session 4 - analysis (2) - consumers.pdf

8/16/2019 Session 4 - Analysis (2) - Consumers.pdf

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Internationalconsumer behavior


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Analysis

Strategyformulation

Tacticaldecisions

Marketingcontrol

Micro-environment

Meso-environment

Macro-environment

Marketing mix

After-sales service

Necessary for

Influences

Combineswith

Analysis of the organization’s potential to go international

Analysis of potential clients:- Consumer behavior- Language

Analysis of foreign markets- PESTEL analysis- Trade barriers & agreements- Culture

Combines with

Combines with

Combines with

Isdetermined

by

Isdetermined

by

Isdetermined

by

Standardization or adaptation of price,promotion, product and place

Positioning andSelection of entry mode

Building brand associationsEntry mode research

International aspects of after-salesservice

Intl. research Data equivalenceResponse styles

Combines with

Marketing metrics Marketing dashboardsIs

determinedby


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Topics for today

1.Reviewing thebasics

2. Are international

consumersdifferent?

3.Some more

biologicalinfluences …


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Topics for today



consumersdifferent?

3.Some more



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Consumer behavior

“Is the final consumer’s buying behavior: The individuals andhouseholds that buy products and services for personal use ”

• It is crucial to understand how people react to marketingstimuli

• Consumer vs customer?


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“Human behavior is massivelyvaried and complex”

Stephen M. Downes


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Economists often consider consumers asrational information processors… True or not?


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Stimulus-respons model of buyer behavior

Marketing-stimuli

Otherstimuli

Black box Buyer’s reaction

Product

Price

Place

Promotion

Economical

Technological

Political

Cultural

Buyer’s characteristics

Decisionmakingprocess

Product choice

Brand choice

Dealer choice

Moment of buying

Amount of spending

Hard to predict


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Personal characteristics that influence buyingbehavior

CulturalSocial

Personal

Psychological

Consumerbehavior

Culture

Subculture

Social status

Referencegroups

Family

Roles andstatusses

Age and life

cycleEmployment

Economicsituation

Lifestyle

Personality

Perceptions

Motivation

Learning

Attitudes andbeliefs


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D i f f e r e n c e s

b e t w e e n

b r a n d s

L a r g e

S m a

l l

InvolvementHigh Low

Complex buying behavior

Dissonance-reducingbuying behavior

Variety-seeking buyingbehavior

Habitual buying behavior


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Feedback

Routine buyingbehavior

Purchasedecision

Evaluation ofalternatives

Informationsearch

Needrecognition

Postpurchasebehavior


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Topics for today



consumersdifferent?

3.Some more



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Imagine the following situation

• Two 20 year old girls work in a restaurant. Both areequally attractive. However, one of them felt likewearing red lipstick today, while the other doesn’t .They serve an equal amount of customers. At theend of the day, they compare their tips.o Who will get the largest tips?o Why?


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0%

10%

20%

30%

40%

50%

60%

Red Pink Brown No lipstick

51%

40%

35%30%31%

32%

26% 27%

P e r c e n

t a g e o f t

i p p

i n g c u s

t o m e r s

Male customer Female customer

Explanation? Men find womenwearing red lipstick more

attractive


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We need to understand proximate andultimate explanations of human behavior

• Proximate explanationo Addresses the how and what of a phenomenon

• The customers find the girl wearing lipstick more attractive thanthe other girl, and are therefore more likely to tip the youngwaitress

• Ultimate explanationo Addresses why a certain trait of behavior have evolved

to be of this particular form• E.g. Red lips indicate that a woman is more fertile and more

healthy, and therefore, she is more likely to create (healthy)offspring.


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Certainphenomenon

Proximate

explanation

Ultimateexplanation

= Evolutionary psychologyperspective

= Cognitive psychology,social psychology,

behavioral decision makingtheories ,…

Men are more likely to tip awomen that wears red

lipstick

Men find women wearingred lipstick more attractive

Men look for a matingpartner that is more likely tocreate offspring, and red

lips are an indication of this


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“Humans are not born with blank-slate minds, only to be filled

subsequently by a broad assortmentof socialization forces ”

Gad Saad


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“Natural selection ” = Adaptations that provide a

survival advantage

“ Sexual selection ” = Traits that provide a

mating advantage


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?


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Fundamentalmotives

framework

Evadingphysical

harm

Avoidingdisease

Makingfriends

Attainingstatus

Acquiringa mate

Keepinga mate

Caringfor family

Source: Griskevicius and Kenrick (2013)


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Basic tenets of the Fundamental MotivesFramework

1. A fundemental motive can be activated by an external orinternal cueo External: E.g. interaction with a desirable member of

the opposite sex

o Internal: E.g. hormonal fluctuations

2. The currently active motive shapes preferences

3. The currently active motive guides decision processes


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Avoiding physical harm

• Triggered by angry faces, darkness, loud noises ,…

• Leads to an increased loss aversion, an increasedtendency to conform and a decreased risk-seeking

• A self-protection motive might lead people to choose abrand that the majority of similar others, regardless of whatthe brand iso Experiment: BMW vs. Mercedes


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• A self protection motive might lead people too prioritize safety on foreign travel destinationso fly the safest airlineo stay in the most well-lit and reputable hotel


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• Also means ingesting the necessary caloric requirementso Humans have an evolved gustatory preference for

highly caloric foods• Top 10 global restaurant chains all serve fatty and tasty food at

affordable prices

o Humans also have an innate desire for variety• Our bodies crave the necessary nutrients from a well balanced

diet, and variety reduces the risk of food toxins• Explains the success of all-you can eat buffets


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• People exhibit a universalpreference for savanna-likelandscapeso Offers a wide visual prospect

while affording refuge fromenvironmental threats (e.g.predators, hostile outgroupmembers,…)


