Page 168 - Encyclopedia of Business and Finance

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Consumer Behavior

identity; and (3) normative influences, whereby the group ences and similarities in consumer behavior across cul-
specifies guidelines and sanctions for appropriate or inap- tures becomes increasingly meaningful, with important
propriate individual behaviors. implications about the degree to which marketing strate-
The influence of groups on consumer behavior tends gies can be standardized across countries and cultures, or
to vary with a variety of group- and product-related fac- localized to reflect country- or region-specific cultural dis-
tors. For example, the more the group is perceived to be a tinctions.
credible, valued source of approval or disapproval to the One important cultural difference is the degree to
consumer, the more likely that consumer is to conform to which the self is defined as independent from others ver-
group values. In addition, the more frequently group sus interdependent with important others. Individualistic
members interact, and the more outwardly visible use of societies, such as the United States, tend to foster an inde-
the product is to group and nongroup members, the pendent sense of self, with the self believed to be a set of
greater the group’s influence on individual consumption internal attributes unique to each person. Collectivist
behavior. societies, however, such as China, foster an interdepend-
ent sense of self, with the self believed to be inseparable
Family Influences on Consumer Behavior. Families have from others and the social context; person-specific attrib-
a particularly significant influence on consumer behavior. utes are less important in self-definition than are interper-
For example, consumption behavior often changes sub- sonal relations. These differences in self-definition affect a
stantially as family status changes over time. Thus, young variety of consumer behaviors, including emotional reac-
unmarried adults, who are often focused on individual tions to advertisements, the degree to which information
self-definition, tend to purchase products that enhance or from others is valued when making consumption deci-
define their self-concepts. In contrast, couples with chil- sions, and gift-giving behavior.
dren may be more interested in purchasing items or expe- In addition to cultural differences that exist across
riences that can be shared by all family members and, as a countries, marketers are also increasingly recognizing the
result, may spend less on individually oriented products. importance of subcultural differences within a society.
Family membership also leads to a greater need for Subcultures are distinctive groups within a society that
joint rather than individual decision making, further com- share common meanings. Subcultures can often be iden-
plicating consumer behavior at the household level. For tified based on demographic characteristics, such as geo-
example, the person who buys a product may not be the graphic location (e.g., the southern United States),
ultimate consumer of the product. Or perhaps the hus- ethnicity (e.g., Hispanic Americans), or age (e.g., baby
band and wife have differing levels of involvement with boomers). Subcultures can also be identified based on
certain product decisions, leading to different types of common lifestyles.
separate decision processes that must be integrated before The start of the twenty-first century saw a growing
a choice is ultimately made. emphasis on lifestyle segments based on food restrictions
Understanding the dynamics involved in joint deci- and food choices. For example, vegetarians, vegans, those
sion making and which family members influence which who eat only organically grown food, and those who
types of decisions has important implications for mar- require gluten-free food are rapidly growing segments of
keters interested in directing marketing efforts to the right the population. There are some national retailers, such as
person. Importantly, these family dynamics and lifestyle Whole Foods Market, who serve a multitude of these spe-
transitions are complicated by the decline in traditional cialized segments.
households and the accompanying rise in nontraditional There are also more targeted specialized products and
family structures, such as cohabitating couples or couples services, such as Gluten-Free Living, a national magazine for
integrating families from previous marriages. people who follow a gluten-free diet (http://www.gluten-
freeliving.com). Importantly, identification of lifestyle sub-
Cultural and Subcultural Influences on Consumer cultures, and the corresponding development of an
Behavior. Culture comprises the common meanings and inventory of shared meanings, is typically more difficult
socially constructed values accepted by the majority of than the development of such understanding of subcultures
members of a society or social group. It includes such based on observable demographic characteristics.
things as shared values, beliefs, norms, and attitudes, as Increasingly, Internet marketers have come to realize
well as affective reactions, cognitive beliefs, and patterns the value of subculture segments and have tailored prod-
of behavior. Typically, when we think of culture, we tend uct offerings and/or Web site content to appeal to partic-
to think of differences among individuals from different ular subcultures, most often demographically based, and
countries or regions of the world. With the increasing to foster a greater sense of community and connection
globalization of the world economy, understanding differ- among subculture members. For example, iVillage.com

ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION 145