Consumer Perception Theory

Merchants aim to increase their sales by determining what drives their customers' purchase
decisions. Consumer perception theory attempts to explain consumer behavior by analyzing
motivations for buying -- or not buying -- particular items. Three areas of consumer perception
theory relate to consumer perception theory: self perception, price perception and perception of a
benefit to quality of life.
Definition
Consumer perception applies the concept of sensory perception to marketing and advertising.
Just as sensory perception relates to how humans perceive and process sensory stimuli
through their five senses, consumer perception pertains to how individuals form opinions
about companies and the merchandise they offer through the purchases they make. Merchants
apply consumer perception theory to determine how their customers perceive them. They also
use consumer perception theory to develop marketing and advertising strategies intended to
retain current customers -- and attract new ones.
Self Perception
Self perception theory attempts to explain how individuals develop an understanding of the
motivations behind their own behavior. Self perception by customers relates to values and
motivations that drive buying behavior -- which is also an important aspect of consumer
perception theory. For instance, a study by researchers at the University of Massachusetts at
Amherst addressed how self perception shaped consumers' buying behavior. The study
considered the question of whether consumers believed their buying decisions had a real
effect on issues such as environmental impact. The researchers concluded that consumers'
self perception was a driving factor in whether or not they placed a priority on socially
conscious purchase and consumption practices. Consumers who viewed themselves as
socially conscious tended to place more weight on issues such as environmental impact when
making buying decisions than consumers who did not hold similar views of themselves.
Price Perception
While mass merchandisers such as Wal-Mart emphasize low prices as an inherent virtue,
upscale merchants attempt to emphasize quality and value for money to appeal to potential
customers. Researchers at the School of Business Administration at LaSalle University and
LeBow College of Business at Drexel University considered several factors, including price
perception -- whether consumers believed they were being charged fair prices -- in
determining whether online shoppers would make repeat purchases through the same website.
The researchers concluded that price perception strongly influenced whether customers were
satisfied with their purchases and whether they would make future purchases. Two factors
that shaped price perception were the perceived quality of the merchandise or service in
question and price comparisons with merchants offering similar merchandise or services.
Benefit Perception
"It's good, and it's good for you." Many consumers are familiar with this phrase frequently
associated with food advertising. Researchers from Marquette University, Louisiana State
University and the University of Arkansas surveyed customers to determine how nutrition
claims associated with food affected their perception of that food's nutritional value. The
researchers found that consumers tend to reject general, unsupported claims of enhanced
nutrition, especially concerning high nutritional value for foods that are traditionally viewed
as unhealthy. The researchers also theorized that consumers would demonstrate a trend
toward applying more scrutiny to nutrition claims and would demand more specific
information about the foods they purchase.

Buyer behaviour: stimulus-response model

A well-developed and tested model of buyer behaviour is known as the stimulus-response
model, which is summarised in the diagram below:
In the above model, marketing and other stimuli enter the customers “black box” and produce
certain responses.
Marketing management must try to work out what goes on the in the mind of the customer –
the “black box”.
The Buyer’s characteristics influence how he or she perceives the stimuli; the decision-
making process determines what buying behaviour is undertaken.
Characteristics that affect customer behaviour
The first stage of understanding buyer behaviour is to focus on the factors that determine he
“buyer characteristics” in the “black box”. These can be summarised as follows:
 Information Acquisition and Processing
To make purchasing decisions, consumers acquire and process information from the web,
friends and neighbours and their own experiences with products. Acquiring information
means that consumer must gather information from various sources based on their need.

Consumer Information Acquisition

Consumers must acquire information before they can process it. The role of information
acquisition in consumer decision making is shown in Figure 7.1

Search for Additional

Information

CONSUMER’S Acquisition of Information is Brand Purchase and

ENVIRONMENT Information Perceived Evaluation Consumption
(1) (External)

Acquisition of
Information Past
(Internal Experience

Retention in
Memory

Consumers must acquire information before they can process it and the information is
acquired from their environment - from advertisement, salespeople, word of mouth
communication with friends and neighbours impartial sources such as Consumer Reports etc.
Consumers uses four different processes for acquiring such external information, with each
process being related to the consumers involvement with the product.

Retention in Memory - from consumptions and past experiences information are retained in
memory which can assist in future information search.

Table 7.1 – Processes for Acquiring External Information

Acquisition Process Type of Involvement

1. Directed ongoing search 1. Enduring Involvement

2. Directed purchase-specific search 2. Situational Involvement, prior knowledge
3. Non-directed purchase-specific search 3. Situational Involvement, little prior
4. Passive Acquisition knowledge
4. Low Involvement
Ongoing Search – Characterize the consumer with enduring involvement in the product. For
example the computer buff who subscribes to computer magazines is aware of a wide variety
of opinion.

Directed Purchase-Specific Search – This type of search is characteristic of the consumer

with situational involvement who collects information when making a purchase decision.
Example a consumer who wants to buy a mini-van might visit the dealers or ask friends who
owns a mini-van.
Non-directed Purchase-Specific Search – This type of search is most often done by a
consumer who needs general information. For example a consumer may need a new
computer but is unsure what kind of computer she is looking for.

Passive Acquisition of Information – The minimal search characterizes the un-involved

consumer. Information is acquired in passing, with little effort on the consumer’s part.
Determinants of Information Search
Several factors encourage consumers to actively acquire more information, whether the
process is active or passive.
1. High Consumer Involvement – The higher the level of involvement, the greater the
amount of information acquired.
2. High Perceived Risk – The higher the perceived risk in purchasing, the greater the
amount of information search. When risks are high, consumers normally search for
more information.
3. Product Uncertainty – The more uncertain the consumer is about brand choice, the
greater the product search.
4. Little product knowledge and experience – Consumers with less knowledge of
these products were more likely to search for more information.
5. Clear Goals – Information search is likely to be greater when consumers have clear
goals.
6. Less Time Pressure – Time pressure to make a decision discourages information
search.
7. High Price – The higher the price, the greater the information search.
8. More Product Difference – Searching for information has a higher pay-off when
substantial differences exist between brands.
9. Cost-effectiveness of Information Search – Another determinant of information
search is its cost factor.

