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Your assignment is to prepare and submit a paper on social factors in consumer decision making process.

Your assignment is to prepare and submit a paper on social factors in consumer decision making process. Running head: CONSUMER BEHAVIOR Social factors in Consumer decision making process [Supervisor’s Social factors in Consumer decision making process

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The social factors that influence the consumer’s decision making process are family, culture and reference groups. The social factor in which the decisions of purchasing a product or a service depends on the participation of all family members is said to be family social factor. This is because a certain product or a service would be consumed by entire family members and whenever a particular service or a product is bought by a family they would consider the needs of all family members (Grewal & Levy, 2011). The mutual spending of the family members exceeds the expenses of an individual family member and this affects the decision making process of the whole family. For example, if a family considers purchasing a house, then all the family members would participate in the decision making because they would all be living in the same house. It is possible that each family member might propose a different opinion but the final purchase decision rests with the head of the family (Grewal & Levy, 2011).

Reference group is the other social factor in which an individual makes a decision of purchase on the basis of the other person’s feelings, beliefs and behaviors. A reference group of a consumer might include friends, family or the person to which an individual is inspired with. These reference groups have an impact on the decision making process of a consumer in three ways (Grewal & Levy, 2011). Either the reference group would offer information to an individual or they might reward a consumer for purchasing a specific product or a service. These reference groups enhance the self-image of a consumer because they affiliate themselves with the reference group in purchasing decision. It is the group to which a consumer relates itself and aspires to and they make a comparison while evaluating one’s performance. For example, in a purchase decision of a house a consumer might get influenced by his best friend who thinks particular house has a great view. The best friend would be considered as a reference group because of which a consumer got influenced in buying a house (Grewal & Levy, 2011).

A group of people that shares a common belief, customs and values are considered to have a same culture and this also influences a consumer in the purchase decision. These cultures can be the reference groups and can guide the decision of purchasing a product or a service. For example, if a consumer has been raised from his childhood for caring about the environment and is strictly against the people who pollute the environment then he might purchase a house that would be environmental friendly. He would even use the appliances that would not affect the environment (Grewal & Levy, 2011).

These social factors have a major impact in the decision making of buying a house because a consumer is inspired with them. A consumer has to involve his family in purchasing a house because a house is consumed by entire family member. A consumer might get influenced by the person with whom he is inspired and the environmental friendly culture of a person might force him to buy an environmental friendly home.

Reference

Grewal, D., & Levy, M. (2011). Marketing second edition. New York: McGraw-Hill Education.