Name of the Program: BBA

Course Code: UGMGT204N

Course Name: Consumer Behaviour

NOTES

Module 4
EXTERNAL DETERMINANTS OF CONSUMER
BEHAVIOUR
Introduction to External Determinants of Consumer
Behaviour
External determinants of consumer behaviour refer to the outside influences that
shape the way people think, feel, and act when buying products or services. These
are factors that come from the consumer’s environment, not from within the
individual. While internal factors like needs and motivation come from within a
person, external factors are social, cultural, and situational forces that affect
decisions.

For example, a person may choose a particular brand of clothing not just because
they like it, but because it is popular among their friends or is considered trendy
in their culture. Similarly, advertisements, celebrity endorsements, the place
where they shop, or even the weather on a particular day can influence what they
buy.

In simple terms, external determinants are all the outside pressures, cues, or
influences that guide or change consumer behaviour — often without them even
realizing it. Understanding these helps marketers reach customers more
effectively by shaping the environment around their decisions.

Family Influences on Consumer Behaviour

Definition:

Family influence refers to the impact of family members—such as parents,

siblings, spouses, or children—on a consumer’s buying decisions. Since family
is one of the most close-knit social groups, it plays a major role in shaping a
person's preferences, values, brand choices, and shopping habits from early
childhood to adulthood.

How Family Influences Work:

1. Learning through socialisation:

Children learn what to buy and how to buy by observing their parents.
For example, if a family prefers healthy eating, the child may grow up
choosing organic products.
2. Joint decision-making:
Families often make purchasing decisions together, especially for high-
involvement products like cars, holidays, or furniture.
3. Role influence:
Each member in a family may play different roles like influencer, buyer,
user, or decision-maker. These roles affect what is eventually purchased.

Example:

A teenager may want to buy a smartphone, but the parents (decision-makers) may
decide the budget, and the child (user/influencer) may choose the model based on
preference and peer influence. Similarly, the mother may influence grocery
choices, while the father decides on the family car.

Family members often act as:

 Initiators (who suggest buying),

 Influencers (who persuade),
 Deciders (who have final authority),
 Buyers (who actually purchase), and
 Users (who consume).

Indian Brand Example:

1. MTR Foods: Promotes ready-to-eat meals suitable for working families.

Their ads often show working parents choosing healthy and quick options
for kids.
2. Asian Paints: Ads like “Har Ghar Kuch Kehta Hai” tap into family
emotions during house renovations.
3. Tata Sky (Now Tata Play): Offers family pack subscriptions appealing to
all age groups — kids, elders, and youth.
Influence of Culture

Culture refers to the collective programming of the mind that distinguishes one
group or society from another. It includes the shared set of values, beliefs,
customs, rituals, language, symbols, and norms that shape the way individuals
live, interact, and make consumption choices. Culture is not inborn but learned
over time—starting from childhood, through family, schools, religion, and social
institutions—and is transferred from one generation to the next.

Culture plays a critical role in influencing consumer perceptions, decision-

making, purchasing behavior, and post-purchase satisfaction. It sets the stage for
what is considered appropriate, fashionable, tasteful, or offensive in a given
society.

How Cultural Values Influence Consumption Patterns

1. Food Preferences:
o Culture dictates what kind of food is preferred or avoided. For
instance, vegetarianism is culturally significant in many Indian
households due to religious beliefs (like in Hinduism and Jainism).
o Similarly, fasting during Navratri or Ramadan affects how
consumers shop—demand for special “fasting” snacks rises.
2. Clothing Choices:
o Clothing is strongly influenced by modesty norms, religious values,
and traditional practices.
o For example, sarees, kurtas, and lehengas dominate festive and
wedding attire, while western wear is often more acceptable in
urban, cosmopolitan workplaces.
3. Festivals and Gift Buying:
o India’s culture of celebrations and family bonding fuels massive
consumer spending during festivals like Diwali, Eid, Christmas, and
Pongal.
o This period sees spikes in jewellery, sweets, electronics, clothing,
and home decor sales.
4. Views on Money and Luxury:
o Indian consumers often exhibit a value-conscious mindset, driven by
cultural beliefs in savings and financial prudence.
o However, there is also a growing aspiration for luxury and status
symbols, especially in urban middle-class families.
Why Marketers Must Align with Culture

Marketers need to understand and respect cultural nuances to create campaigns

and products that resonate emotionally with consumers. Culturally aligned
marketing:

 Increases relatability and trust

 Enhances brand loyalty
 Avoids cultural insensitivity or backlash
 Drives engagement during culturally significant events

Indian Brand Examples That Reflect Cultural Values

1. Amul – Celebrating Indian Food Culture

 How Amul aligns with culture:

o Emphasizes the purity and tradition of dairy, which holds religious
and emotional value in India.
o During festivals like Diwali, Holi, or Raksha Bandhan, Amul
promotes recipes of traditional sweets like rasgulla, kheer, and peda
made with its products.
o Their iconic topical ads also reflect social and cultural commentary,
creating a brand that feels ‘Indian at heart.’

