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Group Dynamics in Consumer Behavior

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0% found this document useful (0 votes)
59 views32 pages

Group Dynamics in Consumer Behavior

Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

5TH SEMESTER, CONSUMER BEHAVIOUR MODULE: 5

MODULE 5:
INFLUENCE OF GROUP DYNAMICS AND SOCIAL CLASS AND CULTURE

Meaning and nature of Group Dynamics


The term “group”, may be defined as two or more people who interact with each in order to
achieve mutually agreed upon goals; such goals may relate to an individual or to the many
who get together for the achievement of such goals. When we speak of consumer groups,
we refer to individuals or group of individuals or the family who have a need and desire
purchasing a good or service so as to fulfill the need and derive satisfaction.

Influence of Group on Consumer Behaviour


Classification of Groups Groups can be classified according to three classification criteria:
a. Nature of Membership
This refers to whether the membership is real or symbolic. Membership groups are those
wherein the head or leader of the group as also the key members of the group recognize
the membership of the individual who claims membership of this group, are known as
real groups.
In symbolic groups, there is no provision or procedure for granting membership and the
group leader or the key members may even deny membership for the individual. However,
the individual regards himself as a member of this group by unobtrusively adopting to the
group norms & values & identifies himself with the group. Example of membership groups
are- family, YMCA, Work Organisations, Rotary Club, Lions Club, etc. Examples of
symbolic groups are groups who emulate their heroes in movies, or celebrities, Fortune 500
Companies, etc.

b. Type of contact
This refers to how much interpersonal contact the groups have with each other. As the
group size increases the interpersonal contact frequency tends to decrease. Depending on
this characteristic, there are two categories of groups-
1. Primary groups-These are characterized by frequent interpersonal contact. The
members of primary groups consider the opinion or norms of the entire group as

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5TH SEMESTER, CONSUMER BEHAVIOUR MODULE: 5

important to follow. The examples are family, work organisations, business


associations, etc.
2. Secondary groups- Members in secondary groups have limited interpersonal
contact. The norms of secondary groups are considered as less binding or obligatory.
Examples:- distant relatives, occupational groups like doctors, lawyers,
accountants, theatre artists, etc.
3. Degree of Formality: Based on this there are two classifications. In a formal group
conduct and behaviour are highly codified. Examples - School/college, workplace,
religious groups, prison, etc. In informal groups, there are very few explicit rules
about the group behaviour. Examples:- friendship groups, volunteer groups,
community groups, family, relatives, etc.
4. Freedom of Choice: In this also there are two categories- Choice groups and
ascribed or assigned groups. Choice groups are those, where the individuals
voluntarily choose to join. Examples:- friendship groups, community groups,
volunteer groups, etc.
The ascribed or assigned groups are those wherein the membership is automatic for
someone who has the characteristic that defines the group. The examples are- family,
relatives, religious groups, prison, etc.
c. Attraction.
Desirability that membership in a given group has for the individual

REFERENCE GROUPS AND CONSUMER BEHAVIOUR


From a marketing perspective reference groups are groups that serve as frames of
reference for individuals in their purchase or consumption decisions. This concept is
very useful and relevant because there is no restriction on group size or membership nor
is there any requirement that the individuals identify with a tangible group. Reference
groups that influence general or broadly defined values or behaviour are called as
Normative Reference Groups. A child’s normative reference group is the immediate
family, which plays an important role in moulding the child’s general consumer values
and behaviour. For example, the child will learn which foods to select for good
nutrition, which are the appropriate dresses for which occasion, how and where to

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5TH SEMESTER, CONSUMER BEHAVIOUR MODULE: 5

shop for which product, etc. Reference groups that serve as benchmarks for specific
narrowly defined behaviour are called as Comparative Reference Groups. This could be
a neighboring family whose lifestyle appears to be worthy of imitation in certain
aspects like the maintenance of their garden, choice of home furnishings, types of
vacations taken by them, etc.

FACTORS THAT AFFECT REFERENCE GROUP INFLUENCE


The amounts of influence the reference groups have on an individual depend on the nature of
the individual and the product and also certain social factors. Some of these factors are
discussed here:
a. Information and Experience:
A consumer with first hand experience with a product or service, or the one who is
capable of getting the information easily about the product or service is less likely to be
influenced by any advice or example of others. On the other hand the consumer who has
little or no experience or the one who has no access to reliable & objective information on
the product or service is more likely to seek out the advice or example of others.
b. Credibility, Attractiveness and Power of the Reference Group:
When a consumer is concerned with obtaining the accurate information about the product
quality or performance, he is likely to get influenced by someone whom he/she considers as
trustworthy and knowledgeable.
Thus high credibility in the reference group is likely to influence the consumer more
effectively. When a consumer is primarily concerned with the acceptance or approval of the
person or group they like, or with whom they identify or those who offer them some status
or benefits, they are likely to adopt their product due to the attraction. When a consumer is
primarily concerned with the power that a person or group can exert over him/her, the
choice of product may be the one which conforms to the norms of the person or the group in
order to avoid ridicule or punishment. However unlike the groups, which affect the
consumer due to their credibility or attractiveness, the power groups are unlikely to change
the attitude of the consumer. Different reference groups may affect a consumer’s beliefs,
attitudes and behaviour at different points of time or under different circumstances. For
example the dress habit of a male may vary depending on the place and role. He may wear
conservative business suits in his work place while he may wear trendy and fashionable
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5TH SEMESTER, CONSUMER BEHAVIOUR MODULE: 5

dresses in a party with friends.

c. Conspicuousness of the Product:


The influence of the reference group on a purchase decision of a consumer varies
according to how visually or verbally conspicuous the product is to others. A visually
conspicuous product will is the one, which stands out and be noticed (such as a car or a
fashionable dress or jewelry); a verbally conspicuous product is the one, which may be
highly interesting, or it may be easily described to others (like a vacation in an expensive
location). Products, which are consumed conspicuously and status revealing are likely to
be purchased with an eye to the reactions of the reference group.
Privately consumed products like detergents, shampoos, etc., which are less conspicuous,
are unlikely to be purchased with the reference group in mind.
d. Reference Groups and Consumer Conformity:
There are different objectives of different marketers in utilizing the influence of the
reference groups. The market leaders are normally interested in the ability of the reference
groups to change consumer attitudes and behaviour, by encouraging consumer conformity.
In contrast marketers who are responsible for a new brand or a brand, which is not the
market leader, may wish to devise a strategy, which persuades consumers to be different
and not just follow the crowd when making purchase decisions. This is called non-
conformity appeal.

