Week 11

Week 11

Consumer Behavior · Davood Wadi, PhD

Culture, Subcultures, and Social Class

Culture shapes how consumers see every product. AI models also carry cultural patterns from the text they learn from.

On a wooden sideboard: a teapot with two small cups, a wrapped present, and a cake with candles, with a paper lantern hanging above. The AI assistant stands among them beside a tall stack of books.

Culture as a Lens

Culture is the shared meanings, values, rituals, and traditions of a society.

Consumers learn culture from family, school, religion, and media, usually without noticing. Culture shapes what people eat, wear, celebrate, and consider polite or offensive.

Two place settings seen from above. Left: a rice bowl, chopsticks on a rest and a tea cup. Right: a dinner plate between a fork and a knife, with a glass.

A product that succeeds in one country can fail in another because it carries a different meaning there.

Two scenes with the same gift. Left: a giver offers a desk clock and the receiver reaches for it, a heart above. Right: the same clock is offered and the receiver shrugs both hands away to refuse, a broken heart above.

Marketers who enter a new market study its culture before they adapt the product, the message, or the price.

Cultural Values: Hofstede's Dimensions

Cultural values are shared beliefs about what is good and desirable in a society.

Hofstede described several dimensions on which national cultures differ (Hofstede, 2001).

Individualism versus collectivism: whether people see themselves mainly as individuals or as members of a group.

Power distance: how much people accept an unequal distribution of power and status.

Uncertainty avoidance: how uncomfortable people feel with ambiguity and risk.

Masculinity versus femininity: whether a society values achievement and competition or care and quality of life.

Long-term orientation: whether people focus on future rewards, such as saving, or on the present and the past.

Hofstede's five dimensions as rails from 0 to 100, comparing United States (teal) with China (ochre): individualism 91 and 20; power distance 40 and 80; uncertainty avoidance 46 and 30; masculinity 62 and 66; long-term orientation 26 and 87.INDIVIDUALISMGROUPINDIVIDUALCHN 20USA 91POWER DISTANCELOWHIGHCHN 80USA 40UNCERTAINTY AVOIDANCELOWHIGHCHN 30USA 46MASCULINITYCAREACHIEVEMENTCHN 66USA 62LONG-TERM ORIENTATIONPRESENTFUTURECHN 87USA 26

An ad that celebrates standing out from the crowd suits an individualist culture. An ad that shows a family choosing together suits a collectivist culture.

Two posters for the same car. Left: one person in a teal coat stands out in front of a row of identical grey figures, beside the car. Right: a family of two adults and two children stands together beside the same car and all point to it.
Exercise · Which one is it?

Each situation reflects one of Hofstede's dimensions. Name the dimension it shows most clearly.

In one country, employees rarely question a manager's decision, and shoppers trust a brand more when a senior executive endorses it.

Which concept does this case show?

Rituals, Myths, and Symbols

A ritual is a set of symbolic behaviors that people repeat in a fixed order.

  1. Grooming rituals, such as a morning skin-care routine, help people move from their private self to their public self.

    A bathroom mirror above a basin; on the shelf, three skin-care products in a row: a cleanser, a serum with a dropper and a jar of cream.
  2. Gift-giving rituals, such as birthdays and holidays, express relationships and obligations.

    A wrapped present with a ribbon and a paper tag reading TO GRANDMA, beside a standing birthday card with a cake drawn on it.TO GRANDMA
  3. Holiday rituals, such as a Thanksgiving dinner or Lunar New Year, create large seasonal markets.

    Two holiday scenes. Left: a roast turkey on a platter. Right: a fan of red-gold Lunar New Year envelopes under a hanging paper lantern.
  4. Rites of passage, such as graduations and weddings, mark a change in social status and come with their own products.

    Two rites of passage. Left: a graduation cap with a tassel resting on a rolled diploma tied with a ribbon. Right: two gold wedding rings in an open ring box.
  5. A myth is a story with symbolic elements that expresses a culture's shared ideals. Brands borrow myths, such as the hero who overcomes a challenge.

    An ad poster: a runner with arms raised breaks the finish tape at the top of a steep hill, the brand badge in the corner.
Exercise · Which one is it?

Name the kind of ritual or symbol each situation shows.

Every morning before work, Tom shaves, applies aftershave and chooses a watch, always in the same order.

