CONSUMER BEHAVIOUR

What is Consumer Behavior?

How many times throughout the day do people make product decisions? If you stop to think
about it, many product decisions are made every day, some without much thought. What should I
wear? What should I eat? What am I going to do today? Many product decisions are answered
routinely every day and they help move the economy of cities, countries and ultimately the
world. Product decisions also shape life for the consumer. How can simple decisions be so
important? Why do marketers spend millions of dollars to uncover the reasons behind these
decisions?

To define consumer behavior: it is the study of consumers and the processes they use to choose,
use (consume), and dispose of products and services. A more in depth definition will also include
how that process impacts the world. Consumer behavior incorporates ideas from several sciences
including psychology, biology, chemistry and economics.

"All marketing decisions are based on assumptions and knowledge of consumer behavior,"
(Hawkins and Mothersbaugh, 2007). Researching consumer behavior is a complex process, but
understanding consumer behavior is critical to marketers-they can use it to:

Provide value and customer satisfaction.

Enhance the value of the company.

Improve products and services.

Create a competitive advantage

Understand how customers view their products versus their competitors' products.

Expand the knowledge base in the field of marketing,

Apply marketing strategies toward a positive affect on society (encourage people to

Effectively target customers.

Support charities, promote healthy habits, reduce drug use etc.)

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Why People Buy
Marketers spend millions of dollars trying to understand why people buy products and services.
Sometimes it seems that there is no reason for a purchase, but in reality there is always a reason.
Many factors are involved in a customers' buying decision, any one of which can become the
deciding factor, such as:

• Conspicuous consumption: Lavish spending for the purpose of displaying wealth or

social status; preference for buying increases with price.

Snob effect: Desire to buy something nobody else has; preference for buying increases
with rarity or scarcity.

Bandwagon effect: Desire to buy something everybody else is buying; preference for
buying increases with perceived popularity.

Economic-To enhance their lifestyle or to fulfill two of Maslow's needs: physiological

(food, shelter) and Safety and Security.

Psychological-This is the study of how people interact with their environment, products
are consumed to enhance their well being, for example air fresheners, furniture and
convection ovens.

Sociological-The study of the thoughts, feelings, and behaviors of group interaction,

especially in a social setting. People want to feel accepted and loved by their peers and
they need to consume products that will appeal to their chosen groups. For example a
consumer wants to join a kayaking team would have to purchase the proper gear, clothing
and maybe even music genre in order to fit in with the group.

Practical-Consumers purchase products because they need them to survive, such as shoes
and medicine.

Impractical-is the opposite of practical, purchasing products that are not necessary.

Rational-Purchases are made with logical, thought out reasoning.

Irrational-products are purchased for foolish or absurd reasons.

Factual-Purchasing products based on researched reports.

Emotional-purchasing products based on feelings

Buy to satisfy a need (for a reason).

Buy to satisfy a want (desire).

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Consumers Also Buy: Money To Reduce

To Increase Family Risk

Sales. To Make Investment

Profit. Money Expenses

Satisfaction. Satisfied customers Competition

Confidence. Good impressions Worry

Convenience. To Improve Trouble

Pleasure. Customer relations To Save

Production. Employee relations Time

To Protect Image Money

Investment Status Energy,

Self Earnings Space

Employees Performance

Property

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Segmentation, Demographics and Behavior

Segmentation is the process of breaking down the intended product market into manageable groups; it can
be broken down by:

• Relationship
• Customer Type
• Product Use
• Buying Situation
• Purchasing Method
• Behavior
• Geographic Location
• Demographics
• Psychographics

Relationship
Kind of relationship— weak, strong, “arm’s length” dealing, close partnership.

Customer Type
Type of customer— manufacturer, service, government, military, non profit, wholesaler, retailer, end
user.

Product Use
How customer’s use product— installation, components, accessories, raw material, eaten, professional
service.

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 Buying Situation
Buying situation— rebuy, modified rebuy, new purchase.

Purchasing Method
Purchasing methods— Internet, long term contract, warranty, financing, cash on demand.

Behavior
Needs—economic, functional, psychological, social.

