CULTURAL AND SOCIAL

FACTORS IN CONSUMBER
BEHAVIOUR
 CULTURE
Cultural factors comprise of set of values and ideologies of a particular community
or group of individuals. It is the culture of an individual which decides the way he/she
behaves. In simpler words, culture is nothing but values of an individual. What an
individual learns from his parents and relatives as a child becomes his culture.

Culture is complex whole that includes knowledge, belief, art, morals, law, custom,
and any other capabilities and habits acquired by man as a member of society.
The distinctive way of life of a group of people, their complete design for living.
 Manifestations of culture
• National Character: Distinguish one national group from another.
• Differences in subcultures such as blacks, Jews, and Hispanics.
• The silent language of gesture, posture, food and drink preferences and other
nonverbal clues to behavior.
• The significance of symbols in a society.
• Taboos, or prohibitions in a culture, relating to various things such as the use of a
given color, phrase or symbol.
• Ritualized activities in which people participate at home, work or play, both as
individuals and as members of a group.
 Characteristics of Culture
• Culture is Invented: People invented their culture
• an ideological system – consists of ideas, beliefs, values, and ways of reasoning that human
beings learn to accept in defining what is desirable and undesirable.
• a technological system – consists of the skills, crafts, and arts that enable humans to produce
materials goods derived from the natural environment
• An organizational system (such as the family system and social class) that makes it possible for
humans to coordinate their behavior effectively with the actions of others.

• Culture is learned: Culture is not innate or instinctive, but is learned beginning early
in life and is charged with a good deal of emotion.

• Culture is Socially shared: Culture is a group phenomenon, shared by human beings

in organized societies and kept relatively uniform by social pressure.
 Characteristics of Culture
• Culture are similar but different: All cultures exhibit certain similarities. Ex. Athletic
sports, bodily adornment, a calendar, cooking, dancing, education, family, gestures,
government, housing, language, law, music, religious ritual, and numerous other
items.
• Culture is Gratifying and Persistent: Culture satisfies basic biological needs as well as
learned needs.
• Culture is Adaptive: Cultures are gradually and continuously changing.
• Culture is Organized and Integrated: A culture “hangs together” i.e., its parts fit
together.
• Culture is Prescriptive: Culture involves ideal standards or patterns of behavior so
that members of society have a common understanding of the right and proper way
to think, feel, and act.
 CULTURAL VALUES
• Individualism : This value is complex and closely interrelated with such things as
freedom, democracy, nationalism and patriotism. It is founded on a belief in the
dignity, worth and goodness of the individual.
• Equality : Everyone has an equal right to life, liberty and the pursuit of happiness,
and an equal opportunity to strive for social and economic rewards.
• Activity : Our culture stresses activity, especially work, as a predominant value. An
individual was expected to work hard, save money, and be thrifty. Thus, work was
conceived as a means of religious discipline.
• Progress and Achievement :
• Efficiency and Practicality :
• Mastery over the Environment :
• Religious and Moral Orientation :
 Implications of Cultural Change for the Marketer
• Product Planning :
• Distribution Channels :
• Promotion :
• Market Segmentation :
 CULTURAL VALUES
• Humanitarianism :
• Youthfulness :
• Materialism :
• Social Interaction and Conformity :
 Cross-cultural understanding of Consumer Behaviour
• Human nature : Evil (Can’t be trusted) – Mixture of good and evil – Good
• People nature relationship : Subjugation to nature – Harmony with nature – Mastery
with nature
• Time : Post oriented – Present Oriented – Future oriented
• Activity : Being – Being in becoming – Doing
• Social relations : Lineal – Collateral – Individualistic
 Sub-culture
• Race :
• Nationality :
• Religion :
 Asian Sub-culture
• Demographic Characteristics :
• Size :
• Location :
• Income and Employment :
• Education :
• Family and Age :
 SOCIAL CLASS
The team “social class” has been defined as a group consisting of a number of
people who have approximately equal positions in a society.
Characteristics of Social Class:
1. Social classes exhibit status: Social class and status are not equivalent concepts
although they do have an important relationship. Status generally refers to one’s
rank in the social system, as perceived by other members of society.
Factors that seem to be important in determining status are : authority over others,
power (political, economic, military), ownership of property, income, consumption
patterns and lifestyle, occupation, education, public service, ancestry and association.
 SOCIAL CLASS
Characteristics of Social Class:
2. Symbols of status: People buy products for what the products mean as well as what they
can do. That is, products and services are seen to have personal and social meanings in
addition to their purely functional purposes.
Marketers should recognize that the use of prestige appeal rests on the following
assumptions:
• The need for prestige or self-esteem is universal.
• Prestige is related to and satisfied by one’s product or service purchase.
• The manifestation and satisfaction of this need vary across cultures.
The effectiveness of a product or service prestige appeal is conditioned on the basis of five
factors
• It is relatively expensive
• It is of high quality
• It is in limited supply
• Not everyone can qualify for it.
 SOCIAL CLASS
Characteristics of Social Class:
2. Social class are Multidimensional : ~, being based on numerous components. They
are not equivalent to, or determined solely by, occupation or income or any one
criterion, however, they may be indicted by, or be related to, one or more of these
measures. It is important for the marketer to realize that some of these variables are
more reliable ‘proxies’ (Substitutes) than others.

