Republic of the Philippines

BATANGAS STATE UNIVERSITY LIPA

Marawoy, Lipa City

College of Accountancy, Business and Economics

MKT. 102- Consumer Behavior

Chapter 2. Cross-Cultural Variations in Consumer Behavior

Culture is the complex whole that includes knowledge, belief, art, law, morals, customs, and any
other capabilities and habits acquired by humans as members of society.“everything that people
have, think, and do as members of their society”“the totality of the knowledge and practices,
both intellectual and material, of society”“the institutions, values, beliefs, and behaviors of a
society; everything we learn, as opposed to that with which we were born”
Culture:Is comprehensiveIs acquired or learnedProvides boundaries for membersIs typically
“invisible”Enculturation is the process of learning one’s own culture.Acculturation is the process
of learning a new culture.

National culture refers to the culture prevalent in a nation. It comprises the norms, rituals and
values common to everyone in that nation regardless of the subgroup affiliation.Popular culture
is the culture of the masses, with norms, rituals and values that have a mass appeal.Subculture is
the culture of a group within the larger society. The group may be based on any common
characteristics identifying that group as distinct from other groups or from the society at large.A
firm’s corporate culture is reflected in a company’s values, rituals and customs, and even in
corporate myths and celebrations of its heroes.
CultureSelf-Reference Criterion -- an unconscious reference to one’s own cultural values,
experiences, and knowledge as a basis for decisions.Cultural
Adaptation:ImperativesAdiaphoraExclusives

Lesson No 1. Cultural Factors Affect Consumer Behavior and Marketing Strategy

Culture Cultural Norms are accepted rules for behavior.

Cultural Values are widely held beliefs about what is good or right.Cultural Sanctions are
penalties for violations of cultural norms or disrespect for cultural values.Cultural Rituals are sets
of symbolic behaviors that occur in a fixed sequence and tend to be repeated
periodically.Cultural Myths are stories that express some key values of society.

Values, Norms, Sanctions, and Consumption Patterns

Specify rangesof appropriatebehaviorConsumptionpatternsCulturalvaluesSanctionsPenalties
forviolating normsThe McGraw-Hill Companies, Inc., 1998

Value Orientations Influence Behavior

Environment-orientedvaluesOther-Self-ConsumptionPurchaseCommunicationsSociety’s viewof
relationshipsbetween peoplewith environmentObjectives/approachesto life societyfinds
desirableThe McGraw-Hill Companies, Inc., 1998

 Cultural Values of Relevance to Consumer Behavior

Other-Oriented ValuesIndividual/Collective. Are individual activity and initiative valued more
highly than collective activity and conformity?Extended/Limited Family. To what extent does
one have a life-long obligation to numerous family members?Diversity/Uniformity. Does the
culture embrace variation in religious beliefs, ethnic backgrounds, political views, and so forth?
Masculine/Feminine. To what extent does social power automatically go to males?
Competitive/Cooperative. Does one obtain success by excelling over others or by cooperating
with them?Youth/Age. Are wisdom and prestige assigned to the younger or older members of a
culture?The McGraw-Hill Companies, Inc., 1998

Cultural Values of Relevance to Consumer Behavior

Environment-Oriented ValuesCleanliness. To what extent is cleanliness pursued beyond the
minimum needed for health?Performance/Status. Is the culture’s reward system based on
performance or on inherited factors such as family or class?Tradition/Change. Are existing
patterns of behavior considered to be inherently superior to new patterns of behavior?Risk
taking/Security. Are those who risk their established positions to overcome obstacles or achieve
high goals admired more than those who do not?Problem-solving/Fatalistic. Are people
encouraged to overcome all problems, or do they take a “what will be, will be” attitude?Nature.
Is nature regarded as something to be admired or overcome?The McGraw-Hill Companies, Inc.,
1998

Cultural Values of Relevance to Consumer Behavior

Self-Oriented ValuesActive/Passive. Is a physically active approach to life valued more than a
less active orientation?Material/Nonmaterial. How much importance is attached to the
acquisition of material wealth?Hard work/Leisure. Is a person who works harder than
economically necessary admired more than one who does not?Postponed gratification/Immediate
gratification. Are people encouraged to “save for a rainy day” or to “live for today”?Sensual
gratification/Abstinence. To what extent is it acceptable to enjoy sensual pleasures such as food,
drink, and sex?Religious/Secular. To what extent are behaviors and attitudes based on rules
specified by religious doctrine?The McGraw-Hill Companies, Inc., 1998

