Understanding the Consumer Culture and Cultural Change 1 Understanding Culture Culture is the lens through which consumers view products and try to make sense of their own and other people’s behaviour.. Culture dictates the manner of how people consume, the priority of needs and wants they attempt to satisfy. Consumption choices cannot be understood without considering the cultural context in which they are made. Therefore: Culture determines the overall priorities that a consumer attaches to different activities and products the success or failure of specific products and services. What is Culture? Culture is “that complex whole which includes knowledge, belief, art, law, morals, custom, and any other capabilities and habits acquired by man as a member of society.” (Edward B. Tylor, 1871) What is the difference between the two? Culture is "the collective programming of the mind which distinguishes the members of one group or category of people from another." (Hofstede, 1991, p.5) 3 Definitions of Culture “Culture may be defined as a set of values, ideas, artefacts, and other meaningful symbols that help individuals to communicate, interpret, and evaluate as members of society.“ (Engel, Blackwell & Miniard, 1990, p. 3). ‘Culture is a society’s personality and describes what people have in common. It is the total sum of learned beliefs, values, and customs that direct the consumer behaviour of members of a particular society’ (Schiffman et al., pp. 282) 4 (adapted from Douglas & Craig, 2011) Consumer CULTURE Cognition Attitude Values Patterns of Consumption Choices Information seeking Disposal? Macro Micro Meso Situational Factors Macro: The types of macroenvironmental variables, which condition consumer behavior, include economic variables such as GNI per capita, income distribution, GNP, income distribution, government exp, population- purchasing power and variety of options available The demographic factors such as population size and rate of growth, levels of education, socio-cultural factors such as cultural values, religion and geographic factors such as climate or topography. While each of these different factors can be clearly identified, it is important to remember that they interact with each other, as well as conditioning variables at other levels of context. Meso: within country differences in ethics groups, language, lifestyle, culture, topography In China, for example, there are marked differences in the economic infrastructure, consumer purchasing power and distribution channels between different regions (Batra, 1997; Cui and Liu, 2000). Micro: Local level info on market, economy This is defined here as consisting of the basic physical infrastructure in a village, town or city, including roads, water, electricity, the market infrastructure, i.e. the number and type of stores avail ...

1. Understanding the Consumer
Culture and Cultural Change
1
Understanding Culture
Culture is the lens through which consumers view products and

2. try to make sense of their own and other people’s behaviour..
Culture dictates the manner of how people consume, the priority
of needs and wants they attempt to satisfy.
Consumption choices cannot be understood without considering
the cultural context in which they are made.
Therefore:
Culture determines
the overall priorities that a consumer attaches to different
activities and products
the success or failure of specific products and services.
What is Culture?

3. Culture is “that complex whole which includes knowledge,
belief, art, law, morals, custom, and any other capabilities and
habits acquired by man as a member of society.”
(Edward B. Tylor, 1871)
What is the difference between the two?
Culture is "the collective programming of the mind which
distinguishes the members of one group or category of people
from another."
(Hofstede, 1991, p.5)

4. 3
Definitions of Culture
“Culture may be defined as a set of values, ideas, artefacts, and
other meaningful symbols that help individuals to communicate,
interpret, and evaluate as members of society.“ (Engel,
Blackwell & Miniard, 1990, p. 3).
‘Culture is a society’s personality and describes what people
have in common. It is the total sum of learned beliefs, values,
and customs that direct the consumer behaviour of members of a
particular society’ (Schiffman et al., pp. 282)
4

5. (adapted from Douglas & Craig, 2011)
Consumer
CULTURE
Cognition
Attitude
Values
Patterns of
Consumption
Choices
Information seeking
Disposal?
Macro
Micro
Meso
Situational Factors

6. Macro: The types of macroenvironmental variables, which
condition consumer behavior, include economic variables such
as GNI per capita, income distribution,
GNP, income distribution, government exp, population-
purchasing power and variety of options available
The demographic factors such as population size and rate of
growth, levels of education, socio-cultural factors such as
cultural values, religion and geographic factors such as climate
or topography. While each of these different factors can be
clearly identified, it is important to remember that they interact
with each other, as well as conditioning variables at other levels
of context.
Meso: within country differences in ethics groups, language,
lifestyle, culture, topography
In China, for example, there are marked differences in the
economic infrastructure, consumer purchasing power and
distribution channels between different regions (Batra, 1997;
Cui and Liu, 2000).
Micro: Local level info on market, economy
This is defined here as consisting of the basic physical

