Introduction; Consumer Behavior and Marketing Strategy and Cultural influences on consumer behavior
Why study consumer behaviour?
• By studying consumer behaviour we try to understand & gain insight into: – Consumer decision making processes
– What we buy, how we buy, and why we buy
• Enables us to become better consumers and marketers
Definitions of 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 dynamic interaction of cognition, behaviour and environmental events by which human beings conduct the exchange aspects of their lives (American Marketing Association)
• Those behaviours performed by decision-making units in the purchase, usage and disposal of goods and services (Kotler & Levy) • The decision process and physical activity individuals engage in when evaluating, acquiring, using or disposing of goods and services (London & Della Bitta) Application of Consumer Behavior
Marketing Strategy/ regulatory Policy/Social Marketing/Informed Individual Consumer Behaviour and Marketing Strategy
Cross Cultural Variations in Consumer Behavior
Culture is the most pervasive external force on an individual’s consumption behavior. It would be difficult to overlook the importance of culture as a motivator of consumer behavior. The attitude people possess, the values they hold dear, the lifestyles they enjoy and the interpersonal behavior patterns they adopt are the outcomes of the cultural settings. Failure to carefully consider cultural differences is often responsible for monumental marketing failure. The concept of Culture
Culture is the complex whole that includes knowledge, belief, art, law, morals, customs and any other capabilities and habits acquired by humans as members of society. ▪ First, culture is a comprehensive concept. It includes almost everything that influences an individual’s thought processes and behaviors. ▪ Second, culture is acquired. It does not include inherited responses and predispositions. Much of human behavior is learned rather than innate, culture does not affect a wide array of behaviors. ▪ Third, the complexity of modern societies is such that culture seldom provides detailed prescriptions for appropriate behavior. Culture provides boundaries within which most individual think and act. ▪ Finally, the nature of cultural influences is such that we are seldom aware of them. One think behave, feels in a manner consistent with other members of the same culture because it seems “natural” or “right” to do. The boundaries that culture sets on behavior are called Norms which are simple rules that specify or prohibit certain behaviors in specific situations Norms are derived from Cultural Value, widely held beliefs that shared standards of what is acceptable or unacceptable, good or bad, desirable or undesirable. Violation of cultural norms results in sanctions, or penalties ranging from mild social disapproval to banishment from the group. Variations in cultural values
• Cultural values are widely held beliefs that affirm what is desirable. A useful approach to understanding cultural variations in behavior is to understand the values embraced by different cultures. The classifications of cultural values
1. Other oriented[Individual/Collective, Youth/Age, extended/Limited Family, Masculine/feminine, Competitive/Cooperative, Diversity/Uniformity] 2. Environmental oriented [ Cleanliness, Performance/Status, Tradition/Change, Risk Taking/Security, Problem solving/Fatalistic, Nature] 3. Self-oriented [ Active/Passive, Sensual gratification/Abstinence, Material/Nonmaterial, Hard work/Leisure, Postponed gratification/immediate gratification,...