critically consider how the social environment and culture affect consumer behavior

8/2/2019 Critically Consider How the Social Environment and Culture Affect Consumer Behavior

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INSTITUTE

Social Environment and

Cultural Influences onConsumer Behavior

NAME & CLASS

[Pick the date]

Critically consider how the social environment and culture affect consumer behavior. Draw on the

module readings and class discussions to support your answer.


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Social Environment and Cultural effects on Consumer Behavior

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Table of Contents

1. Table of Contents ........................................................................................................ 1

2. Introduction to the study conducted:.................................................................. 2

3. Consumer Behavior: ................................................................................................ 2

4. Understanding Consumer Behavior:................................................................... 2

5. Fundamentals of Social Environment and Culture: ........................................ 3

6. Consumer Behavior Model By Hawkins: ............................................................ 4

7. Social Environment & Culture With Respect to Consumer Behavior: ....... 5

8. The U.S Cultural and Social Values and influences on the Consumer

Behavior: ..................................................................................................................... 6

9. Individualism:............................................................................................................. 6

10.Equality:....................................................................................................................... 6

11.Activity:........................................................................................................................ 7

12.Progress and Achievement:................................................................................... 7

13.Efficiency and Practicality:..................................................................................... 8

14.Religious and Moral Orientation:.......................................................................... 8

15.Conclusion: ................................................................................................................ 9

16.Bibliography:............................................................................................................ 10


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Introduction to the study conducted:

The paper is an in depth research and analysis of the factors that affects

consumer behavior. In this paper we will be critically considering what are the

environmental and cultural variables and factors and their effects on consumers

behavior. The paper is a reflection on the argument made as we already know that

culture is a very important factor which affects every aspect of life and so it affects

consumers behavior too. In the following research conducted we will be putting an in

depth light on the environmental and cultural factors responsible in the development

of change or decision within the context of consumer behavior.

Consumer Behavior:

First of all let us define what consumer behavior is in a very simple manner;

The term consumer behavior can be easily understood as the behavior of an

individual or consumer towards a product or service where the key contexts are of

making a purchase, utilizing the product or service, generating an evaluation and

finally disposing it and more significantly their expectation towards it that their need

will be satisfied (Schiffman & Kanuk, 2009, p. 23).

Understanding Consumer Behavior:

So far the study of consumer behavior comprises of two aspects or two

categories of consumers namely the personal consumers and the organizational

consumers but within this paper our core focus would be towards the personal

consumers who are actually individuals who purchase products or services for their


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own use like house hold usage or as a gift for someone etc. and these consumers

are referred as being the end users of products or services (Schiffman & Kanuk,

2009, p. 24).

It is a fact that the study or field of consumer behavior fully base upon a term

named as The Marketing Concept coined in the late 1950s which explains that there

is another door awaiting for marketers where marketing does not only mean

producing and selling only those products or services that are needed or demanded

by customers but moreover it is an open opportunity to make customers buy those

products or services also the company has produced or manufactured for the same

consumers in anticipation while deeply analyzing their life styles and day to day

needs resulting in an unintentional demand of easiness in products or services

(Schiffman & Kanuk, 2009, p. 25).

Fundamentals of Social Environment and Culture:

One could easily understand the social environment and culture very easily by

putting light on the surrounding. Social environment and culture are correlated terms

as it should be noticed that culture is the most important part of the society.

Consumers are always changing with respect to their personalities and values

and it is quite obvious that an individuals personality is socialized by the society

more specifically by the social environment in which one is living and values are also

extracted from the same environment or the society and integrated in ones mind

(Roberts & Lilien, 1993, p. 28).

Culture is a very important factor that plays a vital role in the consumer

behavior towards a product or service. Culture includes all the norms and values of a


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society and a marketer should market such a product that fully complies to the

cultural norms and values of the respective society because a consumer always

makes his/her mind towards a product just according to what his/her culture

addresses oneself about the utilization or consumption of that product or service. In

other words we can understand that an individuals perceptions are mostly

developed on the basis of the culture in which one is surviving ultimately varying

ones purchasing decision in according to the values one owns (Slater, 2003).

Following is basic consumer behavior model which is elaborating some of the

very fundamental influential variables regarding consumer behavior. The given

model clearly explains the importance of social environment and culture in the

process of consumer behavior. The part related to our concern is of external

influences. In the field of business external influences always refer towards all those

factors that are externally impacting an individual or an organization which comprises

of the largest portion of the environment.