Nonverbal Communications
Nonverbal communication systems are the arbitrary meanings a culture assigns actions, events,
and things other than words.In his book Silent Languages of Doing Business Overseas,
anthropologist Edward Hall describes and illustrates how a culture’s norms and values are
manifested through friendship, agreements, and other similar actions. Hall calls these behaviors
“silent languages.”
Cultural Communication Orientations
Low-Context countries (North American and northern European countries):messages are explicit
and clearactual words convey the main point of informationwords and meanings can be
separated from the context in which they occurHigh-Context countries (Japan, France, Spain,
Italy, Asia and Middle Eastern Arab countries):communication is more indirectexpressive
manner in which the message is delivered is criticalmessage cannot be understood without its
context

Factors Influencing Nonverbal Communications

TimeEtiquetteSpaceNonverbalcommunicationsThingsSymbolsAgreementsFriendshipThe
McGraw-Hill Companies, Inc., 1998

Orientations Toward Time

Monochronic cultures (Americans, Germans, Swiss) handle information in a direct, linear
fashionschedules, punctuality and a sense of time that forms a purposeful straight line“time is
money”Polychronic cultures (Japanese, Hispanic) work on several fronts simultaneously time is
less important than tasktime and money are separate; timing is more important than time

Impact of Culture on Consumer Buying Behavior

In the process of globalization of a business, one thing that stands out is the need to connect with
the customer. A consumer is more than just an asset for a company, he is a parameter through
which that company can gauge its success in a market. This is the reason understanding
consumer behavior is so important—and the factors which shape this behavior are even more so. 

One thing that highly affects the way a consumer behaves is culture. 
A society’s culture is a reflection of its traditions, norms, values, and customs. The shopping
habits of individuals are particularly shaped by these factors. To define a consumer behavior
would be akin to defining an umbrella concept of many factors. Consumer behavior depends on
attitudes, motives, experiences, perceptions, values, self-concept, culture, family, profession, and
reference groups of society. Not surprisingly, a change in any of these would cause a change in
consumer behavior too. 

While it is a well-known fact that a marketer is able to control the consumer buying behavior, the
reality is far away from that. A marketer can indeed attract the buyers, but he cannot control
them as other factors affect the choices they make. These choices, on the other hand, are
dependent upon extrinsic factors such as culture.

Here’s a look at how the culture of a place affects the way a consumer thinks, makes choices,
and purchases:
 
The Concept of Belief
An international market brings with it some financial and cultural limits that are difficult to
assess for a new entrant. In order to understand the consumer mindset, therefore, it is critical to
know the cultural aspects that they practice. This culture is not just limited to the traditions and
customs, it also includes consumers’ thinking style, likes, dislike, language, customs, tools,
feelings, and attitudes. The consumer also has different beliefs that he projects on to his choices
when purchasing a product. 

Likewise, different countries have different beliefs according to which they practice the sale and
purchase of items. It must be kept in mind, though, that there can also be similarities in the
beliefs of different countries which makes it easier for marketers to target more than one country
with the same tagline or product. Nevertheless, some of the traditions and beliefs are confined to
a single region only which must be considered by marketers. For instance, number four is
considered unlucky in Japan, which is why most of the items sold in the country are sold in a
group of five. Another example is that of France, where men tend to buy more cosmetic brands
and hence the cosmetic industry markets its products differently than in other countries. 

A Look at Consumer Behavior

Before defining the role of culture in consumer buying habits and behaviors, it is important to
define what consumer behavior typically depends on. Consumer behavior principally relies upon
cultural elements that involve equal and united operating systems, tools, norms, unstated
assumptions and values, as well as standards for believing, perceiving, communicating, and
evaluating. Migrants from other countries find it particularly difficult to alter their purchasing
habits according to the current market, as they are exposed to an extensive variety of cultural
groups which ultimately affects their purchasing behavior. 

Additionally, reference groups may contain conflicting beliefs and ideas about products that
greatly impacts their purchase habits and choices. This is why marketers should strive to enhance
their marketing communication channels that would address these reference groups both locally
and globally. Other than that, they should engage micro-marketing and market segmentation to
provide tailored marketing messages for each region so that buyers are motivated to purchase the
advertised services and products.  To prepare tailored marketing messages for each region, it’s
better to hire professional localization services.
 