CONSUMER RELATED REFERENCE GROUPS


Consumers are influenced by a number of different types of groups that they come in
contact with or those they may observe. There are five specific groups, which are quite
representative of the different sets of such groups other than the family. The family is
possibly the most compelling reference group for consumer behaviour and will be covered in
the next section.
The other five groups are:
a. Friendship Groups
These are typically classified as informal groups since they are usually unstructured & lack
specific authority levels. In terms of relative influence, the friendship groups are the most
influential after the family on the behaviour of a consumer. Seeking & maintaining

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5TH SEMESTER, CONSUMER BEHAVIOUR MODULE: 5

friendship is a basic drive for most individuals. Friends provide companionship, security and
opportunity to discuss several problems, which an individual may be reluctant to discuss
with the family members.
Friendship is also a sign of maturity and independence, since this represents the breaking
away from the family and forming social ties with the outside world. The opinions and
preferences of friends are thus an important influence on the consumer in purchase decisions.
Marketers of many products recognise this power and frequently depict friendship situations
in their ads.

b. Shopping Groups
Two or more persons who shop together for any products or services or just to pass time
can be called a shopping group.
Such groups are often the offshoots of family or friendship groups and they are often
referred to as purchase pals. The motivation for shopping with a purchase pal may be just to
share time together & enjoy the company or it may be for helping to reduce the risk when
making an important decision. Or it may just be a defensive process feeling confident in a
collective decision. Many marketers follow what is known as in-home shopping party,
which typically consists of a group that gathers in a home of a friend to attend the “Party”
devoted to demonstrating & evaluating some specific products. This provides an
opportunity for the marketers to demonstrate the features of their products simultaneously
to a group of potential customers. Given the spirit & excitement of such parties
Tupperware generates a substantial portion of its business from such consumer parties.
c. Work Groups:
Consumer behaviour gets influenced by, both the formal work group and also the informal
friendship-work group. The formal work group consists of individuals who work together as
part of a team & spend a lot of time together. Hence they influence each other’s consumption
related attitudes and actions. Informal friendship-work groups consist of people who have
become friends as a result of working in the same firm. Recognizing that many marketers
who were directing their sales people to visit homes is now directing them to make sales
calls to offices during lunch breaks.
d. Virtual Groups of Communities
A virtual community, e-community or online community is a group of people that primarily

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5TH SEMESTER, CONSUMER BEHAVIOUR MODULE: 5

interact via some form of mechanism such as letters, telephone, email or internet rather
than face to face. If the mechanism is a computer network, it is called an online
community. Virtual and online communities have also become a supplemental form of
communication between people who know each other primarily in real life. There are many
virtual communities on the internet comprising of all age groups & also special interest
groups. One of them is Facebook.
.
e. Consumer Action groups.
Consumer organizations are advocacy groups that seek to protect people from corporate
abuse. Unsafe products, predatory lending, false advertising and pollution are all
examples of corporate abuse. Consumer organizations may operate via protests,
campaigning or lobbying. They may engage in single-issue advocacy (e.g., the British
Campaign for Reference Group Appeals: Appeals by celebrities and other similar reference
groups are used very effectively by ad agencies to communicate & influence their target
consumers.

GROUP APPEALS
There are many such types of group appeals, which are commonly used by marketers and
some ofthem are:
a. Celebrity Appeals,
Celebrities like movie stars, TV personalities, sports heroes, etc. are commonly used types
of reference group appeal. For many consumers, celebrities represent an idealization of life
that many of them imagine that they would love to live. One advantage of celebrity
endorsers is that famous people definitely hold the viewer’s attention. There are four types
of celebrity appeals used by marketers:
i. Testimonial: Based on personal usage, the celebrity attests to the quality of the product or
service.
ii. Endorsement: Celebrity lends his or her name and appears on behalf of a brand with
which he or she may not be an expert.
iii. Actor: Celebrity presents a product or service as part of a character in the ad story.
iv. Spokesperson: Celebrity represents the brand or company over an extended period of

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5TH SEMESTER, CONSUMER BEHAVIOUR MODULE: 5

time. These are also known as Brand Ambassadors. Celebrity credibility with the consumer
target is the most important element for the success of this strategy. Celebrity credibility
means both the celebrity’s expertise and trustworthiness. For example, when a celebrity
endorses a single brand the consumers are likely to perceive this brand in a highly favourable
light and get influenced for a greater intention to purchase it. In contrast if the celebrity
endorses a number of brands, his or her perceived credibility gets reduced because of the
apparent economic motivation underlying the celebrity’s endorsement. Marketers also fear
that if the celebrity endorsing their brand gets a negative publicity for any reason like some
scandal, downfall in their celebrity status, etc. this will negatively impact the sale of the
brand.
b. Expert Appeals
A real expert, who because of his or her occupation, special training or expertise, is in a
unique position to help the prospective consumer to evaluate the brand in comparison
with competitor brands, will do this type of reference group appeal. For example, an ad
for kitchen equipment may feature a famous chef.
c. Common Man Appeals
This approach uses the testimonials of satisfied customers. The advantage of the common
man appeal is that it demonstrates to prospective customers that someone just like them
uses and is satisfied with the brand. Many TV ads show a typical person or family solving a
problem by using the advertised brand. These commercials are known as ‘slice of life’ ads
because they focus on real life situations with which the viewer can identify.
d. Executive and Employee Appeals
Many companies use their top executives as spokespersons in consumer ads. It helps if
such executives are well known. Like celebrities, the executive spokesperson seems to be
admired by consumers because of their achievements and the status implicitly conferred on
business leaders.
e. Trade or Spokes-characters Appeals.
Familiar cartoon characters like Ninja Turtles, Mickey Mouse, R.K.Laxman’s Common Man
etc. and trade or spokes-characters like the one in Amul ads serve as quasi-celebrity
endorsers.

OPINION LEADERSHIP
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Opinion Leadership is the process by which one person (opinion leader) informally
influences the actions or attitudes of others, who may be opinion seekers or merely
opinion recipients. The definition of opinion leadership emphasizes on informal influence.
This informal flow of opinion related influence between two or more people is referred to
as word-of-mouth communication. The person is the opinion leader and may become an
opinion receiver. Individuals who actively seek information and advice about products are
often called opinion seekers. These opinion leaders are very often a part of the social
groups and also have social communication network. The biggest advantage of the
informal word-of-mouth communication is that it is informal and interpersonal in nature
and this takes place between people who are not directly associated with the commercial
selling source or the firm. Very often, we can see that the formal word-of-mouth
communication is more influential than mass advertising in determining which product or
brand is bought.

