TYBBA (SEM-VI) CB DR.

SUDHADHARA SAMAL

PROF. V.B. SHAH INSITUTE OF MANAGEMENT,

AMROLI, SURAT

COURSE: B.B.A
YEAR: T.Y.BBA (SEM –VI)
SUBJECT: ConsumerBehaviour
Faculty: Dr. Sudhadhara Samal

UNIT 4: Social class and culture (20%)

 Meaning of social stratification and social class, Nature of Social class Influences,
Social class Characteristics, Social Influence on Consumer behaviour.
 Culture (Definitions and Meanings) – Traditional and Changing Indian Values, Sub
Culture, Cross Cultural Marketing Analysis.

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4.1 Meaning of Social Stratification and Social Class

 Meaning of social stratification

Social stratification refers to a society's categorization of its people into groups based
on socioeconomic factors like wealth, income, race, education, ethnicity, gender, occupation,
social status, or derived power (social and political). As such, stratification is the relative
social position of persons within a social group, category, geography region, or social unit.

In modern Western societies, social stratification is typically defined in terms of three social
classes: the upper class, the middle class, and the lower class; in turn, each class can be
subdivided into the upper-stratum, the middle-stratum, and the lower stratum. Moreover, a
social stratum can be formed upon the bases of kinship, clan, tribe, or caste, or all four.

The categorization of people by social stratum occurs most clearly in complex state-
based, polycentric, or feudal societies, the latter being based upon socio-economic relations
among classes of nobility and classes of peasants. Historically, whether or not hunter-
gatherer, tribal, and band societies can be defined as socially stratified, or if social
stratification otherwise began with agriculture and large-scale means of social exchange,
remains a debated matter in the social sciences. Determining the structures of social
stratification arises from inequalities of status among persons; therefore, the degree of social
inequality determines a person's social stratum. Generally, the greater the social
complexity of a society, the more social stratification exists, by way of social differentiation.

 Meaning of social class

A social class is a set of concepts in the social sciences and political theory centred on models
of social stratification which occur in a class society, in which people are grouped into a set
of hierarchical social categories, the most common being the upper, middle and lower classes.
Membership in a social class can for example be dependent on education, wealth, occupation,
income, and belonging to a particular subculture or social network.

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4.2 Nature of Social Class Influences

1. Class is an economic group:

Although a social class is mostly determined on the basis of the location of the production
and distribution of social wealth, they are not mere economic groups or divisions. It also
includes both the subjective and objective criteria such as, class consciousness, class
solidarity and wealth, property, income, education and occupation. Marx considered class on
the economic basis.

2. Class is also a status group:

Class is also related to status dimension. The consideration of the class as a status group is
applied to a society which has many strata. Status groups are composed of persons having the
same life style and receiving about the same social honour from others. Therefore, the status
consciousness separates the individuals both physically and psychologically.

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3. An achieved pattern:
Status is achieved in a class system and not ascribed. As such, birth is not the basis of
acquisition of one‟s status and one‟s status is not fixed throughout his life. One may improve
his status if he acquires capability and talent necessary for that. On the other hand, one may
also lose his status, if he fails to maintain his ability and talent.

4. The class system is ubiquitous:

As a universal phenomenon class system is prevalent in all the modern and complex social
systems. However, small, simple and primitive societies are mostly free from such a pattern
of stratification.

5. Feeling of class-consciousness:
Feeling of class consciousness is experienced among the members of a particular class at
three levels. First, the members feel a sense of equality within their own class. Secondly, the
feeling of inferiority inheres in the minds of those who occupy the lower status in the socio-
economic hierarchy. Thirdly, the members of a class experience the feeling of superiority in
relation to those who are placed in the lower range in the hierarchy. Such feelings cause class
consciousness and finally result in strengthen the basis of class.

6. Prestige dimension:
Wealth, income, education and occupation are some of the basic determinants of class. As it
is an open system, anyone who satisfies the basic criteria can become its member. Therefore
persons belonging to a particular class develop status consciousness and this is reflected
through the status symbols of different class groups. The status symbols of the upper classes
are considered prestigious, whereas the status symbols of the middle classes are considered
less prestigious.

