Topic 3 – Consumer Markets Topic 3 – Consumer Markets and Consumer Buyer and Consumer Buyer

BehaviorBehavior

Consumer Markets and Consumer Buyer Consumer Markets and Consumer Buyer BehaviorBehavior

ObjectivesObjectives Define the consumer market and Define the consumer market and

construct a simple model of construct a simple model of consumer buyer behaviorconsumer buyer behavior

Name the four major factors that Name the four major factors that influence consumer buyer behaviorinfluence consumer buyer behavior

List and understand the stages in the List and understand the stages in the buyer decision processbuyer decision process

Describe the adoption and diffusion Describe the adoption and diffusion process for new productsprocess for new products

Consumer Markets and Consumer Buyer Consumer Markets and Consumer Buyer BehaviorBehavior

OverviewOverview – many different factors – many different factors affect consumer buying behavior- and affect consumer buying behavior- and understanding it is an essential task of understanding it is an essential task of the marketing managementthe marketing management

Consumer behavior refers to the Consumer behavior refers to the buying behavior of final consumers-buying behavior of final consumers-

Consumer Market –all the individuals Consumer Market –all the individuals and households who buy or acquire and households who buy or acquire goods and services for personal goods and services for personal consumptions.consumptions.

Consumers vary tremendously in age, Consumers vary tremendously in age, income, education level, and tastes.income, education level, and tastes.

Model of Consumer BehaviorModel of Consumer Behavior Most consumers make many buying decisions Most consumers make many buying decisions

everydayeveryday Large companies base their research to discover Large companies base their research to discover

actual consumer purchases by asking such actual consumer purchases by asking such questions : how do consumers respond to various questions : how do consumers respond to various marketing efforts ? : where they buy, how much marketing efforts ? : where they buy, how much and how they buy and when and why they buy and how they buy and when and why they buy

Stimulus- responseStimulus- response – how consumers respond – how consumers respond to different product features , prices and to different product features , prices and advertising appeals - which in turn has given the advertising appeals - which in turn has given the company a great advantage over its competitors.company a great advantage over its competitors.

Buyers ‘black box’Buyers ‘black box’ – certain responses are – certain responses are produced when marketing and other stimuli produced when marketing and other stimuli enter the consumers ‘black box’ and marketers enter the consumers ‘black box’ and marketers must figure out what is in the buyers black box.must figure out what is in the buyers black box.

Model of Consumer Behavior – cont’dModel of Consumer Behavior – cont’d

Model of Buyer BehaviorModel of Buyer Behavior

responses

Product choiceBrand choiceDealer Choice

Purchase timingPurchase amount

Marketing & other stimuli

Buyers black Box Buyers responses

EconomicTechnological

PoliticalCultural

ProductPricePlace

PromotionB

uyer

chara

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Buyin

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pro

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Model of Consumer Behavior –cont’dModel of Consumer Behavior –cont’d

Marketing stimuli consists of the four Marketing stimuli consists of the four P’s :product , price, place and promotion.P’s :product , price, place and promotion.

Other input include the major forces: Other input include the major forces: economic, technological, political and cultural.economic, technological, political and cultural.

All of these inputs enter the buyers black box All of these inputs enter the buyers black box turned into set of observable buyer responses: turned into set of observable buyer responses: product choice, brand choice , dealer choice, product choice, brand choice , dealer choice, purchase timing, and purchase amount purchase timing, and purchase amount

The The buyer characteristicsbuyer characteristics –influences how –influences how she or he perceives and reacts to the stimulishe or he perceives and reacts to the stimuli

The The buyer decision processbuyer decision process – affects the – affects the buyers behavior buyers behavior

Characteristics Affecting Consumer Characteristics Affecting Consumer BehaviorBehavior

Factors Influencing Consumer BehaviorFactors Influencing Consumer Behavior

Cultural

Culture

Subculture

Social class

Social

Reference Groups

Family

Roles & status

PersonalAge & Life-cycle

StageOccupation

Economic situationLifestyle

Personality &Self-concept

PsychologicalMotivationPerceptionLearning

Beliefs & Attitudes

Buyer

Characteristics Affecting Consumer Behavior Characteristics Affecting Consumer Behavior –cont’d–cont’d

