Consumer Behavior in a Global Context: Sainsbury's Case Study

This report provides a comprehensive analysis of consumer behavior within a global context, examining the differences between B2B and B2C decision-making processes and illustrating various marketing techniques. It delves into the diffusion of innovation theory and product lifecycle stages, using Sainsbury's as a practical example. The report also explores Hofstede's cultural dimensions theory, offering real-world examples of how marketers leverage this framework to develop effective growth strategies. Furthermore, it discusses two models for customer segmentation, providing insights into how businesses can tailor their strategies to meet diverse consumer needs and preferences. The report aims to provide a detailed understanding of the consumer behavior and its impact on the business and marketing strategies.

Consumer behaviour in a
global context

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Difference in B2B and B2C decision making illustrating marketing techniques........................3
Diffusion of innovation theory and product lifecycle..................................................................4
Hofstede's cultural dimensions theory. Use real world examples for explaining ways in which
marketers use this theory to develop a growth strategy...............................................................6
Two model for customer segmenting..........................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Consumer behaviours have important role in the improving the business standards. The role of
consumer behaviour in marketing meeting out customer prospective properly interpretation
behaviours success of business. This defines out the behaviour of consumer purchase products
and satisfying their wants. Business tends to have customer relationship management technology
to understand business properly (Rojo, and et.al., 2020). Sainsbury is the one of largest retailer
in UK headquartered in London developing convenience store and internet-based home
delivery’s system. In this report, there will be discussion on buying decision made business and
consumer with the application of various marketing techniques. Beside this report will have
discussion of diffusion of innovation theory and product lifecycle relating to consumer
behaviours. Hofstede's cultural dimensions theory will be discussing as growth strategy along
with implementing two model for customer segmenting based on needs and wants.
MAIN BODY
Difference in B2B and B2C decision making illustrating marketing techniques.
Consumer behaviours is in the action for decision making process in buying out products
to satisfy needs and wants. Consumer behaviours is the study of action of the consumer driving
them to buy up the certain products. Study of consumer buying behaviour is most important for
marketers in order to meet out customer expectation. Every customer has different though
process and attitude toward the buying up of particular product. Sainsbury have to understand
the different perception and attitude of different customers in term of minimizing the failure of
product services. Sainsbury have to pay attention into consumer behaviour regarding sustain
degree of variation in the choice processing depending on the two key factors such as level of
involvement and degree of perceived differences between different alternative in the market.
Consumer buying behaviours strategy is facilizing the manufacturing of products regarding
consumer needs taking up decision regarding buying and recharge of decision making. Business
to business marketing is buying up the markets of term products and services from other business
as the aspect of raw material (Favaretto and et.al., 2016, ). B2B is commercial transaction where
purchasing and selling of merchandizing between two business houses s entity or supplying the
material for products and other services. On the other and B2C is business to consumers where
selling out its goods and services to the final consumers. The consumer whose product and
services redirect consumer by the end user. The key factor which are affecting the family’s
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decision making or B2C are such as cultural factors, social factor, physically motivation, belief,
attitude and change in perception. Sainsbury have to look into the various attitude of customers
depending upon needs and position of the buyer supply chain. The individual’s buyer will buy up
the products for their own uses. So Sainsbury have to look into the target market having the sale
perception an clear attitude regarding satisfying needs and wants.
On the other hand, buyer in buying and selling product to another business to inculcate
several levels of benefits such as it helps out in cost reductions, no over storage need in time of
emergencies, helps out in building long term relationship and less price fluctuation over long
period of time. So, in the business to business deals there are two main factors which is affecting
the Sainsbury decision making process such as organizational factors and individuals with
interpersonal factor buying centre participants.
Organizational factors refer to the structure, formal and informal interaction among the
various departments. This helps in identifying the suppliers dealing in one organization different
form each other (Schütte, and Ciarlante, , 2016). On the other hand, Sainsbury will also look for
factor which are exhibiting conflict based on rewards, demotion, expertise, special relationship
with other participants, etc. Other characteristics which business marketers should study include
personal goals, professional experience, life-style, attitudes and opinions, personality traits, etc.
For example, there are various business transaction held in Sainsbury with delivering various
product are services to its customer.
Diffusion of innovation theory and product lifecycle.
