The Impact of Subculture - Research Paper Example

The Impact of Subculture On Consumer Behavior Full Subculture refers to the pockets or segments of culture that show variations in attitudes, customs, values and norms as a result of geographical distances or the departmental aims or job requirements of an organization. Some subcultures have a major impact on the organizational policy, whereas others are barely conspicuous and unimportant. This paper attempts to explore the impact subculture has on consumer behavior. Consumer behavior is affected by both internal and external influences. External influences include subcultures. A subculture differentiates between segments of population by religious, geographical, ethnic and religious characteristics. The paper discusses the different types of subcultures. The age and the ethnic subculture are discussed in detail. Due to the varied nature of consumer preferences that have emerged as a consequence of subcultures, the managers have to spend time and resources in construing a marketing mix that caters maximally to the diverse needs of consumers. Keywords: subculture, culture, values, age, ethnicity, consumer, preferences The Impact of Subculture On Consumer Behavior A business culture is defined as the set of shared values, perceptions, attitudes and the philosophies of an organization. These values are instilled into the employees through the mission statement of the organization. The mainstream culture of the organization is reflected in its subcultures. Consumption helps to construct an identity for the consumer (Saren, 2007). Subculture refers to the pockets or segments of culture that show variations in attitudes, customs, values and norms as a result of geographical distances or the departmental aims or job requirements of an organization (BusinessDictionary.com, 2010). The Consumer Culture Theory helps to explain the relationships between the consumers, their consumption practices and their socio-cultural systems and analyzes cultural meaning systems (Arnould & Thompson, 2005). Subcultures operate within the broader perspective of the professional culture; yet, subcultures are different from the main culture since the people forming the subculture have some degree of difference in their values and behaviors. There are various types of subcultures present in an organization. Some subcultures have a major impact on the organizational policy, whereas others are barely conspicuous and unimportant. This paper attempts to explore the impact subculture has on consumer behavior. Gattorna (2009) observes that the dynamic alignment concept involves the alignment and integration of four elements: the market place, the responses to consumer demands, the internal cultural capability and leadership style. The importance of subculture in execution can be understood by the fact that the problems that emerge at the crossing point between the strategies of the business and the cultural capability of the firm present as one of the biggest hurdles to the effective implantation of the dynamic concept. The impact of subculture on the approach used for dealing with customers is also apparent by the way supply chains are formed. There are four generic supply chains that are present in a business organization. One of the supply chains is the continuous replenishment supply chains, where relationships have the most importance. This type of supply chain emphasizes upon the relationship between subculture and the customers. In continuous replenishment supply chains, factors such as span of client relationships, extent of information that is communicated between the service provider and the user, and the fraction that suppliers form of a particular consumer’s expenditure in a product type. Stress is on the maintenance and preservation of the relationship with the customer for long periods of time. In order to attract and retain customers, the relationship subculture comes into play. Agile supply chains also influence consumer behavior. In such supply chains, the promptness of response to the customer is of the utmost importance. This time sensitive approach allows the development of an aggressively customer-focused subculture (Gattorna, 2009). The internal culture of an organization plays a significant role in implementation of the value propositions that address the range of buying behaviors that are rampant in the market. Organizations that have aligned their internal culture with the buying behaviors of the customers are successful; cultural considerations are the prime reason for their success (Gattorna, 2008). Before proceeding on to the impact subculture has on consumer behavior, it is worthwhile to understand what consumer behavior is. Consumer behavior is defined as “the totality of consumers’ decisions with respect to the acquisition, consumption and disposition of goods, services, times and ideas by human decision-making units over time” (Hoyer & Macinnis, 2008). It refers to the actions that are undertaken by a consumer to identify and buy a product or service using mental processes both before and after the purchase. Before making a purchase, the consumer goes through a systematic behavioral process. The first step in this process is the identification of the good or service that the consumer needs, followed by looking up the options that are available in the market to meet that need. The individual then assesses the value of the options that are available and how well they would satisfy his or her need. Then the consumer is involved in a process of decision-making regarding the supplier from whom to purchase that particular good or product. After purchasing the product, the consumer relates his experience of the product to his or her expectations (San Diego State University, 2009). If the customer is not satisfied, he or she exhibits a “consumer revenge behavior”, which is influenced by cultural values as well (Zourrig, Chebat, & Toffoli, 2009). Keeping this process in mind, one can then analyze the psychological factors than can impact consumer behavior. The values and beliefs of the individuals are significantly shaped by the society the individual lives in and is discussed in greater detail later. However it should be noted that factors that promote consumers to buy a certain product can also encourage consumer misbehavior; understanding the totality of consumer experience also requires study of negative consumer behavior (Fullerton & Punj, 2004). According to Lake (2009), consumer behavior is skewed. There are no fixed or utter realities governing consumer behavior. The decisions made by consumers are influenced by a number of factors, which can be