Benefits--quality, service, economy, convenience, speed.

Attitude toward product--Enthusiastic, positive, indifferent, negative, hostile.

User status--Nonuser, ex user, potential user, first time user, regular user.

Loyalty status--None, medium, strong, absolute.

Brand Familiarity-Unaware, aware, informed, interested, desirous, intending to buy.

Occasion--Regular occasion; special occasion, convenience, comparison shopping, unsought product.

Type of problem solving needed-routine, limited, extensive.

Information required-low, medium, high.

Geographic Location
Region of world, country— North America, South America, Africa, Asia, Europe.

Regions within that country— (For Example USA) Pacific Northwest, South, Midwest, New England.

Size of city— population under 5,000 people to 4 million or more.

Urban vs. rural— country, city, large city = more resources, more independence; country=more
dependence on neighbors and pooling resources.

Climate— cold, hot, rainy, desert, beaches, mountains.

Demographics
Income— under $5,000 to $250,000+ a year.

Gender— male, female, neither, both.

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 Age— Infant, toddler, preschool, tween (age 8 to 12), teen, college age, 20, 30, 40, 50, 60, 70-90.

Family size— 1 person, 2, 3, 4, 5 or more.

Family life cycle— young, single, engaged, DINKS (double income no kids), SINKS (single income
no kids), married with kids (babies, toddler, elementary school age, teen, older), recently divorced,
empty nester (children have moved out), same-sex couples, single parents, extended parents
(grandparents raising their grandchildren), retired (either wealthy or Medicare dependent/poor). There
are also Boomerang Kids (adult children have moved back home), Cougar/Silver Fox (Cougar is a 40-
60 year old wealthy, single, career driven woman seeking a younger man; Silver Fox is a 40-60 year
old wealthy, single, career driven man seeking a younger woman).

Job— unemployed, housewife, part-time, full-time, student, professional, craftsperson, farmer, retired.

Education— grade school or less, some high school, high school graduate, some college, college
graduate, graduate degrees.

Religion— Christian, Jewish, agnostic, atheist, Muslim, Islam etc.

Race— White, Black, Asian, Hispanic, Native American, mixed race, etc.

Culture/nationality—American, French, English, African, Russian, Indian etc.

Generation— (For Example USA) GI Generation, Silent, Matures, Baby Boomer, Gen X, Gen Y,
Boomlets.

Psychographics

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Lifestyle— interests, hobbies, activities, interests, opinions, values, media preferences. Everyone has
two lifestyles, the one they are in now, and the one they desire to be in, which is usually better than
the current one. Almost all decisions are influenced by the buyer’s current and desired lifestyle.

Personality traits

Sincerity.

Excitement.

Competence.

Sophistication.

Ruggedness.

Social class— Lower, middle-low, middle, middle-upper, upper, upper-upper, working class, blue
collar.

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Internal Influences - Learning
Consumer behavior is largely learned behavior. Learning is a change of behavior following an interaction
between a person and their environment. A person touches a hot stove and then gets hurt, because of that
interaction they learn not to touch the hot stove again. Most attitudes, values, tastes, behaviors,
preferences, symbolic meanings and feelings are acquired through learning. People buy things and then
make decisions for future purchases based on if they liked the product, quality, service, and price. Social
organizations help people learn "appropriate" beliefs about issues like drinking and driving, proper
nutrition, etc. Companies that help their customers learn about their products and create positive feelings
with their product, service, brand name, and employees-have a competitive advantage

The Learning Process:

Exposure - the customer becomes aware of product, service or advertisement through at least one of
their five senses (sight, smell, taste, touch, hearing). When a customer walks into a store, goes onto a
website, drives by a billboard, reads a magazine or tries a free food sample, the learning process
begins.

Attention - the customer processes the stimulus.

Understanding - the customer interprets the information and acts on it either by purchasing the
product or service, dismissing the information, seeking more information (asking family and friends,
going on the Internet) or remembering it for future information.

