TOPICS IN MARKETING:

SESSION 10
SOCIAL INFLUENCES
CONSUMER DECISION MAKING
OUTLINE

•Social Influences and Persuasion

•Social groups and group power
•Social influences as central cues
•Social influences as peripheral cues
•Leveraging social influences for persuasion
SOCIAL GROUPS

› Share common goals and interests

› Share a set of expectations, rules
and roles for group members
› View themselves as part of a
common social unit
› Communicate with, and influence
each other
SOCIAL GROUPS

› Share common goals and interests

› Share a set of expectations, rules
and roles for group members
› View themselves as part of a
common social unit
› Communicate with, and influence
each other
REFERENCE GROUPS

• Individuals who are

important to consumers
and thus influence their:
› Aspirations
(motivations & needs)
› Evaluations (attitudes &
preferences)
› Buying behaviour
REFERENCE GROUPS

• Primary:
› Members have direct
and frequent contact
› Strong social ties

• Secondary:
› Members have indirect
or infrequent contact
› Weak social ties
SOCIAL INFLUENCES & CONSUMPTION

•What others think affects our opinions (i.e.,

beliefs) about the value products in the market
have to us

→ What does this imply for consumer decision

making?
SOCIAL INFLUENCES & SYSTEM 2

THEORY OF REASONED ACTION – EXPECTANCY VALUE

Consumers take the views of relevant others (subjective information)
into account when deciding - reflective inferences Central Processing
SOURCES OF SOCIAL POWER
TYPES OF SOCIAL INFLUENCES

• Informational:
› Reviews, referrals and
recommendations
› Expert power
• Utilitarian:
› Conform to expectations
› Reward or coercive power
• Value-expressive:
› Adopt and express desirable values and image
› Referent power
Any questions?
TOPICS IN MARKETING:
SESSION 11
IMC PLAN: INTRODUCTION
OUTLINE

•Integrated Marketing Communications

› MC System
› MC Process
•IMC Plan – Part I
› Strategy
› Audience
› Objectives
MARKETING COMMUNICATION SYSTEM

•MC: means by which firms attempt to inform, persuade

and remind its customers about its value proposition as
well as build strong relationships with them
› The specific mix of advertising, sales force, promotional,
public relations, direct and digital marketing efforts used to
communicate an offer
MARKETING COMMUNICATION PROCESS
TRADICIONAL MC: BROADCASTING
CONTEMPORARY MC: NARROWCASTING
INTEGRATED MARKETING COMMUNICATIONS

• MC strategy has to be perfectly

coordinated with overall marketing
strategy: product, package, price &
sales point communicate the same
value proposition to consumers

• MC strategy must be perfectly integrated with firm strategy:

has to deliver a congruent positioning for all offers, in order
to strengthen brand image and equity
STAGES OF AN IMC PLAN

A. Analyze the strategy

B. Identify the target audience
C. Establish communication objectives
D. Design the message
E. Select the channels/media mix
F. Establish budget
G. Assess results
ANALYZE THE STRATEGY

1. The macro- and market environment

2. The company and its history
3. The product/brand of interest, its past and its
future – product/market growth strategy
4. The current demand for the brand/product
5. The marketing strategy for brand/product:
segmenting, targeting, positioning
6. Current marketing tactics for brand/product
7. Current communication plan for brand/product
ANSOFF’S MATRIX
TARGET AUDIENCE
DECISION MAKING HIERARCHIES
CONTACT STRATEGY
COMMUNICATION OBJECTIVES
COMMUNICATION OBJECTIVES

•Help reach broader marketing objectives, like

market share, customer loyalty or brand equity:
› Develop brand awareness
› Increase category demand
› Change customer beliefs and attitudes
› Enhance purchase actions
› Encourage repeat purchases
› Build customer traffic
› Enhance firm image
› Reinforce purchase decisions
ANY QUESTIONS?
TOPICS IN MARKETING:
SESSION 11
DECISION MAKING: ELM & PERSUASION
CONSUMER DECISION MAKING
OUTLINE

•Persuasion
•System 2 vs System 1 Processing
•Dual Process Processing & Advertising
•The Elaboration Likelihood Model
RECAP: DUAL PROCESS MODELS
SYSTEM 1 SYSTEM 2
Cluster 1 (Consciousness)

