Professional Documents
Culture Documents
Chukwuemeka
Odumegwu
Ojukwu
University
Faculty
of
Management
Science
Department
of
Marketing
Course
Lecturer:
Dr.
M.O
Mojekeh
Course:
MKT
926
(Behavioural
Aspects
of
Marketing)
Assignment
Submitted
By
Uchenna
Michael
Nworah
In
partial
fulfillment
of
the
requirements
of
the
Course
MKT
926
(Behavioural
Aspects
of
Marketing)
for
the
award
of
the
Doctor
of
Philosophy
degree
(PhD)
in
Marketing
14/06/17
Question 1: Who is a competent marketer and what are the practical
steps to becoming a competent marketer?
To describe who a competent marketer is, it is important to first describe who
a marketer is and also identify certain characteristics that a marketer
possesses.
A marketer is an individual or professional who has been trained to perform
the marketing function of identifying the needs of clients, customers and
prospects and satisfying these needs profitably. The training and skills of the
marketer acquired through rigorous training combined with long years of
professional practice equips him with the necessary skills and competences
such that he or she is able to apply the right marketing strategies and tactics
at any marketing situation to satisfy the needs and requirements of the
prospects profitably.
To be able to perform his or her expected job functions as a marketer, the
marketer possesses certain distinct characteristics. These are;;
(A) Professionalism: The marketer is a professional and therefore must act or
behave as one. The same way a medical doctor, lawyer or engineer is
regarded as a professional, belongs to a professional body and is bound by
professional ethics and rules of conduct, so is a marketer also a professional
and is subject to the regulations, ethics and operational codes of the
marketing profession. In Nigeria, professional marketing practice is regulated
by the National Institute of Marketing of Nigeria (NIMN). In the United
Kingdom, the marketing profession is regulated by the Chartered Institute of
Marketing (CIM).
(B) The marketer is guided by the marketing concept or marketing orientation.
This means a total belief in the concept that the consumer is king, therefore
their needs and satisfaction of those needs must be prioritized. Marketing
orientation means an understanding by the marketer that the success of the
business is dependent on the business successfully identifying the needs of
the customers and satisfying those needs. This is different from the selling
concept or sales orientation where businesses simply create products and
then go about selling them, not minding if the goods meet customer
expectations and requirements.
(C) The marketer uses market research to identify the needs of the prospects.
Consumer tastes vary over time;; such tastes could also be seasonal. Market
research provides the marketer with the relevant, accurate, timely and reliable
data which he or she then uses to plan his marketing strategy and tactics.
(D) After using market research to identify the needs of the prospects, the
marketer then goes about satisfying these needs through making suitable
marketing mix decisions. The right products are created, promoted through
relevant promotional platforms, sold at the right prices and finally displayed
at the right places and distribution channels. The marketer does all these at a
2
profit as he or she has to return a reasonable margin on the investments the
business has made in the marketing effort.
(E) Consumer Advocacy: In as much as the marketer aims to make a profit,
he or she must also champion the cause of the consumers and help
guarantee and protect their rights. For example, the consumers should be
given the rights to return defective products, they should be charged a fair
price, the marketer should provide them with adequate information about the
products and services, the ingredients used in making them especially for
drugs and food items, the side effects of consumption, product return policies
etc. The marketer knows that championing consumer rights in the long run
guarantees long time success and helps contribute to his or her professional
practice of sustainable marketing.
If the marketer does not protect the rights of the consumers or champion their
issue, in the long run, there will be no customer left to be serviced and the
business will close down. If the customers perceive that the marketer is one
that champions their rights, through word of mouth and other means, the
customers will spread the good news and indirectly win the marketer new
customers.
In summary, it is not every person who markets a product or service that is a
marketer. The professional marketer in the context of this essay is a marketer
who has undergone academic or professional training in marketing, has learnt
the theories and principles of marketing, belongs to a professional marketing
body and also subjects himself or herself to the ethics, codes and guidelines
governing the practice of the marketing profession. Such a person also
subscribes to the principles of marketing concept and marketing orientation.
He or she must care about the customer, respect their rights and aim to
satisfy their needs at a profit. He or she must not operate like a ‘fly-by-night’
cowboy who just aspires to sell once using underhand tactics without caring
about repeat purchases, relationships with the buyers or what happens
tomorrow as a result of his or her shady marketing practices.
