Consumers as individuals

Consumers as decision makers

Doc.dr.Ing. Elena Horska

An overview
of the perceptual process
Stimuli sights, sounds, smells, tastes,
textures
Sensory receptors
Attention
Interpretation
Response
Perception

Learning and memory I.

Learning refers to a relatively permanent change in behavior which

comes with experience.
Our knowledge about the world is constantly being revised as we
are exposed to new stimuli and receive feedback that allows us to
modify behavior in other, similar situation.
Concept of learning covers many aspects starting from simple
consumers association between a stimulus such as a product logo
and a response to a complex series of cognitive activities (like
explaining others benefits of new product or service).
Behavioral learning theories assume that learning take place as the
result of responses to external events. For instance, consumers who
are satisfied on a restaurant choice will be more likely to go that
restaurant again, especially in case also their children will support
such idea.

Learning and memory II.

In the context of globalization more and more international companies are

looking for opportunities to find business partners in the rapidly growing
countries and regions, India, China, Golf Cooperation Council countries and
Central Europe including. Tough, this is not always easy because of basic
differences between the regions.
These are not only economic and political ones, but also gaps with social,
religious and geographic background. Different articulation of targets and
wishes, hazy definition of words and one-way reporting in each others
media causes often an escalation of possible misunderstandings. The
environment refers to all the physical and social characteristics of a
consumers external world, including physical objects (products and stores),
spatial relationship (locations of stores and products in stores), and the
social behavior of other people (who is around and what they are doing).
The environment can influence consumers affective and cognitive
responses and their behavior. For instance, consumers respond to a new
store by interpreting features of this environment and deciding what
behaviors to perform to accomplish their shopping goals

Flows of Influence in the Social Environment

Culture

National values,
attitudes,
norms

Communicating homogenized
standards

Subculture

Social class

Organizations

Reference groups

Individual consumers

Family

Media

Learning and memory

case of India I.

In large countries as India for instance is there is an evident

difference among individual subcultures and social classes,
supported by geographical dimensions, too. This country, which is
with 3.287.590 km the seventh largest of the world and inhabited by
members of many different religious communities developed
significant differences in the eating habits.
How did McDonalds adapt itself to those conditions? Basically a
screening of the regions was carried out. Even nowadays
McDonalds is not represented in all federal states of India.
Generally there are only restaurants in those cities, which show a
higher percentage of Indians with high incomes. McDonalds has
132 restaurants in India of which 79 are in North & East India
(including 33 restaurants in Delhi) and 53 in West & South India
(including 23 in Mumbai).

Learning and memory

case of India II.

Due to the size of the country, McDonalds didnt succeed in neither

creating a uniform Indian McDonalds nor in enforcing a uniform
marketing strategy for India. Rather a compromise had to be found
by separating the country in two main regions (the West & South
zone and the North & East zone) and different federal states. This is
also evident with the internet presence of the company at
http://www.mcdonaldsindia.com.
There are completely different marketing strategies as well as
different products in the two main regions. Whereas the Chicken
Maharaja Mac symbolizes an association with India in the West &
South zone, in the North & East region it is the wrap. It is also
striking, that in the North & West region you can find the product
prices in the internet presence whereas this is not the case in the
West & South zone.

Behavioral learning theories

Behavioral learning theories assume that learning
takes place as the result of responses to external events.
They approach the mind as black box and emphasize
the observable aspects of behavior. According to such
theories consumers respond to brand names, scents,
jingles and other marketing stimuli based on the learned
connections they have formed over time. Consumers
who are complimented on a product choice will be more
likely to buy that brand again, while those who get food
poisoning at a new restaurant will not be likely to
patronize it in the future.

Cognitive learning theories

Cognitive learning theories assume that learning is a result of mental processes. In

