1. Global Consumer Culture
Consumers & Consumption: The Tipping Point

2. Consumer Behavior
The study of the processes involved when individual or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires.
The context in which we study consumers & their interactions in the marketplace is called consumer behavior.
The field of consumer behaviors the study of how our world is influenced by the actions of marketers and at the same time how marketers are influenced by us. Fashion at times is created and dictated to consumers by retailers and manufacturers struggling to predict what we will wan to buy 6 months from now. Fashions are a driving force that influence the way we live. . It influences not only fashion but our hairstyles, art, food, music, cars, business practices, furniture just to name a few. All these things rely on each other and influence our behavior. 2

3. Situational Influences:
Consumer Decision Making
Internal Influences:
Perception
Motivation
Learning
Attitudes
Personality
Age groups
Lifestyle
Situational Influences:
Physical Environment
Time
MARKETING
Decision
Process
It is important for you to understand that in consumer decision making, internal influences, social influences, and situational influences are the three primary decision making influences (aside from marketing) that influence how us, as consumers, interact with the marketplace.
Social Influences:
Culture, Social class
Group memberships
PURCHASE 3

4. Understanding Products
Product Layers
Core Product
Actual Product
Augmented Product 4

5. Domains of Consumer Behavior
Relating Products to Consumer Behavior
Domains of Consumer Behavior
Products
Services
Ideas
Experiences
Acquiring
Consuming
Disposing 5

6. People buy products not for what they do, but for what they mean
Consumption
People buy products not for what they do, but for what they mean
One of the fundamental premises of the modern field of consumer behavior is that people often buy products not for what they do, but for what they mean. This does not mean that the product’s basic function is unimportant, but rather that the role products play in our lives go well beyond the tasks they perform. 6

7. Global Consumer Culture7

8. Culture is. . .
The accumulation of shared meanings, rituals, norms, and other traditions among the members of an organization or society
Culture can be viewed as society’s personality 8

9. Homogenous group of people
Culture
Values
Ideas
Attitudes
Homogenous group of people
Culture refers to the set of values, ideas, and attitudes that are accepted by a homogenous group of people and transmitted to the next generation. Culture also determines what is acceptable with product advertising. Culture determines what people wear, eat, reside, and travel. Cultural values in the US are good health, education, individualism, and freedom. In American culture, time scarcity is a growing problem. 9

10. Types of Culture Objective Culture
Can be easily seen and thus more easily interpreted or understood
Cars we drive
Clothes we wear
Food we eat
Subjective Culture
Not so easily understood on immediate observation
The roles we play
The beliefs we hold
The values we possess

11. Iceberg Concept of Culture
The iceberg metaphor is a good analogy for understanding culture. Part of the iceberg is immediately visible; part of it emerges and submerges with the tides, and its foundations go deep beneath the surface.
Above the water line: these aspects are explicit, visible, taught. This includes written explanations, as well as those thousands of skills and information conveyed through formal lessons such as manners. They are also tangible, such as the expectations regarding how people dress, season food, or decorate a house.
At the water line: this is the transition point; the area where implicit understanding is explained, sometimes seemingly irrational or contradictory but part of a cultures creed.
Below the water line: this is hidden culture--the habits, assumptions, understandings, values, judgments, etc. Ex. How do you know if someone is treating you in a friendly manner? The simple matter of a greeting can be interpreted differently from culture to culture. Within the culture, we don’t even give it a thought--we know and understand. 11

12. Cultural differences
Cultural differences influence the way we, as humans, see the world, interact in the marketplace, and relate to one another. 12

13. Functional Areas of a Cultural System
Aspects of Culture
Ecology
Social System
Ideology
Culture is NOT STATIC. It is continually evolving, synthesizing old ideas with new ones. A cultural system can be described in terms of ecology, its social structure, and its ideology.
World View
Ethos 13

14. The way in which a system is adapted to its habitat
Cultural ECOLOGY
The way in which a system is adapted to its habitat
Example: NYC or other large cities that have little room to expand and therefore they must build upward instead of outward (hence: skyscrapers & tall buildings) 14

15. Cultural IDEOLOGY
The mental characteristics of a people and the way in which they relate to their environment and social groups
Worldview: members of a society share certain ideas about principles or order
Ethos: a set of moral and aesthetic principles derived from the worldview
This revolves around the belief that members of a society possess a common worldview (they share certain ideas about principles of order and fairness)
They also share an ethos (a set of moral and aesthetic principles-the codes they accept to live by)

16. The way in which orderly social life is maintained.
Cultural SOCIAL SYSTEMS
The way in which orderly social life is maintained.
This includes the domestic and political groups that are dominant within the culture 16

