CB culture subculture social class reference group

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CONSUMER BEHAVIOR

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CB culture subculture social class reference group

  1. 1. Everything that is socially learned and shared by the members of a society. All CUSTOMERS—MAY  BIOLOGICALLY SAME BUT:  WHAT THEY VALUE  HOW THEY ACT DIFFER ( AS PER THEIR CULTURAL BACKROUND) MARKETERS  TO INTERPRET THE REATIONS OF CONSUMERS TO ALTERNATIVE MARKETING STRATEGIES. BEHAVIOR OF CONSUMER CONDITIONED BY FIRST:  FIRSTLY BY PERSONAL TRAITS  SECONDLY BY FAMILY  3 RD AND 4 TH BY CULTURE IN WHICH THEY ARE BROUGHT UP AND SOCIAL CLASS IN WHICH THEY ARE PLACED.
  2. 2. LETS DEFINE IT: Culture is an aggregate of the learned beliefs, attitude, values, norms & customs of a society or group of people, shared by them & transmitted from generation to genertion within that society. REMEMBER <ul><li>CULTURE TOO CHANGES WITH TIME </li></ul><ul><li>SOCIETY THAT DEVELOP THE CULTURE IS CONTINUOUSLY BEING EXPOSED TO NEW EXPERIENCES. </li></ul><ul><li>ALSO SOCIETY or GROUP OF PEOPLE IS NOT FIXED BODY OF PEOPLE. </li></ul>
  3. 3. SUPPOSE: IF WE TALK OF EASTERN CULTURE:  IT INCLUDE VAST PORTION OF THE WORLD STREATCHING FROM EGYPT & RUSSIA TO INDIA, INDONESIA. STUDY SUB CULTURE  RUSSIAN CULTURE, INDIAN MAIN VEHICLES OF CULTURE : a. FAMILY b. RELIGIOUS INSTITUTION INFLUENCE OF CULTURE ON CONSUMER BEHAVIOR <ul><li>CONSUMPTION OF FOODS, CLOTHING AND HOUSING. (FOODS) </li></ul><ul><li>kosher foods  For person of Jewish sub culture </li></ul><ul><li>Vegetarian  large subculture in india </li></ul><ul><li>Avoidance of Beef  by hindus and sikhs. </li></ul>
  4. 4. <ul><li>Clothing: Preference of silk by indian ladies in San fransisco </li></ul><ul><li>Housing: Some see it as castle to protec, some see place of interactio etc. </li></ul><ul><li>PERCEPTION OF MESSAGES AND MEDIA: </li></ul><ul><ul><li>Media itself is vehicles of culture. </li></ul></ul><ul><ul><li>To reach & influence consumer of a particular culture. </li></ul></ul><ul><ul><li>As Marketer: You have to see how much influence a culture has on an individual. </li></ul></ul><ul><ul><li>So devise strategies not clash with values, belief & customs of culture. </li></ul></ul><ul><ul><li>Use of Hindu mythological stories etc . </li></ul></ul><ul><li>RECEPTIVITY TO NEW IDEAS & CHARGE </li></ul>INFLUENCE OF CULTURE ON CONSUMER BEHAVIOR
  5. 5. THE CHARACTERISTICS OF CULTURE <ul><li>CULTURE IS INVENTED: CONSISTS OF </li></ul><ul><ul><li>IDEOLOGICAL SYSTEM </li></ul></ul><ul><ul><li>TECHNOLOGICAL SYSTEM </li></ul></ul><ul><ul><li>AN ORGANISATIONAL SYSTEM. </li></ul></ul><ul><ul><li>IDEOLOGICAL SYSTEM </li></ul></ul>MENTAL COMPONENTS: Ideas, Bliefs, values & ways of reasoning-> what is desirable and undesirable. <ul><ul><li>b. TECHNOLOGICAL SYSTEM </li></ul></ul>Skills and craft-> enable to produce material goods derived from the natural environment. c. AN ORGANISATIONAL SYSTEM: family and social class: makes it possible for human to coordinate their behavior with the action of others.