contrast to behavioral theories of learning, cognitive learning theory stresses the importance
of internal mental processes. This perspective views people as problem-solvers who actively
use information from the world around them to master their environment. Supporters of this
viewpoint also stress the role of creativity and insight during the learning process (Solomon et
al, 2006).
As a part of learning Peter and Olson (2008) define vicarious learning as a process by
which people change their behaviors because they observed the actions of other people and
the consequences that occurred. In general, people tend to imitate the behavior of others
when they see it leads to positive consequences and to avoid performing the behavior of
others when they see that negative consequences occur. Vicarious learning is also called
modeling when consumers can observe the model, live modeling, and symbolic modeling in
TV commercials or opinions leaders. Learning process is an inevitable part of transferring the
consumer habits from one country to another. It occurs in changing of attitudes, values and
actions and in case of effective marketing strategy and tactics of multinational companies can
lead to desired consumer behavior.
Effective learning process supported with attractive external stimulus can overcome
differences in consumption culture internationally. Some analysts see the entire world as
moving toward an Americanized culture, McDonalisation, Coca-colonization or
materialism from a certain point of view. Especially, young consumers are more likely to
recognize and adopt new consumer patterns as it is shown in a case McDonalds in Slovakia.
Research results show that young generation of Slovak customers tends to behave as so
called global customer following some universal rules of purchasing and consumer habits.

Fusion of cultures I.

The example of McDonalds in Middle East is used to mention the tendencies

of homogenization, which lead, in the course of standardization and
unification, to a fusion of cultures. If the global consumer behaviour and other
areas of everyday life are adapting more and more, local traditions are
gradually replaced by a unified culture. Especially in the Arabic cultures, with
their strong ethical values, it is possible not only to set ones own conditions
to McDonalds but also to aim interesting interdependencies. McDonalds
Saudi Arabia plays an active role since 1993 in supporting local social and
humanitarian entities and brings in old standards and new ideas. In addition,
restaurants in Saudi Arabia do not display statues or posters of Ronald
McDonald, since the Islamic father prohibits the display of Idols. In SaudiArabia the regulations of a separated family room and single room as well
as the closing hours during the devotions have to be complied with.
And since McDonalds believes in localization, it has introduced new products
that appeal to the local tastes of the customers. A good example is the
McArabia Chicken, which has so far enjoyed huge success among the
customers. Originally this product was developed from Arabic fast food
restaurants. But also in Europe the Muslims keep their influence on the range
of products, they are not willing to get influenced or accustomed to non-halal
products at any cost.

Fusion of cultures II.

Marketing strategy of McDonalds in India is going to be even a little bit more complex
in a subcontinent and multiethnic state like India. Apart from the Moslems, who are
represented in all regions with 5-15 % of the population, the religious community of
the Hindus forms a significant majority in some areas. This group declines the
consumption of any products from cows for religious reasons. From the perspective
of the marketing department of McDonalds therefore the challenge results, that
neither cow products nor pork products can be offered. Additionally, most of the
Indians consider the products of McDonalds as too expensive, very often there are
more expensive than a whole meal in a typically Indian restaurant.

The main part of the Indian McDonalds products is based on a vegetarian basis,
followed by a high share of fish- and chicken products. There where pork and beef,
which is common in Europe and Arabia, can not be replaced by implication, lamb and
goat is used. Thereby also typical Indian food is used as an addition to the basic
range. McDonald's plans to open another 40 restaurants across India, bringing the
total to close to 200, he said in an interview. Last year, the fast-food giant opened
about 25 restaurants. The popularity of Chicken McNuggets has helped boost sales
since their May introduction in India, he said. The deep-fried chicken pieces have sold
so well that some McDonald's stores were running out, he said. "We had to slow
down the marketing campaign."

Core values and social groups,

cultural process

As a part of marketing analysis of cultural content the core values of the

society or social group have to be identified. Knowing the core values can
help marketers to design a right product for a customer with ability satisfying
his/her needs and wants. Long-term impact of globalization of cultures and
values can result in changes of core values and lifestyle followed by
changes in purchasing and consumer behavior. From this point of view the
process of globalization powered by impact of media and publicity can lead
to a new market opportunity, especially for globalized products. Peter and
Olsen (2008) define the cultural process as transfer of cultural meaning
between social and physical environment, products and services and
individuals in the society.
There are two ways meaning is transferred in a consumption-oriented
society. First, marketing strategies are designed to move cultural meanings
from the physical and social environments into products and services in an
attempt to make them attractive to consumers. Second, consumers actively
seek to acquire these cultural meanings in products to establish a desirable
personal identity or self-concept.

Role of learning, memory and process of socialization in the degree of

marketing mix adaptation
Adapting strategy to culture means
accepting...

National values, beliefs

Traditional process of socialization

(from older to younger generation

Memory from past learning

Standardizing strategy across cultures

means several actions ....

Learning process

Intergeneration socialization (from younger

generation to older one)

Marketing communication