Unconscious (preconscious) Conscious

Implicit Explicit

Automatic Controlled

Low effort High effort

Rapid Slow

High capacity Low capacity

Defaultprocess Inhibitory

Holistic, perceptual Analytic, reflective

Cluster 2 (Evolution)

Evolutionarily old Evolutionarily recent

Evolutionary rationality Individual rationality

Shared with animals Uniquely human

Non-verbal Linked to language

Modular cognition Fluid intelligence

Cluster 3 (Functional characteristics)

Associative Rule-based

Domain-specific Domain-general

Contextualised Abstract

Pragmatic Logical

Parallel Sequential

Stereotypical Egalitarian

Cluster 4 (Individual differences)

Universal Heritable

Independent of general intelligence

Linked to general intelligence

Limited by working memory capacity

Independent of working memory
DUAL-PROCESS MODELS

•Attitudes & Preferences can be formed before or

after cognition and behaviour

•Attitudes & Preferences can be formed even if

category knowledge or involvement are low

• When involvement and the ability to think about ACV

are low, consumers will elaborate less on product
decisions and attend more to subjective information
ELABORATION LIKELIHOOD MODEL (ELM)

CENTRAL PROCESSING (S2)

REFLECTIVE INFERENCING

PERIPHERAL PROCESSING (S1)

HEURISTIC INFERENCING

Dual process model explaining:

• Why we sometimes think deeply (S2) but other times don’t (S1)
• How that impacts our attitudes, decisions & behaviors (aka, persuasion)
• What that implies to the design of communication (i.e., to advertising)
ELM: EFFECT ON ATTITUDES & DECISION MAKING
ELM: EFFECT ON AD MESSAGE DESIGN
ELM: PUTTING IT ALL TOGETHER

Chapter 11: The Elaboration Likelihood Model

Richard E. Petty & Pablo Briñol
In: Handbook of Theories of Social Psychology: Volume 1
Edited by: Paul A. M. Van Lange, Arie W. Kruglanski & E.
Tory Higgins
DOI: http://dx.doi.org/10.4135/9781446249215.n12
Subject: Social Psychology (general)
SOCIAL INFLUENCES & SYSTEM 2

THEORY OF REASONED ACTION – EXPECTANCY VALUE

Consumers take the views of relevant others (subjective information)
into account when deciding - reflective inferences Central Processing
SOCIAL INFLUENCES & SYSTEM 1

THE SCIENCE OF PERSUASION

Taking the views of relevant others into account with heuristic
inferencing using Peripheral Processing

→ 1. Home: see videos in Moodle

→ 2. Group challenge: how could
you use 1 shortcut in the design
of your IMC plan message?
SOCIAL INFLUENCES & SYSTEM 1

THE SCIENCE OF PERSUASION

Taking the views of relevant others into account with heuristic
inferencing using Peripheral Processing
People:
1. Feel obliged to give back
2. Want more of the things they can have less of
3. Follow the lead of credible, knowledgeable experts
4. Want to be consistent with things previously said or
done
5. Prefer to say yes to others they like
6. Look to the behaviors of others to determine theirs
Any questions?
TOPICS IN MARKETING:
SESSION 16
IMC Plan: Message Design
OUTLINE

•IMC Plan: Message Design

•Content
STAGES OF THE IMC PLAN

A. Analyze the strategy

B. Identify the target audience
C. Establish communication objectives
D. Design the message
E. Select the channels/media mix
F. Establish budget
G. Measure results
DESIGN THE MESSAGE

› What to say?  Content

› How to say it?  Structure and Format
› Who should say it?  Source
DESIGN THE CONTENT

• Well-designed & effective marketing content:

› Attracts attention  establishes connection

› Holds interest  promises reward or solution
› Arouses desire  inspires action
› Obtains action  sticks into memory
STANDARD LEARNING HIERARCHY
CONTENT

•Rational Appeals:
› Standard learning hierarchy
› Active information processing
› High (cognitive) involvement
› Relate to the target audience’s
self-interest
› Utilitarian value
› Show how the product delivers
claimed solutions or benefits
EXPERIENTIAL HIERARCHY
CONTENT

•Emotional Appeals:
› Experiential hierarchy
› Capture attention and trigger affective responses that
directly induce liking and (consumption) behavior
› Confer meaning, improve understanding and increase
memorability and recall
› High (emotional) involvement
› Relate to audience’s needs, aspirations and feelings
› Hedonic, symbolic or interest value
CONTENT

