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
compare their own possessions against those of others to determine their relative social standing

Social Comparison Theory states that individuals

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 ones 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
1

Status, Value & Prestige Enjoyed

Low

Social Class
Lower Class

Factors Affecting Social Class

Lower Level occupation with no authority, less income, and no education or minimum education. Graduates or PGs, executives managers of companies with authority, drawing handsome salary of which certain amount can be saved and invested . 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.

Medium

Middle Class

High

Higher Class

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 persons 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 ninevalue 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 Nationality Religion Geographic region Race Age Gender Occupation EXAMPLES Greek, Italian, Russian, india Catholic, Hindu, Muslim Eastern, Southern, Southwestern African American, Asian, Teenagers, elderly Female, male 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 CrossCultural Analysis

FACTORS Differences in language and meaning EXAMPLES Words or concepts may not mean the same in two different countries. The income, social class, age, and sex of target customers may differ dramatically in two different countries. Two countries may differ substantially in the level of consumption or use of products or services. Two nations may use or consume the same product in very different ways.

Differences in market segmentation opportunities

Differences in consumption patterns

Differences in the perceived benefits of products and services

Research Issues in CrossCultural Analysis

FACTORS Differences in the criteria for evaluating products and services EXAMPLES The benefits sought from a service may differ from country to country.

Differences in economic and social conditions The style of family decision making may and family structure 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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