Culture And Social Class


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Impact of Culture and Social Class on Consumer Behaviour

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Culture And Social Class

  1. 1. Culture & Consumer Behaviour Dr. Rohit Vishal Kumar Reader, Department of Marketing Xavier Institute of Social Service P.O. Box No: 7, Purulia Raod Ranchi – 834001 Jharkhand, India
  2. 2. A video for the class
  3. 3. Questions on the Video? <ul><li>Describe the video? </li></ul><ul><li>What is the video promoting? </li></ul><ul><li>Discussion: </li></ul><ul><ul><li>Do you think whether the video will be successful in the Indian Corporate environment? </li></ul></ul><ul><ul><li>Give Reasons in support for your answer </li></ul></ul>The Video will not be successful in India Because of C U L T U R E
  4. 4. What is Culture? <ul><li>Culture is the complex whole that includes knowledge, beliefs, art, law, morals, customs, and any other capabilities and habits as acquired by the human beings as members of the society </li></ul><ul><li>Features of Culture </li></ul><ul><ul><li>Comprehensive concept </li></ul></ul><ul><ul><li>Acquired in nature </li></ul></ul><ul><ul><li>Acts as a boundary </li></ul></ul><ul><li>What do you like as a pizza topping? </li></ul><ul><ul><li>USA : pepperoni </li></ul></ul><ul><ul><li>Japan : Squid </li></ul></ul><ul><ul><li>England : Tuna and Corn </li></ul></ul><ul><ul><li>Australia : Eggs </li></ul></ul><ul><ul><li>India : Pickles </li></ul></ul>
  5. 5. Values and Norms <ul><li>Norms: </li></ul><ul><ul><li>Are the rules (or boundaries) that specify or prohibit certain behaviours in specific situation </li></ul></ul><ul><ul><li>They are derived from cultural values or widely held beliefs that affirm what is desirable </li></ul></ul><ul><ul><li>Violation of norms results in sanction or punishments </li></ul></ul><ul><li>Values and Norms are “obeyed without thinking” </li></ul><ul><li>Values and Norms change with time </li></ul><ul><li>Variation in Cultural Values </li></ul><ul><ul><li>Other Oriented Values </li></ul></ul><ul><ul><li>Environment Oriented Values </li></ul></ul><ul><ul><li>Self-Oriented Values </li></ul></ul><ul><li>Companies need to adopt their marketing strategy with cultural norms </li></ul><ul><ul><li>McDonald in India has adopted its market offering: No Pork or Beef. Indian Thali also being served. In north India – non-veg have tandoori flavor. In south India – non-veg have chettinad flavor </li></ul></ul>
  6. 6. Other Oriented Values <ul><li>Reflects society’s view of appropriate relationships between individual and groups within a society </li></ul><ul><li>Consists of: </li></ul><ul><ul><li>Individual / Collective </li></ul></ul><ul><ul><ul><li>Focus on individual or collective action </li></ul></ul></ul><ul><ul><li>Youth / Age </li></ul></ul><ul><ul><ul><li>Focus on children or mature persons </li></ul></ul></ul><ul><ul><li>Extended / Nuclear Family </li></ul></ul><ul><ul><ul><li>Focus on Extended or Nuclear Family </li></ul></ul></ul><ul><ul><li>Masculine / Feminine </li></ul></ul><ul><ul><ul><li>Society gives more weightage to females or males </li></ul></ul></ul><ul><ul><li>Competitive / Cooperative </li></ul></ul><ul><ul><ul><li>Do people compete or cooperate for success </li></ul></ul></ul><ul><ul><li>Diversity / Uniformity </li></ul></ul><ul><ul><ul><li>Is diversity accepted or is conformity more valued? </li></ul></ul></ul>