Who is a competent marketer?
A competent marketer is first a marketer. It is the level of his or her marketing
expertise, experience, skills, knowledge, commitment and dedication to the
tenets of the profession that makes him a competent marketer.
Competency is achieved through successes in marketing projects and
activities over time. The competent marketer executes his many marketing
assignments and achieves set marketing and corporate objectives effectively,
efficiently, responsibly and responsively.
A competent marketer, armed with his knowledge of marketing theories and
principles, skills and marketing experience additionally has to operate and
perform at five different levels in the course of his professional practice in
order to achieve stated marketing and corporate objectives.
3
The five different levels are best explained using the diagram below:
• Collect facts
&
• Undestand
the
• Break
down
• Put
together
a
• Review
data
about
a
various
the
problem comprehensive
marketing
marketing
dimensions
of
and
dimension
strategic plan
strategy
and
problem
&
the
marketing
them
to
that
provides
tactics
solution problem discover
best
soultions
to
the
• Monitor
solution marketing
progress
problems
Ozo 2002, page 378 cited in Mojekeh 2011 page 483 describes who a
competent marketer is;;
(A) A professional marketer who can formulate a plan that can help a
business to achieve both marketing and overall corporate objectives.
(B) A professional marketer who can proffer solutions to marketing and other
organisational problems and challenges.
(C) A professional marketer who understands the local Nigerian environment
as well as the international environment, the implications of the PEST factors
on marketing activities and the business in general. He or she also knows the
right mix of strategies, plans and tactics to deploy to achieve success.
(D) A professional marketer who has an in-depth knowledge of the prospects
and customers, understands the needs of the target market and knows how
best to satisfy them profitably.
(E) A professional marketer who understands the competition, the
competitor’s strategies and also knows how to respond or react to such
strategies and tactics.
The Practical Steps to Becoming a Marketer
Mojekeh (2011, page 486 - 487) lists the practical steps a professional
marketer can take to become a competent marketer. These steps include:
(A)The person must have in-depth knowledge of marketing principles,
theories, skills and strategies.
(B) The person must understand consumer behaviour whether in Nigeria or
his particular local market as well as consumers in other environments which
could be international.
(C) Must have knowledge of competitor behaviours and activities through
regular and effective monitoring and tracking of their activities. This will enable
him or her respond adequately.
4
(D) Must have access to resources, materials, books etc. relating to marketing
and marketing practice and read them to keep abreast of emerging practices
locally and abroad.
(E) Must be environmentally aware, both in political, social, economic,
cultural, technological and other issues and factors that may likely impact on
the business.
(F) Must be able to go outside of his comfort zone to acquire knowledge from
other disciplines.
(G) Must have an interest and knowledge of local and international laws,
ethics, codes, rules, laws and guidelines governing marketing and related
disciplines including advertising, public relations, promotion, branding etc.
(H) Must be able to follow trends and have knowledge of developing, breaking
and impacting news locally and internationally.
(I) Must be conversant with political developments in his or her local
environment as well as abroad.
(J) Must understand consumer behavioural influences both cultural,
economic, social and others.
(K) Must be able to forecast and analyze the environment, gather data that
affects marketing planning and related activities of the business.
(L) Must be able to create sustainable marketing programmes and also
initiate/create a favourable environment internally that will engender
successful implementation of marketing strategy, plans, tactics and actions.
Question 2: Who is an opinion leader and what are the characteristics of
an opinion leader in consumer behaviour analysis?
Opinion Leadership
Generally, the concept of opinion leadership explores and describes the level
of relationships and influence that certain members of the society exert on
other members of a particular society. People who are educated, well
informed, wealthy and have higher social standings are looked upon by other
less educated and sometimes not-so-well informed members of the society for
provision of information in certain subjects and disciplines.
An opinion leader in the general sense therefore, is an individual who is held
in high esteem, is well regarded by a group of individuals, community or
members of a society as having expertise, experience and knowledge in
particular disciplines and subjects. The opinion leader is therefore regarded
as a veritable source of information, such that the people who go to him for
information tend to believe what he or she says as being the truth. This all-
5
knowing superior position confers on the opinion leader so much power and
influence over those that look up to him or her and can also be dangerous. If
the opinion leader is the manipulative and exploitative type, he can steer the
the people who look up to him to directions that may be dangerous to their
personal safety and even the safety of the larger society.
