Post on 22-May-2018
CONSUMER PURCHASING & BEHAVIOR: A CONSIDERATION OF THE COMBINED INFLUENCE OF CULTURE & CONFORMITY ON CONSUMER
DECISIONS
by
Namisha Balagopal
A Senior Honors Thesis Submitted to the Faculty of The University of Utah
In Partial Fulfillment of the Requirements for the
Honors Degree in Bachelor of Science
In
Marketing
Approved:
Ian Skumik Stephen CarsonThesis Faculty Supervisor Chair, Department of Marketing
Rachel Osterman Sylvia D. Torti, PhDHonors Faculty Advisor Dean, Honors College
December 2014 Copyright © 2014
All Rights Reserved
Abstract
Formerly, management has been able to understand their consumers simply through the
experience of selling and purchasing. However, current growth trends of various
industries, firms, and world markets have removed decisions makers from having direct
contact with consumers. Firms now highly depend on statistical analysis and behavioral
theories. As a result, large amounts of money are spent to understand consumer’s
attitudes (Kotler, 1965). An analysis's of consumer behavior is vital to understanding
approaches that must be taken in order to provide a personalized consumer experiences
and therefore allow firms to thrive.
Cognitive psychological approaches focus on an individual’s ability to conduct
information processing. The application of these approaches can create a successful
foundation for consumer purchasing and behavior models. These models can be used for
marketing purposes to provide an understanding of the underlying motivations and
attitudes of consumers.
There is no generally accepted model of buying behavior. A marketing strategist
instead recognizes important areas of various models to create a unique model based on a
firm. Different products, variables, and behavioral mechanisms may be considered
important based on different firms (Kotler, 1965).
Conformity to gain acceptance into social groups plays an influential role in the
consumption choices individuals make regardless of industry, it is the concept of
changing ones behavior to fit within a group. Social pressures compel individuals into
accepted norms to conform to hierarchical cultures. A variety of attitudes are covered
such as the need to please group members to gain acceptance, the need to make an
accurate decision, and the embracing of behaviors due to group membership. The
combination of these desires makes individuals susceptible to influences of those who
surround them (Jefferson, 2012).
When consumers make their choices, they can vary in the direction they choose to
pursue. They can conform to behaviors and attitudes of the members of their group by
making the same purchases, or they can make purchases that are vastly different to seek
distinctiveness from their group. The choice that an individual makes depends on if there
is a need to feel inclusion with a group. If this feeling has been satisfied or there is a
negative interaction with the group, individuals are more likely to make distinctive
purchase (Henry, 1976).
It is important to understand consumption choices as they will vary based on an
individual’s attitude, beliefs, and morals. Eastern and Western cultures are known to have
different views, attitudes, and conforming behaviors. The Eastern culture values
conforming behaviors, while the Western culture values uniqueness. Values are
represented in the purchases individuals make so they are accepted into their culture and
theoretically achieve a utility of happiness (Henry, 1976).
Models such as the Marshillian Economic Model created the foundation for
consumer buying theories such as the Theory of Buying Behavior, the Engell-Blackwell-
Miniard Model, the Engel-Kollat-Blackwell Model, and the Hawkins-Best-Coney Model.
The Consumer Decision Making Model, the Decision Making Model, and the Hierarchy
of Effects Model take into consideration the steps in the decision-making consumers go
through. This paper will outline the mentioned models, an overview on the influence of
conforming behavior, and finally the cultural differences between Western and Eastern
consumers.
Table of Contents
Abstract............................................................................................................................. iiTable of Contents............................................................................................................. v
Introduction...................................................................................................................... 1
Research............................................................................................................................ 2The Cognitive Approach............................................................................................. 2
Human Behavior Models........................................................................................... 3Marshillian Economic Model................................................................................ 3
Consumer Behavior Models...................................................................................... 3Theory of Buyer Behavior..................................................................................... 3Engel-Blackwell-Miniard Model........................................................................... 5Hierarchy of Effects Model/Engel-Kollat-Blackwell Model................................. 7Hawkins-Best-Coney Model................................................................................ 10The Decision Making Model............................................................................... 12
Conformity in Social Psychology.............................................................................. 12Asch Conformity Study- A Social Psychology Experiment.................................... 13Types of Conformity................................................................................................ 14
Normative Influence............................................................................................ 14Informational Influence....................................................................................... 15Referent Informational Influence......................................................................... 16
The Influence of Culture........................................................................................... 17East Asians Vs. Westerners..................................................................................... 17
McDonald’s in China........................................................................................... 18The Role of Relationships.............................................................................................. 19
Pressure from Social Groups............................................................................... 21Pressure from Interpersonal Relationships.......................................................... 22
Analysis/Recommendations.......................................................................................... 23Conclusion...................................................................................................................... 25
Bibliography................................................................................................................... 26
v
Introduction
The business and psychological communities have reached an understanding that
it is nearly impossible to be able to predict the behavior of humans. This is due to the
numerous extraneous and confounding variables that have an influence on individuals.
