Consumer Behaviour

UNIT - III
MBA II/II
Dr B.Anjan Kumar
Keshav Memorial Institute of Management
Dr B.Anjan Kumar 2
 CULTURE
• Schiffman defines culture as “the sum total of learned beliefs, values,
and customs that serve to direct the consumer behavior of members
of a particular society”.
• It includes knowledge, Belief, Art, Morals, Laws, Customs and any
other capabilities and Habits acquired by man as a member of
society.
• Culture is everything that is socially learned and shared by the
members of the society.
• Culture consists of Materials and Non-Material components i.e.
material means words people use, Ideas, Customs, Beliefs, and
Habits etc. Non- Material culture consists of all physical substances
that have been changed and used by people.
Dr B.Anjan Kumar 3
 Characteristics of Culture
• Culture is invented - it consists of 3 systems or elements-
i) An ideological system or mental components - Ideas, beliefs, values,
Learning
ii) A Technological system consists of skills, crafts and arts.
iii) An organizational system- Family, social class.
• It is a group phenomenon, shared by human beings living in organized
societies and kept relatively uniform by social pressures.
• Culture is Gratifying and Persistent- it satisfies basic biological needs as
well as learned needs. It consists of habits that will be maintained and
reinforced as long as those who practice them are gratified.
• Culture is Adaptive- Some culture are resistance to change but some
are changing slowly. They adopt according to new lifestyles.
Dr B.Anjan Kumar 4
 COMPONENTS OF CULTURE
• Values: Values are the beliefs and ideals shared by the people of a society, for which they have
great respect and regard.
• Language: Man is a social animal and needs to communicate with others. Language is used as
a means to communicate with people in a social set up. It is the common language that binds
together the people in a social structure.
• Myths: Myths are legendary folktales and stories that describe events and occurrences, and
teach values to society.
• Customs: Customs are habitual practices that formulate the established way of doing things
and reflect culturally accepted patterns of behavior.
• Rituals: Rituals are prescribed processes and procedures for conduct of religious or social rites.
They are established rites, ceremonies and proceedings that are symbolic in nature.
• Laws: Laws are principles, rules and regulations that are formulated/sanctioned by an authority
(ruler, government, constitution etc.), and supported/protected by judicial authority.
• Their basis can actually be found in theDrsociety’s values, customs, and rituals.
B.Anjan Kumar 5
 SUB CULTURE

Dr B.Anjan Kumar 6
 SUB- CULTURE
• Subculture is a distinct cultural group which exists as an identifiable
segment within a larger, more complex society
• Every society is composed of smaller sub-units, homogenous within, and
heterogeneous outside, all of which when put together make a complex
society. Such sub-units or sub-groups are known as sub-cultures; people
within sub-cultures possess distinctive sets of values, beliefs, customs and
traditions etc. Culture is everything that is socially learned and shared by
the members of the society.
• The members of a subculture possess such values and beliefs, as also
customs and traditions that set them apart from people belonging to other
sub-cultures.
Dr B.Anjan Kumar 7
 TYPES OF SUB-CULTURE
• Nationality: Sub-cultures could be based on nationality. While we are all Asians, we
are distinct with respect to culture, and are different in terms of language, customs
and traditions etc.
• Geographical location: Within a country, we could be different across geography,
climatic conditions, regions and terrains, and density of population.
• Religion: People also exhibit differences when it comes to the religions that they
belong to. Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from one
another and have different values and beliefs, customs and traditions etc
• Race and caste: Culture and its components also vary across race and caste. Jats,
Jaats, Rajputs, Pathans and Yadavs are all different from one another
• Gender: Because gender roles have an impact on acts of behavior, gender
constitutes an important cultural sub-group.
• Age: Infants, kids, teenagers and adolescents, adults and the aged, may all be
looked up as distinct sub-groups.
Dr B.Anjan Kumar 8
 CROSS - CULTURE

Dr B.Anjan Kumar 9
 CROSS - CULTURE
• Cross culture is a concept that recognizes the differences
among business people of different nations, backgrounds.
and ethnicities, and the importance of bridging them.
• Cross culture in the business world refers to a company's
efforts to ensure that its people interact effectively with
professionals from backgrounds different from their own.
• Like the adjective cross-cultural, it implies a recognition
of national, regional, and ethnic differences in manners
and methods and a desire to bridge them.
Dr B.Anjan Kumar 10
CROSS - CULTURE AND MARKETING IMPLICATION

