04/17/23 1

By :

Prof. Amit Kumar

04/17/23 2

Course: Consumer Behavior

Unit-1 Consumer in the Marketplace

Unit-2 Models of Consumer Behavior

Unit-3 Cultural Influences on Consumer Decision making

Unit-4 Sociological Influences on Consumer Decision making

Unit-5 Personal / Individual Influences on Decision making

Unit-6 Psychological Influences on Decision making

Unit-7 Consumer Decision Making Process

Unit-8 Consumer Influence & Diffusion of Innovation

Consumer Behavior

IILM-Graduate School of Management

04/17/23 3

Consumer Behavior Cultural Influence on Consumer Behavior

IILM-Graduate School of Management

04/17/23 4

Culture

The fundamental determinant of a person’s wants and behaviors

acquired through socializationprocesses with family

and other key institutions.

Consumer Behavior Cultural Influence on Consumer Behavior

IILM-Graduate School of Management

04/17/23 5

Fast Facts About American Culture

• Culture: The set of values, ideas, and attitudes that are learned and shared among the members of a group or society.

– Examples – American culture, Latin American culture, Japanese culture

• The average American– chews 300 sticks of gum a year– goes to the movies 9 times a year– takes 4 trips per year – attends a sporting event 7 times each year

Consumer Behavior Cultural Influence on Consumer Behavior

IILM-Graduate School of Management

04/17/23 6

Culture

The growing child acquires a set of values, perceptions,

preferences and behaviors through his or her family and

other key institutions.

– A child growing in US is exposed to the following values: achievements and success, activity, efficiency and practicality, progress, material comfort, individualism, freedom and youthfulness.

– A child growing up in a traditional middle-class family in India is exposed to the following values: respect and care for elders, honesty, hard work, achievements and success and sacrifice.

Consumer Behavior Cultural Influence on Consumer Behavior

IILM-Graduate School of Management

04/17/23 7

Subculture

• Each culture consists of smaller subcultures.• Subgroups within a larger culture that have unique

values, ideas, and attitudes.• Subculture includes:

1. Nationalities

2. Religions

3. Racial groups etc.• Multicultural marketing grew out of careful marketing

research, which revealed that different subculture/ culture did not always respond favorably to mass-market advertising.

Consumer Behavior Cultural Influence on Consumer Behavior

IILM-Graduate School of Management

04/17/23 8

Culture/Subculture

“ When Kellogg launched its cornflakes in the Indian

market, the response from the consumers was not very

encouraging. The company conducted a market research

and discovered that Indians prefer hot milk with cornflakes

whereas the “crispiness” benefit that it was claiming could

be delivered only when the cornflakes were mixed with cold

Milk”.

Consumer Behavior Cultural Influence on Consumer Behavior

IILM-Graduate School of Management

04/17/23 9

Social Classes

• Social class (members share similar values, interests and behaviors)

• One classic depiction of social classes in US defined seven ascending levels, as follows:

1. Upper uppers2. Lower uppers3. Upper middles4. Middle class5. Working class6. Upper lowers7. Lower lowers

Consumer Behavior Cultural Influence on Consumer Behavior

IILM-Graduate School of Management

04/17/23 10

Social Classes: INDIA

• Indian marketers use a term called Socioeconomic classification (SEC), which uses a combination of the education and occupation of the chief wage earner of the household to classify the buyers in urban areas.

• This classifies all the urban household into eight broad categories namely, A1,A2,B1,B2,C,D,E1,E2; with A1 signifying highest purchase potential & E2 signifying the lowest.

OCCUPATION EQUCATIONIlliterate School SSC/HSC SSC/HSC PG/UG PG/UG

up to 10 Non General Professional years Graduate

Unskilled workerSkilled workerShop ownerBusinessmenSelf employedSupervisory level

E2 E1 D D D D

B1 B1 A2 A1 A1 A1

D D C C B2 A2

Consumer Behavior Cultural Influence on Consumer Behavior

IILM-Graduate School of Management

04/17/23 11

UK socioeconomic classification scheme

Consumer Behavior Cultural Influence on Consumer Behavior

IILM-Graduate School of Management

04/17/23 12

Characteristics of Social Classes

1. Within a class, people tend to behave alike. Social classes differ in dress, speech patterns & preferences.

2. Social class conveys perceptions of inferior or superior position.

3. Class may be indicated by a cluster of variables-for example occupation, income, wealth, education, value orientation-rather than by a single variable.

4. Class designation is mobile over time. It means individuals can move up or down the social class ladder during their lifetimes.

Consumer Behavior Cultural Influence on Consumer Behavior

IILM-Graduate School of Management