influence of groups

Question 1

what is influence from groups

Answer 1

Karamoutsou 2024: A change of an individual’s evaluations, judgments, beliefs and attitudes due to exposure to another individual’s evaluations, judgments, beliefs and attitudes

• Proved by Milgrams Schock experiment

Question 2

Types of groups that influence

Answer 2

• Family
• Friends
• Social norm
• Brand community
• Consumption subcultures
  Virtual community

Question 3

what reference group is most influential

Answer 3

Karamoutsou 2024:
Of all the reference groups we are exposed to, the family is ‘probably’ the most powerful in influencing consumer decision making

Question 4

what is a family

Answer 4

Karamoutsou 2024: The typical European family is no longer one with two parents living with their children at home.

however Comes in many different forms such as nuclear, single parents and more

Question 5

what is the concept of the family life cycle

Answer 5

(FLC) (Zubin 2023)
* The FLC combines trends in income and family composition with the changes in demands for goods and services placed upon this income.

• As people grow older, their wants and preferences for goods and services change. At the same time income levels tend to rise (until retirement).
• A life cycle approach assumes that pivotal events alter role relationships and trigger new stages of life, which modify our priorities

Question 6

what is Single Stage and spending habits

Answer 6

Single Stage (Zubin 2023)
* Lower earnings, lower outgoings hence potentially high discretionary income. Tend to be fashion and recreation oriented (clothes, music, alcohol, eating out, holidays or ‘mating game’ products). Also, they often buy cars and items for their first residence away from home

Question 7

Full nest I

Answer 7

Full nest I (Zubin 2023)
* One parent usually stops working so family income will drop. New needs to fit the new born baby: furniture, baby food, vitamin, toys, nappies. Savings decline and the couple is unsatisfied by their financial position.

Question 8

what is Full nest III and their spending habits

Answer 8

Full nest III (Zubin 2023)
* Family income improves as children become older. Both parents are likely employed and both careers may be progressing. Children may making some money through PT jobs. A second car, replacement furniture, some luxury items and children education are typical purchases

Question 9

what is Empty nest II and spending habits

Answer 9

Empty nest II (Zubin 2023)
* The main breadwinner retires; income drops. Expenditure is more health oriented and over-the-counter products. Often, a smaller house is bought and the couple may move to an apartment or even a warmer country (Spain, S. France, Greece

Question 10

Importance of family for marketers

Answer 10

(karamoutsou 2024)
* Singletons do not have the combined earning capability of a couple. This can be an expensive experience in high-cost cities, curving purchasing power

• More single-person households means fewer children and an ageing population.

Question 11

Impacts of more single people than families for marketers

Answer 11

(karamoutsou 2024)
* Demand for family goods and services will see a decline since there will be fewer families.

• However, singletons will drive growth in other sectors, (leisure and recreation), as they frequent nightlife spots having more time to dedicate to going out.
• Singletons are also major drivers of technology (typically early adopters). Sectors like video games, online dating or gambling could benefit.
• Singletons are much likely to boost demand in sectors like fashion trends, in particular apparel and accessories.
• The large number of elderly people occupying single person homes is enhancing demand for remote healthcare services, including day-cares, e-health and mobility-assisting devices.

Question 12

Family decision making styles

Answer 12

karamoutsou 2024
* Consensual purchase decisions
○ where the family group agrees
on the desired purchase,
differing only in terms of how it
will be achieved.

• Accommodative purchase decisions
  ○ where family members have
  different preferences or
  priorities and cannot agree on
  a purchase that will satisfy the
  minimum expectations of all
  involved.
• Authoritarian purchase decision
  ○ where the decision maker
  assumes full responsibility in
  making a purchasing decision,
  with or without any input from
  the influencer!
  - A surprise dinner

Question 13

teenagers impact for marketers

Answer 13

Teenagers: Karamoutsou

• Use products for experimentation, independence, approval from others, express their identity, rebel against parents
• More disposable income from part time jobs and pocket money
• Most materialistic generation of young people in history
• Buy feel-good products such as cosmetics and fast-food
• Many teenagers judge one another based on the brands they wear; peer pressure