Internal Influences - Memory

Marketing messages can be effective only if the consumer correctly understands the messages, and
remembers them when needed. Memory refers to a consumer's ability to understand the marketing
messages and assign them value and meaning. Value and meaning always together. The value and
meaning assigned is largely determined by internal factors, (thoughts, feelings, emotion, attitude,
perception, motivation, personality, lifestyle) which are different for each consumer.

For example, a consumer who drinks lots of milk, sees an advertisement that says "Got Milk?" and since
they already have positive feelings for the product they will purchase more milk, whereas a consumer
who does not enjoy drinking milk and sees the same ad, may dismiss the ad or may try drinking more
milk for a short period of time and then decrease consumption again.

Three things influence consumer's ability to understand messages:

Physical Characteristics of message

• Imagery: When the brand name, words, and slogan work together to create an image in the mind
of the consumer, it will invoke ideas, feelings and objects, and a direct recovery of past
experiences. Disney is big on evoking nostalgia and past experiences, they want adult customers to
remember being taken to the Disney parks as a child and then repeat the experiences with their
own children. Much of their advertisement depicts families having wonderful experiences
together, while the adults are remembering being there as children.

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 • Color: Colors have an enormous impact on marketing messages, and color affects consumers in a
subjective manner, so that most of the time consumers don’t even know they are being affected!
For example, in the US, the color red makes people eat 25% more, therefore most restaurants use
red as their main color. The meaning and value assigned to colors changes with the culture, so
marketers need to be fully aware of how color is interpreted by different groups of people. For
example, the Starbucks Coffee Company logo is green, but when they opened shops in Malaysia,
they had to change the logo to brown because in that culture green is associated with sickness.
• Font: The presentation of words and how they are shaped will also enhance the marketing
message and contribute to the value and meaning. For example, these two different fonts for a
cigarette company will convey entirely different meanings, and may attract two different
customers.

Caribou Cigarettes
Caribou Cigarettes
The first logo is block style, bold and more intense and may be more masculine. The second is a script
font, with more curls, softer lines and may be more feminine. So which is better? Well, that depends on
the product and the target market you are trying to attract.

• Simplicity of the message: A simple message is generally easier to understand. Using short phrases
and easy to read terminology, such as “heart healthy” will quickly and easily convey the message
that the product is good for your heart.
• Consistency of the message: The message needs to fit in with the surrounding information—style,
color, text, photographs, music—all have to work together. For example, showing a television ad
for travel to the Caribbean will have soft, flowing fonts, bright colors, and reggae music. It can
sometimes be an advantage to have inconsistent messages, some consumers may remember the ad
more if some of the elements don’t make sense.
• Source of the message: Consumers will be more likely to remember and purchase products
endorsed by credible sources, animated characters or celebrities. They have to be likeable, have
some expertise or at least pretend that they have expertise), be trustworthy, and attractive.

Characteristics of the message receiver (consumer)

• Intelligence: unless you are specifically marketing a product to extremely intelligent individuals, it
is best to word marketing messages on a level most people can understand, and don’t ever talk to
your customers in a way that would make them feel inferior.
• Involvement: A customer with higher levels of involvement with the product, service and
marketing information will have more recall than a consumer with less involvement. Creating
more interest in the product and making a website more interactive will help to increase sales.
More involvement means more sales.
• Familiarity: Generally, the more familiar a customer is with a product, the more likely they are to
purchase it; however, having too much familiarity can lead to adaptation, when customers become
tired of their “familiar” purchases and seek out novelty items. For example, in the US in the 1990s,
ketchup sales began slipping and to revamp sales, ketchup manufacturers created green and purple
ketchup, these novelty items boosted sales, but only for a few months, when consumers became
tired of them.

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 • Expectations: If the customer doesn’t know what to expect from the product or service, then they
are not going to purchase it. This explains why familiar brand names like Campbell’s Soup, Coca-
Cola and Disney do not change their logos—customers are familiar with them, have positive
thoughts about them and know what to expect.
• Physical limits: Marketers need to remember that some consumers have limitations such as
hearing impairment or color blindness and this needs to be taken into consideration when creating
marketing messages.

