et al., 2011). When the culture evolves, the requirements of consumers changes, when the value is given to a product changes, expectations of the product changes (Darley, Blankson & Luethge, 2010). Culture also brings customs, morals, law, art, beliefs and knowledge. Culture is learned and can change because of characteristics that define the culture. For example, the needs, shared values, learned behaviors define the consumer decision process (Pepper, Jackson & Uzzell, 2009). Moral and ethical components come into focus. For example, consumption of whales in western countries is an emotive issue and if an individual decides to consumer whale delicacy, the norms of the society does not support and hence disapprove the purchase or consumption (Pepper, Jackson & Uzzell, 2009). In addition, some cultures such as Arabic disapprove consumption of alcohol and advertisement of alcohol in Arabic countries is disapproved (Solomon, Polegato & Zaichkowsky, 2009). Therefore, an individual cannot decide to purchase the alcoholic drink in Middle East countries. Sub-Culture A subculture is a sub-segment that exists in a larger culture that enables sharing of activities, values and meanings that share unique characteristics of the overall culture (Lee et al., 2011). Analyzing the subculture enables the markets to focus on customs, values, beliefs, which are crucial to administering requirements to the subculture (Darley, Blankson & Luethge, 2010). The subculture exists because of values, customs, and beliefs and can transfer components from generation to generation (Pepper, Jackson & Uzzell, 2009). For example, youths like takeaways and fries and they tend to purchase the products from McDonalds. When the stage changes, younger youths enter the market and replace the next stage (Lee et al., 2011). Therefore, the marketers are supposed to understand the requirements of the subculture to make informed decisions (Solomon, Polegato & Zaichkowsky, 2009). Family Family is commonly referred to as an association of more than two people who are related to adoption, marriage, birth and resides together (Hawkins & Mothersbaugh, 2009). Individual’s immediate family entities influence the behaviors of the buyers and dictates what should be acquired. The individual can borrow from the family through culture or can learn from the environment what is commonly referred to as lifestyle or habit. In most consumer goods, the family is the most important reference group (Pepper, Jackson & Uzzell, 2009). The family also presents the ethical, values, social relations, emotional, religious components that determine the decisions of an individual in forming buying decisions (Darley, Blankson & Luethge, 2010). For example, the family understands the importance of healthy eating because they know the challenges associated with unhealthy eating (Pepper, Jackson & Uzzell, 2009). Unhealthy eating is associated with cancer, obesity and lifestyle diseases. Therefore, the family decides the food to be consumed and advises on consumption of other types of foods especially the fast foods (Solomon, Polegato & Zaichkowsky, 2009). Family Life Cycle Stage Families come in different forms and expectations (Lee et al., 2011). For example, there are the parents, divorced parents, single parents, baby boomers, teenagers, varied generations and these groupings defines consumer behavior (Gu, Park & Konana, 2012). The life cycle stage defines the nature of decisions to be made and the relationship that exist between these different family life cycle stages (Lee et al., 2011). For example, the baby boomers family stage requires some important components that are different from life cycle group (Pepper, Jackson & Uzzell, 2009). The baby boomers have children and needs things such as pampers, pediatric services, baby food, and baby clothes. The status of the family dictates and manages the consumer behavior in acquiring products that are important to the cycle of the family (Solomon, Polegato & Zaichkowsky, 2009). Household Decision Making Process The decision-making process in a household influences what to be bought and reasons behind the purchase. The children may initiate the process while the parents refine the components of the behaviors (Darley, Blankson & Luethge, 2010; Marin, Ruiz & Rubio, 2009). The marketers can target the parents through engaging the children and vice verse. The marketers usually initiate conversation on an issue with the expectation that it will change the consumer behavior. For example, marketers design campaigns informing the audiences on a new toy (Pepper, Jackson & Uzzell, 2009). Since the children see and get attracted to the new toy, the children will require their parents to buy them the new toy. This illustrates that the marketers have engaged the children resulting in the conversation between the parents and the children (Solomon, Polegato & Zaichkowsky, 2009). In the same way, the parents may see a social event that involves kids, and the parents may decide to take the kids to enjoy themselves. The market has engaged the parents leading to making decisions (Pepper, Jackson & Uzzell, 2009). Social Class In societies, social stratification or class structure has existed for long periods of time. Social class is dependent on the position of an individual in the society (Lee et al., 2011). Numerous factors contribute to social standings that include income, occupation and education (Pepper, Jackson & Uzzell, 2009). Other social factors include worldview, cultural interests and place of residence (Kim & Trail, 2010). Social class is generally referred to as a hierarchy of distinct status classes and is based on prestige, power, and relative wealth (Zourrig, Chebat & Toffoli, 2009). Other factors that are considered include the quality, conformity, and focus on passions. People with high social class tend to live in communities of high class (Pepper, Jackson & Uzzell, 2009). A rich person cannot live in the middle or lower class areas and tends to purchase a property at high-end places because they associated the environment with socioeconomic factors (Solomon, Polegato & Zaichkowsky, 2009). According to these consumers, the high-end environments has better social components that include good infrastructure and security, which are absent from other environments. Opinion Leaders Opinion leaders are individuals who can influence other people by given actions (Hawkins & Mothersbaugh, 2009). Since people seek information from them, they are in a better position to influence through the word of mouth (Sung & Yang, 2008). These opinion leaders can influence positively or negatively towards a given service or product (Solomon, Polegato & Zaichkowsky, 2009). Opinion leaders influence the attitudes, expectations, and views regarding a given product. For example, companies use celebrities to sell their products and services since consumers will want to be associated with these celebrities (Pepper, Jackson & Uzzell, 2009). Celebrities such as footballers are frequently seen in advertisements, and such advertisements attract consumers and shape decision making of consumers (Solomon, Polegato & Zaichkowsky, 2009). Conclusion Consumer behavior is guided by both internal and external forces. The internal forces come from inside of the consumer while the external forces are influenced by outside forces. The external factors include social status, opinion leaders, family, cultures, and subcultures. People operate in social settings, and the social structure influences the behaviors of the consumers. Family members define the culture, norms, values and beliefs that should be followed and adhered. 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