Cultural Influence on Consumer Behavior: Macro & Micro Study - Prof. Phillip B. Niffenegge, Study notes of Consumer Behaviour

Download Cultural Influence on Consumer Behavior: Macro & Micro Study - Prof. Phillip B. Niffenegge and more Study notes Consumer Behaviour in PDF only on Docsity! MKT463 – Test 3 Notes Chapter 11 pg 254 1. Define: Environment; Macro vs. Micro Environment a. Environment – pg256 – all the physical and social characteristic of the consumer’s external world. Physical objects, spatial relationships, and social behavior of others. Perceived environment depending on what the individual consumer feels or sees. b. Macro Environment – concerns whole society or culture; climate, economy, political system, and general landscape. c. Micro Environment – immediate surroundings, tangible, physical, and social aspects of immediate surroundings. Can manipulate micro, but very difficult to do that for macro. 2. Describe the various types of macro and micro social environments. Pg 260 a. Flows of influence in social environment i. Culture ii. Subculture iii. Social class 1. Organizations, reference groups, family, media iv. Individual consumers b. Macro social environments c. Micro social environments 3. What are the major aspects of the physical environment? How are the “4-P’s” used to manage the physical or social environment. a. Physical environment consists of all none human aspects; stores, products, spatial aspects. Can manipulate by use of color, sounds, smell, layout, etc. i. Retail environment manipulation – atmospherics ii. Non spatial; time, day, season, lighting 4. What is a situation? Describe 5 common consumer situations. a. Information acquisition – information contact, communication i. Reading a billboard while driving ii. Discussing running shoes with a friend at a track meat iii. Watching tv commercial b. Shopping – store contact, product contact i. Window shopping in a mall ii. Browsing through a catalog iii. Comparing brands of shirts in a store c. Purchase – funds access, transaction i. Obtaining a visa card ii. Going to a check out counter iii. Calling an order for lands end d. Consumption – use i. Eating a taco at Taco Bell ii. Using a refrigerator for 15 years e. Disposition - disposal i. Recycling aluminum cans ii. Throwing away a hotdog wrapper at a hockey game Chapter 12 1. Define: culture; cultural meaning; cultural content; core values a. Culture is meaning that are shared by most people in a social group b. Cultural meaning – a meaning is cultural if many people in a social group share the same basic meaning c. Cultural Content – values, language, rituals, beliefs, attitudes, norms, customs, rules, laws, institutions, etc. d. Core values – abstract end goals that people strive to achieve in their lives 2. Describe the cultural process by which cultural meaning is moved from environment into products, then into consumers a. Cultural process – desvribes how this cultural meaning is moved about or transferred between these locations by the actions or organizations and by individuals in society. b. Cultural meanings arfrom the environment into products and servise in an attempt to make them attractive to consumers i. Advertising can be seen as the funnel that cultural meaning is poured into consumer goods ii. Symbols – word, image, object; that stands for or signifies something else (desired cultural meaning) iii. High or low prices can affect the cultural meaning, high=quality, low=affordable iv. Journalism put meaning into products by writing about certain products or services c. Products, stores, and brands express cultural or symbolic meaning i. Certain brands have meanings concering the sex and age groups for which they are appropriate; Virginia Slims are for women, Camels are for men, etc. d. Buying and using products make the cultural meanings visible and communicate those meanings to others. e. CONSUMERS buy products as a way to acquire cultural meanings to use in establishing their self-identities. 3. What role do rituals play in this process? a. Pg 291 – a ritual is a type of symbolic activity consisting of a series of steps occurring in a fixed sequence and repeated over time b. Acquisition ritual – purchasing and consuming the product c. Possession rituals –consumers aquire the meanings products d. Exchange rituals – meanings can be transferred to consumers, such as giving gifts e. Grooming rituals – perishable in that they tend to fade over time f. Divestment rituals – remove meaning from products 4. What are some implications for marketers? a. Measure and manage brand image b. Try and promote positive meaning to product values c. Use ads to relate to core values 5. Give some examples of important cross-cultural differences. a. European – freedom of choice, more individuality b. Japanese – what to fit in with group and would rather succeed as a group i. “the nail that stands up gets pounded down.” c. Americans – more materialistic 6. Why is the European community important to American marketers? d. Europeans are materialistic just as the Americans are e. 325 million people in the European Union with open trading borders f. Once the product is over there it will be easily distributed to over 12 countries as if it was just one making a huge market for American companies to use. 7. What is cross cultural consumer analysis and what 8 factors should be looked at? g. Language differences h. Differences in consumption patterns i. Differences in potential market segments j. Differences in the way that products or services used k. Differences in the criteria for evaluating products and services l. Differences in economic and social conditions ii. Behavior is visible or known to the group iii. Motivated to obtain rewards or avoid punishments c. Value expressive – associate socially valuable meanings 3. What factors affect the strength of reference group influence on the individual? a. Public – one that other people are aware an individual owns and uses b. Private – used at home or in private so that the public