2. Tanishq – Cultural Depth in Jewellery Advertising

 Tanishq's campaigns are deeply rooted in Indian marriage traditions, which

vary across states and communities.
 Their advertisements feature:
o Regional wedding rituals (e.g., Bengali, Tamil, Punjabi,
Maharashtrian)
o Themes of inter-generational bonding, inclusive marriages, and
modern yet culturally respectful brides.
 Example: Their “Ekatvam” collection showcased unity in diversity,
drawing from India’s multicultural ethos.

3. Surf Excel – Cultural Messaging Through Emotions

 The famous tagline “Daag Achhe Hain” (Stains are good) is not just about
cleaning clothes.
 It connects with the Indian value system of:
o Letting children explore and learn through actions
o Sacrifice, empathy, and moral lessons – for example, a child getting
dirty while helping someone
  These ads beautifully tap into Indian parenting values, turning a detergent
into a messenger of virtue.

Subculture & Cross-Cultural Influences in Consumer

Behaviour
In the study of consumer behaviour, culture is the overarching influence. But
within a single culture, multiple smaller groups exist that have their own
distinctive traits, often known as subcultures. Additionally, due to increasing
globalization, consumers are also exposed to cross-cultural influences—a blend
or borrowing of practices across different cultures.

What is a Subculture?

A subculture is a group of individuals within a larger culture who share common

beliefs, values, customs, languages, or lifestyles that distinguish them from the
larger population. These groups often form based on:

 Region (e.g., North Indian vs. South Indian)

 Religion (e.g., Hindu, Muslim, Sikh, Christian)
 Language (e.g., Bengali-speaking, Tamil-speaking)
 Generation (e.g., Gen Z, Millennials, Baby Boomers)
 Lifestyle (e.g., Vegan consumers, Environmentalists, Digital Nomads)

Subcultures are critical for marketers because they allow brands to:

 Segment markets more precisely

 Create targeted marketing messages
 Design products tailored to specific groups
 Show cultural respect and build emotional resonance

What are Cross-Cultural Influences?

Cross-cultural influences arise due to the interaction and blending of two or more
cultures. With the growth of global travel, digital media, migration, and
international business, people are more exposed to foreign cultures, ideologies,
cuisines, and fashion.

In India, cross-cultural influences are seen in:

 Young consumers adopting Western food and fashion trends

 Urban Indian weddings featuring fusion customs
 Regional brands borrowing aesthetic styles or messaging from global
cultures
Cross-cultural understanding helps marketers design inclusive campaigns and
avoid cultural insensitivity.

Indian Brand Examples

1. McDonald’s India – Adapting to Subcultural Food Preferences

 India is diverse in dietary preferences, often influenced by religion and

region.
 No beef or pork in the Indian menu, respecting Hindu and Muslim
sentiments.
 Introduced McAloo Tikki to appeal to vegetarian consumers.
 Maharaja Mac (chicken version) caters to those who seek a 'burger
experience' without offending religious sensibilities.
 Regional variants (like Chatpata Naan, Masala Grill) showcase sensitivity
to Indian subcultural tastes.

This is an excellent case of global brand customizing itself to Indian subcultures

while maintaining its core identity.

2. Manyavar – Embracing Regional Diversity in Ethnic Wear

 Manyavar specializes in ethnic and wedding wear for men and women.
 Their collections incorporate region-specific elements, such as:
o Banarasi patterns for North India
o Kanjeevaram-inspired motifs for South India
o Bandhani and mirror work for Gujarat and Rajasthan
 Ad campaigns feature diverse Indian wedding traditions and often use
regional celebrities to appeal to specific audiences.

They show how a brand can celebrate subcultures and drive emotional
engagement through inclusivity.

