Professional Documents
Culture Documents
7
Understanding Local Customers
Outline
Local Buyer Behavior Basics
The Consumer Decision Process
Local Market Research
How New Brands Change Perceptions
Three Market Environments
Takeaways.
7-2
Culture and Buyer Behavior
Marketing and Materialism
Marketing actions are basically undertaken in the belief that
more and better goods will bring an increase in consumers’
standard of living, an increase in their satisfaction, and perhaps
even more happiness
However, when anticipating customers’ reactions to new
products and increased product choices, it is important to note
the limits on the relationship between material affluence and
personal happiness
“Money can’t buy you love.”
7-3
Local Buyer Behavior
External
Buyer Choices
Influences “Models of Man”
Product choice
Culture
Buyer Buyer Brand choice
Economics decision
characteristics Store choice
Technology process
Supplier choice
Politics
Local
Marketing
Effort
7-4
Local Buyer Behavior
• James Duesenberry - Relative Income hypothesis –
consumer’s well-being is a function of how much income they
have relative to their peer groups, not the actual income
7-6
The Buyer Decision Process
Evaluation
Problem
Search of Choice Outcomes
recognition
alternatives
7-7
The Buyer Decision Process
Problem Recognition
A problem is when an individual perceives a difference
between an ideal and an actual state of affairs
New products often lead to tension and a recognized “proble
m”
For the local marketer it is important to recognize that
education about the core benefits might be necessary in
order to create a demand for the product
7-8
The Buyer Decision Process
Search
A consumer’s search for alternative ways to solve the
problem is closely related to his or her level of involvement
with the product category
For product with which involvement is high, search tends to
be more comprehensive and time consuming
For convenience and habit purchases, the decision process
is shorter, with little need for extensive searches or
alternative evaluations
Search intensity is dependent on the perceived availability
of the alternative
One advantage for product with high global brand awareness
is that initial distrust is easier to overcome
7-9
The Buyer Decision Process
Evaluation of Alternatives
When a new product or service is in the “consideration set”
A highly involved individual will process the available
information matching the pros and cons of the alternatives
against preferences
Consumers can deal with multi-attribute evaluations in
several ways:
They can use gradually less-important features to successively
screen out alternatives
A “hierarchical” decision rule
They can consider all features simultaneously:
A “compensatory” rule – hard to do.
7-10
Fishbein’s Multi-attribute Model
Multi-attribute
evaluation
(ΣBI)
Social
forces Preference
Social
norms
Motivation Behavioral
to comply intent
Situational
factors
(P-O-P)
Choice
7-11
The Buyer Decision Process
Choice
The final choice of which alternative to select or try is
typically influenced by social norms and by situational
factors
Social Norms
Where group pressures to comply are strong social norms
influence is expected to override multiattributed evaluation
The social norms can be usefully analyzed by the
extended Fishbein model
The social norms involve two aspects
Social forces
Motivation to comply
7-12
The Buyer Decision Process
Outcomes
The main question about the outcomes revolves around the
degree of customer satisfaction.
Customer satisfaction is particularly important in mature
markets where choices are many and the needs are already well
met.
Satisfaction engenders loyalty to the brand and to the company.
Because buying is typically a risky choice between different
brands, the marketer has to make sure that the customer does not
encounter cognitive dissonance, a sense of possibly making the
wrong choice.
One approach is to get satisfied customers to endorse the
product, a common strategy in advertising.
7-13
A Strong Brand Simplifies the
Decision Process
-- REDUCES INFORMATION SEARCH
-- ATTITUDES
-- SOCIAL NORMS
7-14
The Local Market Research Process
Problem Secondary data
definition
Exploratory Qualitative
research
Research Descriptive Consumer
design
surveys
Causal Trade surveys
Measurement/
scaling
Observation
Questionnaire
construction Experiments
Data
Fieldwork analysis
7-15
Local Market Research
FOCUS GROUPS
•Focus groups have become standard for initial exploratory
research
7-16
Local Market Research
SURVEY RESEARCH
Consumer Surveys
Surveys of large (n = 500 and above) random samples drawn from a
sampling frame of representative product users are of central
importance in marketing research
Cultural problems involved in the typical consumer survey:
•In high context cultures especially, one cannot fully understand
consumers from their responses to standard survey questions.
•At the same time, informal face-to-face interviews are prone to bias
because of demand characteristics
•However, even if surveys are afflicted by a number of problems in
many foreign markets, they can still be useful if care is taken.
7-17
Local Market Research
TRADE SURVEYS
7-18
Local Market Research
7-19
Local Market Research
QUESTIONNAIRE CONSTRUCTION
7-20
Local Market Research
SAMPLING
7-21
Local Market Research
FIELDWORK
7-22
New Brands in Local Markets
7-23
The Japanese change the US auto market
Has a touch of class. Distinguished looking
Lincoln
Porsche
Conservative Cadillac 4 5 Sporty
looking BMW
looking
Chrysler .
Mercedes 2
Buick Pontiac
Oldsmobil
e
Chevrole
t Datsun
Appeals to Ford
1 (Nissan)
older people Toyota Fun to
Dodge drive.
3
Plymouth VW
7-24
Local Mis-Positioning
7-25
Brand Image
7-26
Country-of-Origin
7-27
Lower Price
7-28
Three Market Environments
7-29
Dominant Market Features
Feature Emerging New growth Mature
7-30
Dominant Marketing Tasks
product/market situation
task emerging new growth mature
marketing analysis
research focus feasibility economics segmentation
primary data sources visits middlemen respondents
customer analysis needs aspirations satisfaction
segmentation base income demographics life style
marketing strategy
strategic focus market development participation in growth compete for share
competitive focus lead/follow domestic/foreign strengths/weaknesses
product line low end limited wide
product design basic advanced adapted
new product intro rare selective fast
pricing affordable status value
advertising awareness image value-added
distribution build-up penetrate convenience
promotion awareness trial value
service extra desired required
7-31
Takeaway
7-32
Takeaway
7-33
Takeaway
7-34
Takeaway
7-35
Takeaway
7-36