is unaware c. Necessity – owned by virtually everyone d. Luxury – owed only by consumers in particular groups 4. What are some marketing implications for reference group influence? a. Marketers can relate the influence of a product to influence of a certain person or group of individuals to make them want the product or service 5. Define household and family and explain the types of each. a. A housing unit that has people living in it i. Nonfamily household – include unrelated people living together b. Family – has at least two people related by blood, marriage, or adoption 6. Describe the various roles in family decision making. Pg 346 a. Influencers – provide information regarding potential product purchase. b. Gatekeepers – allows certain information to come into family to filter out certain information. c. Deciders – participate in choice of product or brand d. Buyer – makes actual purchase e. Users - use the product or service f. Disposers – dispose of product or discontinue its service 7. What are the sources of conflict in family decision making; how are influence strategies used in its resolution? g. Family members can disagree because of many reasons, h. Expert – know more about particular product or brand i. Legitimate – man of the house j. Bargaining – if you do this, ill do that k. Reward/referent – getting or giving award for work l. Emotional – emotional techniques, crying, slience m. Impression management – convince others the product was unavailable beyond the influencers control 8. What are some of the changes currently affecting American families? n. Female employment, more women working outside of the house o. Divorce rate p. Young marriage q. Early children 9. Define and describe: consumer socialization; family lifecycle; what are some marketing implications? a. Consumer socialization – how children acquire knowledge about products and services and various consumption related skills. i. Can be gained from family, peers, and social institutions (Media etc.) ii. Knowledge gained influences behaviors during the consumer decision making process, can be learned at any age in life b. Family lifecycle – a tool to identify key family segments and develop effective marketing strategies for those households i. Can be used to target specific consumers based on where they are in the lifecycle; different parts of the lifecycle will have different needs Chapter 19 1. What types of utility do stores add? Pg 470 a. Form utility – raw materials are manufactured in form consumers need b. Time utility – in stock when you need it c. Place utility – get it where you want it d. Possession utility – once bought ownership is consumers 2. Define: Store image and store atmosphere. How is each measured? a. Store image – what the consumer thinks about the store; based on five senses b. Store atmosphere – emotional states, pleasure, arousal, dominance, communications, satisfaction 3. Store: What approaches are used to determine: store location; store layout; in-store stimuli? Pg476-77 a. Store layout i. Grid – placing desired products in back of store to increase product contact by creating a longer distance traveled. ii. Freeform – slow down and encourage shopping; browsing b. Store location pg 474 – demographic data; related stores; location allocation c. In-store stimuli – signs, displays, price information, color (warm colors in entrances; cool colors will slow people down), music pg480, scent/smell 4. What are the major types of non-store purchasing? a. Catalogs i. Shopping specialty b. Vending machines i. convenience c. TV Shopping – OVC, Home Shopping Network i. Shopping specialty, how to video d. Direct sale purchases i. e. Electronic exchanges - internet 5. What advantages/disadvantages does each type offer? 6. What factors may slow the future growth of electronic exchanges? a. Many consumers do not have access to computers or don’t use them often b. E-marketers don’t make enough profit to reinvents in growing consumer markets c. Making electronic exchanges requires consumer to change long standing ways of buying d. Many consumer products do not fit an electronic exchange format e. Trust of brick and mortar web based companies 7. What are some factors to be considered in channel design? a. Commodity – nature of the product offered to the consumer b. Conditions – current state and expected changes to economic, social, legal…etc c. Competition d. Costs – e. Coverage – availability, and amount of use f. Competence – effective distribution to consumer g. Control – standardized products or services alongside management and distribution styles Essay “Store Satisfaction and Crowding: An Exploratory Study of Grocery Shoppers” – Dr. Niffenegger Things that change when store is under crowded conditions Change in time allocation - Spend less time looking at things you pay attentions too. Disregard lo priority inputs – pay less attention to displays, new products, specials; more likely to stick to list and buy what was planned Intensity of inputs diminished by filtering – less socialization; less talking to other shoppers and employees Purpose: 1. The level of shopper satisfaction with the brands purchased is inversely related to the level of perceived crowding. 2. The number of unplanned purchases made by shoppers is inversely related to the level of perceived crowding. 3. The level of perceived store friendliness is inversely related to the level of perceived crowding. 4. The level of shopper’s overall satisfaction with the store is inversely related to the level of perceived crowding. Methodology Shoppers where approached after groceries where loaded into car then filled out survey while in car. 105 shoppers approached; 9am-11am, 11am-2pm, 2pm-6pm. Then interviewer would get a physical count of how many shoppers where actually in the store. Findings 16% of satisfaction score associated with perceived crowding in a negative way 38% perceived store friendliness with perceived crowding in a negative way -31% overall satisfaction with perceived crowding