Understanding the Elusive

Consumer

MSc SMBD 2022-23

 Course Agenda
SESSION FORMAT DATE TOPIC IN-CLASS ACTIVITIES: IN-CLASS ACTIVITIES: WORK TO DO BEFORE THE
CONTENT PROJECT NEXT SESSION
#1 Lecture + Jan 10 Course Kick-off and Course guidelines Introduction of assignment Readings: Review
Tutorial Jan 11 Introduction to Form teams Session 1
Consumer Behavior Basic concepts, Team 1: prepare topic
Project: Getting started Approaches to CB, for in-class presentation
Purchase decision process
key questions (1)
#2 Lecture + Jan 13 Consumer decision- Purchase decision process Choose brand/ product/service Readings: see K2
Tutorial Jan 20 making process key questions (2) + analyze current brand / Team 2: prepare topic
Personal and Motivation Process, customers / situation / for in-class presentation
Psychological influences Attitudes, Emotions problem to be solved Project:
(1) Enrich your analysis with
research/observation…

#3 Lecture + Jan 25 Consumer decision- Personality, Identities, Identify (future) target Readings: see K2
Tutorial Jan 26 making process Lifestyle customers and describe them Team 3: prepare topic
Personal and with basic profiling for in-class presentation
Psychological influences Measure motivation, attitudes, Project: continue
(2) emotions research/observation

#4 Lecture + Feb 2 Consumer decision- Culture, Subculture, Social Identify target’s cultural, Readings: see K2
Tutorial Class
Session Feb 3 making process subcultural and social class Team 4: prepare topic
Four Cultural and Social references. for in-class presentation
influences (1) Define empathy map Project: interviews to
pre-test your idea
 Course Agenda
#5 Lecture + Feb 23 Consumer decision- Reference Groups, Roles and Analyze target’s role Readings: see K2
Status
Tutorial Feb 24 making process and status; identify Team 5: prepare topic for
Cultural and Social the reference in-class presentation
influences (2)
Aspirational Group of Project: quick survey to
your target consumer “validate” your assumptions
Design Value about consumer target and fit
Proposition Canvas with value proposition
#6 Midterm March 3 Individual Case Studies
evaluation Presentations
#7 Lecture + March 7 Influence and Weapons of influence Start designing the Readings: see K2
Tutorial March 8 Persuasion (1) campaign Team 6: prepare topic for
in-class presentation
Project: Pre-test
campaign
#8 Lecture + March 27 Influence and Loyalty programs Continue designing the Readings: see K2
Tutorial March 28 Persuasion (2) campaign / build a Team 7: prepare topic for
loyalty program in-class presentation
Project: test campaign
and loyalty program
#9 Lecture + April 11 Influence and Sensorial experiences Refine the campaign (Team 8)/all teams:
Tutorial April 12 Persuasion (3) and loyalty program prepare conclusion with
/enrich them with key lessons learned for
sensorial experience in-class discussion
Project: prepare final
presentation
Session
#10
Four Final evaluation April 14 Group presentations 360° marketing campaigns
Conclusion
Short group presentations /
Lecture
 Topics

1. Needs and wants – Alternatives to the Maslow Pyramid Model

2. Motivation, Attitudes, Emotions
3. Personality, Identities, Lifestyle
4. Culture, Subculture, Social Class
5. Reference Groups, Roles and Status
6. Cialdini’s Weapons of influence
7. Loyalty Programs
8. Sensorial experiences
9. Understanding the Elusive Consumer – Key lessons learned
Culture and Subculture
CULTURE
Etymology
 Culture: Your Definitions?

9 Customer Journey Management

Shared etymology around ‘fostering growth’ CULTURE
from Latin word “cultura”, itself based on Latin verb “colo, is, ere, colui, cultum”
A multifaceted concept
Cultivate, Growth,
elevation of mind and
matter

Arts, Craftsmanship, Inhabit, Colonize

Concrete, Tangible

Take Care, Honor with

Worship
A culture is the sum of learned beliefs, values, and customs that regulate the behavior of members of
a particular society; essentially the lenses through which its individuals see the world.
CULTURE
Consumer Culture Theory

The accumulation of abstract and tangible elements that are shared among members of a
society.

