FINAL EXAM REVIWER Providing superior customer value

MEL 3113 – CONSUMER BEHAVIOR requires the organization to do a

-------------------------------------------------- better job of anticipating and
------- reacting to customer needs than the
competition does. This is the essence
1ST REPORTERS of a good marketing strategy.

Introduction
Consumer behavior is the study of MARKET ANALYSIS COMPONENTS
consumers and the processes they use to Market analysis requires a thorough
choose, use (consume), and dispose of understanding of the organization’s own
products and services, including capabilities, the capabilities of current
consumers’ emotional, mental, and and future competitors, the consumption
behavioral responses. Understanding process of potential customers, and the
consumer behavior is crucial for economic, physical, and technological
businesses to create effective marketing environment in which these elements will
strategies that can influence consumers’ interact.
decision-making processes.
The Consumers
Informed Individuals - Most
economically developed societies are It is not possible to anticipate and react
legitimately referred to as consumption to customers’ needs and desires without
societies. Most individuals in these a complete understanding of consumer
societies spend more time engaged in behavior. Discovering customers’ needs
consumption than in any other activity, is a complex process, but it can often be
including work or sleep (both of which accomplished by marketing research.
also involve consumption). Therefore, The Company
knowledge of consumer behavior can
enhance our understanding of our A firm must fully understand its own
environment and ourselves. Such an ability to meet customer needs. This
understanding is essential for sound involves evaluating all aspects of the
citizenship, effective purchasing firm, including its financial condition,
behavior, and reasoned business ethics. general managerial skills, production
capabilities, research and development
MARKETING STRATEGY AND capabilities, technological sophistication,
CONSUMER BEHAVIOR reputation, and marketing skills.
To survive in a competitive environment,
an organization must provide its target
customers more value than is provided to The Competitors
them by its competitors. Customer It is not possible to consistently do a
value is the difference between all the better job than the competition of
benefits derived from a total product and meeting customer needs without a
all the costs of acquiring those benefits. thorough understanding of the
It is critical that a firm consider value competition’s capabilities and strategies
from the customer’s perspective
In addition, for any significant marketing 3. Describing each group.
action, the following questions must be 4. Selecting an attractive segment(s) to
answered: serve.
1. If we are successful, which fi rms Product-Related Need Sets
will be hurt (lose sales or sales
Organizations approach market
opportunities)?
segmentation with a set of current and
2. Of those firms that are injured,
potential capabilities. These capabilities
which have the capability (financial
may be a reputation, an existing product,
resources, marketing strengths) to
a technology, or some other skill set. The
respond?
first task of the firm is to identify need
3. How are they likely to respond
sets that the organization is capable, or
(reduce prices, increase
could become capable, of meeting. The
advertising, introduce a new
term need set is used to reflect the
product)?
fact that most products in developed
4. Is our strategy (planned action)
economies satisfy more than one
robust enough to withstand the
need. Thus, a watch can meet more
likely actions of our competitors, or
needs than just telling time.
do we need additional contingency
plans? Customer needs are not restricted to
product features. They also include types
The Conditions
and sources of information about the
The state of the economy, the physical product, outlets where the product is
environment, government regulations, available, the price of the product,
and technological developments affect services associated with the product, the
consumer needs and expectations as well image of the product or firm, and even
as company and competitor capabilities. where and how the product is produced
MARKET SEGMENTATION Identifying the various need sets that the
fi rm’s current or potential product might
Perhaps the most important marketing
satisfy typically involves consumer
decision a fi rm makes is the selection of
research, particularly focus groups and
one or more market segments on which
depth interviews, as well as logic and
to focus. A market segment is a
intuition. These need sets are often
portion of a larger market whose
associated with other variables such as
needs differ somewhat from the
age, stage in the household life cycle,
larger market. Since a market segment
gender, social class, ethnic group, or
has unique needs, a fi rm that develops a
lifestyle, and many fi rms start the
total product focused solely on the needs
segmentation process focusing first on
of that segment will be able to meet the
one or more of the groups defined by one
segment’s desires better than a firm
of these variables.
whose product or service attempts to
meet the needs of multiple segments Customers with Similar Need Sets
Market segmentation involves four steps: The next step is to group consumers with
similar need sets. This step generally
involves consumer research, including
1. Identifying product-related need sets.
focus group interviews, surveys, and
2. Grouping customers with similar need
product concept tests (see Appendix A).
sets.
It could also involve an analysis of It is the combination of these elements
current consumption patterns. that meets customer needs and provides
customer value.
Description of Each Group
Product
Once consumers with similar need sets
A product is anything a consumer
are identified, they should be described
acquires or might acquire to meet a
in terms of their demographics, lifestyles,
perceived need. Consumers are generally
and media usage. Designing an effective
buying need satisfaction, not physical
marketing program requires having a
product attributes.
complete understanding of the potential
customers Communications
Marketing communications include
Attractive Segment(s) to Serve
advertising, the sales force, public
Once we are sure we have a thorough relations, packaging, and any other
understanding of each segment, we must signal that the firm provides about itself
select our target market—that and its products. An effective
segment(s) of the larger market on which communications strategy requires
we will focus our marketing effort. This answers to the following questions:
decision is based on our ability to provide
1. With whom, exactly, do we want to
the selected segment(s) with superior
communicate?
customer value at a profit.
2. What effect do we want our
It is important to remember that each communications to have on the
market segment requires its own target audience?
marketing strategy. Each element of the 3. What message will achieve the
marketing mix should be examined to
determine if changes are required from
one segment to another. Sometimes each
segment will require a completely
different marketing mix, including the
product. At other times, only the
advertising message or retail outlets may
need to differ.