  7. 7. Environment Oriented Values <ul><li>Prescribes a society’s relationship to its economic, technical and physical environment </li></ul><ul><li>Consists of: </li></ul><ul><ul><li>Cleanliness </li></ul></ul><ul><ul><ul><li>Emphasis placed on cleanliness </li></ul></ul></ul><ul><ul><li>Performance / Status </li></ul></ul><ul><ul><ul><li>Emphasis on performance or status </li></ul></ul></ul><ul><ul><li>Tradition / Change </li></ul></ul><ul><ul><ul><li>Emphasis on Change or traditional aspects </li></ul></ul></ul><ul><ul><li>Risk Taking / Risk Averse </li></ul></ul><ul><ul><ul><li>Willingness to take risk or risk averse </li></ul></ul></ul><ul><ul><li>Problem Solving / Fatalistic </li></ul></ul><ul><ul><ul><li>Emphasis on problem solving or “chalta hai” attitude </li></ul></ul></ul><ul><ul><li>Nature </li></ul></ul><ul><ul><ul><li>Extent of emphasis on nature </li></ul></ul></ul>
  8. 8. Self-Oriented Values <ul><li>Reflects the objectives and approaches that the individual member of the society finds desirable </li></ul><ul><li>Consists of: </li></ul><ul><ul><li>Active / Passive </li></ul></ul><ul><ul><ul><li>Physical activity valued more than passive lifestyle </li></ul></ul></ul><ul><ul><li>Sexual Gratification / Abstinence </li></ul></ul><ul><ul><ul><li>Is sex (and sexuality) accepted or not </li></ul></ul></ul><ul><ul><li>Material / Non-Material </li></ul></ul><ul><ul><ul><li>Importance attached to material wealth </li></ul></ul></ul><ul><ul><ul><li>Instrumental materialism : acquisition to enable one to do something </li></ul></ul></ul><ul><ul><ul><li>Terminal Materialism : acquisition for the sake of owning the item. </li></ul></ul></ul><ul><ul><li>Hard Work / Leisure </li></ul></ul><ul><ul><ul><li>Is hard work admired or leisure is emphasized </li></ul></ul></ul><ul><ul><li>Postponed Gratification / Immediate Gratification </li></ul></ul><ul><ul><ul><li>Outlook towards savings or spending </li></ul></ul></ul><ul><ul><li>Religious / Secular </li></ul></ul><ul><ul><ul><li>Is religion important or not </li></ul></ul></ul>
  9. 9. Culture and Verbal Communication <ul><li>Differences in Language leads to barriers in communication </li></ul><ul><li>Examples from some Companies </li></ul><ul><ul><li>Griptight Ltd. changed the name of baby soothers to pacifiers for the USA markets </li></ul></ul><ul><ul><li>Whirlpool is virtually unpronounceable in Spanish. So they are hunting for a new name for Spanish speaking countries </li></ul></ul><ul><ul><li>Differences in US and British English </li></ul></ul><ul><ul><ul><li>Cookie / Biscuit </li></ul></ul></ul><ul><ul><ul><li>Elevator / Lift </li></ul></ul></ul><ul><ul><ul><li>Gas / Petrol </li></ul></ul></ul><ul><ul><ul><li>Apartment / Flat </li></ul></ul></ul><ul><ul><li>Name of Ford Pinto changed to Corcel in Brazil </li></ul></ul>Pinto means “Small Male Sexual Organ” in Brazilian Spanish Corcel means “Horse”
  10. 10. Culture &Non-Verbal Communication <ul><li>Non verbal communications are the arbitrary meanings a culture assigns to actions, events and things </li></ul><ul><li>Components </li></ul><ul><ul><li>Time </li></ul></ul><ul><ul><li>Space </li></ul></ul><ul><ul><li>Symbols </li></ul></ul><ul><ul><li>Friendship </li></ul></ul><ul><ul><li>Agreements </li></ul></ul><ul><ul><li>Things </li></ul></ul><ul><ul><li>Etiquette </li></ul></ul>
  11. 11. Time <ul><li>On a cultural level </li></ul><ul><ul><li>Monochronic Time Perspective: </li></ul></ul><ul><ul><ul><li>Time is viewed as linear and fixed in nature. It is considered similar to a commodity. Time takes precedence over everything else </li></ul></ul></ul><ul><ul><ul><li>Mainly in USA, Canada, Western Europe, Australia </li></ul></ul></ul><ul><ul><li>Polychronic Time Perspective: </li></ul></ul><ul><ul><ul><li>Time is viewed as a never ending dynamic entity. People and relationships take precedence over time </li></ul></ul></ul><ul><ul><ul><li>Mainly in India, China, Latin America and Ancient Surviving Civilisations </li></ul></ul></ul><ul><li>On a personal level </li></ul><ul><ul><li>Generally time required for a project is directly proportional to the importance of the project </li></ul></ul><ul><ul><li>Promptness is important in monochromic culture </li></ul></ul>
