WELCOME

TO
SOCIO-CULTURE
ENVIRONMENT

Group: - 3
Gayathri Devi.P.
Srikanth.D.
Mohammed Arfath.S.I
Srinivas.K.V
Contents:-
• Social Environment.
• Cultural Environment.

• Socio-Cultural Environment.

• Impact of the Socio- Cultural

Environment on business.
• The Family.

• Role of Family Members in

Household Decision Making.

• Family Life Cycle.

• Changing Role Of Women in Society.

• Social Class.

• Components of Social Class.

• Culture.

• Elements Of Culture.

• Cultural Values.

• Conclusion.
Introduction:-
Social Environment:-
Social environment factors include
human relationship & the
developments, form & function of
such relationship having a bearing on
the business of an organization.
Factors such as buying & consuming
habits of people, their languages,
beliefs & values, customs & tradition,
tastes & preferences, education are
some of important factors &
influences
operating in the social environment.
Some of these are the factors that
affect business like:-

Social attitudes & values such as the

society’s expectations from business.
 Family structure & changes in them.
Role of women in society & their
status
Cultural Environment
Knowledge of the cultural environment
is important to understand the
business environment in its totality.
Cultural analysis often helps to
pinpoint market opportunities. Cultural
forces play a
major role in shaping a company’s
marketing mix program. Cultural norms
largely drive consumer needs & buyer
behavior. Cultural blunders may prove
expensive for MNCs. Cultural
environment is important to
understand the business environment.

Socio – Cultural
Environment:-
Society & culture primarily govern the
lifestyle of an individual. An individual’s
eating habits, shopping behavior,
dressing priorities; physical possessions
are influenced by the society.
In India, expenditure on festivals like
holi, diwali, raksha bandhan, durga puja,
ganesh puja, pongal runs into billions of
rupees every year. So culture itself is a
big opportunity for business. Many times
people spend a lot amount of money for
the sake of simple to social & cultural
norms. Socio-cultural environment is
only due to societal pressure that people
spend so much money in marriages &
celebrations.

Impact of the
Socio-Cultural
Environment on
Business:-
1. Family
 2. Social Class

3. Culture
The Family:-
A family plays a key role in the
development of a person’s attitude, his
understanding of the environment, his
beliefs & his preferences. A Family
performs four basic functions for an
individual: - Economic Support,
Emotional Support, establishment of a
suitable
lifestyle & socialization of family.
Socialization is a central function
of a family as it impacts basic values &
modes of behavior to the child,
consistent with one’s culture. These
generally
include moral & religious principle,
interpersonal skills, dress & grooming
standards, socially acceptable manners
&
speech & a selection of suitable
educational & occupational goals.
Role of Family
Members in
Household Decision
Making:-
1. Influencer :- That individual in the
family, whose opinion is sought
regarding what should be the
criteria
for making a purchase & which
products most likely fit those
evaluative criteria.

2. Gate keeper: - While the influencer

provides information on products
 the gate keeper restricts the flow of
information about a product or
service into family.

3. Decider: - The person with financial

authority or power who decides how
the family’s money will be spent &
on which products & brands.

4. Buyer: - The person who acts as the

purchasing agent by visiting the
store, calling suppliers, bringing
products home.

5. User: - The family member who

makes use of the products.

6. Disposer: - A family member who

initiates out the disposal of a
particular product or service.

Family Life Cycle:-

Young Singles:- Young bachelors who
live alone have low individual income.

Newly Married Couples:- These families

tend to spend a substantial amount of
their income on cars, clothing & other
vacations activities.

Full Nest 1:- At this stage the first child

arrives & roles within the family
change. Purchases shift from leisure to
baby products & toys.

Full Nest 2:- At this stage the youngest

child has reached school & family
spending is children centric.

Full Nest 3:- At this stage parents enter

their 40’s. Family income increases &
simultaneously expenditure as children
are more demanding.

