CULTURE AND CONSUMPTION

CULTURE AND CONSUMPTION

In a global economy, it is crucial for business organizations to understand the impact of culture on consumer behaviour. Cultural influence manifests itself in thinking patterns, values, beliefs, and decision- making (Hinner 2007, p. 3). Understanding of culture is an important element for those businesses that wish to remain competitive, profitable, and sustainable. It is crucial for businesses to understand consumer behaviour, in order to come up with products that suit the needs of the targeted markets. Culture influences consumer behaviour, and this is a crucial aspect to consider in strategic positioning of a business. The culture of people determines their likes and dislikes, and what is acceptable at a certain culture may be a taboo at the other culture. Hence, a business cannot afford to downplay the effects of culture on consumer behaviour. An understanding of culture and consumer behaviour helps in informing business operators on production and marketing strategies, in order to achieve profitability, competitiveness, and sustainability. This paper explores the culture, consumer behaviour, marketing, and the effects that they have on businesses.

Culture can be defined as the total summation of customs, beliefs, and values, which serve to direct consumer behaviour of people in a particular society (Tyagi, & Kumar 2004, P. 68). The value and beliefs culture components refer to the accrued priorities and feelings that individual possess on products. The nature of culture is based on the facts that culture is an acquired quality, is communicative, idealistic, and dynamic, fulfils some needs, and is social (Tyagi, & Kumar 2004, P. 69). Consumer behaviour is dynamic and shifts with political, economical, technological, and other changes that are inevitable in the contemporary world. Business operators should adapt to various change demands, in order to meet the needs of the customers. Customers expect constant supply of goods and services that meet their needs, are fairly priced, and of high quality.

Mooij defines consumer behaviour, as the processes involved while people choose, use, purchase, and dispose ideas, products, services, or experiences, effort to satisfy their human needs (Mooij 2011, p. 20). In order to understand consumer behavior, it is important to integrate culture in the different aspects of consumer behavior theory. The theories of consumer behavior are derived within cultures. This means studying the cultural variations of different groups. Marketers should integrate culture in different constituents of human behavior, in order to understand the cultural influences on consumer behavior.

Ethical and legal considerations influence the consumer decisions to buy a product. Business operators that wish to enhance the success of their businesses must show socio corporate responsibility towards the public, build, and maintain positive relationships with the stakeholders. This builds trust and loyalty, which enhances a brand name of the business. According to Hodgson, companies should concentrate of meeting human needs, instead of concentrating on manipulating human desires and wants through marketing (Hodgson 2003, p. 1). He further proposes that the most strong forms of persuasion do not arise from marketing efforts, but from cultural values such as history and social institutions. These are the hidden sources of persuasion, which bear a significant influence on customer preferences (Hodgson 2003, p. 2).

Business operators should understand that marketing efforts would not be effective without considering the hidden persuaders that determine human preferences. Marketing efforts seek to create and reinforce cultural values and beliefs (Tyagi, & Kumar 2004, P. 71). Chicago economist Gary Becker and George Stigler argue that marketing efforts such as advertising are simply meant to provide information, and cannot be the primary source of changing preferences (Hodgson 2003, p.2).  According to Becker’s Accounting for Tastes, model human capital social capital, and cultural variables are useful components in determination of products and services for a particular market. Social cultural changes attract behavioural response from the consumers. Hence, cultural considerations emerge as a crucial element of consideration, in order to satisfy the consumers.

Advertising is a form of social interaction, by the fact that its main aim is to provide information about the existence of products. Institutions have different cultures, and embedded regulations that define social interactions. Examples of institutions include money, language, other organisations, law, and acceptable norms in each culture. Institutions have the potential to restrain and activate behaviour (Hodgson 2003, p. 7). People follow the rules repeatedly, and this forms a habit, which provides normative authority, power, and durability. Institutions work due to the common rules is deeply entrenched in the behaviour and thoughts of the people.

Habits are significant in challenging the threats of competition in a market. Established businesses that have good reputation, brand loyalty, and effective relationships with the stakeholders are at an advantage over other competitors and new market entrants. It is challenging for new entrants and other brands to convince customers who are used to, or who have formed a habit of using the products from a specific provider, to buy from them. Hence, it is important to consider other established competitors and the relationship with consumers before launching a product, especially in a penetrated market.

Habits emerge as hidden persuaders, and are basis of all behaviour and thought (Hodgson 2003, p.10). Habits help in defining dispositions and preferences.  Cultures influence human behaviour and preferences, and business operators should ensure that they consider the culture of a certain target market location, before embarking in marketing strategies (Hodgson 2003, p. 20). External and internal factors contribute to customer satisfaction (Siddiqui 2012, p. 4135). External factors include factors such as service providers, level of service, and competition, while internal factors include values and culture of the customers. It is crucial to engage the consumer attention through any possible means, through respecting customers, creativity, and establishing emotional experience for the customers, in order to attract and retain them. In the upcoming trends, some companies have created consumer communities, whereby customers share their experiences on brands and products. These virtual communities can provide useful information on consumer behaviour and psychology (Saxena 2009, p. 7).

According to Saxena, price and the value of the offer, emerge as some of the elements that influence consumer decision (Saxena 2009, p. 8). Business operators must continuously find strategies of creating value and retaining the competitive advantage. Saxena further argues that marketing should be treated as a form of customer orientation, towards fulfillment of customer needs (Saxena 2009, p9). Hence, business operators should seek to understand and satisfy consumer needs since this is the basis of consumer interest in a product. Many businesses fail due to their failure of understanding and responding to the needs of the customer. Cultural values define the needs and preferences of customers, and managers must understand and respond appropriately, depending on the cultural environment of the target market (Hoyer 2010, p. 299). 