7. Relatively stable group:

A class is characterised by an element of stability, unlike a crowd or mob of course, social
mobility is possible due to the openness of the system, nevertheless it cannot be interpreted as
transitory. Under certain extraordinary situations the class is subject to rapid transformation.
Such circumstances include crises in the social, economic and political spheres, revolutions,
movements, wars etc.

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8. Open to social mobility:

An open system of stratification is characterised by vertical mobility pattern in which upward
and downward movements of individuals in the social hierarchy are possible. This is not to
say that there is no resistance at all, but the resistance is mild and not as severe as found in
the caste system.

9. Varieties of life styles:

A particular social class is marked off from the other classes by its „life styles‟ which
comprises the mode of living such as, the dress pattern, the type of house and the social
environment, where the members live, the leisure time activities, the mode of consumption,
the pattern of relationship between the spouses and their off-springs, the exposure to media,
the circle of friendship, the mode of conveyance and communication, ways of behaving etc.
All these make differences between different classes and exhibit the class- values and caste
preferences.

4.3 Social class characteristics

Social class is the segment of a society arrived at by a hierarchical classification of

individuals and families with a distinct status. The members of each class have relatively the
same status. The status denotes the aggregate effect of the members of a class. Analysis of the
characteristics of the social class will help the marketer to understand its consumption
pattern. The important characteristics of the social class are explained below:

1. The members of each class have relatively the same status

A social class is defined by the amount of status, which the members of that class have in
comparison with members of other social classes. The members in a particular social class
have relatively the same status. An individual or family achieves social class by acquisition
of skills, education, wealth and recognition. The status of the member reflects the aggregate
effect of influence and recognition conferred on them by the society. This in turn is either
more or less than the status of other classes.

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2. Persons within a given class tend to behave alike

Social classes are homogeneous divisions of the society. Each social class shows similar life-
styles, values, status, prestige and interests. So, the behavior pattern of the members becomes
similar. There are also shared attitudes and behavioural pattern among members. So, the
behavioural pattern differs among social classes. For example, a person belonging to middle
class prefers economically priced cars. But upper income group will prefer highly priced cars.
Thus, social classes exhibit varying buying pattern in purchase of products that meets the life-
style, status and prestige of their members.

3. Social class is hierarchical

Social class is determined by a hierarchical classification of individuals and families with a
distinct status. Families can climb the social ladder by achievement of members. When each
generation within a family tends to do better, there is an upward mobility in the social ladder.
When young adults have less disposable income than their successful parents, they may slide
down in the class hierarchy. The hierarchical aspect of social class is important to marketers.
Consumers may prefer to purchase products favored by their own or higher social class (e.g.
imported luxury automobiles). Consumers may avoid certain products because they perceive
the products to be lower class products.

4. Social class is measured by a combination of variables

Researchers use a combination of variables to measure social class. A number
of socioeconomic factors are combined to form one over all members of social class standing.
They better reflect the complexity of social class than a single variable. For example, to know
the consumer perceptions of mail and phone order shopping, the socioeconomic status was
studied by using a composite of income occupational status and education. It reveals that
higher the socioeconomic status, the more positive are the consumers ratings of mail and
phone order buying, relative to in-store shopping.

5. Social class is mobile

Social class membership is not hard and fixed. Individuals can move either up or down in
social class standing. The availability of free education and opportunities for self-
development prompts success in business and in life. Successful persons move up to the

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higher class. Today, many young men and women start their own business to have higher
social status. Higher social classes become reference groups for ambitious men and women of
lower social status. Signs of upward mobility are found in India. For instance, plastic surgery
was once affordable only for movie stars and other wealthy people. Today, consumers of all
economic strata undergo cosmetic surgery.

