Session 4 Culture Lifestyles Silvia Cacho Elizondo November

Session 4 Culture & Lifestyles Silvia Cacho Elizondo November 15, 2005 Consumer Behaviour Silvia Cacho-Elizondo

Agenda Review n Concept testing : Jamaica drink n n Culture & Lyfestyles n Case study: Consumer Behaviour « Celebrations » Silvia Cacho-Elizondo 2

Learning objective n Understand how cultural factors and lifestyles can explain consumer behaviour at the socio-cultural level. Consumer Behaviour Silvia Cacho-Elizondo 3

Review Consumer Behaviour Silvia Cacho-Elizondo

Typology of groups n Size n Purpose n Structure n Status Consumer Behaviour 1) Primary groups (limited size) 2) Secondary groups (sub-groups) 1) Socio-groups (commun objectif) 2) Psycho-groups (interaction) 1) Formal (norms and rules) 2) Informal (non explicit norms) 1) Membership groups 2) Reference Groups Silvia Cacho-Elizondo 5

Reference Groups It is an actual or imaginary individual or group conceived of having significant relevance upon an individual’s evaluations, aspirations or behaviour. A group need at least two people but the term reference group is used to describe any external influence that provides social cues. Consumer Behaviour Silvia Cacho-Elizondo 6

Forms of influence Normative or utilitarian when an individual fulfills others’ expectations to gain a direct reward or to avoid a sanction. Value-expressive or identification when individuals use others’ norms, values and behaviours as a guide for their own attitudes, values and behaviour. Implicit in this type of influence is the desire for psychologicial association or social affilitation with others. Informational social when an individual uses the values, norms, and behaviours of others as credible, and needed evidence about reality Consumer Behaviour Silvia Cacho-Elizondo 7

Types of Reference Groups Avoidance n Negative, nonmembership Disclaimant Negative, membership n Consumer Behaviour Aspirational Positive, nonmembership n Contractual Positive, membership n Silvia Cacho-Elizondo 8

When reference groups are important. . 1) 2) When the purchases are luxuries rather than necessities When purchases are consumed socially or visible to others rather than privately Consumer Behaviour Silvia Cacho-Elizondo 9

How the endorsement of a product by an aspirational group could affect consumer attitudes and intentions? • • • Social desirability of product consumption Perceived visibility of early adoption behaviour Perception of quality One explanation for this type of aspirational group influence is provided by the model of meaning transfer. The focus of this model is on the transfer of culturally relevant meanings from the endorser to the product Consumer Behaviour Silvia Cacho-Elizondo 10

The nature of Opinion Leadership Consumer Behaviour Silvia Cacho-Elizondo 11

Why are opinion leaders considered as valuable information sources? Involvement, Expertise and Experience in a product category n Product category pioneers n Empathy and Neutrality n High Credibility n Consumer Behaviour Silvia Cacho-Elizondo 12

The role of lead users Word of Mouth communication The diffusion of Innovations or new products Consumer Behaviour Silvia Cacho-Elizondo 13

Companies’ strategies n n n Simulate by product use a « leader » Developing the idea that others are buying Granting the status of a leader to a potential customer to trigger a feeling of pride Stimulating personal influence Supplying local opinion leaders with the product Getting people to talk about a product Consumer Behaviour Silvia Cacho-Elizondo 14

How culture & lifestyles influence consumption patterns? Consumer Behaviour Silvia Cacho-Elizondo 15

Factors explaining buying and consumption behaviour 1. Individual level 2. Interpersonal level 3. Socio-cultural level Consumer Behaviour Silvia Cacho-Elizondo 16

Consumer Behaviour Silvia Cacho-Elizondo 17

Key mots & issues n n n Rituals (ex de consumption) Arts (ex. Culinary) Traditions versus modernity Intergenerational Transmission Adaptation and appropriation Consumer Behaviour Silvia Cacho-Elizondo 18

Concept testing “Agua de Jamaica” Another kind of iced tea ? Consumer Behaviour Silvia Cacho-Elizondo

Culture - Meaning and Nature n Cultural Categories time, space, nature and the human community (ie. ethnicity, age, gender) n Cultural Principles ( « folk wisdom » ) values, norms and beliefs (ie. « hard work pays » ; « seeing is believing » ) Consumer Behaviour Silvia Cacho-Elizondo 20

Consumer Behaviour Silvia Cacho-Elizondo 21

External adaptation “relationships with the environment” Control and uncertainty (nature) Doing versus being Internal Integration “relationships among people” Social versus task orientation Particularism/universalism Linking assumptions Hierarchy “relationships with nature & people” Feminity /Masculinity Space Individualism /Collectivisme personal and physical Language High versus low context Time Monochronic and polychronic Past, present, future Consumer Behaviour Silvia Cacho-Elizondo 22

Culture & Consumer Behaviour: Traditional Marketing View (adapted from: Arnould, Price and Zinkhan, 2002; pag 141) Consumer Behaviour Silvia Cacho-Elizondo 23

