Customers’ Black Box – Social And Cultural Factors

Have you ever wondered how society affects your clients’ consuming behaviors or how it even affects you as a consumer? Today we focus on the social and cultural parameters that seem to play such an important role.

Social factors

• Culture and subculture
  Culture describes several aspects of a particular civilization. The subculture refers to the special categories shaped between smaller groups of people. The nationalities and cultures of certain regions are perfect examples of subcultures. The big umbrella of the culture holds information about people’s beliefs, priorities, values, and the general mindset. It also influences what these people will consider being their needs. Needs are often confused with desires, and people tend to think they need something only because they want it very much. Assuming that the product’s value will resolve an issue, they may purchase items that are not necessary. Culture grows this behavior, and consumption is a significant aspect of the modern world’s culture.
• Social class
  A series of features and characteristics determine social classes. They are present in almost every society around the world. In each part of the globe, the classes differ in terms of how they are built, but some general rules apply everywhere. The parameters associated with a class are many, including wealth, education, income, and occupation. So education is proven to be related to occupation and, therefore, the individual’s salary. Wealth is a result of a good education, but it is also why someone may study at a good university in the first place.
  It is actually remarkable how social classes have been divided and where most people are believed to belong. It is estimated that 7% of the population belongs to the lower class and 9% to the upper lower class. The working class includes 38% of the population, while the lower middle class comprises another 32%. At the upper layers of the pyramid, we have the upper-middle class with 12% and the lower upper class covered by only 2% of the population. The top of this structure is occupied by the upper-upper class consisting of the left 1%. As you notice, the extremely poor are still much more compared to the extremely rich. Still, it is not those who consume the most products on Earth. In most developed countries, the boundaries between classes can be crossed, and people of lower classes can step into higher social classes.

Cultural factors

• Reference groups
  The reference group is the group of people whom the consumers compare themselves to. The schoolmates make a good example of a reference group. Even though the pupils of a classroom may not all be friends with each other, they all interact and get compared several times throughout the evaluation process and their grades at the end of the semester. When the kid tries to compare itself to others, it will choose people of the same age and people it has already been compared to. When it comes to buying shoes for Christmas, the child will probably choose the ones the classmates have.
• Family
  Family is not only an environment we compare ourselves to, but it also provides models. They are considered the core of consumer behavior regarding social and cultural factors. Their influence is so significant and on so many levels that consuming choices could not be left out. If the family can affect how we talk and behave, won’t it affect what we buy?
• Roles and status
  The roles have to do with what the person has to do in society. If the individual plays golf, they will have to buy the equipment to play their favorite sport and rent the court to practice their skills. Status and roles are in deep connection. People’s choices regarding where they want to be placed in society will lead them to prefer certain brands in all product categories. The upper the individual’s social class, the more likely it is to find them obsessed with their status. People of high status make good customers, and no one wants to miss those.

Have you read?
Fighting Bias and Barriers: The Present Battle for Women Entrepreneurs by Vanessa Lau.
AJ Osborne’s Mission to Resurrect Capitalism For The Everyday Investor.
Unlocking the Secrets of Success: Johnny Pineyro Reveals How Finding Balance Can Transform Your Life and Career.
How to Book Your First Yacht Charter to Improve Your Trip’s Success by Scott Lieberman.
Cultivating contrarian thinking in corporate strategy by Francisco Orduna.