iranian consumer vs u.s
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7/31/2019 Iranian Consumer vs U.S.
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Are Iranian consumers poised tobuy American?
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The Relationship - U.S. & Iran
1953: Overthrow of Mohammed Mossadeq by CIA
1979: Captivity of American hostages from U.S. Embassy for 444 days
2002: U.S. President Bush labeling Iran as an Axis of Evil in Union
Address
Timeline
Iran Backing of Hezbollah
U.S. support for Israel
Nuclear enrichment & bomb-making by Iran
Continued intervention by UN Security Council in Irans Nuclear Program
U.S. self-imposed economic & trade sanctions
Fight for Dominance in post-Saddam Iraq
Other Strategic Stand-offs
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Fallout - Consequences
Social repulsion towards
U.S. No economic restrictions
on American products
Iran
Political backlash by U.S.
Economic Sanctionsagainst imports from Iran
Embargo of U.S. goods inIran
U.S.
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Iran - Consumerism
Population: 70 m
Population
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Iranian Locally-maderefrigerator
$200
GE Refrigerator in Teheran$1600
Local Toothpaste
$1Colgate/Crest in Teheran
$3.25
Price
Vs.
Attitude
We as consumers
have an obligation
to buy quality
products
irrespective ofwhere they are
made!
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Two Striking Questions
Are Iranians generally nativist in their
purchase behavior in relation to foreign-made
products: Ethnocentrism?
Do Iranians curtail their purchase preferences
regarding goods from U.S. because of
continued hostility between two nations?
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Consumer Ethnocentrism
Beliefs held by American consumers about theappropriateness, indeed morality, of purchasing foreign-
made products
Understanding of what purchase behavior isacceptable/unacceptable for locals in regards to products
produced outside
Against import in general
Buy American campaigns of 1980s
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Iran - Ethnocentrism
Low CET-Scale Score of 49.3 of 119
Iranian tendency to look outward to maintain balance &survival creating an impact unlike U.S.
Women exhibiting higher ethnocentrism
Education creating for more critical approach
6 of 10 product categories indicate preference to import exceptCosmetics, Clothes, DVDs, DVD Players
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Consumer Animosity
Remnants of antipathy related to
previous or ongoing military, political or
economic events impacting consumer
willingness to buy foreign-made
products
Against a specific country
Chinese consumers for Japaneseproducts
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Iran - Consumer Animosity
Overall low to neutral scores across Iran
Age:
Older Iranians feel lower animosity against U.S.
Youth & Current Students possess higher levels
Education:
Higher educated Iranians hold Iranian Government more
responsible for current problems Gender:
Iranian women have traditionally been closed to the world
Frustration against West for turning its back against women in Iran
Related demographic variables
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Managerial Implications
Tendency of firms to refrain from business in hostilemarkets
Economics trumping Political Calculus
Strategies
Maintain Same Quality throughout the world
Make strategic tie ups for hostile markets
Consumers desire for world class quality products is
huge in developing countries
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Conclusion
Untapped Markets cannot be neglected
Way forward is Strategic Tie-ups
Goodwill of MNC is not compromised inhome country
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