CB Slides

MKT 4704
Consumer Behavior
Copyright, Dr. Shaikh Rafiqul Islam, JnU, 2020

Introduction
• Instructor Introduction
• Instructor’s Educational Philosophy
• Syllabus review
• General Information about class
• Classroom Contract Discussion
• Consumer Behavior: Meeting
Changes and Challenges
Prof. Dr. S.R.Islam,JnU

2
Course Teacher
• Professor Dr. Shaikh Rafiqul Islam

Ph.D in Relationship Marketing (UUM, Malaysia)
MBA major in E-Business (USQ, Australia)
M.Com & B.Com (Hons), in Marketing (DU),
Chairman, Department of Marketing,
Jagannath University, Dhaka.
• Consulting Place : Adjunct Faculty Room
• Consulting Hours : Before and after the class hours.
• Phone : 01819-282260 (Cell)
• Email : srislamuum@gmail.com

3
Instructional Philosophy
• Out-Come based education

• Would rather discuss than lecture
– Requires student preparation
• Use class interaction, assignments, quizzes
and projects to determine if outcomes are
met.

4
MKT 4704
• Use textbook
• ASK questions about what you didn’t understand in readings
• DON’T do homework at last minute.
• REVEIW lectures and notes
• Seek HELP if you are having difficulties
• OFFER feedback and suggestions to the instructor in a constructive manner

5
Syllabus review
• Requirements
• Grading
• Course outline
• Special Notes
• Subject to change

6
CHAPTER
ONE
Consumer Behavior:
Meeting Changes and
Challenges
PP Presentation by
Dr. Shaikh Rafiqul Islam
Ph.D (Malaysia), MBA (Australia), M.Com(DU),
Professor
Department of Marketing
Jagannath University
Consumer behavior involves
• Consumer behavior involves the:

– purchasing,
– other consumption related activities of people
engaging in the exchange process.
Prof. Dr. S.R.Islam,JnU 8

Model of Buyer Behavior

Consumer behavior field draws its
findings from
• The study of consumer behavior field draws its
findings from a number of disciplines:
– anthropology,
– sociology,
– social psychology,
– marketing research, and
– economics.

Application of Consumer behavior
knowledge
• Consumer behavior knowledge may be
applied in solving both micro and macro
marketing problems. Thus, an understanding
of the discipline is essential for marketers who
wish to be successful in the face of
competition.

The bottom line of every
organization’s involvement
“Sales determine profit, and consumers’
actions determine sales.” The bottom
line of every organization’s involvement
in business is to make profit which is
being determined by how its market
behaves .

The Complex Nature of Consumer
Buying Process:
• The buying processes consumers go through
to purchase most products and services are
considerably more complex than they may
appear.

Stages of the buying process
• Consumer behavior can be divided

into three very distinct stages.
– Stage 1: Pre purchase stage
–Stage 2: Purchase stage
–Stage 3: Post purchase stage

Consumer decision making process
full of variables:
• Consumer decision making, thus, is not an
instant outcome, rather a complex process full
of variable. Any purchase decision you make is
the outcome of interaction of many factors
including:
• the culture,
• social class,
• reference group,

Consumer decision making process
full of variables:
• needs,
• self-concept,
• learning,
• attitude,
• product attributes,
• buying environment etc.

Definition of consumer behavior
Bagozzi and Zaltman defines consumer

behavior as “acts, processes, and social
relationships exhibited by individuals, groups,
and organizations in the obtainment, use of,
and consequent experience with product,
services, and other resources”.

Consumer Behavior
• The behavior that consumers display in

searching for, purchasing, using, evaluating,
and disposing of products and services that
they expect will satisfy their needs.
Prof. Dr. S.R.Islam,JnU Chapter One Slide 18

Scope of consumer behavior field:
– What are the products

people buy?
– Why they buy them?
– How they buy them?

Scope of consumer behavior field:
– When they buy them?
– Where they buy them?
– How often they buy them?
– How is the decision process of the consumer?

Why study consumer behavior?
– Planning and implementing marketing strategies.

– Establishing consumer orientation on how
marketing mix adopted satisfies the consumers.
– To better understand the factors that affect
consumer behavior.
– Selection and segmentation of target markets
– Devising appropriate marketing strategies most
relevant to the target market segment
– Assessing the trends of change and preparing the
marketing plans
Few consumer terminology
Consumer versus buyer: Buyers are those who

carry out the formal arrangements for
purchase, service, delivery, and financial
terms. Buyers are not always deciders.
Consumers are those people who actually put
a purchased product to work or who uses it to
satisfy his physical or social/psychological
need/s.

• The ultimate consumer versus

industrial/institutional consumer: The
ultimate consumer is he who gets the
products from marketing intermediaries for
household use. The industrial/institutional
consumer on the other hand gets the product
for use in the production process of other
marketable item or for resale.

• Consuming versus purchasing: Purchasing refers to

the act of obtaining any market item from the
channel of distribution (the marketing intermediaries
constitute the channel of distribution) and it is only
one aspect of consumer decision process.
Consuming, on the other hand means utilizing the
product for satisfying motive(s) arise out of either
biological or secondary need(s).

Two Consumer Entities
Organizational
Personal Consumer
Consumer
• The individual who • A business,
buys goods and government agency,
services for his or her or other institution
own use, for (profit or nonprofit)
household use, for that buys the goods,
the use of a family services, and/or
member, or for a equipment necessary
friend. for the organization to
function.
Consumer behavior stem from the marketing concept
Development of the Marketing Concept
Production Sales Marketing

Orientation Orientation Concept

Production Orientation
• From the 1850s to the late

1920s
• Companies focus on production
capabilities
• Consumer demand exceeded
In 1916, Ford sold Model
supply Ts for $360


Sales Orientation
• From the 1930s to the mid 1950s

• Focus on selling
• Supply exceeded customer demand


Marketing Concept
• 1950s to current - Focus on the customer!

• Determine the needs and wants of specific
target markets
• Deliver satisfaction better than competition


Societal Marketing Concept
• Considers consumers’ long-
run best interest
• Good corporate citizenship
• All companies prosper
when society prospers,
marketers would be better
off if they integrated social
responsibility into their
marketing strategies.
Perceptions of a company’s
lack of social responsibility or
unethical marketing strategies
negatively affect consumer
purchase decisions. For
instance, McDonald’s became
the target of television
commercials blaming it for
heart disease.

The Marketing Concept
Embracing the Marketing
Concept
• Consumer Research • The process and tools
• Segmentation used to study consumer
• Market Targeting behavior
• Positioning

Implementing the
Marketing Concept
• Consumer Research • Process of dividing the
• Segmentation market into subsets of
• Market Targeting consumers with
common needs or
• Positioning characteristics

Implementing the
Marketing Concept
• Consumer Research The selection of one or
• Segmentation more of the segments
• Market Targeting identified to pursue
• Positioning

Implementing the • Developing a distinct image for
Marketing Concept the product in the mind of the
consumer
• Consumer Research • Successful positioning includes:
• Segmentation – Communicating the benefits
of the product
• Market Targeting
– Communicating a unique
• Positioning selling proposition(USP)

The Marketing Mix
Product Price
Marketing
Mix
Place Promotion

Customer Value, Satisfaction, Trust,
and Retention
Successful Relationships
High level Strong
Customer of sense of Customer
value customer customer retention
satisfaction trust

Value, Satisfaction,
• Defined as the ratio between
Trust, and Retention the customer’s perceived
• Customer Value benefits and the resources
• Customer used to obtain those
Satisfaction benefits
• Customer Trust • Perceived value is relative
and subjective
• Customer
Retention • Developing a value
proposition is critical

Customer Value
Customers flock to the
McDonald’s outlets
repeatedly because
the restaurants are
uniform, customers
know what to expect,
and customers feel
that they are getting
value for the resources
they expend.

Value, Satisfaction, • The individual's perception
Trust, and Retention of the performance of the
product or service in
• Customer relation to his or her
Value expectations.
• Customer • Customer groups based on
Satisfaction loyalty include loyalists,
• Customer Trust apostles, defectors,
• Customer terrorists, hostages, and
Retention mercenaries

Value and Satisfaction
Expectation Performance Expectation Performance
8 10 10 8
If performance is lower than expectations, satisfaction is low.
If performance is higher than expectations, satisfaction is high.

Value, Satisfaction,
Trust, and Retention • Establishing and
• Customer Value maintaining trust is
• Customer essential.
Satisfaction
• Trust is the
• Customer Trust
foundation for
• Customer
Retention maintaining a long-
standing relationship
with customers.
Value, Satisfaction, • The objective of providing
Trust, and Retention value is to retain highly
satisfied customers.
• Customer Value
• Loyal customers are key
• Customer
Satisfaction – They buy more products
• Customer Trust – They are less price
sensitive
• Customer
Retention – Servicing them is
cheaper
– They spread positive
word of mouth
Top 10 Ranked U.S. Companies in Terms of Consumers’
Trust and Respect of Privacy
Table 1.2
Top 10 Companies
• American Express
• eBay
• IBM
• Amazon
• Johnson & Johnson
• Hewlett-Packard
• U.S. Postal Service
• Procter and Gamble
• Apple
• Nationwide
Impact of Digital Technologies
Marketers Consumers
• More products and • Power

services through • Information
customization • Computers, phones, PDA,
• Instantaneous exchanges GPS, smart TV
• Collect and analyze data

Impact of Digital Technologies

The Mobile Consumer
Penetration of Internet Usage Among Mobile
• Wireless Media Subscribers in 16 Countries - FIGURE 1.3
Messages will
expand as:
– Flat-rate data
traffic increases
– Screen image
quality is enhanced
– Consumer-user
experiences with
web applications
improve

Consumer Behavior Is
Interdisciplinary
Psychology
Economics Sociology
Social
Anthropology
psychology

A Simple Model of Consumer Decision Making - Figure 1.4

PP Presentation by
Professor
Learning Objectives
1. To Understand Why Market Segmentation Is

Essential.
2. To Understand the Criteria for Targeting
Selected Segments Effectively.
3. To Understand the Bases for Segmenting
Consumers.
4. To Understand How Segmentation and
Strategic Targeting Are Carried Out.
2
Dr.S.R.Islam,Professor,JnU Chapter Three Slide
How does Qantas position its offering for different
market segments?
Dr.S.R.Islam,Professor,JnU 3
How does Qantas position its offering
for different market segments?
• First class offers small, room-size private spaces; seats that turn
into flat beds; designer linen and towels; gourmet food and a large
selection of wines and alcoholic beverages
• Business class features generously reclining seats that become
nearly flat beds, delicious food and drinks, a personal kit with
expensive cosmetics and grooming products, and pre- and post-
flight services.
• Premium Economy, which features larger and more spaciously
placed seats that recline more than those in coach.
• Economy class with more comfortable seats and an open buffet of
refreshments during the flight.
Criteria for Effective Targeting
Identifiable Sizeable
Stable Accessible
Congruent with the

company’s objectives
and resources
5
Two Types of Shared Characteristics
• Behavioral data
– Consumer-intrinsic: person’s age, gender, marital
status.
– Consumption-based: quantity purchased, frequency
of leisure activities.
• Cognitive factors
– Consumer-intrinsic: personality traits, cultural
values, and attitudes
– Consumption-specific: attitudes and preference
Why Segmentation is Necessary
• Consumer needs
differs
• Differentiation helps
products compete
• Segmentation helps
identify media
7
Consumer-Rooted Segmentation Bases
Demographics
Geodemographic
Personality Traits
Lifestyles
Sociocultural
8
Demographic Segmentation
Age Gender
Household
Marital Status
type and Size
Income and
Geographical
Wealth;
location
Occupation
Who is the target of this ad?
The ad targets women.

Gender is a
demographic variable.
The ad addresses
changing gender roles
and overcomes
stereotypes that
women cannot change
their own oil.
Targeting Men
Studies discovered that nearly
half of U.S. men don’t use face
wash or moisturizer. Dove, a
well established brand of face
and body care products,
introduced a product line
named Dove Men+Care.
Geodemographic Segmentation
• Geodemographic segmentation is a popular use
of geography in targeting. People who live
close to one another are likely to be similar in
tastes, incomes, lifestyles and consumption.
They might eat similar foods, like the same
movies, and take the same types of vacations.
• Based on geography and demographics
• People who live close to one another are similar
• “Birds of a feather flock together”
12
Personality Traits
• People often do not

identify these traits
because they are
guarded or not
consciously recognized
• Consumer innovators
– Open minded
– Perceive less risk in
trying new things
13
Dr.S.R.Islam,Professor,JnU
Personality Traits
Psychographics
Consumers’ lifestyles, which

include consumers’ activities,
interests, and opinions
Copyright © 2015 Pearson Education Slide 15 of 35

Psychographic Segmentation
Lifestyles
• Psychographics
• Includes activities,
interests, and
opinions
• They explain buyer’s
purchase decisions
and choices
17
Dr.S.R.Islam,Professor,JnU
VALS
• VALS is the most popular segmentation system that
combines lifestyles and values. It is related to
Maslow’s hierarchy of needs and the concept of
social character. The system looks at three primary
motivations and then the resources that individuals
might have to draw upon.
VALS – Figure 3.4
19
Provide an example: how could this information be
used?
Socio-Cultural Values and Beliefs
• Sociological = group
• Anthropological = cultural
• Include segments based on
– Cultural values
– Sub-cultural membership
– Cross-cultural affiliations
21
Benefits Segmentation
• Benefits sought
represent consumer
needs
• Important for
positioning
• Benefits of media
22
Dr.S.R.Islam,Professor,JnU Chapter Three Slide 28
Behavioral Targeting
Sending consumers personalized and
prompt offers and promotional messages
designed to reach the right consumers and
deliver to them highly relevant messages at
the right time and more accurately than
when using conventional segmentation
techniques

Tracking Online Navigation Includes:
• Websites visited
• Engagement on sites
• Lifestyles and personalities
• Purchases, almost purchases, returns,
exchanges
Watch the groupon video!!!
Predictive Analytics
Measures that predict consumers’

future purchases on the bases of past
buying information and other data,
and also evaluate the impact of
personalized promotions stemming
from the predictions.