1.0 1.0 CULTURAL FACTORSCULTURAL FACTORS Cultural factors exert the broadest and deepest Cultural factors exert the broadest and deepest

influence on consumer behaviorinfluence on consumer behavior CultureCulture – is the most basic cause of a person’s – is the most basic cause of a person’s

wants and behaviors. It’s the set of basic values, wants and behaviors. It’s the set of basic values, perceptions, wants and behaviors learned by a perceptions, wants and behaviors learned by a member of society from family and other member of society from family and other important institutions.important institutions.

Every group or society has a culture and cultural Every group or society has a culture and cultural influences on buying behavior vary greatly from influences on buying behavior vary greatly from country to country.country to country.

Failure to adjust or recognize these differences Failure to adjust or recognize these differences can result in ineffective marketing.can result in ineffective marketing.

International marketers must understand the International marketers must understand the culture in each international market and adapt culture in each international market and adapt their marketing strategies accordingly.their marketing strategies accordingly.

Characteristics Affecting Consumer Behavior Characteristics Affecting Consumer Behavior –cont’d–cont’d

SubcultureSubculture – Each culture contains smaller sub-cultures, or groups of – Each culture contains smaller sub-cultures, or groups of people with shared value systems based on common life experiences and people with shared value systems based on common life experiences and situations.situations.

Subcultures include nationalities, religions, racial groups, and geographic Subcultures include nationalities, religions, racial groups, and geographic regions.regions.

Many subcultures make up important market segments , and marketers often Many subcultures make up important market segments , and marketers often design products and marketing programs tailored to their needs e.g. design products and marketing programs tailored to their needs e.g.

-Hispanic consumers ( Cuba, Mexican, Puerto Rican ) in -Hispanic consumers ( Cuba, Mexican, Puerto Rican ) in US market.US market. - African-American Consumer – US market- African-American Consumer – US market - Mature Consumers – US market- Mature Consumers – US market Social ClassSocial Class – almost every country has some form of social class – almost every country has some form of social class

structure. It is societies relatively permanently and ordered divisions in a structure. It is societies relatively permanently and ordered divisions in a society whose members share similar values , interests and behaviours.It is society whose members share similar values , interests and behaviours.It is not determined by a single factor such as income but is measured as a not determined by a single factor such as income but is measured as a combination of occupation , income, education, wealth and other variables. combination of occupation , income, education, wealth and other variables.

- America’s characteristics of seven Social Class _ upper class (less than 1%), - America’s characteristics of seven Social Class _ upper class (less than 1%), lower uppers (about 2%), upper middles (12%0, middle class (32%), working lower uppers (about 2%), upper middles (12%0, middle class (32%), working class (38%),Upper lowers (9%), Lower lowers 7%) , lowers are on welfare , class (38%),Upper lowers (9%), Lower lowers 7%) , lowers are on welfare , and visibly poverty stricken.and visibly poverty stricken.

Characteristics Affecting Consumer Behavior Characteristics Affecting Consumer Behavior –cont’d–cont’d

2.0 2.0 SOCIAL FACTORSSOCIAL FACTORS – Consumer behavior is also – Consumer behavior is also influenced by social factors such as : consumers influenced by social factors such as : consumers small groupssmall groups, , family and socialfamily and social rolesroles and and status.status.

GROUPS GROUPS – Two or more groups who interact to – Two or more groups who interact to accomplish individual or mutual goals e.g. family , accomplish individual or mutual goals e.g. family , friends, neighbors ,co-workers etc.friends, neighbors ,co-workers etc.

FAMILYFAMILY – Family members can strongly influence – Family members can strongly influence buyer behavior . The family is the most important buyer behavior . The family is the most important consumer buying organization in society, and has consumer buying organization in society, and has been researched extensively: including husband, been researched extensively: including husband, wife and children on purchase of different product wife and children on purchase of different product and services.and services.

