Discussion question should be of a 2-3 paragraph response to the initial post. Then, you must respond to two of your peers with meaningful responses.  At least 1 paragraph.  (Links to an external site.)

In your opinion, what are some Social Factors influencing consumer buying decision in today’s world?

I can’t see my peers post until I post first. Please reply by Wednesday and I will send you my peers post.

Reading Material below.

Reading : Lesson 3

Building Customer Loyalty in Intercultural Service Encounters.pdf download

Reasons for the company to appear a new Product

1. Enterprise Development

Every entrepreneur knows that productivity is one of the key factors for successful product development, which leads to enterprise development.

A well known product that has approached the highest profits, the enterprise has to think about how can cause further new innovations. The last successful product in the market presupposes a good reputation for the new product which will bring more profits to the company until it also reaches its own sale limit.

These activities help the company increase its profits and funds.

1. Product replacement

This is an inexpensive part of product development, and it can consume 50% of development time, where major commitments are typically made, involving time, money and the product’s nature.

Consequently, this reason should be considered as an essential part of development rather than something happens “before development” and its cycle time should be included in the total development cycle time (a regular development).

1. Sub occupation of production factors

There are some cases that the enterprise management realize that there is not complete (full) occupation of production factors in the company. For example: season’s products, such as the ice cream.

In some time of the year, part of the employees are suboccupated; so a new product must come out (ex. yogurt), to exploit the rest of employees and especially the full fund.

1. Taking advantage of enterprise’s reputation

The high reputation of the company creates a major commitment, setting up an easy and well coming new product in the market.

Information Search and Decision Making

Problem Recognition.  One model of consumer decision making involves several steps. The first one is problem recognition—you realize that something is not as it should be.  Perhaps, for example, your car is getting more difficult to start and is not accelerating well.    The second step is information search—what are some alternative ways of solving the problem?  You might buy a new car, buy a used car, take your car in for repair, ride the bus, ride a taxi, or ride a skateboard to work.  The third step involves evaluation of alternatives.  A skateboard is inexpensive, but may be ill-suited for long distances and for rainy days.   Finally, we have the purchase stage, and sometimes a post-purchase stage (e.g., you return a product to the store because you did not find it satisfactory).  In reality, people may go back and forth between the stages.  For example, a person may resume alternative identification during while evaluating already known alternatives.

Consumer involvement–the amount of effort a consumer puts into searching depends—on a number of factors such as the market (how many competitors are there, and how great are differences between brands expected to be?), product characteristics (how important is this product? How complex is the product? How obvious are indications of quality?), consumer characteristics (how interested is a consumer, generally, in analyzing product characteristics and making the best possible deal?), and situational characteristics (as previously discussed).

Involvement can be either temporary or permanent (enduring). In the case of temporary involvement, the consumer may not be particularly interested in the product category, but may become involved long enough to be able to make an informed decision in an important product category:

In the case of enduring involvement, the consumer remains interested in the category–usually because of an inherent interest–even if he or she does not anticipate making a purchase immediately.  For example, many “geeky” individuals spend a great deal of time reading computer magazines when new issues come out:

When the purchase has been made, the consumer may stop giving much attention to that product category.

It is important to consider the consumer’s motivation for buying products.  To achieve this goal, we can use the Means-End chain, wherein we consider a logical progression of consequences of product use that eventually lead to desired end benefit.  Thus, for example, a consumer may see that a car has a large engine, leading to fast acceleration, leading to a feeling of performance, leading to a feeling of power, which ultimately improves the consumer’s self-esteem.  A handgun may aim bullets with precision, which enables the user to kill an intruder, which means that the intruder will not be able to harm the consumer’s family, which achieves the desired end-state of security.  In advertising, it is important to portray the desired end-states.  Focusing on the large motor will do less good than portraying a successful person driving the car.

Information search and decision making.  Consumers engage in both internal and external information search. 

Internal search involves the consumer identifying alternatives from his or her memory.  For certain low involvement products, it is very important that marketing programs achieve “top of mind” awareness.  For example, few people will search the Yellow Pages for fast food restaurants; thus, the consumer must be able to retrieve one’s restaurant from memory before it will be considered.  For high involvement products, consumers are more likely to use an external search.  Before buying a car, for example, the consumer may ask friends’ opinions, read reviews in Consumer Reports, consult several web sites, and visit several dealerships.  Thus, firms that make products that are selected predominantly through external search must invest in having information available to the consumer in need—e.g., through brochures, web sites, or news coverage.

