The Influence of Culture on Consumer Behavior

04/08/2023 Impact of Culture 1

The Influence of Culture on Consumer Behavior

Submitted by: Shilpa Gurung

Gauttam Sharma

Amit kumar Ravi singh


Introduction

• One of the most pervasive influences on our lives and indeed our consumption behavior is that of culture.

• Culture has a profound effect on family life ,living patterns ,social interactions and is indeed an important input in shaping personalities ,attitudes and perceptions.


Culture• The sum total of learned beliefs, values, and customs that serve to

regulate the consumer behavior of members of a particular society.• Culture is the broadest component that has an effect on consumer

behavior.• It provides the background for other factors namely ,the

family ,social class and reference groups ,that have an influence on buying behavior.

• Reference groups and families play a critical role in transmitting cultural and sub cultural values.

• Since they regulate people’s lives on a day-to-day basis ,they become the agents for transmitting the standards of behavior and the values of the culture in which they exist.


Significance of the Culture• The significance of culture in understanding consumer behavior is that

,although consumers may be biologically similar in their instincts ,their views of the world differs according to their cultural orientations.

• Culture provides the standards or rules regarding when to eat ,where to eat ,what is appropriate to eat for breakfast ,what to serve the guests for a dinner party ,a picnic or a wedding.

• For example we can think of French culture ,Canadian culture ,American culture ,Indian culture.

• People in these cultural groupings are more similar in their outlook and behavior than those in other groupings.

• They are also similar in their lifestyles ,personalities ,attitudes ,values and belief systems ,as described in the definition of culture.


Types of Culture

• The Internal Mental Culture• The External Material Culture


Types Of Culture


Characteristics of a Culture

• Culture is invented• Culture is a set of learned responses• Culture is shared• Culture is gratifying and persistent• Culture is dynamic and adapts• Culture is an organized and integrated whole• Cultures is different in different areas/countries• Culture is prescriptive


A Theoretical Model of Cultures’ Influence on Behavior


Cultural Values

• There are two types of values Instrumental valuesTerminal values• Also each culture has their own core values It has been found out that terminal values such as

comfort ,security ,pleasure ,are influential in the choice of product class.

Instrumental values such as broadmindedness become important in the brand choice decision.


Cultural Values


Changing Cultural trends in Indian urban Markets

• Success through Professional achievement.• Involvement in work.• Material success.• Middle-of-the-road approach to tradition.• Impulse gratification.• Use of hi-tech products.


Variations in Cultural Values


Values Orientation Effects Behavior


Issues in Culture

• Enculturation– The learning of one’s own culture

• Acculturation– The learning of a new or foreign culture


Example of Acculturation


The Movement of Cultural Meaning


Language and symbols

•Without a common language shared meaning could not exist•Marketers must choose appropriate symbols in

advertising•Marketers can use “known” symbols for

associations


Example

This ad uses the symbol of a magnet to emphasize its benefits.


Ritual

• A ritual is a type of symbolic activity consisting of a series of steps• Rituals extend over the human life cycle•Marketers realize that rituals often involve

products (artifacts)


Sharing of Culture

• To be a cultural characteristic, a belief, value, or practice must be shared by a significant portion of the society• Culture is transferred through family, schools,

houses of worship, and media


Example

This ad uses characters well known in the U.S. culture.


The Measurement of Culture

• Content Analysis• Consumer Fieldwork• Value Measurement Instruments


Content Analysis

• A method for systematically analyzing the content of verbal and/or pictorial communication. The method is frequently used to determine prevailing social values of a society.


Field Observation

• A cultural measurement technique that takes place within a natural environment that focuses on observing behavior (sometimes without the subjects’ awareness).


Characteristics of Field Observation

• Takes place within a natural environment• Performed sometimes without the subject’s

awareness• Focuses on observation of behavior


Participant Observers

• Researchers who participate in the environment that they are studying without notifying those who are being observed.


Value Measurement Survey Instruments

• Rokeach Value Survey (RVS)– A self-administered inventory consisting of eighteen

“terminal” values (i.e., personal goals) and eighteen “instrumental” values (i.e., ways of reaching personal goals)

• List of Values (LOV)– A value measurement instrument that asks consumers to

identify their two most important values from a nine-value list that is based on the terminal values of the Rokeach Value Survey

• Values and Lifestyles (VALS)– A value measurement based on two categories: self-

definition and resources


American Core Values

• Achievement and success• Activity• Efficiency and practicality• Progress• Material comfort• Individualism• Freedom• External conformity• Humanitarianism• Youthfulness• Fitness and health


Criteria for Value Selection

• The value must be pervasive.• The value must be enduring.• The value must be consumer-related.


Toward a Shopping Culture

• Is shopping what we do to create value in our lives?