  12. 12. Space <ul><li>In most societies, space around a person is seen as a personal space </li></ul><ul><li>The larger the personal space the better off the person </li></ul><ul><li>In traditional societies personal space is smaller </li></ul><ul><li>Example: </li></ul><ul><ul><li>Bigger Offices for high executives in USA </li></ul></ul><ul><ul><li>Latin American have substantially shorter space </li></ul></ul>
  13. 13. Symbols <ul><li>Cultures assign different meaning to symbols </li></ul><ul><li>Colors, Animals, Shapes, Numbers and music have different connotation across cultures: </li></ul><ul><li>Examples: </li></ul><ul><ul><li>A leading US Golf Ball manufacturer failed to sell its products in Japanese market because it was packaged in sets of four </li></ul></ul><ul><ul><ul><li>Japanese see 4 as a symbol of death </li></ul></ul></ul><ul><ul><li>Pepsi –Cola lost out on market share in Latin America when it changed the color of its vending machine from deep blue to light blue </li></ul></ul><ul><ul><ul><li>Light blue is associated with death in Latin America </li></ul></ul></ul><ul><ul><li>7 is considered to be lucky in India, Czech Republic, Nicaragua and USA </li></ul></ul><ul><ul><li>7 is considered unlucky in Ghana, Kenya, Singapore </li></ul></ul>
  14. 14. Friendship, Agreements & Things <ul><li>Friendship refers to a close personal relationship and Trust </li></ul><ul><ul><li>Business agreements usually a governed by friendship </li></ul></ul><ul><ul><li>Specially in China, India, Latin America </li></ul></ul><ul><li>Agreements refer to pact undertaken to discharge obligations </li></ul><ul><ul><li>High Context Culture: where emphasis is more on word of mouth </li></ul></ul><ul><ul><ul><li>Example: Japan, China, India </li></ul></ul></ul><ul><ul><li>Low Context culture: Where emphasis is more on documentation </li></ul></ul><ul><ul><ul><li>Example: USA, Britain </li></ul></ul></ul><ul><li>Things refer to use of products and services in a society </li></ul><ul><ul><li>Possession of material goods is seen as good in some countries </li></ul></ul><ul><ul><li>Gifts are determined by the concept of things </li></ul></ul>
  15. 15. Etiquette <ul><li>Etiquette refers to socially accepted way of behaving in a situation </li></ul><ul><li>Modern etiquette codifies social interactions with others: </li></ul><ul><ul><li>Greeting relatives, friends and acquaintances </li></ul></ul><ul><ul><li>Refraining from insults and prying curiosity </li></ul></ul><ul><ul><li>Offering hospitality to guests </li></ul></ul><ul><ul><li>Wearing clothing suited to the occasion </li></ul></ul><ul><ul><li>Contributing to conversations </li></ul></ul><ul><ul><li>Offering assistance etc. </li></ul></ul><ul><li>Examples of Faux-Pas in Indian Context </li></ul><ul><ul><li>Not offering refreshment to an guest </li></ul></ul><ul><ul><li>Asking for a drink and not offering alcohol </li></ul></ul><ul><ul><li>Shaking hands with members of opposite sex </li></ul></ul><ul><ul><li>Accepting “prasad” with left hand </li></ul></ul><ul><ul><li>Using first name with elders and respected persons of the society </li></ul></ul>
  16. 16. Language How We Differ! <ul><li>Indian Meaning Correct Meaning </li></ul><ul><li>Eggitarian - </li></ul><ul><li>Cousin-brother male first cousin </li></ul><ul><li>Dicky boot of a car </li></ul><ul><li>Godown warehouse </li></ul><ul><li>Mugging to be robbed on the street </li></ul><ul><li>Pass-out To Faint / become unconscious </li></ul><ul><li>Rubber condom / eraser </li></ul><ul><li>Gone for a toss - </li></ul>
