RSM353H1 Study Guide - Midterm Guide: Rohm, Emerging Markets, Overprotected

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Published on 27 Jan 2013
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Consumer Behavior Articles
The Science of Shopping by Paco Underhill
Using science to get shoppers
ex. US walk to right so airports have gift shops on right side and food on left
table use for „petting clothes‟
when females brushed at bum, will leave store
when walk faster, peripheral vision decrease
speed up when pass bank
zone of decompression = area & time it takes to adjust to the light & refocus when entering a store (in this area, should
not put promotion stuff b/c no one will see it)
downshift, time it takes to slow down
Market Maven = person gives advice, lots info, watch tv, look at ads, shop with/for you
The Age of Capitalism by Roger Martin
shareholder to better when firms put customer first, should be customer driven capitalism
o 1932 → firms should have professional management
o 1976 → corporation should maximize shareholder wealth
idea that eventually management professionals were best as not volatile and more dependable
agency issue arises as professional managers enhanced own financial wellbeing not shareholder
dividends were based on future not current management know price will go up and down depending on future prospect
therefore, they invest in short term strategies to make quick money
executives realize can‟t achieve goals or sustain long term ones, but can increase everything else shareholder equity if
„expectations‟ get out of line
issues about long term benefits/gains
Tailoring Your Strategy to Fit the Culture By Marieke De Mooij
Company‟s strategy is based on culture
3 aspects of global strategy:
1. Mission, Vision & Corporate Identity
o Give direction to those involved directly/indirectly with company
o Mission statements differ from cultures
o Ex. Western tend to emphasize: identity, performance, leadership, greatness, growth (b/c high individualism
& masculinity) VS. Asian tend to emphasize: social, harmony, degree of power distance
o Company‟s view of itself reflects value of leaders
o Most successful for global strategy most include values from other than own or else stakeholder have
difficulty connecting
o Corporate identity create; logo, name, marketing, communication, language, lettering, association
o Corporate identity = an org‟s identity in its sense of self
o Sticking to 1 consistent identity will not work b/c translation and culture
2. Brand Strategies
o P&G/Uniliver don‟t use own brand name to sell b/c western culture that product need to differentiate position
self with unique and clear personality
o Individualistic culture sales based on: argumentation & persuasive
o Collectivistic cultures sales process begins with building trust between seller & buyer
o Must consider how cultures categorize other people and objects
o Brand positioning across cultures starts with positioning statement that include „internal aspects‟ (identity,
values, personality) then „external aspects‟ (image & usage)
o Western style to put personality into product, doesn‟t work globally (ex. Levis ad about jeans+running)
o Consumer will attribution identity to brand that fit own values
o Need to figure out meaningfulness of brand in different cultures and add to core values or brand
o Need to complete external research (ex. Korean + irons)
o People behaviour quite stable past or current behaviour can be used to predict future
3. Communication
o Use to believe in universal emotions enough for ads
o Most effective ads reflect culture to consumer trying to reach
o Collectivistic accustom to: symbols, signs, indirect communication
o Individualistic accustom to: verbal, explanation, persuasive
o Market segments need to be define by cultures and create a strategy that fits
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