Download VTU MBA 3rd Sem 16MBAMM301-Consumer Behaviour CB Chapter 5 -Important Notes

Download VTU (Visvesvaraya Technological University) MBA 3rd Semester (Third Semester) 16MBAMM301-Consumer Behaviour CB Chapter 5 Important Lecture Notes (MBA Study Material Notes)

External Influences on
Consumer Behaviour :
Part 1
Module 5
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
Here's the comparison of India, China, and United
States on the basis of Hofstede's cultural
dimensions.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
Here's the comparison of India, China, and United
States on the basis of Hofstede's cultural
dimensions.
? Developing right competencies
? Once we understand the various facets of a national culture, then we
need to develop the right competencies to equip a business leader
with the right frame of mind, attitude, and skills to feel comfortable
and business-ready in the host culture.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
Here's the comparison of India, China, and United
States on the basis of Hofstede's cultural
dimensions.
? Developing right competencies
? Once we understand the various facets of a national culture, then we
need to develop the right competencies to equip a business leader
with the right frame of mind, attitude, and skills to feel comfortable
and business-ready in the host culture.
Groups
? Groups exist in every formal and informal type of organisations. Such
groups are created by the members for its satisfaction. Very often
groups get formed automatically because of the operation of various
socio psychological factors. Such groups affect the behaviour of its
members.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
Here's the comparison of India, China, and United
States on the basis of Hofstede's cultural
dimensions.
? Developing right competencies
? Once we understand the various facets of a national culture, then we
need to develop the right competencies to equip a business leader
with the right frame of mind, attitude, and skills to feel comfortable
and business-ready in the host culture.
Groups
? Groups exist in every formal and informal type of organisations. Such
groups are created by the members for its satisfaction. Very often
groups get formed automatically because of the operation of various
socio psychological factors. Such groups affect the behaviour of its
members.
Meaning of Group:
? Marvin E. Shaw has defined groups as ?two or more persons who are
interacting with one another in a such a manner that each person
influences and influenced by each other?
? Clouis R. Shepherd defines groups as ?A group may be defined as the
aggregation of small number of persons who work for common goals,
develop a shared attitudes and are aware that they are part of a
group and perceive themselves as such?.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
Here's the comparison of India, China, and United
States on the basis of Hofstede's cultural
dimensions.
? Developing right competencies
? Once we understand the various facets of a national culture, then we
need to develop the right competencies to equip a business leader
with the right frame of mind, attitude, and skills to feel comfortable
and business-ready in the host culture.
Groups
? Groups exist in every formal and informal type of organisations. Such
groups are created by the members for its satisfaction. Very often
groups get formed automatically because of the operation of various
socio psychological factors. Such groups affect the behaviour of its
members.
Meaning of Group:
? Marvin E. Shaw has defined groups as ?two or more persons who are
interacting with one another in a such a manner that each person
influences and influenced by each other?
? Clouis R. Shepherd defines groups as ?A group may be defined as the
aggregation of small number of persons who work for common goals,
develop a shared attitudes and are aware that they are part of a
group and perceive themselves as such?.
Characteristics of Groups :
? 1. Two or more persons: To form a group there should be atleast two persons,
because a single individual cannot interact. Though no maximum limits have been set,
the size of the group should be such so as to allow meaningful interaction among the
members of group.
? 2. Collective identity: Each member of the group must believe that he is member of
the group and also be aware of his participation in the group activity. For instance a
group of boys are room-mates staying together in the hostel. Though they may not be
studying in the same class but because of their identity of room-mates they would prefer
to go out together for shopping.
? 3. Interaction: Members of the group will interact with each other. Though it is not
necessary for all members of the group to interact simultaneously but each member
must atleast occasionally interact with the members of the group.
? 4. Shared goal interest: Members of the group should concur to the attainment of
objectives each one must atleast share one of the groups concerns
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
Here's the comparison of India, China, and United
States on the basis of Hofstede's cultural
dimensions.
? Developing right competencies
? Once we understand the various facets of a national culture, then we
need to develop the right competencies to equip a business leader
with the right frame of mind, attitude, and skills to feel comfortable
and business-ready in the host culture.
Groups
? Groups exist in every formal and informal type of organisations. Such
groups are created by the members for its satisfaction. Very often
groups get formed automatically because of the operation of various
socio psychological factors. Such groups affect the behaviour of its
members.
Meaning of Group:
? Marvin E. Shaw has defined groups as ?two or more persons who are
interacting with one another in a such a manner that each person
influences and influenced by each other?
? Clouis R. Shepherd defines groups as ?A group may be defined as the
aggregation of small number of persons who work for common goals,
develop a shared attitudes and are aware that they are part of a
group and perceive themselves as such?.
Characteristics of Groups :
? 1. Two or more persons: To form a group there should be atleast two persons,
because a single individual cannot interact. Though no maximum limits have been set,
the size of the group should be such so as to allow meaningful interaction among the
members of group.
? 2. Collective identity: Each member of the group must believe that he is member of
the group and also be aware of his participation in the group activity. For instance a
group of boys are room-mates staying together in the hostel. Though they may not be
studying in the same class but because of their identity of room-mates they would prefer
to go out together for shopping.
? 3. Interaction: Members of the group will interact with each other. Though it is not
necessary for all members of the group to interact simultaneously but each member
must atleast occasionally interact with the members of the group.
? 4. Shared goal interest: Members of the group should concur to the attainment of
objectives each one must atleast share one of the groups concerns
The changing structure of family
? Basic functions provided by the family are particularly relevant to a
discussion of consumer behavior.
? These include:
? ? Economic well being
? ? Emotional support
? ? Suitable family lifestyles
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
Here's the comparison of India, China, and United
States on the basis of Hofstede's cultural
dimensions.
? Developing right competencies
? Once we understand the various facets of a national culture, then we
need to develop the right competencies to equip a business leader
with the right frame of mind, attitude, and skills to feel comfortable
and business-ready in the host culture.
Groups
? Groups exist in every formal and informal type of organisations. Such
groups are created by the members for its satisfaction. Very often
groups get formed automatically because of the operation of various
socio psychological factors. Such groups affect the behaviour of its
members.
Meaning of Group:
? Marvin E. Shaw has defined groups as ?two or more persons who are
interacting with one another in a such a manner that each person
influences and influenced by each other?
? Clouis R. Shepherd defines groups as ?A group may be defined as the
aggregation of small number of persons who work for common goals,
develop a shared attitudes and are aware that they are part of a
group and perceive themselves as such?.
Characteristics of Groups :
? 1. Two or more persons: To form a group there should be atleast two persons,
because a single individual cannot interact. Though no maximum limits have been set,
the size of the group should be such so as to allow meaningful interaction among the
members of group.
? 2. Collective identity: Each member of the group must believe that he is member of
the group and also be aware of his participation in the group activity. For instance a
group of boys are room-mates staying together in the hostel. Though they may not be
studying in the same class but because of their identity of room-mates they would prefer
to go out together for shopping.
? 3. Interaction: Members of the group will interact with each other. Though it is not
necessary for all members of the group to interact simultaneously but each member
must atleast occasionally interact with the members of the group.
? 4. Shared goal interest: Members of the group should concur to the attainment of
objectives each one must atleast share one of the groups concerns
The changing structure of family
? Basic functions provided by the family are particularly relevant to a
discussion of consumer behavior.
? These include:
? ? Economic well being
? ? Emotional support
? ? Suitable family lifestyles
Emotional well-being
? Although families in the affluent nations of North America, Europe
and Asia are no longer formed primarily for economic security,
providing financial means to its dependents unquestionably a basic
family function. How the family divides its responsibilities for
providing economic well-being has changed considerably during past
30 years. No longer are traditional husband as economic provider and
wife as home maker and child-rearer still valid.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
Here's the comparison of India, China, and United
States on the basis of Hofstede's cultural
dimensions.
? Developing right competencies
? Once we understand the various facets of a national culture, then we
need to develop the right competencies to equip a business leader
with the right frame of mind, attitude, and skills to feel comfortable
and business-ready in the host culture.
Groups
? Groups exist in every formal and informal type of organisations. Such
groups are created by the members for its satisfaction. Very often
groups get formed automatically because of the operation of various
socio psychological factors. Such groups affect the behaviour of its
members.
Meaning of Group:
? Marvin E. Shaw has defined groups as ?two or more persons who are
interacting with one another in a such a manner that each person
influences and influenced by each other?
? Clouis R. Shepherd defines groups as ?A group may be defined as the
aggregation of small number of persons who work for common goals,
develop a shared attitudes and are aware that they are part of a
group and perceive themselves as such?.
Characteristics of Groups :
? 1. Two or more persons: To form a group there should be atleast two persons,
because a single individual cannot interact. Though no maximum limits have been set,
the size of the group should be such so as to allow meaningful interaction among the
members of group.
? 2. Collective identity: Each member of the group must believe that he is member of
the group and also be aware of his participation in the group activity. For instance a
group of boys are room-mates staying together in the hostel. Though they may not be
studying in the same class but because of their identity of room-mates they would prefer
to go out together for shopping.
? 3. Interaction: Members of the group will interact with each other. Though it is not
necessary for all members of the group to interact simultaneously but each member
must atleast occasionally interact with the members of the group.
? 4. Shared goal interest: Members of the group should concur to the attainment of
objectives each one must atleast share one of the groups concerns
The changing structure of family
? Basic functions provided by the family are particularly relevant to a
discussion of consumer behavior.
? These include:
? ? Economic well being
? ? Emotional support
? ? Suitable family lifestyles
Emotional well-being
? Although families in the affluent nations of North America, Europe
and Asia are no longer formed primarily for economic security,
providing financial means to its dependents unquestionably a basic
family function. How the family divides its responsibilities for
providing economic well-being has changed considerably during past
30 years. No longer are traditional husband as economic provider and
wife as home maker and child-rearer still valid.
? Emotional support
? The provision of emotional nourishment (including love, affection,
and intimacy) to its members is an important core function of the
contemporary family. In fulfilling this function, the family provides
support and encouragement and assists its members in coping with
decision making and with personal or social problems. To make it
easier for working parents to show their love, affection, and support
to their children, greeting card companies have been increasingly
creating cards for parents to give to their children (vice versa)
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
Here's the comparison of India, China, and United
States on the basis of Hofstede's cultural
dimensions.
? Developing right competencies
? Once we understand the various facets of a national culture, then we
need to develop the right competencies to equip a business leader
with the right frame of mind, attitude, and skills to feel comfortable
and business-ready in the host culture.
Groups
? Groups exist in every formal and informal type of organisations. Such
groups are created by the members for its satisfaction. Very often
groups get formed automatically because of the operation of various
socio psychological factors. Such groups affect the behaviour of its
members.
Meaning of Group:
? Marvin E. Shaw has defined groups as ?two or more persons who are
interacting with one another in a such a manner that each person
influences and influenced by each other?
? Clouis R. Shepherd defines groups as ?A group may be defined as the
aggregation of small number of persons who work for common goals,
develop a shared attitudes and are aware that they are part of a
group and perceive themselves as such?.
Characteristics of Groups :
? 1. Two or more persons: To form a group there should be atleast two persons,
because a single individual cannot interact. Though no maximum limits have been set,
the size of the group should be such so as to allow meaningful interaction among the
members of group.
? 2. Collective identity: Each member of the group must believe that he is member of
the group and also be aware of his participation in the group activity. For instance a
group of boys are room-mates staying together in the hostel. Though they may not be
studying in the same class but because of their identity of room-mates they would prefer
to go out together for shopping.
? 3. Interaction: Members of the group will interact with each other. Though it is not
necessary for all members of the group to interact simultaneously but each member
must atleast occasionally interact with the members of the group.
? 4. Shared goal interest: Members of the group should concur to the attainment of
objectives each one must atleast share one of the groups concerns
The changing structure of family
? Basic functions provided by the family are particularly relevant to a
discussion of consumer behavior.
? These include:
? ? Economic well being
? ? Emotional support
? ? Suitable family lifestyles
Emotional well-being
? Although families in the affluent nations of North America, Europe
and Asia are no longer formed primarily for economic security,
providing financial means to its dependents unquestionably a basic
family function. How the family divides its responsibilities for
providing economic well-being has changed considerably during past
30 years. No longer are traditional husband as economic provider and
wife as home maker and child-rearer still valid.
? Emotional support
? The provision of emotional nourishment (including love, affection,
and intimacy) to its members is an important core function of the
contemporary family. In fulfilling this function, the family provides
support and encouragement and assists its members in coping with
decision making and with personal or social problems. To make it
easier for working parents to show their love, affection, and support
to their children, greeting card companies have been increasingly
creating cards for parents to give to their children (vice versa)
? Suitable family lifestyle
? Another important family function in terms of consumer behavior is
the establishment of a suitable lifestyle for the family. Upbringing,
experience, and the personal and jointly held goals of the spouses
determine the importance placed on education or career, on reading,
on television viewing, on the learning of computer skills, on the
frequency quality of dining out, and on the selection of other
entertainment and recreational activities.
? Family lifestyle commitments, including the allocation of time, are
generally influencing consumption patterns.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
Here's the comparison of India, China, and United
States on the basis of Hofstede's cultural
dimensions.
? Developing right competencies
? Once we understand the various facets of a national culture, then we
need to develop the right competencies to equip a business leader
with the right frame of mind, attitude, and skills to feel comfortable
and business-ready in the host culture.
Groups
? Groups exist in every formal and informal type of organisations. Such
groups are created by the members for its satisfaction. Very often
groups get formed automatically because of the operation of various
socio psychological factors. Such groups affect the behaviour of its
members.
Meaning of Group:
? Marvin E. Shaw has defined groups as ?two or more persons who are
interacting with one another in a such a manner that each person
influences and influenced by each other?
? Clouis R. Shepherd defines groups as ?A group may be defined as the
aggregation of small number of persons who work for common goals,
develop a shared attitudes and are aware that they are part of a
group and perceive themselves as such?.
Characteristics of Groups :
? 1. Two or more persons: To form a group there should be atleast two persons,
because a single individual cannot interact. Though no maximum limits have been set,
the size of the group should be such so as to allow meaningful interaction among the
members of group.
? 2. Collective identity: Each member of the group must believe that he is member of
the group and also be aware of his participation in the group activity. For instance a
group of boys are room-mates staying together in the hostel. Though they may not be
studying in the same class but because of their identity of room-mates they would prefer
to go out together for shopping.
? 3. Interaction: Members of the group will interact with each other. Though it is not
necessary for all members of the group to interact simultaneously but each member
must atleast occasionally interact with the members of the group.
? 4. Shared goal interest: Members of the group should concur to the attainment of
objectives each one must atleast share one of the groups concerns
The changing structure of family
? Basic functions provided by the family are particularly relevant to a
discussion of consumer behavior.
? These include:
? ? Economic well being
? ? Emotional support
? ? Suitable family lifestyles
Emotional well-being
? Although families in the affluent nations of North America, Europe
and Asia are no longer formed primarily for economic security,
providing financial means to its dependents unquestionably a basic
family function. How the family divides its responsibilities for
providing economic well-being has changed considerably during past
30 years. No longer are traditional husband as economic provider and
wife as home maker and child-rearer still valid.
? Emotional support
? The provision of emotional nourishment (including love, affection,
and intimacy) to its members is an important core function of the
contemporary family. In fulfilling this function, the family provides
support and encouragement and assists its members in coping with
decision making and with personal or social problems. To make it
easier for working parents to show their love, affection, and support
to their children, greeting card companies have been increasingly
creating cards for parents to give to their children (vice versa)
? Suitable family lifestyle
? Another important family function in terms of consumer behavior is
the establishment of a suitable lifestyle for the family. Upbringing,
experience, and the personal and jointly held goals of the spouses
determine the importance placed on education or career, on reading,
on television viewing, on the learning of computer skills, on the
frequency quality of dining out, and on the selection of other
entertainment and recreational activities.
? Family lifestyle commitments, including the allocation of time, are
generally influencing consumption patterns.
Family decision making and consumption-
related roles
? When two or more family members are directly or indirectly involved
in the decision making process, it is called family decision making.
Such family decisions differs from individuals decisions in many ways.
For example, if we consider the purchase of a bicycle for a child, some
of the relevant aspects to think about can be: who recognizes the
need for bicycle? How a brand is selected? What role the concerned
child plays?
? Joint decisions are more likely to operate in the early stages of
family life cycle when both spouses are relatively less experienced.
After gaining experience, they usually delegate responsibilities
concerning buying decisions to each other.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
Here's the comparison of India, China, and United
States on the basis of Hofstede's cultural
dimensions.
? Developing right competencies
? Once we understand the various facets of a national culture, then we
need to develop the right competencies to equip a business leader
with the right frame of mind, attitude, and skills to feel comfortable
and business-ready in the host culture.
Groups
? Groups exist in every formal and informal type of organisations. Such
groups are created by the members for its satisfaction. Very often
groups get formed automatically because of the operation of various
socio psychological factors. Such groups affect the behaviour of its
members.
Meaning of Group:
? Marvin E. Shaw has defined groups as ?two or more persons who are
interacting with one another in a such a manner that each person
influences and influenced by each other?
? Clouis R. Shepherd defines groups as ?A group may be defined as the
aggregation of small number of persons who work for common goals,
develop a shared attitudes and are aware that they are part of a
group and perceive themselves as such?.
Characteristics of Groups :
? 1. Two or more persons: To form a group there should be atleast two persons,
because a single individual cannot interact. Though no maximum limits have been set,
the size of the group should be such so as to allow meaningful interaction among the
members of group.
? 2. Collective identity: Each member of the group must believe that he is member of
the group and also be aware of his participation in the group activity. For instance a
group of boys are room-mates staying together in the hostel. Though they may not be
studying in the same class but because of their identity of room-mates they would prefer
to go out together for shopping.
? 3. Interaction: Members of the group will interact with each other. Though it is not
necessary for all members of the group to interact simultaneously but each member
must atleast occasionally interact with the members of the group.
? 4. Shared goal interest: Members of the group should concur to the attainment of
objectives each one must atleast share one of the groups concerns
The changing structure of family
? Basic functions provided by the family are particularly relevant to a
discussion of consumer behavior.
? These include:
? ? Economic well being
? ? Emotional support
? ? Suitable family lifestyles
Emotional well-being
? Although families in the affluent nations of North America, Europe
and Asia are no longer formed primarily for economic security,
providing financial means to its dependents unquestionably a basic
family function. How the family divides its responsibilities for
providing economic well-being has changed considerably during past
30 years. No longer are traditional husband as economic provider and
wife as home maker and child-rearer still valid.
? Emotional support
? The provision of emotional nourishment (including love, affection,
and intimacy) to its members is an important core function of the
contemporary family. In fulfilling this function, the family provides
support and encouragement and assists its members in coping with
decision making and with personal or social problems. To make it
easier for working parents to show their love, affection, and support
to their children, greeting card companies have been increasingly
creating cards for parents to give to their children (vice versa)
? Suitable family lifestyle
? Another important family function in terms of consumer behavior is
the establishment of a suitable lifestyle for the family. Upbringing,
experience, and the personal and jointly held goals of the spouses
determine the importance placed on education or career, on reading,
on television viewing, on the learning of computer skills, on the
frequency quality of dining out, and on the selection of other
entertainment and recreational activities.
? Family lifestyle commitments, including the allocation of time, are
generally influencing consumption patterns.
Family decision making and consumption-
related roles
? When two or more family members are directly or indirectly involved
in the decision making process, it is called family decision making.
Such family decisions differs from individuals decisions in many ways.
For example, if we consider the purchase of a bicycle for a child, some
of the relevant aspects to think about can be: who recognizes the
need for bicycle? How a brand is selected? What role the concerned
child plays?
? Joint decisions are more likely to operate in the early stages of
family life cycle when both spouses are relatively less experienced.
After gaining experience, they usually delegate responsibilities
concerning buying decisions to each other.
Key family consumption roles
? For?a?family?to?function?as?a?cohesive?unit,?tasks?such?as?doing?the?laundry,?
preparing?meals,?setting?the?dinner?table,?taking?out?the?garbage,?and?
walking?the?dog?must?be?carried?out?by?one?or?more?family?members.?In?a?
dynamic?society,?family?related?duties?are?constantly?changing?however,?
we?can?identify?either?distinct?roles?in?the?family?decision?making?process.
? ?For?example,?a?family?member?may?be?walking?down?the?cookie?aisle?at?a?
local?supermarket?when?she?picks?out?an?interesting?new?fat-free?cookie.?
Her?selection?does?not?directly?involve?the?influence?of?other?family?
members.?She?is?the?decider,?the?buyer?and,?in?a?sense,?the?gatekeeper,?
however,?she?may?not?be?the?sole?consumer.?Products?may?be?consumed?
by?a?single?family?member,?consumed?or?used?directly?by?two?or?more?
family?members,?or?consumed?indirectly?by?the?entire?family.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
Here's the comparison of India, China, and United
States on the basis of Hofstede's cultural
dimensions.
? Developing right competencies
? Once we understand the various facets of a national culture, then we
need to develop the right competencies to equip a business leader
with the right frame of mind, attitude, and skills to feel comfortable
and business-ready in the host culture.
Groups
? Groups exist in every formal and informal type of organisations. Such
groups are created by the members for its satisfaction. Very often
groups get formed automatically because of the operation of various
socio psychological factors. Such groups affect the behaviour of its
members.
Meaning of Group:
? Marvin E. Shaw has defined groups as ?two or more persons who are
interacting with one another in a such a manner that each person
influences and influenced by each other?
? Clouis R. Shepherd defines groups as ?A group may be defined as the
aggregation of small number of persons who work for common goals,
develop a shared attitudes and are aware that they are part of a
group and perceive themselves as such?.
Characteristics of Groups :
? 1. Two or more persons: To form a group there should be atleast two persons,
because a single individual cannot interact. Though no maximum limits have been set,
the size of the group should be such so as to allow meaningful interaction among the
members of group.
? 2. Collective identity: Each member of the group must believe that he is member of
the group and also be aware of his participation in the group activity. For instance a
group of boys are room-mates staying together in the hostel. Though they may not be
studying in the same class but because of their identity of room-mates they would prefer
to go out together for shopping.
? 3. Interaction: Members of the group will interact with each other. Though it is not
necessary for all members of the group to interact simultaneously but each member
must atleast occasionally interact with the members of the group.
? 4. Shared goal interest: Members of the group should concur to the attainment of
objectives each one must atleast share one of the groups concerns
The changing structure of family
? Basic functions provided by the family are particularly relevant to a
discussion of consumer behavior.
? These include:
? ? Economic well being
? ? Emotional support
? ? Suitable family lifestyles
Emotional well-being
? Although families in the affluent nations of North America, Europe
and Asia are no longer formed primarily for economic security,
providing financial means to its dependents unquestionably a basic
family function. How the family divides its responsibilities for
providing economic well-being has changed considerably during past
30 years. No longer are traditional husband as economic provider and
wife as home maker and child-rearer still valid.
? Emotional support
? The provision of emotional nourishment (including love, affection,
and intimacy) to its members is an important core function of the
contemporary family. In fulfilling this function, the family provides
support and encouragement and assists its members in coping with
decision making and with personal or social problems. To make it
easier for working parents to show their love, affection, and support
to their children, greeting card companies have been increasingly
creating cards for parents to give to their children (vice versa)
? Suitable family lifestyle
? Another important family function in terms of consumer behavior is
the establishment of a suitable lifestyle for the family. Upbringing,
experience, and the personal and jointly held goals of the spouses
determine the importance placed on education or career, on reading,
on television viewing, on the learning of computer skills, on the
frequency quality of dining out, and on the selection of other
entertainment and recreational activities.
? Family lifestyle commitments, including the allocation of time, are
generally influencing consumption patterns.
Family decision making and consumption-
related roles
? When two or more family members are directly or indirectly involved
in the decision making process, it is called family decision making.
Such family decisions differs from individuals decisions in many ways.
For example, if we consider the purchase of a bicycle for a child, some
of the relevant aspects to think about can be: who recognizes the
need for bicycle? How a brand is selected? What role the concerned
child plays?
? Joint decisions are more likely to operate in the early stages of
family life cycle when both spouses are relatively less experienced.
After gaining experience, they usually delegate responsibilities
concerning buying decisions to each other.
Key family consumption roles
? For?a?family?to?function?as?a?cohesive?unit,?tasks?such?as?doing?the?laundry,?
preparing?meals,?setting?the?dinner?table,?taking?out?the?garbage,?and?
walking?the?dog?must?be?carried?out?by?one?or?more?family?members.?In?a?
dynamic?society,?family?related?duties?are?constantly?changing?however,?
we?can?identify?either?distinct?roles?in?the?family?decision?making?process.
? ?For?example,?a?family?member?may?be?walking?down?the?cookie?aisle?at?a?
local?supermarket?when?she?picks?out?an?interesting?new?fat-free?cookie.?
Her?selection?does?not?directly?involve?the?influence?of?other?family?
members.?She?is?the?decider,?the?buyer?and,?in?a?sense,?the?gatekeeper,?
however,?she?may?not?be?the?sole?consumer.?Products?may?be?consumed?
by?a?single?family?member,?consumed?or?used?directly?by?two?or?more?
family?members,?or?consumed?indirectly?by?the?entire?family.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
Here's the comparison of India, China, and United
States on the basis of Hofstede's cultural
dimensions.
? Developing right competencies
? Once we understand the various facets of a national culture, then we
need to develop the right competencies to equip a business leader
with the right frame of mind, attitude, and skills to feel comfortable
and business-ready in the host culture.
Groups
? Groups exist in every formal and informal type of organisations. Such
groups are created by the members for its satisfaction. Very often
groups get formed automatically because of the operation of various
socio psychological factors. Such groups affect the behaviour of its
members.
Meaning of Group:
? Marvin E. Shaw has defined groups as ?two or more persons who are
interacting with one another in a such a manner that each person
influences and influenced by each other?
? Clouis R. Shepherd defines groups as ?A group may be defined as the
aggregation of small number of persons who work for common goals,
develop a shared attitudes and are aware that they are part of a
group and perceive themselves as such?.
Characteristics of Groups :
? 1. Two or more persons: To form a group there should be atleast two persons,
because a single individual cannot interact. Though no maximum limits have been set,
the size of the group should be such so as to allow meaningful interaction among the
members of group.
? 2. Collective identity: Each member of the group must believe that he is member of
the group and also be aware of his participation in the group activity. For instance a
group of boys are room-mates staying together in the hostel. Though they may not be
studying in the same class but because of their identity of room-mates they would prefer
to go out together for shopping.
? 3. Interaction: Members of the group will interact with each other. Though it is not
necessary for all members of the group to interact simultaneously but each member
must atleast occasionally interact with the members of the group.
? 4. Shared goal interest: Members of the group should concur to the attainment of
objectives each one must atleast share one of the groups concerns
The changing structure of family
? Basic functions provided by the family are particularly relevant to a
discussion of consumer behavior.
? These include:
? ? Economic well being
? ? Emotional support
? ? Suitable family lifestyles
Emotional well-being
? Although families in the affluent nations of North America, Europe
and Asia are no longer formed primarily for economic security,
providing financial means to its dependents unquestionably a basic
family function. How the family divides its responsibilities for
providing economic well-being has changed considerably during past
30 years. No longer are traditional husband as economic provider and
wife as home maker and child-rearer still valid.
? Emotional support
? The provision of emotional nourishment (including love, affection,
and intimacy) to its members is an important core function of the
contemporary family. In fulfilling this function, the family provides
support and encouragement and assists its members in coping with
decision making and with personal or social problems. To make it
easier for working parents to show their love, affection, and support
to their children, greeting card companies have been increasingly
creating cards for parents to give to their children (vice versa)
? Suitable family lifestyle
? Another important family function in terms of consumer behavior is
the establishment of a suitable lifestyle for the family. Upbringing,
experience, and the personal and jointly held goals of the spouses
determine the importance placed on education or career, on reading,
on television viewing, on the learning of computer skills, on the
frequency quality of dining out, and on the selection of other
entertainment and recreational activities.
? Family lifestyle commitments, including the allocation of time, are
generally influencing consumption patterns.
Family decision making and consumption-
related roles
? When two or more family members are directly or indirectly involved
in the decision making process, it is called family decision making.
Such family decisions differs from individuals decisions in many ways.
For example, if we consider the purchase of a bicycle for a child, some
of the relevant aspects to think about can be: who recognizes the
need for bicycle? How a brand is selected? What role the concerned
child plays?
? Joint decisions are more likely to operate in the early stages of
family life cycle when both spouses are relatively less experienced.
After gaining experience, they usually delegate responsibilities
concerning buying decisions to each other.
Key family consumption roles
? For?a?family?to?function?as?a?cohesive?unit,?tasks?such?as?doing?the?laundry,?
preparing?meals,?setting?the?dinner?table,?taking?out?the?garbage,?and?
walking?the?dog?must?be?carried?out?by?one?or?more?family?members.?In?a?
dynamic?society,?family?related?duties?are?constantly?changing?however,?
we?can?identify?either?distinct?roles?in?the?family?decision?making?process.
? ?For?example,?a?family?member?may?be?walking?down?the?cookie?aisle?at?a?
local?supermarket?when?she?picks?out?an?interesting?new?fat-free?cookie.?
Her?selection?does?not?directly?involve?the?influence?of?other?family?
members.?She?is?the?decider,?the?buyer?and,?in?a?sense,?the?gatekeeper,?
however,?she?may?not?be?the?sole?consumer.?Products?may?be?consumed?
by?a?single?family?member,?consumed?or?used?directly?by?two?or?more?
family?members,?or?consumed?indirectly?by?the?entire?family.
Dynamics of husband-wife decision making
? Marketers?are?interested?in?the?relative?amount?of?influence?that?a?
husband?and?a?wife?have?when?it?comes?to?family?consumption?
choices.?The?relative?influence?of?husbands?and?wives?can?be?
classified?as:?husband?dominated,?wife?dominated,?joint,?and?
autonomic.
? ?The?relative?influence?of?a?husband?and?wife?on?a?particular?
consumer?decisions?depends?in?part?on?the?product?and?service?
category.?For?instance,?during?1950s,?the?purchase?of?a?new?
automobile?was?strongly?husband?dominated,?whereas?food?and?
financial?banking?decisions?more?often?were?wife?dominated.?Fifty?
years?later,?the?purchase?of?the?family?s?principal?automobile?is?still?
often?husbands?dominated?in?many?households.?
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
Here's the comparison of India, China, and United
States on the basis of Hofstede's cultural
dimensions.
? Developing right competencies
? Once we understand the various facets of a national culture, then we
need to develop the right competencies to equip a business leader
with the right frame of mind, attitude, and skills to feel comfortable
and business-ready in the host culture.
Groups
? Groups exist in every formal and informal type of organisations. Such
groups are created by the members for its satisfaction. Very often
groups get formed automatically because of the operation of various
socio psychological factors. Such groups affect the behaviour of its
members.
Meaning of Group:
? Marvin E. Shaw has defined groups as ?two or more persons who are
interacting with one another in a such a manner that each person
influences and influenced by each other?
? Clouis R. Shepherd defines groups as ?A group may be defined as the
aggregation of small number of persons who work for common goals,
develop a shared attitudes and are aware that they are part of a
group and perceive themselves as such?.
Characteristics of Groups :
? 1. Two or more persons: To form a group there should be atleast two persons,
because a single individual cannot interact. Though no maximum limits have been set,
the size of the group should be such so as to allow meaningful interaction among the
members of group.
? 2. Collective identity: Each member of the group must believe that he is member of
the group and also be aware of his participation in the group activity. For instance a
group of boys are room-mates staying together in the hostel. Though they may not be
studying in the same class but because of their identity of room-mates they would prefer
to go out together for shopping.
? 3. Interaction: Members of the group will interact with each other. Though it is not
necessary for all members of the group to interact simultaneously but each member
must atleast occasionally interact with the members of the group.
? 4. Shared goal interest: Members of the group should concur to the attainment of
objectives each one must atleast share one of the groups concerns
The changing structure of family
? Basic functions provided by the family are particularly relevant to a
discussion of consumer behavior.
? These include:
? ? Economic well being
? ? Emotional support
? ? Suitable family lifestyles
Emotional well-being
? Although families in the affluent nations of North America, Europe
and Asia are no longer formed primarily for economic security,
providing financial means to its dependents unquestionably a basic
family function. How the family divides its responsibilities for
providing economic well-being has changed considerably during past
30 years. No longer are traditional husband as economic provider and
wife as home maker and child-rearer still valid.
? Emotional support
? The provision of emotional nourishment (including love, affection,
and intimacy) to its members is an important core function of the
contemporary family. In fulfilling this function, the family provides
support and encouragement and assists its members in coping with
decision making and with personal or social problems. To make it
easier for working parents to show their love, affection, and support
to their children, greeting card companies have been increasingly
creating cards for parents to give to their children (vice versa)
? Suitable family lifestyle
? Another important family function in terms of consumer behavior is
the establishment of a suitable lifestyle for the family. Upbringing,
experience, and the personal and jointly held goals of the spouses
determine the importance placed on education or career, on reading,
on television viewing, on the learning of computer skills, on the
frequency quality of dining out, and on the selection of other
entertainment and recreational activities.
? Family lifestyle commitments, including the allocation of time, are
generally influencing consumption patterns.
Family decision making and consumption-
related roles
? When two or more family members are directly or indirectly involved
in the decision making process, it is called family decision making.
Such family decisions differs from individuals decisions in many ways.
For example, if we consider the purchase of a bicycle for a child, some
of the relevant aspects to think about can be: who recognizes the
need for bicycle? How a brand is selected? What role the concerned
child plays?
? Joint decisions are more likely to operate in the early stages of
family life cycle when both spouses are relatively less experienced.
After gaining experience, they usually delegate responsibilities
concerning buying decisions to each other.