We have seen examples where certain religious leaders both of the Moslem
and Christian faiths, who function as opinion leaders in matters of God,
religion and faith have incited their believers to violence using false doctrines.
In America, there have been reported cases of sect and cult leaders inciting
their members to commit mass suicide. An example is the mass suicide case
that happened in Waco, Texas in 2003 by the Davidian Cult.
In marketing practice, an opinion leader is someone who has deep brand or
product knowledge, and may have been a long term user of the particular
product or brand and then offers advice or information, acting in an ‘informal
brand ambassador’ role to prospective purchasers of that product or brand. In
this case, the motive of the opinion leaders may not necessarily be to
influence the prospects to purchase the product or to patronize the brand
since he has no pecuniary gains if the prospect does, but rather to provide
information that helps guide the prospect in making up his or her mind.
In family settings, parents could act as opinion leaders in the purchase of
certain products. The father could advice against purchase of certain brands
based on his previous experience. A friend could also serve as an opinion
leader to another friend who may be requiring information to make purchase
decisions.
Opinion leadership varies. An opinion leader in matters concerning aviation
and choice of air transport companies to chose may lack sufficient information
in other areas example agriculture and may therefore not be a good opinion
leader in matters concerning agriculture.
These days, brands seek out influential personalities who they believe will
exert the most influence on the purchase decisions and buying behaviours of
their prospects and make them brand ambassadors. These brand
ambassadors are contracted and are paid huge sums of money by brands to
endorse their brands. Globacom, Nigeria’s second largest telecom operator
uses a host of musicians, actors and other personalities as opinion leaders to
sell their products and services. Currently, they have the following as their
brand ambassadors;; Richard Mofe-Damijo, Olamide, Mercy Johnson, Basket
Mouth, Wizkid, Zebrudaya and a host of others. There is no evidence or data
to suggest that this strategy that Globacom uses is effective or not but at least
the brand ambassadors help to add excitement to the brand in the minds of
their customers.
6
Characteristics of Opinion Leaders in Consumer Behaviour Analysis
In consumer behaviour analysis, an opinion leader displays certain
characteristics. They are;;
Knowledge and Interest: Opinion leaders exhibit high sense of interest in
particular products and services. They will seek out literature on the products
and read them up likewise related information contained in the product pack,
leaflet, brochure and also on the internet. Through such reading, they gain
deeper knowledge and are then able to offer advice to non-leaders armed
with their wide knowledge.
Consumer Innovators: Opinion leaders fall under early adopters of products.
They are consumer or brand innovators and will invest their resources in
acquiring new products and services. Such acquisitions align with their social
standing as opinion leaders and consumer innovators. When they speak
about the brand which they have already purchased to others, they speak
from a position of authority, experience and knowledge and these increase
their believability and source credibility. Opinion leaders are the ones that will
invest in and be the first to own sophisticated gadgets such as iPhones, iPads
etc. Owning such high priced items increase their standing in the eyes of non-
opinion leaders.
Personality Traits: Opinion leaders possess certain personality traits which
enable them to function as opinion leaders and also exert some level of
influence on others, especially people within their sphere of influence. Such
traits are self-confidence. Credibility, trustworthiness, reliability, sociability,
empathy etc. They make friends easily and are able to widen their social
network through sustainable social relationships.
Attitudes and Intentions: The thinking by marketers is that if they can get
opinion leaders to experience their products by trialing such products, they will
form a positive attitude towards the product. In turn, they will purchase and
also speak positively about the products to others which may influence them
to purchase. Positive attitude and existing purchase intentions can lead to
actual purchase of a product.
Media Habits: Opinion leaders do have high media consumption habits than
non-opinion leaders. They will browse the internet to search for relevant
information about a particular product or service, they will watch television,
listen to radio and also read newspapers and magazines not only in search of
specific product information but they also widen and broaden their knowledge
and world view. This helps them to maintain their ‘well informed’
characteristic.
Social Status Characteristics: Opinion leaders are usually very highly
placed and well regarded members of the society where they live. They share
certain common characteristics with the non-opinion leaders whom they
influence. They dwell in the same area and must somehow have informal
communications, whether in the church, at village squares, at town hall
7
meetings, at age grade meetings etc. with non-opinion leaders. It is through
such meetings, whether formal or informal, that the opinion leader exerts his
influence.
