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Consumer behaviour assignment

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Consumer behaviour assignment

  1. 1. CONSUMER BEHAVIOUR Higher Diploma Assignment By: Maha H 1
  2. 2. Table of Contents S.no Topic Pg.no 1. Culture and theories of culture 3 2. Cultural changes and examples 3 3. Cultural changes – how it affects the marketer? 4 4. Cultural trends and examples 5 5. Hardware chain marketing strategies 7 6. References 10 2
  3. 3. Culture It refers to the cumulative deposit of knowledge, experience, beliefs, values, attitudes, meanings, hierarchies, religion, notions of time, roles, spatial relations; concepts of the universe and material objects and possessions shared by relatively a large group of people and that are passed along by communication and imitation from one generation to the next. Culture was visualized as a collection of traits; the anthropologists studied the spread of these traits from one society to another. However, the theories fail to explain why certain traits spread and others do not. Theories of culture According to the theories that have gained wide acceptance among the anthropologists, the culture demonstrates the way humans interpret their biology and the environment and accordingly culture becomes an important part of human existence that is the human environment, and most cultural change can be attributed to human adaptation to historical events. Furthermore, given that as the culture is seen as the primary adaptive mechanism of humans and takes place much faster than human biological evolution, most cultural changes are viewed as culture adapting to itself. Cultural Change and its examples Cultural change means any innovation that is new and is found to be useful to a group of people and is expressed in their behavior but which does not exist as a physical object. Humanity is in a global "accelerating culture change period", driven by the expansion of international commerce, the mass media and especially the human population explosion etc. For example, cultures are internally affected by both forces encouraging change or resisting it. These forces are related to both social structures and natural events and are involved in the perpetuation of cultural ideas and practices within current structures, which themselves are subject to change. Social conflict and the development of technology can produce changes within a society by changing social dynamics and promoting new cultural models, and enabling generative action. Cultures are externally affected via contact between societies, which may also produce or inhibit social shifts and changes in cultural practices. War or competition over resources may impact technological development or social dynamics. Additionally, cultural ideas may transfer from one society to another, through diffusion or acculturation. Diffusion is the form of something that moves from one culture to another and whereas, acculturation refers to the replacement of the traits of one culture with those of another. 3
  4. 4. Cultural changes – How would they affect the marketers? Understanding cultural differences is very important in order to gain success in any market. While considering the international and the local cultures we should not forget to address political and business cultures while developing marketing strategies. Sociologic differences around the world largely outweigh similarities. People of different cultures are influenced and driven by different things. When responding to advertising, some value freedom, reward for effort and an entrepreneurial approach, while others avoid individualism like the plague. Lack of cultural considerations can not only result in a mediocre response to product promotions but can also impact the company's image. Like, how the company Nike' suffered significant criticism from Muslims all over the country and the world when shoes with a design on the heel similar to the Arabic word for God or Allah was launched. While there was nothing wrong with their product, Nike' was at fault because the company didn't consider the possibility of doing a thorough proper research. In many national cultures the significant accomplishment in life is taken as a measure of success. There are some countries where people may fear uncertainty and risk-taking while in others they may not. Some cultures grimace at the use of terms, symbols or colors, repugnant in their life experiences. Different colors appeal more in certain countries or religious societies more than in others. For example, red is considered as lucky color by the Chinese, but it is considered as a warning sign to many other nationalities. The issue of color selection in marketing may not only apply to print or media ads, but also to the web sites. While deciding the target market in any country gender is a factor to be considered. Like, Gender esteem also has significant implications in countries like Japan, Austria and in Arab countries where males often have a higher decision authority and say over the females. Political influences past and present can also affect the way people picture what they read or hear. Some people have never known or have only recently had the freedom to choose for themselves where as others rely on their governments or whoever they consider to seek advice from about the good or bad. A seal of government approval in some countries will increase trust in a particular product while in others it could lead the reader to throw the piece away in disgust. Family structures in the Asian countries such as China or Japan differ greatly from those of other countries. Family considerations command respect in all matters, including investments and individual actions. Collective considerations are often uppermost in the minds of people who have lived under such conditions all their lives. Whereas in India collective cultures have been a way of life for several years so the caste system of social standing is paramount in Indian society and presents particular challenges to avoid causing offence. Also, religious beliefs play an important role in Indian society as the religion influences every aspect of their lives including their response and reaction to marketing copy. All in all, with careful research of cultural differences a marketer can craft right words to maximize the impact of the message in the international market. 4
