(Doc) Consumer Behavior: Essay

RUNNING HEAD: Consumer Behavior
Consumer Behavior

Consumer Behavior 1
Contents
Introduction......................................................................................................................................2
Culture.............................................................................................................................................2
Culture Features and its Effect on Consumer Behavior...............................................................2
The Effect of Individualism- Collectivism on Consumer Behavior............................................3
Consumer Decision- Making Process for High Involvement Purchases.....................................3
Social Class......................................................................................................................................5
Characteristics of Social Class.....................................................................................................5
Components of Social Class........................................................................................................5
Influence of Social Class on Consumer Behavior.......................................................................6
Recommendations............................................................................................................................6
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

Consumer Behavior 2
Introduction
Automobili Lamborghini is an Italian brand that manufactures high involvement products such
as luxury supercars, sport cars, SUVs, etc. (Automobili Lmaborghini, 2018). The customers of
Lamborghini generally belong to the rich, business class between the ages 25- 45 years who are
capable of affording expensive cars. Social influences play asignificant role in the purchase
decision of the customers. This essay focuses on the social influences such as culture and social
class which impacts the brand and product purchase decision in Australia at all stages of the
consumer purchase decision process. This essay also provides some recommendations to the
organization for enhancing the marketing strategies.
Culture
Culture can be defined as the compound of beliefs of human societies, their behavior, values,
traditions, roles and customs which play a significant role in understanding the concept if
consumer behavior. The basic reason of the desire or determination of a person is culture
(Schiffman, Cass, Paladino & Carlson, 2013).
Culture Features and its Effect on Consumer Behavior
Features of culture play an important role in identifying the ways in which consumer behavior is
affected by the culture. It is observed that differences in the culture among the customers are less

Consumer Behavior 3
within the country in comparison with the consumers outside the country. (DURMAZ, CELIK &
ORUC, 2003)
The needs and wants of the Lamborghini customers in Australia is determined by its culture.
Also, it changes from time to time, therefore, there is a chance that the customers can which to
products of other brands. Also, it is observed that the same culture is shared by the members of
the community that have the capability of purchasing Lamborghini products.
The Effect of Individualism- Collectivism on Consumer Behavior
According to Hofstede, a national culture is shared by every national population. National
culture is the culture which is capable of distinguishing one nation’s population with the
population of another (Samuel Craig & Douglas, 2006). The Hofstede’s model of national
cultural differences provides the dimensions of culture such as collectivism and individualism
that operates in a society. Culture is recognized as the most powerful determinants of consumer
behavior by cross- cultural researchers. The needs and wants of the consumers are shaped by the
cultural background. The focus of the individualist consumers is on determining the capabilities
of the product before making the purchase. On the other hand, collectivist consumers rely on the
other factors for the purpose of decision making such as symbolism and status (Nayeem, 2012).
Australia has a highly individualist culture (Hofstede Insights, 2018). This means that
Lamborghini cars are selected by the rich class consumers in Australia because such cars are
capable of providing their expected functional benefits. Therefore, Lamborghini customers in
Australia prefer it due to its better performance and not due to its associated status. Decision
regarding the purchase of Lamborghini is taken by the customers on the basis of internal
knowledge and personal experience.
Consumer Decision- Making Process for High Involvement Purchases
The consumers are already aware regarding the positives and negatives of their choice in terms
of price, quality, brand and innovation. In order to make reasoned decisions, the forecast of the
results of each option is attempted by the consumers for determining the best for the specific
situation. Sequential process is followed in the decision making of the consumers related to high
involvement products such as automobiles. Such process consists of recognition of the problem,
searching information, evaluating the brand and making selection, purchase and post purchase