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Social Environment and Cultural Influences on Consumer Behavior

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Critically consider how the social environment and culture affect consumer behavior. Draw on the module readings and class discussions to support your answer.

Social Environment and Cultural effects on Consumer Behavior Table of Contents

1. Table of Contents ........................................................................................................ 1 2. Introduction to the study conducted: .................................................................. 2 3. Consumer Behavior: ................................................................................................ 2 4. Understanding Consumer Behavior: ................................................................... 2 5. Fundamentals of Social Environment and Culture: ........................................ 3 6. Consumer Behavior Model By Hawkins: ............................................................ 4 7. Social Environment & Culture With Respect to Consumer Behavior: ....... 5 8. The U.S Cultural and Social Values and influences on the Consumer

Behavior: ..................................................................................................................... 6
9. Individualism: ............................................................................................................. 6 10. Equality: ....................................................................................................................... 6 11. Activity: ........................................................................................................................ 7 12. Progress and Achievement: ................................................................................... 7 13. Efficiency and Practicality: ..................................................................................... 8 14. Religious and Moral Orientation: .......................................................................... 8 15. Conclusion: ................................................................................................................ 9 16. Bibliography: ............................................................................................................ 10

Social Environment and Cultural effects on Consumer Behavior

Introduction to the study conducted: The paper is an in depth research and analysis of the factors that affects consumer behavior. In this paper we will be critically considering what are the environmental and cultural variables and factors and their effects on consumers behavior. The paper is a reflection on the argument made as we already know that culture is a very important factor which affects every aspect of life and so it affects consumers behavior too. In the following research conducted we will be putting an in depth light on the environmental and cultural factors responsible in the development of change or decision within the context of consumer behavior. Consumer Behavior: First of all let us define what consumer behavior is in a very simple manner; The term consumer behavior can be easily understood as the behavior of an individual or consumer towards a product or service where the key contexts are of making a purchase, utilizing the product or service, generating an evaluation and finally disposing it and more significantly their expectation towards it that their need will be satisfied (Schiffman & Kanuk, 2009, p. 23). Understanding Consumer Behavior: So far the study of consumer behavior comprises of two aspects or two categories of consumers namely the personal consumers and the organizational consumers but within this paper our core focus would be towards the personal consumers who are actually individuals who purchase products or services for their 2

Social Environment and Cultural effects on Consumer Behavior own use like house hold usage or as a gift for someone etc. and these consumers are referred as being the end users of products or services (Schiffman & Kanuk, 2009, p. 24). It is a fact that the study or field of consumer behavior fully base upon a term named as The Marketing Concept coined in the late 1950s which explains that there is another door awaiting for marketers where marketing does not only mean producing and selling only those products or services that are needed or demanded by customers but moreover it is an open opportunity to make customers buy those products or services also the company has produced or manufactured for the same consumers in anticipation while deeply analyzing their life styles and day to day needs resulting in an unintentional demand of easiness in products or services (Schiffman & Kanuk, 2009, p. 25). Fundamentals of Social Environment and Culture: One could easily understand the social environment and culture very easily by putting light on the surrounding. Social environment and culture are correlated terms as it should be noticed that culture is the most important part of the society. Consumers are always changing with respect to their personalities and values and it is quite obvious that an individuals personality is socialized by the society more specifically by the social environment in which one is living and values are also extracted from the same environment or the society and integrated in ones mind (Roberts & Lilien, 1993, p. 28). Culture is a very important factor that plays a vital role in the consumer behavior towards a product or service. Culture includes all the norms and values of a 3

Social Environment and Cultural effects on Consumer Behavior society and a marketer should market such a product that fully complies to the cultural norms and values of the respective society because a consumer always makes his/her mind towards a product just according to what his/her culture addresses oneself about the utilization or consumption of that product or service. In other words we can understand that an individuals perceptions are mostly developed on the basis of the culture in which one is surviving ultimately varying ones purchasing decision in according to the values one owns (Slater, 2003). Following is basic consumer behavior model which is elaborating some of the very fundamental influential variables regarding consumer behavior. The given model clearly explains the importance of social environment and culture in the process of consumer behavior. The part related to our concern is of external influences. In the field of business external influences always refer towards all those factors that are externally impacting an individual or an organization which comprises of the largest portion of the environment. Consumer Behavior Model By Hawkins: The consumer behavior model given by Hawkins comprises of two important influencing sources the external and the internal influences. Our course of interest lies in the external influences where the factors of culture and social environment lies (Hawkins et al., 1998). When considering social environment it relates to the social class which defines itself as a big population of individuals who share similar lifestyles and interests (Yakup, et al., 2011, p. 110). After understanding what is social class one could easily conclude that when people of same interests are there then a factor of social status also arises and these people will try to buy those products only that are easily accepted by the people of same interests or life-styles always present 4