Demographic Characteristics: Opinion leaders may also share similar
demographic characteristics with some of the non-opinion leaders they
influence. For example, if the opinion leader is a woman and the issue or
product is fashion related, it is highly likely that the opinion leader will function
more effectively influencing female members of that particular ‘influence
group’ due to the gender similarity. Trust and affinity would easily be
established in such cases. This is why sometimes, when someone is
speaking to a group that he or she shares similar demographic characteristics
with, the person may say, “I have been there. I wear those shoes too so I feel
what you are saying”.
Lifestyle Characteristics: Opinion leaders lead certain lifestyles that non-
opinion leaders find aspirational and hope to live someday. This is why non-
opinion leaders will purchase certain products that the opinion leader has in
the hope that such purchases help position or lift them into the category or
personae of the opinion leader. The non-opinion leader will receive temporary
joy, satisfaction or upliftment by being complemented on the purchase and
allusion by people that he or she has similar type of phone, for example, to
that owned by the opinion leader.
Question 3: Certain benefits are derivable from consumer behaviour
studies, Discuss.
Consumer behaviour studies is the study of individuals, groups and
organizations and the various influences and motivations that influence their
product purchase and consumption decisions. Consumer behaviour is a multi-
dimensional activity which is influenced by both physical, emotional and
external stimuli.
The consumers can manifest their product purchase decisions and
behaviours overtly (can be easily seen and observed) and covertly (not easily
seen and observed).
There are certain benefits that are derivable from consumer behaviour
studies, these are;;
(A) Consumer behaviour studies help to facilitate the implementation of the
marketing concept. It enables marketers to gain insights into what determines
consumer satisfaction and the various factors that influence their product
purchase and product consumption decisions, what they buy, where they buy,
when they buy, how they buy, at what prices, their post-purchase feelings,
how they discover and find out about the product before they purchase etc.
(B) Determining consumer needs and wants through consumer behaviour
studies helps in successful marketing strategy planning and implementation.
8
(C) Consumer behaviour studies can help a marketer to predict and forecast
product demand quantities and periods when the products will be in high
demand. This has implications for logistics and supply chain management and
helps to eliminate wastages which would have occurred were the products to
be flooded in the market without data on consumer demand quantities.
(D) Consumer behaviour studies helps marketers to predict likely consumer
reactions and responses to marketing activities. During product testing, the
consumers will indicate their likely preferences in product tastes, sizes,
colours, prices etc. Based on these data, the marketer can then plan and
predict the likely outcome of his or her marketing activities.
(E) Consumer behaviour studies helps in efficient utilization of resources.
Marketing resources can be effectively and efficiently allocated to areas of
need or areas of potential high demands. For example, research can be used
to determine consumers’ media consumption habits, with this information, the
marketer will not need to waste scare resources advertising on national
television if the consumers do not have television or do not have electricity to
power their TV sets. The funds meant for TV advertisements can then be
channeled to radio or to other advertising platforms that the consumers will be
exposed to.
(F) Consumer behaviour studies can help marketers to isolate their market
prospects and targets and categorise them into segments. Each segment
displaying unique and distinct characteristics can then be targeted with unique
marketing mix and offerings.
(G) Knowledge of consumer behaviour can be used to assess and evaluate
the performance of marketers by businesses, not just their performance in
product sales and promotion. This is why in banking as well as in other
professions, staff are trained in the process of KYC (Know Your Customer).
The thinking is that if you know your customer, what he or she wants, likes
and where he or she likes to buy, at what prices etc., then the marketer will be
in a better position to service the customers adequately.
(H) Lack of knowledge about the consumer, his behaviours and habits can be
likened to a pilot flying blind, without navigational tools and aids. Information
about consumer behaviour helps the marketer to eliminate marketing strategy
uncertainties. He can then take strategic decisions based on accurate and
reliable data.
(I) Knowledge about consumer behaviour also has other uses, it helps to
increase retail footfalls, helps a marketer to explore new market opportunities,
react to competitor activities etc. Finally, knowledge of consumer behaviour is
relevant not only to marketers that sell products and services but also to other
organisations including universities, media organisations, government
ministries, departments and agencies, the Police and other security agencies
etc. If you identify, segment and know who your clients or customers are, then
you can plan sufficiently to satisfy their needs, wants and desires by providing
them with superior services better than your competitors. This will make them
9
to come back and patronize your business or organisation, they will speak
good about you and inform their friends and family. This is the right thing to do
for any right thinking organisation that is focused on the future, and in
sustainable client and consumer relationships.
