Republic of the Philippines

DON HONORIO VENTURA STATE UNIVERSITY

LUBAO, PAMPANGA

COLLEGE OF BUSINESS STUDIES

CONSUMER BEHAVIOR

Class No: Prepared by:

Name: ISAAC S. RONQUILLO, MBA
Course, Yr. & Sec: INSTRUCTOR I
 COURSE SYLLABUS

1.0 COURSE CODE : MKTG E303

2.0 COURSE TITLE : Consumer Behavior
3.0 NO. OF UNITS : 3
4.0 SCHEDULE : (as seen in the instructor’s program)
5.0 INSTRUCTOR : ISAAC S. RONQUILLO, MBA

6.0 PHILOSOPHY
This course examines the fundamental concepts of consumer behavior which is
essential in successful entrepreneurial venture.

7.0 AUDIENCE
The course is intended for the third year BSBA Major in Marketing.

8.0. UNIVERSITY VISION AND MISSION

UNIVERSITY VISION
A lead university in producing quality individuals with competent capacities to generate
knowledge and technology and enhance professional practices for sustainable national
and global competitiveness through continuous innovation.
UNIVERSITY MISSION
DHVSU commits itself to provide an environment conducive to continuous creation of
knowledge and technology towards the transformation of students into globally
competitive professionals through the synergy of appropriate teaching, research, service
and productivity functions.

9.0 COLLEGE GOAL AND PROGRAM OBJECTIVES

COLLEGE GOAL
To produce marketing experts, entrepreneurs, and economists in the local and global
business arena.
PROGRAM OBJECTIVES
Being one of the most promising College of DHVSU, the College of Business Studies is
committed to achieve the following objectives:
 To develop entrepreneurs who are motivated and knowledgeable in identifying
opportunities, developing and preparing business plans and actually starting and
managing a business.
 To equip students with the theoretical and analytical skills about the new trends,
strategies and issues in business that will give them the proper orientation and
motivation;
 To make students realize the socio-economic benefits and impact in pursuing the
program and eventually starting their own business, thus actively contributing to
the

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 development of the country’s economy and achieving competitive advantage in the
global environment.

TEACHING STRATEGIES/METHODOLOGIES/ENRICHMENT ACT

1. Modules
2. Individual and group reporting
3. Online and offline activities
4. Facilitated learning

COURSE REQUIREMENTS
1. Attendance
2. Recitations and Major Examinations
3. Active participation in online and offline class activities
4. Film assignments

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 Part B: MIDTERM

Cross-Cultural Variations in Consumer Behavior

LEARNING OBJECTIVES

1. Define the concept of culture.

2. Describe core values that vary across culture and influence behaviors. Understand cross-
cultural variations in nonverbal communications.
3. Summarize key aspects of the global youth culture.
4. Understand the role of global demographics List the key dimensions in deciding to enter a
foreign market.

Introduction:

Marketing across country and cultural boundaries is difficult and challenging. As Figure below
indicates, cultures (and countries) may differ in demographics, language, nonverbal
communications, and values. The success of global marketers depends on how well they
understand and adapt to these differences.

Cultural Factors Affect Consumer Behavior and Marketing Strategy

THE CONCEPT OF CULTURE

Culture is the complex whole that includes knowledge, belief, art, law, morals, customs, and any
other capabilities and habits acquired by humans as members of society.

Several aspects of culture require elaboration. First, culture is a comprehensive concept. Second,
culture is acquired. It does not include inherited responses and predispositions. Third, the
complexity of modern societies is such that culture seldom provides detailed prescriptions for
appropriate behavior.

Example: Imagine sweet corn. Most Americans think of it as a hot side dish. However, uses vary
by country. Consider the following:

Instead of being eaten as a hot side dish, the French add it to salad and eat it cold. In Britain, corn
is used as a sandwich and pizza topping. In Japan, school children gobble down canned corn as
an after-school treat. And in Korea, the sweet corn is sprinkled over ice cream.

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The boundaries that culture sets on behavior are called norms, which are simply rules that specify
or prohibit certain behaviors in specific situations.

Norms are derived from cultural values, or widely held beliefs that affirm what is desirable.

Violation of cultural norms results in sanctions, or penalties ranging from mild social disapproval
to banishment from the group.

Values, Norms, Sanctions, and Consumption Patterns

VARIATIONS IN CULTURAL VALUES

Numerous values vary across cultures and affect consumption:

1. Other-oriented values reflect a society’s view of the appropriate relationships between

individuals and groups within that society. These relationships have a major influence on
marketing practice.
2. Environment-oriented values prescribe a society’s relationship to its economic and
technical as well as its physical environment.
3. Self-oriented values reflect the objectives and approaches to life that the individual
members of society find desirable. Again, these values have strong implications for
marketing management.

Other-Oriented Values

Individual/Collective

Whether individual initiation has more value than collective activity?

Does the culture emphasizes and reward individual initiative, or is cooperation with and conformity
to a group more highly valued? Are individual differences appreciated or condemned? Are rewards
and status given to individuals or to groups? Answers to these questions reveal the individual or
collective orientation of a culture. This value is a key factor differentiating cultures, and it heavily
influences the self-concept of individuals. Not surprisingly, consumers from cultures that differ on
this value differ in their reactions to foreign products, advertising and the Internet.