Dr B.Anjan Kumar 11
CROSS CULTURAL ANALYSIS WITH EXAMPLES

Dr B.Anjan Kumar 12
 SOCIAL CLASS

Dr B.Anjan Kumar 13
 SOCIAL CLASS LIFESTYLES
1) Upper- upper class: It is social register class composed of old, locally prominent families -Aristocracy by
birth and wealth with at least 3 generations in the community and class like Maharaja's, Rich.
2) Lower-upper class: Neo- Rich class (New Rich) composed of those who have recently acquired wealth and
not quiet accepted by the upper-upper class.
Example- Executive elite, Business houses, Professionals- Doctors, Lawyers etc.
3) Upper-Middle class: This class consists of moderately successful professionals ( men or women). Motivation
of this group are towards achieving success in their careers, reaching a higher income level.
Example - Managers level executives.
4) Middle class: This class is at the top of the "Common Man" or "Average Man" level. It is composed of non-
managerial workers, small business owners, and highly paid blue collars executives. Men and Women want to be
judged are respectable in their behavior. Buy popular brands. Spend money on education etc.
5) Working class:
These are "Poor but Honest" and family folks. This class consists of skilled and unskilled workers, trade people.
They earn good income but do not spend on luxury and have nil savings but enjoys life.
They are tightly knit group composed of primarily of female kin.
They think horizontally and set norms horizontally rather than to go upward to other classes.
6) Upper- lower class: They are working poor class, labors who work on daily wages, their income is not steady,
but they are above poverty level.
7) Lower- lower class: They are below poverty Dr line. TheyKumar
B.Anjan get income from illegal activities. 14
 FAMILY LIFECYCLE

Dr B.Anjan Kumar 15
 FAMILY LIFECYCLE
• The family life cycle has been defined as a series of
stages through which most families’ progress, with
varying characteristics across varies stages; these
characteristics relate to marital status, size of the
family, the age profile of the family members
(focusing on the age of the oldest and/or youngest
child), the employment status of the head of
household, the income level and the disposable
income at hand.
Dr B.Anjan Kumar 16
 Traditional Family Life Cycle:
• - Stage I: Bachelorhood: Young single adult (male/female)
living apart from parents and into a livelihood.
• - Stage II: Honeymooners: Young married couple.
• - Stage III: Parenthood: Married couple with at least one
child living with them at home.
• - Stage IV: Postparenthood: An older married couple with
no children living at home. Children have left home for
studies or for employment.
• - Stage V: Dissolution: One surviving spouse.
Dr B.Anjan Kumar 17
 Stage I: Bachelorhood
• The stage comprises a young single adult (male/female)
living apart from parents and into a livelihood.
• Priorities and Preferences of Purchase: They tend to spend
their money on house rent, basic furniture and kitchen
equipment
• Implications for Marketers: Marketers realize that
bachelors possess large disposable income;
• they find in them an attractive segment for sports, travel,
entertainment and fun.
Dr B.Anjan Kumar 18
 Stage II: Honeymooners
• The stage comprises a newly married couple and continues till the
first child is born. One of the spouses may be working or both may
be working. They are financially better off than they would be in the
next stages.
• Priorities and Preferences of Purchase: They tend to spend on
creating a home for themselves.
• They spend on cars, furniture, curtains and upholstery, electronics,
kitchen appliances and utensils, and vacations.
• Implications for Marketers: They form an attractive segment for the
marketer as they form the highest purchase rate amongst segments.
The highest average purchase of durables takes place in this stage.

Dr B.Anjan Kumar 19
 Stage III: Parenthood
• The stage comprises married couple with children. This stage
extends for about a long 20-25 year period; and could be
further broken up into three stages, viz., Full Nest I, Full Nest II
and Full Nest III
• Full Nest I: The youngest child in the family is six or below
• Full Nest II: The youngest child in the family is six or above.
Generally the stage comprises, children aged 6-12 years
• Full Nest III: They are older married couples with dependent
and/or independent children but staying together at home.
Children reach the higher educational level; one of them may
start earning too.
Dr B.Anjan Kumar 20
 Stage IV: Postparenthood
• This is a stage that occurs once children have left home.
They leave home first for education, and then for
employment
• Empty Nest I: This is a stage that occurs when at least one
of the children has left home.
• Empty Nest II: In this stage, all the children have left
home, and the couple has retired from occupation. They
live on pension and other social security investments. If
health permits, they take up part-time jobs.
Dr B.Anjan Kumar 21
 Stage V: Dissolution
• This stage in the FLC occurs when one of the couple
dies, and leaves behind the other surviving spouse.
• Priorities and Preferences of Purchase: When one of
the spouses is still earning, or earns money from
savings and investments, things are little easier.
• Implications for Marketers: The stage is characteristic
of a widow/widower with lower income and least
shopping and expenses.
Dr B.Anjan Kumar 22
Thank you

Dr B.Anjan Kumar 23