ROLES & STATUSROLES & STATUS – each role carries a – each role carries a statusstatus reflecting the general esteem given to the reflecting the general esteem given to the product by society People often choose the product by society People often choose the product that show theirproduct that show their status status in society.in society.

Characteristics Affecting Consumer Behavior Characteristics Affecting Consumer Behavior –cont’d–cont’d

3.0 3.0 PERSONAL FACTORSPERSONAL FACTORS -A Buyers decision also -A Buyers decision also influenced by personal characteristics such as the influenced by personal characteristics such as the buyers age and buyers age and life-cycle stage, occupation, life-cycle stage, occupation, economic situation, lifestyle, and personality and economic situation, lifestyle, and personality and self-concept.self-concept.

- - Age and Life-cycle stageAge and Life-cycle stage – – People change the People change the goods and services they buy over their life-times goods and services they buy over their life-times including tastes in food, clothes, furniture and including tastes in food, clothes, furniture and recreation, these are aged related. Buying is shaped recreation, these are aged related. Buying is shaped by the age life-cycle.by the age life-cycle.

- - Occupation Occupation – A blue collar workers tend to buy – A blue collar workers tend to buy more rugged work clothes, white collar workers buy more rugged work clothes, white collar workers buy more business suits. Companies should specialize in more business suits. Companies should specialize in making products needed by given occupational making products needed by given occupational groups groups

thus, computer software companies will design thus, computer software companies will design different products for brand managers, accountants, different products for brand managers, accountants, engineers, lawyers, and doctors.engineers, lawyers, and doctors.

--

Characteristics Affecting Consumer Behavior Characteristics Affecting Consumer Behavior –cont’d–cont’d

3.0 3.0 PERSONAL FACTORS - cont’dPERSONAL FACTORS - cont’d - Economic situation- Economic situation – A persons economic situation – A persons economic situation

will affect product choice. If economic indicators point will affect product choice. If economic indicators point to a recession, marketers can take steps to redesign. to a recession, marketers can take steps to redesign. reposition, and reprice their products closely.reposition, and reprice their products closely.

- Lifestyle- Lifestyle – it is a person’s pattern of living. – it is a person’s pattern of living. Lifestyle classifications are by no means – universal Lifestyle classifications are by no means – universal

and vary significantly from country to country. The and vary significantly from country to country. The study of life style can assist the marketers study of life style can assist the marketers understand changing consumer values and how they understand changing consumer values and how they affect buying behavior.affect buying behavior.

- - Personality and self conceptPersonality and self concept – personality refers to – personality refers to the unique psychological characteristics of a person the unique psychological characteristics of a person can be described as: traits , self-confidence, can be described as: traits , self-confidence, dominance, sociability, defensiveness, aggressiveness dominance, sociability, defensiveness, aggressiveness etc. e.g. coffee drinkers tend to be high on sociability etc. e.g. coffee drinkers tend to be high on sociability

To attract customers, starbucks and other coffee To attract customers, starbucks and other coffee houses create environment to which hey can relax houses create environment to which hey can relax and socialize.and socialize.

Characteristics Affecting Consumer Behavior Characteristics Affecting Consumer Behavior –cont’d–cont’d

4. 0 4. 0 PSYCHOLOGICAL FACTORSPSYCHOLOGICAL FACTORS – A – A person’s buying choices are further person’s buying choices are further influenced by four major psychological influenced by four major psychological factors : factors : motivation, perception, learning,motivation, perception, learning, and and beliefsbeliefs and and attitudesattitudes

- - MotivationMotivation – – Motive (Drive) A need that is Motive (Drive) A need that is sufficiently pressing to direct the person to sufficiently pressing to direct the person to seek satisfaction of the need Maslow’s seek satisfaction of the need Maslow’s theory of motivation explain why people are theory of motivation explain why people are driven by particular needs at particular driven by particular needs at particular time. Maslow’s research stated that human time. Maslow’s research stated that human needs are arranged in a hierarchy of needs needs are arranged in a hierarchy of needs and in order of importance. (Refer to the and in order of importance. (Refer to the next slides for Maslow’s hierarchy of needs )next slides for Maslow’s hierarchy of needs )