Language, religion, clothing, cuisine, social

habits, music and arts… are some of the
identifiers of a culture.

To properly understand consumer behavior, it

is vital to consider the cultural context in which
consumption takes place.
The culture of European countries as well Societal norms of countries in Far East MAIN CULTURES
as those heavily influenced by European Asia (China, Japan, Vietnam, NK and
immigration (e.g., USA) – its influences are SK) and the Indian subcontinent. Consumer Culture Theory
well spread. Roots in the Greco-Roman Distinction between secular society and
era and Christianity. religious philosophy is not strong.
Geographic region is
Western Eastern Latin widespread (Central
America, South America,
Mexico); places that were
colonized by or influenced
by Spain or Portugal.

Share some (not all)

Essential to all cultures, African Culture is
elements. Centered around
divided into two cultural groups: North Africa
the use of Arabic language
(strong ties to Middle East) and Sub-Saharan
and religion (birthplace of Middle Eastern African Africa (very different from North Africa).
Judaism, Christianity and
Islam).
(Consumer) Socialization

Socialization: The process of absorbing a culture.

Geertz (1973) – no human nature independent of culture; without

interaction with culture, our central nervous system would be
unable to direct our behavior.

CONSUMER socialization:

The process by which people acquire

the skills, knowledge, and attitudes
necessary to function as consumers.
We never see things as
they are, we see them
as we are.”
--Anaïs Nin
15
 CULTURE AND CONSUMPTION
Consumer Culture Theory

Products can reflect underlying cultural processes of a particular society at a

specific period.

 Consumers favor consumption of elements that resonate with cultural priorities.

TV dinner Apple Vegan and

Environmentally-friendly
Beauty products
https://www.nytimes.com/2019/02/26/style/why-you-should-care-about-vegan-
beauty.html#:~:text=In%20the%2030%20years%20that,Revlon%20stopped%20testing%20on%20animals.
 Culture consists of…

17
Surface Culture: Food
Deep Culture: Example

https://www.youtube.com/watch?v=Ip21wSyx16E

19
 Hofstede‘s
Cultural
Dimensions
https://www.hofstede-insights.com/models/national-culture/

https://www.hofstede-insights.com/product/compare-countries/
 Cultures as ‘the software of the mind’
Hofstede
Hall‘s High Context, Low Context Cultures

Edward Hall (1976)

Low Context High Context
Hall‘s
Monochronic
vs.
Polychronic
Orientation

(Hall 1990, 2003)

Customer Journey Management 25
Impact of Culture on Marketing
Can you identify the cultural
differences?
•Nescafe UK (‘Unison’ ad)
https://www.youtube.com/watch?v=nMd2dUr4tks

•Nescafe New Zealand

https://www.youtube.com/watch?v=ppDqfvgGpP0

•Nescafe West Africa

https://www.youtube.com/watch?v=owOhI0OO9Wo
 SUBCULTURE
Consumer Culture Theory
 SUBCULTURE
Consumer Culture Theory

https://www.socialsamosa.com/2017/05/ultra-beliebers/
 A subculture is a group of people with a set of secondary values SUBCULTURES
united by shared experiences. Consumer Culture Theory

Even though members of a subculture band together, they still identify with and participate in the larger society.

• Similar income, or age, • Participation in an • Shared beliefs may • Association via • Similar dialects,
may create a institution may form a create a subculture common interests accents, and
subculture. subculture. around the same such as art, music, vocabulary can form a
values. dance, drama. subculture.
• e.g., the white-collar • e.g., parenthood, •«
middle class, marriage, army, • e.g., religious groups, • e.g., « Beliebers, body • e.g., Southeners vs.
millennials retirement community recycling community., modification Northerners
bikers community

Material Social Belief

Aesthetics Language
Culture Institutions System

(Greif 2010; Solomon, White and Dahl 2017)

 Marketers pay particular attention to population shifts because
they can have dramatic effects on a consumer base, either
GENERATIONAL COHORTS
increasing or decreasing the number of potential customers. As a Subculture
Members of each generational cohort share more than only age; common experiences, values and attitudes
are influenced by the sociocultural elements in the society and profoundly affect product preference.