Application: Target
Positioning
The process by which a company

creates a distinct image and identity
for its products, services, or brands in
consumers’ minds.

Positioning
The 4 P’s of the Marketing Mix
Positioning Process
1. Define the market, buyers and competition.

2. Identify key attributes and research consumers’
perceptions
3. Research consumers’ perceptions on competing
offerings.
4. Determine preferred combination of attributes.
5. Develop positioning concept that communicates
attributes as benefits.
6. Create a positioning statement and use it to
communicate with the target audiences.
Positioning
The value
proposition,
expressed
through
promotion,
stating the
product’s or
service’s
capacity to
deliver specific
Dr.S.R.Islam,Professor,JnU benefits.
Chapter Three Slide
32
Umbrella Positioning
Is a statement or
slogan that describes
the universal benefit of
the company’s
offerings.
Other Types of Positioning
• Premier positioning
• Positioning against the competition
• Key attribute
• Un-owned positioning
Premier positioning
This positioning
strategy focuses on
the brand’s
exclusivity.
Example: The Marketer
of joy positioned it as
“the costliest
perfume in the
world”.
Jennifer Lawrence stars in Dior ‘Joy’ fragrance campaign
Positioning against the competition
Positioning statements acknowledge competing brands.
Watch Nagad advertisement!
Key attribute
Positioning based on
relevant attributes
often express the
brands superiority.
The new iOS 14
means for iPhone
users: 9 key
features
.
Un-owned positioning
A perception that
is not clearly
associated with a
brand or product.
Vaseline
positioned on
“healing”
Repositioning
Repositioning is the
process by which a
company
strategically
changes the
distinct image and
identity that its
product or brand
occupies in
consumers’ minds.
Perceptual Map
PP Presentation by
Ph.D (Malaysia), MBA (Australia), M.Com(DU)
Professor
Copyright © 2015 Pearson Education
Needs and Motivation
• Needs are the essence of the marketing

concept. Marketers do not create needs but
can make consumers aware of needs.
• Motivation is the driving force within
individuals that impels them to action.

The Motivation Process

Types of Needs
• Innate Needs
– Physiological (or
biogenic) needs that are
considered primary
needs or motives
• Acquired Needs
– Learned in response to
our culture or
environment. Are
generally psychological
and considered
secondary needs
Goals
• The sought-after results of
motivated behavior
• Generic goals are general
categories of goals that
consumers see as a way to
fulfill their needs
• Product-specific goals are
specifically branded
products or services that
consumers select as their
goals
Pandemic surprise: Washing machines sold
out all over
Source: https://www.thedailystar.net/business/news/pandemic-surprise-washing-machines-sold-out-all-over-1933789

Need Arousal and Selecting Goals
Need Arousal Selecting Goals
• Internal stimuli • Factors
– personal experiences and
• Emotional or cognitive
knowledge
processes
– physical capacity
• External stimuli – cultural norms and values
– goal accessibility
• Approach objects-Positive
outcome
• Avoidance objects- Negative
outcome

Needs and Goals
• Needs and goals are interdependent

• Needs are never fully satisfied
• New needs emerge as old ones are satisfied
• Success and failure influence goals

Frustration and Defense
Mechanisms
Frustration is the feeling that results
from failure to achieve a goal, and
defense mechanisms are cognitive and
behavioral ways to handle frustration.

Defense Mechanisms

Types and Systems of Needs
• Henry Murray’s 28 psychogenic needs

• Abraham Maslow’s hierarchy of needs
• A trio of needs
Copyright © 2015 Pearson Education 11 Slide 11 of 35

Henry Murray’s 28 psychogenic needs
In 1938, the pioneering psychologist Henry

Murray prepared an extensive list of
psychogenic needs, which represented the
first systematic approach to the
understanding of non biological human
needs.
Murray organized his needs into five groups:
Ambition, Materialistic, Power, Affection,
and Information need
Maslow’s Hierarchy of Needs

Marketing Applications of Maslow’s Theory
• Physiological needs: health foods, medicines,

and low-fat products
• Security needs: Insurance, preventive medical
service, and home security systems to satisfy
safety.
• Social needs: Consumer buy, personal care and
grooming products.
• Esteem needs: Buy high tech luxury products
• Self Actualization: Hobby related product,
exotic and physically challenging adventure trip
Self Actualization
Wasifa reached
the top of the
8,848-metre
(29,029-foot)
mountain
Yusaku Maezawa,
Wasfia Nazreen during a mountaineering expedition
the first
prospective rider
on SpaceX’s
future deep-space
rocket
Trio of Needs
• Power
• Affiliation
• Achievement
Which of the trio of

needs does the ad
appeal to?

The Measurement of Motives
• Self reports
• Qualitative Research
• Motivational Research

Opening example: Brand personification
Consumers often purchase
products and brands because
advertisers have given them
“personalities” that differentiate
them from competing offerings.
Brand personification occurs
when consumers attribute
human traits or characteristics to
a brand.
Brand personification is a form of
anthropomorphism,which refers
to attributing human Zoo- Zoo characters, introduced by Vodafone, to
characteristics to something that reflect anthropomorphism in the Indian context
is not human

Brand personification

Personality
The inner psychological characteristics
(the specific qualities, attributes,
traits, factors, and mannerisms that
distinguish one individual from other
individuals) that both determine and
reflect how we think and act.

The Facets of Personality
(1) Personality reflects individual differences;
e.g “high” and low ethnocentrism
(2) Personality is generally consistent and
enduring; e.g sister’s caring attitude
(3) although it is enduring, personality can
change. For instance, major life events, such as
marriage, the birth of a child, the death of a
parent.

Theories of Personality
• Freudian theory
• Neo-Freudian
personality theory
• Trait theory

Freudian Theory
The premise of Freudian theory is that
unconscious needs or drives, especially sexual
and other biological drives, are at the heart of
human motivation and personality.
Freud constructed his theory on the basis of
patients’ recollections of early childhood
experiences, analysis of their dreams, and the
specific nature of their mental and physical
adjustment problems.

Freudian Theory
• Id
– Warehouse of primitive or
instinctual needs for which
individual seeks immediate
satisfaction
• Superego
– Individual’s internal
expression of society’s
moral and ethical codes of
conduct
• Ego
– Individual’s conscious control
that balances the demands of
the id and superego
How Does This Marketing Message Apply the
Notion of the Id?

It Captures Some of the Mystery and The Excitement
Associated With the “Forces” of Primitive Drives.
Copyright © 2015 Pearson Education 26 Chapter Five SlideSlide 26 of 35

Trait Theory
• Trait theory focuses on empirical measures of
personality in terms of specific psychological
characteristics, called “traits.”

Personality and Understanding
Consumer Behavior
Consumer Social
Dogmatism
innovativeness character
Optimum
Need for Sensation
stimulation
uniqueness seeking
level
Variety-
novelty
seeking
Copyright © 2015 Pearson Education 28 Chapter Five Slide Slide 28 of 35
Consumer Innovativeness
• Willingness to innovate
• Further broken down for hi-tech products
– Global innovativeness
– Domain-specific innovativeness
– Innovative behavior
Copyright 2010
Copyright © Pearson
2015 Pearson Education Education, Inc. publishing as 29 Chapter Five Slide Slide 29 of 35
Dogmatism
• A personality trait that reflects the degree
of rigidity a person displays toward the
unfamiliar and toward information that is
contrary to his or her own established
beliefs

Dogmatism
Highly dogmatic consumers tend to be more receptive to ads that

contain appeals from authoritative figures, such as celebrities and
experts.
Personality and Understanding
Consumer Behavior
• Ranges on a continuum for inner-
directedness to other-directedness
• Inner-directedness
– rely on own values when evaluating products
– Innovators
• Other-directedness
– look to others
– less likely to be innovators

How Does This Ad Target the
Inner-Directed Outdoors Person?

A Sole Person is Experiencing the Joys
and Adventure of the Wilderness

Need for Uniqueness
• Consumers who avoid
conforming to
expectations or
standards of others

Optimum Stimulation Level
• A personality trait that
measures the level or
amount of novelty or
complexity that
individuals seek in their
personal experiences
• High OSL consumers
tend to accept risky and
novel products more
readily than low OSL
consumers.
Sensation Seeking
• The need for varied,
novel, and complex
sensations and
experience. And the
willingness to take social
and physical risks for the
sensations.
Skydiving

Variety-Novelty Seeking
• Measures a consumer’s degree of variety

seeking
• Examples include:
– Exploratory Purchase Behavior
– Use Innovativeness
– Vicarious Exploration

Cognitive Personality Factors
• Need for cognition (NFC)
– A person’s craving for
enjoyment of thinking
– Individual with high NFC
more likely to respond to
ads rich in product
information
.
Copyright © 2015 Pearson Education Chapter Five Slide Slide 39 of 35

Cognitive Personality Factors
• Visualizers
• Verbalizers

Other Personality Factors
• Visualizers vs.
Verbalizers
• Materialism
• Ethnocentrism
Is the ad trying to
appeal to visualizers or
verbalizers? Explain.

Why Is This Ad Particularly Appealing to Verbalizers?

It Features a Detailed Description

Brand Personality
• Personality-like traits associated with brands
• Examples
– Purdue and freshness
– Nike and athlete
– BMW is performance driven
• Brand personality which is strong and favorable
will strengthen a brand but not necessarily demand
a price premium

Product Anthropomorphism and
Brand Personification
• Product Anthropomorphism
– Attributing human characteristics to objects
– Tony the Tiger and Mr. Peanut
• Brand Personification
– Consumer’s perception of brand’s attributes for
a human-like character
– Mr. Coffee is seen as dependable, friendly,
efficient, intelligent and smart.
Copyright © 2015 Pearson Education 45 Chapter Five Slide 45 45 of 35

Slide
A Brand Personality Framework

Product Personality Issues
• Gender
– Some products perceived as masculine (coffee and
toothpaste) while others as feminine (bath soap
and shampoo)
• Geography
– Actual locations, like Philadelphia cream cheese and
Arizona iced tea
– Fictitious names also used, such as Hidden Valley
and Bear Creek
• Color
– Color combinations in packaging and products
denotes personality

Self and Self-Image
• Consumers have a
variety of enduring
images of
themselves
• These images are
associated with
personality in that
individuals’
consumption relates
to self-image

Different Self-Images
Actual Self-Image • How consumers see themselves
• How consumer would like to see

Ideal Self-Image
themselves
Social Self-Image • How consumers feel others see them
Ideal Social • How consumers would like others to

Self-Image see them
Expected • How consumers expect to see
Self-Image themselves in the future
• Traits an individual believes are in her
Out-to self
duty to possess
Copyright © 2015 Pearson Education 49 Slide 49 of 35
PP Presentation by
Professor Dr. Shaikh Rafiqul Islam
Ph.D (Malaysia), MBA (Australia), M.Com(DU)
Chairman
Copyright © 2015 Pearson Education
Perception
The process by which
individuals select,
organize, and interpret
stimuli into a meaningful
and coherent picture of
the world. It can be
described as “how we
see the world around
us.”
Perception
Individual make decisions and take
actions based on what they perceive
to be reality, it is important that
marketers understand the notion of
perception and its related concept to
determine more readily what factors
influence consumer to buy.

Sensation & Perception Processes
5
Perceptual Set
What you see in the centre figures depends on the

order in which you look at the figures:
– If you scan from the left, see an old man
– If you scan from the right, see a woman’s figure
6
Context Effects
• The same physical

stimulus can be
interpreted differently
• We use other cues in
the situation to resolve
ambiguities
• Is this the letter B or
the number 13?
7
Perception
• Elements of Perception
– Sensation
– Absolute threshold
– Differential threshold
– Subliminal perception
Copyright © 2015 Pearson Education 8 Chapter Six Slide Slide 8 of 32

Sensation
The immediate and direct response of
the sensory organs to stimuli (units of
input to the senses, as captured by
the sensory receptors).
The absolute threshold is the lowest
level at which an individual can
experience a sensation.

The Absolute Threshold
The lowest level at which an individual can
experience a sensation is called the absolute
threshold.
Example: The distance at which a driver can

note a specific billboard on a highway is that
individuals absolute threshold.

