Cb unit-iii (cultural influences on consumer decision making)

Revisiting Strategy
Revisiting StrategyPhD (Research Scholar) at Indian Institute of Management Ranchi (Strategic Management) à Indian Institute of Management, Calcutta
07/04/15 1
By :
Prof. Amit Kumar
07/04/15 2
Course: Consumer Behavior
Unit-1 Consumer in the Marketplace
Unit-2 Models of Consumer Behavior
Unit-3 Cultural Influences on Consumer Decision making
Unit-4 Sociological Influences on Consumer Decision making
Unit-5 Personal / Individual Influences on Decision making
Unit-6 Psychological Influences on Decision making
Unit-7 Consumer Decision Making Process
Unit-8 Consumer Influence & Diffusion of Innovation
Consumer Behavior
IILM-Graduate School of Management
07/04/15 3
Consumer Behavior Cultural Influence on Consumer Behavior
IILM-Graduate School of Management
07/04/15 4
Culture
The fundamental determinant of
a person’s wants and behaviors
acquired through socialization
processes with family
and other key institutions.
Consumer Behavior Cultural Influence on Consumer Behavior
IILM-Graduate School of Management
07/04/15 5
Fast Facts About American Culture
• Culture: The set of values, ideas, and attitudes that are
learned and shared among the members of a group or
society.
– Examples – American culture, Latin American culture,
Japanese culture
• The average American
– chews 300 sticks of gum a year
– goes to the movies 9 times a year
– takes 4 trips per year
– attends a sporting event 7 times each year
Consumer Behavior Cultural Influence on Consumer Behavior
IILM-Graduate School of Management
07/04/15 6
Culture
The growing child acquires a set of values, perceptions,
preferences and behaviors through his or her family and
other key institutions.
– A child growing in US is exposed to the following values:
achievements and success, activity, efficiency and practicality,
progress, material comfort, individualism, freedom and
youthfulness.
– A child growing up in a traditional middle-class family in India is
exposed to the following values: respect and care for elders,
honesty, hard work, achievements and success and sacrifice.
Consumer Behavior Cultural Influence on Consumer Behavior
IILM-Graduate School of Management
07/04/15 7
Subculture
• Each culture consists of smaller subcultures.
• Subgroups within a larger culture that have unique
values, ideas, and attitudes.
• Subculture includes:
1. Nationalities
2. Religions
3. Racial groups etc.
• Multicultural marketing grew out of careful marketing
research, which revealed that different subculture/ culture did not
always respond favorably to mass-market advertising.
Consumer Behavior Cultural Influence on Consumer Behavior
IILM-Graduate School of Management
07/04/15 8
Culture/Subculture
“ When Kellogg launched its cornflakes in the Indian
market, the response from the consumers was not very
encouraging. The company conducted a market research
and discovered that Indians prefer hot milk with cornflakes
whereas the “crispiness” benefit that it was claiming could
be delivered only when the cornflakes were mixed with cold
Milk”.
Consumer Behavior Cultural Influence on Consumer Behavior
IILM-Graduate School of Management
07/04/15 9
Social Classes
• Social class (members share similar values, interests
and behaviors)
• One classic depiction of social classes in US defined
seven ascending levels, as follows:
1. Upper uppers
2. Lower uppers
3. Upper middles
4. Middle class
5. Working class
6. Upper lowers
7. Lower lowers
Consumer Behavior Cultural Influence on Consumer Behavior
IILM-Graduate School of Management
07/04/15 10
Social Classes: INDIA
• Indian marketers use a term called Socioeconomic
classification (SEC), which uses a combination of the education
and occupation of the chief wage earner of the household to classify
the buyers in urban areas.
• This classifies all the urban household into eight broad categories
namely, A1,A2,B1,B2,C,D,E1,E2; with A1 signifying highest
purchase potential & E2 signifying the lowest.
OCCUPATION EQUCATION
Illiterate School SSC/HSC SSC/HSC PG/UG PG/UG
up to 10 Non General Professional
years Graduate
Unskilled worker
Skilled worker
Shop owner
Businessmen
Self employed
Supervisory level
E2 E1 D D D D
B1 B1 A2 A1 A1 A1
D D C C B2 A2
Consumer Behavior Cultural Influence on Consumer Behavior
IILM-Graduate School of Management
07/04/15 11
UK socioeconomic classification scheme
Consumer Behavior Cultural Influence on Consumer Behavior
IILM-Graduate School of Management
07/04/15 12
Characteristics of Social Classes
1. Within a class, people tend to behave alike. Social
classes differ in dress, speech patterns & preferences.
2. Social class conveys perceptions of inferior or superior
position.
3. Class may be indicated by a cluster of variables-for
example occupation, income, wealth, education, value
orientation-rather than by a single variable.
4. Class designation is mobile over time. It means
individuals can move up or down the social class
ladder during their lifetimes.
Consumer Behavior Cultural Influence on Consumer Behavior
IILM-Graduate School of Management
1 sur 12

