CB8

Locate one or more consumers (perhaps family member) who have emigrated from another country.

How did they adopt to their host culture?

In particular, what changes did they make in their consumption practices over time?

Leaving one country and settling down in another entails a series of challenges and questions for immigrants. Two questions that all immigrants have to address are: "to what extent are cultural identity and characteristics considered to be important, and their maintenance strived for," and "to what extent should they become involved in other cultural groups, or remain primarily among themselves"

Acculturation : When individuals or groups of people transition from living a lifestyle of their own culture to moving into a lifestyle of another culture, they must acculturate, or come to adapt the new culture's behaviors, values, customs, and language. The word 'acculturation' is the act of that transition.

Yes, there are many people who have to adapt to the new culture when they migrate from one country to another country. I have witnessed many of those examples myself. Some of my relatives have just migrated from another country to Nepal and they are having problems adapting to new culture of the host country.

Acculturation theory explains how individuals from a  cultural background react when in contact with another culture (mostly in the context of immigration). The theory posits that, depending on how these individuals react to the “host” culture and how much of their “home” culture they retain, individuals will either integrate, assimilate, reject or become marginalised. From a marketing perspective, we can see examples of all four categories occurring in contemporary (marketing) communications: For example, integration can be seen in the case of global celebrities endorsing local products, merging both home and host culture. Similarly, assimilation can be seen in contemporary communication where “culturally others” have become completely integrated (or assimilated) into their host culture; relinquishing their “home culture”.
A typical example of “rejection” directed marketing can be seen in advertising directed specifically at certain groups, emphasising ”home” culture. Examples can be found on television stations specifically targeting certain ethnic groups, which link consumption of particular goods to cultural origin.
Lastly, “marginalisation” targeted advertisements are typically adverts that are culture free, pan-national advertisements.

There are many factors affect the nature of the transition process. These include individual differences such as whether the person speaks English. Several processes come into play as immigrants adapt to their new surroundings. Movement refers to the factors that motivate people to physically uproot themselves from one location to another. On arrival, immigrants encounter a need for translation. This means they try to master a set of rules to operate in a new environment, which might include learning the new currency. The learning leads to a process of adaptation by which people form new consumption patterns.

During the overall process, many immigrants undergo assimilation where they adopt products, habits, and values they identify with the mainstream culture. At the same time, there is an attempt at maintenance of practices they associate with the culture of origin. Continued identification with their original culture may cause resistance to their new identity and roles. Immigrants tend to exhibit segregation in that they are likely to live and shop separately from mainstream consumers.

CB7

Both personal and social conditions influence how we spend our money. Explain.

The field of behavioral economics studies how consumers decide what to do with their money.

Consumer confidence—the state of mind consumers have about their own personal situation, as well as their feelings about their overall economic prospects. It helps to determine whether they will purchase goods and services, take on debt, or save their money.

Overconfident consumers :We all try to be optimistic about the future. But overconfident consumers wear rose colored glasses when it comes to how they'll pay tomorrow for what they buy today. They have little or no savings and they often overestimate future earnings based on credit limits. An overconfident consumer is more likely to buy big ticket items.

Status seekers are willing to go into debt to achieve a desired standard of living. And if their income falls, they can't ratchet back their lifestyle. They always have to own the latest, greatest stuff, and they

figure that if their neighbors have a BMW, then they deserve one, too.

 Smart shoppers can easily differentiate between needs and wants, and mostly stick to buying what they need. Though they may splurge occasionally, they comparison shop whenever possible to get the best price.Smart shoppers also have their wits about them regarding the long-term effects of their purchases. They don't buy if they don’t know where the money will come from and it follows that they pay off

their debt monthly. Smart shoppers stockpile their extra cash in savings so they have a cushion for unexpected expenses.

People who occupy different positions in society consume in different ways, which helps create a unique lifestyle. Consumer demand for goods depends on their ability and willingness to buy.

Social class can have a profound effect on consumer spending habits. Perhaps the most obvious effect is the level of disposable income of each social class. Generally, the rich have the ability to purchase more consumer goods than those with less income, and those goods are of higher quality . There is also a distinction in the type of goods purchased. For example, the upper class tend to be the primary buyers of fine jewelry and often shop at exclusive retailers. The lower class, in contrast,are much more concerned with simply getting by; they focus more on necessities.

We group consumers into social classes that say a lot about where they stand in society. Briefly explain.

Social class is measured in terms of status; a person belonging to a particular class is said to hold status similar to members of that class. So social class is defined in terms of the amount of

status the members of a particular class relatively have, in comparison with members of other social classes. Broadly speaking, the stratification into varied social classes, is done on the

bases on three factors, viz., wealth (economic assets) power (ability to exert influence over others) and prestige (recognition received). However, marketing academicians and researchers, as well as consumer researchers, define status in terms of demographical variables like income, occupation and education; in fact, the three are interrelated and thus, used in conjunction to each other.

