MSG Team's other articles

11341 Some Perspectives on Software Products versus Software Services

The Difference between Services and Products The difference between services and products in software is that whereas the former involve work done for clients that are not the intellectual property of the vendor, the latter are patented by the vendor and sold in terms of licenses to the users. Further, the difference between products and […]

10335 Media Strategy in Advertising

Every work to be done needs a plan of action so that the work is done in a desired and correct manner. Media Strategy plays a very important role in Advertising. The role of Media Strategy is to find out the right path to transfer or say deliver the message to the targeted customers. How […]

10951 Relationship Marketing Sells

Marketing is a subject that draws a lot of students who find it most interesting and challenging. No doubt marketing is a challenge. Students who study Philip Kotler will definitely become proficient with the basic foundations of marketing and concepts. However to be able to take up a marketing responsibility in an Organisation or to […]

10535 Organizational Learning – Maintaining the Competetive Advantage

Introduction Organizational learning is the means by which organizations develop, enhance, and manage knowledge and standards within their functions and in their cultures and adjust and improve their efficiency by making better use of the wide range of skills of their employees. It is critical for modern day business organization. In the present dynamic condition […]

13005 Cultural Levels and Business

Considering the business point of view, it is valuable to deliberate of culture as presented at four diverse levels namely the national, business, industry and organization. National Culture comprises of the distinguishing common values, thoughts, suppositions, faith and customs of the occupants of a country which direct their behavior. For instance, the Scandinavian countries rest […]

Search with tags

  • No tags available.

Consumer Behaviour is an effort to study and understand the buying tendencies of consumers for their end use.

Social factors play an essential role in influencing the buying decisions of consumers.

Human beings are social animals. We need people around to talk to and discuss various issues to reach to better solutions and ideas. We all live in a society and it is really important for individuals to adhere to the laws and regulations of society.

Social Factors influencing consumer buying decision can be classified as under:

  • Reference Groups
  • Immediate Family Members
  • Relatives
  • Role in the Society
  • Status in the society
  1. Reference Groups

    Every individual has some people around who influence him/her in any way. Reference groups comprise of people that individuals compare themselves with. Every individual knows some people in the society who become their idols in due course of time.

    Co workers, family members, relatives, neighbours, friends, seniors at workplace often form reference groups.

    Reference groups are generally of two types:

    1. Primary Group - consists of individuals one interacts with on a regular basis.

      Primary groups include:

      • Friends
      • Family Members
      • Relatives
      • Co Workers

      All the above influence the buying decisions of consumers due to following reasons:

      They have used the product or brand earlier.

      They know what the product is all about. They have complete knowledge about the features and specifications of the product.

      Tim wanted to purchase a laptop for himself. He went to the nearby store and purchased a Dell Laptop. The reason why he purchased a Dell Laptop was because all his friends were using the same model and were quite satisfied with the product. We tend to pick up products our friends recommend.

      A married individual would show strong inclination towards buying products which would benefit not only him but also his family members as compared to a bachelor. Family plays an important role in influencing the buying decisions of individuals.

      A consumer who has a wife and child at home would buy for them rather than spending on himself. An individual entering into marriage would be more interested in buying a house, car, household items, furniture and so on. When an individual gets married and starts a family, most of his buying decisions are taken by the entire family.

      Every individual goes through the following stages and shows a different buying need in each stage:

      • Bachelorhood: Purchases Alcohol, Beer, Bike, Mobile Handsets (Spends Lavishly)

      • Newly Married: Tend to purchase a new house, car, household furnishings. (Spends sensibly)

      • Family with Children: Purchases products to secure his as well as his family’s future.

      • Empty nest (Children getting married)/Retirement/Old Age: Medicines, Health Products, and Necessary Items.

      A Ford Car in the neighbourhood would prompt three more families to buy the same model.

    2. Secondary Groups - Secondary groups share indirect relationship with the consumer. These groups are more formal and individuals do not interact with them on a regular basis, Example - Religious Associations, Political Parties, Clubs etc.

  2. Role in the Society

    Each individual plays a dual role in the society depending on the group he belongs to. An individual working as Chief Executive Officer with a reputed firm is also someone’s husband and father at home. The buying tendency of individuals depends on the role he plays in the society.

  3. Social Status

    An individual from an upper middle class would spend on luxurious items whereas an individual from middle to lower income group would buy items required for his/her survival.

Article Written by

MSG Team

An insightful writer passionate about sharing expertise, trends, and tips, dedicated to inspiring and informing readers through engaging and thoughtful content.

Leave a reply

Your email address will not be published. Required fields are marked *

Related Articles

Cultural Factors affecting Consumer Behaviour

MSG Team

Stages in Consumer Decision Making Process

MSG Team

Social Media Impact on Consumer Behavior

MSG Team