Professional Documents
Culture Documents
Structure
8
3.0 Objectives
3.1 Introduction
3.2 Meaning of Consumer Environment
3.3 Family Environment
3.3.1 Structural Aspects
3.3.2 Family Life Cycle
3.3.3 Family Roles and Decision Making
3.4 Dimensions of Consumer Environment
3.4.1 Economic Environment
3:4.2 Social Environment
3.4.3 Cultural Environment
3.5 Changes in the Consumer Environment
3.6 Let Us Sum Up
3.7 Key Words
3.8 Some Useful Books
3.9 Answers to Check Your Progress Exercises
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3.0 OBJECTIVES
This unit deals with consumer environment which influences consumers' buying deci-
sions. A study of the environmental factors affecting consumer behaviour should enable
you to:
recognise the influence of the family environment.
explain the economic factors affecting consumer behaviour.
identify the social classes which exercise a considerable influence on buyer's
behaviour.
a appreciate the impact of cultural environment.
analyse changes in the consumer environment brought about by economic reforms
and globalisation.
3.1 INTRODUCTION
All consumers are subject to the influence of several environmental factors and these
have an important bearing on their behaviour. The family, as well as economic, social
and cultural forces taken together constitute the consumer's environment. Thus, the
economic activities of a consumer are conditioned by several internal and external
influences.
In a dynamic and complex socio-economic environment, the consumer of today is
exposed to a large variety of new products and services.
Consumers to-day are also conscious of their rights a& wants to be assured of right
quality of goods being available at the right price. It is in this context that the concept of
'Caveat Vendor' - let the seller beware - is replacing the term 'Caveat Emptor' - let
the consumer beware.
Besides, market conditions have been changing with technological changes, innovations
a, befoe. ThecoSe of developing new producfs have also been imeasing en0mous1y
each year, while the risk of failure haunfs the dreams of enmpeneurs.
3.2 MEANING OF CONSUMER ENVIRONMENT
A comprehensive approach to consumer environment should recognise that man is a
complex being, and that any explanation of his economic decisions which does not take
note of his psychological make-up, the society in which he lives, and the cultural
background that flavours his orientation towards life, is likely to result in unsound
business decisions by manufacturers and distributors of a very wide range of goods.
The consumer environment can be broadly classified as external and internal. The
external environment to be discussed in detail in this unit comprise the various economic,
social and cultural forces that are beyond the control of individual consumers.
The psychological factors that are internal to the consumer include cognitions, attitudes,
motivation, personality and interpersonal response traits.
1 LE
I:E
i , 11 nz~I?.y, AND
iCONSUMERS
BUYING
DECISIONS
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3) What is a family life cycle ?
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3.4 DIMENSIONS OF CONSUMER ENVIRONMENT
After analysing
also increase the shopper's efficiency and help to call consumers attention to new prod- Consumer Environment
ucts that might benefit them.
Packaging which imparts benefits such as protection, economy and convenience, also in-
fluence buyers' decisions.
d) Price Considerations
Inspite