International Consumption - Consumers perspective

Transcription

1 International Consumption - Consumers perspective Consumer Behaviour 2 Internation Agrifood Economics MIBE

2 2 Internal Processes Sensory Perception (sight, hear, taste, tauch, smell) Gestalt Principles Symbolism Sales Promotions (price discounts, collection, extra products) Classical conditioning (Pavlov dog) Operant conditioning (reward/punishment) Cognitive learning Motivational conflicts (approach - approach) (approach avoidance) (avoidance avoidance) Need for affialiation Need for power Need for uniqueness Self actualisation Ego needs Belonging Safety Physiological

3 3 Motivation Needs Need for affiliation (to be together with others) Need for power (to feel supremacy or matery over the surrounding - cars) Need for uniqueness (to perform individual identity) Self actualisation (fullfilment) Ego needs (prestige, status) Belonging (love, friendship, acceptance) Safety (protection, security) Physiological (hunger, thirst, sleep) Maslows s hierarchy of needs Gourmet foods, foreign cars, vodka, perfume Ice cream (to feel like a loved child again), full home baking, hospital care

4 4 Strategies 1) Appeal to the consumers hedonic needs (sensory appeal - higher levels of attention) 2) Use novel stimuli, unexpected situation / ending 3) Prominent stimuli (loud music and fast action) in print formats, larger ads increase attention (look longer at coloured pictures as opposed to black and white) ORGANIC 4) Include celebrity endorsers 5) Involve

5 5 Case Study To a given print advertisement try to match all the elements we were talking about

6 6 Consumer Behaviour Consumer behaviour is the study of when, where, how, why (why not) and who does or does not buy a product. It involves elements from psychology, sociology, social antropology and economics; It attempts to understand the decision making process (individually and in groups) It studies characteristics of individual consumers such as demographics and behavioural (SEGMENTATION) It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general; Internal Processes External Processes Desisive Procesess Group influence Opinion leadership Cultural influence

7 7 Reference Group Reference groups: an actual or imaginary individual or group conceived of having significant relevance upon an individual s evaluations, aspirations, or behaviour (Salomon, p 350) Informal influence Utilitarian influence Value-expressive The individual seeks information about various brands from an association of professionals or independent group of experts. To satisfy others expectations fellow workers, family, informa group etc To create / keep an image others have about him/her.

8 8 Reference Group Informal influence Utilitarian influence Value-expressive The individual seeks information from those who work with the product as a profession. So that he or she satisfies the expectation of fellow work associates, the individual s decision to purchase a particular brand is influenced by their preferences. The individual feels that the purchase or use of a particular brand will enhance the image others have of him or her.

9 9 Reference Group Informal influence Utilitarian influence Value-expressive The individual seeks brand-related knowledge and experience (such as how Brand A s performance compares to Brand B s) from those friends, neighbours, relatives or work associates who have reliable information about the brands. The individual feels that those who purchase or use a particular brand possess the characteristics that he or she would like to have. The brand the individual selects is influenced by observing a seal of approval of an independent testing agency.

10 10 Reference Group Informal influence Utilitarian influence Value-expressive The individual sometimes feels that it would be nice to be like the type of person that advertisements show using a particular brand. The individual s decision to purchase a particular brand is influenced by the preferences of people with whom he or she has social interaction. The individual feels that the people who purchase a particular brand are admired or respected by others.

11 11 Reference Group Informal influence Utilitarian influence Value-expressive The individual s observation of what experts do (such as observing the type of car that police drive or the brand of television that repairmen buy) influences his or her choice of a brand. The individual s decision to purchase a particular brand is influenced by the preferences of family members. The individual feels that the purchase of a particular brand would help show others what he or she is or would like to be (such as an athlete, successful business person, good parent, etc.) The desire to satisfy the expectations that others have of him or her has an impact on the individual s brand choice.

12 Strengh of reference group on brand selection 12 Reference Group Public necessities (writswatch, car, suit) Public luxury (golf, yacht) Private necessities (matresses, lamps, toilette papaer) Private luxury (Tvgame, icemaker) Strengh of reference group on product selection

13 13 Conformity Most people tend to follow society s expectations regarding how they should act and look (with a little improvisation here and there, of course). Conformity refers to a change in beliefs or actions as a reaction to real or imagined group pressure.

14 14 WOM Word-Of-Mouth: Despite of formal means of communication (newspapers, magazines and television), much information about the world is conveyed by individuals on informal basis. Today, 80 per cent of all buying decisions are influenced by someone s direct recommendations. WOM is powerful in cases of unfamiliarity with the product category - new (e.g. hair loss products) or is technological complexity (e.g. DVD recorders). According to studies, 90% of unhappy customers will not do business with a company again. Each of these people is likely to share their grievance with at least nine other people, and 13% of these disgruntled customers will go on to tell more than 30 people of their negative experience.

15 15 Decision - making consumer sees a significant difference between his or her current state of affairs and some desired or ideal state. PROBLEM RECOGNITION INFORMATION SEARCH EVALUATION OF ALTERNATIVES PRODUCT CHOICE OUTCOMES

16 TO BE CONTINUED 16