Characteristics of Opinion Leaders


Let us now take a look at the main characteristics of opinion leaders. Some of the main
features that all opinion leaders have are:
 Opinion leaders are more knowledgeable, and have a keen level of interest.
 More involved in the product category
 Have local friendship and social interaction
 Can disseminate information
 Have high credibility
 Have more self-confidence, are more sociable and cosmopolitan, can take risks

Opinion leaders are activated greatly to promote the products they have bought; may want to
influence neighbors and friends. They involve themselves, to confirm their own judgment.

They are younger, have more education, have a higher income, and higher occupational
status. They are exposed to media. See more movies and television. Also read information
magazines and technical publication devoted to the product category. Having greater
knowledge about the product, they can disseminate more and true information about the
products and their usage. Opinion leaders are therefore a case of study to marketers and their
strategies are evaluated and formed, keeping the opinion leaders and their roles in mind.
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1. Opinion leaders are perceived to be highly credible sources of product related


information. Opinion leaders are persons who are considered to be knowledgeable. They
often voice their opinionbased on first- hand information.
2. Opinion leaders are gregarious people and also have a lot of experience: Their
experience as a shopper and user sets them apart from other people. Since most of their
advice is based on firsthand experience, opinion receivers have a lot of confidence in their
advice. Besides, because of their gregarious nature, people enjoy interacting with them.
3. Opinion leaders usually provide unbiased information, i.e., they provide both
favorable and unfavorable information to the opinion seekers: This adds credibility to
them and opinion seekers have faith that they are receiving correct information.
4. Opinion leaders are both sources of information and advice
5. Opinion leaders have got greater exposure to the media, especially in their area of
leadership
6. Opinion leaders tend to be consumer innovators.
7. Opinion leaders have got some personal product specific characteristics like
personality traits, social status and demographic characteristics.

Opinion Leadership and the Firm’s Marketing Strategy


Marketers have long been aware of the power that opinion leadership exerts on consumers’
preferences and actual purchase behavior.
Many marketers look for an opportunity to encourage word-of-mouth communications
and other favorable informal conversations. New product designers take advantage of the
effectiveness of word-of-mouth communication by deliberately designing products to have
word-of-mouth potential. A new product should give customers something to talk about.
Proof of the power of word-of-mouth are the cases in which critics hate a movie and the
viewing public like it and tell their friends. In instances where informal word of mouth
does not spontaneously emerge from the uniqueness of the product or its marketing
strategy, some marketers have deliberately attempted to stimulate or to simulate opinion
leadership. There are different opinion leaders for different products. The marketer must
determine through research, experience or logic, the role an opinion leader plays in the
existing situation for a product or service.
Consumers talk to each other about their experiences and performance of the product. If

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5TH SEMESTER, CONSUMER BEHAVIOUR MODULE: 5

their experiences do not meet expectations then there is cause for concern, and the
marketer must take relevant steps to redress their complaints. This can be reduced by
utilizing the knowledge of opinion leaders, which are rather difficult to identify. Opinion
leaders are gregarious and tend to belong to clubs and associations. Some product
categories have professional opinion leaders who are also veryinfluential. Hairstylists serve
as opinion leaders for hair-care products. For healthcare products- pharmacists are
important opinion leaders. Computer professionals can give an opinion about the
purchase of personal computers. The idea is to identify the opinion leaders, and then
undertake a marketing research on them and formulate a marketing strategy. The marketing
research conducted on opinion leaders gives ideas of the likes and dislikes of the product
users and their categories.
Various tests should include the product use test, the pre-testing of the advertising copy,
the media preferred for customers to respond favorably to the firm’s marketing mix. The
sampling should be done from amongst the opinion leaders. In retailing and personnel
selling various techniques can be adopted to attract customers like, one meal extra for every
three meals or pay for two and take three or, a “fashion advisory board” can be constituted
in clothing stores.
In advertising, people of prominence and, owners can be used and their experiences and
satisfaction received can be projected through conversation and, by giving their impression
to the general public and non-owners of the product. Opinion leaders can be used effectively
in commercials to promote the product to the masses.

FAMILY
Family is used to denote a domestic group of people, or a number of domestic groups linked
through descent (demonstrated or stipulated) from a common ancestor, marriage or adoption.
A family may be defined specifically as a group of people affiliated by consanguinity,
affinity, and co-residence.

Classification of families
Families worldwide can be classified into four types:
a. Authoritarian Families,
b. Neglectful Families,

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5TH SEMESTER, CONSUMER BEHAVIOUR MODULE: 5

c. Democratic Families

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d. Permissive Families.
a. Authoritarian Families: The head of such families exercises strict authority on
children and children learn to obey their elders in all matters. Although culture of
obedience is considered as a virtue especially in Asian families, it does curb individuality
among children and consequently their influence on family buying decisions.
b. Neglectful Families: In such families, parents will be distant from their children and
these children are neglected, because of the priority given by the parents for their own
individual affairs. Single parent families invariably have this problem, because of the
time pressure on the single parent. Children exercise no influence on their parent’s
purchases in such families and are able to exercise relative autonomy in their own
purchases if they are given the resources.
c. Democratic Families: Every member in such families is given equal choice. Most family
matters are discussed among family members, especially those who would be affected by
the decisions. The final decision could be a joint one or it could be exercised by the family
head. Children are encouraged to develop selfexpression, autonomy and mature behaviour
in such families. Children share influence in decision making with other members of the
family.
d. Permissive Families: In such families the children are giving a lot of independence in
conducting their own affairs, especially in their adolescent years. Unlike the neglectful
parents, permissive parents watch children’s interests and then exercise freedom.

The Family:
The importance of the family or household unit in consumer behavior arises for two reasons:
1. Many products are purchased by a family unit.
2. Individuals’ buying decisions may be heavily influenced by other family members.
How families or households make purchase decisions depends on the roles of the various
family members in the purchase, consumption, and influence of products. Household
products like food and soaps may be purchased by a person but consumed by many, whereas
personal care items, such as cosmetics or shaving cream, might be purchased by an
individual family member for his or her own consumption. Homes and cars, on the other
hand, are often purchased by both spouses, perhaps with involvement from children or other
member of the extended family. Visits to shopping malls often involve multiple family
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members buying clothing and accessories, something with a heavy dose of influence by
family members-children may buy clothing paid for and approved of by parents, whereas
teenagers may influence the clothing purchase of a parent. Regardless of how many family
members are present when items are being purchased, the other family members play an
important role in the purchase. Just because of being mother for two young children, it is her
responsibility for buying food for the family and act as an individual in the market. It does
not mean that her decisions are not influenced by the preferences and power of other
family members. Although marketing communications are usually directed to individuals,
marketers should consider the consumption circumstances and the family structure before
deciding on specific communication or advertising methods to attract their segment.
A family is a group of two or more persons related by blood, marriage, or adoption who
reside together. The nuclear family is the immediate group of father, mother, and child(ren)
living together. The extended family is the nuclear family, plus other relatives, such as
grandparents, uncles and aunts, cousins, and parents-in-law. The family into which one is
born is called the family of orientation, whereas the one established by marriage is the
family of procreation. In a more dynamic sense, the individuals who constitute a family
might be described as members of the most basic social group who live together and
interact to satisfy their personal and mutual needs.

