CH-7-9 Attitudes and Attitude Change – CB Consumer Behaviour Canadian : Chapter Notes

This Document Contains Chapters 7 to 9 CHAPTER 7 ATTITUDES AND ATTITUDE CHANGE WHAT DO YOU THINK? POLLING QUESTION It’s pretty hard to change my attitude about products that I dislike. Strongly disagree 1 2 3 4 5 6 7 Strongly agree Have students access www.icancb.com to answer the polling questions for each chapter of CB. Ask them to take the online poll to see how their answers compare with those of other students taking consumer behaviour courses across the country. Then turn to the last page of the chapter to find the What Others Have Thought box feature. This graph is a snapshot of how other consumer behaviour students have answered this polling question thus far. LEARNING OUTCOMES After studying this chapter, the student should be able to: LO1 Define attitudes and describe attitude components. LO2 Describe the functions of attitudes. LO3 Understand how the hierarchy of effects concept applies to attitude theory. LO4 Comprehend the major consumer attitude models. LO5 Describe attitude change theories and their role in persuasion. LO6 Understand how message and source effects influence persuasion. SUGGESTED LECTURE OPENER Consumers’ attitudes and beliefs can play a major role in their buying behaviours. Among Millennials, one of the attitudes that seems to be undergoing a dramatic shift may have farreaching implications: Gen Y has fallen out of love with the car. “Baby Boomers did everything and went everywhere in cars. Not so the Gen X and Gen Y crowds. They would rather spend their time on Facebook than fight the freeway traffic to see a buddy.” Significant drops (up to 15 percentage points) in teens and young adults holding driver’s licences and corresponding increases in public transit usage (up to 40%) have been documented in Canada, Australia, the U.S., Europe, and Japan. “The Japanese call it demobilization. Cars used to be a status symbol. Now, they’re becoming unaffordable burdens.” Car makers are attempting to keep young people interested by creating smaller, cheaper, highly fuel-efficient cars—“rolling iPads”—while urban planners and retailers must consider the implications for automobile-centric suburban developments and mega-malls at the same time that cash-strapped cities face the prospect of attempting to improve public transit to meet the growing demand. [Source: Eric Reguly, “Is the Car Dead?” The Globe and Mail, August 30, 2012, www.theglobeandmail.com.] KEY CONCEPTS WITH POWERPOINT® SLIDES Slide 1 Slide 2 LO1. Define attitudes and describe attitude components. Attitudes and Attitude Components Slide 3 Attitudes are relatively enduring overall evaluations of objects, products, services, issues, or people. It is therefore not surprising that the attitude concept is one of the most researched topics in the entire field of consumer research. Slide 4 Components of Attitude Attitudes possess three important components, as evidenced in the ABC approach to attitudes: 1. Affect—“I really like my iPad.” 2. Behaviour—“I always buy Apple products.” 3. Cognitions (or beliefs)—“My iPad helps me to study.” Slide 5 What can I do in class? Q: Ask students to provide another example besides the iPad to illustrate the ABC concept of attitudes. A: Answers will vary. It might be easier for students to use their favourite products such as cellphones, makeup, and brands of clothing. LO2. Describe the functions of attitudes. Functions of Attitudes Slide 6 According to the functional theory of attitudes, attitudes perform four functions. The four types of functions are summarized in Exhibit 7.1. 1. Utilitarian—Based on the concept of reward and punishment. 2. Knowledge—Allows consumers to simplify their decision-making processes. 3. Value-expressive—Found in a number of consumer settings and enables consumers to express their core values, self-concept, and beliefs to others. 4. Ego-defensive—Works as a defence mechanism for consumers. There are several ways in which this function works. First, the ego-defensive function enables consumers to protect themselves from information that may be threatening. Another example is when consumers develop positive attitudes toward products that enhance their self-image. Slide 7 What can I do in class? Have students provide examples of each of the four functions of attitudes. Exhibit 7.1 is a source of examples, but push students to come up with new examples while working in pairs. LO3. Understand how the hierarchy of effects concept applies to attitude theory. Hierarchy of Effects Slide 8 The attitude approach that suggests that affect, behaviour, and cognitions form in a sequential order is known as the hierarchy of effects approach. They may form in one of the following four levels or “hierarchies.” These hierarchies are presented in Exhibit 7.2. 1. High-Involvement Hierarchy—This “standard learning” hierarchy of effects occurs when a consumer faces a high-involvement decision, such as purchasing a new gaming system like Wii or Xbox. 2. Low-Involvement Hierarchy—Many purchases can be considered routine, even boring. Popular examples include items found on a grocery list, such as paper towels. 3. Experiential Hierarchy—Consumers purchase products or perform behaviours simply because it “feels good” or “feels right.” For example, when a waiter brings around the dessert tray, many people are tempted to purchase the item on impulse. 4. Behavioural Influence Hierarchy—This hierarchy suggests that consumer behaviour can occur without either beliefs or affect being strongly formed beforehand. An example is that people are influenced to relax at a restaurant by listening to the soft, slow music playing. Restaurant managers hope it entices them to buy more drinks. Slide 9 What can I do in class? Have students pay attention to the music playing in their favourite store or restaurant. Do they usually hear it? What does it influence them to do? The right choice of music can be a critical factor in retail success. LO4. Comprehend the major consumer attitude models. Consumer Attitude Models Slide 10 Attitude-Toward-the-Object Model In this section some of the major approaches to measuring consumer attitudes are presented, beginning with a well-known approach advanced by Martin Fishbein and Icek Azjen named the attitude-toward-the-object (ATO) model. This model proposes that three key elements must be assessed to understand and predict a consumer’s attitude. 1. Beliefs—Consumers have beliefs about the attributes or features that a product or choice possesses. 2. Strength of the belief—How strongly does a person feel that a certain brand does indeed have the desired feature? 3. Evaluation of the attribute in question—These elements are combined to form the overall attitude toward the object (referred to as “Ao” or “attitude toward the object”). Slide 11 Using the ATO Approach To understand this model, first consider how the various elements are measured. To begin, note that belief ratings can be measured on a 10-point scale, such as the following: How likely is it that the Sony television will give you a clear picture? 