3. Fogg – Reaching Across Indian Subcultures

 Fogg, a leading deodorant brand, built its campaign strategy around

localisation and diversity.
 Created ad versions in multiple Indian languages — Hindi, Bengali, Tamil,
Telugu, etc.
 Promoted their products by associating them with cultural events like
Durga Puja, Eid, Diwali, and even regional New Year festivals.
 Their tagline, “Fogg Chal Raha Hai”, became a catchphrase, customised
with cultural humour and accents for various audiences.
Fogg smartly captured India's linguistic and cultural subcultures to build a strong
brand recall across the country.

Group Dynamics and Consumer Reference Groups in

Consumer Behaviour
Human beings are inherently social creatures. Our decisions, opinions, and
behaviours are often shaped by the groups we interact with — either directly or
indirectly. In marketing, this influence is known as group dynamics or reference
group influence.

A reference group is any person or group of people that significantly influences

an individual’s attitudes, aspirations, or behaviour. These groups can influence
what consumers buy, wear, eat, drive, or even how they behave on social media.

Consumers may conform to the expectations of these groups to:

 Fit in or feel accepted

 Impress or gain recognition
 Project a specific social identity or status

This is especially noticeable in product categories like:

 Fashion and clothing

 Mobile phones and gadgets
 Lifestyle choices
 Dining and entertainment

Types of Reference Groups

1. Membership Groups

These are groups we already belong to and interact with on a regular basis, such
as:

o Family
o Friend circles
o Classmates, coworkers
o Religious or community groups
These groups influence decisions by sharing opinions, recommendations, or
through group norms. For example, a person may choose a certain brand of food
or detergent because it is what their family uses.

2. Aspirational Groups

These are groups we admire or aspire to be a part of. They often include:

o Celebrities
o Social media influencers
o Professional icons
o Luxury lifestyle communities

Aspirational group influence leads consumers to purchase products that they

associate with status, success, or popularity. This is common in the purchase of
high-end fashion, smartphones, fitness gear, etc.

3. Dissociative Groups

These are groups people consciously avoid being associated with. Consumers
may reject certain brands, clothing styles, or behaviours if they are linked to
groups they do not identify with.

o For example, a young urban consumer may avoid using a brand

perceived as outdated or “uncool.”

Indian Brand Examples and Group Influence

1. Apple iPhone – Symbol of Aspirational Group Influence

 In India, owning an iPhone is often seen as a status symbol, associated with

affluence, premium lifestyle, and global exposure.
 Many young consumers desire iPhones not just for features, but because
celebrities and influencers use them.
 Peer pressure in colleges and workplaces also reinforces the idea that using
an iPhone signals success or social elevation.

2. boAt Audio – Riding on Influencer and Youth Culture

 boAt has built its brand by aligning with youth-oriented influencers,

musicians, athletes, and digital creators.
 The brand taps into membership and aspirational groups like:
o Gen Z music lovers
 o Gym-goers and runners
o Instagram trendsetters
 Their messaging creates a community feel, making consumers feel they are
part of a cool, tech-savvy, urban tribe.

3. Zomato & Swiggy – Encouraging Peer Group Consumption

 These food delivery apps target friend groups, college students, and office
teams, especially through:
o Group combos
o Referral discounts
o "Treat your friends" campaigns
 Social sharing of food orders, memes, and offers on WhatsApp or
Instagram creates a shared group culture around food.
 Zomato’s witty content and relatable campaigns often reflect group
dynamics of everyday Indian youth.

Social Class and Consumer Behaviour

Social class refers to the stratification of society into hierarchical levels based
on a combination of several socioeconomic factors such as:

 Income level
 Education and qualification
 Occupation and job status
 Wealth and assets
 Lifestyle and consumption habits
 Prestige and societal recognition

Social class is not just about money—it also reflects how people live, what
they aspire to, and how they interact with brands. It is a strong predictor of
consumer preferences, motivations, shopping behaviour, and brand loyalty.

Key Ways Social Class Influences Consumer Behaviour

1. Shopping Patterns
o Upper class consumers prefer shopping in high-end retail outlets,
luxury malls, and international online platforms.
 o Middle class consumers are drawn to modern trade formats, discount
stores, and online marketplaces with offers.
o Lower class consumers focus on affordability and essential
purchases, often in local kirana shops or budget stores.

2. Brand Preferences
o Upper class seeks prestige, exclusivity, and global appeal—brands
that signal status.
o Middle class aims for value-for-money branded products—they
want reliability with affordability.
o Lower class is highly price-sensitive—functionality and necessity
override brand appeal.

