11 culture and social class

Upload: rahuljha11088

Post on 10-Apr-2018

217 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/8/2019 11 Culture and Social Class

    1/32

    11/14/2010 Prof. U.M. Amin, CMS, JMI 1

    Advanced Consumer BehaviorMM-3201

  • 8/8/2019 11 Culture and Social Class

    2/32

    11/14/2010 Prof. U.M. Amin, CMS, JMI 2

    Environmental influenceson consumer behavior

  • 8/8/2019 11 Culture and Social Class

    3/32

    11/14/2010 Prof. U.M. Amin, CMS, JMI 3

    Culture and Social class

  • 8/8/2019 11 Culture and Social Class

    4/32

    11/14/2010 Prof. U.M. Amin, CMS, JMI 4

    Chapter concepts:

    Defining culture

    Characteristics influenced by culture

    Characteristics of culture

    Components of culture

    Variation in cultural values Cultural variation in non-verbal communication

    Marketing implications of culture

    Culture and Social class

  • 8/8/2019 11 Culture and Social Class

    5/32

    11/14/2010 Prof. U.M. Amin, CMS, JMI 5

    Social class

    How is social standing derived and

    how it influences behavior?

    Social class system

    Marketing implications of social classes

    Culture and Social class

  • 8/8/2019 11 Culture and Social Class

    6/32

    11/14/2010 Prof. U.M. Amin, CMS, JMI 6

    Culture:

    Culture is the distinct way of life of a group of people and theircomplete design for living.

    It is that complex whole that includes knowledge, belief, art, law,morals, customs and any other capabilities and habits acquired

    by humans as members of society.

    Culture influences patterns of living, consumption and decisionmaking by individuals.

    Culture and Social class

  • 8/8/2019 11 Culture and Social Class

    7/32

    11/14/2010 Prof. U.M. Amin, CMS, JMI 7

    Culture refers to a set of values, ideas, artifacts and othermeaningful symbols that help individuals communicate, interpret,

    and evaluate as members of society.

    Culture includes both abstract and material elements.

    Abstract elements include values, ideas, attitudes, personalitytypes and summary constructs like religion or politics.

    Material elements include buildings, books, computers, tools andother specific objects.

    Culture and Social class

  • 8/8/2019 11 Culture and Social Class

    8/32

    11/14/2010 Prof. U.M. Amin, CMS, JMI 8

    Culture is defined as a sum total of learned beliefs, values andcustoms that serve to direct the consumer behavior of membersof a particular society.

    Belief and values refer to the accumulated feelings and prioritiesthat individuals have about things and possessions.

    Customs are overt modes of behavior that constitute culturallyapproved or acceptable ways of behaving in specific situations.

    Therefore, understanding of various cultures of a society helpsmarketers predict consumer acceptance of their products.

    Culture and Social class

  • 8/8/2019 11 Culture and Social Class

    9/32

    11/14/2010 Prof. U.M. Amin, CMS, JMI 9

    Some of the characteristics influenced by culture are:

    Sense of self and space

    Communication and language Dress and appearances Food and feeding habits Time and time consciousness Relationships (family, Organizations etc.)

    Values and norms Beliefs and attitudes Mental processes and learning Work habits and practices

    Culture and Social class

  • 8/8/2019 11 Culture and Social Class

    10/32

    11/14/2010 Prof. U.M. Amin, CMS, JMI 10

    Characteristics of Culture:

    Culture is invented by three independent systems:

    i) Ideological system, mental system consisting of ideas, beliefsand values etc.

    ii) Technological system, consists of skills & techniques toproduce.

    iii) Organizational system (Family and social class), coordinatesbehavior.

    Culture is learned. It begins early in life and is learnt throughgenerations.

    Culture and Social class

  • 8/8/2019 11 Culture and Social Class

    11/32

    11/14/2010 Prof. U.M. Amin, CMS, JMI 11

    Culture is socially shared by members of the society.

    Culture is similar yet different. Athletics, language, music, ritualsare observed but are different.

    Culture is integrated and organized.

    Culture is acquired. It can be acquired from family & region etc.

    Culture forms a boundary within which an individual thinks andacts.