Characteristics Affecting Consumer Characteristics Affecting Consumer Behavior –cont’dBehavior –cont’d

Maslow’s Hierarchy of NeedsMaslow’s Hierarchy of Needs

Characteristics Affecting Consumer Behavior Characteristics Affecting Consumer Behavior –cont’d–cont’d

PSYCHOLOGICAL FACTORS – cont’dPSYCHOLOGICAL FACTORS – cont’d- PerceptionPerception – It is the process by which people – It is the process by which people

select, organize, and interpret information to form select, organize, and interpret information to form a meaningful picture of the world. Two people a meaningful picture of the world. Two people with the same motivation and in the same with the same motivation and in the same situation may act differently because they situation may act differently because they perceive the situation differently. People are perceive the situation differently. People are exposed to a great amount of stimuli everyday.exposed to a great amount of stimuli everyday.

- LearningLearning – describes changes in a human – describes changes in a human behavior arising from experience .Theorist say behavior arising from experience .Theorist say that most human behavior is learned most occurs that most human behavior is learned most occurs through the interplay of drives, stimuli, cues, through the interplay of drives, stimuli, cues, responses, and reinforcement.responses, and reinforcement.

- Beliefs and AttitudesBeliefs and Attitudes – through doing and – through doing and learning, people acquire beliefs and attitude and learning, people acquire beliefs and attitude and this influence the buying behavior.this influence the buying behavior.

Types of Buying Decision BehaviorTypes of Buying Decision Behavior

Buying behavior differs greatly for a tube Buying behavior differs greatly for a tube of toothpaste, a tennis racket, an of toothpaste, a tennis racket, an expensive camera, and a new car.expensive camera, and a new car.

More of a complex decisions and more More of a complex decisions and more buyer deliberations involved.buyer deliberations involved.

1.01.0 COMPLEX BUYING BEHAVIOURCOMPLEX BUYING BEHAVIOUR – – consumers undertake complex buying consumers undertake complex buying behavior when involved in purchase and behavior when involved in purchase and perceived differences among brands e.g. perceived differences among brands e.g. when product is expensive, risky, when product is expensive, risky, purchased infrequently, and highly self- purchased infrequently, and highly self- expressive.expressive.

for e.g. buying a computer : features may for e.g. buying a computer : features may carry no meaning to first time buyer.carry no meaning to first time buyer.

Types of Buying Decision Behavior –Types of Buying Decision Behavior –Cont’dCont’d

2.02.0 DISSONANCE- REDUCING BUYINGDISSONANCE- REDUCING BUYING BEHAVIOURBEHAVIOUR - occurs when consumers - occurs when consumers are highly involved with an expensive, are highly involved with an expensive, infrequent, or risky purchase, but see little infrequent, or risky purchase, but see little difference among brands.difference among brands.

Buyers may shop around to learn what is Buyers may shop around to learn what is available and buy relatively quickly; they available and buy relatively quickly; they respond primarily to a good price or to respond primarily to a good price or to purchase convenience.purchase convenience.

After the purchase , might experience After the purchase , might experience postpost purchase dissonancepurchase dissonance (after-sale (after-sale discomfort) when they notice certain discomfort) when they notice certain disadvantages on the purchased goods.disadvantages on the purchased goods.

Types of Buying Decision Behavior – Types of Buying Decision Behavior – Cont’dCont’d

3.0 HABITUAL BUYING BEHAVIOUR3.0 HABITUAL BUYING BEHAVIOUR – –

It occurs under conditions of low consumer It occurs under conditions of low consumer involvement and little significant brand involvement and little significant brand differences. For example of salt.differences. For example of salt.

