Consumer Behavior and Distribution Strategies

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Questions and Answers

What distribution strategy did Unicharm adopt to increase its market share in Indonesia?

  • Developing own vending machines
  • Building relationships with local retailers (correct)
  • Creating large-scale distribution networks
  • Implementing online sales platforms

Consumers in Eastern cultures value immediate consumption more than those in Western cultures.

False (B)

What was the market share percentage increase for Unicharm's diapers after adopting their distribution strategy?

7%

Which country reported the highest percentage of omnichannel consumers conducting product searches on multiple channels?

<p>Brazil (C)</p> Signup and view all the answers

Consumers from French culture expect a resolution within _____ minutes when waiting for customer service.

<p>30</p> Signup and view all the answers

The waterfall strategy involves a simultaneous introduction of a new product in all markets.

<p>False (B)</p> Signup and view all the answers

Match the following consumer behavior scenarios with their respective countries:

<p>Egypt = Familiar with small-sized retailers Thailand = Accustomed to street food carts Morocco = Conduct shopping at local bazaars Japan = High number of vending machines per capita</p> Signup and view all the answers

What aspect of consumer behavior greatly impacts satisfaction with product delivery times?

<p>Cultural perception of time (A)</p> Signup and view all the answers

What is the primary factor influencing the choice between the waterfall and sprinkler strategies?

<p>consumer behavior</p> Signup and view all the answers

Coca-Cola increased sales in Costa Rica by implementing traditional distribution channels.

<p>False (B)</p> Signup and view all the answers

In recent years, strong demand for Hollywood movies in ______ has led to some blockbusters opening there before the US.

<p>China</p> Signup and view all the answers

Match the following countries with the reported percentage of omnichannel consumers:

<p>Brazil = 86% Germany = 67% France = 62% USA = 51%</p> Signup and view all the answers

In terms of patience for customer service response, which culture is identified as being the most patient?

<p>Japanese</p> Signup and view all the answers

What trait is essential in omnichannel consumers as indicated by research?

<p>Need for control (D)</p> Signup and view all the answers

Consumer behavior has no impact on distribution strategy in omnichannel purchasing.

<p>False (B)</p> Signup and view all the answers

What is one commonality in the sales techniques used with omnichannel consumers across different countries?

<p>They vary based on local consumer behavior.</p> Signup and view all the answers

Flashcards

Adapting Distribution to Consumer Behavior

Adapting distribution strategies to the specific purchasing habits and preferences of a society, such as using traditional retailers in emerging markets or vending machines in Japan.

Time Perception in Consumer Behavior

The way consumers in different cultures perceive and value time, impacting their expectations for product delivery and customer service.

Emerging Market Consumer Behavior

In emerging economies, consumers often rely on small retailers, street food vendors, and local marketplaces for their shopping needs.

Challenges in Entering Emerging Markets

Foreign companies may face challenges entering new markets due to unfamiliar distribution infrastructure and consumer preferences.

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Leveraging Existing Distribution Networks

Companies like Unicharm have successfully leveraged existing distribution networks in emerging markets by partnering with local retailers to reach consumers.

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Creating New Distribution Channels

Companies can create unique distribution channels based on consumer behavior, such as Coca-Cola's use of high-traffic locations for impulse purchases.

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Western vs. Eastern Time Perception

Western consumers often demonstrate less patience and value immediate consumption compared to consumers in Eastern cultures.

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Customer Service Patience Across Cultures

The level of patience consumers exhibit when waiting for customer service can vary significantly across cultures, with French consumers being the least patient and Japanese consumers being the most patient.

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Cultural Influence on Consumer Behavior

Cultural theory suggests that consumer behavior is linked to cultural values, such as long-term and short-term orientations, time perspectives, and self-oriented values.

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Omnichannel Purchasing

Omnichannel purchasing is when customers interact with a brand through multiple channels, like online, in-store, and mobile apps. This strategy recognizes that consumers use various channels in their shopping journeys.

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Omnichannel Consumer Behavior Variations

The study of how customers in different regions behave provides insights into the effectiveness of marketing tactics. For example, studies show that Russian consumers prioritize control in their online shopping experiences compared to Singaporean consumers.

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Waterfall Strategy

The Waterfall strategy releases a new product in one market first, followed by other markets sequentially. This approach uses the first market as a test case and allows for adjustments.

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Sprinkler Strategy

The Sprinkler strategy launches a new product simultaneously in all target markets, aiming for rapid global reach and maximized impact.

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Consumer Demand's Role in Launch Strategy

The selection of a launch strategy (Waterfall or Sprinkler) depends on several factors, but consumer demand is a significant influence. Understanding how consumers in different regions respond to a product is essential for successful global launches.

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Positive Adoption Signals

Positive adoption signals, or positive word-of-mouth, refer to the initial reception of a product in a market. This can be influenced by reviews, media coverage, and consumer discussions, shaping consumer behavior.

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Cascade Strategy and Positive Adoption Signals

The cascade strategy often relies on the first market to generate positive adoption signals that influence other markets. This is based on the idea that early adopters can influence later adopters.

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Study Notes

Consumer Behavior and Distribution Strategy

  • Varying Distribution Strategies: Marketing distribution strategies differ based on consumer behavior within a specific society.
  • Emerging Economies: Consumers in emerging economies often prefer small retailers, street food, and local bazaars (e.g., Egypt, Indonesia, Thailand, Morocco). This presents challenges for foreign companies entering these markets.
  • Unicharm's Indonesian Strategy: Unicharm, a Japanese company, successfully increased diaper market share (from 23% to 30%) in Indonesia by building close relationships with local "mom-and-pop" retailers.
  • Contrast with Developed Markets: Japan has a high density of vending machines, allowing consumers to purchase even basic items like eggs via automated systems. Coca-Cola utilized non-traditional channels (pedestrian areas) to stimulate impulse consumption in Costa Rica.
  • Time Perception and Satisfaction: Consumers' perception of time affects their satisfaction with product delivery and customer service. Western cultures tend to be less patient and value immediate consumption more than Eastern cultures.
  • Cultural Differences in Patience: French consumers are the least patient when waiting for customer service responses (73% expect a resolution within 30 minutes), while Japanese are the most patient (50% expect resolution within 30 minutes).
  • Omnichannel Consumption: Brazilians are the most active omnichannel consumers, while consumers in other countries (Germany, France, US) also use multiple channels to purchase goods. Sales techniques for omnichannel customers vary by location–for example, the demand for more control is higher in Russia than in Singapore.
  • Product Launch Strategies: Companies use either a waterfall or sprinkler strategy to launch new products internationally.
  • Waterfall Strategy: This is a sequential product launch in different markets, typically starting in a larger market like the US.
  • Sprinkler Strategy: This method involves simultaneous product introductions across all target markets.
  • Consumer Demand & Market Timing: Consumer demand strongly influences product launch timing, which can challenge traditional waterfall strategies. Blockbuster movies have adapted their launch plans to accommodate strong market demand in China.

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