A compensatory decision involves the consumer “trading off” good and bad attributes of a product.  For example, a car may have a low price and good gas mileage but slow acceleration.  If the price is sufficiently inexpensive and gas efficient, the consumer may then select it over a car with better acceleration that costs more and uses more gas.  Occasionally, a decision will involve a non-compensatory strategy.  For example, a parent may reject all soft drinks that contain artificial sweeteners.   Here, other good features such as taste and low calories cannot overcome this one “non-negotiable” attribute.

The amount of effort a consumer puts into searching depends on a number of factors such as the market (how many competitors are there, and how great are differences between brands expected to be?), product characteristics (how important is this product?  How complex is the product?  How obvious are indications of quality?), consumer characteristics (how interested is a consumer, generally, in analyzing product characteristics and making the best possible deal?), and situational characteristics (as previously discussed).

Two interesting issues in decisions are:

• Variety seeking (where consumers seek to try new brands not because these brands are expected to be “better” in any way, but rather because the consumer wants a “change of pace,” and
• “Impulse” purchases—unplanned buys. This represents a somewhat “fuzzy” group.  For example, a shopper may plan to buy vegetables but only decide in the store to actually buy broccoli and corn.  Alternatively, a person may buy an item which is currently on sale, or one that he or she remembers that is needed only once inside the store.

A number of factors involve consumer choices.  In some cases, consumers will be more motivated.  For example, one may be more careful choosing a gift for an in-law than when buying the same thing for one self.  Some consumers are also more motivated to comparison shop for the best prices, while others are more convenience oriented.  Personality impacts decisions.  Some like variety more than others, and some are more receptive to stimulation and excitement in trying new stores.  Perception influences decisions.  Some people, for example, can taste the difference between generic and name brand foods while many cannot.  Selective perception occurs when a person is paying attention only to information of interest.  For example, when looking for a new car, the consumer may pay more attention to car ads than when this is not in the horizon.  Some consumers are put off by perceived risk.  Thus, many marketers offer a money back guarantee.  Consumers will tend to change their behavior through learning—e.g., they will avoid restaurants they have found to be crowded and will settle on brands that best meet their tastes.  Consumers differ in the values they hold (e.g., some people are more committed to recycling than others who will not want to go through the hassle).  We will consider the issue of lifestyle under segmentation.

Clarus Commerce. (2019, May 23). Why Every Moment Matters in Building Loyalty [Video]. YouTube.https://www.youtube.com/watch?v=yb_PgBiF2jE (Links to an external site.)

Directive. (2018, June 8). 5 Stages of the Consumer Decision-Making Process and How it’s Changed [Video]. YouTube. 

Reading : Lesson 4

Social Factors affecting Consumer Behavior

Consumer Behavior 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, neighbors, 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 neighborhood would prompt three more families to buy the same model.
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.https://www.managementstudyguide.com (Links to an external site.)

4 of the Biggest Factors That Affect Customer Purchase Decisions

May 17, 2018 (Links to an external site.) | Marketing (Links to an external site.) | By Shane Barker (Links to an external site.)

Management Adda. (2019, June 28). Factors influencing Consumer Behavior [Video]. YouTube. 

Buzzle. (2016, December 1). Key Factors That Influence the Buying Decisions of Consumers [Video]. YouTube. 

What makes another business more successful than yours? How is your competition affecting the purchasing decisions of customers and making so many more sales than you? As a brand, you have probably asked yourself these questions many times.

So now you’re wondering how to impact your customers (Links to an external site.)’ purchase decisions more effectively. This post will give you some easy steps to follow to boost your sales.

1. Scarcity

When a product is perceived as rare, people tend to place a higher value (Links to an external site.) on it. The more rare a product is, the more it is wanted. It doesn’t matter if the product is a costly mobile phone or simply a last cookie at a bakery.