Lesson No. 2. Effect of Culture on Consumers

To define the culture of a nation, it is imperative to first examine the belief system and values of
the people residing there. A culture can be defined as the total average of beliefs, values, and
traditions that are directly linked to the consumer behavior of members of a specific society.
Generally, both beliefs and values are mental images that affect particular attitudes which,
consequently, variates the methods a person uses to make choices in brands and services. For
example, a product category like “Audi vs Volvo” would entail customers choosing from among
these alternatives, and his preference of a brand over the other will be affected by his common
values and beliefs. In contrast to values and beliefs, traditions are habits and suitable ways of
behaving, whereas the former is just rules of behavior. An example is the addition of ketchup on
an omelet and the preference of green tea over milk tea. 

Culture determines the consumer’s experiences, beliefs, and values, which in turn is directly
linked to attitudes, emotions, social norms, intentions, and behaviors. Personal culture represents
the local area. For instance, the people residing in several states in a specific area of South
America have similar cultural habits. Religious differences or similarities, on the other hand, are
backed by aspects like common core values, personalities, and customs, etc. Groups that
influence the choice of consumers are typically sorted into workgroups, shopping groups,
friendship groups, and families.
 
What Consumer Behavior Entails?
According to research on consumer buying habits, consumer behavior education is all about
consumer buying behavior, according to which a consumer has three different roles in a
marketing field—that of a buyer, user, and payer. Moreover, consumer behavior is the study
regarding individuals, organizations, and groups as well as the procedures they use to choose,
protect, and discard products. Likewise, it combines the elements of economics, social
anthropology, psychology, and sociology, helping to learn about buyer’s purchasing mentality,
both in groups and individually. It also observes the features of individual consumers like
demographics and behavioral variables in order to know the consumers’ desires and wants.
Although it is not easy to predict consumer behavior, a huge significance can also be placed on
customer relationship management, consumer retention, customization personalization, and one-
to-one marketing to understand why a consumer behaves the way he does. 
 
The Last Word
The world of today is becoming more globalized with each passing day, but it cannot be denied
that people all over the globe have the same needs and wishes, which is why it becomes easier
for companies to produce the same items for different regions. However, strong differences still
remain among the choices that consumers make according to cultural backgrounds. Companies
must understand these differences, especially if they are aiming to sell products for the first time
in a region or country. Understanding these differences is the key to making sure a firm is able to
gain sound returns from its investments in markets, in addition to producing profits for their
company. The bottom line is that understanding the culture of a region can prove to be a gateway
to getting inside the customers’ head–and in their preference list as well. 

Cultural Factors affecting Consumer Behaviour

Consumer behaviour deals with the study of buying behaviour of consumers. Consumer
behaviour helps us understand why and why not an individual purchases goods and services from
the market.
There are several factors which influence the buying decision of consumers, cultural factors
being one of the most important factors.
What are Cultural Factors ?
Cultural factors comprise of set of values and ideologies of a particular community or
group of individuals. It is the culture of an individual which decides the way he/she behaves. In
simpler words, culture is nothing but values of an individual. What an individual learns from his
parents and relatives as a child becomes his culture.
Example - In India, people still value joint family system and family ties. Children in India are
conditioned to stay with their parents till they get married as compared to foreign countries
where children are more independent and leave their parents once they start earning a living for
themselves.

Cultural factors have a significant effect on an individual’s buying decision. Every individual has
different sets of habits, beliefs and principles which he/she develops from his family status and
background. What they see from their childhood becomes their culture.

Let us understand the influence of cultural factors on buying decision of individuals with
the help of various examples.
Females staying in West Bengal or Assam would prefer buying sarees as compared to Westerns.
Similarly a male consumer would prefer a Dhoti Kurta during auspicious ceremonies in Eastern
India as this is what their culture is. Girls in South India wear skirts and blouses as compared to
girls in north India who are more into Salwar Kameez.
Our culture says that we need to wear traditional attire on marriages and this is what we have
been following since years.
People in North India prefer breads over rice which is a favorite with people in South India and
East India.

Subcultures
Each culture further comprises of various subcultures such as religion, age, geographical
location, gender (male/female), status etc.

