Chapter 11: Introduction to Environment

1. Chapter 11: Introduction to Environment

2. Environment • Refers to all physical and social characteristics of a consumer’s external world. • physical objects • spatial relationships (location of stores/products) • social objects (who matters/what they think and do) • What matters is the “perceived” or “functional” environment. • Macro and Micro environment

3. Macro Social Environment • Indirect social interactions between large groups of people such as: • culture • sub-culture • social class • Useful for market segmentation

4. Micro Social Environment • Direct interactions among smaller groups of people such as: • family • reference group • Often has strong influence on knowledge and feelings about products, stores, ads, and consumption behaviors. • Family and reference group are influenced by macro factors such as culture, sub-culture.

5. Flows of Influence in Social Environment Culture Subculture Social Class Family Media Organizations Reference Groups Individual consumers

6. Physical Environment • Spatial • products, brands, ads, cities, stores etc. • Non-Spatial • intangibles such as temperature, humidity, noise, time etc.

7. Situations • It is difficult to analyze the environment factors that influence affect/cognition/behavior. • It is easier to analyze the influence of environment in “situations” defined as sequence of goal-directed behaviors, affective and cognitive responses that take place in an environment. • e.g., going to the mall to look for a CD is a “shopping situation”, and having lunch with a friend is a “consumption situation”.

8. Situations (continued) • Vary in complexity • number of physical/social environment • number of goals • number of affective/cognitive/behavioral responses • Many situations are recurring, such as grocery shopping situations. • Marketers help consumers by creating goals, evaluative criteria etc.

9. Types of Situations • Information Acquisition • how consumers engage in info contact • how you communicate info to consumers • Shopping - store/product contact • Purchasing • Consumption • Disposition

10. Chapter 12: Cultural and Cross-Cultural Influences

11. Culture • Meanings shared by people in a social group. • Levels of Analysis: • society, sub-cultures, and social class • market segments, individual customers (especially in business to business marketing and personal selling. • Shared meanings • Created by people • Constantly changing

12. Two Approaches to Understanding Cultural Influences • Examine its “content” • includes characteristic behaviors, norms, goals, values, traditions, customs etc. • Examine its “structure” • how content is generated and distributed in the culture, i.e., the “structure” of culture.

13. Measuring Cultural Content • Content Analysis: • examine objects produced by the culture such as arts, advertisements, comic books, literature, movies, products etc. • Ethnographic Fieldwork: • observe consumers’ emotional, cognitive and behavioral responses in ordinary lives and interpret meanings. • Measure Values (Rokeach, VALS) and Core Values

14. Some Core American Values • Achievement and success • Activity • Efficiency • Progress • Material comfort • Individualism • Freedom • External conformity or Need to fit in. • Humanitarianism • Youthfulness • Fitness and Health

15. Culture as a Process • Examines how cultural meanings are moved from different aspects of the society. • Assumes that cultural meanings reside in: • the social and physical environment • products and services • individual consumers • Marketing strategies move meanings from environment to products and consumption rituals move meanings from products to consumers.

16. A Model of the Cultural Process Cultural meaning in social and physical environment Marketing strategies Fashion systems Other institutions Cultural meaning in products and services Consumption Rituals Consumption meanings generated by consumers Social interactions Intentional actions

17. Role of Marketing Strategies • Advertising uses symbols (slice of life from small-town America) to transfer meanings from the society to products (Chevrolet, the Heartbeat of America). • symbols are words, objects, events, images that “stand for something” and widely accepted by the members of the culture. • Price may signify status • Product design (the PT Cruiser from Chrysler)

18. Products Acquire Cultural Meanings • Virginia Slims, Camel • Marlboro Man • Coca-Cola • Apple • Mercedes-Benz • J.C.Penney Vs. Wal-Mart Vs. Nordstrom or Saks

19. Moving Meanings from Product to Consumer: Rituals • Symbolic actions performed by consumers to create, affirm, evoke, or revise cultural meanings • Acquisition rituals • Possession rituals including product nurturing and personalizing rituals • Exchange rituals • Grooming rituals • Divestment rituals