Module 3- Sociological Influences

on Consumer Behaviour
• Culture & its impact on Consumer Behaviour –
Impact of Government & Laws on Culture –
Promotions & Communication by marketers
based on Culture in India – Case Studies –
Cross Cultural Perspectives – Sub-Culture:
Influence of sub-culture on Consumer
Behaviour – Sub-Culture based on Geographic
Region & Religion – Its impact on Consumer
Behaviour – Social Class in India – Applications
to Consumer Behaviour
 Culture’s influence on Consumer
Behaviour
• Derived from latin word ‘cultura’ –to build,
foster and cultivate
• Culture is the collective values, customs,
norms, arts, social institutions, and intellectual
achievements of a particular society
• Personality of society
 Culture’s influence on Behaviour
• Culture is an “invisible hand” that guides the
actions of people of a particular society.
 Culture
Is a learned response

Includes inculcated values

Is a social phenomenon
Culture
Is gratifying and continues for a
long time
Are similar and yet different

Prescribes the ideal standards of

behaviour
 Characteristics of Culture
• Natural and permeates widely into the social
system- Social stratification
• Satisfaction of needs- Eating out
• Not inborn but learned- Acculturation
• Shared- Language/customs/cuisine
• Dynamic & evolving with time
• Transferable
• Non existence in isolation- Celebrations
• Cultural Universals
 Components of Culture
• Values • Rituals
• Beliefs • Language
• Norms • Myths
• Religion • Symbols
• Custom & Traditions • Laws
• Social Organization • Artefacts
 Measurement of Culture
• Projective tests
• Attitude measurement tests
• Depth interviews
• Observation
• Content Analysis
 Implications for 4 P’s & Culture
Product
• Reflect
functional
Place
& Price • In some
emotional • Act as culture
• Distinct, symbol people look
easy to • Indicator for
Promotion
remember of quality convenience
• Must be • People and near by
positive vary in stores
price • Some look
for branded
sensitivity
stores
 Subculture
• Every culture contains smaller sub-units where
people are even more similar and homogenous
compared to the broad cultural spectrum.
• A group of people-distinct or hidden-which is within
a culture which is different from larger culture i.e
sub-units or sub-groups are known as sub-cultures
• People within sub-cultures possess distinctive sets of
values, beliefs, and customs and traditions that
differentiate them from the larger mainstream
culture to which they belong.
 Types of Subculture based on certain
variables
Subcultural Category Examples
Religion Hindu, Muslim, Christian, Parsi, Jain etc.
Geographic Location North, South, East, West
Age Young, Elderly, Middle age
Gender Male, Female
Occupation Service, Professionals, Businessman etc
Social Class Upper, Middle, Lower
Race Asian, Negro, European
Nationality Indian, Chinese
Sub-Cultural division and Consumption pattern
of consumers in India
• Within a larger society, there are sub systems of
values exhibiting variations in behavioral pattern.
• Marketers segment larger societies into smaller
subgroups that are homogeneous in relation to
cultural values.
• The individuals of a specific subculture vary in their
consumption pattern, show variation in lifestyle,
financial viability, food preferences, reading habits,
purchase of specific brands in a particular product
category, purchase time, store patronage, etc.
 Cross Culture
• The origin of the term ‘cross-cultural’ can be
traced to the cross-cultural surveys undertaken
by an American anthropologist, George Peter
Murdock in the 1930s.
• Comparing, combining, or contrasting two or
more cultures is ‘cross-cultural’.
• Cross-cultural research examines similarities and
dissimilarities across cultures.
• Cross-cultural analysis helps determine how
people in countries are similar and dissimilar to
one another.
 Cross-cultural consumer analysis
• In today’s day and age, consumers are
exposed to other cultures, and have adopted
and/or inculcated values and beliefs,
perspectives, and orientations that are much
different from their own or what existed
earlier.
• In general, consumers are exposed to foreign
cultures either through ones’ own initiatives
or through the marketers’ efforts.
 Cross-cultural Variations In Consumer
Behavior
• Cross-cultural consumer analysis is defined as
the effort to determine to what extent the
consumers of two or more nations are similar
or different.
• Marketers must conduct cross-cultural
consumer analysis to obtain consumer
reactions to alternative product and
promotional themes to choose best strategy
 Companies who understood the pulse of
consumers and their tastes
• Coca Cola • Toyota
• Disney • Intel
• Microsoft • Marlboro
• McDonald • Disney
• IBM
• Nokia
• GE
 Cultural Variations in Nonverbal
Communications
• Nonverbal communication systems are the
arbitrary meanings a culture assigns actions,
events, and things other than words
Factors Influencing Nonverbal
Communications
 Time Perspective
Monochronic Polychronic
 One thing at a time  Many things at once
 Concentrate on 1 job  Highly distractible
 Deadlines matter  Deadlines are secondary
 Commitment to task  Commitment to people
 Adhesion to plans  Changing plans is easy
 Promptness is valued  Promptness depends
 Short term relationships  Long term preferred

