1 •Customer & Consumer behaviour •and international marketing • • http://www.youtube.com/watch?v=NA617W6pWPQ&feature=related 2 Custmer/Consumer behaviour •Customer/Consumer behaviour: •the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society. • •The Nature of Customer/Consumer Behaviour: • •External Influences •Internal Influences •Self-Concept •Situations •Experiences and acquisitions • 3 Customer/Consumer behaviour = Why, where, what, with whom, how… who buys: some issues •+ whether •+ –How much? –How often? –Which effect is stronger? –What if…? –What do we do before, during and after buying? – • Gitanes? I buy a Chinese car? 4 Consumption – contextualizing the „why“ and cultural differences WHY Consumption motives, goals and desires HOW Cognitive and affective processes WHAT products WHO Inter-individual, inter-group, and cross-cultural differences among consumers/customers WHEN and WHERE Situation/contextual differences 5 ebm 6 Buyer Behaviour Model buyer’s black box Needs - wants, stimuli Product, price, place, promotion etc Environmental (PEST) factors Buyer responses Choices of •product •brand •dealer •timing •price Buy more, less, stay loyal etc. 7 Consumption and marketing IM1 8 Influences on Consumer Behaviour •Cultural •broadest & deepest influence •cultures & subculture •social classes •Social •Family •Social roles and status (multiple) •Reference groups –Membership - primary vs. secondary –Aspirational vs. dissociative • Personal nAge nLife cycle stage nOccupation nEconomic circumstances nLifestyle nPersonality nSelf-concept Psychological nMotivation nPerception nLearning nBeliefs nAttitudes 9 The Concept of Culture Cultural values give rise to norms and associated sanctions, which in turn influence consumption patterns. Cultures are not static. They typically evolve and change slowly over time. haw01370_0202 Alcohol in Muslim countries, USA and ??? 10 Personal influences •Perception •"mind" processes - selection, association, organisation & interpretation. We –only note some things (selective) i.e. what grabs attention + distortion & retention –associate & categorise information into meaningful wholes –interpret/make inferences •information framing e.g. –good news or bad news first ? –accentuate the positives, eliminate the negatives •Learning –classical & operant conditioning –cognitive learning •by rote •vicarious (from others) •reasoning •what motivates us •what we believe in –real knowledge, opinion or faith •Our attitudes –relatively consistent evaluations, feelings, tendencies towards something –Three components •cognitive (belief), •affective (feeling), •conative (behavioural) •personality •self-concept, lifestyle & life cycle stages • 11 11 Perceptual, conceptual & related capacities •Perceptual - Sensing, measuring, judging –Colour, sound, texture, smell. Interpreting smells, noises, signals –Monitoring sounds, vibrations, data, information –Frames of reference – what is your “vantage point” •Conceptual –associating, abstracting, formulating, calculating, inferring –understanding processes in the abstract –deriving ideas & predicting from associated, comparative information –depends on knowledge and know-how (range & level) –dealing with symbolic information + its associations •Relating - Ego + alter-ego oriented: –need for achievement, power, affiliation –sensitivity and empathy, identification and association, objective-subjective, attitudes and values •Physical –Storage, access, processing & transmission capacity, security, privacy – Made in? 12 Lifestyle •Lifestyle = mode of living identified by: –Activities (work, hobbies etc.) –Interests –Opinions (political, social, etc.) • •Related to personality, but different: –more observable (less deep) –easier to measure • •Measured through AIO scales 13 Different values IM2 14 Values and culture - oil? IM3 15 Some factors influencing different Customer/consumer behaviour •Geography •Regulations and rules •Migration •Employment rate •Working part-time •Display of wealth and money – egalitarianism •Occupational prestige •Class structure and social mobility (education, entrepreneurship, income…) •Age 16 •Power distance (equality or inequality in interpersonal interactions?) –Low power distance (power is equally distributed) West –High power distance (hierarchy is strong) Asia •Uncertainty avoidance (the attitude towards risk in society?) –Low uncertainty avoidance (calculated risk is necessary) USA –High uncertainty avoidance (risk is threatening & to be avoided) Japan •Individualism versus collectivism (Do people rely on others or themselves?) –Individualist (self reliance is valued) West –Collectivist (dependence is valued, and society expects individual to subordinate own needs) Asia •Masculinity versus femininity (To what extent and at whose expense should the weaker members of society be cared for?) –Feminine (caring and nurturing roles are favoured) Scandinavia –Masculine (personal achievement and assertiveness are favoured) Great Britain – • And what about cultural dimensions? (Geert Hofstede) 17 Age and… IM5 18 And what about Hall´s cultural dimensions? •Time •Distance + space •Message • • Siesta? Bazaar? 19 RITUALS - A typology of ritual experience... •cosmological - religious, aesthetic, sacred – places, people, events, items, sacralization – stars •cultural – festivals, holidays (Valentine´s Day…), graduation, wedding, funeral •group - fraternity initiation, business negotiations, gift-giving, New year´s Eve •individual - grooming, household rituals – birthday, eating, Christmas, Halloween… •biological - greeting, mating •exchange rituals •possession rituals •divestment rituals • • What Rituals Are Associated With??? And selling and shopping rituals??? 20 Buyer Decision Process •Problem Recognition •Information Search •Evaluation of Alternatives •Purchase Decision •Consumption •Postpurchase behaviour • •Consuming as experience •Consuming as integration •Consuming as classification •Consuming as play The meaning of consumption? The Czechs and sushi? Relationship with a product: -self-concept attachment – helps to establish the user´s identity - nostalgic attachment – serves as a link with a past self - interdependence – part of the user´s daily routine -love – elicits bonds of warmth, passion or other strong emotion 21 Buying roles and opinion formers •BUYING ROLES • •Initiator •Influencer •Decider •Buyer •User •OPINION FORMERS •Trendsetters –influential people in a group who •purchase new products early •serve as information sources for others •The Media –TV, newspapers, magazines, Internet communication –commentators –the media need "stories" •Sellers & Marketers –"seeding" the media. Pay media producers for product placement in "publication channels" –From a Fashion house to Primark –Advertising, promotions & incentives –Word-of-mouth - viral • 22 22 Opinion formers •Trendsetters –influential people in a group who •purchase new products early •serve as information sources for others •The Media –TV, newspapers, magazines, Internet communication –commentators –the media need "stories" •Sellers & Marketers –"seeding" the media. Pay media producers for product placement in "publication channels" –From a Fashion house to Primark –Advertising, promotions & incentives –Word-of-mouth - viral 23 Buyer decisions • •Product Choice •Brand Choice •Dealer Choice •Purchase Timing •Purchase Amount • 24 Choice criteria •attributes and variables -a consumer uses when evaluating products & services •different members of buying centre obviously may use different criteria Social status social belonging fashion Personal self-image risk reduction morals emotion Technical reliability durability performance style/looks comfort delivery convenience taste Economic price, VfM running costs residual value life cycle costs 25 Disposal options and differences IM4