    Culture and Social class

  • 8/8/2019 11 Culture and Social Class

    12/32

    11/14/2010 Prof. U.M. Amin, CMS, JMI 12

    Culture can be divided into two components:

    Culture

    External material cultureArt, music, clothing & housing

    Internal mental cultureIdeas, knowledge & concepts

    Normative componentsValues, conduct & norms

    that regulate behavior

    Cognitive componentsIdeas, knowledge, belief of

    God & after life

    Culture and Social class

  • 8/8/2019 11 Culture and Social Class

    13/32

    11/14/2010 Prof. U.M. Amin, CMS, JMI 13

    Variation in cultural values

    Environment oriented values Self oriented valuesOther oriented values

    Objectives/approachesto life, society finds

    desirable

    Societies view ofRelationship with

    environment

    Societal view of

    Relationshipbetween people

    ConsumptionPurchase

    Communications

    Culture and Social class

  • 8/8/2019 11 Culture and Social Class

    14/32

    11/14/2010 Prof. U.M. Amin, CMS, JMI 14

    Other oriented values show relationship between individuals and

    society. The relationship influences marketing practices. It givesrise to the following:

    Individual / collective: Whether individualism is valued morethan collective activity?

    Masculine / Feminine: Whether society is male or femaledominant or balanced?

    Competition / cooperation: Whether competition leads tosuccess or is it achieved by forming alliances with others?

    Culture and Social class

  • 8/8/2019 11 Culture and Social Class

    15/32

    11/14/2010 Prof. U.M. Amin, CMS, JMI 15

    Youth / Age: Are important roles assigned to younger or older

    members of the society?

    Environmental oriented values include:

    Cleanliness: If a culture lays stress on cleanliness, there ispotential for sale of soaps, deodorants, washing powder,

    vacuum cleaners, and insecticides. Performance / status: A status oriented society cares for higher

    standards of living and chooses quality products, establishedbrand names and high priced products.

    Culture and Social class

  • 8/8/2019 11 Culture and Social Class

    16/32

    11/14/2010 Prof. U.M. Amin, CMS, JMI 16

    Tradition/change: Traditional societies stick to old products,resist innovation. In upwardly mobile societies, consumers lookfor new products, new ad themes etc.

    Risk taking/security: An individual who is in a secure positionand takes a risk can be called venturesome or foolhardy. Itdepends on culture prevailing in the society. Entrepreneurial

    societies have new product development, ad themes and newchannels of distribution.

    Problem solving/fatalist: Optimistic societies have problemsolving attitude. Pessimistic are inactive and depend on fate.

    Culture and Social class

  • 8/8/2019 11 Culture and Social Class

    17/32

    11/14/2010 Prof. U.M. Amin, CMS, JMI 17

    Marketing implication involves addressing customer complaintsproactively.

    Self oriented values include:

    Active/passive: Whether a physically active approach to life isvalued more than a less active orientation.

    Material/Non material: In many societies, money is more

    important while in others things like comfort, leisure andrelationship get precedence.

    Terminal materialism: It refers to requisition of materialism forthe sake of owning rather than for use. Example, acquiring artobjects.

    Culture and Social class

  • 8/8/2019 11 Culture and Social Class

    18/32

    11/14/2010 Prof. U.M. Amin, CMS, JMI 18

    Hard work/leisure: This has marketing implication on labor

    saving products and instant foods. Postponed gratification/immediate gratification: In some

    societies individuals tend to sacrifice the present for the futurewhile in others they live only for the day.

    Humor/serious: Should one take life lightly and laugh it off oncertain issues or take everything seriously. Advertising, sellingtechniques and promotion may revolve around these things andthe way the appeal for a product is to be made in variouscultures.

    Culture and Social class

  • 8/8/2019 11 Culture and Social Class

    19/32

    11/14/2010 Prof. U.M. Amin, CMS, JMI 19

    Cultural variation in Non-verbal communications

    Each culture assigns a meaning to non-verbal signs used by it.

    Variables in non-verbal communication are:

    Use of time Use of space

    FriendshipAgreements Things Symbols and colors Etiquette

    Culture and Social class

  • 8/8/2019 11 Culture and Social Class

    20/32

    11/14/2010 Prof. U.M. Amin, CMS, JMI 20

    Marketing implications:

    Cultural values are not fixed or static but keep changing. Culturalchange may be due to increased craving for fun, enjoyments andexcitement. This opens opportunities for travel, fun oriented,entertainment & leisure oriented products.

    Other factor leading to cultural change may be paucity of time.People want to save time on travel, cooking, shopping and onrepairs of items. This leads to marketing opportunities forproducts and services like food centers, convenience foods,cooking aids, telemarketing and E-business.

    Culture and Social class

  • 8/8/2019 11 Culture and Social Class

    21/32

    11/14/2010 Prof. U.M. Amin, CMS, JMI 21

    The urge to spend more time at home, also known as cocooning,

    has given rise to purchasing of products like exercise machine,owning of computers and DVD players etc.

    Another cultural change involves consumers wanting to live amore natural and healthier life by using natural products. Theseleads to rejection of synthetic products.

    These cultural changes prompt the marketer to rethink hismarketing mix strategies.