Empty Nest 1:- At these stage children

have left the home & establish their
own nest. Financial condition of the
couple become better as now they
lesser responsibilities
& income is at its peak.

Empty Nest 2:- This stage sees a

reduction of income for individual. In
India in case of business families &
private jobs they get dependent on
their children & spending is on their
grandchildren & health.

Solitary Survivor: - Spending habits of

solitary survivor remain the same as
that of empty nest 2.

Changing Role Of
Women In Society:-
Marketers are always interested in
lifestyle changes occurring among
women because they are customers &
consumers of most products, especially
products related to women & of most
of the baby & men’s products. From a
business point of view the importance
of women has increased in every
aspect. They are now decision makers
for most products purchased & are
influence
almost every purchase.

The following aspects have played a

role in changing the role of the women
in society:-

Education: - It is the single biggest

reason for revolutionizing the role of
women in society. Since independence
the literacy level of women in India has
gone up. They are getting the same
level of education as boys & this has
increased their role in decision making.
Today’s companies are targeting
women
in their communication media.

Employment: - Today more & more

women are choosing a career. Not only
in metros but even in towns they are
employed & are earning. But being
employed they are more aware & play
a key role in every purchase of the
family. These families are good
customer
of readymade food, if convinced that
the food is as nutritious as cooked
food.

Multiple Roles: - Women play multiple

roles in a family. They make purchase
for their children as well as the men in
the family. Women are housekeeper &
therefore decide all the routine
purchases & influence all non-routine
purchases.

Social Class:-
Social classes are based on various
components & are therefore
multidimensional. They are not
determined by a single parameter such
as occupation & income. Certain
parameters are more reliable than
others. Occupation is one of the best
single available indicators of social
class.
In every society some jobs are given
higher status than others. Housing is
another important variable that helps
determine a person’s social class.
Social class categories are ranked
vertically ranging from higher status to
lower
status.
Components Of
Social Class:-
1. Occupation: - What a person does
for living is one of the most telling
indicators of social class. The
occupation dictates other signs of
class membership such as income,
personal association & status.
2. Income: - It is the most critical
determinant of social class as it
directly influences the buying power
& market potential. People
performing the same occupation can
have different levels of income.
Consumption patterns are
determined by the level of income.

3. Possessions: - These are symbols of

class membership. Conspicuous
consumption & people’s desire to
provide visible evidence of their
ability to afford luxury goods help
explain why different people buy
different products.

4. Associations: - The consumption of

people is directly related to the
social network of people they
interact with. People spend their
leisure time with others who share
their tastes & recreational activities
& they imbibe new tastes, lifestyle,
 etc, from those with whom they are
associated.

5. Level Of Influence: - Class, rank &

influence go hand in hand. Members
of higher classes usually command
higher level of influence. Even
marketers use them as an opinion
leader to influences the lower classes.

Culture:-
Culture is the integrated sum total of
learned behavioral traits that are
shared
by members of a society. Culture is
behavior that is shared by a group of
people in a society. Culture is the
software of mind & says that it
provides human with a guide on how to
think. Culture is the sum total of
learned
beliefs & values that server to direct
the
consumer behavior of members of a
particular society. Culture is a set of
values, ideas & other meaning full
symbols that help individuals
communicate & evaluate as member of
society.
Elements Of Culture:-
1. Family: - It is a learning center for
an endless stream of attitudes,
behaviors
& skills that the child carries
through life.

2. Religion: - When there was no law,

religion was the only law. Religion
came into existence as a social law.
Till today religion control human
behavior all over the world.

3. Education: - Education & educational

institutions are a major influence on
the lives, culture & society of its
people. Socializing through
 educational institutions influences
consumption
in several ways.

4. Mass Media: - These are the modes

of communication that reach out to
a
large population on a regular basis.
Modern culture & society has been
revolutionized by mass media.

5. Language & Symbols: - To acquire a

common culture the member of a
society must be able to
communicate with each other
through a common language. In
India itself there are
more than 25 language & more than
800 dialects spoken. Every culture &
nation loves its language & feels
proud about it.