1 2 3 4 5 6 7 8 9 10 Extremely unlikely Extremely likely An example may help to clarify the use of this formula. Think of the situation that Brooke is facing concerning the selection of a fitness centre. How could you predict her attitude? This information is presented in Exhibit 7.3. Slide 12 What can I do in class? Q: Have students think about a health club that they want to join, but in this scenario they are the marketer for the club. How do members of their target segment feel about the amenities offered in health clubs? How do they feel about circuit training? How do they feel about the variety of class offerings? A: Answers will vary. If managers were to discover that the target segment does not realize the degree of variety offered in the club, this information would be something to emphasize in advertising campaigns. The focus of this exercise is to bring the discussion to a close about the ATO approach. The ATO approach is known as a compensatory model. With compensatory models, attitudes are formed holistically across a number of attributes, with poor ratings on one attribute being compensated for by higher ratings on another attribute. Implications of the ATO Approach Information obtained from this model has important marketing implications. First, note that attitude research is most often performed on entire market segments rather than on individuals. Overall, the attitude-toward-the-object model has value from both an academic and practical viewpoint. Do Attitudes Always Predict Behaviour? Just because a consumer has a positive attitude toward a product does not mean that this consumer will always purchase the product. Attitude-behaviour consistency refers to the extent to which a strong relationship exists between attitudes and actual behaviour. Because attitudes don’t always predict behaviour, other approaches have been developed to improve upon the ATO approach, such as the behavioural intentions model. Behavioural Intentions Model The behavioural intentions model, sometimes referred to as the theory of reasoned action, has been offered as an improvement over the attitude-toward-the-object model. This model differs from the ATO model in a number of important ways: 1. Rather than focusing explicitly on attitudes, the model focuses on intentions to act in some way. 2. The model adds a component that assesses the consumer’s perceptions of what other people think they should do. 3. The model explicitly focuses on the consumer’s attitude toward the behaviour of buying rather than the attitude toward the object. The aspects of the behavioural intentions model are presented in Exhibit 7.4. Slide 13 Factors That Weaken Attitude–Behaviour Relationship Although attitude models are very popular in consumer research, researchers note that a number of factors can detract from the accuracy of this approach. Strong environmental pressures can also keep consumers from performing intended behaviours. For example, when consumers feel rushed, decisions are often made in haste. Finally, attitude–behaviour models tend to not perform very well in impulse-buying situations. 1. Time—As the length of time between attitude measurement and overt behaviour grows, the predictive ability of attitudinal models weakens. 2. Specificity of attitude measured—Has an impact on accuracy. 3. Environment—Strong environmental pressures can keep consumers from performing intended behaviours. 4. Impulse situations—Attitude–behaviour models tend to not perform very well in impulse-buying situations. Slide 14 Alternative Approaches to Attitude The theory of planned action expands upon the behavioural intentions model by including a perceived control component. Slide 15 Expanding the Attitude Object Research has shown that there is generally a positive relationship between a consumer’s attitude toward an advertisement and their attitude toward a particular product. Another area of growing research interest has also focused on a consumer’s attitude toward the company. The study of consumer beliefs toward companies (typically referred to as corporate associations) is therefore gaining considerable attention from consumer researchers. A specific area of interest is the corporate social responsibility of companies. What can I do in class? Have students compile a list of companies that may evoke strong corporate associations. Examples might include Mountain Equipment Co-op, lululemon, and Google. Encourage students to discuss the impact of these associations on consumer decisions. Attitude Tracking Attitude tracking refers to the extent to which a company actively monitors customers’ attitudes over time. While attitudes are relatively enduring evaluations of objects, products, services, issues, or people, these attitudes should be monitored over time to gauge changes that may occur. LO5. Describe attitude change theories and their role in persuasion. Attitude Change Theories and Persuasion Slide 16 An important issue in the study of consumer behaviour is how attitudes are changed. The term persuasion refers to specific attempts to change attitudes. There are many different persuasive techniques, and the following discussion presents the theoretical mechanisms through which persuasion may occur. Slide 17 Attitude-Toward-the-Object Approach To change attitudes according to this approach, marketers can attempt to change beliefs, create new beliefs about product features, or change evaluations of product attributes. • Changing Beliefs—As discussed in our fitness centre example, marketers may attempt to change consumers’ beliefs (e.g., by advertising the breadth of classes offered). • Adding Beliefs about New Attributes—Another strategy for changing attitudes under the ATO approach is adding a salient attribute to the product or service, which may require a physical change to the product itself (e.g., add and promote babysitting). • Changing Evaluations—The marketer would try to convince consumers that an attribute is not as positive (or negative) as they may think. For example, a fitness centre may attempt to convince consumers that location is not always a positive thing. Slide 18 Behavioural Influence Approach Another strategy commonly applied by marketers is to directly change behaviours without first attempting to change either beliefs or attitudes. For example, changing a retail store’s design or atmospherics can have a direct influence on behaviour. The Canadian government wanted to change the way residents thought about the census and make sure people responded to the survey, so it created a promotional campaign aimed at fostering more positive consumer attitudes toward the census as an important first step in collecting the information. Slide 19 