1. A presentation on
“Influence of Culture on
Consumer Behavior”
presented by:
Jay Shah,
FMS-B,
The M.S.U of Baroda.

2. DEFINITION
 Culture is the sum total of learned values, beliefs and
customs that serve to direct the consumer behaviour of
members of a particular society.
 Beliefs and values- Accumulated feeling and priorities that
individuals have about things and possessions.
 They are mental images that influence the responses of a
person in a specific situation .
 Customs – Usual and accepted ways of behaviour.
Jay Shah, FMS-B

3. INVISIBLE HAND OF CULTURE
• The impact of culture is automatic and natural and hence
many times its takes for granted.
• Culture exists at different subjective levels :
 Level 1- Supranational :
Cultural differences that cross national boundaries, present in
more than one country.
Consumer behaviour relevant factors: language, symbolism
meaning, racial composition etc.
Jay Shah, FMS-B

4. Level 2 - National :
Cultural characters of that uniquely define
citizens of a particular country.
 Level 3 – Group :
Cultural divisions that include collection of
individuals.
Jay Shah, FMS-B

5. Jay Shah, FMS-B

6. CULTURAL LEARNING
• Adults teach younger children
FORMAL
LEARNING
• Learning by imitating adults
INFORMAL
LEARNING
• Teachers instruct children in
schools
TECHNICAL
LEARNING
Jay Shah, FMS-B

7. ACQUISITION OF CULTURE
• Enculturation
– learning of one’s own culture .
• Acculturation :
learning of a new or foreign culture.
Jay Shah, FMS-B

8. LANGUAGE AND SYMBOLS
 To acquire common culture, a common language for
communication is needed.
 To communicate with consumers , marketers must use
appropriate symbols to convey product images or
characteristics.
 Symbols can be verbal and non verbal.
 Verbal symbols – television advertisement.
 Non verbal-figures ,symbol for additional meaning
Jay Shah, FMS-B

9. RITUALS
 Ritual is a symbolic activity consisting of a series of steps
occurring in a fixed sequence.
 Culture includes ritualized experiences.
 Rituals tend to be replete with ritual artefacts that are
associated with or somehow enhance the performance of
ritual.
Jay Shah, FMS-B

10. SHARING OF CULTURAL BELIEFS AND CUSTOMS
 Institutions that traditionally share the responsibility
for transfer of culture :
1. Family
2. Education institutions
3. Houses of worship
4. Mass media
5. Virtual communities
Jay Shah, FMS-B

11. MEASUREMENT OF CULTURE
 Content Analysis, consumer fieldwork and value
measurement are 3 research approaches that are frequently
used to examine culture and to spot culture trends
Jay Shah, FMS-B

12. Content
Analysis
A method for systematically
analyzing the content of verbal
and/or pictorial communication.
The method is frequently used to
contrast aspects of two different
cultures.
Jay Shah, FMS-B

13. Field
Observation
A cultural measurement
technique that takes place
within a natural environment
that focuses on observing
behavior (sometimes without
the subjects’ awareness).
Jay Shah, FMS-B

14. Characteristics of Field Observation
• Takes place within a natural
environment.
• Performed sometimes without
the subject’s awareness.
• Focuses on observation of
behavior.
Jay Shah, FMS-B

15.  In addition to fieldwork methods, depth interviews and
focus-group sessions are also often used to get a first look at
the emerging social or cultural change .
 In the informal environment of focus group discussions
consumers may reveal attitudes or behaviour signalling a
shift in values.
Jay Shah, FMS-B

16. VALUE MEASUREMENT SURVEY INSTRUMENTS
 Rokeach Value Survey (RVS): A self-administered inventory
consisting of eighteen “terminal” values (i.e., personal goals)
and eighteen “instrumental” values (i.e., ways of reaching
personal goals).
 List of Values (LOV): A value measurement instrument that
asks consumers to identify their two most important values
from a nine-value list that is based on the terminal values of
the Rokeach Value Survey.
 Values and Lifestyles (VALS): A value measurement based on
two categories: innovation and resources.
Jay Shah, FMS-B