MARKETING STRATEGY
Marketing strategy is basically the
answer to the question, how will we
provide superior customer value to our
desired effect on our audience?
target market?
4. What means and media should we
The answer to this question requires the use to reach the target audience?
formulation of a consistent marketing 5. When should we communicate with
mix. The marketing mix is the product, the target audience?
price, communications, distribution, and
Price is the amount of money one must
services provided to the target market.
pay to obtain the right to use the
product. One can buy ownership of a
product or, for many products, limited relative to competing products and
usage rights (i.e., one can rent or lease brands.
the product, as with a video).
Sales and profits are critical outcomes,
It is important to note that the price of a as they are necessary for the firm to
product is not the same as the cost of the continue in business. Therefore, virtually
product to the customer. Consumer all fi rms evaluate the success of their
cost is everything the consumer must marketing programs in terms of sales
surrender in order to receive the benefits revenues and profits. Sales and profits
of owning/using the product. are likely to occur only if the initial
consumer analysis was correct and if the
Distribution is having the product
marketing mix matches the consumer
available where target customers can
decision process.
buy it, is essential to success. Only in
rare cases will customers go to much Customer Satisfaction Marketers have
trouble to secure a particular brand. discovered that it is generally more
Obviously, good channel decisions profitable to maintain existing customers
require a sound knowledge of where than to replace them with new
target customers shop for the product in customers. Retaining current customers
question requires that they be satisfied with their
purchase and use of the product. Thus,
Service refers to auxiliary or peripheral
customer satisfaction is a major
activities that are performed to enhance
concern of marketers.
the primary product or primary service.
Individual Outcomes
Need Satisfaction The most obvious
--------------------------------------------------
outcome of the consumption process for
-------
an individual, whether or not a purchase
2ND REPORTERS is made, is some level of satisfaction of
the need that initiated the consumption
Consumer Decisions - The consumer
process.
decision process influences the success
of a company's marketing strategy. It
determines the outcomes of the
company's marketing mix, ensuring
consumers see a need, become aware of
the product, decide it's the best solution,
and are satisfied with the purchase. The
stages include problem recognition,
information searching, evaluation of
Injurious consumption occurs when
alternatives, making the decision and
individuals or groups make consumption
post-purchase evaluation. It is a base for
decisions that have negative
marketers to devise customer-oriented
consequences for their long-run well-
strategies.
being.
Product Position - The most basic
Society Outcomes
outcome of a fi rm’s marketing strategy
is its product position — an image of the Economic Outcomes The cumulative
product or brand in the consumer’s mind impact of consumers’ purchase decisions,
including the decision to forgo demographics, social status, reference
consumption, is a major determinant of groups, family, and marketing activities.
the state of a given country’s economy.
 Culture: Culture is a society’s
Consumers’ decisions on whether to buy
personality and includes patterns
or to save affect economic growth, the
of meaning acquired by members
availability and cost of capital,
of society expressed in their
employment levels, and so forth. The
knowledge, beliefs, values, art,
types of products and brands purchased
laws, morals, customs, and habits.
influence the balance of payments,
 Subculture: Subcultures are
industry growth rates, and wage levels.
cohesive groups that exist within a
Physical Environment Outcomes larger culture. Subcultures develop
Consumers make decisions that have a around communities that share
major impact on the physical common values, beliefs, and
environments of both their own and other experiences.
societies.  Demographics: Demographics