• Fear
Appeals:
CONTENT

• Moral
Appeals:
CONTENT

• Humor
Appeals:
CONTENT

• Sex
Appeals:
BEHAVIORAL HIERARCHIES
CONTENT

•Action Appeals:
› Low involvement or behavioral hierarchies
› Limited information processing or affective responses
› Driven by contextual cues “Unplanned Buying”
› Utilitarian or Hedonic value
› Signal temporary value deals, scarcity or immediate
rewards
CONTEXT: STORE ATMOSPHERICS
CONTENT

• Action
Appeals:
UNPLANNED BUYING
UNPLANNED BUYING

▮ Impulsivity - Represents how sensitive a consumer

is to external cues and immediate rewards

▮ Consumer self-regulation - Tendency for consumers

to inhibit outside, or situational, influences from
interfering with shopping plans
• Action-oriented: High capacity to self-regulate
• State-oriented: Low capacity to self-regulate
STORE ATMOSPHERICS

▮ Two factors help create a competitive advantage:

• Fit - Appropriateness of the elements for a given environment
• Congruity - Consistency of the elements with one another

▮ Elements
• Odors
• Music
• Color
• Merchandising
• Social setting
▪ Crowding - Nonlinear effect
Any questions?
TOPICS IN MARKETING:
SESSION 17
IMC Plan: Message Design
OUTLINE

•IMC Plan: Message Design

•Structure
•Format
•Source
STAGES OF THE IMC PLAN

A. Analyze the strategy

B. Identify the target audience
C. Establish communication objectives
D. Design the message
E. Select the channels/media mix
F. Establish budget
G. Measure results
DESIGN THE MESSAGE

› What to say?  Content

› How to say it?  Structure and Format
› Who should say it?  Source
DECISION MAKING HIERARCHIES
STRUCTURE

•Informational Strategy
› Elaborate on unique, tangible benefits
› Effects of difference ad features on persuasion:
STRUCTURE

• Arguments:
› One-sided or two-sided?
› Positive or negative first?
› Refutational  weakly negative
followed by strongly positive
(dismissive)

• Effective with well educated

but not yet loyal audiences
STRUCTURE

•Drawing conclusions or not?

› Own inferences  stronger, more
accessible attitudes
› But leaving conclusions open can
backfire
•When to let the consumer draw own conclusions?
› High involvement  people pay attention and infer the
message spontaneously
› Familiarity with product category
› Argument is easy to follow and unambiguous
STRUCTURE

•Transformational Strategy:
› Elaborate on unique, intangible benefits & values to increase
involvement: emotions, feelings, image, status, goals
› Independent of appeal
STRUCTURE

•Aim to the head or to the heart?

›  High on attention and liking, low on
comprehension, fast to decay and
distractive
›  High on recall and understanding
of brand claim
› Challenge: first get attention and then
deliver message! BORROWED INTEREST
FORMAT: ELEMENTS

• Words or Pictures?
› High involvement  words, facts
› Low involvement or experiential decision
making  visuals

• But factual information is more effective

when reinforced by pictures
› Visuals capture attention and enhance
recall, while facts about attributes deliver
the message
› Require frequent exposures (decay)
FORMAT: EXECUTION

LECTURE + AUTHORITATIVE +
TESTIMONIAL + INFORMATIVE

DRAMA + STORYTELLING

METAPHOR + FANTASY
ANIMATION + ALLEGORY + DEMONSTRATION
FORMAT: EXECUTION

METAPHOR + RESONANCE
FORMAT: EXECUTION

SLICE-OF-LIFE
SOURCE: TYPES

• Company • Spokesperson
› Company (CEO, staff)
› Experts
› “People like us”
› Celebrities
› Influencers
SOURCE: FEATURES

• Attractiveness
• Physical
• Personality
• Similarity
• Likeability
•Credibility
•Trustworthiness
• Expertise
• Appropriateness
MEMBERSHIP GROUPS
SOURCE: CELEBS

› Stars are highly recognizable and draw

attention and affect
› They increase awareness and improve
brand image
› Relevant for experiential consumption
and mature brands with high parity
› Confer (+) meanings to brands and
products: symbolize status, affluence,
gender, lifestyles, social class,
personality…
ASPIRATIONAL GROUPS
SOURCE: CELEBS

