1. Chapter 7 Consumer Behavior in the International Context

2. Psychological and Social Dimensions Perspectives on Consumer Behavior Motivation Learning Personality - Personality Traits -Clustering: Commonality and Diversity

3. Consumer Behavior Consumer behavior may be defined as a study of human behavior within the consumer role and includes all the steps in the decision-making process. The study must go beyond the explicit act of purchase to include an examination of less observable processes, as well as a discussion of why, where, and how a particular purchase occurs. Culture undoubtedly affects the psychological and social processes and thus affects consumer behavior.

4. Motivation Motivation is fundamental in initiating consumer behavior. Motivation may be viewed as a drive that is directed by a motive formed in relation to a particular goal. Consumer motives are determined largely by buying habits, though motives can vary. Motives may be classified as rational and nonrational. Examples of rational motives are price, durability, and economy in operation. Nonrational appeals, in comparison, include prestige, comfort, and pleasure. Convenience, for instance, can be both rational and nonrational at the same time.

5. Factors PSYCHOLOGICAL FACTORS - unit of analysis = individual SOCIAL FACTORS - unit of analysis = group

6. Psychological and Social Dimensions Psychographics Perception -Formation of Perception -Country of Origin and Perceived Product Quality Attitude Social Class

7. Personality Personality, derived from a Latin word meaning “personal” or “relating to person,” is the individual characteristics that make a person unique as well as consistent in adjustments to a changing environment. Personality is an integrated system that holds attitude, motivation, and perception together. To study a personality is to study the person as a whole – not only the separate, individual elements that make up a person.

8. Personality traits Personality traits are relatively stable qualities, but they do vary in degree from person to person. Because personality study applies to a person rather than to a group, it is difficult to make generalizations about personality traits among people of a particular country. One personality trait that has gained recent attention is consumer ethnocentrism. Highly ethnocentric consumers thus tend to buy domestic products. Table 7.1 shows the CETSCALE which is used to measure consumer ethnocentrism.

10. Psychological Factors Motivation Learning Personality Psychographics Perception Attitude

11. PSYCHOGRAPHICS Psychographics is a quantitative analysis of consumers’ lifestyles and activities with the purpose of relating these variables to buying behavior. Questions normally included in psychographic studies are those related to demographics, personality traits, and activities such as media habits, retail patronage, and general interests. As an example, the VALS (Values and Lifestyles) instrument was tailored to the Japanese market. Ten Japanese segments have been identified:

12. PSYCHOGRAPHICS integrators who are well educated and modern (4%), sustainers who are resistant to change (15%), self-innovators who are young and self-directed (7%), self-adapters who are shy and look to self-innovators (11%), “social intelligence” – innovators who are career oriented and middle-aged (6%), adapters who are shy and look to innovators (10%), tradition innovators who are middleaged and active in the community (6%), tradition adapters who are young and affluent (10%), high pragmatic who are withdrawn and suspicious (14%), and low pragmatic who are attitudinally negative and oriented to inexpensive products (17%).

13. Backer Spielvogel Bates Worldwide There are five distinct groups of consumers worldwide: (1) strivers (26%) – relatively young people who work very hard and seek convenience and instant gratification, (2) achievers (22%) – affluent opinion and style leaders who pick brands that make statements about status and quality, (3) pressured (13%) – predominantly women who contend with economic and family pressures, (4) adopters (18%) – older consumers who live comfortably in a changing world by respecting new ideas, and (5) traditionals (16%) – those who embody the oldest values of their countries and cultures and resist change while preferring familiar products.

14. Perception Perception goes beyond sensation by providing meaning to sensory stimulations. It is the process of interpreting nervous impulses or stimuli received that the brain must organize and give meaning through cognitive interpretations. Product will be successful depends significantly on how it is perceived. A marketer should provide some cues about a product in order to aid consumers in perceiving the product in the desired manner.

15. Country of origin and perceived product quality One of the cues often used by consumers in evaluating products is where a product is made. It is not unusual for consumers to categorize countries (e.g., rich, poor, developed, developing) and to use these categories to judge product quality. There is evidence of country-category effect in the sense that consumers use stereotyping in typing product classes and brands.

16. Country of Origin and Perceived Product Quality Factors Affecting Perception of Product Quality -Country of Assembly -Country of Design -Retailer's Image -Brand Name -Marketing Factors -Halo Effect vs. Product-Specific Effect

17. Psychological and Social Dimensions Group Family Opinion Leadership Diffusion Process of Innovations

18. Social Factors Social Class Group Family Opinion Leadership Diffusion Process of Innovations Culture Subculture