3/23/2017 1 MBA404 Consumer Behaviour & Marketing Psychology Cultural Factors: Culture and Values, Subculture, Social Class Workshop 73/23/2017 2 Copyright Notice COPYRIGHT COMMONWEALTH OF AUSTRALIA Copyright Regulations 1969 WARNING This material has been reproduced and communicated to you by or on behalf of Kaplan Higher Education pursuant to Part VB of the Copyright Act 1968 (the Act). The material in this communication may be subject to copyright under the Act. Any further reproduction or communication of this material by you may be the subject of copyright protection under the Act. Do not remove this notice3/23/2017 3 This Topic’s Big Idea “Culture adapts to changing needs and an evolving environment.”3/23/2017 4 Learning Objectives 1. Identify and understand cultural factors affecting consumer decisions. 2. Understand cultural differences. 3. Identify and understand social factors affecting consumer decisions. 4. Examine and discuss how cultural and social factors change over time. 5. Practice designing sample survey questions.3/23/2017 5 Cultural Factors Culture Subculture Social Class3/23/2017 6 What is Culture? In pairs or small groups: • Using your own words define culture. • Compare your definition with your partner or group.3/23/2017 7 What is Culture? A set of values, ideas, artifacts, and other meaningful symbols that help individuals communicate, interpret, and evaluate as member of society. • Sense of self and space • Communication and language • Dress and appearance • Food and feeding habits • Time • Relationships • Values and norms • Beliefs and attitudes • Cognitive learning • Habits and practices Adopted from: Elliott, et all, 2014, Group Factors – Chapter 4, Marketing 3rd Edition, pp 120-130, John Wiley & Sons, Australia3/23/2017 8 Two Levels of Culture Immediate Experimental Level • Taste in food • Music • Entertainment • Fashion Deeper Level • Cultural values and beliefs Workshop Activity 1 • Discuss how your culture or heritage impacts on your purchasing decisions as a consumer in Australia. Adopted from: Elliott, et all, 2014, Group Factors – Chapter 4, Marketing 3rd Edition, pp 120-130, John Wiley & Sons, Australia3/23/2017 9 Influences on Culture Cultural Artifacts: include material components of a culture Ethnicity Race Religion Regional or National identity Culture Values Norms Rituals Symbols Artifacts Technology Infrastructure Abstract/Behavioural Physical/Material Influences Image adopted from: Aussie-info, 2016 viewed on 9th of December 2016 http://www.aussieinfo.com/identity/nationalid.php Image adopted from: The truth about vegemite, 2014, International Blog, viewed on 9th of December 2016 http://blogs.acu.edu.au/international/15898/ the-truth-about-vegemite/ Adopted from: Blackwell, DR, Miniard, PW, Engel, JF, 2006, Culture, Ethnicity and Social Class, pp 426-427, Thomson SouthWestern3/23/2017 10 Workshop Activity 2 Individually: • Identify the culture of your origin • Using a piece of paper create a list outlining your culture’s: - Specific influences - Abstract/behavioural elements - Physical/material elements • Form pairs or small groups and discuss your list. • Identify similarities and differences and discuss the culture of your origin with the rest of the class.3/23/2017 11 Cultural Dimensions Theory 1973: Original Model by Geert Hofstede 1991: Extended Model by Michael Harris Bond 2010: Extended Model by Michael Minkov Power Distance Individualism vs Collectivism Masculinity vs Femininity Uncertainty Avoidance Long-Term vs Short-Term Orientation Indulgence vs Restraint Adopted from: National Culture, Geert Hofstede, viewed 7th of December 2016 https://geert-hofstede.com/national-culture.html3/23/2017 12 Workshop Activity 3 Let’s compare the culture of your country of origin with Australian culture. • Click on the following link and select your country of origin: https://geert-hofstede.com/countries.html • Select Australia as the second country in the drop-down window. • Compare each dimension. Did the result surprise you? • Which cultural dimensions do you think have an impact on your decision-making process? Give an example. • Discuss your example with the rest of the class.3/23/2017 13 Subculture Is a group of individuals who differ on some influential dimensions from the broader culture in which they are immersed. • E.g. Australia is famous for its beach and surf culture. Multiculturalism in Australia: • A quarter (24.6 per cent) of Australia's population