Consumer Behavior Model By Hawkins:

The consumer behavior model given by Hawkins comprises of two important

influencing sources the external and the internal influences. Our course of interest

lies in the external influences where the factors of culture and social environment lies

(Hawkins et al., 1998). When considering social environment it relates to the social

class which defines itself as a big population of individuals who share similar life-

styles and interests (Yakup, et al., 2011, p. 110). After understanding what is social

class one could easily conclude that when people of same interests are there then a

factor of social status also arises and these people will try to buy those products only

that are easily accepted by the people of same interests or life-styles always present


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around them just like the hierarchical levels of the society for example a member

from the upper middle class will always try to maintain remain in the same level and

thus a marketer should know the fact that they demand similarly before addressing

them and more importantly the sub cultures where small groups having resemblance

among them are formed having a very strong bond within a culture (Williams, 2002,

p. 250) .

Social Environment & Culture With Respect to Consumer Behavior:

It comprises of Culture and Subculture, Social Classes and Groups, Family

and Personal Influence and the diffusion of Innovations. Culture is defined as;

That complex whole that includes Knowledge, Belief, art, morals, law, custom and

any other capabilities and habits acquired by man as a member of society (taylor,

1924) again The distinctive way of life of a group of people, their complete design

for living (Stull & Von Till, 1994)

Rockeach believed that analyzing values of consumers is very important as

they play the most important role and for that he developed a survey that analyzes

values on the basis of two categories the terminal and instrumental values contained

with eighteen sub values and named his survey as Rockeach Value Survey (RVS)

(Loudon & Bitta, 2008, p. 99). It is also proven that during the decision making

process of market segmentation the role of analysis of these terminal and

instrumental values is very important in understanding the demographic aspects of

the targeted audience and these demographics helps a lot while conducting the

product promotions, positioning, pricing and distribution activities (Loudon & Bitta,

2008, p. 103). It is also important that culture never remains the same sometimes

changes occur very slowly and sometime very rapidly so a continuous analysis of


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cultural values for a marketer is very important. According to VALS 2 there are eight

significant categories of individuals in a society namely Actualizers, Fulfillers,

Achievers, Experiencers, Believers, Strivers, Makers and Strugglers. And all of them

have their own respective perceptions, norms, values, attitudes and behaviors and

so the purchasing decision dependency is (Loudon & Bitta, 2008, p. 104).

The U.S Cultural and Social Values and influences on the Consumer Behavior:

Let us take an in depth insight of U.S.A social and cultural aspects to

understand the various influences.

Individualism:

It is a very complicated and extensive variable in the culture of U.S.A basically

regarding to matters such as independence, patriotism and liberalism. This is a fact

that via this characteristic people are addressing that they have the dignity and right

of being free not in all aspects of the culture but much as far as their external

environment is concerned. It has been significantly observed that if advertisers

include a patriotic aspect in their advertising and promotional campaigns then the

success rate of their activity increases to almost a greater limit that clearly means

that the individuals are highly attracted through this factor of their culture (Loudon &

Bitta, 2008, p. 89). It is fact that while saying or expressing this characteristic in ads

people are most attracted as the feature of patriotism appears in this attempt to

address the target audience (Perner, 2010).

Equality:

People of U.S.A believe intensely in the internal equality of the individuals.

Within this context they directly address that every individual in the society is equal


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to anyone else in the society and they all have equal rights of freedom, speech, job,

social life and striving towards the economic prizes. Moreover in the most recent

couple of decades it has been observed that a vigorous push of social and economic

equality has been found in the U.S.A culture (Loudon & Bitta, 2008, p. 90).

Especially significant claims were made regarding rights of women in the society and

even it brought a vivid change in the manner of society and thinking of the individuals

(Anon., 2011).

Activity:

Another most important feature of the culture of U.S.A is that they believe in

activity just like the concept found in the protestants context where it is assumed to

be idle is to be evil. They believe in continuous hardworking and positive efforts of an

individual ultimately contributing to the society and again to the country in a much

broader perspective (Loudon & Bitta, 2008, p. 90).

Progress and Achievement:

It is also an important factor of the culture of U.S.A that individuals are much

more concerned to the variables of progress which directs towards progress of the

society and achievement towards individuals achievements of goals or objectives

that are related to the self-interest of individual professionally or in the family or

personal life (Loudon & Bitta, 2008, p. 92).

According to research findings it has been found that the people of U.S.A

believe in collective action which expresses the progress of society, They believe in

doing any group activity so as to ensure that some progress has been accomplished


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by every individual in the progress of society or meaning that every individual has

played their part in this progress (Bagozzi, 2006, p. 129).