Key family consumption roles
? For?a?family?to?function?as?a?cohesive?unit,?tasks?such?as?doing?the?laundry,?
preparing?meals,?setting?the?dinner?table,?taking?out?the?garbage,?and?
walking?the?dog?must?be?carried?out?by?one?or?more?family?members.?In?a?
dynamic?society,?family?related?duties?are?constantly?changing?however,?
we?can?identify?either?distinct?roles?in?the?family?decision?making?process.
? ?For?example,?a?family?member?may?be?walking?down?the?cookie?aisle?at?a?
local?supermarket?when?she?picks?out?an?interesting?new?fat-free?cookie.?
Her?selection?does?not?directly?involve?the?influence?of?other?family?
members.?She?is?the?decider,?the?buyer?and,?in?a?sense,?the?gatekeeper,?
however,?she?may?not?be?the?sole?consumer.?Products?may?be?consumed?
by?a?single?family?member,?consumed?or?used?directly?by?two?or?more?
family?members,?or?consumed?indirectly?by?the?entire?family.
Dynamics of husband-wife decision making
? Marketers?are?interested?in?the?relative?amount?of?influence?that?a?
husband?and?a?wife?have?when?it?comes?to?family?consumption?
choices.?The?relative?influence?of?husbands?and?wives?can?be?
classified?as:?husband?dominated,?wife?dominated,?joint,?and?
autonomic.
? ?The?relative?influence?of?a?husband?and?wife?on?a?particular?
consumer?decisions?depends?in?part?on?the?product?and?service?
category.?For?instance,?during?1950s,?the?purchase?of?a?new?
automobile?was?strongly?husband?dominated,?whereas?food?and?
financial?banking?decisions?more?often?were?wife?dominated.?Fifty?
years?later,?the?purchase?of?the?family?s?principal?automobile?is?still?
often?husbands?dominated?in?many?households.?
? Husband wife decision making also appears to be related to cultural
influence. Research comparing husband wife decision making
patterns in the people?s republic of china and in the United States
revels that among Chinese there were substantially fewer ?joint?
decisions and more ?husband dominated? decisions for many
household purchases.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
Here's the comparison of India, China, and United
States on the basis of Hofstede's cultural
dimensions.
? Developing right competencies
? Once we understand the various facets of a national culture, then we
need to develop the right competencies to equip a business leader
with the right frame of mind, attitude, and skills to feel comfortable
and business-ready in the host culture.
Groups
? Groups exist in every formal and informal type of organisations. Such
groups are created by the members for its satisfaction. Very often
groups get formed automatically because of the operation of various
socio psychological factors. Such groups affect the behaviour of its
members.
Meaning of Group:
? Marvin E. Shaw has defined groups as ?two or more persons who are
interacting with one another in a such a manner that each person
influences and influenced by each other?
? Clouis R. Shepherd defines groups as ?A group may be defined as the
aggregation of small number of persons who work for common goals,
develop a shared attitudes and are aware that they are part of a
group and perceive themselves as such?.
Characteristics of Groups :
? 1. Two or more persons: To form a group there should be atleast two persons,
because a single individual cannot interact. Though no maximum limits have been set,
the size of the group should be such so as to allow meaningful interaction among the
members of group.
? 2. Collective identity: Each member of the group must believe that he is member of
the group and also be aware of his participation in the group activity. For instance a
group of boys are room-mates staying together in the hostel. Though they may not be
studying in the same class but because of their identity of room-mates they would prefer
to go out together for shopping.
? 3. Interaction: Members of the group will interact with each other. Though it is not
necessary for all members of the group to interact simultaneously but each member
must atleast occasionally interact with the members of the group.
? 4. Shared goal interest: Members of the group should concur to the attainment of
objectives each one must atleast share one of the groups concerns
The changing structure of family
? Basic functions provided by the family are particularly relevant to a
discussion of consumer behavior.
? These include:
? ? Economic well being
? ? Emotional support
? ? Suitable family lifestyles
Emotional well-being
? Although families in the affluent nations of North America, Europe
and Asia are no longer formed primarily for economic security,
providing financial means to its dependents unquestionably a basic
family function. How the family divides its responsibilities for
providing economic well-being has changed considerably during past
30 years. No longer are traditional husband as economic provider and
wife as home maker and child-rearer still valid.
? Emotional support
? The provision of emotional nourishment (including love, affection,
and intimacy) to its members is an important core function of the
contemporary family. In fulfilling this function, the family provides
support and encouragement and assists its members in coping with
decision making and with personal or social problems. To make it
easier for working parents to show their love, affection, and support
to their children, greeting card companies have been increasingly
creating cards for parents to give to their children (vice versa)
? Suitable family lifestyle
? Another important family function in terms of consumer behavior is
the establishment of a suitable lifestyle for the family. Upbringing,
experience, and the personal and jointly held goals of the spouses
determine the importance placed on education or career, on reading,
on television viewing, on the learning of computer skills, on the
frequency quality of dining out, and on the selection of other
entertainment and recreational activities.
? Family lifestyle commitments, including the allocation of time, are
generally influencing consumption patterns.
Family decision making and consumption-
related roles
? When two or more family members are directly or indirectly involved
in the decision making process, it is called family decision making.
Such family decisions differs from individuals decisions in many ways.
For example, if we consider the purchase of a bicycle for a child, some
of the relevant aspects to think about can be: who recognizes the
need for bicycle? How a brand is selected? What role the concerned
child plays?
? Joint decisions are more likely to operate in the early stages of
family life cycle when both spouses are relatively less experienced.
After gaining experience, they usually delegate responsibilities
concerning buying decisions to each other.
Key family consumption roles
? For?a?family?to?function?as?a?cohesive?unit,?tasks?such?as?doing?the?laundry,?
preparing?meals,?setting?the?dinner?table,?taking?out?the?garbage,?and?
walking?the?dog?must?be?carried?out?by?one?or?more?family?members.?In?a?
dynamic?society,?family?related?duties?are?constantly?changing?however,?
we?can?identify?either?distinct?roles?in?the?family?decision?making?process.
? ?For?example,?a?family?member?may?be?walking?down?the?cookie?aisle?at?a?
local?supermarket?when?she?picks?out?an?interesting?new?fat-free?cookie.?
Her?selection?does?not?directly?involve?the?influence?of?other?family?
members.?She?is?the?decider,?the?buyer?and,?in?a?sense,?the?gatekeeper,?
however,?she?may?not?be?the?sole?consumer.?Products?may?be?consumed?
by?a?single?family?member,?consumed?or?used?directly?by?two?or?more?
family?members,?or?consumed?indirectly?by?the?entire?family.
Dynamics of husband-wife decision making
? Marketers?are?interested?in?the?relative?amount?of?influence?that?a?
husband?and?a?wife?have?when?it?comes?to?family?consumption?
choices.?The?relative?influence?of?husbands?and?wives?can?be?
classified?as:?husband?dominated,?wife?dominated,?joint,?and?
autonomic.
? ?The?relative?influence?of?a?husband?and?wife?on?a?particular?
consumer?decisions?depends?in?part?on?the?product?and?service?
category.?For?instance,?during?1950s,?the?purchase?of?a?new?
automobile?was?strongly?husband?dominated,?whereas?food?and?
financial?banking?decisions?more?often?were?wife?dominated.?Fifty?
years?later,?the?purchase?of?the?family?s?principal?automobile?is?still?
often?husbands?dominated?in?many?households.?
? Husband wife decision making also appears to be related to cultural
influence. Research comparing husband wife decision making
patterns in the people?s republic of china and in the United States
revels that among Chinese there were substantially fewer ?joint?
decisions and more ?husband dominated? decisions for many
household purchases.
? However, when limiting the comparison to urban and rural Chinese
households, the research showed that in a large city such as Beijing,
married couples were more likely than rural couples to share equally
in purchase decisions. Still further, because of china?s ?one child?
policy and the ensuring custom of treating a single child as a ?little
emperor?, many of the parents purchase decisions are influenced by
the input of their child.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
Here's the comparison of India, China, and United
States on the basis of Hofstede's cultural
dimensions.
? Developing right competencies
? Once we understand the various facets of a national culture, then we
need to develop the right competencies to equip a business leader
with the right frame of mind, attitude, and skills to feel comfortable
and business-ready in the host culture.
Groups
? Groups exist in every formal and informal type of organisations. Such
groups are created by the members for its satisfaction. Very often
groups get formed automatically because of the operation of various
socio psychological factors. Such groups affect the behaviour of its
members.
Meaning of Group:
? Marvin E. Shaw has defined groups as ?two or more persons who are
interacting with one another in a such a manner that each person
influences and influenced by each other?
? Clouis R. Shepherd defines groups as ?A group may be defined as the
aggregation of small number of persons who work for common goals,
develop a shared attitudes and are aware that they are part of a
group and perceive themselves as such?.
Characteristics of Groups :
? 1. Two or more persons: To form a group there should be atleast two persons,
because a single individual cannot interact. Though no maximum limits have been set,
the size of the group should be such so as to allow meaningful interaction among the
members of group.
? 2. Collective identity: Each member of the group must believe that he is member of
the group and also be aware of his participation in the group activity. For instance a
group of boys are room-mates staying together in the hostel. Though they may not be
studying in the same class but because of their identity of room-mates they would prefer
to go out together for shopping.
? 3. Interaction: Members of the group will interact with each other. Though it is not
necessary for all members of the group to interact simultaneously but each member
must atleast occasionally interact with the members of the group.
? 4. Shared goal interest: Members of the group should concur to the attainment of
objectives each one must atleast share one of the groups concerns
The changing structure of family
? Basic functions provided by the family are particularly relevant to a
discussion of consumer behavior.
? These include:
? ? Economic well being
? ? Emotional support
? ? Suitable family lifestyles
Emotional well-being
? Although families in the affluent nations of North America, Europe
and Asia are no longer formed primarily for economic security,
providing financial means to its dependents unquestionably a basic
family function. How the family divides its responsibilities for
providing economic well-being has changed considerably during past
30 years. No longer are traditional husband as economic provider and
wife as home maker and child-rearer still valid.
? Emotional support
? The provision of emotional nourishment (including love, affection,
and intimacy) to its members is an important core function of the
contemporary family. In fulfilling this function, the family provides
support and encouragement and assists its members in coping with
decision making and with personal or social problems. To make it
easier for working parents to show their love, affection, and support
to their children, greeting card companies have been increasingly
creating cards for parents to give to their children (vice versa)
? Suitable family lifestyle
? Another important family function in terms of consumer behavior is
the establishment of a suitable lifestyle for the family. Upbringing,
experience, and the personal and jointly held goals of the spouses
determine the importance placed on education or career, on reading,
on television viewing, on the learning of computer skills, on the
frequency quality of dining out, and on the selection of other
entertainment and recreational activities.
? Family lifestyle commitments, including the allocation of time, are
generally influencing consumption patterns.
Family decision making and consumption-
related roles
? When two or more family members are directly or indirectly involved
in the decision making process, it is called family decision making.
Such family decisions differs from individuals decisions in many ways.
For example, if we consider the purchase of a bicycle for a child, some
of the relevant aspects to think about can be: who recognizes the
need for bicycle? How a brand is selected? What role the concerned
child plays?
? Joint decisions are more likely to operate in the early stages of
family life cycle when both spouses are relatively less experienced.
After gaining experience, they usually delegate responsibilities
concerning buying decisions to each other.
Key family consumption roles
? For?a?family?to?function?as?a?cohesive?unit,?tasks?such?as?doing?the?laundry,?
preparing?meals,?setting?the?dinner?table,?taking?out?the?garbage,?and?
walking?the?dog?must?be?carried?out?by?one?or?more?family?members.?In?a?
dynamic?society,?family?related?duties?are?constantly?changing?however,?
we?can?identify?either?distinct?roles?in?the?family?decision?making?process.
? ?For?example,?a?family?member?may?be?walking?down?the?cookie?aisle?at?a?
local?supermarket?when?she?picks?out?an?interesting?new?fat-free?cookie.?
Her?selection?does?not?directly?involve?the?influence?of?other?family?
members.?She?is?the?decider,?the?buyer?and,?in?a?sense,?the?gatekeeper,?
however,?she?may?not?be?the?sole?consumer.?Products?may?be?consumed?
by?a?single?family?member,?consumed?or?used?directly?by?two?or?more?
family?members,?or?consumed?indirectly?by?the?entire?family.
Dynamics of husband-wife decision making
? Marketers?are?interested?in?the?relative?amount?of?influence?that?a?
husband?and?a?wife?have?when?it?comes?to?family?consumption?
choices.?The?relative?influence?of?husbands?and?wives?can?be?
classified?as:?husband?dominated,?wife?dominated,?joint,?and?
autonomic.
? ?The?relative?influence?of?a?husband?and?wife?on?a?particular?
consumer?decisions?depends?in?part?on?the?product?and?service?
category.?For?instance,?during?1950s,?the?purchase?of?a?new?
automobile?was?strongly?husband?dominated,?whereas?food?and?
financial?banking?decisions?more?often?were?wife?dominated.?Fifty?
years?later,?the?purchase?of?the?family?s?principal?automobile?is?still?
often?husbands?dominated?in?many?households.?
? Husband wife decision making also appears to be related to cultural
influence. Research comparing husband wife decision making
patterns in the people?s republic of china and in the United States
revels that among Chinese there were substantially fewer ?joint?
decisions and more ?husband dominated? decisions for many
household purchases.
? However, when limiting the comparison to urban and rural Chinese
households, the research showed that in a large city such as Beijing,
married couples were more likely than rural couples to share equally
in purchase decisions. Still further, because of china?s ?one child?
policy and the ensuring custom of treating a single child as a ?little
emperor?, many of the parents purchase decisions are influenced by
the input of their child.
? In another recent cross-culture study, husband-wife decision making
was studied among three groups: Asian Indians living in India, Asian
Indians living in the United States, and American nationals. Results
show a decrease in husband decisions and an increase in wife
dominated decisions, going from Asian Indians in India, to Asian
Indians in the United States, to American nationals. This pattern
seems to indicate the impact of assimilation on decision making.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
Here's the comparison of India, China, and United
States on the basis of Hofstede's cultural
dimensions.
? Developing right competencies
? Once we understand the various facets of a national culture, then we
need to develop the right competencies to equip a business leader
with the right frame of mind, attitude, and skills to feel comfortable
and business-ready in the host culture.
Groups
? Groups exist in every formal and informal type of organisations. Such
groups are created by the members for its satisfaction. Very often
groups get formed automatically because of the operation of various
socio psychological factors. Such groups affect the behaviour of its
members.
Meaning of Group:
? Marvin E. Shaw has defined groups as ?two or more persons who are
interacting with one another in a such a manner that each person
influences and influenced by each other?
? Clouis R. Shepherd defines groups as ?A group may be defined as the
aggregation of small number of persons who work for common goals,
develop a shared attitudes and are aware that they are part of a
group and perceive themselves as such?.
Characteristics of Groups :
? 1. Two or more persons: To form a group there should be atleast two persons,
because a single individual cannot interact. Though no maximum limits have been set,
the size of the group should be such so as to allow meaningful interaction among the
members of group.
? 2. Collective identity: Each member of the group must believe that he is member of
the group and also be aware of his participation in the group activity. For instance a
group of boys are room-mates staying together in the hostel. Though they may not be
studying in the same class but because of their identity of room-mates they would prefer
to go out together for shopping.
? 3. Interaction: Members of the group will interact with each other. Though it is not
necessary for all members of the group to interact simultaneously but each member
must atleast occasionally interact with the members of the group.
? 4. Shared goal interest: Members of the group should concur to the attainment of
objectives each one must atleast share one of the groups concerns
The changing structure of family
? Basic functions provided by the family are particularly relevant to a
discussion of consumer behavior.
? These include:
? ? Economic well being
? ? Emotional support
? ? Suitable family lifestyles
Emotional well-being
? Although families in the affluent nations of North America, Europe
and Asia are no longer formed primarily for economic security,
providing financial means to its dependents unquestionably a basic
family function. How the family divides its responsibilities for
providing economic well-being has changed considerably during past
30 years. No longer are traditional husband as economic provider and
wife as home maker and child-rearer still valid.
? Emotional support
? The provision of emotional nourishment (including love, affection,
and intimacy) to its members is an important core function of the
contemporary family. In fulfilling this function, the family provides
support and encouragement and assists its members in coping with
decision making and with personal or social problems. To make it
easier for working parents to show their love, affection, and support
to their children, greeting card companies have been increasingly
creating cards for parents to give to their children (vice versa)
? Suitable family lifestyle
? Another important family function in terms of consumer behavior is
the establishment of a suitable lifestyle for the family. Upbringing,
experience, and the personal and jointly held goals of the spouses
determine the importance placed on education or career, on reading,
on television viewing, on the learning of computer skills, on the
frequency quality of dining out, and on the selection of other
entertainment and recreational activities.
? Family lifestyle commitments, including the allocation of time, are
generally influencing consumption patterns.
Family decision making and consumption-
related roles
? When two or more family members are directly or indirectly involved
in the decision making process, it is called family decision making.
Such family decisions differs from individuals decisions in many ways.
For example, if we consider the purchase of a bicycle for a child, some
of the relevant aspects to think about can be: who recognizes the
need for bicycle? How a brand is selected? What role the concerned
child plays?
? Joint decisions are more likely to operate in the early stages of
family life cycle when both spouses are relatively less experienced.
After gaining experience, they usually delegate responsibilities
concerning buying decisions to each other.
Key family consumption roles
? For?a?family?to?function?as?a?cohesive?unit,?tasks?such?as?doing?the?laundry,?
preparing?meals,?setting?the?dinner?table,?taking?out?the?garbage,?and?
walking?the?dog?must?be?carried?out?by?one?or?more?family?members.?In?a?
dynamic?society,?family?related?duties?are?constantly?changing?however,?
we?can?identify?either?distinct?roles?in?the?family?decision?making?process.
? ?For?example,?a?family?member?may?be?walking?down?the?cookie?aisle?at?a?
local?supermarket?when?she?picks?out?an?interesting?new?fat-free?cookie.?
Her?selection?does?not?directly?involve?the?influence?of?other?family?
members.?She?is?the?decider,?the?buyer?and,?in?a?sense,?the?gatekeeper,?
however,?she?may?not?be?the?sole?consumer.?Products?may?be?consumed?
by?a?single?family?member,?consumed?or?used?directly?by?two?or?more?
family?members,?or?consumed?indirectly?by?the?entire?family.
Dynamics of husband-wife decision making
? Marketers?are?interested?in?the?relative?amount?of?influence?that?a?
husband?and?a?wife?have?when?it?comes?to?family?consumption?
choices.?The?relative?influence?of?husbands?and?wives?can?be?
classified?as:?husband?dominated,?wife?dominated,?joint,?and?
autonomic.
? ?The?relative?influence?of?a?husband?and?wife?on?a?particular?
consumer?decisions?depends?in?part?on?the?product?and?service?
category.?For?instance,?during?1950s,?the?purchase?of?a?new?
automobile?was?strongly?husband?dominated,?whereas?food?and?
financial?banking?decisions?more?often?were?wife?dominated.?Fifty?
years?later,?the?purchase?of?the?family?s?principal?automobile?is?still?
often?husbands?dominated?in?many?households.?
? Husband wife decision making also appears to be related to cultural
influence. Research comparing husband wife decision making
patterns in the people?s republic of china and in the United States
revels that among Chinese there were substantially fewer ?joint?
decisions and more ?husband dominated? decisions for many
household purchases.
? However, when limiting the comparison to urban and rural Chinese
households, the research showed that in a large city such as Beijing,
married couples were more likely than rural couples to share equally
in purchase decisions. Still further, because of china?s ?one child?
policy and the ensuring custom of treating a single child as a ?little
emperor?, many of the parents purchase decisions are influenced by
the input of their child.
? In another recent cross-culture study, husband-wife decision making
was studied among three groups: Asian Indians living in India, Asian
Indians living in the United States, and American nationals. Results
show a decrease in husband decisions and an increase in wife
dominated decisions, going from Asian Indians in India, to Asian
Indians in the United States, to American nationals. This pattern
seems to indicate the impact of assimilation on decision making.
The expanding role of children in the family
decision making
? Over the past several decades, there has been a trend toward
children playing a more active role in what the family buys, as well as
in the family decision making process.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
Here's the comparison of India, China, and United
States on the basis of Hofstede's cultural
dimensions.
? Developing right competencies
? Once we understand the various facets of a national culture, then we
need to develop the right competencies to equip a business leader
with the right frame of mind, attitude, and skills to feel comfortable
and business-ready in the host culture.
Groups
? Groups exist in every formal and informal type of organisations. Such
groups are created by the members for its satisfaction. Very often
groups get formed automatically because of the operation of various
socio psychological factors. Such groups affect the behaviour of its
members.
Meaning of Group:
? Marvin E. Shaw has defined groups as ?two or more persons who are
interacting with one another in a such a manner that each person
influences and influenced by each other?
? Clouis R. Shepherd defines groups as ?A group may be defined as the
aggregation of small number of persons who work for common goals,
develop a shared attitudes and are aware that they are part of a
group and perceive themselves as such?.
Characteristics of Groups :
? 1. Two or more persons: To form a group there should be atleast two persons,
because a single individual cannot interact. Though no maximum limits have been set,
the size of the group should be such so as to allow meaningful interaction among the
members of group.
? 2. Collective identity: Each member of the group must believe that he is member of
the group and also be aware of his participation in the group activity. For instance a
group of boys are room-mates staying together in the hostel. Though they may not be
studying in the same class but because of their identity of room-mates they would prefer
to go out together for shopping.
? 3. Interaction: Members of the group will interact with each other. Though it is not
necessary for all members of the group to interact simultaneously but each member
must atleast occasionally interact with the members of the group.
? 4. Shared goal interest: Members of the group should concur to the attainment of
objectives each one must atleast share one of the groups concerns
The changing structure of family
? Basic functions provided by the family are particularly relevant to a
discussion of consumer behavior.
? These include:
? ? Economic well being
? ? Emotional support
? ? Suitable family lifestyles
Emotional well-being
? Although families in the affluent nations of North America, Europe
and Asia are no longer formed primarily for economic security,
providing financial means to its dependents unquestionably a basic
family function. How the family divides its responsibilities for
providing economic well-being has changed considerably during past
30 years. No longer are traditional husband as economic provider and
wife as home maker and child-rearer still valid.
? Emotional support
? The provision of emotional nourishment (including love, affection,
and intimacy) to its members is an important core function of the
contemporary family. In fulfilling this function, the family provides
support and encouragement and assists its members in coping with
decision making and with personal or social problems. To make it
easier for working parents to show their love, affection, and support
to their children, greeting card companies have been increasingly
creating cards for parents to give to their children (vice versa)
? Suitable family lifestyle
? Another important family function in terms of consumer behavior is
the establishment of a suitable lifestyle for the family. Upbringing,
experience, and the personal and jointly held goals of the spouses
determine the importance placed on education or career, on reading,
on television viewing, on the learning of computer skills, on the
frequency quality of dining out, and on the selection of other
entertainment and recreational activities.
? Family lifestyle commitments, including the allocation of time, are
generally influencing consumption patterns.
Family decision making and consumption-
related roles
? When two or more family members are directly or indirectly involved
in the decision making process, it is called family decision making.
Such family decisions differs from individuals decisions in many ways.
For example, if we consider the purchase of a bicycle for a child, some
of the relevant aspects to think about can be: who recognizes the
need for bicycle? How a brand is selected? What role the concerned
child plays?
? Joint decisions are more likely to operate in the early stages of
family life cycle when both spouses are relatively less experienced.
After gaining experience, they usually delegate responsibilities
concerning buying decisions to each other.
Key family consumption roles
? For?a?family?to?function?as?a?cohesive?unit,?tasks?such?as?doing?the?laundry,?
preparing?meals,?setting?the?dinner?table,?taking?out?the?garbage,?and?
walking?the?dog?must?be?carried?out?by?one?or?more?family?members.?In?a?
dynamic?society,?family?related?duties?are?constantly?changing?however,?
we?can?identify?either?distinct?roles?in?the?family?decision?making?process.
? ?For?example,?a?family?member?may?be?walking?down?the?cookie?aisle?at?a?
local?supermarket?when?she?picks?out?an?interesting?new?fat-free?cookie.?
Her?selection?does?not?directly?involve?the?influence?of?other?family?
members.?She?is?the?decider,?the?buyer?and,?in?a?sense,?the?gatekeeper,?
however,?she?may?not?be?the?sole?consumer.?Products?may?be?consumed?
by?a?single?family?member,?consumed?or?used?directly?by?two?or?more?
family?members,?or?consumed?indirectly?by?the?entire?family.
Dynamics of husband-wife decision making
? Marketers?are?interested?in?the?relative?amount?of?influence?that?a?
husband?and?a?wife?have?when?it?comes?to?family?consumption?
choices.?The?relative?influence?of?husbands?and?wives?can?be?
classified?as:?husband?dominated,?wife?dominated,?joint,?and?
autonomic.
? ?The?relative?influence?of?a?husband?and?wife?on?a?particular?
consumer?decisions?depends?in?part?on?the?product?and?service?
category.?For?instance,?during?1950s,?the?purchase?of?a?new?
automobile?was?strongly?husband?dominated,?whereas?food?and?
financial?banking?decisions?more?often?were?wife?dominated.?Fifty?
years?later,?the?purchase?of?the?family?s?principal?automobile?is?still?
often?husbands?dominated?in?many?households.?
? Husband wife decision making also appears to be related to cultural
influence. Research comparing husband wife decision making
patterns in the people?s republic of china and in the United States
revels that among Chinese there were substantially fewer ?joint?
decisions and more ?husband dominated? decisions for many
household purchases.
? However, when limiting the comparison to urban and rural Chinese
households, the research showed that in a large city such as Beijing,
married couples were more likely than rural couples to share equally
in purchase decisions. Still further, because of china?s ?one child?
policy and the ensuring custom of treating a single child as a ?little
emperor?, many of the parents purchase decisions are influenced by
the input of their child.
? In another recent cross-culture study, husband-wife decision making
was studied among three groups: Asian Indians living in India, Asian
Indians living in the United States, and American nationals. Results
show a decrease in husband decisions and an increase in wife
dominated decisions, going from Asian Indians in India, to Asian
Indians in the United States, to American nationals. This pattern
seems to indicate the impact of assimilation on decision making.
The expanding role of children in the family
decision making
? Over the past several decades, there has been a trend toward
children playing a more active role in what the family buys, as well as
in the family decision making process.
? This shift in influence has occurred as a result of families having fewer
children, more dual income couples who can afford to permit their
children to make greater number of the choices.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
Here's the comparison of India, China, and United
States on the basis of Hofstede's cultural
dimensions.
? Developing right competencies
? Once we understand the various facets of a national culture, then we
need to develop the right competencies to equip a business leader
with the right frame of mind, attitude, and skills to feel comfortable
and business-ready in the host culture.
Groups
? Groups exist in every formal and informal type of organisations. Such
groups are created by the members for its satisfaction. Very often
groups get formed automatically because of the operation of various
socio psychological factors. Such groups affect the behaviour of its
members.
Meaning of Group:
? Marvin E. Shaw has defined groups as ?two or more persons who are
interacting with one another in a such a manner that each person
influences and influenced by each other?
? Clouis R. Shepherd defines groups as ?A group may be defined as the
aggregation of small number of persons who work for common goals,
develop a shared attitudes and are aware that they are part of a
group and perceive themselves as such?.
Characteristics of Groups :
? 1. Two or more persons: To form a group there should be atleast two persons,
because a single individual cannot interact. Though no maximum limits have been set,
the size of the group should be such so as to allow meaningful interaction among the
members of group.
? 2. Collective identity: Each member of the group must believe that he is member of
the group and also be aware of his participation in the group activity. For instance a
group of boys are room-mates staying together in the hostel. Though they may not be
studying in the same class but because of their identity of room-mates they would prefer
to go out together for shopping.
? 3. Interaction: Members of the group will interact with each other. Though it is not
necessary for all members of the group to interact simultaneously but each member
must atleast occasionally interact with the members of the group.
? 4. Shared goal interest: Members of the group should concur to the attainment of
objectives each one must atleast share one of the groups concerns
The changing structure of family
? Basic functions provided by the family are particularly relevant to a
discussion of consumer behavior.
? These include:
? ? Economic well being
? ? Emotional support
? ? Suitable family lifestyles
Emotional well-being
? Although families in the affluent nations of North America, Europe
and Asia are no longer formed primarily for economic security,
providing financial means to its dependents unquestionably a basic
family function. How the family divides its responsibilities for
providing economic well-being has changed considerably during past
30 years. No longer are traditional husband as economic provider and
wife as home maker and child-rearer still valid.
? Emotional support
? The provision of emotional nourishment (including love, affection,
and intimacy) to its members is an important core function of the
contemporary family. In fulfilling this function, the family provides
support and encouragement and assists its members in coping with
decision making and with personal or social problems. To make it
easier for working parents to show their love, affection, and support
to their children, greeting card companies have been increasingly
creating cards for parents to give to their children (vice versa)
? Suitable family lifestyle
? Another important family function in terms of consumer behavior is
the establishment of a suitable lifestyle for the family. Upbringing,
experience, and the personal and jointly held goals of the spouses
determine the importance placed on education or career, on reading,
on television viewing, on the learning of computer skills, on the
frequency quality of dining out, and on the selection of other
entertainment and recreational activities.
? Family lifestyle commitments, including the allocation of time, are
generally influencing consumption patterns.
Family decision making and consumption-
related roles
? When two or more family members are directly or indirectly involved
in the decision making process, it is called family decision making.
Such family decisions differs from individuals decisions in many ways.
For example, if we consider the purchase of a bicycle for a child, some
of the relevant aspects to think about can be: who recognizes the
need for bicycle? How a brand is selected? What role the concerned
child plays?
? Joint decisions are more likely to operate in the early stages of
family life cycle when both spouses are relatively less experienced.
After gaining experience, they usually delegate responsibilities
concerning buying decisions to each other.
Key family consumption roles
? For?a?family?to?function?as?a?cohesive?unit,?tasks?such?as?doing?the?laundry,?
preparing?meals,?setting?the?dinner?table,?taking?out?the?garbage,?and?
walking?the?dog?must?be?carried?out?by?one?or?more?family?members.?In?a?
dynamic?society,?family?related?duties?are?constantly?changing?however,?
we?can?identify?either?distinct?roles?in?the?family?decision?making?process.
? ?For?example,?a?family?member?may?be?walking?down?the?cookie?aisle?at?a?
local?supermarket?when?she?picks?out?an?interesting?new?fat-free?cookie.?
Her?selection?does?not?directly?involve?the?influence?of?other?family?
members.?She?is?the?decider,?the?buyer?and,?in?a?sense,?the?gatekeeper,?
however,?she?may?not?be?the?sole?consumer.?Products?may?be?consumed?
by?a?single?family?member,?consumed?or?used?directly?by?two?or?more?
family?members,?or?consumed?indirectly?by?the?entire?family.
Dynamics of husband-wife decision making
? Marketers?are?interested?in?the?relative?amount?of?influence?that?a?
husband?and?a?wife?have?when?it?comes?to?family?consumption?
choices.?The?relative?influence?of?husbands?and?wives?can?be?
classified?as:?husband?dominated,?wife?dominated,?joint,?and?
autonomic.
? ?The?relative?influence?of?a?husband?and?wife?on?a?particular?
consumer?decisions?depends?in?part?on?the?product?and?service?
category.?For?instance,?during?1950s,?the?purchase?of?a?new?
automobile?was?strongly?husband?dominated,?whereas?food?and?
financial?banking?decisions?more?often?were?wife?dominated.?Fifty?
years?later,?the?purchase?of?the?family?s?principal?automobile?is?still?
often?husbands?dominated?in?many?households.?
? Husband wife decision making also appears to be related to cultural
influence. Research comparing husband wife decision making
patterns in the people?s republic of china and in the United States
revels that among Chinese there were substantially fewer ?joint?
decisions and more ?husband dominated? decisions for many
household purchases.
? However, when limiting the comparison to urban and rural Chinese
households, the research showed that in a large city such as Beijing,
married couples were more likely than rural couples to share equally
in purchase decisions. Still further, because of china?s ?one child?
policy and the ensuring custom of treating a single child as a ?little
emperor?, many of the parents purchase decisions are influenced by
the input of their child.
? In another recent cross-culture study, husband-wife decision making
was studied among three groups: Asian Indians living in India, Asian
Indians living in the United States, and American nationals. Results
show a decrease in husband decisions and an increase in wife
dominated decisions, going from Asian Indians in India, to Asian
Indians in the United States, to American nationals. This pattern
seems to indicate the impact of assimilation on decision making.
The expanding role of children in the family
decision making
? Over the past several decades, there has been a trend toward
children playing a more active role in what the family buys, as well as
in the family decision making process.
? This shift in influence has occurred as a result of families having fewer
children, more dual income couples who can afford to permit their
children to make greater number of the choices.
? Also the single parent households often push their children toward
household participation and self reliance.
? For example kids in supermarkets with a parent make an average of
15 requests, of which about half are typically granted.
? The table shows some of the tactics employed by children to
influence their parents.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
Here's the comparison of India, China, and United
States on the basis of Hofstede's cultural
dimensions.
? Developing right competencies
? Once we understand the various facets of a national culture, then we
need to develop the right competencies to equip a business leader
with the right frame of mind, attitude, and skills to feel comfortable
and business-ready in the host culture.
Groups
? Groups exist in every formal and informal type of organisations. Such
groups are created by the members for its satisfaction. Very often
groups get formed automatically because of the operation of various
socio psychological factors. Such groups affect the behaviour of its
members.
Meaning of Group:
? Marvin E. Shaw has defined groups as ?two or more persons who are
interacting with one another in a such a manner that each person
influences and influenced by each other?
? Clouis R. Shepherd defines groups as ?A group may be defined as the
aggregation of small number of persons who work for common goals,
develop a shared attitudes and are aware that they are part of a
group and perceive themselves as such?.
Characteristics of Groups :
? 1. Two or more persons: To form a group there should be atleast two persons,
because a single individual cannot interact. Though no maximum limits have been set,
the size of the group should be such so as to allow meaningful interaction among the
members of group.
