Western Versus Regional Consumer Behaviour Models - Term Paper Example

Western versus regional consumer behaviour models Varying model approaches Consumer behaviour is characterized by elements of local culture, environment, lifestyle and attitude related to self-perception in most Western models of consumer behaviour. Western views on consumers have segments incorporated into their operational business strategies and promotional strategies based upon diverse or homogenous consumer attributes. In markets in which consumers maintain a great deal of buying power, they are included in a customer-centric business model that considers elements of service dimensions and product quality related directly to psycho-social and/or predictable consumer behaviour elements. Companies have models in marketing and research in Western sales markets designed to identify or predict responses and involvement level based on their characteristics unique to specific target markets. What separates Western views of consumer behaviour from regionalized marketing strategy is the quantity of research information provided on consumer lifestyle in the U.S. and United Kingdom (as two examples) versus resource restrictions in the international community on market characteristics and homogeneity. Additionally, the approach to Western consumers is one in which the business must have flexibility and adaptability in areas of production and procurement in order to find sales success. This means oftentimes restructuring the organisation to support new product development or rapid innovation, however largely driven by external consumer behavioural characteristics. Foreign marketers are often limited through resource allocation concerns or simply do not have enough localized market knowledge to proceed with effective marketing strategies. The Western consumer behaviour models The Western model of consumer behaviour is rather generic when compared to international models, especially in terms of use of the positioning map and the five stage involvement model running from problem recognition through supplier selection. Basic human behavioural traits act as the foundation for these models common throughout the world, thus rather standardized. Based on segment preferences, either demographic, geographic or psychographic related to lifestyle or attitude, Western models identify the consequences of decision-making, based on certain environmental conditioning scenarios or social influence, and predict buying trends using modified or standardized version of the selection and purchase processes. However, Martin-Consuegra, Molina & Esteban (2008) identify a key difference in Western consumer behaviour models related to market orientation. A market oriented firm is responsive to external changes in market demand or personal preferences related to the product and has built a more flexible operational model in order to service. Such an organization adapts new technological innovations in the pursuit of connecting with target customers who are in a constant state of social and lifestyle evolution. Such an organization must have customer orientation, competitor orientation and a functional inter-coordination between structure and environment (Gauzente 1999). This is what is required in the midst of highly saturated market environments with unique differentiation strategies from competitors in the industry as well as consumer profiles that are trend-reliant in many different consumer product categories. In the fashion industry, complex dynamics of human behaviour in Western civilizations are attached to the role of fashion as a symbolic good. Self-esteem is cited as a motivational driver for acceptance and rejection of fashion merchandise in Europe (Banister & Hogg 2004). On the perceptual map, many Western retailers are placed among competition in tightly similar positions on the map, thus many market risks are associated with how to position the company and differentiate through either focus on the offering or through elements of business values and goals. Therefore, countries such as the United States must expand on these models to introduce new and more flexible understanding of complex human behaviour in order to gain ground amid a trend-reliant sales environment. Consider how one describes Western psychographic segmentation: “Think of Betty Crocker as the Great Mother of ancient myth and the Bud Man as the hero in the Homeric tradition. We have to be psychic archaeologists to peel back the layers…” (Heath, 1996, pp.43). This recognition of the importance of understanding complex buying behaviours and patterns indicates the strategic value of understanding consumer attitude in order to consider how to position the business on the perceptual map. High market availability or potential to gain market share among competition is heavily reliant on this knowledge with companies investing considerable resources into studying buyer attitudes. Elements attached to the external environment that drive new model modifications in Western marketing focus include price sensitivity, peer review and analysis, the impact of reference groups, and exclusivity in some industries at the attitudinal level. Segmentation in diverse markets include focus on one specific characteristic that can be predicted and then building on lessons understood from consumer post-purchase surveys and other direct interfacing with customers to essentially help to build a new marketing model. It is an instantaneous knowledge exchange environment that requires internal commitment and knowledge of the involvement process in their identified target groups. International consumer behaviour models In Mexico, primary research knowledge involving 369 shoppers identified that promotional materials are effective in predicting buying behaviour based on consumer perception of brand familiarity (Rajagopal 2007). Mexican consumers look toward advertising and promotional strategies as an information system that distinguishes poor quality merchandise from more acceptable and reliable substitutes. In this study, products with less promotion were considered less favourable substitutes for the Mexican buyer. So, where does this create a gap between Western models and those from Mexico? Involvement rates would vary when looking for alternatives with certain homogenous groups that have been targeted as they trust promotional literature to guide their decision-making amid an environment with different telecommunications and research capability to maintain an instant communications relationship. Therefore, foreign marketers would need to ensure some sort of control system in their promotional strategy by understanding what content would be most valued by a promotion-reliant market segment. Foreign consumer behavioural models would not provide value if adopting Western models, as certain steps in the behaviour process would have less importance for foreign buyer groups. In Europe, the social class status is a factor in the purchasing process as well as how the individual views the value of the category of merchandise. Europeans have an ostentatious consumption pattern where products are purchased for this reason over their necessity in the recognition stage (Mariana, Raluca & Gratiela 2009). This creates implications for internal operational strategy as well as supplier networks and the internal relationships between functional divisions throughout the business. The adaptive strategies are focused primarily around the idea that nothing remains constant in regards to changing social and lifestyle values, with a