Consumer Behavior and Global Business Management

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Table of Contents

Consumer Behavior
Global Business Management – Cultural impacts on global business
References

Consumer Behavior

Demographic versus psychographic data

Basically, demographic data comprise of the household and population figures and information for tenure, education, income, community, race and sex that are for a particular geographical level. However, demographic data is not similar to psychographic data (Hoyer & MacInnis, 2008).

Psychographic data consist of lifestyles, attitudes and values information which offer complementary insights. It is perceived that psychographic data are more important as compared to demographic data when seeking to understand the behaviors of consumers. Despite this, psychographic data is solitary insufficient because demographic data is required in various marketing issues like when determining the media mix planning and the target market.

Demographic data provide a comprehensive understanding of a particular region’s pertinent information and might assist in devising proper marketing strategies, make future projections and study the buying trends of different consumers.

Nevertheless, psychographic data is of great significance in the sense that such information may help marketers not just in understanding the buyers, but also the reasons why they prefer to purchase certain product and services as well as how such commodities fit into the consumers’ consumption habits and overall lifestyles (Hoyer & MacInnis, 2008). Hence, psychographics offer insights that can be used in crafting adverts which focus on the product benefits to the consumer.

Consumer Behavior – Demographic variables

Pancakes: The consumption of pancakes maybe attributed to the consumer’s age. For instance, young professionals may spare some time for consuming toasted breakfast unlike senior professionals who are not duty bound to wake up early in the morning to go to work. In respect to this, most marketers usually incorporate the ease in consumption of pancakes and the ample time needed to enjoy this product’s consumption (Martins et al., 2011).

Cigarettes: Heavy consumption of cigarettes can be associated with the level of the consumers’ education. It is difficult to find the most learned individuals getting easily influenced to consume cigarettes as is the case of school dropouts or illiterate individuals. The last category is prone to peer- pressure as they often lack sense of focus and direction (Martins et al., 2011). To market cigarettes, marketers do not distinguish class of individuals who should consume the product, but instill the feeling that cigarettes are more enjoyable with companions.

Movie attendance: Heavy consumption of movie is attributed to age and occupation. Young individuals are likely to give much preference to movies as opposed to the elderly. This is because they have a lot of free time and are seemingly occupying job categories that are less demanding. Thus, marketers ensure that most movies have themes that lure individuals in middle and tender ages.

Consumer Behavior – Fear appeal marketing messages

In marketing, the persuasive marketing messages dubbed as fear appeals are intended to scare consumers through re-counting appalling things which might occur to them when they shun away from doing what is recommended by the designed messages. Marketing communications that use fear appeals normally stimulate the audiences’ anxiety.

It is expected that the audience could endeavor to moderate such anxieties thru approving, enduring, ceasing or ducking a particular course of action or thought. In reality, fear appeal marketing messages are not the best way to market products to the consumers (Spence & Moinpour, 1972). This is because the anxiety arousing communication tends to make consumers to be enthused to behave in ways that could not be in the social interest of the society. For instance, fear appeal messages could generate some conflict or war fevers.

Thus, the fear appeal messages do not conform to the justified traditional economic adverts which offer the consumers info upon which they can make rationally and free well-versed choices. The messages are indeed designed to instill anxieties or fears and are hence not socially accepted as they are purposely intended to make consumers to fulfill the raised desires (Spence & Moinpour, 1972).

Alternative marketing strategies that can be used in place of the fear appeal are the subjective expected utility or value and altering scare appeal messages to incorporate approvals on how consumers might cope-up with such instilled fears. These are called positive marketing strategies.

Global Business Management – Cultural impacts on global business

In order for businesses venturing into international markets to succeed, they should ensure that their managers have the inter-cultural proficiency. Cultural diversification is one of the realities that today’s global corporations have to deal with in order to reap the benefits of increasing opportunities that the global economy is offering (Luthans & Doh, 2011). Businesses will only survive in the global market place if they take into consideration the attitude, philosophy as well as the business practices of the country in which they want to operate.

Generally, business managers who have international assignments often face difficulties in attaining better social and working relationship with people in their assigned countries. The cultural differences often become a major obstacle in attaining the business expectations at the international front (Luthans & Doh, 2011). The success of international managers will depend on how they appreciate the cultural differences and how this helps them develop relationships and accepting attitudes from equal fronts to achieve the goals of the business.

In this case, albeit installing the aquarium may be seen as unprofessional, it is still important. It reflects the cultural affiliation of the Hong Kong business environment. Failure may lead to the continuation of the business making losses. It has been noted worldwide that the main reason why international business managers fail to succeed is that they prejudice or underrate the philosophy, attitudes, business practices as well as cultures of their host countries (Luthans & Doh, 2011). The failure has nothing to do with personal managerial and technical competencies.

Global Business Management – Political Considerations

One of the most important considerations that must be taken into account before setting up any business in the foreign country is the legal and political forces that are operative in that country. The country’s politics will have effect on its regulatory policies, resource management, both fiscal and monetary policies as well as its geopolitical relationship (Hill et al., 2006).

Besides, political and legal forces determine the business regulations and attitudes that have to be adopted (Hill et al. 2006). Given the fact that China is a socialist country, businesses will be conducted according to the policies and ideologies of socialism. These are the policies, values, regulations and attitudes that the business must espouse.

Thus venturing into the Chinese market will require that close attention be paid to regulations, safety, communication and environmental concerns. Restrictions on environmental issues and regulatory policies have effects on the production costs while regulations on the internet communications undermine the business ability to effectively communicate and sell products (Hill et al. 2006). These regulatory policies and environmental concerns may also affect the flow of resources such as energy.

The political ideology affects the business operations. For instance, China is known for its tight regulations on internet communications. This will automatically undermine the communication ability of the firm. The level in which non-aggressive fiscal policies support the foreign business, inflation and devaluation of currencies are interwoven with the political ideologies (Hill et al. 2006). A better understanding of the country’s political landscape is essential for the success of business in that country.

References

Hill, C., Tim, R. & McKaig, T. (2006). Global business today. Midtown Manhattan, NY: McGraw-Hill Ryerson, Limited.

Hoyer, W. D. & MacInnis, D. J. (2008). Consumer behavior. Florence KY: Cengage Learning.

Luthans, F. & Doh, J. (2011). International management: culture, strategy, and behavior. Midtown Manhattan, NY: McGraw-Hill.

Martins, J. M., Yusuf, F. & Swanson, D. A. (2011). Consumer demographics and behaviour: Markets are people. Florence, KY: Springer Publishers.

Spence, H. E. & Moinpour, R. (1972). Fear appeals in marketing: A social perspective. Journal of Marketing, 36, 39-43.

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