Characteristics of the environment

• Intensity of information: If a consumer is overloaded with stimuli in an environment, they are
much more likely to avoid the ad, or not comprehend it at all. Let's face it, we live in a world
cluttered with advertisements, it can be difficult to break through all of it and get to your target
market customers. Marketers have to be more creative since customers can now skip commercials
(thanks to recordable television); marketers use product placement in the actual movie or
television show, the characters in the show use the brand name products and may even talk about
how they like the brand name. This is all part of the advertising. Marketers are also making use of
new social marketing movements such as Twitter and Facebook that can be programmed to reach
customers that want to see your marketing messages.
• Framing: Messages can be framed to seem positive or negative and this will affect how customers
assign value. "If you don't use sunscreen, you could get skin cancer" or "Use sunscreen to
moisturize and protect your delicate skin".
• Timing: Many factors will influence how a message is interpreted and assigned value including:
amount of time customer has to view a message, time of day, and type of medium used. A
customer driving in the morning 70mph past a billboard for coffee may only have a few seconds to
interpret the message, but since it is a time of day when that product is most consumed, they may
be more likely to act on the message.

Internal Influences - Emotion and Perception

A. Emotion

Emotion is difficult to define, and even more difficult to predict. However, they are important to
marketers because consumers tend to react to marketing messages and make purchases based on feelings
and emotions. Emotion can be used to create product benefits. Such as with Tide detergent and Cheerios
cereal; their commercials feature families having wonderful moments together, that couldn't have
happened without those products. Emotion in advertising enhances attention, attraction, and is processed
more thoroughly by the consumer and may be remembered better.

These are the elements of the relationship between emotion and understanding:

• Self control-the ability to control your emotions

• Emotional empathy-the ability to understand other people's emotions
• Positive/negative outlook-a person's outlook on life can be upbeat and optimistic or depressed and
negative; most people fall somewhere in between
• Productivity-ability to use emotions to solve problems

B. Perception

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Perception is the process by which people select, organize, and interpret information Perception has four
major steps:

1. Exposure - When a stimulus (like a billboard) comes within range of your senses (vision)

2. Attention - Determined by the individual and the situation; Nerves pass the information onto the brain
for processing

3. Interpretation - when marketing messages are assigned meaning

4. Memory

• a. Short-term—for immediate decision making

• b. Long-term—for retention

For an ad to be successful it must have the following four elements:

1. Exposure

Must physically reach the consumer

2. Attention

The consumer must attend to it

3. Interpretation

It must be properly interpreted

4. Memory

Must be stored in memory that will allow retrieval

Internal Influences - Motivation

Motivation is an internal state that drives us to satisfy needs. Motivation is the energizing force that
activates behavior. Once we recognize that we have a need, a state of tension exists that drives the
consumer to the goal of reducing this tension and eliminating the need. Consequently, only unmet needs
motivate.

According to Maslow's hierarchy of human needs, for each need there are positives gained and negatives
that are avoided by meeting that particular set of needs. Products that are purchased because of a need will
satisfy a goal and avoid unwanted consequences. For example, people need to feel secure so they
purchase smoke detectors, therefore gaining protection and avoiding loss and fear of fire.

Need Gained Avoided

Self-Actualization Creativity, accomplishment Unfulfilled potential
Esteem Pride, recognition, prestige Failure, inadequacy
Social Acceptance, popularity Rejection, embarrassment

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Need Gained Avoided
Security Safety, protection Loss, danger, fear
Physiological Health, comfort Sickness, discomfort
Positives and Negatives for Each Need (Based on Maslow)

According to McGuire, there are 12 psychological motives, 12 reasons why consumers are motivated to
make purchases.

• 1. Need for consistency

• 2. Need for attribute causation
• 3. Need to categorize
• 4. Need for cues
• 5. Need for independence
• 6. Need for self-expression
• 7. Need for ego-defense
• 8. Need for reinforcement
• 9. Need for affiliation
• 10. Need for modeling
• 11. Need for novelty
• 12 Need for Assertion

1. Need for consistency

• People have a basic desire to have all parts of themselves consistent and they purchase products
that fulfill this need. People that listen to country music will purchase products like cowboy boots,
heavy duty trucks and pets.