Changing Schema-Based Affect From an attitude perspective, this means that a schema contains affective and/or emotional meanings. If the affect found in a schema can be changed, then the attitude toward a brand or product will change as well. Slide 20 The Elaboration Likelihood Model The elaboration likelihood model (ELM) illustrates how attitudes are changed based on differing levels of consumer involvement. According to the ELM, a consumer begins to process a message as soon as it is received (see Exhibit 7.5). The Central Route If consumers find that the incoming message is particularly relevant to their situation (thus making them highly involved), then they will likely expend considerable effort in comprehending the message. Contradicting thoughts are known as counterarguments, and thoughts that support the main argument presented are known as support arguments. In the central route, the consumers rely on central cues. Central cues refer specifically to information found in the message that pertains directly to the product, its attributes, its advantages, or the consequences of its use. The Peripheral Route If consumers are not involved with a message or they lack either the motivation or the ability to process information, the peripheral route to persuasion will be followed. In this route, consumers are unlikely to develop cognitive responses to the message (either supporting arguments or counterarguments). They are instead more likely to pay attention to the attractiveness of the person delivering the message, the number of arguments presented, the expertise of the spokesperson, and the imagery or music presented along with the message. These elements of the message (that is, nonproduct-related information) are referred to as peripheral cues. A popular ad campaign for Corona beer illustrates peripheral processing. The campaign includes a series of advertisements that show a man and woman relaxing on a beach. Slide 21 Low-Involvement Processing in the Consumer Environment It is important to note that the vast majority of advertisements to which consumers are exposed are processed with low-involvement processing. Balance Theory The balance theory approach was introduced by social psychologist Fritz Heider. The basic premise of balance theory is that consumers are motivated to maintain perceived consistency in the relations found in mental systems. This approach is based on the consistency principle, which states that human beings prefer consistency among their beliefs, attitudes, and behaviours. An example is shown in Exhibit 7.6. Slide 22 Social Judgment Theory This theory proposes that consumers compare incoming information with their existing attitudes about a particular object or issue. These aspects of the theory are presented in Exhibit 7.7. Slide 23 LO6. Understand how message and source effects influence persuasion. Message and Source Effects and Persuasion Slide 24 An important part of understanding persuasion is comprehending the many ways in which communication occurs. For this reason, it is important to consider the roles of message effects and source effects in persuasion. A message effect is a term used to describe how the appeal of a message and its construction affects persuasion. Source effects refer to the characteristics of the person or character delivering a message that influence persuasion. To understand how message and source effects work, we can follow the basic communication model in Exhibit 7.8. Slide 25 A basic communication model is also referred to as a “one-to-many” approach because it illustrates how a marketer may attempt to communicate with numerous consumers. The six areas of a communication model are as follows: 1. Source—The source encodes a message and delivers the message through some medium. 2. Message—The message is the advertisement. 3. Medium—The medium could be personal (one consumer talks to another or a salesperson speaks with a customer) or impersonal (a company places an ad on television, radio, or a Web page). 4. Receiver—The consumer decodes the message and responds to it in some way. 5. Feedback—Feedback consists of the responses that the receiver sends back to the source. 6. Noise—Noise represents all of the stimuli that are present in the environment that disrupt the communication process. Slide 26 Interactive Communications Interactive communications—including the Internet, cellphones, text messaging, e-commerce, and smartphones—have radically changed the communication paradigm. Twenty-seven percent of the world’s population is using the Internet (more than 1.8 billion consumers). The interactivity that the Internet provides creates major changes for the traditional communication conceptualization. A newer conceptualization is presented in Exhibit 7.9. Slide 27 Message Appeal A number of appeals are used by advertisers to impact the persuasiveness of an advertisement. 1. Sex Appeals—Use of sexual imagery in advertisements certainly is popular in many advertising campaigns (such as the American Apparel case in Chapter 3 and the Axe case at the end of this chapter). 2. Humour Appeals—Humour attracts attention, creates a positive mood, and enhances the credibility of a source. However, the overall effectiveness of a humorous ad depends on the individual consumer. 3. Fear Appeals—Fear appeals invoke some level of fear in the target audience as a means of changing attitudes and behaviours. Popular examples include the anti-drinking-anddriving campaigns aimed at teenagers. Fear appeals appear to be effective when they: a. Introduce the severity of a threat. b. Present the probability of occurrence. c. Explain the effectiveness of a coping strategy. d. Show how easy it is to implement the desired response. Message Construction Advertisers must consider a number of issues when constructing a message. Potential questions to consider include the following: • Should an ad present a conclusion, or should the consumer be allowed to reach his own conclusion? • Should comparative ads that directly compare one brand against another be developed? • Where should important information be placed? • Should the message be straightforward and simple, or complex? Slide 28 Source Effects The source of a message also influences consumer attitudes. 1. Source Credibility—Plays an important role in advertising effectiveness. In general, credible sources tend to be more persuasive than less credible sources. 2. Source Attractiveness—Another quality that has received a great deal of attention. 3. Source Likeability—Also affects a spokesperson’s effectiveness. Likeable sources tend to be persuasive. 