• Celebrities are expensive and can be a liability

› Withdrawal, scandal or overexposure
› Other endorsers: cartoons, mascots, animals, avatars
Any questions?
TOPICS IN MARKETING:
SESSION 18
IMC Plan: Channel Selection
OUTLINE

•IMC Plan: Channels

• Integrated Marketing Communications
- Goals, actors & system
• Channel Selection:
- Channel strengths and weaknesses
- Channel strategy
STAGES OF THE IMC PLAN

A. Analyze the strategy

B. Identify the target audience
C. Establish communication objectives
D. Design the message
E. Select the channels/media mix
F. Establish budget
G. Measure results
MARKETING COMMUNICATION SYSTEM

•MC: means by which firms attempt to inform, persuade

and remind its customers about its value proposition as
well as build strong relationships with them
› The specific mix of advertising, sales force, promotional,
public relations, direct and digital marketing efforts used to
communicate an offer
INTEGRATED MARKETING COMMUNICATIONS

• MC strategy has to be perfectly

coordinated with overall marketing
strategy: product, package, price &
sales point communicate the same
value proposition to consumers

• MC strategy must be perfectly integrated with firm strategy:

has to deliver a congruent positioning for all offers, in order
to strengthen brand image and equity
MARKETING COMMUNICATION CHANNELS
CHANNEL STRATEGY

• How to optimally allocate MC budgets to channels?

› Advertising & Packaging

› Promotions & Sales Force
› Public Relations & Social Responsibility
› Events, Sponsorships
› Direct Marketing
› Digital Marketing
• Same sector firms can differ a lot in allocation
• Channels are typically used in tandem
ADVERTISING

PROS CONS
Broad audience High clutter

High frequency: low cost per Low recall and carryover

contact
Image and legitimacy Impersonal

Pervasive and expressive High cost per ad

Flexible and creative Little dialogue

SALES PROMOTIONS

› Price-offs
› Coupons, vouchers
› Refunds, rebates
› Volume discounts
› Bonus packs
› Sampling
› Contests, sweepstakes
› Trade promotions
SALES PROMOTIONS

PROS CONS
Wide assortment Short lived

Attract and inform Less attractive in the long-run

Very persuasive Increases price sensitivity

Flexible and expressive May hurt brand image and

profits
Immediate impact on trials and Easily duplicated
repeated sales
SALES FORCE

PROS CONS
Face-to-face contact Expensive

Direct and interactive channel Long-term resource

commitment
Very persuasive and Require talent, training and
expressive experience
Flexible, ideal for providing
complex product information
Relational, long-term
PUBLIC RELATIONS

PROS CONS
Credible Underused

Subtle and persuasive Low media cooperation

Strengthens image and Requires dedicated strategy,

reputation with stakeholders resources and media
Free of charge

Supports CSR activities

Mitigates impact of scandals

PUBLIC RELATIONS: TOOLS
SPONSORSHIPS AND EVENTS

PROS CONS
Relevant to consumers Paid PR media

Highly targetable Requires dedicated strategy,

resources and media
High engagement, relational Live

Subtle and persuasive

Strengthens image

Flexible, cross promotions

SPONSORSHIPS AND EVENTS
DIRECT MARKETING

EARLY CONTEMPORARY
Mail E-mail
Catalogues Retail websites
Telemarketing Mobile marketing

TV shopping Interactive TV

Personal sales DYO point-of-sales

Direct-order marketing Database marketing

CONTEMPORARY MC CHANNELS & MEDIA
DIGITAL MARKETING

PROS CONS
Highly targetable and Big upfront investment and reliance
customizable on tech innovation
Direct contact Requires dedicated strategy,
resources and media
Flexible and interactive Narrow reach, demands continuous
placement and high integration
Timely and ubiquitous Low response, demands high
frequency, generates clutter
Discrete and personal Demands substantial data
management capabilities and
resources
CHANNEL SELECTION

• How to optimally allocate the MC budget across

marketing channels depends on:
› Communication objectives
› Buyer decision making stage
› Product life cycle stage
› Product market and sales channel
CHANNEL SELECTION
CHANNEL SELECTION
Any questions?
TOPICS IN MARKETING:
SESSION 19
IMC Plan: Media Selection
OUTLINE

•IMC Plan:
• Media Mix:
- Broadcasting vs. Narrowcasting
- Consumers as Media: Word-of-Mouth
- Conventional vs. Alternative Media
STAGES OF THE IMC PLAN

A. Analyze the strategy

B. Identify the target audience
C. Establish communication objectives
D. Design the message
E. Select the channels/media mix
F. Establish budget
G. Measure results
MEDIA MIX

• How to optimally allocate MC budgets to media?