Religion (Christianity, Hindu, Muslim, Sikhism, Jainism etc)

A Hindu bride wears red, maroon or a bright colour lehanga or saree whereas a Christian bride
wears a white gown on her wedding day. It is against Hindu culture to wear white on auspicious
occasions. Muslims on the other hand prefer to wear green on important occasions.
For Hindus eating beef is considered to be a sin whereas Muslims and Christians absolutely
relish the same. Eating pork is against Muslim religion while Hindus do not mind eating it.
A sixty year old individual would not like something which is too bright and colorful. He would
prefer something which is more sophisticated and simple. On the other hand a teenager would
prefer funky dresses and loud colours.
In India widows are expected to wear whites. Widows wearing bright colours are treated with
suspicion.
Status (Upper Class, Middle class and Lower Class)
People from upper class generally have a tendency to spend on luxurious items such as
expensive gadgets, cars, dresses etc.You would hardly find an individual from a lower class
spending money on high-end products. A person who finds it difficult to make ends meet would
rather prefer spending on items necessary for survival. Individuals from middle class segment
generally are more interested in buying products which would make their future secure.

Gender (Male/Female)
People generally make fun of males buying fairness creams as in our culture only females are
expected to buy and use beauty products. Males are perceived to be strong and tough who look
good just the way they are.

Lesson 3. VARIATION IN CULTURAL VALUES - CONSUMER BEHAVIOUR

There are three broad forms of cultural values as shown in Figure Values, norms sanctions and
consumption pattern.

Other Oriented Values

Other Oriented Values of Culture
This shows the relationship between individuals and the society. The relationship influences
marketing practices. If the society values collective activity decisions will be taken in a group.It
gives rise to following questions which affect consumer behaviour:
Individual/collective: Whether individual initiation has more value than collective activity?
Romantic orientation: This depicts whether the communication is more effective which
emphasises courtship or otherwise. In many countries, a romantic theme is more successful.
Adult/child theme: Is family life concentrated round children or adults? What role do children
play in decision-making? Masculine/Feminine: Whether the society is made dominant or women
dominant or balanced.
Competitive/Cooperation: Whether competition leads to success. This is achieved by forming
alliances with others.
Youth/age: Are prestige roles assigned to younger or older members of the society. American
society is youth oriented and Korean is age oriented. Decisions are taken by mature people in
Korea.

Environment-oriented Values
Cleanliness: If a culture lays too much stress on cleanliness, there is scope for the sale of beauty
creams, soaps, deodorants, insecticides, washing powder, vacuum cleaner, etc. In western
countries, a lot of emphasis is placed on this aspect and perfumes and deodorants are widely
used.
Performance Status: A status-oriented society cares for higher standards of living, and chooses
quality goods and established brand names and high-price items. This is true for the United
States, Japan, Singapore, Malaysia, Indonesia, Thailand and most of the Arabian countries.
In performance-oriented societies, where rewards and prestige is based on an individuals
performance, less importance is given to brand names. Products which function equally well and
may not be big brand names are used. Germans do not give the same amount of emphasis to
brand names. The marketeers adopt strategies accordingly.
Tradition/change: Tradition-oriented societies stick to the old product and resist innovation or
new techniques. In traditional societies, there is less scope for new products, and old traditional
products are in greater demand. In some societies, which are upwardly mobile,consumers are
looking for modern methods, new products, new models and new techniques.
Risk-taking/security: An individual who is in secure position and takes a risk can be either
considered venture some or fool hardy. This depends on the culture of the society. For
developing, new entrepreneurs risk taking is a must. It leads to new product development,new
advertising themes and new channels of distribution. Security-oriented societies have little
chances of development and innovation.
Problem solving/fatalist: A society can be optimistic and have a problem-solving attitude or, be
inactive and depend on fate. This has marketing implications on the registering of complaints
when consumers are dissatisfied with the purchase of the products. Advertising plays an
important part and gives guidance to the consumer, and removes these doubts to a great extent.
Nature: There are differences in attitude over nature and its preservation. Consumers stress on
packing materials that are recyclable and environment friendly. Some countries give great
importance to stop environmental pollution and to recycling of products.

Companies like P&G, Colgate-Palmolive captured a great extent of the market by offering
products which are less harmful to the environment. They also use ingredients in the products
which are not harmful in any way.

Categories of influences on consumers

What, Exactly, Influences a Purchasing Decision?

While the decision-making process itself appears quite standardized, no two people make a
decision in exactly the same way. People have many beliefs and behavioral tendencies—some
controllable, some beyond our control. How all these factors interact with each other ensures that
each of us is unique in our consumer actions and choices.

Although it isn’t feasible for marketers to react to the complex, individual profiles of every
single consumer, it is possible to identify factors that tend to influence most consumers in
predictable ways.