4. Source Meaningfulness—Refers to matching product characteristics to the dominant characteristics of a source. Slide 29 What can I do in class? Q: Have students name celebrities that would be credible, attractive, and likeable. What products should they represent? Why? What products should they avoid? A: The instructor may want to mention past celebrity blunders to spark the conversation. Examples could include Tiger Woods, LeBron James, Charlie Sheen, and Lindsay Lohan. VIDEO CLIP PowerPoint Clip from Southwest Airlines Run time 1:41 minutes Slide 30 Founded on the basic principle of simple, no-fuss flying with a high level of staff positive attitude, Southwest Airlines (SWA) remains highly rated in terms of both work culture and customer service. However, in the current economic downturn, and the particularly negative effect it has had on the commuter industry, SWA has to carefully consider the implications of its marketing and pricing efforts. While most airlines are increasing fees and cutting services in order to protect revenues, SWA has responded by keeping a one-price-per-flight-experience policy. This concept is intended to reinforce consumers’ positive attitudes toward the airline’s customer service and product delivery. Ask your students: 1. How does SWA’s approach to no-fee flying (offering the entire flight experience for one price) reinforce consumers’ positive attitudes toward the airline? Answer: While many airlines are unbundling their product and charging fees for traditionally free or included services in an effort to raise revenues, SWA’s approach of a single price—even if it is higher than previously—avoids leaving consumers with a sense of being “nickel and dimed.” 2. How does the Business Select option specifically accomplish this goal? Answer: For a higher price than the same non–Business Select flight, but without fees, consumers gain extra services they feel are important enough to pay for, such as early boarding and extra mileage points. CHAPTER 8 CONSUMER CULTURE WHAT DO YOU THINK? POLLING QUESTION Men should always pay for their date’s dinner. Strongly disagree 1 2 3 4 5 6 7 Strongly agree Have students access www.icancb.com to answer the polling questions for each chapter of CB. Ask them to take the online poll to see how their answers compare with those of other students taking consumer behaviour courses across the country. Then turn to the last page of the chapter to find the What Others Have Thought box feature. This graph is a snapshot of how other consumer behaviour students have answered this polling question thus far. LEARNING OUTCOMES After studying this chapter, the student should be able to: LO1 Understand how culture provides the true meaning of objects and activities. LO2 Use the key dimensions of core societal values to apply the concept of cultural distance. LO3 Define acculturation and enculturation. LO4 List fundamental elements of verbal and nonverbal communication. LO5 Discuss current emerging consumer markets and scan for opportunities. SUGGESTED LECTURE OPENER In order to tap into one of the hottest emerging consumer markets, Western marketers must tap into the culture of China. One question marketers must consider is whether companies should try to localize their brands in Chinese consumers’ minds, or if brands should maintain their Western messaging. The answer for now seems to be, “both.” Companies should adjust brand messages in order to gain access to the Chinese consumer culture while holding on to the positive associations that are often linked to Western products, such as quality and safety. [Source: Joel Backaler, “Inside China’s Consumer Culture,” Forbes.com, August 12, 2010, http://blogs.forbes.com.] KEY CONCEPTS WITH POWERPOINT® SLIDES Slide 1 Slide 2 LO1. Understand how culture provides the true meaning of objects and activities. Culture and Meaning Are Inseparable Slide 3 Grandé doppio latté, please! What language is this? A consumer can use this expression in more than two dozen countries and get exactly what he or she wants with no translation. The chapter opens with a Starbucks example and how a cup of coffee is translated into many cultures around the world. The key to Starbucks’ success is to understand the impact of culture. What can I do in class? Q: Ask students what they think about Starbucks’ strategy for entering the market in China. A: Answers will vary. Differences in cultures and markets can be further explored. What Is Culture? Culture embodies meaning. Consumer culture can be thought of as commonly held societal beliefs that define what is socially gratifying. Some consumers believe that providing coffee to a child is unacceptable. To other consumers, however, this behaviour is seen as normal. It is culture that shapes the value of most products. Culture is a universal phenomenon. Culture is everywhere and ultimately explains the habits and idiosyncrasies of all groups of consumers. In fact, each consumer belongs to many cultural groups. Exhibit 8.1 shows how behaviour can have multiple meanings that are each dependent on culture. Slide 4 Slide 5 Culture, Meaning, and Value Culture performs important functions for consumers that shape the value of consumer activities. These functions include the following: 1. Giving meaning to objects—Consider the degree to which culture defines the meaning of food, religious objects, and everyday items such as furniture. For instance, in Japan refrigerators are tiny by most Western standards. 2. Giving meaning to activities—Consider the role of events that are as simple as recreational activities and even personal hygiene. A daily shower is not a universally accepted norm. 3. Facilitating communication—The shared meaning of things facilitates communication. When strangers meet, culture indicates whether a handshake, hug, or kiss is most appropriate. Things as simple as making eye contact can take on dramatically different meanings from one culture to another. Without culture, consumers would have little guidance as to the appropriate actions in many common consumer situations. Slide 6 Cultural Norms Cultural norms refer to rules that specify the appropriate behaviour in a given situation within a specific culture. Most, but not all, cultural norms are unwritten and are simply understood by members of a cultural group. As an example, a consumer in Korea is not expected to pour a drink for himself when out in a bar or restaurant with friends or family. The cultural norm is that one pours a drink for friends and family while waiting for someone else to pour a drink for you. In this way, the consumer has performed a socially rewarding (valuable) act consistent with the norms of that society. Cultural Sanctions Cultural sanctions refer to the penalties associated with performing a nongratifying or culturally inconsistent behaviour. Cultural sanctions are often relatively innocuous. An extreme example of a cultural sanction is physically or socially harming a family member for fraternizing beyond one’s cultural group. Slide 7 Popular Culture The popular culture captures cultural trends and also shapes norms and sanctions within society. Today, pop icons such as Lady Gaga or Taio Cruz help determine acceptable