6. Social class and status differentiation

Researchers measure social class in terms of social status. They define each social class by
the amount of status of the members of that class. It is also known as “Social stratification“.
Social stratification has resulted in differentiated roles. For example, a person with higher
status owns a car. A middle class status person owns a two-wheeler. A person with lower
status owns a bicycle. This is the symbolic identification of role and status based on social
classification.

4.4 Social Influence on consumer Behaviour

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:

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i. 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.

ii. 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.

iii. 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

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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.

iv. 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.
2. 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:

i. 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.

ii. 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.

iii. 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.

3. Cultural factors
A group of people are associated with a set of values and ideologies that belong to a
particular community. When a person comes from a particular community, his/her behavior is

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highly influenced by the culture relating to that particular community. Some of the cultural
factors are:

i. Culture
Cultural Factors have strong influence on consumer buyer behavior. Cultural Factors include
the basic values, needs, wants, preferences, perceptions, and behaviours that are observed and
learned by a consumer from their near family members and other important people around
them.

ii. Subculture
Within a cultural group, there exists many subcultures. These subcultural groups share the
same set of beliefs and values. Subcultures can consist of people from different religion,
caste, geographies and nationalities. These subcultures by itself form a customer segment.

iii. Social Class

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.

4. 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:

i. 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 colourful clothes and beauty products. Middle-
aged are focused on house, property and vehicle for the family.

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ii. 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.

iii. 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.
iv. Lifestyle
Lifestyle is an attitude, and a way in which an individual stay in the society. The buying
behaviour 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.

5. 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:

i. 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.

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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.

ii. 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.

iii. 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.

iv. 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.

v. 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.

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4.5 Culture

4.5.1 Meaning of culture

Culture is the sum of learned beliefs, values, and customs that regulate the behaviour of
members of a particular society. Through our culture, we are taught how to adjust to the
environmental, biological, psychological, and historical parts of our environment. Beliefs and
values are guides of behaviour, and customs are acceptable ways of behaving. A belief is an
opinion that reflects a person‟s particular knowledge and assessment of (“I believe that …”).
Values are general statements that guide behaviour and influence beliefs and attitudes
(“Honesty is the best policy”). A value system helps people choose between alternatives in
everyday life. Customs are overt modes of behaviour that constitute culturally approved ways
of behaving in specific situations. Customs vary among countries, regions, and even families.

4.5.2 Definition of Culture

Culture can be defined as all the ways of life including arts, beliefs and institutions of a
population those are passed down from generation to generation. Culture has been called "the
way of life for an entire society." As such, it includes codes of manners, dress, language,
religion, rituals, and art.

Edward B Tylor: culture as that complex whole which includes knowledge, belief, art,
morals, law, customs, and any other capabilities and habits acquired by man as a member of
society.

4.6 Traditional and Changing Indian Values

What are the traditional Indian values?

India is known for the moral ethos of its people. Indian beliefs have been associated
with compassion and respect for nature and its creations since ages. The religious beliefs of
Jain, Vedic and Buddhist traditions in India established the principles of ecological harmony
centuries ago.

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What are traditional culture values?

Cultural values are the core principles and ideals upon which an entire community exists.
This is made up of several parts: customs, which are traditions and rituals; values, which are
beliefs; and culture, which is all of a group's guiding values.

What are the changes in Indian culture?

Things are changing. Girls are also getting opportunities for their better education and
lifestyle, same as the boys. Old traditions and wooden customs are changing. These changes
are the seeds for the better society where girls and women have the same right as the boys
and men have.

Why are traditional values important?

Traditions represent a critical piece of our culture. They help form the structure and
foundation of our families and our society.Tradition reinforces values such as freedom, faith,
integrity, a good education, personal responsibility, a strong work ethic, and the value of
being selfless.

 CHANGING VALUES
We all know that Change is the law of nature. This law is governing almost everything in this
universe and so as the Indian Culture. Over Centuries Indian Culture has influenced by a lot
of changes and many of them has incorporated in this culture remaining the other features
intact. These Changes are more or less like two faces of a coin. Some changes are beneficial
for our society and culture, and some others are dangerous. In other words these changes
have both Positive and Negative aspects.