2. Need for attribute causation

• People have the need to determine who or what causes things to happen to them. For example,
some people choose to attribute it to themselves, fate or an outside force like God.

3. Need to categorize

• Categories allow people to process a large amount of information. Vehicles are categorized into
cars, SUV's, light trucks, heavy duty trucks, van, sporty, mid-size, hybrid, electric and so on. This
helps consumers quickly narrow down their choices when purchasing a vehicle.

4. Need for cues

• Most people will view others' behavior and infer what they feel and think. Clothing plays an
important role in presenting image of a person. People quickly judge others by the clothing they
are wearing and the vehicle they drive.

5. Need for independence

• Americans strive for individuality and self-expression and many products are marketed as "limited
edition" or being different and unique

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 • The Japanese culture discourages individuality and focuses on affiliation, and behavior that
enhances family and culture.

6. Need for self-expression

• Americans are known for letting others know who and what they are by their extravagant
purchases, especially clothing and cars. Who really needs a $1,200 pen? What is that saying about
that person?

7. Need for ego-defense

• The need to defend your identity. An insecure customer will purchase well-known brand names
for fear of being labeled socially incorrect.

8. Need for reinforcement

• People are motivated to act because they are rewarded for doing it. For example, showing off a
new diamond ring to your friends creates acceptance and approval.

9. Need for affiliation

• Affiliation is the need to develop mutually helpful and satisfying relationships with others, which
is a critical part of all people's lives.

10. Need for modeling

• Conformity and the need to base behavior on that of others. This is the major motivation of
children, tweens (8-12 year olds), and especially teenagers-and in their social world conformity
mean acceptance.

11. Need for novelty

• People have variety seeking-behavior and this may be a reason for brand switching and impulse
buys, but that depends on the person. People experiencing rapid life changes will seek stability,
while people in stable life situations will seek change. The travel industry uses this by changing up
their ads and showing adventure vacations where people are actively having fun and some ads
showing relaxing vacations where people are swinging in a hammock.

12. Need for Assertion

• Customer's need to engage in activities that will increase self-esteem and self-esteem in the eyes of
others. Most consumers respond positively to ads that appeal to this need. In an advertisement for
a ladies razor, it will say "show off your beautiful legs to your man," this will appeal to women by
showing that the product increases your self-esteem.

Internal Influences - Lifestyle and Attitude

A. Lifestyle

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Lifestyle is a common word to explain complicated consumer behaviors. Lifestyle is a way to segment
people into groups based on three things: opinions, attitudes and activities. Lifestyle means the ways
groups of consumers spend time and money. Lifestyle can include things like bowling, cooking, car
racing, kayaking, attending charity events, having pets, interest in politics, watching sporting events
and so on

Everyone has two lifestyles-the one they are currently in and the one they want to be in, which is
always better than the current one. Marketers exploit this desire to move into a better lifestyle by
showcasing people who are better off than the intended target market in their ads. For example most
ads targeting children show children that are almost too old for the product, this appeals to younger
children who desire to be like them.

B. Attitude

An attitude is an internal evaluation, expressed outwardly about a person, object or issue. There are
three components of attitude - affect, behavior and cognition. This sis sometimes called the ABC's of
attitude. These three components work together to form a hierarchy of effects:

Purhase Hierarchy of effects

High involvement Belief—affect—behavior
Low involvement Belief—behavior—affect
Experiential Affect—behavior—belief
Behavioral Influence Behavior—belief—affect

In a purchase that requires a high level of involvement, such as a car, consumers will consider various
choices and develop beliefs about each choice; then they develop feelings about the products (affect);
and finally they act on the behavior and decide to purchase, or not. Whereas with a behavioral
influence, the customer will act first (purchase), then develop beliefs about their purchase and that
leads to developing feelings about the product or service.

