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Defining Culture

1) Shared behavior

Systematized way people do things

Avoid confusion

Allow cooperation

Behavior imposed by sanctions, rewards and punishment

2) Collective behavior, beliefs, values, habits, tradition andheritage of a society

3) Sum total of learned beliefs, values and customs that

serve to direct the consumer behavior of members of aparticular society

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Dynamics of Culture

Omnipresent Culture

Satisfies changing need

Culture is learned Enculturation and acculturation

Language and Symbols

Ritual

Culture is a group phenomenon

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Defining Sub-culture

A social group within a national culture that has distinctive patterns ofbehavior and beliefs.

A Culture

Socio-cultural Basis

Nationality

Religion

Social Class

Demographic Basis

Region

Language

Occupation

Age

Sex

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REFERENCE GROUPS IMPACTING

CONSUMER BEHAVIOR

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What Is a Group?

Two or more people who interact to

accomplish either individual or mutual goals

A membership group is one to which a person

either belongs or would qualify for

membership

A symbolic group is one in which an individual

is not likely to receive membership despite

acting like a member

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Defining Reference Group

A group of individuals whom one refers to orwho serves as a point of reference, withregard to formation of behavior, beliefs,attitudes and aspirations

Marketers view reference groups as peoplewho are consulted or who influence anindividuals purchase decisions

INHERITED (FAMILY) CREATED (FRIENDS)

http://www.google.co.in/imgres?imgurl=http://www.fadedyouthblog.com/wp-content/uploads/2009/10/fnp_ew_0028607.jpg&imgrefurl=http://www.jessicaforum.com/viewtopic.php?f=5&t=507&usg=__hSvWduhtuUmzE3VrPCAqQg_lXVI=&h=487&w=480&sz=152&hl=en&start=16&zoom=1&tbnid=Hy-eppHENZUk2M:&tbnh=129&tbnw=127&prev=/images?q=role+of+family&hl=en&gbv=2&tbs=isch:1&itbs=1http://www.google.co.in/imgres?imgurl=http://www.chicagobooth.edu/capideas/mar07/images/1.jpg&imgrefurl=http://www.chicagobooth.edu/capideas/mar07/1.aspx&usg=__VKmy4TFYYUnCj4qi2q9gnr0zkD4=&h=274&w=265&sz=20&hl=en&start=3&zoom=1&tbnid=gq6tKDkLTWla5M:&tbnh=113&tbnw=109&prev=/images?q=role+of+family&hl=en&gbv=2&tbs=isch:1&itbs=1

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Broad Categories of

Reference Groups

Normative ReferenceGroups

Comparative

Reference Groups

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Classification of Reference Group

1) Normative Reference Groups (A group thatinfluences the general values or behaviour ofan individual- a childs normative reference

group is the immediate family)2) Comparative Reference Groups (A group

whose norms serve as a benchmark for highlyspecific or narrowly defined types of behavior- a family whose lifestyle appears to beadmirable )

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Classification of Reference Group

3) Direct Reference Group(personal or direct

interaction with the referents-telephonic or face-

to-face contacts)

4) Indirect Reference Group(no personal or direct

interactioncelebrity)

5) Positive Reference Group(members behavior

or values are attractivecharity)6) Negative Reference Group(whose behavior

serves as a model of what not to dogambling)

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Teens are very

influenced by

indirectreference

groups.

weblink

http://www.lindsay-lohan.org/home.phphttp://www.lindsay-lohan.org/home.php

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Major Consumer Reference Groups

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Copyright 2007 by Prentice Hall

ConsumerSocialization

The process by which

children acquire the

skills, knowledge, and

attitudes necessary to

function as consumers.

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A Simple Model of the

Socialization Process

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Other Functions of the Family

Economic well-being

Emotional support

Suitable family lifestyles

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Copyright 2007 by Prentice Hall

Eight Roles in the Family Decision-Making Process

ROLE DESCRIPTIONInfluencers Family member(s) who provide information to other members about a

product or service

Gatekeepers Family member(s) who control the flow of information about a

product or service into the family

Deciders Family member(s) with the power to determine unilaterally or jointly

whether to shop for, purchase, use, consume, or dispose of a specificproduct or service

Buyers Family member(s) who make the actual purchase of a particular

product or service

Preparers Family member(s) who transform the product into a form suitable for

consumption by other family members

Users Family member(s) who use or consume a particular product or service

Maintainers Family member(s) who service or repair the product so that it will

provide continued satisfaction.

Disposers Family member(s) who initiate or carry out the disposal or

discontinuation of a particular product or service

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Reference Group Influence

Important Consumer Reference Groups

Individual

Customer

Family

Social Class

Aspirational Reference

Groups and Role ModelsOther Culture

Friends

Selected Sub-cultureOwn Culture

Peers

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Important Reference Group and Appeals

Friends

Shopping Group

Work Groups

Virtual Communities

Brand Communities

Consumer-Action Groups

Celebrities

The Expert

The Common Man

The Effective and Employee Spokesperson

Other Reference Groups Appeals

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Selected consumer-related reference

groups

Friendship groupsinformal, unstructured

Shopping groups- food, clothing, time pass

Work groupsat jobs, more than 35 hrs per week,

formal groups

Virtual groups or communitiesinternet, blogs,

social sites

Brand communities

interactive marketing,grouping for the purpose of a specific brand

Consumer action groupsfor the rights of the

consumers

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Social Class

Birds of a feather flock together

Social classa status hierarchy by which groups and

individuals are classified on the basis of esteem

(regard, respect) and prestige (reputation, influencederived from achievements).American Marketing

Association

The different lifestyles of social classes lead to

different benefits being sought

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Characteristics of Social Class

Is hierarchical

Is a natural form of segmentation

Provides a frame of reference for consumerbehaviour

Reflects a persons relative social status

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Social class profiles

1) The Upper-upper class: Small number of well

established families, prominent physicians

and lawyers, accustomed to wealth

2) Lower-Upper class: New wealth, successful

business executives, conspicuous consumers

3) Upper-Middle class: Achieving professionals,

social activities, career-oriented, corporate

managers

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4) Lower-middle class: faithful followers, highly paid

blue-collar workers, achievement oriented

5) Upper-Lower class-Security minded, interested to

enhance enjoyment, largest social class segment

6) Lower-Lower classpoorly educated, unskilled

laborers, day-to-day existence

Social class profiles