Changes In Indian Culture that are Positive for Indian Society

A few Centuries ago “Sati pratha” was abolished and “widow remarriage” was approved.
These Changes were the major achievements of Indian Society. These changes have removed
the traditions and methodologies which was a curse to all the women and humanity. These
Changes were the major revolution in the Indian Society. From that time, changes have
influenced a lot to the Indian Society. Now days, there are many visible changes in our
society. Some of them are:-

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 Today peoples of our country are moving to other parts of the world for higher
education and learning better technology. Now a girl of our country is no more
restricted to home, and a woman to a housewife. Things are changing. Girls are also
getting opportunities for their better education and lifestyle, same as the boys. Old
traditions and wooden customs are changing. These changes are the seeds for the
better society where girls and women have the same right as the boys and men have.
These changes are empowering our girls and women.

 In case of marriage the changes are visible. Now a days younger generation chooses
their life partner themselves. Traditionally their parents used to find a marriage
partner for them. Today if their parents choose a life partner for them then they allow
their young ones to spend time with their life partner to understand each other and
then perform the marriage ceremony. By doing this they gave their children a better
chance to have a better future. So now a days young generation have freedom of
choice in contrast with the old culture of Indian society where parents were solely
responsible for choosing life partner for their children.

A major change that can be sensed in Indian Culture is the change in Indian Cinema. We all
know that cinema is the mirror of our society. It clearly reflects the culture and
methodologies of our society. Few decades ago Indian cinema was only meant for
entertainment. At that time films were of conservative type. But today film makers are
moving to the various social issues and giving the Indian cinema a touch of perfection. Films
displaying the critical and major issues like terrorism and bogus CBI has already produced.
These films teach a lesson to society regarding these issues and its consequences. Also the
films promoting art and music have produced over a few years. Such types of films also
encourage new talents and provide new opportunities.

Negative Aspects of Changes In Indian Culture

As stated earlier that “every coin has two face”. So if there are some positives, negatives also
lie within. The changes in Indian Culture are also giving some negative consequences. Some
of them are discussed below:-
With growing technology competition in the market is also rising. People are spending their
lots of time in office and at workplace. Consequently they have not much time to spend with

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their family especially with their children. So now days parents have a less time to care for
their children in contrast with the old age, where an immense care was given to a child by his
family members. So the present generation of children are very much unaware of our Indian
Culture. No one is there to make them understand about this. At present this is not a major
issue but in future it will be of great concern. No one of us will ever want that our future
generation will remain unaware from our Indian Culture.

4.7 SUB-CULTURE:

4.7.1 MEANING OF SUB-CULTURE:

While culture is defined as the “personality of a society”, (inclusive of language, customs and
traditions, norms and laws, religion, art and music, etc), it is not entirely homogenous in
nature. Not all people within a social system share the same language, religion, customs and
traditions. 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. 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.

For example, while we are all Indians, and our culture is Indian (with a common national
language, Hindi, and common festivals like Diwali), North Indians are different from South
Indians. While North Indians, celebrate Lohri, as a harvest festival in January, the South
Indians celebrate Pongal as their harvest festival at the same time. In other words, people
within smaller units share the same language, religion, customs and traditions; and, this
would be different in smaller or larger magnitude to people in other sub-units.

A single culture can be broken up into various consumer subcultures. A subculture can be
defined as a culture that is not dominant in its society. As consumers from various
subcultures, we are different to each other. We have varying values and beliefs, customs and
traditions, etc. These get reflected in our perspectives and orientations that influence our

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purchase patterns and consumption behaviour. That is why a study of sub-culture becomes
important for a marketer.

4.7.2 TYPES OF SUB-CULTURE:

Based on the varying criteria, there can be different types of sub-cultures. The important
subcultural categories are nationality, geographical location, religion, race and caste, gender
and age. From a marketing perspective, these could also be discussed as market segments,
which need to be studied and assessed carefully before deciding on a product/service offering
and formulating a marketing mix for a particular segment(s).