› Broadcasting vs. Narrowcasting

› Conventional vs. Alternative Media
MARKETING COMMUNICATION PROCESS
BROADCASTING
NARROWCASTING
MARKETING COMMUNICATION CHANNELS
WORD-OF-MOUTH (WOM): C2C CHANNEL

• Information on products, services and consumption

experiences that is transmitted between consumers
› Highly effective form of marketing
› More effective at latter stages of decision making, with low
knowledge, high involvement purchases, e.g. new offers
› WOM → E-WOM
› Organic vs. Amplified
ELECTRONIC-WOM
ORGANIC WOM

• Positive WOM
• Negative WOM
› Weighed more heavily
› Easier to spread, specially online
› Determined detractors
› Information distortion/rumours
• Themes:
› Injustice “Brand does not listen to me”
› Identity “Brand is bad, not simply wrong”
› Agency “We bond over our anger about the brand”
AMPLIFIED WOM

•Buzz marketing
› Offline promotional tactics
focusing on generating
excitement about the offer
and motivate WOM
•Viral marketing
› Use online tech to
facilitate WOM
› Create content that is
funny, weird or surprising
› Consumers will share it
AMPLIFIED WOM

•Guerrilla marketing
› Use unconventional offline means
to generate WOM and push offers
› Unconventional locations
› Brand Ambassadors
•Stealth marketing
› “Under the radar”
› Deceives consumers about brand’s
involvement
› Shilling and Infiltrating (e.g.,
fake bloggers, “influencers”)
OPINION LEADERS

› Consumers with a great deal of influence on the

consumption behaviour of others
› Typically highly knowledgeable and involved with the
offer  Expert Power
› Expected to provide hands-on, unbiased evaluations
› Among the first to try/buy  Early Adopters, Novelty
Seekers
› Socially active  Influencers (popular, authentic)
› Referent Power ( from celebrity endorsement)
IDENTIFY OPINION LEADERS
MARKET MAVERISM

•Market Mavens
› Consumers actively involved
in transmitting all types of
marketplace information
about an offer
› Just into shopping and being
aware of what’s happening in
the market
› Overall knowledge about
how and where to buy stuff
OTHER OPINION LEADERS

•Surrogate consumers
› Marketing intermediaries hired to provide product information and
advice to consumers, or make purchase decisions for them
E.g. Art experts, interior decorators, financial advisors, travel agents,
style consultants, influencers

•Cybermediaries
› Online tools help consumers filter and
organize market info, so that they can
evaluate offers and make a purchase
decision more efficiently
E.g. directories and portals, blogs and discussion forums, intelligent
agents (bots), recommendation agents
MEDIA: BROADCASTING

• Conventional
› Printed Media: newspapers, magazines
› Network Media: radio, TV
› Outdoor Media: billboards, outdoors, muppies, posters,
entertainment, transports, parking lots, leaflets
› Promotional Media: coupons, discounts, prizes, gifts
• Alternative
› Printed Media: websites, online stores, e-mail, newsletters
› Network Media: satellite, cable and Internet radio & TV networks,
product placement, branded entertainment
› Other Media: guerrilla marketing, buzz marketing, viral marketing,
advergaming, branded events, POP, contests, cars, lifts, tattoos, …
MEDIA: NARROWCASTING

• Conventional
› Advocate Media: salesforce, brand ambassadors
› Expert Media: opinion leaders (surrogate consumers, market
mavens)
› Direct Marketing: mail, catalogues, TV shopping, telemarketing

• Alternative
› Advocate Media: cybermediaries, kiosks, virtual reality, avatars
› Social Media: E-WOM, influencers, posts, likes, blogs, tweets,
photos, videos, brand communities, consumer content, promotions
› Direct Marketing: mobile marketing, e-commerce websites,
interactiveTV
Any questions?
TOPICS IN MARKETING:
SESSION 20
IMC Plan: Media Planning & Results
OUTLINE

•IMC Plan: Budget & Results

• Budget:
- Media planning
- Media costs & effectiveness
• Results:
- Ad evaluation
- Buying behavior evaluation
STAGES OF THE IMC PLAN

