Analysis of Cross Cultural Consumer Behavior and marketing Term Paper

Analysis of Cross Cultural Consumer Behavior and marketing communication - Term Paper Example There are different sections of consumer in a society formed according to the basis of monthly household income for example lower income class, higher income class etc. (Earl and Kemp, 2002) The purchasing behavior of a consumer partly depends on Consumer Psychology. A purchase decision confronts the consumer with a host of potential changes. Most important is the problem structuring that occurs prior to taking any decision: becoming aware of the need or availability of a new product or service, collecting information of alternatives, and thinking about the future circumstances relevant to the purchase decision & also considering the possible outcomes contingent to the decision. Now these types of action vary within the different sections of consumers. In this context the marketing of the product or the branding has a quite influence on the consumer purchasing behavior. (Earl and Kemp, 2002; Zaichkowsky, 2006). During the current phase of globalization, branding has a lot of influenc e on middle class consumers also. To buy a product, consumers first think about the quality of the product. If two different brands of a kind of product with more or less same appearance, & same price are there in the market, brand name & its branding effect matters a lot. Consumers often judge on the basis of various informational cues that they associate with the product. Thus, proper marketing of a product is extremely vital in a market economy. Hence, marketing communications play an important role in creating demand for any market in any market. The main key to success for any firm is the application of appropriate business strategy. To ensure high customer base along with substantial growth in business, a firm needs to devise several strategies regarding the production process, marketing, distribution etc. and efficiently implement them. Among all these strategies, proper planning regarding marketing of the products is very crucial for creating demand in the markets. Unless an appropriate marketing technique is adopted by a firm, it would not be able to attract customers towards its products and business would automatically fail. Now marketing is quite a broad area which embraces various aspects like price, place, promotion and product. These four aspects form a marketing mix of a firm. As far as the issue of marketing communications is concerned, it actually refers to the area of ‘promotion’ in a marketing mix. The term ‘communication’ refers to exchange of information. An interesting feature of communication is that although it simply implies flow of information among people, it does not mean one-way exchange of information. A successful communication takes place when the receiver of a message actually receives the message and provides proper response. Advertising is a very useful tool for communicating with potential customers. (Egan, 2007) Advertising strategies, however, vary across culture. Cultural differences are very pr ominent across the nations. Thus, one particular advertising or promotional formula will not be appropriate for every culture. There are various cultural dimensions that are required to take into account at the time of designing any advertisement. For example, the cultural aspects of western countries are quite different from the cultural values of the eastern nations. Thus, there exist significant differences in

Market equilibrium Essay Example | Topics and Well Written Essays - 500 words

Market equilibrium - Essay Example Hence, price and quantity supplied are positively related (McConell, Brue, & Flynn, 2009). Economic equilibrium would be achieved when demand and supply of a commodity in discussion meets. This point will be called the optimum level of functioning point in an economy, as every stakeholder is able to achieve their objective of buying and selling. Equilibrium price is where quantity demanded and supplied meets. This is the price and buyers and producers buy and sell exactly the same amount of good (Sloman 1999). At any point below or above the equilibrium, it will either create excess demand in case of low price, or excess supply in case of higher price. The gap in supply and demand will exist in the short term. However, sellers and buyers would adjust their sell and purchase habit and equilibrium would eventually be achieved. Consider the example of an automobile industry, where demand and supply figures are shown in the table below. Price/ car(in thousands) Market Demand(in thousands ) Market Supply(in thousands) $5 700 400 $10 500 500 $15 350 600 If the price initially started at $5/car, demand would exceed supply by 300 units. At this point, suppliers would not be willing to offer more cars which will result in consumers being unable to obtain all they wanted and would thus be willing to pay a higher for it.