SOURCES OF INFORMATION
Personal Non-Personal
 Salespeople  Media Advertising
 Telemarketing  In-store display
Marketer  Trade Show  Sales Promotions
Controlled  email  Packaging
 Internet Advertising

 Word of Mouth  Publicity

 Professional Advice  Neutral Sources (e.g. Consumer
Non-Marketer  Experience from Consumption Reports)
Controlled  Chat rooms  Infomediaries
 BOTS
BOTS, or Internet robots, are applications designed for simple, repetitive jobs
Amount of Information Search
Despite consumers’ reasons for undertaking a search for information, their amount of
information search for all but the most expensive products in very limited. In subscribing to
principles of cognitive economy, consumers often consider the search for additional
information not worth the time and effort involved.
Limits of Information Acquisition
Some consumer advocates and government agencies assume that consumers should be
supplied with as much information as possible to permit a comparison of brand
alternatives. The same assumption underlies economic theory; Optimal choice requires access
to information on all alternatives.
The realities, however is that consumer rarely seek all of the available information. They find
the cost of search and the complexity of processing just too great to attempt to consider all
 brand alternatives. Therefore, more information is not necessarily better. In fact, too much
information may create information overload; that is confusion in the decision task,
resulting in an ineffective decision.
CONSUMER INFORMATION PROCESSING MODEL
Once information is acquired, consumers must process it. Marketers are interested in
information processing because it determines which information consumers remember and
how this information is used.

Short-term memory which acts as a filter to determine the information consumer stores and
information consumer ignores.
Selective Retention – States that only the most important and relevant information to the
brand decision will be stored in long-term memory.
Involvement and Information Processing

The way consumers’ process information depends largely on their level of involvement with
the product decision.
When consumers are involved in a product, they actively search for information and analyze
it to assess alternative brands effectively. For low-involvement products, consumers are more
likely to receive and process information passively.
Table 7.4 High- vs. Low-Involvement Information Processing
High Involvement Low-Involvement

1. Active Processing 1. Passive Processing

2. Extensive Brand evaluation 2. Minimal Brand Evaluation
3. Additional Information seeking is likely 3. Additional Information seeking is likely
4. Rely more on product information 4. Rely more on past experience

Memory Processing
In both the high – and low – involvement cases, processing information requires that;
1. Information is filtered through short-term memory
2. It is stored in long-term memory
3. It is retrieved for purposes of brand evaluation
Information is filtered through short-term memory
When consumers perceive information, they briefly evaluate it in short-term memory to
determine whether to store it in long-term memory or to filter it out as unimportant or
undesirable information.
Consumers decide whether to retain information or to filter it out by relating it to information
they already have stored in memory. If the information is important they store it.
It is stored in long-term memory
Information in long-term memory is stored as images that reflect our memory of past events
(episodic memory) or as words and sentences that reflect facts and concepts we remember
(semantic memory).
Consumers’ memories of brands are in the form of both words and images. The “Nike” may
evoke other ideas such as “Just Do It” and physical exertion during sports. It may also evoke
images learned from advertising and from past experiences.
It is retrieved for purposes of brand evaluation
Once consumers filter information through short-term memory and store in long-term
memory it is available for retrieval. When retrieving information from long-term memory,
consumers briefly store it in short-term memory and use it to evaluate brands.
Factors Encouraging Retrieval
Activation, Placement and Transfer.
Activate – e.g. “Nike” would activate various nodes associated with the word. (Athletes
wearing Nike sport products.).
Placement – which other nodes consumers will connect the activated node.
Transfer – Retrieve from long-term memory to short-term memory. This information is
important in making decision.
Factors Inhibiting Retrieval
Forgetting, Interference, Inconsistency.
Forgetting – the inability to retrieve information from long-term memory.
Interference – occurs when related information node blocks the recall of the relevant
information.
Inconsistency – the information delivered to the consumer can also inhibit activation or
retrieval of a brand.

BRAND EVALUATION
Information on Brands comes from many sources. As a result consumers need a set of
guidelines or decision rules for evaluating brands. These decision rules are the information-
processing strategies consumers use in evaluating brands;
Consumers use a variety of strategies, depending on;
 the level of involvement with the brand
 the amount of knowledge about the brand
 Information new?
 Information stored in memory?
Evaluative versus Non-evaluative Processing
Evaluative Strategies – require the organization of information about alternative brands.
Non-evaluative Strategies – involve the use of a simple decision rule to avoid the necessity
of evaluating brands.

Category-Based versus Attribute-Specific Processing

Evaluative strategies can be divided into category-based strategies and attribute-specific

strategies.

Category-based strategy – involves evaluation of a brand as a totality rather than on specific

attributes. Such brand evaluation requires development of a schema for the brand so that
consumers can retrieve a set of associations as a whole for long-term memory.
Attribute-specific strategy – requires comparison of each brand alternative on specific
attributes such as quick service, good taste, or nice atmosphere; then consumers decide which
brand to choose.
Compensatory versus Non-compensatory Processing – The use of attributes specific
evaluation.
Compensatory evaluation – Consumers can evaluate brands one at a time across a range of
attributes.
Non-compensatory evaluation – evaluate specific across the range of brands being
considered.
Table 7.5 - Non-compensatory Processing Strategies
NEC Toshiba Compaq IBM
Processing speed 2 7 7 5
Storage Capacity 6 6 4 6
Keyboard/Display 7 5 3 7
Conjunctive Processing
NEC is eliminated because of poor rating on processing speed
Compaq is eliminated because of poor rating on keyboard/display & storage capacity
Select between Toshiba & IBM

Lexicographic Processing
Assume most important attributes are listed in same order as in table above
Toshiba and Compaq are tied for first. Go to next most important attributes and select
Toshiba on this basis

SOCIETAL IMPLICATIONS OF INFORMATION PROCESSING

Consumers have the right to adequate information to give them the capability to make
reasonable decisions. Societal issues emerge in this regard;
1. Should consumers be given more information?
2. Do consumers sometimes use poor strategies to process complex brand information?
Evidence of less efficient information processing among younger and older consumers
particularly on the web.
More of Less Information – Studies have found that for some product categories - more
information increases consumers’ confusion and leads to less efficient choices.
Governments are taking an increasingly activist view that consumers need additional
information. E.g. Medicines, drugs etc…. There are compelling reasons to support this trend.
Reasons being;
1. Consumers use such information and therefore it is important
2. When consumer uses this type of information, they often make more efficient
purchase