styles for many groups of admirers who desire to fit in with today’s popular culture. Role Expectations Role expectations refer to the specific expectations that are associated with each type of person within a culture or society. Exhibit 8.2 provides some other examples of cultural role expectations. Slide 8 What can I do in class? Q: Corporations must be culturally sensitive toward people living in different societies. How do you think corporations can avoid making cultural mistakes? Research the Internet to find real-life examples of ways in which companies have adapted to different cultures. A: Some popular examples include McDonald’s, Starbucks, and KFC. LO2. Use the key dimensions of core societal values to apply the concept of cultural distance. Using Core Societal Values Slide 9 Where Does Culture Come From? Cultural beliefs define what religion is acceptable, what types of art and recreation are preferred, what manners are considered polite, and the roles for different types of individuals, including expectations for men and women in society. How do people in one nation end up with a culture distinct from people in another? In other words, what causes culture? The answer is based on two components: 1. Ecological factors—The physical characteristics that describe the physical environment and habitat of a particular place. Examples include living near a desert or ocean. 2. Tradition—Refers to the customs and accepted ways of structuring society, such as family and political structures. In the United States, Australia, Canada, and much of Europe, families traditionally consist of two generations (parents and children) living in a household where a husband and wife share decision making. Slide 10 What can I do in class? Q: Ask students to discuss their family traditions and where they originated. Have their traditions changed over the years? A: Answers will vary. Dimensions of Cultural Values The most widely applied dimensions are those developed by Geert Hofstede. This theory of value-based differences in cultures is based on five key dimensions, with each dimension representing a core societal value. Core societal values (CSV), or cultural values, represent a commonly agreed upon consensus about the most preferable ways of living within a society. Exhibit 8.3 shows how core societal values serve as the mechanism by which culture affects value. Cultural values can be categorized using the following dimensions: 1. Power Distance—The extent to which authority and privilege are divided among different groups within society and the extent to which these facts of life are accepted by the people within the society. 2. Individualism—As a CSV, individualism means the extent to which people are expected to take care of themselves and their immediate family. 3. Masculinity—As a CSV, this dimension captures distinctions existing in societies based on mannerisms typically associated with male traits, such as valuing assertiveness and control over traditional feminine traits like caring, conciliation, and community. 4. Uncertainty Avoidance—A culture high in uncertainty avoidance is uncomfortable with things that are ambiguous or unknown and prefers to play it safe. 5. Long-Term Orientation—Reflects values consistent with Confucian philosophy and a prioritization of future rewards over short-term benefits. Slide 11 What can I do in class? Have students discuss their thoughts on astrology. Can astrology reduce uncertainty avoidance? Uncertainty avoidance has important implications for consumer behaviour, because marketing success and improved quality of life often depend on obtaining value from something innovative and, therefore, somewhat unfamiliar. The CSV Scoreboard A CSV scoreboard can be constructed using historical CSV dimension scores found in many resources, including the Hofstede website at www.geert-hofstede.com. BRIC BRIC refers to the collective economies of Brazil, Russia, India, and China, which are now widely accepted as emerging economies. Exhibit 8.4 depicts a CSV scoreboard for a few select nations. Brazil, Russia, India, and China represent widely accepted emerging economies. CSV Leaders Among all nations with CSV scores, Austria has the lowest power distance scores, and Malaysia has the highest. The United States has relatively low power distance with only 15 nations reporting lower scores. Slide 12 Cultural Distance Cultural distance represents how disparate one nation is from another in terms of their CSVs. With this approach, consumers can be compared by using scores available in a CSV scoreboard. For example, Exhibit 8.5 demonstrates the different scores for all nations depicted in the CSV scoreboard compared with Canada. The term CANZUS is sometimes used to refer to the close similarity in values between Canada, Australia, New Zealand, and the United States. Slide 13 Slide 14 LO3. Define acculturation and enculturation. How Is Culture Learned? Slide 15 Culture is a learned process. Consumers learn culture through one of two socialization processes discussed in the following sections. Socialization involves learning through the observation and active processing of information about lived, everyday experience. Slide 16 Enculturation Enculturation represents the way in which a person learns the native culture as well as the way in which a consumer learns and develops shared understandings of things with his or her family. Acculturation Acculturation is the process by which consumers come to learn a culture other than their natural, native culture—that is, the culture to which one may adapt when exposed to a new set of CSVs. Exhibit 8.6 illustrates factors that either inhibit or encourage consumer acculturation. Several factors affect acculturation: 1. Ethnic identification—Ethnic identification is the degree to which a consumer feels a sense of belonging to the culture of their ethnic origins. The strength of this identification can make consumers feel closed-minded about adopting products from a different culture. 2. Age—Older consumers adapt to new cultures more slowly than do the young. 3. Consumer ethnocentrism—Consumer ethnocentrism is a belief among consumers that their ethnic group is superior to others and that the products coming from their native land are superior to other products. 