Functions of the Family


Four basic functions provided by the family are particularly relevant to a discussion of
consumer behavior. These include:
(1) Economic wellbeing,
(2) Emotional support,
(3) Suitable family lifestyles,
(4) Family member socialization.

(1) Economic Well-Being:


Providing financial means to its dependents is unquestionably a basic family function.
How the family divides its responsibilities for providing economic well-being has changed
considerably. The traditional roles of husband as economic provider and wife as homemaker
and child -rearer are still valid. The economic role of children has changed. Today, even if
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5TH SEMESTER, CONSUMER BEHAVIOUR MODULE: 5

some teenage children work, they rarely assist the family financially. Their parents are still
expected to provide for their needs. But some of them get enough pocket-money to decide
their consumption of discretionary items.
(2) Emotional Support:
The provision of emotional nourishment (including love, affection, and intimacy) to its
members is an important basic function of the contemporary family. In fulfilling this
function, the family provides support and encouragement and assists its members in
coping with personal or social problems. To make it easier for working parents to show
their love affection and support for their children, greeting-card companies have been
marketing cards especially for parent to give to their children. For instance, in most
communities, many educational and psychological centers are available that are designed
to assist parents who want to help their children improve their learning and communication
skills, or generally, better adjust to their environments.
(3) Suitable Family Lifestyles:
Another important family function in terms of consumer behavior is the establishment of a
suitable lifestyle for the family. Family lifestyle commitments, including the allocation of
time, greatly influence consumption patterns. For example, the increase in the number of
married women working outside the home has reduced the time they have available for
household chores, and has created a market for convenience products and fast-food
restaurants. Also, with both parents working, an increased emphasis is placed on the
notion of “quality time”, rather than the “quantity of time” spent with children and other
family members. Realizing the scarcity of quality family time, hotels feature a variety of
weekend packages targeted to couples and their children.
(4) Socialization of Children and Other Family Members:
The socialization of family members, especially young children, is a central family function.
In large part, this process consists of imparting to children the basic value and modes of
behavior consistent with the culture. These generally include moral and religious principles,
interpersonal skills, dress and grooming standard, appropriate manners and speech, and the
selection of suitable educational and occupational or career goals. Socialization skills
(manners, goals, values, and other qualities) are imparted to a child directly through instruction
and indirectly through observation of the behavior of parents and older siblings. Marketers

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often target parents looking for assistance in the task of socializing preadolescent children.

FAMILY DECISION-MAKING

Family consumption decisions involve at least five definable roles, which may be assumed
by spouses, children, or other members of a household. Multiple roles and multiple actors
are normal. Marketers need to communicate with consumers assuming each of these roles,
remembering that different family members will assume different roles depending on the
situation and product. Children, for example, are users of cereals, toys, clothing, and many
other products but may not be the buyers. One or both of the parents may be the decider and
the buyer, although the children may be important as influencers and users.
Family Roles
For a family to function as a cohesive unit, roles or tasks-such as doing the laundry,
preparing meals, setting the dinner table, taking out the garbage, walking the dog must be
carried out by one or more family members. In our dynamic society, family-related roles
are constantly changing.

Key Family Consumption Roles


The roles played by the different family members will vary from product to product. While
shopping in the market, a housewife comes across a new variety of juice that she buys for
the family. Her decision to purchase does not directly involve the influence of other family
members.
She is the decider, buyer; but she may or may not be the preparer and is not the only user. In
case of products such as television, car, music systems, furniture or any other product
which is likely to be used by some or all the family members, the purchase decision is likely
to be joint or group decision.

There are eight distinct roles in the family decision-making process. A look at these roles
provides further insight into how family members act in their various consumption-
related roles:
1. Influencers: Those family members who provide information and advice and thus
influence the purchase. The housewife tells her family about the new eatery that has
opened in the neighborhood and her favorable description about it influences her husband

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and teenaged children.


2. Gatekeepers: Those family members who control the flow of information about a
product/service thus influencing the decisions of other family members. The teenage son,
who wants a racing bicycle, may withhold from his father much of the relevant information
on all brands except the one that he fancies, thereby influencing his father’s decision in
favour of his preferred brand.
3. Deciders: Family members who have the power to unilaterally or jointly decide whether
or not to buy a product or service. The husband and wife may jointly decide about the
purchase of a new refrigerator.

4. Buyers: Those family members who actually buy a particular product or service. A
housewife may be the person who actually buys all the foodstuffs, rations and toiletries,
which are consumed byall the family members.
5. Preparers: Those family members who transform or prepare the product into the form in
which it is actually consumed. The housewife may prepare the family meal using raw
vegetables, lentils, spices, oil and other ingredients.
6. Users: Those family members who use or consume a particular product or service.
All familymembers may use the car, watch the television, and listen to the stereo music
system
7. Maintainers: Family member(s) who service or repair the product so that it will provide
continued satisfaction.
8. Disposers: Family member(s) who initiate or carry out the disposal or
discontinuation of a particular product or service.

CHILDREN AS DECISION-MAKERS

Children as any parent knows, young children attempt to influence family decisions as soon
as they possess the basic communication skills needed to interact with other family
members (“Buy me a cookie”, “I want a Barbie doll”, “Let’s eat at McDonald’s”.). Older
children are likely to participate more directly in family consumption activities. In a study
of children aged 6 to 14, more than half indicated that they influenced family purchase
decisions, such as choice of vacations, stereo equipment, and home computers. Other
research indicates that children play relatively important roles when it comes to initiating

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interest in a new computer and in the actual purchase decision.


The parent-child relationship, as it relates to consumer behavior, can be viewed as an
influence versus yield situation. Specifically, children attempt to influence their parents to
make a purchase (to yield). In observing shoppers in a supermarket, it is quite evident that
children attempt to influence their parents to make purchases of special interest (e.g., laundry
detergents) for which they see ads on TV. Teenagers and Post teens- A significant number of
teenagers have discretionary spending in terms of spending patterns. High school students
(those in grades 7 through 12) are most interested in sports and fitness. Boys between the
ages of 16 and 19 spend most of their money on movies, dating, entertainment, vehicle
expenses, and clothing, while girls of that age spend most of their money on clothing,
cosmetics, and fragrances. The teen market can be segmented in terms of lifestyle groups.

SOCIAL CLASS
Social Class is the relative standing of members of a society.

