Defining Culture

1) Shared behavior
Systematized way people do things Avoid confusion Allow cooperation Behavior imposed by sanctions, rewards and punishment

2) Collective behavior, beliefs, values, habits, tradition and heritage of a society 3) Sum total of learned beliefs, values and customs that serve to direct the consumer behavior of members of a particular society

Defining Culture
4) Beliefs: Something believed as true
Ethics good, moral Aesthetics beautiful, pleasant Doctrine political, social, ideological

Dynamics of Culture
Omnipresent Culture Satisfies changing need Culture is learned Enculturation and acculturation Language and Symbols Ritual Culture is a group phenomenon

Defining Sub-culture
A social group within a national culture that has distinctive patterns of behavior and beliefs. A Culture Socio-cultural Basis
Nationality Religion Social Class

Demographic Basis
Region Language Occupation Age Sex

REFERENCE GROUPS IMPACTING CONSUMER BEHAVIOR

What Is a Group?
Two or more people who interact to accomplish either individual or mutual goals A membership group is one to which a person either belongs or would qualify for membership A symbolic group is one in which an individual is not likely to receive membership despite acting like a member

Defining Reference Group

A group of individuals whom one refers to or who serves as a point of reference, with regard to formation of behavior, beliefs, attitudes and aspirations Marketers view reference groups as people who are consulted or who influence an individuals purchase decisions INHERITED (FAMILY) CREATED (FRIENDS)

Broad Categories of Reference Groups

Normative Reference Groups Comparative Reference Groups

Classification of Reference Group

1) Normative Reference Groups (A group that influences the general values or behaviour of an individual- a childs normative reference group is the immediate family) 2) Comparative Reference Groups (A group whose norms serve as a benchmark for highly specific or narrowly defined types of behavior - a family whose lifestyle appears to be admirable )

Classification of Reference Group

3) Direct Reference Group (personal or direct interaction with the referents-telephonic or faceto-face contacts) 4) Indirect Reference Group (no personal or direct interaction celebrity) 5) Positive Reference Group (members behavior or values are attractive charity) 6) Negative Reference Group (whose behavior serves as a model of what not to do gambling)

Teens are very influenced by indirect reference groups.

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Major Consumer Reference Groups

Consumer Socialization

The process by which children acquire the skills, knowledge, and attitudes necessary to function as consumers.

Copyright 2007 by Prentice Hall

A Simple Model of the Socialization Process

Other Functions of the Family

Economic well-being Emotional support Suitable family lifestyles

Eight Roles in the Family Decision-Making Process

ROLE Influencers DESCRIPTION Family member(s) who provide information to other members about a product or service Family member(s) who control the flow of information about a product or service into the family Family member(s) with the power to determine unilaterally or jointly whether to shop for, purchase, use, consume, or dispose of a specific product or service Family member(s) who make the actual purchase of a particular product or service Family member(s) who transform the product into a form suitable for consumption by other family members Family member(s) who use or consume a particular product or service Family member(s) who service or repair the product so that it will provide continued satisfaction. Family member(s) who initiate or carry out the disposal or discontinuation of a particular product or service

Gatekeepers
Deciders

Buyers Preparers Users Maintainers Disposers

Copyright 2007 by Prentice Hall

Reference Group Influence

Important Consumer Reference Groups
Family Own Culture Selected Sub-culture

Peers

Individual Customer

Friends

Other Culture Social Class

Aspirational Reference Groups and Role Models

Important Reference Group and Appeals

Friends Shopping Group Work Groups Virtual Communities Brand Communities Consumer-Action Groups Celebrities The Expert The Common Man The Effective and Employee Spokesperson Other Reference Groups Appeals

Selected consumer-related reference groups

Friendship groups informal, unstructured Shopping groups- food, clothing, time pass Work groups at jobs, more than 35 hrs per week, formal groups Virtual groups or communities internet, blogs, social sites Brand communities interactive marketing, grouping for the purpose of a specific brand Consumer action groups for the rights of the consumers

Social Class
Birds of a feather flock together Social class a status hierarchy by which groups and individuals are classified on the basis of esteem (regard, respect) and prestige (reputation, influence derived from achievements). American Marketing Association The different lifestyles of social classes lead to different benefits being sought

Characteristics of Social Class

Is hierarchical Is a natural form of segmentation Provides a frame of reference for consumer behaviour Reflects a persons relative social status

Social class profiles

1) The Upper-upper class: Small number of well established families, prominent physicians and lawyers, accustomed to wealth 2) Lower-Upper class: New wealth, successful business executives, conspicuous consumers 3) Upper-Middle class: Achieving professionals, social activities, career-oriented, corporate managers

Social class profiles

4) Lower-middle class: faithful followers, highly paid blue-collar workers, achievement oriented 5) Upper-Lower class-Security minded, interested to enhance enjoyment, largest social class segment 6) Lower-Lower class poorly educated, unskilled laborers, day-to-day existence