The Influence of Culture on Consumer Behavior

Submitted by: Shilpa Gurung Gauttam Sharma Amit kumar Ravi singh

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Impact of Culture

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.

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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 peoples 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.
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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.

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Types of Culture
The Internal Mental Culture The External Material Culture

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Types Of Culture

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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
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A Theoretical Model of Cultures Influence on Behavior

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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.
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Cultural Values

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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.

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Variations in Cultural Values

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Values Orientation Effects Behavior

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Issues in Culture
Enculturation
The learning of ones own culture

Acculturation
The learning of a new or foreign culture

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Example of Acculturation

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The Movement of Cultural Meaning

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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

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Example

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

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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)

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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

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Example

This ad uses characters well known in the U.S. culture.

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The Measurement of Culture

Content Analysis Consumer Fieldwork Value Measurement Instruments

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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.

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

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Characteristics of Field Observation

Takes place within a natural environment Performed sometimes without the subjects awareness Focuses on observation of behavior

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

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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
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American Core Values

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

The value must be pervasive. The value must be enduring. The value must be consumer-related.

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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

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Subculture

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Cross Cultural Behavior

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The Imperative to Be Multinational

Global Trade Agreements
EU NAFTA

Acquiring Exposure to Other Cultures Country-of-origin Effects

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The Worlds Most Valuable Brands

1. Coca-Cola 2. Microsoft 3. IBM 4. GE 5. Intel 6. Disney 7. McDonalds 8. Nokia 9. Toyota 10.Marlboro
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Most of these brands offer different Web sites for each country.

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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
Peoples Republic of China has some animosity to Japan Jewish consumers avoid German products New Zealand and Australian consumers boycott French products

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Swiss Watches

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More Swiss Watches

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Cant Beat the Engineering The American Twist

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

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National Identity Figure

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Cross-Cultural Consumer Analysis

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

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Issues In Cross-cultural Consumer Analysis

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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

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Comparisons of Chinese and American Cultural Traits

Chinese Cultural Traits Centered on Confucian doctrine Submissive to authority Ancestor worship Values a persons duty to family and state American Cultural Traits Individual centered Emphasis on selfreliance Primary faith in rationalism Values individual personality
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The growing global middle class

Growing in Asia, South America, and Eastern Europe Marketers should focus on these markets

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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

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The iPod has global appeal to the young market.

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

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Basic Research Issues in Cross-Cultural Analysis

FACTORS Differences in language and meaning Differences in market segmentation opportunities EXAMPLES Words or concepts may not mean the same in two different countries. 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.

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continued
FACTORS EXAMPLES

Differences in the criteria for evaluating products and services

Differences in economic and social conditions and family structure

The benefits sought from a service may differ from country to country.
The style of family decision making may vary significantly from country to country. The types and quality of retail outlets and direct-mail lists may vary greatly among countries. The availability of professional consumer researchers may vary considerably from country to country.

Differences in marketing research and conditions

Differences in marketing research possibilities

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World Brands

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

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Are Global Brands Different?

According to a survey yes. Global brands have:
Quality signal Global myth Social responsibility

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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

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Adaptive Global Marketing

Adaptation of advertising message to specific values of particular cultures McDonalds 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

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Alternative Multinational Strategies: Global Versus Local

Framework for Assessing Multinational Strategies
Global Local Mixed

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A Framework for Alternative Global Marketing Strategies

PRODUCT STRATEGY COMMUNICATON STRATEGY STANDARDIZED COMMUNICATIONS STANDARDIZED PRODUCT Global strategy: Uniform Product/ Uniform Message Mixed strategy: Customized Product/ Uniform Message LOCALIZED COMMUNICATIONS Mixed Strategy: Uniform Product/ Customized Message Local Strategy: Customized Product/ Customized Message

LOCALIZED PRODUCT

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Cross-Cultural Psychographic Segmentation

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

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Six Global Consumer Segments

Strivers 23% Devouts 22%

Altruists 18% Fun Seekers 12%

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Intimates 15% Creatives 10%

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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.

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