Effect of Culture and Sub-

Culture on Consumer Behavior

Dr. Naveen Pol

 Culture

• The collective values, customs, norms (implicit), arts, social

institutions, and intellectual achievements of a particular society which
express its principles, standards, and priorities.

Bhutta Aradhana
 Culture Role and Dynamics
• The supranational level
⁃ In-Crowd (approval)
⁃ Pop Mavericks (word of mouth)
⁃ Networked Intelligentsia (social media)
⁃ Thrill Renegades (Law and order do not exist)
⁃ Swami Koragajja

• The National Level

• The Group Level

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 Culture Role and Dynamics
• Cultural Evolution (homemaker / working)

• Cultural beliefs reflect consumers needs

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textiles/as-branded-as-it-can-get-raymond-launches-indias-first-branded-
khadi-label/articleshow/58751538.cms?from=mdr
 Learning Cultural Values

• Forms of Learning
⁃ Formal Learning (Family)
⁃ Informal Learning (Imitate friends / TV)
⁃ Technical Learning (Teachers)

• Enculturation and Acculturation

Learning Learning
one’s own a new
culture culture
 Cultural Values
• Marketing Influences and Cultural Learning

⁃ Family Orientation

⁃ Symbols and Rituals

⁃ Core Indian Values

⁃ Savings Orientation
 Spices
• Evolution
⁃ They are defense of plants
⁃ Extension of indigenous civilization
⁃ Culture, ideas, currency, and technology sharing (Spread Geographically)
⁃ Cocoa beans used as currency for exchange

• Indian and Egyptian spices are known as world’s best spices in taste
• Global Spice market is around Rs 88,000 Cr CAGR 6.5 percent
• Spices market in India Rs 40,000 Cr, CAGR 10 percent
• India produces about 75 of the 109 varieties of spices
• However, India produces 75 percent of global spices
• “Khari Baoli” is located in Old Delhi – worlds largest spices market
 Spices

Mr.Duraisamy & Mrs. Shanthi

Duraisamy
Rs 2000 Cr TO

Rs 500 Cr Company exporting to

Rs 1300 Cr TO each 9 countries
Extended to restaurants

Shivadas Menon
 Anubhav Dubey
https://www.thebetterindia.com/245300/startup-mba-chaiwala-
prafull-billore-millionaire-ahmedabad-success-story-viral-video-
https://www.youtube.com/watch?v=iI9BJavjxDE
india-ros174/
• Manike Mage Hithe
• 11 Cr Views
• Earworm (easy to hum)
• Three part formula (Question/Answer)
• Rap - Highlight the melody of the song
• Amitabh / Tiger S / Priyanka / Madhuri
740 Cr TO, 75 % Market share  191 million users on Youtube 
 Cultural Values
• Marketing Influences and Cultural Learning

⁃ Festivities

⁃ Shopping as a Ritual

⁃ Mythology

⁃ Food Habits

91 lakh Visitors
 KUMBH MELA

#GoSafeOutside campaign
25 Lakh Rotis Sponsored LED Street lights Hamam with Ogilvy

HUL: Swachhata Ki Sawari

Sponsored Water Purifiers Road shows campaign
 Measuring Cultural Values

• Content Analysis

• Field Observation (Covert (unaware)/ Overt)

• Depth interviews (Structured / Un S)

• Focus Group Discussions

 Changing Cultural Trends in Indian Urban Markets
• Achievement Orientation

• Work Ethic

• Material Success (25 to 30 yrs age [27%], F.I.R.E)

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• Middle-of-the-road Approach to Tradition lowe-lintas-newest-ads-capture-evolving-food-culture-of-indian-
homes-101729.html
• (Employee eat in office ad) Swiggy

• Impulse Gratification (expect immediate reward)

• Use of Hi-Tech Products

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 Core Cultural Values

• Achievement and Success

• Time and Activity (US / Eur [weekend no disturbance)

• Efficiency and Practicality

• Progress (own wealth vs heritage [Shahi])

• Comfort and Pleasure (Villa / Half Acre plots)

Akshaya Patra's State-wise
Reach

Madhu Pandit Dasa

 Core Cultural Values
• Individualism and Conformity (Joint property to self)

• Freedom of Choice (More than one brand of FMCG products) (N.Korea / Germany)

• Humanitarianism
• Belongingness
• Trusting
185 Cr
• Social-practical motivation

• Prestige

• Youthfulness
1500 Cr
• Fitness and Health
 Core Cultural Values
• Environmental Concerns
• Green Marketing

• Consumer Environmental Stewardship

⁃ Environmental Activities

⁃ Organic Eaters

⁃ Economizers (mechanical devices intended)

• Consumer Classification
• True Greens

• Donor Greens

• Learning Greens

• Non-Greens https://atumobile.co/gallery/ https://www.uniguide.com/recycled-shoes-brands/

Cross-Cultural Consumer Behavior

Rs One Lakh Cr (Globally)