Consumer Behavior - Motivation

Needs are the core of the marketing concept. The study of Motivation refers to all the processes that
drives in a person to perceive a need and pursue a definite course of action to fulfill that need.
What are Needs − Every individual has needs that are required to be fulfilled. Primary needs
are food, clothing, shelter and secondary needs are society, culture etc.
What are Wants − Needs are the necessities, but wants are something more in addition to
the needs. For example, food is a need and type of food is our want.
What are Goals − Goals are the objectives that have to be fulfilled. Goals are generic and
product specific in nature. Generic goals are general in nature, whereas product specific goals
are the desires of a specific nature.
Needs and fulfillment are the basis of motivation. Change takes place due to both internal as
well as external factors. Sometimes needs are satisfied and sometimes they are not due to
individual’s personal, social, cultural or financial needs.
Theories of Motivation
Maslow’s Theory of Need Hierarchy
Based on the notion of a universal hierarchy of human needs Dr Abraham Maslow, a clinical
psychologist formulated a widely accepted theory of human motivation. This identifies five
basic levels of human need which rank in order of importance from lower level needs to
higher level needs.
This theory signifies the importance of satisfying the lower level needs before higher level
needs arise. According to this theory, dissatisfaction motivates the consumer.
Following are the levels of human needs −
Maslow’s Need Hierarchy Theory
 Physiological Needs − Food, clothing, air, and shelter are the first level needs. They
are known as the basic necessities or primary needs.
 Safety or Security Needs − Once the first level needs are satisfied, consumers move
to the next level. Physical safety, security, stability and protection are the security
needs.
 Social Needs − After the safety needs are satisfied, consumers expect friendship,
belonging, attachment. They need to maintain themselves in a society and try to be
accepted.
 Esteem Needs − Then comes esteem needs such as self-esteem, status, prestige.
Individuals here in this stage want to rise above the general level as compared to
others to achieve mental satisfaction.
 Self-Actualization − This is the highest stage of the hierarchy. People here, try to
excel in their field and improve their level of achievement. They are known as self-
actualizers.
Motivational Theory and Marketing Strategies
Marketers have to understand the motives of their potential customers to enjoy good sales. A
buyer has several motives and each change with various elements. In such cases the
marketers can readily help their customers by changing their marketing strategy so that the
conflict is resolved. Following are the major conflicts that may arise −
 Approach Conflict − This conflict arises when a consumer has two different choices
of similar products or services. He gives equal importance to them, but is unable to
choose one over the other.
 Approach Avoidance Conflict − This type of conflict happens when the consumer
decides in favor of a product, but is unhappy with a particular feature of the product
and wants to avoid it. Under such circumstances, the marketer may come up with few
modifications in the existing product and make it suitable for the consumer.
The Nature and Role of Motives
The nature of motives
Motive is an inner state that mobilizes bodily energy and directs it in selective fashion toward
goals usually located in the external environment. This definition implies that motives
involve two major components.
1. A mechanism to arouse bodily energy
2. A force that provides direction to that bodily energy.
The role of motives
The role of motives is to arouse and direct the behaviour of consumers. The arousal
component activates bodily energy so that it can be sued for mental and physical activity. In
their directive role, motives have several important functions for guiding behaviour. They
are:
(a) Defining basic strivings
(b) Identifying goal objects
(c) Influencing choice criteria
(d) Directing other influences
Classifying motives
Since the early 1900s many thousands of motive concepts have been suggested to account for
the great diversi8ty of human behaviour. The need to group so many suggestions into a more
manageable set of general categories soon became apparent. A variety of classification
schemes ranging from the simplified to the complex have been proposed.
Simplified Schemes
A number of classification methods are simplified so that they group motives on the basis of
one unique characteristic of interest. Several of particular relevance to understanding
consumers are highlighted as follows.
(1) Physiological versus psychogenic
(2) Conscious versus unconscious
(3) Positive versus negative
A comprehensive scheme
Although the above distinctions provide useful perspective, they are limited because only one
characteristic serves as the basis of classification. A more comprehensive method using four
two-pole motive tendencies has been suggested by McGuire. The relevant distinctions are
cognitive/ affective (mental deliberation versus emotional reactions), preservation/ growth
(maintenance of equilibrium versus self-development), active/passive (self-initiated action
versus reactive tendencies) and internal/ external (achievement of new internal states versus
new relationships with environment). These four means of classification are not intended to
be mutually exclusive. In fact, when used together they provide an interesting basis for
appreciating sixteen major motivational influences on consumer behaviour.
Motive Structuring
Motives do not act on consumers in an arbitrary manner. They fit together in a unified
pattern. This suggests the existence of a priority scheme or structuring mechanism. The
structuring of motives also provides a central theme or organization for the consistence of
influence over time.
Motive Hierarchy
The concept of a hierarchy underlines many schemes offered to explain the structuring of
motive influences. The most influential motive is seen as enjoying the most dominant
position in the hierarchy; the second most influential holds the second most dominant
position and so on through the entire list. To be useful, the hierarchy concept must also help
explain what factors influence the relative ordering of motives.
Maslow’s hierarchy perhaps the most widely known hierarchy was proposed by A. H.
Maslow. His schemes classified motives into five groupings and suggested the degree to
which each would influence behaviour. Maslow proposed that motives could be classified
into five basic categories: physiological, safety, belongingness and love, esteem and self-
actualization. He also suggested that these groupings are arranged in ascending order with
physiological motives occupying the first position on the hierarchy and self-actualization
occupying the last step.
Motive combination
It is convenient to discuss motives separately, as if they influence consumers independently
and one at a time. Actually, they often interact, leading to a combined influence or to
situations in which they conflict and exert opposing influences on behaviour.
Motive linking
Because motives can differ in how specific they are, it is possible for a linking to occur at
various levels of generality. Therefore, achievement of a specific motive can be a means of
approaching a more general motive which is viewed as the goal.
Motive building
 It is very important to realize that a given product can satisfy various motives at the same
approximate level of specific influence. This results in the bundling or combining of
influences on consumers’ decisions.
Motive conflict
Motives can also conflict with each other to affect how consumers interact with the
marketplace. A major contributor to the topic of motive conflict is Kurt Lewin. He viewed
motives as influencing the attracting or repelling forces of goals in the individual’s
environment.
In Lewin’s view, conflict is most likely when motives are of approximately equal strength.
Three principal cases are possible: approach-approach, avoidance-avoidance and approach-
avoidance conflict. Actually, these terms refer to psychological tendencies for attraction or
repulsion, not necessarily actual physical movement.
Motivation Research
The concept of motivation research has been offered as a means of identifying consumers’
true, underlying purchase motives. The term is typically not used to describe just any type of
research on motivational issues. It refers to certain research techniques and to some extent
ways of interpreting information about motivation generated by these techniques. Briefly
stated, the methods involve disguised and indirect techniques in an attempt to probe
consumers’ inner motives without arousing defense mechanisms which can generate
misleading results.
Arousal of Motives:
The arousal of any particular set of needs at a specific moment in time may be caused by
internal stimuli found in the individual’s physiological condition,by emotional or cognitive
processes or by stimuli in outside environment.
• Physiological arousal
• Emotional arousal
• Cognitive arousal
• Environmental arousal