Consumers have little involvement in this Consumers have little involvement in this product category- they simply go to the product category- they simply go to the store and reach for a brand. If they keep to store and reach for a brand. If they keep to the same brand, it is out of habit rather the same brand, it is out of habit rather than strong brand loyalty. than strong brand loyalty.

Consumers appear to have low involvement Consumers appear to have low involvement with most low cost, frequently purchased with most low cost, frequently purchased products.products.

Types of Buying Decision Behavior – Types of Buying Decision Behavior – Cont’dCont’d

4.0 VARIETY – SEEKING BUYING 4.0 VARIETY – SEEKING BUYING BEHAVIOURBEHAVIOUR – involve significant brand – involve significant brand differences where consumers do a lot of brand differences where consumers do a lot of brand switching e.g. buying of cookies.switching e.g. buying of cookies.

Consumer can change brands each time he Consumer can change brands each time he purchases from the grocery store.purchases from the grocery store.

Brand switching occurs for the sake of variety Brand switching occurs for the sake of variety rather than because of dissatisfaction. rather than because of dissatisfaction.

Therefore, market leaders will try to Therefore, market leaders will try to encourage habitual buying behavior by encourage habitual buying behavior by dominating shelf space , keeping the shelf dominating shelf space , keeping the shelf fully stocked, and running frequently reminder fully stocked, and running frequently reminder advertising.advertising.

The Buyer Decision ProcessThe Buyer Decision Process

Buyer Decision process Model-Buyer Decision process Model- The The buyer decision process consists of five buyer decision process consists of five stages : stages : need recognition, information need recognition, information searchsearch, , evaluation of alternativesevaluation of alternatives, , purchase decisionpurchase decision, , postpurchase postpurchase behaviorbehavior

The figure implies that the consumer pass The figure implies that the consumer pass through all five stages with every purchase through all five stages with every purchase but in more routine purchases , consumers but in more routine purchases , consumers often skip or reverse some of these stages to often skip or reverse some of these stages to satisfy a need.satisfy a need.Need recognition

Informationsearch

Evaluation ofalternatives

Purchasedecisin

Postpurchasebehavior

The Buyer Decision Process – Cont’dThe Buyer Decision Process – Cont’d

1.0 NEED RECOGNITION1.0 NEED RECOGNITION – the need – the need can be triggered by an internal can be triggered by an internal stimuli when one of the persons stimuli when one of the persons normal needs- hunger, thirst, sleep, normal needs- hunger, thirst, sleep, feelings rises to a level high enough feelings rises to a level high enough to become a drive.to become a drive.

By gathering these information the By gathering these information the marketer can identify the factors that marketer can identify the factors that most often trigger interest in the most often trigger interest in the product and can develop marketing product and can develop marketing programs that involve these factors.programs that involve these factors.

The Buyer Decision Process – The Buyer Decision Process – Cont’dCont’d2.0 INFORMATION SEARCH2.0 INFORMATION SEARCH –if the consumers –if the consumers

drive is strong and a satisfying product is drive is strong and a satisfying product is near at hand, the consumer is likely to buy it near at hand, the consumer is likely to buy it than otherwise the consumer may undertake than otherwise the consumer may undertake an an informationinformation searchsearch related to the need. related to the need.

Information can be obtained from these Information can be obtained from these sources :sources : - Personal sources: family, friends, - Personal sources: family, friends, neighbors etcneighbors etc - Commercial sources :advertising, sales - Commercial sources :advertising, sales

people,people, packaging, displays etcpackaging, displays etc -Public sources: mass media ,word of mouth-Public sources: mass media ,word of mouth - Experiential sources: handling, - Experiential sources: handling, examining, using the productexamining, using the product

The Buyer Decision Process – Cont’dThe Buyer Decision Process – Cont’d3.0 EVALUATION OF ALTERNATIVES3.0 EVALUATION OF ALTERNATIVES – certain basic – certain basic

concepts help explain consumer evaluation process:concepts help explain consumer evaluation process: - P- Product attributesroduct attributes – choice and need for – choice and need for the productthe product - D- Degrees of importanceegrees of importance – according to the – according to the consumer needs and wantsconsumer needs and wants - B- Brand beliefsrand beliefs – set of beliefs held for a – set of beliefs held for a particular brandparticular brand - - Total product satisfactionTotal product satisfaction – vary with level of – vary with level of

different attributesdifferent attributes - E- Evaluation procedurevaluation procedure – arrive at attitudes towards – arrive at attitudes towards

the different brands. At this stage consumers rank the different brands. At this stage consumers rank brand and form purchase intentions.brand and form purchase intentions.