11
 Space
• The use people make of space and the
meanings they assign to their use of space
• Office space in corporations generally is
allocated according to rank or prestige rather
than need.
• Personal space is the nearest that others can
come to you in various situations without your
feeling uncomfortable.
 Symbols
• White Symbol for mourning or death in the Far
East; purity in the United States.
• Purple Associated with death in many Latin
American countries.
• Blue Connotation of femininity in Holland;
masculinity in Sweden, United States.
• White lilies Suggestion of death in England.
• Owl Wisdom in the United States; bad luck in
India.
 Relationships
• The rights and obligations imposed by
relationships and friendship are another
nonverbal cultural variable.
 Agreements
• Efficient legal system for ensuring that
business obligations are honored and for
resolving disagreements.
 Things
• The business and social situations that call for
a gift, and the items that are appropriate gifts,
vary widely.
• For example, a gift of cutlery is generally
inappropriate in Russia, Japan, Taiwan, and
Germany.
 Etiquette
• Represents generally accepted ways of
behaving in social situations.
 Cultural Variations
FACTORS EXAMPLES
Differences in language and meaning Words or concepts may not mean the
same in two different countries.

Differences in market segmentation The income, social class, age, and sex of
opportunities target customers may differ dramatically
in two different countries.

Differences in consumption patterns Two countries may differ substantially in

the level of consumption or use of
products or services.

Differences in the perceived benefits of Two nations may use or consume the
products and services same product in very different ways.

27
 Contd…
FACTORS EXAMPLES
Differences in the criteria for evaluating The benefits sought from a service may
products and services differ from country to country.

Differences in economic and social The “style” of family decision making

conditions and family structure may vary significantly from country to
country.
Differences in marketing research and The types and quality of retail outlets
conditions and direct-mail lists may vary greatly
among countries.
Differences in marketing research The availability of professional consumer
possibilities researchers may vary considerably from
country to country.

28
 Variations in Cultural Values
• Three broad forms of cultural values
• Other-oriented values reflect a society’s view
of the appropriate relationships between
individuals and groups within that society.
• Environment-oriented values
• Self-oriented Values
 Other-oriented values
• Individual/Collective. Are individual activity
and initiative valued more highly than
collective activity and conformity?
• Youth/Age. Is family life organized to meet the
needs of the children or the adults? Are
younger or older people viewed as leaders
and role models?
 Contd…
• Competitive/Cooperative. Does one obtain
success by excelling over others or by
cooperating with them?
• Diversity/Uniformity. Does the culture
embrace variation in religious belief, ethnic
background, political views, and other
important behaviors and attitudes?
 Contd…

• Extended/Limited family. To what extent does

one have a lifelong obligation to numerous
family members?
• Masculine/Feminine. To what extent does
social power automatically go to males?
 Environment-oriented values
• Environment-oriented values prescribe a
society’s relationship to its economic and
technical as well as its physical environment .
 Environment-Oriented Values
• Cleanliness. To what extent is cleanliness
pursued beyond the minimum needed for
health?
• Performance/Status. Is the culture’s reward
system based on performance or on inherited
factors such as family or class?
• Tradition/Change. Are existing patterns of
behavior considered inherently superior to
new patterns of behavior?
 Contd….
• Risk taking/Security. Are those who risk their
established positions to overcome obstacles
or achieve high goals admired more than
those who do not?
• Problem solving/Fatalistic. Are people
encouraged to overcome all problems, or do
they take a “what will be, will be” attitude?
• Nature. Is nature regarded as something to be
admired or overcome?
 Self-oriented Values
• Self-oriented Values reflect the objectives and
approaches to life that the individual
members of society find desirable .
 Self-Oriented Values
• Active/Passive. Is a physically active approach
to life valued more highly than a less active
orientation?
• Sensual gratification/Abstinence. To what
extent is it acceptable to enjoy sensual
pleasures
• Material/Nonmaterial. How much importance
is attached to the acquisition of material
wealth?
 Contd….
• Hard work/Leisure. Is a person who works harder
than economically necessary admired more than
one who does not?
• Postponed gratification/Immediate gratification.
Are people encouraged to “save for a rainy day”
or to “live for today”?
• Religious/Secular. To what extent are behaviors
and attitudes based on the rules specified by a
religious doctrine?
Marketing Across Cultural Boundaries is a
Difficult and Challenging Task
 Alternative for companies:
Standardization vs. adaptation
• When companies decide to enter foreign
markets, they must understand the cultural
similarities and dissimilarities that exist
between their indigenous culture and the
foreign culture.
• When cross-cultural analysis reveals vast
differences across cultures, adaptation is
advisable, where marketing mix must be
adapted as per the needs and preferences of
the local market.
 Promotions & Communication by
marketers based on Culture in India
• Brand names, logos, advertisements and
brand ambassadors must communicate
cultural meanings
 Contd….
• Advertisements convey symbolism through
message content, appeal and spokesperson
 Contd….
• Communication from marketers to
accommodate cultural shifts by identifying
new opportunities
 Contd….
• Marketers to use a local language or dialect
native to a region or country rather than a
literary, cultured, or foreign language which is
called Vernacular advertising
 Social Class
• A social class has a major influence on the
kinds of goods and services and/or brands
people buy and use, the prices they pay, and
the places from where they buy.
• A social class may be defined as a group of
people who share an equal status and possess
similar values and norms, attitudes and
opinions, and behavioural patterns.
 Social Status
• Social status is the degree of prestige the
members of one social class have in
comparison with members of other social
classes.
• Status is composed of several factors,
including wealth (amount of economic assets),
power (the degree of influence over others),
and the amount of esteem one receives from
others.
 Characteristics of Social Class