These variables lead to the altering of opinions among individuals on a regular basis,
which cannot be tracked. Unfortunately, this makes it difficult for businesses to predict
the decisions that consumers will make when they are purchasing products. Forecasting
production and sales becomes a menial process due to the wavering purchasing patterns
of consumers.
Social psychologists have studied conformity and the role it plays in influencing
the behaviors of individuals and how they make decisions. This externally influenced
behavior pattern can potentially be considered part of a business model for purchasing
behavior tat allows an understanding of the influence of variables such as the influence of
social, economic, political, and psychological factors on purchasing decisions.
This paper is an informative piece on the development of human behavior models
and their abilities to predict consumer-purchasing decisions. Additionally, it also explores
how conformity plays an influential role in the consumer-decision making process of
product purchases. Society pressures individuals to make specific purchases by following
norms, by doing so it allows an individual to feel that they are accepted culturally. This
aspect is recognized in consumerism but not widely researched; yet it plays a major role
in how individuals choose their products.
Through the creation of a basic understanding on how individuals are likely to
alter their purchasing decisions due to norms, it is easier to predict the success of
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products in various markets. By having an understanding of the influences of conformity,
firms are able to strategize product placement in various countries. These strategies can
be based on social norms that influence purchasing behavior, a deeper understanding of
consumers’ wants and needs, and marketing abilities of companies to recognize profitable
segments.
Research The Cognitive Approach
The cognitive approach of marketing is derived from cognitive psychology. Its
roots can be traced back to Socrates who was interested in the origins of knowledge
(Plato), and Aristotle’s first theory of memory. Around the middle of the 21st century,
cognitive psychology materialized as a mainstream field of study due to the development
of the Stimulus-Organism Response Model (Bray, 2008).
The various branches of cognitive psychology share the common theme of
exploring and understanding mental structures and processes. Most modem theorists now
acknowledge that information processing is influenced by past experience as well as
information that is sought after and received (Bray, 2008).
Cognitivism is simple and has the ability to explain complex behaviors. However,
it assumes that consumers are rational, discerning, logical, and active in their decision
making processes. These considerations create errors in the ability to predict the
decisions of an individual. Yet, cognitivism is still the most appropriate faction in
examining ethical purchasing behavior since complex actions cannot be analyzed in
behavioral models (Bray, 2008).
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Human Behavior Models
Analytical behavioral models provide a framework of key elements that are
claimed to explain the behavior of consumers. To gain an understanding of human nature
at work models can be used to identify influential factors and their relationship with
consumer-decision making.
Marshillian Economic Mode
The origins of the Marshillian Economic Model can be traced back to the writings
of Adam Smith and Jeremy Bentham. Smith set the doctrine of economic growth based
on the principle that man is motivated by self-interest in all his actions. Bentham then
refined this view and claimed that man is calculating and weighs the expected pleasures
and pains of every contemplated action (Kotler, 1965).
Consumer Behavior ModelsTheory of Buyer Behavior
Perceptual I-f J i n m gConsrmcti ^ onstrnctj ------------------------- Input -output flow o f information
an d affects--------------------------Feedback effects...................- ......... Influence of esogeooici vaiubles
Figure 1. Theory of Buyer Behavior. Adapted from “Behavioral Models For Analyzing Buyers,” by P.
Kotler, 1965, Journal of Marketing, 29, p. 37-45.
John A. Howard developed the first consumer decision model in 1953 and it was
further developed in 1969. The model integrates social, psychological, and marketing
influences on consumer choices into a sequence. The interest was to build a model that
could be used to analyze various purchasing decisions (Bray, 2008).
The intervening variables are classified as either perceptual or learning constructs.
Perceptual constructs control, filter and process stimuli that are received.
• Sensitivity to I nformation-degree at which the consumer controls the flow of
information
• Perceptual Bias-the alteration of information due to consumers fitting new information
into their existing mental set
• Search of I nformation-active seeking of information on choices of consumption (Bray,
2008).
The model draws largely on learning theory concepts and six are represented:
1) Moti ve-goals that encourage an action
2) Evoked Set-buyer’s assessment on foe use of a product or service
3) Deci si on Medi ators-mles a buyer uses to assess alternatives
4) Predispositions-a preference towards brands through a prior constructed attitude
5) Inhibitors-enviro^ental forces that restrain the consumption choice
6) Sati sfacti on-feedback from post-purchase to inform firms about ensuing decisions
(Bray, 2008).