7. infrastructure in a village, town or city, including roads, water,
electricity, the market infrastructure, i.e. the number and type
of stores available, the social and housing/living context, i.e.
the nature of housing and family living arrangements, and the
media context. All these form the immediate context in which
consumers make consumption and purchase decisions and hence
influence the nature of those decisions, which are in turn
influenced by the economic, societal and ethnic patterns
characterizing the environment.
Sit: gift vs personal, work vs leisure, at home out of home
5
What is Culture?
Culture is a society’s (group’s) system of shared, learned
values and norms; these are the society’s (group’s) design for
living
Values: abstract ideas about the good, the right, the desirable
Norms: social rules and guidelines; guide appropriate behavior
for specific situations
Folkways: norms of little moral significance dress code; table
manners; timeliness
Mores: norms central to functioning of social life bring serious
retribution: thievery, adultery, alcohol

8. 6
Culture is not static; it is continuously evolving, synthesizing
old ideas with new ones.
Cultures are learned, shared, and composed of inter-related
parts.
A value system is the organisation of beliefs concerning
preferable modes of conduct or end-states of existence along a
continuum of relative importance.
Value systems order values and in turn aid understanding how
people consume.
More on…Culture

9. Subcultures
“An ethnic, regional, economic, or social group exhibiting
characteristic patterns of behavior sufficient to distinguish it
from others within an embracing culture or society”.
(merriam-webster)
a distinct and identifiable cultural group that has common
values with the whole society but also has characteristics that
are unique to itself.
(Ghauri & Cateora, 2010)
Examples?

10. 8
Similar characteristics with the society but distinct identifiable
characteristics than others in the society.
Indonesia has more than 300 ethic groups with different
lifestyles
International Marketing Implications
Schiffman/Kanuk/Das
Copyright © 2006 Pearson Education Canada Inc.

11. 9
Elements of Culture
Ghauri and Cateora (2010), Copyright © McGraw-Hill
companies.

12. 10
Material Culture: Technology and economic activity;
infrastructures
Language: High and Low context culture
Social institutions: business, political family, reference groups
Education: dissemination of knowledge-existing
cultures/traditions; product adaptations.
Aesthetics: art, music, folklore and drama; Product/brand
saliences
Belief system: religion and influence on consumption, work
ethics, gender roles

13. Material culture:
Material culture affects the level of demand, the quality and
type of products demanded & their functional features as well
as the means of production of these goods and their distribution.
Ex. Electric can openers.
Language:
Consumer and business attitudes towards time-related
behaviour. Ex. “by today”

14. 12
Social Institutions are built on the process of how people relate
to one another, organise, act, live in harmony, govern etc.
Malinowski (1948) categorises the relationships that build
social institutions: reproduction, territoriality, physiology,
occupation, etc.
Influence of the concept of self vis-à-vis others
Education
How is knowledge disseminated?
Literacy rate

15. Aesthetics
Concept of beauty, colour, shape, etc.
Could be strongly associated with symbolic beliefs
Belief system
Religion,
Superstitions
Power structures
Influences habits, values, food, clothing
For more on culture:
http://www.worldvaluessurvey.org/WVSContents.jsp
http://www.europeansocialsurvey.org/about/index.html

16. Understanding Culture
Products can reflect underlying cultural processes of a
particular period:
Iphone?
Facebook?
Recycled products?
Organic products?
Microwaveable foods?
What do these products say about today’s culture?