? 2. Collective identity: Each member of the group must believe that he is member of
the group and also be aware of his participation in the group activity. For instance a
group of boys are room-mates staying together in the hostel. Though they may not be
studying in the same class but because of their identity of room-mates they would prefer
to go out together for shopping.
? 3. Interaction: Members of the group will interact with each other. Though it is not
necessary for all members of the group to interact simultaneously but each member
must atleast occasionally interact with the members of the group.
? 4. Shared goal interest: Members of the group should concur to the attainment of
objectives each one must atleast share one of the groups concerns
The changing structure of family
? Basic functions provided by the family are particularly relevant to a
discussion of consumer behavior.
? These include:
? ? Economic well being
? ? Emotional support
? ? Suitable family lifestyles
Emotional well-being
? Although families in the affluent nations of North America, Europe
and Asia are no longer formed primarily for economic security,
providing financial means to its dependents unquestionably a basic
family function. How the family divides its responsibilities for
providing economic well-being has changed considerably during past
30 years. No longer are traditional husband as economic provider and
wife as home maker and child-rearer still valid.
? Emotional support
? The provision of emotional nourishment (including love, affection,
and intimacy) to its members is an important core function of the
contemporary family. In fulfilling this function, the family provides
support and encouragement and assists its members in coping with
decision making and with personal or social problems. To make it
easier for working parents to show their love, affection, and support
to their children, greeting card companies have been increasingly
creating cards for parents to give to their children (vice versa)
? Suitable family lifestyle
? Another important family function in terms of consumer behavior is
the establishment of a suitable lifestyle for the family. Upbringing,
experience, and the personal and jointly held goals of the spouses
determine the importance placed on education or career, on reading,
on television viewing, on the learning of computer skills, on the
frequency quality of dining out, and on the selection of other
entertainment and recreational activities.
? Family lifestyle commitments, including the allocation of time, are
generally influencing consumption patterns.
Family decision making and consumption-
related roles
? When two or more family members are directly or indirectly involved
in the decision making process, it is called family decision making.
Such family decisions differs from individuals decisions in many ways.
For example, if we consider the purchase of a bicycle for a child, some
of the relevant aspects to think about can be: who recognizes the
need for bicycle? How a brand is selected? What role the concerned
child plays?
? Joint decisions are more likely to operate in the early stages of
family life cycle when both spouses are relatively less experienced.
After gaining experience, they usually delegate responsibilities
concerning buying decisions to each other.
Key family consumption roles
? For?a?family?to?function?as?a?cohesive?unit,?tasks?such?as?doing?the?laundry,?
preparing?meals,?setting?the?dinner?table,?taking?out?the?garbage,?and?
walking?the?dog?must?be?carried?out?by?one?or?more?family?members.?In?a?
dynamic?society,?family?related?duties?are?constantly?changing?however,?
we?can?identify?either?distinct?roles?in?the?family?decision?making?process.
? ?For?example,?a?family?member?may?be?walking?down?the?cookie?aisle?at?a?
local?supermarket?when?she?picks?out?an?interesting?new?fat-free?cookie.?
Her?selection?does?not?directly?involve?the?influence?of?other?family?
members.?She?is?the?decider,?the?buyer?and,?in?a?sense,?the?gatekeeper,?
however,?she?may?not?be?the?sole?consumer.?Products?may?be?consumed?
by?a?single?family?member,?consumed?or?used?directly?by?two?or?more?
family?members,?or?consumed?indirectly?by?the?entire?family.
Dynamics of husband-wife decision making
? Marketers?are?interested?in?the?relative?amount?of?influence?that?a?
husband?and?a?wife?have?when?it?comes?to?family?consumption?
choices.?The?relative?influence?of?husbands?and?wives?can?be?
classified?as:?husband?dominated,?wife?dominated,?joint,?and?
autonomic.
? ?The?relative?influence?of?a?husband?and?wife?on?a?particular?
consumer?decisions?depends?in?part?on?the?product?and?service?
category.?For?instance,?during?1950s,?the?purchase?of?a?new?
automobile?was?strongly?husband?dominated,?whereas?food?and?
financial?banking?decisions?more?often?were?wife?dominated.?Fifty?
years?later,?the?purchase?of?the?family?s?principal?automobile?is?still?
often?husbands?dominated?in?many?households.?
? Husband wife decision making also appears to be related to cultural
influence. Research comparing husband wife decision making
patterns in the people?s republic of china and in the United States
revels that among Chinese there were substantially fewer ?joint?
decisions and more ?husband dominated? decisions for many
household purchases.
? However, when limiting the comparison to urban and rural Chinese
households, the research showed that in a large city such as Beijing,
married couples were more likely than rural couples to share equally
in purchase decisions. Still further, because of china?s ?one child?
policy and the ensuring custom of treating a single child as a ?little
emperor?, many of the parents purchase decisions are influenced by
the input of their child.
? In another recent cross-culture study, husband-wife decision making
was studied among three groups: Asian Indians living in India, Asian
Indians living in the United States, and American nationals. Results
show a decrease in husband decisions and an increase in wife
dominated decisions, going from Asian Indians in India, to Asian
Indians in the United States, to American nationals. This pattern
seems to indicate the impact of assimilation on decision making.
The expanding role of children in the family
decision making
? Over the past several decades, there has been a trend toward
children playing a more active role in what the family buys, as well as
in the family decision making process.
? This shift in influence has occurred as a result of families having fewer
children, more dual income couples who can afford to permit their
children to make greater number of the choices.
? Also the single parent households often push their children toward
household participation and self reliance.
? For example kids in supermarkets with a parent make an average of
15 requests, of which about half are typically granted.
? The table shows some of the tactics employed by children to
influence their parents.
Tactics used by children to influence their parents
? Pressure tactics
The child makes demand uses threats, or intimidation to persuade you to
comply with his /her request
? Upward appeal
The child seeks to influence you, saying that the request was approved or
supported by an older member of the family, a teacher, or a family friend
? Exchange tactics
The child makes an explicit or implicit promise to give you some sort of
service such as washing the car in return for the favour
? Coalition tactics
The child seeks the aid of others to persuade you to comply with his /her
request or uses the support of others as an argument for you to agree with
him/her
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
Here's the comparison of India, China, and United
States on the basis of Hofstede's cultural
dimensions.
? Developing right competencies
? Once we understand the various facets of a national culture, then we
need to develop the right competencies to equip a business leader
with the right frame of mind, attitude, and skills to feel comfortable
and business-ready in the host culture.
Groups
? Groups exist in every formal and informal type of organisations. Such
groups are created by the members for its satisfaction. Very often
groups get formed automatically because of the operation of various
socio psychological factors. Such groups affect the behaviour of its
members.
Meaning of Group:
? Marvin E. Shaw has defined groups as ?two or more persons who are
interacting with one another in a such a manner that each person
influences and influenced by each other?
? Clouis R. Shepherd defines groups as ?A group may be defined as the
aggregation of small number of persons who work for common goals,
develop a shared attitudes and are aware that they are part of a
group and perceive themselves as such?.
Characteristics of Groups :
? 1. Two or more persons: To form a group there should be atleast two persons,
because a single individual cannot interact. Though no maximum limits have been set,
the size of the group should be such so as to allow meaningful interaction among the
members of group.
? 2. Collective identity: Each member of the group must believe that he is member of
the group and also be aware of his participation in the group activity. For instance a
group of boys are room-mates staying together in the hostel. Though they may not be
studying in the same class but because of their identity of room-mates they would prefer
to go out together for shopping.
? 3. Interaction: Members of the group will interact with each other. Though it is not
necessary for all members of the group to interact simultaneously but each member
must atleast occasionally interact with the members of the group.
? 4. Shared goal interest: Members of the group should concur to the attainment of
objectives each one must atleast share one of the groups concerns
The changing structure of family
? Basic functions provided by the family are particularly relevant to a
discussion of consumer behavior.
? These include:
? ? Economic well being
? ? Emotional support
? ? Suitable family lifestyles
Emotional well-being
? Although families in the affluent nations of North America, Europe
and Asia are no longer formed primarily for economic security,
providing financial means to its dependents unquestionably a basic
family function. How the family divides its responsibilities for
providing economic well-being has changed considerably during past
30 years. No longer are traditional husband as economic provider and
wife as home maker and child-rearer still valid.
? Emotional support
? The provision of emotional nourishment (including love, affection,
and intimacy) to its members is an important core function of the
contemporary family. In fulfilling this function, the family provides
support and encouragement and assists its members in coping with
decision making and with personal or social problems. To make it
easier for working parents to show their love, affection, and support
to their children, greeting card companies have been increasingly
creating cards for parents to give to their children (vice versa)
? Suitable family lifestyle
? Another important family function in terms of consumer behavior is
the establishment of a suitable lifestyle for the family. Upbringing,
experience, and the personal and jointly held goals of the spouses
determine the importance placed on education or career, on reading,
on television viewing, on the learning of computer skills, on the
frequency quality of dining out, and on the selection of other
entertainment and recreational activities.
? Family lifestyle commitments, including the allocation of time, are
generally influencing consumption patterns.
Family decision making and consumption-
related roles
? When two or more family members are directly or indirectly involved
in the decision making process, it is called family decision making.
Such family decisions differs from individuals decisions in many ways.
For example, if we consider the purchase of a bicycle for a child, some
of the relevant aspects to think about can be: who recognizes the
need for bicycle? How a brand is selected? What role the concerned
child plays?
? Joint decisions are more likely to operate in the early stages of
family life cycle when both spouses are relatively less experienced.
After gaining experience, they usually delegate responsibilities
concerning buying decisions to each other.
Key family consumption roles
? For?a?family?to?function?as?a?cohesive?unit,?tasks?such?as?doing?the?laundry,?
preparing?meals,?setting?the?dinner?table,?taking?out?the?garbage,?and?
walking?the?dog?must?be?carried?out?by?one?or?more?family?members.?In?a?
dynamic?society,?family?related?duties?are?constantly?changing?however,?
we?can?identify?either?distinct?roles?in?the?family?decision?making?process.
? ?For?example,?a?family?member?may?be?walking?down?the?cookie?aisle?at?a?
local?supermarket?when?she?picks?out?an?interesting?new?fat-free?cookie.?
Her?selection?does?not?directly?involve?the?influence?of?other?family?
members.?She?is?the?decider,?the?buyer?and,?in?a?sense,?the?gatekeeper,?
however,?she?may?not?be?the?sole?consumer.?Products?may?be?consumed?
by?a?single?family?member,?consumed?or?used?directly?by?two?or?more?
family?members,?or?consumed?indirectly?by?the?entire?family.
Dynamics of husband-wife decision making
? Marketers?are?interested?in?the?relative?amount?of?influence?that?a?
husband?and?a?wife?have?when?it?comes?to?family?consumption?
choices.?The?relative?influence?of?husbands?and?wives?can?be?
classified?as:?husband?dominated,?wife?dominated,?joint,?and?
autonomic.
? ?The?relative?influence?of?a?husband?and?wife?on?a?particular?
consumer?decisions?depends?in?part?on?the?product?and?service?
category.?For?instance,?during?1950s,?the?purchase?of?a?new?
automobile?was?strongly?husband?dominated,?whereas?food?and?
financial?banking?decisions?more?often?were?wife?dominated.?Fifty?
years?later,?the?purchase?of?the?family?s?principal?automobile?is?still?
often?husbands?dominated?in?many?households.?
? Husband wife decision making also appears to be related to cultural
influence. Research comparing husband wife decision making
patterns in the people?s republic of china and in the United States
revels that among Chinese there were substantially fewer ?joint?
decisions and more ?husband dominated? decisions for many
household purchases.
? However, when limiting the comparison to urban and rural Chinese
households, the research showed that in a large city such as Beijing,
married couples were more likely than rural couples to share equally
in purchase decisions. Still further, because of china?s ?one child?
policy and the ensuring custom of treating a single child as a ?little
emperor?, many of the parents purchase decisions are influenced by
the input of their child.
? In another recent cross-culture study, husband-wife decision making
was studied among three groups: Asian Indians living in India, Asian
Indians living in the United States, and American nationals. Results
show a decrease in husband decisions and an increase in wife
dominated decisions, going from Asian Indians in India, to Asian
Indians in the United States, to American nationals. This pattern
seems to indicate the impact of assimilation on decision making.
The expanding role of children in the family
decision making
? Over the past several decades, there has been a trend toward
children playing a more active role in what the family buys, as well as
in the family decision making process.
? This shift in influence has occurred as a result of families having fewer
children, more dual income couples who can afford to permit their
children to make greater number of the choices.
? Also the single parent households often push their children toward
household participation and self reliance.
? For example kids in supermarkets with a parent make an average of
15 requests, of which about half are typically granted.
? The table shows some of the tactics employed by children to
influence their parents.
Tactics used by children to influence their parents
? Pressure tactics
The child makes demand uses threats, or intimidation to persuade you to
comply with his /her request
? Upward appeal
The child seeks to influence you, saying that the request was approved or
supported by an older member of the family, a teacher, or a family friend
? Exchange tactics
The child makes an explicit or implicit promise to give you some sort of
service such as washing the car in return for the favour
? Coalition tactics
The child seeks the aid of others to persuade you to comply with his /her
request or uses the support of others as an argument for you to agree with
him/her
? Ingratiating tactics
The child seeks to get you in a good mood or think favourably of him or
her before asking you to comply with a request.
? Rational persuasion
The child uses logical arguments and factual evidence to persuade you
to agree with his/her request
? Inspirational appeals
The child makes an emotional appeal or proposal that arouses
enthusiasm by appealing to your values and ideas
? Consultation tactics
The child seeks your involvement in making a decision
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
Here's the comparison of India, China, and United
States on the basis of Hofstede's cultural
dimensions.
? Developing right competencies
? Once we understand the various facets of a national culture, then we
need to develop the right competencies to equip a business leader
with the right frame of mind, attitude, and skills to feel comfortable
and business-ready in the host culture.
Groups
? Groups exist in every formal and informal type of organisations. Such
groups are created by the members for its satisfaction. Very often
groups get formed automatically because of the operation of various
socio psychological factors. Such groups affect the behaviour of its
members.
Meaning of Group:
? Marvin E. Shaw has defined groups as ?two or more persons who are
interacting with one another in a such a manner that each person
influences and influenced by each other?
? Clouis R. Shepherd defines groups as ?A group may be defined as the
aggregation of small number of persons who work for common goals,
develop a shared attitudes and are aware that they are part of a
group and perceive themselves as such?.
Characteristics of Groups :
? 1. Two or more persons: To form a group there should be atleast two persons,
because a single individual cannot interact. Though no maximum limits have been set,
the size of the group should be such so as to allow meaningful interaction among the
members of group.
? 2. Collective identity: Each member of the group must believe that he is member of
the group and also be aware of his participation in the group activity. For instance a
group of boys are room-mates staying together in the hostel. Though they may not be
studying in the same class but because of their identity of room-mates they would prefer
to go out together for shopping.
? 3. Interaction: Members of the group will interact with each other. Though it is not
necessary for all members of the group to interact simultaneously but each member
must atleast occasionally interact with the members of the group.
? 4. Shared goal interest: Members of the group should concur to the attainment of
objectives each one must atleast share one of the groups concerns
The changing structure of family
? Basic functions provided by the family are particularly relevant to a
discussion of consumer behavior.
? These include:
? ? Economic well being
? ? Emotional support
? ? Suitable family lifestyles
Emotional well-being
? Although families in the affluent nations of North America, Europe
and Asia are no longer formed primarily for economic security,
providing financial means to its dependents unquestionably a basic
family function. How the family divides its responsibilities for
providing economic well-being has changed considerably during past
30 years. No longer are traditional husband as economic provider and
wife as home maker and child-rearer still valid.
? Emotional support
? The provision of emotional nourishment (including love, affection,
and intimacy) to its members is an important core function of the
contemporary family. In fulfilling this function, the family provides
support and encouragement and assists its members in coping with
decision making and with personal or social problems. To make it
easier for working parents to show their love, affection, and support
to their children, greeting card companies have been increasingly
creating cards for parents to give to their children (vice versa)
? Suitable family lifestyle
? Another important family function in terms of consumer behavior is
the establishment of a suitable lifestyle for the family. Upbringing,
experience, and the personal and jointly held goals of the spouses
determine the importance placed on education or career, on reading,
on television viewing, on the learning of computer skills, on the
frequency quality of dining out, and on the selection of other
entertainment and recreational activities.
? Family lifestyle commitments, including the allocation of time, are
generally influencing consumption patterns.
Family decision making and consumption-
related roles
? When two or more family members are directly or indirectly involved
in the decision making process, it is called family decision making.
Such family decisions differs from individuals decisions in many ways.
For example, if we consider the purchase of a bicycle for a child, some
of the relevant aspects to think about can be: who recognizes the
need for bicycle? How a brand is selected? What role the concerned
child plays?
? Joint decisions are more likely to operate in the early stages of
family life cycle when both spouses are relatively less experienced.
After gaining experience, they usually delegate responsibilities
concerning buying decisions to each other.
Key family consumption roles
? For?a?family?to?function?as?a?cohesive?unit,?tasks?such?as?doing?the?laundry,?
preparing?meals,?setting?the?dinner?table,?taking?out?the?garbage,?and?
walking?the?dog?must?be?carried?out?by?one?or?more?family?members.?In?a?
dynamic?society,?family?related?duties?are?constantly?changing?however,?
we?can?identify?either?distinct?roles?in?the?family?decision?making?process.
? ?For?example,?a?family?member?may?be?walking?down?the?cookie?aisle?at?a?
local?supermarket?when?she?picks?out?an?interesting?new?fat-free?cookie.?
Her?selection?does?not?directly?involve?the?influence?of?other?family?
members.?She?is?the?decider,?the?buyer?and,?in?a?sense,?the?gatekeeper,?
however,?she?may?not?be?the?sole?consumer.?Products?may?be?consumed?
by?a?single?family?member,?consumed?or?used?directly?by?two?or?more?
family?members,?or?consumed?indirectly?by?the?entire?family.
Dynamics of husband-wife decision making
? Marketers?are?interested?in?the?relative?amount?of?influence?that?a?
husband?and?a?wife?have?when?it?comes?to?family?consumption?
choices.?The?relative?influence?of?husbands?and?wives?can?be?
classified?as:?husband?dominated,?wife?dominated,?joint,?and?
autonomic.
? ?The?relative?influence?of?a?husband?and?wife?on?a?particular?
consumer?decisions?depends?in?part?on?the?product?and?service?
category.?For?instance,?during?1950s,?the?purchase?of?a?new?
automobile?was?strongly?husband?dominated,?whereas?food?and?
financial?banking?decisions?more?often?were?wife?dominated.?Fifty?
years?later,?the?purchase?of?the?family?s?principal?automobile?is?still?
often?husbands?dominated?in?many?households.?
? Husband wife decision making also appears to be related to cultural
influence. Research comparing husband wife decision making
patterns in the people?s republic of china and in the United States
revels that among Chinese there were substantially fewer ?joint?
decisions and more ?husband dominated? decisions for many
household purchases.
? However, when limiting the comparison to urban and rural Chinese
households, the research showed that in a large city such as Beijing,
married couples were more likely than rural couples to share equally
in purchase decisions. Still further, because of china?s ?one child?
policy and the ensuring custom of treating a single child as a ?little
emperor?, many of the parents purchase decisions are influenced by
the input of their child.
? In another recent cross-culture study, husband-wife decision making
was studied among three groups: Asian Indians living in India, Asian
Indians living in the United States, and American nationals. Results
show a decrease in husband decisions and an increase in wife
dominated decisions, going from Asian Indians in India, to Asian
Indians in the United States, to American nationals. This pattern
seems to indicate the impact of assimilation on decision making.
The expanding role of children in the family
decision making
? Over the past several decades, there has been a trend toward
children playing a more active role in what the family buys, as well as
in the family decision making process.
? This shift in influence has occurred as a result of families having fewer
children, more dual income couples who can afford to permit their
children to make greater number of the choices.
? Also the single parent households often push their children toward
household participation and self reliance.
? For example kids in supermarkets with a parent make an average of
15 requests, of which about half are typically granted.
? The table shows some of the tactics employed by children to
influence their parents.
Tactics used by children to influence their parents
? Pressure tactics
The child makes demand uses threats, or intimidation to persuade you to
comply with his /her request
? Upward appeal
The child seeks to influence you, saying that the request was approved or
supported by an older member of the family, a teacher, or a family friend
? Exchange tactics
The child makes an explicit or implicit promise to give you some sort of
service such as washing the car in return for the favour
? Coalition tactics
The child seeks the aid of others to persuade you to comply with his /her
request or uses the support of others as an argument for you to agree with
him/her
? Ingratiating tactics
The child seeks to get you in a good mood or think favourably of him or
her before asking you to comply with a request.
? Rational persuasion
The child uses logical arguments and factual evidence to persuade you
to agree with his/her request
? Inspirational appeals
The child makes an emotional appeal or proposal that arouses
enthusiasm by appealing to your values and ideas
? Consultation tactics
The child seeks your involvement in making a decision
Family life cycle stages
? The concept of household or family life cycle is important for marketers in
segmenting the market. In 1966, William wells and George Gubar proposed eight
stages to describe the family life cycle.
? The following life cycle stages are typical of families:
1. The bachelor stage: young, single person under age of 35 years. Incomes
are generally low since they have started careers, but they may have few financial
burdens and sufficient discretionary income.
2. Newly married: young couples, no children. If both are employed, they will
have high level of discretionary income.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
Here's the comparison of India, China, and United
States on the basis of Hofstede's cultural
dimensions.
? Developing right competencies
? Once we understand the various facets of a national culture, then we
need to develop the right competencies to equip a business leader
with the right frame of mind, attitude, and skills to feel comfortable
and business-ready in the host culture.
Groups
? Groups exist in every formal and informal type of organisations. Such
groups are created by the members for its satisfaction. Very often
groups get formed automatically because of the operation of various
socio psychological factors. Such groups affect the behaviour of its
members.
Meaning of Group:
? Marvin E. Shaw has defined groups as ?two or more persons who are
interacting with one another in a such a manner that each person
influences and influenced by each other?
? Clouis R. Shepherd defines groups as ?A group may be defined as the
aggregation of small number of persons who work for common goals,
develop a shared attitudes and are aware that they are part of a
group and perceive themselves as such?.
Characteristics of Groups :
? 1. Two or more persons: To form a group there should be atleast two persons,
because a single individual cannot interact. Though no maximum limits have been set,
the size of the group should be such so as to allow meaningful interaction among the
members of group.
? 2. Collective identity: Each member of the group must believe that he is member of
the group and also be aware of his participation in the group activity. For instance a
group of boys are room-mates staying together in the hostel. Though they may not be
studying in the same class but because of their identity of room-mates they would prefer
to go out together for shopping.
? 3. Interaction: Members of the group will interact with each other. Though it is not
necessary for all members of the group to interact simultaneously but each member
must atleast occasionally interact with the members of the group.
? 4. Shared goal interest: Members of the group should concur to the attainment of
objectives each one must atleast share one of the groups concerns
The changing structure of family
? Basic functions provided by the family are particularly relevant to a
discussion of consumer behavior.
? These include:
? ? Economic well being
? ? Emotional support
? ? Suitable family lifestyles
Emotional well-being
? Although families in the affluent nations of North America, Europe
and Asia are no longer formed primarily for economic security,
providing financial means to its dependents unquestionably a basic
family function. How the family divides its responsibilities for
providing economic well-being has changed considerably during past
30 years. No longer are traditional husband as economic provider and
wife as home maker and child-rearer still valid.
? Emotional support
? The provision of emotional nourishment (including love, affection,
and intimacy) to its members is an important core function of the
contemporary family. In fulfilling this function, the family provides
support and encouragement and assists its members in coping with
decision making and with personal or social problems. To make it
easier for working parents to show their love, affection, and support
to their children, greeting card companies have been increasingly
creating cards for parents to give to their children (vice versa)
? Suitable family lifestyle
? Another important family function in terms of consumer behavior is
the establishment of a suitable lifestyle for the family. Upbringing,
experience, and the personal and jointly held goals of the spouses
determine the importance placed on education or career, on reading,
on television viewing, on the learning of computer skills, on the
frequency quality of dining out, and on the selection of other
entertainment and recreational activities.
? Family lifestyle commitments, including the allocation of time, are
generally influencing consumption patterns.
Family decision making and consumption-
related roles
? When two or more family members are directly or indirectly involved
in the decision making process, it is called family decision making.
Such family decisions differs from individuals decisions in many ways.
For example, if we consider the purchase of a bicycle for a child, some
of the relevant aspects to think about can be: who recognizes the
need for bicycle? How a brand is selected? What role the concerned
child plays?
? Joint decisions are more likely to operate in the early stages of
family life cycle when both spouses are relatively less experienced.
After gaining experience, they usually delegate responsibilities
concerning buying decisions to each other.
Key family consumption roles
? For?a?family?to?function?as?a?cohesive?unit,?tasks?such?as?doing?the?laundry,?
preparing?meals,?setting?the?dinner?table,?taking?out?the?garbage,?and?
walking?the?dog?must?be?carried?out?by?one?or?more?family?members.?In?a?
dynamic?society,?family?related?duties?are?constantly?changing?however,?
we?can?identify?either?distinct?roles?in?the?family?decision?making?process.
? ?For?example,?a?family?member?may?be?walking?down?the?cookie?aisle?at?a?
local?supermarket?when?she?picks?out?an?interesting?new?fat-free?cookie.?
Her?selection?does?not?directly?involve?the?influence?of?other?family?
members.?She?is?the?decider,?the?buyer?and,?in?a?sense,?the?gatekeeper,?
however,?she?may?not?be?the?sole?consumer.?Products?may?be?consumed?
by?a?single?family?member,?consumed?or?used?directly?by?two?or?more?
family?members,?or?consumed?indirectly?by?the?entire?family.
Dynamics of husband-wife decision making
? Marketers?are?interested?in?the?relative?amount?of?influence?that?a?
husband?and?a?wife?have?when?it?comes?to?family?consumption?
choices.?The?relative?influence?of?husbands?and?wives?can?be?
classified?as:?husband?dominated,?wife?dominated,?joint,?and?
autonomic.
? ?The?relative?influence?of?a?husband?and?wife?on?a?particular?
consumer?decisions?depends?in?part?on?the?product?and?service?
category.?For?instance,?during?1950s,?the?purchase?of?a?new?
automobile?was?strongly?husband?dominated,?whereas?food?and?
financial?banking?decisions?more?often?were?wife?dominated.?Fifty?
years?later,?the?purchase?of?the?family?s?principal?automobile?is?still?
often?husbands?dominated?in?many?households.?
? Husband wife decision making also appears to be related to cultural
influence. Research comparing husband wife decision making
patterns in the people?s republic of china and in the United States
revels that among Chinese there were substantially fewer ?joint?
decisions and more ?husband dominated? decisions for many
household purchases.
? However, when limiting the comparison to urban and rural Chinese
households, the research showed that in a large city such as Beijing,
married couples were more likely than rural couples to share equally
in purchase decisions. Still further, because of china?s ?one child?
policy and the ensuring custom of treating a single child as a ?little
emperor?, many of the parents purchase decisions are influenced by
the input of their child.
? In another recent cross-culture study, husband-wife decision making
was studied among three groups: Asian Indians living in India, Asian
Indians living in the United States, and American nationals. Results
show a decrease in husband decisions and an increase in wife
dominated decisions, going from Asian Indians in India, to Asian
Indians in the United States, to American nationals. This pattern
seems to indicate the impact of assimilation on decision making.
The expanding role of children in the family
decision making
? Over the past several decades, there has been a trend toward
children playing a more active role in what the family buys, as well as
in the family decision making process.
? This shift in influence has occurred as a result of families having fewer
children, more dual income couples who can afford to permit their
children to make greater number of the choices.
? Also the single parent households often push their children toward
household participation and self reliance.
? For example kids in supermarkets with a parent make an average of
15 requests, of which about half are typically granted.
? The table shows some of the tactics employed by children to
influence their parents.
Tactics used by children to influence their parents
? Pressure tactics
The child makes demand uses threats, or intimidation to persuade you to
comply with his /her request
? Upward appeal
The child seeks to influence you, saying that the request was approved or
supported by an older member of the family, a teacher, or a family friend
? Exchange tactics
The child makes an explicit or implicit promise to give you some sort of
service such as washing the car in return for the favour
? Coalition tactics
The child seeks the aid of others to persuade you to comply with his /her
request or uses the support of others as an argument for you to agree with
him/her
? Ingratiating tactics
The child seeks to get you in a good mood or think favourably of him or
her before asking you to comply with a request.
? Rational persuasion
The child uses logical arguments and factual evidence to persuade you
to agree with his/her request
? Inspirational appeals
The child makes an emotional appeal or proposal that arouses
enthusiasm by appealing to your values and ideas
? Consultation tactics
The child seeks your involvement in making a decision
Family life cycle stages
? The concept of household or family life cycle is important for marketers in
segmenting the market. In 1966, William wells and George Gubar proposed eight
stages to describe the family life cycle.
? The following life cycle stages are typical of families:
1. The bachelor stage: young, single person under age of 35 years. Incomes
are generally low since they have started careers, but they may have few financial
burdens and sufficient discretionary income.
2. Newly married: young couples, no children. If both are employed, they will
have high level of discretionary income.
Family life cycle stages
3. Full nest 1: young married couples with youngest child under 6 years of age.
There would be greater squeezes on income because of increased on childcare.
However, if they are members of a joint family, the level of flexible income is
likely to be high.
4. Full nest 2: young married couples with children from 6 years to 12 years of
age. Better financial position because income of both parents rising. Children
spend more hours outside their parents influence.
5. Full nest 3: older married couples with dependent teenage children living at
home. Financial position of family continues to improve. There are increasing costs
of college education for children.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
Here's the comparison of India, China, and United
States on the basis of Hofstede's cultural
dimensions.
? Developing right competencies
? Once we understand the various facets of a national culture, then we
need to develop the right competencies to equip a business leader
with the right frame of mind, attitude, and skills to feel comfortable
and business-ready in the host culture.
Groups
? Groups exist in every formal and informal type of organisations. Such
groups are created by the members for its satisfaction. Very often
groups get formed automatically because of the operation of various
socio psychological factors. Such groups affect the behaviour of its
members.
Meaning of Group:
? Marvin E. Shaw has defined groups as ?two or more persons who are
interacting with one another in a such a manner that each person
influences and influenced by each other?
? Clouis R. Shepherd defines groups as ?A group may be defined as the
aggregation of small number of persons who work for common goals,
develop a shared attitudes and are aware that they are part of a
group and perceive themselves as such?.
Characteristics of Groups :
? 1. Two or more persons: To form a group there should be atleast two persons,
because a single individual cannot interact. Though no maximum limits have been set,
the size of the group should be such so as to allow meaningful interaction among the
members of group.
? 2. Collective identity: Each member of the group must believe that he is member of
the group and also be aware of his participation in the group activity. For instance a
group of boys are room-mates staying together in the hostel. Though they may not be
studying in the same class but because of their identity of room-mates they would prefer
to go out together for shopping.
? 3. Interaction: Members of the group will interact with each other. Though it is not
necessary for all members of the group to interact simultaneously but each member
must atleast occasionally interact with the members of the group.
? 4. Shared goal interest: Members of the group should concur to the attainment of
objectives each one must atleast share one of the groups concerns
The changing structure of family
? Basic functions provided by the family are particularly relevant to a
discussion of consumer behavior.
? These include:
? ? Economic well being
? ? Emotional support
? ? Suitable family lifestyles
Emotional well-being
? Although families in the affluent nations of North America, Europe
and Asia are no longer formed primarily for economic security,
providing financial means to its dependents unquestionably a basic
family function. How the family divides its responsibilities for
providing economic well-being has changed considerably during past
30 years. No longer are traditional husband as economic provider and
wife as home maker and child-rearer still valid.
? Emotional support
? The provision of emotional nourishment (including love, affection,
and intimacy) to its members is an important core function of the
contemporary family. In fulfilling this function, the family provides
support and encouragement and assists its members in coping with
decision making and with personal or social problems. To make it
easier for working parents to show their love, affection, and support
to their children, greeting card companies have been increasingly
creating cards for parents to give to their children (vice versa)
? Suitable family lifestyle
? Another important family function in terms of consumer behavior is
the establishment of a suitable lifestyle for the family. Upbringing,
experience, and the personal and jointly held goals of the spouses
determine the importance placed on education or career, on reading,
on television viewing, on the learning of computer skills, on the
frequency quality of dining out, and on the selection of other
entertainment and recreational activities.
? Family lifestyle commitments, including the allocation of time, are
generally influencing consumption patterns.
Family decision making and consumption-
related roles
? When two or more family members are directly or indirectly involved
in the decision making process, it is called family decision making.
Such family decisions differs from individuals decisions in many ways.
For example, if we consider the purchase of a bicycle for a child, some
of the relevant aspects to think about can be: who recognizes the
need for bicycle? How a brand is selected? What role the concerned
child plays?
? Joint decisions are more likely to operate in the early stages of
family life cycle when both spouses are relatively less experienced.
After gaining experience, they usually delegate responsibilities
concerning buying decisions to each other.
Key family consumption roles
? For?a?family?to?function?as?a?cohesive?unit,?tasks?such?as?doing?the?laundry,?
preparing?meals,?setting?the?dinner?table,?taking?out?the?garbage,?and?
walking?the?dog?must?be?carried?out?by?one?or?more?family?members.?In?a?
dynamic?society,?family?related?duties?are?constantly?changing?however,?
we?can?identify?either?distinct?roles?in?the?family?decision?making?process.
? ?For?example,?a?family?member?may?be?walking?down?the?cookie?aisle?at?a?
local?supermarket?when?she?picks?out?an?interesting?new?fat-free?cookie.?