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Fundamentalmotives

framework

Evadingphysical

harm

Avoidingdisease

Makingfriends

Attainingstatus

Acquiringa mate

Keepinga mate

Caringfor family



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Avoiding disease

• The psychological disease-avoidance system is activatedby cues suggesting the presence of pathogenso exposure to others ’ coughing, sneezing ,… o Foul smells, dirtiness ,…

• Leads to people becoming more introverted, seeking cleanand familiar products, and avoiding used products

• Spurs people to seek familiar food, to pay more for a newproduct rather than a used one ,…


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Avoiding diseases

• A disease avoidance motivate might lead people too travel to non-exotic and nearby placeso drive instead of fly, because contagious diseases might

be picked up at the airporto choose clothing made of natural fiberso pay more for food that doesn’t contain synthetic

additives


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Fundamentalmotives

framework

Evadingphysical

harm

Avoidingdisease

Makingfriends

Attainingstatus

Acquiringa mate

Keepinga mate

Caringfor family



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Making friends

• People primed with an affiliation motive:o Spent more money on products that can be enjoyed

together with other peopleo Especially seek brands and styles that help them fit in

o Are more susceptible to word-of-mouth informationo Seek other’s opinion about new products


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Fundamentalmotives

framework

Evadingphysical

harm

Avoidingdisease

Makingfriends

Attainingstatus

Acquiringa mate

Keepinga mate

Caringfor family



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Attaining status

• People desire to gain status in their groupo Status is defined as a higher position compared to others on some

dimension (e.g., academic or athletic skill, physical attractivenessor wealth) that is deemed important by society

• Triggered by cues of dominance, prestige, or competition

• People with higher status have:o

greater interpersonal influenceo more material resourceso higher self-esteemo better health


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Attaining status

• Costly signaling theory(Zahavi 1975, Grafen 1990)

o expensive behavioral or morphological signals aredesigned to convey honest information benefiting bothsignalers and the recipients of these signals

• Two tenetso Signals must convey reliable information about variation

in the underlying quality being advertised

• E.g. competitive ability, genetic endowment, health and vigor,resource control,…

o Signals impose a cost on the signaler that is linked tothe quality being advertised

C tl i l i t t


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Costly signals can increase status


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Acquiring a mate• Acquiring a desirable romantic partner

• Triggered by the presence of real or imagined potentialmates

o Sexy or romantic ads, movies , TV shows,…

• When activated, people are attuned to information aboutthe desirability of others as romantic partners and their

own desirabilityo Triggers people to draw attention to themselves in

various ways• E.g. buying novelty products


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Experimental design


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Experimental design


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Menstrual phase : 1 to 5 days since the last menstruation had started;Fertile phase : 9 to 15 days since the last menstruation had started;Luteal phase : 18 to 28 days since the last menstruation had started


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Evading


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Fundamentalmotives

framework

gphysical

harm

Avoiding

disease

Makingfriends

Attainingstatus

Acquiringa mate

Keepinga mate

Caring

for family



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Keeping a mate• For 95% of all mammals, mating is a short-term affair

o For humans and a few other mammals, keeping a mateis a second mating challenge

o Great deal of time, effort and money go into maintainingrelationships (presents, anniversaries ,…)

• Activated by cues that celebrate or threaten a long-termrelationship (e.g. noticing that an anniversary is coming up)

• Leads people to show more love for their partner, andguard their partner from potential rivals.


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Keeping a mate• A mate attraction motive leads people to be more attentive

to attractive members of the opposite sex, a mate retentionmotive leads people to be more attentive to attractivemembers of the same sex

• Men engage in conspicious consumption (e.g. luxury) toattract a mate, women use lucury products to signal toother women that her partner is committed to hero Conspicious display is effective at decreasing other women’s

intention to poach a taken romantic partner (Wang and Griskevicius,2014)


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Evading


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Fundamentalmotives

framework

physicalharm

Avoiding

disease

Makingfriends

Attainingstatus

Acquiringa mate

Keepinga mate

Caring

for family



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Caring for family• The ultimate reason why parents bond with one another is

because it is good for the offspringo Newborns need support and protection

• As our brains grew larger, we were born earlier

• Can be triggered by cues of similarity, living together,common goals, or terminology like “brotherhood ”,“sisterhood ”, or “Our company is one big family”


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Caring for family• It motivates people to

o display nurturing behavioro sacrifice oneself to help others (especially relatives)o provide others with social support, physical protection

and/or financial support

• Many products adapt to this motivationo Diapers, baby bottles, toddler clothes, college tuition ,…


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f d


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Topics for today

1.Reviewing the

basics

2.

Are internationalconsumersdifferent?

3.Some moreuniversals …

What do our hands reveal about ourselves?


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What do our hands reveal about ourselves?

• 2D-4D ratio indicates the levelof prenatal testosterone onereceivedo High ratio -> 2D>4D:

Feminine (low levels of

prenatal testosterone)o Low ratio -> 2D


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I li (j i ) i l?


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Is morality (justice) universal?

Link to the full TEDx talk: http://www.youtube.com/watch?v=GcJxRqTs5nk

Is there a biological ground to attractiveness?


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Is there a biological ground to attractiveness?


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“ From Afghanistan to Zimbabwe, all humanshave evolved motivations to evade physicalharm, avoid disease, make friends, attainstatus, acquire a mate, keep that mate, andcare for family. These deep-seated ancestralmotives continue to shape modern consumer

preferences and decision-making, albeit notalways in obvious or conscious ways. ”

Vladas Griskevicius

Douglas Kenrick


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See you next week!


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See you next week!

session 4 - analysis (2) - consumers.pdf

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