was born overseas. • 43.1 per cent of people have at least one overseasborn parent. Within subcultures, members share common: • Attitudes • Values • Behaviours Watch Me: PAST: https://www.youtube.com/watch?v=CQFPxM yHZuo PRESENT: https://www.youtube.com/watch?v=gToqX_s5 c1Y Adopted from: Census 2011, viewed on 9th of December 2016 http://abs.gov.au/websitedbs/censushome.nsf/home/CO-593/23/2017 14 Workshop Activity 4 • Do you belong to a subculture? • Which one? • What are the characteristics of your subculture? • How does your subculture influence your decision to buy specific products and/or services? Give an example. • Discuss with the rest of the class.3/23/2017 15 Social Class Most societies exhibit a social hierarchy, organised into social classes. A social class comprises individuals of similar social rank within the hierarchy. Social ranking forms the basis of social prestige and respect in most countries. In Australia the social class system is regarded as ‘open’ because individuals are able to move from one class to another relatively easily. The Australian Class Systems Survey Watch Me: https://www.youtube.com/watch?v =pxlx4bF9px0 Adopted from: Elliott, et all, 2014, Group Factors – Chapter 4, Marketing 3rd Edition, pp 120-130, John Wiley & Sons, Australia3/23/2017 16 Workshop Activity 5 In pairs or small groups devise a diagram indicating the social class system in the country of your origin. • Identify the main distinguishing factors separating the social classes. • Which social class do you think your family or household belongs to? Discuss your views with the rest of the class.3/23/2017 17 Social Factors Reference Groups & Opinion Leaders3/23/2017 18 Reference Groups A reference group is any group to which an individual looks for guidance as to what are appropriate values, attitudes or behaviours. • Reference groups can be large or small. • An individual may be a member of several reference groups. Adopted from: Elliott, et all, 2014, Group Factors – Chapter 4, Marketing 3rd Edition, pp 120-130, John Wiley & Sons, Australia3/23/2017 19 The 3 Main Types of Reference Groups Membership Reference Groups Aspiration Reference Groups Dissociative Reference Groups “EMO” “Fashion, Cars or IT” “Bogan” Image adopted from: Kingofwallpapers, 2016 http://kingofwallpapers.co m/emo.html Image adopted from: Jones, K 2012, It’s Official: I’m a bogan legend!, Herald Sun, viewed 9th of December 2016 http://www.heraldsun.com.au/ipad /its-official-im-a-boganlegend/newsstory/955273623a5c67c98c148c4 6bd9fa241 Image adopted from: Lawson, T 2016, Blue Booming, Red Rising: Car Colour Trends 2015/16, Car Advice, viewed on 9th of December 2016 http://www.caradvice.com.au/40 1462/blue-booming-red-risingcar-colour-trends-of-201516/ Adopted from: Elliott, et all, 2014, Group Factors – Chapter 4, Marketing 3rd Edition, pp 120-130, John Wiley & Sons, Australia3/23/2017 20 Workshop Activity 6 Now it is your turn! • In pairs or small groups come up with another 2 examples of each reference group. • Discuss with the rest of the class.3/23/2017 21 Opinion Leaders In many reference groups, some individuals occupy the role of opinion leader. An opinion leader is a reference group member who provides relevant and influential advice about a specific topic of interest to group members. – Regarded as experts Workshop Activity Explain how opinion leaders influence group behaviours. • Choose five products (ideally a mix of goods and services) and explain who the opinion leader is for each one. • Explain your choice. Adopted from: Elliott, et all, 2014, Group Factors – Chapter 4, Marketing 3rd Edition, pp 120-130, John Wiley & Sons, Australia3/23/2017 22 Workshop Activity 7 Now go back to the previous workshop activity where you came up with the reference group examples. • Identify who the opinion leader would be for each reference group. • Discuss it with the rest of the class.3/23/2017 23 Assessment 2 Recap Assessment Title Survey Sample and Analysis Length 10-Question Survey and Five-Page Analysis Weighting 35% Total Marks 100 Submission Online via Turnitin Due Date Week 10 (Monday, 23:33PM AEST) Description Based on the analysis you conducted in Assessment 1, you are required to create a survey via Survey Monkey – a free online instrument. The sample size must include a minimum of 15 participants who recently purchased the product or service that you analysed in Assessment 1. The survey must comprise a minimum of 10 