Brands often use phrases like, “last day to grab 50% discount,” or “only 2 pieces left” to lure customers. Using the persuasion technique of scarcity, you should communicate what a consumer could lose if they don’t buy your product. If done correctly, consumers will be motivated to take action.

Many consumers believe that if a product is difficult to get, it is generally better in terms of quality. Thus, linking the availability factor to the quality factor. Brands need to communicate a feeling of urgency or a fear of missing out if a consumer is not taking action quickly.

Brands can use the following methods to trigger customers’ purchasing decisions:

• Limited Number – When a product is short of supply or will no longer be available once it is out of stock.
• Limited Time – When the product is available for a limited period of time.
• One-of-a Kind Specials – You can use one or both of the above-mentioned methods to create a one-of-a-kind special.
• Competitions – Users are often more interested in buying a product when others are also interested in buying it. This method is usually used during bids or auctions.

Good examples of scarcity can be found on Groupon (Links to an external site.). It is a deal site offering huge discounts on various products and services. The website uses limited time and quantity tags, and a small hourglass image. It develops a sense of urgency and scarcity to encourage consumers to make a purchase before they miss the opportunity.

Amazon (Links to an external site.) also uses the scarcity principle really well. In the image below, you will noticed a bold, green highlighted tag, “only 2 left in stock.” In this case, the limited number of the item is combined with the urgency of a limited-time, one-day shipping offer. This is one of the most effective ways of pushing customers to take actions.

1. Consistency and Convenience

Once they make a choice or decision, customers generally stick to it. It is because of convenience that customers usually stand by the decision they make regardless of so many other choices.

Brands can use this principle to convince the customer and get them to commit. Once the customer is committed, out of compulsion, they will stick to the decision and complete their purchase.

It is the nature of people to be comfortable and consistent with things they have done previously. Customers ensure that their actions are lined up with their intentions to maintain consistency. By asking for small commitments from the customer, brands can initiate and activate the consistency aspect among customers.

Filling out forms on any website is a classic example of consistency and convenience. Customers start out by filling out one quick, simple, and easy form, which later leads to a page asking for a much more detail information.

Upworthy (Links to an external site.) is a startup devoted to publishing uplifting stories that go viral on social media. When you visit their website and start to read an enticing story, a pop-up window comes up. The pop-up window shows messages like “I support equality for all,” with an agree and a disagree button below it. Now you would probably think that clicking “agree” won’t be of any harm and click it.

But the moment you click a button, the website draws you in with another pop-up email signup form. After filling in the form, you will keep getting more stories from Upworthy. All this method needs is a small commitment from the website visitor.

Brian Clark is the founder of Copyblogger (Links to an external site.), which sells content marketing software. On the website’s homepage, after scrolling a bit down, you’ll notice a huge headline. The headline invites visitors to capture the opportunity for a free online marketing courses from the company.

Obviously, this is a type of public commitment. It helps increase the chances that you will purchase one of their products like Synthesis or Scribe.

1. Social Proof

Knowingly or unknowingly, people always observe what other people are doing. There is a sense of satisfaction in knowing that other people are also doing the same thing as you. This means in situations when a consumer doesn’t know what to do, they simply observe other consumers. And they will often do the exact same thing that others are doing.

Brands can use this strategy effectively to increase their sales. Marketing advertisement usually uses endorsements or reviews (Links to an external site.) from other customers. These can influence the decisions of potential customers. Did you know almost 90% of customers (Links to an external site.) like to read an online review before making any decision on whether or not to buy a product?

Many companies showcase the number of products being sold or the number of satisfied customers they have. This is all about social proof. During sales, brands can use this data as social proof for pitching a new set of possible buyers. It’s a way of saying, “Look, other people love us and you will too.”

The objective of social proof is to showcase that consumers are using and also loving your product. So, take advantage of the opportunity to toot your own horn about your products and services to the people.

Amazon (Links to an external site.) uses this method. They show the ratings and reviews from real customers. You can also use videos and/or written reviews and testimonials. The positive feedback from existing customers can really push potential users to go through with a purchase.

Online clothing company, Modcloth (Links to an external site.), uses this strategy to increase their sales and conversion rates. The company has a big online community. They encourage their buyers to vote for a particular style, which the company will sell in the future. These styles are showcased with a “‘Be the Buyer Pick” badge. Displaying this badge tells shoppers that other customers love this particular item.