grouped into internal and external influences. Internal influences encompass the lifestyle, attitudes, roles etc of the customers. On the other hand, external influences include the cultures, subcultures, household structures, and the groups that impact the customer. Consumers are affected by several external influences. These are referred to as external because the cause of these influences comes from the exterior or the outside, rather than from the internal emotional or mental perceptions. These influences are also known as sociocultural influences since they develop from the informal or formal interactions the customer has with other people. The culture of a person has an effect on his or her beliefs, attitudes, opinions and values. These factors in turn have a direct impact on the buying behavior of the individual. Culture also fulfils the emotional requirements of the individual; in return, the customers are inlvolved in safeguarding and upholding the ideals and norms of the culture. This relationship is imbued in their behavior as customers. Culture can also generate certain customer needs that were not personally demanded by the customer earlier. Cultures also tend to influence the level of satisfaction that consumers derive from buying certain products and services. Goods that are reflective of the cultural values of the customers have better chances of surviving in the market and being in higher demand than goods that are not representative of the customer culture. Moving on to organizational subcultures, the subculture represents a faction of people with shared cultural traits. A subculture differentiates that group of people from others based on their nationality, religious beliefs, ethnicity or geographical differences. The customer is affected by the subculture of the organization such that these differences can be exploited to attract customers. The change from modernity to postmodernity has seen significant changes in the consumption patterns. According to Cooper, McLoughlin and Keating (2005) postmodern consumers are striving to balance the differentiating aspects of their behavior and consumption facilitates this integration and differentiation. Lake (2009) states that of the factors that leverage consumer behavior, the disposition of a consumer towards a specific good is one of the significant ones; culture influences the needs and wants of a customer, since all aspects of life are carried out against the background of the society in which the customer resides. McDonalds is one company whose marketing strategies reflect the cultural values of the consumers. Their marketing strategy is centered on the cultural and historical phase that the country is going through. In the 1970s, they promulgated a marketing strategy that focused on the customer; however, the Deep Recession of 1990 showed a change in their marketing strategy, using the concept of the “new reality”. Later on, the strategy changed with the shift in cultural trends that had occurred after the country had come out of recession. Cultural values dictate the person’s disposition and degree of effort that he or she is going to put into the acquisition of a state of existence that satisfies him or her. This state of existence is affected by values such as a comfortable, exciting life, purchase of products that are readily available at reasonable prices, and that the product is reliable and worth investing in. It follows that consumer behavior depends on the purchase and the consumption of goods that are relevant to them in light of their subcultural differences (Vijendra, 2009). In industrialized societies, the culture is more saturated with the satisfaction of needs and wants through advanced technology. There is also more awareness for looking more beautiful and living a healthy lifestyle. In contrast to that, the cultural norms in developing countries shape a different consumer behavior. Consumers who are self-aware are more conscious of their attitude and marketers can manipulate this intentionally to their advantage. Self-aware consumers rely on their internal preferences for choosing products and may also cause implications for marketers since it is difficult to induce customers that are self-attentive (Goukens, Dewitte, & Warlop, 2009). Where it is easier to understand the mainstream culture and develop marketing strategies accordingly, the scope of subculture and its impact on consumer behavior requires more analysis in order to devise effective marketing strategies. Where consumers of one nationality migrate to another country, they take their culture along with them. As the number of such migrants increase over time, and as they start spreading throughout the area with successive generations, the catering of the needs of this group of individuals becomes important. This can be demonstrated by the fact that there are many cultural variables that control consumer behavior. They can include the language the particular group of people with homogenized interests converse in, the values of these people, their demographics and their nonverbal communications. The consumer behavior, as mould by these elements, crafts the marketing strategy that is to be employed by firms to promote their sales and to advertise. Etiquette is a nonverbal form of communication. Subcultures based on religious or ethnic beliefs that differ from those of the general population of the area will have differing perceptions regarding what is classified as ethically and socially acceptable. Therefore, when purchasing a product or choosing a service, they would prefer those commodities that are reflective of their etiquettes and social values. The consumer behavior would be driven to those goods and services that are not in conflict with their beliefs, or allow flexibility that accommodates their set of values. For example, Muslims do not consider that the interest levied on loans is lawful. It is a religious belief, and this influences their consumer behavior. As a result, they would not prefer banking services that give out loans on interest or charge interests on other banking services as well. Subcultural rituals that emerge due to differences in consumers coming from different social backgrounds and cultures affect the demand for objects associated with these rituals. For example, Christian weddings would require the bride to wear a wedding gown, whereas eastern weddings, like those in India, culturally drape the brides in specific cultural attires (lehangas). The number of Indians in the US is increasing rapidly. Indians would therefore constitute a subculture in the country. There preferences for traditional attire would rule out the general