ELM Model

One theory about attitude change is the Elaboration Likelihood Model (ELM). This model shows
how attitudes are changed based on the level of involvement in the purchase. As soon as a message is
received a consumer begins to process it, depending on the level of involvement and motivation it will
then follow one of two routes—the central route or the peripheral route. See Petty and Cacioppo
(1981) and Petty, Ostrom and Brock (1981).(

The central route: If the consumer is highly involved in the purchase, then they will put forth
considerable effort toward understanding the marketing messages. They will look for cues in the
message that pertain to the product, its attributes, and advantages.

The peripheral route: If the consumer is not highly involved in the purchase, or lacks the motivation
to process information, they are more likely to pay attention to the attractiveness of the people in the
advertisement, images and music, which are all non-product related information. These cues play a
major role in persuading consumers to purchase. This usually leads to a product attitude change that
doesn’t last.

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 Social Judgment Theory Another theory for explaining attitude changes, this theory states that
consumers compare incoming information to a frame of reference previously formed; The incoming
messages are then filtered down two paths—latitudes of acceptance and latitudes of rejection. If a
message is accepted then the filtered information has to be close to the original attitude. This is when
messages are considered favorable and consumers agree with the message. A message is rejected
when it is seen as too far from, or opposed to the original attitude.

What are external influences in consumer behavior?

a. What a consumer eats, wears, and believes are all learned and influenced by the culture they live in,
their family, childhood and social environment. All of these are external factors that affect purchases.

Here is a list of the external influences that affect consumer behavior:

Age

Race

Gender

Education level

Cross-cultural influences

Sub-cultures (Hispanic-American)

Social status (upper, middle, lower)

Customs, Beliefs, Expectations, Traditions, Habits

Reference groups are groups that have shared beliefs, interests and behaviors and influence a
consumer’s behavior:

Examples include: Religious, Political, Family, Friends, Co-workers, Clubs and Associations.

People are social and they want to belong to special groups. Group members share common interests,
influence each other, and share rules and values. Primary groups are those with the most influence,
such as family members; secondary groups have less interaction than the primary group, such as clubs
and organizations. As children grow into teenagers, their parents become less of an influence and peer
groups become more of an influence. All groups exert what is called social power; some groups have
more power than others over consumers’ decisions.

Values

Community

Family Life Cycle

Type of Social Description Example

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Power
Referent A person likes a group and acts like A teenager wants to join a popular group, so they
them so the group will accept them begin to dress like them and listen to their groups’
chosen music
Legitimate Membership comes with agreements A boss has authority over his employees and can
and there will be consequences for fire them if they don’t do an adequate job
nonconformity
Expert Groups have knowledge that others Consumers who want to be members of The
want to gain American Medical Association seek to gain their
knowledge of health and wellness
Reward Groups with power to give rewards to A school soccer team can give trophies to their best
members players (members)
Coercive A group can penalize members for not In the army, soldiers who do not report for duty on
following the rules time can be forced to do manual labor or even get
kicked out of the army

c. External influences can also include situational influences, sometimes called atmospherics—sensory
items in an environment that may change buying patterns, such as music, color, smell, and lighting. If a
store plays loud rock music, they may attract young adults, but drive away older consumers. Color is a
huge influence on behavior, but is also dependent on culture, since different cultures perceive colors
differently. In the US white is a color worn at weddings, and in China, red is the color of choice for
weddings. Many bakeries will pump the smell of their treats outside the store, so that passersby will be
more likely to want to come in.

d. Before making a purchase, consumers will go through an external information search. They will go
through this search in order to evaluate the alternatives and narrow down their list of choices. It includes:

• Personal experience—have they purchased this product before? How do they feel about it?
• Websites/Internet search—researching the quality of the product
• Knowledge—someone with little or no knowledge of the product will need lots of information!
• Friends/reference groups—consumers ask friends, family and coworkers about their experiences
with the product.
• Advertising and promotions

e. A purchase may be ultimately made due to Heuristics. This is a personal set of values that everyone has
and it causes consumers to buy what they are comfortable buying, such as purchasing from specific
countries of origin, or products that they are brand loyal to.

External Influences - Family Life Cycle (FLC)

Family life cycle is defined as what type of family the target market consumer is in. DINKS are “double
income no kids” and SINKS are “single income no kids”. Marketers love to target the DINKS and SINKS
because they have lots of discretionary income and no children to spend it on, so they spend their extra
money on themselves, their house, their pets and vacations.