The learning process influences the extent to which a consumer considers future
purchases and seeks new information. Howard and Seth suggested that decision-making
differs based on the strength of consumer attitudes towards available brands; which is
influenced by the knowledge and familiarity they have of the product class (Bray, 2008).
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When consumers do not have sufficient knowledge about a product, they become
involved in Extended Problem Solving (EPS) and actively seek out information to reduce
brand indistinctness. As a product group becomes more familiar to a consumer, they are
less consciously involved in their decision and go through Limited Problem Solving
(LPS), which develops into a habit through Routine Problem Solving (RPS) (Bray, 2008).
External variables depend on the individual buyer but are not well defined in this
model. These variables contain history of the buyer up to the beginning of the
observation period. The output variables on the right-hand side of the model represent the
response of a consumer and follow an informal and less structured procedure to
purchasing:
• Attention-ma^itade of a consumer’s information intake
• Comprehension-mderstoding of information that is received and used
• Attitudes-a consumer’s evaluation of a brands potential to provide satisfaction
• I ntenti on-foe consumer’s prediction of which product they will buy
• Purchase Behavior--cons^er’s tendency to purchase based on inhibitors (Bray, 2008).
Engel-Blackwell-Miniard Model
The Engell-Blackwell-Miniard Model (EBM/EKB Model) was originally developed
in 1968 and has been through multiple revisions. This development of the model
increases its power due to advances in consumer behavior theory and knowledge. Many
elements in this model are similar to those in the Theory of Buyer Behavior, yet the
structure and relationships between variables slightly differ (Bray, 2008). The model is
structured around a seven-point decision process:
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6
Input Information Pn Dvcisiou Procvsi V arub lfs inflnrnring drrition proreis
S tim u li
Marketer
Esp<
1Attention
rCompreHeniiOTj
1rAcceptance -
1rRatantioa
N e e d
rocojBunon
In te rn a lT
Pi«-Puiclus«
Evaluation o f
Alternatives
C nn-.nmptinn
External
Post Consum ption
Evaluation
E nviro nm ental
Influences
Culture
Social Class
Personal influence
Fam ily
Situation
I n d iv id u a lD iffe re n ce s
tasouicas
Motivation and in vo K-ement
K n o w le d g e Attitudes
Personality, values
and lifestyle
Satiifaction
D iv»;tm ast
Figure 4. Engel-Blackwell-Miniard Model. Adapted from “Behavioral Models For Analyzing Buyers,” by
P. Kotler, 1965, Journal of Marketi ng, 29, p. 37-45.
Figure 5. Engel-Blackwell-Miniard Model: 7 Point Decision Process. Adapted from “Note on Consumer
Decision-Making Process: Consumers as Problem Solvers” by K. Matsuno, 1997, Babson College, 5.
These decisions are influenced by two factors: external variables and information
received and processed by the consumers with memories of previous experience.
Environmental influences include culture, social class, personal influence, family, and
situations. While individual influences encompass consumer resources, motivation,
involvement, knowledge, attitudes, personality, values, and lifestyle (Bray, 2008).
Model entry begins with need recognition when the consumer acknowledges a
difference between their current state and desired states. After a need has been recognized
the consumer searches for information internally and externally. The depth of the
information search depends on the complexity of the problem. Complex problems may
require external information searches, while simple problems may depend on a simple
internal search of previous behavior (Bray, 2008).
Alternative consumption choices are assessed based on beliefs, attitudes, and
purchase intentions. This assessment process is influenced by environmental and
individual variables. Intention derived from the model is portrayed as a precursor to
purchase. Environmental and individual influences are said to act upon purchase (Bray,
2008).
Consumption is followed by post-consumption evaluation, which provides
feedback into future external searches and belief formation. After consumption, a
marketer follows up when a consumer evaluates the choice made in selecting the
alternative they purchased. This builds long lasting relationships with the customers,
which can translate into long-term revenue due to customers retiring and becoming loyal
(Matusno, 1997). Divestment is portrayed as the final stage in the consumption process. It
acknowledges that the product purchased is to be disposed of at some point post
consumption (Bray, 2008).
Hierarchy of Effects Model/Engel-Kollat-Blackwell Model
The Hierarchy of Effects Model is also known as the Engel-Kollat-Blackwell
Model (EKB Model) of consumer behavior was originally developed in 1968 as a
framework for organizing the increasing body of knowledge regarding human behavior.
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Due to the increases in knowledge regarding consumer behavior it has gone through
numerous revisions to improve its descriptive ability and clarify the relationship between
component and subcomponents. It describes the consumer’s decision process and how
decisions are made when choosing among a list of alternatives (SueLin, 2010).