Social class is hierarchical in nature. The social-class categories are ranked in a hierarchy that ranges from low to high. Based on education, occupation and income, the society is divided into various ranks, such that people in a particular rank are similar to others in the same rank and different across various ranks. So members of a particular social class view themselves as a) having a status similar to others in their own class; and b) having a status high or low than members of the higher or lower class. Based on the social class, they view themselves equalto other (in the same social class), inferior to others (from higher social class), and superior to others (from lower social class).

The hierarchical structure holds relevance for a marketer.

- First, marketers can use this as a basis to segment the market; the various strata provide a

basis for market segmentation.

- Two, when people are “other-directed” or susceptible to social influence, they would buy such

products and services and/or brands that people from their respective social classes purchase.

This is because they look for social approval. So they would purchase certain products and

service offerings and/or brands because they are used and favored by members of their own

class.

- Third, people are class conscious and relate brands to their social class; thus, they would buy

brands which they feel relate to their “class”, and would avoid brands that they relate to “lower-

class" products. There are social-class influences on the actual consumption of products.

-Fourth, the higher social class or the upper social class also acts as reference groups, for

people in the lower class. The latter aspire to emulate the former and desire buying products

and brands which the former buy.

A person’s desire to make a statement about social class influences the products he likes and dislikes. Elaborate.

People within a social class are similar to each other. This similarity is not only witnessed in terms of their education, occupation and income, but also their thinking, values, norms, attitudes, lifestyle and behavioral patterns. There is similarity among members within each social class and dissimilarity with between social classes.

Social classes are defined as groups more or less homogenous and ranked against each other according to a form of social hierarchy. Even if it’s very large groups, we usually find similar values​​, lifestyles, interests and behaviors in individuals belonging to the same social class.
We often assume three general categories among social classes : lower class, middle class and upper class.
People from different social classes tend to have different desires and consumption patterns. Disparities resulting from the difference in their purchasing power, but not only. According to some researchers, behavior and buying habits would also be a way of identification and belonging to its social class.
Beyond a common foundation to the whole population and taking into account that many counterexample naturally exist, they usually do not always buy the same products, do not choose the same kind of vacation, do not always watch the same TV shows, do not always read the same magazines, do not have the same hobbies and do not always go in the same types of retailers and stores.
For example, consumers from the middle class and upper class generally consume more balanced and healthy food products than those from the lower class.
They don’t go in the same stores either. If some retailers are, of course, patronized by everyone, some are more specifically targeted to upper classes such as The Fresh Market, Whole Foods Market, Barneys New York or Nordstrom. While others, such as discount supermarkets, attract more consumers from the lower class.
Some studies have also suggested that the social perception of a brand or a retailer is playing a role in the behavior and purchasing decisions of consumers.
In addition, the consumer buying behavior may also change according to social class. A consumer from the lower class will be more focused on price. While a shopper from the upper class will be more attracted to elements such as quality, innovation, features, or even the “social benefit” that he can obtain from the product.

CB6

High schools have all types of reference groups, with members representing all types of social power. Think back and try to identify people who had the following types of power.

Referent power, Information power, Legitimate power, Expert power, Reward power

Coercive power

Humans are social beings as such we belong to groups, try to please others, and look to others’ behavior for clues about what we should do in public settings.

The groups we look to for guidance – our reference groups – may be actual or imaginary. They influence us in three ways.

The information influence means that others provide information on consumer choices.

The utilitarian influence means that our choices are influenced by important others.

The value-expressive influence means that the individual uses the consumer choice to express values consistent (or not) with the group.

Reward Power : The perception that you will be rewarded by a group or other environmental influence for certain behavior. The more valuable the reward the greater the power. Rewards can include intangible things such as praise or honors as well as money, goods and services.
Advertisers frequently use reward power to influence consumers by implying love , happiness, popularity, and success will be yours for using their product. Rewards are used in direct selling of products by companies such as Amway, Magic Chef and Tupperware. Their sales people hold sales rallies and receive large rewards, swimming pools and motor homes, for promoting their products.
In high schools, generally teachers have reward power. They can use the reward power to get things done from the students. Students do complete their assignments on time to get good grades.
Coercive Power : This power influences behavior with fear or the withholding of rewards. This is seldom physical punishment, but subtle psychological detriment or loss of reward.
Coercion is intended to frighten or scare the consumer by showing the unfortunate results that can occur if the item is not purchased, such as being shunned for bad breath or dandruff. However, if it is demonstrated that buying the product will make the problem go away, it is reward power. Coercion is unpleasant. People don't like viewing disagreeable things and will turn-off. Coercive ads that do not alienate the consumer are difficult to design, but good ones are very successful. Remember the egg frying in a pan and the caption, "Your Brain On Drugs" .
Again, teachers mostly have coercive power. They can make things done from students if not by reward then by using coercive power. They usually give punishments which is not physical but psychological like giving NQs to students.

