GBBA 2024-2025 External Factors: Consumer Behavior PDF

3. EXTERNAL factors Consumer Behavior GBBA 2024 - 2025 External factors of influence in decision making process Situational factors (seen last time) Cultures Social influence Culture The world is a village Globalization = companies have access to international markets. The Cultural compone...

3. EXTERNAL factors Consumer Behavior GBBA 2024 - 2025 External factors of influence in decision making process Situational factors (seen last time) Cultures Social influence Culture The world is a village Globalization = companies have access to international markets. The Cultural component is crucial Examples of mistakes made on international markets: American leader in the golf ball market wanted to market its product in boxes of 4 in Japan. In Japan 4 is bad luck and a sign of death. + the Japanese are very superstitious BREAKFAST across cultures Guess the country for this breakfast Guess the country for this breakfast Guess the country for this breakfast Guess the country for this breakfast Guess the country for this breakfast Guess the country for this breakfast Guess the country for this breakfast Guess the country for this breakfast Guess the country for this breakfast Dutch rumanian Indian Italian Japanese Chilean American French Brands in international context  Danish ice-cream? In the 1960s, two ice cream makers from New York, Reuben and Rose Mattus created Häagen-Dazs. These two Polish immigrants want to ride on the good reputation of Danish products in the US and play on the qualitative image of European craftsmanship. They invent a name "Häagen-Dazs" which sounds Danish... But this word does not exist anywhere in the world. And "ä" is not even a letter in the Danish alphabet!  Cultural influence on ADVERTISING Guess the country https://www.youtube.com/watch?v=5f3K8AHUI  Cultural influence on ADVERTISING Guess the country https://www.youtube.com/watch?v=m3FJpr1VS68  Cultural influence on ADVERTISING ELEMENTS CHINA: work together, community (people pushing together, people forming the shape of bottle), physical differences (Asian appearance), importance of history and ancestors, Great Wall, RED (carpet, but red is color of communist party) USA, importance of gifts, Christmas lights, shopping, red trucks, Victorian house FRANCE: pleasure, enjoy life, passion BRASIL: images, football, social differences: Favelas AUSTRALIA: VALUES: mastership, optimism, easy-going, informal, beach - surfers  Cultural influence on ADVERTISING Guess the country  https://www.youtube.com/watch?v=ZXi6Bhjz1po Cultural influence on ADVERTISING Guess the country https://www.youtube.com/watch?v=ZXi6Bhjz1po  Cultural influence on ADVERTISING Guess the country https://www.youtube.com/watch?v=nlpZRK2Yfd0  What is Culture? Culture is the accumulation of shared meanings, rituals, norms, habits, and traditions among the members of a society Culture is a society’s personality It is inherited It is shared It is passed on to next generations  What is Culture? Culture includes abstract ideas such as values and ethics and material objects like cars and clothing WE LEARN HOW TO BEHAVE WE LEARN WHAT IS WRIGHT AND WHAT IS WRONG WE LEARN WHAT IS GOOD AND WHAT IS BAD We typically notice cultural effects the most when we are immersed in a different one and feel the effects of culture shock.  Values Value is a belief that some condition is preferable to its opposite (e.g. freedom is better than slavery). Each culture has a general set of values that uniquely define the culture, being its core values. Often people are immersed in these core values and tend to align with the culture’s unique set of rankings of the relative importance of universal values (i.e., value system) Germany USA Norway France Denmark Russia Japan Hofstede Dimensions of National Culture  Power distance is an Hofstede Dimensions of National Culture imperative cultural dimension that evaluates the degree of Indulgence versus restraint is the acceptance for the distribution extent to which a society allows of power, authority, and relatively free gratification of basic wealth in a society and natural human drives related to enjoying life and having fun. A In societies with low PDI, culture high on restraint suppresses corruption is rare and hence red- gratification of needs and regulates tapism is also low which is a it by means of strict social norms. positive sign for businesses as they would not have to oblige Masculinity is the corrupt practices to thrive distribution of roles red-tapism=to much regulations between the genders or rigid conformity to rues, to Uncertainty avoidance is a much bureaucracy society’s tolerance for uncertainty and ambiguity Individualism- collectivism is the degree to which individuals are Long-term orientation refers to values associated with Long- integrated into groups. How well connected they are (support) Term Orientation are thrift and perseverance. Values INDIVIDUALISM: HIGH TASK PRIORITY, INDIVIDUAL INTEREST, HIGHER associated with Short-Term Orientation are respect for ACCOUNTABILITY, METITOCRACY (NOT NEPOTISM) tradition, fulfilling social obligations, personal steadiness and stability. IN CLASS INDIVIDUAL WORK - Search for France Read, understand and be ready to discuss the different dimensions - ADD another country - CHOOSE one dimension - Explain why the 2 countries are different (similar) on this dimension UPLOAD IND WORK on BS! Hofstede Dimensions of National Culture https://www.hofstede-insights.com/country-comparison/ Social groups Do we need them?  