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Feb
05

The Impact of Customer Responses and Buying Decisions in Global Arena

Illustrating a case, think about a situation where the customers at any place on the globe want to buy something, let it be a Gillette Shaving kit, McDonald’s Burger, IKEA Furniture, services of Uber Cab, American Express Credit Card or anything that they need. Customers yet are not sure of how to progress in their search to get the best value and deal from all the offerings available in the market. Well, past experiences of buying a new product may be an option that can act as an initial set of information for such decisions.

But at the same time, customers are getting some spread information and contradictory arguments. For instance, they hear from some of the online and offline selling platforms ‘we sell at the best price’ the other may say ‘we provide products at your doorstep’ one other give importance to ‘Best and Multi-facilitated Experience’. But who exactly is providing the best value is a tough decision for customers. However, customers are facing these decisions on a routine basis. The job does not end here; their interaction with the middleman and third-party collaborators also going deep and vital.

The Web of Multi-Brands

A customer who is buying Fastrack (Tata) watch at Amazon is using the card of HSBC bank, the payment gateway of Visa, the discount code given by Vodafone, and finally, delivery of the product is given by DHL. In process of buying a watch, a customer is coming in touch with multiple companies and, buying decisions get influenced at different points. Be it online or, offline purchase the case is quite similar. Multi-Brand outlets such as Shoppersstop and Big Bazar, a customer experiences almost the same process.

The reason is simple; today’s arena is largely characterized by rapid internationalization of business and accelerating the globalization. Competition on a global scale has thus begun to emerge and affects all types of products as well as customers. In particular, the recent years become increasingly committed to operating in global markets. Buying patterns are a multifaceted set of supply and demand forces including, macro, micro and product-related aspects. Customers simultaneously aim at achieving the lower prices and higher benefits. Therefore, we can assume that customers across the globe have benefited substantially from the global marketing activities. But the global marketplace has always been vibrant and complex in terms of the changes it brings.

Customer Response Matters

Customer response seems a complex puzzle for the organizations to solve. One school believes that response to marketing activities of a firm reflects in customer response to product/services. Another school believes, the process of managing customer response is playing with the human mindset. However, companies keep on investing their efforts on customer evaluations, preferences and behaviour upon any brand along with marketing mix activities. Customer response is generally referred to the processing of perception from comparative evaluations, preferences and experience.

At the same time, there is a strong influence on market characteristics. The customer is the king of the market. Customers boost the brand and customers spoil the brand. Therefore, customer and supplier relationship; global branding; production and supply chain decisions; customer loyalty; country of origin; nostalgic effects; word-of-mouth, and also post purchase responses are the points where companies need to bounce their mind.

Internet and digital sources have made communication more convenient for both the marketers as well as consumers. This is shaping and giving a new outlook to the consumer response. Advanced technology provides a fundamentally different environment to sellers for managing the customer response and motivates the customers to buy more. Companies will have more freedom to locate a service or product where it can be best in demand, rather than near the nearby market.

Digital sources have turned up as revolutionary tools on recreating the environmental site of business by providing many versatile ways that firms can employ to cultivate and maintain customer relationships, and empowering businesses to interact globally with customers in ways that were impossible before. This mega-trend is a new business norm not only in the developed world but also in emerging markets. For example, Facebook enables many small and medium companies to promote and communicate their products globally, while Alibaba also facilitates the early internationalization of numerous Chinese exporters.

The rapid world of digitalization also offers many new ways to customers in applying numerous filters, comparisons, evaluations while making a purchase decision. However, this global arena brings challenges to business organizations in designing and implementation of their offerings. For example, firms nowadays have to maintain multiple touch points on various digital & social media platforms around the world. Furthermore, fierce and dysfunctional competition (such as counterfeit products on various digital platforms) makes effective promotion and product introduction more challenging.

In the nutshell

In today’s arena buying patterns are boundary free; we wake up in the morning with the help of Japanese alarm clock. At breakfast we eat Indomie or drink Maxwell or Colombian coffee and eat bread made of wheat from America. We glance at advertisement for French wine in the newspapers. Many of the goods and services we consume each day are available at every part of the globe. Symbolizing, it is very important for a customer to decide what to buy and what not to buy? At the same time companies are more curious to escape STP tripod and implement a holistic way to sell their product.