PPT OVERVIEW

1. John Sutton

2. Bite the wax tadpole
Eire 1994
Eat your fingers off

3.  Marketing involves both technical and social
elements.
◦ Technical elements are generally universally
◦ Social elements are market specific and display the
cultural differences of a given society
 The impact of socio-cultural factors on
marketing is important in understanding
consumer behaviour and planning
appropriate market strategies

4.  The output of how consumers behave in decision making
in buying goods or services.
◦ An important part of marketing:
 Studies the reasons of consumers behaviour in their buying decisions
 Why,
 When,
 Where,
 What
 How
◦ Depends on different types of marketing stimuli (P’s)
◦ and other factors
 P.E.S.T - (Political, Economic, Socio-Cultural and Technological)
 These all influence the consumer black box* to produce
responses for making decision about selecting products,
brand choice, price etc.
*Keegan, Warren et al., “The Black Box Model of Consumer Behaviour,” Marketing
(Englewod Cliffs, NJ: Prentice Hall, 1992), 193.
* Lewin, Kurt (1951) Intention, Will and Need in: Rapaport, David (Ed); “Organization and
Pathology of Thought: Selected Sources”; Columbia University Press (New York)

5.  The cognitive process of selecting a course of
action from multiple alternatives.
◦ e.g. Shopping and deciding what to eat.
 A psychological construct that implies a
commitment to action / choice.
 we can never "see" a decision BUT can conclude from
observable behaviour when a decision has been made.
◦ Based on observable actions, we consider people
have made a commitment to effect that action.

6.  Generally three ways  Herbert Alexander Simon (1947 & 1957)
◦ Economic claims:
◦ Economic decision making a vain
 Largely quantitative attempt to be rational
 Assume rationality/near perfect  If a complete analysis is to be done-
knowledge. decision immensely complex.
 Consumer theory /game theory  Peoples' information processing ability
very limited.
◦ Psychological models  A perfectly rational economy unrealistic.
 Qualitative -build on sociological  People only partially rational - influenced
factors like cultural and family by emotional and non-rational
influences. considerations
 Concentrate on psychological and
cognitive processes
 i.e. motivation and need recognition
◦ Consumer behaviour models
 Practical -used by marketers
 Blend economic and psychological Administrative Behaviour: A Study of Decision-Making
Processes in Administrative Organizations 1947 - 4th ed.
models. in 1997,
Models of Man. John Wiley. Presents mathematical
models of human behaviour - 1957.

7.  Cultural, social, personal and psychological
factors have great influence on consumer
buyer behaviour.
 Human wants, perceptions, values, and
behaviour are learned from society, family
other institutions.

8.  Customs, lifestyles, and values that
characterize a society
◦ include anything within the context of society that
has the potential to affect behaviour.
 Examples of socio-cultural variables.
◦ Population demographics, educational levels, norms
and values, attitudes toward social responsibility...

9.  "Collective programming of the mind which
distinguishes the members of one category of people
from another"
 Hofstede, G. (1984 p.51). ). National cultures and corporate cultures. In
L.A. Samovar & R.E. Porter (eds.), Communication between cultures.
Belmont, CA: Wadsworth.
 "Patterns relative to behaviour and the products of
human action which may be inherited, that is, passed
on from generation to generation independently of
the biological genes"
 Parson, T. (1949 p.8). ). Essays in sociological theory. Glencoe, IL.
 "Learned and shared behaviour of a community of
interacting human beings".
 Useem, j., & Useem, R. (1963 p.169). Human organizations, 22(3).

10.  Culture consists of beliefs, behaviours, objects, and other
characteristics common to the members of a particular
group or society.
◦ Through culture, people and groups define themselves, conform
to society's shared values, and contribute to society.
 includes many societal aspects: language, customs, values, norms,
mores, rules, tools, technologies, products, organizations, and
institutions.
 This term institution refers to clusters of rules and cultural
meanings associated with specific social activities.
 Common institutions are the family, education, religion,
work, and health care.

11. UK Cheese maker in a pickle over exports
Friday 01 April 2011 Telegraph.co.uk

12.  Aesthetics
 Education
 Language
 Law and Politics
 Material Culture
 Religion
 Social Organizations
 Technology
 Values and Attitudes

 Terpstra, V. and Sarathy, R. (2000) International Marketing,
8th Edition, Dryden Press.

13. cultures, generations
MACRO SOCIAL genders, social class
lifestyle
MICRO SOCIAL sub-cultures, tribes
interactions, practices
individuals, subjects
INDIVIDUAL
cognition, motives,
the unconscious
BIOLOGICAL
basic needs
food
Levels of Observation of Consumption (adapted from
Desjeux, 1998)

16.  Analyze how needs fit within the stages of
the consumer behaviour model.
◦ (Note: Discuss either the consumer or industrial
model, whichever applies to your product/service.
 Describe the use of 'consumer buying
decisions‘ in formulating marketing
strategies.
 Why will a Chinese consumer be interested in
buying a General Motors Vehicle?