Consumer Buying Behaviour ---- Lesson 7

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CONSUMER BUYING

BEHAVIOUR

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A. Model of consumerbehaviour

Consumers make many buyingdecisions every day. Most largecompanies research consumer

buying decisions in great detail toanswer questions about whatconsumers buy, where they buy, how

and how much they buy, when theybuy, and why they buy.

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Marketers can study actual consumerpurchases to find out what they buy,where, and how much. But learning

about the whys of consumer buyingbehavior is not so easythe answersare often locked deep within the

consumer's head.

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The central question formarketers is: How do

consumers respond to variousmarketing efforts the companymight use? Why do they

respond in this way?

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The starting point is the stimulus-response model of buyer. This figureshows that marketing and other

stimuli enter the consumer's "blackbox" and produce certain responses.

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Model of consumerbehaviour

Marketing stimuli consist of the fourPs: product, price, place, andpromotion. Other stimuli include

major forces and events in thebuyer's environment: economic,technological, political, and cultural.

All these inputs enter the buyer'sblack box.

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Consumer purchases are influencedstrongly by cultural, social, personal,and psychological characteristics, as

shown in Figure For the most part,marketers cannot control suchfactors, but they must take them into

account.

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Factors influencingconsumer behaviour

Markets have to be understoodbefore marketing strategies can bedeveloped. People using consumer

markets buy goods and services forpersonal consumption. Consumersvary tremendously in age, income,

education, tastes, and other factors.

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Consumer behavior is influenced by thebuyer's characteristics and by thebuyer's decision process. Buyer

characteristics include four majorfactors: cultural, social, personal, andpsychological. We can say that followingfactors can influence the Buyingdecision 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 amongmembers).

Consumption choices cannot be understood without

considering the cultural context in which they are made.

Culture forms the prism through which people view productsand try to make sense of their own and other peoplesbehaviour.

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 aperson's wants and behaviour.Human behaviour is largely learned.

Growing up in a society, a childlearns basic values, perceptions,wants, and behaviours from the

family and other importantinstitutions.

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A person normally learns or is exposedto the following values: achievementand 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 buyingbehaviour may vary greatly from

country to country. Failure to adjust tothese differences can result inineffective marketing or embarrassing

mistakes.

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Cross Cultural MarketingBlunders

In 2002, Umbro the UK sportsmanufacturer had to withdraw itsnew trainers (sneakers) called the

Zyklon. The firm received complaintsfrom many organisations andindividuals as it was the name of the

gas used by the Nazi regime tomurder millions of Jews inconcentration camps.

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Sharwoods, a UK foodmanufacturer, spent 6 million on acampaign to launch its new 'Bundh'

sauces. It received calls fromnumerous Punjabi speakers tellingthem that "bundh" sounded just like

the Punjabi word for "arse".

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Proctor & Gamble used a televisioncommercial in Japan that was popularEurope. The ad showed a woman in

the bathroom with a well knownItalian footballer. The Japaneseconsidered this ad an invasion of

privacy, inappropriate behaviour, andin very poor taste.

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

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In the late 1980s the Italian pastamakers Barilla employed the greatItalian film director Federico Fellini to

make some adverts for them. Whatappears to be a normal advert is infact quite rude

http://www.youtube.com/watch?v=Ym3

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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 launchedits ad campaign entitled "So wherethe bloody hell are you?" in Britain.

The $130 million (US) campaign wasbanned by the British AdvertisingStandards Authority from the United

Kingdom

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The campaign featured all thestandard icons of Australia such asbeaches, deserts, and coral reefs, as

well as traditional symbols like theOpera House and the SydneyHarbour Bridge.

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

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One company printed the "OK" fingersign on each page of its catalogue. Inmany parts of Latin America that is

considered an obscene gesture. Sixmonths of work were lost becausethey 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

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A US telephone company tried tomarket its products and services toMexican by showing a commercial in

which a Mexican wife tells herhusband to call a friend, telling herthey would be late for dinner. The

commercial bombed since Mexicanwomen do not order their husbandsaround and Mexicans dont worryabout their guests being late,Mexicans always are!.

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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 aredifferent.

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Cultures can be divided between

Collectivist cultureswhere peoplesubordinate their personal goals to thoseof a stable in-group.

Individualist cultureswhereimportance is attached to personal goalsand where people are more likely to

change memberships when the demands

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Geert Hofstede

The man who put corporate cultureon the mapalmost literallyGeertHofstede defined culture along fivedifferent dimensions. Each of these

he measured for a large number ofcountries, and then made cross-country comparisons. In the age of

globalisation, these have been usedextensively by managers trying tounderstand the differences betweenworkforces in different environments.

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Early in his career he worked for IBM,where he carried out the research onwhich his career and reputation

subsequently rested. What hasbecome known as the HofstedeCultural Orientation Model is based

on his study between 1967 and 1973of IBM employees in 40 differentcountries.

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Initially, the model classified culturealong four different dimensions:

Individual versus collective(IDV). This refers to the extent towhich individuals expect only to lookafter themselves and their

immediate families, compared withthe extent to which there is a tightsocial framework in which people

expect the groups to which they

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Power distance index (PDI). Thisrefers to the extent to which asociety accepts that power in

institutions and organisations isdistributed unequally. Countrieswhere PDI is low generally favour

decentralised organisations, whereasthose with a high level of PDI aremore accepting of centralisedauthority.

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Uncertainty avoidance index(UAI). This is the extent to whichemployees feel threatened by

ambiguity, and the relative importancethat they attach to rules, long-termemployment and steady progression

up a well-defined career ladder.

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Masculinity (MAS). This refers tothe nature of the dominant values inthe organisation. For example, is it

predominantly influenced bymasculine values such asassertiveness and monetary focus,

rather than feminine values such asconcern for others and the quality ofrelationships?

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Hofstede subsequently added a fifthdimension after carrying out a studyof Chinese managers and workers

during his time in Hong Kong. This hecalled long-term orientation (LTO),which refers to the different time

frames used by different people andorganisations. Those with a short-term view are more inclined towardsconsumption and to maintaining faceby keeping up with the neighbours.

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Hofstede has subsequentlydeveloped his work into a system forscoring individual countries

according to their culture. Thedifferences can be dramatic andsurprising. Greece, for instance,

scores 112 on the UAI dimensionwhile Denmark, a fellow member ofthe European Union, scores only 23.

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Less surprisingly perhaps, Swedenscores only five on the MAS of itsorganisations, while persistently

chauvinistic Japan scores 95. On LTO,while China excels with a score of 118,the not-so-far-away Philippines scores amere 19.

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