4. Gender—Male consumers acculturate more slowly than females. Slide 17 Quartet of Institutions A quartet of institutions is responsible for communicating CSVs through both formal and informal processes from one generation to another. The four institutions comprising the quartet are the following: 1. Family  Primary 2. School  Primary 3. Church  Primary 4. Media  Secondary Children who watch more television than others become acculturated to the consumer society and are more materialistic than children who view less television. Internet Censorship—Somebody’s Watching Me Some governments believe media can affect the core societal values of consumers. Censorship of Internet sites has caused problems for Google, Microsoft, and Yahoo. A search engine from China, Baidu, has grown in popularity in China since it participates in censorship without the disclaimers other companies use. Slide 18 Culture and Policy-Related Consumer Communication Differences in CSVs may have public policy implications. Modelling Modelling is a process of imitating another person’s behaviour. Adolescents tend to model the behaviour of those they aspire to become. Consumers model each other, particularly for novel products like the vuvuzela that became popular during the 2010 World Cup. See Exhibit 8.8 for ways that institutions facilitate modelling. Modelling is a form of observational learning. Shaping Shaping is a socialization process by which consumer behaviours slowly adapt to a culture through a series of rewards and sanctions. Shaping is a form of instrumental conditioning. Slide 19 Slide 20 LO4. List fundamental elements of verbal and nonverbal communication. Verbal Communication Slide 21 Verbal communication refers to the transfer of information through either the literal spoken or written word. Marketers have long wrestled with the problem of translating advertisements, research instruments, product labels, and promotional materials into foreign languages to compete for foreign markets. One major difficulty involves dialects, which are variations of a common language. Almost every language is spoken slightly differently from place to place. Exhibit 8.9 provides some examples of difficulties in communicating even simple ideas through the spoken or written word. Slide 22 Slide 23 Translation Equivalence A translation equivalence exists when two phrases share the same precise meaning in two different cultures. With this process, one bilingual speaker takes the original phrase and translates it from the original language into the new language. Then, a second, independent bilingual speaker translates the phrase from the new language back into the original language. Metric Equivalence Metric equivalence refers to the state in which consumers use numbers to represent quantities in the same way across cultures. Slide 24 Nonverbal Communication Nonverbal communication refers to information passed through some nonverbal act or communication that does not involve the literal spoken or written word. Exhibit 8.10 depicts several aspects of nonverbal communication and the way in which they come together to create effective communication. Slide 25 What can I do in class? Share with students some famous marketing blunders due to translation issues by using the following website: www.brandchannel.com/features_effect.asp?pf_id=243. Ask students what they would do to avoid such costly mistakes. Most will recognize that translation errors occur when companies try to save money or are rushed to meet deadlines. Time In America, the expression “time is money” is often used. Americans typically place a high value on time and timeliness. Consumers from other cultures do not value timeliness in the same way. Mannerisms/Body Language Body language refers to the nonverbal communication cues signalled by somatic (uncontrollable biological) responses. The mannerisms that reveal meaning include the following characteristics: • Facial expressions • Posture • Arm/leg position • Skin conditions • Voice Space The value that consumers place on space varies in importance depending on which country you call home. Etiquette/Manners Etiquette represents the customary mannerisms that consumers use in common social situations. Dining etiquette varies considerably from one culture to another. When consumers are unaware or lack concern for the proper etiquette in a given situation, consumers and the service provider may both suffer. Relationships How do consumers respond to attempts by marketers to build a personal relationship? Marketing appeals aimed at building personal relationships should emphasize the collective preference of the group rather than the individual. Agreement How is agreement indicated, and what does it mean? Marketers must be aware of the meaning of agreement in different cultures. In South Korea, a contract is a foreign concept, and it might be seen as an insult to use one. Symbols Because cultures have different value profiles, objects and activities take on different symbolic or semiotic meaning from culture to culture. A cross might mean a device with which to execute people in some cultures, but the cross is a symbol of everlasting life to Christians. What can I do in class? In pairs, have students use body language to express an idea. Discuss whether the partners could figure out what the other person was trying to tell them. How could they have communicated better? LO5. Discuss current emerging consumer markets and scan for opportunities. Emerging Cultures Slide 26 BRIC stands for Brazil, Russia, India, and China. These four nations are often singled out as having economies that are growing very rapidly and have an emerging middle class. China and India in particular entice marketers with very large populations. Slide 27 Exhibit 8.11 displays the most attractive national consumer markets. While countries such as the United States, the United Kingdom, and Germany have long been recognized as important consumer markets, many nations on this list are emerging in the sense that they would not have been considered leading consumer markets a decade or two ago. Slide 28 Glocalization Glocalization represents the idea that a marketing strategy may be global, but the implementation of that strategy at the marketing tactics level should be local. What’s Next? The advancement of free market economies has led to increased standards of living in many corners of the globe. Cultural barriers go beyond dealing with consumers and are also engrained in the sociopolitical environment. Therefore, changes in government institutions are likely needed before many companies will feel comfortable doing business around the world. Slide 29 VIDEO CLIP PowerPoint Clip from Raleigh America Run time 1:33 minutes Slide 30 Raleigh Bicycle is a bicycle manufacturing company founded in 1887 in Nottingham, England. When the “Lance Armstrong effect” toward lighter, faster bikes began to dominate the cycling market, Raleigh needed a way to differentiate its products. Historically Raleigh is known for producing a sturdy, all-steel-frame bicycle. To compete in today’s market, Raleigh relied on the culture of its European consumers as well as the messenger cyclists here in North America. The result is a return to the steel-frame lifestyle bicycle for the U.S. market that stands out in a sea of training cycles and meets the needs of an emerging market. Ask your students: 1. How does Raleigh use its knowledge of existing consumer cultures to adapt and market a competitive product? Answer: Raleigh looked to the organic lifestyle use of European cyclists as well as the increasingly popular U.S. culture of bicycle messengers to understand and predict a culture of consumers who embody both traits. 