The factors that influence the consumer problem-solving process are many and complex. For
example, as groups, men and women express very different needs and behaviors regarding
personal-care products. Families with young children tend to make different dining-out choices
than single and married people with no children. A consumer with a lot of prior purchasing
experience in a product category might approach the decision differently from someone with no
experience. As marketers gain a better understanding of these influencing factors, they can draw
more accurate conclusions about consumer behavior.

We can group these influencing factors into four sets, illustrated in the figure below:

 Situational Factors pertain to the consumer’s level of involvement in a buying task and

the market offerings that are available.
 Personal Factors are individual characteristics and traits such as age, life stage, economic
situation, and personality.
 Psychological Factors relate to the consumer’s motivation, learning, socialization,
attitudes, and beliefs.
 Social Factors pertain to the influence of culture, social class, family, and reference
groups.

Three major categories of influences affect the consumer buying decision process:
situational, psychological, and social. Situational influences are external circumstances or
conditions existing when a consumer makes a purchase decision. Situational influences include
surroundings, time, reason for purchase, and the buyer's mood and condition.

Psychological influences partly determine people's general behavior, thus influencing their
behavior as consumers. The primary psychological influences on consumer behavior are
perception, motives, learning, attitudes, personality and self-concept, and lifestyles. Perception is
the process of selecting, organizing, and interpreting information inputs (sensations received
through sight, taste, hearing, smell, and touch) to produce meaning. The three steps in the
perceptual process are selection, organization, and interpretation. Individuals have numerous
perceptions of packages, products, brands, and organizations that affect their buying decision
processes. A motive is an internal energizing force that orients a person's activities toward
satisfying needs or achieving goals. Learning refers to changes in a person's thought processes
and behavior caused by information and experience. Marketers try to shape what consumers
learn to influence what they buy. An attitude is an individual's enduring evaluation, feelings, and
behavioral tendencies toward an object or idea and consists of three major components:
cognitive, affective, and behavioral. Personality is the set of traits and behaviors that make a
person unique. Self-concept, closely linked to personality, is one's perception or view of oneself.
Research indicates that buyers purchase products that reflect and enhance their self-concepts.
Lifestyle is an individual's pattern of living expressed through activities, interests, and opinions.
Lifestyles influence consumers' needs, brand preferences, and how and where they shop.

Social influences are forces that other people exert on buying behavior. They include roles,
family, reference groups and opinion leaders, social class, and culture and subcultures. Everyone
occupies positions within groups, organizations, and institutions, and each position has a role, a
set of actions and activities that a person in a particular position is supposed to perform based on
expectations of both the individual and surrounding persons. In a family, children learn from
parents and older siblings how to make decisions, such as purchase decisions. Consumer
socialization is the process through which a person acquires the knowledge and skills to function
as a consumer. The consumer socialization process is partially accomplished through family
influences. A reference group is a group that a person identifies with so strongly that he or she
adopts the values, attitudes, and behavior of group members. The three major types of reference
groups are membership, aspirational, and disassociative. An opinion leader is a member of an
informal group who provides information about a specific topic to other group members. A
social class is an open group of individuals with similar social rank. Social class influences
people's spending, saving, and credit practices. Culture is the accumulation of values,
knowledge, beliefs, customs, objects, and concepts that a society uses to cope with its
environment and passes on to future generations. A culture is made up of subcultures, groups of
individuals whose characteristic values and behavior patterns are similar and different from those
of the surrounding culture

The factors which influence consumer behavior

A large number of factors influence our behaviour. Kotler and Armstrong (2008) classify these
as:
 1. Psychological (motivation, perception, learning, beliefs and attitudes)
2. Personal (age and life-cycle stage, occupation, economic circumstances, lifestyle,
personality and self concept)
3. Social (reference groups, family, roles and status)
4. Cultural (culture, subculture, social class system).

One thing that highly affects the way a consumer behaves is culture. 

A society’s culture is a reflection of its traditions, norms, values, and customs. The shopping
habits of individuals are particularly shaped by these factors. To define a consumer behavior
would be akin to defining an umbrella concept of many factors. Consumer behavior depends on
attitudes, motives, experiences, perceptions, values, self-concept, culture, family, profession, and
reference groups of society. Not surprisingly, a change in any of these would cause a change in
consumer behavior too. 