Consumers evaluation depends on the individual Consumers evaluation depends on the individual and the specific buying situation. Marketers should and the specific buying situation. Marketers should study buyers to find out how they actually evaluate study buyers to find out how they actually evaluate brand alternatives and take steps to influence the brand alternatives and take steps to influence the buyers decision.buyers decision.

The Buyer Decision Process – Cont’dThe Buyer Decision Process – Cont’d

4.0 PURCHASE DECISION4.0 PURCHASE DECISION – the stage of – the stage of the buyer decision process in which the the buyer decision process in which the consumer actually buys that productconsumer actually buys that product

5.0 POSTPURCHASE BEHAVIOUR5.0 POSTPURCHASE BEHAVIOUR – This is – This is after purchasing the product the after purchasing the product the consumer will be engaged in the consumer will be engaged in the postpurchse behavior ; either is postpurchse behavior ; either is satisfied or dissatisfied.satisfied or dissatisfied.

The answer lies in the relationship The answer lies in the relationship between the between the consumers expectationconsumers expectation and product’s and product’s perceived performanceperceived performance..

The Buyers Decision Process for New The Buyers Decision Process for New ProductsProducts

1.01.0 New productNew product – A good, service or idea that is perceived – A good, service or idea that is perceived by some potential customers as new. I may be around for a by some potential customers as new. I may be around for a while but now we look at how buyers approach the purchase of while but now we look at how buyers approach the purchase of new products at the first time and make decisions on whether to new products at the first time and make decisions on whether to adopt them.adopt them.

Adoption processAdoption process - the mental process which an individual - the mental process which an individual passes from first learning about the innovation to final adoption.passes from first learning about the innovation to final adoption.

Adoption – the decision by an individual to become a regular user Adoption – the decision by an individual to become a regular user of the product.of the product.

2.02.0 Stages in the Adoption ProcessStages in the Adoption Process -- AwarenessAwareness – consumer becomes aware of the product – consumer becomes aware of the product - I- Interestnterest – consumer seeks information about he product – consumer seeks information about he product - - EvaluationEvaluation – consumers considers whether trying new product – consumers considers whether trying new product make sense.make sense. - - TrialTrial - tries the product on small scale - tries the product on small scale - - AdoptionAdoption – Consumer decides to make full and regular use of – Consumer decides to make full and regular use of

the the new product.new product.

The Buyers Decision Process for New The Buyers Decision Process for New Products – cont’dProducts – cont’d

3.0 Individual Differences in Innovativeness3.0 Individual Differences in Innovativeness People differ greatly in their readiness to try new People differ greatly in their readiness to try new

products.products. In each product area, there are ‘In each product area, there are ‘consumptionconsumption

pioneers’pioneers’ and early adopters. Other individuals and early adopters. Other individuals adopt new products much later. The late majority adopt new products much later. The late majority are skeptical – they adopt an innovation only are skeptical – they adopt an innovation only after a majority of people have tried it.after a majority of people have tried it.

The early adopters tend to be relatively younger, The early adopters tend to be relatively younger, better educated and higher in income – they are better educated and higher in income – they are more receptive to unfamiliar things , rely more on more receptive to unfamiliar things , rely more on their own values and judgment and are more their own values and judgment and are more willing to take risks.willing to take risks.