Diffusion of innovation theory is the hypothesis which is outlining the various
technological advancement thought out he society ad customer base for the introduction to wider
adoption. This theory is explaining about how new ideas and practice are adopted with timeline
potentiality spreading out the long periods. The theory has been developed by E.M. Rogers, a
communication theorist at the University of New Mexico, in 1962. this is helping out to have
passage of idea through adoption by different actors. So, the main people in the diffusion of
innovation theory are such as
Innovators
These are one who are open to risk along with one who is first to try up the new ideas.
Early Adopters
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The individual who are more interested in trying up new technologies along with establishing is
utility in society in perfect manner.
Early Majority
These are he part of general population paves out the use of innovation withing mainstream of
society
Late Majority
There are part of general population following up the early majority adopter as innovation in the
part of daily life.
Laggards.
Laggards are laying within general populations adopting with innovative products in setting up
new ideas. There are one who are risk adverse. it makes impossible for them to conduct in daily
life but du to force beset doing it.
For example, face book has started off its product range targeting the students and professionals
in the education institutions (do Paco Shiel, and Alves, 2019). The student is apprising to
mainstream within society and across borders. On the other hand, Sainsbury is using diffusion of
innovation theory is accomplishing CSR activities in designing up public health programmes.
Sainsbury is among the early adopters of new technology spreading out awareness in new
technology but such programs are not tends to be successful due to cultural limitation.
Product life cycles is the process starting from the introduction of product into market until
there is decline or removal from market have been achieved. These cycles have inclusion of four
stages such as introduction, growth, maturity and decline.
Introduction
The introduction stage when product is launched into market offering high stakes times.
this stage have promotion an advertising is at higher rates which have infusion of launch in
presentation heightening of new features. This stage has higher expenditure without having an
idea regarding product success.
Growth
This stage when company have surpassed the previous level getting up the product
acceptance society. As the result there is growth is business sales firm is trying to draw attention
and major emphasis on pull revenue. The product in the growth stage is typically tweaked to
improve functions and features.
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Maturity stage
The time when the product traces up stage of maturity signally very saturation of market.
Pricing at this stage can tend to get competitive, signalling margin shrinking as prices begin
falling due to the weight of outside pressures like competition or lower demand (Horner, and
Swarbrooke, 2016). This have indication of highly statured markets creating less successful
competitors are phase out of competitions creating shake out point.
Decline.
All the company is generally taking up different attempt to keep up products alive at the
maturity stage along it is possible. At this stage product sale immensely declines and consumer
behaviour have been changed due to change in preference. At this stage tends to lose it market
share an condition make out the sale to deorbited. Only loyal customer stayed with company and
the price have been reduced.
Product lifecycles is methods used by Sainsbury for valuating business activity for every
product. This will be helping out the company to undented how the ah product is performing and
at what stage the product in residing into cycle. As per the analysis through various researcher,
Sainsbury taste the differences in different range currently meeting out mature stage.
Hofstede's cultural dimensions theory. Use real world examples for explaining ways in which
marketers use this theory to develop a growth strategy
Hofstede's cultural dimensions theory is a kind of framework which is used by organizations for
understanding difference in culture across nations in order to understand ways in which business
can be done in different cultures (Rojo and et.al., 2020). In other words, this framework is used
by firm for understand culture of different nations and ways in which this cultural difference can
impact business (Sethna. and Blythe2016. ). It helps in understand cultural dimension and ways
in which it changes. Hofstede's cultural dimensions theory has identified six different cultural
categories, that are:
Power Distance Index: it is the index till which power and inequality is tolerated. High power
distance index means that power differences and inequality is accepted, whereas low power
distance index means organization has flat for decentralized structure power difference and
inequality is not tolerated.
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Collectivism vs. Individualism: this factor shows degree till which societies are integrated into
groups. Collectivism means greater importance is placed goals and wellbeing of people, whereas
Individualism indicates that greater importance is placed to achieve personal goals.
Uncertainty Avoidance index: It focuses upon extent till which ambiguity and uncertainty is
tolerated. High Uncertainty index means lower tolerance to uncertainty and ambiguity (Favaretto
and et.al., 2016). Whereas lower Uncertainty index means high tolerance of ambiguity and
uncertainty.
Femininity vs. Masculinity: this dimension focuses upon preference of society for achievement,
attitude towards sexual equality etc. Femininity means fluid gender role and is concerned with
quality of life. Whereas, Masculinity focuses upon distinct gender roles and focuses upon
material achievement.