The Model builds on consumer psychological theories and models as well as
factors in the environment that influences consumer decisions. The Hierarchy of Effects
Model decisions are divided into cognitive, affective, and conative stages. These stages
represent the response that is required from consumers to be able to move along in the
hierarchy. The stages are made up of six decisions where information is processed:
Figure 6. Hierarchy of Effects/Engel-Kollat-Blackwell Model. Adapted from “The Impact of Advertising
Creativity on the Hierarchy of Effects” by E.R. Smith, J. Chen, X. Yang, 2008, Journal of Advertisi ng, 37(4), p. 53.
The cognitive category includes the steps of awareness and knowledge. Entering
into this model begins with unfulfilled needs and wants. Dissatisfaction between the
current state and desired state triggers awareness; awareness is when the customer
becomes aware of the product through advertising. This is very challenging because there
is no guarantee consumers will be aware of the product brand after they view an
advertisement. Consumers see many advertisements during the day but only remember
the brand of a small fraction of products. Internal motives, cultures, and values that are
reflected in lifestyle drive needs, decisions, and choices of an individual. External factors
such as new experience, information, advertising, and the existence and offering of
complementary goods and services can trigger the perception of difference between need
and want drives the purchase and consumption behavior. During this stage marketers can
make their product or service more desirable to consumers (Matsuno, 1997).
Knowledge is when customers begin to gain knowledge about products. An
information search is when a consumer is looking for more information, internally or
externally. An internal search is based off of information that is already known, while an
external search is the pre-existing knowledge of the product. In today’s digital world this
step has become more important as consumers will move to competitor brands if they do
not get the information they want. It is the job of a business to ensure that product
information is readily available for consumers. When a consumer searches for
alternatives, various channels for obtaining information can be used. These channels are
classified as impersonal, marketer, and personal. The impersonal category covers mass
media that provides general information; personal selling and point-of-sale advertising
are grouped under marketer. Friends, peer groups, and family are grouped in the personal
category (Matsuno, 1997).
Under the affective stage are the steps of liking and preference. The liking step
ensures that a consumer likes the products. An evaluation is conducted when enough
alternatives are perceived to be available and where a consumer considers the other
options that are available. This is influenced by internal and external factors that produce
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criteria in the forming of preferences, choices and decisions. The values, motives, beliefs,
perception, and attitudes of the individual guide the evaluation process. Internal or
external factors affect he assessment of choices. Factors that are considered are
effectiveness, quality, and cost. The preference stage accounts for the idea that consumers
may like more than one product brand and could buy any of them. This stage is where
businesses want consumers to disconnect with other rival products and focus on their
own (Matsuno, 1997).
The cognitive stage includes conviction and purchase steps. Conviction is when a
desire is created for the consumer to purchase the product. Businesses want the customer
to purchase their product, which is the final step. This stage needs to be simple so the
customer does not become frustrated and fall away without a purchase (Smith, Chen &
Yang, 2008).
Hawkins-Best-Coney Model
Figure 7: Hawkins-Best Coney Model. Adapted from "Behavioral Models for Analyzing Buyers/ by K.
Phillip, 1965, Journal of Marketing, 29, p. 37-45.
Long-term coherent interests and short-term emotional concern influence
consumers’ purchase decisions. The influence and role of cognitive and affective
processes in the consumer decision-making process are factored in to reach a better
understanding. Hawkins, Best, and Coney (1998) viewed consumer needs as a result of
numerous internal and external interactions that are grouped together under a consumer’s
self-concept and lifestyle (SueLin, 2010).
In the model, internal forces such as perception, emotions, learning and external
forces such as aspects of culture, family, and demographics can serve as influences of the
self-concept and lifestyle. These forces create needs and desires that drive the decision
making process. The Hawkins-Best-Coney Model (HBC Model) builds onto the
Hierarchy of Effects/EKB Model through a broadening of external and internal
influences that shape the individual (SueLin, 2010).
Affective processes refer to the emotions, moods, and feelings while cognitive
processes are not independent of one another. These factors play different roles and
trigger different outcomes in the decision-making process. The balances between these
two dictate a degree of impulsiveness. Consumers experience strong desires that
outweigh restraints. Consumers lose the power of self-control and make a purchase
(SueLin, 2010).
Emotions are recognized as an influence in decision-making. This model takes the
assumption that consumers approach consumption and purchasing decisions in a rational
manner by weighing options and alternatives before making a decision, an assumption
that is found in the Marshillian Economic Model. Similar to the Hierarchy of
Effects/EKB Model, the HBC Model looks at the decision process as rational, well
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thought-out and deliberated. Neither model addresses impulse buying, the process or the
factors that drive impulse purchases and consumption (SueLin, 2010).