Culture affect behavior

Culture is a belief about ethics, behaviors and values that are held by a majority of people within
a society. The culture of which we are a part impacts our identity and even our beliefs about the
nature of life. The type of culture either Individualistic or Collective into which a person is born
affects and influences what that person believes and how that person behaves. For example,
someone growing up in a “tight” (Collective) culture, where rules are strongly enforced, does not
support individualistic thought or behavior.

However, persons who are raised in a “loose” (Individualistic) culture have more latitude in how
they behave and what they believe. Loose cultures are more prominent in western societies like
America. These cultures are based on the belief that a person’s life belongs to that person, which
is in alignment with the founding fathers’ Bill of Rights.

On the other hand, Collective cultures believe a person’s first obligation is to society. And, they
must sacrifice their needs to benefit the greater good. When rules of thought and behavior are
more rigid, it is a Collective society.

Every culture has aspects of Individualistic and Collectivistic beliefs, but in Individualistic
cultures more value is placed on being extroverted. Individualistic cultures find people to be
more open than Collectivistic cultures. And, Collectivistic cultures support a more introverted
personality style and encourage behaviors that are representative of the majority of people.
Collectivistic cultures are good at seeing other people’s perspective to foster group harmony,
whereas there is not as much in Individualistic cultures.
The personality trait of extroversion motivates people’s individualistic thought and behavior so
there are more differences in the population. If culture fosters a more extroverted personality
style, we can expect more need for social interaction. Additionally, Individualistic cultures foster
more assertive and outspoken behavior. When the general population encourages these
gregarious behaviors, more ideas are exchanged and self-esteem increases.

The opposite of extroversion is not introversion. More correctly, people who are low in
extroversion are more likely to be less socially inclined, but that doesn’t mean that they do not
enjoy socializing. They may like to socialize in smaller groups or one on one. They can be less
assertive. Additionally, a person who is low in extroversion tends to be less energetic and less
active.

Another difference can be noted by comparing the moods of extroverts with those who have less
extroversion. People who come from loose cultures seem to be happier. This may be because
they get more attention. Being noticed is a psychological reward.

Culture also reinforces certain religious beliefs. Some countries are predominantly Catholic
while others may be Protestant, Muslim, Jewish, Hindu or Buddhist. Each religion carries its
own set of standards for personal conduct. For example, consider how these cultures limit the
choices people have in choosing a profession, a spouse, women’s roles and the garments they
wear and behave.

Some cultures encourage close physical proximity when in conversation, while others foster
loud, even argumentative verbal exchanges, and some may prize soft-spoken, polite
conversation.

Emotional well-being is generally more evidenced in cultures that promote belief in facts and not
theories because there is more emotional security in reality. Greater emotional well-being was
noted in immigrants whose personality characteristics were more congruent with the cultural
norms of the new country to which they migrated. There are fewer adjustments to be made in
similar cultures.

Although culture is often used to explain behavior, we have little understanding of why some
culture traits have impacts on behavior while others do not. Because culture traits can lead to
maladaptive as well as to adaptive behaviors, gene–culture coevolution should have led
predispositions that help us make good choices about which culture traits to act on and which to
ignore. More specifically, we should tend to be susceptible to the influence of types of culture
traits that among our ancestors would have routinely lead to adaptive outcomes. One such
category of culture trait is social coordination conventions, that is, culture traits that help us reap
the benefits of cooperation by helping us coordinate our behaviors with those of others. Field and
laboratory studies indicate that humans are susceptible to the influence of such conventions. The
influence of other kinds of culture traits on behavior may be less predictable, with culture and
behavior diverging in situations where social coordination is not an issue and influences on
behavior other than culture may hold sway. This line of research may have implications for our
understanding not only of such scientific issues as the spatial distribution of culture traits, ethnic
markers, and cultural transmission but also practical issues in pedagogy and jurisprudence.

Culture. It has something to do with appreciating art. It's often cited when people discuss why
Americans work long hours. Now some scientists claim that orangutans have culture based on
evidence of "socially transmitted behaviors."

In other words, the meaning of culture may seem clear enough when used casually, at a cocktail
party, but like a Seurat painting it becomes less distinct upon close examination. And a sure-fire
way to provoke a heated debate among a group of anthropologists is to make the definition of
culture the focus of a conference. Melissa Brown, assistant professor of anthropological sciences,
did just that a couple of weeks ago.