Information power exists when someone knows something others would like to know. This is a short-term power that doesn't necessarily influence or build credibility.

In high schools, students sometimes are need of the information about college programs or related activities. At those times information power is generally held by the administration, teachers, club members who have information in that area.

Legitimate Power : Group members' perception that the group has the legitimate right to influence them. Expressions such as "should", "ought to", "must", give legitimacy to expected behavior from a group such as family/parents, teachers, or religious organizations.
Advertisers appeal to the consumers moral values such as ads by charities, non-profit organizations, alumni associations, Salvation Army and Save the Children. Advertisers also use the organizations that represent authority and knowledge to validate products such as AMA for medicines, AAA for car service, or ADA for diets.
Mostly the administration of high schools and some of the teachers have legitimate power. They have authority over any situation happening inside the school. They have certain set of rules for the students to make them behave on moral grounds.
Expert Power : People accept the influence of individuals who are known experts recognized for their expertise. Teachers are subject experts and their students accept their instruction.
Salespeople frequently demonstrate their knowledge of the products they sell to customers. The power is strongest if the expert is not paid to promote the product, but is unbiased. Fictious experts are effective in spite of being supported by the producer, such as Mr. Clean, Betty Crocker, etc. This is related to Ads that provide evidence of tests and lists of ingredients, and performance data which use "information" as expert power.
In this case also as subject teachers are expert in their respective subjects, they have expert power.
Referent Power : An individual's identification with a group grows as s/he associates more with that group. The stronger the relationship the greater the influence of the group and certain members of the group on the individual. If the individual maintains the identification with the group, the greater its referent power.
Advertisements show ordinary people, like you and me, using the same product brand as popular role models or heroes. Movie and sports stars are frequently used for their referent power. Status symbols are often recommended by celebrities.
Referent power is held by teachers and senior students in high schools. Mostly students tries to copy their friends, seniors so that he/she can also be associated with that group.

CB5

The mall of the future will most likely be less about purchasing products than exploring them in a physical setting. Retail environments will have to become places to build brand images, rather than just places to sell products.

What are some strategies stores can use to enhance the emotional/sensory experiences their customers receive?

Most buying decisions take place in the store. A retailer therefore has every opportunity to work on its brand identity in the store, as a manufacturer does not. Retailers face the challenge of focusing on all the senses. The result is sometimes visual pollution, and consequently some retail brands miss the opportunity to strengthen their emotional bond with their customers because of all the clutter. However a strong retail brand will recognize that its personality has to be translated into distinguishable style attributes like colors, shapes, materials, sounds, smells and other sensory appeals. By doing this retail brand can develop a distinctive looks and feels for its in-store communications.

Some of the strategies stores can use to enhance the emotional/ sensory experiences their customers receive are:

Store design and visual merchandising :

Store design and visual merchandising can fulfill both rational and emotional wants. The emotional function is mostly about making shopping more fun. The look and feel of the store design and visual merchandising influence the customer’s perception. A pleasant look and feel can lead to a positive emotional response, making shopping more pleasurable. The design of a store is broadly comparable to the packaging of a manufacturer brand. It should communicate the positioning and personality, add value to the merchandise and be efficient and effective. Visual merchandising means bringing the retail brand to life and dramatizing the merchandise offer. Immediately preceding a purchase decision, visual merchandising can be the most powerful, most effective communication tool for a retailer. In reality however, many stores do not make the most of the opportunity to seduce consumers. Many stores  are very boring and predictable.

The look and feel of a store’s design and visual merchandising is about colors, shapes, materials, scents, sound, lighting and other sensory experiences. They can evoke both positive and negative emotions in consumers. And these emotions have a big influence on their buying behavior.

The design of the store will include its exterior, interior, lighting, layout , fixtures all functioning together to create a unique brand personality.

Multisensory communication

Shopping is a multi-sensory experience, so a retail brand should be a sensory experience. Sensory associations can result in a strong emotional engagement and can therefore provide a retail brand with a lead over the competition. They can create a unique look and feel for the retail brand. Multi-sensory communication can even be the key differentiating factor between retail brands. After all, all the impulses of the five senses make up the brand experience.

Employees

 They are the link between the customer and the retail brand. They are almost the brand themselves, and can make a real difference in retail. That is why internal branding is so important. Every employee should know exactly what the retail brand stands for. They are almost the brand themselves. The millions spent on advertising, direct marketing communications, store design and visual merchandising will be wasted if a customer has a bad experience with an employee. Strong retail brands therefore spend time, money and energy making sure that external an internal branding connect well. Employees who understand what the retail brand stands for and also believe in that can become true brand champions, because every contact with an employee is a moment of truth. In many cases employees are the top priority in building customer loyalty. The human touch can determine the winners and losers in retail, and can make the difference with online retailers. Committed employees lead to customer satisfaction and retail brand loyalty.