refer to the statistical
Social Welfare Consumer decisions
characteristics of human
affect the general social welfare of a
populations such as age, gender,
society. Decisions concerning how much
income level, education level,
to spend for private goods (personal
occupation, and family size.
purchases) rather than public goods
 Social status: Social status refers
(support for public education, parks,
to the position or rank of an
health care, and the like) are generally
individual or group within a society.
made indirectly by consumers’ elected
Social status can be determined by
representatives. These decisions have a
factors such as income level,
major impact on the overall quality of life
education level, occupation, and
in a society.
family background.
The Nature of Consumer Behavior  Reference groups: Reference
groups are groups of people that
individuals compare themselves to
when making decisions about their
behavior or attitudes.
 Family: Family is an important
external influence on consumer
behavior. Family members can
influence each other’s attitudes
and behaviors towards products or
services.
 Marketing activities: Marketing
activities such as advertising and
promotions can also influence
External influences are factors that consumer behavior.
affect consumer behavior and are beyond Internal influences involve perception,
the control of the individual. These learning changes in long-term memory,
factors include culture, subculture, motivation, personality, and emotion.
Attitudes are an enduring organization of
motivational, emotional, perceptual, and influences on the consumer decision
cognitive processes related to an process.
environment. They are the way a person
Regulations in consumer behavior aim
thinks, feels, and acts towards an aspect
to protect consumers from trade
of their environment, such as a retail
malpractices and substandard or
store, television program, or product.
hazardous products. They also ensure
Attitudes are heavily influenced by
that consumers have access to accurate
external and internal factors, shaping
information about products and services
how individuals perceive, respond, and
they are interested in purchasing.
act towards their environment.
Organizations such as the National
 Perception refers to how
Consumer Affairs Council (NCAC) in the
consumers interpret information
Philippines are responsible for improving
from their environment.
the management, coordination, and
 Motivation is the driving force
effectiveness of consumer programs.
behind why consumers make
certain decisions. The Meaning of Consumption
 Memory refers to a consumer’s
The study of consumer behavior
ability to understand marketing
examines how consumers choose what
messages and assign them value
they buy, need, want, or do in relation to
and meaning.
a given good or service or business.
 Personality is an internal
Consumption, which refers to the process
evaluation expressed outwardly
of consuming up products and services
about a person, object or issue.
by consumers, is a basic component of
 Emotions are feelings that
consumer behavior. The social, economic,
influence how consumers think and
and cultural views all have an impact on
behave.
this complicated phenomena.
 Attitudes are internal evaluations
expressed outwardly about a
person, object or issue.
Self-concept is the totality of an
individual’s thoughts and feelings about
him- or herself.
Lifestyle is, quite simply, how one lives,
including the products one buys, how one
uses them, what one thinks about them,
and how one feels about them.
Consumer decisions result from
perceived problems and opportunities. The Concept of Culture
We will use the term problem to refer
both to problems and to opportunities. Culture is the complex whole that
Consumer problems arise in specific includes knowledge, belief, art, law,
situations and the nature of the situation morals, customs, and any other
influences the resulting consumer capabilities and habits acquired by
behavior. Therefore, we provide a humans as members of society.
detailed discussion of situational
Culture values give rise to norms and 
To what extent does one
associated sanctions, which in turn have a life-long obligation to
influence consumption patterns. numerous family members?