Social Environment and Cultural effects on Consumer Behavior around them just like the hierarchical levels of the society for example a member from the upper middle class will always try to maintain remain in the same level and thus a marketer should know the fact that they demand similarly before addressing them and more importantly the sub cultures where small groups having resemblance among them are formed having a very strong bond within a culture (Williams, 2002, p. 250) . Social Environment & Culture With Respect to Consumer Behavior: It comprises of Culture and Subculture, Social Classes and Groups, Family and Personal Influence and the diffusion of Innovations. Culture is defined as; That complex whole that includes Knowledge, Belief, art, morals, law, custom and any other capabilities and habits acquired by man as a member of society (taylor, 1924) again The distinctive way of life of a group of people, their complete design for living (Stull & Von Till, 1994) Rockeach believed that analyzing values of consumers is very important as they play the most important role and for that he developed a survey that analyzes values on the basis of two categories the terminal and instrumental values contained with eighteen sub values and named his survey as Rockeach Value Survey (RVS) (Loudon & Bitta, 2008, p. 99). It is also proven that during the decision making process of market segmentation the role of analysis of these terminal and instrumental values is very important in understanding the demographic aspects of the targeted audience and these demographics helps a lot while conducting the product promotions, positioning, pricing and distribution activities (Loudon & Bitta, 2008, p. 103). It is also important that culture never remains the same sometimes changes occur very slowly and sometime very rapidly so a continuous analysis of 5

Social Environment and Cultural effects on Consumer Behavior cultural values for a marketer is very important. According to VALS 2 there are eight significant categories of individuals in a society namely Actualizers, Fulfillers, Achievers, Experiencers, Believers, Strivers, Makers and Strugglers. And all of them have their own respective perceptions, norms, values, attitudes and behaviors and so the purchasing decision dependency is (Loudon & Bitta, 2008, p. 104). The U.S Cultural and Social Values and influences on the Consumer Behavior: Let us take an in depth insight of U.S.A social and cultural aspects to understand the various influences. Individualism: It is a very complicated and extensive variable in the culture of U.S.A basically regarding to matters such as independence, patriotism and liberalism. This is a fact that via this characteristic people are addressing that they have the dignity and right of being free not in all aspects of the culture but much as far as their external environment is concerned. It has been significantly observed that if advertisers include a patriotic aspect in their advertising and promotional campaigns then the success rate of their activity increases to almost a greater limit that clearly means that the individuals are highly attracted through this factor of their culture (Loudon & Bitta, 2008, p. 89). It is fact that while saying or expressing this characteristic in ads people are most attracted as the feature of patriotism appears in this attempt to address the target audience (Perner, 2010). Equality: People of U.S.A believe intensely in the internal equality of the individuals. Within this context they directly address that every individual in the society is equal 6

Social Environment and Cultural effects on Consumer Behavior to anyone else in the society and they all have equal rights of freedom, speech, job, social life and striving towards the economic prizes. Moreover in the most recent couple of decades it has been observed that a vigorous push of social and economic equality has been found in the U.S.A culture (Loudon & Bitta, 2008, p. 90). Especially significant claims were made regarding rights of women in the society and even it brought a vivid change in the manner of society and thinking of the individuals (Anon., 2011). Activity: Another most important feature of the culture of U.S.A is that they believe in activity just like the concept found in the protestants context where it is assumed to be idle is to be evil. They believe in continuous hardworking and positive efforts of an individual ultimately contributing to the society and again to the country in a much broader perspective (Loudon & Bitta, 2008, p. 90). Progress and Achievement: It is also an important factor of the culture of U.S.A that individuals are much more concerned to the variables of progress which directs towards progress of the society and achievement towards individuals achievements of goals or objectives that are related to the self-interest of individual professionally or in the family or personal life (Loudon & Bitta, 2008, p. 92). According to research findings it has been found that the people of U.S.A believe in collective action which expresses the progress of society, They believe in doing any group activity so as to ensure that some progress has been accomplished