Which concept does this case show?

Sacred and Profane Consumption

Sacred consumption involves objects and events that people set apart and treat with respect or awe.

Profane consumption involves ordinary, everyday objects that have no special status.

Left, SACRED: a watch set apart on dark velvet inside a glass case on a wooden stand. Right, PROFANE: an open kitchen drawer with spoons, a pen and a roll of tape jumbled together.SACREDPROFANE

Objects can become sacred through sacralization, such as a signed jersey, a family heirloom, or a souvenir from a special trip.

Three possessions that became sacred: a jersey with a player's signature, a folded patchwork quilt passed down in a family with an old photograph pinned to it, and a souvenir snow globe from a trip.10

Objects can lose sacred status through desacralization, such as a national symbol printed on cheap merchandise.

A wire bargain bin of cheap goods printed with the national flag: a plastic mug, a pair of flip-flops and a paper cup, with a price tag of $1.99.★★★★$1.99

Consumers often refuse to sell sacred possessions at any price.

The owner clutches a framed, signed jersey to the chest, a crossed-out speech bubble above. A buyer holds out a fan of banknotes, a speech bubble reading $5,000.10$5,000
Exercise · Which one is it?

Is each object sacred or profane, or is it gaining or losing sacred status?

The bottle of dish soap Ahmed buys every two weeks.

Which concept does this case show?

Subcultures: Shared Identity Within a Culture

A subculture is a group whose members share beliefs and experiences that set them apart from the wider culture.

Age subcultures group consumers by generation, such as Baby Boomers, Generation X, Millennials, and Generation Z.

Each generation grew up with different technologies, events, and brands, which shape its media habits and preferences.

Four generations with their birth years and the screen each grew up with: Baby Boomers, 1946 to 1964, a television set with an aerial; Generation X, 1965 to 1980, a boxy desktop computer; Millennials, 1981 to 1996, a laptop; Generation Z, 1997 to 2012, a smartphone.BABY BOOMERS1946–1964GENERATION X1965–1980MILLENNIALS1981–1996GENERATION Z1997–2012

Geographic subcultures reflect regional differences in climate, food, language, and lifestyle.

A map of one country split into two regions. The cold north shows snowflakes, a bowl of hot soup and winter boots. The warm south shows the sun, a straw sun hat and sandals.

Ethnic and religious subcultures share traditions, holidays, and sometimes dietary rules, such as halal or kosher food.

Two food packages on a shelf. One carries a round HALAL certification seal, the other a round KOSHER certification seal.HALALKOSHER

Marketers can reach a subculture with products and messages that respect its identity, rather than with one message for everyone.

Exercise · Sort into groups

Which kind of subculture is each marketer reaching? Sort the cards.

        Tap a card, then tap the group it belongs to.

        Social Class and Status Symbols

        Social class is a person's standing in society, based on income, education, and occupation.

        Members of a social class tend to share values, tastes, and consumption patterns.

        Class shapes taste. It influences which music, food, clothing, and leisure activities people consider good.

        Status symbols are products that signal a person's position in the social hierarchy, such as luxury watches or designer bags.

        On a dark velvet display stand, a gold luxury watch beside a structured designer handbag.

        Old money often signals status quietly through heritage and understated quality. New money often signals status through visible brands and logos.

        Left, OLD MONEY: a person in a plain camel jacket carries a small leather bag with no visible logo. Right, NEW MONEY: a person in a coat covered in large brand badges carries a bag stamped with the same badges and wears dark glasses.OLD MONEYNEW MONEY
        Knowledge Check

        Two shoppers buy expensive coats from the same luxury label. One chooses a plain coat whose only mark is a small stitched label inside; the other chooses a coat with the brand's name printed across the back. Which description fits the slide?

        Conspicuous Consumption and Income Inequality

        Conspicuous consumption is the purchase of goods mainly to display wealth and status (Veblen, 1899).

        Consumers with a strong need for status prefer luxury goods with large, visible logos. Wealthy consumers with no such need often prefer quiet designs that only other insiders recognize (Han, Nunes, & Drèze, 2010).

        Two sweaters laid flat. The left one carries a huge brand badge across the chest. The right one carries only a tiny badge stitched near the hem.
        1. In many markets, growing income inequality has come with growth at both the luxury end and the discount end, while mid-priced brands lose share.