  6. 6. 2. Culture is learned: Begin early in life. 3. Cultute is socially shared. It is a group phenomenon, shared by human beings living in organised societies. MCds, Levis jeans. Other also share each otherculture. 4. Culture are similar but different. Cooking, Calender other but differ in nature of elements  Differ Consumer Behavior. 5. Culture Adaptive. Change in some culture fast and in some slow. 6. Culture is prescriptive. Ideal standard a pattern of behavior, So common understanding.
  7. 9. DOMINANT CULTURE TRAITS OF U.S. CITIZENS AS A DISTINCT CULTURE GROUP THAT EXITS AS AN IDENTIFIABLE SEGMENT WITHIN A LARGE, MORE COMPLEX SOCIETY. RELATIONSHIP BETWEEN CULTURE AND SUBCULTURE IN ABOVE DIGRAM EACH SUBCULTURE SHARE ITS OWN UNIQUE TRAITS, YET BOTH SHARE THE DOMINANT TRAITS OF OVERALL AMERICAN CULTURE
  8. 10. PROMOTIONAL STRATEGY SHOULD NOT BE LIMITED TO TARGET A SINGLE SUBCULTURE MEMBERSHIP.
  9. 11. CONTINUE.. <ul><li>YOUR BELIEFS, VALUES AND CUSTOMS DIFFER—SO MARKETER TO TARGET THAT—ALSO YOU MAY BE DIFFERENT TO OTHER SUBCULTURE VALUE, BELIEFS AND CUSTOMS  </li></ul><ul><ul><ul><ul><ul><li>OVERALL YOU ARE PART OF GREATER CULTURE AND HOLD ON TO DOMINANT BELIEFS OF THE OVERALL SOCIETY. </li></ul></ul></ul></ul></ul>
  10. 12. NATIONALITY RELIGION GEOGRAPHIC LOCATION RACE AGE SEX EACH OF THESE CAN BE BROKEN DOWN INTO SMALLER SEGMENTS THAT CAN BE REACHED THROUGH SPECIAL COPY APPEALS AND SELECTIVE MEDIA CHOICES. AS A MARKETER: MUST UNDERSTAND FOR THE PRODUCT CATEGORY HOW SPECIFIC SUBCULTURE MEMBERSHIPS INTERACT TO INFLUENCE THE CONSUMER`S PURCHASE DECISION.
  11. 13. EXAMPLES OF MAJOR SUBCULTURAL CATEGORIES CATEGORIES EXAMPLES NATIONALITY(BIRTH PLACE) GREEK,ITALIAN,RUSSIAN RELIGION CATHOLIC, HINDU,SIKH GEOGRAPHIC REGION EASTERN, SOUTHERN SOUTHWESTERN RACE AFRICAN AMERICAN, ASIAN AGE TEENAGER, ELDERLY GENDER FEMALE, MALE OCCUPATION BUS DRIVER, COOK, SCIENTIST SOCIAL CLASS LOWER, MIDDLE , UPPER
  12. 14. PERSONALITY TRAITS SUBJECTIVE CULTURE: Regional Ethnic Religious Linguistic National Professional Organizational Group SOCIAL NORM COGNATIVE BELIEFS ATTITUDE PRACTICES VALUES BEHAVIORAL INTENTION BEHAVIOR A THEORETICAL MODEL OF CULTURE`S INFLUENCE ON BEHAVIOR( SCHIFFMAN CHAPTER 12)
  13. 15. CONTINUE….. <ul><li>Role that subjective culture ( on left side of the model) plays in determining our beliefs, practices and values, which in turn impact our social norms, attitude, behavioral intentions and ultimately our BEHAVIOUR. </li></ul><ul><li>So CULTURE: as the sum total of learned beliefs, values and customs that serve to direct the consumer behavior of members of a particular society. </li></ul>
  14. 16. Few important things <ul><li>Culture is learned </li></ul><ul><li>Culture is shared( a significant portion of society  share belief, valueor practice). </li></ul><ul><li>Culture is dynamic( to fullfill its need-gratifying role, culture continually must evolve it is to function in the best interest of a society) </li></ul><ul><li>So as marketer: see and try to get right,new products as per behaviour. </li></ul>
  15. 17. SOCIAL CLASS AND C.B <ul><li>PUT SIMPLE: </li></ul>
  16. 18. CONTINUE… <ul><li>AS PER RESEARCHERS: </li></ul><ul><li>DIVIDE THE CONTINUUM INTO A SMALL NUMBER OF SPECIFIC SOCIAL CLASSES OR STRATA. </li></ul><ul><li>UNDER THIS INDIVIDUAL OR FAMILY IS ASSIGNED TO A SOCIAL CLASS CATOGARY. </li></ul>
  17. 19. SOCIAL CLASS-SOCIAL STATUS RESEARCHERS OFTEN MEASURE SOCIAL CLASS IN TERMS OF SOCIAL STATUS.