17. INDIAN CORE VALUES
 Indian society is driven by a set of core values.
 Variation in urban values due to: Changing Lifestyles,
Westernization and Diffusion of technology.
 Indian consumers are culture-conscious as they follow the
cultural expectations of the society.
Jay Shah, FMS-B

18. 1) Family Orientation:
• Concept of Extended Family- parents, siblings,
grandparents, etc.
• Chief wage earner supports the entire joint family.
• Disposable income of such a consumer gets radically
reduced.
• Looks for a value-based brand at a lower price point.
• Mixes Brands to balance the expenditure.
• Down-trading- consumer buys less expensive brands after
using higher brands.
Jay Shah, FMS-B

19. Product-line
extension
Jay Shah, FMS-B

20. 2) Savings Orientation: (Voltas AC commercial)
• Uncertainty of income generation as huge population still
lives in rural parts.
• Unlike developed nations, various community services are
not being available.
• Consumers fall back on their savings even to celebrate
festivities.
• All class of consumers consider jewelry as a means of
investment.
• Popularity of installment payments because of splitting
savings between traditional purchases and appliances
purchases.
Jay Shah, FMS-B

21. 3) Festivities:
Jay Shah, FMS-B

22. Maruti Suzuki Alto 800 Onam edition 2015.
Jay Shah, FMS-B

23. •Cultural celebrations are very much a part of Indian culture.
•Sub-cultures also have various festivals.
•Brands offer sales promotional programs during festive
seasons.
•Smart customers make “value-based” deals during these
times.
•Consumers postpone their purchases, especially durables,
in the hope of getting such deals.
Jay Shah, FMS-B

24. 4) Shopping as a ritual:
•Shopping done from huge departmental stores to
conventional outlets.
•Only about 5% of products are retailed through
departmental stores is a reflection of the fragmented nature
of retailing.
•Bargaining is an unwritten rule.
•Members of the family visit outlets with the objective of
comparing prices and arriving at a best deal.
•Compensatory style of decision making- buyers analyse one
brand after another.
Jay Shah, FMS-B

25. Jay Shah, FMS-B

26. 5) Mythology:
•Mythological stories, sculptures, and music are an inherent
part of the Indian culture.
•Such products are marketed in the places of tourist interest
but they are not branded.
•May also have an inferior quality.
•Vast potential for creating a brand in this industry.
•A large chunk of the industry is in unorganized sector.
Jay Shah, FMS-B

27. Jay Shah, FMS-B

28. 6) Food habits: (Amul Butter and Udupi commercial)
•Hot, spicy delicacies are popular in India too.
•Food habit have a strong link with the culture and are
difficult to change.
Jay Shah, FMS-B

29. CHANGING TRENDS IN INDIAN URBAN MARKETS
Urban setting is very different from rural or semi-urban
market setting.
Target segments comprises professionally qualified, high-
salaried persons with fast-track of life.
Strongly influenced by the lifestyle and aspirations of the
West.
Jay Shah, FMS-B

30. 1) Achievement Orientation: (Mahindra commercial)
• Contributes to intrinsic and extrinsic motivational levels.
• Products/Brands reinforce a feeling of accomplishment in
individuals and are perceived as rewards.
Jay Shah, FMS-B

31. 2) Work ethic:
• Contemporary customers are breaking away from
traditional work practices and are involved in high-tension
& fast-paced jobs.
• They have time-pressure and hence prefer time-
compression or convenience products.
• Example: Online food products ordering portals.
Jay Shah, FMS-B

32. 3) Material Success: (Maruti Suzuki Swift commercial)
• Young professionals between 25-30 years who are
extremely conscious of their materialistic success achieved
in the last decade.
• They have tremendous exposure to the environment.
• Cutting-edge professionals.
• Wealth is spend on essential products which have
contributed to the service economy.
• Great demand for quality oriented products.
Jay Shah, FMS-B

