NOGALO, AILYN S.

CBET-01-502A

1) List the factors that influence consumers’ abilities to buy and explain how these affect various
national markets.

The factors that influence consumers’ abilities to buy are cultural, social, personal, and
psychological factors. Cultural factor is generally accepted truth or beliefs that are passed on one
generation to the next. For example, many older Chinese like to eat shark’s fin soup as well as bird’s
nest, this will affect some various national because environmentalist are against. Social Factor
involves peer or reference groups, one’s or status as well as family that influence a person’s decision
process in the context of the people around him. In this case, peers can affect a purchase of a
cellular phone service thus increasing the demand for the service. Personal factor includes lifestyle,
economic situation, occupation, age, activities, and interests that would dictate one’s buying
behavior. Premium brands like Chanel, Gucci, and Louis Vuitton bags are driven by how buyers look
at themselves and the rewards they feel deserve. Psychological factor include perception,
motivation, learning, belief ad attitudes. For instance, red wine has been increasing in demand
because the perception of the buyers is that it is good for the heart.

2) Give examples of how consumer behavior is similar across cultures and examples of how it may
differ from one culture to another.
Culture is the part of customs and traditions of a group of people that is transformed into its art,
food, costumes/clothing, architecture, and language, as well as other unique manifestations of a
specific group of related individuals. Culture is environmentally oriented. For example, the nomads
of Finland have developed a culture for Arctic survival. Similarly, the natives of the Brazilian jungle
have created a culture suitable for jungle living.
3) Describe segmentation options for consumer markets abroad.
Segmentations options for consumer markets abroad are by needs and wants, socio-
demographics, psychographics, and consumer behavior. Segmentation by needs and wants is a
major way to segment a market. Example of needs and wants are restaurants which are segmented
according to preferences. Socio demographics segmentation deals with questions such as “who you
are” and “how much you earn”, and is commonly used when planning. Psychographic segmentation
is more concerned more with answers to questions such as “what you do” and “how you spend
money.
4) Explain why business to business markets vary in buyer needs and behavior from one country to
another.
Business-to-business buyer behavior and business markets are different from consumer
markets. Business markets include institutions such as hospitals and schools, manufacturers,
wholesalers and retailers, and various branches of government. The key difference between a
consumer product and a business product is the intended use. For example, AT&T, had a lot of
business when the Clark and Subic bases were still here, but had to prioritize another segment when
the bases were closed down.
5) Explain the role of bribery in international contracts.
Bribing public officials to obtain advantages in international business raises serious moral and
political concerns, undermines good governance and sustainable economic development, and
distorts international competition.