Consumer Behavior: Subject Code -

MK0002

Unit 3:Environmental & Group

influences on Consumer Behavior

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What we will learn in this unit

Know the environmental factors & groups

affecting Consumer Behavior.

Understand different environmental factors like

cultures, subcultures, social class & lifestyle.

Explain the influence of different groups like

reference groups & family on Consumer Behaviour

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Culture-Definition

The sum total of

learned beliefs, values
& customs that serve
to direct the consumer
behaviour of members
of a particular society
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Culture

Enculturatio
n& Elements of Culture
acculturation

Norms Values Rituals Myths

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Culture

Characteristics of Culture

Multiple
Culture Culture makes
Culture is Culture is Culture is cultures are
regulates living more
learnt adaptive environmental nested
society efficient
hierarchically

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 Culture Is Learnt
Issues

• Enculturation • Enculturation
and acculturation – The learning of one’s
• Language and own culture
• Acculturation
symbols
– The learning of a
• Ritual new or foreign
• Sharing of culture
culture
 Culture Is Learnt
Issues

• Enculturation • Without a common

and acculturation language shared
• Language and meaning could not exist
symbols • Marketers must choose
• Ritual appropriate symbols in
• Sharing of advertising
culture • Marketers can use
“known” symbols for
 Culture Is Learnt
Issues

• Enculturation • A ritual is a type of

and acculturation symbolic activity
• Language and consisting of a series of
symbols steps
• Ritual • Rituals extend over the
• Sharing of human life cycle
culture • Marketers realize that
rituals often involve
 Culture Is Learnt

Issues
• Enculturation • To be a cultural
and acculturation characteristic, a belief,
• Language and value, or practice must
symbols be shared by a
• Ritual significant portion of
the society
• Sharing of
Culture • Culture is transferred
through family, schools,
Culture
Variations in Cultural
values

Self-oriented values

Environment oriented
values

Other-oriented values

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Dimensions of Cross- Cultural Values
Small vs. Large Power Distance

Individualism vs. collectivism

Masculinity vs. femininity

Uncertainty avoidance

Long vs. short term orientation

Youth/Age

Extended/Limited Family

Tradition/Change
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Dimensions of Cross- Cultural Values

Low/High Context Culture

Problem solving or Fatalistic

Nature & environment

Concept of space

Sensual Gratification / Abstinence

Concept of Time

Hard Work/Leisure

Religious/Secular
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Cultural Variations in Nonverbal communications

Time
Space
Symbols
Friendship
Agreements
Things
Etiquette
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 High
High Power uncertainty Achievement Long-term
Collectivism Distance Avoidance orientation orientation
China Japan China
Mexico Japan
Japan
--- INDIA --- INDIA
Japan USA
France Germany
--- INDIA Japan
--- INDIA
USA Nether
USA France
Germany lands
Germany
--- INDIA
USA
Hong
USA Kong Sweden Russia
Individualism Low Power Low Uncertainty Nurturing Short-term
Distance Avoidance Orientation orientation

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Subcultures

Change in subcultures

Urban vs
Sub cultures in Religious Regional
Rural
India Subcultures Sub cultures
context

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 Regional Subcultures
• Many regional differences exist in
consumption behavior
– Western India?
– Eastern India?
– South?
– North?
 Religious sub-cultures In India
• Hindus 80.5%
• Muslims 13.1%
• Christians 2.31%,
• Buddhists 1.05%,
• Sikhs 1.93%,
• Jains 0.41 %,
• Others 0.76%

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 Marketing implication
• Consumer behavior is directly affected by
religion in terms of products that are
symbolically and ritualistically associated with
the celebration of religious holidays.
Social class

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Factors affecting Social Class

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Factors affecting Social Class

Occupation
Education and
qualifications

Income
Wealth or net
worth
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 Social Class Characteristics

e
nce

tion
bility

l
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om
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Traditional Social Class categories in India

• Brahmins
• Kshatriyas
• Vaishyas
• Shudras
• Untouchables
 Manifestations of Social Class

