How Social Factors Predetermine Decision-Making Patterns of Customers - Essay Example

Introduction

All companies, which try to sell something to customers, should be aware of main external factors, which influence sales. Social factors act like all other important factors and influence sales and customer behaviour in substantial way. Company cannot influence customers without understanding customers’ social conditions and the target audience and its status. There is no need to offer expensive products to the people on welfare, which cannot afford even middle-class products. Offering products for customers on welfare to the wealthy customers can lead to even stronger misconducts, as higher classes need exclusive products to emphasize their status. It is the main feature of society, affiliation with certain social class needs confirmation in the form of the clothes, hand-watches, cars, etc. All these products, especially their quality and exclusiveness are particular factors, which influence decision to buy these products. Otherwise, customers will avoid them and will look for more exclusive things. With the modern ways of the advertising and fashion events, customers become aware of the main trends to show their status. Using such concerns of customers, company can develop the strategy to address this demand. However, to deeply understand how customers make their decisions, one should underline main driving factors of various groups of customers.

Aspirational groups

The main factors are aspirational and reference groups. They relate to social groups where customers live and act, thus, they (groups) influence customer behaviour. Groups are mostly associated with social origin, place of residence, work, etc. All these factors are important for maintaining of good marketing strategy, hence they predetermine actions and interests of target audience. Knowing all this information, company can easier target customers and maintain better marketing techniques. However, social and reference groups can influence customers without any efforts of the company, because there are situations, when customer want to achieve certain level and will imitate the things, which people with higher social position use. It is called aspirational group. This group influences customers, as they want to achieve the same level or position, thus, they will purchase status items, expensive things and will adhere to main trends, which are important for higher-class people. Thus, this part of the social interaction can influence customer behaviour and provide more opportunities for businesses.

Most people want to be part of the group that is popular in society, here works the same aspirational group that forces people to consume products, which are popular among fashionable people. Thus, major companies, which use all range of marketing strategies include in advertisement special features, which emphasize the fact that certain product can help to get new social position or to improve the social image of individual. It influences the decision-making patterns and results in more consumption of the social items.

Figure 1. Example of connection of social classes with purchases

Main factor that predetermines such choice of cars is associated with social roles and status, wealthy people prefer expensive cars to show their difference from people on welfare. Cars and jewelry were always indicators of the income and social status. It changes the desire to purchase some particular products. There are lower class people, who may want to be closer to higher classes and they purchase the same products as higher ones.

To understand the customer’s demand for certain product, company should make multiple surveys to analyze the customers and their social class to know the main target audience. In the process of market segmentation many companies define what is their main customers. From the social point of view, they define the social class they will work for; hence there are products, which are attractive for certain social classes and absolutely useless for other. For instance, companies can offer services of servants, domestics and caterers – such services are very attractive for higher class members, as they need to handle some meetings and other events, while lower class people cannot afford such services, furthermore, they do not need such services. Using such study of the market, company can predict the demand from certain groups of customers. This produces better conditions for targeting of marketing strategy and advertising strategies. Products for higher classes are advertised showing some examples of the luxury life, where potential customers may need some assistance from company. While advertising for lower classes is full of the messages, which ensure the saving of money on purchasing of particular product. It helps to influence both groups of customers. There are companies, which influence desire of customers to be closer to higher class, making the advertising to show that with some of the product they will be better and more influential in the society. This method is used by most companies, which appeal to the middle or lower classes, which want to be higher or to look like them. It influences customers through the above-mentioned aspirational groups. Summing up, one should emphasize the fact that society will not treat someone to be wealthy without particular class-associated items. There are many things, which are associated with wealthy people, they usually have fashionable clothes, which are made by the famous designers. There are only few people, who are popular in society and prefer to use casual clothes. Possessing some particular qualities of some social class, people should persuade all other surrounding people that they belong to such class. It is done through purchasing of special products, which are available for certain group of customers. Thus, companies, which sell such products can maintain their operations in places, where there are many wealthy people, furthermore, companies establish their shops in elite regions of the city, which are common places for wealthy people to visit. In such a way companies increase awareness of their brand. For instance shops of the famous French shop L’Eclaireur are located in the centre of the Paris to be available for rich people, which will go for shopping.

Reference groups

Along with aspirational groups, customers can choose the product by the reference of some experienced person that is aware of the main trends in the society or just understand what products are better to emphasize their status. To use such need in the creation of the complete status, there are companies, which offer full package of products and accessories, which will be great solution for potential customers to be closer to the desired status. Knowing what they need to be, such companies can help with choice of car manufacturer, jewelry products, etc. However, this way of customers’ attraction is used not only for the higher classes. It is known fact that modern customers are not so sensitive for even good advertising, thus, another option is creation of the feedbacks and reviews, which are made by the professionals in the industry. Mostly they are hired by the company that need more customers. Such feedbacks are placed on the websites of the company to show that even professionals acknowledge the quality of products. It is made for middle-class customers, who cannot afford expensive products without strong consideration and understanding of main benefits that some particular product can provide. Thus, they need to get some insight from the experienced person or from other customers, which have already purchased the product. Referencing is quite important feature in the marketing. People afraid to use the product without the instruction of the experienced person to do so, hence customers do not want to waste money for product they would not use. It is important feature in the decision-making and overall behavior of customers.

Summing up the reference groups, one should underline that customers from other social groups are also influenced with the social marketing techniques, which are made by successful companies. It is easier to predict the choice of customer knowing requirements and expectations of various customers’ groups. Thinking of the middle-class customers, they cannot afford expensive products, however, they will pay for high-quality products, which will serve them for some time. However the choice of product can be associated with difficulties, since there are many companies, which offer just the same product. Using the reference group in the form of the advices of the people with expertise or through the developed PR strategy, company can persuade customers that purchasing products in it is the best decision. Considering the low-class customers, they are always influenced with the reference groups, however, they need confirmation from their family members or through the trustworthy reviews, which are made by their friends or other close people. It can be done through the viral marketing that is quite popular now. Thus, through viral marketing strategy can persuade customers that the product is truly good.

Conclusion

Social factors are important in the modern marketing, as they help to maintain proper targeting of customers, they help to increase the loyalty of customers to brand and to increase awareness of the brand. It is important to utilize all opportunities, which application of certain social factors can be used. Knowing the expectations of customers and their desires, company can maintain better activities and get more customers. It is important to understand that society is all about the social image of the people, all social classes have their own social image and they want to support it with certain products. Thus, rich customers purchase expensive, sometimes even useless products. Middle-class customers purchase useful but moderate price products. Low-class prefer to purchase products with discount and with many available features, which can be available for low price.