Culture, Subculture & CSR

Culture vs. Subculture

• Culture includes of shared beliefs, values, customs, and behaviors which shapes consumer preferences and buying behavior
• Subculture is a smaller group within a culture with distinct values or behaviors, like skaters, hipsters, or ethnic groups

Acculturation, Enculturation, Reverse Acculturation

• Acculturation means learning and adopting a new culture, often when moving to a new country
• Enculturation means learning one's own culture from birth
• Reverse Acculturation occurs when a dominant culture adopts elements from a minority or subculture, for example, American businesses incorporating Asian tea culture

Corporate Social Responsibility (CSR) Pyramid

• Developed by Archie Carroll, it describes a company's social responsibilities
• Economic: Be profitable as the foundation of all other responsibilities
• Legal: Adhere to the laws and regulations
• Ethical: Do what is morally right, even beyond legal requirements
• Philanthropic: Contribute to society through donations, charity, and social programs

Sustainability

• Companies adopt sustainable practices to balance economic growth with environmental and social well-being, ensuring long-term viability

Foundation for Conscious Marketing

• It is a marketing approach integrating ethics, social responsibility, and stakeholder well-being
• The aim is long-term positive impact rather than short-term profits

Ethical Development Levels

• Pre-conventional: Ethics are self-centered, such as avoiding punishment or the seeking of rewards
• Conventional: Ethics are based on social approval and norms, such as following rules
• Post-conventional: Ethics are guided by personal moral principles, even against norms, for example, whistleblowing

Ethical Issues in Marketing

• Issues include deceptive advertising, false claims, greenwashing (misleading environmental claims), price fixing, and exploiting vulnerable consumers

Global Market Standardization

• One Product, One Message: Selling the same product and marketing message worldwide with minor adjustments (e.g., Coca-Cola using the same branding globally but adapting flavors regionally)

Entering the Global Marketplace

• Licensing: A company allows another to use its brand, patents, or trademarks for fees (e.g., Adidas licensing ASU's logo)
• Contract Manufacturing: A production is outsourced to a third party, often in another country, in order to lower costs (e.g., Apple's iPhones)

5-Step Decision-Making Process

• Present State: The consumer's current situation
• Ideal State: The desired situation, or where they want to be
• The gap between these states drives consumer decisions

Information Search

• Consumers gather information based on urgency, importance, prior knowledge, risk level, in addition to the availability of alternatives

Evaluate Alternatives

• Awareness Set: All known options
• Evoked Set: Options that are being considered during decision-making
• Consideration Set: The final choices before purchase

Decision-Making Models

• Compensatory: A trade-off model where a strong attribute can make up for a weak one (e.g., buying an expensive phone because of features)
• Non-compensatory: No trade-offs are allowed (e.g., rejecting all phones above $500)
• Multi-Attribute Model: Consumers assign weights to product features and choose based on overall score
• Conjunctive Model: A product must meet all minimum cutoff criteria
• Lexicographic Model: Consumers pick based on the most important attribute first (e.g., choosing the fastest laptop)

Post-Purchase Evaluation

• Cognitive Dissonance: Buyer's remorse or uncertainty after purchase
• Resolved: Justifying the purchase with positive reinforcement
• Unresolved: Returning or regretting the purchase

Factors Influencing Purchase

• Time pressure, store atmosphere, social surroundings, and purchase urgency impact decisions

Social Factors

• Reference Groups:
  • Primary: Close, frequent interaction (family, friends)
  • Secondary: Less frequent interaction (colleagues, clubs)
  • Aspirational: Groups people aspire to join (celebrities, professionals)
  • Non-aspirational: Groups people want to avoid association with
• Opinion Leaders: Individuals who influence others' purchase decisions, such as celebrities and social media influencers

Psychological Factors

• Selective Exposure: Consumers notice only relevant information
• Selective Distortion: Consumers interpret information to fit their beliefs
• Selective Retention: Consumers remember only what aligns with their values

Lifestyle vs. Personality

• Lifestyle: A person's way of living through activities, interests, and values (e.g., health-conscious consumers)
• Personality: Enduring traits that influence behavior, such as risk-takers who may prefer extreme sports

Image-Congruence Hypothesis

• Consumers prefer brands that reflect their self-image (e.g., eco-conscious consumers buy Tesla)

Beliefs & Attitudes

• Theory of Reasoned Action (TORA): Consumers' behaviors are influenced by their beliefs and social norms

Marketing Research

• Descriptive: Identifies trends and patterns (e.g., market share analysis)
• Diagnostic: Explains reasons behind consumer behavior (e.g., why sales dropped)
• Exploratory: Investigates unknown factors (e.g., focus groups for new product ideas)

Consumer Insight

• An in-depth understanding of what truly drives consumer behavior

Reliability, Validity, Representativeness

• Reliability: Consistency in results
• Validity: Measures what it intends to measure
• Representativeness: The sample accurately reflects the target population

Primary vs. Secondary Data

• Primary Data: Collected firsthand (e.g., surveys, and experiments)
• Secondary Data: Already existing (e.g., government reports, and industry studies)

Ethnographic Research

• Observing consumers in their natural environment to gain insights into real-life behaviors

Measurement Scales

• Ordinal: Rank-based without equal intervals (e.g., rating restaurants from best to worst)
• Ratio: Has a true zero and equal intervals (e.g., income, and weight)

Types of Questions

• Likert Scale: Ranges from strongly agree to strongly disagree
• Semantic Differential: Rates on a bipolar scale, like cheap to expensive

Sampling Methods

• Cluster Sampling: Random groups are selected
• Stratified Sampling: Groups are divided based on characteristics
• Quota Sampling: Ensures a certain number of respondents
• Snowball Sampling: Participants recruit others
• Judgment Sampling: The researcher selects participants

BDI & CDI

• BDI: Measures brand performance in a specific market
• CDI: Measures category performance in a specific market