The Influence of

Culture Subculture on
Consumer Behavior
Mc Donalds Reflect
Cultural Values
 1970-u deserve a break today
 1980- Mcdonalds & u
 Mid 1985 –Good time for the great
taste of McD (Family Oriented)
 1990 (Deep recession) –The new
reality
 After Recession- Have u had ur Break
today
 Late 1990- we love to see u smile
 The sum total of learned
beliefs, values, and
customs that serve to
Culture
regulate the consumer
behavior of members of
a particular society.
Contd
 Sub Culture – A Broad groups of
consumers with similar values that
distinguish them from Society as a
whole.
 Cross culture- A Broad groups of
consumers having different values
that distinguish them from Society
as a whole
Cultural Values
 A belief that a general state of Existence is
personally & socially worth Striving for .e.g
 Cultural Values- A comfortable life,
Exciting life, Equality, freedom, pleasure, self
respect, family security etc
 Consumption Values-Prompt, reliable Low
price services, No product misrepresentation
services etc
Contd
 Product Attributes- Service
Quality, Reliability, Performance,
Safety, Convenience etc
How culture Influences
Consumer Behavior
 Purchases-High value on
achievement/Some may buy it for
their younger looks/Some are
health Conscious
 Consumption-American cultures
Cultural Factors Affect
Consumer Behavior and
Marketing
Language
Strategy

Demographics
Consumer Marketing
behavior strategy

Values

Nonverbal
communications
Factors influencing Non
Verbal Communication
Time

Etiquette Space

Nonverbal
communications
Things Symbols

Agreements Friendship
Cross culture & Subculture
Influence
 1990 & 2000s Recession is helpful in
understanding the International Trade hence
makes the strategies accordingly e.g kellogs
breakfast eating individual turn in to cereal
eating.
 Marketers fail to recognize Brazilian mothers
who rejects Processed foods because of family
cultural values
Characteristics of Cultural
Values
1. Cultural Values are learned-
 Enculturation-Learning about own
culture
 Acculturation-Learning about
different culture
2. Guides to our behavior
3. Enduring
Contd-
 1980  1990
1. Live to work 1. Work to live
2. Be a winner 2. Do not be a loser
3. Home as a cocoon 3. Home as a
resource centre
4. Control the 4. Manage the
environment environment
5. Control the 5. Adapt the
technology technology
Issues in Culture
 Enculturation and acculturation
 Language and symbols
 Ritual
 Sharing of Culture
Weeknight
s are Rich
with Ritual
 Selected Rituals and Associated
Artifacts
SELECTED RITUALS TYPICAL ARTIFACTS
Wedding White gown (something old, something new,
something borrowed, something blue)
Birth of child U.S. Savings Bond, silver baby spoon
Birthday Card, present, cake with candles
50th Wedding anniversary Catered party, card and gift, display of photos of the
couple’s life together
Graduation Pen, U.S. Savings Bond, card, wristwatch
Valentine’s Day Candy, card, flowers
New Year’s Eve Champagne, party, fancy dress
Thanksgiving Prepare a turkey meal for family and friends
Cultural meaning and
Product
 Consumers buy the product for
Symbolism rather than the its
utility
Role of Product
Symbolism

 Communicating Social status

 Means of self Expression
 Means of sharing Experiences
 Products are hedonics e,g
Jewelleries
 Products are experiential
Subculture
 Types-
a. Geographic Subcultures
b. Religion
c. Age Cohorts-
• Gen X
• Gen Y
• Baby Boomers
• Mature Market
Age Cohorts
 Mature market (Over 55 years old)-
21%
 Baby Boomers (Born Between
1946 & 1964)- 26%
 Gen X (Born Between 1965 and
1976)-18%
 Gen Y (1977 and 1994)- 16%
The Measurement of
Culture
 Content Analysis
 Consumer Fieldwork
 Value Measurement Instruments
 A method for
systematically analyzing
the content of verbal
and/or pictorial
Content
communication. The
Analysis
method is frequently
used to determine
prevailing social values
of a society.
 A cultural measurement
technique that takes
place within a natural
Field environment that
Observation focuses on observing
behavior (sometimes
without the subjects’
awareness).
Characteristics of Field
Observation
 Takes place within a
natural environment
 Performed sometimes
without the subject’s
awareness
 Focuses on
observation of
behavior
 Researchers who
participate in the
Participant- environment that they
Observers are studying without
notifying those who
are being observed.
American Core Values
 Achievement  Individualism
and success  Freedom
 Activity  External
conformity
 Efficiency and
practicality
 Humanitarianism
 Youthfulness
 Progress  Fitness and
 Material health
comfort
Criteria for Value
Selection
 The value must be pervasive.
 The value must be enduring.
 The value must be consumer-
related.
An
Achieveme
nt-Success
Appeal
Ad
Stressing
Saving Time
and Money
Progress
is a
Winning
Appeal
Cross-Cultural
Variations in
Consumer Behavior
Culture
 Culture:
 Is comprehensive
 Is acquired or learned

 Provides boundaries for members

 Is typically “invisible”

 Enculturation is the process of learning one’s

own culture.
 Acculturation is the process of learning a new

culture.
 Views of Foreign Experts
in the U.S.
 “There are no small eggs in America. There are
only jumbo, extra large, large, and medium.”
 “If you are not aggressive, you’re not noticed.”
 “For a foreigner to succeed in the United States…
he needs to be more aggressive than in his own
culture because Americans expect that.”
 Americans say “Come on over sometimes,” but
foreigners learn (perhaps awkwardly) that this is
not really an invitation.
 “Here that [socializing outside the business
relationship] is not necessary. You can even do
business with someone you do not like.”
 Orientations Toward
Time
 Monochronic cultures (Americans, Germans,
Swiss) handle information in a direct, linear
fashion
 schedules, punctuality and a sense of time

that forms a purposeful straight line

 “time is money”