A. Analyze the strategy

B. Identify the target audience
C. Establish communication objectives
D. Design the message
E. Select the channels/media mix
F. Establish budget
G. Measure results
IMC BUDGET

• Type I Budgets: how can I optimally allocate my resources to

different media, in order to maximize ROI within a given
budget?
› What We Can Afford
› Competitor Parity
› Percentage of Sales
› Payout Planning
• Type II Budgets: how can I optimally allocate my resources
to different media, in order to achieve MC objectives with the
lowest possible budget?
Objectives → Media Plan → Costs → Minimize → Sum
MEDIA BUYING
MEDIA PLANNING

• Requires knowing the effectiveness (results) and efficiency

(cost) of media, message and schedule combinations for a
specific target audience

• Media Effectiveness:
› Effective reach: % of target audience members that must
be exposed to a given message in each medium
considered, to reach a specific MC objective
› Effective frequency: no. of times that 1 target audience
member must be exposed to a given message in each
medium considered, to reach a specific MC objective
MEDIA STRATEGY: EXAMPLE
MEDIA PLANNING: MEN/PRINT
MEDIA PLANNING: WOMEN/TV
RESULTS: MESSAGE EVALUATION

• Which combination of message, channel and media will

be most effective and efficient after all?
• Firms and advertising agencies constantly seek chances
to test different messages designs, media placement and
schedules
• Many firms specialize in tracking advertising results
RESULTS: MESSAGE EVALUATION

• Physical design, cognitive & affective elements

METHOD TIMING
Concept testing Prior to ad development

Copytesting Final stages, finished ad

Attitude/opinion tests During/after ad development

Emotional/Physiological During/after ad development

reaction tests
Recall/Recognition tests After ad launch

Persuasion analysis After ad launch

RESULTS: AD TRACKING RESEARCH

• Track ads after launch (e.g. Nielsen, TNS, Marktest)

• Monitors brand performance and advertising
effectiveness
• Specific time test or continuous tracking
• Test participants are shown brief portion of ad or stills
with brand name removed
• Metrics:
› Brand and ad recognition
› Unaided brand awareness
› Memorability; Likability
› Unaided and aided message/campaign recall
RESULTS: OFFLINE BEHAVIOR EVALUATION

• Consumer responses, performance, actions

BEHAVIOR DATA
Retail sales Scanner data, POS

Response rates Surveys, CRM, Direct

Marketing Efforts
Redemption rates Sales promotion offers

Test markets Scanner data, POS

Purchase simulation tests Simulated store sales

RESULTS: ONLINE BEHAVIOR EVALUATION

E-commerce ad metrics
• Click-through rate (CTR)
• Cost-per-click (CPC)
• Conversion ratio (Cv)
• Cost-per-conversion (CPCv)
• Average order value (AOV)
• Revenue-per-visit (RPV)
• Shopping cart abandonment
SOCIAL MEDIA MARKETING

Social Networks
• Networks of individuals formed on the basis of their common
goals, interests and/or relationships

Social Media
• Media enabling “many2many” digital communications or
interactions (not necessarily networked, e.g. wiki, whatsapp)

Social Networking Websites

• Privately-held social media apps supporting social networking
activities (e.g., Facebook, Instagram)
SOCIAL MEDIA MARKETING: GOALS

› Increase brand exposure

› Engage present and prospect customers
› Facilitate customer interactions with brand
› Generate sales leads
› Increase traffic to stores
› Strengthen brand image
› Improve organic search rankings
› Gather customer intelligence (social listening)
› Increase brand loyalty
RESULTS: ONLINE BEHAVIOR EVALUATION

Social Media Page Metrics Social Media Page Metrics

Volume Engagement
• Views (total audience) • Mentions
• New • Shares - Reposts/re-tweets
likes/subscribers/followers • Likes
• Lost • Comments
likes/subscribers/followers
• Time on page
• Location
• Visits per (day, month)
• Time/day of visit
• Bounce rate
TOPICS IN MARKETING:
SESSION 21
Consumer Culture
OUTLINE

•Consumer Culture
•Cultural influences on consumption

•International Marketing
•Standardized vs localized strategies
•Global brands
CONSUMER DECISION MAKING
WHAT IS CULTURE?