For instance, in a country like China, business operators should be wary of adopting simplistic perspectives when approaching the consumers. The Chinese fundamental values are based on high power distance, collectivism, and long- term orientation (Hyunjoo & Jha 2011, p. 45). In China traditional values are still embedded in consumer behaviour, and buying decisions. Chinese consumers are different from the Western consumers. Consumers tend to prefer brands with a strong reputation, and this favours established companies with strong brand names (Hyunjoo & Jha 2011, p. 48).

According to Dougherty, consumer attitudes, self- concept, and values, are a source of significant influence on their buying behaviour (Dougherty 2007, p. 39). These influences are developed by the society, where a consumer lives, and are known as the social characteristics of understanding consumer behaviour.  The culture, social class and religion of the consumer affect their buying decisions and these factors bear an influence on the consumer behaviour (Dougherty 2007, p. 39). For instance, culture affects marketing efforts since it affects consumer choices. Hence, culture plays a major role in determining marketing efforts. Culture forms a fundamental cause of people’s behaviour and wants, which has a great influence on buying behaviour. For instance, in a food company that operates in a Muslim culture, some foods such as pork are not acceptable and they should refrain from selling such products, otherwise the company will fail. However, cultural changes occur gradually, and this may lead to a shift in the market focus (Dougherty 2007, p. 40).

In the society, social classes sometimes divide people, which constitutes of lower, middle, and upper class. Various classes have different needs and marketers should consider the influences of social class on consumer behaviour (Blythe 2008, p. 184). Social class has an influence on consumer lifestyles and this provides marketers with hindsight on the type of products that suit a specific social class. Some specific cultural dimensions make it a significant force in human behaviour regulation (Tyagi & Kumar 2004, p. 68).  Factors such as religion, language, technology, knowledge, art, work patterns, music, products, food customs, and law, play a significant role in understanding culture and consumer behaviour. Culture is a society personality; hence, it is complex and not easily defined.

Culture is dynamic since the needs of people continue evolving, and must be fulfilled. In order to make an existing or new product more effective, business operators must carefully assess the socio- cultural environment. Some of the factors that can cause cultural changes in a society include resource shortages, technology, wars, population shifts, changing values, and influence from other cultures.  Marketing efforts seek to create and reinforce cultural values and beliefs (Tyagi & Kumar 2004, P. 76). Constant monitoring of the cultural changes can be a source of increased corporate profitability, since it can reveal new opportunities for an organization. Marketers should constantly research on cultural shifts in order to attain a competitive edge over their competitors.

According to Mooij, much of the consumer behavior is based on the long- time habits (Mooij 2011, p. 7).  The economic paradigm proposes that consumers will maximize their utility, and prefer high quality products, fairly- priced products, and added value brands. This paradigm is similar to the traditional scarcity societies, whereby people made their own decisions on buying. According to Mooij, culture emerges as a new paradigm, which is becoming an increasingly significant variable in explaining brand preferences and consumption differences (Mooij 2011, p. 8).  The age of the product category, is correlated with cultural influence. This is evident in consumption of food products, where culture persistently binds consumption. Cultural values emerge as the major variable that explains the variations in consumer behavior.

Marketing research can help organizations to gather information on cultural values and beliefs of a target market, in order to develop products that suit the needs of the consumer and avoid errors that would lead to losses. Market research on cultural values can be a source of competitive advantage for a business, since it reveals opportunities that arise due to cultural shifts. Different research methods such as qualitative and quantitive analysis helps in understanding the effects of changes in the various elements of marketing mix, which allows marketers to make predictions on consumer behavior. In a global world, marketers must understand the various factors that cause cultural changes and address them appropriately, in order to remain competitive in an evolving business world. Market research will enable marketers to remain proactive and develop products for an evolving market, especially due to the effects of globalization. Other factors that influence culture must be taken into consideration, in order to develop an effective marketing strategy that will enhance profitability, competitiveness, and sustainability, without compromising the essence of human needs.

In conclusion, marketers must understand the contributions of culture to consumer behaviour. Culture is a crucial determinant of consumer behaviour and should not be ignored. Culture reveals the needs of the people, which help an organization to develop products that suit and satisfy the needs of consumers. However, culture is dynamic and such changes are inevitable, which calls for marketers to become more aggressive in their cultural changes research, and design products that fit the evolving needs of the consumers. Human needs and culture should form the basis of any marketing initiatives, since they form the basis of consumer behaviour.

References

Blythe, J. 2008, ‘Consumer behavior’, London: Thomson Learning. P. 184 

C. L. Tyagi, Arun Kumar 2004, ‘Consumer Behavior’, Atlantic Publishers. P. 68-70.

Dougherty, D. 2007, ‘Consumer behaviour’, Cape Town: Pearson Education South Africa. P. 39

Hinner, M. 2007, ‘The influence of culture in the world of business’, Frankfurt am  Main New      York: Peter Lang. P. 3

Hodgson, G. M. (2003, March 27). The Hidden Persuaders: Institutions and Individuals in           Economic Theory. Pp 1- 20

Hoyer, W. 2010, ‘Consumer behaviour’, Australia Mason, OH: South-Western Cengage    Learning Pp. 299- 385

Hyunjoo, O, & Jha, I 2011, 'Cultural Values and Changing Dynamics Impact Chinese Consumer Behavior', Retail Property Insights, 18, 3, pp. 45-50, Business Source Complete,        EBSCOhost, viewed 12 March 2013.

Mooij, M. 2011, ‘Consumer behaviour and culture: consequences for global marketing and            advertising’, Thousand Oaks: SAGE Publications. P. 7

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Siddiqui, K. 2012, March 21, ‘Personality influences on customer satisfaction’, Home       :::Academic Journals.  P. 4135