Interestingly, you might expect luxury items to be less important in collectivist cultures. However,
they are quite important, but for different reasons. In individualistic cultures, luxury items are
purchased as a means of self-expression or to stand out. This is often not the case in more
collectivist Asian societies.

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Youth/Age

To what extent do the primary family activities focus on the needs of the children instead of those
of the adults? What role, if any, do children play in family decisions? What role do they play in
decisions that primarily affect the child? Are prestige, rank, and important social roles assigned to
younger or older members of society? Are the behavior, dress, and mannerisms of the younger or
older members of a society imitated by the rest of the society?

While American society is clearly youth oriented, many Asian cultures have traditionally valued the
wisdom that comes with age. Thus, mature spokespersons would tend to be more successful in
these cultures than would younger ones. However, some Asian cultures are becoming increasingly
youth oriented with increases in youth-oriented ads designed to target them.

Extended/Limited Family

The family unit is the basis for virtually all societies. Nonetheless, the definition of the family and
the rights and obligations of family members vary widely across cultures. Cultures differ widely in
the obligations one owes to other family members at various stages of life as well as who is
considered to be a member of the family.

Clearly, marketers need to understand the role of families in the cultures they serve and adapt
accordingly.

Diversity/Uniformity

Do members of the culture embrace variety in terms of religions, ethnic backgrounds, political
beliefs, and other important behaviors and attitudes?

A culture that values diversity not only will accept a wide array of personal behaviors and attitudes
but is also likely to welcome variety in terms of food, dress, and other products and services. In
contrast, a society valuing uniformity is unlikely to accept a wide array of tastes and product
preferences, though such a society may be subject to fads, fashions, and other changes over time.

Environment-Oriented Values

Cleanliness:

If a culture lays too much stress on cleanliness, there is scope for the sale of beauty creams,
soaps, deodorants, insecticides, washing powder, vacuum cleaner, etc. In western countries, a lot
of emphasis is placed on this aspect and perfumes and deodorants are widely used.

Performance Status:

A status-oriented society cares for higher standards of living, and chooses quality goods and
established brand names and high-price items. This is true for the United States, Japan,
Singapore, Malaysia, Indonesia, Thailand and most of the Arabian countries.

Tradition/change:
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Tradition-oriented societies stick to the old product and resist innovation or new techniques. In
traditional societies, there is less scope for new products, and old traditional products are in greater
demand.

Risk-taking/security:

An individual who is in secure position and takes a risk can be either considered venture some or
fool hardy. This depends on the culture of the society.

For developing, new entrepreneurs risk taking is a must. It leads to new product development, new
advertising themes and new channels of distribution. Security-oriented societies have little chances
of development and innovation.

Problem solving/fatalist:

A society can be optimistic and have a problem-solving attitude or, be inactive and depend on fate.
This has marketing implications on the registering of complaints when consumers are dissatisfied
with the purchase of the products. Advertising plays an important part and gives guidance to the
consumer, and removes these doubts to a great extent.

Nature:

There are differences in attitude over nature and its preservation. Consumers stress on packing
materials that are recyclable and environment friendly. Some countries give great importance to
stop environmental pollution and to recycling of products.

Active/passive:

Whether a physically active approach to life is valued more highly than a less active orientation. An
active approach leads to taking action all the time and doing nothing. In many countries, women
are also taking an active part in all activities. This makes the society a highly active one, where
everybody is involved in work.

Material/non-material:

In many societies, money is given more importance, and a lot of emphasis is on being material
minded. While in many societies things like comfort, leisure and relationships get precedence over
being materialistic.

Materialism can be of two types.

Instrumental materialism, which is the acquisition of things to enable one to do something or

achieve something. Cars are used for transportation. People like to possess things of material
value which would help them to bring efficiency; other material objects can be computers, washing
machines, microwave ovens, etc.

Terminal materialism: It is the requisition of materialism for the sake of owing it rather than for
use Art is acquired for owing it. Cultural differences play an important role in this type of
materialism.
Instrumental materialism is common in the United States of America, where Japanese
advertisements are mostly dominating terminal materialism.

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Antique collections are another example of terminal materialism.

Hard work/leisure:

This has marketing implications on labor saving products and instant foods. Some societies value
hard work and consider it as a fuller life. Others adopt labor saving devices and instant foods to
have more leisure time at their disposal.

Postponed gratification/immediate gratification:

Should one save for the rainy day or live for the day? Sacrifice the present for the future, or live
only for the day? Some countries like The Netherlands and Germany consider buying against
credit cards as living beyond one’s means, whereas credit cards are very popular in America and
other countries having a different cultural orientation, some prefer cash to debt. Some societies
save for a morrow, others enjoy the present and spend lavishly.

Sexual gratification/abstinence:

Some traditional societies curb their desires, food, drinking or sex, beyond a certain requirement.
Muslim cultures are very conservative, and do not want their women to be seen in public or be
exposed, so the Polaroid camera which gives instant photographs can be purchased and pictures
can be taken by the family members without their women being exposed to the developers in a
photo lab.

In other cultures, attractive female pictures are used for the advertisement of products. This may
be considered very normal in these societies whereas, other societies may consider it strange.

Humor/Serious:

Should we take life lightly and laugh it off on certain issues or, take everything seriously? This is
another aspect of culture. Advertising personnel selling techniques and promotion may revolve
around these themes and the way the appeal for a product is to be made in various cultures.

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