CONSUMER BUYING BEHAVIOUR

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A. Model of consumer behaviour

Consumers make many buying decisions every day. Most large companies research consumer buying decisions in great detail to answer questions about what consumers buy, where they buy, how and how much they buy, when they buy, and why they buy.
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Marketers can study actual consumer purchases to find out what they buy, where, and how much. But learning about the whys of consumer buying behavior is not so easythe answers are often locked deep within the consumer's head.

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The central question for marketers is: How do consumers respond to various marketing efforts the company might use? Why do they respond in this way?
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The starting point is the stimulusresponse model of buyer. This figure shows that marketing and other stimuli enter the consumer's "black box" and produce certain responses.

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Model of consumer behaviour

Marketing stimuli consist of the four Ps: product, price, place, and promotion. Other stimuli include major forces and events in the buyer's environment: economic, technological, political, and cultural. All these inputs enter the buyer's black box.
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Consumer purchases are influenced strongly by cultural, social, personal, and psychological characteristics, as shown in Figure For the most part, marketers cannot control such factors, but they must take them into account.

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Factors influencing consumer behaviour

Markets have to be understood before marketing strategies can be developed. People using consumer markets buy goods and services for personal consumption. Consumers vary tremendously in age, income, education, tastes, and other factors.

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Consumer behavior is influenced by the buyer's characteristics and by the buyer's decision process. Buyer characteristics include four major factors: cultural, social, personal, and psychological. We can say that following factors can influence the Buying decision of the buyer:

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a. Cultural b. Social c. Personal d. Psychological

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Culture can be viewed as the collective memory of a society (shared meanings, rituals, norms and traditions among members). Consumption choices cannot be understood without considering the cultural context in which they are made. Culture forms the prism through which people view products and try to make sense of their own and other peoples behaviour. A consumers culture determines:

the overall priorities she/he attaches to different activities and products the success or failure of specific products and services.
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Culture is the most basic cause of a person's wants and behaviour. Human behaviour is largely learned. Growing up in a society, a child learns basic values, perceptions, wants, and behaviours from the family and other important institutions.
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A person normally learns or is exposed to the following values: achievement and success, activity and involvement, efficiency and practicality, progress, material comfort, individualism, freedom, humanitarianism, youthfulness, and fitness and health.

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Every group or society has a culture, and cultural influences on buying behaviour may vary greatly from country to country. Failure to adjust to these differences can result in ineffective marketing or embarrassing mistakes.

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Cross Cultural Marketing Blunders

In 2002, Umbro the UK sports manufacturer had to withdraw its new trainers (sneakers) called the Zyklon. The firm received complaints from many organisations and individuals as it was the name of the gas used by the Nazi regime to murder millions of Jews in concentration camps.
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Sharwoods, a UK food manufacturer, spent 6 million on a campaign to launch its new 'Bundh' sauces. It received calls from numerous Punjabi speakers telling them that "bundh" sounded just like the Punjabi word for "arse".

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Proctor & Gamble used a television commercial in Japan that was popular Europe. The ad showed a woman in the bathroom with a well known Italian footballer. The Japanese considered this ad an invasion of privacy, inappropriate behaviour, and in very poor taste.

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http://www.youtube.com/watch?v=kTZud

In the late 1980s the Italian pasta makers Barilla employed the great Italian film director Federico Fellini to make some adverts for them. What appears to be a normal advert is in fact quite rude

http://www.youtube.com/watch?v=Ym3s

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In 2004, China banned a Nike television commercial showing U.S. basketball star LeBron James in a battle with animated cartoon kung fu masters and two dragons, because it was argued that the ad insults Chinese national dignity.

http://www.youtube.com/watch?v=bPJPe

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In 2006, Tourism Australian launched its ad campaign entitled "So where the bloody hell are you?" in Britain. The $130 million (US) campaign was banned by the British Advertising Standards Authority from the United Kingdom

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The campaign featured all the standard icons of Australia such as beaches, deserts, and coral reefs, as well as traditional symbols like the Opera House and the Sydney Harbour Bridge.

http://www.youtube.com/watch?v=TebeN

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One company printed the "OK" finger sign on each page of its catalogue. In many parts of Latin America that is considered an obscene gesture. Six months of work were lost because they had to reprint all the catalogues. A cologne for men pictured a pastoral scene with a man and his dog. It failed in Islamic countries 3/17/12

A US telephone company tried to market its products and services to Mexican by showing a commercial in which a Mexican wife tells her husband to call a friend, telling her they would be late for dinner. The commercial bombed since Mexican women do not order their husbands around and Mexicans dont worry about their guests being late, 3/17/12 Mexicans always are!.

A consumers culture determines: the overall priorities she/he attaches to different activities and products the success or failure of specific products and services. Dont lets forget all cultures are different.
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Cultures can be divided between

Collectivist cultures where people subordinate their personal goals to those of a stable in-group. Individualist cultures where importance is attached to personal goals and where people are more likely to change memberships when the demands 3/17/12

Geert Hofstede

The man who put corporate culture on the mapalmost literallyGeert Hofstede defined culture along five different dimensions. Each of these he measured for a large number of countries, and then made crosscountry comparisons. In the age of globalisation, these have been used extensively by managers trying to understand the differences between workforces in different environments.
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Early in his career he worked for IBM, where he carried out the research on which his career and reputation subsequently rested. What has become known as the Hofstede Cultural Orientation Model is based on his study between 1967 and 1973 of IBM employees in 40 different countries.
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Initially, the model classified culture along four different dimensions: Individual versus collective (IDV). This refers to the extent to which individuals expect only to look after themselves and their immediate families, compared with the extent to which there is a tight social framework in which people expect the groups to which they 3/17/12

Power distance index (PDI). This refers to the extent to which a society accepts that power in institutions and organisations is distributed unequally. Countries where PDI is low generally favour decentralised organisations, whereas those with a high level of PDI are more accepting of centralised authority.
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 Uncertainty avoidance index (UAI). This is the extent to which employees feel threatened by ambiguity, and the relative importance that they attach to rules, long-term employment and steady progression up a well-defined career ladder.

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 Masculinity (MAS). This refers to the nature of the dominant values in the organisation. For example, is it predominantly influenced by masculine values such as assertiveness and monetary focus, rather than feminine values such as concern for others and the quality of relationships?
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Hofstede subsequently added a fifth dimension after carrying out a study of Chinese managers and workers during his time in Hong Kong. This he called long-term orientation (LTO), which refers to the different time frames used by different people and organisations. Those with a shortterm view are more inclined towards consumption and to maintaining face 3/17/12 by keeping up with the neighbours.

Hofstede has subsequently developed his work into a system for scoring individual countries according to their culture. The differences can be dramatic and surprising. Greece, for instance, scores 112 on the UAI dimension while Denmark, a fellow member of the European Union, scores only 23.
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Less surprisingly perhaps, Sweden scores only five on the MAS of its organisations, while persistently chauvinistic Japan scores 95. On LTO, while China excels with a score of 118, the not-so-far-away Philippines scores a mere 19.

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