Socio cultural factors in consumer decision processes
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Marketing involves both technical and social elements. ◦ Technical elements are generally universally ◦ Social elements are market specific and display the cultural differences of a given society The impact of socio-cultural factors on marketing is important in understanding consumer behaviour and planning appropriate market strategies
The output of how consumers behave in decision making in buying goods or services. ◦ An important part of marketing: Studies the reasons of consumers behaviour in their buying decisions Why, When, Where, What How ◦ Depends on different types of marketing stimuli (P’s) ◦ and other factors P.E.S.T - (Political, Economic, Socio-Cultural and Technological) These all influence the consumer black box* to produce responses for making decision about selecting products, brand choice, price etc. *Keegan, Warren et al., “The Black Box Model of Consumer Behaviour,” Marketing (Englewod Cliffs, NJ: Prentice Hall, 1992), 193. * Lewin, Kurt (1951) Intention, Will and Need in: Rapaport, David (Ed); “Organization and Pathology of Thought: Selected Sources”; Columbia University Press (New York)
The cognitive process of selecting a course of action from multiple alternatives. ◦ e.g. Shopping and deciding what to eat. A psychological construct that implies a commitment to action / choice. we can never "see" a decision BUT can conclude from observable behaviour when a decision has been made. ◦ Based on observable actions, we consider people have made a commitment to effect that action.
Generally three ways Herbert Alexander Simon (1947 & 1957) ◦ Economic claims: ◦ Economic decision making a vain Largely quantitative attempt to be rational Assume rationality/near perfect If a complete analysis is to be done- knowledge. decision immensely complex. Consumer theory /game theory Peoples information processing ability very limited. ◦ Psychological models A perfectly rational economy unrealistic. Qualitative -build on sociological People only partially rational - influenced factors like cultural and family by emotional and non-rational influences. considerations Concentrate on psychological and cognitive processes i.e. motivation and need recognition ◦ Consumer behaviour models Practical -used by marketers Blend economic and psychological Administrative Behaviour: A Study of Decision-Making Processes in Administrative Organizations 1947 - 4th ed. models. in 1997, Models of Man. John Wiley. Presents mathematical models of human behaviour - 1957.
Cultural, social, personal and psychological factors have great influence on consumer buyer behaviour. Human wants, perceptions, values, and behaviour are learned from society, family other institutions.
Customs, lifestyles, and values that characterize a society ◦ include anything within the context of society that has the potential to affect behaviour. Examples of socio-cultural variables. ◦ Population demographics, educational levels, norms and values, attitudes toward social responsibility...
"Collective programming of the mind which distinguishes the members of one category of people from another" Hofstede, G. (1984 p.51). ). National cultures and corporate cultures. In L.A. Samovar & R.E. Porter (eds.), Communication between cultures. Belmont, CA: Wadsworth. "Patterns relative to behaviour and the products of human action which may be inherited, that is, passed on from generation to generation independently of the biological genes" Parson, T. (1949 p.8). ). Essays in sociological theory. Glencoe, IL. "Learned and shared behaviour of a community of interacting human beings". Useem, j., & Useem, R. (1963 p.169). Human organizations, 22(3).
Culture consists of beliefs, behaviours, objects, and other characteristics common to the members of a particular group or society. ◦ Through culture, people and groups define themselves, conform to societys shared values, and contribute to society. includes many societal aspects: language, customs, values, norms, mores, rules, tools, technologies, products, organizations, and institutions. This term institution refers to clusters of rules and cultural meanings associated with specific social activities. Common institutions are the family, education, religion, work, and health care.
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Aesthetics Education Language Law and Politics Material Culture Religion Social Organizations Technology Values and Attitudes Terpstra, V. and Sarathy, R. (2000) International Marketing, 8th Edition, Dryden Press.
cultures, generationsMACRO SOCIAL genders, social class lifestyleMICRO SOCIAL sub-cultures, tribes interactions, practices individuals, subjects INDIVIDUAL cognition, motives, the unconscious BIOLOGICAL basic needs food Levels of Observation of Consumption (adapted from Desjeux, 1998)
Analyze how needs fit within the stages of the consumer behaviour model. ◦ (Note: Discuss either the consumer or industrial model, whichever applies to your product/service. Describe the use of consumer buying decisions‘ in formulating marketing strategies. Why will a Chinese consumer be interested in buying a General Motors Vehicle?