17. Why are there so many choices?

18. Culture tends to flow from stronger nations to weaker ones
Diffusion of Consumer Culture
Culture tends to flow from stronger nations to weaker ones
Coke Cola
Disney World
English
In a global society consumers are quick to borrow from other cultures, especially those that they admire. More and more countries are beginning to adopt the Western Culture. American culture is spreading world wide through various products such as Coke Cola, Disney world, and the English language 18

19. Diffusion of Innovations
Diffusion of innovations theory was formalized by Everett Rogers in a 1962 book called Diffusion of Innovations. Rogers stated that adopters of any new innovation or idea could be categorized as innovators (2.5%), early adopters (13.5%), early majority (34%), late majority (34%) and laggards (16%), based on a bell curve. Each adopter's willingness and ability to adopt an innovation would depend on their awareness, interest, evaluation, trial, and adoption. Some of the characteristics of each category of adopter include:•innovators - venturesome, educated, multiple info sources, greater propensity to take risk•early adopters - social leaders, popular, educated•early majority - deliberate, many informal social contacts•late majority - skeptical, traditional, lower socio-economic status•laggards - neighbors and friends are main info sources, fear of debt. Rogers also proposed a five stage model for the diffusion of innovation:1.Knowledge - learning about the existence and function of the innovation2.Persuasion - becoming convinced of the value of the innovation3.Decision - committing to the adoption of the innovation4.Implementation - putting it to use5.Confirmation - the ultimate acceptance (or rejection) of the innovation
(from: 19

20. Diffusion of Innovations
Innovators (2.5%)
Early Adopters (13.5%)
Early Majority (34%)
Late Majority (34%)
Laggards (16%)
Diffusion of innovations theory was formalized by Everett Rogers in a 1962 book called Diffusion of Innovations. Rogers stated that adopters of any new innovation or idea could be categorized as innovators (2.5%), early adopters (13.5%), early majority (34%), late majority (34%) and laggards (16%), based on a bell curve. Each adopter's willingness and ability to adopt an innovation would depend on their awareness, interest, evaluation, trial, and adoption. Some of the characteristics of each category of adopter include:•innovators - venturesome, educated, multiple info sources, greater propensity to take risk•early adopters - social leaders, popular, educated•early majority - deliberate, many informal social contacts•late majority - skeptical, traditional, lower socio-economic status•laggards - neighbors and friends are main info sources, fear of debt. 20

21. Diffusion of Innovations
Innovators - venturesome, educated, multiple info sources, greater propensity to take risk
Early Adopters - social leaders, popular, educated
Early Majority - deliberate, many informal social contacts
Late Majority - skeptical, traditional, lower socio-economic status
Laggards - neighbors and friends are main info sources, fear of debt
Diffusion of innovations theory was formalized by Everett Rogers in a 1962 book called Diffusion of Innovations. Rogers stated that adopters of any new innovation or idea could be categorized as innovators (2.5%), early adopters (13.5%), early majority (34%), late majority (34%) and laggards (16%), based on a bell curve. Each adopter's willingness and ability to adopt an innovation would depend on their awareness, interest, evaluation, trial, and adoption. Some of the characteristics of each category of adopter include:•innovators - venturesome, educated, multiple info sources, greater propensity to take risk•early adopters - social leaders, popular, educated•early majority - deliberate, many informal social contacts•late majority - skeptical, traditional, lower socio-economic status•laggards - neighbors and friends are main info sources, fear of debt.
(from: 21

22. Diffusion of Innovations
Diffusion of innovations theory was formalized by Everett Rogers in a 1962 book called Diffusion of Innovations. Rogers stated that adopters of any new innovation or idea could be categorized as innovators (2.5%), early adopters (13.5%), early majority (34%), late majority (34%) and laggards (16%), based on a bell curve. Each adopter's willingness and ability to adopt an innovation would depend on their awareness, interest, evaluation, trial, and adoption. Some of the characteristics of each category of adopter include:•innovators - venturesome, educated, multiple info sources, greater propensity to take risk•early adopters - social leaders, popular, educated•early majority - deliberate, many informal social contacts•late majority - skeptical, traditional, lower socio-economic status•laggards - neighbors and friends are main info sources, fear of debt. Rogers also proposed a five stage model for the diffusion of innovation:1.Knowledge - learning about the existence and function of the innovation2.Persuasion - becoming convinced of the value of the innovation3.Decision - committing to the adoption of the innovation4.Implementation - putting it to use5.Confirmation - the ultimate acceptance (or rejection) of the innovation
(from: 22