• The socially-relevant meanings, norms, traditions,

rituals and customs shared by members of a
community, and accumulated over time

•Expressed through the

production of material
and immaterial heritage
(e.g., cuisine, tools,
design, songs, tales)
SOCIAL INFLUENCES

• Normative: set of fundamental standards

of conduct (values, attitudes, behaviors)
› Large, formal institutions
› Religious or political organizations
› Parents, teachers, leaders

• Comparative: norms, rituals and

traditions present in everyday life
› Small and informal groups
› Direct impact on consumption
SOCIAL INFLUENCES

• People tend to follow the expectations of others

about how to think and act  Conformity
• Level of conformity depends on:
› Cultural traits
› Motivation to belong
› Fear of sanctions
› Extent of consensus or unanimity
› Number and persuasiveness of influencers
› Susceptibility to interpersonal influence
CONFORMITY

ATTENTION TO SOCIAL COMPARISON INFORMATION SCALE

It is important to me to fit in the group of people I am with

At parties I usually try to behave in a manner that makes me fit in

I tend to pay attention to the way others are dressed

I make an effort to avoid dressing clothes that are no longer fashionable

My behaviour often depends on how I believe others wish me to behave

WHY CULTURE AFFECTS BEHAVIOR

•Culture represents the ‘personality’ of a

community and therefore shapes the self-
concept and the social identity of its members

• It translates into a set of commonly held beliefs

about what is socially acceptable or desirable
behaviour → including consumption behaviour
WHY CULTURE AFFECTS BEHAVIOR

•Culture is the lens

through which we see
the world, prioritize our
needs, view available
offers and make
product choices
WHY CULTURE AFFECTS BEHAVIOR

Culture confers meaning, and therefore also positive or negative

value, to behaviour
CULTURAL NORMS

Cultural Norm • Enacted norms: explicitly decided

Rule that specifies the upon by communities
appropriate behavior in a (e.g., green light equals “go”)
given situation within a
specific culture.
• Crescive norms: embedded in culture
› Customs: norms handed down from
the past that control basic behavior
Cultural Sanction
Penalty associated with
› Mores: customs with strong moral
performing a non-gratifying or overtones
culturally inconsistent › Conventions: norms about conduct in
behavior.
everyday life

Societal role expectations form the basis for norms and sanctions
HOW CULTURE AFFECTS BEHAVIOR
HOW CULTURE AFFECTS BEHAVIOR
WHERE DOES CULTURE COME FROM?

› Ecology: the way a system adapts to its habitat

› Social structure: how social life is maintained
› Ideology: set mental characteristics of people and
the way they relate to each other
HOW DO WE LEARN CULTURE?
HOW DO WE LEARN CULTURE?

Acculturation

• Process by which consumers come to learn a

culture other than their natural, native culture
CORE SOCIETAL VALUES CSV
CSV COUNTRY SCOREBOARD

• Low difference between countries indicates similar cultural background

• Consumers are likely to value the same products and experiences
GLOBAL BRANDS
INTERNATIONAL MARKETING

• Standardized strategies: e.g., Starbucks

› Critics: Starbucks obliterates local customs
› Some favor local coffee/café culture and see expansion
as a threat to their country’s culture and economy
• Etic perspective: develop one approach for multiple,
homogenized markets
• Take advantage of economies of scale
• Few have been successful in creating global brands
without any local adaptations
GLOBAL BRANDS
INTERNATIONAL MARKETING

• Localized strategies: e.g., Disney

› Expansion abroad brought important culture lessons
› Disneyland Paris went through several strategies,
but in Hong Kong a localized strategy was followed
from start
• Emic perspective: Each culture is unique and has a
local character
• Customize offer to match local values, preferences
and lifestyles
GLOBAL BRANDS

Glocalization: marketing
strategy may be global,
but marketing tactics
should often be local

“Think globally, but act

locally”
CULTURAL DIFFERENCES: VERBAL

“Nothing sucks like

an Electrolux!”
CULTURAL DIFFERENCES: NON-VERBAL
CULTURAL MARKETING BLUNDERS

Poor taste? Ignorance? Insensitivity? Prejudice?

GOOD PRACTICE

• Learn about foreign markets and consumers first

• Establish local partnerships and consider hire
cultural assimilators
• Identify and target relevant audiences in foreign
markets
• Carefully study local marketing communications
and consider developing a local plan
• Remain mindful and respectful of local values,
customs, language and regulations