External Influences on

Consumer Behavior-i

Module-5

Social Class

Social Class

• The division of members of a society into a hierarchy of

distinct status classes, so that members of each class have

either higher or lower status than members of other classes.

Social Class and Social Status

• Status is frequently thought of as the relative rankings of members of each social class

wealth

power

Prestige

Social Comparison Theory states that individuals compare their own possessions against those of others to

determine their relative social standing

Dynamic of Status Consumption

• The process by which consumers actively increase

their social standing through conspicuous

consumption or possessions

Features of Social Class

• Persons within given social class tend to behave more alike.

• Social Class is hierarchical

• Social class is not measured by a single variable but is measured as

weighted function of one’s occupation, income, wealth, education,

status, prestige, etc.

• Social class is continuous rather than concrete, with individuals able

to move into a higher class into a lower class.

• Social class restrict behavior and interaction between the classes is

limited.

• Social class is homogeneous.

Social Class Categories

• Upper Class

• Upper-Middle class

• Middle –middle class

• Lower middle class

• Lower class

Five Social Class Categories-india

• Very Rich (215000 and above)

• Consuming Class ( (45,000 -215,000)

• Climbers ( 25,000-45,000)

• Aspirants (16,000-25,000)

• Destitutes ( Rs 16,000 and Less)

Social Class Measurement

• Subjective Measures: individuals are asked to estimate their own social-class positions

• Reputational Measures: informants make judgments concerning the social-class membership of others within the community

• Objective Measures: individuals answer specific socioeconomic questions and then are categorized according to answer

Single-variable indexes: Occupation, Education, Income

Composite-variable indexes: Index of Status Characteristics, Socioeconomic Status Score

Social Class Mobility

• Upward mobility

• Downward mobility

• Rags to riches?

Geodemographic Clusters

• A composite segmentation strategy that uses both

geographic variables (zip codes, neighborhoods) and

demographic variables (e.g., income, occupation) to

identify target markets.

Social Stratification

• Social Stratification is the division of members of a society

into a hierarchy of distinct status classes so that members

of each class have relatively the same status and members

of all other classes have either more or less.

• A system by which a society ranks categories of people in

a hierarchy based on their access to scarce resources.

• Social stratification refers to the process whereby

people are systematically ranked based on their access to

valued resources.

Social Class Role and Status

differentiation and Evaluation

• This social class division will be such that member of a

particular class will enjoy more or less the same

community status and prestige.

• A specific social class is usually defined by the amount of

status that members of a specific class possesses in relation

to members of other classes.

• Each social class has got its own lifestyle and consumer

behavior pattern.

Social Class Role and Status

differentiation and Evaluation

• In India also we have a stratified society.

• This can be seen from the unequal distribution of income and wealth

among people.

• There are certain symbolic identifications by which individuals

accorded higher status are distinguished form those occupying

lower status. Theses status symbol are :

Title and designations

Pay and perquisites

Physical facilities

Social Class Role and Status

differentiation and Evaluation

• Thus each society has some distinctive classes

identified on the basis of certain characteristic

features and frame of references.

• Each social class has its own buying behavior

pattern and a particular life style is adopted by its

members.

Factors Responsible for Socil

Stratification

• Sociologists have identified some prominent and important factors

determining social class stratification in the society, which is are as

follows:

Authority

Income

Education

Occupation and Achievement

Factors Responsible for Socil

Stratification

Sl .No Status, Value &

Prestige Enjoyed

Social Class Factors Affecting Social Class

1 Low Lower Class Lower Level occupation with no

authority, less income, and no

education or minimum education.

2 Medium Middle Class Graduates or PG’s, executives

managers of companies with

authority, drawing handsome salary

of which certain amount can be

saved and invested .

3 High Higher Class Authoritative person, drawing

handsome salary, very often

professionally qualified, working in

a very senior position or a person

born in rich family, with good

background of education.

Culture

• Culture is a society's personality.

• Sum total of learned beliefs, values and customs that serve

to direct the consumer behavior of members of a particular

society.

• Each individuals perceives the world through his own

cultural laws.

Characteristics of Culture

• Culture is invented

• Culture is learnt

• Culture is shared

• Culture satisfies needs

• Cultures are similar but different

• Culture is not static.

Factors Affecting Culture

• Religion

• Politics

• Education

• Language

• Values

• Beliefs

• Social Organization

• Law

• Technology

• Social roles

• Learning

• Appearance

• Relationships

Role of Customs

• Customs are overt modes of behavior that constitute

culturally approved or acceptable ways of behaving in

specific situations.

• Customs consist of everyday or routine behavior.

• Although beliefs and values are guides for behavior,

customs are usual and acceptable ways of behaving.

Values and Beliefs in Consumer

Behaviour

• Beliefs consist of the very large number of mental or verbal

statements that reflect a person’s particular knowledge

and assessment of something.

• Values also are beliefs, however, values differ from other

beliefs because they must meet the following criteria:

Values and Beliefs in Consumer

Behaviour

• a) They are relatively few in number,

• b) They serve as a guide for culturally appropriate

behavior,

• c) They are enduring or difficult to change,

• d) They are not tied to specific objects or situations, and

• e) They are widely accepted by the members of a society

In a broad sense, both values and beliefs are mental images

that affect a wide range of specific attitudes that, in turn,

influence the way a person is likely to respond in a specific

situation.

Measurement of culture

• Content Analysis

• Consumer Fieldwork

• Value Measurement Instruments

1. Content Analysis

• A method for systematically analyzing the content of verbal and/or

pictorial communication. The method is frequently used to

determine prevailing social values of a society.