          Three shops in a row. Left: a luxury boutique with a black awning and two shoppers leaving with bags. Middle: a mid-priced store with an empty window and a CLOSING DOWN sign. Right: a discount store with a minus 50 percent banner and two shoppers with bags.CLOSING DOWN−50%MAISON
        2. Some consumers signal status through experiences, such as travel and fine dining, rather than through objects.

          On a table, a boarding pass with a plane drawn on it, a passport, and a fine-dining tasting menu card with seven courses listed.MENU
        3. Others signal status through knowledge and taste, such as expertise in coffee or wine, rather than through price.

          A pour-over coffee set: a gooseneck kettle pours a thin stream into a cone dripper on a glass carafe, which stands on a digital scale reading 18.0 g.18.0 g

        Consumer Ethnocentrism and Country of Origin

        The country-of-origin effect occurs when consumers judge a product by the country where it was made.

        Consumers associate some countries with quality in certain categories, such as German cars, French perfume, or Swiss watches.

        Three products with origin labels: a car labelled MADE IN GERMANY, a perfume bottle labelled MADE IN FRANCE, and a wristwatch labelled SWISS MADE.MADE IN GERMANYMADE IN FRANCESWISS MADE

        Consumer ethnocentrism is the belief that buying products from one's own country is right and buying imports is wrong (Shimp & Sharma, 1987). Ethnocentric consumers prefer domestic products even when imports are better or cheaper.

        On a store shelf, a domestic jam with the home flag on its label, priced $4.49, beside an imported jam priced $3.29 with five rating stars. A shopper reaches for the domestic jar, which is lit teal.★$4.49$3.29

        Researchers measure consumer ethnocentrism with the CETSCALE, a set of statements such as "Buy [national]-made products. Keep [the nation] working."

        A printed questionnaire sheet with three statements, each answered on a row of seven boxes numbered 1 to 7 from DISAGREE to AGREE; the answers ticked are 6, 4 and 7.1.1234567DISAGREEAGREE2.DISAGREEAGREE3.DISAGREEAGREE

        Marketers emphasize local origin in ethnocentric markets and play down foreign origin when it hurts the brand.

        Exercise · Sort into groups

        Is each consumer showing a country-of-origin effect or consumer ethnocentrism?

            Tap a card, then tap the group it belongs to.

            Cultural Bias in AI Models

            AI models are trained on large amounts of text, and much of that text comes from a small number of languages and countries.

            A model can therefore carry the values of some cultures more strongly than others.

            Researchers gave the CETSCALE to AI models developed in the United States, China, Canada, and France, and asked each model about consumers in each of those countries (Wadi, Ghodrat, & Philp, 2026).

            The models differed in how ethnocentric their answers were overall (Wadi, Ghodrat, & Philp, 2026).

            Across all models, answers were least ethnocentric when the statements were about China, and more ethnocentric when they were about the United States or Canada (Wadi, Ghodrat, & Philp, 2026).

            Several models also showed a country-of-origin bias: their answers shifted in a consistent pattern for particular pairings of the model's home country and the country in the question (Wadi, Ghodrat, & Philp, 2026).

            Llama 3.3 (USA): expected CETSCALE scores (17 to 119; higher is more ethnocentric) when the statements are about each country: usa 72.0, canada 76.4, china 55.8, france 62.1 (Wadi, Ghodrat & Philp, 2026). The home-country bar is lit teal.LLAMA 3.3MADE IN THE USACETSCALE SCORE17119MORE ETHNOCENTRIC →USA72.0CANADA76.4CHINA55.8FRANCE62.1

            An AI assistant that recommends products to consumers around the world may carry such preferences into its recommendations.

            Global brands therefore need to check how AI assistants represent their country of origin and their culture in each market.

            Knowledge Check

            A global coffee brand from China asks an AI assistant to describe Chinese coffee brands to shoppers in Canada. Based on the study of AI models and the CETSCALE, what should the brand do?

            Discussion: Culture in the Cart

            Discussion:

            Choose a product you buy regularly. Would a consumer from another culture or subculture use it, give it, or display it differently? If you asked an AI assistant to recommend the same product, would its answer reflect your culture or another one?

            A wicker shopping basket holding a teapot and a wrapped gift. Beside it, the AI assistant's speech bubble shows the same teapot with a question mark.?