HR assignment essay on: Subcultures and Consumer Behaviour

Many consumers identify with a subculture. Define and explain what subcultures are, and provide a detailed discussion of the influences these phenomena have on consumer behaviour.Subcultures and Consumer Behaviour

By the word subculture we refer to a group of people who possess common beliefs, values and customs. This creates an identity for that group and differentiates them from other members of the society. Subculture is identified as a distinct cultural group that exists in a larger section of the society. It is a cultural subgroup that stands differently from the mainstream culture of the society. Subcultures are identified by the way they are presented, what they wear, their living style as well as the ethnic background to which they belong.

Subcultures are differentiated by their distinctive style of dressing, and other activities that they perform (MacInnis 2008). These cultures take the form when the mainstream culture is inefficient and incapable of meeting the needs of the people of the community of a particular culture. This subculture can be differentiated by a certain difference in dress, by the use of a jargon, or any other thing that makes the group have its individual identity among the various cultures that exist in the society.

These subcultures can be based on the basis of various aspects, which are religious, racial and ethnical aspects. Consumers can be identified on the basis of different cultures that have a factor of commonality in their characteristics and identities. Membership of individuals within these sub cultural groups gives an insight to the individuals about the consumption decisions and buying behaviour. Identity of a person is majorly identified by its ethnic origins and religious background. African Americans, Hispanic Americans, and Asian Americans are considered to be the three racial subcultures.African Americans are identified as a very important segment of the market. Asian American consumer group is well educated and the Hispanic Americans also enjoy a high socioeconomic status (Sandhusen 2008). The sub cultural group of Asian American and Hispanic American tends to be more family oriented and have a traditional perspective for family values. The members of these cultural groups present a certain behavioural pattern that plays a dominant role in the society. The influence and impact of a subculture is lasting and persistent in the determination of consumer behaviour. This makes it important for the marketer to identify homogeneous subgroups within a diverse and heterogeneous national culture.

An example in this case may be the consumer characteristic of African Americans, who prefer to purchase products of leading brands and are loyal customers of their brands. They do not prefer buying generic or private labelled products. People who belong to this subculture tend o pay more in order to get the best quality products and maximise their satisfaction. The focus of marketers has been shifted towards age subculture and gender subculture. There can be various examples in this context like, Levis, Lifestyles, and various new salons coming in the market to meet the needs and demands of various subcultures and their origins.

The purchase decision undertaken by consumers are highly influenced and affected by their cultural, social, personal, and psychological characteristics (Blythe 2008). These subcultures form an important segment of the market due to which the marketers have to design products and services in a customised manner to fulfil the needs of these subcultures. There are various groups that affect the buying behaviour of consumers like reference groups, membership groups. These groups have a direct influence on the purchasing pattern of the consumers. Reference groups are those groups, which provide a point of comparison while forming the attitude of an individual. Membership groups have a direct influence on the buying behaviour of an individual.

These groups play an important role in determining the purchase decision, depending about the kind of purchases to be done, like conspicuous purchases. Family members are one of the important parts of the subculture that determine the buying decision of an individual (Johnson 1990). A person’s personal characteristics like the age, life-cycle stage, his profession, economic condition and the self concept. The role performed by and individual and the status that he carries in the society and among the peer group members also define the buying pattern of an individual.

Psychological factors also play an important role in determining the action decision of purchase that an individual is supposed to make. These factors can be motivation, perception, learning and the beliefs and attitudes of the individual. The motive of an individual is defined by his intensity to purchase a given product.

Therefore it can be said that subcultures play a dominant and prominent role in the purchase decisions of the consumers and hence determine their buying behaviour towards a product. So, marketers should focus on targeting specific groups on the basis of their subculture so that their needs and preferences can be made. In this manner the companies can retain its customers and maintain its market share in the long run.

The concept of social class has a profound impact on consumers around the world. Using theory and examples provide a detailed discussion on social class and how it can impact on marketing strategies and consumers’ choices.

