Chapter 6: Consumer, Industrial, and Government Markets Flashcards
(163 cards)
Global consumer
An individual or an organizational buyer that exhibits similar needs and tastes worldwide
Emergence of global consumer coincides with two important driving trends:
- Globalization
- Technological developments in information and communications
Globalization
Characterized by a combination of falling trade barriers and the industrialization and modernization of nations worldwide
Technological developments in information and communications
Transportation and global media
Global market segments
Groupings of consumers that exist in multiple countries and display similar characteristics regarding preferences and consumption of specific product or service categories.
Individual global consumers
in some industries (e.g., furniture, home appliances, office supplies, automobiles, consumer electronics, etc.)
But still specialized in some other industries (e.g., food, books, music, clothing styles)
Influences on the global consumer
- Situational Factors
- Economic Status
- Technology Level
- Personal Motives
- Culture
- Social Factors
The ability to purchase goods and services is strongly influenced by…
Income level
Why do emerging markets represent promising market opportunities?
Because emerging markets have rapidly rising incomes
What are income levels related to?
The size of the middle class.
What is the economic status also related to?
To the occupation
Technology
Refers to knowledge and usage of tools, machines, techniques, or methods of an organization applied to solving problems or performing particular functions.
What is the technology level influenced by?
The nature of education systems in individual countries.
The hierarchy of needs (from bottom to tip)
- Psychological needs
- Safety needs
- Love and belonging needs
- Esteem needs
- Self-actualization needs
How is the hierarchy of needs relevant to international marketing?
- Need levels vary worldwide as a function of economic status, technology level, and other factors
Worldwide, people do not consistently follow Maslow’s hierarchy of needs
Culture
Integrated system of learned behavior patterns that distinguish members of a society
Norms
Accepted behaviors within a society or group.
They may be explicit or implicit and define the rules of behavior regarding interactions with others.
How do norms vary substantially from country to country?
E.g., Luxury goods market in China and Japan
E.g., emphasis on sustainability in Europe
What influences consumer behavior?
Family and social groups
- In Asia, family members exert considerable influence on the consumption patterns of individuals
Situational factors
Environmental or locational conditions that affect how consumers behave
What is an example of situational factors?
Physical surroundings
Physical surroundings
Include geographical location and climate.
- E.g., store locations in North America are influenced by the tendency of consumers to drive to shopping destinations, while in Europe and Japan stores are more often located at sites well served by public transportation
Individual-difference psychological factors
- Country of origin
- Consumer ethnocentrism
- World mindedness
- National identity strength
- Animosity
The industrial buyer
- Purchases raw materials, parts, components, and supplies in order to produce other products or run a business.
- Buying is performed by professional purchasing managers who may buy enormous quantities of goods
- Strongly influenced by globalization