CB 9 (Social & Cultural Influences)

8/7/2019 CB 9 (Social & Cultural Influences)

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Social & Cultural

Influences on

Consumer Behavior

Prof. Manu Priya

[email protected]



A model of consumer behaviour



SOCIAL CLASSSOCIAL CLASS

The division of members of asociety into a hierarchy of

distinct status classes, so that

members of each class haveeither higher or lower statusthan members of other classes.



Relatively permanent and homogeneous

divisions in a society into which individuals

or families sharing similar values, lifestyles,

interests and behaviour can be categorised

± Relations in the production and acquisition of

goods



SOCIAL CLASS & SOCIAL STATUSSOCIAL CLASS & SOCIAL STATUS

Status is frequently thought of as the relativerankings of members of each social class

± ±WealthWealth (amount of economic assets)

± ±

PowerPower (degree of influence on others) ± ±PrestigePrestige (degree of recognition received from

others)Social Comparison Theory

states that individualscompare their

own possessions against those

of others to determine their

relative social standing.



The process by which consumers actively

increase their social standing through

conspicuous consumption or possessions

STATUS CONSUMPTIONSTATUS CONSUMPTION

Social status is usually defined in terms of one ormore of the following socioeconomic variables:

± Family Income

± Occupational Status

± Educational Attainment



A communitys expectations for style of lifeamong each class as well as the positive ornegative social estimation of honour given to eachclass

Source of influence on what people buy andconsume

-Stratification according to the principles of their consumption of goods (lifestyles)

Individuals compare their own materialpossessions with those owned by others todetermine their own social standing

STATUSSTATUS GROUPGROUP



Targeting

Upscale

Customers



SOCIAL STANDING &SOCIAL STANDING &

BEHAV

IOUR

BEHAV

IOUR



Not all Behaviours are Unique



Economic ± Job

± Income

± Wealth (possessions)

Interaction ± Personal prestige (success, not only economic)

± Association (everyday relationships, values)

± Socialisation

Political ± Power

± Class consciousness (relevance of the class)

± Mobility

Factors defining a social class (Gilbert andFactors defining a social class (Gilbert and

KahlKahl, 1982), 1982)



Major

American

Social

Classes



(continued)



Use of Income and Purchase Motivation forUse of Income and Purchase Motivation for

Target Market AppealTarget Market Appeal



Targeting

Upper-class

Consumers



GeodemographicGeodemographicClustersClusters

A composite

segmentationstrategy that uses

both geographic

variables (zip codes,

neighborhoods) anddemographic

variables (e.g.,

income, occupation)to identify target

markets.



Marketers superimpose these

geodemographic clusters onto a host of products & services usage data, mediaexposure data & lifestyle data tp create a

sharp, refined picture of their targetmarkets.

One of the most popular clustering service

is PR

IZM (www.claritus.com) which definesa variety of socioeconomic & demographicfactors.



Selected Consumer Behavior and Application of Social ClassSelected Consumer Behavior and Application of Social Class

Clothing, Fashion & Shopping

People dress to fit their self-image, which includes theirperceptions of their own social-class membership.

Members of specific social classes differ in terms of whatthey consider fashionable or in good taste .

Ex. ConsumersConsumers of of lowerlower--middlemiddle classclass havehave strongstrongpreferencepreference forfor TT--shirts,shirts, caps,caps, etcetc.. ThatThat offeroffer themthemexternalexternal pointpoint of of identificationidentification..

ExEx.. UpperUpper classclass consumersconsumers likelylikely toto buybuy clothingclothing withwith

moremore subtlesubtle lookslooks asas sportswearsportswear ratherrather thanthan designerdesigner jeans jeans..

ExEx.. GapGap isis rollingrolling outout itsits goodsgoods toto thethe workingworking classclassfamiliesfamilies whowho usuallyusually purchasepurchase fromfrom Kmart,Kmart, WalWal--Mart,Mart,

TargetTarget..



The Pursuit of Leisure

Social class membership related to the choice of

recreational & leisure activities.Upper-class customers like to attend theatre &concerts'.

Lower-class consumers are T

Vwatchers, fishing ,enjoy drives in movies.

Middle-class consumers spends time oncommercial activities (playing pools, billiards

visiting museums) craft activities (model building,painting, wood working project) cerebralactivities (reading, visiting museums) & familyvacations



Saving, Spending & Credit

Upper-class--- more future orientedconfident for financial acumen, morewilling to invest in insurance, stocks,real estates, shares. Uses credit cardsas a convenient substitute for cash.

Lower-class--- concerned with

immediate gratification, primarilyinterested in safety & security, tend touse their credit cards for instalment

purchases.



Influence of the Social EnvironmentInfluence of the Social Environment

Flows of influence with in the social structure

Individual

consumers

Organizations Reference colors Family Media

Culture

Subculture

Social class



Cultural

Influences on

Consumer

Behaviour



Culture . . .Culture . . .. . . is a learned behavior.

