1. A consumer's behaviour is influenced by social factors, such as the consumer's small groups, family, and social roles and status. Briefly explain the differences among these social factors.
Small groups to which a person belongs have a direct influence on what a person buys. Reference groups serve as direct or indirect on point of comparison or reference in forming people’s attitudes or behaviours. An aspirational group is the one that people wishes to belong. Reference groups expose people to new behaviours and lifestyle, influence people’s behaviours and self concept, and create pressure to conform that may affect the people’s product and brand choices. Opinion leaders are also included as reference group. The closest group to consumer is the family. It is an important customer buying organisation in the society. Marketers are interested in the changing roles and influence of each family members, particularly males and females purchasing roles evolve and children wield more purchasing influence. Within groups, including families, the position of an individual is defined by roles and status. A role consists of the activities people are expected to perform according to the persons around them, while status is the general esteem given to that role. People tend to choose the product that fit with their roles and status.

2. Explain the adoption and diffusion process for new products
The product adoption process is made up of five stages: awareness, interest, evaluation, trial and adoption. In the awareness stage, the consumers become aware of the new product, but lacks of information about it. Then, the consumer seeks information about the new product in the interest stage. In the evaluation stage, the consumer considers whether trying the new product make sense. Then, the consumer tries the new product on a small scale to improve his or her estimate of its value in the evaluation stage. Finally, in the adoption stage, the consumer decides to make full and regular use of the new product. New-product marketers must think about how to