Question 4: What do you understand by the term self concept? What are
the categories of self –concept?
Simply put, self concept is how we see ourselves. Our attitudes, beliefs,
feelings, perceptions and behaviours towards our selves. In planning
marketing strategy, knowledge of how aggregate groups or distinct market
segments see or feel about themselves will help the marketer in making good
product, place, promotion and pricing decisions.
For example, French speaking West Africans are known to favour skin
lightening products. This means that their self-concept is preference for light
skinned people. Therefore, a marketer having this information in selecting
models to feature in their product advertisements will use light skinned models
to appeal to their self concept.
The following are the categories of self concept.
Actual/Real Self-Concept: This describes the actual person, who he or she
really is, also how he or she perceives himself/herself. The actual self-concept
comprises of the individual’s physical, emotional and psychological attributes
and characteristics. It directly influences the purchase behaviour of the
person. People tend to purchase products and services that align with their
personality and self-concept. Therefore, marketers need to know the
actual/real self-concepts of consumers that make up their market segments.
Actual and real self-concept is reality.
Ideal Self-Concept: Ideal self-concept is how the consumer would like to be
or sees himself/herself. This is not reality and does not represent the actual
consumer. Rather, marketers could still target consumers with products that
reflect who they want or aspire to be. Such aspirational products include
luxury items such as expensive mobile handsets and fashion accessories.
Some students may be living false lives in the campus and buy expensive
wears and gadgets so as to project the image of being children of rich
parents.
Ideal self-concept includes the desires, aspirations, wishes and strivings of
the market segment. It is for the marketer to use market research to
understand what these are and then offer products and services that fulfil
such consumer aspirations.
Social Self-Concept/Apparent Self: Social self-concept is how a person
wishes people within his or her social group to see or perceive him. The
person attempts at all times to behave in manners that support his social self-
concept which usually will not be the same with his real self-concept. People
10
normally behave in this manner if they think that such social self-concept will
help win them favours and acceptance. Such persons are said to be living
false lives. A young man who cons his parents into parting with some cash
and ends up at a Nite club every weekend, buying drinks for friends and
strangers may not only be living a lie, but may have chosen such false
lifestyle to impress girls or his friends by pretending as if he was from a rich
home. Nite club operators take advantage of the stupidity of such individuals
and keep special seats for them at the clubs so as to pander to their false
sense of importance. This will make them to spend money even the more.
The thinking is that social self-concept will enable an individual to wield group
power and influence, respect, attention, group and societal acceptance.
Situational Self-Concept: This describes what happens in the course of an
individual’s day, how his or her self-concept keeps changing depending on the
situation. In the Nite club example, the individual in question may be a loving,
caring and obedient son at home whereas he becomes a completely different
person when he is with his peers and they go to the Nite clubs.
This process could be likened to code switching, where an individual for
example changes from speaking one language to another depending on who
he or she is interacting with. The challenge for marketers is being able to
predict accurately the particular personae or self-concept of the individual that
will most likely purchase the brand’s goods and services more. Once this is
determined, then the marketer may not bother about other concepts and just
focus on that which will guarantee more purchases. In the example given, the
marketer may find that being an obedient boy personality may not yield the
greater outcome of purchases, they may therefore appeal more to the social
self-concept personae of spending money on expensive alcoholic drinks at
Nite clubs.
Expected Self/Self Image: This particular personality lies between the actual
self and ideal self. It refers to how a consumer actually sees himself or how he
would like to see himself.
Question 5: What are the factors that influence industrial buying
behaviour?
Industrial buying, also known as organizational buying refers to how
organizations identify, select, chose and purchase products and services that
will be converted or used up further in either manufacturing, reselling or
servicing. It is different from consumer buying because the consumer mainly
buys goods and services to consume them directly or for friends and family
members to consume such products and services.
For example, an organization such as Crunchies fast Foods located at Awka
buys ingredients such as flour, meat, beverages etc. It buys these products
not for internal consumption like the individual buyer but rather to convert
them into snack products etc. which it then resells to the public in its quick
service restaurants.
