The Influence of Culture Subculture on

Consumer Behavior

Mc Donalds Reflect Cultural Values 1970-u deserve a break today 1980- Mcdonalds & u Mid 1985 –Good time for the great

taste of McD (Family Oriented) 1990 (Deep recession) –The new

reality After Recession- Have u had ur Break

today Late 1990- we love to see u smile

CultureCulture

The sum total of learned beliefs, values, and

customs that serve to regulate the consumer

behavior of members of a particular society.

Contd

Sub Culture – A Broad groups of consumers with similar values that distinguish them from Society as a whole.

Cross culture- A Broad groups of consumers having different values that distinguish them from Society as a whole

Cultural Values A belief that a general state of Existence

is personally & socially worth Striving for .e.g

Cultural Values- A comfortable life, Exciting life, Equality, freedom, pleasure, self respect, family security etc

Consumption Values-Prompt, reliable Low price services, No product misrepresentation services etc

Contd

Product Attributes- Service Quality, Reliability, Performance, Safety, Convenience etc

How culture Influences Consumer Behavior

Purchases-High value on achievement/Some may buy it for their younger looks/Some are health Conscious

Consumption-American cultures

Cultural Factors Affect Consumer Behavior and Marketing Strategy

Cultural Factors Affect Consumer Behavior and Marketing Strategy

Marketingstrategy

Consumerbehavior

Language

Demographics

Values

Nonverbalcommunications

Factors influencing Non Verbal CommunicationFactors influencing Non Verbal Communication

Nonverbalcommunications

Time

Etiquette

Things

Agreements Friendship

Symbols

Space

Cross culture & Subculture Influence

1990 & 2000s Recession is helpful in understanding the International Trade hence makes the strategies accordingly e.g kellogs breakfast eating individual turn in to cereal eating.

Marketers fail to recognize Brazilian mothers who rejects Processed foods because of family cultural values

Characteristics of Cultural Values

1. Cultural Values are learned- Enculturation-Learning about own

culture Acculturation-Learning about

different culture2. Guides to our behavior3. Enduring

Contd- 19801. Live to work2. Be a winner3. Home as a cocoon

4. Control the environment

5. Control the technology

19901. Work to live2. Do not be a loser3. Home as a

resource centre4. Manage the

environment5. Adapt the

technology

Issues in Culture Enculturation and acculturation Language and symbols Ritual Sharing of Culture

Weeknights are Rich with Ritual

Selected Rituals and Associated Artifacts

SELECTED RITUALS TYPICAL ARTIFACTS

Wedding White gown (something old, something new, something borrowed, something blue)

Birth of child U.S. Savings Bond, silver baby spoon

Birthday Card, present, cake with candles

50th Wedding anniversary Catered party, card and gift, display of photos of the couple’s life together

Graduation Pen, U.S. Savings Bond, card, wristwatch

Valentine’s Day Candy, card, flowers

New Year’s Eve Champagne, party, fancy dress

Thanksgiving Prepare a turkey meal for family and friends

Cultural meaning and Product

Consumers buy the product for Symbolism rather than the its utility

Role of Product Symbolism

Communicating Social status Means of self Expression Means of sharing Experiences Products are hedonics e,g

Jewelleries Products are experiential

Subculture Types-a. Geographic Subculturesb. Religionc. Age Cohorts- • Gen X• Gen Y• Baby Boomers• Mature Market

Age Cohorts

Mature market (Over 55 years old)-21%

Baby Boomers (Born Between 1946 & 1964)- 26%

Gen X (Born Between 1965 and 1976)-18%

Gen Y (1977 and 1994)- 16%

The Measurement of Culture

Content Analysis Consumer Fieldwork Value Measurement Instruments

Content Content AnalysisAnalysis

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 Field ObservationObservation

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-Participant-ObserversObservers

Researchers who participate in the

environment that they are studying without notifying those who are being observed.

American Core Values

Achievement and success

Activity Efficiency and

practicality Progress Material

comfort

Individualism Freedom External

conformity Humanitarianis

m Youthfulness Fitness and

health

Criteria for Value Selection

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

related.

An Achievement-Success Appeal

Ad Stressing Saving Time and Money

Progress is a Winning Appeal

Cross-Cultural Variations in Consumer Behavior

Culture: Is comprehensive Is acquired or learned Provides boundaries for members Is typically “invisible”

Enculturation is the process of learning one’s own culture.

Acculturation is the process of learning a new culture.

Culture

Views of Foreign Experts in the U.S.

“There are no small eggs in America. There are only jumbo, extra large, large, and medium.”

“If you are not aggressive, you’re not noticed.” “For a foreigner to succeed in the United States…

he needs to be more aggressive than in his own culture because Americans expect that.”

Americans say “Come on over sometimes,” but foreigners learn (perhaps awkwardly) that this is not really an invitation.

“Here that [socializing outside the business relationship] is not necessary. You can even do business with someone you do not like.”

