Cultural Factors and Lifestyles in Consumer Behavior - Case Study: "Celebrations

1. Session 4Culture & Lifestyles Silvia Cacho Elizondo November 15, 2005

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

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

4. Review

5. Typology of groups • Size 1) Primary groups (limited size) 2) Secondary groups (sub-groups) • Purpose1)Socio-groups(commun objectif) 2)Psycho-groups(interaction) • Structure1) Formal(norms and rules) 2) Informal(non explicit norms) • Status1) Membership groups 2) Reference Groups Silvia Cacho-Elizondo

6. 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. Silvia Cacho-Elizondo

7. 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 Silvia Cacho-Elizondo

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

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

10. 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 Silvia Cacho-Elizondo

11. The nature of Opinion Leadership Silvia Cacho-Elizondo

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

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

14. Companies’ strategies • Simulate by product usea « 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 Silvia Cacho-Elizondo

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

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

17. Silvia Cacho-Elizondo

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

19. Concept testing “Agua de Jamaica” Another kind of iced tea ?

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

21. Silvia Cacho-Elizondo

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

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

24. 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. Silvia Cacho-Elizondo

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

26. 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 Silvia Cacho-Elizondo

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

28. LifestylesConsumption Subcultures • A single activity • An interest • A neighborhood • A brand • A whole generation or a particular segment within a generation Silvia Cacho-Elizondo

29. 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» Silvia Cacho-Elizondo

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

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

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

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

34. Evolution of VALS classification • 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. Silvia Cacho-Elizondo

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

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

37. The VALS Segments Silvia Cacho-Elizondo

38. The VALS Segments Silvia Cacho-Elizondo

39. 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 Silvia Cacho-Elizondo

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