FACTORS SHOWING SOCIAL CLASS DIFFERENCES


1. Authority
2. Income
3. Occupations and Achievement
4. Education

CHARACTERISTICS OF SOCIAL CLASSES


1. Persons within a given social class tend to behave more alike
2. Social class is hierarchical
3. Social class is not measured by a single variable but is measured as a weighted function
of one’s occupation, income, wealth, education, status, prestige, etc.
4. Social class is continuous rather than concrete, with individuals able to move into a
higher socialclass or drop into a lower class.

PROMINENT SOCIAL CLASSES


Upper-Uppers/Niche class
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Upper-Uppers are the social elite who live on inherited wealth and have well known
families. They maintain more than one home and send their children to the best schools.
They are in the market for jewelry, antiques, homes, and foreign vacations. While small as
group they serve as a reference group to others to the extent that other social classes imitate
their consumption decisions.
Lower Uppers
Lower Uppers are persons who have earned high income or wealth through exceptional
ability in their profession or business. They usually come from the middle-class. They tend
to be active in social and civic affairs and seek to buy the symbols of social status for
themselves and their children, such as expensive cars, homes and schooling. Their
ambition is to be accepted n the upper-upper status, a status that is more likely to be
achieved by their children than themselves
Upper Middles
Upper Middles possess neither family status nor unusual wealth. The primarily concerned
with “career”. They have attained positions as professionals, independent businesspersons,
and corporate managers. They believe in education and want their children to develop
professional or administrative skills so that they will not drop into the lower stratum. They
are civic minded and are a quality market for good clothes, homes, furniture and
appliances.
Middle class
The middle class is average paid white and blue-collar workers who try to do the proper things.
Often they will buy products to “keep up with the trends”. The middle class believes in
spending more money on “worth-while experiences” for their children and aiming them
towards professional colleges.

Cultures
Culture generally refers to patterns of human activity and the symbolic structures that give
such activity significant importance. Different definitions of "culture" reflect different
theoretical bases for understanding, or criteria for evaluating, human activity. Culture is
manifested in music, literature, painting and sculpture, theater and film. Culture refers not
only to consumption of goods, but to the general processes which produce such goods and
give them meaning, and to the social relationships and practices in which such objects and
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processes become embedded. Culture thus includes technology, art, science, as well as
moral systems.
Culture has been called "the way of life for an entire society." As such, it includes codes of
manners, dress, language, religion, rituals, and norms of behavior such as law and
morality, and systems of belief. Various definitions of culture reflect differing theories for
understanding, or criteria for evaluating, human activity. Culture has significant influence on
consumer behaviour and in this unit we shall be discussing ‘Culture” from the perspective
of consumer behaviour.

Culture is defined as the sum total of learned beliefs, values and customs that serve to
direct the consumer behaviour of members of a particular society. Culture is everything a
person learns & shares with members of society like- ideas, norms, morals, values,
knowledge, skills, technology, tools, material objects & behaviour. Culture excludes
genetically inherited instincts since these are not learned as also the individual behaviours,
norms, knowledge, etc. which are not shared with other members of the society.

Elements of Culture
There are various elements of each culture & each individual learns the culture by
acquiring the knowledge of all these elements. Some of such elements of culture are:
a. Values: Value is a concept that describes the beliefs of an individual in a culture. Values
are conceptions of what is good and desirable versus what is bad and undesirable. A set of
values may be placed into the notion of a value system. Values are considered subjective and
vary across people and cultures. Types of values include ethical/moral values,
doctrinal/ideological (political, religious) values, social values, and aesthetic values.
b. Norms: Norms are rules of behaviour. A norm, or social norm, is a rule that is socially
enforced. Social sanctioning is what distinguishes norms from other cultural products or
social constructions such as meaning and values. Norms and normlessness are thought to
affect a wide variety of human behavior.
c. Rituals: A ritual is a set of actions, often thought to have symbolic value, the
performance of which is usually advised by a religion or by the traditions of a
community. A ritual may be performed at regular intervals, or on specific occasions, or at
the discretion of individuals or communities. It may be performed by a single individual,
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by a group, or by the entire community; in arbitrary places, or in places especially reserved


for it; either in public, in private, or before specific people. A ritual may be restricted to a
certain subset of the community.
The purposes of rituals are varied; they include compliance with religious obligations or
ideals, satisfaction of spiritual or emotional needs of the practitioners, strengthening of social
bonds, demonstration of respect or submission, stating one's affiliation, obtaining social
acceptance or approval for some event — or, sometimes, just for the pleasure of the ritual
itself.
d. Myths: Myths are stories that express some key values of society. A myth is generally a
sacred story concerning the origins of the world or how the world and the creatures in it
came to have their present form.
The active beings in myths are generally gods and heroes. Myths often are said to take
place before recorded history begins. In saying that a myth is a sacred narrative, what is
meant is that a myth is believed to be true by people who attach religious or spiritual
significance to it.

CHARACTERISTICS OF CULTURE:
The concept of culture has the following characteristics:
a. Culture is learnt: Culture is not imbibed from birth. Hence, instinctive behaviour,
which is possessed by the individual since birth, is not culture. Thus, the act of crying,
laughing, etc. is not culture. However, knowing when it is proper or improper to cry or
laugh is culture since it is learnt subsequent to birth.
b. Culture regulates society: The individual learns the norms and standards of behaviour
and also the acceptable deviations from standards as a part of culture. All the people in the
society know the rules to live by which is what regulates society.
c. Culture makes living more efficient: When individuals encounter new people and new
situations within the same culture the responses are standard and there is no fresh learning
required every time. This brings in efficiency in living since everyone in the same culture is
sharing the culture.
d. Culture is adaptive: Culture is a human response to the environment and as the
environment undergoes changes, culture will adapt itself to the new environmental
characteristics. Adaptation is essential for survival. An Indian company doing business in
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China will have to adapt its ways to the culture in China as otherwise it cannot survive
there.
e. Culture is environmental: Like environment, the culture is all pervasive and all
around each individual at all times. We take culture for granted until something unexpected
happens. When some cultural norm is broken, then only our attention is drawn to the
existence of culture, which is otherwise dormant.