1. Physiological Arousal Bodily needs at any one specific moment in time are based on
the individual physiological condition at the moment. Ex..A drop in blood sugar level
or stomach contractions will trigger awareness of a hunger need. Ex..A decrease in
body temperature will induce shivering,which makes individual aware of the need for
warmth this type of thing, they arouse related needs that cause uncomfortable tensions
until they are satisfied. Ex..Medicine,low fat and diet
2. Emotional Arousal Sometime daydreaming results in the arousal (autistic thinking)
or stimulation of latent needs.People who are board or who are frustrated in trying to
achieve their goals or often engage in daydreaming, in which they imagine themselves
in all sorts of desirable situations. Ex..A young woman who may spend her free time
in internet single chat room.
3. Cognitive arousal Sometime random thoughts can lead to a cognitive awareness of
needs.An advertisement that provides reminders of home might trigger instant
yearning to speak with ones parents.
4. Environment arousal The set of needs an individual experiences at particular time
are often activated by specific cues in the environment.Without these cues the needs
might remain dormant.ex.The 8’o clock news, the sight or smell of bakery goods,fast
food commercials on television, all these may arouse the need for food Ex..New cell
phone model display in the store window.
What is Self-Concept?
The below are some of the major aspects of Self-concept
Self-Concept is Organized
We all have various views about ourselves. We all may think we are kind, calm, patient,
selfish, rude and what not. It doesn’t matter what perception you have about yourself, but the
one perception that facilitates all these insights is organized self concept. When a person
believes in something that matches his self concept he sticks to his view and does not agree to
change the same and even if does, it takes a lot of time.
Self Concept is Learned
It is believed that self concept is learned and no person is born with a self concept. It
develops as and when we grow old. Our self concept is built when we meet people socially
and interact with them. We are the ones who shape or alter our self concept and its quite
natural that we may have a self concept different for ourselves as compared to what people
think about us.
For example − If an individual thinks, he is very generous and helpful, it may not necessarily
be the case with others. Others may see him as a selfish person.
Self Concept is Dynamic
Our self concept in life is not constant and it may change with instances that take place in our
lives. When we face different situations and new challenges in life, our insight towards things
may change. We see and behave according to the things and situations.
Thus, it is observed that self concept is a continuous development where we let go things that
don’t match our self concept and hold on those things that we think are helpful in building
our favorable perception.
Self concept is the composite of ideas, feelings, emotions and attitudes that a person has
about their identity and capabilities.
The self-concept and consumption
2According to psychologists, individuals understand their self-concepts on the basis of
observations of their own behaviours, as well as the reactions of others to these behaviours. If
the self is viewed in terms of what actions are performed by the individual, consumption
behaviours in modern consumer economies should be instrumental in the development and
expression of the self-concept (Csikszentmihalyi and Rochberg-Halton). In the discipline of
consumer behaviour, people are thought to derive their sense of self at least partially from the
goods and services they consume. Through the consumption of the symbols contained in
products, consumers attempt to enhance their self-concepts by using products to
communicate particular personal characteristics to themselves and others. Consumption is
thus argued to operate as an effective means of communicating identity and positioning
oneself relative to others. Not just single products but constellations of products are required
to effectively communicate this information to others (Solomon and Englis).
3Anthropologists recognise that every culture-member is both a source and a subject of
judgements made according to object ownership. They also note the fracturing of social
systems that have traditionally been considered suppliers of self-definition. These systems
include family, religious, and community relationships, and their loss of influence allows
greater individual control over self-concept formation and communication. As societies come
to operate on a larger scale, the growing anonymity and diversification of duties result in
identities being increasingly inferred from the ownership of symbolic possessions, rather than
reliance on personal familiarity. In such an environment, stereotyping according to
consumption is the norm.
4Stereotyping can be seen as a mechanism by which we can select between symbolic options
to construct desirable versions of our selves. Advertising exists to inform us of the range of
products and associated "selves" available, and thus provides a valuable service in our
ongoing efforts to develop appropriate or desirable selves. In this sense the use of objects in
the construction and maintenance of the self-concept is seen as a conscious, controllable
process in which consumers engage to maximise their satisfaction (Ger). Consumers shop for
a self-identity just as they would shop for a consumer good, and there is an assumed
intentionality in their actions that stems from a conscious thought process.
5Another way of interpreting the relationship between the self and consumption is that
communication of the self via consumption is not an optional activity, but one that is
necessary for social survival. And not just one self, but multiple selves must be constructed
and maintained for each of the different roles we play in life (Firat 1995). Some have
suggested that an outcome of this need to exhibit multiple selves may be individuals who are
alienated from themselves due to the discomfort of being unable to identify their own core
selves (Havel; Ogilvy).
6Awareness of the stereotyping activities of others forces consumers into defensive modes of
consumption that are designed to protect them from unwanted judgements. Self-
representation via consumption thus requires planning and organisation, as opposed to being
an optional pastime in which consumers can participate if they so desire. According to some
analysts, this concern with presenting a desired image via consumption is actively
encouraged as it is a source of ongoing consumption (Droge, Calantone, Agrawal, and
Mackoy; Kilbourne, McDonagh, and Prothero). The close relationship between the self and
consumption is seen as a necessary by-product of the need for high levels of consumption in
capitalist markets (Murphy and Miller; Miller).
7Compelled into consumption designed to manage their images to others, consumers are not
free to consume any products in any combinations, as such behaviour is unlikely to achieve
the image outcomes they have been conditioned to desire. In order to communicate the
appropriate self in a given situation, consumers must acquire specific products and consume
them in specific ways. The power of choice of the individual in this scenario is more
perceived than real, and this may leave consumers more susceptible to advertising and other
forms of marketing communications than is currently acknowledged. The media can widely
disseminate versions of social reality that consumers absorb as part of their understanding of
their world (Davis 1997). For example, appropriate consumption patterns for individuals
from different age, gender, and social class categories are specifically communicated in
advertising messages (Holbrook and Hirschman).

