Consumer Behavior Exam 1

Culture

a complex whole that includes knowledge, belief, art, law, morals, customs, and any other capabilities and habits acquired by humans

Cultural factors affecting consumer behavior

• Language

• Demographics

• Values

• Nonverbal communication

Localization

McDonald's tailors menus to regional tastes e.g. McAloo Tikki burger in India

Cross-Culture Adoption

Products, brands, cultures, and values move back & forth across cultures.

e.g. Ethnic Culture

Cultural values

The shared principles, ideals, and beliefs that a society holds as important, thus guiding behavior and decision-making

Other-Oriented Values

A society’s view of appropriate relationships between individuals and groups within that society

Other-Oriented Values EXS

masc/fem, individual/collective

Environment-Oriented Values

A society’s relationship to its economic, technical, and physical environment

Environment-Oriented Values EXS

cleanliness, risk taking/security

Self-Oriented Values

Reflects the objectives and approaches to life that individuals members of a society find desirable

Self-Oriented Values EXS

material/nonmaterialistic, active/passive

Norms

dictate appropriate behavior (how to dress for a job interview)

Sanctions

penalties for violating norms (being scolded for littering)

Nonverbal communication

time, symbols, things

Polychronic time perspective

time is seen as fluid and flexible, allowing for multiple activities to occur simultaneously

It emphasizes relationships and priorities, often valuing "being" over "doing"

Is the geographic area homo/heterogeneous with respect to culture?

Japan = homogeneous USA = heterogeneous

Shifting american values

green marketing, cause related marketing

Cause related marketing

marketing that ties a company and its products to an issue or cause with the goal of improving sales or corporate image while providing benefits to the cause

Generation

A group of persons who have experienced a common social, political, historical, and economic environment

Cohort analysis

The process of explaining the attitudes, values and behaviors of an age group and to predict its future attitudes, values, and behaviors 

Societal rank

One’s position relative to others on one or more dimensions valued by society

Determines societal rank

Education, occupation, income level, heritage, and ownership

Social class system

A hierarchical division of a society into relatively distinct and homogeneous groups with respect to attitudes, values, and lifestyles 

Consumption Subculture

Are a type of reference group of people with a shared values and beliefs resulting in a commitment to a specific product type, brand, or consumption activity

Acculturation

the degree to which an immigrant has adapted to his or her new culture.

The Household Influences Most Consumption Decisions

Major items e.g. cars, appliances, etc. are consumed more by Households than by individuals 

Family Decision Making

The process by which decisions that directly or indirectly involve two or more family members are made

Initiators

person who 1^st recognizes a need or initiates the purchase

Information Gatherer

person who has expertise and interest in the purchase

Influencer

person who influences the alternative evaluated and the final choice

Decision Maker

person who makes the final decision

Purchaser

person who actually purchases the product

User

the user of the product 

Consumer Socialization

The process by which young people acquire skills, knowledge, and attitudes relevant to their functioning as consumers in the marketplace 

Process of consumer socialization

• Instrumental training—occurs when a parent or sibling specifically and directly attempts to bring about certain responses through reasoning or reinforcement.

• Modeling—occurs when a child learns appropriate, or inappropriate, consumption behaviors by observing others.

• Mediation—occurs when a parent alters a child’s initial interpretation of, or response to, a marketing or other stimulus

A Reference Group

A group whose perspectives or values are being used by an individual as the basis for their current behavior

i.e. mpacts on an individual's attitudes and actions, acting as a point of comparison 

Groups can be classified by several variables

• membership

• strength of social tie (fam vs coworkers)

• type of contact (face to face)

• attraction

Reference Group Influence

describes how individuals' thoughts, feelings, and behaviors are affected by groups they associate with or admire

Informational Influence

Occurs when a person uses the behavior and opinions of reference group members for useful information. e.g. referencing the gear used by a professional sports team

Members Normative Influence (a.k.a. utilitarian influence)

Occurs when a person fulfills group expectations to gain a direct reward or to avoid a sanction e.g. wearing the ‘right’ clothes to an event, buying the ‘acceptable’ wine

Identification Influence (a.k.a. value-expressive influence)

Occurs when a person has internalized the group’s values and norms.

Opinion leader 

• The “go to person” for specific types of iformation.

• Are specialists - possess knowledge and expertise for specific product categories.

• Are among the first to buy, providing Unbiased product evaluations.

• Highly active on social media 

Likelihood of finding an opinion leader

high product knowledge and involvement, low product knowledge and involvement

Adopter categories 

• Innovators

• Early Adopters

• Early Majority

• Late Majority

• Laggards

Early adopters

a consumer who purchases and uses a new product or technology shortly after its release, right after the initial innovators