Buying Decision Process - Consumer Behaviour - Lecture Slides, Slides of Consumer Behaviour

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Macro factors influencing Buying Decision Process

• Culture
• Subculture
• Social Class
• Reference Groups
• Family

WHAT IS CULTURE?

Culture as the sum total of learned beliefs, values, and customs that serve to direct the consumer behavior of members of a particular society.

Values also are beliefs. Values differ from other beliefs, however, because they meet the following criteria : (1) they are relatively few in numbers, (2) they serve as a guide for culturally appropriate behavior, (3) they are enduring or difficult to change, (4) they are not tied to specific objects or situations, and (5) they are widely accepted by the members of a society

CHARACTERISTICS OF CULTURE

• Culture Satisfies Needs
• Culture Is Learned -- informal learning and technical

learning

• ENCULTURATION AND ACCULTURATION
• LANGUAGE AND SYMBOLS
• Culture Is Shared …group customs
• Culture Is Dynamic

THE MEASUREMENT OF CULTURE

• CONTENT ANALYSIS
• CONSUMER FIELDWORK
• VALUE MEASUREMENT SURVEY INSTRUMENTS

The distinct characteristics of field observation are that (1)

it takes place within a natural environment, (2) it is

performed sometimes without the subjects’ awareness,

and (3) it focuses on observation of behavior.

• VALUE MEASUREMENT SURVEY INSTRUMENTS
• THE YANKELOVICH MONITOR
• DYG SCAN -- AN ENVIRONMENTAL SCANNING

PROGRAM

Cultural Values

Terminal values Instrumental values

(end-states of existence) (modes of conduct)

A comfortable life (a prosperous life) Ambitious (hardworking, aspiring) An exciting life (a stimulating, active life) Broadminded (open-minded) A sense of accomplishment (lasting contribution) Capable (competent, effective) A world at peace (free of ware and conflict) Cheerful (lighthearted, joyful) Equality (brotherhood, equal opportunity) Courageous (standing up for your beliefs) Family security (taking care of loved ones) Forgiving (willing to pardon others) Freedom (independence, free choice) Helpful (working for others welfare) Happiness (contentedness) Honest (sincere, truthful) Inner harmony (freedom from inner conflict) Imaginative (daring, creative) Mature love (sexual and spiritual intimacy) Independent (self-reliant, self-sufficient) National security (protection from attack) Intellectual (intelligent, reflective) Pleasure (an enjoyable, leisurely life) Logical (consistent, rational) Salvation (saved, eternal life) Loving (affectionate, tender) Self-respect (self-esteem) Obedient (dutiful, respectful) Social recognition (respect, admiration) Polite (courteous, well mannered) True friendship (close companionship) Responsible (dependable, reliable) Wisdom (a mature understanding of life) Self-controlled (restrained, self-disciplined)

Variations in Value Systems

Orientation

Activity Being : Spontaneously Being-in-becoming : Doing : Stress action express impulses and Emphasize self- and accomplishment. Desires : stress who you realization. Are. Development of all aspects of the self as on integrated whole.

Social relations Linear (authoritarian): Collateral (group Individualisitc : Each Lines of authority are oriented ): A person is person is autonomous clearly established, with an individual as well as and should have equal dominant-subordinate a group member rights and control over relationships clearly participating in his or her own destiny. Defined and respected collective decisions.

Range

SUMMARY OF AMERICAN CORE VALUES

VALUE GENERAL FEATURES RELEVANCE TO CONSUMER BEHAVIOR

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Achievement and Hard work is good;success flows Act as a justification for acquisition of goods Success from hard work (“You deserve it”)

Activity Keeping busy is healthy and Stimulates interest in products that are time-savers natural and enhance leisure time Efficiency and Admiration of things that solve Stimulates purchase of products that function Practicality problems (e.g., save time and effort) well and save time

Progress People can improve themselves; Stimulates desire for new products that fulfill tomorrow should be better than unsatisfied needs;ready acceptance of products today that claim to be “new” or “improved”

Material Comfort “The good life” Fosters acceptance of convenience and luxury products that make life more comfortable and enjoyable Individualism Being oneself (e.g., self-reliance, Stimulates acceptance of customized or unique self-interest, self-esteem) products that enable a person to “express his or her own personality”

Freedom Freedom of choice Fosters interest in wide product lines and differentiated products

WHAT IS SUBCULTURE?

