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).

2

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).

4

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:

5

6

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Marketer

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1Attention

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1rAcceptance -

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In te rn a lT

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Evaluation o f

Alternatives

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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.

7

8

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

9

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

11

12

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

13

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

17

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

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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.

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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

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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