  17. 17. Culture & Marketing Strategy <ul><li>Considerations for approaching a foreign market </li></ul><ul><ul><li>Is the geographical area homogenous or heterogeneous? </li></ul></ul><ul><ul><li>What needs does the product fulfill? </li></ul></ul><ul><ul><li>Can enough people needing the product afford it? </li></ul></ul><ul><ul><li>What patterns / values are relevant in purchase of the product? </li></ul></ul><ul><ul><li>What are the distribution, political, legal aspects for the product? </li></ul></ul><ul><ul><li>How can we communicate the product? </li></ul></ul><ul><ul><li>What are the ethical implications of marketing the product? </li></ul></ul>
  18. 18. Exercise <ul><li>Groups to Present L and M </li></ul><ul><li>Have a Power-Point presentation ready (4-5 pages) </li></ul><ul><li>The group would be called to present in the class </li></ul><ul><li>Evaluation will be out of 15 marks </li></ul>Question L Interview two students from two different culture. Report any differences in (a) Non-Verbal communications (b) cultural values between their culture and your culture Question M Identify any successful foreign company operating in India? Evaluate how the company has used the components of culture in its India operations. Note: McDonald, Coke and Pepsi CANNOT be selected
  19. 19. Sub Culture
  20. 20. What is subculture? <ul><li>A sub-culture is a segment of a larger culture whose members share distinguishing values and patterns of behaviour </li></ul><ul><li>An individual is a part of more than one sub-culture </li></ul><ul><li>Types of sub-culture </li></ul><ul><ul><li>Ethnic sub-culture </li></ul></ul><ul><ul><li>Religious sub-culture </li></ul></ul><ul><ul><li>Regional sub-culture </li></ul></ul>
  21. 21. Ethnic Subculture <ul><li>Ethnic sub-cultures can be broadly defined as those whose members unique shared behaviour are based on a common racial, language or nationality background </li></ul><ul><li>Ethnic immigrants impact on ethnic sub-culture </li></ul><ul><ul><li>Reinforce unique behaviours </li></ul></ul><ul><ul><li>Reinforce attitudes derived from the groups culture </li></ul></ul>
  22. 22. Ethnic Sub-cultures in USA <ul><li>African Americans </li></ul><ul><ul><li>Constitute 13% of American population </li></ul></ul><ul><ul><li>Concentrated in Southern USA </li></ul></ul><ul><ul><li>Represent a market of $ 575 billion </li></ul></ul><ul><ul><li>Tend to be younger than average American </li></ul></ul><ul><ul><li>Lower levels of household income </li></ul></ul><ul><ul><li>Market Segment Research identified 4 major consumer groups </li></ul></ul><ul><ul><ul><li>Contended (37%) </li></ul></ul></ul><ul><ul><ul><li>Upwardly Mobile (24%) </li></ul></ul></ul><ul><ul><ul><li>Living for the moment (21%) </li></ul></ul></ul><ul><ul><ul><li>Living for the day (18%) </li></ul></ul></ul><ul><li>Marketing to African American </li></ul><ul><ul><li>Products altered to meet African needs </li></ul></ul><ul><ul><li>Communication altered to meet their needs </li></ul></ul><ul><ul><li>Authentic Retailing targeted to African Americans by J.C. Penny </li></ul></ul>
  23. 23. Ethnic Sub-cultures in USA <ul><li>Hispanic </li></ul><ul><ul><li>Extensive use of Spanish Language in communication </li></ul></ul><ul><ul><li>Constitutes of even smaller sub-culture </li></ul></ul><ul><ul><ul><li>Mexican American (66%) </li></ul></ul></ul><ul><ul><ul><li>Puerto Ricans (9%) </li></ul></ul></ul><ul><ul><ul><li>Cubans (4%) </li></ul></ul></ul><ul><ul><ul><li>Latin Americans (14%) </li></ul></ul></ul><ul><ul><li>Limited or low levels of acculturation </li></ul></ul><ul><ul><li>More than 60% have strong Hispanic Identification </li></ul></ul><ul><ul><li>Extensively influenced by Roman Catholicism </li></ul></ul><ul><ul><li>Extremely Family Oriented, traditional views </li></ul></ul><ul><ul><li>Masculine in Orientation </li></ul></ul><ul><ul><li>Emphasis on Sports – boxing, baseball, soccer </li></ul></ul><ul><ul><li>Extremely brand loyal </li></ul></ul><ul><ul><li>Cooking as an activity, done by wife, is central to the household </li></ul></ul><ul><ul><ul><li>Eating out / Ordering in the food is not acceptable </li></ul></ul></ul>