Traditional perspective In this perspective culture is viewed as a relatively unchanging background for behaviour, consisting primarily of values and norms. Values enduring beliefs about desirable outcomes that trascend specific situations and shape one’s behaviour. Norms informal, usually unspoken rules that gouvern behaviour. Consumer Behaviour Silvia Cacho-Elizondo 24

Europeanisation as an “outside influence” Europeanisation will act as a reinforcement to “origins” and “societal norms” Consumer Behaviour Silvia Cacho-Elizondo 25

The stabilising of culture patterns (Hofstede, 1980) Outside influence Forces of Nature & Man Origins Ecological Demographic Geographic Economic Historical Technological Urbanization Societal Norms Value Systems of major groups of population Consequences Structure and functioning of institutions Family patterns Social stratification Role differentiation Education Religion Legislation Theory development Reinforcement Consumer Behaviour Silvia Cacho-Elizondo 26

Culture & Consumer Behaviour: Emerging Marketing View (adapted from: Arnould, Price and Zinkhan, 2002; pag 141) Consumer Behaviour Silvia Cacho-Elizondo 27

Lifestyles Consumption Subcultures n A single activity n An interest n A neighborhood n A brand n A whole generation or a particular segment within a generation Consumer Behaviour Silvia Cacho-Elizondo 28

How to measure lifestyles? Psychographics techniques divide the market into segments on the bases of activities, interests, values, opinions, personality characteristics and attitudes using different «statistical methods» Consumer Behaviour Silvia Cacho-Elizondo 29

Psychographic Segmentation Schemes n AIO (activities, interests & opinions) n Cohort Analysis (age groups) n n PRIZM (regional lifestyles) Value-based approach Consumer Behaviour Silvia Cacho-Elizondo 30

US Cohort Carthography 1. The World War II Cohort n born 1922 to 1927, Romantic 2. The Boomers I Cohort n born 1946 to 1954, Healthy 3. The Boomers II Cohort n born 1955 to 1965, Narcissistic 4. The Generation X Cohort n born 1966 to 1976, Cynicism & Violence Consumer Behaviour Silvia Cacho-Elizondo 31

Value-based approach Europe n n COFREMCA Centre de Communication Avancé USA n n Yankelovitch VALS system (A. Mitchell et Stanford Research Institute) Consumer Behaviour Silvia Cacho-Elizondo 32

VALS Framework q A research and consulting tool q Built by consumer futurist Arnold Mitchell in the 1970 s q It was developed from the works of Riesman and Maslow for whom the strongest motivations are first linked to fundamental needs (survivors and sustainers). Consumer Behaviour Silvia Cacho-Elizondo 33

Evolution of VALS classification n In 1989, VALS was redefined to maximize its ability to predict consumer behaviour. A team of experts from SRI International, Stanford University and Berkeley University determined that consumers should be segmented on the basis of enduring personality traits rather than social values that change overtime. Consumer Behaviour Silvia Cacho-Elizondo 34

VALS Framework VALS 1 (9 segments) : Integrated Societally conscious Experientials I am me Achievers Emulators Belongers Sustainers Survivors Consumer Behaviour VALS 2 (8 segments) : Ideals * Thinkers * Believers Status or Achievement * Achivers * Strivers Self-expression * Experiencers * Makers Level of Resources * Innovators * Strugglers Silvia Cacho-Elizondo 35

The VALS Segments • Innovators • Thinkers • Achievers • Experiencers • Believers • Strivers • Makers • Survivors Consumer Behaviour Silvia Cacho-Elizondo 36

The VALS Segments Innovators Thinkers Achievers Features Successful, sophisticated, take charge people with high self- esteem. Very active consumers, seek challenges. characterized by variety. their purchases reflect cultivated tastes for upscale and niche market. Mature, satisfied, comfortable, reflective and well educated people. Actively seek out information. Conservative, practical consumers. Look for durability, functionality and value in the products. Goal-oriented lifestyles and a deep commitment to career and family. Consensus, predictability, stability over risk, intimacy and self-discovery. Active consumer. Interested in time saving devices Young, enthusiastic and impulsive consumers. Seek variety, excitement, savoring the new and the risky. Experiencers Spend high proportion of their income on fashion, entertainment and socializing. Consumer Behaviour Silvia Cacho-Elizondo 37

The VALS Segments Segment Believers Strivers Features Conservative, conventional people with concrete beliefs based on traditional, established codes such as moral codes. Predictable consumers. Choose familiar products and established brands. Motivated by achievement. Concerned about the opinions and approval of others. Active and impulsive consumers. Like stylish product. Makers Motivated by self-expression. Practical people who have constructive skills and value self-sufficiency. Have a suspicious of new ideas and large institutions such as big business. Survivors Do not show a strong primary motivation. Cautious consumers. focus on meeting needs rather than fulfilling desires. Loyalty to favorite brands, Especially, if they can purchase them at a discount. Consumer Behaviour Silvia Cacho-Elizondo 38

Home exercise VALS site http: //www. sric-bi. com Look for representative projects Answer the VALS questionnaire to know your VALS type Print the questionnaire and your VALS types Consumer Behaviour Silvia Cacho-Elizondo 39

Case Study Presentation Masterfood « Celebrations » Consumer Behaviour Silvia Cacho-Elizondo 40