Her?selection?does?not?directly?involve?the?influence?of?other?family?
members.?She?is?the?decider,?the?buyer?and,?in?a?sense,?the?gatekeeper,?
however,?she?may?not?be?the?sole?consumer.?Products?may?be?consumed?
by?a?single?family?member,?consumed?or?used?directly?by?two?or?more?
family?members,?or?consumed?indirectly?by?the?entire?family.
Dynamics of husband-wife decision making
? Marketers?are?interested?in?the?relative?amount?of?influence?that?a?
husband?and?a?wife?have?when?it?comes?to?family?consumption?
choices.?The?relative?influence?of?husbands?and?wives?can?be?
classified?as:?husband?dominated,?wife?dominated,?joint,?and?
autonomic.
? ?The?relative?influence?of?a?husband?and?wife?on?a?particular?
consumer?decisions?depends?in?part?on?the?product?and?service?
category.?For?instance,?during?1950s,?the?purchase?of?a?new?
automobile?was?strongly?husband?dominated,?whereas?food?and?
financial?banking?decisions?more?often?were?wife?dominated.?Fifty?
years?later,?the?purchase?of?the?family?s?principal?automobile?is?still?
often?husbands?dominated?in?many?households.?
? Husband wife decision making also appears to be related to cultural
influence. Research comparing husband wife decision making
patterns in the people?s republic of china and in the United States
revels that among Chinese there were substantially fewer ?joint?
decisions and more ?husband dominated? decisions for many
household purchases.
? However, when limiting the comparison to urban and rural Chinese
households, the research showed that in a large city such as Beijing,
married couples were more likely than rural couples to share equally
in purchase decisions. Still further, because of china?s ?one child?
policy and the ensuring custom of treating a single child as a ?little
emperor?, many of the parents purchase decisions are influenced by
the input of their child.
? In another recent cross-culture study, husband-wife decision making
was studied among three groups: Asian Indians living in India, Asian
Indians living in the United States, and American nationals. Results
show a decrease in husband decisions and an increase in wife
dominated decisions, going from Asian Indians in India, to Asian
Indians in the United States, to American nationals. This pattern
seems to indicate the impact of assimilation on decision making.
The expanding role of children in the family
decision making
? Over the past several decades, there has been a trend toward
children playing a more active role in what the family buys, as well as
in the family decision making process.
? This shift in influence has occurred as a result of families having fewer
children, more dual income couples who can afford to permit their
children to make greater number of the choices.
? Also the single parent households often push their children toward
household participation and self reliance.
? For example kids in supermarkets with a parent make an average of
15 requests, of which about half are typically granted.
? The table shows some of the tactics employed by children to
influence their parents.
Tactics used by children to influence their parents
? Pressure tactics
The child makes demand uses threats, or intimidation to persuade you to
comply with his /her request
? Upward appeal
The child seeks to influence you, saying that the request was approved or
supported by an older member of the family, a teacher, or a family friend
? Exchange tactics
The child makes an explicit or implicit promise to give you some sort of
service such as washing the car in return for the favour
? Coalition tactics
The child seeks the aid of others to persuade you to comply with his /her
request or uses the support of others as an argument for you to agree with
him/her
? Ingratiating tactics
The child seeks to get you in a good mood or think favourably of him or
her before asking you to comply with a request.
? Rational persuasion
The child uses logical arguments and factual evidence to persuade you
to agree with his/her request
? Inspirational appeals
The child makes an emotional appeal or proposal that arouses
enthusiasm by appealing to your values and ideas
? Consultation tactics
The child seeks your involvement in making a decision
Family life cycle stages
? The concept of household or family life cycle is important for marketers in
segmenting the market. In 1966, William wells and George Gubar proposed eight
stages to describe the family life cycle.
? The following life cycle stages are typical of families:
1. The bachelor stage: young, single person under age of 35 years. Incomes
are generally low since they have started careers, but they may have few financial
burdens and sufficient discretionary income.
2. Newly married: young couples, no children. If both are employed, they will
have high level of discretionary income.
Family life cycle stages
3. Full nest 1: young married couples with youngest child under 6 years of age.
There would be greater squeezes on income because of increased on childcare.
However, if they are members of a joint family, the level of flexible income is
likely to be high.
4. Full nest 2: young married couples with children from 6 years to 12 years of
age. Better financial position because income of both parents rising. Children
spend more hours outside their parents influence.
5. Full nest 3: older married couples with dependent teenage children living at
home. Financial position of family continues to improve. There are increasing costs
of college education for children.
Family life cycle stages
6. Empty nest 4: older married couples with no children living with
them, parents still employed. Reduced expenses result in greater
savings and highest discretionary income.
7. Empty nest 5: older married couples with no children living with
them and parents retired. Drop in income and couple relies on savings
and fixed income from retirement benefits.
8. Solitary survivor 6: older single persons with low income and
increasing medical needs.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
Here's the comparison of India, China, and United
States on the basis of Hofstede's cultural
dimensions.
? Developing right competencies
? Once we understand the various facets of a national culture, then we
need to develop the right competencies to equip a business leader
with the right frame of mind, attitude, and skills to feel comfortable
and business-ready in the host culture.
Groups
? Groups exist in every formal and informal type of organisations. Such
groups are created by the members for its satisfaction. Very often
groups get formed automatically because of the operation of various
socio psychological factors. Such groups affect the behaviour of its
members.
Meaning of Group:
? Marvin E. Shaw has defined groups as ?two or more persons who are
interacting with one another in a such a manner that each person
influences and influenced by each other?
? Clouis R. Shepherd defines groups as ?A group may be defined as the
aggregation of small number of persons who work for common goals,
develop a shared attitudes and are aware that they are part of a
group and perceive themselves as such?.
Characteristics of Groups :
? 1. Two or more persons: To form a group there should be atleast two persons,
because a single individual cannot interact. Though no maximum limits have been set,
the size of the group should be such so as to allow meaningful interaction among the
members of group.
? 2. Collective identity: Each member of the group must believe that he is member of
the group and also be aware of his participation in the group activity. For instance a
group of boys are room-mates staying together in the hostel. Though they may not be
studying in the same class but because of their identity of room-mates they would prefer
to go out together for shopping.
? 3. Interaction: Members of the group will interact with each other. Though it is not
necessary for all members of the group to interact simultaneously but each member
must atleast occasionally interact with the members of the group.
? 4. Shared goal interest: Members of the group should concur to the attainment of
objectives each one must atleast share one of the groups concerns
The changing structure of family
? Basic functions provided by the family are particularly relevant to a
discussion of consumer behavior.
? These include:
? ? Economic well being
? ? Emotional support
? ? Suitable family lifestyles
Emotional well-being
? Although families in the affluent nations of North America, Europe
and Asia are no longer formed primarily for economic security,
providing financial means to its dependents unquestionably a basic
family function. How the family divides its responsibilities for
providing economic well-being has changed considerably during past
30 years. No longer are traditional husband as economic provider and
wife as home maker and child-rearer still valid.
? Emotional support
? The provision of emotional nourishment (including love, affection,
and intimacy) to its members is an important core function of the
contemporary family. In fulfilling this function, the family provides
support and encouragement and assists its members in coping with
decision making and with personal or social problems. To make it
easier for working parents to show their love, affection, and support
to their children, greeting card companies have been increasingly
creating cards for parents to give to their children (vice versa)
? Suitable family lifestyle
? Another important family function in terms of consumer behavior is
the establishment of a suitable lifestyle for the family. Upbringing,
experience, and the personal and jointly held goals of the spouses
determine the importance placed on education or career, on reading,
on television viewing, on the learning of computer skills, on the
frequency quality of dining out, and on the selection of other
entertainment and recreational activities.
? Family lifestyle commitments, including the allocation of time, are
generally influencing consumption patterns.
Family decision making and consumption-
related roles
? When two or more family members are directly or indirectly involved
in the decision making process, it is called family decision making.
Such family decisions differs from individuals decisions in many ways.
For example, if we consider the purchase of a bicycle for a child, some
of the relevant aspects to think about can be: who recognizes the
need for bicycle? How a brand is selected? What role the concerned
child plays?
? Joint decisions are more likely to operate in the early stages of
family life cycle when both spouses are relatively less experienced.
After gaining experience, they usually delegate responsibilities
concerning buying decisions to each other.
Key family consumption roles
? For?a?family?to?function?as?a?cohesive?unit,?tasks?such?as?doing?the?laundry,?
preparing?meals,?setting?the?dinner?table,?taking?out?the?garbage,?and?
walking?the?dog?must?be?carried?out?by?one?or?more?family?members.?In?a?
dynamic?society,?family?related?duties?are?constantly?changing?however,?
we?can?identify?either?distinct?roles?in?the?family?decision?making?process.
? ?For?example,?a?family?member?may?be?walking?down?the?cookie?aisle?at?a?
local?supermarket?when?she?picks?out?an?interesting?new?fat-free?cookie.?
Her?selection?does?not?directly?involve?the?influence?of?other?family?
members.?She?is?the?decider,?the?buyer?and,?in?a?sense,?the?gatekeeper,?
however,?she?may?not?be?the?sole?consumer.?Products?may?be?consumed?
by?a?single?family?member,?consumed?or?used?directly?by?two?or?more?
family?members,?or?consumed?indirectly?by?the?entire?family.
Dynamics of husband-wife decision making
? Marketers?are?interested?in?the?relative?amount?of?influence?that?a?
husband?and?a?wife?have?when?it?comes?to?family?consumption?
choices.?The?relative?influence?of?husbands?and?wives?can?be?
classified?as:?husband?dominated,?wife?dominated,?joint,?and?
autonomic.
? ?The?relative?influence?of?a?husband?and?wife?on?a?particular?
consumer?decisions?depends?in?part?on?the?product?and?service?
category.?For?instance,?during?1950s,?the?purchase?of?a?new?
automobile?was?strongly?husband?dominated,?whereas?food?and?
financial?banking?decisions?more?often?were?wife?dominated.?Fifty?
years?later,?the?purchase?of?the?family?s?principal?automobile?is?still?
often?husbands?dominated?in?many?households.?
? Husband wife decision making also appears to be related to cultural
influence. Research comparing husband wife decision making
patterns in the people?s republic of china and in the United States
revels that among Chinese there were substantially fewer ?joint?
decisions and more ?husband dominated? decisions for many
household purchases.
? However, when limiting the comparison to urban and rural Chinese
households, the research showed that in a large city such as Beijing,
married couples were more likely than rural couples to share equally
in purchase decisions. Still further, because of china?s ?one child?
policy and the ensuring custom of treating a single child as a ?little
emperor?, many of the parents purchase decisions are influenced by
the input of their child.
? In another recent cross-culture study, husband-wife decision making
was studied among three groups: Asian Indians living in India, Asian
Indians living in the United States, and American nationals. Results
show a decrease in husband decisions and an increase in wife
dominated decisions, going from Asian Indians in India, to Asian
Indians in the United States, to American nationals. This pattern
seems to indicate the impact of assimilation on decision making.
The expanding role of children in the family
decision making
? Over the past several decades, there has been a trend toward
children playing a more active role in what the family buys, as well as
in the family decision making process.
? This shift in influence has occurred as a result of families having fewer
children, more dual income couples who can afford to permit their
children to make greater number of the choices.
? Also the single parent households often push their children toward
household participation and self reliance.
? For example kids in supermarkets with a parent make an average of
15 requests, of which about half are typically granted.
? The table shows some of the tactics employed by children to
influence their parents.
Tactics used by children to influence their parents
? Pressure tactics
The child makes demand uses threats, or intimidation to persuade you to
comply with his /her request
? Upward appeal
The child seeks to influence you, saying that the request was approved or
supported by an older member of the family, a teacher, or a family friend
? Exchange tactics
The child makes an explicit or implicit promise to give you some sort of
service such as washing the car in return for the favour
? Coalition tactics
The child seeks the aid of others to persuade you to comply with his /her
request or uses the support of others as an argument for you to agree with
him/her
? Ingratiating tactics
The child seeks to get you in a good mood or think favourably of him or
her before asking you to comply with a request.
? Rational persuasion
The child uses logical arguments and factual evidence to persuade you
to agree with his/her request
? Inspirational appeals
The child makes an emotional appeal or proposal that arouses
enthusiasm by appealing to your values and ideas
? Consultation tactics
The child seeks your involvement in making a decision
Family life cycle stages
? The concept of household or family life cycle is important for marketers in
segmenting the market. In 1966, William wells and George Gubar proposed eight
stages to describe the family life cycle.
? The following life cycle stages are typical of families:
1. The bachelor stage: young, single person under age of 35 years. Incomes
are generally low since they have started careers, but they may have few financial
burdens and sufficient discretionary income.
2. Newly married: young couples, no children. If both are employed, they will
have high level of discretionary income.
Family life cycle stages
3. Full nest 1: young married couples with youngest child under 6 years of age.
There would be greater squeezes on income because of increased on childcare.
However, if they are members of a joint family, the level of flexible income is
likely to be high.
4. Full nest 2: young married couples with children from 6 years to 12 years of
age. Better financial position because income of both parents rising. Children
spend more hours outside their parents influence.
5. Full nest 3: older married couples with dependent teenage children living at
home. Financial position of family continues to improve. There are increasing costs
of college education for children.
Family life cycle stages
6. Empty nest 4: older married couples with no children living with
them, parents still employed. Reduced expenses result in greater
savings and highest discretionary income.
7. Empty nest 5: older married couples with no children living with
them and parents retired. Drop in income and couple relies on savings
and fixed income from retirement benefits.
8. Solitary survivor 6: older single persons with low income and
increasing medical needs.
Family and Marketing Strategy
? Use the FLC for segmentation and positioning
? Recognize the diverse consumption roles within the
family
? Understand and use the dynamics of husband-wife
decision making
? Understand and use the consumer socialization role
played by the family
? Recognize the changing nature of Canadian families.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
Here's the comparison of India, China, and United
States on the basis of Hofstede's cultural
dimensions.
? Developing right competencies
? Once we understand the various facets of a national culture, then we
need to develop the right competencies to equip a business leader
with the right frame of mind, attitude, and skills to feel comfortable
and business-ready in the host culture.
Groups
? Groups exist in every formal and informal type of organisations. Such
groups are created by the members for its satisfaction. Very often
groups get formed automatically because of the operation of various
socio psychological factors. Such groups affect the behaviour of its
members.
Meaning of Group:
? Marvin E. Shaw has defined groups as ?two or more persons who are
interacting with one another in a such a manner that each person
influences and influenced by each other?
? Clouis R. Shepherd defines groups as ?A group may be defined as the
aggregation of small number of persons who work for common goals,
develop a shared attitudes and are aware that they are part of a
group and perceive themselves as such?.
Characteristics of Groups :
? 1. Two or more persons: To form a group there should be atleast two persons,
because a single individual cannot interact. Though no maximum limits have been set,
the size of the group should be such so as to allow meaningful interaction among the
members of group.
? 2. Collective identity: Each member of the group must believe that he is member of
the group and also be aware of his participation in the group activity. For instance a
group of boys are room-mates staying together in the hostel. Though they may not be
studying in the same class but because of their identity of room-mates they would prefer
to go out together for shopping.
? 3. Interaction: Members of the group will interact with each other. Though it is not
necessary for all members of the group to interact simultaneously but each member
must atleast occasionally interact with the members of the group.
? 4. Shared goal interest: Members of the group should concur to the attainment of
objectives each one must atleast share one of the groups concerns
The changing structure of family
? Basic functions provided by the family are particularly relevant to a
discussion of consumer behavior.
? These include:
? ? Economic well being
? ? Emotional support
? ? Suitable family lifestyles
Emotional well-being
? Although families in the affluent nations of North America, Europe
and Asia are no longer formed primarily for economic security,
providing financial means to its dependents unquestionably a basic
family function. How the family divides its responsibilities for
providing economic well-being has changed considerably during past
30 years. No longer are traditional husband as economic provider and
wife as home maker and child-rearer still valid.
? Emotional support
? The provision of emotional nourishment (including love, affection,
and intimacy) to its members is an important core function of the
contemporary family. In fulfilling this function, the family provides
support and encouragement and assists its members in coping with
decision making and with personal or social problems. To make it
easier for working parents to show their love, affection, and support
to their children, greeting card companies have been increasingly
creating cards for parents to give to their children (vice versa)
? Suitable family lifestyle
? Another important family function in terms of consumer behavior is
the establishment of a suitable lifestyle for the family. Upbringing,
experience, and the personal and jointly held goals of the spouses
determine the importance placed on education or career, on reading,
on television viewing, on the learning of computer skills, on the
frequency quality of dining out, and on the selection of other
entertainment and recreational activities.
? Family lifestyle commitments, including the allocation of time, are
generally influencing consumption patterns.
Family decision making and consumption-
related roles
? When two or more family members are directly or indirectly involved
in the decision making process, it is called family decision making.
Such family decisions differs from individuals decisions in many ways.
For example, if we consider the purchase of a bicycle for a child, some
of the relevant aspects to think about can be: who recognizes the
need for bicycle? How a brand is selected? What role the concerned
child plays?
? Joint decisions are more likely to operate in the early stages of
family life cycle when both spouses are relatively less experienced.
After gaining experience, they usually delegate responsibilities
concerning buying decisions to each other.
Key family consumption roles
? For?a?family?to?function?as?a?cohesive?unit,?tasks?such?as?doing?the?laundry,?
preparing?meals,?setting?the?dinner?table,?taking?out?the?garbage,?and?
walking?the?dog?must?be?carried?out?by?one?or?more?family?members.?In?a?
dynamic?society,?family?related?duties?are?constantly?changing?however,?
we?can?identify?either?distinct?roles?in?the?family?decision?making?process.
? ?For?example,?a?family?member?may?be?walking?down?the?cookie?aisle?at?a?
local?supermarket?when?she?picks?out?an?interesting?new?fat-free?cookie.?
Her?selection?does?not?directly?involve?the?influence?of?other?family?
members.?She?is?the?decider,?the?buyer?and,?in?a?sense,?the?gatekeeper,?
however,?she?may?not?be?the?sole?consumer.?Products?may?be?consumed?
by?a?single?family?member,?consumed?or?used?directly?by?two?or?more?
family?members,?or?consumed?indirectly?by?the?entire?family.
Dynamics of husband-wife decision making
? Marketers?are?interested?in?the?relative?amount?of?influence?that?a?
husband?and?a?wife?have?when?it?comes?to?family?consumption?
choices.?The?relative?influence?of?husbands?and?wives?can?be?
classified?as:?husband?dominated,?wife?dominated,?joint,?and?
autonomic.
? ?The?relative?influence?of?a?husband?and?wife?on?a?particular?
consumer?decisions?depends?in?part?on?the?product?and?service?
category.?For?instance,?during?1950s,?the?purchase?of?a?new?
automobile?was?strongly?husband?dominated,?whereas?food?and?
financial?banking?decisions?more?often?were?wife?dominated.?Fifty?
years?later,?the?purchase?of?the?family?s?principal?automobile?is?still?
often?husbands?dominated?in?many?households.?
? Husband wife decision making also appears to be related to cultural
influence. Research comparing husband wife decision making
patterns in the people?s republic of china and in the United States
revels that among Chinese there were substantially fewer ?joint?
decisions and more ?husband dominated? decisions for many
household purchases.
? However, when limiting the comparison to urban and rural Chinese
households, the research showed that in a large city such as Beijing,
married couples were more likely than rural couples to share equally
in purchase decisions. Still further, because of china?s ?one child?
policy and the ensuring custom of treating a single child as a ?little
emperor?, many of the parents purchase decisions are influenced by
the input of their child.
? In another recent cross-culture study, husband-wife decision making
was studied among three groups: Asian Indians living in India, Asian
Indians living in the United States, and American nationals. Results
show a decrease in husband decisions and an increase in wife
dominated decisions, going from Asian Indians in India, to Asian
Indians in the United States, to American nationals. This pattern
seems to indicate the impact of assimilation on decision making.
The expanding role of children in the family
decision making
? Over the past several decades, there has been a trend toward
children playing a more active role in what the family buys, as well as
in the family decision making process.
? This shift in influence has occurred as a result of families having fewer
children, more dual income couples who can afford to permit their
children to make greater number of the choices.
? Also the single parent households often push their children toward
household participation and self reliance.
? For example kids in supermarkets with a parent make an average of
15 requests, of which about half are typically granted.
? The table shows some of the tactics employed by children to
influence their parents.
Tactics used by children to influence their parents
? Pressure tactics
The child makes demand uses threats, or intimidation to persuade you to
comply with his /her request
? Upward appeal
The child seeks to influence you, saying that the request was approved or
supported by an older member of the family, a teacher, or a family friend
? Exchange tactics
The child makes an explicit or implicit promise to give you some sort of
service such as washing the car in return for the favour
? Coalition tactics
The child seeks the aid of others to persuade you to comply with his /her
request or uses the support of others as an argument for you to agree with
him/her
? Ingratiating tactics
The child seeks to get you in a good mood or think favourably of him or
her before asking you to comply with a request.
? Rational persuasion
The child uses logical arguments and factual evidence to persuade you
to agree with his/her request
? Inspirational appeals
The child makes an emotional appeal or proposal that arouses
enthusiasm by appealing to your values and ideas
? Consultation tactics
The child seeks your involvement in making a decision
Family life cycle stages
? The concept of household or family life cycle is important for marketers in
segmenting the market. In 1966, William wells and George Gubar proposed eight
stages to describe the family life cycle.
? The following life cycle stages are typical of families:
1. The bachelor stage: young, single person under age of 35 years. Incomes
are generally low since they have started careers, but they may have few financial
burdens and sufficient discretionary income.
2. Newly married: young couples, no children. If both are employed, they will
have high level of discretionary income.
Family life cycle stages
3. Full nest 1: young married couples with youngest child under 6 years of age.
There would be greater squeezes on income because of increased on childcare.
However, if they are members of a joint family, the level of flexible income is
likely to be high.
4. Full nest 2: young married couples with children from 6 years to 12 years of
age. Better financial position because income of both parents rising. Children
spend more hours outside their parents influence.
5. Full nest 3: older married couples with dependent teenage children living at
home. Financial position of family continues to improve. There are increasing costs
of college education for children.
Family life cycle stages
6. Empty nest 4: older married couples with no children living with
them, parents still employed. Reduced expenses result in greater
savings and highest discretionary income.
7. Empty nest 5: older married couples with no children living with
them and parents retired. Drop in income and couple relies on savings
and fixed income from retirement benefits.
8. Solitary survivor 6: older single persons with low income and
increasing medical needs.
Family and Marketing Strategy
? Use the FLC for segmentation and positioning
? Recognize the diverse consumption roles within the
family
? Understand and use the dynamics of husband-wife
decision making
? Understand and use the consumer socialization role
played by the family
? Recognize the changing nature of Canadian families.
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
Here's the comparison of India, China, and United
States on the basis of Hofstede's cultural
dimensions.
? Developing right competencies
? Once we understand the various facets of a national culture, then we
need to develop the right competencies to equip a business leader
with the right frame of mind, attitude, and skills to feel comfortable
and business-ready in the host culture.
Groups
? Groups exist in every formal and informal type of organisations. Such
groups are created by the members for its satisfaction. Very often
groups get formed automatically because of the operation of various
socio psychological factors. Such groups affect the behaviour of its
members.
Meaning of Group:
? Marvin E. Shaw has defined groups as ?two or more persons who are
interacting with one another in a such a manner that each person
influences and influenced by each other?
? Clouis R. Shepherd defines groups as ?A group may be defined as the
aggregation of small number of persons who work for common goals,
develop a shared attitudes and are aware that they are part of a
group and perceive themselves as such?.
Characteristics of Groups :
? 1. Two or more persons: To form a group there should be atleast two persons,
because a single individual cannot interact. Though no maximum limits have been set,
the size of the group should be such so as to allow meaningful interaction among the
members of group.
? 2. Collective identity: Each member of the group must believe that he is member of
the group and also be aware of his participation in the group activity. For instance a
group of boys are room-mates staying together in the hostel. Though they may not be
studying in the same class but because of their identity of room-mates they would prefer
to go out together for shopping.
? 3. Interaction: Members of the group will interact with each other. Though it is not
necessary for all members of the group to interact simultaneously but each member
must atleast occasionally interact with the members of the group.
? 4. Shared goal interest: Members of the group should concur to the attainment of
objectives each one must atleast share one of the groups concerns
The changing structure of family
? Basic functions provided by the family are particularly relevant to a
discussion of consumer behavior.
? These include:
? ? Economic well being
? ? Emotional support
? ? Suitable family lifestyles
Emotional well-being
? Although families in the affluent nations of North America, Europe
and Asia are no longer formed primarily for economic security,
providing financial means to its dependents unquestionably a basic
family function. How the family divides its responsibilities for
providing economic well-being has changed considerably during past
30 years. No longer are traditional husband as economic provider and
wife as home maker and child-rearer still valid.
? Emotional support
? The provision of emotional nourishment (including love, affection,
and intimacy) to its members is an important core function of the
contemporary family. In fulfilling this function, the family provides
support and encouragement and assists its members in coping with
decision making and with personal or social problems. To make it
easier for working parents to show their love, affection, and support
to their children, greeting card companies have been increasingly
creating cards for parents to give to their children (vice versa)
? Suitable family lifestyle
? Another important family function in terms of consumer behavior is
the establishment of a suitable lifestyle for the family. Upbringing,
experience, and the personal and jointly held goals of the spouses
determine the importance placed on education or career, on reading,
on television viewing, on the learning of computer skills, on the
frequency quality of dining out, and on the selection of other
entertainment and recreational activities.
? Family lifestyle commitments, including the allocation of time, are
generally influencing consumption patterns.
Family decision making and consumption-
related roles
? When two or more family members are directly or indirectly involved
in the decision making process, it is called family decision making.
Such family decisions differs from individuals decisions in many ways.
For example, if we consider the purchase of a bicycle for a child, some
of the relevant aspects to think about can be: who recognizes the
need for bicycle? How a brand is selected? What role the concerned
child plays?
? Joint decisions are more likely to operate in the early stages of
family life cycle when both spouses are relatively less experienced.
After gaining experience, they usually delegate responsibilities
concerning buying decisions to each other.
Key family consumption roles
? For?a?family?to?function?as?a?cohesive?unit,?tasks?such?as?doing?the?laundry,?
preparing?meals,?setting?the?dinner?table,?taking?out?the?garbage,?and?
walking?the?dog?must?be?carried?out?by?one?or?more?family?members.?In?a?
dynamic?society,?family?related?duties?are?constantly?changing?however,?
we?can?identify?either?distinct?roles?in?the?family?decision?making?process.
? ?For?example,?a?family?member?may?be?walking?down?the?cookie?aisle?at?a?
local?supermarket?when?she?picks?out?an?interesting?new?fat-free?cookie.?
Her?selection?does?not?directly?involve?the?influence?of?other?family?
members.?She?is?the?decider,?the?buyer?and,?in?a?sense,?the?gatekeeper,?
however,?she?may?not?be?the?sole?consumer.?Products?may?be?consumed?
by?a?single?family?member,?consumed?or?used?directly?by?two?or?more?
family?members,?or?consumed?indirectly?by?the?entire?family.
Dynamics of husband-wife decision making
? Marketers?are?interested?in?the?relative?amount?of?influence?that?a?
husband?and?a?wife?have?when?it?comes?to?family?consumption?
choices.?The?relative?influence?of?husbands?and?wives?can?be?
classified?as:?husband?dominated,?wife?dominated,?joint,?and?
autonomic.
? ?The?relative?influence?of?a?husband?and?wife?on?a?particular?
consumer?decisions?depends?in?part?on?the?product?and?service?
category.?For?instance,?during?1950s,?the?purchase?of?a?new?
automobile?was?strongly?husband?dominated,?whereas?food?and?
financial?banking?decisions?more?often?were?wife?dominated.?Fifty?
years?later,?the?purchase?of?the?family?s?principal?automobile?is?still?
often?husbands?dominated?in?many?households.?
? Husband wife decision making also appears to be related to cultural
influence. Research comparing husband wife decision making
patterns in the people?s republic of china and in the United States
revels that among Chinese there were substantially fewer ?joint?
decisions and more ?husband dominated? decisions for many
household purchases.
? However, when limiting the comparison to urban and rural Chinese
households, the research showed that in a large city such as Beijing,
married couples were more likely than rural couples to share equally
in purchase decisions. Still further, because of china?s ?one child?
policy and the ensuring custom of treating a single child as a ?little
emperor?, many of the parents purchase decisions are influenced by
the input of their child.
? In another recent cross-culture study, husband-wife decision making
was studied among three groups: Asian Indians living in India, Asian
Indians living in the United States, and American nationals. Results
show a decrease in husband decisions and an increase in wife
dominated decisions, going from Asian Indians in India, to Asian
Indians in the United States, to American nationals. This pattern
seems to indicate the impact of assimilation on decision making.
The expanding role of children in the family
decision making
? Over the past several decades, there has been a trend toward
children playing a more active role in what the family buys, as well as
in the family decision making process.
? This shift in influence has occurred as a result of families having fewer
children, more dual income couples who can afford to permit their
children to make greater number of the choices.
? Also the single parent households often push their children toward
household participation and self reliance.
? For example kids in supermarkets with a parent make an average of
15 requests, of which about half are typically granted.
? The table shows some of the tactics employed by children to
influence their parents.
Tactics used by children to influence their parents
? Pressure tactics
The child makes demand uses threats, or intimidation to persuade you to
comply with his /her request
? Upward appeal
The child seeks to influence you, saying that the request was approved or
supported by an older member of the family, a teacher, or a family friend
? Exchange tactics
The child makes an explicit or implicit promise to give you some sort of
service such as washing the car in return for the favour
? Coalition tactics
The child seeks the aid of others to persuade you to comply with his /her
request or uses the support of others as an argument for you to agree with
him/her
? Ingratiating tactics
The child seeks to get you in a good mood or think favourably of him or
her before asking you to comply with a request.
? Rational persuasion
The child uses logical arguments and factual evidence to persuade you
to agree with his/her request
? Inspirational appeals
The child makes an emotional appeal or proposal that arouses
enthusiasm by appealing to your values and ideas
? Consultation tactics
The child seeks your involvement in making a decision
Family life cycle stages
? The concept of household or family life cycle is important for marketers in
segmenting the market. In 1966, William wells and George Gubar proposed eight
stages to describe the family life cycle.
? The following life cycle stages are typical of families:
1. The bachelor stage: young, single person under age of 35 years. Incomes
are generally low since they have started careers, but they may have few financial
burdens and sufficient discretionary income.
2. Newly married: young couples, no children. If both are employed, they will
have high level of discretionary income.
Family life cycle stages
3. Full nest 1: young married couples with youngest child under 6 years of age.
There would be greater squeezes on income because of increased on childcare.
However, if they are members of a joint family, the level of flexible income is
likely to be high.
4. Full nest 2: young married couples with children from 6 years to 12 years of
age. Better financial position because income of both parents rising. Children
spend more hours outside their parents influence.
5. Full nest 3: older married couples with dependent teenage children living at
home. Financial position of family continues to improve. There are increasing costs
of college education for children.
Family life cycle stages
6. Empty nest 4: older married couples with no children living with
them, parents still employed. Reduced expenses result in greater
savings and highest discretionary income.
7. Empty nest 5: older married couples with no children living with
them and parents retired. Drop in income and couple relies on savings
and fixed income from retirement benefits.
8. Solitary survivor 6: older single persons with low income and
increasing medical needs.
Family and Marketing Strategy
? Use the FLC for segmentation and positioning
? Recognize the diverse consumption roles within the
family
? Understand and use the dynamics of husband-wife
decision making
? Understand and use the consumer socialization role
played by the family
? Recognize the changing nature of Canadian families.
The Power of Reference Groups
Social
Power
Referent
Power
Legitimate
Power
Information
Power
Expert
Power
Coercive
Power
Reward
Power
Types of
Reference
Group Power
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
Here's the comparison of India, China, and United
States on the basis of Hofstede's cultural
dimensions.
? Developing right competencies
? Once we understand the various facets of a national culture, then we
need to develop the right competencies to equip a business leader
with the right frame of mind, attitude, and skills to feel comfortable
and business-ready in the host culture.
Groups
? Groups exist in every formal and informal type of organisations. Such
groups are created by the members for its satisfaction. Very often
groups get formed automatically because of the operation of various
socio psychological factors. Such groups affect the behaviour of its
members.
Meaning of Group:
? Marvin E. Shaw has defined groups as ?two or more persons who are
interacting with one another in a such a manner that each person
influences and influenced by each other?
? Clouis R. Shepherd defines groups as ?A group may be defined as the
aggregation of small number of persons who work for common goals,
develop a shared attitudes and are aware that they are part of a
group and perceive themselves as such?.
Characteristics of Groups :
? 1. Two or more persons: To form a group there should be atleast two persons,
because a single individual cannot interact. Though no maximum limits have been set,
the size of the group should be such so as to allow meaningful interaction among the
members of group.
? 2. Collective identity: Each member of the group must believe that he is member of
the group and also be aware of his participation in the group activity. For instance a
group of boys are room-mates staying together in the hostel. Though they may not be
studying in the same class but because of their identity of room-mates they would prefer
to go out together for shopping.
? 3. Interaction: Members of the group will interact with each other. Though it is not
necessary for all members of the group to interact simultaneously but each member
must atleast occasionally interact with the members of the group.
? 4. Shared goal interest: Members of the group should concur to the attainment of
objectives each one must atleast share one of the groups concerns
The changing structure of family
? Basic functions provided by the family are particularly relevant to a
discussion of consumer behavior.
? These include:
? ? Economic well being
? ? Emotional support
? ? Suitable family lifestyles
Emotional well-being
? Although families in the affluent nations of North America, Europe
and Asia are no longer formed primarily for economic security,
providing financial means to its dependents unquestionably a basic
family function. How the family divides its responsibilities for
providing economic well-being has changed considerably during past
30 years. No longer are traditional husband as economic provider and
wife as home maker and child-rearer still valid.