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Cb unit-iii (cultural influences on consumer decision making)

  • 2. 07/04/15 2 Course: Consumer Behavior Unit-1 Consumer in the Marketplace Unit-2 Models of Consumer Behavior Unit-3 Cultural Influences on Consumer Decision making Unit-4 Sociological Influences on Consumer Decision making Unit-5 Personal / Individual Influences on Decision making Unit-6 Psychological Influences on Decision making Unit-7 Consumer Decision Making Process Unit-8 Consumer Influence & Diffusion of Innovation Consumer Behavior IILM-Graduate School of Management
  • 3. 07/04/15 3 Consumer Behavior Cultural Influence on Consumer Behavior IILM-Graduate School of Management
  • 4. 07/04/15 4 Culture The fundamental determinant of a person’s wants and behaviors acquired through socialization processes with family and other key institutions. Consumer Behavior Cultural Influence on Consumer Behavior IILM-Graduate School of Management
  • 5. 07/04/15 5 Fast Facts About American Culture • Culture: The set of values, ideas, and attitudes that are learned and shared among the members of a group or society. – Examples – American culture, Latin American culture, Japanese culture • The average American – chews 300 sticks of gum a year – goes to the movies 9 times a year – takes 4 trips per year – attends a sporting event 7 times each year Consumer Behavior Cultural Influence on Consumer Behavior IILM-Graduate School of Management
  • 6. 07/04/15 6 Culture The growing child acquires a set of values, perceptions, preferences and behaviors through his or her family and other key institutions. – A child growing in US is exposed to the following values: achievements and success, activity, efficiency and practicality, progress, material comfort, individualism, freedom and youthfulness. – A child growing up in a traditional middle-class family in India is exposed to the following values: respect and care for elders, honesty, hard work, achievements and success and sacrifice. Consumer Behavior Cultural Influence on Consumer Behavior IILM-Graduate School of Management
  • 7. 07/04/15 7 Subculture • Each culture consists of smaller subcultures. • Subgroups within a larger culture that have unique values, ideas, and attitudes. • Subculture includes: 1. Nationalities 2. Religions 3. Racial groups etc. • Multicultural marketing grew out of careful marketing research, which revealed that different subculture/ culture did not always respond favorably to mass-market advertising. Consumer Behavior Cultural Influence on Consumer Behavior IILM-Graduate School of Management
  • 8. 07/04/15 8 Culture/Subculture “ When Kellogg launched its cornflakes in the Indian market, the response from the consumers was not very encouraging. The company conducted a market research and discovered that Indians prefer hot milk with cornflakes whereas the “crispiness” benefit that it was claiming could be delivered only when the cornflakes were mixed with cold Milk”. Consumer Behavior Cultural Influence on Consumer Behavior IILM-Graduate School of Management
  • 9. 07/04/15 9 Social Classes • Social class (members share similar values, interests and behaviors) • One classic depiction of social classes in US defined seven ascending levels, as follows: 1. Upper uppers 2. Lower uppers 3. Upper middles 4. Middle class 5. Working class 6. Upper lowers 7. Lower lowers Consumer Behavior Cultural Influence on Consumer Behavior IILM-Graduate School of Management
  • 10. 07/04/15 10 Social Classes: INDIA • Indian marketers use a term called Socioeconomic classification (SEC), which uses a combination of the education and occupation of the chief wage earner of the household to classify the buyers in urban areas. • This classifies all the urban household into eight broad categories namely, A1,A2,B1,B2,C,D,E1,E2; with A1 signifying highest purchase potential & E2 signifying the lowest. OCCUPATION EQUCATION Illiterate School SSC/HSC SSC/HSC PG/UG PG/UG up to 10 Non General Professional years Graduate Unskilled worker Skilled worker Shop owner Businessmen Self employed Supervisory level E2 E1 D D D D B1 B1 A2 A1 A1 A1 D D C C B2 A2 Consumer Behavior Cultural Influence on Consumer Behavior IILM-Graduate School of Management
  • 11. 07/04/15 11 UK socioeconomic classification scheme Consumer Behavior Cultural Influence on Consumer Behavior IILM-Graduate School of Management
  • 12. 07/04/15 12 Characteristics of Social Classes 1. Within a class, people tend to behave alike. Social classes differ in dress, speech patterns & preferences. 2. Social class conveys perceptions of inferior or superior position. 3. Class may be indicated by a cluster of variables-for example occupation, income, wealth, education, value orientation-rather than by a single variable. 4. Class designation is mobile over time. It means individuals can move up or down the social class ladder during their lifetimes. Consumer Behavior Cultural Influence on Consumer Behavior IILM-Graduate School of Management