Lesson 4. Culture impact consumer behavior

Effect of sub-culture of the Consumer Behavior

Geographical regions and religions are essential in the formation of sub-culture. The
preference of individuals who live very close to each other can be differernt. Individuals
belonging to different have different sub-culture values, attitudes and social structures of
the members of other sub-culture These differences, sub-cultural segmentation of the
market activity has made an important variable. It is important to know the characteristics
of the sub-culture in creating the marketing mix price, brand name identification, promotional
activities and product positioning.

 Social Classes
Each and every society across the globe has form of social class. The social class is not
just determined by the income, but also other factors such as the occupation, family background,
education and residence location. Social class is important to predict the consumer behavior.
The social groups or membership groups to which an individual belongs are the social
classes that influence him. In the social classes, we usually find people with similar values,
lifestyle and behavior. Now a marketer or a researcher needs to pay attention here because
generally the buying behavior of people in a particular social class to some extent is similar,
though the level of influence may be low or high, he can tailor his marketing activities according
to different social classes. Social perception is a very important attribute that influences the
buying behavior of an individual.
Social groups, although they dont shown in a formal process of similar lifestyle shows
are groups formed by individuals.There are several features of social class. First, the
behavior of members of the social class structure, education levels, attitudes, values and
communication styles are similar, and these characteristics are different from other social class
members.
Sometimes an individual also is influenced by a social group to which he does not
belong, but wishes to get connected with others. 
Marketers need to understand these situations well and plan their strategies accordingly
for such social benefits. Individuals play various roles in the consumer buying process.

 Initiator − Initiator is usually the person who comes up with an idea and suggests the
purchase.
 Influencer − He is the individual who actually pushes for the purchase. He highlights
the benefits of the product. This individual can be from the family or friend or outside
the group too.
 Decision Maker − He is generally the person who takes the final decision or the final
call after analyzing all the pros and cons of the product. He may not necessarily be the
final buyer as may also take the decision on behalf of the consumer.

For example, a father might decide on buying a laptop for his son or a brother might
decide on the best career option for his sister.

 Buyer − Buyer is generally the end user or the final consumer who uses the product.

Major Factors Influencing Consumer Behavior

Consumer behavior is influenced by many different factors. A marketer should try to
understand the factors that influence consumer behavior. Here are 5 major factors that influence
consumer behavior:
1. Psychological Factors
Human psychology is a major determinant of consumer behavior. These factors are
difficult to measure but are powerful enough to influence a buying decision.
Some of the important psychological factors are:

 Motivation
When a person is motivated enough, it influences the buying behaviour of the person. A
person has many needs such as the social needs, basic needs, security needs, esteem needs and
self-actualization needs. Out of all these needs, the basic needs and security needs take a position
above all other needs. Hence basic needs and security needs have the power to motivate a
consumer to buy products and services.

 Perception
Consumer perception is a major factor that influences consumer behavior. Customer
perception is a process where a customer collects information about a product and interprets the
information to make a meaningful image about a particular product.
When a customer sees advertisements, promotions, customer reviews, social media
feedback, etc. relating to a product, they develop an impression about the product. Hence
consumer perception becomes a great influence on the buying decision of consumers.

 Learning
When a person buys a product, he/she gets to learn something more about the product.
Learning comes over a period of time through experience. A consumer’s learning depends on
skills and knowledge. While a skill can be gained through practice, knowledge can be acquired
only through experience.
Learning can be either conditional or cognitive. In conditional learning the consumer is
exposed to a situation repeatedly, thereby making a consumer to develop a response towards it.
Whereas in cognitive learning, the consumer will apply his knowledge and skills to find
satisfaction and a solution from the product that he buys.

 Attitudes and Beliefs

Consumers have certain attitude and beliefs which influence the buying decisions of a
consumer. Based on this attitude, the consumer behaves in a particular way towards a product.
This attitude plays a significant role in defining the brand image of a product. Hence, the
marketers try hard to understand the attitude of a consumer to design their marketing campaigns.

Social Factors
Humans are social beings and they live around many people who influence their buying
behavior. Human try to imitate other humans and also wish to be socially accepted in the society.
Hence their buying behavior is influenced by other people around them. These factors are
considered as social factors. Some of the social factors are:

 Family
Family plays a significant role in shaping the buying behavior of a person. A person develops
preferences from his childhood by watching family buy products and continues to buy the same
products even when they grow up.

 Reference Groups
Reference group is a group of people with whom a person associates himself. Generally, all the
people in the reference group have common buying behavior and influence each other.
  Roles and status
A person is influenced by the role that he holds in the society. If a person is in a high position,
his buying behavior will be influenced largely by his status. A person who is a Chief Executive
Officer in a company will buy according to his status while a staff or an employee of the same
company will have different buying pattern. 