Culture and Subculture

Culture is part of the external influences that impact the consumer. That is, culture represents
influences that are imposed on the consumer by other individuals.
The definition of culture offered in one textbook is “That complex whole which includes
knowledge, belief, art, morals, custom, and any other capabilities and habits acquired by man
person as a member of society.” From this definition, we make the following observations:
 Culture, as a “complex whole,” is a system of interdependent components.
 Knowledge and beliefs are important parts. In the U.S., we know and believe that a
person who is skilled and works hard will get ahead. In other countries, it may be
believed that differences in outcome result more from luck. “Chunking,” the name
for China in Chinese, literally means “The Middle Kingdom.” The belief among
ancient Chinese that they were in the center of the universe greatly influenced their
thinking.
 Other issues are relevant. Art, for example, may be reflected in the rather arbitrary
practice of wearing ties in some countries and wearing turbans in others. Morality
may be exhibited in the view in the United States that one should not be naked in
public. In Japan, on the other hand, groups of men and women may take steam baths
together without perceived as improper. On the other extreme, women in some Arab
countries are not even allowed to reveal their faces. Notice, by the way, that what at
least some countries view as moral may in fact be highly immoral by the standards of
another country. For example, the law that once banned interracial marriages in
South Africa was named the “Immorality Act,” even though in most civilized
countries this law, and any degree of explicit racial prejudice, would itself be
considered highly immoral.
Culture has several important characteristics: (1) Culture is comprehensive. This means that
all parts must fit together in some logical fashion. For example, bowing and a strong desire
to avoid the loss of face are unified in their manifestation of the importance of respect. (2)
Culture is learned rather than being something we are born with. We will consider the
mechanics of learning later in the course. (3) Culture is manifested within boundaries of
acceptable behavior. For example, in American society, one cannot show up to class naked,
but wearing anything from a suit and tie to shorts and a T-shirt would usually be acceptable.
Failure to behave within the prescribed norms may lead to sanctions, ranging from being
hauled off by the police for indecent exposure to being laughed at by others for wearing a suit
at the beach. (4) Conscious awareness of cultural standards is limited. One American spy
was intercepted by the Germans during World War II simply because of the way he held his
knife and fork while eating. (5) Cultures fall somewhere on a continuum between static and
dynamic depending on how quickly they accept change. For example, American culture has
changed a great deal since the 1950s, while the culture of Saudi Arabia has changed much
less.
Dealing with culture. Culture is a problematic issue for many marketers since it is
inherently nebulous and often difficult to understand. One may violate the cultural norms of
another country without being informed of this, and people from different cultures may feel
uncomfortable in each other’s presence without knowing exactly why (for example, two
speakers may unconsciously continue to attempt to adjust to reach an incompatible preferred
interpersonal distance).
Warning about stereotyping. When observing a culture, one must be careful not to over-
generalize about traits that one sees. Research in social psychology has suggested a strong
tendency for people to perceive an “outgroup” as more homogenous than an “ingroup,” even
when they knew what members had been assigned to each group purely by chance. When
there is often a “grain of truth” to some of the perceived differences, the temptation to over-
generalize is often strong. Note that there are often significant individual differences within
cultures.
Cultural lessons. We considered several cultural lessons in class; the important thing here is
the big picture. For example, within the Muslim tradition, the dog is considered a “dirty”
animal, so portraying it as “man’s best friend” in an advertisement is counter-productive.
Packaging, seen as a reflection of the quality of the “real” product, is considerably more
important in Asia than in the U.S., where there is a tendency to focus on the contents which
“really count.” Many cultures observe significantly greater levels of formality than that
typical in the U.S., and Japanese negotiator tend to observe long silent pauses as a speaker’s
point is considered.
Cultural characteristics as a continuum. There is a tendency to stereotype cultures as
being one way or another (e.g., individualistic rather than collectivistic). Note, however,
countries fall on a continuum of cultural traits. Hofstede’s research demonstrates a wide
range between the most individualistic and collectivistic countries, for example—some fall in
the middle.
Hofstede’s Dimensions. Gert Hofstede, a Dutch researcher, was able to interview a large
number of IBM executives in various countries, and found that cultural differences tended to
center around four key dimensions:
 Individualism vs. collectivism: To what extent do people believe in individual
responsibility and reward rather than having these measures aimed at the larger
group? Contrary to the stereotype, Japan actually ranks in the middle of this
dimension, while Indonesia and West Africa rank toward the collectivistic side. The
U.S., Britain, and the Netherlands rate toward individualism.
 Power distance: To what extent is there a strong separation of individuals based on
rank? Power distance tends to be particularly high in Arab countries and some Latin
American ones, while it is more modest in Northern Europe and the U.S.
 Masculinity vs. femininity involves a somewhat more nebulous concept.
“Masculine” values involve competition and “conquering” nature by means such as
large construction projects, while “feminine” values involve harmony and
environmental protection. Japan is one of the more masculine countries, while the
Netherlands rank relatively low. The U.S. is close to the middle, slightly toward the
masculine side. ( The fact that these values are thought of as “masculine” or
“feminine” does not mean that they are consistently held by members of each
respective gender—there are very large “within-group” differences. There is,
however, often a large correlation of these cultural values with the status of women.)
  Uncertainty avoidance involves the extent to which a “structured” situation with clear
rules is preferred to a more ambiguous one; in general, countries with lower
uncertainty avoidance tend to be more tolerant of risk. Japan ranks very high. Few
countries are very low in any absolute sense, but relatively speaking, Britain and
Hong Kong are lower, and the U.S. is in the lower range of the distribution.
Although Hofstede’s original work did not address this, a fifth dimension of long term vs.
short term orientation has been proposed. In the U.S., managers like to see quick results,
while Japanese managers are known for take a long term view, often accepting long periods
before profitability is obtained.
High vs. low context cultures: In some cultures, “what you see is what you get”—the
speaker is expected to make his or her points clear and limit ambiguity. This is the case in
the U.S.—if you have something on your mind, you are expected to say it directly, subject to
some reasonable standards of diplomacy. In Japan, in contrast, facial expressions and what is
not said may be an important clue to understanding a speaker’s meaning. Thus, it may be
very difficult for Japanese speakers to understand another’s written communication. The
nature of languages may exacerbate this phenomenon—while the German language is very
precise, Chinese lacks many grammatical features, and the meaning of words may be
somewhat less precise. English ranks somewhere in the middle of this continuum.
Ethnocentrism and the self-reference criterion. The self-reference criterion refers to the
tendency of individuals, often unconsciously, to use the standards of one’s own culture to
evaluate others. For example, Americans may perceive more traditional societies to be
“backward” and “unmotivated” because they fail to adopt new technologies or social
customs, seeking instead to preserve traditional values. In the 1960s, a supposedly well read
American psychology professor referred to India’s culture of “sick” because, despite severe
food shortages, the Hindu religion did not allow the eating of cows. The psychologist
expressed disgust that the cows were allowed to roam free in villages, although it turns out
that they provided valuable functions by offering milk and fertilizing fields. Ethnocentrism is
the tendency to view one’s culture to be superior to others. The important thing here is to
consider how these biases may come in the way in dealing with members of other cultures.
It should be noted that there is a tendency of outsiders to a culture to overstate the similarity
of members of that culture to each other. In the United States, we are well aware that there is
a great deal of heterogeneity within our culture; however, we often underestimate the
diversity within other cultures. For example, in Latin America, there are great differences
between people who live in coastal and mountainous areas; there are also great differences
between social classes.
Language issues. Language is an important element of culture. It should be realized that
regional differences may be subtle. For example, one word may mean one thing in one Latin
American country, but something off-color in another. It should also be kept in mind that
much information is carried in non-verbal communication. In some cultures, we nod to
signify “yes” and shake our heads to signify “no;” in other cultures, the practice is reversed.
Within the context of language:
 There are often large variations in regional dialects of a given language. The
differences between U.S., Australian, and British English are actually modest
compared to differences between dialects of Spanish and German.
 Idioms involve “figures of speech” that may not be used, literally translated, in other
languages. For example, baseball is a predominantly North and South American
sport, so the notion of “in the ball park” makes sense here, but the term does not carry
the same meaning in cultures where the sport is less popular.
 Neologisms involve terms that have come into language relatively recently as
technology or society involved. With the proliferation of computer technology, for
example, the idea of an “add-on” became widely known. It may take longer for such
terms to “diffuse” into other regions of the world. In parts of the World where
English is heavily studied in schools, the emphasis is often on grammar and
 traditional language rather than on current terminology, so neologisms have a wide
potential not to be understood.
 Slang exists within most languages. Again, regional variations are common and not
all people in a region where slang is used will necessarily understand this. There are
often significant generation gaps in the use of slang.
Writing patterns, or the socially accepted ways of writing, will differs significantly between
cultures.