Subcultures

In sociology and cultural studies, a subculture is a set of people with a set of behaviors and
beliefs. If the subculture is characterized by a systematic opposition to the dominant culture,
then it may be described as a counterculture. It is important to mention that there is a subtle
difference between a counterculture and a subculture. A subculture is at least somewhat
integrated component of a society, though clearly separated, while a counterculture is actively
and openly opposed to many of the characteristics of a society.
Subcultures can be distinctive because of the age, race, ethnicity, class, and/or gender. The
qualities that determine a subculture as distinct may be aesthetic, religious, political, sexual or
a combination of these factors. Members of a subculture will often signal their membership
through a distinctive and symbolic use of style. Style includes fashions and mannerisms.
Therefore, the study of subculture often consists of the study of the symbolism attached to
clothing, music and other visible affectations by members of the subculture, and also the
ways in which these same symbols are interpreted by members of the dominant culture.
The cultural elements of a society or nation is a composite of two distinct elements-
1. The unique beliefs, values and customs subscribed to by the members of specific sub
cultures; and
2. The central or core cultural themes that are shared by most of the population regardless of
specific subcultures.
Thus cultures can be subdivided in many ways. One is in terms of regional or geographical
sub- segments. For example, the South Indian culture is a sub culture in the overall Indian
culture.
Similarly Punjabi culture can be a subculture of the North Indian culture. There could be
subcultures categorised on the basis of original nationality, race, age, gender, religion,
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occupation social class, etc. Sub cultural analysis enables the marketers to focus on sizable
and natural market segments and these subcultures for relevant units of analysis for market
research.
Change in subcultures:
As such it may be difficult to identify subcultures, because their style (particularly clothing
and music) may often be adopted by main culture, for commercial purposes, as businesses
will often seek to capitalize on the attraction of the subculture in search of new things, which
remains valuable in the selling of any product. This process of cultural newness may often
result in the evolution of the subculture, as its members adopt new styles, which appear
different from main culture. The subcultures may also adapt to the main culture in order to
merge with the mainstream.
□ Sub cultures in India
The Indian sub cultures have been commonly believed to be due to environmental,
historical and cultural causes. These sub cultures are described as Dravidian South, Indo-
Aryan in North, Mixture of Mongoloid with Aryan in Northeast, etc. Many of these factors
include:

1. Environmental circumstances like- geography, crops and foods, clothing, housing


resource availability, weather, coastal vs. interiors, etc. affecting survival
requirements.
2. Historical, cultural, religious, travel, trade, political developments, affecting social norms
and practices. These events and behaviours affecting consumption may be seen
conspicuously from the number of festivals and religious norms at one end, to differences in
clothing, food and other items ofconsumption necessitated by the topography. India is a true
melting pot of the world in the context of cultural assimilation of religion, norms, values,
social codes and social structure. There could be some subcultures out of this melting pot,
which can be of interest for the marketers:

a. Religious Subcultures: The modern integrated Indian entity has been in existence only

for a few decades and the integrated and homogeneous cultural entity has evolved over
nearly two millennia. There has been a change in the fairly uniform Vedic and Dravidian
cultures over the centuries. Religions with traditions developed over two millennia are
seen to coexist and assumed to interact and influence one another. Yet the norms for each
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religion’s culture are fairly codified and distinct. There are also extensions of this like
caste and in some cases tribal origins that lead to cultural and social structures, norms of
activity, lifestyle, consumption patterns, etc.
b. Regional Sub cultures: India has, in the past millennium, seen more waves of invasion

ending in cultural integration and metamorphosis, than any other country in the world.
Each region has its own history of such cultural and norm evolving events. The south and
east had their own share of independent medieval overseas interactions; but have been
relatively more stable having been isolated from the northwestern invasions of India.
c. Urban Vs Rural context: There also exists the quasi-cultural divide and uniquely

defining commonality in the urban vs rural context. Cities have been the first targets of
development for centuries. They present a more cosmopolitan and less codified set of
norms and habits, compared to rural areas. The rural areas have retained more of the
prevailing cultures than the cities. They have also established a socially regulated system
of more strictly adhered to norms even for consumption of goods and services. This of
course varies from region to region and also depends on the proximity to a city. The
presence of TV has been held more responsible for changing social codes for dressing &
interaction than any other social movement in the interior villages.

Indian Core Values


Core Value may vary in urban and rural context. The values are basically same. Urban
areas’ changing lifestyle is influenced by westernisation and diffusion of technology.
Young couples working in high-tech firms lead western lifestyle (cars, fast food,
weekend holidays) but still hold on to certain practice, religious beliefs and customs that
are totally ethnic in nature. Core values of a society are adopted by a significant number of
people, are enduring or followed by people for a long time and enable marketers to
understand behaviour of customers.
Family Orientation: Family for an average Indian not only includes one’s own family
but also the extended family – parents, siblings, grand-parents etc. The male consumer is
the chief earner. He supports the entire joint family. There is a crunch on the disposable
income, so he always looks for value-based brands at a lower price point. FMCG are
important – they mix brand and products from unorganised sector as well.

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Consumer may down-trade or buy less expensive brands after using high-priced ones.
Down-trading occurs when consumer response to price increase in product categories and
also when cost of essential services like electricity, water or cooking fuel goes up. So,
Unilever has a number of price points in almost all its product lines.
Savings Orientation: Savings is still an inherent value of Indians. Given uncertainly in
income generation as a majority depends on agriculture. People in urban areas depend on
salaries. Community medical services or assured pension after retirement like in western
countries is not found here. So, people save for old age, education for children, weddings
etc. Saving for old age- saving plan, so there are ads for pension plans.
Consumers fall back on savings for festivity, weddings etc. Nowadays durable products like
bicycles, watches, TVs are entry level purchases for average Indian. Savings pervades all
sections of the society. Consumers belonging to all socioeconomic classes are interested in
jewelry. Jewelry is most associated with women and weddings. Family with girl children
saves for jewelry. They buy jewelry from family jewelers associated for generations.
Tanishq and Carbon target up-market niche segment.
Festivities- Different states have different festivals. Marketers offer sales promotional
programmes during festivals in different states. A number of consumers wait for such
offers. Tanishq introduced Golden Rakhis. Shopping as a ritual: Shopping is a ritual of
sorts among both urban and rural Indians. Purchases vary among geographical territories.
Retail outlets may vary from roadside to shopping mall like Big Bazaar, Shoppers Stop.
Housewives shop regularly and bargaining is a part of culture. So, sales promotion
strategy is adopted throughout the year. Members of family visit outlets and compare prices.
Rural Indian scenario – Flea market every week.
Mythology: Stories, scriptures and music are inherent part of Indian culture. Toys,
artefacts, souvenirs are marketed in tourist areas. Tourism has vast potential for which
Govt. provides support. However, only upper social crust has taken to tourism. Local toy
manufacturers cater to specific markets, a large chunk in unorganised sector. Food habits-
Hot spicy food. Very strong link with culture, difficult to change. The ‘chai- biscuit’ is a
part of Indian culture. Foreign food are not part of daily diet. Maggi and bread have been
widely accepted but not much else.