The Decision Making Model
oAttention Directing Deliberation of Choices
oDecision to Purchase
Figure 8: The Decision Making Model. Adapted from "Experimental Study of Consumer Behavior
Conformity and Independence/ by M. Venkatesan, 1996, Journal of Marketi ng Research, 3, p. 385.
The Decision Making Model of consumer purchasing behavior includes three
stages: Attention Directing Stage, Deliberation of Choices Stage, and Decision to
Purchase a Product.
The Attention Directing Stage is when consumers are directed towards a type of
product that they want to purchase. The Deliberation of Choices Stage is when consumers
evaluate different options for a product. The Decision to Purchase a Product is when the
consumers make the decision to purchase a product (Venkatesan, 1996).
The influence of a group’s norm takes place during the Attention Direction Stage.
There are different forms of conformity, and these conforming influences have an effect
on the types of decisions that individual will make if they are being pressured to be
included with a group. When evaluating choices consumers are susceptible to influences
and the biases of other individuals (Venkatesan, 1996).
Conformity in Social Psychology
Conformity is an indication that an individual will agree to the position of a
majority. It is a type of social influence involving change in order to fit in and be
accepted by groups. These changes include a match in attitudes, beliefs, and behaviors to
group norms. Norms are implied and unspoken rules, which are shared by groups of
individuals that will guide their interactions with others.
Individuals view conformity as the shortest and quickest way to gain social
acceptance. People are more likely to approve of behavior that they similarly engage in
themselves. Individuals believe that others will compare their behavior and decisions to
their own when making social adjustments. People tend to identify with those they are
similar to rather than those they are dissimilar with.
Asch Conformity Study- A Social Psychology Experiment
The task of the Asch Conformity Study was to state which three lines were equal
in length to a comparison line. The subjects of this study were exposed to confederates
who were to provide a majority opinion that was contrary-to-fact of the appropriate
lengths of the lines. Asch found that 76% of subjects gave an incorrect response on the
length of lines due to conforming behavior influenced by the confederates. After
combining multiple trials, it was found that one-third of the time subjects conformed to
the incorrect group answer (Venktasen, 1966).
Even though participants knew the accurate line judgments, they chose to go with
the majority group decision. At the end of the experiment when subjects were asked why
they conformed to the answers of the confederates of the group, the majority of the
subjects stated that they knew the group was wrong. They did not want to face ridicule of
making a different decision (Venkatesan, 1966).
Conformity suggests that the fear of ridicule can influence individuals with the
need to fit in and a belief that other people are more informed or smarter. Based on the
level of conformity in Asch’s Conformity Experiment, conformity can potentially be
stronger in real-life situations where there are more stimuli that are harder to judge and
more ambiguous. Laboratory studies of social influences and conformity demonstrate that
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individuals are highly susceptible to group pressures. A majority of individuals will
conform to group norms, and even without a major influence from groups they can be
pressured to conform (Venkatesan, 1966).
The pressure to conform is based on the perception that groups are only accepting
of individuals who behave in a similar manner to them and follow the norms. Especially
since norms establish a range of tolerable behaviors or a frame of reference in their
buying behavior. So when buying products, consumers will conform to the purchasing
decisions of groups due to their desire to identify with these groups. Specific purchases
can lead to membership with those reference groups (Venkatesan, 1966).
Types of Conformity
There are three major forms of conformity that drives the influence of individuals.
Normative influence is the desire to be socially accepted which leads to individuals
conforming so others accept them. Informational influence is the desire of individuals to
hold an accurate view of reality, based on the idea that surrounding individuals possess
more knowledge about situations. The referent informational influence is the desire to
hold an accurate view of reality through social influence. Individuals adopt norms,
beliefs, and behaviors of out-group members (Papyrina, 2012).
Normative Influence
Normative influence is the tendency of individuals to conform to the expectation
of others so members of groups accept them socially. The theory of normative influence
argues that individuals conform because they believe that similarity to group members
raises liking. Agreeing with the group norm helps individuals fit in with the group and
avoid rejection (Papyrina, 2012).
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In the Asch Conformity Study, individuals who agreed with the group decisions
claimed that the decisions did not look correct to them. Still, since a different decision
was the norm, they followed in pursuit. The normative pressures individuals are placed
under are responsible for the outcome the Asch experiment (Papyrina, 2012).
Normative influence can additionally be divided into two influential behavior
styles: value expressive and utilitarian influences. Value expressiveness is the desire of
an individual to enhance their self-image by associating themselves with a group.