In English and Northern European languages, there is an emphasis on organization and

conciseness. Here, a point is made by building up to it through background. An introduction
will often foreshadow what is to be said. In Romance languages such as Spanish, French,
and Portuguese, this style is often considered “boring” and “inelegant.” Detours are expected
and are considered a sign of class, not of poor organization. In Asian languages, there is
often a great deal of circularity. Because of concerns about potential loss of face, opinions
may not be expressed directly. Instead, speakers may hint at ideas or indicate what others
have said, waiting for feedback from the other speaker before committing to a point of view.
Because of differences in values, assumptions, and language structure, it is not possible to
meaningfully translate “word-for-word” from one language to another. A translator must
keep “unspoken understandings” and assumptions in mind in translating. The intended
meaning of a word may also differ from its literal translation. For example, the Japanese
word hai is literally translated as “yes.” To Americans, that would imply “Yes, I agree.” To
the Japanese speaker, however, the word may mean “Yes, I hear what you are saying”
(without any agreement expressed) or even “Yes, I hear you are saying something even
though I am not sure exactly what you are saying.”
Differences in cultural values result in different preferred methods of speech. In American
English, where the individual is assumed to be more in control of his or her destiny than is
the case in many other cultures, there is a preference for the “active” tense (e.g., “I wrote the
marketing plan”) as opposed to the passive (e.g., “The marketing plan was written by me.”)
Because of the potential for misunderstandings in translations, it is dangerous to rely on a
translation from one language to another made by one person. In the “decentering” method,
multiple translators are used.

The text is first translated by one translator—say, from German to Mandarin Chinese. A
second translator, who does not know what the original German text said, will then translate
back to German from Mandarin Chinese translation. The text is then compared. If the
meaning is not similar, a third translator, keeping in mind this feedback, will then translate
from German to Mandarin. The process is continued until the translated meaning appears to
be satisfactory.
Different perspectives exist in different cultures on several issues; e.g.:
 Monochronic cultures tend to value precise scheduling and doing one thing at a time;
in polychronic cultures, in contrast, promptness is valued less, and multiple tasks may
be performed simultaneously. (See text for more detail).
 Space is perceived differently. Americans will feel crowded where people from more
densely populated countries will be comfortable.
 Symbols differ in meaning. For example, while white symbols purity in the U.S., it is
a symbol of death in China. Colors that are considered masculine and feminine also
differ by culture.
 Americans have a lot of quite shallow friends toward whom little obligation is felt;
people in European and some Asian cultures have fewer, but more significant friends.
For example, one Ph.D. student from India, with limited income, felt obligated to try
buy an airline ticket for a friend to go back to India when a relative had died.
 In the U.S. and much of Europe, agreements are typically rather precise and
contractual in nature; in Asia, there is a greater tendency to settle issues as they come
up. As a result, building a relationship of trust is more important in Asia, since you
must be able to count on your partner being reasonable.
 In terms of etiquette, some cultures have more rigid procedures than others. In some
countries, for example, there are explicit standards as to how a gift should be
presented. In some cultures, gifts should be presented in private to avoid
embarrassing the recipient; in others, the gift should be made publicly to ensure that
no perception of secret bribery could be made.

Values influence consumer behaviour

Values can be divided into many different groups. In fact I divided them into three groups,
and groups are cultural/ethnic values, family values and individual values. I’ll tell how these
values influence consumer behavior.
Cultural/ethnic values
First are cultural values. Cultural backgrounds influence people’s behavior. The context of
consumer behavior, culture refers to the collective memory. Culture affects people in two
ways: Create consists of the history, values, beliefs, social structure, religion and ways of
living and relationships. These grow up from childhood. Culture is also typical by external
factors such as different symbols, traditions, rituals and heroes. Each created a cultural
environment and it shapes a person’s personality. It adopts the practices, models, values and
attitudes. Culture changes slowly over time.
Family values
The family has really strong influence on consumer behavior. If the family will appreciate,
for example ethics, it will be seen for sure in the future of children. And if parents will
appreciate certain kinds of values it has impact on younger values. Family members have an
effect on decisions. This means that family decisions are often together, and each consumer’s
decision to participate in more than one person. Human behavior is largely learned. Often
people learn the values at an early stage, for example, from school or from parents.
Individual values
Today, the environment is considered very important and appreciated. It also shows the
consumers behaviors because today favor the environment to support and promote the
products. That’s a big part of our life nowadays.Consumer behavior depends on personal
factors such as age, stage of life, occupation, education, income, lifestyle. At different ages
and stages of life, consumers have different needs, desires and values. Furthermore, the
economic situation, education, occupation, lifestyle, and personality influence the issues on
which the consumer is interested in, and what services and products they use at the moment.
Different economical circumstance influences consumer behavior, because for example of the
different life situations may not be used in the same way money.
Consumer Behavior - Cross-Culture
A consumer’s level of exposure towards foreign goods or lifestyles may influence his buying
decisions and preferences. Consumers tend to have an attitude when it comes to a particular
product being made in a particular country. This attitude might be positive, negative, and
neutral.
Cross-cultural consumer analysis is defined as the effort to determine to what extent the
consumers of two or more nations are similar or different.
A major objective of cross-cultural consumer analysis is to determine how consumers in two
or more societies are similar and how they are different. Such an understanding of the
similarities and differences that exist between nations is critical to the multinational marketer,
who must devise appropriate strategies to reach consumers in specific foreign markets.
The greater the similarity between nations, the more feasible it is to use relatively similar
strategies in each nation. If they differ in many aspects, then a highly individualized
marketing strategy is indicated.
The success of marketing and servicing in foreign countries is likely to be influenced by
beliefs, values, and customs.
Here we have listed some of the best companies which are considered to be valuable, as they
have understood the pulse of consumers and their tastes.
Coca Cola Disney
Microsoft McDonald
IBM Nokia
GE Toyota
Intel Marlboro
Disney

