Page 286 - DMGT551_RETAIL_BUSINESS_ENVIRONMENT

Unit 14: A Review of Retailing: Environment and Operations

14.2 Culture Transformation and Retailing Notes

Culture is that complex whole which includes knowledge, belief, a., law, morals, customs and
any other capabilities and habits acquired by humans as members of society. Culture influences
the pattern of living, of consumption, of decision-making by individuals. It can be acquired
from the family, from the region or from all that has been around us while we were growing up
and learning the ways of the world. Culture forms a boundary within which an individual
thinks and acts. When one thinks and acts beyond these boundaries, he is adopting a cross-
cultural behaviour and there are cross-cultural influences as well. The nature of cultural influences
is such that we are seldom aware of them. One feels, behaves, and thinks like the other members
of the same culture. It is all pervasive and is present everywhere. Material culture influences
technology and how it brings cultural changes like use of telephones, mobile phones, clothing
styles and fashions, gives the marketers a chance to improve the product, packing, etc. to meet
the needs of the customers. Norms are the boundaries that culture sets on the behaviour. Norms
are derived from cultural values, which are widely told beliefs that specify what is desirable and
what is not. Most individuals obey norms because it is natural to obey them. Culture outlines
many business norms, family norms, behaviour norms, etc. How we greet people, how close
one should stand to others while conducting business, the dress we wear and any other patterns
of behaviour. Culture keeps changing slowly over time; and is not static. Changes take place
due to rapid technologies. In case of emergency, war, or natural calamities, marketers and
managers must understand the existing culture as well as the changing culture and culture of the
country where the goods are to be marketed. Major companies have adapted themselves to
international culture and are accepted globally.
Everybody in this world is a consumer. Everyday of our life we are buying and consuming an
incredible variety of goods and services. However, we all have different tastes, likes and dislikes
and adopt different behaviour patterns while making purchase decisions. Many factors affect
how we, as individuals and as societies, live, buy, and consume. External influences such as
culture, ethnicity, and social class influence how individual consumers buy and use products,
and help explain how groups of consumers behave. The study of culture encompasses all aspects
of a society such as its religion, knowledge, language, laws, customs, traditions, music, art,
technology, work patterns, products, etc. Culture is an extremely critical and all pervasive
influence in our life.

Indian consumer has undergone a remarkable alteration. Just a decade or .two ago, they saved
most of their incomes, purchased the only necessities.
But today, equipped with higher income, credit cards, exposure to new shopping culture of west,
desire to show status and to improve standard of living, the Indian consumer is spending a lot.
His new mentality, in turn is fueling the growth of organized retail in India.

Young Shoppers

Most of the consumers have grown up with television, the internet, and have been exposed to
the better standard of living and consumer culture abroad. This generation is also making
money at a younger stage in life due to call centre jobs and other avenues of employment
openings. As a result most of them are considering these shopping malls as the place for their
entertainment.

Higher Income/Mncs

With the entry of MNCs in India, the people are getting better job opportunities, and the income
levels are also becoming better with different allowances. This sets the stage for a very exciting
and promising retail market in the future

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