Sensory adaptation
As our exposure to the stimulus increases,
we notice it less.
Sensory adaptation is “getting used to”
certain sensations; that is, becoming
accommodated to a certain level of
stimulation and becoming less able to notice
particular stimulus.
Many of the promotional methods aimed at increasing
sensory input take the form of ambush marketing or
experiential marketing.

Ambush Marketing
Placing ads in places where consumers do
not expect to see them and cannot
readily avoid them.
Experiential Marketing
Allows customers to engage and interact
with offerings in sensory ways in order to
create emotional bonds between
consumers and marketing offerings
Ambush Marketing

Ambush Marketing
Bangladesh national cricket team players pose for a photograph during a training session in
Queenstown, New Zealand on 11/03/2021
Experiential Marketing
WestJet’s ‘Christmas Miracle’ Watch the video!!!!

Differential Threshold
(Just Noticeable Difference – j.n.d.)
• Minimal difference that can be detected
between two similar stimuli
• Weber’s law
– The j.n.d. between two stimuli is not an absolute
amount but an amount relative to the intensity
of the first stimulus
– The stronger the initial stimulus, the greater the
additional intensity needed for the second
stimulus to be perceived as different.

Marketing Applications of the J.N.D.
• Marketers need to
determine the
relevant j.n.d. for their
products
– so that negative
changes are not
readily discernible to
the public(reduction
in product size or
increase price)
– so that product
improvements are
very apparent to
consumers( improved
quality)

Marketing Applications of the J.N.D.
Fair and Lovely is now Glow and Lovely

Subliminal Perception
• Stimuli that are too weak or too brief to be

consciously seen or heard
– They may be strong enough to be perceived by
one or more receptor cells.
• Is it effective?
– Extensive research has shown no evidence that
subliminal advertising can cause behavior
changes
– Some evidence that subliminal stimuli may
influence affective reactions

Subliminal Perception may work!!!!!!!!
One study identified that during mid 1950s in

an ad campaign, the message “ DRINK Coca
Cola and Eat Popcorn” was shown on cinema
screen for 1/3000 of a second after every
five second for six week period in a
particular area’s theatre. Researchers noted
that sales of Coke increased by 57.7 percent
and Popcorn by 18.1 percent during the
campaign period.
23
Perceptual Selection
The Stimulus
• Contrast
• Shocking or
unrealistic
images
Benetton’s “Unhate”
Campaign: Hu Jintao
and Obama

Perceptions are affected by…
• Expectations
• Motives
• Selective Perception
– Selective Exposure(Actively avoid painful ad)
– Selective Attention (Note ads that satisfy needs)
– Perceptual Defense (Smoker don’t pay attention in warning)
– Perceptual Blocking ( Watching YouTube to
block ads)

Perceptual Organization
Gestalt psychology
mentions three of
basic principles
• Figure and ground
• Grouping( Memorizing
phone no)
• Closure ( Familiar TV
commercial can
perceive audio track)

Perceptual Organization Application
What Element of
Perceptual Organization
Is Featured in This Ad?

Perceptual Interpretation
• Stereotyping
• Triggers
– Physical appearance
– Descriptive terms
– First impressions
– Halo Effect

Stereotyping
Individuals carry
biased pictures in
their minds of the
meaning of various
stimuli.

Stereotyping
Watch the video of scooty which dispel a stereotype.

Interpretation
Perceptual Distortion
• Physical • Positive attributes of

Appearances people they know to
• First Impressions those who resemble
• Jumping to them
Conclusions • Important for model
selection
• Halo Effect • Attractive models are
more persuasive for
some products
Interpretation
• Physical • First impressions are

Appearances lasting
• First Impressions • The perceiver is trying to
• Jumping to determine which stimuli
Conclusions are relevant, important,
or predictive
• Halo Effect • “Aloe Vera” on the
surface of its mattress!!!
Interpretation
• Physical • People tend not to

Appearances listen to all the
• First Impressions information before
• Jumping to making conclusion
Conclusions • Important to put
persuasive arguments
• Halo Effect first in advertising

Interpretation
• Physical • Consumers perceive and

Appearances evaluate multiple objects
• First Impressions based on just one
dimension
• Jumping to
• Used in licensing of
Conclusions
names
• Halo Effect • Important with
spokesperson choice
• Family brand
Halo Effect

Brand Image
• Positioning
• Brand image updates
• Package image
• Service image

Product Positioning
• Establishing a specific image for a brand in
the consumer’s mind in relation to
competing brands
• Conveys the product in terms of how it
fulfills a need
• Successful positioning creates a distinctive,
positive brand image

Packaging as a Positioning Element
• Packaging conveys the image that the brand

communicates to the buyer.
• Color, weight, image, and shape are all
important.
• Repositioning might be necessary because:
– Increased competition
– Changing consumer tastes

Positioning of Services
• Image is a key
factor for services
• Services often
want a
differentiated
positioning
strategy to
market several
versions of their
service to
different markets.

Quality
• Product quality
– Intrinsic cues
– Extrinsic cues
• Service quality
• Price/quality relationship
• Store image
• Manufacturer image

Perceived Risk
The degree of uncertainty perceived by the consumer
as to the consequences (outcome) of a specific
purchase decision

How Consumers Handle Risk

Consumer Learning
PP Presentation by
Prof. Dr. Shaikh Rafiqul Islam
Chairman
Opening example: Dove
• Launched in the US-1957

• First ventured in India in
1993 with its soap offerin
g
• Real beauty, moisturizers
, care and trust were som
e of the associations of th
e brand that were extend
ed to other categories lik
e body lotion, face wash,
deodorant, and hair oil.
Dr. S.R.Islam,Professor, JnU 2
Learning
• The process by which individuals acquire the p

urchase and consumption knowledge and exp
erience that they apply to future related beha
vior.

Learning
– There is no single universal theory of how people l

earn
– Two major school of thought concerning learning
• Behavioral Theory
• Cognitive Theory

Two Major Learning Theories

Elements of Learning Theories

Behavioral Learning
• Classical Conditioning
• Instrumental (Operant) Conditioning
• Observation (or modeling) learning

Pavlov Experiment on classical conditio
ning

Pavlov Experiment on classical conditi
oning
Conditioning Trial: Salivation
Test Trial: Salivation

Models of Classical Conditioning

Consumer Behavior Context
• Conditioned Stimuli: Brands, products and ret

ail store
• Conditioned Response: Store Patronage
• Unconditioned stimuli: Celebrity endorsers, sp
orts figures
• Circumstances that produce the conditinal lea
rning

Consumer Behavior Context
Classical conditioning
is seen as cognitive as
sociative learning thr
ough the acquisition o
f new knowledge abo
ut the world.
Ispahani biscuit paired with tea
Ispahani tea conditioned with fun.mp4

Strategic Applications of
Classical Conditioning
• Increases the associatio
Basic Concepts n between the condition
• Repetition ed and unconditioned st
imulus
• Stimulus generalizat
• Slows the pace of forget
ion
ting
• Stimulus discrimina • Advertising wearout is
tion a problem : Memory ma
y no longer improve wit
h repeated exposure.
Same adv theme with v
arying background.
How can you reduce advertising wear-out?
Marketers reduce it by using different ads expressing the s

ame message or advertising themes.

Basic Concepts • Having the same respon
se to slightly different st
• Repetition imuli
• Helps “me-too” product
s to succeed
ion
• Useful in:
• Stimulus discrimina – product extensions
tion – family branding
– licensing

Stimulus generalization
• Product line extension

(additions of related items)
• Product form extensions
(Same product in different form)
• Family brand (Whole line of
company products under the
same brand name)
• Licensing (The name of
designers, celebrities, and even
cartoon characters are
attached)

Licensing

• Repetition • Selection of a specific sti
Basic Concepts mulus from similar stim
ion uli
• Opposite of stimulus ge
• Stimulus discrimina
neralization
tion
• This discrimination is th
e basis of positioning wh
ich looks for unique way
s to fill needs

Skinner’s Instrumental learning...cont
d.

A Model of Instrumental Conditioning

Reinforcement of Behavior
Rewards particular behavior. Removal of an unpleasant sti

Example: Child receive ice cre mulus.
am when passing ice cream st Example : Child hates to swall
and owing medicine (Cold sympto
m go away having medicine)

Reinforcement of Behavior
Dr. S.R.Islam,Professor, JnU Chapter Seven Slide 25

Instrumental Conditioning
• Customer Satisfaction (Reinforcement)
• Reinforcement Schedules (free after-dinner drink or fruit p
late always served to regular patron)
• Shaping (many car dealers encourage showroom visits by providing s

mall monetary or other gift)
• Massed versus Distributed Learning

Observational Learning (modeling o
r vicarious learning)

Information Processing and
Cognitive Learning
• Cognitive Learning
– Learning involves co
mplex mental proces
sing of information
– Emphasizes the role
of motivation

Information Processing and Memory St
ores

Theoretical Models of Cognitive Learn
ing
Innovation Innovation D
Generic Fra Promotional Tricompetent Decision-Ma Adoption ecision Proce
mework Model Model king Model Model ss
Knowledge Attention Cognitive Awareness K Awareness
nowledge Knowledge
Evaluation Interest Affective Interest
Desire Evaluation Evaluation Persuasion
Behavior Action Conative Purchase Trial Decision
Postpurchase Adoption Confirmation
Evaluation

Measures of Consumer Learning
Brand Loyalty
• Recognition and Recall Measures
• Brand Loyalty

Culture and the Consumer Behavior
PP Presentation by
Ph.D (Malaysia), MBA (Australia), M.Com (DU),
Professor
Culture
Culture deals with a group’s design for living
It is the human-made part of human environment
Itis ‘the sum total of knowledge, beliefs, art, morals, laws,
customs, and any other capabilities and habits acquired by
humans as members of society’
Marketing mix must be culturally acceptable
Markets are the interaction of a marketer’s efforts,
economic conditions, & all other elements of the culture
Marketers act as change agents due to cultural change
Copyright © 2015 Pearson Education Professor S.R.Islam, Department of Marketing, JnU Slide 2 of 35
Definitions and Origins of Culture
 Dutch mgt. professor Hofstede refers to culture as the
- ‘Software of the mind’ and argues that it provides a guide for
humans on how to think and behave and acts as a a
problem solving tool
 James Hodgson, former U.S. ambassador to Japan,
describes culture as a “thicket”
[
 ‘It is the sum of the values, rituals, symbols, beliefs, &

thought processes that are learned, shared by a group of
people, & transmitted from generation to generation’
 Culture resides with an individual’s mind
Copyright © 2015 Pearson Education Professor Dr. S.R.Islam, Department of Marketing, JnU Slide 3 of 35
Origins , Elements, and Consequences
of Culture
Origins
Geography
( climate, topography, flora, fauna, microbiology)
History
Adaptation
Technology & Political economy
Social institutions
( family, religion, school, media, government, corporations)
Socialization/ Peers Imitation Elements of Culture

acculturation ( values, rituals, symbols, beliefs, thought processes)
Consequences
Application Consumption decisions

Management Style
& behavior
The sum total of learned
beliefs, values, and
customs that serve to
Culture
regulate the consumer
behavior of members of
a particular society.
Copyright © 2015 Pearson Education 5 Chapter Eleven SlideSlide 5 of 35

Culture
Culture is an extremely broad and
encompassing term. It includes what we
have learned:
• our history,
• values, morals,
• customs, art, and habits.
Cultural forces are not static; they change
and adapt just as marketing adapts to its
environment .

A Theoretical Model of Culture’s Influence on
Behavior

Culture and consumer behavior
Culture is the conventionalized behavior

pattern of the society. Culture affects
consumer behavior significantly, and, as a
result, knowledge of culture, its
characteristics, and components are
essential for a marketer to formulate
appropriate strategies.

Importance of the cultural study
• The influence of the religious, family, educational,

and social system
• Difficult to overlook the importance of culture as
a motivator of consumer behavior.
• It is easy to state the general significance of
culture.
• Cultural dimensions among countries vary even
more than economic dimensions so that it
becomes difficult at best to find general patterns.

• Certainly, culture is the most pervasive
external force on an individual’s
consumption behavior.
• How people work and play, what they eat,
how they eat, how and what they buy are all
affected by the cultural traditions and
socially developed modes of behavior.

• Marketing executives must consider the

importance of cultural setting within which
consumer behavior takes place.
• The attitudes people posses, the values they
hold dear, the lifestyles they enjoy, and the
interpersonal behavioral patterns they adopt
are the outcomes of the cultural setting.

• Failure to carefully consider cultural
differences is often responsible for
monumental marketing failures. In fact, it has
been convincingly argued that the root cause
of most international business problems is the
self-reference criteria, i.e., the unconscious
reference to one’s own cultural values.

• Cultural influences have
broad effects on buying
behavior because they
permeate our daily lives.
• For example, in our urban
culture, the problem of time
scarcity many people do time
saving shopping and buy time
saving products such as
instant noodles to cope with
the scarcity of time.
Definition and meaning of culture
According to J. F. Engel, R. D. Blackwell

A culture is “the complex of values, ideas,
attitudes, and other meaningful symbols
created by people to shape human behavior
and the artifacts of that behavior as they are
transmitted from one generation to the
next.”