 Polychronic cultures (Japanese, Hispanic)

work on several fronts simultaneously time is
less important than task
 time and money are separate; timing is

more important than time

 Social Class and
Consumer Behavior
 The division of
members of a society
into a hierarchy of
distinct status classes,
Social Class so that members of
each class have either
higher or lower status
than members of other
classes.
 Social Class and Social
Status
 Status is frequently thought of as
the relative rankings of members
of each social class
 wealth Social Comparison Theory
 power
states that individuals
compare their
 prestige
own possessions against those
of others to determine their
relative social standing.
Status Consumption
The process by which consumers
actively increase their social
standing through conspicuous
consumption or possessions
Convenient Approaches to

Social Class
 Social status is usually defined in
terms of one or more of the
following socioeconomic variables:
 Family Income
 Occupational Status
 Educational Attainment
Targeting
Upscale
Customer
s
Percent Distribution of Five-Category
Social-Class Measure

SOCIAL CLASSES PERCENTAGE

Upper 4.3
Upper-middle 13.8
Middle 32.8
Working 32.3
Lower 16.8
Total percentage 100.0
 Social Class Measurement

 Subjective Measures: individuals are asked to

estimate their own social-class positions
 Reputational Measures: informants make
judgments concerning the social-class
membership of others within the community
 Objective Measures: individuals answer
specific socioeconomic questions and then are
categorized according to answers
Objective Measures
 Single-variable  Composite-
indexes variable
 Occupation indexes
 Education  Index of Status
 Income Characteristics
 Other Variables
 Socioeconomic
Status Score
Targetin
g
Upper-
class
Consum
ers
 A composite
measure of social
class that combines
occupation, source
Index of Status
of income (not
Characteristics
amount), house type
(ISC)
/ dwelling area into
a single weighted
index of social class
standing.
 A multivariable social
class measure used by
the United States
Bureau of the Census
Socioeconomic
that combines
Status Score
occupational status,
(SES) family income, and
educational attainment
into a single measure of
social class standing.
 Social-Class Profiles
THE UPPER-UPPER CLASS--COUNTRY CLUB
•Small number of well-established families
•Belong to best country clubs and sponsor major charity events
•Serve as trustees for local colleges and hospitals
•Prominent physicians and lawyers
•May be heads of major financial institutions, owners of major
long-established firms
•Accustomed to wealth, so do not spend money noticeably
THE LOWER-UPPER CLASS--NEW WEALTH
•Not quite accepted by the upper crust of society
•Represent “new money”
•Successful business executive
•Conspicuous users of their new wealth
 continued
THE UPPER-MIDDLE CLASS--ACHIEVING
PROFESSIONALS
•Have neither family status nor unusual wealth
•Career oriented
•Young, successful professionals, corporate managers, and
business owners
•Most are college graduates, many with advanced degrees
•Active in professional, community, and social activities
•Have a keen interest in obtaining the “better things in life”
•Their homes serve as symbols of their achievements
•Consumption is often conspicuous
•Very child oriented
 continued
THE LOWER-MIDDLE CLASS--FAITHFUL
FOLLOWERS
•Primary non-managerial white-collar workers and highly paid
blue-collar workers
•Want to achieve “respectability” and be accepted as good
citizens
•Want their children to be well behaved
•Tend to be churchgoers and are often involved in church-
sponsored activities
•Prefer a neat and clean appearance and tend to avoid faddish
or highly-styled clothing
•Constitute a major market for do-it-yourself products
 continued
THE UPPER-LOWER CLASS--SECURITY-MINDED
MAJORITY
•The largest social-class segment
•Solidly blue-collar
•Strive for security
•View work as a means to “buy” enjoyment
•Want children to behave properly
•High wage earners in this group may spend impulsively
•Interested in items that enhance leisure time (e.g., TV sets)
•Husbands typically have a strong “macho” self-image
•Males are sports fans, heavy smokers, beer drinkers
 continued
THE LOWER-LOWER CLASS--ROCK BOTTOM
•Poorly educated, unskilled laborers
•Often out of work
•Children are often poorly treated
•Tend to live a day-to-day existence
 A composite
segmentation
strategy that uses
both geographic
variables (zip codes,
Geodemographic
Clusters
neighborhoods) and
demographic
variables (e.g.,
income, occupation)
to identify target
markets.
MRI Affluent Market-
Segmentation Schema
 Affluent  Rural Affluent
Segments Segments
 Well-feathered  Suburban
Nests Transplants
 No Strings
 Equity-rich
Attached Suburban
Expatriates
 Nanny’s In  City Folks with
Charge Country Homes
 Two Careers 
Wealthy
 The Good Life Landowners
 What is Middle Class?
 The “middle” 50% of household
incomes - households earning between
$25,000 and $85,000
 Households made up of college-
educated adults who use computers,
and are involved in children’s education
 Lower-middle to middle-middle based
on income, education, and occupation
(this view does NOT include upper-
middle which is considered affluent)
What is Working Class?
 Households earning $34,000 or
less control more than 30% of the
total income in the U.S.
 These consumers tend to be more
brand loyal than wealthier
consumers
Consumer Behavior and
Social Class

 Advertising
 Market segmentation
 Distribution
 Product development