link to the economic environment and its influence on discretionary income. These Westernized models take into account factors of production geared nearly entirely around customer sentiment and cognitive/emotional needs. In Mexico, such relationships are promotion-dependent and thus eliminate complex dynamics of relationship and customer relationship management in their models. In Ireland, certain red wine market studies revealed that red wine is the majority preference for the casual wine buyer. One study identified that when offering a promotional strategy, blending white and red varieties together on the same promotion should be avoided (Garaghty & Torres 2009). This market does not seem too particular when deciding where to purchase wine, using off licences, supermarkets and wine shops in equal demand (Garaghty & Torres). If the marketer were to adopt Western models of consumer behaviour for this market, such as positioning certain wines under the standardized FCB Planning Model that narrows market preferences, wine would represent a much higher involvement investment than in Western countries. This socio-cultural dynamic that drives preference negates certain steps in the decision-making process and would not fit on the standardized Western model. For example, Irish markets with a measurable cultural difference might extend the alternative searching step in the five stage model, with more emphasis necessary on post-purchase evaluation and word-of-mouth in close social units. In the U.S., the typical models describing consumer behaviour have much more developed interpersonal relationships with target consumers using mass media tools and innovations in peripheral service delivery. Clorox, General Mills and Kimberly-Clark devised an agreement with Kroger (a grocery chain) to test online coupon delivery to identified market segments of buyers. Consumers were given considerably more options, under a controlled environment from those supporting the effort, thus reducing their decision-making steps in alternatives selection that might be more common in less-developed countries. In this case, added value was the selling point by offering convenience tied into a loyalty programme. The FCB Planning Model in Western marketing would identify this as a generally low involvement purchase when considering commodities and these companies are reinforcing this habit to prevent motivation to search for alternatives. The idea is to drive the consumer to ultimate purchase, in a rapid response environment, with value added services. In Spain, however, consumers make purchase decisions while at the store, thus engaging marketers in much less emphasis on the first stages of consumer purchasing models and attempting to gain positive communications in the purchase stage. Spanish shoppers looking for variety analyse different factors associated with store brands and more well-known brands, with the tendency to alternate between the two based on market preferences (Martinez & Montaner 2008, p.477). The standard perceptual map to identify perceived consumer attitude toward the brand or product line would be ineffective for this market since situational factors would influence on-the-spot decision-making for certain commodity products. In this environment, in-store promotions might be the only required model of advertising to assist buyers in recognising whether store or name brand products are the better buy in terms of price, quality or lifestyle attribute. Differences in application The Strategic Triangle indicates the cyclical reliance on internal and external factors when determining how to market a product and build a production line model. It acts as a macro-analysis encompassing knowledge in areas of consumer education, knowledge of competitive brands or product lines, and environmental considerations that impact price sensitivity or other behaviours related to sales objectives. Western models of consumer behaviour are absolutely dependent on consumer knowledge when differentiation as a key strategy outperforms generic demographic or geographic segmentation strategies. These models do not indicate the consumer as an isolated factor from internal strategic intentions. The most striking difference between Western consumer behaviour models and its application is the focus on post-purchase impact for future product sales. This is evident with survey production and the dedication and support put toward service function and supplementary value-added activities. Consumers in this region have become accustomed to considerable choice and therefore demand these business principles over other international profiles. By in large, the stages of consumer behaviour in certain foreign markets are shortened or elongated by cultural preferences and therefore rely on new strategies to remain competitive. Socio-cultural characteristics are considerably important in the Western model, dependent on individualistic evaluation of the self and how the consumer is favoured or rejected in the minds of their colleagues and peers. Cultural tendencies in developing nations may not have these dependent needs on external influence and therefore require a stricter dedication to basic demographic data for positioning that will satisfy the objectives. The dedication companies participate towards in the pursuit of satisfying diverse consumer markets with added value activities beyond the product or service dimension is by in large the most significant difference. Conclusion Western consumer behaviour models differ at the social level most predominantly over other planning and execution strategies in marketing. Mexican consumers were noted as being reliant on promotional material to assist in making brand distinguishing considerations whilst this would be a fundamental part of the search process for Western consumers and therefore dismissed as an educational tool when broader media sources are present for these searches. The technology used to support marketing function is yet another aspect that differs in terms of value-added, supplementary service provision. References Banister, E. & Hogg, M. (2004). Negative symbolic consumption and consumers’ dive for self-esteem: the case of the fashion industry, European Journal of Marketing. 38, 7, p.850. Gauzente, C. (1999). [internet] Comparing market orientation scales: a content analysis, Marketing Bulletin. 10, pp.76-82. [accessed 11.12.2010] [available at http://marketing-bulletin.massey.ac.nz/v10/MB_V10_N4_Gauzente.pdf] Geraghty, S. & Torres, A. (2009). The Irish wine market: a market segmentation study, International Journal of Wine Business Research. 21,2, p.143. Heath, R. P. (1996). [internet] The frontiers of psychographics, American Demographics. 18, 7, pp.38-43. [accessed 14.11.2010] [available at sciencedirect.com] Hurst, Bernice. (2008). Identifying consumer demand: management briefing: methodology, Just-Food. September, pp.4-11. Mariana, C.L., Raluca, G.I. & Gratiela, G. (2009). Culture – major determinant of the European consumer behaviour”, Annales Universitatis Apulensis – Series Oeconomica. 11,2, pp.1019-1025. Martinez, E. & Montaner, T. (2008). Characterisation of Spanish store brand consumers, International Journal of Retail & Distribution Management. 36, 6, p.477. Martin-Consuegra, D., Molina, A. & Esteban, A. (2008). Market driving in retail banking, The International Journal of Bank Marketing, 26(4), p.260. Rajagopal, A. (2007). Buying decisions towards organic products: an analysis of customer value and brand drivers, International Journal of Emerging Markets. 2, 3, p.236. Read More