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
The sum total of learned beliefs, values, and customs that serve to regulate the consumer behavior of members of a particular society.
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
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
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 Language
Demographics Consumer behavior Values Marketing strategy
Factors influencing Non Verbal Communication
Time Etiquette Nonverbal communications Things 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
Cultural Values are learnedEnculturation-Learning about own culture Acculturation-Learning about different culture Guides to our behavior Enduring
Contd 1. 2. 3.
1980 Live to work Be a winner Home as a cocoon Control the environment Control the technology
1. 2. 3.
1990 Work to live Do not be a loser Home as a resource centre Manage the environment Adapt the technology
Issues in Culture
Enculturation and acculturation Language and symbols Ritual Sharing of Culture
Weeknight s are Rich with Ritual
Selected Rituals and Associated Artifacts
SELECTED RITUALS Wedding Birth of child Birthday TYPICAL ARTIFACTS White gown (something old, something new, something borrowed, something blue) U.S. Savings Bond, silver baby spoon Card, present, cake with candles
50th Wedding anniversary Catered party, card and gift, display of photos of the couple’s life together Graduation Valentine’s Day New Year’s Eve Thanksgiving Pen, U.S. Savings Bond, card, wristwatch Candy, card, flowers Champagne, party, fancy dress 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
a. b. c. • • • •
TypesGeographic Subcultures Religion Age CohortsGen X Gen Y Baby Boomers Mature Market
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
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.
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
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 Humanitarianism Youthfulness Fitness and health
Criteria for Value Selection
The value must be pervasive. The value must be enduring. The value must be consumerrelated.
An Achieveme nt-Success Appeal
Ad Stressing Saving Time and Money
Progress is a Winning Appeal
Cross-Cultural Variations in Consumer Behavior
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.
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
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 Social Comparison Theory wealth states that individuals power compare their prestige 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
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 Customer s
Percent Distribution of Five-Category Social-Class Measure
SOCIAL CLASSES Upper Upper-middle Middle Working Lower Total percentage PERCENTAGE 4.3 13.8 32.8 32.3 16.8 100.0
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
Occupation Education Income Other Variables
Index of Status Characteristics Socioeconomic Status Score
Targetin g Upperclass Consum ers
Index of Status Characteristics (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 Status Score (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.
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
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
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 churchsponsored 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
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
THE 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
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 MarketSegmentation Schema
Rural Affluent Segments
Well-feathered Nests No Strings Attached Nanny’s In Charge Two Careers The Good Life
Suburban Transplants Equity-rich Suburban Expatriates City Folks with Country Homes Wealthy
What is Middle Class?
The “middle” 50% of household incomes - households earning between $25,000 and $85,000 Households made up of collegeeducated 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 uppermiddle 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