Culture and consumer behaviour

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Culture and consumer behaviour

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  4. 4. HowHow Core Values AffectCore Values Affect MarketingMarketing Core values define  How products are used in a society  Acceptable market relationships  Ethical behavior 4
  5. 5. What is Culture?What is Culture? • Sum total of Learned beliefs, Values, and Customs that serve to direct the consumer behavior of members of a particular society 5
  6. 6. Characteristics of cultureCharacteristics of culture  Learned response  Social phenomenon  Includes inculcated values  Culture as gratifying responses The Measurement of CultureThe Measurement of Culture  Content Analysis  Consumer Fieldwork  Value Measurement Instruments 6
  7. 7. Adapting Strategies toAdapting Strategies to Changing CulturesChanging Cultures Culture is adaptive :-::-: Marketing strategies must also be adaptive Advertising and Marketing efforts have difficulty changing behaviors or norms learned early in life. Marketers must address consumer attitudes and behavior. 7
  8. 8. How Culture AffectsHow Culture Affects Consumer BehaviorConsumer Behavior  Pre-purchase and Purchase Activities  Consumption and Divestment Activities 8
  9. 9. Influence on Pre-purchaseInfluence on Pre-purchase and Purchase Activitiesand Purchase Activities ҉ Culture affects what consumers think theythey need and what they perceiveneed and what they perceive ҉ Culture affects how consumers are likely to search for informationsearch for information ҉ Culture affects the importance placedimportance placed on certain attributes of alternatives ҉ Culture affects the amount of priceamount of price negotiationnegotiation during the purchase process 9
  10. 10. Influence on ConsumptionInfluence on Consumption Divestment ActivitiesDivestment Activities ‡ How consumers use or consume products? ‡ Consumers expectations about form and function vary between cultures? ‡ How individuals dispose of products ‡ Reselling products after use ‡ Giving them to others for use ‡ Recycling them 10
  11. 11. Ӿ SetsSets of learned beliefs, values, attitudes, habits and forms of behavior that are shared by subsetssubsets of a society and are transmitted from generation to generation within each subset. Indian perspective classification : Subcultural category Variations (Examples) Religion Hindu, Christian, Muslim, Parsi, Jain, etc Geographic location North, South, East, West Age Elderly (old), teenage (young), middle age Gender/sex Male, female Occupation Service, Professionals, businessman, etc Social class (status) Upper, middle, lower SubcultureSubculture 11
  12. 12. Sub Cultural division andSub Cultural division and consumption pattern in Indiaconsumption pattern in India Φ Geographic culture: Each state and religion has got its own traditional style of dressing,dressing, wearing ornaments, food preferences, etc .wearing ornaments, food preferences, etc . Φ Rural-Urban sub-cultural division. Φ Individualism versus collectivism Φ Climate 12
  13. 13. Social ClassSocial Class € The division of members of a society into a hierarchy of distinct status classes: o Upper classUpper class o Middle classMiddle class o Lower classLower class so that members of each class have relatively the same status and members of all other classes have either more or less status. 13
  14. 14. Characteristic Features OfCharacteristic Features Of Social ClassSocial Class  Persons within a given social class tend to behave more alikemore alike  Social class is hierarchicalhierarchical  Social class is measured as a weighted functionweighted function of one’s occupation, income, wealth, education, status, prestige, etc  Social class is continuouscontinuous rather than concrete Upper classUpper class Middle classMiddle class Lower classLower class 14
  15. 15. Factors responsible forFactors responsible for Social StratificationSocial Stratification a) Authority b) Income c) Occupation and achievement d) Education 15
  16. 16. Sr No. Status, value and prestige enjoyed Social Class Factors affecting social class 1 Low Lower class Lower level occupation with no authority, less income, and no education or minimum education. Example, labour class or clerks, etc., of lower level 2 Medium (neither high nor low) Middle Class Graduates or post graduates/ executives/ managers of companies with authority, drawing handsome salary of which certain amount can be saved and invested. Example, executives or middle level managers of companies 3 High Higher class Authoritative person, drawing handsome salary, very often professionally qualified, working in a very senior position or a person born into a rich family, with a good background of education 16
  17. 17. Cross cultural marketingCross cultural marketing o To what extent the consumers of two or more nations are similar or different.similar or different. o This will facilitate marketers to understand the psychological , social and culturalpsychological , social and cultural aspects of foreign consumers o So that they designdesign effective marketingeffective marketing strategiesstrategies for each of the specific National markets involved. 17
  18. 18. Problems in Cross CulturalProblems in Cross Cultural MarketingMarketing o Problems related to product selection o Problems related to promotion/ marketing communication o Problems related to the selection of distribution channel o Problems related to pricing 18
  19. 19. Influence of culture in globalInfluence of culture in global businessbusiness
  20. 20. MuslimMuslim Barbie'sBarbie's
  21. 21. SuccessSuccess stories …stories … #17 in#17 in ItalyItaly
  22. 22. #4 in Japan
  23. 23. Mc Donald’sMc Donald’s
  24. 24. Kraft FoodsKraft Foods - Oreo- Oreo
  25. 25. Summary & ConclusionSummary & Conclusion Cultural factors have higher influence on CB Know culture, subculture, social class, cross culture to Enter or Survive in market. Adaptability is MUST for Marketers. Global exposure helps in knowing the market. 25
  26. 26. Thank youThank you 26
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