Short-term vs. Long-Term Orientation: This dimension focuses upon ways in which society
views time horizon. Short-term focuses upon near future and short- term success, whereas Long-
Term focuses upon achievement of long- term success and long- term growth (Favaretto and
et.al., 2016).
Restraint vs. Indulgence: this dimension focuses upon extent or tendency of society to fulfil its
desires. And ways in which society control their impulses and desires. Restraint indicates that
society supress gratification of needs and regulates though social norms. Whereas, Indulgence
says that society allows free gratification to enjoy life and have fun.
Marketers uses Hofstede's cultural dimension theory’s values for understanding cultural values
of a country. This helps them in development of marketing strategies for their products and
services. It helps in development of growth strategy. For example: there was a huge cultural
difference between culture of UK and Egypt. But when Sainsbury wanted to entry into Egyptian
market, they did not understand cultural difference between both the countries and as a result
they failed to enter into market of Egypt successfully (Nguyen, de Leeuw, and Dullaert, 2018.
Lutz, and Newlands 2018.). Marketers of Sainsbury could have used Hofstede's cultural
dimensions theory for understanding difference between culture of both the countries and on the
basis of this, they could have developed their entering strategy for growth and expansion of
Sainsbury in Egypt.
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Two model for customer segmenting
Customer segmentation basically dealing with group excursing into different subgroup having
clear dependency on the different needs. This is regarding the making up of different section
based in specific behaviours making easy target for company strategy. So there are different
model developed by the various researcher regarding making up proper segmentation of
customer as per needs and wants.
Demographic oriented
In this model there is major focus on the customer demographic. This means that
company should be on focussing of customer relationship management or google analytics. The
company need to supplements the basic information with usage of tools which are running
through the demographic survey (Funk, , Sütterlin, and Siegrist, , 2020). Nowadays as company
are targeting the niche market segments asking customer regarding their marital status, income,
ethnicity, or whether there are children in the household. this type of segmentation have the
countess ways in which customer ae segments into the parents and singles. Sainsbury is looking
at customers who are willing up to pay for more quality versus to one who have value of good
bargains etc. Sainsbury is looking to the customer segmenting into the nice market as looking at
the premium customer who are ready to pay up the price for quality rather than looking for good
bargains.
The next model is Psychographic segmentation as some companies are segmenting
customers based on differ personality traits and attitudes representing build up accurate user
persona matching up specific business lifestyle. This is helping to create an effective
psychographic-based customer segmentation model (Risius, Hamm, and Janssen, 2019).
Sainsbury have need to focus on survey asking out customer with evaluating the statements on
scale with highly agree to highly disagree. this model will help in adjusting brand stone with
voices and offering per user segments. In this model customer stance regarding veganism, the
role pf physical activity and potential preferences.
There is important aspect which is revolving around the three metrics such as recency,
Frequency and monetary. This model will be helping at the firm in identifying high value
customers building out customer profile with focusing marketing an sales efforts on segments
bringing out recurring revenue.
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So there is no one size fits all the customer segmentation model across the various
industries. regardless model the Sainsbury is fitting in busines strategies, there is
recommendation regarding the usage of data points as possible to looking into audience (Hölker,
von Meyer-Höfer. and Spiller, 2019). On the other hand, there is need to have proper analysis of
sales and behavioural data diligently. So, it can be stated as nothing is ever set in stone. so
Sainsbury must be inquisitor e and run with customer survey on ongoing basis.
CONCLUSION
From the above file, it can b concluded as Consumer behaviours defines out the behaviour of
consumer purchase products and satisfying their wants. Consumer behaviours is in the action for
decision making process in buying out products to satisfy needs and wants. Sainsbury have to
understand the different perception and attitude of different customers in term of minimizing the
failure of product services. The consumer whose product and services redirect consumer by the
end user. Sainsbury decision making process such as organizational factors and individuals with
interpersonal factor buying centre participants (Rosa-Salas, 2019). Sainsbury is using diffusion
of innovation theory is accomplishing CSR activities in designing up public health programmes.
The product in the growth stage is typically tweaked to improve functions and features. Pricing
at this stage can tend to get competitive, signalling margin shrinking as prices begin falling due
to the weight of outside pressures like competition or lower demand. Marketers of Sainsbury
could have used Hofstede's cultural dimensions theory for understanding difference between
culture of both the countries and on the basis of this, they could have developed their entering
strategy for growth and expansion of Sainsbury in Egypt.
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