Consumers accept a product or service with the intention of the product choice affecting
their social identity. Utilitarian influence is the attempt of individuals to comply with the
expectations of others to achieve rewards or avoid punishments while maintaining their
utility, or happiness. A consumer’s attitude is based on their utility, and decisions change
around the amount of pain or pleasure they perceive product choices will bring them
(Papyrina, 2012).
Informational Influence
Informational influence is the desire to hold an accurate view of reality and the
ability to reflect the correct behavior for a given situation. When an individual in a
situation is unsure of the correct way to behave, they look to others for cues of the correct
behavior. Individuals conform because they believe that the interpretation that others
have made of an ambiguous situation is more accurate than their own, and conforming
will be the appropriate and accepted route of action. The judgments and choices that are
formed under informational influence are maintained regardless if other individuals in
groups can observe behavior decisions and patterns (Papyrina, 2012).
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Individuals can receive informational influence in three different manners:
compliance, identification, and internalization. Compliance is when an individual accepts
influences to obtain a favorable reaction from others. Individuals are in accordance with
the unspoken guidelines and specifications of the group. They stay close to the group
norm. Identification is when an individual performs behaviors that are accepted by the
group. They follow the model that they are provided with and stay with the group norm.
Internalization is when one group accepts influences from an expert because the values fit
in with their own system. The attitudes, values, standards, and opinions of others are
accepted into the group norm (Laseau & Zinkhan, 1993).
Referent Informational Influence
Referent Informational influence is based off of the Self-Categorization Theory.
This theory states that individuals will categorize themselves into groups based on
similarities that they have with others. This behavior adds towards conforming behaviors
because when individuals classify themselves as members of a group, they embrace the
attitudes of this group as their own. Once these attitudes are embraced, individuals begin
to behave more as group members. The shift of self-perception from personal identity
moves to a group identity as they assimilate into the group environment (Papyrina, 2012).
Individuals are more likely to conform in a public environment because the
presence of other group members will increase the likeliness of creating a common
identity with the group. Public compliance is the changing of behavior to conform to
expressed attitudes, coercion, or group pressure. Private acceptance is the private
acknowledgement of a standard and is the voluntary acceptance of influence, attitudes,
moral beliefs, values, and expectations (Laseau & Zinkhan, 1993).
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The Influence of Culture
East Asians Vs. Westerners
There is a common understanding among scholars of the differences in the
cultures of East Asia and West. However, there is not a deeper understanding of how
these cultures influences consumer-purchasing decisions. The ideals of these cultures and
how they influence the success or failure of a product in a global market is not widely
understood from the perspective of consumers choice consumption; yet an understanding
of this concept could be significant in aiding firms in considering whether a product is an
appropriate fit for a market. It is imperative to learn about the less implicit factors that
sway the success of product sales, such as cultural environments and values that influence
purchase choices (Liang & He, 2011).
Psychology aims to understand the universal aspects of the mental experience.
There is a broad difference in the way individuals of different cultures think and behave.
One of the biggest observed cultural differences in mindsets are between westerners (e.g.
Europeans or Americans) and East Asians (Liang & He, 2011).
East Asians are more likely to prefer compromise, while westerns are firm in their
opinions. This reflects two different types of conforming influences. East Asians are
more likely to agree to normative influences, and Westerners are more likely to conform
with informational or referent influences (Liang & He, 2011).
East Asians have a higher need for conformity. Studies conducted determined that
with purchase decisions, East Asians are more likely to purchase brands that have a low
perceived risk. Perceived risk is a consumer’s level of uncertainty regarding the outcome
of a purchase decision. Consumers try to reduce their anxiety by collecting more
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information and seeking recommendations of products from others before making a
purchase. It is the risk of major elements in consumer evaluation, choice, and behavior.
Consumer choice always involves risk and therefore, consumers use a variety of methods
to reduce this (Liang & He, 2011).
East Asians are more likely to base their behavior and decisions on their thoughts,
feeling, and the actions of others; therefore, they have a higher affinity to conforming
behaviors. They follow social norms because they are motivated by the need to be
positively evaluated by others and want to avoid the risk of being negatively evaluated.
Social norms make East Asians feel responsible, mature, and morally good (Liang & He,
2011).
Westerners on the other hand, have a stronger need for uniqueness. They want the
products they are purchasing to benefit them in a way that other products on the market
do not, as well as be different from those that the people they know have. This explains
why Westerners are less likely to conform to group norms (Liang & He, 2011).
Westerner’s behaviors are determined by their thoughts, feelings, and attitudes.
They do not allow external factors to dictate their decision making process. It is
important to them to be able to stay independent and different from others. They are
motivated by the idea of being unique, special, and separated from the masses. Western
culture does not view conforming, following group or social norms, and giving into
collective pressures as desirable (Liang & He, 2011).