11
The buying or purchase patterns or behaviours of the industrial buyer differs
from that of the individual consumer. For example, the industrial buyer is a
bulk purchaser and will therefore benefit from economy of scale, decision
making could be rested in a team within the organization whereas the
individual buyer takes the decisions himself. Industrial buyers do not always
pay immediately for goods and services, they are allowed some period of
trade credit etc.
Several factors influence industrial buying behaviour. They are;;
(A) Environmental factors
(B) Organizational Factors
(C) Interpersonal Factors
(D) Individual factors
(E) Cultural factors
(A) Environmental Factors: Organizations do not exist in a vacuum, they
impact and are impacted by forces in the external environment which they
must always identify and react/respond to. Factors that the organization
should be aware of include political, economic, social and technological
factors. An organization must be conscious of likely changes in government in
the future, monitor the policies and manifestoes of the incoming government
before making long term decisions to buy new equipment and also investing
in new manufacturing plant. This is because it may be advisable to place the
investment on hold if an incoming government is perceived to be hostile to the
business interests of the organization.
Likewise, issues relating to the economy, interest rates, inflation rates, labour
policies and laws. If interest rates are likely to be increased, then the
organization may decide to borrow now to make its industrial purchases rather
than wait in the future when interest rates rise. If it waits and borrows in the
future when interest rates rise, that will increase their cost of production and
the market may not be able to absorb the cost through increased prices.
(B) Organizational Factors: These are factors or influences that are internal
to the organization and will influence industrial buying behaviour in varying
degrees. For example, to what extent does the organization run a
bureaucratic organization which delays buying decisions? The less
bureaucratic, the better so that purchase decisions could be made easily. Is
decision making centralized or decentralized? What are the purchasing
powers and financial approval limits of the Purchasing or Procurement
Manager, Unit, Team or Department? Decision making will be faster if the
procurement team do not have to always recourse to other people outside of
the team before making purchase decisions.
12
Does the organization operate a lean management system which supports a
Just-in-Time supply chain management system? If it does, then industrial
buying will be easier within the organization. It will save time, reduce
transaction costs and also save resources while reducing wastages.
Other factors to consider are the level of rewards if any, for the purchasing
team for value adding purchase decisions, and for meeting purchase targets,
being able to purchase required goods and services within agreed times. The
same way sales people are rewarded for meeting sales targets, the purchase
team should also be rewarded somehow.
Are the purchasing team sufficiently trained, are they exposed to cutting edge
technology which will enhance their procurement practices? All these will
impact on the industrial buying process in the organisation. Has the
organization embraced the new trend of supply chain management or is it still
practicing purchasing as was done in the old days?
(C) Interpersonal Factors: Group dynamics also play a role in industrial
buying. What is the relationship like amongst the procurement decision team?
Is it cordial? If it is, then the process will be made easier but if it is not, and
people have different agenda different from pursuing the organizational
agenda, then there is a problem.
Are purchase decisions selfless or selfish? Are decisions being taken in the
long term interest of the organization or just for the selfish interests of the
members of the procurement team? This has been a major problem with
organizational buying in Nigeria where pecuniary interests have always
beclouded many organizational purchases.
Sometimes, purchase decisions are made not on the basis of best value,
quality or to ensure return on investment but rather on the basis of what the
members of the procurement team will benefit (bribes and kickbacks) from the
organization they are buying from. It could also be to patronize a family friend
or family member even if the products he or she is offering the organization
are inferior and costs more.
(D) Individual factors: Every individual is unique and therefore possesses
distinct characteristics. These also influence how each individual interacts
with others. People have their own tastes, preferences and likes depending
on their age, educational and social background, training, position in the
organization etc. This is why we may have conflict of interests when we have
a configuration of characters having different interest, exhibiting different
characteristics being members of the procurement team.
For example, if an item is to be bought, there may be long arguments and
debates over choice of colour. Each individual will have their own colour
preference and may attempt to force through their own choice based on their
personal colour preference. This usually leads to conflict. The ideal situation is
for individual members of the procurement team to subjugate their individual
interests to the group interest.
13
As a result, the industrial buyer and his or her buying styles have been
categorized into the following;; Keep-it-simple buyers, Own-expert buyers,
Want-the-best buyers and Want-everything –done buyers.