Cross Cultural understanding of consumer

behavior
Assessing cultural change still remains a difficult task and marketers are likely to continue to
face problems when attempting to understand, appreciate, and reflect changing cultural
values. First, these changes are choice elusive and hard to define, and their practical effects
are frequently indirect. Second, the marketer may tend to ascribe fundamental cultural
changes simply to the generation gap and incorrectly assume that they are only fads and will
quickly disappear. Finally, because change often generates complexity, marketers may resist
changing cultural values rather than trying to take advantage of them.
More and more companies have adopted a global outlook in which the world becomes their
market. For example, numerous major corporations, such as Coca Cola, Hoover, IBM, Pfizer
and Gillette, receive over half of their earnings from foreign operations while many others
also have significant international markets. Such situations require the marketer’s
appreciation both of culture differences among international markets and of their influence on
consumer behavior. In this section some of the marketing implication of these cultural
subtleties will be discussed. Unfortunately, there have been rather few published cross
cultural studies of consumer behavior that the marketer may use in making strategy decisions.
There have been some important recent examples of research in this area, however.
The need for cross cultural understanding:
A recent study of almost 12,000 managers around the world found that although changes
were occurring in every country, culture, and corporation, there is still no common culture of
management. Moreover, managers’ views tend to correspond more to their country’s cultural
heritage and less to its geographic location.
The diversity among cultures is reflected not only in management but also in marketing and
consumer behavior and it can take some getting used to. Thus, when Americans venture
broad, they experience what anthropologists call culture shock, that is, a series of
psychological jolts when they encounter new customs, value systems, attitudes and work
habits; the shock reduces their effectiveness in foreign commercial environments. Therefore,
it is crucial to effective operations that the manager be well schooled in the host culture. A
lack of understanding of the host culture will lead the manager to think and act as if he would
in his home culture. Such a self reference criterion that is, the unconscious reference to one’s
own cultural values – has been termed the root cause of most international business problems
abroad. The goal should be to eliminate this cultural myopia. The following effectively
expresses the payoff from understanding how culture may influence cross cultural executives.
A general comparative analysis if cultures may help marketing executives to anticipate the
responses of their rivals, understand more accurately their customs in business transactions
and deal with colleagues of different nationalities in joint decision. Culture makes a
difference in problem identification and in the objectives motivating choice. Culture also may
make a difference in the communication of problems and recommendations, and particularly
in the decisiveness of recommendations. Failure to understand these differences may lead to
noisy communication, misinformation and misunderstanding. Culture also makes a difference
in individual strategies to adjust decision situations to facilitate choice and mitigate
undesirable consequences for the organization and the decision maker.
The marketer needs a frame of reference with which to understand and evaluate the range of
cultural values that may be encountered. A useful conceptualization of the possible range of
variations in values found in different cultures is offered which presents a classification of
value orientations that might be encountered by the international marketer. This model
suggests five basic orientations, which are thought to be common to all human groups. These
relate to human nature, relationship of people to nature, sense of time, activity and social
relations. The marketer’s task then becomes one of seeking to understand what type of value
system predominates in a given culture and reacting effectively to that system through
marketing. Thus, the international marketer would benefit from doing the same. Americans
would fall on the right hand side of this value range. Nevertheless it has been observed that
even in our modern value systems there are some primitive aspects of consumption that serve
as an outlet for spiritual expression and the preservation of ethnic heritage.
Major sources of misunderstanding among cultures are the differences in values and priorities
indicated.