2. How does Raleigh’s steel-frame bicycle translate into value for their target consumer? Answer: Consumers who are interested in cycling for commuting or recreational purposes over training and speed are likely to be interested in a stronger more traditional frame over a lightweight road bike’s frame. CHAPTER 9 MICROCULTURES WHAT DO YOU THINK? POLLING QUESTION The microcultures I belong to greatly influence the value I receive from products. Strongly disagree 1 2 3 4 5 6 7 Strongly agree Have students access www.icancb.com to answer the polling questions for each chapter of CB. Ask them to take the online poll to see how their answers compare with those of other students taking consumer behaviour courses across the country. Then turn to the last page of the chapter to find the What Others Have Thought box feature. This graph is a snapshot of how other consumer behaviour students have answered this polling question thus far. LEARNING OUTCOMES After studying this chapter, the student should be able to: LO1 Apply the concept of microculture as it influences consumer behaviour. LO2 Know the major Canadian microcultural groups. LO3 Realize that microculture is not a uniquely Canadian phenomenon. LO4 Perform a demographic analysis. LO5 Identify major cultural and demographic trends. SUGGESTED LECTURE OPENER Researching microcultures isn’t something marketers do just for fun. It’s an important method of staying on top of trends in order to develop and promote goods, products, and services that will appeal to consumers. One hot microculture businesses are cashing in on is the “Foodie”— defined as someone with an “enthusiastic interest in preparing food” and knowledge of or interest in “world cuisines, spices, food trends and food preparation techniques.” A 2012 Ipsos study found 3 of every 10 Canadians identified themselves as Foodies. Within this microculture, additional trends can be found. CRFA’s Canadian Chef Survey found a significant emphasis on locally produced/locally inspired dishes, sustainability, and farm-/estate-branded ingredients as the “locavore” trend continues to shape the food industry. As the Ipsos study states, the Foodie “combs through the ingredients label when buying products… [and] has a strong influence on food and beverage companies, providing direction on what is currently relevant on the grocery market shelves and also what the next big trend could be.” [Sources: 2012 Hot Trends in Food, www.ipsos.ca; CRFA Canadian Chef Survey 2012, www.restaurantcentral.ca.] KEY CONCEPTS WITH POWERPOINT® SLIDES Slide 1 Slide 2 LO1. Apply the concept of microculture as it influences consumer behaviour. Microculture and Consumer Behaviour Slide 3 Any given culture can contain multiple smaller and more specific microcultures. Microculture is defined as a group of people who share similar values and tastes that are subsumed within a larger culture. Slide 4 What can I do in class? Q: Ask students how many microcultures they belong to, and to describe them. A: Answers will vary. Culture Is Hierarchical Culture explains the habits and idiosyncrasies of all groups of consumers. Every consumer moves in and out of microcultures because they belong to one overall culture and then to many smaller cultural groups, or microcultures. Exhibit 9.1 explains the hierarchical nature of culture and microculture. Slide 5 Microcultural Roles and Value Microculture membership changes the value of things. 1. Role conflict—When a consumer faces a situation involving conflicting expectations based on cultural expectations, he or she experiences role conflict. 2. Divergence—A phenomenon that happens when consumers choose membership in microcultures in an effort to stand out or define themselves from the crowd. Slide 6 LO2. Know the major Canadian microcultural groups. Major Canadian Microcultures Slide 7 Regional Microcultures and Canadian “Tribes” Lifestyles and culture vary as you travel around Canada. Distinct regional microcultures can be identified in the Maritimes, Quebec, Ontario, the Prairies, and the West Coast. Additionally, in his 1998 book Sex in the Snow: Canadian Social Values at the End of the Millennium, Michael Adams identified 12 “tribes” in Canada that are classified by age, but really differ in terms of their values and motivations. Exhibit 9.2 shows the tribes and their key values and motivations. Slide 8 Slide 9 Slide 10 What can I do in class? Have students take the tribes survey at http://tribes.environics.ca. Discuss how well the tribe describes them. Ask students to recall some of the questions asked on the survey and discuss how these particular types of questions help to identify specific psychographic segments. What can I do in class? Q: Ask students if they have lived in other regions of Canada. Have them identify different brand and food preferences that appear in different regions. A: Answers will vary but could include differences in choices of favourite beverages, favourite sports, the names of things, how words are pronounced, etc. Sex Roles and Microculture Sex roles refer to the societal expectations for men and women among members of a cultural group. • Societal Role Expectations—Responsibilities can vary among cultures for tasks such as child care and household cleaning. Marketers should be aware of the relative sex roles within societies because men and women share purchasing responsibilities differently from culture to culture. • Male and Female Segments—Marketing communication is often directed toward either a male or female market segment. Slide 11 Age-Based Microculture The age-based group that receives the most attention is the teenage group. This is because nearly 2.2 million Canadians are between the ages of 15 and 19. World Teen Culture? The Internet facilitates communication among consumers around the world, thereby contributing to what some believe is a more universally similar world teen culture. Exhibit 9.3 illustrates brands that have particular appeal to teens in practically all corners of the world. For example, Coca-Cola and McDonald’s are brand names that are listed among teens’ favourite brands throughout much of the world. Although teens around the world may find value in many of the same types of music and clothing, research suggests that the cultural values of their home nation remain relatively distinct from nation to nation, particularly among personal products. Slide 12 Slide 13 Generation Microculture Age-based groups can be distinguished from generational groups because consumers grow out of age groups. People that age in the same generation belong to the same cohort—a group of people who have lived the same major experiences in their life—and those experiences end up shaping their core