? Emotional support
? The provision of emotional nourishment (including love, affection,
and intimacy) to its members is an important core function of the
contemporary family. In fulfilling this function, the family provides
support and encouragement and assists its members in coping with
decision making and with personal or social problems. To make it
easier for working parents to show their love, affection, and support
to their children, greeting card companies have been increasingly
creating cards for parents to give to their children (vice versa)
? Suitable family lifestyle
? Another important family function in terms of consumer behavior is
the establishment of a suitable lifestyle for the family. Upbringing,
experience, and the personal and jointly held goals of the spouses
determine the importance placed on education or career, on reading,
on television viewing, on the learning of computer skills, on the
frequency quality of dining out, and on the selection of other
entertainment and recreational activities.
? Family lifestyle commitments, including the allocation of time, are
generally influencing consumption patterns.
Family decision making and consumption-
related roles
? When two or more family members are directly or indirectly involved
in the decision making process, it is called family decision making.
Such family decisions differs from individuals decisions in many ways.
For example, if we consider the purchase of a bicycle for a child, some
of the relevant aspects to think about can be: who recognizes the
need for bicycle? How a brand is selected? What role the concerned
child plays?
? Joint decisions are more likely to operate in the early stages of
family life cycle when both spouses are relatively less experienced.
After gaining experience, they usually delegate responsibilities
concerning buying decisions to each other.
Key family consumption roles
? For?a?family?to?function?as?a?cohesive?unit,?tasks?such?as?doing?the?laundry,?
preparing?meals,?setting?the?dinner?table,?taking?out?the?garbage,?and?
walking?the?dog?must?be?carried?out?by?one?or?more?family?members.?In?a?
dynamic?society,?family?related?duties?are?constantly?changing?however,?
we?can?identify?either?distinct?roles?in?the?family?decision?making?process.
? ?For?example,?a?family?member?may?be?walking?down?the?cookie?aisle?at?a?
local?supermarket?when?she?picks?out?an?interesting?new?fat-free?cookie.?
Her?selection?does?not?directly?involve?the?influence?of?other?family?
members.?She?is?the?decider,?the?buyer?and,?in?a?sense,?the?gatekeeper,?
however,?she?may?not?be?the?sole?consumer.?Products?may?be?consumed?
by?a?single?family?member,?consumed?or?used?directly?by?two?or?more?
family?members,?or?consumed?indirectly?by?the?entire?family.
Dynamics of husband-wife decision making
? Marketers?are?interested?in?the?relative?amount?of?influence?that?a?
husband?and?a?wife?have?when?it?comes?to?family?consumption?
choices.?The?relative?influence?of?husbands?and?wives?can?be?
classified?as:?husband?dominated,?wife?dominated,?joint,?and?
autonomic.
? ?The?relative?influence?of?a?husband?and?wife?on?a?particular?
consumer?decisions?depends?in?part?on?the?product?and?service?
category.?For?instance,?during?1950s,?the?purchase?of?a?new?
automobile?was?strongly?husband?dominated,?whereas?food?and?
financial?banking?decisions?more?often?were?wife?dominated.?Fifty?
years?later,?the?purchase?of?the?family?s?principal?automobile?is?still?
often?husbands?dominated?in?many?households.?
? Husband wife decision making also appears to be related to cultural
influence. Research comparing husband wife decision making
patterns in the people?s republic of china and in the United States
revels that among Chinese there were substantially fewer ?joint?
decisions and more ?husband dominated? decisions for many
household purchases.
? However, when limiting the comparison to urban and rural Chinese
households, the research showed that in a large city such as Beijing,
married couples were more likely than rural couples to share equally
in purchase decisions. Still further, because of china?s ?one child?
policy and the ensuring custom of treating a single child as a ?little
emperor?, many of the parents purchase decisions are influenced by
the input of their child.
? In another recent cross-culture study, husband-wife decision making
was studied among three groups: Asian Indians living in India, Asian
Indians living in the United States, and American nationals. Results
show a decrease in husband decisions and an increase in wife
dominated decisions, going from Asian Indians in India, to Asian
Indians in the United States, to American nationals. This pattern
seems to indicate the impact of assimilation on decision making.
The expanding role of children in the family
decision making
? Over the past several decades, there has been a trend toward
children playing a more active role in what the family buys, as well as
in the family decision making process.
? This shift in influence has occurred as a result of families having fewer
children, more dual income couples who can afford to permit their
children to make greater number of the choices.
? Also the single parent households often push their children toward
household participation and self reliance.
? For example kids in supermarkets with a parent make an average of
15 requests, of which about half are typically granted.
? The table shows some of the tactics employed by children to
influence their parents.
Tactics used by children to influence their parents
? Pressure tactics
The child makes demand uses threats, or intimidation to persuade you to
comply with his /her request
? Upward appeal
The child seeks to influence you, saying that the request was approved or
supported by an older member of the family, a teacher, or a family friend
? Exchange tactics
The child makes an explicit or implicit promise to give you some sort of
service such as washing the car in return for the favour
? Coalition tactics
The child seeks the aid of others to persuade you to comply with his /her
request or uses the support of others as an argument for you to agree with
him/her
? Ingratiating tactics
The child seeks to get you in a good mood or think favourably of him or
her before asking you to comply with a request.
? Rational persuasion
The child uses logical arguments and factual evidence to persuade you
to agree with his/her request
? Inspirational appeals
The child makes an emotional appeal or proposal that arouses
enthusiasm by appealing to your values and ideas
? Consultation tactics
The child seeks your involvement in making a decision
Family life cycle stages
? The concept of household or family life cycle is important for marketers in
segmenting the market. In 1966, William wells and George Gubar proposed eight
stages to describe the family life cycle.
? The following life cycle stages are typical of families:
1. The bachelor stage: young, single person under age of 35 years. Incomes
are generally low since they have started careers, but they may have few financial
burdens and sufficient discretionary income.
2. Newly married: young couples, no children. If both are employed, they will
have high level of discretionary income.
Family life cycle stages
3. Full nest 1: young married couples with youngest child under 6 years of age.
There would be greater squeezes on income because of increased on childcare.
However, if they are members of a joint family, the level of flexible income is
likely to be high.
4. Full nest 2: young married couples with children from 6 years to 12 years of
age. Better financial position because income of both parents rising. Children
spend more hours outside their parents influence.
5. Full nest 3: older married couples with dependent teenage children living at
home. Financial position of family continues to improve. There are increasing costs
of college education for children.
Family life cycle stages
6. Empty nest 4: older married couples with no children living with
them, parents still employed. Reduced expenses result in greater
savings and highest discretionary income.
7. Empty nest 5: older married couples with no children living with
them and parents retired. Drop in income and couple relies on savings
and fixed income from retirement benefits.
8. Solitary survivor 6: older single persons with low income and
increasing medical needs.
Family and Marketing Strategy
? Use the FLC for segmentation and positioning
? Recognize the diverse consumption roles within the
family
? Understand and use the dynamics of husband-wife
decision making
? Understand and use the consumer socialization role
played by the family
? Recognize the changing nature of Canadian families.
The Power of Reference Groups
Social
Power
Referent
Power
Legitimate
Power
Information
Power
Expert
Power
Coercive
Power
Reward
Power
Types of
Reference
Group Power
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
Here's the comparison of India, China, and United
States on the basis of Hofstede's cultural
dimensions.
? Developing right competencies
? Once we understand the various facets of a national culture, then we
need to develop the right competencies to equip a business leader
with the right frame of mind, attitude, and skills to feel comfortable
and business-ready in the host culture.
Groups
? Groups exist in every formal and informal type of organisations. Such
groups are created by the members for its satisfaction. Very often
groups get formed automatically because of the operation of various
socio psychological factors. Such groups affect the behaviour of its
members.
Meaning of Group:
? Marvin E. Shaw has defined groups as ?two or more persons who are
interacting with one another in a such a manner that each person
influences and influenced by each other?
? Clouis R. Shepherd defines groups as ?A group may be defined as the
aggregation of small number of persons who work for common goals,
develop a shared attitudes and are aware that they are part of a
group and perceive themselves as such?.
Characteristics of Groups :
? 1. Two or more persons: To form a group there should be atleast two persons,
because a single individual cannot interact. Though no maximum limits have been set,
the size of the group should be such so as to allow meaningful interaction among the
members of group.
? 2. Collective identity: Each member of the group must believe that he is member of
the group and also be aware of his participation in the group activity. For instance a
group of boys are room-mates staying together in the hostel. Though they may not be
studying in the same class but because of their identity of room-mates they would prefer
to go out together for shopping.
? 3. Interaction: Members of the group will interact with each other. Though it is not
necessary for all members of the group to interact simultaneously but each member
must atleast occasionally interact with the members of the group.
? 4. Shared goal interest: Members of the group should concur to the attainment of
objectives each one must atleast share one of the groups concerns
The changing structure of family
? Basic functions provided by the family are particularly relevant to a
discussion of consumer behavior.
? These include:
? ? Economic well being
? ? Emotional support
? ? Suitable family lifestyles
Emotional well-being
? Although families in the affluent nations of North America, Europe
and Asia are no longer formed primarily for economic security,
providing financial means to its dependents unquestionably a basic
family function. How the family divides its responsibilities for
providing economic well-being has changed considerably during past
30 years. No longer are traditional husband as economic provider and
wife as home maker and child-rearer still valid.
? Emotional support
? The provision of emotional nourishment (including love, affection,
and intimacy) to its members is an important core function of the
contemporary family. In fulfilling this function, the family provides
support and encouragement and assists its members in coping with
decision making and with personal or social problems. To make it
easier for working parents to show their love, affection, and support
to their children, greeting card companies have been increasingly
creating cards for parents to give to their children (vice versa)
? Suitable family lifestyle
? Another important family function in terms of consumer behavior is
the establishment of a suitable lifestyle for the family. Upbringing,
experience, and the personal and jointly held goals of the spouses
determine the importance placed on education or career, on reading,
on television viewing, on the learning of computer skills, on the
frequency quality of dining out, and on the selection of other
entertainment and recreational activities.
? Family lifestyle commitments, including the allocation of time, are
generally influencing consumption patterns.
Family decision making and consumption-
related roles
? When two or more family members are directly or indirectly involved
in the decision making process, it is called family decision making.
Such family decisions differs from individuals decisions in many ways.
For example, if we consider the purchase of a bicycle for a child, some
of the relevant aspects to think about can be: who recognizes the
need for bicycle? How a brand is selected? What role the concerned
child plays?
? Joint decisions are more likely to operate in the early stages of
family life cycle when both spouses are relatively less experienced.
After gaining experience, they usually delegate responsibilities
concerning buying decisions to each other.
Key family consumption roles
? For?a?family?to?function?as?a?cohesive?unit,?tasks?such?as?doing?the?laundry,?
preparing?meals,?setting?the?dinner?table,?taking?out?the?garbage,?and?
walking?the?dog?must?be?carried?out?by?one?or?more?family?members.?In?a?
dynamic?society,?family?related?duties?are?constantly?changing?however,?
we?can?identify?either?distinct?roles?in?the?family?decision?making?process.
? ?For?example,?a?family?member?may?be?walking?down?the?cookie?aisle?at?a?
local?supermarket?when?she?picks?out?an?interesting?new?fat-free?cookie.?
Her?selection?does?not?directly?involve?the?influence?of?other?family?
members.?She?is?the?decider,?the?buyer?and,?in?a?sense,?the?gatekeeper,?
however,?she?may?not?be?the?sole?consumer.?Products?may?be?consumed?
by?a?single?family?member,?consumed?or?used?directly?by?two?or?more?
family?members,?or?consumed?indirectly?by?the?entire?family.
Dynamics of husband-wife decision making
? Marketers?are?interested?in?the?relative?amount?of?influence?that?a?
husband?and?a?wife?have?when?it?comes?to?family?consumption?
choices.?The?relative?influence?of?husbands?and?wives?can?be?
classified?as:?husband?dominated,?wife?dominated,?joint,?and?
autonomic.
? ?The?relative?influence?of?a?husband?and?wife?on?a?particular?
consumer?decisions?depends?in?part?on?the?product?and?service?
category.?For?instance,?during?1950s,?the?purchase?of?a?new?
automobile?was?strongly?husband?dominated,?whereas?food?and?
financial?banking?decisions?more?often?were?wife?dominated.?Fifty?
years?later,?the?purchase?of?the?family?s?principal?automobile?is?still?
often?husbands?dominated?in?many?households.?
? Husband wife decision making also appears to be related to cultural
influence. Research comparing husband wife decision making
patterns in the people?s republic of china and in the United States
revels that among Chinese there were substantially fewer ?joint?
decisions and more ?husband dominated? decisions for many
household purchases.
? However, when limiting the comparison to urban and rural Chinese
households, the research showed that in a large city such as Beijing,
married couples were more likely than rural couples to share equally
in purchase decisions. Still further, because of china?s ?one child?
policy and the ensuring custom of treating a single child as a ?little
emperor?, many of the parents purchase decisions are influenced by
the input of their child.
? In another recent cross-culture study, husband-wife decision making
was studied among three groups: Asian Indians living in India, Asian
Indians living in the United States, and American nationals. Results
show a decrease in husband decisions and an increase in wife
dominated decisions, going from Asian Indians in India, to Asian
Indians in the United States, to American nationals. This pattern
seems to indicate the impact of assimilation on decision making.
The expanding role of children in the family
decision making
? Over the past several decades, there has been a trend toward
children playing a more active role in what the family buys, as well as
in the family decision making process.
? This shift in influence has occurred as a result of families having fewer
children, more dual income couples who can afford to permit their
children to make greater number of the choices.
? Also the single parent households often push their children toward
household participation and self reliance.
? For example kids in supermarkets with a parent make an average of
15 requests, of which about half are typically granted.
? The table shows some of the tactics employed by children to
influence their parents.
Tactics used by children to influence their parents
? Pressure tactics
The child makes demand uses threats, or intimidation to persuade you to
comply with his /her request
? Upward appeal
The child seeks to influence you, saying that the request was approved or
supported by an older member of the family, a teacher, or a family friend
? Exchange tactics
The child makes an explicit or implicit promise to give you some sort of
service such as washing the car in return for the favour
? Coalition tactics
The child seeks the aid of others to persuade you to comply with his /her
request or uses the support of others as an argument for you to agree with
him/her
? Ingratiating tactics
The child seeks to get you in a good mood or think favourably of him or
her before asking you to comply with a request.
? Rational persuasion
The child uses logical arguments and factual evidence to persuade you
to agree with his/her request
? Inspirational appeals
The child makes an emotional appeal or proposal that arouses
enthusiasm by appealing to your values and ideas
? Consultation tactics
The child seeks your involvement in making a decision
Family life cycle stages
? The concept of household or family life cycle is important for marketers in
segmenting the market. In 1966, William wells and George Gubar proposed eight
stages to describe the family life cycle.
? The following life cycle stages are typical of families:
1. The bachelor stage: young, single person under age of 35 years. Incomes
are generally low since they have started careers, but they may have few financial
burdens and sufficient discretionary income.
2. Newly married: young couples, no children. If both are employed, they will
have high level of discretionary income.
Family life cycle stages
3. Full nest 1: young married couples with youngest child under 6 years of age.
There would be greater squeezes on income because of increased on childcare.
However, if they are members of a joint family, the level of flexible income is
likely to be high.
4. Full nest 2: young married couples with children from 6 years to 12 years of
age. Better financial position because income of both parents rising. Children
spend more hours outside their parents influence.
5. Full nest 3: older married couples with dependent teenage children living at
home. Financial position of family continues to improve. There are increasing costs
of college education for children.
Family life cycle stages
6. Empty nest 4: older married couples with no children living with
them, parents still employed. Reduced expenses result in greater
savings and highest discretionary income.
7. Empty nest 5: older married couples with no children living with
them and parents retired. Drop in income and couple relies on savings
and fixed income from retirement benefits.
8. Solitary survivor 6: older single persons with low income and
increasing medical needs.
Family and Marketing Strategy
? Use the FLC for segmentation and positioning
? Recognize the diverse consumption roles within the
family
? Understand and use the dynamics of husband-wife
decision making
? Understand and use the consumer socialization role
played by the family
? Recognize the changing nature of Canadian families.
The Power of Reference Groups
Social
Power
Referent
Power
Legitimate
Power
Information
Power
Expert
Power
Coercive
Power
Reward
Power
Types of
Reference
Group Power
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
Here's the comparison of India, China, and United
States on the basis of Hofstede's cultural
dimensions.
? Developing right competencies
? Once we understand the various facets of a national culture, then we
need to develop the right competencies to equip a business leader
with the right frame of mind, attitude, and skills to feel comfortable
and business-ready in the host culture.
Groups
? Groups exist in every formal and informal type of organisations. Such
groups are created by the members for its satisfaction. Very often
groups get formed automatically because of the operation of various
socio psychological factors. Such groups affect the behaviour of its
members.
Meaning of Group:
? Marvin E. Shaw has defined groups as ?two or more persons who are
interacting with one another in a such a manner that each person
influences and influenced by each other?
? Clouis R. Shepherd defines groups as ?A group may be defined as the
aggregation of small number of persons who work for common goals,
develop a shared attitudes and are aware that they are part of a
group and perceive themselves as such?.
Characteristics of Groups :
? 1. Two or more persons: To form a group there should be atleast two persons,
because a single individual cannot interact. Though no maximum limits have been set,
the size of the group should be such so as to allow meaningful interaction among the
members of group.
? 2. Collective identity: Each member of the group must believe that he is member of
the group and also be aware of his participation in the group activity. For instance a
group of boys are room-mates staying together in the hostel. Though they may not be
studying in the same class but because of their identity of room-mates they would prefer
to go out together for shopping.
? 3. Interaction: Members of the group will interact with each other. Though it is not
necessary for all members of the group to interact simultaneously but each member
must atleast occasionally interact with the members of the group.
? 4. Shared goal interest: Members of the group should concur to the attainment of
objectives each one must atleast share one of the groups concerns
The changing structure of family
? Basic functions provided by the family are particularly relevant to a
discussion of consumer behavior.
? These include:
? ? Economic well being
? ? Emotional support
? ? Suitable family lifestyles
Emotional well-being
? Although families in the affluent nations of North America, Europe
and Asia are no longer formed primarily for economic security,
providing financial means to its dependents unquestionably a basic
family function. How the family divides its responsibilities for
providing economic well-being has changed considerably during past
30 years. No longer are traditional husband as economic provider and
wife as home maker and child-rearer still valid.
? Emotional support
? The provision of emotional nourishment (including love, affection,
and intimacy) to its members is an important core function of the
contemporary family. In fulfilling this function, the family provides
support and encouragement and assists its members in coping with
decision making and with personal or social problems. To make it
easier for working parents to show their love, affection, and support
to their children, greeting card companies have been increasingly
creating cards for parents to give to their children (vice versa)
? Suitable family lifestyle
? Another important family function in terms of consumer behavior is
the establishment of a suitable lifestyle for the family. Upbringing,
experience, and the personal and jointly held goals of the spouses
determine the importance placed on education or career, on reading,
on television viewing, on the learning of computer skills, on the
frequency quality of dining out, and on the selection of other
entertainment and recreational activities.
? Family lifestyle commitments, including the allocation of time, are
generally influencing consumption patterns.
Family decision making and consumption-
related roles
? When two or more family members are directly or indirectly involved
in the decision making process, it is called family decision making.
Such family decisions differs from individuals decisions in many ways.
For example, if we consider the purchase of a bicycle for a child, some
of the relevant aspects to think about can be: who recognizes the
need for bicycle? How a brand is selected? What role the concerned
child plays?
? Joint decisions are more likely to operate in the early stages of
family life cycle when both spouses are relatively less experienced.
After gaining experience, they usually delegate responsibilities
concerning buying decisions to each other.
Key family consumption roles
? For?a?family?to?function?as?a?cohesive?unit,?tasks?such?as?doing?the?laundry,?
preparing?meals,?setting?the?dinner?table,?taking?out?the?garbage,?and?
walking?the?dog?must?be?carried?out?by?one?or?more?family?members.?In?a?
dynamic?society,?family?related?duties?are?constantly?changing?however,?
we?can?identify?either?distinct?roles?in?the?family?decision?making?process.
? ?For?example,?a?family?member?may?be?walking?down?the?cookie?aisle?at?a?
local?supermarket?when?she?picks?out?an?interesting?new?fat-free?cookie.?
Her?selection?does?not?directly?involve?the?influence?of?other?family?
members.?She?is?the?decider,?the?buyer?and,?in?a?sense,?the?gatekeeper,?
however,?she?may?not?be?the?sole?consumer.?Products?may?be?consumed?
by?a?single?family?member,?consumed?or?used?directly?by?two?or?more?
family?members,?or?consumed?indirectly?by?the?entire?family.
Dynamics of husband-wife decision making
? Marketers?are?interested?in?the?relative?amount?of?influence?that?a?
husband?and?a?wife?have?when?it?comes?to?family?consumption?
choices.?The?relative?influence?of?husbands?and?wives?can?be?
classified?as:?husband?dominated,?wife?dominated,?joint,?and?
autonomic.
? ?The?relative?influence?of?a?husband?and?wife?on?a?particular?
consumer?decisions?depends?in?part?on?the?product?and?service?
category.?For?instance,?during?1950s,?the?purchase?of?a?new?
automobile?was?strongly?husband?dominated,?whereas?food?and?
financial?banking?decisions?more?often?were?wife?dominated.?Fifty?
years?later,?the?purchase?of?the?family?s?principal?automobile?is?still?
often?husbands?dominated?in?many?households.?
? Husband wife decision making also appears to be related to cultural
influence. Research comparing husband wife decision making
patterns in the people?s republic of china and in the United States
revels that among Chinese there were substantially fewer ?joint?
decisions and more ?husband dominated? decisions for many
household purchases.
? However, when limiting the comparison to urban and rural Chinese
households, the research showed that in a large city such as Beijing,
married couples were more likely than rural couples to share equally
in purchase decisions. Still further, because of china?s ?one child?
policy and the ensuring custom of treating a single child as a ?little
emperor?, many of the parents purchase decisions are influenced by
the input of their child.
? In another recent cross-culture study, husband-wife decision making
was studied among three groups: Asian Indians living in India, Asian
Indians living in the United States, and American nationals. Results
show a decrease in husband decisions and an increase in wife
dominated decisions, going from Asian Indians in India, to Asian
Indians in the United States, to American nationals. This pattern
seems to indicate the impact of assimilation on decision making.
The expanding role of children in the family
decision making
? Over the past several decades, there has been a trend toward
children playing a more active role in what the family buys, as well as
in the family decision making process.
? This shift in influence has occurred as a result of families having fewer
children, more dual income couples who can afford to permit their
children to make greater number of the choices.
? Also the single parent households often push their children toward
household participation and self reliance.
? For example kids in supermarkets with a parent make an average of
15 requests, of which about half are typically granted.
? The table shows some of the tactics employed by children to
influence their parents.
Tactics used by children to influence their parents
? Pressure tactics
The child makes demand uses threats, or intimidation to persuade you to
comply with his /her request
? Upward appeal
The child seeks to influence you, saying that the request was approved or
supported by an older member of the family, a teacher, or a family friend
? Exchange tactics
The child makes an explicit or implicit promise to give you some sort of
service such as washing the car in return for the favour
? Coalition tactics
The child seeks the aid of others to persuade you to comply with his /her
request or uses the support of others as an argument for you to agree with
him/her
? Ingratiating tactics
The child seeks to get you in a good mood or think favourably of him or
her before asking you to comply with a request.
? Rational persuasion
The child uses logical arguments and factual evidence to persuade you
to agree with his/her request
? Inspirational appeals
The child makes an emotional appeal or proposal that arouses
enthusiasm by appealing to your values and ideas
? Consultation tactics
The child seeks your involvement in making a decision
Family life cycle stages
? The concept of household or family life cycle is important for marketers in
segmenting the market. In 1966, William wells and George Gubar proposed eight
stages to describe the family life cycle.
? The following life cycle stages are typical of families:
1. The bachelor stage: young, single person under age of 35 years. Incomes
are generally low since they have started careers, but they may have few financial
burdens and sufficient discretionary income.
2. Newly married: young couples, no children. If both are employed, they will
have high level of discretionary income.
Family life cycle stages
3. Full nest 1: young married couples with youngest child under 6 years of age.
There would be greater squeezes on income because of increased on childcare.
However, if they are members of a joint family, the level of flexible income is
likely to be high.
4. Full nest 2: young married couples with children from 6 years to 12 years of
age. Better financial position because income of both parents rising. Children
spend more hours outside their parents influence.
5. Full nest 3: older married couples with dependent teenage children living at
home. Financial position of family continues to improve. There are increasing costs
of college education for children.
Family life cycle stages
6. Empty nest 4: older married couples with no children living with
them, parents still employed. Reduced expenses result in greater
savings and highest discretionary income.
7. Empty nest 5: older married couples with no children living with
them and parents retired. Drop in income and couple relies on savings
and fixed income from retirement benefits.
8. Solitary survivor 6: older single persons with low income and
increasing medical needs.
Family and Marketing Strategy
? Use the FLC for segmentation and positioning
? Recognize the diverse consumption roles within the
family
? Understand and use the dynamics of husband-wife
decision making
? Understand and use the consumer socialization role
played by the family
? Recognize the changing nature of Canadian families.
The Power of Reference Groups
Social
Power
Referent
Power
Legitimate
Power
Information
Power
Expert
Power
Coercive
Power
Reward
Power
Types of
Reference
Group Power
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
Here's the comparison of India, China, and United
States on the basis of Hofstede's cultural
dimensions.
? Developing right competencies
? Once we understand the various facets of a national culture, then we
need to develop the right competencies to equip a business leader
with the right frame of mind, attitude, and skills to feel comfortable
and business-ready in the host culture.
Groups
? Groups exist in every formal and informal type of organisations. Such
groups are created by the members for its satisfaction. Very often
groups get formed automatically because of the operation of various
socio psychological factors. Such groups affect the behaviour of its
members.
Meaning of Group:
? Marvin E. Shaw has defined groups as ?two or more persons who are
interacting with one another in a such a manner that each person
influences and influenced by each other?
? Clouis R. Shepherd defines groups as ?A group may be defined as the
aggregation of small number of persons who work for common goals,
develop a shared attitudes and are aware that they are part of a
group and perceive themselves as such?.
Characteristics of Groups :
? 1. Two or more persons: To form a group there should be atleast two persons,
because a single individual cannot interact. Though no maximum limits have been set,
the size of the group should be such so as to allow meaningful interaction among the
members of group.
? 2. Collective identity: Each member of the group must believe that he is member of
the group and also be aware of his participation in the group activity. For instance a
group of boys are room-mates staying together in the hostel. Though they may not be
studying in the same class but because of their identity of room-mates they would prefer
to go out together for shopping.
? 3. Interaction: Members of the group will interact with each other. Though it is not
necessary for all members of the group to interact simultaneously but each member
must atleast occasionally interact with the members of the group.
? 4. Shared goal interest: Members of the group should concur to the attainment of
objectives each one must atleast share one of the groups concerns
The changing structure of family
? Basic functions provided by the family are particularly relevant to a
discussion of consumer behavior.
? These include:
? ? Economic well being
? ? Emotional support
? ? Suitable family lifestyles
Emotional well-being
? Although families in the affluent nations of North America, Europe
and Asia are no longer formed primarily for economic security,
providing financial means to its dependents unquestionably a basic
family function. How the family divides its responsibilities for
providing economic well-being has changed considerably during past
30 years. No longer are traditional husband as economic provider and
wife as home maker and child-rearer still valid.
? Emotional support
? The provision of emotional nourishment (including love, affection,
and intimacy) to its members is an important core function of the
contemporary family. In fulfilling this function, the family provides
support and encouragement and assists its members in coping with
decision making and with personal or social problems. To make it
easier for working parents to show their love, affection, and support
to their children, greeting card companies have been increasingly
creating cards for parents to give to their children (vice versa)
? Suitable family lifestyle
? Another important family function in terms of consumer behavior is
the establishment of a suitable lifestyle for the family. Upbringing,
experience, and the personal and jointly held goals of the spouses
determine the importance placed on education or career, on reading,
on television viewing, on the learning of computer skills, on the
frequency quality of dining out, and on the selection of other
entertainment and recreational activities.
? Family lifestyle commitments, including the allocation of time, are
generally influencing consumption patterns.
Family decision making and consumption-
related roles
? When two or more family members are directly or indirectly involved
in the decision making process, it is called family decision making.
Such family decisions differs from individuals decisions in many ways.
For example, if we consider the purchase of a bicycle for a child, some
of the relevant aspects to think about can be: who recognizes the
need for bicycle? How a brand is selected? What role the concerned
child plays?
? Joint decisions are more likely to operate in the early stages of
family life cycle when both spouses are relatively less experienced.
After gaining experience, they usually delegate responsibilities
concerning buying decisions to each other.
Key family consumption roles
? For?a?family?to?function?as?a?cohesive?unit,?tasks?such?as?doing?the?laundry,?
preparing?meals,?setting?the?dinner?table,?taking?out?the?garbage,?and?
walking?the?dog?must?be?carried?out?by?one?or?more?family?members.?In?a?
dynamic?society,?family?related?duties?are?constantly?changing?however,?
we?can?identify?either?distinct?roles?in?the?family?decision?making?process.
? ?For?example,?a?family?member?may?be?walking?down?the?cookie?aisle?at?a?
local?supermarket?when?she?picks?out?an?interesting?new?fat-free?cookie.?
Her?selection?does?not?directly?involve?the?influence?of?other?family?
members.?She?is?the?decider,?the?buyer?and,?in?a?sense,?the?gatekeeper,?
however,?she?may?not?be?the?sole?consumer.?Products?may?be?consumed?
by?a?single?family?member,?consumed?or?used?directly?by?two?or?more?
family?members,?or?consumed?indirectly?by?the?entire?family.
Dynamics of husband-wife decision making
? Marketers?are?interested?in?the?relative?amount?of?influence?that?a?
husband?and?a?wife?have?when?it?comes?to?family?consumption?
choices.?The?relative?influence?of?husbands?and?wives?can?be?
classified?as:?husband?dominated,?wife?dominated,?joint,?and?
autonomic.
? ?The?relative?influence?of?a?husband?and?wife?on?a?particular?
consumer?decisions?depends?in?part?on?the?product?and?service?
category.?For?instance,?during?1950s,?the?purchase?of?a?new?
automobile?was?strongly?husband?dominated,?whereas?food?and?
financial?banking?decisions?more?often?were?wife?dominated.?Fifty?
years?later,?the?purchase?of?the?family?s?principal?automobile?is?still?
often?husbands?dominated?in?many?households.?
? Husband wife decision making also appears to be related to cultural
influence. Research comparing husband wife decision making
patterns in the people?s republic of china and in the United States
revels that among Chinese there were substantially fewer ?joint?
decisions and more ?husband dominated? decisions for many
household purchases.
? However, when limiting the comparison to urban and rural Chinese
households, the research showed that in a large city such as Beijing,
married couples were more likely than rural couples to share equally
in purchase decisions. Still further, because of china?s ?one child?
policy and the ensuring custom of treating a single child as a ?little
emperor?, many of the parents purchase decisions are influenced by
the input of their child.
? In another recent cross-culture study, husband-wife decision making
was studied among three groups: Asian Indians living in India, Asian
Indians living in the United States, and American nationals. Results
show a decrease in husband decisions and an increase in wife
dominated decisions, going from Asian Indians in India, to Asian
Indians in the United States, to American nationals. This pattern
seems to indicate the impact of assimilation on decision making.
The expanding role of children in the family
decision making
? Over the past several decades, there has been a trend toward
children playing a more active role in what the family buys, as well as
in the family decision making process.
? This shift in influence has occurred as a result of families having fewer
children, more dual income couples who can afford to permit their
children to make greater number of the choices.
? Also the single parent households often push their children toward
household participation and self reliance.
? For example kids in supermarkets with a parent make an average of
15 requests, of which about half are typically granted.
? The table shows some of the tactics employed by children to
influence their parents.
Tactics used by children to influence their parents
? Pressure tactics
The child makes demand uses threats, or intimidation to persuade you to
comply with his /her request
? Upward appeal
The child seeks to influence you, saying that the request was approved or
supported by an older member of the family, a teacher, or a family friend
? Exchange tactics
The child makes an explicit or implicit promise to give you some sort of
service such as washing the car in return for the favour
? Coalition tactics
The child seeks the aid of others to persuade you to comply with his /her
request or uses the support of others as an argument for you to agree with
him/her
? Ingratiating tactics
The child seeks to get you in a good mood or think favourably of him or
her before asking you to comply with a request.
? Rational persuasion
The child uses logical arguments and factual evidence to persuade you
to agree with his/her request
? Inspirational appeals
The child makes an emotional appeal or proposal that arouses
enthusiasm by appealing to your values and ideas
? Consultation tactics
The child seeks your involvement in making a decision
Family life cycle stages
? The concept of household or family life cycle is important for marketers in
segmenting the market. In 1966, William wells and George Gubar proposed eight
stages to describe the family life cycle.
? The following life cycle stages are typical of families:
1. The bachelor stage: young, single person under age of 35 years. Incomes
are generally low since they have started careers, but they may have few financial
burdens and sufficient discretionary income.
2. Newly married: young couples, no children. If both are employed, they will
have high level of discretionary income.
Family life cycle stages
3. Full nest 1: young married couples with youngest child under 6 years of age.
There would be greater squeezes on income because of increased on childcare.
However, if they are members of a joint family, the level of flexible income is
likely to be high.
4. Full nest 2: young married couples with children from 6 years to 12 years of
age. Better financial position because income of both parents rising. Children
spend more hours outside their parents influence.
5. Full nest 3: older married couples with dependent teenage children living at
home. Financial position of family continues to improve. There are increasing costs
of college education for children.
Family life cycle stages
6. Empty nest 4: older married couples with no children living with
them, parents still employed. Reduced expenses result in greater
savings and highest discretionary income.
7. Empty nest 5: older married couples with no children living with
them and parents retired. Drop in income and couple relies on savings
and fixed income from retirement benefits.
8. Solitary survivor 6: older single persons with low income and
increasing medical needs.
