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Session 7

Marketing Management
IMT DUBAI

Facts about GCC Consumers

Capital

Bahrain
Manama
1,314,089
Population (2014, CIA)
Bahraini
Currency
Riyal
Percentage
expats
55%

Kuwait
Kuwait City
2,742,711
(2014, CIA)

Oman
Muscat
3,219,775
(2014, CIA)

Qatar
Doha
2,123,160
(2014, CIA)

Saudi Arabi
(KSA)
UAE
Riyadh
Abu Dhabi
27,345,986 9.2m (2013,
(2014, CIA) World Bank)

Kuwaiti DinarOmani Riyal Qatari Riyal Saudi Riyal

Dirham AED

70%

80-90%

30%

85%

30%

The region's population is mostly young, affluent, fashion-conscious and


rapidly growing, an irresistible combination for retailers.
With higher discretionary incomes, increased use of credit cards and a
thirst for what is new, the region has become a hotbed for brands, looking
to develop the next generation of shoppers.
Kuwait is by far the most fashion conscious of the Arabian Gulf countries,
with the UAE a close second.
The region's malls are the best place for the younger generations to get
together. With little or no use of social clubs, or youth societies, shopping
malls have become defacto clubs, where, on most days of the week,
youngsters from a range of nationalities gather, looking for something to
do.
The tradition of travelling to Europe to buy luxury items, such as watches,
designer clothing, jewellery, has long since gone, as the items are
available here.

Facts about UAE Consumers

UAE has one of the most diverse populations in the Middle East, consisting of the
native Emarati (19%), other Arab and Iranian (23%), South Asian (50%), and
remaining 8% being the Westerners and East Asians.
According to 2006 population estimates, there were approximately 1.2 million
Indians and 300,000 Pakistani residing in the UAE, making them the largest
expatriate community in the country.
One of the interesting features of UAE population is that almost 70 % of the
population is estimated to be male and 30% female.
The population or age structure appeared to be dominated by the young to
medium age group with 25.3% coming in (0-14 years) and 71.1% falling in (15-64
years) age group.
Abu Dhabi is the largest and most populous emirate in the UAE with a population
of 1.4 million, followed by Dubai (1.2 million), Sharjah (570,000), Ajman
(200,000), Ras Al Khaimah (190,000) and Umm Al Quwain (55,000) as per 2005
estimates.

Emirati Consumer Behavior

Fashion and communication are two passionate things for Emiratis


(Abu Dhabi DED survey)
Advanced mobile phones and Internet are the two favourites
Sixty four per cent of the Emiratis in Abu Dhabi change their mobile
phones in every three months
Average spending on mobile phones by a UAE national is Dh3,521 for
every three months
The average expenditure on land line phones and Internet reached
Dh1,209 during the same three months.
The survey also showed that 63 per cent of them purchased their cars
through bank finance.
The average household expenditure on education amounted to
Dh33,198 per year.

Consumer
Consumer Buying
Buying Behavior
Behavior
Consumer Buying Behavior refers to the buying
behavior of final consumers (individuals &
households) who buy goods and services for
personal consumption.
Study consumer behavior to answer:
How do consumers respond to marketing efforts the
company might use?

Model
Model of
of Consumer
Consumer Behavior
Behavior
Product
Price

Marketing
Marketing and
and
Other
Other Stimuli
Stimuli

Economic
Technological

Place

Political

Promotion

Cultural

Buyers
Decision
Process

Product Choice
Brand Choice
Dealer Choice

Buyers
Buyers Black
Black Box
Box

Buyers
Buyers Response
Response

Characteristics
Affecting
Consumer
Behavior

Purchase
Timing
Purchase
Amount

Cultural Factors
Fundamental determinant of a
Persons wants and behavior

Culture
Subculture
Social Class

Buyer
Buyer

More specific identification and


Socialization for their members
Social stratification
Caste, income, wealth,
education

Social Factors
Reference group
Group on which an individuals attitude and behavior is
influenced (directly or indirectly)
Membership groups direct influence
Primary
Family, friends, neighbors (continuous & informal interaction)

Secondary
Religion and professional membership (formal & less continuous)

Aspirational
Indirect influence (not belonging to the group but hopes to join)

Dissociative
Whose values or behaviors an individual rejects

Opinion leader
persons offer informal advice on product and brand choice

Personal Factors

Family life cycle


Bachelor
Young, single, not living at home (basic home equipments, furniture, clothing)