Efficiency and Practicality:Americans always motivate and appreciate the efficiency and implementation

of things. They always strive towards innovation and creativity. They are highly

admired by knowing the fact that the nation is working continuously towards progress

by bringing through efficiency and practicality in their work (Kotler, 2008). Gillette

always addresses an appeal of technological dominance in their ads which is an

evidence of the fact that how much individuals of U.S.A are concerned with this

variable (Loudon & Bitta, 2008, p. 93).

The research shows that the factor of efficiency and practicality is received by

a children even in the very initial socialization process and the other above given

values of culture too (Tamminga, 2009).

Religious and Moral Orientation:

It has been found that the individuals of U.S.A are much more religious as

compared to any other industrialized and modern country. Being dominant in the

world the adults of U.S.A also think that being religious is also very important for

them. Some significant researches show that there is a very intense impact of

religious and moral orientation on the behavior of individuals of U.S.A (Loudon &

Bitta, 2008, p. 96).

Researchers have found that ethics and religious and moral orientation are

fully correlated. Ethics run side by side in any society along with the religious

aspects infused in the minds of individuals of the society and this a big impact of


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ones mind to hit him directly through the religious cum ethical attempt and it works

efficiently (Vitell, et al., 2007).

Conclusion:While concluding the research done and a very critical insight on the social

and cultural values and their impacts on the consumer behavior we have learned

that no matter what are the circumstances and market situations it is really important

for a marketer to better understand the social and cultural factors which really

impacts the whole advertising and promotions in fact the whole marketing process

as the featured product or service is correlated to the end user or consumers norms,

values, social instances and in a bigger perspective the culture.

It is an advertisers utter most responsibility to first understand all the ins and

outs of a consumer with respect to his/her environmental and cultural variables and

values before featuring or offering any product or service. It is really important

because an individual will always make decisions just according not only to his/her

mind but also according to the social class he/she belongs and the environment

which includes the social as well as personal influencers; the social networked group

of people among which the targeted consumer dwells and the family he/she has

because there is a very different influence of the social exposure of an individual with

respect to ones friend, workplace, surrounding people and then equally there is an

influence from the family so an individual no matter to which age segment one

belongs but decisions made by the consumer are fully based on these influential

forces of the social environment as well as the culture where religion has the

greatest importance.


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Bibliography:

Anon., 2011. Female Equality Matters. [Online]Available at: http://femaleequalitymatters.com/

[Accessed 14 March 2012].

Bagozzi, R. P., 2006. Explaining Consumer Behavior and Consumer. Seoul Journal of

Business, 12(2), pp. 111-143. Hawkins et al., 1998.jcmc.indiana.edu. [Online]

Available at: http://jcmc.indiana.edu/vol9/issue2/giaglisfigure1.gif

[Accessed 9th March 2012].

Kotler, P., 2008. Principles of Marketing. 10 ed. Upper Saddle River, New Jersey:Prentice Hall International.

Loudon, D. L. & Bitta, A. J. D., 2008. Consumer Behavior. 4th ed. New Delhi: TataMcGraw-Hill.

Perner, L., 2010. Consumer Psychologist. [Online]Available at: http://www.consumerpsychologist.com/

[Accessed 14 March 2012]. Roberts, J. H. & Lilien, G. L., 1993.Handbooks in Operations Research and

Management Science, Marketing. 5th ed. New South Wales: Elsevier Science

Publishers.

Schiffman, L. G. & Kanuk, L. L., 2009. Consumer Behavior. 9 ed. New Delhi:Pearson Education, Inc..

Slater, D., 2003. Consumer Culture and Modernity. 5th ed. Malden: BlackwellPublishing Inc..

Stull, J. & Von Till, B., 1994.Determinants of Ethnocentrism. San Jose, CA, WesternStates Communication Association.

Tamminga, B., 2009. ezine Articles. [Online]

Available at: http://ezinearticles.com/?Why-Consumers-Buy---The-Cultural-Factors-That-Affect-Buyer-Behavior&id=1850442

[Accessed 14 March 2012].

taylor, E. B., 1924. Primitive Culture. 7th ed. New York: Brentano's.

Vitell, S. J., Paolillo, J. G. & Singh, J. J., 2007. Religiosity and Consumer Ethics.Journal of Business Ethics, 57(2), pp. 369-379.

Williams, T. G., 2002. Social Class Influences on Purchase Evaluation Criteria.Journal of Consumer Marketing, 19(3), p. 250.

Yakup, D., Mcahit, C. & Reyhan, O., 2011. The Impact of Cultural Factors on theConsumer Buying Behaviors.International Journal of Business and Social Science,

2(5), pp. 109-114.

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