Family and Marketing Strategy
? Use the FLC for segmentation and positioning
? Recognize the diverse consumption roles within the
family
? Understand and use the dynamics of husband-wife
decision making
? Understand and use the consumer socialization role
played by the family
? Recognize the changing nature of Canadian families.
The Power of Reference Groups
Social
Power
Referent
Power
Legitimate
Power
Information
Power
Expert
Power
Coercive
Power
Reward
Power
Types of
Reference
Group Power
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
Here's the comparison of India, China, and United
States on the basis of Hofstede's cultural
dimensions.
? Developing right competencies
? Once we understand the various facets of a national culture, then we
need to develop the right competencies to equip a business leader
with the right frame of mind, attitude, and skills to feel comfortable
and business-ready in the host culture.
Groups
? Groups exist in every formal and informal type of organisations. Such
groups are created by the members for its satisfaction. Very often
groups get formed automatically because of the operation of various
socio psychological factors. Such groups affect the behaviour of its
members.
Meaning of Group:
? Marvin E. Shaw has defined groups as ?two or more persons who are
interacting with one another in a such a manner that each person
influences and influenced by each other?
? Clouis R. Shepherd defines groups as ?A group may be defined as the
aggregation of small number of persons who work for common goals,
develop a shared attitudes and are aware that they are part of a
group and perceive themselves as such?.
Characteristics of Groups :
? 1. Two or more persons: To form a group there should be atleast two persons,
because a single individual cannot interact. Though no maximum limits have been set,
the size of the group should be such so as to allow meaningful interaction among the
members of group.
? 2. Collective identity: Each member of the group must believe that he is member of
the group and also be aware of his participation in the group activity. For instance a
group of boys are room-mates staying together in the hostel. Though they may not be
studying in the same class but because of their identity of room-mates they would prefer
to go out together for shopping.
? 3. Interaction: Members of the group will interact with each other. Though it is not
necessary for all members of the group to interact simultaneously but each member
must atleast occasionally interact with the members of the group.
? 4. Shared goal interest: Members of the group should concur to the attainment of
objectives each one must atleast share one of the groups concerns
The changing structure of family
? Basic functions provided by the family are particularly relevant to a
discussion of consumer behavior.
? These include:
? ? Economic well being
? ? Emotional support
? ? Suitable family lifestyles
Emotional well-being
? Although families in the affluent nations of North America, Europe
and Asia are no longer formed primarily for economic security,
providing financial means to its dependents unquestionably a basic
family function. How the family divides its responsibilities for
providing economic well-being has changed considerably during past
30 years. No longer are traditional husband as economic provider and
wife as home maker and child-rearer still valid.
? Emotional support
? The provision of emotional nourishment (including love, affection,
and intimacy) to its members is an important core function of the
contemporary family. In fulfilling this function, the family provides
support and encouragement and assists its members in coping with
decision making and with personal or social problems. To make it
easier for working parents to show their love, affection, and support
to their children, greeting card companies have been increasingly
creating cards for parents to give to their children (vice versa)
? Suitable family lifestyle
? Another important family function in terms of consumer behavior is
the establishment of a suitable lifestyle for the family. Upbringing,
experience, and the personal and jointly held goals of the spouses
determine the importance placed on education or career, on reading,
on television viewing, on the learning of computer skills, on the
frequency quality of dining out, and on the selection of other
entertainment and recreational activities.
? Family lifestyle commitments, including the allocation of time, are
generally influencing consumption patterns.
Family decision making and consumption-
related roles
? When two or more family members are directly or indirectly involved
in the decision making process, it is called family decision making.
Such family decisions differs from individuals decisions in many ways.
For example, if we consider the purchase of a bicycle for a child, some
of the relevant aspects to think about can be: who recognizes the
need for bicycle? How a brand is selected? What role the concerned
child plays?
? Joint decisions are more likely to operate in the early stages of
family life cycle when both spouses are relatively less experienced.
After gaining experience, they usually delegate responsibilities
concerning buying decisions to each other.
Key family consumption roles
? For?a?family?to?function?as?a?cohesive?unit,?tasks?such?as?doing?the?laundry,?
preparing?meals,?setting?the?dinner?table,?taking?out?the?garbage,?and?
walking?the?dog?must?be?carried?out?by?one?or?more?family?members.?In?a?
dynamic?society,?family?related?duties?are?constantly?changing?however,?
we?can?identify?either?distinct?roles?in?the?family?decision?making?process.
? ?For?example,?a?family?member?may?be?walking?down?the?cookie?aisle?at?a?
local?supermarket?when?she?picks?out?an?interesting?new?fat-free?cookie.?
Her?selection?does?not?directly?involve?the?influence?of?other?family?
members.?She?is?the?decider,?the?buyer?and,?in?a?sense,?the?gatekeeper,?
however,?she?may?not?be?the?sole?consumer.?Products?may?be?consumed?
by?a?single?family?member,?consumed?or?used?directly?by?two?or?more?
family?members,?or?consumed?indirectly?by?the?entire?family.
Dynamics of husband-wife decision making
? Marketers?are?interested?in?the?relative?amount?of?influence?that?a?
husband?and?a?wife?have?when?it?comes?to?family?consumption?
choices.?The?relative?influence?of?husbands?and?wives?can?be?
classified?as:?husband?dominated,?wife?dominated,?joint,?and?
autonomic.
? ?The?relative?influence?of?a?husband?and?wife?on?a?particular?
consumer?decisions?depends?in?part?on?the?product?and?service?
category.?For?instance,?during?1950s,?the?purchase?of?a?new?
automobile?was?strongly?husband?dominated,?whereas?food?and?
financial?banking?decisions?more?often?were?wife?dominated.?Fifty?
years?later,?the?purchase?of?the?family?s?principal?automobile?is?still?
often?husbands?dominated?in?many?households.?
? Husband wife decision making also appears to be related to cultural
influence. Research comparing husband wife decision making
patterns in the people?s republic of china and in the United States
revels that among Chinese there were substantially fewer ?joint?
decisions and more ?husband dominated? decisions for many
household purchases.
? However, when limiting the comparison to urban and rural Chinese
households, the research showed that in a large city such as Beijing,
married couples were more likely than rural couples to share equally
in purchase decisions. Still further, because of china?s ?one child?
policy and the ensuring custom of treating a single child as a ?little
emperor?, many of the parents purchase decisions are influenced by
the input of their child.
? In another recent cross-culture study, husband-wife decision making
was studied among three groups: Asian Indians living in India, Asian
Indians living in the United States, and American nationals. Results
show a decrease in husband decisions and an increase in wife
dominated decisions, going from Asian Indians in India, to Asian
Indians in the United States, to American nationals. This pattern
seems to indicate the impact of assimilation on decision making.
The expanding role of children in the family
decision making
? Over the past several decades, there has been a trend toward
children playing a more active role in what the family buys, as well as
in the family decision making process.
? This shift in influence has occurred as a result of families having fewer
children, more dual income couples who can afford to permit their
children to make greater number of the choices.
? Also the single parent households often push their children toward
household participation and self reliance.
? For example kids in supermarkets with a parent make an average of
15 requests, of which about half are typically granted.
? The table shows some of the tactics employed by children to
influence their parents.
Tactics used by children to influence their parents
? Pressure tactics
The child makes demand uses threats, or intimidation to persuade you to
comply with his /her request
? Upward appeal
The child seeks to influence you, saying that the request was approved or
supported by an older member of the family, a teacher, or a family friend
? Exchange tactics
The child makes an explicit or implicit promise to give you some sort of
service such as washing the car in return for the favour
? Coalition tactics
The child seeks the aid of others to persuade you to comply with his /her
request or uses the support of others as an argument for you to agree with
him/her
? Ingratiating tactics
The child seeks to get you in a good mood or think favourably of him or
her before asking you to comply with a request.
? Rational persuasion
The child uses logical arguments and factual evidence to persuade you
to agree with his/her request
? Inspirational appeals
The child makes an emotional appeal or proposal that arouses
enthusiasm by appealing to your values and ideas
? Consultation tactics
The child seeks your involvement in making a decision
Family life cycle stages
? The concept of household or family life cycle is important for marketers in
segmenting the market. In 1966, William wells and George Gubar proposed eight
stages to describe the family life cycle.
? The following life cycle stages are typical of families:
1. The bachelor stage: young, single person under age of 35 years. Incomes
are generally low since they have started careers, but they may have few financial
burdens and sufficient discretionary income.
2. Newly married: young couples, no children. If both are employed, they will
have high level of discretionary income.
Family life cycle stages
3. Full nest 1: young married couples with youngest child under 6 years of age.
There would be greater squeezes on income because of increased on childcare.
However, if they are members of a joint family, the level of flexible income is
likely to be high.
4. Full nest 2: young married couples with children from 6 years to 12 years of
age. Better financial position because income of both parents rising. Children
spend more hours outside their parents influence.
5. Full nest 3: older married couples with dependent teenage children living at
home. Financial position of family continues to improve. There are increasing costs
of college education for children.
Family life cycle stages
6. Empty nest 4: older married couples with no children living with
them, parents still employed. Reduced expenses result in greater
savings and highest discretionary income.
7. Empty nest 5: older married couples with no children living with
them and parents retired. Drop in income and couple relies on savings
and fixed income from retirement benefits.
8. Solitary survivor 6: older single persons with low income and
increasing medical needs.
Family and Marketing Strategy
? Use the FLC for segmentation and positioning
? Recognize the diverse consumption roles within the
family
? Understand and use the dynamics of husband-wife
decision making
? Understand and use the consumer socialization role
played by the family
? Recognize the changing nature of Canadian families.
The Power of Reference Groups
Social
Power
Referent
Power
Legitimate
Power
Information
Power
Expert
Power
Coercive
Power
Reward
Power
Types of
Reference
Group Power
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
Here's the comparison of India, China, and United
States on the basis of Hofstede's cultural
dimensions.
? Developing right competencies
? Once we understand the various facets of a national culture, then we
need to develop the right competencies to equip a business leader
with the right frame of mind, attitude, and skills to feel comfortable
and business-ready in the host culture.
Groups
? Groups exist in every formal and informal type of organisations. Such
groups are created by the members for its satisfaction. Very often
groups get formed automatically because of the operation of various
socio psychological factors. Such groups affect the behaviour of its
members.
Meaning of Group:
? Marvin E. Shaw has defined groups as ?two or more persons who are
interacting with one another in a such a manner that each person
influences and influenced by each other?
? Clouis R. Shepherd defines groups as ?A group may be defined as the
aggregation of small number of persons who work for common goals,
develop a shared attitudes and are aware that they are part of a
group and perceive themselves as such?.
Characteristics of Groups :
? 1. Two or more persons: To form a group there should be atleast two persons,
because a single individual cannot interact. Though no maximum limits have been set,
the size of the group should be such so as to allow meaningful interaction among the
members of group.
? 2. Collective identity: Each member of the group must believe that he is member of
the group and also be aware of his participation in the group activity. For instance a
group of boys are room-mates staying together in the hostel. Though they may not be
studying in the same class but because of their identity of room-mates they would prefer
to go out together for shopping.
? 3. Interaction: Members of the group will interact with each other. Though it is not
necessary for all members of the group to interact simultaneously but each member
must atleast occasionally interact with the members of the group.
? 4. Shared goal interest: Members of the group should concur to the attainment of
objectives each one must atleast share one of the groups concerns
The changing structure of family
? Basic functions provided by the family are particularly relevant to a
discussion of consumer behavior.
? These include:
? ? Economic well being
? ? Emotional support
? ? Suitable family lifestyles
Emotional well-being
? Although families in the affluent nations of North America, Europe
and Asia are no longer formed primarily for economic security,
providing financial means to its dependents unquestionably a basic
family function. How the family divides its responsibilities for
providing economic well-being has changed considerably during past
30 years. No longer are traditional husband as economic provider and
wife as home maker and child-rearer still valid.
? Emotional support
? The provision of emotional nourishment (including love, affection,
and intimacy) to its members is an important core function of the
contemporary family. In fulfilling this function, the family provides
support and encouragement and assists its members in coping with
decision making and with personal or social problems. To make it
easier for working parents to show their love, affection, and support
to their children, greeting card companies have been increasingly
creating cards for parents to give to their children (vice versa)
? Suitable family lifestyle
? Another important family function in terms of consumer behavior is
the establishment of a suitable lifestyle for the family. Upbringing,
experience, and the personal and jointly held goals of the spouses
determine the importance placed on education or career, on reading,
on television viewing, on the learning of computer skills, on the
frequency quality of dining out, and on the selection of other
entertainment and recreational activities.
? Family lifestyle commitments, including the allocation of time, are
generally influencing consumption patterns.
Family decision making and consumption-
related roles
? When two or more family members are directly or indirectly involved
in the decision making process, it is called family decision making.
Such family decisions differs from individuals decisions in many ways.
For example, if we consider the purchase of a bicycle for a child, some
of the relevant aspects to think about can be: who recognizes the
need for bicycle? How a brand is selected? What role the concerned
child plays?
? Joint decisions are more likely to operate in the early stages of
family life cycle when both spouses are relatively less experienced.
After gaining experience, they usually delegate responsibilities
concerning buying decisions to each other.
Key family consumption roles
? For?a?family?to?function?as?a?cohesive?unit,?tasks?such?as?doing?the?laundry,?
preparing?meals,?setting?the?dinner?table,?taking?out?the?garbage,?and?
walking?the?dog?must?be?carried?out?by?one?or?more?family?members.?In?a?
dynamic?society,?family?related?duties?are?constantly?changing?however,?
we?can?identify?either?distinct?roles?in?the?family?decision?making?process.
? ?For?example,?a?family?member?may?be?walking?down?the?cookie?aisle?at?a?
local?supermarket?when?she?picks?out?an?interesting?new?fat-free?cookie.?
Her?selection?does?not?directly?involve?the?influence?of?other?family?
members.?She?is?the?decider,?the?buyer?and,?in?a?sense,?the?gatekeeper,?
however,?she?may?not?be?the?sole?consumer.?Products?may?be?consumed?
by?a?single?family?member,?consumed?or?used?directly?by?two?or?more?
family?members,?or?consumed?indirectly?by?the?entire?family.
Dynamics of husband-wife decision making
? Marketers?are?interested?in?the?relative?amount?of?influence?that?a?
husband?and?a?wife?have?when?it?comes?to?family?consumption?
choices.?The?relative?influence?of?husbands?and?wives?can?be?
classified?as:?husband?dominated,?wife?dominated,?joint,?and?
autonomic.
? ?The?relative?influence?of?a?husband?and?wife?on?a?particular?
consumer?decisions?depends?in?part?on?the?product?and?service?
category.?For?instance,?during?1950s,?the?purchase?of?a?new?
automobile?was?strongly?husband?dominated,?whereas?food?and?
financial?banking?decisions?more?often?were?wife?dominated.?Fifty?
years?later,?the?purchase?of?the?family?s?principal?automobile?is?still?
often?husbands?dominated?in?many?households.?
? Husband wife decision making also appears to be related to cultural
influence. Research comparing husband wife decision making
patterns in the people?s republic of china and in the United States
revels that among Chinese there were substantially fewer ?joint?
decisions and more ?husband dominated? decisions for many
household purchases.
? However, when limiting the comparison to urban and rural Chinese
households, the research showed that in a large city such as Beijing,
married couples were more likely than rural couples to share equally
in purchase decisions. Still further, because of china?s ?one child?
policy and the ensuring custom of treating a single child as a ?little
emperor?, many of the parents purchase decisions are influenced by
the input of their child.
? In another recent cross-culture study, husband-wife decision making
was studied among three groups: Asian Indians living in India, Asian
Indians living in the United States, and American nationals. Results
show a decrease in husband decisions and an increase in wife
dominated decisions, going from Asian Indians in India, to Asian
Indians in the United States, to American nationals. This pattern
seems to indicate the impact of assimilation on decision making.
The expanding role of children in the family
decision making
? Over the past several decades, there has been a trend toward
children playing a more active role in what the family buys, as well as
in the family decision making process.
? This shift in influence has occurred as a result of families having fewer
children, more dual income couples who can afford to permit their
children to make greater number of the choices.
? Also the single parent households often push their children toward
household participation and self reliance.
? For example kids in supermarkets with a parent make an average of
15 requests, of which about half are typically granted.
? The table shows some of the tactics employed by children to
influence their parents.
Tactics used by children to influence their parents
? Pressure tactics
The child makes demand uses threats, or intimidation to persuade you to
comply with his /her request
? Upward appeal
The child seeks to influence you, saying that the request was approved or
supported by an older member of the family, a teacher, or a family friend
? Exchange tactics
The child makes an explicit or implicit promise to give you some sort of
service such as washing the car in return for the favour
? Coalition tactics
The child seeks the aid of others to persuade you to comply with his /her
request or uses the support of others as an argument for you to agree with
him/her
? Ingratiating tactics
The child seeks to get you in a good mood or think favourably of him or
her before asking you to comply with a request.
? Rational persuasion
The child uses logical arguments and factual evidence to persuade you
to agree with his/her request
? Inspirational appeals
The child makes an emotional appeal or proposal that arouses
enthusiasm by appealing to your values and ideas
? Consultation tactics
The child seeks your involvement in making a decision
Family life cycle stages
? The concept of household or family life cycle is important for marketers in
segmenting the market. In 1966, William wells and George Gubar proposed eight
stages to describe the family life cycle.
? The following life cycle stages are typical of families:
1. The bachelor stage: young, single person under age of 35 years. Incomes
are generally low since they have started careers, but they may have few financial
burdens and sufficient discretionary income.
2. Newly married: young couples, no children. If both are employed, they will
have high level of discretionary income.
Family life cycle stages
3. Full nest 1: young married couples with youngest child under 6 years of age.
There would be greater squeezes on income because of increased on childcare.
However, if they are members of a joint family, the level of flexible income is
likely to be high.
4. Full nest 2: young married couples with children from 6 years to 12 years of
age. Better financial position because income of both parents rising. Children
spend more hours outside their parents influence.
5. Full nest 3: older married couples with dependent teenage children living at
home. Financial position of family continues to improve. There are increasing costs
of college education for children.
Family life cycle stages
6. Empty nest 4: older married couples with no children living with
them, parents still employed. Reduced expenses result in greater
savings and highest discretionary income.
7. Empty nest 5: older married couples with no children living with
them and parents retired. Drop in income and couple relies on savings
and fixed income from retirement benefits.
8. Solitary survivor 6: older single persons with low income and
increasing medical needs.
Family and Marketing Strategy
? Use the FLC for segmentation and positioning
? Recognize the diverse consumption roles within the
family
? Understand and use the dynamics of husband-wife
decision making
? Understand and use the consumer socialization role
played by the family
? Recognize the changing nature of Canadian families.
The Power of Reference Groups
Social
Power
Referent
Power
Legitimate
Power
Information
Power
Expert
Power
Coercive
Power
Reward
Power
Types of
Reference
Group Power
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
Here's the comparison of India, China, and United
States on the basis of Hofstede's cultural
dimensions.
? Developing right competencies
? Once we understand the various facets of a national culture, then we
need to develop the right competencies to equip a business leader
with the right frame of mind, attitude, and skills to feel comfortable
and business-ready in the host culture.
Groups
? Groups exist in every formal and informal type of organisations. Such
groups are created by the members for its satisfaction. Very often
groups get formed automatically because of the operation of various
socio psychological factors. Such groups affect the behaviour of its
members.
Meaning of Group:
? Marvin E. Shaw has defined groups as ?two or more persons who are
interacting with one another in a such a manner that each person
influences and influenced by each other?
? Clouis R. Shepherd defines groups as ?A group may be defined as the
aggregation of small number of persons who work for common goals,
develop a shared attitudes and are aware that they are part of a
group and perceive themselves as such?.
Characteristics of Groups :
? 1. Two or more persons: To form a group there should be atleast two persons,
because a single individual cannot interact. Though no maximum limits have been set,
the size of the group should be such so as to allow meaningful interaction among the
members of group.
? 2. Collective identity: Each member of the group must believe that he is member of
the group and also be aware of his participation in the group activity. For instance a
group of boys are room-mates staying together in the hostel. Though they may not be
studying in the same class but because of their identity of room-mates they would prefer
to go out together for shopping.
? 3. Interaction: Members of the group will interact with each other. Though it is not
necessary for all members of the group to interact simultaneously but each member
must atleast occasionally interact with the members of the group.
? 4. Shared goal interest: Members of the group should concur to the attainment of
objectives each one must atleast share one of the groups concerns
The changing structure of family
? Basic functions provided by the family are particularly relevant to a
discussion of consumer behavior.
? These include:
? ? Economic well being
? ? Emotional support
? ? Suitable family lifestyles
Emotional well-being
? Although families in the affluent nations of North America, Europe
and Asia are no longer formed primarily for economic security,
providing financial means to its dependents unquestionably a basic
family function. How the family divides its responsibilities for
providing economic well-being has changed considerably during past
30 years. No longer are traditional husband as economic provider and
wife as home maker and child-rearer still valid.
? Emotional support
? The provision of emotional nourishment (including love, affection,
and intimacy) to its members is an important core function of the
contemporary family. In fulfilling this function, the family provides
support and encouragement and assists its members in coping with
decision making and with personal or social problems. To make it
easier for working parents to show their love, affection, and support
to their children, greeting card companies have been increasingly
creating cards for parents to give to their children (vice versa)
? Suitable family lifestyle
? Another important family function in terms of consumer behavior is
the establishment of a suitable lifestyle for the family. Upbringing,
experience, and the personal and jointly held goals of the spouses
determine the importance placed on education or career, on reading,
on television viewing, on the learning of computer skills, on the
frequency quality of dining out, and on the selection of other
entertainment and recreational activities.
? Family lifestyle commitments, including the allocation of time, are
generally influencing consumption patterns.
Family decision making and consumption-
related roles
? When two or more family members are directly or indirectly involved
in the decision making process, it is called family decision making.
Such family decisions differs from individuals decisions in many ways.
For example, if we consider the purchase of a bicycle for a child, some
of the relevant aspects to think about can be: who recognizes the
need for bicycle? How a brand is selected? What role the concerned
child plays?
? Joint decisions are more likely to operate in the early stages of
family life cycle when both spouses are relatively less experienced.
After gaining experience, they usually delegate responsibilities
concerning buying decisions to each other.
Key family consumption roles
? For?a?family?to?function?as?a?cohesive?unit,?tasks?such?as?doing?the?laundry,?
preparing?meals,?setting?the?dinner?table,?taking?out?the?garbage,?and?
walking?the?dog?must?be?carried?out?by?one?or?more?family?members.?In?a?
dynamic?society,?family?related?duties?are?constantly?changing?however,?
we?can?identify?either?distinct?roles?in?the?family?decision?making?process.
? ?For?example,?a?family?member?may?be?walking?down?the?cookie?aisle?at?a?
local?supermarket?when?she?picks?out?an?interesting?new?fat-free?cookie.?
Her?selection?does?not?directly?involve?the?influence?of?other?family?
members.?She?is?the?decider,?the?buyer?and,?in?a?sense,?the?gatekeeper,?
however,?she?may?not?be?the?sole?consumer.?Products?may?be?consumed?
by?a?single?family?member,?consumed?or?used?directly?by?two?or?more?
family?members,?or?consumed?indirectly?by?the?entire?family.
Dynamics of husband-wife decision making
? Marketers?are?interested?in?the?relative?amount?of?influence?that?a?
husband?and?a?wife?have?when?it?comes?to?family?consumption?
choices.?The?relative?influence?of?husbands?and?wives?can?be?
classified?as:?husband?dominated,?wife?dominated,?joint,?and?
autonomic.
? ?The?relative?influence?of?a?husband?and?wife?on?a?particular?
consumer?decisions?depends?in?part?on?the?product?and?service?
category.?For?instance,?during?1950s,?the?purchase?of?a?new?
automobile?was?strongly?husband?dominated,?whereas?food?and?
financial?banking?decisions?more?often?were?wife?dominated.?Fifty?
years?later,?the?purchase?of?the?family?s?principal?automobile?is?still?
often?husbands?dominated?in?many?households.?
? Husband wife decision making also appears to be related to cultural
influence. Research comparing husband wife decision making
patterns in the people?s republic of china and in the United States
revels that among Chinese there were substantially fewer ?joint?
decisions and more ?husband dominated? decisions for many
household purchases.
? However, when limiting the comparison to urban and rural Chinese
households, the research showed that in a large city such as Beijing,
married couples were more likely than rural couples to share equally
in purchase decisions. Still further, because of china?s ?one child?
policy and the ensuring custom of treating a single child as a ?little
emperor?, many of the parents purchase decisions are influenced by
the input of their child.
? In another recent cross-culture study, husband-wife decision making
was studied among three groups: Asian Indians living in India, Asian
Indians living in the United States, and American nationals. Results
show a decrease in husband decisions and an increase in wife
dominated decisions, going from Asian Indians in India, to Asian
Indians in the United States, to American nationals. This pattern
seems to indicate the impact of assimilation on decision making.
The expanding role of children in the family
decision making
? Over the past several decades, there has been a trend toward
children playing a more active role in what the family buys, as well as
in the family decision making process.
? This shift in influence has occurred as a result of families having fewer
children, more dual income couples who can afford to permit their
children to make greater number of the choices.
? Also the single parent households often push their children toward
household participation and self reliance.
? For example kids in supermarkets with a parent make an average of
15 requests, of which about half are typically granted.
? The table shows some of the tactics employed by children to
influence their parents.
Tactics used by children to influence their parents
? Pressure tactics
The child makes demand uses threats, or intimidation to persuade you to
comply with his /her request
? Upward appeal
The child seeks to influence you, saying that the request was approved or
supported by an older member of the family, a teacher, or a family friend
? Exchange tactics
The child makes an explicit or implicit promise to give you some sort of
service such as washing the car in return for the favour
? Coalition tactics
The child seeks the aid of others to persuade you to comply with his /her
request or uses the support of others as an argument for you to agree with
him/her
? Ingratiating tactics
The child seeks to get you in a good mood or think favourably of him or
her before asking you to comply with a request.
? Rational persuasion
The child uses logical arguments and factual evidence to persuade you
to agree with his/her request
? Inspirational appeals
The child makes an emotional appeal or proposal that arouses
enthusiasm by appealing to your values and ideas
? Consultation tactics
The child seeks your involvement in making a decision
Family life cycle stages
? The concept of household or family life cycle is important for marketers in
segmenting the market. In 1966, William wells and George Gubar proposed eight
stages to describe the family life cycle.
? The following life cycle stages are typical of families:
1. The bachelor stage: young, single person under age of 35 years. Incomes
are generally low since they have started careers, but they may have few financial
burdens and sufficient discretionary income.
2. Newly married: young couples, no children. If both are employed, they will
have high level of discretionary income.
Family life cycle stages
3. Full nest 1: young married couples with youngest child under 6 years of age.
There would be greater squeezes on income because of increased on childcare.
However, if they are members of a joint family, the level of flexible income is
likely to be high.
4. Full nest 2: young married couples with children from 6 years to 12 years of
age. Better financial position because income of both parents rising. Children
spend more hours outside their parents influence.
5. Full nest 3: older married couples with dependent teenage children living at
home. Financial position of family continues to improve. There are increasing costs
of college education for children.
Family life cycle stages
6. Empty nest 4: older married couples with no children living with
them, parents still employed. Reduced expenses result in greater
savings and highest discretionary income.
7. Empty nest 5: older married couples with no children living with
them and parents retired. Drop in income and couple relies on savings
and fixed income from retirement benefits.
8. Solitary survivor 6: older single persons with low income and
increasing medical needs.
Family and Marketing Strategy
? Use the FLC for segmentation and positioning
? Recognize the diverse consumption roles within the
family
? Understand and use the dynamics of husband-wife
decision making
? Understand and use the consumer socialization role
played by the family
? Recognize the changing nature of Canadian families.
The Power of Reference Groups
Social
Power
Referent
Power
Legitimate
Power
Information
Power
Expert
Power
Coercive
Power
Reward
Power
Types of
Reference
Group Power
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
Here's the comparison of India, China, and United
States on the basis of Hofstede's cultural
dimensions.
? Developing right competencies
? Once we understand the various facets of a national culture, then we
need to develop the right competencies to equip a business leader
with the right frame of mind, attitude, and skills to feel comfortable
and business-ready in the host culture.
Groups
? Groups exist in every formal and informal type of organisations. Such
groups are created by the members for its satisfaction. Very often
groups get formed automatically because of the operation of various
socio psychological factors. Such groups affect the behaviour of its
members.
Meaning of Group:
? Marvin E. Shaw has defined groups as ?two or more persons who are
interacting with one another in a such a manner that each person
influences and influenced by each other?
? Clouis R. Shepherd defines groups as ?A group may be defined as the
aggregation of small number of persons who work for common goals,
develop a shared attitudes and are aware that they are part of a
group and perceive themselves as such?.
Characteristics of Groups :
? 1. Two or more persons: To form a group there should be atleast two persons,
because a single individual cannot interact. Though no maximum limits have been set,
the size of the group should be such so as to allow meaningful interaction among the
members of group.
? 2. Collective identity: Each member of the group must believe that he is member of
the group and also be aware of his participation in the group activity. For instance a
group of boys are room-mates staying together in the hostel. Though they may not be
studying in the same class but because of their identity of room-mates they would prefer
to go out together for shopping.
? 3. Interaction: Members of the group will interact with each other. Though it is not
necessary for all members of the group to interact simultaneously but each member
must atleast occasionally interact with the members of the group.
? 4. Shared goal interest: Members of the group should concur to the attainment of
objectives each one must atleast share one of the groups concerns
The changing structure of family
? Basic functions provided by the family are particularly relevant to a
discussion of consumer behavior.
? These include:
? ? Economic well being
? ? Emotional support
? ? Suitable family lifestyles
Emotional well-being
? Although families in the affluent nations of North America, Europe
and Asia are no longer formed primarily for economic security,
providing financial means to its dependents unquestionably a basic
family function. How the family divides its responsibilities for
providing economic well-being has changed considerably during past
30 years. No longer are traditional husband as economic provider and
wife as home maker and child-rearer still valid.
? Emotional support
? The provision of emotional nourishment (including love, affection,
and intimacy) to its members is an important core function of the
contemporary family. In fulfilling this function, the family provides
support and encouragement and assists its members in coping with
decision making and with personal or social problems. To make it
easier for working parents to show their love, affection, and support
to their children, greeting card companies have been increasingly
creating cards for parents to give to their children (vice versa)
? Suitable family lifestyle
? Another important family function in terms of consumer behavior is
the establishment of a suitable lifestyle for the family. Upbringing,
experience, and the personal and jointly held goals of the spouses
determine the importance placed on education or career, on reading,
on television viewing, on the learning of computer skills, on the
frequency quality of dining out, and on the selection of other
entertainment and recreational activities.
? Family lifestyle commitments, including the allocation of time, are
generally influencing consumption patterns.
Family decision making and consumption-
related roles
? When two or more family members are directly or indirectly involved
in the decision making process, it is called family decision making.
Such family decisions differs from individuals decisions in many ways.
For example, if we consider the purchase of a bicycle for a child, some
of the relevant aspects to think about can be: who recognizes the
need for bicycle? How a brand is selected? What role the concerned
child plays?
? Joint decisions are more likely to operate in the early stages of
family life cycle when both spouses are relatively less experienced.
After gaining experience, they usually delegate responsibilities
concerning buying decisions to each other.
Key family consumption roles
? For?a?family?to?function?as?a?cohesive?unit,?tasks?such?as?doing?the?laundry,?
preparing?meals,?setting?the?dinner?table,?taking?out?the?garbage,?and?
walking?the?dog?must?be?carried?out?by?one?or?more?family?members.?In?a?
dynamic?society,?family?related?duties?are?constantly?changing?however,?
we?can?identify?either?distinct?roles?in?the?family?decision?making?process.
? ?For?example,?a?family?member?may?be?walking?down?the?cookie?aisle?at?a?
local?supermarket?when?she?picks?out?an?interesting?new?fat-free?cookie.?
Her?selection?does?not?directly?involve?the?influence?of?other?family?
members.?She?is?the?decider,?the?buyer?and,?in?a?sense,?the?gatekeeper,?
however,?she?may?not?be?the?sole?consumer.?Products?may?be?consumed?
by?a?single?family?member,?consumed?or?used?directly?by?two?or?more?
family?members,?or?consumed?indirectly?by?the?entire?family.
Dynamics of husband-wife decision making
? Marketers?are?interested?in?the?relative?amount?of?influence?that?a?
husband?and?a?wife?have?when?it?comes?to?family?consumption?
choices.?The?relative?influence?of?husbands?and?wives?can?be?
classified?as:?husband?dominated,?wife?dominated,?joint,?and?
autonomic.
? ?The?relative?influence?of?a?husband?and?wife?on?a?particular?
consumer?decisions?depends?in?part?on?the?product?and?service?
category.?For?instance,?during?1950s,?the?purchase?of?a?new?
automobile?was?strongly?husband?dominated,?whereas?food?and?
financial?banking?decisions?more?often?were?wife?dominated.?Fifty?
years?later,?the?purchase?of?the?family?s?principal?automobile?is?still?
often?husbands?dominated?in?many?households.?
? Husband wife decision making also appears to be related to cultural
influence. Research comparing husband wife decision making
patterns in the people?s republic of china and in the United States
revels that among Chinese there were substantially fewer ?joint?
decisions and more ?husband dominated? decisions for many
household purchases.
? However, when limiting the comparison to urban and rural Chinese
households, the research showed that in a large city such as Beijing,
married couples were more likely than rural couples to share equally
in purchase decisions. Still further, because of china?s ?one child?
policy and the ensuring custom of treating a single child as a ?little
emperor?, many of the parents purchase decisions are influenced by
the input of their child.
? In another recent cross-culture study, husband-wife decision making
was studied among three groups: Asian Indians living in India, Asian
Indians living in the United States, and American nationals. Results
show a decrease in husband decisions and an increase in wife
dominated decisions, going from Asian Indians in India, to Asian
Indians in the United States, to American nationals. This pattern
seems to indicate the impact of assimilation on decision making.
