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Consumer Behaviour

This document discusses how cultural values influence consumer behavior globally. It outlines several frameworks for understanding cultural values, including terminal and instrumental values. Terminal values relate more strongly to product class selection while instrumental values influence brand choices. Changing cultural values present both opportunities and challenges for marketers in identifying new product opportunities, achieving better positioning, and requiring new marketing communications and distribution channels. The document also discusses different global consumer segments and considerations for products, promotions, distribution, and pricing in international markets.

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Divya Thakore
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27 views8 pages

Consumer Behaviour

This document discusses how cultural values influence consumer behavior globally. It outlines several frameworks for understanding cultural values, including terminal and instrumental values. Terminal values relate more strongly to product class selection while instrumental values influence brand choices. Changing cultural values present both opportunities and challenges for marketers in identifying new product opportunities, achieving better positioning, and requiring new marketing communications and distribution channels. The document also discusses different global consumer segments and considerations for products, promotions, distribution, and pricing in international markets.

Uploaded by

Divya Thakore
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Consumer Behaviour

Session 6
30/07/09
Each culture has what is termed as core values like:
Individualism
Equality
Activity
Progress & Acheivement
Efficiency & practicality
Religion & moral orientation
Humanitarianism
Materialism
How values influence
Values serves as standards or criteria that tell us how to act, what to
want, what attitudes to hold, they allow us to compare ourselves with
others

Types of values ( Rokeach)


Terminal Values- end states of existence
Eg. A comfortable life, an exciting life, a sense of accomplishment, self respect
family security etc.
Instrumental Values- modes of conduct
Eg. Ambitious, Capable, cheerful, clean, helpful, honest, polite etc.

Terminal values found to be related much more strongly to the


product class selection
Instrumental values were found to be related to brand choice
decisions
LOV ( developed by at university of Michigan) called “list of values” value
measurement scale and procedure

Rokeach Value Survey and List of values are helpful to marketers in


understanding important consumer aspects for determining
Promotion appeals
Product positioning and design
Channels of distribution
Pricing approaches
SRI international combines value and lifestyle information with
demographic data to develop a general psychographic profile
called VALS 2
The five major categories identified are
Actualisers
Fulfilleds and Believers
Achievers and strivers
Experiencers and makers
Strugglers
Changing cultural value and its impact on CB
Cultural values are dynamic & do change and it has implications for the
marketer.
Now you find a pluralistic society with new values coexisting with old ones
The society can be classified into three categories depending on their
propensity to change
Vanguard(25%) they are vocal, proactive, intense, searching for the new
Contd….
Adapters(35%) less passionate than the vanguards are hardworking, solid
citizens with deeply ingrained value systems & once commited to a a trend
they stay behind it for a longtime.
Resigned(40%) this group rarely changes their value system from cradle to
grave, they are geographically, socially and intellectually immobile with
intolerance for change.

Implications
Assessing present and emerging value systems can help marketers to
identify new product opportunities and achieve better product positioning
among consumer segment
Changing value systems may lead to different shopping pattern and new
distribution channels may be required to reach customers.
Newer ways of marketing communication required
eg. Ads:- depicting defiance of social taboos, greater stress on
ecology, depicting changing role of women, ads that breaks with tradition
Cross cultural understanding of Consumer Behaviour

Culture shock is experienced by the managers when they venture abroad


A lack of understanding of the host culture would make managers think
and act act as he would in his home culture- self reference criterion
Marketers must understand what type of value system predominates in
agiven culture
Examples of cultural factors
Time
Thought and communication pattern
Personal space
Materialism and achievement
Family Roles
Competition & Individuality
Social Behaviour
Market Segments
In the international markets also different segments exist and
different marketing programs have to developed for the
respective segments.
Global consumer segments:-
Strivers:- are young their median age is 31, lead active lives,
stressfilled look for products and services that provide instant
gratification
Acheivers:- same age as above, but more successful, affluent,
assertive & society’s opinion and style leaders. Value brands with
quality and status- Trend setters
Pressureds:- mainly women in all age groups, who find it difficult to
manage all problems in their lives.- little time for enjoyment
Adapters :- older consumers who live comfortably- content with life,
respect new ideas without loosing sight of their own values, Willing
to try new products and enrich their lives
Traditionals :- upholders of oldest values and traditions of their
cultures- resistant to try new products, happy with familiar
products.
Product considerations
The type of products that can be sold in different culture varies.
Product fit is to be assessed from the countries value system
Consumer products are more culture bound; industrial products least
Established product categories are more culture bound; new product categories
the least
Simple technology more culture bound; complex technology the least
Kitchen based items are more culture bound followed by bath, bedroom, living
room, garden and items to be used away from home.

Promotion Considerations
Promos are bound to fail with lack of understanding of foreign
culture
Distribution considerations
Eg expectations of UK housewife from supermarkets
Pricing Considerations
Price according to perceptions about exporting country.

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