Transcript Chapter 14: Social Class Influences on Consumer Behavior

External Influences on
Consumer Behaviour
Culture
The sum total of learned
beliefs, values, and
customs that serve to
regulate the consumer
behavior of members of
a particular society.
Influence of culture
• Consumers both view themselves in the context of their
culture and react to their environment based upon the
cultural frame work that they bring to that experience.
Each individual perceives the world through his own
cultural lens.
• Culture Satisfies Needs
Culture exists to satisfy needs of the people of the
society. It offers order, direction, and guidance in
all phases of human problem solving:
Characteristics in Culture
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Culture is learned
Enculturation and acculturation
Language and symbols
Ritual
Sharing of Culture
Culture is Learned
• At an early age, we begin to acquire from our social environment a set
of beliefs, values, and customs that make up our culture.
Three distinct forms of cultural learning:
1. Formal learning: in which adults and older siblings teach a young
family member “How to behave”;
2. Informal learning: in which a child learns primarily by imitating the
behavior of selected others, such as family, friends, or TV stars.
3. Technical Learning: Which teachers instruct the child in an
educational environment about what, how and why it should be done.
Enculturation and Acculturation
• The learning of one’s own culture is known as
enculturation. The learning of a new or foreign
culture is known as acculturation.
Language and Symbols
To communicate effectively with their audiences, marketers must
use appropriate Language and symbols to convey desired
products characteristics.
Symbols
Verbal
Non verbal
Rituals
• A Ritual is a type of symbolic activity consisting of a
series of steps occurring in a fixed sequence and repeated
over time.
The standpoint of marketers is the fact that rituals tends to be
full with ritual products that are associated to some how
enhance the performance of the ritual.
Selected Rituals and Associated
product
SELECTED RITUALS
TYPICAL PRODUCTS
Wedding
Jwellery ,lehenga ,safa etc
50th Wedding anniversary
Catered party, card and gift, display of photos of the
couple’s life together
Diwali (festival)
Crackers,idols,sweets etc.
Valentine’s Day
Candy, card, flowerss
New Year’s Eve
Champagne, party, etc.
Culture is Shared
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Culture is viewed as group customs that link together the members of
the society. Common language is the critical component that makes it
possible for people to share values, experiences, and customs.
Social Institutions transmitting the element of culture and sharing of
culture
1. Family : primary agent for enculturation
2. Educational Institutions : imparts learning skills, history, patriotism,
citizenship and technical training.
3. Religious Institutions : Perpetuate religious consciousness, spiritual
guidance, and moral training.
4. Mass Media : wide range of cultural values.
Subcultures . . .
. . . a subdivision of a national culture that is based on some
unifying characteristic.
. . . members share similar patterns of behavior that are
distinct from those of the national culture.
Sub Culture
Categories
1. Religion
2. Geographic region
3. Age
4. Gender
Examples
Hindu,muslim,christians etc
North Indian ,south Indians etc.
Senior citizen, teenager
Female, male
Cross Culture influence
• Cross culture influence are norms and
values of consumers in foreign markets
that influence strategies of multinational
companies.
• Cultural differences in Nonverbal
Communication to be taken care.
Time : punctuality is given utmost
importance in western culture.
Space
Agreements
Symbols,colours
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.
Social class Results from Socioeconomic Factors
Socio economic factors:
Education, occupation
Income and Heritage
Social class –Upper ,Middle
and Lower
Behaviours –Preferences,
Purchases consumption
pattern
Status Consumption
The process by which consumers
actively increase their social standing
through (eye –catching )consumption
or possessions.
Categorization of social class
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Upper class
Upper Middle class
Lower-Middle class
Lower class
Social-Class Profiles
THE UPPER-UPPER CLASS
•Small number of well-established families
•Belong to best country clubs and sponsor major charity events
•Serve as trustees for local colleges and hospitals
•Prominent physicians and lawyers
•May be heads of major financial institutions, owners of major
long-established firms
•Accustomed to wealth, so do not spend money obviously
THE LOWER-UPPER CLASS--NEW Wealthy
•Not quite accepted by the upper crust of society
•Represent “new money”
•Successful business executive
•Prominent users of their new wealth
continued
THE UPPER-MIDDLE CLASS--ACHIEVING
PROFESSIONALS
•Have neither family status nor unusual wealth
•Career oriented
•Young, successful professionals, corporate managers, and
business owners
•Most are college graduates, many with advanced degrees
•Active in professional, community, and social activities
•Have a keen interest in obtaining the “better things in life”
•Their homes serve as symbols of their achievements
•Consumption is often eye-catching.