The expanding role of children in the family
decision making
? Over the past several decades, there has been a trend toward
children playing a more active role in what the family buys, as well as
in the family decision making process.
? This shift in influence has occurred as a result of families having fewer
children, more dual income couples who can afford to permit their
children to make greater number of the choices.
? Also the single parent households often push their children toward
household participation and self reliance.
? For example kids in supermarkets with a parent make an average of
15 requests, of which about half are typically granted.
? The table shows some of the tactics employed by children to
influence their parents.
Tactics used by children to influence their parents
? Pressure tactics
The child makes demand uses threats, or intimidation to persuade you to
comply with his /her request
? Upward appeal
The child seeks to influence you, saying that the request was approved or
supported by an older member of the family, a teacher, or a family friend
? Exchange tactics
The child makes an explicit or implicit promise to give you some sort of
service such as washing the car in return for the favour
? Coalition tactics
The child seeks the aid of others to persuade you to comply with his /her
request or uses the support of others as an argument for you to agree with
him/her
? Ingratiating tactics
The child seeks to get you in a good mood or think favourably of him or
her before asking you to comply with a request.
? Rational persuasion
The child uses logical arguments and factual evidence to persuade you
to agree with his/her request
? Inspirational appeals
The child makes an emotional appeal or proposal that arouses
enthusiasm by appealing to your values and ideas
? Consultation tactics
The child seeks your involvement in making a decision
Family life cycle stages
? The concept of household or family life cycle is important for marketers in
segmenting the market. In 1966, William wells and George Gubar proposed eight
stages to describe the family life cycle.
? The following life cycle stages are typical of families:
1. The bachelor stage: young, single person under age of 35 years. Incomes
are generally low since they have started careers, but they may have few financial
burdens and sufficient discretionary income.
2. Newly married: young couples, no children. If both are employed, they will
have high level of discretionary income.
Family life cycle stages
3. Full nest 1: young married couples with youngest child under 6 years of age.
There would be greater squeezes on income because of increased on childcare.
However, if they are members of a joint family, the level of flexible income is
likely to be high.
4. Full nest 2: young married couples with children from 6 years to 12 years of
age. Better financial position because income of both parents rising. Children
spend more hours outside their parents influence.
5. Full nest 3: older married couples with dependent teenage children living at
home. Financial position of family continues to improve. There are increasing costs
of college education for children.
Family life cycle stages
6. Empty nest 4: older married couples with no children living with
them, parents still employed. Reduced expenses result in greater
savings and highest discretionary income.
7. Empty nest 5: older married couples with no children living with
them and parents retired. Drop in income and couple relies on savings
and fixed income from retirement benefits.
8. Solitary survivor 6: older single persons with low income and
increasing medical needs.
Family and Marketing Strategy
? Use the FLC for segmentation and positioning
? Recognize the diverse consumption roles within the
family
? Understand and use the dynamics of husband-wife
decision making
? Understand and use the consumer socialization role
played by the family
? Recognize the changing nature of Canadian families.
The Power of Reference Groups
Social
Power
Referent
Power
Legitimate
Power
Information
Power
Expert
Power
Coercive
Power
Reward
Power
Types of
Reference
Group Power
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
Here's the comparison of India, China, and United
States on the basis of Hofstede's cultural
dimensions.
? Developing right competencies
? Once we understand the various facets of a national culture, then we
need to develop the right competencies to equip a business leader
with the right frame of mind, attitude, and skills to feel comfortable
and business-ready in the host culture.
Groups
? Groups exist in every formal and informal type of organisations. Such
groups are created by the members for its satisfaction. Very often
groups get formed automatically because of the operation of various
socio psychological factors. Such groups affect the behaviour of its
members.
Meaning of Group:
? Marvin E. Shaw has defined groups as ?two or more persons who are
interacting with one another in a such a manner that each person
influences and influenced by each other?
? Clouis R. Shepherd defines groups as ?A group may be defined as the
aggregation of small number of persons who work for common goals,
develop a shared attitudes and are aware that they are part of a
group and perceive themselves as such?.
Characteristics of Groups :
? 1. Two or more persons: To form a group there should be atleast two persons,
because a single individual cannot interact. Though no maximum limits have been set,
the size of the group should be such so as to allow meaningful interaction among the
members of group.
? 2. Collective identity: Each member of the group must believe that he is member of
the group and also be aware of his participation in the group activity. For instance a
group of boys are room-mates staying together in the hostel. Though they may not be
studying in the same class but because of their identity of room-mates they would prefer
to go out together for shopping.
? 3. Interaction: Members of the group will interact with each other. Though it is not
necessary for all members of the group to interact simultaneously but each member
must atleast occasionally interact with the members of the group.
? 4. Shared goal interest: Members of the group should concur to the attainment of
objectives each one must atleast share one of the groups concerns
The changing structure of family
? Basic functions provided by the family are particularly relevant to a
discussion of consumer behavior.
? These include:
? ? Economic well being
? ? Emotional support
? ? Suitable family lifestyles
Emotional well-being
? Although families in the affluent nations of North America, Europe
and Asia are no longer formed primarily for economic security,
providing financial means to its dependents unquestionably a basic
family function. How the family divides its responsibilities for
providing economic well-being has changed considerably during past
30 years. No longer are traditional husband as economic provider and
wife as home maker and child-rearer still valid.
? Emotional support
? The provision of emotional nourishment (including love, affection,
and intimacy) to its members is an important core function of the
contemporary family. In fulfilling this function, the family provides
support and encouragement and assists its members in coping with
decision making and with personal or social problems. To make it
easier for working parents to show their love, affection, and support
to their children, greeting card companies have been increasingly
creating cards for parents to give to their children (vice versa)
? Suitable family lifestyle
? Another important family function in terms of consumer behavior is
the establishment of a suitable lifestyle for the family. Upbringing,
experience, and the personal and jointly held goals of the spouses
determine the importance placed on education or career, on reading,
on television viewing, on the learning of computer skills, on the
frequency quality of dining out, and on the selection of other
entertainment and recreational activities.
? Family lifestyle commitments, including the allocation of time, are
generally influencing consumption patterns.
Family decision making and consumption-
related roles
? When two or more family members are directly or indirectly involved
in the decision making process, it is called family decision making.
Such family decisions differs from individuals decisions in many ways.
For example, if we consider the purchase of a bicycle for a child, some
of the relevant aspects to think about can be: who recognizes the
need for bicycle? How a brand is selected? What role the concerned
child plays?
? Joint decisions are more likely to operate in the early stages of
family life cycle when both spouses are relatively less experienced.
After gaining experience, they usually delegate responsibilities
concerning buying decisions to each other.
Key family consumption roles
? For?a?family?to?function?as?a?cohesive?unit,?tasks?such?as?doing?the?laundry,?
preparing?meals,?setting?the?dinner?table,?taking?out?the?garbage,?and?
walking?the?dog?must?be?carried?out?by?one?or?more?family?members.?In?a?
dynamic?society,?family?related?duties?are?constantly?changing?however,?
we?can?identify?either?distinct?roles?in?the?family?decision?making?process.
? ?For?example,?a?family?member?may?be?walking?down?the?cookie?aisle?at?a?
local?supermarket?when?she?picks?out?an?interesting?new?fat-free?cookie.?
Her?selection?does?not?directly?involve?the?influence?of?other?family?
members.?She?is?the?decider,?the?buyer?and,?in?a?sense,?the?gatekeeper,?
however,?she?may?not?be?the?sole?consumer.?Products?may?be?consumed?
by?a?single?family?member,?consumed?or?used?directly?by?two?or?more?
family?members,?or?consumed?indirectly?by?the?entire?family.
Dynamics of husband-wife decision making
? Marketers?are?interested?in?the?relative?amount?of?influence?that?a?
husband?and?a?wife?have?when?it?comes?to?family?consumption?
choices.?The?relative?influence?of?husbands?and?wives?can?be?
classified?as:?husband?dominated,?wife?dominated,?joint,?and?
autonomic.
? ?The?relative?influence?of?a?husband?and?wife?on?a?particular?
consumer?decisions?depends?in?part?on?the?product?and?service?
category.?For?instance,?during?1950s,?the?purchase?of?a?new?
automobile?was?strongly?husband?dominated,?whereas?food?and?
financial?banking?decisions?more?often?were?wife?dominated.?Fifty?
years?later,?the?purchase?of?the?family?s?principal?automobile?is?still?
often?husbands?dominated?in?many?households.?
? Husband wife decision making also appears to be related to cultural
influence. Research comparing husband wife decision making
patterns in the people?s republic of china and in the United States
revels that among Chinese there were substantially fewer ?joint?
decisions and more ?husband dominated? decisions for many
household purchases.
? However, when limiting the comparison to urban and rural Chinese
households, the research showed that in a large city such as Beijing,
married couples were more likely than rural couples to share equally
in purchase decisions. Still further, because of china?s ?one child?
policy and the ensuring custom of treating a single child as a ?little
emperor?, many of the parents purchase decisions are influenced by
the input of their child.
? In another recent cross-culture study, husband-wife decision making
was studied among three groups: Asian Indians living in India, Asian
Indians living in the United States, and American nationals. Results
show a decrease in husband decisions and an increase in wife
dominated decisions, going from Asian Indians in India, to Asian
Indians in the United States, to American nationals. This pattern
seems to indicate the impact of assimilation on decision making.
The expanding role of children in the family
decision making
? Over the past several decades, there has been a trend toward
children playing a more active role in what the family buys, as well as
in the family decision making process.
? This shift in influence has occurred as a result of families having fewer
children, more dual income couples who can afford to permit their
children to make greater number of the choices.
? Also the single parent households often push their children toward
household participation and self reliance.
? For example kids in supermarkets with a parent make an average of
15 requests, of which about half are typically granted.
? The table shows some of the tactics employed by children to
influence their parents.
Tactics used by children to influence their parents
? Pressure tactics
The child makes demand uses threats, or intimidation to persuade you to
comply with his /her request
? Upward appeal
The child seeks to influence you, saying that the request was approved or
supported by an older member of the family, a teacher, or a family friend
? Exchange tactics
The child makes an explicit or implicit promise to give you some sort of
service such as washing the car in return for the favour
? Coalition tactics
The child seeks the aid of others to persuade you to comply with his /her
request or uses the support of others as an argument for you to agree with
him/her
? Ingratiating tactics
The child seeks to get you in a good mood or think favourably of him or
her before asking you to comply with a request.
? Rational persuasion
The child uses logical arguments and factual evidence to persuade you
to agree with his/her request
? Inspirational appeals
The child makes an emotional appeal or proposal that arouses
enthusiasm by appealing to your values and ideas
? Consultation tactics
The child seeks your involvement in making a decision
Family life cycle stages
? The concept of household or family life cycle is important for marketers in
segmenting the market. In 1966, William wells and George Gubar proposed eight
stages to describe the family life cycle.
? The following life cycle stages are typical of families:
1. The bachelor stage: young, single person under age of 35 years. Incomes
are generally low since they have started careers, but they may have few financial
burdens and sufficient discretionary income.
2. Newly married: young couples, no children. If both are employed, they will
have high level of discretionary income.
Family life cycle stages
3. Full nest 1: young married couples with youngest child under 6 years of age.
There would be greater squeezes on income because of increased on childcare.
However, if they are members of a joint family, the level of flexible income is
likely to be high.
4. Full nest 2: young married couples with children from 6 years to 12 years of
age. Better financial position because income of both parents rising. Children
spend more hours outside their parents influence.
5. Full nest 3: older married couples with dependent teenage children living at
home. Financial position of family continues to improve. There are increasing costs
of college education for children.
Family life cycle stages
6. Empty nest 4: older married couples with no children living with
them, parents still employed. Reduced expenses result in greater
savings and highest discretionary income.
7. Empty nest 5: older married couples with no children living with
them and parents retired. Drop in income and couple relies on savings
and fixed income from retirement benefits.
8. Solitary survivor 6: older single persons with low income and
increasing medical needs.
Family and Marketing Strategy
? Use the FLC for segmentation and positioning
? Recognize the diverse consumption roles within the
family
? Understand and use the dynamics of husband-wife
decision making
? Understand and use the consumer socialization role
played by the family
? Recognize the changing nature of Canadian families.
The Power of Reference Groups
Social
Power
Referent
Power
Legitimate
Power
Information
Power
Expert
Power
Coercive
Power
Reward
Power
Types of
Reference
Group Power
FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
Here's the comparison of India, China, and United
States on the basis of Hofstede's cultural
dimensions.
? Developing right competencies
? Once we understand the various facets of a national culture, then we
need to develop the right competencies to equip a business leader
with the right frame of mind, attitude, and skills to feel comfortable
and business-ready in the host culture.
Groups
? Groups exist in every formal and informal type of organisations. Such
groups are created by the members for its satisfaction. Very often
groups get formed automatically because of the operation of various
socio psychological factors. Such groups affect the behaviour of its
members.
Meaning of Group:
? Marvin E. Shaw has defined groups as ?two or more persons who are
interacting with one another in a such a manner that each person
influences and influenced by each other?
? Clouis R. Shepherd defines groups as ?A group may be defined as the
aggregation of small number of persons who work for common goals,
develop a shared attitudes and are aware that they are part of a
group and perceive themselves as such?.
Characteristics of Groups :
? 1. Two or more persons: To form a group there should be atleast two persons,
because a single individual cannot interact. Though no maximum limits have been set,
the size of the group should be such so as to allow meaningful interaction among the
members of group.
? 2. Collective identity: Each member of the group must believe that he is member of
the group and also be aware of his participation in the group activity. For instance a
group of boys are room-mates staying together in the hostel. Though they may not be
studying in the same class but because of their identity of room-mates they would prefer
to go out together for shopping.
? 3. Interaction: Members of the group will interact with each other. Though it is not
necessary for all members of the group to interact simultaneously but each member
must atleast occasionally interact with the members of the group.
? 4. Shared goal interest: Members of the group should concur to the attainment of
objectives each one must atleast share one of the groups concerns
The changing structure of family
? Basic functions provided by the family are particularly relevant to a
discussion of consumer behavior.
? These include:
? ? Economic well being
? ? Emotional support
? ? Suitable family lifestyles
Emotional well-being
? Although families in the affluent nations of North America, Europe
and Asia are no longer formed primarily for economic security,
providing financial means to its dependents unquestionably a basic
family function. How the family divides its responsibilities for
providing economic well-being has changed considerably during past
30 years. No longer are traditional husband as economic provider and
wife as home maker and child-rearer still valid.
? Emotional support
? The provision of emotional nourishment (including love, affection,
and intimacy) to its members is an important core function of the
contemporary family. In fulfilling this function, the family provides
support and encouragement and assists its members in coping with
decision making and with personal or social problems. To make it
easier for working parents to show their love, affection, and support
to their children, greeting card companies have been increasingly
creating cards for parents to give to their children (vice versa)
? Suitable family lifestyle
? Another important family function in terms of consumer behavior is
the establishment of a suitable lifestyle for the family. Upbringing,
experience, and the personal and jointly held goals of the spouses
determine the importance placed on education or career, on reading,
on television viewing, on the learning of computer skills, on the
frequency quality of dining out, and on the selection of other
entertainment and recreational activities.
? Family lifestyle commitments, including the allocation of time, are
generally influencing consumption patterns.
Family decision making and consumption-
related roles
? When two or more family members are directly or indirectly involved
in the decision making process, it is called family decision making.
Such family decisions differs from individuals decisions in many ways.
For example, if we consider the purchase of a bicycle for a child, some
of the relevant aspects to think about can be: who recognizes the
need for bicycle? How a brand is selected? What role the concerned
child plays?
? Joint decisions are more likely to operate in the early stages of
family life cycle when both spouses are relatively less experienced.
After gaining experience, they usually delegate responsibilities
concerning buying decisions to each other.
Key family consumption roles
? For?a?family?to?function?as?a?cohesive?unit,?tasks?such?as?doing?the?laundry,?
preparing?meals,?setting?the?dinner?table,?taking?out?the?garbage,?and?
walking?the?dog?must?be?carried?out?by?one?or?more?family?members.?In?a?
dynamic?society,?family?related?duties?are?constantly?changing?however,?
we?can?identify?either?distinct?roles?in?the?family?decision?making?process.
? ?For?example,?a?family?member?may?be?walking?down?the?cookie?aisle?at?a?
local?supermarket?when?she?picks?out?an?interesting?new?fat-free?cookie.?
Her?selection?does?not?directly?involve?the?influence?of?other?family?
members.?She?is?the?decider,?the?buyer?and,?in?a?sense,?the?gatekeeper,?
however,?she?may?not?be?the?sole?consumer.?Products?may?be?consumed?
by?a?single?family?member,?consumed?or?used?directly?by?two?or?more?
family?members,?or?consumed?indirectly?by?the?entire?family.
Dynamics of husband-wife decision making
? Marketers?are?interested?in?the?relative?amount?of?influence?that?a?
husband?and?a?wife?have?when?it?comes?to?family?consumption?
choices.?The?relative?influence?of?husbands?and?wives?can?be?
classified?as:?husband?dominated,?wife?dominated,?joint,?and?
autonomic.
? ?The?relative?influence?of?a?husband?and?wife?on?a?particular?
consumer?decisions?depends?in?part?on?the?product?and?service?
category.?For?instance,?during?1950s,?the?purchase?of?a?new?
automobile?was?strongly?husband?dominated,?whereas?food?and?
financial?banking?decisions?more?often?were?wife?dominated.?Fifty?
years?later,?the?purchase?of?the?family?s?principal?automobile?is?still?
often?husbands?dominated?in?many?households.?
? Husband wife decision making also appears to be related to cultural
influence. Research comparing husband wife decision making
patterns in the people?s republic of china and in the United States
revels that among Chinese there were substantially fewer ?joint?
decisions and more ?husband dominated? decisions for many
household purchases.
? However, when limiting the comparison to urban and rural Chinese
households, the research showed that in a large city such as Beijing,
married couples were more likely than rural couples to share equally
in purchase decisions. Still further, because of china?s ?one child?
policy and the ensuring custom of treating a single child as a ?little
emperor?, many of the parents purchase decisions are influenced by
the input of their child.
? In another recent cross-culture study, husband-wife decision making
was studied among three groups: Asian Indians living in India, Asian
Indians living in the United States, and American nationals. Results
show a decrease in husband decisions and an increase in wife
dominated decisions, going from Asian Indians in India, to Asian
Indians in the United States, to American nationals. This pattern
seems to indicate the impact of assimilation on decision making.
The expanding role of children in the family
decision making
? Over the past several decades, there has been a trend toward
children playing a more active role in what the family buys, as well as
in the family decision making process.
? This shift in influence has occurred as a result of families having fewer
children, more dual income couples who can afford to permit their
children to make greater number of the choices.
? Also the single parent households often push their children toward
household participation and self reliance.
? For example kids in supermarkets with a parent make an average of
15 requests, of which about half are typically granted.
? The table shows some of the tactics employed by children to
influence their parents.
Tactics used by children to influence their parents
? Pressure tactics
The child makes demand uses threats, or intimidation to persuade you to
comply with his /her request
? Upward appeal
The child seeks to influence you, saying that the request was approved or
supported by an older member of the family, a teacher, or a family friend
? Exchange tactics
The child makes an explicit or implicit promise to give you some sort of
service such as washing the car in return for the favour
? Coalition tactics
The child seeks the aid of others to persuade you to comply with his /her
request or uses the support of others as an argument for you to agree with
him/her
? Ingratiating tactics
The child seeks to get you in a good mood or think favourably of him or
her before asking you to comply with a request.
? Rational persuasion
The child uses logical arguments and factual evidence to persuade you
to agree with his/her request
? Inspirational appeals
The child makes an emotional appeal or proposal that arouses
enthusiasm by appealing to your values and ideas
? Consultation tactics
The child seeks your involvement in making a decision
Family life cycle stages
? The concept of household or family life cycle is important for marketers in
segmenting the market. In 1966, William wells and George Gubar proposed eight
stages to describe the family life cycle.
? The following life cycle stages are typical of families:
1. The bachelor stage: young, single person under age of 35 years. Incomes
are generally low since they have started careers, but they may have few financial
burdens and sufficient discretionary income.
2. Newly married: young couples, no children. If both are employed, they will
have high level of discretionary income.
Family life cycle stages
3. Full nest 1: young married couples with youngest child under 6 years of age.
There would be greater squeezes on income because of increased on childcare.
However, if they are members of a joint family, the level of flexible income is
likely to be high.
4. Full nest 2: young married couples with children from 6 years to 12 years of
age. Better financial position because income of both parents rising. Children
spend more hours outside their parents influence.
5. Full nest 3: older married couples with dependent teenage children living at
home. Financial position of family continues to improve. There are increasing costs
of college education for children.
Family life cycle stages
6. Empty nest 4: older married couples with no children living with
them, parents still employed. Reduced expenses result in greater
savings and highest discretionary income.
7. Empty nest 5: older married couples with no children living with
them and parents retired. Drop in income and couple relies on savings
and fixed income from retirement benefits.
8. Solitary survivor 6: older single persons with low income and
increasing medical needs.
Family and Marketing Strategy
? Use the FLC for segmentation and positioning
? Recognize the diverse consumption roles within the
family
? Understand and use the dynamics of husband-wife
decision making
? Understand and use the consumer socialization role
played by the family
? Recognize the changing nature of Canadian families.
The Power of Reference Groups
Social
Power
Referent
Power
Legitimate
Power
Information
Power
Expert
Power
Coercive
Power
Reward
Power
Types of
Reference
Group Power

FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
Here's the comparison of India, China, and United
States on the basis of Hofstede's cultural
dimensions.
? Developing right competencies
? Once we understand the various facets of a national culture, then we
need to develop the right competencies to equip a business leader
with the right frame of mind, attitude, and skills to feel comfortable
and business-ready in the host culture.
Groups
? Groups exist in every formal and informal type of organisations. Such
groups are created by the members for its satisfaction. Very often
groups get formed automatically because of the operation of various
socio psychological factors. Such groups affect the behaviour of its
members.
Meaning of Group:
? Marvin E. Shaw has defined groups as ?two or more persons who are
interacting with one another in a such a manner that each person
influences and influenced by each other?
? Clouis R. Shepherd defines groups as ?A group may be defined as the
aggregation of small number of persons who work for common goals,
develop a shared attitudes and are aware that they are part of a
group and perceive themselves as such?.
Characteristics of Groups :
? 1. Two or more persons: To form a group there should be atleast two persons,
because a single individual cannot interact. Though no maximum limits have been set,
the size of the group should be such so as to allow meaningful interaction among the
members of group.
? 2. Collective identity: Each member of the group must believe that he is member of
the group and also be aware of his participation in the group activity. For instance a
group of boys are room-mates staying together in the hostel. Though they may not be
studying in the same class but because of their identity of room-mates they would prefer
to go out together for shopping.
? 3. Interaction: Members of the group will interact with each other. Though it is not
necessary for all members of the group to interact simultaneously but each member
must atleast occasionally interact with the members of the group.
? 4. Shared goal interest: Members of the group should concur to the attainment of
objectives each one must atleast share one of the groups concerns
The changing structure of family
? Basic functions provided by the family are particularly relevant to a
discussion of consumer behavior.
? These include:
? ? Economic well being
? ? Emotional support
? ? Suitable family lifestyles
Emotional well-being
? Although families in the affluent nations of North America, Europe
and Asia are no longer formed primarily for economic security,
providing financial means to its dependents unquestionably a basic
family function. How the family divides its responsibilities for
providing economic well-being has changed considerably during past
30 years. No longer are traditional husband as economic provider and
wife as home maker and child-rearer still valid.
? Emotional support
? The provision of emotional nourishment (including love, affection,
and intimacy) to its members is an important core function of the
contemporary family. In fulfilling this function, the family provides
support and encouragement and assists its members in coping with
decision making and with personal or social problems. To make it
easier for working parents to show their love, affection, and support
to their children, greeting card companies have been increasingly
creating cards for parents to give to their children (vice versa)
? Suitable family lifestyle
? Another important family function in terms of consumer behavior is
the establishment of a suitable lifestyle for the family. Upbringing,
experience, and the personal and jointly held goals of the spouses
determine the importance placed on education or career, on reading,
on television viewing, on the learning of computer skills, on the
frequency quality of dining out, and on the selection of other
entertainment and recreational activities.
? Family lifestyle commitments, including the allocation of time, are
generally influencing consumption patterns.
Family decision making and consumption-
related roles
? When two or more family members are directly or indirectly involved
in the decision making process, it is called family decision making.
Such family decisions differs from individuals decisions in many ways.
For example, if we consider the purchase of a bicycle for a child, some
of the relevant aspects to think about can be: who recognizes the
need for bicycle? How a brand is selected? What role the concerned
child plays?
? Joint decisions are more likely to operate in the early stages of
family life cycle when both spouses are relatively less experienced.
After gaining experience, they usually delegate responsibilities
concerning buying decisions to each other.
Key family consumption roles
? For?a?family?to?function?as?a?cohesive?unit,?tasks?such?as?doing?the?laundry,?
preparing?meals,?setting?the?dinner?table,?taking?out?the?garbage,?and?
walking?the?dog?must?be?carried?out?by?one?or?more?family?members.?In?a?
dynamic?society,?family?related?duties?are?constantly?changing?however,?
we?can?identify?either?distinct?roles?in?the?family?decision?making?process.
? ?For?example,?a?family?member?may?be?walking?down?the?cookie?aisle?at?a?
local?supermarket?when?she?picks?out?an?interesting?new?fat-free?cookie.?
Her?selection?does?not?directly?involve?the?influence?of?other?family?
members.?She?is?the?decider,?the?buyer?and,?in?a?sense,?the?gatekeeper,?
however,?she?may?not?be?the?sole?consumer.?Products?may?be?consumed?
by?a?single?family?member,?consumed?or?used?directly?by?two?or?more?
family?members,?or?consumed?indirectly?by?the?entire?family.
Dynamics of husband-wife decision making
? Marketers?are?interested?in?the?relative?amount?of?influence?that?a?
husband?and?a?wife?have?when?it?comes?to?family?consumption?
choices.?The?relative?influence?of?husbands?and?wives?can?be?
classified?as:?husband?dominated,?wife?dominated,?joint,?and?
autonomic.
? ?The?relative?influence?of?a?husband?and?wife?on?a?particular?
consumer?decisions?depends?in?part?on?the?product?and?service?
category.?For?instance,?during?1950s,?the?purchase?of?a?new?
automobile?was?strongly?husband?dominated,?whereas?food?and?
financial?banking?decisions?more?often?were?wife?dominated.?Fifty?
years?later,?the?purchase?of?the?family?s?principal?automobile?is?still?
often?husbands?dominated?in?many?households.?
? Husband wife decision making also appears to be related to cultural
influence. Research comparing husband wife decision making
patterns in the people?s republic of china and in the United States
revels that among Chinese there were substantially fewer ?joint?
decisions and more ?husband dominated? decisions for many
household purchases.
? However, when limiting the comparison to urban and rural Chinese
households, the research showed that in a large city such as Beijing,
married couples were more likely than rural couples to share equally
in purchase decisions. Still further, because of china?s ?one child?
policy and the ensuring custom of treating a single child as a ?little
emperor?, many of the parents purchase decisions are influenced by
the input of their child.
? In another recent cross-culture study, husband-wife decision making
was studied among three groups: Asian Indians living in India, Asian
Indians living in the United States, and American nationals. Results
show a decrease in husband decisions and an increase in wife
dominated decisions, going from Asian Indians in India, to Asian
Indians in the United States, to American nationals. This pattern
seems to indicate the impact of assimilation on decision making.
The expanding role of children in the family
decision making
? Over the past several decades, there has been a trend toward
children playing a more active role in what the family buys, as well as
in the family decision making process.
? This shift in influence has occurred as a result of families having fewer
children, more dual income couples who can afford to permit their
children to make greater number of the choices.
? Also the single parent households often push their children toward
household participation and self reliance.
? For example kids in supermarkets with a parent make an average of
15 requests, of which about half are typically granted.
? The table shows some of the tactics employed by children to
influence their parents.
Tactics used by children to influence their parents
? Pressure tactics
The child makes demand uses threats, or intimidation to persuade you to
comply with his /her request
? Upward appeal
The child seeks to influence you, saying that the request was approved or
supported by an older member of the family, a teacher, or a family friend
? Exchange tactics
The child makes an explicit or implicit promise to give you some sort of
service such as washing the car in return for the favour
? Coalition tactics
The child seeks the aid of others to persuade you to comply with his /her
request or uses the support of others as an argument for you to agree with
him/her
? Ingratiating tactics
The child seeks to get you in a good mood or think favourably of him or
her before asking you to comply with a request.
? Rational persuasion
The child uses logical arguments and factual evidence to persuade you
to agree with his/her request
? Inspirational appeals
The child makes an emotional appeal or proposal that arouses
enthusiasm by appealing to your values and ideas
? Consultation tactics
The child seeks your involvement in making a decision
Family life cycle stages
? The concept of household or family life cycle is important for marketers in
segmenting the market. In 1966, William wells and George Gubar proposed eight
stages to describe the family life cycle.
? The following life cycle stages are typical of families:
1. The bachelor stage: young, single person under age of 35 years. Incomes
are generally low since they have started careers, but they may have few financial
burdens and sufficient discretionary income.
2. Newly married: young couples, no children. If both are employed, they will
have high level of discretionary income.
Family life cycle stages
3. Full nest 1: young married couples with youngest child under 6 years of age.
There would be greater squeezes on income because of increased on childcare.
However, if they are members of a joint family, the level of flexible income is
likely to be high.
4. Full nest 2: young married couples with children from 6 years to 12 years of
age. Better financial position because income of both parents rising. Children
spend more hours outside their parents influence.
5. Full nest 3: older married couples with dependent teenage children living at
home. Financial position of family continues to improve. There are increasing costs
of college education for children.
Family life cycle stages
6. Empty nest 4: older married couples with no children living with
them, parents still employed. Reduced expenses result in greater
savings and highest discretionary income.
7. Empty nest 5: older married couples with no children living with
them and parents retired. Drop in income and couple relies on savings
and fixed income from retirement benefits.
8. Solitary survivor 6: older single persons with low income and
increasing medical needs.
Family and Marketing Strategy
? Use the FLC for segmentation and positioning
? Recognize the diverse consumption roles within the
family
? Understand and use the dynamics of husband-wife
decision making
? Understand and use the consumer socialization role
played by the family
? Recognize the changing nature of Canadian families.
The Power of Reference Groups
Social
Power
Referent
Power
Legitimate
Power
Information
Power
Expert
Power
Coercive
Power
Reward
Power
Types of
Reference
Group Power

FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
Here's the comparison of India, China, and United
States on the basis of Hofstede's cultural
dimensions.
? Developing right competencies
? Once we understand the various facets of a national culture, then we
need to develop the right competencies to equip a business leader
with the right frame of mind, attitude, and skills to feel comfortable
and business-ready in the host culture.
Groups
? Groups exist in every formal and informal type of organisations. Such
groups are created by the members for its satisfaction. Very often
groups get formed automatically because of the operation of various
socio psychological factors. Such groups affect the behaviour of its
members.
Meaning of Group:
? Marvin E. Shaw has defined groups as ?two or more persons who are
interacting with one another in a such a manner that each person
influences and influenced by each other?
? Clouis R. Shepherd defines groups as ?A group may be defined as the
aggregation of small number of persons who work for common goals,
develop a shared attitudes and are aware that they are part of a
group and perceive themselves as such?.
Characteristics of Groups :
? 1. Two or more persons: To form a group there should be atleast two persons,
because a single individual cannot interact. Though no maximum limits have been set,
the size of the group should be such so as to allow meaningful interaction among the
members of group.
? 2. Collective identity: Each member of the group must believe that he is member of
the group and also be aware of his participation in the group activity. For instance a
group of boys are room-mates staying together in the hostel. Though they may not be
studying in the same class but because of their identity of room-mates they would prefer
to go out together for shopping.
? 3. Interaction: Members of the group will interact with each other. Though it is not
necessary for all members of the group to interact simultaneously but each member
must atleast occasionally interact with the members of the group.
? 4. Shared goal interest: Members of the group should concur to the attainment of
objectives each one must atleast share one of the groups concerns
The changing structure of family
? Basic functions provided by the family are particularly relevant to a
discussion of consumer behavior.
? These include:
? ? Economic well being
? ? Emotional support
? ? Suitable family lifestyles
Emotional well-being
? Although families in the affluent nations of North America, Europe
and Asia are no longer formed primarily for economic security,
providing financial means to its dependents unquestionably a basic
family function. How the family divides its responsibilities for
providing economic well-being has changed considerably during past
30 years. No longer are traditional husband as economic provider and
wife as home maker and child-rearer still valid.
? Emotional support
? The provision of emotional nourishment (including love, affection,
and intimacy) to its members is an important core function of the
contemporary family. In fulfilling this function, the family provides
support and encouragement and assists its members in coping with
decision making and with personal or social problems. To make it
easier for working parents to show their love, affection, and support
to their children, greeting card companies have been increasingly
creating cards for parents to give to their children (vice versa)
? Suitable family lifestyle
? Another important family function in terms of consumer behavior is
the establishment of a suitable lifestyle for the family. Upbringing,
experience, and the personal and jointly held goals of the spouses
determine the importance placed on education or career, on reading,
on television viewing, on the learning of computer skills, on the
frequency quality of dining out, and on the selection of other
entertainment and recreational activities.
? Family lifestyle commitments, including the allocation of time, are
generally influencing consumption patterns.
Family decision making and consumption-
related roles
? When two or more family members are directly or indirectly involved
in the decision making process, it is called family decision making.
Such family decisions differs from individuals decisions in many ways.
For example, if we consider the purchase of a bicycle for a child, some
of the relevant aspects to think about can be: who recognizes the
need for bicycle? How a brand is selected? What role the concerned
child plays?
