The Influence Of Culture On Consumer Behavior

The Influence of Culture on Consumer Behavior

2/11/2013

Submitted by: Shilpa Gurung Gauttam Sharma Amit kumar Ravi singh

Impact of Culture

1

Introduction • One of the most pervasive influences on our lives and indeed our consumption behavior is that of culture. • Culture has a profound effect on family life ,living patterns ,social interactions and is indeed an important input in shaping personalities ,attitudes and perceptions.

2/11/2013

Impact of Culture

2

Culture • The sum total of learned beliefs, values, and customs that serve to regulate the consumer behavior of members of a particular society. • Culture is the broadest component that has an effect on consumer behavior. • It provides the background for other factors namely ,the family ,social class and reference groups ,that have an influence on buying behavior. • Reference groups and families play a critical role in transmitting cultural and sub cultural values. • Since they regulate people’s lives on a day-to-day basis ,they become the agents for transmitting the standards of behavior and the values of the culture in which they exist. 2/11/2013

Impact of Culture

3

Significance of the Culture • The significance of culture in understanding consumer behavior is that ,although consumers may be biologically similar in their instincts ,their views of the world differs according to their cultural orientations. • Culture provides the standards or rules regarding when to eat ,where to eat ,what is appropriate to eat for breakfast ,what to serve the guests for a dinner party ,a picnic or a wedding. • For example we can think of French culture ,Canadian culture ,American culture ,Indian culture. • People in these cultural groupings are more similar in their outlook and behavior than those in other groupings. • They are also similar in their lifestyles ,personalities ,attitudes ,values and belief systems ,as described in the definition of culture.

2/11/2013

Impact of Culture

4

Types of Culture • The Internal Mental Culture • The External Material Culture

2/11/2013

Impact of Culture

5

Types Of Culture

2/11/2013

Impact of Culture

6

Characteristics of a Culture • • • • • • • •

Culture is invented Culture is a set of learned responses Culture is shared Culture is gratifying and persistent Culture is dynamic and adapts Culture is an organized and integrated whole Cultures is different in different areas/countries Culture is prescriptive

2/11/2013

Impact of Culture

7

A Theoretical Model of Cultures’ Influence on Behavior

2/11/2013

Impact of Culture

8

Cultural Values • There are two types of values  Instrumental values  Terminal values • Also each culture has their own core values  It has been found out that terminal values such as comfort ,security ,pleasure ,are influential in the choice of product class.  Instrumental values such as broadmindedness become important in the brand choice decision. 2/11/2013

Impact of Culture

9

Cultural Values

2/11/2013

Impact of Culture

10

Changing Cultural trends in Indian urban Markets • • • • • •

Success through Professional achievement. Involvement in work. Material success. Middle-of-the-road approach to tradition. Impulse gratification. Use of hi-tech products.

2/11/2013

Impact of Culture

11

Variations in Cultural Values

2/11/2013

Impact of Culture

12

Values Orientation Effects Behavior

2/11/2013

Impact of Culture

13

Issues in Culture • Enculturation – The learning of one’s own culture

• Acculturation – The learning of a new or foreign culture

2/11/2013

Impact of Culture

14

Example of Acculturation

2/11/2013

Impact of Culture

15

The Movement of Cultural Meaning

2/11/2013

Impact of Culture

16

Language and symbols • Without a common language shared meaning could not exist • Marketers must choose appropriate symbols in advertising • Marketers can use “known” symbols for associations

2/11/2013

Impact of Culture

17

Example

This ad uses the symbol of a magnet to emphasize its benefits.

2/11/2013

Impact of Culture

18

Ritual • A ritual is a type of symbolic activity consisting of a series of steps • Rituals extend over the human life cycle • Marketers realize that rituals often involve products (artifacts)

2/11/2013

Impact of Culture

19

Sharing of Culture • To be a cultural characteristic, a belief, value, or practice must be shared by a significant portion of the society • Culture is transferred through family, schools, houses of worship, and media

2/11/2013

Impact of Culture

20

Example

This ad uses characters well known in the U.S. culture. 2/11/2013

Impact of Culture

21

The Measurement of Culture • Content Analysis • Consumer Fieldwork • Value Measurement Instruments

2/11/2013

Impact of Culture

22

Content Analysis • A method for systematically analyzing the content of verbal and/or pictorial communication. The method is frequently used to determine prevailing social values of a society.

2/11/2013

Impact of Culture

23

Field Observation • A cultural measurement technique that takes place within a natural environment that focuses on observing behavior (sometimes without the subjects’ awareness).

2/11/2013

Impact of Culture

24

Characteristics of Field Observation • Takes place within a natural environment • Performed sometimes without the subject’s awareness • Focuses on observation of behavior

2/11/2013

Impact of Culture

25

Participant Observers • Researchers who participate in the environment that they are studying without notifying those who are being observed.

2/11/2013

Impact of Culture

26

Value Measurement Survey Instruments • Rokeach Value Survey (RVS) – A self-administered inventory consisting of eighteen “terminal” values (i.e., personal goals) and eighteen “instrumental” values (i.e., ways of reaching personal goals)

• List of Values (LOV) – A value measurement instrument that asks consumers to identify their two most important values from a nine-value list that is based on the terminal values of the Rokeach Value Survey

• Values and Lifestyles (VALS) – A value measurement based on two categories: selfdefinition and resources 2/11/2013

Impact of Culture

27

American Core Values • • • • • • • • • • •

Achievement and success Activity Efficiency and practicality Progress Material comfort Individualism Freedom External conformity Humanitarianism Youthfulness Fitness and health

2/11/2013

Impact of Culture

28

Criteria for Value Selection • The value must be pervasive. • The value must be enduring. • The value must be consumer-related.