Stages of the Family Life Cycle (FLC)

• Young and single

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 • Engaged couples
• DINKS (Double Income No Kids)
• SINKS (Single Income No Kids)
• Married with children: Babies, Toddlers, Elementary School Age (5-7), Tweens (8-12), Teens (13-
17), Older
• Single parents
• Empty nester
• Boomerang Kids (adult children who have moved back in with their parents)
• Extended parents (grandparents raising their grandchildren)
• Blended Families (stepchildren)
• Cougar and Silver Fox
• Recently divorced
• Same-sex singles/couples
• Retired - Wealthy or Medicare dependent

The engaged couples and the recently divorced spend money on similar products, although for different
reasons. Engaged couples are buying products to begin a life together and the recently divorced are
buying products that they already had and now need to replace. Extended parents are grandparents taking
care of their grandchildren. Same sex couples and singles are grouped together whether they have children
or not, because of their lifestyle and interests. An empty nester is someone whose children are now grown
adults and have moved out of the house. Boomerang kids are adult children who are living with their
parents.

External Influences - Consumer Culture

a. Culture includes knowledge, belief, art, law, morals, customs, and any other capabilities and habits
acquired by humans as members of society.

b. How does culture affect consumer behavior? Whatever a person consumes will determine their level of
acceptance in their society. If someone does not act consistently with cultural expectations, they risk not
being accepted in society.

c. What happens when a company ignores culture?

Behavior Meaning in the US Meaning in other cultures

Consuming Those under the age of 21 are In European countries it is common for children to
wine and beer not allowed to drink alcohol drink wine/beer at family meals; when in a bar in
Korea you pour drinks for your friends and family
first, then wait for them to pour your drink
Drinking Generally adults drink it in the In Turkey, coffee is a special drink that you serve
coffee morning because of the to guests; in Italy coffee is enjoyed after a family
caffeine, and giving coffee to a meal; in China tea is the drink of choice
child is not accepted
Cooking pork Grilled outside at a backyard Jewish and Muslims do not eat pork
ribs party
Kissing To express romantic feelings In many cultures kissing is acceptable when
about someone greeting a friend
Using the Lucky number Unlucky number in Kenya, Singapore and Ghana

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 number 7

d. Factors that Define a Culture

i. Individual/Collective: The culture in the US is an individualistic society, where people generally

look out for themselves; The Japanese culture focuses on the collective, and people work to better
society as a whole.

ii. Extended/Limited Family: In the US, families move away from each other and generally don’t live
together in the same house; In many Asian and European countries, parents, kids, grandparents and
even aunts and uncles live together in the same house.

iii. Adult/Child: Different cultures will define when someone is an adult. In the US it is 18 years old,
but in some South American countries it is 14 or 15 years old. In the Hebrew culture a boy becomes a
man at 13 during his Bar Mitzvah ceremony. In the Hispanic culture a girl becomes an adult at 15th
birthday party.

iv. Masculine/Feminine: Cultures define the roles of men and women differently, including their rank,
and prestige in society.

v. Youth/Age: The value placed on Elders depends on the culture

vi. Cleanliness: In the US, cleanliness is very important, in fact most of the products advertised on
American TV claim to improve cleaning; In other cultures showering on a daily basis is unnecessary.

vii. Tradition/Change: Some societies prefer traditions over making changes.

viii. Hard work/Leisure: In some cultures hard work is valued over leisure time.

ix. Postponed gratification/Immediate gratification: American culture is centered on immediate

gratification “I want it now!”

x. Sensual gratification/Abstinence: The Netherlands is a society that openly talks about and
advertises sexual activity; in Muslim societies those topics are taboo, and women who get pregnant
before marriage are often shunned.

External Influences - Social Environment and Social Class

Social Environment

Reference groups have an influence on purchasing behavior, but the level of influence will depend on
where the product will be consumed—in public or in private—and whether the product is a want or a
need.

