MSG Team's other articles

9498 Green Washing, Corporate Spin and CSR

As for superficial attempts to practice CSR, the term “green washing” gives an instance of how the aims of CSR are subverted. Green Washing refers to the practice of the corporate spin employed by a company in declaring itself to promoting environmentally friendly policies whereas in reality, the company does not live up to the […]

8817 Customer Relationship Management – What is CRM ?

Every business unit emphasizes on spurting a long term relationship with customers to nurture its stability in today’s blooming market. Customer’s expectations are now not only limited to get best products and services, they also need a face-to-face business in which they want to receive exactly what they demand and in a quick time. Customer […]

12904 Strategic Management: Core Competency Theory of Strategy

Core Competency Theory The core competency theory is the theory of strategy that prescribes actions to be taken by firms to achieve competitive advantage in the marketplace. The concept of core competency states that firms must play to their strengths or those areas or functions in which they have competencies. In addition, the theory also […]

10379 Different Modes of Market Entry for International Retailers

In any international business, the market conditions in the foreign market as well as the political, economic and social environments and their stability happens to be the common factors that shape the expansion strategies of the Companies. While the international retail Companies choose to expand their operations across foreign markets, they do so as a […]

8823 What is a Market – Definition and Different types of Markets

A set up where two or more parties engage in exchange of goods, services and information is called a market. Ideally a market is a place where two or more parties are involved in buying and selling. The two parties involved in a transaction are called seller and buyer. The seller sells goods and services […]

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