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ENVIRONMENTAL INFLUENCES ON CONSUMER BEHAVIOR

 The factors that influence consumer behavior is

classified into : 1) Internal Factors or Individual Determinants 2) External Factors  External factors do not affect the decision process directly, but percolate or filter through the individual determinants, to influence the decision process.

Individual Determinants

External Factors

 Motivation and    

 Cultural influences  Sub-culture Influences  Social class Influences  Social group Influences  Family Influences  Personal Influences

involvement Attitudes Personality and selfconcept Learning and Memory Information processing

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values. . beliefs. and customs that serve to regulate the consumer behavior of members of a particular society.  Culture includes almost everything that influences an individual’s thought processes and behaviors.  Complex concept that includes. art. customs and any other capabilities acquired by humans as members of society.CULTURE  The sum total of learned beliefs.  Culture gradually changes with time. morals. knowledge. law.

 Influences our preferences  Is acquired from our experiences and learning.Culture……  Is a comprehensive concept.  Supplies the boundaries for behavior in modern societies. .  Consumers are seldom aware of cultural influences.

Characteristics of Culture  Culture is invented  Culture is learned  Culture is socially shared  Culture are similar but different  Culture is adaptive  Culture satisfies needs. It is gratifying and persistent. .

Saving rates dropping Metro sexual male arrives in India . Pub culture in its infancy Women gain confidence with color cosmetics Fair skin in the wish list Body odour creating a stink Films dictate fashions Skin is in PC games attracting the younger generation No do-it-yourself culture Temple visits attracting followers.Emergence of new consumer culture             Eating out grows in urban India.

Influence of culture on Consumer Behavior  Consumption of food. clothing and housing  Perception on Message and Media  Receptivity to new ideas and change. .

the North.  Products are designed to suit a target group of customers which have similar cultural background and are homogeneous in many respects. Hindus of the South differ in culture from the Hindus of the North and so on. Hindu culture. Muslim culture. we have many subcultures. East and the West. there are many groups or segments of people with distinct customs. the culture of the South.  For eg . more complex society.In the Indian culture itself. .SUBCULTURE  Within a culture . traditions and behavior.  Subculture is a distinct cultural groups that exists as a identifiable segment within a larger.

Relationship between Culture and Subculture .

cook.Examples of major Subcultural categories CATEGORIES Nationality Religion Geographic region Race Age Gender Occupation Social class EXAMPLES Greek. Mormon Eastern. Southern. Causasian Teenagers. Xers. male Bus driver. Hindu. upper . scientist Lower. middle. Southwestern African American. Asian. elderly Female. Italian. Russian Catholic.

Religious Subculture Age Subculture Gender Subculture Region Subculture Nationality .Types  Ethnic Subculture – Blacks. Hispanics. Euro Americans. Native Americans etc. Asian      Americans.

Black or African-American Subculture  Largest Racial minority in US  More than 36 millions consumers in US  Younger with very high numbers living in cities.  Consumers expect respect within the marketplace and must feel a sense of acceptance .  The group is very diverse  1999 earnings : $ 491 billion  1999 purchase : $ 207 billion (ninth largest economy in the world).

Contd.  A high proportion of families are headed by women.  Advertising often appeals to the strength black women portray in life.  Psychographic characteristics – lifestyle pattern .  Black women influences many purchases that might otherwise be purchased by men..

This ad for Vibe Vixen magazine targets the African American Urban subculture .

An AD showing many racial Subculture .

largely because of immigration.Asian American Subculture  High incomes. Vietnamese. Japanese. Korean. High Education  Multicultural : Chinese. when making important decisions consideration of family comes first. every family should have a son etc.  The population in US is almost 8 million.. 3 % of total population. Filipino. caring for one’s aged parents is the duty of everyone. Malaysian. .  Psychographic Characteristics – Women’s place is in the home. Asian Indian.

 The most effective advertising to Chinese -Americans reflects traditional family values. .  Language barrier may be a challenge for marketers.  They shop mostly within their communities.Similarities  They are cost conscious and very brand loyal.

Differences  Significant differences in household decision     making. Differences in use of homeland media.English best for broadcast.male or female dominance Differences in reasons for coming to. such as colors. themes in ad . desire to return to homeland Differences in Innovativeness. Similarities and differences in reactions to marketing stimuli. Asian language best for print. living in the US.