GROUP INFLUENCE ON PRODUCT AND BRAND SELECTION

Need Want
Public Example: fast food lunch Example: yacht
A product used in public that you need A product used in public that you want

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 weak group influence for product selection, strong
group influence for brand selection
Private Example: bed sheets
A product used in private that you need
weak group influence for product selection, weak
group influence for brand selection
strong group influence for product selection,
strong group influence for brand selection
Example: hot tub
A product used in private that you want
strong group influence for product selection,
weak group influence for brand selection

Social Class

Populations can be subdivided into groups who members share similar hobbies, opinions, and activities.
Americans have two lifestyles—the one they are in and the one they strive to be in, which is usually better
than their current situation. It is important for a marketer to understand the subdivisions of society in
order to better choose target markets for their products and services.

PROFILE OF THE AMERICAN CLASS STRUCTURE

CLASS % INCOME EDUCATION OCCUPATION DESCRIPTION
Pop LEVEL
Upper- .3% $5 million Graduate Degree CEO, Executives, Inherited wealth, aristocratic, fund
Upper and up Senator charities, “old money”, participate
in politics
Upper 1.2 $2 million Graduate Degree Executive, Entrepreneurs, Sports Stars,
professional Entertainers
Lower- 12.5 $250,000 Graduate Degree, Executive, Education is important, involved in
Upper medical degree Professional, Doctor arts
Middle 32 $100,000 College Degree Office workers, Insecure due to economic
Class managers fluctuations, live in the suburbs
Working 38 $50,000 High school Teacher, plumber, Skilled workers, may be in danger
Class of falling into a lower class
Lower 9 $20,000 Some High School Janitor, farmer Poorly educated, low income, work
as laborers
Lower- 7 $9,000 and Grade School Minimum wage or Unskilled, may be unemployed for
Lower under unemployed long periods of time, receive
government support

External Influences - Family Influences (Birth Order)

Where a child places in the birth order can have an effect on how they see themselves, and therefore
affects their consumer behavior. The middle child often seems to have the most negative impressions of
his lot in life. Younger children always want to be able to do the things older siblings are allowed to do.
And older siblings may feel that the younger siblings get away with things they were not able to when
they were the same age. Here are the levels of birth order:

• Only Child
• Oldest Child
• Second Oldest Sibling
• Middle Child of Three Siblings
• Youngest Sibling

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Only Child

Pampered and spoiled

Is center of attention; often enjoys position. May feel special.

Relies on service from others rather than own efforts.

Feels unfairly treated when doesn't get own way.

Likelier to hold a professional position.

Concerned with meeting parents’ expectations.

Confident.

Pays Attention to Detail

Good in School.

Overly Critical.

Oldest Child

Is only child for period of time; used to being center of attention.

Believes must gain and hold superiority over other children.

Being right, controlling often important.

Strives to keep or regain parents' attention through conformity. If this failed, chooses to misbehave.

May develop competent, responsible behavior or become very discouraged.

Sometime strives to protect and help others.

Confident.

Determined.

Born Leader.

Organized.

Eager to Please.

Likes to Avoid Trouble.

Second Oldest Child

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Never has parents' undivided attention.

Always has sibling ahead who's more advanced.

Acts as if in race, trying to catch up or overtake first child. If first child is "good," second may become
"bad." Develops abilities first child doesn't exhibit. If first child successful, may feel uncertain of self
and abilities.

May be rebel.

Often doesn't like position.

Feels "squeezed" if third child is born.

May push down other siblings.

Middle Child of Three Siblings

Has neither the rights of oldest nor privileges of youngest.

May feel like they don’t have place in family.

Becomes discouraged and "problem child" or elevates self by pushing down other siblings.

Is adaptable.

Learns to deal with both oldest and youngest sibling.

Youngest Sibling

Feels every one bigger and more capable.

Expects others to do things, make decisions, take responsibility.

Becomes boss of family in getting service and own way.

Develops feelings of inferiority or becomes "speeder" and overtakes older siblings.

Remains "The Baby." Places others in service.

If youngest of three, often allies with oldest child against middle child.

Persistent

Affectionate

Crave the Spotlight

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