6. Technology: - Every culture has its

own level of technology. The level of
technology is manifest in many ways.
 Countries like United States, Japan &
Germany have a high level of
technology. In countries like India,
Sri Lanka, Pakistan & Bangladesh the
level of technology is low & that is
why they resist any technological
changes.

7. Aesthetics: - It is an arts, music &

dance have affect on people & are
part & parcel of culture. Aesthetics
are of particular interest to the
marketer because of their role in
interpreting
the symbolic meaning of various
methods of artistic expression.

8. Rituals: - Culture includes various

ritualized experiences & behavior.
A ritual is a type of symbolic activity
consisting of a series of steps
occurring in a fixed sequence &
repeated over time. The sale of
sweets
 & crackers in India is at an all time
high during Diwali. In North India
many butches & barbers keep their
shops closed on Tuesday because
many people don’t eat meat.

Cultural Values:-
Individualism Verses Collectivism: -
Individualism is a culture where
members of the society put their
personal advancement & welfare above
all. In collectivism people put the good
of others the group they belong to &
the society as a whole above their own.
Japan & India for instance have a much
more collectivist culture than the
Unites States.

Masculine Verses Feminine Cultures: -

Culture may also be judged on how the
roles of men & women are
differentiated
& how publicly or privately segregated
the two genders are one from another.
The value of a male child may be
greater than female.

High Verses Low Power Distance:-

Power within a culture is tried to the
level of social responsibility that exist
& how willing members or its society
are to accept authority at all levels.
High power distance is a characteristic
of those cultures where the difference
in power between the most & least
powerful individual is great.

Acceptance Of Uncertainty: - This tells

us to what extent a culture accepts
uncertainty & ambiguity. High
uncertainty avoidance is found
in cultures where people have low
tolerance for new idea to do things.

Abstract Verses Associative Culture:-

A culture in which members believe in
the principle of cause & effect is
classified as an abstract thinking
culture. Here science & technical
know how are given importance &
the level of education is high. People
make decision logically.

Materialism & Leisure:-

Societies are also classified according
to the importance they give to
materialism are likely to be more
interested in
business & personal achievements. But
traditionally India has a materialistic
culture perhaps the only country where
the goddess of wealth is worshipped.

Trust:-
In countries where trust is high the
cost
of business is low & where trust is low
cost of business will be high. As in USA
people believe less in other people &
therefore rely on written document.

Future Orientation:-
This is pertains to whether the
country’s people live for the present or
for the
Future. In India for instance people
give more importance to government
jobs because the future is secure not
only to
the person employed but also to his or
her next generation.

P-Time Versus M-Time:-

North Americans are more time bound
than Indian or Latin Americans. M-time
Or monochromic time cultures tend to
concentrate on one thing at a time.
P-time or polychromic time is more
dominant in high context cultures
where the completion of a human
transaction
is emphasized more than holding to
schedules.

High Context & Low Context:-

High context culture is one which gives
importance to intangible aspects also &
Low context cultures are specific about
thing. Low context cultures concentrate
on logical aspects of things.

Ambitious Or Complacent:-
An ambitious individual is highly
motivated is wealth acquisitive has a
strong urge to excel & is prepared to
change the organization & even take
risks.

Marriage:-
Marriage is one of the basic elements
of culture & people’s attitude towards
marriage influences culture a lot. There
are cultures where marriage is a
personal matter & is confined to two
persons.

Conclusion:-
The Family plays a key role in the
development of a child’s attitude
regarding the objects in the
environment. Family plays a critical
role in the
decision making of an individual. Social
class describe the overall rank of
people
in a society & people who are grouped
within the same social class are
approximately equal in terms of their
social standing in the community.
Social class can be classified on the
basis
of occupation, possessions & income.
Throughout their life people may move
upward or downward in the social
culture. As the cultural values changes
the buying & consumption behavior
also changes.

THANK
YOU