17. 15
Hall’s Cultural dimensions of language
High context cultures
Loaded messages
Tight ties within groups
Knowledge is situational
Decisions and activities are based on face-to-face relationships
Strong authority
Is there a subtext? Is your words supported by facial gestures?
Example cultures: China, India, France, Turkey
16

18. Low context cultures
Objective messages
More knowledge is codified, public, external, and accessible
Transferable meaning
Decisions and activities focus around what needs to be done,
division of responsibilities
How simple and general is your message?
Example cultures: US, Germany
Traffic and road signs are usually good examples of low
context.
17
Hall’s Cultural dimensions of language

19. Hofstede’s Dimensions of Culture
Power
Distance
Uncertainty
Avoidance
Masculine
versus
Feminine
Individualism
versus
Collectivism
Way members perceive differences in power when they form

20. interpersonal relationships
Degree to which people feel threatened by ambiguous situations
Degree to which sex roles are clearly delineated
Extent to which culture values the welfare of the individual
versus that of the group
Hostede's website on dimensions
19

21. 20Dimension HighLowIndividualism Consumption is influenced
by personalised cognitive factors.
Internal motivation leading to purchase.
New ideas gained by individual search. Consumption is
influenced by the group.
External motivation leading to purchase.
New ideas come from group.
Power DistanceDifferent consumption patterns among unequal.
Purchase behaviour to reflect and enhance the inequality.
New ideas are accepted if enhancing power.No distinct
difference among consumption patterns. Goods and services are
available to all.
Purchase behaviour to reflect elimination of the inequality.

22. New ideas are accepted if eliminating the inequality.
Uncertainty AvoidanceReluctance to new products and ideas.
Focuses on risk evasion. Seeking all the information prior to the
action.More eager to try new products and to accept new ideas.
Self-reliant, less need for information prior to purchase.Gender
Identification
May favour either gender and products to appeal to these
genders may be more popular.
Consumption reflects and enunciates gender roles. Outlets
catering for either gender.
New ideas are acceptable if enhancing gender roles.
Products without gender orientation appeals could be more
favoured.
Consumption is unisex. Outlets catering for either gender.
New ideas, products, etc. more acceptable if they further
eliminate gender roles.

23. Social Class
Associated with educational
opportunities, occupations etc.
Generation
Separates grandparents, parents
and children
Gender
Born boy or girl
Regional/Ethnic/Religious/Linguistic
Affiliation determining basic
cultural beliefs
Layers of Culture
National
Consumer’s country determines
basic cultural assumptions

24. Advertising
In France is predominantly emotional, dramatic and symbolic
In England Value laughter above all else - self-deprecating
British commercial amuses by mocking both advertiser and
consumer
In Germany Want factual and rational advertising -Typical
German ad features standard family of 2 parents, two children,
and grandmother
In USA is a direct approach
Westerners are superstitious about the number 13, and Japanese
feel the same way about the number 4
Airlines don’t have row number 13 (Air France, Lufthansa)
however, Emirates do
Shi, the Japanese word for four, sounds like the word for death.
(Marieke de Mooij 2005)

25. https://www.youtube.com/watch?v=cWd6L37EmUc
Culture is often described in terms of high (elite) and popular
(low) forms.
The distinction between high and popular culture are blurring.
High culture has tended to be class-biased.
Popular culture reflects the world around us
Products of popular culture tend to follow a cultural formula
and contain predictable elements.
High and popular culture

26. 23
Popular culture – these phenomena touch both rich and poor.
24

27. Recommended Reading
Soloman, Bamossy & Askegaard (2006) Consumer Behaviour: A
European Perspective, Prentice Hall, Chapters 14, 15 and 16
Hofstede, G. (1980) Culture’s Consequences: International
Differences in work-related Values, Beverly Hills, CA: Sage
Davies, A. & Fitchett, J.A. (2004) Crossing Culture: A Multi-
Method Enquiry into Consumer Behaviour and the Experience
of cultural transition, Journal of Consumer Behaviour, Vol 3,
Issue 4, p315

28. Understanding the Consumer
Income and Social Class
1

29. Income and Social Class
Every culture has social hierarchies some more rigid than others
Social Class is an important indicator of how money is spent.
Affects access to resources. Affects taste and lifestyles
“People who occupy different positions in society consume in
different ways” (Solomon et al, 2006:428)

30. Relative value of social class versus income in predicting
consumer behaviour:
Social class appears to be a better predictor of purchases that
have symbolic aspects (logos)
Income is a better predictor of major expenditures that do not
have status or symbolic aspects.
Social class and income data together are better predictors of
purchases of expensive, symbolic products.
Income and Social Class

31. A consumer’s social class refers to his/her standing in society.
Virtually all groups make distinctions among members in terms
of relative superiority, power, and access to valued resources.
Every individual senses that he/she is more at home with and
more acceptable to some groups than to others
Consumers often use external symbols of status to indicate their
position in society; e.g. clothing, store patronage, furniture.
Social Class

32. Social Class
How do we measure social class?
Income
Family Background
Education
Occupation
Taste - Culture
“[Ones] place in the social structure is not just a determinant of
how much money is spent , it also influences how it is spent”
(Solomon et al, 2006:433).