questions. You are then required to provide a 5-page summary of the key findings.3/23/2017 24 How to Create a Sample Survey Why survey? • Efficient way to collect information about a large group of people. • Flexible medium that can help you to understand the driving forces of consumer behaviour. • Easy to administer. • Can be tailored specifically to the area of your interest.3/23/2017 25 Keys to Effective Surveying • Begin with a clear purpose. – What are you trying to find out? – Your purpose will determine the scope and nature of your survey. • Know what you want to be able to do with the data ahead of time. – Refer to the assessment guidelines.3/23/2017 26 Designing Surveys: A Three-Step Process 1. Survey Construction 2. Survey Administration 3. Survey Analysis3/23/2017 27 1. Survey Construction Questions: Each question should have a defined objective. Pay close attention to question wording: avoid using complex terms. Start with high-interest questions and close with demographic questions. Keep it simple. Eliminate any unnecessary questions. Evaluate your survey prior to administration.3/23/2017 28 Question Types Open-Ended Questions • Qualitative research • Find out what people think about a product or service • No standard answers to answer question • Seek opinions • Data analysis is more complex • Fewer questionnaires needed to be distributed Closed Questions • Quantitative research • Find out how many people use a product or service • Follow a set format • Seek numbers • Can be scanned straight into computer for easy analysis • Greater numbers can be produced Both types of questions can lead to further research.3/23/2017 29 Examples Open-Ended Question Describe the experience you had today at your local supermarket. Closed-Ended Question Did you have a good experience today at your local supermarket? Formerly Closed, now Open-Ended What caused you to have such an experience at your local supermarket today?3/23/2017 30 Question Types Likert Scale • Offers rank options, and each option is logically equidistant from the next option. • Best suited to measure attitudes. Multiple Choice Questions • Measures nominal variables. • Used when there are a finite number of options. • Can include “All of the above”.3/23/2017 31 Examples Likert Scale On a scale of 1-5, with 1 being Dissatisfied and 5 being Satisfied, please indicate to what extent you agree with the following statement: “Volvo is the safest car.” Multiple Choice Questions It's important to observe that even a simple behaviour like shampooing is tied to: A) Gender B) Social class C) Ethnicity D) Age E) All of the above3/23/2017 32 Practice Activity 1 In pairs read the scenario below: You are the manager of the Apple store in Australia. You are interested in learning more about your customers, especially their demographics, preferences and satisfaction. • Construct five survey questions using: – Open-ended questions – Closed questions – A closed question turned into an open-ended question – Utilise the Likert Scale for some questions – Utilise multiple choice questions for others3/23/2017 33 2. Survey Administration • Create a survey using Survey Monkey – a free online questionnaire instrument. • You will need to create your own account by using the following link: https://www.surveymonkey.com/ user/signup/?ut_source=homepage&ut_s ource2=lo_home_f_top • View the online tutorials provided in the assessment guide. • You can administer the survey to your participants by using: – Facebook – Messenger – Email – Text message3/23/2017 34 3. Survey Analysis • What is the meaning? • What relationships and trends are evident? • How do the findings relate to other information or literature? • What actions might be considered as a result of the findings? • Is there additional information or research that should be conducted? A final report should include the following: - Purpose - Development of survey instrument - Administration processes - Data analysis - Findings - Appendices (Survey Monkey graphical representation of results) Arial size 12 text font; 1.5 spacing; 6 pages (no more)3/23/2017 35 Practice Activity 2 In your pairs or small group exchange the survey questions that you have just created. • Answer the questions. • Share your answers with your partner or group mates. • Discuss the survey results. • Determine how you would formally report the survey results.3/23/2017 36 Next Week The Impact of Marketing on Consumer Behaviour: Emotion and Moods