(E) Cultural factors: In every environment, the ways of doing business in
such environment is unique and peculiar. The organizational buyer should be
aware of the cultural factors that impact on purchase decisions. For example,
in the South Eastern part of Nigeria, the preference is for cash based
transactions. Return policies are also different from one seller to another.
These may be different in Lagos where trading and business relations have
developed quite a bit.
It should also be expected that for example in the South Eastern part of
Nigeria, business transactions and exchanges go through a process of ‘price
haggling’. The asking price in any transition is not usually the last price as a
‘back and forth’ process of price haggling usually follows until a price that is
agreeable to both buyer and seller is reached. This may not be the case in
markets in Lagos or even in Europe and America.
Sometimes there are no boundaries in business relationships. This may
extend further into social relationships, exchange of family visits between the
buyer and seller. In Europe and America, such practice is frowned at to
prevent one party compromising the other but in Nigeria, it is not so much a
taboo and is even encouraged.
Question 6: What are factors that influence industrial buying decisions
The following factors influence industrial buying decisions;;
(A) Rational Motivation: Here, the industrial buyer is basing his purchase
decisions based on justifiable rational factors mainly the economic value and
benefits of the items to be purchased on the organization. Under rational
motivation, things to be considered are;; Quality and quantity as well as
compliance/uniformity of the new purchases to agreed specifications. No
compromises. Cost and value, technical support, after-sales service offered
including competency of the after-sales team.
Sometimes, reciprocity is a major factor. It is expected that if company A
purchases from company B, then company B should also purchase from
company A. Local manufacturers or suppliers may be preferred to foreign
suppliers because with the local suppliers and manufacturers, there is no
foreign exchange hassles or custom duties and related challenges.
Finally, the industrial buyer may be motivated by the need to buy from a
trusted supplier or brand name who has been tried and tested by other
manufacturers, who can supply equipment that are durable and will not easily
breakdown and whose equipment are already known by the industrial buyer’s
staff requiring minimal or or no additional training before they are able to use
the equipment.
14
(B) Emotional Motivation: As humans, we are subject to emotional
influences when we make purchase decisions. For the industrial buyer
however, such emotional motivations should not becloud his higher, rational
and professional sense of judgment. He must always aim to get the best value
for the organisation that pays him and has entrusted him to make the right
decisions for it.
Emotional motivational influences on the industrial buyer may come in these
forms;; making decisions out of fear or possible personal repercussions.
Making purchase decisions on a whim just to preserve status or to seek
pecuniary interests such as getting ahead in life. Making purchase decisions
to please family, friends or even sales agents who are behind on meeting their
sales targets. It is not right to use other people’s money and resources to
please oneself or to satisfy others.
Like we say in Nigeria, the industrial buyer should not play Father Christmas
with the company’s money and resources and should therefore aim to keep
his or her emotional influences in check as they could becloud his sound and
professional judgment when making purchase decisions.
(C) Cognitive Consonance: This is the preferred state of mind for the
industrial buyer as against a state of cognitive dissonance. To achieve this
state means that the industrial buyer has done the right things by making the
right purchase decisions. He can sleep well at night or even go home to his
family everyday knowing that he can be counted on as a professional
industrial buyer who has delivered value to the organization through his
purchase decisions.
To be in this state of mind is enough motivation for the industrial buyer unlike
being in a state of cognitive dissonance where his conscience will always
chastise him over some irrational decisions he has made. To achieve a state
of cognitive consonance, the industrial buyer may have purchased the right
products with the right specifications, at the right price and time. He may have
also purchased the right and optimum quantity from the right trusted supplier
with best technical and after sales support team.
Question 7: Outline and explain the cultural factors and social factors
that influence consumer buying decisions.
Several factors influence consumer buying decisions. We will look at two of
those factors and analyse how they influence consumer buying decisions.
Cultural Factors
(A) Culture: Culture is the sum total of a people’s way of life. Culture
manifests itself and is expressed through language, food, music, dance, art,
fashion, tradition, morals, festivals, belief system etc.
15
Before a marketer can launch a new product, he or she has to carry out
market research to determine the culture of the market segment. The kind of
food they eat, the clothes they wear, the language they speak etc. This is why
for example, in Moslem communities in the United Kingdom, shops only sell
and display Halal meat which does not offend Muslims. They also don’t sell
pork meat showing sensitivity to the culture of Muslims.