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Core Value Affects Marketing


Core Values are basic to understanding the behaviour of people and can be helpful to
marketers in several ways. Core values define how products are used in a society. Not
only do core values determine what foods should be eaten, but they also determine with
what other foods they are appropriate, how they are prepared and the time of the to eat
them.
Core Values provide positive and negative valences for brands and communications
programme. Marketers may use celebrity athletes or musicians such as Tara Lipinski or
Elton John to achieve positive valences to their brands, a successful strategy unless the
image of the celebrity changes negatively.
Core values define acceptable market relationships. A firm’s native culture (and values)
influences its business strategies, tactics and practices in the global marketplace, and it
affects international buying practices as well. For example, in Japan, a company will often
do business with small suppliers or distribution companies owned by former employees,
with whom they have a relationship or similar cultural backgrounds. But in the United
States, where the culture favours impersonal relationships and equality, it may be more
difficult to develop the trust needed for effective relationship marketing. Core values
define ethical behaviour. The ethics of a particular firm are influenced by the values or
ethics of the individuals it employs, just as the ethical climate of a country is influenced
by the core values of its individuals and institutions.

Dimensions of cross cultural values


Under the above broad classifications there can be a number of dimensions of culture related
values:
a. Small vs. Large Power Distance – the extent to which the less powerful members of

institutions and organizations expect and accept that power is distributed unequally. Small
power distance (e.g. Austria, Denmark), expect and accept power relations that are more
consultative or democratic. People relate to one another more as equals regardless of formal
positions. Subordinates are more comfortable with and demand the right to contribute to
and critique the decision making of those in power. Large power distance (e.g. India), less
powerful accepts power relations that are more autocratic and paternalistic. Subordinates
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acknowledge the power of others simply based on where they are situated in certain
formal, hierarchical positions.
b. Individualism vs. collectivism – individualism is contrasted with collectivism, and

refers to the extent to which people are expected to stand up for themselves and to choose
their own affiliations, or alternatively act predominantly as a member of a life-long group
or organisation. Latin American cultures rank among the lowest in this category, while the
U.S.A. is one of the most individualistic cultures.
c. Masculinity vs. femininity – refers to the value placed on traditionally male or female

values. Masculine cultures value competitiveness, assertiveness, ambition, and the


accumulation of wealth and material possessions, whereas feminine cultures place more
value on relationships and quality of life. Japan is considered by Hofstede to be the most
"masculine" culture, Sweden the most "feminine." Anglo cultures are moderately
masculine. Because of the taboo on sexuality in many cultures, particularly masculine
ones, and because of the obvious gender generalizations implied by the Hofstede's
terminology, this dimension is often renamed by users of Hofstede's work, e.g. to Quantity
of Life vs. Quality of Life.
d. Uncertainty avoidance – reflects the extent to which a society attempts to cope with

anxiety by minimizing uncertainty. Cultures that scored high in uncertainty avoidance


prefer rules (e.g. about religion and food) and structured circumstances, and employees
tend to remain longer with their present employer. Mediterranean cultures and Japan rank
the highest in this category. This has a strong influence on entrepreneurship, economic
development and also on new product acceptance.
e. Long vs. short term orientation – describes a society's "time horizon," or the

importance attached to the future versus the past and present. In long term oriented
societies, pragmatism, thrift and perseverance are valued more; in short term oriented
societies, normative statements, respect for tradition and reciprocation of gifts and favors
are valued more. China and Japan and the Asian tigers score especially high here, with
Western nations scoring rather low and man of the less developed nations very low;
China scored highest and Pakistan lowest.
f. Youth/Age: To what extent the primary activities of a family will focus on the needs of

the children? What role is played by the children play in family decisions? Are prestige,

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rank and important social roles assigned to younger members of the family? These will
determine whether the culture is youth oriented. American society is clearly youth
oriented. There is now evidence that the Asian countries are also becoming increasingly
youth oriented.
g. Extended/Limited Family: Families have a lifelong effect on all individuals. The rights

and obligations of family members vary widely among different cultures. Cultures also
differ widely in the obligations one family member owes to other family members at
various stages of life. There is wide variation on who is considered as a family member. In
the US, the family definition is fairly narrow and it is less important than in many other
cultures. Strong obligations are felt for only immediate family members like parents,
brothers, sisters and children. This sense of obligation also reduces after one marries. In
many other cultures including those in Asia, the role of the family is much stronger. The
family definition and the obligations extend to cousins, nieces, nephews, grandparents and
even ancestors. In such cultures consumer choices are governed by a focus on family to a
significant extent for purchase of even FMCG products, which are commonly shared by
family members. Priority of family over self as a value has many implications. There is
generally a focus on the needs of the child over those of others. Education and career needs
of children are given a lot of importance. Traditional joint families are still seen in India &
are a very organized phenomenon as far as household consumption & resource pooling
goes.

h. Cleanliness: Is cleanliness an important factor or is it a minor matter? Are homes,

offices and public spaces expected to be very clean beyond reasonable health
requirements? In the US, a very high value is placed on cleanliness and people from
other cultures consider Americans to be paranoid about personal hygiene. On the other
extreme, in many cultures like in China, lack of basic hygiene still causes significant
health problems.
i. Tradition/Change: Is tradition valued simply for the sake of tradition? How are the

consumers embracing change? Are they enthusiastic? These questions have important
effects on consumer behaviour. For example, in Britain, three- fourths of the population
generally claims to be highly brand loyal compared to only half the population in France
and Germany. The British ads hence are more likely to emphasise tradition and history.
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j. Problem solving or Fatalistic: People in some cultures are encouraged to react to

obstacles and disasters as challenges to be overcome whereas in some other cultures they
adopt- “What will be will be” attitude (fatalistic). As consumers also such fatalistic
attitude makes them accept any defects in products as something to live with rather than
complain.
k. Nature and environment: Some cultures respect and revere nature and environment,

whereas some other cultures want to tame and conquer nature. Most of the northern
European countries place a high value on environment and hence packaging and other
environmental regulations are very stringent in these countries. These attitudes will affect
the consumers’ purchase decisions, consumption practices & recycling efforts.
l. Active/passive: Are physically active approaches to work and play considered important

or passive lifestyle encouraged? Americans are more prone to engage in action-oriented


approach to problems. Japanese on the contrary are quite passive in comparison. This
attitude will affect the advertising themes and formats.
m. Sensual Gratification / Abstinence: Some cultures frown upon the desire to pamper

oneself, to satisfy one’s desires for food, drink or sex beyond the minimum requirement.
Muslim countries are extremely conservative in this value. In contrast Brazilian and
European cultures encourage sensual gratification as something normal. Hence ads with
nudity and blatant appeals for sensual gratification may be appealing in some cultures this
may in fact be frowned upon in some other cultures.
n. Material/Non-material: There are two types of materialismi. Instrumental Materialism:

This is the acquisition of things to enable one to do something. Examples are that of
purchase of automobiles for transportation. ii. Terminal Materialism: This is the acquisition
of items for the sake of owning the item itself. Just the owning of these items give the
pleasure rather than what the item does for them. There are marked differences in the
relative emphasis on these two types of materialisms in different cultures.
o. Hard Work/Leisure: Some cultures value work for itself, independent of external
rewards and in some other cultures work is only a means to an end.