McDonald’sin China
In the West, McDonald’s is treated like other products of modernization and
industrialization and is considered a simple necessity of modem life. In the East,
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McDonald’s products are considered a cuisine and McDonald’s considered a place where
people gain status. While efficiency and economic value are two important features of
McDonalds in the United States, it appears to be less significant in Beijing. The different
perception of McDonald’s between the East and the West is due to the different cultures
and behaviors of individuals in the culture. Analyzing social interactions in the Beijing
McDonald’s reveals that the company is represented differently in two different societies
(Watson, 2006).
According to James L. Watson (2006), companies like McDonalds have created
significant value by creating a bridge between cultures. The Beijing McDonald’s is
attractive to Chinese consumers because it is based on American culture. The Chinese
want a “taste” of America, this leads to the creation of a Chinese version of the American
fast food culture (Watson, 2006).
In-Group & Out-Group Behavior
Optimal Distinctiveness
□ Optimal Distinctiveness is a social psychology theory that seeks to
understand in-group and out-group behaviors OThe theory claims that individuals
desire to gain an optimal balance of inclusion and distinctiveness within and
between social groups and situations (Leonardelli, Pickett & Brewer, 2003). These
two motives are in opposition with each other; when there is too much of one
motive, the other one must increase to be able to counterbalance it and vice versa
(Brewer, 1991).
The Optimal Distinctiveness theory can be applied to consumers in the East
Asian and Western culture. Consumers who are trying to find a balance in their
19
purchasing behaviors would be considered an out-group, while the cultural groups
would be considered the in-group. Consumers are struggling to balance a
collectivistic culture with the desire of individualistic purchasing behavior. Younger
generations of Chinese residents are becoming more individualistic in a primarily
collectivistic culture.
□ tn m n m izm n m crn iiD □
The Minimal Group Paradigm investigates the minimal conditions required
for discrimination to occur among groups. Results of an experiment showed that
categorization could lead to in-group favoritism. This is explained by processes in
which people favor their own group in order to enhance their social self-esteem, it
can also be explained by assuming that people follow social norms that are
accessible to them (Hertel & Kerr, 2001).
This is similar to how cultural groups treat individuals based on their
purchasing behavior. Cultural groups are more favorable towards individuals that
follow the cultural norm-purchasing pattern. They are less favorable towards
individuals who have a purchasing pattern that does not follow the cultural group
norm. Favoritism is shown towards the individuals that have a cultural norm
acceptable purchasing pattern as they are considered the in-group. The out-group is
not looked upon favorably, which is why individuals who are more culture based are
less likely to make purchases that will place them in an out-group position.
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The Role of Relationships
Pressure from Social Groups
There is tendency of individuals to conform towards the group norm or modify
their judgments based on evaluations made or presented by others. Consumers will accept
information provided by others on the quality, benefits, style of a product, etc. and will
conform their behavior to their peer group because of social influences. The reference
group punishes nonconforming behavior by not including or accepting the individual
(Mandrik, Edward & Yeqing, 2005).
The social environment and habits influence consumer purchase decisions. The
individual aspiration for inclusions leads to conformity in buying decisions, and this
produces a consistent habit in purchasing. The ideas of conformity and consistency are
integrated into choice frameworks; choice frameworks are the structure of the choices an
individual can choose from. Choice frameworks are based on the utility an individual will
achieve. This utility depends on previous consumption, and due to conformity, it also
begins to depend on the consumption made by their peer group (Mandrik, Edward &
Yeqing, 2005).
Culture includes characteristics of a particular group of people, which can be
defined as religion, cuisine, social habits, music, and arts. Cultural variables influence
buyer behavior by affecting the consumption motives that set the criteria of choice of
goods for consumers determined by groups (Mandrik, Edward & Yeqing, 2005).
Cultures lead to the development of social and culture norms because of attitudes,
morals, and behaviors that are deemed appropriate by the groups. Individuals must follow
these to be accepted into the culture. The social pressures of cultures compel individuals
21
to conform to these norms. Individuals have been propelled to think that they must think,
feel, and act similar to each other in order to be accepted into the culture (Fish, 2012).
Marketing takes advantage of this frame of mind and plays on the tendency of
opinionated individuals establishing group norms and strictly complying with these
norms to drive product sales. Product are marketed in a manner where it is perceived that
noncompliance to purchasing is against ones cultures. Consumer product evaluations and
consumer purchase decisions become altered due to the amount of exposure an individual
has to cultural influences (Fish, 2012).
Culture persuades the way of thinking and values held by individuals. Their
decisions will revolve around making appropriate decisions based on cultural norms.
