Cultures & Marketing

Customer Decision making Consumer Decision Making Process Need Recognition Information Search Evaluation of Alternatives Purchase Postpurchase Behavior Consumer Buying Decision / Involvement Routine Limited Executive Factors that Influence Consumer Buying Decisions Culture Social Individual Psychological

Components of culture

Culture The United States & other societies have a social class system. A social class is a group of people who are considered nearly equal in status or community esteem, who regularly socialize with one another, and share behavioral norms. Upper class (Capitalist Class / Upper Middle Class) 15% of country Middle Class (Middle Class / Working Class) 65% of country Lower Class (Working Poor / Underclass) 20% of country

Culture Upper Class is more likely to… Own house Own car Volunteer Be active in civic affairs Not smoke Go on vacation Go to concerts, sporting events, theatres, operas, museums, dance performances, art shows http://www.youtube.com/watch?v=jF06waZ1y_Y Most Americans define themselves as middle class when in reality 52% are below that income level. Education is the #1 factor in determining income levels

Cultural Influences Why do marketers care about social class and income? Social class determined medium to use for advertising Example: Middle class tends to care about local issues so advertising on local television is effective when targeting that income group. Target Upper class with print ads in business magazines Knowing what products best appeal to which social classes can help marketers determine where to best distribute their products Expensive products are more commonly sold in expensive areas

Social Influences Consumers seek out other people’s opinion to reduce their search and evaluation effort on products Customers interact socially with reference groups, opinion leaders, and family members to obtain product information and decision approval Reference Groups A group in society that influences the buying behavior of an individual Consumers may use products or brands to identify with or become a member of a group They observe how members of their reference group consume & they use the same criteria to make their own consumer decisions.

Social Influences References Groups Direct: Face-to-Face membership groups that touch people’s lives directly Primary Membership Groups: All groups with which people interact in an informal, face-to-face manner, such as family, friends, and co-workers. Secondary Membership Groups: Less consistent interaction done at a more formal level. These groups might include clubs, professional groups, & religious groups. Indirect Aspirational Reference Groups: Groups a person would like to join. A person conforms to the norms of that group. Example: Want to be elected to a political group, dress more conservatively like other politicians Teenagers want to fit in with certain groups they may die their hair and have piercings, tattoos. Nonaspirational Reference Groups: Dissociative groups, influence our behavior when we try to maintain distance from them.

Social Influences Why do reference groups matter? They serve as information sources and influence perceptions. They affect an individual’s aspiration levels. Their norms either constrain or stimulate consumer behavior. Example: Edgers  Influencers  Conformers  Passives A&F created Hollister as a result of reference groups

Social Influences Opinion Leaders: An individual who influences the opinion of others. These are the trend setters. Marketers influence them so that they will influence others to buy Opinion leaders are typically first to try a product Usually self-indulgent Willing to try new products (especially technology) Marketers sometimes try to create opinion leaders by hiring attractive females to model products or giving away product for free so that cool people have it Marketers look to blogs to determine interests. Teens are very open with thoughts online

Family Family is the most important social institution for many consumers Influence values, attitudes, self-concept, & buying behavior Example: A family that values health eats & acts much differently than those that don’t Socialization Process The passing down of cultural values and norms to children Children mimic their parents shopping habits Initiators: Suggest, initiate, or plant seed of purchase Influencers: Members of the family whose opinions are valued The Decision Maker: Family member who actually makes decision about purchase Purchaser: Person who actually exchanges money for product Consumer: Actual user of the product

Individual Influences Personal Characteristics also influence the buying decision Characteristics that are unique to each individual Gender Age Life-Cycle Stage Personality Self-Concept Lifestyle These characteristics are typically stable over a persons lifetime or change slowly

Individual Influences Gender Physiological differences between men & women result in different needs Buy different Health & Beauty Products Television programming has started targeting genders more Magazines Men & Women possess the same motivation when shopping Reasonable prices Merchandise quality Low-pressure purchasing environment Men & Women do not have the same opinion of shopping Women enjoy it; men usually don’t Men prefer simplicity. Less variety and more convenience . Men like to shop closer to home Women change their mind more & value variety Companies are recognizing the growth & influence of women and are targeting them more

Individual Influences Age Age indicates products you may buy Examples: Food, clothing, cars, & furniture are all products that change with age Age indicates what you read and watch you watch on television Family Life Cycle Orderly series of stages through which attitudes and behavioral tendencies Consumers attitude & behavioral tendencies evolve through maturity, experience, and changing income & status Marketers use phrases like “Young & Single” “Married with Children” Married parents spend more on health care, clothing, housing, food, cars, & gas

Individual Influences Personality Broad concept that can be thought of as a way of organizing & grouping how an individual typically reacts to situations. Personality combines psychological makeup & environmental forces Some Marketers feel personality is one of the least important factors in the buying process Some marketers believe it has a large influence on the types and brands of products purchased Examples: Car, clothes, & jewelry

Individual Influence Self Concept Lifestyle How a consumer perceives themselves Attitude, perception, beliefs, and self-evaluations Usually changes are gradual in this area Combines ideal self-image with real self-image We want our real self-image to match our ideal standards Consumers seldom buy products that jeopardize their self-image Consumers shop at stores that support their image Consumers buy cars that match their image Lifestyle A mode of living as identified by a persons activities, interests, & opinions Psychographics are more measurable than personality traits Gap uses lifestyle advertising to promote products