Sociocultural

• Social Class

  It is how they compare to others based on factors like education, income and occupation

  High social class are usually willing to spend more on prestigious products and ‘wants’

  For example, a high income earner is more likely to buy a Prada handbag, whereas, a low social class will buy a target handbag

  The type, quantity and quality of products consumers buy can depend on social class

  This means business must align product and marketing strategies with a target market who will be willing and able to purchase goods and services based on their social class
• Culture and subculture

  (the system of learned values, beliefs, behaviours and traditions of a society) and Subculture (a group of individuals with similar qualities that distinguish them from the border societal culture)

  They infiltrate everything we do in life, including what we choose to wear, eat or do

  Effect on business: businesses have to adapt to changes in cultural values to appeal to their target markets

  Example: due to the growing trend of veganism, many cafes, restaurants and supermarkets are offering vegan menus or alternatives
• Family and roles

  (who is responsible for making certain purchasing decisions in the family)

  For example: wife-dominant decisions include food and laundry products, whereas husband-dominated decisions include the purchase of a new car

  Effect on Business:

  This affects how businesses develop their marketing strategies, especially advertising

  By being aware of who is responsible for certain purchases, advertisements can be catered to the individual

  For example: ads for laundry powder almost always include a women doing the washing and 5 year old begging for chocolate
• Reference groups

  any group who a person identifies closely with, and looks to for guidance regarding attitudes, values and beliefs

  One member’s buying behaviour may change the rest of the group's beliefs or attitudes

  For example, if a friend tells you they had a bad hairdresser, you may no longer go to that salon

  For example, if one person wears neon yellow leg warmers, others in the group may follow suit

  Effect on business: marketing managers should aim to be able to create trends through reference groups, reach a higher brand awareness and sales