socio cultural factors in consumer decision processes
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Socio-cultural factors in consumer decision
processesJohn Sutton
Bite the wax tadpole
Eire 1994
Eat your fingers off
Marketing involves both technical and social elements.
◦ Technical elements are generally universally
◦ Social elements are market specific and display the cultural differences of a given society
The impact of socio-cultural factors on marketing is important in understanding consumer behaviour and planning appropriate market strategies
Socio-cultural Aspects of Marketing
The output of how consumers behave in decision making in buying goods or services. ◦ An important part of marketing:
Studies the reasons of consumers behaviour in their buying decisions Why, When, Where, What How
◦ Depends on different types of marketing stimuli (P’s)◦ and other factors
P.E.S.T - (Political, Economic, Socio-Cultural and Technological)
These all influence the consumer black box* to produce responses for making decision about selecting products, brand choice, price etc.
Consumer Buying Behaviour
*Keegan, Warren et al., “The Black Box Model of Consumer Behaviour,” Marketing (Englewod Cliffs, NJ: Prentice Hall, 1992), 193. * Lewin, Kurt (1951) Intention, Will and Need in: Rapaport, David (Ed); “Organization and Pathology of Thought: Selected Sources”; Columbia University Press (New York)
The cognitive process of selecting a course of action from multiple alternatives.◦ e.g. Shopping and deciding what to eat.
A psychological construct that implies a commitment to action / choice.
we can never "see" a decision BUT can conclude from observable behaviour when a decision has been made.
◦ Based on observable actions, we consider people have made a commitment to effect that action.
Decision Making
Analysing Consumer Buying Decisions
Generally three ways◦ Economic
Largely quantitative Assume rationality/near perfect
knowledge. Consumer theory /game theory
◦ Psychological models Qualitative -build on sociological
factors like cultural and family influences.
Concentrate on psychological and cognitive processes i.e. motivation and need recognition
◦ Consumer behaviour models Practical -used by marketers Blend economic and psychological
models.
Herbert Alexander Simon (1947 & 1957) claims:◦ Economic decision making a vain
attempt to be rational If a complete analysis is to be done-
decision immensely complex. Peoples' information processing ability
very limited. A perfectly rational economy
unrealistic. People only partially rational -
influenced by emotional and non-rational considerations
Administrative Behaviour: A Study of Decision-Making Processes in Administrative Organizations 1947 - 4th ed. in 1997, Models of Man. John Wiley. Presents mathematical models of human behaviour - 1957.
Cultural, social, personal and psychological factors have great influence on consumer buyer behaviour.
Human wants, perceptions, values, and behaviour are learned from society, family other institutions.
Influences On Consumer Buyer Behaviour
Socio-cultural Dimensions Customs, lifestyles, and values that
characterize a society ◦ include anything within the context of society that
has the potential to affect behaviour. Examples of socio-cultural variables.
◦ Population demographics, educational levels, norms and values, attitudes toward social responsibility...
"Collective programming of the mind which distinguishes the members of one category of people from another"
Hofstede, G. (1984 p.51). ). National cultures and corporate cultures. In L.A. Samovar & R.E. Porter (eds.), Communication between cultures. Belmont, CA: Wadsworth.
"Patterns relative to behaviour and the products of human action which may be inherited, that is, passed on from generation to generation independently of the biological genes"
Parson, T. (1949 p.8). ). Essays in sociological theory. Glencoe, IL.
"Learned and shared behaviour of a community of interacting human beings".
Useem, j., & Useem, R. (1963 p.169). Human organizations, 22(3).
Culture is...
Culture consists of beliefs, behaviours, objects, and other characteristics common to the members of a particular group or society.
◦ Through culture, people and groups define themselves, conform to society's shared values, and contribute to society.
includes many societal aspects: language, customs, values, norms, mores, rules, tools, technologies, products, organizations, and institutions.
This term institution refers to clusters of rules and cultural meanings associated with specific social activities.
Common institutions are the family, education, religion, work, and health care.
Culture is about...
Cheesemaker in a pickle over exports
Sterling's decline against the dollar and the euro means exports now offer hope to companies facing tough UK market conditions
UK Cheese maker in a pickle over exports
Friday 01 April 2011 Telegraph.co.uk
Socio-Cultural Aspects Marketers should Consider...
Aesthetics Education Language Law and Politics Material Culture Religion Social Organizations Technology Values and Attitudes
Terpstra, V. and Sarathy, R. (2000) International Marketing, 8th Edition, Dryden Press.
MACRO SOCIAL
MICRO SOCIAL
INDIVIDUAL
BIOLOGICAL
cultures, generationsgenders, social class
lifestyle
sub-cultures, tribesinteractions, practices
individuals, subjectscognition, motives,
the unconscious
basic needsfood
Levels of Observation of Consumption (adapted from Desjeux, 1998)
Analyze how needs fit within the stages of the consumer behaviour model. ◦ (Note: Discuss either the consumer or industrial
model, whichever applies to your product/service. Describe the use of 'consumer buying
decisions‘ in formulating marketing strategies.
Why will a Chinese consumer be interested in buying a General Motors Vehicle?