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 VALS
• Marketing and consulting tool
• Segments consumers based on personality
traits
• Traits assumed to drive consumer behavior
• Applies in all marketing phases
– New product development
– Communications strategy
– Advertising strategy
Influence of Groups on Consumer Behaviour

Institutio Referenc
Social groups
ns e Groups

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Institutions and Groups

•More permanent
Institu groups with pervasive
and universal presence
tions in society

Gro •Two or more

persons sharing a
ups common purpose

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 Classification of Groups

Membership Vs. Symbolic

p
Primary Vs. Secondary
f

Formal Vs. Informal

Choice Vs. Assigned

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Types of Groups

PRIMARY SECONDARY
MEMBERSHIP

• Doctors, Lawyers, Musicians, etc.

• Family
• Work organization
• Religious groups
• Fraternities/sororities
SYMBOLIC
• Distant Relatives
• Political campaign volunteers
• YMCA

• Celebrities
• Fortune 500 companies
• Personal role model • Other artists (for an artist)
• The person one “secretly admires”

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Classification of Groups for Household Customers

TYPE OF INSTITUTIONS/GROUPS
INFORMAL FORMAL

Volunteer groups School

Community Workplace
CHOICE
Friendship groups Fraternities/sororities
Cultural heroes

TYPE OF MEMBERSHIP

Family Religion
Relatives Prison
ASCRIBED OR ASSIGNED
Tribes

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 Reference groups & Consumer Behaviour

ups

ups

ups

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Comparative Reference Groups
Indirect Reference groups
 Factors that affect Reference Group Influence

Information & Experience

Credibility, Attractiveness & Power of the Reference Group

Conspicuousness of the Product

Visual Vs. Verbal

Reference Groups & Consumer Conformity

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Conspicuousness of the Product
Visual Vs. Verbal
Consumer Related Reference Groups
Friendship Groups

Shopping Groups

Work Groups

Virtual Groups or Communities

Virtual World

Brand Community

Consumer Action Groups/Consumer Organisations

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Reference Group Appeals

Celebrity Appeals Testimonial Endorsement Actor Spokesperson

Expert

Common Man

The Executive and Employee Spokesperson

Trade or Spokes-characters

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Celebrity Appeals
Expert
Common Man
The Executive and Employee Spokesperson
Family
Classification of families

Authoritarian Families

Neglectful Families

Democratic Families

Permissive Families

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Family

Intergenerational Influence (IGI)

Forward Influence

Reverse Influence

Family Characteristics which influence IGI

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Market Environment

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Two Broad Classes

Market traits

The physical
characteristics of
surroundings
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Market Traits

Climate
Topograp
hy

Ecology
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 Climate

Climate temperature, wind, humidity, and rainfall

Homeostasis Regulation of internal conditions

Influences consumer Geographical distribution

behaviour
Food consumption Use of clothing Housing patterns of population

Climate also affects business customers’ needs and purchases

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Topography

Topography terrain, altitude, and soil conditions

Consumption varies across different regions of the world

Geographical variation Different patterns of consumption in different regions

Marketing programs according to segmentation based on

Regional marketing geographic differences

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Ecology

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Market Context

Econo
my
Governm
ent policy

Techno
logy
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 Economy

T
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 Government Policy

M
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n i
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y
p
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y

Government
policy

P
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p
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Facilt
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ive
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 Technology

Avenues of impact

Technological
breakthroughs
Increased access to information

Product innovation: new options

More flexibility and control

Significantly change market

behaviours and customer
expectations Customized products and services
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Customer attitude to Technology

excited about new

Technophilia
technology

Technophobia hate new technology

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What we learnt in this unit

Cultures, Subcultures, Social class, & different types of groups

which influence consumer behaviour

Process of Enculturation & acculturation

Elements of Culture & Characteristics of Culture

Subcultures, and change in subcultures & also Sub cultures in India

Social class, factors affecting Social Class, characteristics of Social

Class & manifestations of Social Class
Reference Group Influence, consumer Related Reference Groups,
reference Group Appeals

Family, classification of families & Intergenerational Influence (IGI)

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