Rs 100 Cr Revenue in India
Dr. Naveen Pol
Hakozen Dining
 Dunkin Donuts in India
• Dunkin Donuts (founded in 1948, USA) is around 10,200 Cr
company. It is globally, by-large consumed as a breakfast product. • Due to low sales in India, it later sidelined its
• It offers range of burgers and coffee products too. It also owns Donuts range of products and introduced masala
Baskin-Robbins as its subsidiary. range of Burgers and also added multiple flavors of
• 40 percent of its international sales come from South Korea. It has hot Tea in its menu.
strong presence in Brazil and Colombia. • The company decided to reduce its store size due to
• However, it has been striving hard to make its presence in surge in its operating costs. Also started targeting
countries like Japan, Canada, England, Spain Sweden, Israel, Indian youths wherein found product acceptance.
Denmark, and Australia. The organization is eying big on China Further the sales were stagnated in the later stages.
and India.
• The organized food chain business in India is
• It entered India in 2012, by its exclusive tie up with Jubiliant Food meager 3 percent when compared to that with 50
Works, as its franchise which also provides similar business to
percent in USA.
Dominos India.

⁃ Why Dunkin Donuts is failing in India? has it to

⁃ What is the way ahead for Dunkin Donuts in India?
do with Indians being health conscious?
 Dairy Consumption in India
• India is worlds largest producer (24 % of global) and
consumer of dairy products in world. Rs 11,357
Billion.
• Amul (1946) – 7.2 %
• Mother Dairy (1974) - 3.7 %
• Nestle (1961) - 2.9 %
• Danone (3rd largets in world – France)
⁃ Haryana, closed in 2018

⁃ Why organized trade is not able to have its strong footholds in Indian dairy market
 Smuggling and Spurious Products
• Horlicks was smuggled in India – Southern parts of India (Chennai –
commercial gateway of Southern India)
• Paan Galli -
 Global Brands are Viewed Differently than Local Brands
Consumers Worldwide Associate Global Brands with Three Characteristics

• Quality Signal – Global brands are technologically advanced

• Global Myth – “Cultural ideal” gives them identity

• Social Responsibility – Global brands are socially responsible (Pepsi – Water Conservation)
Good Agriculture Practices (“GAP”), Integrated Pest
Management (“IPM”) and efficient water usage
 Global Brands are Viewed Differently than Local Brands

• Global Dreamers – Consumers are not particularly concerned on the

aspect of social responsibility

• Antiglobals – Global brands are of higher quality but dislike if they

preach regional country values

• Global Agnostics – Evaluate global brands as same way they evaluate

local brands (Unbiased Consumers)
 Cross Cultural Analysis
• A form of marketing research that examines the differences and
similarities among consumers in different countries.

• Price-sensitive consumers

• Variety-seeking consumers

• Brand-loyal consumers

• Information-seeking consumers
https://www.livemint.com/Companies/
kjayYwbfUW0rcQ4r2FYGIN/Multiple-variants-keep-auto-
 Global Psychographic Research
• Strivers – Ambitious and Materialistic

• Devouts – Responsible, respectful, and conservative

• Altruists – Unselfish in their concern for others, society, and the future

• Intimates – Focus on social relationships and family

• Fun Seekers – Young in age and outlook, value adventure and good times

• Creatives – Seek knowledge and insight, and have a keen interest in books
and new media
Persuading Consumers
 Time Passage and Source Credibility

• Differential Decay
(The message gets faded over a period of time)

• Sleeper Effect (slowly increasing the influence)

First major retail chain of stores 

• Selective Exposure
(NGO’s show selective content to strengthen pre disposition)
 Barriers of Effective Communications (Noise)

• Psychological Selectivity – Shift to other medium

• Psychological Noise (Message Clutter)

• Sensory Input (experiential ads)

Small World Machines
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 Gurella Marketing Techniques for Effective Communication.

Viral Marketing Presume Marketing Experiential Marketing Rub Off Effect

Small World Machines Marketing
Suzuki Hayate

Wild Posting Marketing Ambient Marketing Grass Root Marketing

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Native advertising
• Ads appearing on
Company websites
with valid content.
They are not display
ads

• It is banned in some of
the countries. As user
confuses it as a news.
Fiddle with trust factor.

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 Broadcasted vs Addressable Messages

One-Side Message vs Two-Side Message (Quora)

Comparative Advertising

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https://economictimes.indiatimes.com/et-now/brand-equity/rin-vs-tide-a-war-of-advertisements/videoshow/5680211.cms
 Power of Brand Personification – The way they make us feel
Content is fire, Social media is Gasoline

• Energy Drink

• Non Alcoholic beverage

• Not Great at Taste

• Neither Healthy

• Sells about 7.5 billion units a year

• Company spent 65 million
USD (₹ 495 Crore)

• Competitors and critics

termed it to be irrational
spending.
 Power of Brands – The way they make us feel
Content is fire, Social media is Gasoline

8 million
live streams
(Highest)

3.2 million
1 million
Tweets
Shares

• Publicity worth a billion USD

News channels
started reporting • 7% surge in sales in six months.

52 million
• Revenue increased by 1.6 billion
webcast
USD
Happy Learning...