Chapter 11: Introduction to Environment

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

Macro Social Environment

• Indirect social interactions between large groups of people such as:– culture

– sub-culture

– social class

• Useful for market segmentation

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.

Flows of Influence in Social Environment

Culture

Subculture

Social Class

Family Media

Individual consumers

Reference GroupsOrganizations

Physical Environment

• Spatial– products, brands, ads, cities, stores etc.

• Non-Spatial– intangibles such as temperature, humidity, noise, time

etc.

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”.

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.

Types of Situations

• Information Acquisition– how consumers engage in info contact

– how you communicate info to consumers

• Shopping - store/product contact• Purchasing• Consumption• Disposition

Chapter 12: Cultural and Cross-Cultural Influences

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

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.

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

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

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.

A Model of the Cultural Process

Cultural meaning in social andphysical environment

Cultural meaning in products and servicesCultural meaning in products and services

Consumption meanings generated by consumersConsumption meanings generated by consumers

Marketingstrategies

Fashionsystems

Otherinstitutions

Consumption Rituals

Social interactions Intentional actions

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)

Products Acquire Cultural Meanings

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

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