    Culture and Social class

  • 8/8/2019 11 Culture and Social Class

    22/32

    11/14/2010 Prof. U.M. Amin, CMS, JMI 22

    Social Class

    It refers to a hierarchical division of a society intorelatively distinct and homogeneous groups with respect to

    attitude, values and life style etc.

    Social class is a relatively a permanent and homogeneousdivisions in a society which differ in wealth, education,possession, values, beliefs, attitudes, friendship and manners ofspeaking.

    Status difference also reflects on prestige, power and privilege.

    The concept of social class involves families rather than theindividuals.

    Culture and Social class

  • 8/8/2019 11 Culture and Social Class

    23/32

    11/14/2010 Prof. U.M. Amin, CMS, JMI 23

    Social standing: How is it derived and influences behavior?

    Socio-economic factors Social standing Unique behavior

    Occupation

    Education

    Ownership

    Income

    Upper class

    Middle class

    Working class

    Lower class

    Preferences

    Purchase

    Consumption

    Communication

    Culture and Social class

  • 8/8/2019 11 Culture and Social Class

    24/32

    11/14/2010 Prof. U.M. Amin, CMS, JMI 24

    From Status point of view Social class can also beCategorized as:

    Upper-Upper

    Lower Upper

    Upper-Middle

    Lower-Middle

    Upper-Lower Lower-Lower

    These classes may not be permanent and thus difficult to measure.

    Culture and Social class

  • 8/8/2019 11 Culture and Social Class

    25/32

    11/14/2010 Prof. U.M. Amin, CMS, JMI 25

    Each social class is unique in terms of pattern of purchase,

    education, occupation and recreation etc.

    Social classes meet the following five criterion:

    1. Bounded: Bound by certain tacit restrictions that include orexclude certain individuals, places or objects.

    2. Ordered: Social classes have hierarchy in terms of income,prestige and status.

    Culture and Social class

  • 8/8/2019 11 Culture and Social Class

    26/32

    11/14/2010 Prof. U.M. Amin, CMS, JMI 26

    3. Mutually exclusive: The individual belongs to one class and

    behaves accordingly. However, movement from one class toanother is possible with time.

    4. Exhaustive: Signifies that every member of a social class mustfit into some class and be identified with it.

    5. Influential: There must be behavioral differences betweenclasses and they are expected to vary in behavior.

    Culture and Social class

  • 8/8/2019 11 Culture and Social Class

    27/32

    11/14/2010 Prof. U.M. Amin, CMS, JMI 27

    Social Class System

    Upper class

    Middle class

    Working class

    Lower class

    Elite of the society

    White collarMiddle class

    Affluent workingclass

    Blue collar workers

    Poor low class

    These are identified by marketersLow percentage of population

    Concentration of populationin the middle class

    Working class and lower classConstitute major percentage

    of population

    Culture and Social class

  • 8/8/2019 11 Culture and Social Class

    28/32

    11/14/2010 Prof. U.M. Amin, CMS, JMI 28

    Marketing strategy and social classes:

    Segmentation is done on the basis of social class.

    In designing marketing strategy, following process is followed:

    A. The marketer relates the status of the group to the product.

    B. Data is collected from the targeted social strata.C. Positions the product according to the social status.D. Develops a proper marketing mix.

    Culture and Social class

  • 8/8/2019 11 Culture and Social Class

    29/32

    11/14/2010 Prof. U.M. Amin, CMS, JMI 29

    Consumers associate brands of products and services with specificsocial classes.

    Socioeconomic profile helps in the development of a comprehensivemarketing program to match the preferences and behavior of themarket target.

    Marketers put enormous effort in positioning a product into a socialclass segment by understanding the characteristics and attributes ofsocial class.

    Some of these characteristics are- occupation, personalperformance, interactions, possessions, value orientations and classconsciousness.

    Culture and Social class

  • 8/8/2019 11 Culture and Social Class

    30/32

    11/14/2010 Prof. U.M. Amin, CMS, JMI 30

    Recap:

    Defining culture Characteristics influenced by culture

    Characteristics of culture

    Components of culture

    Variation in cultural values

    Cultural variation in non-verbal communication

    Marketing implications of culture

    Culture and Social class

  • 8/8/2019 11 Culture and Social Class

    31/32

    11/14/2010 Prof. U.M. Amin, CMS, JMI 31

    Social class

    How is social standing derived andhow it influences behavior?

    Social class system

    Marketing implications of social classes

    Culture and Social class

  • 8/8/2019 11 Culture and Social Class

    32/32

    11/14/2010 Prof. U.M. Amin, CMS, JMI 32

    Culture and Social class