McKinsey and Company

Subcultures develop around people’s interests,
similarities, and behaviors, allowing marketers to SUBCULTURE AND CONSUMPTION
design specific products for them.
Consumer Culture Theory

 The subculture communities that a person belong to

surpasses stable markers (age, gender, location)
and can be much stronger predictor of behavior or
indicator of brand affinity by the passion which unites
its members.

 More long-lasting than trends, subculture

communities become part of brands’ strategies.

Provide cultural currency Increase personal appeal Identity alignment Higher relevance
(“coolness”)

https://marcommnews.com/marketers-look-to-subcultures-to-drive-consumer-engagement/
Exercise
In pairs / trinomes :

Discuss your food consumption habits

Discussion: what are the points of similarity/differences? Try

to identify the cultural/subcultural influences that shape
your behaviors.
Social Classes
 Distribution and hierarchization of the population into SOCIAL CLASSES
homogeneous groups according to their social differentiation Social Stratification Theory

– Holism - Economic approach (Marx)

Social classes are collectives structured by a specific position in the
economic system, which is defined in terms of their relationship to
ownership and control over the means of production, and their
control over the labor power of others.

– Individualism - Sociological approach (Weber)

Social classes are groups of similar individuals sharing a similar
probable dynamic (Max Weber speaks of Lebenschancen or "life
chances"), without them necessarily being aware of it. The social
35 class is no more than the sum of the individuals.
 Socioeconomic Status (SES) is a measure of social class that is
based on income, education, and occupation SOCIAL CLASSES
Social Stratification Theory

Proportions of Social Classes when Forced to a Pyramid Shape The new social stratification in the Fourth Industrial Revolution.
Source: Adapted from Runciman (1990) Jon-Arild Johannessen (2018)
SOCIAL CLASSES
and Segmentation
SOCIAL-CLASS DIFFERENCES IN FOOD CONSUMPTION

https://www.academia.edu/23963237/Does_social_class_predict_diet_quality
 SOCIAL CLASSES AND PERCEPTION

Advertising May Mislead People into Thinking They’re Part of Shrinking Middle Class:
Research from Wisconsin School of Business finds print ads greatly overrepresented middle,
upper classes while lower class and working class people were underrepresented.

https://business.wisc.edu/news/advertising-may-mislead-people-into-thinking-theyre-part-of-
shrinking-middle-class/
Group Project
YOUR TASK FOR TODAY IS:

1. Analyze how external factors (Culture, Subculture, Social Class) may

influence your target consumer’s attitudes and behaviors – in particular
towards your brand / product category
2. Write a narrative of your target consumer’s average day
3. Design the « Empathy Map » of your target consumer
Remember: you must update
4. Conduct additional research (interviews and/or observations) to finish your work document on the
shared Excel file before the
refining your target consumer profile next session.
Activity - Lifestyles
Write what you imagine their average day looks like, including activities, habits, and content-
consumption patterns.

If possible, run interviews for more accurate, data-backed research.

Write a narrative or list out bullet points of his/her average day.

Example:
Jeff, a marketing strategist who’s paid to understand the cultural zeitgeist and leverage the latest tech trends
into business results. He wakes up at about 6:30 am and goes out for a run. Once he gets back at home, he
jumps into the shower while the coffee is warming up. At 07:45, he wakes up his wife and both get breakfast
together.

Thy have just moved into New York City from Houston. He’s adapted to his new lifestyle.
(…)

He opens up NYT and scrolls through a few headlines. He opens his email and finds 21 new messages—
more than he has time to deal with.

He slips into his sneakers, heads off to his office job.

(…)
Activities – Empathy Map
All Students: for the next session, prepare the content studied and the readings available
on K2.

Please come to our class with 3 to 5 takeaways from the readings (whatever you
found interesting, surprising, boring, etc.)

Team 5: Prepare short presentation + Reading Review

– Topic:

Reference Groups, Roles and Status

 Thank you!

For any questions/problems:

laurence.nahmias-ext@skema.edu