Personal Factors
Factors that are personal to the consumers influence their buying behavior. These
personal factors differ from person to person, thereby producing different perceptions and
consumer behavior.
Some of the personal factors are:

 Age
Age is a major factor that influences buying behavior. The buying choices of youth differ
from that of middle-aged people. Elderly people have a totally different buying behavior.
Teenagers will be more interested in buying colorful clothes and beauty products. Middle-aged
are focused on house, property and vehicle for the family.

 Income
Income has the ability to influence the buying behavior of a person. Higher income gives
higher purchasing power to consumers. When a consumer has higher disposable income, it gives
more opportunity for the consumer to spend on luxurious products. Whereas low-income or
middle-income group consumers spend most of their income on basic needs such as groceries
and clothes.

 Occupation
Occupation of a consumer influences the buying behavior. A person tends to buy things
that are appropriate to this/her profession. For example, a doctor would buy clothes according to
this profession while a professor will have different buying pattern.

 Lifestyle
Lifestyle is an attitude, and a way in which an individual stay in the society. The buying
behavior is highly influenced by the lifestyle of a consumer. For example when a consumer leads
a healthy lifestyle, then the products he buys will relate to healthy alternatives to junk food.

Economic Factors
The consumer buying habits and decisions greatly depend on the economic situation of a
country or a market. When a nation is prosperous, the economy is strong, which leads to the
greater money supply in the market and higher purchasing power for consumers. When
consumers experience a positive economic environment, they are more confident to spend on
buying products.
Whereas, a weak economy reflects a struggling market that is impacted by
unemployment and lower purchasing power.
Economic factors bear a significant influence on the buying decision of a consumer.
Some of the important economic factors are:

 Personal Income
When a person has a higher disposable income, the purchasing power increases
simultaneously. Disposable income refers to the money that is left after spending towards the
basic needs of a person.
When there is an increase in disposable income, it leads to higher expenditure on various
items. But when the disposable income reduces, parallelly the spending on multiple items also
reduced.

 Family Income
Family income is the total income from all the members of a family. When more people
are earning in the family, there is more income available for shopping basic needs and luxuries.
Higher family income influences the people in the family to buy more. When there is a
surplus income available for the family, the tendency is to buy more luxury items which
otherwise a person might not have been able to buy.
 Consumer Credit
When a consumer is offered easy credit to purchase goods, it promotes higher spending.
Sellers are making it easy for the consumers to avail credit in the form of credit cards, easy
installments, bank loans, hire purchase, and many such other credit options. When there is higher
credit available to consumers, the purchase of comfort and luxury items increases.

 Liquid Assets 
Consumers who have liquid assets tend to spend more on comfort and luxuries. Liquid
assets are those assets, which can be converted into cash very easily. Cash in hand, bank savings
and securities are some examples of liquid assets. When a consumer has higher liquid assets, it
gives him more confidence to buy luxury goods.

 Savings
A consumer is highly influenced by the amount of savings he/she wishes to set aside
from his income. If a consumer decided to save more, then his expenditure on buying reduces.
Whereas if a consumer is interested in saving more, then most of his income will go towards
buying products.
ELVIS B. LUMANGLAS, MDM
Course Instructor

ACADEMIC INFRASTRUCTURE
Textbook
T1 : Zubin, Setna and Jim Blythe, Consumer Behaviour, SAGE
Publications India
References:
R1 : Medina, Roberto G. 2011. Human Behavior in Organization.
Quezon City: Rex Bookstore, Inc.
R2 : Newstrom, John W., 2007. Organizational Behavior; Human
Behavior at Work, McGraw Hill International Edition,
R3 : Phillips, Jean M., Organizational Behavior Tools for Success,
International Edition, 2014 Wadsworth, Cengage Learning

Online References:

file:///C:/Users/User/Downloads/[22331999%20-%20South%20East%20European%20Journal
%20of%20Economics%20and%20Business]%20Cross-Cultural%20Variations%20in
%20Consumer%20Behavior_%20A%20Literature%20Review%20of%20International
%20Studies%20(1).pdf

https://study.com/academy/lesson/consumer-behavior-influences-cross-cultural-variations-
demographics.html#:~:text=Differences%20between%20countries%20in%20values,decide
%20which%20product%20to%20buy.