  18. 20. SOCIAL CLASS IS HIERARCHICAL AND A FORM OF SEGMENTATION.
  19. 21. MEASUREMENT OF SOCIAL CLASS <ul><li>SUBJECTIVE MEASURES </li></ul><ul><li>REPUTATIONAL MEASURES </li></ul><ul><li>OBJECTIVE MEASURES </li></ul>
  20. 22. SUBJECTIVE MEASURE <ul><li>INDIVIDUALS ARE ASKED TO ESTIMATE THEIR OWN SOCIAL CLASS. </li></ul><ul><li>Q: WHICH OF THE FOLLOWING DESCRIBE YOUR SOCIAL CLASS. </li></ul>LOWER CLASS LOWER-MIDDLE CLASS UPPER-MIDDLE CLASS UPPER CLASS DO NOT KNOW/REFUSE TO ANSWER
  21. 23. REPUTATIONAL AND OBJECTIVE MEASURES. <ul><li>REPUTATIONAL: USE OF INITIAL JUDGEMENT AND FINAL JUDGEMENT BY TRAINED RESEARCHER. </li></ul><ul><li>OBJECTIVE: </li></ul><ul><ul><li>YOU PUT DIFFERENT STATEMENTS AND TRY TO INFER THE SOCIAL CLASS. VARIABLES ARE SELECTED AND PUT IN FORM OF QUESTIONNAIRE. </li></ul></ul>
  22. 24. OBJECTIVE MEASURES <ul><li>2 TYPES: SINGLE- VARIBALE INDEX AND COMPOSITE – VARIABLES </li></ul><ul><li>SINGLE: USE OF ONE SOCIO-ECONOMIC VARIABLE TO EVALUATE CLASS. </li></ul><ul><ul><ul><li>OCCUPATION, INCOME, EDUCATION </li></ul></ul></ul><ul><ul><li>OCCUPATION: WIDLEY USED BY MARKETERS FOR DEFINING TARGET MARKET FOR THEIR PRODUCTS. </li></ul></ul><ul><ul><ul><li>ACCOUNTANTS  TARGET AFTER 31 ST MARCH FOR VACATIONS. </li></ul></ul></ul>
  23. 25. NEWSPAPER/MAGAZINE MEDIAN HOUSEHOLD INCOME BUSINESS WEEK $65000 MONEY $55000 GOLF DIGEST $49900 MOTOR BOATING $40000 PC MAGAZINE $35000 NEWSWEEK $30000 STAR $25000 READERS MEDIAN HOUSEHOLD INCOME FOR SELECTED PUBLICATIONS: EXAMPLE
  24. 26. COMPOSITE- VARIABLE INDEXES <ul><li>USE OF MORE THAN ONE SOCIOECONOMIC VARIABLES TO DEFINE CLASS/STATUS. </li></ul><ul><ul><li>Example: Research  consumer perception of mail and phone order shopping reveals that the higher the socioeconomic status( income, occupational, education), the more positive are the consumer`s rating of mail and phone order buying. </li></ul></ul><ul><ul><li>: SO AS A MARKETER YOU HAVE TO DEVISE THE RIGHT APROACH. WAL MART, K MART TARGET WORKING CLASS SO ABOVE EXAMPLE MAY NOT FOUND GOOD FOR THEM TO USE CATALOG AND TELEPHONE SELLING APPROACHES. </li></ul></ul>
