Socio cultural factors in consumer decision processes


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Socio cultural factors in consumer decision processes

  1. 1. John Sutton
  2. 2. Bite the wax tadpole Eire 1994 Eat your fingers off
  3. 3.  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
  4. 4.  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)
  5. 5.  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.
  6. 6.  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.
  7. 7.  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.
  8. 8.  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...
  9. 9.  "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).
  10. 10.  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.
  11. 11. UK Cheese maker in a pickle over exports Friday 01 April 2011
  12. 12.  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.
  13. 13. 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)
  14. 14.  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?