Groups PGE L3 – Comportement du consommateur 2019-2020 The power of groups https://www.youtube.com/watch?v=0IJCXXTMrv8&t=3s  Social Conformity = a type of social influence that results in a change of behavior or belief in order to fit in with a group Study (Solomon Asch 1951) to prove social conformity: people just follow the group even if they know the group is wrong. WHY? Most of them said that they had just gone along with the group in fear of being ridiculed Some of them even said they believed that the group's answer was correct and that they must have been missing something Normative conformity is conformity that occurs because of the desire to be liked and accepted Informational conformity is conformity that occurs because of the desire to be correct Le pouvoir des groupes https://www.youtube.com/watch?v=o8BkzvP19v4&t=3s  Social Norms Customs, traditions, rules, values, fashions, and all other criteria of conduct that are standardized as a consequence of contact with individuals DESCRIPTIVE NORMS: information about what others do (“most people say ‘hello’ when they meet others they know”) INJUNCTIVE NORMS: what others approve or disapprove of (“people would expect you to be polite with the others”)  Is social exclusion bad for us? Studies show that SOCIAL EXCLUSION leads to: Aggressive behavior Low cooperation Self-destructive behaviors Eat unhealthy food Involve in riskier decisions Lower self-control Dishonest (due to feelings of entitlement) Consumption of products that would give the impression of affiliation with others even at financial, physical or ethical costs: More willing to purchase products with university logo More willing to eat chicken feet (if knowing others did, too) Higher willingness to use cocaine (if it helped acceptance by a group)  For more information on social exclusion https://www.youtube.com/watch?v=goK2rivxTqQ&t=65s  We need Groups Why do we conform? Cultural pressure Fear of deviance Commitment Group unanimity Interpersonal influence Environmental cues Why do we tend to conform to the pressure of groups? BECAUSE = refers Culture meaning how different cultures encourage conformity to a greater or lesser extent. For instance, the Japanese society emphasizes collective well-being and group loyalty over individuals’ needs.  We need Groups People in larger groups have fewer constraints on behavior. Deindividuation occurs when our individual identities are submerged in the group. In other words, we don’t stay out alone so we may behave differently. At a costume party, we may act wilder than we would in our everyday lives. Individuals may believe that the group will apply sanctions to punish nonconforming behaviors. This is the fear of defiance. According to the principle of least interest, the person who is least committed to staying in a relationship has the most power because that party doesn’t care as much if the other person rejects him. As groups gain in power, compliance increases. The trait, susceptibility to interpersonal influence, refers to an individual’s need to have others think highly of him or her.  Positive Versus Negative Reference Groups Avoidance groups: motivation to distance oneself from other people/groups Reference groups can affect our decisions both positively and negatively Antibrand communities: coalesce around a celebrity, store, or brand—but in this case they’re united by their disdain for it Dunkin’ Donuts, Rachael Ray, and Starbucks also.  Brand Communities and Consumer Tribes A group of consumers who share a set of social relationships based upon usage or interest in a product Consumer tribes share emotions, moral beliefs, styles of life, and affiliated product Brandfests celebrated by community Can social influence be GOOD/BAD for us? https://www.youtube.com/watch?v=kO1kgl0p-Hw&t=1s In class team work Make sure to have the audio recordings of BOTH interviews! Prepare a transcription of the recordings ‒ if you know how to do this automatically using the WORD plug in on Microsoft website (use the emlyon access to Microsoft)  How to use the transcription Word Plug Go to https://www.office.com CONNECT with emlyon EMAIL  For next time Be ready to start Preparing the final presentation All requirements on BS (check grading rubric)