We define subculture, then, as distinct cultural group that exists as an identifiable segment within a larger, more complex society Thus, the cultural profile of a society or nation is composite of two distinct elements : (1) the unique beliefs, values, and customs subscribed to by members of specific , subcultures; and (2) the central or core cultural themes that are shared by most of the population, regardless of specific subcultural memberships.

SUBCULTURAL CATEGORY EXAMPLES

________________________________________________________________________

Nationality ( i..e.,birthplace of ancestors French, puerto

Rican, Korean)

Religion Catholic,Hindu, Jew

Geographic Region Southeastern, Midwestern,Eastern

Race African-American, Caucasian, Asian-American

Age Elderly, Teenage, Middle Age

Gender Female, Male

Occupation Engineer, Cook, Plumber

Social Class Lower, Middle, Upper

RELATIONSHIP BETWEEN CULTURE AND

SUBCULTURE

Dominant Cultural Traits of U.S. Citizens

Subcultural Traits of Northerners

Subcultural Traits of Southerners

Social Standing

Social Standing : How it is Derived and How it Influences Behavior

Socio economic factors

Occupation Education Ownership Income

Social Standing

Upper Class Middle Class Working Class Lower Class

Unique behaviors

Preferences Purchases Consumption Communication

WHAT IS SOCIAL CLASS?

Is defined as the division of members of a society into a

hierarchy of distinct status classes, so that members of each

class have relatively the same status and members of all other

classes have either more or less status.

SOCIAL CLASS AND SOCIAL STATUS

• Social Class is Hierarchical
• Social Class and Market Segmentation
• Social Class and Behavioral Factors
• Social Class as a Frame of Reference

ELEMENTS OF SOCIAL STATUS

• WEALTH
• POWER (DEGREE OF PERSONAL CHOICE OR INFLUENCE

OVER OTHERS)

• PRESTIGE (THE DEGREE OF RECOGNITION

RECEIVED FROM OTHERS)

Different Social Class

Life-style Orientations & Purchasing Tendencies of the Different Social Classes

Social Class Life-style Orientation Purchasing Tendencies

Upper Class Good taste Quality merchandise

Graceful living Expensive hobby and

Good Things in life recreation equipment

Individual expression Art

Interest in arts and Books

Culture Travel

Middle Class Respectability Items in fashion

Conformity Items related to self

Propriety presentation

social esteem Nice clothing, and home

Items for Children

“Upward Pull Strategy” Targeted at Middle Class

Target market

Middle

Class

Aspirations

To belong to

upper-middle

class

Prefer

Products

consumed

by upper-

middle

class

Positioning

Upper class

symbolism

for middle

class products

the measurement of social class

Two-category social-class schemas

• Blue collar, white collar
• Lower, upper
• Lower, middle Three-category social-class schemas
• Blue collar, gray collar, white collar
• Lower, middle, upper Four-category social-class schema
• Lower, lower-middle, upper-middle, upper Five-category social class schemas
• Lower,working-class, lower-middle, upper-middle, upper
• Lower, lower-middle, middle, upper-middle, upper Six-category social-class schema
• Lower-lower, upper-lower, lower-middle, upper-middle, lower-upper, upper-upper Seven-category social-class schema
• Real lower-lower, a lower group of people but not the lowest, working class, middle class, upper- middle, lower-upper, upper-upper Nine-category social-class schema
• Lower-lower, middle-lower, upper-lower, lower-middle, middle-middle, upper-middle, lower-upper, middle-upper, upper-upper.