Social Environment and Cultural effects on Consumer Behavior by every individual in the progress of society or meaning that every individual has played their part in this progress (Bagozzi, 2006, p. 129). Efficiency and Practicality: Americans always motivate and appreciate the efficiency and implementation of things. They always strive towards innovation and creativity. They are highly admired by knowing the fact that the nation is working continuously towards progress by bringing through efficiency and practicality in their work (Kotler, 2008). Gillette always addresses an appeal of technological dominance in their ads which is an evidence of the fact that how much individuals of U.S.A are concerned with this variable (Loudon & Bitta, 2008, p. 93). The research shows that the factor of efficiency and practicality is received by a children even in the very initial socialization process and the other above given values of culture too (Tamminga, 2009). Religious and Moral Orientation: It has been found that the individuals of U.S.A are much more religious as compared to any other industrialized and modern country. Being dominant in the world the adults of U.S.A also think that being religious is also very important for them. Some significant researches show that there is a very intense impact of religious and moral orientation on the behavior of individuals of U.S.A (Loudon & Bitta, 2008, p. 96). Researchers have found that ethics and religious and moral orientation are fully correlated. Ethics run side by side in any society along with the religious aspects infused in the minds of individuals of the society and this a big impact of 8

Social Environment and Cultural effects on Consumer Behavior ones mind to hit him directly through the religious cum ethical attempt and it works efficiently (Vitell, et al., 2007). Conclusion: While concluding the research done and a very critical insight on the social and cultural values and their impacts on the consumer behavior we have learned that no matter what are the circumstances and market situations it is really important for a marketer to better understand the social and cultural factors which really impacts the whole advertising and promotions in fact the whole marketing process as the featured product or service is correlated to the end user or consumers norms, values, social instances and in a bigger perspective the culture. It is an advertisers utter most responsibility to first understand all the ins and outs of a consumer with respect to his/her environmental and cultural variables and values before featuring or offering any product or service. It is really important because an individual will always make decisions just according not only to his/her mind but also according to the social class he/she belongs and the environment which includes the social as well as personal influencers; the social networked group of people among which the targeted consumer dwells and the family he/she has because there is a very different influence of the social exposure of an individual with respect to ones friend, workplace, surrounding people and then equally there is an influence from the family so an individual no matter to which age segment one belongs but decisions made by the consumer are fully based on these influential forces of the social environment as well as the culture where religion has the greatest importance.

Social Environment and Cultural effects on Consumer Behavior Bibliography: Anon., 2011. Female Equality Matters. [Online] Available at: http://femaleequalitymatters.com/ [Accessed 14 March 2012]. Bagozzi, R. P., 2006. Explaining Consumer Behavior and Consumer. Seoul Journal of Business, 12(2), pp. 111-143. Hawkins et al., 1998. jcmc.indiana.edu. [Online] Available at: http://jcmc.indiana.edu/vol9/issue2/giaglisfigure1.gif [Accessed 9th March 2012]. Kotler, P., 2008. Principles of Marketing. 10 ed. Upper Saddle River, New Jersey: Prentice Hall International. Loudon, D. L. & Bitta, A. J. D., 2008. Consumer Behavior. 4th ed. New Delhi: Tata McGraw-Hill. Perner, L., 2010. Consumer Psychologist. [Online] Available at: http://www.consumerpsychologist.com/ [Accessed 14 March 2012]. Roberts, J. H. & Lilien, G. L., 1993. Handbooks in Operations Research and Management Science, Marketing. 5th ed. New South Wales: Elsevier Science Publishers. Schiffman, L. G. & Kanuk, L. L., 2009. Consumer Behavior. 9 ed. New Delhi: Pearson Education, Inc.. Slater, D., 2003. Consumer Culture and Modernity. 5th ed. Malden: Blackwell Publishing Inc.. Stull, J. & Von Till, B., 1994. Determinants of Ethnocentrism. San Jose, CA, Western States Communication Association. Tamminga, B., 2009. ezine Articles. [Online] Available at: http://ezinearticles.com/?Why-Consumers-Buy---The-Cultural-FactorsThat-Affect-Buyer-Behavior&id=1850442 [Accessed 14 March 2012]. taylor, E. B., 1924. Primitive Culture. 7th ed. New York: Brentano's. Vitell, S. J., Paolillo, J. G. & Singh, J. J., 2007. Religiosity and Consumer Ethics. Journal of Business Ethics, 57(2), pp. 369-379. Williams, T. G., 2002. Social Class Influences on Purchase Evaluation Criteria. Journal of Consumer Marketing, 19(3), p. 250. Yakup, D., Mcahit, C. & Reyhan, O., 2011. The Impact of Cultural Factors on the Consumer Buying Behaviors. International Journal of Business and Social Science, 2(5), pp. 109-114.

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