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Culture , Tradition & Customer Behavior

Culture , Tradition & Customer Behavior. Menekşe Uçaroğlu Istanbul , May 25th 2011 III. Istanbul International Insurance Conference. Content. The Role of Culture in Customer Behavior The Role of Tradition in Customer Behavior

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Culture , Tradition & Customer Behavior

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  1. Culture, Tradition & CustomerBehavior Menekşe Uçaroğlu Istanbul, May 25th 2011 III. Istanbul International Insurance Conference

  2. Content • The Role of Culture in Customer Behavior • The Role of Tradition in Customer Behavior • Regional Characteristics & The Role of Culture inCustomer Behavior • 5 Stages of Buying Process • Turkish Market • Insurance Buying Process in Turkey - Industrialised versus Emerging Markets

  3. The Role of Culture in Customer Behavior • The culture a person is born into goes a long way toward • determining that individual's behavior patterns, beliefs and • values • Culture is defined as a shared set of practices or beliefs among • a group of people in a particular place and time • Marketers, analysts and customers themselves use an • awareness of culture to learn how and why customers in a • particular culture behave the way they do.

  4. The Role of Culture in Customer Behavior • Culture is an important factor in determining customer behavior. • Besides purchasing decisions, culture also affects how customers use the products they buy and how they dispose of them. • Culture exerts different levels of influence on members. Age, language, ethnicity, gender and education level all affect which customer behaviors a member of a given culture demonstrates

  5. The Role of Tradition in Customer Behavior • Traditions are central to the ways that culture influences customer behavior. • Traditional patterns change over time as a culture evolves, but marketers who study and understand such patterns have an advantage • Young people may not adopt cultural practices that are common for adults, and may develop practices unique to their own subculture, this can involve everything from new buying trends to new product use trends

  6. Regional Characteristics & The Role of Culture in Customer Behavior • Culture explains why some products sell well in certain regions or among specific groups, but not as well elsewhere. • Marketers spend a great deal of time and money studying the effects of culture on consumer behavior. This is especially true for multinational companies that have customers from a diverse series of cultural backgrounds. • A strong marketing strategy in one culture might be unappealing, or even offensive, to members of another culture. • Religionmust be takenunderconsiderationbecauseweareliving in a diverse region, both in terms of business culture and religion. This will affect the way that wehandle our business.

  7. Problem Recognition (awareness of need)--difference between the desired state and the actual condition. Can be stimulated by the marketer through product information • Information search • Evaluation of Alternatives--need to establish criteria for evaluation, features the buyer wants or does not want • Purchase decision • Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction Cognitive Dissonance, have you made the right decision 5 Stages of BuyingProcess * * Kotler

  8. Turkey is an example of Emerging Market • Turkey is thelargest market in theregion of theMiddle East & Central Asia, (Swiss Re, sigma No:2-2010) • InsuranceDensity : Premiumspercapita in Usd in 2009 is 106 Usd, • 90 UsdNon-life , 16 Usd life (Swiss Re, sigma No:2-2010) • InsurancePenetration : Premium as of % of GDP in 2009 is 1,3 % • 1,1 % Non-life , 0,2 Lİfe (Swiss Re, sigma No:2-2010) Turkish Market

  9. Turkish Market has MediterraneanandMiddleEasternCharacteristics • withwellestablishedcultural & traditionalhabits • Turkish Market is dominatedbyagents • Almosteachfamily has a favoriteagent , emotionalclients • Youngpeoplearemoreopento buy from internet, but stronginfluencefromparents Turkish Market

  10. Problem Recognition awareness of needvsneedcreation • Information search internet, friends & relatives, • Evaluation of Alternatives online pricingtools, agents, pricecutting, • Purchase decisionconcernsaboutclaimscollection, • anonymousclientvsagent’sclient • collectionoptions • wehatedeductible • personaltrust • Post-Purchase Evaluation noclaim! noproblem ! • realevaluation is done in case of a claim • claim is theproduct • unmetexpectations • lack of training InsuranceBuyingProcess in TurkeyIndustrialisedversusEmergingMarkets

  11. Social psychologists say : ‘we need to analyse everything within its own context’ This is a key element in understanding cultural and traditional characteristics of a country . Which is also a paramount necessity for reaching succesful results. Conclusion

  12. Culture, Tradition & CustomerBehavior Menekşe Uçaroğlu Istanbul, May 25th 2011 III. Istanbul International Insurance Conference

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