• Content Analysis- conclusion about a society or specific aspects of a

society or a comparison of two or more societies some times can be

drawn from examining the content of particular message.

• Content analysis.. .focuses on the content of verbal written and

pictorial communication

2. Consumer Fieldwork

• Select a small group of people from a particular society and

carefully observe their behavior.

• Based on such observations researchers draw conclusions about the

values, beliefs, and customs of the society

• Field Observation

Natural setting

Subject unaware

Focus on observation of behavior

• Participant Observation

Value Measurement Survey

Instruments

• Data collection instruments called value instruments used

by researchers to ask people how they feel about such

basic personal and social concepts as freedom, comfort,

national security and peace

Value Measurement Survey

Instruments

Rokeach Value Survey (RVS)

• A self-administered inventory consisting of eighteen “terminal” values (i.e., personal goals) and eighteen “instrumental” values (i.e., ways of reaching personal goals)

List of Values (LOV)

• A value measurement instrument that asks consumers to identify their two most important values from a nine-value list that is based on the terminal values of the Rokeach Value Survey

Values and Lifestyles (VALS)

• A value measurement based on two categories: self-definition and resources

Subculture

• A distinct cultural group that exists as an identifiable

segment within a larger, more complex society.

Subculture Division and

Consumption Pattern in india

• The individuals of a particular subculture may show

different consumption patterns related to their life style,

financial ability, food preferences, reading habits, purchase

of specific brands in a particular product category, purchase

time store patronage.

• India presents a picture of varying styles and consumption

pattern.

• Each state and religion has got its own traditional style of

dressing, wearing ornaments, food preferences etc.

• There is also a lot of differences observed in the consumption

pattern related to rural-urban subculture division.

Subculture Division and

Consumption Pattern in india

• Another visible subculture variation is the social class

distinction based on economic status.

• Thus, understanding of behavior pattern of people based

on subculture variations will enable the marketers to work

out marketing programmes suitable to each subculture

category of consumers.

Types of Sub culture

CATEGORIES EXAMPLES

Nationality Greek, Italian, Russian, india

Religion Catholic, Hindu, Muslim

Geographic region Eastern, Southern, Southwestern

Race African American, Asian,

Age Teenagers, elderly

Gender Female, male

Occupation Bus driver, cook, scientist

Social class Lower, middle, upper

Nationality Subculture

• Stronger preference for well-established brands

• Prefer to shop at smaller stores

• Youths are more fashion conscious

Religious Subcultures

• 200+ organized religious groups in the U.S.

• 5000+ religious group in India.

• Consumer behavior symbolically and

ritualistically associated with the celebration of

religious holidays.

• Many regional differences exist in consumption

behavior

Major Age Subcultures

Generation Y

Generation X

Baby Boomers

Seniors

Issues in Understanding

Gender(SEX) as a Subculture

• Sex Roles and Consumer Behavior

Masculine vs. Feminine Traits

• Consumer Products and Sex Roles

• Women as depicted in Media

• The Working Woman

Segmentation Issues

Shopping Patterns

Cross Cultural Consumer

Analysis

• The effort to determine to what extent the

consumers of two or more nations are similar or

different.

Issues in Cross-Cultural

Consumer Analysis

• Similarities and differences among people The greater the similarity between nations, the more

feasible to use relatively similar marketing strategies

Marketers often speak to the same “types” of consumers

globally

• The growing global middle class Growing in Asia (India), South America, and Eastern

Europe

Marketers should focus on these markets

Issues in Cross-Cultural

Consumer Analysis

• The global teen market There has been growth in an affluent global teenage and

young adult market.

They appear to have similar interests, desires, and

consumption behavior no matter where they live

• Acculturation Marketers must learn everything that is relevant about the

usage of their product and product categories in foreign

countries

Research Issues in Cross-

Cultural Analysis

FACTORS EXAMPLES

Differences in language and meaning

Words or concepts may not mean the same in

two different countries.

Differences in market segmentation

opportunities

The income, social class, age, and sex of target

customers may differ dramatically in two

different countries.

Differences in consumption patterns

Two countries may differ substantially in the

level of consumption or use of products or

services.

Differences in the perceived benefits of

products and services

Two nations may use or consume the same

product in very different ways.

Research Issues in Cross-

Cultural Analysis

FACTORS EXAMPLES

Differences in the criteria for evaluating

products and services

The benefits sought from a service may differ

from country to country.

Differences in economic and social conditions

and family structure

The “style” of family decision making may

vary significantly from country to country.

Differences in marketing research and

conditions

The types and quality of retail outlets and

direct-mail lists may vary greatly among

countries.

Differences in marketing research

possibilities

The availability of professional consumer

researchers may vary considerably from

country to country.

Cross Cultural Marketing

Analysis

• Companies are going for cross cultural marketing or marketing in a

big way.

• The reasons behind such a move are

Pushed by poor opportunities in the domestic market

Pulled by better and superior opportunities abroad.

“ Cross cultural Marketing is the effort to determine to what extent the

consumers of two or more nations are similar or different. This will

facilitate marketers to understand the psychological, social and

cultural aspects of foreign consumers they wish to target, so as to

design effective marketing strategies for each of the specific

national markets involved”

Cross Cultural Marketing

Problems in India

• Problems related to product selection

• Problems related promotion or marketing

communication

• Problems related to pricing

• Problems related to selection of distribution

channels

Strategies Cross Cultural

Marketing Problems

• The basic areas where research is to be done by the company in cross

cultural marketing are

Language and meaning

Differences in market segmentation opportunities

Differences in the criteria for evaluating products and services.

Differences in consumption pattern and perceived benefits of

products and services

Differences in the economic and cultural condition and fanily

structure.

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