This definition highlights three important
attributes of an individual’s culture.
• First, it is ‘created by people’, evolving over

time as a result of the human activities and
passed on to the succeeding generations.

• Second, the impact of cultural influence is both

intangible and tangible. People’s basic attitudes
and values are a direct result of their cultural
environment. Beliefs in freedoms of speech and
choice, heterosexuality, and God are products of
human action. Additionally, people leave physical
evidence of their culture, through art and
craftwork, buildings, furniture, laws, and food.

• Third, the cultural environment evolves over
time, and it is most often evolves over
lengthy periods. Changes in women’s roles
in the home and in business, and the
outward desire for leisure time have come
about quite slowly. Other changes, however,
occur quicker. Clothing styles for example,
come and go rather hastily.

Referring Ralph Linton, Berkman and Gilson
in their book ‘Consumer Behavior - Concepts
and Strategies’, defined culture as ‘patterns
of learned behavior which are held in
common and transmitted by the members
of any given society.’

If we explain the above definition, we can
identify three aspects of a given culture.
• Culture is a pattern of behavior
• Culture is learned
• Culture is transmitted from one generation
to the next

• Culture is a pattern of behavior: culture refers
basically to the style of behavior. This style is found
to be present in the behaviors of the majority of
people living in a particular culture. This pattern
varies from culture to culture and as a result
consumption vary among countries. The pattern of
behavior that you will see in Bangladeshi culture
definitely will not be seen in other cultures.

Culture is learned: The second important aspect
relating to culture is that, we learn it through
experiences and interactions. The aspects of culture
are not found in an individual right from his birth. He
rather learns those from others in the society as he
follows, observes, and interacts with them.

Example: A Bangladeshi
child, for example, if
grows in a European
country among the
Europeans, will definitely
not learn Bangladeshi
cultural aspects but, the
European cultural
aspects which will
influence his behavior.

• Culture is transmitted from
one generation to the next:
What we have in our culture
in terms of values, ideas,
attitudes, symbols, artifacts
or other, we are likely to
conform to those. We not
only follow the patterns of
our cultures but also teach
them to our next generation
so that they are guided by
them. This process is known
as ‘Enculturation’.
Characteristics of culture
To be successful in a particular culture, it is
imperative for a marketer to understand the
characteristics of culture.
(a) the invisible hand of culture;
(b) culture satisfies needs;
(c) culture is learned;
(d) culture is shared; and,
(e) culture is dynamic.

The invisible hand of culture
(a) The invisible hand of
culture: Culture is like the air
we breathe. It is so obvious
that we cannot escape from
it. It pervades our lives so
much so that we cannot
actively feel its impact. It
affects every sphere of our
life very secretly but strongly
so frequently that we do not
have the opportunity to
even think of its (culture)
impact.
Culture satisfies needs
(b) Culture satisfies needs:
Individuals are having different
types of needs. They have
need for food, clothing,
shelter, medicine, love and
belongingness, esteem and
status, achievement, and a
number of physical, social, and
psychological needs. By
providing standards, culture
dictates people about what to
buy, when to buy, how to buy,
how to use and consume
different products, and above
everything else, what life style
one should assume to satisfy
their needs.
• Example: The hunger
need is satisfied with
different food items by
people of different
cultures. A man in Bali,
Indonesia, is likely to
satisfy this need eating
mango, whereas a
Bangladeshi will take
rice to meet this need.

Culture is learned
(c) Culture is learned: It is mentioned earlier in

the definition of culture that, it (culture) is
learned rather programmed genetically.

3(three) ways of learning culture
There are 3(three) ways of
learning culture.
Formal learning occurs when senior
members teach different cultural
aspects to juniors;
Informal learning occurs as a result
of the child’s imitation of
behaviors of others such as elder
brothers, sisters, parents or well
as celebrities;
Technical learning occurs as a result
of formal education received
from different institutions.

Culture is shared
(d) Culture is shared:
Cultural values, beliefs,
norms, etc., are shared by
the majority of the
members of a given
culture because they
gratify our needs. As they
are transmitted by the
members of a society to
their next generation, they For example, majority of Bangladeshi Muslim males go to
mosque on Fridays to offer the ‘Jumma’ prayer and it is
are practiced by the considered as a social activity.
majority.
Culture is dynamic
(e) Culture is dynamic: No
culture is static. Cultural
swings take place. As the
environment is changing,
culture has to be changed
in order to survive.
Therefore, culture is a
dynamic concept, rather a
static one.

Components culture
Three important components in of culture:
(i) cognitive component;
(ii) material component; and,
(iii) normative component.
In other words, culture of a particular society
is composed of three distinct elements or
components. Let us now have a brief
discussion on them.

Cognitive component
(i) Cognitive component: The basic
component of any culture is one
relating to people’s knowledge
about the creation and existence
of the universe. This aspect is
based on either people’s
observation or on certain factual
evidence that they have.
An individual of a backward
culture believes in gods,
superstitions, and some other
objects as a part of his culture’s
cognitive aspect.
Material component
(ii) Material component: Another
important component of any given
culture is the material feature of the
society. It consists of all the
tangible things that human beings
make, use, and give value to the
material component varies from
culture to culture as the cognitive
component.
The artifacts include type of :
housing ,furniture, material goods
they possess.

Normative component
(iii) Normative component: The other
important component of a culture is the
normative component.
The normative component is composed of:
the values and norms of the society
comprises the values, beliefs.
Understanding culture means understanding
its values.

Normative component
• Among the values the culture holds, some

are
• Core or central values,
• Peripheral values.

Core values
Core values are the deeply held enduring
beliefs that guide our actions, judgments,
and specific behaviors and that support our
efforts to realize important aims.

Peripheral values
Peripheral values reflect our central values. If
you value your health, you may value regular
exercise and a low-salt, low-cholesterol diet.
You may also abstain from smoking
cigarettes and drinking alcoholic beverages.

Useful concepts of Cultural Analysis
• Cultural dimensions among countries vary

even more than economic dimensions so
that it becomes difficult at best to find
general patterns.

Cultural Analysis
According to Berkman and Gilson Analyzing
a total, unified cultural system means :
• identifying its values and norms,
• observing how these normative aspects are
translated into group and individual
behavior and
• examining the material aspects of the
culture.

Cultural Analysis
The symbols people use to communicate, the way
they view other cultures, and the changes that take
place vary very greatly among cultures. Marketers
should have a sound idea on these three aspects –
• cultural symbolism,
• cultural relativism, and
• cultural change - for taking appropriate marketing
action.

The connotations……………
The connotations associated with:

• body motions,
• greetings,
• colors,
• numbers,
• shapes, sizes, and above everything else,
symbols vary considerably across cultures

Cultural Symbolism
• A symbol may be defined as the sign or

representation of something moral or
intellectual by the images or properties of
natural things, as “the lion is the symbol of
courage”.

Cultural Symbolism Contd………
Different studies on cultures identified two
types of symbols used by people in
communicating among them. They are:
(a) referential symbols; and,
(b) expressive symbols.

Referential symbols
Referential symbols are those that mean or
indicate specific objects.
Example: The word ‘pen’, for example, means
an item which is used for writing purpose. It is
easy for the marketers to understand the
meaning of referential symbols, and as a
result they do not face much problem with
regards to the referential symbols.

Expressive symbols
Expressive symbols are those that may carry
different meaning to people of different cultures.
They need to be interpreted from the particular
cultural context since they carry connotative or
implied meaning.
Example: An expressive symbol, such as showing
thumb, may mean an appreciation to an American,
whereas, the same symbol may carry a negative
connotation to a Bangladeshi.

Cultural Relativism
Another important concept revealed from
anthropological studies regarding culture is
‘ethnocentrism’ which gave birth to the
concept of cultural relativism. One of the
basic human tendencies is to consider their
cultures as superior to others.

Cultural Change
Cultural values and norms undergo changes.
Changes are occurring in both
• core and
• secondary beliefs and values.
All of the changes as well as absence of
change, have important implications for
marketing practice as they change consumer
behavior.

Cultural Change
Change is an evolutionary process, which
can be accelerated by number of factors.
They are:
(a) technological changes;
(b) conflicts between existing values;
(c) exposure to another culture’s values; and
(d) dramatic events.

Cross-cultural perspective
• Marketing, now-a-days no more considered
as a local, regional, or national phenomenon.
It is rather considered a multinational or
international phenomenon. The product that
you produce here in Bangladesh, may have
market overseas, well beyond your national
boundary. In order to be successful in foreign
market(s), your marketing strategies should
be based on a multinational perspective.

Why the knowledge of other cultures is required for a
marketer?
• A person is born into a society and is

socialized in its ways. His interactions with
others, education, and exposure to
information all take place within the societal
framework. These influence his consumption
behavior in turn.

Why the knowledge of other cultures is required for
a marketer?
• Difference in Culture
• Solutions to problems of survival differ
• Systematic differences among cultures, for
example, in attitudes toward time
• Own rules regarding the space around
another person and his possessions.

What Cross-Cultural study means?
Cross-cultural study or research is a

technique applied for comparing cultures on
the basis of similarities and differences as
well as studying different segments of a
total culture.

Cross-cultural study
Engel, Blackwell, and Miniard in their book

‘Consumer Behavior’, defines cross-cultural
study as the systematic comparison of
similarities and differences in the material
and behavioral aspects of cultures.

How to adapt your marketing
decisions with other cultures?
(i) Is the geographic area homogeneous or
heterogeneous with respect to culture?
Example:In UK, for example, Indian British,
American British, Somalian British, and so
on, may display different consumption
behavior.

(ii) How does the cultural setting influence
or determine product and service needs?
Example : Transport need, for example, is
satisfied by different modes in different
cultures.

(iii) What needs can this product or a version
of it fill in this culture or how could it be
adapted to do so?
Example : Bicycles meet the recreational
needs in the developed countries, where it
meets basic transportation needs in
underdeveloped countries.

(iv) Can enough of the group(s) needing the
product afford the product?
Example: Knowing the answers to this will
help him decide on the price and credit
policies.

v) What values or patterns of values are
relevant to the purchase and use of this
product?

• (vi) What is the distribution, political and legal
structure concerning the product?
Example: In Bangladesh consumer goods are
distributed following very extensive distribution
channels as people opt for it. The same channel
may not work in other countries for the same type
of product. In Western countries, for example,
people prefer to buy their necessities from
department stores or super markets, as they do
not want to be disturbed at home

• (vii) In what ways can we communicate
about this product?

Subculture and the Consumer Behavior
PP Presentation by
Professor
Introduction
 Apparently it seems that culture of a particular country
or a society is homogeneous, but in reality it is composed
of a larger number of more or less distinct groups. Each
of these groups is known as a subculture. The knowledge
of subculture provides important guidelines to marketers
in formulating strategies for effective performance of
marketing activities.
2 Dr. S.R.Islam, Professor,JnU

Definition of Subculture
 One’s belongingness to a
particular segment could
display a different behavioral
pattern. These behavioral
differences may be well
understood by a term known
as subculture.
 Subculture may also be defined
in terms of such factors as
region, rural or urban
residence, ethnic background,
and religion.
Definition of Subculture..contd
 Berkman and Gilson have defined subculture for
marketing purposes as any cultural patterning that
preserves important features of the dominant society but
provides values and life styles of its own. Bangladeshis for
example, hold certain types of values and maintain
certain common norms around the country. But people
of hill-tracts display a different lifestyles though they
hold common values of the Bangladesh culture.

Major sub cultural categories and their influences on
consumption
Let us now have some idea on the major sub cultural categories:
1.Ethnic subculture
2. Religious subculture
3. Regional subculture
4. Age
5. Singles subculture
6. Subculture based on Gender difference
7.Occupational subculture
8. Subculture based on Social Class

Ethnic subculture
 The ethnic subculture is
based on the nationality of
one’s ancestors who have
migrated to a new country.
 Ethnic subculture is usually

found in affluent countries
where people migrate from
other parts of the world
with the hope of a better
life and live-li-hood.
British Bangladeshi Fusion Wedding

Ethnic subculture
 In UK, for example, there are many Bangladeshi immigrants
who have now become British citizens, but they display
consumption behavior in many occasions that resembles with
that of someone living here in Bangladesh. They buy and use
Bangladeshi foods, wear ‘lungi’ and ‘sharee’ and go to
mosques on Fridays. This could be a glaring example of how
ethnic subculture affects consumer behavior.

Functions served by ethnic subcultures
 Milton M. Gordon in his “The Sub-society and the Subculture”
mentioned three functions that an ethnic subculture may serve.
They are:

1. Ethnic subculture provides a psychological source of group

identification. An individual gains a sense of identity as he
interacts with other members of the same ethnic group. The
interaction increases intimacy among the members and they
feel good to identify themselves with a distinct group.

2. It also offers a patterned network of groups and
organizations, and a member of the said subculture may
maintain cordial and intimate relationship with other
members as long as he wishes.

3. An individual migrating to a new culture may find it
difficult to understand many aspects of that culture.
Here the ethnic subculture to which he belongs may help him to
view the new culture by providing him a guideline on the new
culture.