2/11/2013

Impact of Culture

29

Toward a Shopping Culture • Is shopping what we do to create value in our lives? • The younger generation is shopping more • This has an effect on credit card debt

2/11/2013

Impact of Culture

30

Subculture

2/11/2013

Impact of Culture

31

Cross Cultural Behavior

2/11/2013

Impact of Culture

32

The Imperative to Be Multinational • Global Trade Agreements – EU – NAFTA

• Acquiring Exposure to Other Cultures • Country-of-origin Effects

2/11/2013

33

The World’s Most Valuable Brands 1. Coca-Cola 2. Microsoft 3. IBM 4. GE 5. Intel 6. Disney 7. McDonald’s 8. Nokia 9. Toyota 10.Marlboro 2/11/2013

34

Most of these brands offer different Web sites for each country.

2/11/2013

35

Country of Origin Effects: Negative and Positive • Many consumers may take into consideration the country of origin of a product. • Some consumers have animosity toward a country – People’s Republic of China has some animosity to Japan – Jewish consumers avoid German products – New Zealand and Australian consumers boycott French products

2/11/2013

36

Swiss Watches

2/11/2013

37

More Swiss Watches

2/11/2013

38

Can’t Beat the Engineering The “American” Twist

2/11/2013

39

This U.S. Government Web site helps those who want to buy USA products.

2/11/2013

40

National Identity Figure

2/11/2013

41

Cross-Cultural Consumer Analysis

2/11/2013

The effort to determine to what extent the consumers of two or more nations are similar or different.

Impact of Culture

42

Issues In Cross-cultural Consumer Analysis

2/11/2013

Impact of Culture

43

Similarities and differences among people • The greater the similarity between nations, the more feasible to use relatively similar marketing strategies • Marketers often speak to the same “types” of consumers globally

2/11/2013

Impact of Culture

44

Comparisons of Chinese and American Cultural Traits

•

• • •

Chinese Cultural Traits Centered on Confucian doctrine Submissive to authority Ancestor worship Values a person’s duty to family and state

2/11/2013

American Cultural Traits • Individual centered • Emphasis on selfreliance • Primary faith in rationalism • Values individual personality 45

The growing global middle class • Growing in Asia, South America, and Eastern Europe • Marketers should focus on these markets

2/11/2013

Impact of Culture

46

The global teenage market • There has been growth in an affluent global teenage and young adult market • They appear to have similar interests, desires, and consumption behavior no matter where they live

2/11/2013

Impact of Culture

47

The iPod has global appeal to the young market.

2/11/2013

48

Acculturation • Marketers must learn everything that is relevant about the usage of their product and product categories in foreign countries

2/11/2013

Impact of Culture

49

Basic Research Issues in Cross-Cultural Analysis FACTORS

EXAMPLES

Differences in language and meaning

Words or concepts may not mean the same in two different countries.

Differences in market segmentation opportunities

The income, social class, age, and sex of target customers may differ dramatically in two different countries.

Differences in consumption patterns

Two countries may differ substantially in the level of consumption or use of products or services.

Differences in the perceived benefits of products and services

Two nations may use or consume the same product in very different ways.

2/11/2013

50

continued FACTORS

EXAMPLES

Differences in the criteria for evaluating products and services

The benefits sought from a service may differ from country to country.

Differences in economic and social conditions and family structure

The “style” of family decision making may vary significantly from country to country.

Differences in marketing research and conditions

The types and quality of retail outlets and direct-mail lists may vary greatly among countries.

Differences in marketing research possibilities

The availability of professional consumer researchers may vary considerably from country to country.

2/11/2013

51

World Brands

2/11/2013

Products that are manufactured, packaged, and positioned the same way regardless of the country in which they are sold.

52

Are Global Brands Different? • According to a survey – yes. • Global brands have: – Quality signal – Global myth – Social responsibility

2/11/2013

53

Multinational Reactions to Brand Extensions • A global brand does not always have success with brand extentions • Example Coke brand extension – Coke popcorn – Eastern culture saw fit and accepted the brand extension – Western culture did not see fit

2/11/2013

54

Adaptive Global Marketing • Adaptation of advertising message to specific values of particular cultures • McDonald’s uses localization – Example Ronald McDonald is Donald McDonald in Japan – Japanese menu includes corn soup and green tea milkshakes

• Often best to combine global and local marketing strategies 2/11/2013

55

Alternative Multinational Strategies: Global Versus Local • Framework for Assessing Multinational Strategies – Global – Local – Mixed

2/11/2013

56

A Framework for Alternative Global Marketing Strategies PRODUCT STRATEGY

COMMUNICATON STRATEGY STANDARDIZED COMMUNICATIONS

LOCALIZED COMMUNICATIONS

STANDARDIZED PRODUCT

Global strategy: Uniform Product/ Uniform Message

Mixed Strategy: Uniform Product/ Customized Message

LOCALIZED PRODUCT

Mixed strategy: Customized Product/ Uniform Message

Local Strategy: Customized Product/ Customized Message

2/11/2013

57

Cross-Cultural Psychographic Segmentation

The only ultimate truth possible is that humans are both deeply the same and obviously different.

2/11/2013

58

Six Global Consumer Segments

2/11/2013

Strivers 23%

Devouts 22%

Altruists 18%

Intimates 15%

Fun Seekers 12%

Creatives 10% 59

References • Schiffman, Leon G. , Kanuk, Leslie Lazar, Kumar,& S. Ramesh (2009). Consumer Behavior (10th ed.). New Delhi : Pearson Education • Khan, Matin (2012). Consumer Behavior and Advertising (1st ed.) . New Delhi : New Age International Publishers.

2/11/2013

Impact of Culture

60