Page 71 - DMGT550_RETAIL_MANAGEMENT

Retail Management

Notes the best. The consumer may research a few options, but the search is not as thorough, or as time
consuming, as with a higher priced item.
Extensive Decision Making

Purchases for high priced electronics, such as a television, computer or camera, or major purchases
such as a home or car require consumers to use extensive decision making. Consumers spend
substantial amounts of time researching a high number of potential options before they buy.
They speak with trusted friends, family, colleagues and sales professionals, and read reviews
and ratings online and in consumer magazines. The decision making process lasts longer, as the
consumer is investing a substantial amount of money.

Did u know? A consumer making a purchase is affected by personal, phychological and
social factors.
4.4 Social Factors Influencing the Buying Process

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:
1. Reference Groups

2. Role in the Society
3. Status in the society

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:

Primary Group

It consists of individuals one interacts with on a regular basis.
Primary groups include:
1. Friends

2. Family Members
3. Relatives
4. Co-workers

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