Religious subculture
An individual’s religious affiliation influences to a great
extent his consumption pattern. Those who belong to a
particular religion may buy/not buy and use/not use certain
goods and services. Members of a particular religion
constitute what we call religious subculture.

Religious subculture
 Muslims for
example, buy and
consume certain
specific food items
heavily during the
month of ‘Ramadan’
and buy lot of gifts
during the ‘Eid-Ul-
Fitr”.

Regional subculture
The way people lead their lifestyles may also vary according to
where they live or from which part of the country they have
moved to the other part of the country. People from a
particular part of the country or people living in a particular
part constitute what we call regional or geographic
subculture.

Regional subculture
Different geographic
regions of the country
pose different problems
that consumers must
solve. It includes:
 Climatic conditions
 Different age distributions
and different social
histories .

Subculture based on Age
Subcultures may also be based on the age differences of
people living in the same country and belonging to the same
main culture.
It is likely that those who belong to the teen age group will
behave quite differently than those of middle age or elderly.
Because the outlooks, experiences, attitudes and other
aspects vary among people of different age groups, their
consumption patterns are likely to vary.

Subculture based on Age
Subculture may form
according to:
 Teen age group
 Youth group
 Elderly group

Problems and challenges in reaching elderly
market.
 The communication strategy, particularly formulated to
reach elderly market should be well thought.
 People dislike to admit to themselves or others that they are
no longer young .

Singles Subculture
 The singles subculture consists of unmarried individuals. This
subculture is found to be increasing particularly in the urban
and semi-urban areas.

Singles Subculture
Quite a few reasons are associated with the growing size of
the subculture of the singles.
 They could be delaying marriage;
 Postponement of marriage;
 Higher divorce rates;
 Inability to find a suitable source of earning to bear family
expenditures and so on.

Singles Subculture
The singles have some special needs, which cannot be
met through normal social interaction. It includes:
 Singles night clubs,
 bachelors’ hostels/mess,
 convenience foods, restaurants,
 sports equipment, etc., could be some of the examples
of products and services aimed at the subculture of
singles.

Subculture based on Gender difference
Subculture may also be formed based on gender difference,
such as subculture of males and subculture of females.

Subculture based on Gender
difference
Men for example, are influenced more by aggressiveness,
competitiveness, independence, self-confidence, and
masculinity.

 Women on the other hand, are influenced by neatness,

gentleness, tactfulness, talkativeness, and femininity.
But, different appeals in the same product are needed for

these two groups.
Cosmetics, perfumes, clothing, bicycles etc., are used both
by men and women.

 But, you know that different designs, colors, sizes, shapes,
and fragrances are provided for by the marketers to appeal
people of different sex.
Bicycle, for example, is designed differently for men and
women.

Occupational subculture
People display different patterns of purchase behaviors
according to their occupational involvement. People of
different occupations may constitute occupational
subcultures, such as subculture of :
 the doctors, subculture of the lawyers, subculture of the
teachers, subculture of the engineers, subculture of the
defense personnel.

Subculture based on Social Class
Social class may also be used as a determinant of sub
cultural differences.
There could be subculture of the
 well-offs,
 subculture of the middle class, and
 subculture of the poverty.
People belonging to the subculture of the rich will
display altogether different buying behavior than those of
middle class and poors.

Subcultural differences affecting marketing
decisions
 Because of the important differences within any culture,
marketers must be aware of diverse subcultures -examining
them individually and on their own terms.
 those identified with a subculture tend to think and act
alike in certain respects, and this has important implications
for their lifestyle.

Subcultural differences affecting
marketing decisions….contd
 Recognition of this has led to experimentation with
market segmentation as a means of developing
effective marketing strategy adapted to market targets
that are believed to have special promise.
 Marketers must recognize that even though their
operations are confined to a particular country, or a
division or district, or even to one city, subcultural
differences may dictate considerable variations in what,
how, and when people buy.

 To deal with these differences effectively, marketers may
have to alter their product, distribution systems, price,
or promotion to satisfy members of particular
subcultures.
 Moreover, they should also bear in mind that one
subcultural background may interact with other aspects
such as social class, personality, life-style and so on
during the buying decision process.

 Marketers should be interested in subcultures to the extent
that they can serve their unique needs. Marketers should
understand that, if the members of a subculture, no matter
how distinct from the dominant culture, do not differ in their
needs and behaviors associated with a particular product
area, the subculture does not require recognition as a
separate group.

Consumer Decision Making and
Beyond
PP Presentation by
Professor
Dr.S.R.Islam, Professor, JnU 1

Levels of Consumer Decision Making
• Extensive Problem Solving
– A lot of information needed
(Diamond Jewelry)
– Must establish a set of criteria
for evaluation
• Limited Problem Solving
– Criteria for evaluation established (buying updated
version of Laptop)
– Fine tuning with additional information
• Routinized Response Behavior
– Usually review what they already know (buying
paracetamol)
Dr.S.R.Islam, Professor, JnU Chapter Fifteen Slide 2
Models of Consumers: Four Views of Consumer
Decision Making
• An Economic View
• A Passive View
• A Cognitive View
• An Emotional View

Consumer
Decision Making
Figure 15.3

Process - Need Recognition
• Usually occurs when consumer has a

“problem”
• Need recognition styles
– Actual state
– Desired state

Prepurchase Search
• Begins with internal search and then moves to

external search
• The impact of the Internet
• There are many factors that increase search
– Product factor
– Situational factors
– Social acceptability
– Consumer factors

Evaluation of Alternatives
• Evoked set
• Criteria used for evaluating brands
• Consumer decision rules
• Decisions by functionally illiterate population
• Going online for decision-making assistance
• Lifestyles as a consumer decision strategy
• Incomplete information
• Applying decision rules
• Series of decisions
• Decision rules and marketing strategy

The Evoked Set
Figure 15-5

Issues in Alternative Evaluation
• Evoked Set
• Consumer decision rules and their application
• Applying Decision Rules
Dr.S.R.Islam, Professor, JnU Chapter 9Fifteen Slide 9

Consumer Decision Rules
• Compensatory
– evaluates each brand in terms of each relevant
attribute and then selects the brand with the highest
weighted score.
• Noncompensatory
– positive evaluation of a brand attribute does not
compensate for a negative evaluation of the same
brand on some other attribute
– Conjunctive, disjunctive, or lexicographic

Hypothetical Use of Decision Rules
Table 15.7
Decision Rule Mental Statement
Compensatory rule I selected the netbook that came out best when I
balanced the good ratings against the bad ratings
Conjunctive rule I selected the netbook that had no bad features
Disjunctive rule I picked the netbook that excelled in at least one

attribute
Lexicographic rule I looked at the feature that was most important to
me and chose the netbook that ranked highest on
that attribute
Affect referral rule I bought the brand with the highest overall rating

• Evoked Set

The Decision Process for Functionally Illiterate
Consumers - Figure 15.6

• Evoked Set

Coping with Missing Information
• Delay decision until missing information is

obtained
• Ignore missing information and use available
information
• Change the decision strategy to one that
better accommodates for the missing
information
• Infer the missing information

• Evoked set
• Going online for decision making assistance
Output of Consumer Decision Making
• Purchase behavior
– Trial purchases
– Repeat purchases
– Long-term commitment
• Postpurchase
evaluation

Postpurchase Evaluation
• Actual Performance Matches Expectations

– Neutral Feeling
• Actual Performance Exceeds Expectations
– Positive Disconfirmation of Expectations
• Performance Is Below Expectations
– Negative Disconfirmation of Expectations

Discussion Questions
• What are four ways that consumers reduce

postpurchase dissonance?
• How can marketers work to help consumers
reduce the dissonance?

Gifting Behavior
Gifting is an act of
symbolic
communication, with
explicit and implicit
meanings ranging from
congratulations and
love, to regret,
obligation, and
dominance.

Gifting Relationships
GIFTING DEFINITION EXAMPLE
RELATIONSHIP
Intergroup A group giving a gift to A Christmas gift from one family to

another group another family ( In BD wedding gift from
bride or groom)
Intercategory An individual giving a gift A group of friends chips in to buy a new
to a group or a group mother a baby gift
giving a gift to an
individual
Intragroup A group giving a gift to A family buys a vacation for itself as a
itself or its members anniversary gift.
Interpersonal An individual giving a gift Valentine’s Day chocolates presented from
to another individual a boyfriend to a girlfriend
Intrapersonal Self-gift A woman buys herself jewelry to cheer

herself up or clothing, hairstyling, spa.
Reported Circumstances and Motivations
for Self-Gift Behavior
CIRCUMSTANCES MOTIVATIONS
Personal accomplishment To reward oneself

Feeling down To be nice to oneself
Holiday To cheer up oneself
Feeling stressed To fulfill a need
Have some extra money To celebrate
Need To relieve stress
Had not bought for self in a while To maintain a good feeling
Attainment of a desired goal To provide an incentive toward a goal
Others Others

Diffusions of Innovation
• How are new products and services

accepted?
Dr.S.R.Islam, Professor, JnU Chapter Fourteen Slide 23

The process by which the
acceptance of an
innovation is spread by
Diffusion
communication to
Process
members of a social
system over a period of
time.

Elements of the Diffusion Process
The Innovation
The Channels of Communication
The Social System
Time
The Innovation
• Firm-oriented definitions
– Product is “new” to the company
• Product-oriented definitions
– Continuous (Newly redesign Apple devices)
– Dynamically continuous ( digital camera, digital video
recorder, USB flash devices)
– Discontinuous (Airplane, radio, PCs).

Continuous Innovation – The Product
is Modified

Product Features That Affect Adoption
Relative • Degree to which consumers consider it superior

Advantage to existing substitutes (Cell phone)
• Degree to which consumers feel it is consistent

Compatibility with their present needs, values, and practices
• The degree to which it is difficult to understand or

Complexity use (Instant food)
• The degree to which it can be tried on a limited

Trialability basis
• The degree to which its benefits can be observed,

Observability imagined, or described
Trialability
The Social System
• Modern social systems accept more innovation

due to their:
– Positive attitude toward change
– Advanced technology and skilled labor force
– Respect for education and science
– Emphasis on rational and ordered social relationships
– An outreach perspective where members interact
with outsiders
– A system where members can see themselves in
different roles

Time
• Purchase Time
• Adopter Categories
• Rate of Adoption

The stages through
which an individual
consumer passes in
Adoption arriving at a decision to
Process try (or not to try), to
continue using (or
discontinue using) a new
product.

Stages in Adoption Process
NAME OF STAGE WHAT HAPPENS DURING THIS EXAMPLE
STAGE
Awareness Consumer is first exposed to the Eric sees an ad for a 23-inch thin LCD
product innovation. HDTV in a magazine he is reading.
Interest Consumer is interested in the Eric reads about the HDTV set on the
product and searches for manufacturer’s Web site and then goes
additional information. to an electronics store near his
apartment and has a sales person show
him the unit.
Evaluation Consumer decides whether or After talking to a knowledgeable friend,
not to believe that this product Eric decides that his TV will fit nicely on
or service will satisfy the need – top of the chest in his bedroom. He also
a kind of “mental trial.” calls his cable company and finds out
that he can exchange his “standard”
cable box at no cost for an HDTV cable
box.
Stages in Adoption Process
NAME OF STAGE WHAT HAPPENS DURING THIS EXAMPLE
STAGE
Trial Consumer uses the product on Since the HDTV set cannot be “tried”
a limited basis like a small tube of toothpaste, Eric buys
the TV at this local electronics store on
his way home from work. The store
offers a 14-day full refund policy.
Adoption If trial is favorable, consumer Eric loves his new HDTV set and expects
(Rejection) decides to use the product on a many year of service from it.
full, rather than a limited basis –
if unfavorable, the consumer
decides to reject it.

PP Presentation by
Professor
Chapter 15 Learning Objectives
15.1 To understand the meaning and importance

of marketing ethics and social responsibility.
15.2 To understand how marketers can exploit
consumers by targeting children and
encouraging overeating and other forms of
irresponsible buying.
15.3 To understand ethically questionable
practices such as covert marketing,
manipulative exposure to advertising, and truth-
in advertising issues.
Chapter 15 Learning Objectives
15.4 To understand the nature and

consequences of provocative advertisements.
15.5 To understand how marketers abuse
consumers’ privacy and the measures that can
stop such practices.
15.6 To understand how marketers can advance
society’s interests by advocating socially
beneficial conduct and discouraging adverse
behavior.

Marketing Ethics: Introductory
discussion
• Marketing Ethics are moral principles that
govern marketers 'behavior. On the personal
level, these principles express the
differences between right and wrong
behavior and the goodness and badness of
human character.
Copyright © 2015 Pearson Education Dr. S.R.Islam, Professor,JnU Slide 4 of 34

Marketing Ethics: Introductory
discussion
• Good and socially
beneficial behavior
includes: contribute
to charity, using
energy responsibly.
PETA(People for the
Ethical Treatment of
Animals)
Ads promoting humans’ loving coexistence with animals.

