Socio-cultural factors in consumer decision

processesJohn Sutton

Bite the wax tadpole

Eire 1994

Eat your fingers off

Marketing involves both technical and social elements.

◦ Technical elements are generally universally

◦ Social elements are market specific and display the cultural differences of a given society

The impact of socio-cultural factors on marketing is important in understanding consumer behaviour and planning appropriate market strategies

Socio-cultural Aspects of Marketing

The output of how consumers behave in decision making in buying goods or services. ◦ An important part of marketing:

Studies the reasons of consumers behaviour in their buying decisions Why, When, Where, What How

◦ Depends on different types of marketing stimuli (P’s)◦ and other factors

P.E.S.T - (Political, Economic, Socio-Cultural and Technological)

These all influence the consumer black box* to produce responses for making decision about selecting products, brand choice, price etc.

Consumer Buying Behaviour

*Keegan, Warren et al., “The Black Box Model of Consumer Behaviour,” Marketing (Englewod Cliffs, NJ: Prentice Hall, 1992), 193. * Lewin, Kurt (1951) Intention, Will and Need in: Rapaport, David (Ed); “Organization and Pathology of Thought: Selected Sources”; Columbia University Press (New York)

The cognitive process of selecting a course of action from multiple alternatives.◦ e.g. Shopping and deciding what to eat.

A psychological construct that implies a commitment to action / choice.

we can never "see" a decision BUT can conclude from observable behaviour when a decision has been made.

◦ Based on observable actions, we consider people have made a commitment to effect that action.

Decision Making

Analysing Consumer Buying Decisions

Generally three ways◦ Economic

Largely quantitative Assume rationality/near perfect

knowledge. Consumer theory /game theory

◦ Psychological models Qualitative -build on sociological

factors like cultural and family influences.

Concentrate on psychological and cognitive processes i.e. motivation and need recognition

◦ Consumer behaviour models Practical -used by marketers Blend economic and psychological

models.

Herbert Alexander Simon (1947 & 1957) claims:◦ Economic decision making a vain

attempt to be rational If a complete analysis is to be done-

decision immensely complex. Peoples' information processing ability

very limited. A perfectly rational economy

unrealistic. People only partially rational -

influenced by emotional and non-rational considerations

Administrative Behaviour: A Study of Decision-Making Processes in Administrative Organizations 1947 - 4th ed. in 1997, Models of Man. John Wiley. Presents mathematical models of human behaviour - 1957.

Cultural, social, personal and psychological factors have great influence on consumer buyer behaviour.

Human wants, perceptions, values, and behaviour are learned from society, family other institutions.

Influences On Consumer Buyer Behaviour

Socio-cultural Dimensions Customs, lifestyles, and values that

characterize a society ◦ include anything within the context of society that

has the potential to affect behaviour. Examples of socio-cultural variables.

◦ Population demographics, educational levels, norms and values, attitudes toward social responsibility...

"Collective programming of the mind which distinguishes the members of one category of people from another"

Hofstede, G. (1984 p.51). ). National cultures and corporate cultures. In L.A. Samovar & R.E. Porter (eds.), Communication between cultures. Belmont, CA: Wadsworth.

"Patterns relative to behaviour and the products of human action which may be inherited, that is, passed on from generation to generation independently of the biological genes"

Parson, T. (1949 p.8). ). Essays in sociological theory. Glencoe, IL.

"Learned and shared behaviour of a community of interacting human beings".

Useem, j., & Useem, R. (1963 p.169). Human organizations, 22(3).

Culture is...

Culture consists of beliefs, behaviours, objects, and other characteristics common to the members of a particular group or society.

◦ Through culture, people and groups define themselves, conform to society's shared values, and contribute to society.

includes many societal aspects: language, customs, values, norms, mores, rules, tools, technologies, products, organizations, and institutions.

This term institution refers to clusters of rules and cultural meanings associated with specific social activities.

Common institutions are the family, education, religion, work, and health care.

Culture is about...

Cheesemaker in a pickle over exports

Sterling's decline against the dollar and the euro means exports now offer hope to companies facing tough UK market conditions

                                                                                                                                                         UK Cheese maker in a pickle over exports

Friday 01 April 2011 Telegraph.co.uk

Socio-Cultural Aspects Marketers should Consider...

Aesthetics Education Language Law and Politics Material Culture Religion Social Organizations Technology Values and Attitudes  

Terpstra, V. and Sarathy, R. (2000) International Marketing, 8th Edition, Dryden Press.

MACRO SOCIAL

MICRO SOCIAL

INDIVIDUAL

BIOLOGICAL

cultures, generationsgenders, social class

lifestyle

sub-cultures, tribesinteractions, practices

individuals, subjectscognition, motives,

the unconscious

basic needsfood

Levels of Observation of Consumption (adapted from Desjeux, 1998)

Analyze how needs fit within the stages of the consumer behaviour model. ◦ (Note: Discuss either the consumer or industrial

model, whichever applies to your product/service. Describe the use of 'consumer buying

decisions‘ in formulating marketing strategies.

Why will a Chinese consumer be interested in buying a General Motors Vehicle?