  24. 24. Ethnic Sub-cultures in USA <ul><li>Asian Americans </li></ul><ul><ul><li>Fastest growing sub-culture </li></ul></ul><ul><ul><li>Have highest average household income of any ethnic group </li></ul></ul><ul><ul><li>Most diverse of all subcultures </li></ul></ul><ul><ul><ul><li>Vietnam, Hong Kong, China, Korea, Taiwan, Japan, Philippines </li></ul></ul></ul><ul><ul><li>Largely influenced by Buddhism and Confucianism </li></ul></ul><ul><ul><li>Conservative and adherence to strict manners </li></ul></ul><ul><ul><li>Education is important </li></ul></ul><ul><ul><li>Clustered in limited geographic areas </li></ul></ul><ul><ul><ul><li>50% live in California, New York and Hawaii </li></ul></ul></ul><ul><ul><li>High penetration of computers and internet </li></ul></ul>
  25. 25. Ethnic Sub-cultures in USA <ul><li>Asian Indians </li></ul><ul><ul><li>Mostly from India, Pakistan, Bangladesh </li></ul></ul><ul><ul><li>Extremely well educated and emphasis on children education </li></ul></ul><ul><ul><li>Fluent in English </li></ul></ul><ul><ul><li>Financially conservative </li></ul></ul><ul><ul><li>Shop for “value for money” </li></ul></ul><ul><ul><li>Husband dominated family decisions </li></ul></ul><ul><ul><li>Involved with the home country </li></ul></ul><ul><li>Arab Americans </li></ul><ul><ul><li>From variety of countries </li></ul></ul><ul><ul><li>Common Language and Heritage </li></ul></ul><ul><ul><li>Better educated </li></ul></ul><ul><ul><li>Have High Incomes </li></ul></ul>
  26. 26. Religious Subculture <ul><li>Christian sub-culture </li></ul><ul><ul><li>Roman Catholic Sub-culture </li></ul></ul><ul><ul><li>Protestant Sub-culture </li></ul></ul><ul><li>Muslim sub-culture </li></ul><ul><li>Jewish sub-culture </li></ul><ul><li>Buddhist sub-culture </li></ul><ul><li>Hindu sub-culture </li></ul>
  27. 27. Exercise <ul><li>Groups to Present N and O </li></ul><ul><li>Have a Power-Point presentation ready (4-5 pages) </li></ul><ul><li>The group would be called to present in the class </li></ul><ul><li>Evaluation will be out of 15 marks </li></ul>Question N Interview two members of (a) Hinduism and (b) Christianity and determine the extent to which their consumption and spending pattern is influenced by religion Question O Watch 2 hours of (a) National Television and (b) Local Television. Discuss the differences in presentation in terms of (a) Target Audience (b) sub-cultural aspects
  28. 28. Social Class
  29. 29. Social Class <ul><li>Social Class is used to denote “societal rank” – one’s position relative to another on one or more dimensions valued by the society </li></ul><ul><ul><li>Is a result of Characteristics possessed by an Individual </li></ul></ul><ul><ul><li>Importance of the characteristics possessed by the society </li></ul></ul><ul><li>A social class system: </li></ul><ul><ul><li>can be defined as hierarchical divisions of a society in to relatively distinct and homogenous groups with respect to attitudes, values and lifestyles </li></ul></ul><ul><li>Social Stratification: </li></ul><ul><ul><li>refers to the perceived hierarchies in which consumer rate others as higher or lower in social status </li></ul></ul><ul><ul><ul><li>Ascribed Status : status due to being born in wealth </li></ul></ul></ul><ul><ul><ul><li>Achieved Status : status due to work or study </li></ul></ul></ul><ul><li>Status Crystallization </li></ul><ul><ul><li>Refers to the consistency of individuals and families on relevant status dimensions </li></ul></ul><ul><ul><ul><li>E.g. A child of a highly educated parent is assumed to have a high education level – else she is supposed to have failed her social class </li></ul></ul></ul>
