This presentation explains various topics under consumer behavior. How reference group and social class affect consumer behavior is described in this presentation

1. Reference Group & Social Class

2. Presented By

3. Topics To Cover

4. Individual’s social Behavior and social relationships are often motivated by
expectations of satisfying specific needs.
Why Consumer interact ?
• Breadth and depth of product alternatives. As the number of choices and
decision complexity increase, our ability to efficiently make good decisions
is compromised.
• Cost to processing information, and that cost rises as the complexity of the
decision increases.
• The additional constraints of time pressure.
Consumer : A member of Society

5. The word "Dynamics" is derived from a Greek word meaning "force“.
Thus, a study of forces which determine consumer reactions or responses
to their economic, social and cultural environnent dénotes "Consumer
Dynamics".
The social process by which people interact face-to-face in small groups is
called "group dynamics" and relates to the study of the forces operating
within a group.
Group Dynamics

6. A Reference group may be defined as any person or group that serves as a
point of comparison for an individual, for the purpose of forming general or
specific values, attitudes or behavior patterns.
Reference groups become strong reference points because of their credibility
in terms of knowledge and experience, attractiveness and the power they
wield.
Reference Groups

7.  Normative - Reference groups influencing broadly defined values or
behavior are called normative reference group.
 Comparative – Reference group serving as benchmarks for specific or
narrowly defines attitude s or behavior are called comparative
reference group
 Membership – A group to which a person either belongs or would
qualify for membership is called a membership group.
 Symbolic group – groups in which an individual is not likely to receive
membership, despite acting like a member by adopting the group’s
value, attitude and behavior.
Types of Reference Groups

8. Types of Reference Groups

9.  Husband – Wife Decision Making
 Role of Children in Family Decision Making
 Family Life Cycle
 Traditional
 Non Traditional
Family Influence on Decision Making

10. Dynamics of Husband - Wife Decision Making
Dominating Wife Dominating HusbandSyncratic Couple

11. Role of Children in Family Decision Making
Tactics used by children to influence their parents
 Pressure Tactics
 Upward Appeal
 Exchange Tactics
 Coalition Tactics
 Ingratiating Tactics
 Rational Persuasion
 Inspirational Appeal
 Consultation Tactics

12. Family Life Cycle (Traditional)
Bachelorhood
Honeymooners
Parenthood
Dissolution
Post
Parenthood

13. Non Traditional – DSWI Conceptual Model
Husband’s Background Demographics
Husband’s Antecedent Motivations
Wife’s Background Demographics
Wife’s Antecedent Motivations
Husband’s Current Demographics
Husband’s Current Motivations
Wife’s Current Demographics
Wife’s Current Motivations
Husband’s Work Involvement Wife’s Work Involvement
Current Household Demographics
Current Household Motivations
Husband’s Role Conflict and Overload
(Work and Time Pressures)
Wife’s Role Conflict and Overload
(Work and Time Pressures)
Current Household Demographics
Current Household Motivations

14. “Social Class is division of members of society into a hierarchy of distinct
status class ,so that member of each class have relatively the same status
and members of all other classes have either more or less status”
“Social classes are very broad groupings of individuals which hold roughly
similar status levels in society arranged in a hierarchy from low through
middle to upper class divisions.”
Characteristic of social class –
1. Exhibits status
2. Social class is hierarchical
3. Social Class is a form of segmentation
Social Class

15. Subjective measurement
In this the classification of social class membership is based on participant’s self perception or
self image. They are asked to put themselves in basic five categories which are upper, upper-
middle, middle-middle, lower-middle, lower class.
Subjective measurement of social class tend to produce an overabundance of people who
classify themselves as middle class.
Objective measurement
Objective measures consist of selected demographic or socioeconomic variables such as
occupation, amount of income and education. It fall into two basic categories
1. Single variable indexes
2. Composite variable indexes
Measurement of Social Class

16.  The Upper-Upper Class – Club Establishment
 The Lower-Upper Class – New Wealth
 The Upper-Middle Class – Achieving Professionals
 The Lower-Middle Class – Faithful Follower
 The Upper-Lower Class – Minded Majority
 The Lower-Lower Class – Rock Bottom
Life Style Profile of Social Class

17.  Clothing, fashion and shopping
 Saving spending and credit
 Social class and communication
Application of Social Class

18. Thank You