Extended family critical in
Cultures are not static. They typically South/Central America
evolve and change slowly over time.
Masculine/ Feminine

To what extend does social
power automatically go to
power?

Competitive/ Cooperative

Does one obtain success by
excelling over others or by
cooperating with them?
Variations in Cultural Values
Diversity/ Uniformity
The numerous values that differ across
cultures and effect consumption include:

Does the culture embrace
variation in religious belief,
 Other-Oriented Values ethnic backgrounds, political
 Reflect a society’s view of the views, and other important
appropriate relationship behaviors and attitudes?
between individuals and groups
within that society.  Environment-Oriented Values
 Prescribe a society’s relationship
Individual/Collective to its economic and technical as
well as its physical environment

Are individual activity and Cleanliness
initiatives valued more highly  To what extent is cleanliness
than collective activity and pursued beyond the minimum
conformity needed for health?

Asian culture more collective Performance, Status
U.S culture more
 Is the culture’s reward system
individualistic (eating alone)
based on performance or on
(China age differenced)
inherited factors such as family
Youth/Age or class?
Tradition, Change

Is family life organized to
meet the needs of the  Is tradition valued simply for the
children or the adults sake of tradition? Is change or

Are younger or older people progress and acceptable reason
viewed as leaders and role for altering established
models? patterns?
 A focus on technology as an
Extended/Limited Family
indicator of change illustrates
some dramatic differences
 across cultures that show the Sensual gratification/
following: Abstinence
 To what extent is it acceptable
to enjoy sensual pleasures such
as food, drink, and sex?
 Cultures differ in their
acceptance of sensual
gratification.
Material/Nonmaterial
 How much importance is placed
on acquiring material wealth?
(Televisions and Chinese)
 There are two kinds of
Risk Taking, Security materialism:
 Are those who risk their  The acquisition of items to
established positions to enable one to perform
overcome obstacles or achieve something is known as
high goals admired more than Instrumental materialism.
those who do not?  Terminal materialism is the
 A society that does not admire acquisition of items solely for
risk taking is unlikely to develop the purpose of owning the
enough entrepreneurs to object.
achieve economic change and Hard work/Leisure
growth. Is a person who works harder
Problem solving, Fatalistic than economically necessary
 Are individuals urged to solve admired more than one who
every issue, or do they adopt a does not?
"what will be, will be" mentality? Postponed gratification/
 Exists a positive, "we can do it" immediate gratification
attitude?  Are people encouraged to “save
 Mexico and the Middle Eastern for a rainy day” or to “live for
nations lean more towards the today”?
fatalistic end of the spectrum. Religious/ Secular
 To what extent are behaviors
Nature
and attitudes based on the rules
 Is nature regarded as specified by a religious doctrine?
something to be admired or
overcome?
 Self-Oriented Values --------------------------------------------------
 Reflect objectives and -------
approaches to life that the
3RD REPORTERS
individual members of society
find desirable.
Active/Passive
CULTURAL VARIATIONS IN
 Is a physically active approach
to life valued more highly than a NONVERBAL COMMUNICATIONS
less active orientation
  Differences in verbal Time Perspective
communication systems  Monochronic Time Perspective -
(languages) are immediately Most Americans, Canadians,
 obvious to anyone entering a Western Europeans, and
foreign culture. These differences Australians tend to view time as
pertains to pronunciation, timing, inescapable, linear, and fixed in
and meaning. nature. It is a road reaching into
the future with distinct, separate
TRANSLATION PROBLEMS IN sections (hours, days, weeks)
INTERNATIONAL MARKETING  Polychronic Time Perspective -
 Pet milk encountered difficulties in Most Latin Americans, Asians, and
French-speaking countries where Indians tend to view time as being
pet means, among other things, “to less discrete and less subject to
break wind.” scheduling.
 Kellogg’s Bran Buds translates to
“burned farmer” in Swedish. Space
 China attempted to export Pansy The use people make of space and
brand men’s underwear to the meanings they assign to their use of
America. space constitute a second form of
 American Airlines introduced its nonverbal communication. In America,
new leather first-class seats in “bigger is better.” Thus, office space in
Mexico with the theme “Fly in corporations generally is allocated
Leather” which, when translated according to rank or prestige rather than
literally, read “Fly Naked.” need. The president will have the largest
office, followed by the executive vice
Additional communication factors that president, and so on.
can cause problems include humor, style, A second major use of space is
and pace, for which preferences vary personal space. It is the nearest that
across cultures, even those speaking the others can come to you in various
same basic language. situations without your feeling
uncomfortable. In the United States,
Nonetheless, verbal language normal business conversations occur at
translations generally do not present distances of 3 to 5 feet and highly
major problems as long as we are careful. personal business from 18 inches to 3
What many of us fail to recognize, feet. In parts of northern Europe, the