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In many Latin American countries work is considered as a necessary evil whereas in much
of Europe work is considered as essential for a full life. Labour saving devises and instant
foods have not been very successful in countries like Switzerland for this reason.
p. Religious/Secular: In many cultures many of the daily activities are activities are

determined by religious doctrine. U.S is relatively secular. Many Islamic countries and
Catholic countries are very much religiously oriented. Understanding the extent and type
of religious influences operating in a culture is essential for effectively designing the
marketing mix.

CROSS CULTURAL MARKETING ANALYSIS


Today, various companies are going for cross cultural marketing or marketing in a big
way. The reasons behind such a move are
(1) pushed by poor opportunities in the domestic market
(2) pulled by better or superior opportunities abroad. These are certain characteristic features

of a firm going global:


i. High market share in the domestic market

ii. Advantageous economies of scale

iii. Access to marketing/ manufacturing and capability to absorb huge losses

iv. Product/ technology cloud

A marketer will have to consider various dimensions of the global market while
formulating a suitable marketing strategy. Studying the target market i.e., determine the
wide geographical area to be covered, and the economic environment comprising namely
its products and service requirements, income level, standard of living, employment level,
etc. Understanding the market position in terms of whether it is a growing market, the
market condition, relationship between the demand and supply factors, the level of
competition etc. What is the nature of the product – is the product a new or an innovative
product? If so how to position it so as to get a price advantage along with increasing
demand? Along with the above factors, certain equally important aspects have also to be
considered.
Firstly, the environmental factors. Nations differ in their political legal environment. So the
marketers have to determine – how in the nation’s attitude towards international
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marketing? (encouraging or hostile), has the nation got a stable government who will
continue for a longer period in the future? Has the foreign country got an efficient
bureaucratic framework for assisting foreign companies? Has the country got a stable or
fluctuating exchange rate? What is the government’s attitude towards monetary regulation?
These are other vital aspects to be considered by the marketer. Each or individual firm’s
corporate orientation with regard to effective delegation of authority and relationship
between the Head office and the subsidiary office also play a role as deciding factors,
before a firm’s marketing manager takes a decision to enter the foreign markets.
Before entering the global market, the company must determine its international marketing
objectives and policies. The firm will have to work out the objectives, which will be:
(a) To determine how consumers in two or more societies are similar/ different and

devise suitable appropriate strategies.


(b) Devise individualized marketing strategy if cultural beliefs, values and customs of a

specific country are different.

Basic areas to be understood for cross cultural marketing:


The basic areas where research is to be done by the company in cross cultural analysis are:
(1) Language and meaning: Language is one of the major aspects of culture.

Research into the country’s language – its meanings and interpretations will help the
marketer to have a better understanding of the cultural variances and nuances and respond
in a suitable form of communication, easily understood by the consumer.

(2) Differences in market segmentation opportunities Even if a company has

superior product in terms of quality, cost, service, technology, clout, financial muscle and
brand equity in the domestic market, understanding the marketing opportunities in the
global market and doing a suitable market segmentation will help the firm to do well
globally.
(3) Differences in the criteria for evaluating products and services As mentioned

above, India has tremendous scope in the Textile and readymade garment category. This is
because of the availability of quality natural fabrics at competitive prices. However, the
‘quality’ aspect is not given due importance by the Indian firms. This fact was emphasised
by the ‘Japan Apparel Manufacturers Association. The report from the survey says “Apparel

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firms in India believe that the quality of the fabric determines the quality of the garment,
whereas the Japanese think that every aspect of the garment from sewing to packaging
decides quality”.
The consumption pattern in the world markets show that the demand for leather and
leather products is rapidly increasing with footwear, belts, bags and wallets being
considered as an inseparable part of the everyday attire. However, for several years, India
has been exporting her leather in raw form to her competitors, who make products out of
them and sell in the same markets at cheaper prices. Since India has been exporting without
a brand name, she has been exporting only a commodity. Further, India lags behind as fas
as adequate product design, quality of craftsmanship and inadequate supply base for
handling large volumes are concerned. Apart from the above specific issues, the
internationalised marketer also has to probe and find out the market structure and
conditions and also identify the marketing research possibilities in the international
markets, which he plans to enter. In other words, there is an urgent need for a more
systematic and conceptual cross cultural analysis of the psychological, social and cultural
characteristics concerning the consumption habits of foreign consumers.

Problems in cross cultural marketing


The following are generally the problems related to cross cultural marketing
• Problem related to product selection

• Problem related to promotion or marketing communication

• Problem related to pricing

• Problem related to selection of distribution channels

“When starting a business a cultural analysis needs to be done if the business targets a
range of audience from several locations” Transferring product meaning to other
cultures.
Cultural Variations in Nonverbal Communications Variations in verbal communications in
different cultures are easy to notice and accept because we realize that language is an
arbitrary invention. A word can mean

Strictly for private circulation only. Module compiled by Ms. Saritha S.R.
5TH SEMESTER, CONSUMER BEHAVIOUR MODULE: 5

what a group will agree that it will mean. Hence many word-to-word translations can lead
ad campaigns to convey a totally unintended meaning, causing a lot of embarrassment. For
example, the translation of the word “Enjoy” has sensual connotations in many countries
including Russia. Many brand names also have these problems. Ford’s Fiera brand means
“terrible, cruel or ugly” in Spanish. However verbal language translations can be taken
care of and they do not pose major problems. The problem is that each culture has
nonverbal communication systems and these are the arbitrary meanings a culture assigns to
actions, events and things other than words.
Symbols: If an American baby is wearing a pink dress it is most likely to be female & if it
is blue it would be a male. The number four is considered a symbol of death in Japan. In
parts of South East Asia light blue is associated with death and mourning. A white
carnation flower is a symbol of death in China. The “thumbs up” sign has an offensive
meaning in Russia. These are only some examples how each culture has its own non-
verbal communication in symbols.
Things: Different cultures attach different meanings to things including brands. For
example, in China a clock is a symbol of funeral and is an inappropriate gift. In China gifts
should be presented privately, whereas in Arab countries they should be given in front of
others. In Japan small gifts are required to be given in many business situations, whereas
in China it is not appropriate.

Strictly for private circulation only. Module compiled by Ms. Saritha S.R.

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