•Very child oriented
continued
THE LOWER-MIDDLE CLASS--FAITHFUL
FOLLOWERS
•Primary non-managerial white-collar workers and highly paid
blue-collar workers
•Want to achieve “respectability” and be accepted as good
citizens
•Want their children to be well behaved
•Prefer a neat and clean appearance.
Consumer Behavior and
Social Class
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Clothing, Fashion, and Shopping
The Pursuit of Leisure
Saving, Spending, and Credit
Social Class and Communication
Reference
Group
A person or group
that serves as a point
of comparison (or
reference) for an
individual in the
formation of either
general or specific
values, attitudes, or
behavior.
Eg : family, friends
etc
Indirect
Reference
Groups
Individuals or groups
with whom a person
identifies but does not
have direct face-to-face
contact, such as movie
stars, sports heroes,
political leaders, or TV
personalities.
Types of Groups
• Membership Groups :
• Formal and Informal
• Primary /Secondary
• Aspiration group:
• Anticipatory
• Symbolic
Types of Celebrity Appeals
TYPE
DEFINITION
EXAMPLE
Testimonial
Based on personal usage, a
celebrity attests to the quality of
the product or service
Wasim akram diabetes
check machine -Accuchek
Endorsement
Celebrity lends his name and
appears on behalf of a product or
service with which he/she may not
be an expert
Navvratan oil and Amitabh
Bachhan.
Spokesperson
Celebrity represents the brand or
company over an extended period
of time
Broad Categories of
Reference Groups influence
• Informative Influence:
• Normative influence :
• Comparative Influence :
Word-of-Mouth Communication
Much Information About Products and Services is
Actually Conveyed by Individuals on an Informal
Basis called Word-of-Mouth Communication (WOM).
Factors That Encourage WOM Are:
Person is Highly Involved With the Product
Person is Highly Knowledgeable About the Product
Person Has a Genuine Concern for Someone Else
Person May be Uncertain About a Recent Purchase
Negative Word-of-Mouth
• Negative Word-of-Mouth:
• Is weighted more heavily by consumers than
positive comments..
• May influence consumers’ attitudes toward a
product as well as their intention to buy it.
• Rumors are the chief form of negative WOM.
• Rumors often result in Boycotts of products,
companies, or services.
Opinion Leaders
An Opinion Leader is Someone Who is
Knowledgeable About related Products and Whose
Advice is Taken Seriously By Others in a given
situation.
Are Technically
Competent and
Have Expert
Power
Are Often Among
the First to Buy
New Products
Are Similar to
the Consumer in
Values and
Beliefs
Opinion
Leaders
Are Socially
Active in
Their Community
Have Prescreened,
Evaluated, and
Synthesized
Product Information
Extent of An Opinion Leader’s
Influence
• Very few people are Generalized Opinion
Leaders, someone whose recommendations
are sought for all types of purchases.
• More likely, opinion leaders are either:
• Monomorphic, or an expert in a limited field.
• Polymorphic, or an expert in several fields.
• Even opinion leaders who are Polymorphic,
tend to concentrate on one broad domain,
such as electronics or fashion.
Identifying Opinion Leaders
Self-Designating Method
Understanding internal
/psychological factors
influencing consumer
behaviour
Consumer as an Individual
Psycological Factors
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Motivation
Learning
Attitude
Perception
Types of Needs
• Innate Needs/Primary Needs
• Physiological (or biogenic) needs that are considered
primary needs or motives
• Eg : Food ,Clothing ,shelter etc
• Secondary Needs/Acquired needs
• Learned in response to environment.
• These are generally psychological
Eg :self esteem,prestige,power, status affection etc
Motivation Process
repetition
advertisements
Hunger
advertisements
Motivation
Buying
decision
Specific goal
/product
Specific goal
What is Motivation
• Motivation is the driving force within
individuals that impel them to action.
• This is that force which is produced
by a anxiety as a result of unfulfilled
needs.
Goals : result/fulfilled needs/wants
• Goals :The sought-after results of motivated behaviour.
• Generic goals are general categories of goals that
consumers see as a way to fulfill their needs
• Product-specific goals are specifically branded products
or services that consumers select as their goals.
• The goals selected by an individual depend on their:
• Personal experiences
• Physical capacity
• Prevailing cultural norms and values
Maslow’s Hierarchy of Need
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