1. The Influence of Culture on Consumer Behavior
Chapter 11
The Influence of Culture on Consumer Behavior

2. Culture
The sum total of learned beliefs, values, and customs that serve to regulate the consumer behavior of members of a particular society.

3. Forms of Cultural Learning
Formal Learning
Informal Learning
Technical Learning

4. Learning and Advertising
It seems that advertising can influence all three forms of learning. It most influences informal learning by providing models.
The repetition of advertising messages creates and reinforces cultural beliefs and values.
Cultural meaning moves from the culturally-constituted world to consumer goods.

5. The learning of the culture of one’s own society.
Enculturation
The learning of the culture of one’s own society.

6. The learning of a new or “foreign” culture.
Acculturation
The learning of a new or “foreign” culture.

7. The Rokeach Value Survey Instrument
TERMINAL VALUES
INSTRMENTAL VALUES
A COMFORTABLE LIFE
AMBITIOUS
AN EXCITING LIFE
BROAD-MINDED
A WORLD AT PEACE
CAPABLE
EQUALITY
CHEERFUL
FREEDOM
CLEAN
HAPPINESS
COURAGEOUS
NATIONAL SECURITY
FORGIVING
PLEASURE
HELPFUL
SALVATION
HONEST
SOCIAL RECOGNITION
IMAGINATIVE
TRUE FRIENDSHIP
INDEPENDENT
WISDOM
INTELLECTUAL

8. American Core Values Achievement and success Activity
Efficiency and practicality
Progress
Material comfort
Individualism
Freedom
External conformity
Humanitarianism
Youthfulness
Fitness and health

9. Subcultures and Consumer Behavior
Chapter 12
Subcultures and Consumer Behavior

10. Subculture
A distinct cultural group that exists as an identifiable segment within a larger, more complex society.

11. Issues in Studying Hispanic Subcultures
Hispanic Consumer Behavior
Next biggest minority
Stronger preference for well-established brands
Prefer to shop at smaller stores
Some are shifting food shopping to non-ethnic American-style supermarkets
Youths are more fashion-conscious
Defining and Segmenting the Hispanic Market
Six ways of defining and segmenting the market

12. Major Racial Subcultures
The African-American Consumer
Largest racial minority in U.S. (= 13%)
Purchasing power estimated at $469 billion
Asian-American Consumers
Currently about 10 million in size
Estimated at 10.9 million in 2001
Gain of almost 50% since 1990

13. Asian-American Consumers
Where Are the Asian-Americans?
Largely urban
Asian-Americans As Consumers
Buying power of $110 billion annually (largest buying power per each Asian)
Brand loyal customers
Frequently male-oriented consumer decisions
Attracted to retailers who welcome Asian-American patronage

14. Major Subcultural Categories
EXAMPLES
Nationality
French, Puerto Rican, Korean
Religion
Catholic, Hindu, Jew
Geographic region
Southeastern, Midwestern, Eastern
Race
African-American, Caucasian, Asian-American
Age
Teens, Xers, middle age, elderly
Gender
Female, Male
Occupation
Engineer, cook, plumber
Social class
Lower, middle, upper

15. Age subgroupings of the population.
Age Subcultures
Age subgroupings of the population.

16. Issues in Understanding Older Consumer
Defining “Older” in Older Consumer
Segmenting the Elderly Market
Shopping Experiences of the Older Consumer
Perception of your age is key in defining older consumers

17. Issues in Understanding Sex as a Subculture
Sex Roles and Consumer Behavior
Masculine vs. Feminine Traits
The Working Woman
Segmentation Issues
Shopping Patterns

18. Cross-Cultural Consumer Behavior: An International Perspective
Chapter 13
Cross-Cultural Consumer Behavior: An International Perspective

19. The Imperative To Be Multinational
Global Trade Agreements EU
NAFTA
Acquiring Exposure to Other Cultures
Country-of-origin Effects

20. Cross-Cultural Consumer Analysis
Research to determine the extent to which consumers of two or more nations are similar in relation to specific consumption behavior.

21. Issues in Cross-Cultural Consumer Analysis
Similarities and Differences Among People
Time Effects
The Growing Global Middle Class
Acculturation
Research Techniques

22. World
Brands
Products that are manufactured, packaged, and positioned the same way regardless of the country in which they are sold.

23. Alternative Multinational Strategies: Global Versus Local
Favoring a “World Brand”
Adaptive Global Marketing
Framework for Assessing Multinational Strategies
Global
Local
Mixed

24. Consumer Influence and the Diffusion of Innovations
Chapter 14
Consumer Influence and the Diffusion of Innovations

25. Opinion Leader
A person who informally gives product information and advice to others.

26. Reasons for the Effectiveness of Opinion Leadership
Credibility
Positive and Negative Product Information
Information and Advice
Opinion Leadership Is Category-Specific
Opinion Leadership Is a Two-way Street

27. Motivations Behind Opinion Leadership
The Needs of Opinion Leaders
Self involvement
Social involvement
Product involvement
Message involvement
The Needs of Opinion Receivers
New-product or new usage information
Reduction of perceived risk
Reduction of search time
Receiving the approval of the opinion leader
Purchase Pals
Surrogate Buyers Versus Opinion Leaders

28. The Interpersonal Flow of Communication
Two-Step Flow
Views opinion leader as a middleman between the impersonal mass media and the majority of society
Multistep Flow
Takes into account the fact that information and influence often are two-way processes

29. Market Maven
Individuals whose influence stems from a general knowledge or market expertise that leads to an early awareness of new products and services.