33. Social Class Trends
Social Mobility
Upward/ Downward/ Horizontal
General upward mobility over time
Reasons for upward mobility trend
Small and successful companies
Internationalisation of trade made goods more available and
affordable
Global communications/media has increased exposure to and
knowledge of goods
Increase in dual income families
Higher educational attainment
Upper/middle classes not reproducing as much as working
classes

34. A basic assumption of economic psychology is that consumer
demand for goods and services depends on their ability and
willingness to buy.
Discretionary spending only occurs when people are able and
willing to spend money on items above and beyond their basic
needs.
Consumer confidence or the state of mind, consumers have
about their own personal situation, as well as their feelings
about their overall economic prospects helps to determine
whether they will purchase goods, take on debt or save their
money.
Factors Influencing Consumer Spending

35. Socio-Economic GroupingsAUpper Middle ClassHigh
managerial/ professional
e.g.company director, doctor, solicitorBMiddle
ClassIntermediate managerial/admin/professionalC1Lower
Middle ClassSupervisory/clerical/junior managerialC2Skilled
Working ClassSkilled manual workersDWorking ClassSemi-
skilled or unskilled workersEPensioners, casual
workersPensioners, unemployed, homeless

36. Figure 12.4 Distribution of social class in selected countries,
2011
Social Class (continued)

37. 9
Social Class & Consumption
Conspicuous Consumption
The acquisition and visible display of luxury goods and
services to demonstrate one’s ability to afford them.
“Keeping up with the Joneses”
Status Symbols
Products and services that indicate where they are in the social
hierarchy e.g. Rolex watches, Mercedes cars, nice houses
The Trophy Wife
The Leisure Class
“As long as there are people who can afford perfection, BMW
will continue to build it”

38. Social Class & Consumption
Compensatory Consumption
Acquisition to restore lost of self-esteem
or other difficulties in life.
Taste Culture
Differentiates people in terms of their aesthetic /
intellectual preferences
Parody Display
The mocking of status symbols by deliberate avoidance to
demonstrate “true” status e.g. Jeeps amongst Upper Classes.
(Brooks, Showing off America, 1981)

39. The Upper Classes
Old Money
Focus on where money comes from,
how it is spent, family history.
More likely to save and invest
Nouveau Riche
Acquired money more recently and tend towards more
conspicuous consumption. Doing the right thing! (Consumption
is a skill!)
The Get Set
Reasonably well-off but not rich, desire the best quality
products and sacrifice other things to have them.

40. More likely to view themselves as:
Possessing more developed social/cultural skills.
Having a wider social network (Fisher, 1987)
Intellectual, liberal, political and socially conscious
In control of their lives (Elliot & Leonard, 2002).
More likely to buy:
Theatre, art, books, travel (especially unusual foreign)
donations to good causes, prestige schooling, membership of
private clubs, high quality prestige brands.
More likely to engage in careful information search.
Less likely to use price as an indicator of quality but rely on
actual product characteristics
More concerned about long term purchases
The Middle Classes
Those in the middle classes work with their minds.
Often provide professional service to others e.g. healthcare,
education.
Secure jobs, long hours

41. Well educated/ educated parents.
Becoming more diverse: more multi-cultural (immigration)
Focus on doing the “right thing”, “buying what’s popular” “do
what’s good for the children”; “being fashionable”
A nicer home in a nicer area on the better side of town with
good schools.
Aiming children towards a college education.
Constant concern over appearance of public areas in one’s
home.
More into activities-pleasure than possessions-pride.

