Session 7
Marketing Management
IMT DUBAI
Facts about GCC Consumers
38.5 million people
Saudi Arabia, biggest GCC nation, accounted for around 65.5 per cent
(25.2 million)
The UAE is second most populated GCC state, accounting for around
12.5 per cent (4.87 million). The population in Kuwait at 2.91 million, 2.73
million in Oman, 868,000 in Qatar and 765,000 in Bahrain
The region's population is mostly young, affluent, fashion-conscious and
rapidly growing, an irresistible combination for retailers.
With higher discretionary incomes, increased use of credit cards and a
thirst for what is new, the region has become a hotbed for brands,
looking to develop the next generation of shoppers.
Kuwait is by far the most fashion conscious of the Arabian Gulf countries,
with the UAE a close second.
The region's malls are the best place for the younger generations to get
together. With little or no use of social clubs, or youth societies, shopping
malls have become defacto clubs, where, on most days of the week,
youngsters from a range of nationalities gather, looking for something to
do.
The tradition of travelling to Europe to buy luxury items, such as
watches, designer clothing, jewellery, has long since gone, as the items
are available here.
Facts about UAE Consumers
UAE has one of the most diverse populations in the Middle East, consisting of the
native Emarati (19%), other Arab and Iranian (23%), South Asian (50%), and
remaining 8% being the Westerners and East Asians.
According to 2006 population estimates, there were approximately 1.2 million
Indians and 300,000 Pakistani residing in the UAE, making them the largest
expatriate community in the country.
One of the interesting features of UAE population is that almost 70 % of the
population is estimated to be male and 30% female.
The population or age structure appeared to be dominated by the young to
medium age group with 25.3% coming in (0-14 years) and 71.1% falling in (15-64
years) age group.
Abu Dhabi is the largest and most populous emirate in the UAE with a population
of 1.4 million, followed by Dubai (1.2 million), Sharjah (570,000), Ajman
(200,000), Ras Al Khaimah (190,000) and Umm Al Quwain (55,000) as per 2005
estimates.
Emirati Consumer Behavior
Fashion and communication are two passionate things for Emiratis
(Abu Dhabi DED survey)
Advanced mobile phones and Internet are the two favourites
Sixty four per cent of the Emiratis in Abu Dhabi change their mobile
phones in every three months
Average spending on mobile phones by a UAE national is Dh3,521 for
every three months
The average expenditure on land line phones and Internet reached
Dh1,209 during the same three months.
The survey also showed that 63 per cent of them purchased their cars
through bank finance.
The average household expenditure on education amounted to
Dh33,198 per year.
Consumer
Consumer Buying
Buying Behavior
Behavior
Consumer Buying Behavior refers to the buying
behavior of final consumers (individuals &
households) who buy goods and services for
personal consumption.
Study consumer behavior to answer:
How do consumers respond to marketing efforts the
company might use?
Model
Model of
of Consumer
Consumer Behavior
Behavior
Product
Price
Marketing
Marketing and
and
Other
Other Stimuli
Stimuli
Economic
Technological
Place
Political
Promotion
Cultural
Buyers
Decision
Process
Product Choice
Brand Choice
Dealer Choice
Buyers
Buyers Black
Black Box
Box
Buyers
Buyers Response
Response
Characteristics
Affecting
Consumer
Behavior
Purchase
Timing
Purchase
Amount
Cultural Factors
Fundamental determinant of a
Persons wants and behavior
Culture
Subculture
Social Class
Buyer
Buyer
More specific identification and
Socialization for their members
Social stratification
Caste, income, wealth,
education
Social Factors
Reference group
Group on which an individuals attitude and behavior is
influenced (directly or indirectly)
Membership groups direct influence
Primary
Family, friends, neighbors (continuous & informal interaction)
Secondary
Religion and professional membership (formal & less continuous)
Aspirational
Indirect influence (not belonging to the group but hopes to join)
Dissociative
Whose values or behaviors an individual rejects
Opinion leader
persons offer informal advice on product and brand choice
Personal Factors
Family life cycle
Bachelor
Young, single, not living at home (basic home equipments, furniture, clothing)
Newly married couples
young, no children & buy car, furniture, appliances, vacation
Full nest I
Youngest child under six, home purchasing at peak baby food, cough medicines,
vitamins, dolls
Full nest II
youngest child six or over buy larger size packages bicycles, school
notebooks, uniforms
Full nest III
older married couple with dependent children, some children get jobs dental
services, magazines
Empty nest I
Older married couples, no children living with them, head of the household at job
make gifts and contributions
Empty nest II
Older married couples, no children living with them, head of the household retired
medical appliances, medical care products
Solitary survivor
Personality
Set of distinguishing psychological traits
Eg. self confidence, dominance, autonomy
Brand personality
Human traits attributed to a brand
Sincerity (Raymond), excitement (Coke),
competence (Philips, sony), sophistication
(Mercedes), ruggedness (Levis)
Four Types of Buying Behavior
High
Involvement
Low
Involvement
Significant
differences
between
brands
Complex
Buying
Behavior
VarietySeeking
Behavior
Few
differences
between
brands
DissonanceReducing Buying
Behavior
Habitual
Buying
Behavior
http://www.youtube.com
/watch?v=CHjFpJKxNc4
Consumer Buying
Process
Need
recognition
Information
search
Evaluation of
alternatives
Purchase
decision
Postpurchase
behavior
The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 1.
