The behavior of consumers is one of the most critical factors that have the highest impact on the sale of product and profit of the company. The attitude and the approach of the consumers of the different countries become different towards a particular product. Globalization began around the twentieth century, and it was then that all the business organizations of both developed and developing nations were impacted. Consequently, this resulted in a boom of international trade and thus marketing activity as well. Slowly, the international marketing environment started to become highly competitive, and as a result, it had become essential for global companies to become more careful about the choice of marketing strategies.
This was also because of the changing behavior of consumers, with relation to globalization. While some scholar believes globalization has resulted in creating a worldwide homogeneous market and thus need standardizing of marketing activities; while others think that the world is now different market (where every consumer’s needs are different) and therefore calls for strategies to be adapted as per local requirements. In the recent times, the number of the competitors has increased in the market. The other companies have become a significant challenge for the sale of the commodity.
Why Is Consumer Behavior Gaining A Lot Of Popularity?
The consumer’s buying decision is the crucial factor for the resistance of the commodity in the market. The consumer’s’ buying decision is changing because of the different promotional strategies of the other companies. The sale of the merchandise is degrading because of the changing choice of the customers. As the changing sale and the market share of the company are decreasing the profit margin of the company is at risk. Hence, the low level of the profit of the company is the present issue of an e-commerce shopping cart.The company has a plan to increase their sale, and the advantage and this low level of the gain is a hurdle in the way of the further success of the company. So changing buying decision of the customer is an issue now to proceed on the road to success.Consumer Behavior is the activities that “people undertake when obtaining, consuming and disposing of products and services”.
What Are The Main Factors Of Consumer Behavior?
Factors like age purchase power, a standard of living of an individual or in fact, the personality of the person; often affects the buying behaviour of the consumer. For example, in a developed nation, if a person has limited purchase power, he would be expected to shop at various reputed brands. Whereas, if the same person had more purchasing power, he would probably be seen shopping at renowned sites.Factors like consumer’s physical or social situation can also influence the buying attitude of a consumer. For example, a senior woman will not buy a 5kg potato, even if she wants to; as her physical condition would not allow her to carry that weight.
Similarly, an office goer might like something on his way to the office, but is unable to buy it due to lack of time. These are examples of situational factors.Factors like perception, learning capacity, beliefs, etc. of an individual positively affect his/her buying behavior website shopping cart. These factors also determine how good he/she is in retention and as a result, could better make use of offers. For example, if a teenager sees a promotional campaign on TV, he/she is more likely to remember the proposal and make use of it in store; than an older adult.
How Can External Social Factors Influence The Buying Behavior?
This includes the influence of family members, relatives and other opinion leaders in a particular consumer’s buying behavior. For example, a British Asian kid might himself not be too religious and open to non-halal food; while the pressure from family or friends might influence his buying behavior towards buying halal food. Social might also include other factors like social class (as in, if a customer is from a low, middle or high level to afford a particular product) or even culture sit is the theory of demand that explains a consumer’s purchase behavior; which depends on the following four factors.
This determines typically the quantity of a particular product consumed, considering all other factors are unchanged. And usually, the amount of a product is bought more when the price is lower. For example, a particular product is often very high priced but is available for a lower price, on offer, for a short period. A consumer may then buy the product in more significant quantities and keep for future.
Here Are Some Other Factors Related To Buying Patterns
Consumer’s Income – This also influences the quantity of a product that the consumer buys. Commonly, higher the income, higher the amount of product purchased. For example, a consumer with higher income would not think much before buying cosmetics or makeup items in more significant quantities, whereas a person with lower income will have to plan to purchase such items.
Prices Of Related Product – This would also influence the demand for a particular product. For example, a person likes to eat a specific brand of rice, but its competitor is offering similar rice at a significantly low price. This might influence the consumer to buy the competitor’s product for trial, and if he/she likes it, this might even lead to the change of brand loyalty.
Consumer’s Tastes And Preferences – This also plays a significantly vital role in determining the demand for a product. The total of consumer demands give the figure for the application of a particular product in market – “the market demand curve shows quantities of the commodity demanded at different prices, given all other factors”.
The Role Of A Firm Operating In A Monopolistic Market
A firm that serves in a monopolistic market has some exercise on the price and likewise, can influence the taste and preference of consumers, to a certain extent (through marketing). For example, the market for Apple laptops is still monopolistic, and thus, there is a chance that it can affect consumer behavior. If today, they suddenly pull back all the MacBook and introduce something new, consumers would desperately want to try the new one, as they would have little or no option.