Marketing Ethics: Introductory discussion
• There are many laws and regulations established by
states and local governments.
• Laws dictate what marketers can and cannot do, and
often regulate the manner in which they advertise,
price and distribute their products and services.
Tobacco Advertising, Promotion and Sponsorship
Regulations in Bangladesh.
• Marketers must be concerned with ethics because not
all that is allowed is in the best interest of society or ,for
that matter, marketers' goals.
• Marketing practices overtly contradict societal interests
end up with embarrassment, loss of consumer.
Calls upon all marketers to satisfy the
needs and wants of their target
markets in ways that preserve and
enhance the well-being of consumers
and society as a whole, while also
fulfilling the profit objectives of their
organizations.

The Societal Marketing Concept: Utopia or
Reality
• A serious deterrent to more widespread
implementation of the societal marketing
concept is the short-term orientation of most
business executives and corporate boards in
their drive to quickly increase market share
and profits.
• Some unethical marketers exploit human
vulnerabilities in the marketplace and engage
in other unethical marketing practices to
achieve corporate business objectives.
McDonald’s Ignored Consumer’s Interests
and the Societal Marketing Concept.
Perception of a company’s
lack of SR or unethical
marketing strategies
negatively affect consumer
purchase decisions.
The letter accuses
McDonald’s of failing to keep
a promise it made to
eliminate trans fats from its
cooking oil, clearly illustrates
the damage that socially
irresponsible actions can
inflict on a company’s image.
Letter from consumer advocacy group

Copyright © 2015 Pearson Education Dr. S.R.Islam, Professor,JnU Chapter Sixteen Slide Slide 9 of 34
Exploitive Targeting
• Marketing to Children
• Overaggressive Promotion
• Selling Pharmaceuticals directly to
consumers
• The perils of precision targeting
Chapter Sixteen SlideSlide 10 of 34

Copyright © 2015 Pearson Education Dr. S.R.Islam, Professor,JnU
Marketing Foods to Children
• Concern over link with obesity

• Voluntary restrictions to avoid legislation

Consumer Socialization
• Perceptual stage (3-7 years old)

• Analytical stage (7-11 years old)
• Reflective stage (11-16 years old)
Discussion Question:
At what point is it ethical for marketers to
communicate with children? Does it depend
on other factors besides age (e.g.
socioeconomic status; product category)?

Marketing to Children
• Guidelines by Children’s Advertising Review
Unit (CARU)
• Guidelines include:
– No misleading claims about product’s
performance or benefits
– Must not exploit children’s imagination
– Can not create unrealistic expectations
– Products must be shown in safe situation
– No encouragement of inappropriate
behavior
– Avoid ads that
• encourage children to pressure their
parents to buy the products
advertised
• lead children to feel that ownership
of a given product will make them
more accepted by peers 13 13 of 34
Copyright © 2015 Pearson Education Dr. S.R.Islam, Professor,JnU Slide
Promoting Physical Activity

Inspiring Overeating and Irresponsible
Spending
• Cold grocery stores
• Moving displays to
encourage wandering
• Targeting online
shoppers who have
been drinking
• Designing foods that
encourage overeating
• Granting easy credit

Inspiring overeating and Irresponsible
spending
• Recession due in
part to Americans’
rising credit and
easy credit to risky
groups

Packaging to Increase Consumption
• Short, wide glasses • Multiple offerings

• Clear candy jars • Minimal variations in
• Transparent sandwich serving bowl size
wrap • Not tracking
• Visible, aromatic food consumption
• Organized food • Large inventories
presentation • Bundling small
packages

Nutritional Labeling

Pharmaceutical Advertising
• Voluntary restrictions – Direct-to-Consumer

• Two-year moratorium proposed in Senate
• Online search engine complications (risk
information)
• Extending life of favorite products
What are the advantages and disadvantages of
marketing pharmaceuticals directly to
consumers?

Learning Objective 15.3
15.3 To understand ethically questionable

practices such as covert marketing,
manipulative exposure to advertising, and truth-
in advertising issues.

Manipulating Products and Messages
• Context effects, JND

• Covert marketing
• Product placement, advertorials and
infomercials

Context effects, JND
• A crafty marketing strategy, which
is perfectly legal, occurs when
marketers reduce the amount of
products in packaging, but leave
the prices unchanged.
• Marketers do it incase of increase in
raw materials price.
• Marketers recognize that
consumers are much more likely to
notice price increases than small
below the JND reductions in the
packages quantities of food, drinks
and household products.

Covert Marketing
• Also called masked or
stealth marketing
• Messages appear to
be from independent
parties but are
company driven.
• Disagreement as to
whether they violate
FTC guidelines
Chapter Sixteen Slide Slide 23 of 34

Copyright © 2015 Pearson Education Dr. S.R.Islam, Professor,JnU
Discussion Questions
• Do you think covert marketing is wrong?

• Why might others have a different opinion
from you?

False or Misleading Advertising
• Puffery(exaggerated)
• Truth-in-advertising laws
• Deceptive advertising; FTC
guidelines
• Promotional violations in
drug marketing
– Unsubstantiated effectiveness
claims
– Omitted risk information
– Unsubstantiated superiority claims
Privacy Issues
• Using Wi-Fi signals from smartphones to track
consumers in stores
• E-Scores: undisclosed digital calculations of
people’s buying power and value as consumers
• FTC “do not track” mechanism
• Regulation of data brokers
• Opt-in for monitoring

Advocating Beneficial Conduct

Cause-Related Marketing
Firms contribute a portion of the
revenues they receive from selling
certain products to causes that are
socially desirable and supported by
the American public.

Consumer Ethics
• Consumer returns
• Software piracy
Do you think creative consumer practices that
avoid baggage fees and charge airlines falsely
are ethical? Why or why not?

Ch-08: Culture and the Consumer Behavior
Culture is an extremely broad and encompassing term. It includes what we have learned, our history,
values, morals, customs, art, and habits. Cultural forces are not static; they change and adapt just as
marketing adapts to its environment. Man passes culture along, so it is inculcated. Consumer behavior is
influenced very much by the culture to which he belongs. Therefore, marketing takes place within a
given culture, and many of the differences in marketing around the world are essentially cultural
differences.
Introduction:
Culture is the conventionalized behavior pattern of the society. Culture affects consumer behavior
significantly, and, as a result, knowledge of culture, its characteristics, and components are essential for
a marketer to formulate appropriate strategies.
Importance of the cultural study:

The influence of the religious, family, educational, and social system of a society on the behavior of
consumer, and their impacts on marketing, comprise a company’s cultural environment. It would be
difficult to overlook the importance of culture as a motivator of consumer behavior. While it is easy to
state the general significance of culture, it is more difficult to define the term in a way which will
receive general acceptance, and, consequently, it is hard to be precise about the impacts of culture on
consumer behavior. Cultural dimensions among countries vary even more than economic dimensions so
that it becomes difficult at best to find general patterns. For example, even though the economic
characteristics of Western European countries are similar to each other, their cultural dimensions make
for very different eating habits.
Certainly, culture is the most pervasive external force on an individual’s consumption behavior. How
people work and play, what they eat, how they eat, how and what they buy are all affected by the
cultural traditions and socially developed modes of behavior. Even slight change in them can
significantly alter how and what people buy. For example, in US, in early 1980s, some religious groups
begun a movement to boycott products promoted on certain highly popular but “immoral” (sex-oriented)
television shows. Over 6000 churches joined the movement, and some companies agreed to cease their
advertising on those shows.1
Marketing executives must consider the importance of cultural setting within which consumer behavior
takes place. The attitudes people posses, the values they hold dear, the lifestyles they enjoy, and the
interpersonal behavioral patterns they adopt are the outcomes of the cultural setting. These forces affect
the marketplace by influencing other external forces. They undoubtedly have a bearing on the standards
of government, the state of the economy, and the intensity of competition and technological
development. You should keep in mind that cultures vary from country to country and as a result
consumption patterns among people vary.
Ch-08/CB/SRI 1
Failure to carefully consider cultural differences is often responsible for monumental marketing failures.
In fact, it has been convincingly argued that the root cause of most international business problems is the
self-reference criteria, i.e., the unconscious reference to one’s own cultural values. Marketing across
cultural boundaries is a challenging and difficult task. You know that consumer behavior always takes
place within a specific environment, and an individual’s culture provides the most general environment
in which his consumption behavior takes place.
Cultural influences have broad effects on buying behavior because they permeate our daily lives. Our
culture determines what we wear and eat, where we reside and travel. It broadly affects how we buy and
use products, and it influences our satisfaction from them. For example, in our urban culture, the
problem of time scarcity is increasing because of the increase in the number of females who work and
because of the current emphasis we place on physical and mental self-development. Many people do
time saving shopping and buy time saving products such as instant noodles to cope with the scarcity of
time.
Since culture, to some degree, determines how products are purchased and used, it in turn affects the
development, promotion, distribution, and pricing of products.
From the premise given above, it is now quite evident to you that the study of culture of the market
where you operate or plan to operate is vital for your success and even the existence. An understanding
of culture is important to you as a marketing manager because it always provides approved specific goal
objects for any generalized human want.
Definition and meaning of culture:

Culture is an extremely broad and encompassing term which includes what we have learned, our history,
values, morals, customs, art, and habits. Here in this section we shall mention quite a few definitions of
culture and analyze those to form a clear picture about culture that may help us to formulate appropriate
marketing strategies.
A culture is “the complex of values, ideas, attitudes, and other meaningful symbols created by people to
shape human behavior and the artifacts of that behavior as they are transmitted from one generation to
the next.”2
This definition highlights three important attributes of an individual’s culture. First, it is ‘created by
people’, evolving over time as a result of the human activities and passed on to the succeeding
generations.
Second, the impact of cultural influence is both intangible and tangible. People’s basic attitudes and
values are a direct result of their cultural environment. Beliefs in freedoms of speech and choice,
heterosexuality, and God are products of human action. Additionally, people leave physical evidence of
their culture, through art and craftwork, buildings, furniture, laws, and food.
Third, the cultural environment evolves over time, and it is most often evolves over lengthy periods.
Changes in women’s roles in the home and in business, and the outward desire for leisure time have
Ch-08/CB/SRI 2
come about quite slowly. Other changes, however, occur quicker. Clothing styles for example, come and
go rather hastily.
E. B. Taylor defined culture as that complex whole which includes knowledge, belief, art, law, morals,
customs, and any other capabilities and habits acquired by man as a member of a society. Culture is thus
composed of common habits and patterns of living of people in daily activities and of the common
interest in entertainment, sports, news, and even advertising.
Referring Ralph Linton, Berkman and Gilson in their book ‘Consumer Behavior - Concepts and
Strategies’, defined culture as ‘patterns of learned behavior which are held in common and transmitted
by the members of any given society.’ Culture, thus, consists of those behaviors of a society, which are
well established and accepted by the members of that society. These patterns are followed by the
majority. For example, majority of Bangladeshi women wears ‘sharee’, and it is an established pattern of
behavior in this culture. There are exceptions to this pattern as well. Some women, for example, may
wear T-shirts and trousers, but this will not be considered as a pattern, since it is not found in the
majority’s behavior. Let us now explain this definition at some length.
If we explain the above definition, we can identify three aspects of a given culture. They are: culture is a
pattern of behavior; culture is learned; and, culture is transmitted from one generation to the next.
Culture is a pattern of behavior: culture refers basically to the style of behavior. This style is found to
be present in the behaviors of the majority of peo0ple living in a particular culture. This pattern varies
from culture to culture and as a result consumption vary among countries. The pattern of behavior that
you will see in Bangladeshi culture definitely will not be seen in other cultures.
Culture is learned: The second important aspect relating to culture is that, we learn it through
experiences and interactions. The aspects of culture are not found in an individual right from his birth.
He rather learns those from others in the society as he follows, observes, and interacts with them. A
Bangladeshi child, for example, if grows in a European country among the Europeans, will definitely not
learn Bangladeshi cultural aspects but, the European cultural aspects which will influence his behavior.
It clearly indicates that culture is learned, not present from birth.
Culture is transmitted from one generation to the next: What we have in our culture in terms of
values, ideas, attitudes, symbols, artifacts or other, we are likely to conform to those. We not only follow
the patterns of our cultures but also teach them to our next generation so that they are guided by them.
This process of transmitting the cultural elements from one generation to the next is known as
‘Enculturation’.
Characteristics of culture:
To be successful in a particular culture, it is imperative for a marketer to understand the characteristics
of culture. Some of the characteristics were discussed earlier while explaining different definitions of
culture. Here we shall highlight on those and others not mentioned earlier. The characteristics may be
named:
Ch-08/CB/SRI 3
(a) the invisible hand of culture; (b) culture satisfies needs; (c) culture is learned; (d) culture is shared;
and, (e) culture is dynamic. Let us now have a look at them in turn.
(a) The invisible hand of culture: Culture is like the air we breathe. It is so obvious that we cannot
escape from it. It pervades our lives so much so that we cannot actively feel its impact. It affects every
sphere of our life very secretly but strongly so frequently that we do not have the opportunity to even
think of its (culture) impact. Its impact is like the secrete chemical that turns a caterpillar into a butterfly
with all the beauty that was the caterpillar’s potential.
(b) Culture satisfies needs: Individuals are having different types of needs. They have need for food,
clothing, shelter, medicine, love and belongingness, esteem and status, achievement, and a number of
physical, social, and psychological needs.. For example, the hunger need is satisfied with different food
items by people of different cultures. A man in Bali, Indonesia, is likely to satisfy this need eating
mango, whereas a Bangladeshi will take rice to meet this need.
(c) Culture is learned: It is mentioned earlier in the definition of culture that, it (culture) is learned
rather programmed genetically. As an individual grows in a particular environment he learns about
different aspects of culture through his interaction with other members in the society. One learns cultural
values, norms, beliefs etc., formally, informally, or technically. Formal learning occurs when senior
members teach different cultural aspects to juniors; informal learning occurs as a result of the child’s
imitation of behaviors of others such as elder brothers, sisters, parents or heroes and heroines as well as
celebrities; technical learning occurs as a result of formal education received from different institutions.
All of these three types of learning affect our consumption behaviors which marketers should take into
active cooperation in their planning and should try to reinforce them.
(d) Culture is shared: Cultural values, beliefs, norms, etc., are shared by the majority of the members
of a given culture because they gratify our needs. As they are transmitted by the members of a society to
their next generation, they are practiced by the majority. They are also taught to us by our educational
and religious institutions. There could be some exceptions who may not share the core beliefs, values,
and attitudes of their culture, but majority are highly likely to hold them. For example, majority of
Bangladeshi Muslim males go to mosque on Fridays to say the ‘Jumma’ prayer and it is considered as a
social activity.
(e) Culture is dynamic: No culture is static. Cultural swings take place. As the environment is
changing, culture has to be changed in order to survive. Therefore, culture is a dynamic concept, rather a
static one. As cultural norms change, they bring changes in our consumption and life-styles. In order to
be successful in the dynamic culture, marketers should carefully and continuously monitor the changes
and modify their products accordingly for them (products) to be accepted by the consumers.
Components culture:
If you study a culture, whether modern or backward, you will be able to identify three important
components in it. The components may be named as (i) cognitive component; (ii) material component;
and, (iii) normative component. In other words, culture of a particular society is composed of three
distinct elements or components. Let us now have a brief discussion on them.
(i) Cognitive component: The basic component of any culture is one relating to people’s knowledge
about the creation and existence of the universe. This aspect is based on either people’s observation or
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on certain factual evidence that they have. An individual of a backward culture believes in gods,
superstitions, and some other objects as a part of his culture’s cognitive aspect. But, in a technologically
advanced society the cognitive aspect is based on scientific experiments and their applications. Because
of refinement of knowledge through systematic testing and observation, the cognitive component of an
advanced society’s culture is quite distinct from that of a primitive one.
(ii) Material component: Another important component of any given culture is the material feature of
the society. It consists of all the tangible things that human beings make, use, and give value to the
material component varies from culture to culture as the cognitive component. It is based on the
technological state that the society has achieved and understood looking at the artifacts of the society.
The artifacts include type of housing where people live, furniture they use, and other material goods they
possess. Since it is tied to the level of technological advancement of the society, the material features of
cultures are found to very diverse as the level of technological achievements vary.
(iii) Normative component: The other important component of a culture is the normative component.
The normative component is composed of the values and norms of the society which guides and
regulates behavior. In other words, it comprises the values, beliefs, and rules by which a society directs
people’s interactions. Understanding culture means understanding its values. Values are shared
standards of what is acceptable and unacceptable, good and bad, desirable and undesirable.
Among the values the culture holds, some are core or central values, while others are peripheral values.
Core values are the deeply held enduring beliefs that guide our actions, judgements, and specific
behaviors and that support our efforts to realize important aims.
Although not as deeply embedded or as fundamental as central values, our peripheral values reflect our
central values. If you value your health, you may value regular exercise and a low-salt, low-cholesterol
diet. You may also abstain from smoking cigarettes and drinking alcoholic beverages.
Marketers should give a deep look at each of the three components of culture discussed above as they
determine the consumption of goods and services by people of a particular culture to a great extent.
Failure to understand them may become a grave concern for the marketers.
Cultural influences on consumption:

The culture into which consumers are born, provides a good many ready-made solutions to problems
growing out of the geographic, biologic, and social environment in which they live. These ready-made
solutions are provided in the form of cultural patterns relating to ideology, role definitions, and
socialization procedures of the society in which they live. These cultural patterns are transmitted to
individuals through such social institutions as the family, educational institutions, religious institutions,
and social class, by means of language, parents’ attitudes and behavior, reading, and public school
instructions. As a result, the cultural patterns that consumers learn influence their ideas and values, the
roles they play, the way in which they carry those roles out, and the manner in which their needs and
desires are handled.
Culture provides patterns that guide individuals in the satisfaction of their biological needs. Thus, the
child learns the diet pattern of his culture, modesty and hygiene of elimination, proper conduct of sexual
affairs, patterns of propriety in dress. The requirement for food, for example, is met in every society. But
the specific foods that an individual regards as acceptable are determined by his culture. The Chinese,
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for instance, dislike milk and milk products, while dairy products make up an important part of the
English diet.
Culture not only patterns the way in which people satisfy their needs but also creates desires that exert a
strong influence upon their buying behavior. The learned desires of certain consumers for cigarettes, for
example, may be just as compelling as their requirements for food. So, too, the desire for a late-model
television set, which may be learned from culture, may occupy a position high in the list of products
wanted by a newly married couple.
POST-READING EVALUATION
DESCRIPTIVE QUESTIONS:
Q.1. Discuss the importance of cultural study to a marketer
Define culture and explain its meaning
Q.2. Identify and explain the characteristics of culture. What are the components of a culture. Explain
them with examples.
Useful concepts of Cultural Analysis
Introduction:
Cultural dimensions among countries vary even more than economic dimensions so that it becomes
difficult at best to find general patterns. “Analyzing a total, unified cultural system means identifying its
values and norms, observing how these normative aspects are translated into group and individual
behavior and examining the material aspects of the culture.”3 The symbols people use to communicate,
the way they view other cultures, and the changes that take place vary very greatly among cultures.
Marketers should have a sound idea on these three aspects - cultural symbolism, cultural relativism, and
cultural change - for taking appropriate marketing action. Failure to carefully consider the above aspects
may cause irrecoverable loss and even the demise of the firm. The connotations associated with body
motions, greetings, colors, numbers, shapes, sizes, and above everything else, symbols vary
considerably across cultures. A few examples are shown in the table next page. Marketers may identify
these variables through a number of techniques one of which is a ‘participant-observer’ technique as
developed by Malinowski. Here the observer enters a culture, observes people and asks question and
thus identifies different aspects of it (culture).
Anthropology, you know contributes an understanding of the cultural setting in which purchase
behaviors take place. Number of anthropological studies were undertaken in the past to identify different
aspects of cultures that are to do with consumption behavior. Quite a few number of concepts were
identified from these studies of which three are notable influencing consumer behavior. They are:
‘cultural symbolism’, ‘cultural relativism’, and ‘cultural change’. We shall now discuss them in turn in
the following section.
3
Berkman H. W. and Gilson C. C., Consumer Behavior - Concepts and Strategies, Dickenson Publishing Company, Inc.
1978, p.89
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Cultural Symbolism:
A symbol may be defined as the sign or representation of something moral or intellectual by the images
or properties of natural things, as “the lion is the symbol of courage”. It may also be defined as a figure
or character standing for a letter or word. The symbol makes people different from other animals,
because people create and use symbols, not other animals. Obviously, it is important for marketers to be
aware of the symbolic nature of their products and packaging. Though one naturally wants to avoid
unintended symbolic messages, if used correctly symbolism can enhance product appeal. For example,
several brands of cosmetics for young women are packaged in cylindrical containers which are
obviously phallic symbols. But, question comes, ‘how do you know the meanings of symbols used by
people?’ To get the answer to this, you should first know the types of symbols used by people, and
second, find out their inherent meanings as they are used.
Different studies on cultures identified two types of symbols used by people in communicating among
them. They are: (a) referential symbols; and, (b) expressive symbols.
Referential symbols are those that mean or indicate specific objects. The word ‘pen’, for example,
means an item which is used for writing purpose. It is easy for the marketers to understand the meaning
of referential symbols, and as a result they do not face much problem with regards to the referential
symbols.
Expressive symbols are those that may carry different meaning to people of different cultures. They
need to be interpreted from the particular cultural context since they carry connotative or implied
meaning. The meaning of the same expressive symbol may be interpreted differently by people of
different cultures. Thus, their meanings are not limited. An expressive symbol, such as showing thumb,
may mean an appreciation to an American, whereas, the same symbol may carry a negative connotation
to a Bangladeshi. Marketers thus face lot of problems with regards to the expressive symbols.
Misinterpretation of an expressive symbol may cause a monumental loss to a marketer. If a US citizen,
for example, finds a baby wearing a blue outfit, he would most likely assume the child to be a male. The
same assumption may not be true to other parts of the world. In Holland, blue for example, connotes
femininity. There could be many other examples of different interpretations of the same symbol by the
people of different cultures. Red is considered as an unlucky sign in Chad, Nigeria, and Germany. The
same color is considered positive in Denmark, Rumania, and Argentina. Yellow flowers are the signs of
death in Mexico and infidelity in France. The number seven is considered unlucky in Singapore, Kenya,
and Ghana. It is considered as a lucky number in India, Morocco, Nicaragua and here in Bangladesh.
Triangle is a negative sign in Hong Kong, Korea, and Taiwan and positive in Columbia.
Failure to recognize the meaning assigned to a symbol can cause serious problems. For example, a
leading US golf ball manufacturer was initially disappointed in its attempts to penetrate the Japanese
market. Its mistake was packaging its golf balls in sets of four, which is a symbol of death in Japan.
Another manufacturer of water recreation products lost heavily in Malaysia because the company’s
predominant color, green, was associated with the jungle and illness in Malaysia. Since the meaning of
symbols vary from culture to culture, marketers must take them into active consideration when doing
business in other cultures.
Cultural Relativism:
Another important concept revealed from anthropological studies regarding culture is ‘ethnocentrism’
which gave birth to the concept of cultural relativism. One of the basic human tendencies is to consider
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their cultures as superior to others. This tendency is found to be present both in advanced as well as
technologically backward countries. In Bangladesh, for example, we consider ourselves as friendly,
warm, and hospitable. According to us, Western people are heartless. Again, a Western people consider
us dirty and backward. We conclude this way because we measure other cultures by our own cultural
context. This tendency to view and judge other cultures by the standards and context of one’s own
culture is known as ‘ethnocentrism’. If an individual views other cultures based on this concept, he will
always think that the way he does things are right and standard, where the way people of other cultures
do things and behave is either substandard or wrong. If a marketer adopts his marketing strategies for
other cultures guided by the concept of ethnocentrism his chances of becoming successful there is slim.
The reason is that the way he will develop, price, distribute, and promote the product will not match
with the standards of those other cultures. From this experience, researchers have developed the concept
of cultural relativism. Under the cultural relativism concept, marketers view and judge other cultures by
the standards of those cultures not by their (marketers) own cultural standards. Thus, cultural relativism
is the elementary proposition of judging a particular culture and behavior of people of that culture in the
social and cultural context of the culture in question. Marketers, if want to be successful in other
cultures, should study consumer behavior following the concept of cultural relativism.
Cultural Change:
Cultural values and norms undergo changes. Changes are occurring in both core and secondary beliefs
and values. All of the changes as well as absence of change, have important implications for marketing
practice as they change consumer behavior. Even in a traditional culture like ours, lot of changes has
taken place over last few decades having profound impact on our consumption and life styles.
Change is an evolutionary process, which can be accelerated by number of factors. They are: (a)
technological changes; (b) conflicts between existing values; (c) exposure to another culture’s values;
and (d) dramatic events. The marketing executive must analyze the changes occurring in the culture in
order to see how they have shaped the marketplace. Unquestionably, these changes create many new
market opportunities and destroy existing ones.
(a) Technological Changes: Technology is changing everyday bringing new products to the marketplace.
The availability of these new products has radically changed our lifestyles and consumption pattern.
Automation and information processing technology, for example, have transformed the very nature of
work. Medical technology has provided control over the birth of children. Development in food
processing technology has made available number of food items throughout the year, which was
unthinkable before such development in technology. Other technological developments have made
available products like mineral water, instant food items, cable television channels and so on. All of
these brought significant changes in our consumption patterns.
(b) Conflicts between Existing Values: Values are also changing among cultures. For example, one of
the core values of our culture is parent oriented family and family dominated by males. With
modernization and increased urbanization, this value is eroding. Mass media have provided extensive
exposure to alternative value systems and lifestyles. This creates conflict with our traditional value
system. Those who will hold the traditional one will behave quite differently from those accepting the
value change in terms of their consumption behavior.
(c) Exposure to Another Culture’s Values: People’s consumption behavior also changes because of
the exposure to other cultures. This is known as cultural diffusion. Cultural diffusion basically means the
changes that take place in people’s consumption and lifestyles as their cultures are exposed to others.
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Number of reasons may be identified causing cultural diffusion. Some of the notable reasons are bi-
lateral/multilateral agreements, trade arrangements, exchange and visits of cultural, sports, academic and
other groups, migration, development of jet and satellite communications, and the popularity of sky
culture. These give opportunity to people to get to know each other’s cultures and also adopting some of
their cultural traits in terms of consumption. Cultural diffusion brings significant changes in people’s
purchasing habits. The popularity of jeans in Bangladesh in early 1980s, habit of eating out, changes in
women’s fashion, and method of urban entertainment are all examples of the impact of cultural
diffusion. Marketers should keep close eyes on the cultural diffusion and consequent changes in
consumption to adapt their marketing strategies accordingly.
(d) Dramatic Events: Events or happenings that are not anticipated may be termed as dramatic events.
Happening of such events in a particular culture has impacts on marketing decisions as they affect
consumer behavior. Dramatic events may alter the existing way of life in terms of art, sports, fashion,
and so on. When Bangladesh Cricket Team, for example, won ICC Trophy, it created as cricket craze
among the youth of this country resulting in huge demand of items used in cricket.
It is an important, though difficult, task for marketing managers to be aware of the extent and nature of
cultural changes as they relate to consumer behavior. After realizing the changes, they should make
appropriate adaptations in their products, prices, distribution and promotion for ensuring their long-term
existence in the marketplace.
Cross-cultural perspective
Marketing, now-a-days no more considered as a local, regional, or national phenomenon. It is rather

considered a multinational or international phenomenon. The product that you produce here in
Bangladesh, may have market overseas, well beyond your national boundary. In order to be successful
in foreign market(s), your marketing strategies should be based on a multinational perspective.
Why the knowledge of other cultures is required for a marketer?