3. Social Classes are Hierarchical: Social classes have a vertical order to them, ranging
from high status to low status. They exist as a position on the social scale. Individuals
may be placed within a class on this hierarchy, based on status criteria.

4. Social Classes Restrict Behaviour : Interaction between the classes is limited because
most of us are more comfortable and find reinforcement with those ‘like us’ in terms of
values and behavior patterns.
 SOCIAL CLASS
Characteristics of Social Class:
4. Social Classes are Homogeneous : Social classes may be viewed as homogeneous
divisions of society in which people within a class have similar attitudes, activities,
interests and other behavior patterns.

5. Social classes are Dynamic : Social stratification systems in which people have some
opportunity for upward or downward movement are known as open systems. People in
closed systems have inherited or ascribed status, i.e., they are born into one social level
and are unable to leave it.
 SOCIAL CLASS LIFESTYLES
• Upper – Upper class
• Lower – Upper class
• Upper – Middle class
• Middle class
• Working class
• Upper – Lower class
• Lower – Lower class
 What is a Group?
• Two or more people who interact to
accomplish either individual or mutual
goals
 Reference Group
• A person or group that serves as a point of comparison (or reference)
for an individual in the formation of either general or specific values,
attitudes, or behaviour.
 Reference Group
• A person or group that serves as a point of comparison (or reference)
for an individual in the formation of either general or specific values,
attitudes, or behaviour.
 Types of Reference Groups
• Classified by:
• Membership
• Symbolic
• Extent of interaction
• Direct versus indirect
• Nature of attraction
• Aspirational versus dissociative
• Degree of formality
• Formal versus informal
Types of Reference Group Influence
• Informational Influence
• When a member of reference group provides information
used to make purchase decisions
• Normative Influence
• When we conform to group norms in order to belong to
that group
• Identification Influence
• When we identify with, and internalize, a group’s values
and behaviours
 Factors Encouraging Conformity:
A Reference Group Must ...
• Inform or make the individual aware of a
specific product or brand
• Provide the individual with the opportunity to
compare his or her own thinking with the
attitudes and behaviour of the group
• Influence the individual to adopt attitudes and
behaviour that are consistent with the norms of
the group
• Legitimize the decision to use the same
products as the group
 Selected Consumer-Related
Reference Groups
• Friendship groups
• Shopping groups
• Work groups
• Virtual groups or communities
• Brand communities
• Consumer-action groups
• celebrities
 Reference Groups and Marketing Strategy
• Recognize the extent of reference group influence in a situation
• Identify the most effective type of reference group influence
• Identify possible reference group members to use in promotions
• Attempt to increase reference group influence
 Households

Family Households:
Married couple,
Nuclear family,
Extended family
Households

Non-Family Households:
Unmarried couples,
Friends/ Roommates,
Boarders
 The Typical Household?
• Canada: Nuclear family
• Thailand: Extended family
• USA: Not married, no children
 The Family Life Cycle
• Traditional Family Life Cycle
• Stage I: Bachelorhood
• Stage II: Honeymooners
• Stage III: Parenthood
• Stage IV: Post-parenthood
• Stage V: Dissolution
• Modifications - the Nontraditional FLC
Figure 12-6 Noteworthy Nontraditional
FLC Stages
Alternative FLC Stages Definition/Commentary
Family Households
Childless couples It is increasingly acceptable for married couples to
elect not to have children. Contributing forces are
more career-oriented married women and delayed
marriages.

Couples who marry later in More career-oriented men and women and greater
life (in their late 30s or later) occurrence of couples living together. Likely to have
fewer or even no children.

Couples who have first child Likely to have fewer children. Stress quality lifestyle:
later in life (in their late 30s “Only the best is good enough”
or later)
 Figure 12-6 (continued)
Alternative FLC Stages Definition/Commentary
Family Households
Single parents I High divorce rates (about 50%) contribute to a
portion of single-parent households
Single parents II Young man or woman who has one or more children
out of wedlock.
Single parents III A single person who adopts one or more children.
Extended family Young single-adult children who return home to
avoid the expenses of living alone while establishing
their careers. Divorced daughter or son and
grandchild(ren) return home to parents. Frail elderly
parents who move in with children. Newlyweds
living with in-laws.
 Figure 12-6 (continued)
Alternative FLC Stages Definition/Commentary
Nonfamily Households
Unmarried couples Increased acceptance of heterosexual and
homosexual couples.

Divorced persons (no High divorce rate contributes to dissolution of

children) households before children are born.

Single persons (most are Primarily a result of delaying first marriage; also,
young) men and women who never marry.

Widowed persons (most are Longer life expectancy, especially for women; means
elderly) more over-75 single-person households.
 Dynamics of Husband-Wife
Decision Making
• Husband-Dominated
• Wife-Dominated
• Joint
• Equal
• Syncratic
• Autonomic
• Solitary
• Unilateral
 Consumer Socialization
• The process by which children acquire the skills, knowledge, and
attitudes necessary to function as consumers.
 Other Functions of the Family
• Economic well-being
• Emotional support
• Suitable family lifestyles
Family and Marketing Strategy
• Use the FLC for segmentation and positioning
• Recognize the diverse consumption roles within
the family
• Understand and use the dynamics of husband-wife
decision making
• Understand and use the consumer socialization
role played by the family
• Recognize the changing nature of Canadian
families.
 COMMUNICATION AND ITS
INFLUENCES ON CONSUMER
BEHAVIOUR