ANSWER:

Introduction

Social class is a division of members of a society into a hierarchy of different class and status. The members of these classes are either having higher or lower status than others. Social class or social status is frequently related with the ranking of members of each class in terms of wealth, power and prestige. The concept of this hierarchy has a truly profound impact upon consumers all around the world. By using different theories of social class and examples, this paper will provide a detailed discussion on social class, and it can impact on marketing strategies and consumers’ choice (Doole and Lowe 2008).

Concept of social class

A social class is a status hierarchy through which individuals and groups can be classified on the basis of their esteem and prestige acquired with the help of economic success or accumulation of wealth. There are mainly five social classes that can recognize in many societies such as upper class, upper-middle class, middle class, working class, and lower class. The term social class is based upon various theories in order to determine the individual’s ranks and status such as social comparison theory. Social comparison theory states that individuals compare their ranks and status against others in order to determine their own social standing (Noel 2009).Social class has a profound impact on consumer behaviour because through social class consumers can actively increase their social standing either through conspicuous possessions or consumption. Social status can also be defined in terms of socio-economic variables such as family income, occupational status, and educational attainment. Social class can be a measure through different ways like subjective measure, reputational measure, objective measure, etc. subjective measures helps individual to estimate their position in social class by asking themselves. Reputational measure is a method through which informants make a judgment on the basis of social class membership of individuals within the community. Under Objective measures individual answer to some Socio economic questions and categorized on the basis of their answers.

Social class profiles

Social class can be categorized in six segments such as the upper-upper class, lower-upper class, upper-middle class, lower-middle class, upper-lower class and lower-lower class. Upper-upper class is less in number and considered as  well established families who are accustomed to wealth, so they do not spend money conspicuously. The lower-upper class is also a class of wealthy people, but they are not quite accepted by the upper crust of society. People belongs to upper-middle class have neither family nor unusual wealth; these are achieving professionals. The lower-middle class people are the faithful followers that are also considered as white collar workers. The upper-lower class segment belongs to the majority that is security minded. People belongs to lower middle class is poorly educated, unskilled labourers and often out of work (Noel 2009).

Consumer behaviour applications of social class

Social class provides a broad range of attitudes, beliefs, and values that distinguish the members of various social classes. This categorization of social classes helps in developing marketing strategy and consumer’s choices.

Clothing, fashion and shopping

In today’s world, most of the people dress to fit their self image which also includes their perception in order to present their own social class membership. Members of specific social class differ in terms of their tastes and life style. For instance, people belongs to lower middle class have a strong preference towards caps, T-shirts, and other clothing that mainly offers an external point of identification such as the name of brand, an admired group, or a valued trademark. Lower middle class consumers are target consumers for well known brands whereas, upper class consumers use to buy products that are free from such supporting associations. Upper class consumers always seek for more subtle looks rather than the designer clothes (Noel 2009).The pursuit of Leisure

Social class membership is also related with the choice of recreational and leisure time activities. As an example, upper class consumers are prefer to attend the theatre and concerts, to attend college football games or to play a bridge, whereas lower middle class consumers tend to watch television, and other baseball games. In addition to this, lower middle class consumers spend more time in commercial type activities and crafts activities rather than celebrating activities. Furthermore, middle class consumers spend more on experiences that bring the family together. Usually, they are less spending in nature.

Saving, spending, and credit

Saving, spending, and credit card usage, all are related to the social class standing, such as upper middle class consumers are more future oriented and confident about their financial acumen whereas, lower middle class consumers are more concerns towards their immediate gratification such as when do they save, how much they should save, etc. Basically, lower class consumers are more interested in safety and security issues. Furthermore, middle class consumers are moderate in investing in insurance plan, stocks and real estate (Samli 1995).Conclusion

As per the characterization of social class into six hierarchal segments, marketing strategies and consumer’s choice varies on the basis of their financial position, income level, education and prestige. These are the key factors behind the consumer preference of each and every group. Thus, marketer has to take care of consumer social class before making their marketing plan.

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