Influence of Social and Economic Classes

on Consumer Behaviour
Meaning and Definition of Social Class :
Consumer behaviour is influenced by environment in which one lives. The decision process
is affected by a number of factors such as culture, social class, personal influences, family,
religion, region he lives in, and his situation. Amongst them social class has great impact on
consumer behaviour but what is a social class has been described differently by different
researchers.
It can be best described “divisions within society composed of individuals sharing similar
values, interest and behaviours”. They are differentiated by socio-economic status differences
but some researchers do not take into consideration social factors. Leon G. Schiffman and
Lisline Lazor Kanuk measure social class “in terms of social status” such as profession,
income, quality of neighborhood and dollar value of residence and do not consider cash,
region and other social factors stating that consumer behaviour study is different than socio-
culture study.
Social Classes and Culture, Religion and Geographical Impact on Consumer
Behaviour:
Social classes in foreign countries have largely been distinguished on the basis of income
level, cultural, religious and geographical impact has not been given that importance as it
deserves because society has been classified largely on economic factors. Further cultural and
religious factors are similar for all persons of the society in a particular region irrespective of
their income group but they are important variable in deciding the behaviour of consumers.
These factors are much more important in country like India where culture, religion, language
and geographical differences are much wider than in the west. Further, in the same income
group the behaviour of urban and rural population is not similar or in all geographical
regions. Hence there is need of dividing classes based on various variables.
A person in a particular income group does have different cultures, different religions and
they live in different regions of the country. They speak different languages. All these factors
have impact on behaviour as a consumer and therefore persons with different social
background are classified in different classes.
Social class is a homogenous group in the society who are likely to behave in similar manner
irrespective of level of income. Thus truly speaking social class is a class of persons who
behave homogeneously irrespective of place of stay, education economic possessions. They
share similar values, interests, festivals, customs etc.
A Bihari, Bengali, Tamalian, Gujarati or person of other states living in Delhi, Bombay,
Lucknow or abroad have common bonds through marriages, common festivals, beliefs etc.
Thus they behave similarly for purchases etc. but level of education, income and profession
have divided them on the basis of status.
The economic factors have broken social classes but still for certain products like food,
worship, marriages etc. they follow similar practices but there are hierarchy in them. Even
otherwise some casts consider themselves superior than others.
Even in Brahamis, Vaish, Khatris and schedule casts there is social ranking in terms of
superiority and inferiority. This type of ranking, however, is only in the minds of certain
people and no where-else but it has made differences in their behaviour and consumption
patterns. This hierarchy, however, is different than hierarchy based on over all social status.
There are innumerable aspects of social class some of which may be listed below:
1. Fertility rate is influenced by social class and belief in family planning. Therefore birth of
an individual is influenced by his social class.
2. The functions held after the birth.
3. The life expectancy.
4. The upbringing including education, schooling, society is also dependent upon social class
and so the future of a child.
5. The role of the adult in selecting his life partner.
6. The functions of the marriage and class in which one is married. As yet generally person is
married in his own social class though there are exceptions.
7. The profession often is also decided by social class; son of a chartered accountant, medical
practitioner, lawyer ordinarily opt for similar profession. But educated sons of farmers and
shopkeepers often choose different professions. Thus the aspirations are influenced by birth.
8. The attitude towards life specially economic goods is influenced by his religion and social
upbringing.
9. The attitude towards society is greatly influenced by his class.
10. The attitude towards liking, priorities, preferences for goods, prices versus quality and the
impact of advertisement all are conditioned by social class one belongs with some exceptions.
Thus the impact of social classes is very important to be studied by marketer and consumer
researcher. Gradually social classes are breaking but till now they have great role to play in
ones attitudes and behaviour. Therefore, social class remains important for marketers.
Behaviour of Different Classes:
Behaviour as a consumer of a social class depends how we make classes. If all the variables
are taken into account the number of classes will be very large in a country of the size and
diversity of culture-, languages, religions, regions, customs like India. Even in a country like
USA where there is more homogeneity than India researchers have divided the country into
210 classes.
In India enough research has not been done but if all the variables are taken into account
there will be few thousand classes if one wants to make them homogenous. As it is a difficult
task often classes have been made on the basis of economic status but this is not enough for
consumer research and segregation. However, as already stated there is need of such
segregation.
Thus in each state like U.P., Kerala, Madhya Pradesh, Rajasthan, Andhra Pradesh, Tamil
Nadu, Karnataka, Assam, West Bengal etc. social classes will have to take various variables
into account. Only in the newly created states of Uttaranchal, Chhattisgarh and Jharkhand
there is greater homogeneity in terms of culture but in these states also there are wide
differences in economic status and many classification within same class people in rural area
behave differently than in urban area.
The level of knowledge, communication facilities, education further makes differences in
social classes. Because of such diversity it is not possible to describe the features of various
classes. However, the major economic differences have been brought out while discussing
economic classes.
There is however distinct behavioural differences which should be understood. Indian people
by and large follow traditions irrespective of education and economic prospects and
irrespective of region one belongs. Therefore, most of the people follow their traditions and
customs at least at the time of birth, marriages and death and normally spend more than their
capacity. This is one of the reasons for rural indebtedness.
Rural people generally give preference in education to male member and neglect the
education of girl child specially poor and less educated persons. All the persons irrespective
of cast, economic status, education, region, religion, place of stay (rural-urban) all prefer
male child. Therefore, number of females per one thousand females is going down. In 2001
there were 933 females for 1000 males.
Education plays an important role in behaviour. The literacy rate for male population is three
fourth of males but it is only half of female population. It is expected that with greater
education people will be more liberal in their social outlook, in the matter of marriages but
this is trickling down very slowly.
Every one wants to marry in their community and inter-casts marriages are very few. They
are not liked by society and sometimes create social tension. But more educated girls are
taking jobs specially in urban areas irrespective of the class one belongs.
This has changed family life style, ladies prefer time saving foods and devices and do not
cook lunch unless there are other family members who stay at home or return home by launch
time. The increase in the number of working ladies has created demand for crutches. With
spread of education the divorce rate is going up but still it is much less than 50 percent in
USA; actually as yet it is insignificant in India.
The religious functions even for the follower of same religion differ considerably from state
to state. While in Northern India Deshra, Deepawali, Holi are major festivals in South India
Deshra and Holi is rearly celebrated; they have Pongal (Tamil Nadu) and Onam (Kerala).
In West Bengal and other places dominated by Bengalies Durga Puja, Kali Puja and
Saraswati Puja are main functions. In Punjab Baisakhi and Lohri are celebrated with dance
and music but people of many other states do not know anything about these festivals. In
Assam, Nagaland etc. festivals are different. But the celebration does not depend upon social
status but religion. However, for Muslims and Christians festivals do not differ from state to
state.
Marriage systems and customs do not depend merely on religion but region also have
influence on them. The rate of growth in population for India as a whole had been 2.25
percent per annum during 1991-2001 but there are wide variations from state to state. It is
lowest in Kerala at 0.94 percent where literacy rate is highest. The different population
growth and other factors has made West Bengal most densely populated state (904 people per
sq km).
The difference density ratios has created problem of land, jobs, social amenities differently in
different regions. This is also responsible for poverty, and migration to other places for
employment. But migration is also dependent upon other factors like enterprising sprit and
therefore people going abroad are largely Pujabies, Gujaratis and Keralists and to a certain
extent Marwaries. They have helped in making their states richer by sending lot of their
savings for their relatives and families well being.
Within India lot of people from Bihar, Eastern U.P. and Orissa work as workers in other parts
of the country; often live alone and send money home for parents, wife and children. They try
to save maximum so that maximum possible amount may be sent at home. These factors have
great impact on consumption.
But all said and done as yet adequate research has not been done in India on social classes as
consumer. If students of marketing management, institutes of management and corporate
sector undertake research much more will be known about behaviour of different social
classes.

How Does Social Stratification Impact

Consumers?
Social stratification is the presence in a society of clearly distinct consumer groups divided by socio-
economic factors. Typically, income is a key driver of this, though lifestyles, status and other factors
come into play in some cultures. Social stratification significantly affects consumer preferences and
buying behaviors.
Keeping Up with the Joneses
A classic example of social class division and its impact is the expression "Keeping up with
the Joneses." This expression points to the common instinct of people in a middle- or upper-
class household to want to purchase products and services that keep pace with neighbors and
peers. If someone lives in a certain middle-class neighborhood where everyone owns an
expensive car, for instance, his common instinct is often to purchase an expensive car to fit
in. Some businesses use advertising to place social pressure on consumers who want to fit in
or keep up.
Status
Closely related to the "Keeping up with the Joneses" mentality is the simple premise that
high-income earners often buy luxury brands as much for status as for functional value. A
Rolex watch, for instance, doesn't necessarily monitor and convey time any better than a $50
or $100 watch. However, high earners may wear Rolex watches as part of showing off their
status in social circles or as proof that they are accomplished.
Protecting the Kids
Interestingly, some adults consciously avoid the psychological pull to keep up and spend
money to fit in for themselves. However, they may purchase clothes, shoes, tech gadgets and
other items for their kids so they can fit in at school and with peers. Fashion and apparel
retailers targeting teens use this protective instinct in parents to promote the "cool" factor of
their brands and products to young audiences.
Functional vs. Emotional
People in lower to lower-middle-income social classes often emphasize price and value and
other practical features in purchases. As you go up the income and social class levels,
emotional appeals and social influences tend to have greater affect on perception and buyer
behavior. For businesses, this usually means that high-end or luxury brands use emotional
appeals in promotion to deliver a brand image and attract buyers. Price or value-driven
businesses more often stress affordability, value and functional benefits.