A person is born into a society and is socialized in its ways. His interactions with others, education, and
exposure to information all take place within the societal framework. These influence his consumption
behavior in turn.
Differences in cultures exist because the problem solving needs of various societies have not been the
same. Each society has developed institutional arrangements and behavioral prescriptions that seemed
appropriate for dealing with its particular problems. These solutions then were handed down to
successive generations and were given whatever additional transcendent explanations or justifications
seemed to enhance their effectiveness. The problems of people living in a dry and unfertile land, for
example, are in large measure different from those of people living in a temperate and fertile
environment.
Not only will solutions to problems of survival differ, but so will related values and ways of looking at
events. The former people might well choose to lead a nomadic life. They should become
knowledgeable about geography and skilled in finding water. Obedience to tribal edict might well
evolve as a generalized response to needs to keep the tribe together, especially throughout long journeys.
Authoritarian bonds may extend down to the family level in an effort to minimize individual deviance.
Ch-08/CB/SRI 9
On the otherhand, people living in a fertile land will probably tend to build their way of life around the
permanence of their homes, the seasonality of their agriculture, and other related factors. Not only will
their skills and interests be quite different, but their interpersonal relationships and codes of conduct
should reflect the greater autonomy and independence of their way of life. Members of such a culture
are apt to take a pragmatic view of life built around such notions as rugged individualism. Religious
ideals should tend to extol an ethic built around hard work and self-determination.
There appears to be systematic differences among cultures, for example, in attitudes toward time. The
American is apt to be impatient and sometimes vulnerable to delays and ‘ever-so-slow’ progress. But,
the attitude toward time here in Bangladesh is different. Delays here do not bother us much since we are
used to delays. Some cultures equate time with importance, so that anything important must be led up to
slowly and carefully, even a business contract, which might be negotiated in a matter of hours in such
cultures.
Each culture has evolved its own rules regarding the space around another person and his possessions. In
the US, for example, excessive touching of others, even good friends, during conversation is not
common. But in our country, it is a common practice. In Bangladesh, India, and Pakistan, an
Englishman might be regarded as cold and un-courteous, unless he adapted to the greater physical
closeness of interpersonal relationships in these cultures.
From the above description it is evident that international marketers find that people in other regions of
the world have different attitudes, values, and needs, which in turn call for different methods of doing
business, as well as different types of marketing mixes. Some international marketers fail because they
do not or cannot adjust to cultural differences. In order to adjust your marketing strategies with other
cultures, you need a sound knowledge of those cultures in terms of every aspect. The idea of cross-
cultural study has emerged from the need to know other cultures.
What Cross-Cultural study means?

Cross-cultural study or research is a technique applied for comparing cultures on the basis of similarities
and differences as well as studying different segments of a total culture. Engel, Blackwell, and Miniard
in their book ‘Consumer Behavior’, defines cross-cultural study as the systematic comparison of
similarities and differences in the material and behavioral aspects of cultures. One could go on, of
course, and cite an almost endless list of cultural differences among societies. Cultural anthropologists
have termed the observable and typical behavior patterns of a people their ‘explicit culture’. The study
of the underlying determinants of these observed regularities (the modal needs, goals, values, and beliefs
of a society) has been termed the study of ‘implicit culture’. Research on implicit culture leads, by its
very nature, to a more configurational and integrated analysis of observed statistical regularities within a
society.
“Cross-cultural research methodology involves standard research techniques adapted to the special
requirements of different languages, structural characteristics of the societies and values of the
investigator. Cross-cultural studies in anthropology often focus upon social organization, child rearing,
belief systems, and similar topics. In marketing, the elements studied are more likely to be distribution
systems, beliefs about sales and pricing activities, and communications channels”4.
4
Engel J.F, Blackwell R.D., and Miniard P.W., Consumer Behavior, Fifth Edition, The Dryden Press, USA, 1986,P. 397.
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The cross-cultural researcher must go beyond the descriptive data often so laboriously assembled, and
search for interrelationships, which he must then account for in terms of common problems and
solutions.
The aim of the researcher is to understand not only the similarities in behavior across a society, but also the differences
within a society. Societies may be thought of as having a common core culture of general set of attitudes and orientations
shared by the majority of members. As a society continues to develop, greater differentiation in meeting its needs is a
consequence. Systems of positions and roles evolve to meet the objectives of the continuously diversifying society and its
members.
How the knowledge of cross-cultural perspective may help a multinational

marketer?
Cross-cultural study is an extremely important activity for a multinational marketer. There are a great
many cross-cultural variations in consumer behavior that are of particular interest to the marketer
operating in more than one culture. They are particularly obvious when one looks at cultural values or
symbolic communications across cultures.
As differences in verbal communication system across cultures are found such as the symbolic
communications, multinational marketers must also take that into active consideration for success in
other cultures.
Understanding cross-cultures help marketers to understand values of other cultures which influences
their purchase behavior. This understanding helps marketers making proper adaptations in their product,
pricing, distribution, and promotion policies. No matter how outstanding the product a marketer
produces, it cannot satisfy the needs of the entire market. Thus markets must be segmented. To segment
markets effectively, marketers also require an understanding of other cultures. Values also determine
whether people of a particular culture will be influenced by others in the society. Knowing this aspect of
a culture helps marketers identifying reference groups that will have bearing on consumer behavior.
Thus it helps marketers to tailor their promotional programs on specific reference group.
People’s views toward their environment also vary. These views influence their consumption to a great
extent. Some view nature as finite and it should be protected. This led them toward seeking
environmentally friendly products. Failure to understand people’s views toward environment may
influence marketers developing products that are likely to be rejected by them. Cross-cultural research
helps them identifying views of a specific target market toward the environment thus developing
products that will sell well in that culture. People’s views toward themselves also vary requiring
different types of products by them. They (views) determine their approaches and objectives toward
their lives. Because of the variation in people’s views toward themselves, people of a particular society
are too much materialistic and try to consume whatever possible. Knowing people’s view of themselves,
again, helps marketers to devise appropriate strategies and this is possible through a cross-cultural
analysis.
Finally, cross-cultural analysis helps marketers in understanding meanings of time, space, friendship,
agreements, things, symbols, and etiquette across cultures and segments of a total culture, and they can
make appropriate adaptations in their product, packaging, pricing, distribution, and communication
strategies to be successful in overseas.
How to adapt your marketing decisions with other cultures?
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To be successful in foreign markets, a marketer must adapt his marketing decisions with that of the new
culture. Lot of companies made mistakes and incurred huge loss in overseas markets by following
marketing strategies successful in their own culture. Multinational marketers should take lessons from
the tactical mistakes made by other marketers following the same strategy found successful in the home
country. Therefore, adaptations are required with the foreign culture in terms of all marketing decisions.
To make appropriate adaptations, number of questions must be asked by a multinational marketer to
himself and answers must be sought. The right questions and their appropriate answers help marketers to
adapt with the new culture. The questions are: (i) is the geographic area homogeneous or heterogeneous
with respect to culture?; (ii) how does the cultural setting influence or determine product and service
needs?; (iii) what needs can this product or a version of it fill in this culture or how could it be adapted
to do so?; (iv) can enough of the group(s) needing the product afford the product?; (v) what values or
patterns of values are relevant to the purchase and use of this product?; (vi) what is the distribution,
political and legal structure concerning the product?; and, (vii) in what ways can we communicate about
this product?.
Seeking answers to the above few questions may help marketers to thing of adapting their marketing
policies in an overseas culture. Let us now examine each of them in turn.
(i) Is the geographic area homogeneous or heterogeneous with respect to culture? Marketers must
find out whether there is any distinct subcultures in the geographic area under consideration. All people
in the same culture may not represent same consumption and life-style patterns. In UK, for example,
Indian British, American British, Somalian British, and so on, may display different consumption
behavior. Therefore, a standardized marketing policy will not be effective in a particular culture.
(ii) How does the cultural setting influence or determine product and service needs? Same need, for
example, is not satisfied by the same product, in all cultures. Transport need, for example, is satisfied by
different modes in different cultures. A multinational marketer should determine the particular cultural
setting under consideration that determines the needs of different products and services. Knowing this
will help him to decide which product(s) to be offered for sale in the new culture.
(iii) What needs can this product or a version of it fill in this culture or how could it be adapted to
do so? Most firms examine a new market with an existing product or product technology in mind.
Marketers should know exactly, what particular need might be satisfied by his product in the new
culture. He should also try to find out what changes may be brought in his product to make it more
acceptable in the new culture. He must be aware of the needs that exist in a culture, how they are
presently met, and how his product can better meet one or more needs of the customers in the new
culture. Bicycles, for example, a meet the recreational needs in the developed countries, where it meets
basic transportation needs in underdeveloped countries.
(iv) Can enough of the group(s) needing the product afford the product? In this stage, a
multinational marketer tries to know how many in the new culture requires his product, as well as the
percentage of people who can afford to buy his product. Whether the credit purchase facilities will help
more people to buy the product need also to be identified. Knowing the answers to this will help him
decide on the price and credit policies.
(v) What values or patterns of values are relevant to the purchase and use of this product? Since
value system of a particular society influences consumption in a society, marketers should also know
whether the existing values held by people will encourage the purchase and use of his product. If not, he
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can decide, whether any thing can be done to make the product consistent with the values held by people
of the new culture.
(vi) What is the distribution, political and legal structure concerning the product? The same pattern
of distribution of products is not followed in every culture. In Bangladesh, for example, consumer goods
are distributed following very extensive distribution channels as people opt for it. The same channel may
not work in other countries for the same type of product. In Western countries, for example, people
prefer to buy their necessities from department stores or super markets, as they do not want to be
disturbed at home. If a multinational marketer can identify the preferred channels of distribution, it will
help him decide accordingly.
(vii) In what ways can we communicate about this product? No matter, how outstanding your
product is, how attractive the price is, and how well its distribution channel is designed, it will not sell
unless target customers are informed of the availability of the product. Different channels of
communications are found to be effective in different cultures.
In Bangladesh, for example, radio is found to be the most effective medium of communication, where in
other cultures it may prove quite ineffective. To decide on the selection of communication medium, a
multinational marketer should know which medium is going to be effective in the culture where he plans
to enter with his product and decide accordingly.
It is imperative for a multinational marketer to know the answers to the above mentioned questions
before he launches his product in a new culture. Knowing the answers to them will help him make
necessary changes in his product, price, distribution, and communication strategies. The answers may be
sought by studying the cognitive, material, and normative components of a culture.
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Ch-08/CB/SRI 14

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MKT 4704

Copyright, Dr. Shaikh Rafiqul Islam, JnU, 2020

Prof. Dr. S.R.Islam,JnU

• Professor Dr. Shaikh Rafiqul Islam

Prof. Dr. S.R.Islam,JnU

• Out-Come based education

Prof. Dr. S.R.Islam,JnU

Prof. Dr. S.R.Islam,JnU

Prof. Dr. S.R.Islam,JnU

• Consumer behavior involves the:

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• Consumer behavior can be divided

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Bagozzi and Zaltman defines consumer

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• The behavior that consumers display in

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– What are the products

– Why they buy them?

– How they buy them?

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– When they buy them?

– Where they buy them?

– How often they buy them?

– How is the decision process of the consumer?

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– Planning and implementing marketing strategies.

Consumer versus buyer: Buyers are those who

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• The ultimate consumer versus

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• Consuming versus purchasing: Purchasing refers to

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Production Sales Marketing

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• From the 1850s to the late

Production Sales Marketing

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• From the 1930s to the mid 1950s

Production Sales Marketing

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• 1950s to current - Focus on the customer!

Production Sales Marketing

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Expectation Performance Expectation Performance

If performance is lower than expectations, satisfaction is low.