however, is that each culture also has distances are slightly longer.
nonverbal communication systems or
languages that, like verbal languages, Symbol
are specific to each culture. An American seeing a baby
wearing a pink outfit would most likely
NONVERBAL COMMUNICATIONS assume the child to be female. If the
Time outfit were blue, the assumed gender
The meaning of time varies between would be male. Colors, animals, shapes,
cultures in two major ways:
numbers, and music have varying negotiations, is getting to know the
meanings across cultures. people involved. Americans
Examples: negotiate a contract; the Japanese
 White - Symbol for mourning or negotiate a relationship. In many
death in the Far East; purity in the cultures, the written word is used
United States. simply to satisfy legalities.
 Purple - Associated with death in
many Latin American countries. Agreements
 Blue - Connotation of femininity in Americans rely on an extensive and,
Holland; masculinity in Sweden, generally, highly efficient legal system
United States. for ensuring that business obligations are
 Red - Unlucky or negative in honored and for resolving disagreements.
Germany; positive in Denmark, Many other cultures have not developed
Argentina. such a system and rely instead on
 Yellow flowers - Sign of death in relationships, friendship, and kinship;
Mexico; infidelity in France. local moral principles; or informal
 White lilies - Suggestion of death in customs to guide business
England. conduct.
 The #7 - Unlucky number in For Example:
Singapore; lucky in Morocco, India,  Under the American system, they
United States. would examine a proposed contract
 Triangle - Negative in Hong Kong, closely.
Korea, Taiwan; positive in Colombia  Under the Chinese system, they
 Owl - Wisdom in the United States; would examine the character of a
bad luck in India. potential trading partner closely.
 Deer - Speed, grace in United
States; homosexuality in Brazil. Things
The differing meanings that cultures
Relationship attach to things, including products,
The rights and obligations imposed by make gift giving a particularly difficult
relationships and friendship are another task.
nonverbal cultural variable. As the
following quote indicates, friendship and For example:
business are deeply intertwined in most  Giving a Chinese business
of the world: customer or distributor a nice desk
 To most Asians and Latin clock—a common gift in many
Americans, good personal countries—would be inappropriate.
relationships and feelings are all o Why? In China, the word for
that really matter in a long-term clock is similar to the word
agreement. After all, the written for funeral, making clocks
word is less important than inappropriate gifts.
personal ties.  A gift of cutlery is generally
 In many countries the heart of the inappropriate in Russia, Japan,
matter, the major point of the Taiwan, and Germany.
  In Japan, small gifts are required in
many business situations, yet in How are we a global culture?
China they are less appropriate. The era of globalization has created a
 In China, gifts should be presented global culture where people around the
privately, but in Arab countries, world share experiences, ideas, norms,
they should be given in front of and symbols that unite them. Music,
others. movies, clothes, and phones in the era of
globalization are designed to appeal to a
Etiquette global market. This has helped to create
Etiquette represents generally accepted global interconnectedness.
ways of behaving in social situations.
For Example: GLOBAL DEMOGRAPHICS
 American is preparing a An important set of factors that should
commercial that shows people not be overlooked in attempting to
eating an evening meal, with one understand and respond to consumers is
person about to take a bite of food demographics. Such variables as age,
from a fork. The person will have sex, income, education, marital status,
the fork in the right hand, and the and mobility can all have significant
left hand will be out of sight under influence on consumer behavior. People
the table. To an American audience in different income brackets also tend to
this will seem natural. However, in buy different types of products and
many European cultures, a well- different qualities. Thus, various income
mannered individual would have groups often shop in very different ways.
the fork in the left hand and the This means that
right hand on the table. income can be an important variable in
Behaviors considered rude or obnoxious defining the target group.
in one culture may be quite acceptable in Example:
another.  Social Class
 Family Influences
GLOBAL CULTURES  Family Lifecycle
Global culture is a culture that is shared  Age Cohorts & Generations
by many worldwide and is based on
western ideals on consumption and CROSS-CULTURAL
attitudes towards the physical MARKETING STRATEGY
environment. Cross-cultural marketing involves
Example: advertising to people in specific cultures
 Social Media as well as appealing to personal interests
 Business across cultures. It is also refers to the
 Sports process of creating and implementing
 Holidays marketing strategies that are tailored to
 Fashion the needs and preferences of consumers
 Language from a culture that is different from the
 Food marketer's own culture or from the
 Cosmopolitanism culture of its main customer base.
 want to become and the associated
Cross-Cultural Marketing Features products or lifestyles.
Cross-cultural marketing has a number of
unique features that set it apart from
other types of marketing. One of its most
central unique features is a focus on CONSUMPTION SUBCULTURES