  25. 27. CONSUMER BEHAVIOR APPLICATION OF SOCIAL CLASS
  26. 28. USE OF SOCIAL CLASS: C.B APPLICATION IN SELECTED CLASS <ul><li>1.CLOTHING, FASHION AND SHOPPING. </li></ul><ul><ul><li>CLOTHING: PEOPLE DRESS TO FIT THEIR SELF-IMAGE. </li></ul></ul><ul><ul><li>FASHION: LOWER –MIDDLE CLASS  GO FOR T-SHIRTS, UPPER CLASS LOOK FOR OTHER MEASURE WHICH REFLECT THERE CLASS. </li></ul></ul><ul><ul><li>SHOPPING: WHERE HE SHOPS, SOCIAL CLASS DETERMINE THIS. SO THEY PREFER NOT TO GO TO SHOP WHICH PROJECT DIFFERENT IN CONTRAST TO THERE SOCIAL CLASS. </li></ul></ul>
  27. 29. CONTINUE.. <ul><li>2. THE PURSUIT OF LEISURE: </li></ul><ul><li>- THE CHOICE OF RECREATIONAL AND LEISURE TIME ACTIVITIES AS PER THEIR SOCIAL CLASS. </li></ul><ul><li>EXAMPLE: UPPER CLASS  LIKELY TO ATTEND THEATER AND CONCERTS, ATTEND GAMES ETC. AS COMPARED TO LOWER CLASS. </li></ul><ul><li>SO MARKETER HAS TO LEARN ALL THESE IN ORDER TO COME UP WITH GOOD MARKETING STARTERGIES. </li></ul>
  28. 30. CONTINUE.. <ul><li>3. ALSO SOCIAL CLASS REFLECTED THROUGH PEOPLE  SAVING, SPENDING AND CREDIT. </li></ul><ul><li>UPPER  MORE READY TO TAKE RISK </li></ul><ul><li>LOWER  SAFETY AND SECURITY. </li></ul><ul><li>4. SOCIAL CLASS AND COMMUNICATION. </li></ul><ul><li>SOCIAL CLASSESS DIFFER IN TERMS OF MEDIA HABBITS AND IN HOW THEY TRANSMIT AND RECEIVE COMMUNICATION. </li></ul><ul><li>SO MARKETER ROLE INCREASE IN THIS. </li></ul>
  29. 31. EXPLAINED AS: <ul><li>QUESTION WAS ASKED: </li></ul><ul><ul><li>Where you USUALLY purchase the petrol. </li></ul></ul><ul><ul><li>UPPER-MIDDLE-CLASS  AT IOL,BP </li></ul></ul><ul><ul><li>LOWER –MIDDLE-CLASS  AT THE STATION ON MAIN AND STREET NO. 4. </li></ul></ul><ul><ul><li>THIS REFLECT THEIR VIEW  UPPER-MIDDLE- HAVE BROADER VIEW </li></ul></ul><ul><ul><li>LOWER-MIDDLE-CLASS- NARROW OR PERSONAL VIEW </li></ul></ul>
  30. 33. GROUP: DEFINE AS TWO or MORE PEOPLE WHO INTERACT TO ACCOMPLISH EITHER INDIVIDUAL OR MUTUAL GOALS.
