Consumer behavior and marketing strategy Introduction European and international perspective

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Consumer behavior and marketing
strategyIntroductionEuropean and international
perspective

• Doc. Dr. Ing. Elena Horská,
• Department of Marketing FEM SUA in Nitra

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Theory of consumer behaviour

• The field of consumer behavior covers a lot of
  ground
• it is the study of the processes involved when
  individuals or groups select, purchase, use or
  dispose of products, services, ideas or
  exeriences to satisfy needs and desires.
• Consumer behavior is the dynamic interaction of
  affect and congition, behavior and the
  environment by which human beings conduct the
  exchange aspects of their lives.

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Consumer behavior as a field of study

• Consumer behavior is a very new field and, as
  it grows, it is being influenced by many
  different perspectives.
• The pyramid of consumer behavior theory
• Micro consumer behavior (individual focus)
• Macro consumer behavior (social focus)

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Interdisciplinary research issues in consumer
behavior I.

• Experimental psychology product role in
  perception, learning and memory processes (which
  part of magazine are most likely to be read)
• Clinical psychology product role in
  psychological adjustment (do thin models make the
  average woman feel overweight?)
• Microeconomics product role in allocation of
  individual or family resources (factors
  influencing the amount of money spent on
  magazines in a household)
• Social psychology product role in the behaviors
  of individuals as members of social group (ways
  that ads in a magazie affet readersattitudes
  towards the product)
• Sociology product role in social institutions
  and group relationships (patterns by which
  magazine preferences spread through a social
  group)

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Interdisciplinary research issues in consumer
behavior II.

• Macroeconomics product role in
  consumersrelations with the marketplace (effects
  of the price of fashion magazines and expense of
  items advertised during periods of high
  unemployment)
• Literary Criticism product role in the verbal
  and visual communication of meaning (ways in
  which underlying messages communicated by models
  and ads in a magazine are interpreted)
• Demography product role in the measurable
  characteristics of a population (effects of age,
  income and marital status of a magazines
  readers)
• History product role in societal changes over
  time (ways in which our culture has changed over
  time)
• Cultural Anthropology product role in a
  societys beliefs and practices (e.g.
  readersdefinition of masculine vs. Feminine
  behaviour)

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Literature and futher studies (some suggestions)

• Solomon Consumer behaviour
• Kanuk Consumer behaviour
• Peter Olson Consumer behaviour and marketing
  strategy
• Kulcakova Richterova Spotrebitel na trhu
• Horská, Nagyová, et al Európsky spotrebitel a
  spotrebitelské správanie (in printing)

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Consumers versus marketers perspective

• Pre-purchase issues
• How does a consumer decide that he/she needs a
  product?
• Purchase issues
• How do situational factors such as time pressure
  or store displays, affect the consumers pruchase
  decision?
• Post-purchase issues
• What determines whether a consumer will be
  satisfied with a product and whether he/she will
  buy it again?

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Three elements for Consumer Analysis
Consumer affect and cognition (thinking, belief,
feelings, understanding stimuli)
Consumer Environment (social stimuli, culture,
Subculture, physical stimuli, ad)
Consumer behavior (where to go, what to buy, how
to pay)
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Practical implications of consumer studies

• Understanding consumption and its meanings
• Explain consumer decison making and behavior
• Predict consumer choice and behavior

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Consumer behavior people in the marketplace

• Global marketplace .... Same people, same
  approach, standardization....
• Regional marketplace .... Where is it?
• Local marketplace .... Differences among people
• European marketplace .... How is European
  consumer?

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... Considerations on globalization from
business sphere
...Strategies and sources are solved at global
level in our company, .... We produce regionally
and sell locally. ... We support our brand and
take care of local customer preferencies...
(Herbert Baum, exprezident Campbells soup)
... Consideration on globalization and
regionalization point at fact that company Nestle
looks for balance between the global strategy and
local conditions... (Peter Brabech Lemathe,
Nestle)
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Think global, act local...

• In the 1970s the argument was framed as
  standardization vs. adaptation.
• In the 1980s it was globalization vs.
  localization.
• In the 1990s it was global integration versus
  local responsibilities.
• In the twenty-first century, standardization
  versus adaptation is simply not the right
  question to ask. Rather, the crucial question
  facing international marketers is what are the
  most efficient ways to segment markets.

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Adaptation

• Adapting the offer to the local requirements and
  consumer needs
• Product
• Price
• Place
• Promotion

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Standardization

• Standardizated products for global markets and
  global customers which are the same in all the
  world (a world is one global village)
• Product
• Price
• Place
• Promotion

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Global products are related to

• Health, fitness, wellness
• Convinience products
• Enjoyment marketing, experiences, having fun in
  consumption
• Country-of-origin/regional specialities
• Higher levels of Maslow hierarchy of needs
• Extra value added

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On the middle of the road from adaptation
towards standardization
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On the middle of the road from adaptation
towards standardization ????

• McDonalisation
• Coca-Colonization
• Americanization U.S. cultural imperialism

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On the middle of the road from adaptation
towards standardization

• look for differences and uses the principle of
  adaptation to meet requirements of local
  customers
• look for similarities and tries to find the
  effective model satisfying the majority of
  customers

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G-localization

• Combination of standardization and localization
  in terms
• to behave as the home firm
• to accept the local patriotism
• to change the local consumer behaviour
  continuously, no rapidly
• consumers to perceive the market changes as the
  natural development, no aggressive marketing.

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G-localization ... because of respecting ...

• Focus on market responsibilities
• Cultural differences
• Regionalism is the grouping of countries into
  regional clusters based on geographical location
• Deglobalization moving away from the
  globalization trends and regarding each market as
  special, with its own economy, culture and region

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European consumer

• How should
• we define an European consumer?
• Which approach to use?
• National?
• Regional?
• Global European one?
• Do we know something about our European
  neighbours?

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According to research associated with VanderMerwe
and LHuillier (1989), companies in Europe can
compete effectively in Europe by accurately
targeting customers close to one another, but
not necessary living in the same country.

• The six clusters identified by VanderMerwe and
  LHuillier (1989) are
• the UK and Ireland,
• Central and Northern France, Southern Belgium,
  Central Germany and Luxembourg,
• Spain and Portugal,
• Southern Germany, Northern Italy, Southeastern
  France and Austria,
• South Italy and Greece,
• Northern Germany, the Netherlands, Northern
  Belgium, Iceland, Norway, Finland and Denmark.
• These studies did not consider countries of
  the Central and Eastern Europe. In present time
  they play an important role in processes of the
  European economic integration and present
  challenges for Western companies entering their
  markets.
• Based on the common features of historic
  background, geographical location, culture and
  consumer habits we can distinguish between
  Central European cluster, South East European
  cluster and Baltic States. Of course, there are
  still certain internal differences within such
  roughly defined clusters.

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European Marketing and Consumer Approach
Who is a target customer?
Global approach
Local approach
What is a plan for territorial expansion?
Regional approach