• The younger generation is shopping more• This has an effect on credit card debt


Subculture


Cross Cultural Behavior

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The Imperative to Be Multinational

• Global Trade Agreements– EU– NAFTA

• Acquiring Exposure to Other Cultures• Country-of-origin Effects

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The World’s Most Valuable Brands

1. Coca-Cola2. Microsoft3. IBM4. GE5. Intel6. Disney7. McDonald’s8. Nokia9. Toyota10.Marlboro

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Most of these brands offer

different Web sites for each

country.

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Country of Origin Effects: Negative and Positive

• Many consumers may take into consideration the country of origin of a product.

• Some consumers have animosity toward a country– People’s Republic of China has some animosity to Japan– Jewish consumers avoid German products– New Zealand and Australian consumers boycott French

products

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Swiss Watches

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More Swiss Watches

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Can’t Beat the EngineeringThe “American” Twist

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This U.S. Government Web site helps those

who want to buy USA products.

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National Identity Figure


Cross-CulturalConsumer Analysis

The effort to determine to what

extent the consumers of two

or more nations are similar or different.


Issues In Cross-cultural Consumer Analysis


Similarities and differences among people

• The greater the similarity between nations, the more feasible to use relatively similar marketing strategies

• Marketers often speak to the same “types” of consumers globally

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Comparisons of Chinese and American Cultural Traits

Chinese Cultural Traits• Centered on

Confucian doctrine• Submissive to

authority• Ancestor worship• Values a person’s

duty to family and state

American Cultural Traits

• Individual centered• Emphasis on self-

reliance• Primary faith in

rationalism• Values individual

personality


The growing global middle class

• Growing in Asia, South America, and Eastern Europe

• Marketers should focus on these markets


The global teenage market

• There has been growth in an affluent global teenage and young adult market

• They appear to have similar interests, desires, and consumption behavior no matter where they live

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The iPod has global appeal to

the young market.

http://www.apple.com/ipod/


Acculturation

• Marketers must learn everything that is relevant about the usage of their product and product categories in foreign countries

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Basic Research Issues in Cross-Cultural Analysis

FACTORS

Differences in language and meaning

Differences in market segmentation opportunities

Differences in consumption patterns

Differences in the perceived benefits of products and services

EXAMPLES

Words or concepts may not mean the same in two different countries.

The income, social class, age, and sex of target customers may differ dramatically in two different countries.

Two countries may differ substantially in the level of consumption or use of products or services.

Two nations may use or consume the same product in very different ways.

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continuedFACTORS

Differences in the criteria for evaluating products and services

Differences in economic and social conditions and family structure

Differences in marketing research and conditions

Differences in marketing research possibilities

EXAMPLES

The benefits sought from a service may differ from country to country.

The “style” of family decision making may vary significantly from country to country.

The types and quality of retail outlets and direct-mail lists may vary greatly among countries.

The availability of professional consumer researchers may vary considerably from country to country.

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World Brands

Products that are manufactured, packaged, and

positioned the same way regardless of the country in which they

are sold.

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Are Global Brands Different?

• According to a survey – yes.• Global brands have:– Quality signal– Global myth– Social responsibility

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Multinational Reactions to Brand Extensions

• A global brand does not always have success with brand extentions

• Example Coke brand extension – Coke popcorn– Eastern culture saw fit and accepted the brand

extension– Western culture did not see fit

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Adaptive Global Marketing

• Adaptation of advertising message to specific values of particular cultures

• McDonald’s uses localization– Example Ronald McDonald is Donald McDonald in

Japan– Japanese menu includes corn soup and green tea

milkshakes• Often best to combine global and local

marketing strategies

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Alternative Multinational Strategies: Global Versus Local

• Framework for Assessing Multinational Strategies– Global– Local– Mixed

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A Framework for Alternative Global Marketing Strategies

PRODUCT STRATEGY

COMMUNICATON STRATEGY

STANDARDIZED COMMUNICATIONS

LOCALIZED COMMUNICATIONS

STANDARDIZED PRODUCT

Global strategy:Uniform Product/ Uniform Message

Mixed Strategy:Uniform Product/ Customized Message

LOCALIZED PRODUCT

Mixed strategy:Customized Product/ Uniform Message

Local Strategy:Customized Product/ Customized Message

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Cross-Cultural Psychographic Segmentation

The only ultimate truth possible is that humans are both deeply the same and obviously

different.

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Six Global Consumer Segments

Strivers 23%

Altruists18%

Devouts22%

Fun Seekers12%

Creatives10%

Intimates15%


References

• Schiffman, Leon G. , Kanuk, Leslie Lazar, Kumar,& S. Ramesh (2009). Consumer Behavior (10th ed.). New Delhi : Pearson Education

• Khan, Matin (2012). Consumer Behavior and Advertising (1st ed.) . New Delhi : New Age International Publishers.

Documents

The Influence of Culture on Consumer Behavior