1. Need
Need Recognition
Recognition
Need
Need Recognition
Recognition
Difference
Differencebetween
betweenan
anactual
actualstate
stateand
andaadesired
desiredstate
state
Internal
Internal Stimuli
Stimuli
External
External Stimuli
Stimuli
Hunger
Hunger
TV
TVadvertising
advertising
Thirst
Thirst
Magazine
Magazinead
ad
AApersons
personsnormal
normal
needs
needs
Radio
Radioslogan
slogan
Stimuli
Stimuliin
inthe
the
environment
environment
The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 2.
2. Information
Information Search
Search
Personal
Personal Sources
Sources
Family, friends, neighbors
Most influential source of
information
Commercial
Commercial Sources
Sources
Advertising, salespeople
Receives most information
from these sources
Public
Public Sources
Sources
Experiential
Experiential Sources
Sources
Mass Media
Handling the product
Examining the product
Using the product
The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 3.
3. Evaluation
Evaluation of
of Alternatives
Alternatives
Product
ProductAttributes
Attributes
Evaluation
Evaluationof
ofQuality,
Quality,Price,
Price,&&Features
Features
Degree
Degreeof
ofImportance
Importance
Which
Whichattributes
attributesmatter
mattermost
mostto
tome?
me?
Brand
BrandBeliefs
Beliefs
What
Whatdo
doIIbelieve
believeabout
abouteach
eachavailable
availablebrand?
brand?
Evaluation
EvaluationProcedures
Procedures
Choosing
Choosingaaproduct
product(and
(andbrand)
brand)based
basedon
onone
one
or
ormore
moreattributes.
attributes.
Total
TotalProduct
ProductSatisfaction
Satisfaction
Based
Basedon
onwhat
whatIm
Imlooking
lookingfor,
for,how
howsatisfied
satisfied
would
wouldIIbe
bewith
witheach
eachproduct?
product?
Decision Making Sets
Total
Set
Awareness
Set
Consideration
Set
Choice
Set
Decision
Steps Between Evaluation of Alternatives
and a Purchase Decision
Evaluation
of
alternatives
Attitude
of others
Purchase
intention
Purchase
decision
Unanticipated
situational
factors
Model
Model of
of Consumer
Consumer Behavior
Behavior
Product
Price
Marketing
Marketing and
and
Other
Other Stimuli
Stimuli
Economic
Technological
Place
Political
Promotion
Cultural
Buyers
Decision
Process
Product Choice
Brand Choice
Dealer Choice
Buyers
Buyers Black
Black Box
Box
Buyers
Buyers Response
Response
Characteristics
Affecting
Consumer
Behavior
Purchase
Timing
Purchase
Amount
California Milk Processor boards Got Milk Campaign
On new up coming popular singer
Himesh Reshammiya - June '06
Bollywood film Fanaa release help up in
Gujarat due to agitation over star's comments
on Narmada Dam Project - June '06
On proposed implementation of quota
reservation in institutes of higher education
- June '06
On the fracas between Bollywood item girl Rakhi Sawan
and Punjabi pop singer Mika Singh on his
birthday party - June '06