30. Adoption Process
The stages through which an individual consumer passes in arriving at a decision to try (or not to try), to continue using (or discontinue using) a new product. The five stags of the traditional adoption process are awareness, interest, evaluation, trial, and adoption.

31. Defining Innovations Firm-oriented definitions
Product-oriented definitions
Market-oriented definitions
Consumer-oriented definitions

32. Adopter Categories
A sequence of categories that describes how early (or late) a consumer adopts a new product in relation to other adopters. The five typical adopter categories are innovators, early adopters, early majority, late majority, and laggards.

33. Figure Adopter Categories Percentage of Adopters by Category Sequence
Early
Adopters
13.5%
Laggards
16%
Early
Majority
34%
Late
Majority
34%
Innovators
2.5%
Percentage of Adopters by Category Sequence

34. Consumer Decision Making
Chapter 15
Consumer Decision Making

35. Levels of Consumer Decision Making
Extensive Problem Solving
Limited Problem Solving
Routinized Response Behavior

36. Extensive Problem Solving
A search by the consumer to establish the necessary product criteria to evaluate knowledgeably the most suitable product to fulfill a need.
Use of Heuristics in some cases to simplify = Use of a single criteria to simplify decision. E.g., brand, price, …

37. Limited Problem Solving
A limited search by a consumer for a product that will satisfy his or her basic criteria from among a selected group of brands.

38. Routinized Response Behavior
A habitual purchase response based on predetermined criteria.

39. Models of Consumers: Four Views of Consumer Decision Making
An Economic View
A Passive View
A Cognitive View
An Emotional View

40. A Model of Consumer Decision Making
INPUT
PROCESS
OUTPUT

41. Evaluation of Alternatives Postpurchase Behavior
The Buyer Decision Process
The Buyer Decision Making Process
This CTR corresponds to Figure 5-6 on p. 153 and relates to the material on pp
Teaching Tip: Consider asking students to describe some of their purchases decisions made at the beginning of the term and link them to steps in the process.
Need Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Postpurchase Behavior
Stages in the Buyer Decision Process
Need Recognition. Problems are recognized when people sense a difference between an actual state and some desired state. Problem recognition can be triggered by either internal or external stimuli.
Information Search. Consumers vary in the amount of information search they conduct. Information search may be a survey of information stored in memory or may be based upon information available externally. Search effort varies from heightened awareness corresponding to increased receptivity for relevant information to active information search modes where the person expends some energy to obtain information that is desired. External information vary in their informational and legitimizing characteristics. Riskier decisions usually elicit more search behavior than non-risky decisions.
Evaluation of Alternatives. Following information search, the person compares decisional alternatives available. Criterion for evaluation compares product attributes of the alternatives against degrees of importance each attribute has in meeting needs, beliefs about the product or brand's ability and utility, and an evaluation procedure that ranks the alternatives by preference that forms an intention to buy.
Purchase Decision. - The individual buys a product. Purchasing other than the intended product may be due to attitudes of others exerted after the evaluation of alternatives is completed or unexpected situational factors such as point of purchases promotions that affect the alternatives' ranking.
Post-purchase Behavior. This involves comparing the expected performance of the product against the perceived performance received. Cognitive dissonance describes the tendency to accentuate benefits and downplay shortcomings.

42. Need Recognition
The realization by the consumer that there is a difference between “what is” and “what should be.”

43. Prepurchase Search
A stage in the consumer decision-making process in which the consumer perceives a need and actively seeks out information concerning products that will help satisfy that need.

44. Evaluation of Alternatives
A stage in the consumer decision-making process in which the consumer appraises the benefits to be derived from each of the product alternatives being considered.

45. Issues in Alternative Evaluation
Evoked Set, inert + inept set of Brands
Criteria Used for Evaluating Brands
Consumer Decision Rules
Lifestyles as a Consumer Decision Strategy
Incomplete Information and Noncomparable Alternatives
Series of Decisions
Decision Rules and Marketing Strategy
Consumption Vision

46. Consumer Decision Rules
Compensatory
Noncompensatory
Conjunctive Decision Rule
Disjunctive Decision Rule
Lexicographic Rule
These decision rules are particularly helpful for Promotional purposes (more than the 3 other Ps).

47. Postpurchase Evaluation
An assessment of a product based on actual trial after purchase.

48. Relationship Marketing
Marketing aimed at creating strong, lasting relationships with a core group of customers by making them feel good about the company and by giving them some kind of personal connection with the business.
Very important to create trust and commitment between Organization and consumers (exchange goods for loyalty).