  30. 30. Basis of Social Class <ul><li>What determines social class: </li></ul><ul><ul><li>Occupation is the most common determinant </li></ul></ul><ul><li>Older countries may not put much stress on income based classes </li></ul><ul><ul><li>In Britain – Heritage determines your social status </li></ul></ul><ul><ul><li>In India – Religion determines the social status (Caste) </li></ul></ul><ul><li>Social Class Based on Income (USA) </li></ul><ul><ul><li>Upper Class </li></ul></ul><ul><ul><ul><li>Upper Upper Class – Old Rich Families </li></ul></ul></ul><ul><ul><ul><li>Lower Upper Class – Neo Rich, Conspicuous Consumption </li></ul></ul></ul><ul><ul><ul><li>Upper Middle Class – Wealthy but not excessively </li></ul></ul></ul><ul><ul><li>Middle Class </li></ul></ul><ul><ul><ul><li>Middle Class – White Collared Workers, Salaried </li></ul></ul></ul><ul><ul><ul><li>Working Class – Blue Collared Workers, Salaried, Seek Advancement </li></ul></ul></ul><ul><ul><li>Lower Class </li></ul></ul><ul><ul><ul><li>Upper Lower Class – Low but steady incomes, unskilled laborers </li></ul></ul></ul><ul><ul><ul><li>Lower Lower Class – Low income, low education </li></ul></ul></ul>
  31. 31. Indian Classification <ul><li>Based on “Highest Education” and “Occupation” level of the CWE </li></ul><ul><li>Primarily used for urban marketing, communications etc </li></ul><ul><li>Household Classification (1999 Data) </li></ul><ul><li>SEC Class %age Press % TV % </li></ul><ul><li>A 10.00 86.00 95.00 </li></ul><ul><li>B 18.00 71.00 91.00 </li></ul><ul><li>C 21.00 57.00 86.00 </li></ul><ul><li>D 22.00 36.00 75.00 </li></ul><ul><li>E 29.00 18.00 60.00 </li></ul><ul><li>Sec A is divided in to – A1 and A2 </li></ul><ul><ul><li>A1 further subdivided into A1+ and A1 </li></ul></ul><ul><li>Sec B is divided in to – B1 and B2 </li></ul><ul><li>Sec E is divided in to – E1 and E2 </li></ul>SEC A1+: Those households who are in SEC A1 and have a combined monthly household income of Rs. 10,000/- or more per month
  32. 32. India: Asset Ownership <ul><li>Households having or owning specified assets </li></ul><ul><li>Source: Census of India 2001 </li></ul><ul><li>Heads % Population % Rural % Urban </li></ul><ul><li>Total Households 100.00 88.46 11.54 </li></ul><ul><li>Avail Banking Service 59.53 57.49 75.15 </li></ul><ul><li>Radio / Transistor 47.99 46.76 57.37 </li></ul><ul><li>Television 53.34 50.37 76.07 </li></ul><ul><li>Telephone 16.49 13.89 36.42 </li></ul><ul><li>Bicycle 9.10 9.05 9.50 </li></ul><ul><li>Scooter/M-Cycle/Moped 7.42 6.15 17.62 </li></ul><ul><li>Car/Jeep/Van 2.60 1.80 14.05 </li></ul><ul><li>No Assets 28.61 30.59 14.05 </li></ul><ul><li>Total Households : 12,40,633 </li></ul>
  33. 33. Social Class & Marketing <ul><li>Upper Class: </li></ul><ul><ul><li>Super Premium Price / Prestige Themes / Status </li></ul></ul><ul><li>Middle Class: </li></ul><ul><ul><li>Premium Price / Achievement Oriented Themes / Sharing </li></ul></ul><ul><li>Lower Class </li></ul><ul><ul><li>Popular Price / Sports Themes / Identification </li></ul></ul>
  34. 34. Exercise <ul><li>Groups to Present P and Q </li></ul><ul><li>Have a Power-Point presentation ready (4-5 pages) </li></ul><ul><li>The group would be called to present in the class </li></ul><ul><li>Evaluation will be out of 15 marks </li></ul>Question P Interview your parents. Ask them about their lifestyle at 23 years of age and and identify how does your current lifestyle differ from those of your parents at the same age? Question Q Do a small survey of about 30 people – 15 reading “Dainik Jagran” and another 15 reading “Prabhat Khabar”. Analyse social class differences in terms of Age, Income Levels, Education Levels and Outlook Towards Women
  35. 35. Thank You