3. Media Consumption
o Upper class leans towards niche digital content, global news,
premium OTT platforms (e.g., Netflix, Spotify Premium).
o Middle class consumes a mix of television, YouTube, and affordable
OTT platforms like JioCinema or SonyLIV.
o Lower class relies more on free-to-air TV, radio, and regional
language newspapers.

4. Decision-Making Speed
o Upper class often makes impulse or convenience-based purchases
because money is not a constraint.
o Middle class takes more time, comparing reviews, prices, and
features.
o Lower class makes highly cautious decisions, driven by need,
budget, and peer influence.

Indian Brand Examples by Social Class

1. Tata Motors – Multi-Class Vehicle Strategy

  Tata Motors is a perfect example of a brand catering to multiple social
classes through a diversified product portfolio.
o Lower-middle class: Tata Tiago and Tata Punch – affordable, fuel-
efficient cars with basic features.
o Middle class: Tata Nexon – stylish, safe, mid-range SUV with good
value-for-money appeal.
o Upper class: Tata Safari and Harrier – positioned as premium SUVs
with modern features, competing with global brands.

2. Raymond – Tiered Fashion for Social Segments

 Raymond has smartly structured its brand architecture to appeal to different

income classes:
o Raymond (mainline): Premium formal wear and fabrics, often
chosen by upper-middle and upper class professionals.
o Park Avenue: Slightly affordable, ready-to-wear range for urban
middle class.
o ColorPlus: Offers stylish yet affordable casuals for aspirational
middle-income youth.

3. Patanjali – Ayurvedic Wellness for the Masses

 Patanjali strategically positioned itself to attract the lower-middle and

middle-income groups by offering:
o Affordable alternatives to FMCG products like soaps, toothpaste,
shampoos, etc.
o A blend of Ayurvedic trust + nationalist sentiment that appeals across
rural and semi-urban India.
o Distribution in local shops and easy availability in tier 2 and tier 3
towns.

Competitive Offerings and Consumer Behaviour

Consumers do not evaluate a brand or product in a vacuum. Their choices are
heavily shaped by what competing brands are offering in the same category.
When several options are available in the market, consumers naturally compare
and contrast based on key factors like:

 Price: Which brand offers better value or discounts?

 Quality: Which product lasts longer or delivers better performance?
 Features: Which brand is more innovative or up-to-date?
 Customer service: How well does the brand respond post-purchase?
  Brand image: Which brand feels more trustworthy or “cool”?

In such a dynamic environment, consumer perception is not just about one brand's
offerings—it’s about how that brand stacks up against its competitors.

This is where competition-driven consumer behaviour comes in. When a

competing brand launches a new feature, cuts prices, or improves service, it can
trigger a shift in consumer preferences, even among loyal users of a different
brand.

Thus, marketers must constantly monitor and respond to competitive movements

by:

 Highlighting their Unique Selling Proposition (USP)

 Matching or exceeding competitor offerings
 Creating differentiated marketing strategies

Indian Brand Examples

1. Jio vs. Airtel – Telecom Disruption

 In 2016, Reliance Jio disrupted the Indian telecom market by:

o Offering free data, unlimited calls, and low tariffs
o Focusing on digital infrastructure, VoLTE tech, and fast speeds
 This forced Airtel, Vodafone, and Idea to cut prices, offer similar benefits,
and improve service quality.
 Consumers, especially from the price-sensitive and digital-savvy
segments, switched rapidly.

2. Flipkart vs. Amazon India – The E-Commerce Race

 Both brands compete heavily during festive sales (Big Billion Days vs.
Great Indian Festival).
 Factors influencing consumer choice:
o Pricing and Discounts (especially on electronics and fashion)
o Faster delivery in Tier-1 and Tier-2 cities
o Customer service & easy returns
o Loyalty programs (Flipkart Plus vs. Amazon Prime)
 Consumers compare both platforms before making a purchase.

3. Ola vs. Uber – Everyday Consumer Decisions

 Indian consumers use both Ola and Uber depending on:

o Promotional offers or coupons
 o Availability of cabs and wait time
o Driver ratings and app experience
o Subscription programs (Ola Select, Uber Pass)
 Both brands continuously battle to capture urban mobility consumers, who
are highly influenced by real-time pricing and service quality.

Conclusion

Competitive offerings are a powerful determinant of consumer behaviour

because:

 They constantly shape consumer expectations

 Influence brand-switching decisions
 Push consumers to compare, review, and evaluate
 Help consumers feel they are getting the best deal or most advanced option

In a competitive marketplace like India, the brand that listens and adapts the
fastest often wins consumer attention and loyalty.