  31. 34. A REFERENCE GROUP: IS ANY PERSON or GROUP THAT SERVES AS A POINT OF COMPARISION ( or reference) FOR AN INDIVIDUAL IN FORMING EITHER GENERAL or SPECIFIC VALUES, ATTITUDES, or A SPECIFIC GUIDE FOR BEHAVIOR. <ul><li>SO THIS HELPS  </li></ul><ul><li>UNDERSTAND </li></ul><ul><ul><li>IMPACT OF OTHER PEOPLE ON INDIVIDUAL </li></ul></ul><ul><ul><ul><li>CONSUMPTION </li></ul></ul></ul><ul><ul><ul><li>BELIEFS </li></ul></ul></ul><ul><ul><ul><li>ATTITUDE </li></ul></ul></ul><ul><ul><ul><li>BEHAVIOR </li></ul></ul></ul>MARKETER: METHODS SOMETIMES USE TO EFFECT DESIRED CHANGES IN CONSUMER BEHAVIOR.
  32. 35. USE OF REFEENCE GROUPS BY MARKETER: IT SERVES AS FRAMES OF REFERENCE FOR INDIVIDUALS IN THEIR PURCHASE or CONSUMPTION DECISIONS. NORMATIVE REFEENCE GROUPS : THAT INFLUENCE GENERAL VALUES or BEHAVIOR: EXAMPLE: CHILD`S NORMATIVE GROUP IS THE IMMEDIATE FAMILY. COMPARATIVE REFERENCE GROUP : SERVE AS BENCHMARKS FOR SPECIFIC or NARROWLY DEFINED ATTITUDES or BEHAVIOR. EXAMPLE:: NEIGHBORING FAMILY: THEIR LIFE STYLE  IS ADMIRABLE AND WORTH TO IMITATE.
  33. 36. INDIRECT: DONOT HAVE DIRECT FACE TO FACE CONTACT: MOVIE STARS, SPORT HEROES ETC.
  34. 37. MAJOR CONSUMER REFERENCE GROUPS
  35. 38. AS A MARKETER YOU HAVE TO SEE THE CONSUMER CONFIRMITY: SEE THE IMPACT or LEVEL OF IMPACT ON CONSUMER ATTITUDE AND BEHAVIOR BY ENCOURAGING CONFIRMITY. <ul><li>TO INFLUENCE : A REFERENCE GROUP MUST HAVE FOLLOWING: </li></ul><ul><li>Inform or make the individual aware of a specific product or brand. </li></ul><ul><li>Provide the individual with the opportunity to compare his or her own thinking with the attitude and behavior of the group. </li></ul><ul><li>Influence the individual to adopt attitude and behavior that are consistent with the norms of the group. </li></ul><ul><li>Legitimize the decision to use the same products as the group. </li></ul>
  36. 39. Sometimes non-confirmity is used by marketers to switch the consumer from using one brand to another brand(reference group).
  37. 40. USE OF CELEBRITY IN DIFFERENT WAYS
  38. 41. TESTIMONIAL: BASED ON PERSONAL USAGE, A celebrity attests to the quality of the product or service. ENDORSEMENT: Celebrity lends his or her name and appears on the behalf of a product or service with which he or she may or may not be an expert.. ACTOR: Celebrity presents a product or service as part of character endorsement. SPOKESPERSON: Celebrity represents the brand or company over an extended period of time. .
  39. 42. DIFFERENT WAYS OF USING REFERENCE GROUPS APPEAL: THROUGH: THE EXPERT: As his or occupation, special training or experience: helps the propective consumer evaluate the product or service that adv promotes. Example frying PAN endorse by CHEF. THE COMMON MAN: Use of testimonial of Satisfied customer are used is called common mans approach. Laundry Detergent can DEODORISE Clothes. THE EXECUTIVE AND EMPLOYEE SPOKESPERSON: Here executive or employee are used: CEO etc CEO Lee Iacocca: Chrysler TRADE OR SPOKES-CHARACTER: TONY THE TIGRE, NINJA TURTLES

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