The Buyers Decision Process for New The Buyers Decision Process for New Products – cont’dProducts – cont’d

3.0 Influence of product characteristics 3.0 Influence of product characteristics on rate of Adoptionon rate of Adoption

Some products catch on almost overnight Some products catch on almost overnight (Frisbees) whereas other take a long time to gain (Frisbees) whereas other take a long time to gain acceptance (personal computers)acceptance (personal computers)

The following are used to influence an The following are used to influence an innovation’s rate of adoption:innovation’s rate of adoption:

- relative advantage- relative advantage – the degree in which the – the degree in which the product appear superior than the existing product appear superior than the existing productsproducts

- - CompatibilityCompatibility – the degree to which the – the degree to which the innovations fits the values and experiences of innovations fits the values and experiences of potential consumers.potential consumers.

- Complexity- Complexity – The degree in which the – The degree in which the innovation is difficult to understand or use.innovation is difficult to understand or use.

The Buyers Decision Process for New The Buyers Decision Process for New Products – cont’dProducts – cont’d

3.0 Influence of product characteristics on 3.0 Influence of product characteristics on rate of Adoptionrate of Adoption -cont’d -cont’d

- - DivisibilityDivisibility – the degree to which the innovation may – the degree to which the innovation may be tried on a limited basis : an option to lease or to be tried on a limited basis : an option to lease or to buy.buy.

- Communicability- Communicability – the degree to which the – the degree to which the innovative product can be observed or described to innovative product can be observed or described to others.others.

The marketer has to research all the above factors The marketer has to research all the above factors when developing the when developing the new productnew product and its marketing and its marketing programprogram

Other characteristics that influence the rate of Other characteristics that influence the rate of adoption are : initial and ongoing costs, risk and adoption are : initial and ongoing costs, risk and uncertainty, and social approval.uncertainty, and social approval.

Consumer Behavior Across International Consumer Behavior Across International BordersBorders

Values, attitudes and behaviours of consumers vary Values, attitudes and behaviours of consumers vary greatly from country to country.greatly from country to country.

International marketers should understand these International marketers should understand these differences and adjust their products and marketing differences and adjust their products and marketing programs accordingly.programs accordingly.

For example in :For example in : USA – most eat cereal regularly for breakfastUSA – most eat cereal regularly for breakfast France – croissants and coffeeFrance – croissants and coffee India - heavy fried breakfast and 22% may skip India - heavy fried breakfast and 22% may skip

meal meal altogetheraltogether All resulted from physical differences in consumers All resulted from physical differences in consumers

and their environments.and their environments.

Consumer Behavior Across International Consumer Behavior Across International Borders – cont’dBorders – cont’d

Other differences across international markets are Other differences across international markets are also due from varying customs e.g. :also due from varying customs e.g. :

- Shaking your head from side to sideShaking your head from side to side means – ‘ means – ‘nono’ in ’ in most countries but most countries but ‘yes‘yes’ in Bulgaria and Shri Lanka.’ in Bulgaria and Shri Lanka.

- Touching another person -Touching another person -is a sign of warmth and is a sign of warmth and friendship in South America, Southern Europe, and friendship in South America, Southern Europe, and many Arab countries – in the Orient it is considered many Arab countries – in the Orient it is considered an invasion of privacy.an invasion of privacy.

- To leave somethingTo leave something left on your plate when left on your plate when eatingeating is rude in Norway and Malaysia but in Egypt it is is rude in Norway and Malaysia but in Egypt it is rude when rude when not to leave somethingnot to leave something on on your plateyour plate

- In Italy - it is improper for a door –to door In Italy - it is improper for a door –to door salesperson salesperson to call on a womanto call on a woman if she is home alone. if she is home alone.

Consumer Behavior Across International Consumer Behavior Across International Borders – cont’dBorders – cont’d

Failing to understand such differences Failing to understand such differences in customs and behaviours from one in customs and behaviours from one country to another can spell disaster country to another can spell disaster for markets of International products for markets of International products and programsand programs

Marketers must decide on the degree Marketers must decide on the degree to which they will adapt their products to which they will adapt their products and marketing programs to meet the and marketing programs to meet the unique cultures and needs of unique cultures and needs of consumers in various markets consumers in various markets

THE ENDTHE END