Enculturation is learning ones own

culture.

Acculturation is learning a new

culture.



. . . refer to the values,

norms, and shared

beliefs that are

symbolically

communicated

. . . represent the sharedmeanings of ideal end

states and modes of

conduct



Cultural Identification .Cultural Identification . . .

Refers to the society in which a person prefersto live.

It is attitudinal in contrast to acculturation,

which is behavioral. . . . is adaptive, i.e. it changes as a society

faces new problems and opportunities...

. . . satisfies needs by providing norms(rules of behavior)...

. . . provides values which delineate what

is right, good, and important to a society.



CULTURECULTURE

Culture is the M ost Basic Cause of a

Person's Wants and Behavior.

Culture is learned from family, church, school,peers, colleagues.

Culture includes basic values, perceptions,

wants, and behaviors.

Components of culture: values, language,

myths, customs, rituals, laws, material artifacts



Cola, burgers, peanuts,

popcorn, ketchup popularpart of US culture.

Tea, sandwiches, bowler

hats, golf, raincoats are

part of English culture.

Kimonos, rice, cars,cameras synonymous with

Japan.



Beer, music, cars with

Germany.

Pasta, pizza, espresso coffee,art, wine, opera, shoes are

part of Italian culture.

Perfume, wine, cognac,

cheese, intrinsic to the French

culture

Samosa, spicy eatables, tea,

beeda, cycles, incense sticks

represent Indian Culture.



What is Culture?

Everything that people have, think, and

do as members of a society

Characteristics of CultureCharacteristics of Culture

Culture is learned

Culture is invisible

Culture is Symbolic

Culture is a way of life

Culture is Dynamic Culture is Relative

Culture satisfies needs

Culture is shared



Three distinct form of cultural learning.

Formal

Learning

Informal

learning

Technical

Learning-

In which adults teach a young family

member how to behave.

Child learns primarily bY

imitating the behaviour of

selected others.

In which teachers instructthe child in an educational

environment about what

should be done & how it

should be done.



Components of CultureComponents of Culture N orms- more specific than values

and dictate acceptable and

unacceptable behaviors

Customs- civilization, background, ethnicity,

way of life. Ex . Different food habits of

Indians.

Conventions- a set of agreed, stipulated or

generally accepted standards, norms, social

norms, or criteria, often taking the form of

a custom.



Ritual- is type of symbolic activity

consisting of series of steps

occurring in fixed sequence &repeated over time.

Language & Symbols- marketers

use to convey desired productimage. Symbols

Generate ideas, emotions, thoughts

Types of Symbols

Numbers

Colours

Gestures

Animals (animate objects)

Inanimate objects



Cultural influenceCultural influence

Set of values, ideas, artefacts' and other meaningfulsymbols that help individuals communicate,interpret and evaluate as member of society

± Sense of self and space

± Communication and language

± Dress and appearance

± Food and feeding habits

± Time and time consciousness

± Relationship ± Values and norms

± Beliefs and attitudes

± Mental processes and learning

±Work habits and practices



Examples of Popular CultureExamples of Popular Culture

Advertising

Television

Music

Fashion



CultureCulture

Subculture Groups of people with shared

value systems based on commonlife experiences.

Based on demographics

personality, lifestyle, and

psychographics

Examples of Major Groups

Hispanic Consumers

African-American Consumers

Asian-American Consumers

Mature Consumers



Marketers and CultureMarketers and Culture

must understand theculture of consumers

to whom they

market identify subcultures

which will be

attractive target

market segments

link the marketing

mix to culture

INTERNATIONALMARKETING

cultural differencesand similarities

key segmentationquestion:

± are cultures

different enough tobe distinct targetmarket segments?



The Measurement of CultureThe Measurement of Culture

A wide of measurement techniques are projective

tests, content analysis, consumer fieldwork value

measurement survey instruments.

Conclusion about society or specific aspects of a

society or comparison of two societies can be drawn

by examining the content of particular message.

This focuses on content of verbal, written or pictorialcommunication.

It is mean of determining what social & cultural

changes have occurred.

CONTENTANALYSISCONTENTANALYSIS



Researcher likely to select a small sample of peoplefrom particular society & carefully observe their

behaviour.

It takes place in natural environment

Performed sometimes without subjective awareness.

It focuses on observation of behaviour.

It focuses on in-store shopping behaviour

Sometimes researcher become active participants.

In addition to this depth interviews & focus-group

sessions are also used.

CONSUMER FIELDWORKCONSUMER FIELDWORK



Consumer is being observed in Consumer Fieldwork



Opinion Leaders

Marketers use buzz marketing by enlisting or even creating

opinion leaders to spread the word about their brands.

CB 9 (Social & Cultural Influences)

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