Commonly held values can shape the choice criteria of what is or is not valued to a group
and ranges among all categories of products. Groups sway the mindset of individuals,
groups have developed norms, and norms create biased buying behaviors; but norms vary
from culture to culture. It is detrimental to develop a global definition of the role of
cultural conformity in the global marketplace. To create a better predictor of consumers
purchasing decisions having there must be different understandings for different cultures.
(Fish, 2012).
Pressure from Interpersonal Relationships
Consumers are difficult to predict unless consideration is given to the role of
interpersonal influence on the development of attitudes, norms, values, and purchasing
behavior. Research shows that habit has an influence on individual purchase decisions
and lead to the tendency of people making consistent decisions over time (Spangenberg,
Sprott & Grohmann, 2003).
22
Consumer socialization is the process in which young people gain consumption
skills, value, and knowledge associated with being a consumer. This can range from
identifying with the role of being a consumer in society or the awareness of a problem.
Research has found that intergenerational influence, influence among several generations,
can affect marketplace beliefs, value, and behaviors (Spangenberg, Sprott & Grohmann,
2003).
As younger people age, their peers begin to have a stronger influence on the
purchase decisions that they make. There is often more frequent communication with
peers about consumption behavior and choices than with family. Young adults are more
strongly influence by their peers and ted to show less similarity with their parents in their
marketplace beliefs, behaviors, and patterns. This communication leads adolescents to
have stronger social motivations for consumption of certain good and more materialistic
attitudes overall (Spangenberg, Sprott & Grohmann, 2003).
Analysis/Recommendations
Conformity shows that an individual will match the behavior of the majority due
to the desire to be socially accepted. There is an overarching idea that people will be
more accepting of individuals that are more similar to them. This idea creates unspoken
guidelines and rules for behaviors and values, which are called norms.
The patterns of social conformity are clearly reflected in social psychology
laboratory experiments such as the Asch Conformity Study. Psychologists wonder if
conforming behaviors are easy to pinpoint in laboratory experiment; if individuals often
conform unknowingly in real life situations. Situations could include consumer-decision
making to purchase a product could be subconsciously influenced by social norms
23
Normative influence is when individual conform to the expectations of others
because of the desire to be socially accepted members of a group. Informational influence
is the desire to have an accurate view of reality and individuals are likely to look at others
for appropriate cues of ways to behave. Referent informational influence is when
individuals immerse themselves in the behaviors of a group due to their membership with
the group.
Culture has a large influence on the mindsets and values of individuals.
Commonly held values can shape the choices that individuals make during their
purchasing decisions. East Asians are more accepting and actually value conforming
behaviors, while Westerners are the opposite and value uniqueness. This leads to the
understanding of how individuals make their purchases, how culture has an impact on
consumers and society, as well as how purchases through cultural norms are made.
Interpersonal relationships have a strong influence on purchase decisions. The
individuals that have a large influence in the lives of consumers can have a large impact
on how decision-makers craft their choices. These individuals can sway decision-makers
at delicate points of the decision making process. This also holds true for the influence
that social groups and culture have on the decisions that an individual will make. They
will make their decisions in accordance with what they know will be accepted and will
not be accepted.
The self-prophecy effect addresses the idea that behavior changes occur in the
direction of social norms. The importance of accurately predicting consumer-purchasing
decisions is invaluable. This effect proposes that individuals are asked to predict their
24
future purchase decisions, which helps marketers in their own endeavors. Wide-scale use
of this theory will influence normative behaviors of large segments of consumers.
Conclusion
The social pressures that are placed on individuals push them to conform to
behavior and choices that are accepted by their cultures. Conformity is the idea that
people need to please group members to gain acceptance, to make an accurate decision,
or embrace behaviors because of the membership of a group. People tend to follow
consumption choices of other members of their group to follow the group norm
regardless of their personal preference.
It is important for individuals to gain acceptance and establish a common identity
with a group, and this all occurs through the emulation of specific consumption choices
that are similar to other group members. If all markets have significant patterns, it is
possible to predict the lifecycle and success of different products in different markets.
Understanding the consumption choices of individuals from different cultures is
imperative since there are different attitudes, belief, and morals they are taught which
alters purchasing decisions.
There is not one universal model of the purchasing process, so the knowledge that
is acquired about culturally influenced product consumption needs to be incorporated into
the numerous purchasing models available to marketers. By learning the way that
consumers reach their decisions and how different variables affect the purchasing
decision, an insight in the influence of conformity can be viewed in the consumer-
purchasing environment.
25
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Name of Candidate:
Birth date:
Birthplace:
Address:
Namisha Balagopal
August 21, 1993
Salt Lake City, Utah
1549 East 8640 South Sandy, UT- 84093