? Joint decisions are more likely to operate in the early stages of
family life cycle when both spouses are relatively less experienced.
After gaining experience, they usually delegate responsibilities
concerning buying decisions to each other.
Key family consumption roles
? For?a?family?to?function?as?a?cohesive?unit,?tasks?such?as?doing?the?laundry,?
preparing?meals,?setting?the?dinner?table,?taking?out?the?garbage,?and?
walking?the?dog?must?be?carried?out?by?one?or?more?family?members.?In?a?
dynamic?society,?family?related?duties?are?constantly?changing?however,?
we?can?identify?either?distinct?roles?in?the?family?decision?making?process.
? ?For?example,?a?family?member?may?be?walking?down?the?cookie?aisle?at?a?
local?supermarket?when?she?picks?out?an?interesting?new?fat-free?cookie.?
Her?selection?does?not?directly?involve?the?influence?of?other?family?
members.?She?is?the?decider,?the?buyer?and,?in?a?sense,?the?gatekeeper,?
however,?she?may?not?be?the?sole?consumer.?Products?may?be?consumed?
by?a?single?family?member,?consumed?or?used?directly?by?two?or?more?
family?members,?or?consumed?indirectly?by?the?entire?family.
Dynamics of husband-wife decision making
? Marketers?are?interested?in?the?relative?amount?of?influence?that?a?
husband?and?a?wife?have?when?it?comes?to?family?consumption?
choices.?The?relative?influence?of?husbands?and?wives?can?be?
classified?as:?husband?dominated,?wife?dominated,?joint,?and?
autonomic.
? ?The?relative?influence?of?a?husband?and?wife?on?a?particular?
consumer?decisions?depends?in?part?on?the?product?and?service?
category.?For?instance,?during?1950s,?the?purchase?of?a?new?
automobile?was?strongly?husband?dominated,?whereas?food?and?
financial?banking?decisions?more?often?were?wife?dominated.?Fifty?
years?later,?the?purchase?of?the?family?s?principal?automobile?is?still?
often?husbands?dominated?in?many?households.?
? Husband wife decision making also appears to be related to cultural
influence. Research comparing husband wife decision making
patterns in the people?s republic of china and in the United States
revels that among Chinese there were substantially fewer ?joint?
decisions and more ?husband dominated? decisions for many
household purchases.
? However, when limiting the comparison to urban and rural Chinese
households, the research showed that in a large city such as Beijing,
married couples were more likely than rural couples to share equally
in purchase decisions. Still further, because of china?s ?one child?
policy and the ensuring custom of treating a single child as a ?little
emperor?, many of the parents purchase decisions are influenced by
the input of their child.
? In another recent cross-culture study, husband-wife decision making
was studied among three groups: Asian Indians living in India, Asian
Indians living in the United States, and American nationals. Results
show a decrease in husband decisions and an increase in wife
dominated decisions, going from Asian Indians in India, to Asian
Indians in the United States, to American nationals. This pattern
seems to indicate the impact of assimilation on decision making.
The expanding role of children in the family
decision making
? Over the past several decades, there has been a trend toward
children playing a more active role in what the family buys, as well as
in the family decision making process.
? This shift in influence has occurred as a result of families having fewer
children, more dual income couples who can afford to permit their
children to make greater number of the choices.
? Also the single parent households often push their children toward
household participation and self reliance.
? For example kids in supermarkets with a parent make an average of
15 requests, of which about half are typically granted.
? The table shows some of the tactics employed by children to
influence their parents.
Tactics used by children to influence their parents
? Pressure tactics
The child makes demand uses threats, or intimidation to persuade you to
comply with his /her request
? Upward appeal
The child seeks to influence you, saying that the request was approved or
supported by an older member of the family, a teacher, or a family friend
? Exchange tactics
The child makes an explicit or implicit promise to give you some sort of
service such as washing the car in return for the favour
? Coalition tactics
The child seeks the aid of others to persuade you to comply with his /her
request or uses the support of others as an argument for you to agree with
him/her
? Ingratiating tactics
The child seeks to get you in a good mood or think favourably of him or
her before asking you to comply with a request.
? Rational persuasion
The child uses logical arguments and factual evidence to persuade you
to agree with his/her request
? Inspirational appeals
The child makes an emotional appeal or proposal that arouses
enthusiasm by appealing to your values and ideas
? Consultation tactics
The child seeks your involvement in making a decision
Family life cycle stages
? The concept of household or family life cycle is important for marketers in
segmenting the market. In 1966, William wells and George Gubar proposed eight
stages to describe the family life cycle.
? The following life cycle stages are typical of families:
1. The bachelor stage: young, single person under age of 35 years. Incomes
are generally low since they have started careers, but they may have few financial
burdens and sufficient discretionary income.
2. Newly married: young couples, no children. If both are employed, they will
have high level of discretionary income.
Family life cycle stages
3. Full nest 1: young married couples with youngest child under 6 years of age.
There would be greater squeezes on income because of increased on childcare.
However, if they are members of a joint family, the level of flexible income is
likely to be high.
4. Full nest 2: young married couples with children from 6 years to 12 years of
age. Better financial position because income of both parents rising. Children
spend more hours outside their parents influence.
5. Full nest 3: older married couples with dependent teenage children living at
home. Financial position of family continues to improve. There are increasing costs
of college education for children.
Family life cycle stages
6. Empty nest 4: older married couples with no children living with
them, parents still employed. Reduced expenses result in greater
savings and highest discretionary income.
7. Empty nest 5: older married couples with no children living with
them and parents retired. Drop in income and couple relies on savings
and fixed income from retirement benefits.
8. Solitary survivor 6: older single persons with low income and
increasing medical needs.
Family and Marketing Strategy
? Use the FLC for segmentation and positioning
? Recognize the diverse consumption roles within the
family
? Understand and use the dynamics of husband-wife
decision making
? Understand and use the consumer socialization role
played by the family
? Recognize the changing nature of Canadian families.
The Power of Reference Groups
Social
Power
Referent
Power
Legitimate
Power
Information
Power
Expert
Power
Coercive
Power
Reward
Power
Types of
Reference
Group Power

FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
Here's the comparison of India, China, and United
States on the basis of Hofstede's cultural
dimensions.
? Developing right competencies
? Once we understand the various facets of a national culture, then we
need to develop the right competencies to equip a business leader
with the right frame of mind, attitude, and skills to feel comfortable
and business-ready in the host culture.
Groups
? Groups exist in every formal and informal type of organisations. Such
groups are created by the members for its satisfaction. Very often
groups get formed automatically because of the operation of various
socio psychological factors. Such groups affect the behaviour of its
members.
Meaning of Group:
? Marvin E. Shaw has defined groups as ?two or more persons who are
interacting with one another in a such a manner that each person
influences and influenced by each other?
? Clouis R. Shepherd defines groups as ?A group may be defined as the
aggregation of small number of persons who work for common goals,
develop a shared attitudes and are aware that they are part of a
group and perceive themselves as such?.
Characteristics of Groups :
? 1. Two or more persons: To form a group there should be atleast two persons,
because a single individual cannot interact. Though no maximum limits have been set,
the size of the group should be such so as to allow meaningful interaction among the
members of group.
? 2. Collective identity: Each member of the group must believe that he is member of
the group and also be aware of his participation in the group activity. For instance a
group of boys are room-mates staying together in the hostel. Though they may not be
studying in the same class but because of their identity of room-mates they would prefer
to go out together for shopping.
? 3. Interaction: Members of the group will interact with each other. Though it is not
necessary for all members of the group to interact simultaneously but each member
must atleast occasionally interact with the members of the group.
? 4. Shared goal interest: Members of the group should concur to the attainment of
objectives each one must atleast share one of the groups concerns
The changing structure of family
? Basic functions provided by the family are particularly relevant to a
discussion of consumer behavior.
? These include:
? ? Economic well being
? ? Emotional support
? ? Suitable family lifestyles
Emotional well-being
? Although families in the affluent nations of North America, Europe
and Asia are no longer formed primarily for economic security,
providing financial means to its dependents unquestionably a basic
family function. How the family divides its responsibilities for
providing economic well-being has changed considerably during past
30 years. No longer are traditional husband as economic provider and
wife as home maker and child-rearer still valid.
? Emotional support
? The provision of emotional nourishment (including love, affection,
and intimacy) to its members is an important core function of the
contemporary family. In fulfilling this function, the family provides
support and encouragement and assists its members in coping with
decision making and with personal or social problems. To make it
easier for working parents to show their love, affection, and support
to their children, greeting card companies have been increasingly
creating cards for parents to give to their children (vice versa)
? Suitable family lifestyle
? Another important family function in terms of consumer behavior is
the establishment of a suitable lifestyle for the family. Upbringing,
experience, and the personal and jointly held goals of the spouses
determine the importance placed on education or career, on reading,
on television viewing, on the learning of computer skills, on the
frequency quality of dining out, and on the selection of other
entertainment and recreational activities.
? Family lifestyle commitments, including the allocation of time, are
generally influencing consumption patterns.
Family decision making and consumption-
related roles
? When two or more family members are directly or indirectly involved
in the decision making process, it is called family decision making.
Such family decisions differs from individuals decisions in many ways.
For example, if we consider the purchase of a bicycle for a child, some
of the relevant aspects to think about can be: who recognizes the
need for bicycle? How a brand is selected? What role the concerned
child plays?
? Joint decisions are more likely to operate in the early stages of
family life cycle when both spouses are relatively less experienced.
After gaining experience, they usually delegate responsibilities
concerning buying decisions to each other.
Key family consumption roles
? For?a?family?to?function?as?a?cohesive?unit,?tasks?such?as?doing?the?laundry,?
preparing?meals,?setting?the?dinner?table,?taking?out?the?garbage,?and?
walking?the?dog?must?be?carried?out?by?one?or?more?family?members.?In?a?
dynamic?society,?family?related?duties?are?constantly?changing?however,?
we?can?identify?either?distinct?roles?in?the?family?decision?making?process.
? ?For?example,?a?family?member?may?be?walking?down?the?cookie?aisle?at?a?
local?supermarket?when?she?picks?out?an?interesting?new?fat-free?cookie.?
Her?selection?does?not?directly?involve?the?influence?of?other?family?
members.?She?is?the?decider,?the?buyer?and,?in?a?sense,?the?gatekeeper,?
however,?she?may?not?be?the?sole?consumer.?Products?may?be?consumed?
by?a?single?family?member,?consumed?or?used?directly?by?two?or?more?
family?members,?or?consumed?indirectly?by?the?entire?family.
Dynamics of husband-wife decision making
? Marketers?are?interested?in?the?relative?amount?of?influence?that?a?
husband?and?a?wife?have?when?it?comes?to?family?consumption?
choices.?The?relative?influence?of?husbands?and?wives?can?be?
classified?as:?husband?dominated,?wife?dominated,?joint,?and?
autonomic.
? ?The?relative?influence?of?a?husband?and?wife?on?a?particular?
consumer?decisions?depends?in?part?on?the?product?and?service?
category.?For?instance,?during?1950s,?the?purchase?of?a?new?
automobile?was?strongly?husband?dominated,?whereas?food?and?
financial?banking?decisions?more?often?were?wife?dominated.?Fifty?
years?later,?the?purchase?of?the?family?s?principal?automobile?is?still?
often?husbands?dominated?in?many?households.?
? Husband wife decision making also appears to be related to cultural
influence. Research comparing husband wife decision making
patterns in the people?s republic of china and in the United States
revels that among Chinese there were substantially fewer ?joint?
decisions and more ?husband dominated? decisions for many
household purchases.
? However, when limiting the comparison to urban and rural Chinese
households, the research showed that in a large city such as Beijing,
married couples were more likely than rural couples to share equally
in purchase decisions. Still further, because of china?s ?one child?
policy and the ensuring custom of treating a single child as a ?little
emperor?, many of the parents purchase decisions are influenced by
the input of their child.
? In another recent cross-culture study, husband-wife decision making
was studied among three groups: Asian Indians living in India, Asian
Indians living in the United States, and American nationals. Results
show a decrease in husband decisions and an increase in wife
dominated decisions, going from Asian Indians in India, to Asian
Indians in the United States, to American nationals. This pattern
seems to indicate the impact of assimilation on decision making.
The expanding role of children in the family
decision making
? Over the past several decades, there has been a trend toward
children playing a more active role in what the family buys, as well as
in the family decision making process.
? This shift in influence has occurred as a result of families having fewer
children, more dual income couples who can afford to permit their
children to make greater number of the choices.
? Also the single parent households often push their children toward
household participation and self reliance.
? For example kids in supermarkets with a parent make an average of
15 requests, of which about half are typically granted.
? The table shows some of the tactics employed by children to
influence their parents.
Tactics used by children to influence their parents
? Pressure tactics
The child makes demand uses threats, or intimidation to persuade you to
comply with his /her request
? Upward appeal
The child seeks to influence you, saying that the request was approved or
supported by an older member of the family, a teacher, or a family friend
? Exchange tactics
The child makes an explicit or implicit promise to give you some sort of
service such as washing the car in return for the favour
? Coalition tactics
The child seeks the aid of others to persuade you to comply with his /her
request or uses the support of others as an argument for you to agree with
him/her
? Ingratiating tactics
The child seeks to get you in a good mood or think favourably of him or
her before asking you to comply with a request.
? Rational persuasion
The child uses logical arguments and factual evidence to persuade you
to agree with his/her request
? Inspirational appeals
The child makes an emotional appeal or proposal that arouses
enthusiasm by appealing to your values and ideas
? Consultation tactics
The child seeks your involvement in making a decision
Family life cycle stages
? The concept of household or family life cycle is important for marketers in
segmenting the market. In 1966, William wells and George Gubar proposed eight
stages to describe the family life cycle.
? The following life cycle stages are typical of families:
1. The bachelor stage: young, single person under age of 35 years. Incomes
are generally low since they have started careers, but they may have few financial
burdens and sufficient discretionary income.
2. Newly married: young couples, no children. If both are employed, they will
have high level of discretionary income.
Family life cycle stages
3. Full nest 1: young married couples with youngest child under 6 years of age.
There would be greater squeezes on income because of increased on childcare.
However, if they are members of a joint family, the level of flexible income is
likely to be high.
4. Full nest 2: young married couples with children from 6 years to 12 years of
age. Better financial position because income of both parents rising. Children
spend more hours outside their parents influence.
5. Full nest 3: older married couples with dependent teenage children living at
home. Financial position of family continues to improve. There are increasing costs
of college education for children.
Family life cycle stages
6. Empty nest 4: older married couples with no children living with
them, parents still employed. Reduced expenses result in greater
savings and highest discretionary income.
7. Empty nest 5: older married couples with no children living with
them and parents retired. Drop in income and couple relies on savings
and fixed income from retirement benefits.
8. Solitary survivor 6: older single persons with low income and
increasing medical needs.
Family and Marketing Strategy
? Use the FLC for segmentation and positioning
? Recognize the diverse consumption roles within the
family
? Understand and use the dynamics of husband-wife
decision making
? Understand and use the consumer socialization role
played by the family
? Recognize the changing nature of Canadian families.
The Power of Reference Groups
Social
Power
Referent
Power
Legitimate
Power
Information
Power
Expert
Power
Coercive
Power
Reward
Power
Types of
Reference
Group Power

FirstRanker.com - FirstRanker's Choice
External Influences on
Consumer Behaviour :
Part 1
Module 5
Social Class
? 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.
Characteristics of Social Class
? Is hierarchical
? Is a natural form of segmentation
? Provides a frame of reference for consumer behaviour
? Reflects a person?s relative social status
Social Class and Social Status
Status is frequently thought of as the relative rankings of
members of each social class
? Wealth
? Power
? Prestige
Status Consumption
? The process by which consumers actively increase their
social standing through noticeable consumption or
possessions.
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.
1 1 - 7
Objective Measures
? Single-variable
indexes
? Occupation
? Education
? Income
? Other Variables
? Composite-variable
indexes
? Index of Status
Characteristics
? Socioeconomic Status
Score
11-8
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.
11-9
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.
1 1 - 11
(continued)
1 1 - 12
Figure 11-14 (continued)
(continued)
1 1 - 13
Figure 11-14 (continued)
(continued)
1 1 - 14
Figure 11-14 (continued)
(continued)
1 1 - 15
Figure 11-14 (continued)
11-16
Social Class and Marketing Strategy
? Clothing, Fashion, and Shopping
? Where one shops
? External point of identification
? The Pursuit of Leisure
? Type of leisure activities differ
? continued
11-17
Social Class and Marketing Strategy
? Saving, Spending, and Credit
? Level of immediate gratification sought varies
? Responses to marketing communication
? Upper classes have a broader and more general view of the world
? Regional variations in language rise as we move down the social ladder
? Exposure to media varies by social class
? continued
Features of Social Class
? Multidimensional
? Hierarchical
? Restrict behaviour
? Homogeneous
? Dynamic
Factors Affecting Culture
? 1 social factors
? Reference Groups
? Family
? Roles and status
? 2 personal factors
? Age and stages in lifecycle
? Occupation and Economic circumstance
? Personality
? Lifestyle
? values
Customs
? These are the ways of behaving under specific circumstances
? how you react to the situation
? Different culture may have different customs
Characteristics of customs
? Generation to generation
? Reactions to situation
? Provide clues to culture
? Specific behaviours under circumstance
Role of Customs
? Determines customs and Traditions
? Predicts consumer buying behaviour
? Helps in Understanding
? Society?s Culture
? Understand purchase pattern
? Predict customers' acceptance towards products
Role of Customs, Values and
Beliefs in Consumer Behaviour
?
Culture and Marketing Strategy
? Identify key cultural values that affect the consumption of the
product
? Ensure the marketing mix appeals to these values
? Examine changes in cultural values and adapt the marketing mix if
needed
? Modify marketing mix to subcultures if the culture is heterogeneous
? Be aware of symbols and ritual
Subculture
A? concept?from? the?academic? fields?of?sociology?and?cultural? studies,? is? a?
group?of?people?within?a?culture?that?differentiates?itself?from?the?parent?
culture? to? which? it? belongs,? often? maintaining? some? of? its? founding?
principles.?
Subcultures?develop?their?own?norms?and?values?regarding?cultural,?political?
and?sexual?matters
Sub-Cultural division and Consumption pattern of
consumers in India
? The influence of culture is inevitable in our societal living.
? However, within a larger society, there are sub systems of values
exhibiting variations in behavioral pattern.
? Marketers have begun to segment larger societies into smaller
subgroups that are homogeneous in relation to cultural values.
Sub-Cultural division and Consumption pattern of
consumers in India
? The individuals of a specific subculture vary in their consumption
patterns.
? They show variation in lifestyle, financial viability, food preferences,
reading habits, purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
Multi Culture in India
? India is said to be a country of multi cultures.
? It is so because of its long history of civilization.
? Different rulers have ruled the country.
? These rulers had different systems of governance and social practices.
However, now there is unity in diversity which is important to any
marketer in framing strategy for marketing.
? The diversity has given birth to ever increasing number of States.
India is a country with 29 states and six union territories.
? Each state has its own own culture.
? There are more than one subculture is found in some states.
? There are major religions such as Hindus, Muslims, Sikhs, Christians,
Jains and Bhuddhas.
? Each state and religion has its own traditional
style of dressing, wearing ornaments, food
preferences etc.
? Wheat and wheat products are consumed
more in north India. People in south India
consume rice.
? Certain communities do not eat non-
vegetarian food, while among the other
communities non-vegetarian food is popular.
Differences in Consumption pattern
? Differences are found in the consumption pattern related to rural ?
urban sub-cultural division.
? Variations are found in preferences for food items, housing, clothing,
home, furnishing, transport vehicles used, recreation and leisure
activities, saving pattern, etc.
Economic Status ? Classes of people in India
? Economic status is another important sub-cultural variation.
According to economic status, people can be divided into three
classes:
? the upper or affluent class,
? the middle class, and;
? the lower class.
? The?affluent class accounts for only a negligible portion of the
society.?Luxury?items?are?consumed?more?by?the?affluent?class.
? On?the?other?hand,?the?lower class spends more on necessary items.?
People?in?the?lower?class?have?very?little?purchasing?power.
? What?is?more important to the marketers is the middle class?which?
forms?a?big?chunk.
? Marketers?have?evinced?a?keen?interest?in?the?consumption pattern
of the middle class.
? In?spite?of?the?regional,?linguistic?and?cultural?activities?in?India,?
middle?class?consumers?follow?a?common?pattern?of?the?lifestyle?and?
buying?behavior.?
TYPES OF SUB-CULTURE:
? Based on the varying criteria, there can be different types of sub-
cultures.
? The important subcultural categories are nationality, geographical
location, religion, race and caste, gender and age.
? From a marketing perspective, these could also be discussed as
market segments, which need to be studied and assessed carefully
before deciding on a product/service offering and formulating a
marketing mix for a particular segment(s).
Nationality:
? Sub-cultures could be based on nationality.
? While we are all Asians, we are distinct with respect to culture, and
are different in terms of language, customs and traditions etc.
? Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
Geographical location:
? Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population.
? This is more so in cases where the country is large and borders spread
across a huge population occupying a vast territory.
? People tend to develop regional affinity and identification, and this
gets reflected in the food they eat, clothes they wear, interests they
pursue, etc.
Religion:
? People also exhibit differences when it comes to the religions that
they belong to.
? Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from
one another and have different values and beliefs, customs and
traditions etc.
? As consumers, they make purchase choices and purchase decisions
that are influenced by the dictates of their religious leaders,
scriptures, and holy books.
Race and caste:
? Culture and its components also vary across race and caste.
? Pathans and Yadavs are all different from one another.
Such racial sub-cultures also impact buying behavior and consumption
patterns.
Gender:
? Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group. Males and females
across all cultures are assigned different traits and characteristics that
make them masculine and feminine. They also perform different roles
in society and are two distinct sub-groups.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
? Political systems: Both the countries have a deeply ingrained
democratic culture.
? The U.S is the world's oldest democracy while India is the world's
largest democracy.
? Both the countries were former British colonies.
What are three similarities between Indian
culture and American culture.
Entrepreneurship:
? Both the countries love to take risks to create wealth and new businesses.
? However, India's full potential has not yet been unleashed due to the disastrous
socialist policies from 1947-1992.
? The recent wealth creation in the Indian economy was due to the opening up of
the Indian economy post 1992 and these policies are likely to continue.
? Also, the US and India trade has been increasing rapidly.
? The IT industry links between both the countries are pretty well known
Here are the differences between both the countries :
Here are the differences between both the
countries :
Shame based vs guilt based society:
In this aspect, India is similar to its Asian neighbors like China.
India is predominantly a Shame based society while the US is a guilt based
society.
For instance, if you take a bribe in India you wouldn't have to feel ashamed
unless you are caught. However, in the U.S you are expected to feel
ashamed regardless, because the US is a guilt based society.
Major Challenges in Cross Cultural
? Ambiguity
? Cultures provide people with ways of thinking--ways of seeing,
hearing, and interpreting the world. Thus the same words can mean
different things to people from different cultures, even when they
talk the "same" language. When the languages are different, and
translation has to be used to communicate, the potential for
misunderstandings increases
? Inflexible Attitude
? Some people when they enter a different cultural context then to
avoid exposure or experience of the host culture. This results in
introvert behavior and closed mindset, leading to an impression that
the visitor is not accepting the host culture. This leads to missing out
on new experiences to learn and adapt to the new culture.
? An Indian boss planned to delegate a task to a Chinese intern. Being
an India, the supervisor was quite comfortable with multitasking and
ambiguous instructions and assumed that the intern would also be
the same and he would immediately start working on the assignment.
But, the intern did not move a single step forward, instead he asked
his boss to provide clear instructions. Rather than understanding the
cultural context of this situation, the boss turn to flowery and
opinionated arguments with the intern and tried to change the
behavior of the trainee to accommodate multitasking and ?unclear?
instructions. Such scenarios, often lead to poor performance and bad
team dynamics.
? Ethnocentrism
? Ethnocentrism is the assumption that the culture of one?s own group
is right, moral and rational, and that other cultures are inferior. Since
ethnocentrism is often an unconscious behavior, it is understandably
difficult to prevent in advance. When confronted with a different
culture, individuals judge it with reference to their own standards,
and make no attempt to evaluate the new culture from the host
country?s point of view.
Strategies to overcome cross-cultural
problems
? Understanding the Communication style
? Different cultures have different communication styles. On the scale
of communication context, cultures are divided into ?High Context?
and ?low context? cultures. Examples of High context cultures include
African, Chinese, Indian, Japanese, among others. Examples of Low
context cultures include Australian, German, US culture, etc.
? Understanding the Cultural Values
? According?to?Geert?Hofstede,?there?is?no?such?thing?as?a?universal?
management?method.?Management?interacts?with?other?dynamics?of?
society?including?politics,?family,?religion,?beliefs?etc.
Here's the comparison of India, China, and United
States on the basis of Hofstede's cultural
dimensions.
? Developing right competencies
? Once we understand the various facets of a national culture, then we
need to develop the right competencies to equip a business leader
with the right frame of mind, attitude, and skills to feel comfortable
and business-ready in the host culture.
Groups
? Groups exist in every formal and informal type of organisations. Such
groups are created by the members for its satisfaction. Very often
groups get formed automatically because of the operation of various
socio psychological factors. Such groups affect the behaviour of its
members.
Meaning of Group:
? Marvin E. Shaw has defined groups as ?two or more persons who are
interacting with one another in a such a manner that each person
influences and influenced by each other?
? Clouis R. Shepherd defines groups as ?A group may be defined as the
aggregation of small number of persons who work for common goals,
develop a shared attitudes and are aware that they are part of a
group and perceive themselves as such?.
Characteristics of Groups :
? 1. Two or more persons: To form a group there should be atleast two persons,
because a single individual cannot interact. Though no maximum limits have been set,
the size of the group should be such so as to allow meaningful interaction among the
members of group.
? 2. Collective identity: Each member of the group must believe that he is member of
the group and also be aware of his participation in the group activity. For instance a
group of boys are room-mates staying together in the hostel. Though they may not be
studying in the same class but because of their identity of room-mates they would prefer
to go out together for shopping.
? 3. Interaction: Members of the group will interact with each other. Though it is not
necessary for all members of the group to interact simultaneously but each member
must atleast occasionally interact with the members of the group.
? 4. Shared goal interest: Members of the group should concur to the attainment of
objectives each one must atleast share one of the groups concerns
The changing structure of family
? Basic functions provided by the family are particularly relevant to a
discussion of consumer behavior.
? These include:
? ? Economic well being
? ? Emotional support
? ? Suitable family lifestyles
Emotional well-being
? Although families in the affluent nations of North America, Europe
and Asia are no longer formed primarily for economic security,
providing financial means to its dependents unquestionably a basic
family function. How the family divides its responsibilities for
providing economic well-being has changed considerably during past
30 years. No longer are traditional husband as economic provider and
wife as home maker and child-rearer still valid.
? Emotional support
? The provision of emotional nourishment (including love, affection,
and intimacy) to its members is an important core function of the
contemporary family. In fulfilling this function, the family provides
support and encouragement and assists its members in coping with
decision making and with personal or social problems. To make it
easier for working parents to show their love, affection, and support
to their children, greeting card companies have been increasingly
creating cards for parents to give to their children (vice versa)
? Suitable family lifestyle
? Another important family function in terms of consumer behavior is
the establishment of a suitable lifestyle for the family. Upbringing,
experience, and the personal and jointly held goals of the spouses
determine the importance placed on education or career, on reading,
on television viewing, on the learning of computer skills, on the
frequency quality of dining out, and on the selection of other
entertainment and recreational activities.
? Family lifestyle commitments, including the allocation of time, are
generally influencing consumption patterns.
Family decision making and consumption-
related roles
? When two or more family members are directly or indirectly involved
in the decision making process, it is called family decision making.
Such family decisions differs from individuals decisions in many ways.
For example, if we consider the purchase of a bicycle for a child, some
of the relevant aspects to think about can be: who recognizes the
need for bicycle? How a brand is selected? What role the concerned
child plays?
? Joint decisions are more likely to operate in the early stages of
family life cycle when both spouses are relatively less experienced.
After gaining experience, they usually delegate responsibilities
concerning buying decisions to each other.
Key family consumption roles
? For?a?family?to?function?as?a?cohesive?unit,?tasks?such?as?doing?the?laundry,?
preparing?meals,?setting?the?dinner?table,?taking?out?the?garbage,?and?
walking?the?dog?must?be?carried?out?by?one?or?more?family?members.?In?a?
dynamic?society,?family?related?duties?are?constantly?changing?however,?
we?can?identify?either?distinct?roles?in?the?family?decision?making?process.
? ?For?example,?a?family?member?may?be?walking?down?the?cookie?aisle?at?a?
local?supermarket?when?she?picks?out?an?interesting?new?fat-free?cookie.?
Her?selection?does?not?directly?involve?the?influence?of?other?family?
members.?She?is?the?decider,?the?buyer?and,?in?a?sense,?the?gatekeeper,?
however,?she?may?not?be?the?sole?consumer.?Products?may?be?consumed?
by?a?single?family?member,?consumed?or?used?directly?by?two?or?more?
family?members,?or?consumed?indirectly?by?the?entire?family.
Dynamics of husband-wife decision making
? Marketers?are?interested?in?the?relative?amount?of?influence?that?a?
husband?and?a?wife?have?when?it?comes?to?family?consumption?
choices.?The?relative?influence?of?husbands?and?wives?can?be?
classified?as:?husband?dominated,?wife?dominated,?joint,?and?
autonomic.
? ?The?relative?influence?of?a?husband?and?wife?on?a?particular?
consumer?decisions?depends?in?part?on?the?product?and?service?
category.?For?instance,?during?1950s,?the?purchase?of?a?new?
automobile?was?strongly?husband?dominated,?whereas?food?and?
financial?banking?decisions?more?often?were?wife?dominated.?Fifty?
years?later,?the?purchase?of?the?family?s?principal?automobile?is?still?
often?husbands?dominated?in?many?households.?
? Husband wife decision making also appears to be related to cultural
influence. Research comparing husband wife decision making
patterns in the people?s republic of china and in the United States
revels that among Chinese there were substantially fewer ?joint?
decisions and more ?husband dominated? decisions for many
household purchases.
? However, when limiting the comparison to urban and rural Chinese
households, the research showed that in a large city such as Beijing,
married couples were more likely than rural couples to share equally
in purchase decisions. Still further, because of china?s ?one child?
policy and the ensuring custom of treating a single child as a ?little
emperor?, many of the parents purchase decisions are influenced by
the input of their child.
? In another recent cross-culture study, husband-wife decision making
was studied among three groups: Asian Indians living in India, Asian
Indians living in the United States, and American nationals. Results
show a decrease in husband decisions and an increase in wife
dominated decisions, going from Asian Indians in India, to Asian
Indians in the United States, to American nationals. This pattern
seems to indicate the impact of assimilation on decision making.
The expanding role of children in the family
decision making
? Over the past several decades, there has been a trend toward
children playing a more active role in what the family buys, as well as
in the family decision making process.
? This shift in influence has occurred as a result of families having fewer
children, more dual income couples who can afford to permit their
children to make greater number of the choices.
? Also the single parent households often push their children toward
household participation and self reliance.
? For example kids in supermarkets with a parent make an average of
15 requests, of which about half are typically granted.
? The table shows some of the tactics employed by children to
influence their parents.
Tactics used by children to influence their parents
? Pressure tactics
The child makes demand uses threats, or intimidation to persuade you to
comply with his /her request
? Upward appeal
The child seeks to influence you, saying that the request was approved or
supported by an older member of the family, a teacher, or a family friend
? Exchange tactics
The child makes an explicit or implicit promise to give you some sort of
service such as washing the car in return for the favour
? Coalition tactics
The child seeks the aid of others to persuade you to comply with his /her
request or uses the support of others as an argument for you to agree with
him/her
? Ingratiating tactics
The child seeks to get you in a good mood or think favourably of him or
her before asking you to comply with a request.
? Rational persuasion
The child uses logical arguments and factual evidence to persuade you
to agree with his/her request
? Inspirational appeals
The child makes an emotional appeal or proposal that arouses
enthusiasm by appealing to your values and ideas
? Consultation tactics
The child seeks your involvement in making a decision
Family life cycle stages
? The concept of household or family life cycle is important for marketers in
segmenting the market. In 1966, William wells and George Gubar proposed eight
stages to describe the family life cycle.
? The following life cycle stages are typical of families:
1. The bachelor stage: young, single person under age of 35 years. Incomes
are generally low since they have started careers, but they may have few financial
burdens and sufficient discretionary income.
2. Newly married: young couples, no children. If both are employed, they will
have high level of discretionary income.
Family life cycle stages
3. Full nest 1: young married couples with youngest child under 6 years of age.
There would be greater squeezes on income because of increased on childcare.
However, if they are members of a joint family, the level of flexible income is
likely to be high.
4. Full nest 2: young married couples with children from 6 years to 12 years of
age. Better financial position because income of both parents rising. Children
spend more hours outside their parents influence.
5. Full nest 3: older married couples with dependent teenage children living at
home. Financial position of family continues to improve. There are increasing costs
of college education for children.
Family life cycle stages
6. Empty nest 4: older married couples with no children living with
them, parents still employed. Reduced expenses result in greater
savings and highest discretionary income.
7. Empty nest 5: older married couples with no children living with
them and parents retired. Drop in income and couple relies on savings
and fixed income from retirement benefits.
8. Solitary survivor 6: older single persons with low income and
increasing medical needs.
Family and Marketing Strategy
? Use the FLC for segmentation and positioning
? Recognize the diverse consumption roles within the
family
? Understand and use the dynamics of husband-wife
decision making
? Understand and use the consumer socialization role
played by the family
? Recognize the changing nature of Canadian families.
The Power of Reference Groups
Social
Power
Referent
Power
Legitimate
Power
Information
Power
Expert
Power
Coercive
Power
Reward
Power
Types of
Reference
Group Power

? https:// www.youtube.com/watch?v=FDu7Rhx32WU
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