Module 5 Module 5 Module 5 Module 5
Module 5 Presentation Readings Assignments

Go on to Part 4 - How Consumers Make Choices - External Factors
Go back to Part 2 - Developing a Consumer Culture

How Consumers Make Choices - External Factors

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One reason people consume is to meet their self-imposed "needs". Another is to find solutions to problems they either have or think they have.

Cathy shopping
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©2017, Cathy Guisewite

External Factors Influencing Consumption

There are at least six major external factors influencing what you consume:

1) The general culture

2) Your bounded culture

3) Your economic class

4) Your social group

5) Your reference group

6) Your family and friends

4) Your Social Group

Social groups tend to share the same class characteristics, but they live in similar geographic settings. Since we tend to socialize with people like ourselves, they also tend to share similar physical attributes.

Because of the additional impact of personal influence, social groups tend to be a more powerful influence than economic class.

For example, the spending habits of pre-teen girls cross class boundaries.

These patterns can often merge into a single influence. For example, a bounded culture that shares class characteristics and is also a social group can have a powerful impact on people. This helps explain the power of gangs or cliques or peer pressure.

The appeal of bounded cultures is so great that mainstream marketers are using bounded culture images and themes in their ads.

"Convinced that these open-minded young men hold the secrets of tomorrow's consumer trends, the advertising giant Euro RSCG, with 233 offices worldwide, wanted to better understand their buying habits. So in a private room at the Manhattan restaurant Eleven Madison Park recently, Mr. Martinson answered the marketers' questions and schmoozed with 11 like - minded straight guys who were into Diesel jeans, interior design, yoga and Mini Coopers, and who would never think of ordering a vodka tonic without specifying Grey Goose or Ketel One."

Click here to read "Metrosexuals Come Out"

5) Reference Groups

Groups of people with shared interests. These common interests drive the group dynamics, not class or social relationships.

Fellow students would be an example. Trekkies are another. Your friends are also good reference groups.

Trekkies
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© Wise/Aldrich

The ad below celebrates one of the most common reference groups - sports fans.

"A middle-aged father of two teens himself, Lawson spent a good deal of time poring over data about how best to reach youth like Adams. He knew what buzzer Mike Ziemer, 20, so clearly articulates: 'Kids don't buy stuff because they see a magazine ad. They buy stuff because other kids tell them to.'"

Click here to read "The MySpace Generation"

This article was written in 2005 and, as you know, MySpace has been abandoned by almost everyone except bands and behind the times companies. However, the attitudes of the youth portrayed in the article are the same across all social media platforms.

6) Family and Friends

Family would be relations and living together.

Friends would include reference groups and peers.

80% of sons vote like their fathers. The majority of women in their 20's purchase the same feminine products as their mother.

Because of the force of interpersonal relationships, "word of mouth" is highly persuasive. And the newest channel for word of mouth marketing is social media. This advertisement for the Chrome browser illustrates its power.

Cathy makeup
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©2017, Cathy Guisewite

How Consumers Make Choices - External Factors

Page 2 of 2
Go on to Part 4 - How Consumers Make Choices - Internal Factors
Go back to Part 2 - Developing a Consumer Culture
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©2017, Terry Dugas

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