Not until recently did people get to know about the existence of each other. Their curiosity, hunger for knowledge and the want of sharing the experience, led to the exploration of the world and discovery of the connection between America and Europe by explorers like Columbus and Marco Polo. Before this, a man had no scope to know about others’ achievements and findings.
The relation of Globalization to the world of business is relatively new, as it was only in the last twenty years that Globalization has changed the scenes in the business world, drastically. The issue about Globalization’s effect on a firm and firm’s response to such force has been documented to have had only limited research.
The Role Of Celebrity Endorsements In Influencing Consumer Behavior
Celebrity endorsement is a powerful instrument of advertising, which has now become a standard element of the marketing campaign and also seems to have become a trend amongst marketers, in spite of the risk involved. Celebrity endorsement as a form of brand promotion, in which a well-known person is made part of a marketing campaign for advertising the product or service, so that he/she can use his/her fame to promote the product or service. In other words, Celebrity endorsement is a way of brand communication through which celebrities endorse the brand by transferring their personality and status in the society. However, it is essential that there is a match between the image of the endorser and the brand; so that the endorsed names can efficiently convey the uniqueness of the product through the endorser.
What Is International Marketing Strategy Concerning Consumer Behavior?
International marketing helps a company in executing activities that help them bridge gaps with the other companies as well as the foray into the business scene with their products, globally. International Marketing allows enterprises to hold ground with their marketed products both in countries worldwide and inside their own country as well. Although marketing concepts or principles in two or more states may be same, the execution environment differs. The foreign market scene is unique and uncertain, and hence, business firms need a variety of strategies is to overcome new challenges and opportunities that come with it.
Also, international marketing allows companies to manufacture their products globally. Such companies are always on the lookout for new markets all over the world. In case of global marketing, the whole world is considered as one single market which includes domestic market as well. The global company develops strategies applicable to countries worldwide, and they also create products with a comprehensive image.
The relation between Globalization and international marketing is very significant. Globalization has resulted in marketing scholars think with a global approach, like Greek philosopher Socrates, who mentioned: “I am a citizen, not of Athens of Greece, but of the world”. International marketing is omnipresent due to Globalization and provides new scopes and hurdles to prove mettle for marketers, worldwide.
Different individuals approach globalization in various ways; but all are primarily of the idea, that Globalization is ultimately a very confusing word. On the one hand, Globalization involves sectors of business such as fluctuation of wages, a growth of international tourism, ties and deals between multinational companies, transactions between multinational currencies and on the other hand, things like policies on greenhouse emission or alterations in a budget in government and public sector also fall under Globalization.
The Influence Of The Degree Of Standardization
The degree of uniformity influences the business strategies and modes of execution of a company with the sole motive of attaining similarities between different markets it caters to. Whereas, Globalization includes the assimilation of both standardized as well as market-based policies.Standardization is the preferred approach. Standardization helps in building a reliable and robust product image worldwide, resulting in companies having increased sales. Standardization policies also help in cost cutting for corporations.
Any company’s approach to global marketing is defined by its overall business strategy. Most often, better program standardization is achieved by various functional areas of a multinational corporation. In such circumstances, the central headquarter monitors the Manufacturing, Finance or R&D departments, while the local managers are responsible for making marketing decisions.
One of the significant issues in this standardization versus adaptation debate has been the product standardization. Due to the influence of local culture, Consumer non-durables (CND) need more adaptation than consumer durables. Product adaptation is necessary, and marketers can enhance the product appeal to the customers by addressing the issues like cultural factors, usage factors, legal standards, product liability, product acceptability and ethical consideration.
The Force Behind Product Standardization
The driving force behind product standardization has been Culture. The more cultural similarities prevail worldwide, more the acceptance of standardized products shall occur. Geographical, topographical and climatic factors which shape the culture remain constant and seldom are subject to change. They influence the designing of the commodity and its features, to a great extent. The other constituents of culture including language, belief systems, the level of nuptial development, aesthetic sense and the strata of society one belongs to, are subject to changes, and thus discrepancies could arise accordingly in case of the shopping cart for a website.
Consumer’s buying behavior is mainly influenced by belief systems which are, in turn, mainly influenced by the religion. A person’s characteristics as well attitude towards life and work are shaped by Religion and superstition. Also, the aesthetic values heavily cast an influence on the fundamentals of product practicality, which in turn are present in arts, music or theater and also help in influencing consumer’s buying behavior. For instance, the acceptability of a product to the customers is often determined by the attractiveness of the packaging or advertising of a product.
However, the standardization of brands hit rock bottom during a particular period. But the economics of scale remained the critical factor behind uniformity of marketing mix. Companies can offer lower market price to its customers, as the cost of production goes down. For instance, standardized advertising could lead to cost savings and also help eliminate the difference between cultures.