They are diverse group.HISPANIC SUBCULTURE  Fastest growing ethnic market in US. . 80% watch Spanish language TV. They think of themselves as Hispanic or Latino first and as Americans second. Two-third of Hispanics prefer to speak Spanish at home.  Attain slightly lower level of education than do black and other non       Hispanics. 90% use Spanish Language media for product information. 20% of the Hispanic do not speak English at all. 65% listen to Spanish-language radio. 40% read Spanish language newspaper. and 20% read Spanish language magazines. 90% indicate that Spanish is the most important feature of their culture. bound together by common language and cultural heritage.

 Prefer well known or familiar brand.  Buy brands perceived to be more prestigious.  Are fashion conscious.  Youths are more fashion conscious than non- Hispanic peers. .  Buy brands advertised by their ethnic-group stores.  Likely to buy what their parents bought.  Historically prefer to shop at smaller personal stores.characteristics  They have positive attitude towards advertising.

RELIGIOUS SUBCULTURE  Consumer behavior is directly affected by religion in terms of products that are symbolically and ritualistically associated with the celebration of religious holidays. pork and alcohol is also determined by one’s religion. the bridegroom wears a Sherwani. Consumption of meet. Sikh religion do not permit shaving of hair .  For eg: the bride in a Hindu family is dressed in a traditional deep Red dress. beef. Chooridar and Pagri.

It is relevant for marketers to study and understand subcultures on a regional basis. language and significant social and cultural events. customs etc.REGIONAL SUBCULTURE  It arise due to climatic conditions. Easterners have cup of coffee with milk and sugar. gift giving. festivals. food habits. . the natural      environment and resources. Westerners have mug of black coffee. particularly language. White bread is preferred in South and mid-west. In India. south prefer coffee while north prefer Tea.

Comparison of Purchase Pattern PRODUCT/ACTIVITY ANGLOWHITE 102 97 97 103 93 94 107 103 97 101 96 AFRICAN AMERICAN 86 122 118 77 137 137 45 85 121 103 115 HISPANIC AMERICAN 91 102 100 86 161 90 71 81 98 86 133 Dental floss Mouthwash Hand and body cream Vitamin and dieting supplements Energy drinks Car rental – business use Own a digital camera Greeting card Instant breakfast Barbeque and seasoning sauces Ready-to-drink cappuccino Cat treat 109 45 57 .

AGE SUBCULTURE Generation X Market Generation Y Market Seniors Market Baby Boomer Market .

 Most of them experienced dificult economic times and also saw the     emergence of dual income household and nuclear families. Job opportunities were decreasing and the population pressure were increasing. many people from small towns and rural areas headed towards larger cities. In search of jobs and careers.Generation X  Born between 1965-1979 in America. Marketers increasingly targeting this group with job promises. . appliances. insurance and investment services etc. autos.  In India this period pay more attention in obtaining degree. houses/flats. Many of this generation struggled with careers and financial matters and only a small percentage could make a good career in industry and government.

 First generation to grow up with almost equal employment oppurtunies for women.Generation Y  Born between 1977-1994. Gen Y Teens. .Gen Y Adults.  Subsegment. computers and Internet.  The family size is generally small and owns time saving appliances.

They keep up with fashion.  Approx 45% of adult population. They are becoming less materialistic in outlook and their product and service selections reflect their concern for the environment and quality of life. They use credit card and buy expensive items. They are health conscious. .  They have high level of education.  They have more discretionary income than other groups     and they buy more and save less.Baby Boomers  The largest age category alive today.

Increasing influence on purchasing. They are preoccupied with their appearance. .Teens  They have been segmented into several lifestyles     groups. They are open to new ideas and new products. Increasing spending power.

the Old Old (85 and above).  Household are small and their need for purchases is limited. . the Old (75- 84).  They enjoy convenience in the marketplace and appreciate their leisure time.  Subsegment: The young Old (65-74).Seniors  Generally older consumers.

 Give preference to print media.Communication to Older People  Keep the message simple.  Make the message concrete.  Supply memory aids.  Take it point by point.  Make the message familiar. .

Plan-to-work Housewives .Shopping Patterns  Four Segments: .Segmentation Issues .Stay-at-Home Housewives .  The Working Woman .Gender Subculture  Masculine Vs Feminine Traits.Career-oriented Working Women .Just-a-Job Working Women .

to the extent that these new attitudes.  ACCULTURATION – when a person is taught the full range of another culture pattern. .  A GENERATION or AGE COHORT is a group of persons who have experienced a common social.  COHORT ANALYSIS is the process of describing and explaining the attitude. values and behavior exhibit greater strength than those of one’s original culture. values and behavior of another culture. values and behavior. values and behaviors of an age groups as well as predicting its future attitudes. historical and economic environment.Important Terms  ASSIMILATION – it refers to person being taught some but not all of the attitudes.