Socio-Cultural Factor

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3 Cultural Factor
Definition of culture is the collective programming of the mind which distinguishes the members of one human group from another (Hofstede.G, 1980). For simple and easier understanding, (Becker K, 2005) defined culture everything that people have, assume, and do as representatives of their community”, which demonstrating that culture is made up of material substance; perceptions, principles, character, beliefs and mindsets; and specified, or expected behavior.

3.1 Socio-Cultural Factor – Religion and custom
Socio-cultural factors have great impact on purchasing behavior and it affects consumers who make the decisions on whether to buy a product. It’s also an indicator to the companies who are trying to sell their products …show more content…

The company must understand the impact of a hierarchical mindset, the complex communication patterns and behavior of local employee which improve the chances of success to penetrate Indian market. According to (Hofstede.G, 1980) cultural dimensions theory, it’s well explained the corporate culture in India.

a) Power Distance Index - There is high degree of inequalities in power and wealth within the community. From historical and cultural context, Indian community is strong in hierarchies as its Caste system widely established and interpersonal relationships is important in daily operational works. It is essential to understand and respect their culture that facilitate a team dynamic.

b) Individualism vs Collectivism - Basically India is a collectivistic society, which individual act accordance to one’s defined in group. The action of an individual is influenced by someone in the family, friends, work group and other wider social groups. The employer expects loyalty from employee where employer protect them. Hiring and promotional are based on relationship too. Relationship is the key in a collectivist …show more content…

The company looking forward to gain a competitive advantage through effectiveness rather than efficiency. The target segments must either have buyers with unusual needs or else the production and delivery system that best serves the target segment must differ from that of other industry segments. (Ritika Tanwar, 2013) Therefore, new entrant to India market need to formulate differentiation strategy by focusing in healthy and vegetarian segment. Tapping into market by adapt local taste and preference of consumer such as spicy, cheesy and veggies. Set up kiosk or burger bar instead of restaurant, which cost saving and convenient for customer in hurry. Its target the young professional and working adults, who rush for their breakfast. It is an opportunity to enter a growing industry in India but need to focus in a segment to avoid competition with major fast food

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