values. Generational cohorts in Canada are generally identified as: • Baby Boomers—Canadians born between 1945 and 1964 • Generation X—Canadians born between 1965 and 1979 • Generation Y—Canadians born between 1980 and 2000 Generational Influence and Marketing Generations provide a good basis for marketing segments because the consumer’s age identifies their generation. The largest number of people within a generation are similar to some extent. Slide 14 What can I do in class? Q: What do students think is their psychological age? What about their parents? A: Answers will vary. Discussion could follow to discuss the idea behind the saying “60 is the new 40.” Religious Microculture Religion represents one of the key institutions that shapes consumer culture. Affiliation with a religion provides a basis for microcultures within national or regional cultures. Exhibit 9.5 shows the proportion of consumers belonging to the main religions in Canada, other diverse nations, and the world. Slide 15 Slide 16 Ethnic Microculture in Canada Canada was the first country in the world to officially institute microculturalism, formalizing the notion that all citizens are equal regardless of their race, ethnic origin, language, or religion. Unlike the American melting pot that aims to blend together people from a wide range of backgrounds, Canadian multiculturalism encourages people to take pride in their ancestry and aims to establish a culture of mutual respect for different races and ethnic backgrounds. Microcultures based on ethnic differences affect consumer behaviour and the choices consumers make in selecting housing, entertainment, food, and other consumer products and services. Exhibit 9.6 shows the proportion of Canadians born in other countries. Exhibit 9.7 illustrates the top 10 ethnic origins of Canadians. Exhibit 9.8 graphs the languages spoken in Canada. Exhibit 9.9 projects the proportion of visible minorities in Canada to 2017. Slide 17 Slide 18 Slide 19 Slide 20 Slide 21 Income and Social Class Microculture Income and social class are important topics in consumer behaviour, and are variables that marketers track closely. Tastes and preferences are largely determined by social class. Social class is a culturally defined group to which a consumer belongs based on resources like prestige, income, occupation, and education. Habitus refers to mental and cognitive structures through which individuals perceive the world based largely on their standing in a social class. Social Class in Canada There are six major classes identified in Canada: Upper Class, Lower Upper Class, Upper Middle Class, Lower Middle Class, Upper Lower Class, and Lower Lower Class. Social Stratification Social stratification can be defined as the division of society into classes that have unequal access to scarce and valuable resources. Status symbols are products or objects used to signal one’s place in society. Social Class Worldwide Existing all over the world, social classes remain important to marketers. A key driver in several emerging markets like China and India is a rapidly expanding middle class with the desire and the means to buy global brands. Slide 22 Slide 23 Street Microculture Microcultures can grow out of gaming experiences, virtual communities, and almost any other consumer activity that brings consumers together with something in common. Slide 24 What can I do in class? Q: How many street microcultures can students recognize on campus? Would Facebook be considered a street microculture? A: Answers will vary. LO3. Realize that microculture is not a uniquely Canadian phenomenon. Microculture Is Not Uniquely Canadian Slide 25 We often think of foreign countries with a single stereotype. Other countries have many bases around which microcultures are formed. Street microcultures also exist around the world. Given the pervasiveness of microcultures around the world, marketing efforts need to take into account not only culture, but microculture as well. Slide 26 LO4. Perform a demographic analysis. Demographic Analysis Slide 27 Demographics refer to relatively tangible human characteristics that describe consumers. Demographic variables are closely related to microcultures and help to describe them. Geodemographics is the study of people based on the fact that people with similar demographics tend to live close to one another. A demographic analysis develops a profile of a consumer group based on their demographics. Statistics Canada is a source that performs demographic analysis. Exhibit 9.10 shows the StatsCan website. Slide 28 Slide 29 LO5. Identify major cultural and demographic trends. Major Cultural and Demographic Trends Slide 30 Trends Affecting Consumer Behaviour A number of cultural, microcultural, and demographic trends affect consumer behaviour. • Declining Birth Rates—If this trend continues, countries with declining birth rates will experience a decline in overall population. Exhibit 9.12 displays projected birth rates for several countries. • Increasing Consumer Affluence—The combination of working couples and lower birth rates has led to greater levels of consumer affluence. • Increasing Life Expectancy and the Aging Consumer—Exhibit 9.12 also shows the life expectancy for several countries. Life expectancy is on the rise for many countries. • Disparate Regional Growth Rates and Urbanization—While Ontario remains Canada’s most populous province its population growth lags behind the western provinces, with more than one-third of Canadians now living west of Ontario. In addition, Canada’s population is increasingly urban. Thirty-five percent of Canadians live in areas near the three largest cities (Toronto, Montreal, and Vancouver). • Increasing Cultural Diversity—Many societies are becoming more culturally diverse through immigration and the growth of microcultures. Microcultures influence consumer behaviour throughout the world, so the study of microculture is very important for consumer researchers and marketers. Slide 31 Slide 32 VIDEO CLIP PowerPoint Clip from Ben & Jerry’s Run time 1:29 minutes Slide 33 Ben & Jerry’s premium ice cream was founded in 1978 with little more than $12,000 and an oldfashioned rock-salt ice cream maker. Today it is one of the most successful brands on the market. Part of the company’s success lies in its clearly defined brand image as a super-premium product with a fun, counter-cultural edge. Ask your students: 1. Describe a typical Ben & Jerry’s consumer. Answer: A typical Ben & Jerry’s consumer is generally 25 to 45 years old, highly educated, and in a high income bracket. 2. What microcultures does the Ben & Jerry’s brand appeal to? Answer: Ben & Jerry’s appeals to counter-corporate and high-end consumer microcultures as well as those that are concerned with social and ecological responsibility. Instructor Manual for CB Consumer Behaviour Canadian Barry J. Babin, Eric Harris, Kyle B. Murray 9780176555283