Orientations Toward Time

Monochronic cultures (Americans, Germans, Swiss) handle information in a direct, linear fashion schedules, punctuality and a sense of

time that forms a purposeful straight line “time is money”

Polychronic cultures (Japanese, Hispanic) work on several fronts simultaneously time is less important than task time and money are separate; timing is

more important than time

Social Class and Consumer Behavior

Social ClassSocial Class

The division of members of a society

into a hierarchy of distinct status classes,

so that members of each class have either higher or lower status than members of other

classes.

Social Class and Social Status

Status is frequently thought of as the relative rankings of members of each social class wealth power prestige

Social Comparison Theory states that individuals

compare theirown possessions against those

of others to determine their relative social standing.

Status Consumption

The process by which consumers actively increase their social standing through conspicuous consumption or possessions

Convenient Approaches to

Social Class

Social status is usually defined in terms of one or more of the following socioeconomic variables: Family Income Occupational Status Educational Attainment

Targeting Upscale Customers

Percent Distribution of Five-Category Social-Class Measure

SOCIAL CLASSES PERCENTAGEUpper 4.3Upper-middle 13.8Middle 32.8Working 32.3Lower 16.8Total percentage 100.0

Social Class Measurement

Subjective Measures: individuals are asked to estimate their own social-class positions

Reputational Measures: informants make judgments concerning the social-class membership of others within the community

Objective Measures: individuals answer specific socioeconomic questions and then are categorized according to answers

Objective Measures

Single-variable indexes Occupation Education Income Other Variables

Composite-variable indexes Index of Status

Characteristics Socioeconomic

Status Score

Targeting Upper-class Consumers

Index of Status Index of Status Characteristics Characteristics

(ISC)(ISC)

A composite measure of social

class that combines occupation, source

of income (not amount), house type / dwelling area into a single weighted

index of social class standing.

Socioeconomic Socioeconomic Status Score Status Score

(SES)(SES)

A multivariable social class measure used by

the United States Bureau of the Census

that combines occupational status, family income, and

educational attainment into a single measure of

social class standing.

Social-Class Profiles

THE UPPER-UPPER CLASS--COUNTRY CLUB•Small number of well-established families•Belong to best country clubs and sponsor major charity events•Serve as trustees for local colleges and hospitals•Prominent physicians and lawyers•May be heads of major financial institutions, owners of major long-established firms

•Accustomed to wealth, so do not spend money noticeably

THE LOWER-UPPER CLASS--NEW WEALTH•Not quite accepted by the upper crust of society•Represent “new money”•Successful business executive•Conspicuous users of their new wealth

continued

THE UPPER-MIDDLE CLASS--ACHIEVING PROFESSIONALS

•Have neither family status nor unusual wealth•Career oriented•Young, successful professionals, corporate managers, and business owners

•Most are college graduates, many with advanced degrees•Active in professional, community, and social activities•Have a keen interest in obtaining the “better things in life”•Their homes serve as symbols of their achievements•Consumption is often conspicuous•Very child oriented

continued

THE LOWER-MIDDLE CLASS--FAITHFUL FOLLOWERS

•Primary non-managerial white-collar workers and highly paid blue-collar workers

•Want to achieve “respectability” and be accepted as good citizens

•Want their children to be well behaved•Tend to be churchgoers and are often involved in church-sponsored activities

•Prefer a neat and clean appearance and tend to avoid faddish or highly-styled clothing

•Constitute a major market for do-it-yourself products

continued

THE UPPER-LOWER CLASS--SECURITY-MINDED MAJORITY

•The largest social-class segment•Solidly blue-collar•Strive for security •View work as a means to “buy” enjoyment•Want children to behave properly•High wage earners in this group may spend impulsively•Interested in items that enhance leisure time (e.g., TV sets)•Husbands typically have a strong “macho” self-image•Males are sports fans, heavy smokers, beer drinkers

continuedTHE LOWER-LOWER CLASS--ROCK BOTTOM•Poorly educated, unskilled laborers•Often out of work•Children are often poorly treated•Tend to live a day-to-day existence

Geodemographic Geodemographic ClustersClusters

A composite segmentation

strategy that uses both geographic

variables (zip codes, neighborhoods) and

demographic variables (e.g.,

income, occupation) to identify target

markets.

MRI Affluent Market-Segmentation Schema

Affluent Segments Well-feathered

Nests No Strings

Attached Nanny’s In

Charge Two Careers The Good Life

Rural Affluent Segments Suburban

Transplants Equity-rich

Suburban Expatriates

City Folks with Country Homes

Wealthy Landowners

What is Middle Class? The “middle” 50% of household

incomes - households earning between $25,000 and $85,000

Households made up of college-educated adults who use computers, and are involved in children’s education

Lower-middle to middle-middle based on income, education, and occupation (this view does NOT include upper-middle which is considered affluent)

What is Working Class?

Households earning $34,000 or less control more than 30% of the total income in the U.S.

These consumers tend to be more brand loyal than wealthier consumers

Consumer Behavior and Social Class

Advertising Market segmentation Distribution Product development