  5. 5. Cultural trends – Some of the cultural trends are listed below: Concern for the environment - It is when the company decides on using products or procedures that are eco friendly by going green and thus using those that are protecting the natural environment from destruction or pollution. E.g. Dell Company – as they have started to make the product packages from bamboo as bamboo is considered to be the most fast growing wood plant in the world, it is strong and durable and above all, because it is environmentally friendly as it helps to promote a healthy soil and therefore does not create pollution. Time saving – It is when several techniques are developed by the firm in order to save time of the consumers (like, the time of travelling). E.g. Damas jewelers – Other than their retail shops, they have expanded their retail outlets by allowing their customers to purchase online by providing them free delivery service, thus saving their transportation. Technology advancements – The new improved technology is making it easier for the companies and their customers to interact with each other without wasting much of either of their time or money. The introduction of new advancements in technology such as computers, robots, telephones; internet etc is not only allowing the companies to provide their customers with better quality products but is also allowing them to provide a better service. E.g. 5
  6. 6. Travel – This category has made a drastic difference in the technological advancement of the global world. The first huge technological advancement (world changing invention) was the invention of the automobile. While the rail system had allowed continued development of the country permanent relocation used to be the norm if one needed to be over a few miles away or so. The automobile as a technological advancement gave a family the means to live away from the city and still be close enough to go to town for supplies. Leisure Time – A company tries to keep their customers motivated by making them feel like a part of the company by keeping them occupied in certain activities or providing those special services that keeps them coming back. E.g. Debenhams store – It offers free Personal shoppers service providing friendly and professional advice to ensure you get the most out of your shopping, whether you want to save time and avoid the crowds, find the perfect outfit for that special occasion, or simply pamper yourself etc. Self actualization and Self fulfillment – 'What a man can be, he must be', this need we may call self-actualization and it refers to the desire for self-fulfillment, namely to the tendency for him to become actualized in what he potentially is. This tendency might be phrased as the desire to become more and more what one is and to become everything that one is capable of becoming. E.g. Two people can be on a similar personal growth path, and yet only one would be self-actualized. For example, Mary might be expanding her horizons and learning how to increase her daily happiness in comfort and peace. She is at ease with herself and also appreciates all the lessons life is offering her. She is growing, yes, but she is in a state of self-actualization. Whereas, Juliet is also growing, her mind is open to life's lessons and she desperately wants to increase her happiness. And yet, a sense of comfort eludes her. She is not at ease with her lessons, but they are raising disturbing questions she needs to answer. She is not in a state of self- actualization yet. 6
  7. 7. According to the hardware chain, how will the cultural trends listed above have an effect on the marketing strategies? Concern for the environment : Using recyclable and non polluting materials to make the product's packaging. Designing eco-aware projects that reduce waste and energy. Using renewable energy alternatives to conserve energy (eg. Using wind power energy). Giving grants or other promotional giveaways to encourage customers to do something positive for the environment. Do not sell products that contain chemicals or carbon prints that can cause harm to the ozone layer or the environment. Time saving : Opening more retail outlets other than the retail shops, like online shopping websites or allowing them to order over phone, through catalogues etc. Providing customers with a door to door delivery service (your chosen product reaches you directly). Using hierarchical or interactive alerting which allows the customers to define exactly how they want to be contacted by the business i.e. either to be called on their cell phones or to be sent a text message etc. Thus, to be sure about a certain activity. Employing special employees (customer guides) to help the customers find answers to all their questions and concerns. 7
  8. 8. Technology advancements: The rapid evolution of database technologies are making it possible for businesses to collect customer information, including preferred contact methods, billing methods and also purchasing patterns. Therefore, it is helping the companies to create better relationships with its customers. Due to the advancement of technology the businesses now are able to offer their customers better quality products. The demand of the customers by the firms can now be fulfilled immediately n efficiently as the manufacturing process does not take too much time like before due to the highly mechanized production plants. The introduction of computers and the internet has globalised the world thus reducing distances between the companies and its customers. The customers can now buy products (shop) online over the internet and can ask the online customer representatives for help in real time. Leisure Time : Introducing a consumer club for the customers to share their experiences. Customer guides giving the customers a tour of the store and helping them decide what to buy according to their needs. Organizing classes including sessions within the store. 8
  9. 9. Self Actualization and Self fulfillment: If the firm produces good quality products the customers would be self actualized, the company should therefore keep a regular quality control check. Providing a good after sale service to the customers will lead an organization in having self actualized and fulfilled customers. If the customers keep on benefitting from the products bought by a firm then it will lead to self actualized and self fulfilled customers (like, special discount for old customers). If the company is taking eco friendly measures then the customers feel self actualized and motivated to buy that firm's products due its concern for the environment. 9
  10. 10. References: http://www.relationship-economy.com/?p=716 http://iooffthegrid.blogspot.com/2007/12/cultural-trends-for-2008.html http://www.infoplease.com/ce6/society/A0857661.html 11

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