In Nigeria, the reason why textile companies are still in business is because
they understand the culture of the people, to dress up in traditional African
print and fabrics and so manufacture different types. These fabrics are now
used for different occasions, weddings, burial ceremonies, work, church etc.
The marketer aims to ensure that products and services he or she is
marketing meet the cultural needs and expectations of the people. This is the
only way repeat purchase can be guaranteed.
As part of understanding the culture of the target markets, the marketer
should also note other sub-classifications such as sub-culture and social class
and take cognizance of how these impact on his or her marketing activities.
(B) Sub-culture: Sub-culture is a further subset of culture and may include
distinct grouping of individuals such as teenagers, age grade system, religion
fanatics etc. displaying distinct characteristics which the marketer may
consider to be unique enough to be targeted with marketing mix. A decision
has to be made if customers within the sub-cultural segment will justify
marketing investment and how quickly such investment can be recouped
through patronage and product purchases.
(C) Social class: Social class is also important as it helps the marketer to
determine which category of product should be targeted at the different social
groupings. The marketer may categorise the target market based on
educational and economic background as Upper Class, Upper-Middle Class,
Middle Class, Working Class and Lower Class. It is not possible to satisfy the
needs of all the social groups without falling short in some areas. For
example, Mercedes Benz manufactures its cars only for people from Upper
Middle class and upwards. Any attempt to manufacture or compete in the
lower class category may cost it its market share in its areas of competitive
strength and advantage (Upper class and Upper Middle class).
Social Factors
Man interacts with others in the society. Through such interactions,
behaviours are learned and partnerships formed. Each person interacting in
the society influences other people one way or the other. Some of the social
factors that influence consumer buying decisions are family system,
Reference groups, Roles & Statuses etc.
(A) Family: Family units are usually the first influencing social group upon the
life of the consumer. From birth, a child begins to be affected and influenced
16
by his or her parents through a process of upbringing and acculturation. If I
use myself as an example, my father impressed it upon me early on in life the
need to always have my head shaved and to also use Vaseline. His reason
then was that with shaven hair, one does not need to spend time combing or
applying cream etc. to the hair in the morning. He also reasoned that it would
make me to be early for school. Though I am grown up now and have my own
family, I still shave all my hair and also still use Vaseline.
The family unit is very important to marketers which is why TV advertisements
usually show families in family settings (lifestyle) consuming and enjoying the
product or service.
(B) Reference Groups: The consumers reference groups consist all the
groups that have direct and indirect influence on the consumer’s attitude,
behaviour and lifestyle. The groups could be peer groups (close friends and
associates), social clubs, religious, professional and cultural associations etc.
The thing with reference groups is that members of the group live a ‘me too’
lifestyle. If one person purchases a product, he or she spreads that
information and soon everybody in the group will desire or aspire to own that
product. This is where marketers come in by adopting ‘keeping up with the
Joneses’ style adverts to target group members and also appeal to their
sense of belonging. Marketers may also target opinion leaders of the groups
and give them free products to trial hoping that he will convince others or
recommend the products to his or her members.
Medical professionals especially doctors are often targeted by drug
manufacturers and given free trial products hoping that they will recommend
such products to their patients. During annual medical conferences where
medical doctors converge, the drug manufacturers target such venues and
hope that doctors who had trialed their products in the past will recommend it
to their colleagues and fellow members attending the conference.
(C) Roles & Statuses: Each individual plays distinct and unique roles in the
society or social, professional and other groups they belong. The roles they
play, or the roles they have been assigned determines their status. They now
need to maintain such status by buying the right type of products to suit that
status or that befits the office as they in Nigeria.
Senior bankers and Bank MDs playing the roles of MDs live in Ikoyi, Banana
Island or the Lekki areas of Lagos. They drive expensive four-wheel drive
vehicles and expensive sedan cars. Marketers target people playing such
roles with products and services they believe will fit that role. British Airways
and Emirates Airlines advertise their First Class flight services targeting the
successful business traveler. They show comfort on air while flying and
personalized air hostess to pamper and cater to the first class passengers
needs while on board. Such premium luxury flight services are very expensive
but goes with the role those first class passengers are playing in the society.
17