cultural diversity. Within the context of Consumption subcultures refer to groups
cross-cultural marketing, the term of individuals who share a common
diversity is typically defined as the interest or passion for particular
incorporation of people with a variety of products, brands, or consumption
races, ethnicities, cultures, genders, patterns. These subcultures are often
sexual orientations, religions, and characterized by their distinct values,
national origins. attitudes, and behaviors related to
Example: consumption. People within these
 Global scope subcultures may bond over their shared
 Use of cultural elements interests and engage in activities that
 Recognition of cultural differences revolve around their preferred products
or lifestyles. These groups have an
GROUP INFLUENCES ON CONSUMER identifiable, hierarchical social structure,
BEHAVIOR a set of shared beliefs or values; and
Group influences on consumer behavior unique jargon, rituals, and modes of
refer to the impact that social groups, symbolic expression.
such as family, friends, reference groups,
or online communities, have on an MARKETING AND CONSUMPTION
individual's purchasing decisions. SUBCULTURES
Marketing often plays a crucial role in
Type of Groups understanding and catering to
Reference Groups: People often consumption subcultures. the synergy
compare themselves to reference groups between marketing and consumption
and may be influenced by the subcultures allows companies to
preferences and behaviors of those they understand, engage with, and profit from
identify with. these niche consumer groups by
4 criteria thet are particularly useful: delivering products and experiences that
 Membership align with their unique identities and
 Strength of social tie interests.
o 2 types of social group:
 Primary and Secondary BRAND COMMUNITIES
group Brand communities are groups of
 Type of contact individuals who share a strong, emotional
 Attraction connection and loyalty to a particular
Aspirational Groups: Some individuals brand or product. These communities
are influenced by aspirational groups, often form organically around a brand
which represent the type of people they due to shared values, interests, and
experiences related to the brand. Brand
communities are particularly important in Marketing In Online Communities
the age of social media and online and Social Networks
engagement, as Four Guiding Principles:
they can amplify the reach and influence 1. Transparent - In online
of a brand. Companies often invest in communities it is critical that
building and nurturing these companies identify themselves and
communities to foster stronger brand any posted content as such.
loyalty and customer relationships. Marketers who fail to do so risk
Nature of brand communities being found out and subject to
 Consciousness of kind massive criticism from the
 Rituals and Traditions community.
 Moral responsibility 2. Be a part of the community - Online
communities often expect that the
company will be part of the
ONLINE COMMUNITIES AND SOCIAL community and not just market to
NETWORKS it.
An Online community is a community 3. Adapt marketing efforts to fit the
that interacts over time around a topic of nature of the site - Some sites are
interest on the Internet. more commercially oriented and
Example: Forums, discussion boards, thus more traditional forms of
chat rooms, social media groups, and banner ads and commercial
more. content are accepted and even
Social networks are websites and apps welcomed.
that allow users and organizations to 4. Take advantage of the unique
connect, communicate, share information capabilities of each venue - Many
and form relationships. of the social network sites have
Example: Facebook, Twitter, Instagram, special areas for corporate
LinkedIn, and many others allow advertising and activities that
individuals to create profiles, connect extend beyond traditional banner
with friends and acquaintances, and and pop-up ads.
share personal updates, photos, and
other content. REFERENCE GROUP INFLUENCES ON
THE CONSUMPTION PROCESS
MARKETING IN ONLINE Reference group influence, also known as
COMMUNITIES AND SOCIAL peer group influence, is a social
NETWORKS psychological concept that refers to the
Marketing in online communities and impact that individuals or groups have on
social networks is possible and the attitudes, behaviors, and decisions of
potentially beneficial. It involves the use others.
of these digital platforms to promote Three Forms of influences:
products, services, brands, or ideas to a 1. Informational influence - occurs
targeted audience. when an individual uses the
behaviors and opinions of
reference group members as
 potentially useful bits of
information.
2. Normative influence - sometimes
referred to as utilitarian influence,
occurs when an individual fulfills
group expectations to gain a direct
reward or to avoid a sanction.
3. Identification influence - also called
value-expressive influence, occurs
when individuals have internalized
the group’s values and norms.

MARKETING STRATEGIES BASED ON

REFERENCE GROUP INFLUENCES
Marketing strategies based on reference
group influences focus on leveraging the
impact of reference groups to influence
consumer behavior.
Two Strategies:
1. Personal sales strategies - are
techniques and approaches used
by sales professionals to
successfully promote and sell
products or services to potential
customers.
2. Advertising strategies - are
carefully planned and executed
approaches used by businesses
and organizations to promote their
products, services, or messages to
a target audience.