CONSUMER BEHAVIOUR IN INTERNATIONAL

BUSSINESS MANAGEMENT

BY: SHIVAM BAWAMBA (3RD SEMESTER)

What is Consumer Behavior?

Consumer behavior essentially refers to how and why people make the purchase decisions they do. Marketers strive to understand this behavior so they can better formulate appropriate marketing stimuli that will result in increased sales and brand loyalty

Nature of Consumer Behavior

Influenced by various factors such as Market

factors, Social factors, Personal factors, Cultural

factors, Psychological factors & Situational factors.

Undergoes a constant change

Varies from consumer to consumer

Varies from region to region and country to county

Nature of Consumer Behavior (cont.)

Information on consumer behaviour is important to

the marketers

Leads to purchase decision

Varies from product to product

Improves standard of living

Reflects status

Issues any Firm Need to Understand about a Consumer

The psychology of how consumers think, feel, reason, and select between different alternatives (e.g., brands, products, and retailers);

The psychology of how the consumer is influenced by his or her environment (e.g., culture, family, signs, media);

The behavior of consumers while shopping or making other marketing decisions;

Issues any Firm Need to Understand about a

Consumer(cont.) Limitations in consumer knowledge or

information processing abilities influence decisions and marketing outcome; 

How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer; and

How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer.

4 Main Application of Consumer Behavior in International Business The most obvious is for marketing

strategy—i.e., for making better marketing campaigns.

A second application is public policy. Social marketing involves getting ideas

across to consumers rather than selling something.

As a final benefit, studying consumer behavior should make us better consumers.

Need of Consumer Behavior in International Business

It helps in understanding the diverse culture of different countries where any organization is working.

It help to know the preferences of the consumers of regions.

It helps to know what influence a consumers’ buying decision and why.

To understanding the various segments of the market of different countries.

What does this picture says?!!!

Factors Influencing Consumer Behavior in International Business

The psychoanalytical model takes into consideration

the fact that consumer behavior is influenced by both

the conscious and the subconscious mind. A hidden

symbol in a company’s name or logo may have an

effect on a person’s subconscious mind and may

influence him to buy that product instead of a similar

product from another company.

 

 

The sociological model primarily considers the idea that

a consumer’s buying pattern is based on his role and

influence in the society. A consumer's behavior may also

be influenced by the people she associates with and the

culture that her society exhibits. For instance, a manager

and an employee may have different buying behaviors

given their respective roles in the company they work

for, but if they live in the same community or attend the

same church, they may buy products from the same

company or brand.

Contemporary models

• Nicosia model

• Engel,blackwell and miniard model

• Webster and wind model

Recent Global Trend in Consumer Behavior

Multiplicity: We are increasingly expecting things to do more that involves interacting with all our senses, offers us a range of touch points to play with, and involves us entirely in new experiences.

Hyper Efficiency: We are seeking and discovering ever-smarter and more efficient ways to solve age old issues–such as keeping fit, lack of space and limited resources. The results are better, quicker and use things that have previously been ignored. With a growing awareness of how limited resources are, innovations are creating valuable assets out of the otherwise unused.

Recent Global Trend in Consumer Behavior(cont.)

 The New Industrial Revolution: Digital and technological advances are enabling us to create in new ways–leading to new creative forms and helping us see a new appreciation of the digital as a thing of beauty.

Escape: In a world of austerity and grown up responsibility, we are seeing the increasing desire to let go, to let loose and indulge in childlike freedom. People are demanding more from every type of experience. We’re seeing the desire to indulge in most people. People are seeking occasions that allow them to let go of all responsibilities and inhibitions.

Recent Global Trend in Consumer Behavior(cont.)

Mindfulness: In a world full of buzz and surface interactions, people are seeking more depth and meaning. They are craving time away from the stimulus of the internet, making their leisure time more about self-development, and taking their own ethical responsibilities seriously.

Super-personalized: Personalization has been taken out of the hands and tastes of consumers. Advances in technology mean that producers are able to read consumers and give them what they want sometimes without even being asked.

International Consumer Behavior and Online Shopping

What is Online Shopping?

Online shopping or e-shopping is a form of electronic

commerce which allows consumers to directly buy

goods or services from a seller over the Internet

using a web browser. Alternative names are: e-web-

store, e-shop, e-store, Internet shop, web-shop, web-

store, online store, online storefront and virtual

store.

Why do Consumer Shop Online nowadays?

Lower prices Privacy Convenience Facilitate International Business

The Different Online Shopper Personality Types:

Way Consumer behaves online

Recreational Shoppers

Deal Hunters

The Flitter

The Researcher

Impatient Shoppers

The Different Online Shopper Personality Types:

Way Consumer behaves online(cont.)

Rewards Shoppers

Hipsters

Day Dreamers

Intrepid Explorers

5 Consumer Behaviors Changing Online Shopping in Recent Times

1. Consumers shift to More Sophisticated Queries

2. Consumers Embrace A Visual Culture

3. Consumers Rely on the Opinion of Others

4. Consumers Want the Facts

5. Consumers Feel that Price Matters

How Retailers Should Respond to These Changes

Retailers Should Embrace Product Data FeedsAn optimized data feed is the key to meeting new consumer

expectations and converting a browser into a shopper. Expert feed management has typically been necessary to make shopping programs successful.  Those managing search advertising had expertise around keywords and knew little about the feed.  Now, the lines between those two functions are blurring, and the data feed includes all the information—long tail keyword, detailed product information, images and price—that is required to appeal to the curious shopper. In 2014, successful search marketers need to understand data feeds and start thinking about how these programs can work together to improve brand image and online sales.

Case Study on Starbucks Coffee

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