42. More likely to spend on:
Housing (location important), education, quality branded
clothes, home furnishings, wine, eating out, golf, tennis,
squash, skiing, buy on credit
Spend on comfort, pleasure, youth, time-savers.
Spend for value rather than conspicuous consumption; they
value substance over style and quality over show.
Look to Upper Classes (Cultural trickle-down) - For guidance
on dining etiquette, apparel (cloths) selection
The Working Classes
People who work with their hands.
Routine, mechanised jobs with little job security.
Becoming younger, more ethnic, more female, more educated.
Due to downsizing, wages have gone down in real sense.
More unemployment, illness and shorter lives.
Family oriented, live close together, dependent socially and
psychologically.

43. Maintaining the home is paramount
Resistant to change, traditional gender roles exist
Women in home, men the breadwinners, men go hunting,
fishing, to the pub, mend the car.
More limited horizons: socially, psychologically and
geographically.
More likely to:
Eat at home, spend rather than save, judge quality by price,
shop in mass retail/discount stores, buy domestic vehicles over
foreign
Tend to be more brand loyal – look for popular brands, often
spend more than they need to.
More concerned with short term needs
Believe in external control of their lives.
More likely to smoke.
Lively ads and promos work well as they break the monotony of
their mundane lives.
Children aspire to fashion brands as a means of symbolic self-
completion.

44. Marketing Implications of
Social Class
A method of segmenting the market
Product/service development
UC willing to pay high prices for prestige, status symbols
WC want good quality at a fair price
Many product lines developed for various classes
Develop products to appeal to consumers aspirations E.g. Wine
appreciation books, classical music compilations

45. Restricted vs Elaborated codesRestricted (WC)Elaborated
(UC)LanguageFew adjectives, adverbs
Use concrete, descriptive and tangible symbolismLanguage rich
in personal, individual qualifiers
Large vocabulary, complex conceptual hierarchySocial
RelationshipsStress attributes of individuals over formal
rolesStress formal role structure, instrumental
relationshipsTimeFocus on present, only general notion of
futurePresent activities and future rewardsPhysical spaceCorner
shop, places in context of others ie front roomRooms and spaces
in context of the activity – dining room, financial
districtImplications for marketersInherent quality, contents
Use simple adjectives, descriptorsDifferences, uniqueness from
other products
Use complex adjectives, descriptors
16

46. Living room clusters and social class
17

47. Advertising messages
UC “show long term benefits”
WC “focus on the home, friends, sports”
MC “doing the right thing”, “being fashionable”, “good for the
children”
Media exposure
Different media to different classes
Outlet exposure
Different outlets appeal to different classes e.g. Harrods, House
of Fraser, BHS

48. Marketing Implications of
Social Class
Income
“ Distribution of wealth is of great interest to marketers since
it determines which groups have the greatest buying power and
market potential” (Solomon et al, 2006:438).
Individual income shifts are often a result of:
a shift in women’s roles – an increasing number of women are
joining the labour force

49. increases in educational attainment
the state of the economy
Relationship between Income & Social Class
Income is NOT strongly related to social class because:
Income levels overlap between social classes
Incomes increase with age but older people are not of a higher
social class
Dual career families generate higher incomes but not
necessarily higher status
Income cannot explain social class but social class can explain
how income is used

50. Status is more closely related to occupation than income.
Classes are mostly to do with social networks and peer
judgements of “people quality”
(Coleman, 1983)
22
The Bling Dynasty

51. Recommended Reading
Bourdieu, P (1986) Distinction; a social critique of the
judgement of taste. London: Routledge.
Solomon et al (2013) Consumer Behaviour A European
Perspective, Fifth edition. London: Prentice Hall.
Ostergaard, P., Jantzen, C. (2000), Shifting perspectives in
consumer research: from buyer behaviour to consumption
studies, in Beckmann, S., Elliott, R.H (Eds),Interpretive
Consumer Research : Paradigms, Methodologies &
Applications, CBS Press, Copenhagen, pp.9-23.
www.future.sri.com/vals

52. Recommended Reading
Sobel, M.E., De Graaf, N.D, Heath, A. & Zou, Y (2003) Men
matter more: the social class identity of married British women
1985-1991, Journal of Royal Statistical Society, pp37-52
Coleman, R.P. (1983) The continuing significance of Social
Class to Marketing, Journal of Consumer Research, 10, pp265-
280