Newly married couples


young, no children & buy car, furniture, appliances, vacation

Full nest I
Youngest child under six, home purchasing at peak baby food, cough medicines,
vitamins, dolls

Full nest II
youngest child six or over buy larger size packages bicycles, school
notebooks, uniforms

Full nest III


older married couple with dependent children, some children get jobs dental
services, magazines

Empty nest I
Older married couples, no children living with them, head of the household at job
make gifts and contributions

Empty nest II
Older married couples, no children living with them, head of the household retired
medical appliances, medical care products

Solitary survivor

Personality
Set of distinguishing psychological traits
Eg. self confidence, dominance, autonomy

Brand personality
Human traits attributed to a brand
Sincerity (Raymond), excitement (Coke),
competence (Philips, sony), sophistication
(Mercedes), ruggedness (Levis)

Four Types of Buying Behavior

High
Involvement

Low
Involvement

Significant
differences
between
brands

Complex
Buying
Behavior

VarietySeeking
Behavior

Few
differences
between
brands

DissonanceReducing Buying
Behavior

Habitual
Buying
Behavior

http://www.youtube.com
/watch?v=CHjFpJKxNc4

Consumer Buying
Process

Need
recognition

Information
search
Evaluation of
alternatives
Purchase
decision
Postpurchase
behavior

The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 1.
1. Need
Need Recognition
Recognition

Need
Need Recognition
Recognition

Difference
Differencebetween
betweenan
anactual
actualstate
stateand
andaadesired
desiredstate
state

Internal
Internal Stimuli
Stimuli

External
External Stimuli
Stimuli

Hunger
Hunger

TV
TVadvertising
advertising

Thirst
Thirst

Magazine
Magazinead
ad

AApersons
personsnormal
normal
needs
needs

Radio
Radioslogan
slogan
Stimuli
Stimuliin
inthe
the
environment
environment

The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 2.
2. Information
Information Search
Search
Personal
Personal Sources
Sources

Family, friends, neighbors


Most influential source of
information

Commercial
Commercial Sources
Sources

Advertising, salespeople
Receives most information
from these sources

Public
Public Sources
Sources
Experiential
Experiential Sources
Sources

Mass Media

Handling the product


Examining the product
Using the product

The
The Buyer
Buyer Decision
Decision Process
Process

Step
Step 3.
3. Evaluation
Evaluation of
of Alternatives
Alternatives
Product
ProductAttributes
Attributes

Evaluation
Evaluationof
ofQuality,
Quality,Price,
Price,&&Features
Features

Degree
Degreeof
ofImportance
Importance

Which
Whichattributes
attributesmatter
mattermost
mostto
tome?
me?

Brand
BrandBeliefs
Beliefs

What
Whatdo
doIIbelieve
believeabout
abouteach
eachavailable
availablebrand?
brand?

Evaluation
EvaluationProcedures
Procedures

Choosing
Choosingaaproduct
product(and
(andbrand)
brand)based
basedon
onone
one
or
ormore
moreattributes.
attributes.

Total
TotalProduct
ProductSatisfaction
Satisfaction

Based
Basedon
onwhat
whatIm
Imlooking
lookingfor,
for,how
howsatisfied
satisfied
would
wouldIIbe
bewith
witheach
eachproduct?
product?

Decision Making Sets


Total
Set

Awareness
Set

Consideration
Set

Choice
Set

Decision

Steps Between Evaluation of Alternatives


and a Purchase Decision
Evaluation
of
alternatives
Attitude
of others
Purchase
intention

Purchase
decision
Unanticipated
situational
factors

Model
Model of
of Consumer
Consumer Behavior
Behavior
Product
Price

Marketing
Marketing and
and
Other
Other Stimuli
Stimuli

Economic
Technological

Place

Political

Promotion

Cultural

Buyers
Decision
Process

Product Choice
Brand Choice
Dealer Choice

Buyers
Buyers Black
Black Box
Box

Buyers
Buyers Response
Response

Characteristics
Affecting
Consumer
Behavior

Purchase
Timing
Purchase
Amount

California Milk Processor boards Got Milk Campaign

On new up coming popular singer


Himesh Reshammiya - June '06

Bollywood film Fanaa release help up in


Gujarat due to agitation over star's comments
on Narmada Dam Project - June '06

On proposed implementation of quota


reservation in institutes of higher education
- June '06

On the fracas between Bollywood item girl Rakhi Sawan


and Punjabi pop singer Mika Singh on his
birthday party - June '06