demand for wedding gowns in the country. Religious festivals, like Eid, Pesach and Christmas, will also influence customer preferences and their buying behaviors. There are also certain dimensions of culture that are relevant to consumer behavior. These include power distance like the equality and informality, uncertainty avoidance where subcultures might be more comfortable in not knowing about some things, gender equality and the issue of individualism vs. collectivism (Rutgers, 2008). There are also certain cultural superstitions that would direct consumer behavior to prefer a certain product. These needs are superficial, and people would seek certain commodities because they perceive that they have to. Such myths can include drinking hot fluids when a person catches a cold, or throwing salt over the shoulder after one spills it. Moreover the preferences of children in single parent households are different from those in blended households. Single children often have a greater influence on the choice of a large item than children belonging to intact families (Tinson, Nancarrow, & Brace, 2008). Age subcultures are a type of subcultures. Age subculture refers to the changes that occur in individuals as they pass through different stages in life and how their values, lifestyles and consumptions change over time. It is also known as the generation gap. Teenagers form a distinctive age culture, one that is not limited by national boundaries. They have increasing spending powers and are quick to buy new products. In the US there had been four major age trends: baby boomers, Generation X, Generation Y and the elderly. The baby boom generation refers to the Americans that were born between 1946 and 1964 and have similar lifestyles; their number totals to approximately 77 million (Blythe, 2008). They have a high level of education and spend more and save less. They prefer fashionable products and use credit cards to buy up-to-date technology for exercise. They also prefer more environmentally friendly products. The Generation X is small in number (40 million), but has a discretionary income of $125 billion. This group of people is more materialistic and inclined towards religion. They show distrust towards marketing and are less inclined to work hard. Generation X buys products that are practicable. This age subculture group is different from other groups in using communications equipment to stay in touch like e-mail, cell phones and beepers. Generation Y refers to the 72 million children of the baby boomers. These children are classified as Generation Y on the basis of first becoming an adult in the year 2000. This group is more diverse than the baby boomers. The elderly form the fourth age subculture in the US. They are fastest growing section of the population and it is expected that the number of people aged 65 years and above in the US will outnumber the teenagers two to one by the year 2010 (Rutgers, 2008). The consumer preferences of the elderly will differ from those of other age subcultures since the elderly would opt for heath care services, walking aids etc. Ethnic subcultures also exist in the US and the fraction of non-Whites is increasing in the US over the passage of time. African-American subculture forms about 13% of the population in the US. Income deprivation is a noteworthy element that affects the African-American community, with approximately one-third of the African-American families having an income of $50,000 or more. With $207 billion purchases in 1999, the community is the ninth largest economy in the world. After the African-Americans, the Hispanic subculture is the growing the fastest. The consumer preferences for this group of individuals are dependent on their Catholic adherences, Spanish communication and their trend to live in cities. The Asian-American subculture is also growing at a fast rate in the US. Statistics indicate that the proportion of students with Asian-American roots is double that of white Americans. Moreover, the incomes of Asian-Americans are relatively higher than their subculture counterparts. The consumer behavior of these subcultures differs to some degree. African-Americans and Hispanics often bargain more than Asian-Americans. Asian-Americans are also seen to manifest differences in the decision-making of spouses, influencing their consumer behavior. Studies have shown that differences in across category product selections tended to have a leaning towards the male’s choice rather than the female’s (Ward, 2007). Social class also gives rise to subcultures based on their status and financial reserves. These groups distinguish themselves from each other in the manner of how they interact, speak, socialize and spend money. Social class is a better indicator of how the values of a consumer can dictate his or her spending patterns and preferences. People who are relatively well off are seen to invest more in costly appliances and on maintaining a luxurious lifestyle. People may seek particular services and goods as a status symbol or to promote their social standing (Hoyer & Macinnis, 2008). Lower class consumers have poorer lifestyles than upper class and so are directed to buy goods at low costs (Lamb, Hair, & McDaniel, 2008). Thus, in conclusion, consumer behavior is affected by both internal and external influences. External influences include subcultures. Subcultures refer to the subdivision of the mainstream culture that is depicts certain similar traits different from the general population. A subculture differentiates between segments of population by religious, geographical, ethnic and religious characteristics. Due to the varied nature of consumer preferences that have emerged as a consequence of subcultures, the managers have to spend time and resources in construing a marketing mix that caters maximally to the diverse needs of consumers. On the other hand, firms can harness these cultural differences in by attracting certain segments of the society based on their ethnicity or age. A successful firm is one that can analyze the changing cultural trends and to formulate product development strategies that are aligned with the cultural values of different subcultures. One way of understanding consumer needs is through virtual brand communities. These communities encourage the participation of customers since they are able to build on the trust of the customers (Casaló, Flavián, & Guinalíu, 2008). Reference List Arnould, E. J., & Thompson, C. J. (2005). Consumer culture theory (CCT): Twenty years of research. Journal of Consumer Research, 31, 868–882. Blythe, J. (2008). Consumer Behavior. 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