 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. Thus, we are classified as Indians, Burmese, Nepalese, and Pakistani
etc.

 Geographical location: Within a country, we could be different across geography,

climatic conditions, regions and terrains, and density of population. This is more so in
cases where the country is large and borders spread across a huge population
occupying a vast territory. People tend to develop regional affinity and identification,
and this gets reflected in the food they eat, clothes they wear, interests they pursue,
etc. They constitute as distinct sub-cultures and people across such sub-cultures are
different to each other. For example, we can be classified as North Indians and South
Indians. As consumers, our needs are different and would translate into various wants,
for example, i) differences in food habits, and demand for poori-sabji, paratha, idli-
vada etc.; or ii) differences in clothing, and demand for cottons, woolens and silk.

 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. As
consumers, they make purchase choices and purchase decisions that are influenced by
the dictates of their religious leaders, scriptures, and holy books. In fact, many
products/services are symbolically and ritualistically associated with religion. For

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example, as per Islam, non-vegetarian food must be “Halal”, and this itself comprises
a huge segment that marketers across national boundaries are catering to.

 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. Such racial sub-
cultures also impact buying behavior and consumption patterns.

 Gender: Because gender roles have an impact on acts of behavior, gender constitutes
an important cultural sub-group. Males and females across all cultures are assigned
different traits and characteristics that make them masculine and feminine. They also
perform different roles in society and are two distinct sub-groups. It is true that gender
roles have got blurred, and both men and women are performing such roles that they
did not perform earlier. Product usage is common to both man and woman; for
example, a man shown as using a LG washing machine or making Act II popcorn.
Similarly products like shavers and razors exclusive to usage by men, are also being
used by women (Gillette thus introduced a razor for women). All this has brought
about a big socio-economic change and led to cultural transformation. The values
espoused by the generation of today is much different to the one espoused by the
previous generation.

The pace of change has been further accelerated with households no longer being
single income households, but turned to dual-income households. The role of women
is no longer restricted to bearing children and managing the home. Women have
started working outside, and are contributing to household income. This has impacted
consumer needs and wants as also the priorities. The impact is evinced on
consumption behavior, where the „decider‟ role is no longer confined to a single
person, i.e. the man of the family. Today buying decisions are jointly taken by
husband and wife.

 Age: Infants, kids, teenagers and adolescents, adults and the aged, may all be looked
up as distinct sub-groups. They have different values and beliefs, and all this impacts
upon their priorities in life. Daily lifestyles, activities and interests, fashion and
accessories, food and diet, etc. receive varying priorities across the various sub-

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groups. For example, an aged person would prioritize health and go in for nutritious
home food as opposed to young man who would prioritize work and go in for fast
food. Today we see a rising trend amongst kids, adolescents and the young towards
junk food, and they constitute a lucrative segment for restaurants providing fast food.

4.8 Cross Culture Marketing Analysis

Cross-cultural marketing is the strategic process of marketing among consumers whose
culture is different from that of the marketer's own culture. Examples of the fundamental
cultural aspects to be considered include: social norms, values, language, education, religion,
economic systems, business etiquette, laws, and style of living. Typically, cross-cultural
marketing takes advantage of the ethnic groups' different cultural norms to communicate to
and persuade that audience.

 Objectives of Cross cultural marketing

The marketer should determine his international marketing objectives while entering the
cross cultural marketing. Various options are available to an international marketer. The firm
can act as a domestic exporter, or a foreign importer. It may also solicit another firm to sell
abroad.

Better opportunities available in the foreign market and the over capacity of the firm
operating only in the domestic market motivate the firm to go abroad. The firm will work out
the following objectives:

1. To determine how consumers in two or more societies are similar and devise suitable
strategy.
2.To formulate marketing strategy if cultural beliefs, values and customs of a specific country
are different.

