Case Study
1. What social factors are critical to Seng Hang with regard to their products
There are a several social groups that will prove to be critical to Seng Hang in regard to their products. Among these social factors are social class, reference groups, and family.
When conducting research, Seng Hang underestimated the importance of these social groups in China. These groups exert varying amounts of influence on how you buy and with proper research it is very predictable.
Social class in China is very important. Social class breaks down in to three smaller categories including education, occupation and residential location. Social classes are so important to research because they exist everywhere and they are different in every place. In addition to that, the different classes will display different purchasing patterns. There is also a psychological difference between classes that will produce diverse reactions to marketing programs. Seng Hang also needs to realize that social class is often a more important determinant of purchasing behavior than income.
Reference groups are a group of people who influence a person?s attitudes, values and behavior. People are expected to conform to
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