Just like reviews or testimonials, images of products also play an important role in people’s purchasing decisions. The way your product looks can hugely impact your sales. When a consumer is shopping, the factor that can quickly help them decide to make a purchase is a product image.

According to the BigCommerce product photography guide (Links to an external site.), people look for proof of a product’s quality and value when they’re viewing a product page. And the quality of the product image testifies for the quality of the product.

1. Authority

Expertise is a vital part of persuasion and influence. Regardless of the field, consumers often look to experts for tips and advice. And being obedient to authorities is something that is embedded in us since childhood.

When a famous influencer has given positive feedback about your products or services, display it on your website. Putting it on the pricing page or landing page will definitely increase your sales.

Any big celebrity, sports player, or thought leader that your target customers believe in can be a good choice to represent your brand. If a brand is promoting a food product, for instance, they could collaborate with professional chefs who could sway the target audience.

ShoeDazzle (Links to an external site.) is an online startup and women’s shoes and accessories retailer. And Kim Kardashian is a co-founder and chief fashion stylist. Because of her expertise in the fashion world, Kim is an influencer and authority personality among young female shoppers.

To promote yourself and your expertise, you can conduct “ask me anything” (AMA) sessions at regular intervals or times. You can participate in communities who organize them regularly if you cannot do it all by yourself. There are many online marketing expert agencies that participate in AMA sessions organized by Inbound (Links to an external site.).

Final Thoughts

All these methods, if done correctly, they can help you generate more conversions and boost sales. Let us know in the comment section below if you have any tips or strategies to add. We’d also love to hear how your brand has used these tactics to impact customer decisions.

Posted in Marketing (Links to an external site.)

About the Author: Shane Barker (Links to an external site.)

Shane Barker is a digital marketing consultant, named the #1 social media consultant in the nation by PROskore Power Rankings. He has expertise in business development, online marketing and is an SEO specialist who has consulted with Fortune 500 companies, government agencies, and a number of A-list celebrities.

https://www.searchenginepeople.com

First peer below

What are the social factors that are influencing buying decisions in today’s world, social media. However, there are many factors that contribute to consumer buying decisions. Culture is one of the main factors that contribute to consumer buying decisions. Example of this is demonstrated in the poorest communities where availability, education and finances are lacking. We as humans tends to do what we see. Living in low-income areas you don’t see your neighbors driving new cars, kids riding new bikes, wearing new clothes and etc. There is no grass to cut, backyard to relax in and no access to internet. The individual is groomed to only buy products and services that his/her limited view has shown. Nothing! The books has been taking away culturally which limits one dreams and know-how.

On the other hand, when culture has been revealed to a person his/her buying habits takes on a whole different behavior. One will tend to purchase according to their financial and education level. Being influenced by neighbors, co-workers, his/her own ideas, family members and friends.

Second peer below

Consumers choose to buy things for many different reasons. Some of the reason that we buy things is because we have need for things, these are the things we need to live. Even then the buyer has many choices when to make when choosing to buy everyday items such as food, household products and food. All these decisions can be influenced by family, friends, and others in the society that they may know. One on the main roles that I see as a social factor influencing consumers is the need to fit in to these groups that are considered being in the in crowd. People spend all types of money to be excepted by other people. From buying clothes, homes in certain neighborhoods and fancy cars. Although this is fun and exciting it is could be pushing people to the limit to do what ever it takes to fit in when they truly cannot afford it. Another thing that I see happening that has been around forever with women is the need to try to earn the title as best dressed in the workplace. Most of the time the need to purchase new clothes nowadays is not based on need it is a want. Have you visited a thrift store lately? It is full of new tag items that have never been worn. We are being influenced to buy just because others are buying.

Another social factor that is contributing to help influence customers to buy in the role that people play in society. When you are in a certain position within the community you feel obligated that there are certain social clubs that you should belong to. Because people feel this way this help promote the new golf clubs’ communities and recreations that are around these high-priced clubs. Here is an example if a new surgeon moves to town with his family once he starts to work at the local hospital and immediately feel the need to fit in so from there he will become influence with gold courses, New home developments, and private school. Before long he will fit in to the social environment that fits his lifestyle.