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 Area of Research for Cross Cultural Analysis

In cross cultural analysis, the firm has to do research in the following areas:

1. Language;
2. Differences in market segmentation;
3. Differences in criteria for evaluating products and services;
4. Differences in consumption pattern of consumers and perceived benefits of products
and services.
5. Differences in economic and cultural, social condition and family structure.

1. Language Differences
Language is the most important aspect of culture. Understanding a country‟s mother tongue
will be of immense help to the marketer to know the impact of culture on consumer behavior.
The marketer should study the nuances of cultural variances and respond in such a way which
a consumer easily understands.

2. Differences in market segmentation opportunities

The company‟s product may be superior in terms of quality, cost service, technology clout
and brand equity in the domestic market. But this will benefit the company only when it
suitably segments the market with the help of overseas research.
For example, in India, readymade garments are manufactured at lower cost. This gives
competitive advantage in the global market. Research is undertaken in foreign market to
study the potentiality for exporting ready-made garments from India. Proper market
segmentation is essential for developing the products.

3. Differences in the criteria for evaluating products and services

India has tremendous opportunities in the field of textile and ready-made garments. This is
due to availability of cheap labour and quality natural fabrics at reduced prices. Consumers
are very particular about quality assurance while buying products. So, the exporting company
should understand the “Perceived quality” in the consumer market.

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Variances do occur in consumer perception. Only research can reveal the differences in
criteria for evaluating product and services; this aspect cannot be ignored by the marketer for
cross cultural marketing.

4. Differences in consumption pattern and perceived benefits of products and services

Leather and leather products are an important item of export being exported by India. India
has a competitive advantage in leather products. The livestock population in India is the
largest in the world. So, best quality raw hides and skins are available for manufacturing
leather products.
Availability of cheap skilled manpower is an added advantage for leather units operating in
the country. South Korea and Taiwan were compelled to go slow on production due to
escalating costs in production. So, India has gained a competitive advantage against its
competitors in leather products.

Products like footwear, belts, bags and wallets are considered as an inseparable part of
everyday life for all of us. So, the demand for leather products is ever increasing all over the
world. Global customers have perceived values and added benefits from buying Indian
leather products. Marketing research can identify suitable strategies for improving the
position in marketing leather products.

5. Differences in the economic and cultural social conditions and family structure
Consumption pattern is not uniform among all countries. Differences occur due to
subcultures centered on consumer preferences. Food habits, clothing styles etc., are part of
the belief structure and cultural taboos. Professor W.Lloyd Warner of the University of
Chicago has divided the United States society into six groups:

i. Upper class;
ii. Lower upper;
iii. Upper middle;
iv. Lower middle;
v. Upper lower and
vi. Lower-lower.

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1. Upper-Class: Constitutes only a small percentage of population. It consists of prominent

families with wealth inherited through two or more generations.
2. Lower-upper: Accounts for only two percent of the population. These families are
wealthy. The first generation parents in lower-upper class give prominence to the education
of their children.
3. Upper-middle: Includes about ten percent of the population. These families earn income
from a variety of sources and consist mainly of professionals like successful business
managers, lawyers, doctors, etc. They have a very strong desire for professional success and
recognition in the upper middle class. They give importance to clothing, home decor etc., as
signs of social recognition.
4. Lower-middle: About one-third of the families in the society belong to lower level
supervisors, non-managerial white collar workers, owners of small business, clerks, etc. They
desire respectability, living in respectable neighbourhoods, and send their wards to colleges.
They avoid lower class living.
5. Upper-lower: The upper-lower class is perhaps the largest one in the society. It constitutes
about 40% of the population. The families in the upper-lower class are similar to those of
lower middle class. Their main form of income is not salary but wages. This class is
popularly known as working class and includes skilled, semi-skilled and manual laborers,
construction, workers etc. This class does not spend its income striving for middle class
respectability.
6. Lower-lower: About 15% of the population belongs to lower-lower class. The income of
the members in the lower-lower class is the lowest. They are often unemployed. Even those
who are employed are unskilled and usually uneducated as day laborers. The above social
classes have relevance to United States and they are based on occupation, source of income,
house type and neighbourhood.

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