• Exhibit social status

• Multidimensional
• Hierarchical
• Homogenous with similar behaviour and
attitude
 Measuring Social Class
• Subjective Measures
– Subjective measures reflect one’s social-class
consciousness i.e. a person’s level of identification
with a given social class.
– Individuals are asked to estimate their own social-
class positions.

Which of the following 4 categories best describes your social class:

Lower Class []
Lower-Middle Class []
Upper-Middle Class []
Upper Class []
Do not Know []
 Contd….
• Objective Measures
– Consists of demographic variables and asking
respondents factual questions about themselves,
their families or place of residence
– Objective measures include variables such as
occupation, income, education etc.
• Reputational Measures
– Where in informants are selected within
community and ask them to assess and make
judgement about the class membership of other
people in community.
 Social Mobility
• A movement of individuals, groups or families
through a system of social hierarchy.
– Upward Mobility means opportunity to move
from a lower social class to higher one.
– Downward Mobility is moving down
 Product Price Place Promotion
-Product choice -Definition of the -Preferences -Message content
‘right price’ towards and context;
-Brand choice
organized or
-Imagery -Message appeals
-Priorities with unorganized
respect to -Reference pricing stores (the kirana -Spokespersons
functionality or or the mall)
-Discounts and -Media
symbolism, and
allowances -Preferences preferences, print
related purchase
towards physical media or
motivation -Price-quality
stores or online
(whether
stores broadcast media
utilitarian or relationship
-Store ambience
value-expressive)
and atmosphere

Social class and marketing mix: Elements to be considered

 Applications of Consumer Behaviour
• Marketing Strategy
• Regulatory Policy
• Social Marketing
• Informed Individuals
 1) Marketing Strategy and Consumer
Behavior
• Analysis of market the organisation is
considering
• On the basis of consumer analysis
organisation identifies groups of individuals,
households or firms with similar needs-
Segments
• Management selects one or more of these
segments as target markets
 Contd….
• Marketing strategy is formulated
• To survive provide value to customers than
competitors
• Customer Value=Benefits from product-Cost
of acquiring benefits
 Contd…
• Product is presented to the target market
consistently engaged in processing
information and making decisions which
intervenes between Marketing strategy and
outcomes .
• While products and services are external
experience is internal to each customer
• Outcomes based on marketing strategy occur
for firm, individual and society.
 Outcomes
• Firm • Society
– Product position – Economic
– Sales – Physical environment
– Customer satisfaction – Social welfare
• Individual
– Need satisfaction
– Injurious consumption
Marketing Strategy and Consumer Behavior
 2) Regulatory Policy
• Various bodies exist to develop, interpret and/or
implement policies designed to protect and aid
consumers
• Effective regulation of many marketing practices
requires extensive knowledge of consumer
behaviour.
• Consumer Financial Protection Bureau (CFPB),
Consumer Product Safety Commission (CPSC),
Federal Trade Commission (FTC), Food and Drug
Administration (FDA)
 3) Social Marketing
• Application of marketing strategies and tactics
to alter or create behaviours that have a
positive effect on targeted individuals or
society as a whole.
• Attempt to reduce smoking
• Successful social marketing strategy requires a
sound understanding of consumer behaviour.
 4) Informed Individuals
• Consumers understand the strategies and
tactics being used so they can be more
effective consumers.
• Understanding of consumer behaviour can
establish a foundation for reasoned business
ethics.