33. 4) Middle-of-the-Road Approach to the Tradition:
• Such consumers are urban, highly educated, and in the
upper-end of the socio-economic strata.
• Neither too permissive nor too traditional in their
approach towards tradition.
• Prefer home-cooked food generally and eating-out being
reserved for very special occasions.
• With more women working in urban areas, eating-out is
becoming more normal event.
• Example: Ready to cook packs by Knorr.
Jay Shah, FMS-B

34. 5) Impulse Gratification:
• Neo-Urban young adults exhibit a compulsive need to buy
products and services through credit cards.
• These consumers may possess multiple credit cards.
• Example: Banks offer discounts to students of premier
institutions.
Jay Shah, FMS-B

35. 6) Use of Hi-Tech products:
•This lifestyle aspect maybe of interest to marketers of high-
end products.
•Here the marketer deals with getting the consumers involved
in the brand’s message that suits his/her interests rather than
bombard them.
•Consumers are oriented towards information, independent &
involved in product search.
•They have potential and willingness to spend.
•Media-mix approach by brands should be used.
•One-to-One marketing or relationship marketing is ideal.
Jay Shah, FMS-B

36. S. Ramesh Kumar of IIM-B has recently identified 32 Indian
Values that are relevant to marketing:
Jay Shah, FMS-B

37. Jay Shah, FMS-B

38. Jay Shah, FMS-B

39.  Mental programming of people in environment
 Combination of
1. Symbol :- Women wearing gold as it is perceived
prosperous in several parts of India.
2. Heroes :- Celebrities are widely used in
advertising.
3. Rituals :- Wedding ritual in India.
4. Values :- It is unusual to find even educated and
westernized woman smoking in public place in
India.
CULTURAL ASPECTS OF EMERGING MARKET
Jay Shah, FMS-B

40. INDIAN CONTEXT
 Population around 1.311 Billion
 74% of population lives in villages
 75% males engaged in agriculture
 Per capita income of US$700
Jay Shah, FMS-B

41. CLASSIFICATION OF HOUSEHOLDS
 Deprived : Earning less than US$ 1969
 Aspirers : Earning between US$ 1969-4376
 Seekers : Earning between US$ 4376-10,941
 Strivers : Earning between US$ 10,941-21,882
 Global Indians : Above US$ 21,882
Jay Shah, FMS-B

42. conti.
 Different kind of lifestyles ,different level of socio-
economical structure is available in Indian society.
 Lifestyles changes in these different categories and hence
product and service range too changes.
 Culture changes in these categories as they belong to
different sub cultures as these households belongs to
different cities and areas.
Jay Shah, FMS-B

43. EXAMPLES
1. Coca-cola : Usual advertisement in combined in Hindi and
English languages ,but in some region no Hindi speaking
public available and hence they come out with regional
languages in advertisement.
2. Textiles and Television brands does more advertisements
during festivals and religious seasons.
3. Cadbury India offers Special packs during festivals like
Diwali, Christmas and Rakshabandhan.
Jay Shah, FMS-B

44. conti.
 Some advertisements are aimed at urban area and
consumers in rural market derive their aspiration from
urban oriented advertisement.
 In contrast Lifebouy launched as rural brand with strong
carbolic scent and cinema hall showed football player
(popular rural sport at that time).
Brand was popular in rural area as germ killing soap. Now
brand reposition itself in urban area as family soap with
change in fragrance with the same germ killing proposition.
Jay Shah, FMS-B

45. conti.
 Some brands combines traditional and modern culture for
advertisement.
 Example : Tanishq launched Diamond (To denote higher
status in India)
 Advertisement has a song from popular Tamil movie of
1960s which denotes traditional culture.
 Bajaj automobiles (Bajaj ad)
Jay Shah, FMS-B

46. IMC TO EMERGING MARKET
IMC projects and conveys a consistent and coherent brand
image through synergized communication through various
media channels over a period of time.
Example : ICED green tea.
Jay Shah, FMS-B

47. IMC TO EMERGING MARKET
Cultural interface
values
Target segment
and brand benefit
Ritual values that
will match the
chosen values
Combining
cultural interface
values and ritual
setting
Customizing the
content to each
channel of
communication
IMC with synergy
toward consistent
brand image
Jay Shah, FMS-B

48. Jay Shah, FMS-B