Professional Documents
Culture Documents
Consumer and Market Trends
Consumer and Market Trends
market trends
Consumer & Market trends
2
Globalization processes and consumer behavior
3
Internet and information and Communication Technologies
4
Emerging consumer groups, market trends and new
marketing strategies
◉ Emerging groups
◉ Migrants and bi-culturalism
◉ Youth and Generation Z
◉ Consumption of ethnic products and religiously oriented
products
◉ Trend identification and analysis of market reports
◉ Euromonitor and Passport reports
◉ Approaches and strategies based on expectations and
future trends 5
Assessment
6
Globalization
processes and
1 consumer behavior
Globalization and Consumer Markets
7
Globalization and the Consumer
Society
Globalization is the rapid spread of the
capitalist market around the world,
including consumer society, based on
materials produced for a mass market.
(Hodge-McCoid, 2007)
8
Globalization and the expansion of
the consumer society are
intertwined.
Despite cultural differences, the
globalization of the consumer
society has given status to high
consumption, especially of items of
the international market. (Rostow,
1991)
9
Theories of Globalization
Top-down theories
10
Theories of Globalization
Bottom-up theories
Bottom-up theories call attention to the fact that the world does not look the
same for the disenfranchised as it does for the affluent and powerful.
11
Theories of Globalization
Ecological theories
12
Global Village
Idea that people throughout the world are
interconnected through the use of new
media technologies.
(McLuhan 1960)
13
Consumer Society
Some sociologists claim that in
postmodern consumer societies,
consumption patterns no longer act to
structure social classes. Consumption
has been approached as the semiotic
code constituting postmodern itself.
(Mikai, 2017)
14
Consumer Society
Baudrillard´s perspective
15
Consumer Society
Baudrillard´s perspective
16
Consumer Society
Baudrillard´s perspective
This means that signs are consumed, not the objects. He also sees
consumption undertake the role of integrating entire society, just like
hierarchical or religious rituals did in primitive societies by training them in
the unconscious discipline of a code, and competitive cooperation at the level
of that code.
17
Consumer Society
18
19
Global Consumer Culture
There´s a lot of research being made to try ◉ the interaction and trade-off
to understand: among global and local
consumer cultures
◉ the differences among conceptualizations
of consumer dispositions (and their ◉ the appropriation of global
resulting brand preferences) consumer culture elements and
their indigenization by local
◉ how multiple identities interact and
societies
shape consumer behavior (e.g., the
combination of multiple possibly ◉ the prospective development of
contradicting identities) several global consumer
cultures across emerging
markets 20
Global Consumer Culture
Market globalization has increased rapidly in the last few decades. This
phenomenon is due to a host of factors, such as:
◉ the collapse of communism
◉ global opening of previously closed markets in India, China, Eastern Europe,
and Latin America
◉ worldwide investment and production
◉ increases in world travel and consumer sophistication
◉ advances in telecommunication technologies
◉ the growth of global media
Steenkamp 2017 21
Global Consumer Culture
Several scholars (e.g., Appadurai 1996; Ritzer 2007) and many in the popular
media see these forces of globalization as leading to increasing cultural
homogenization.
Some have argued that globalization and (alleged) homogenization favor those
marketers who are able to position their brands as symbols of global consumer
culture (GCC; Özsomer, and Altaras 2008; Steenkamp, Batra, and Alden 2003;
Xie, Batra, and Peng 2015).
22
Global Consumer Culture
At the same time, globalization processes offer opportunities for local brands
to differentiate themselves on unique local consumer culture (LCC) meanings
(Schuiling and Kapferer 2004; Steenkamp, Batra, and Alden 2003).
23
Consumer Culture Theory
25
Global trends in
consumption
2022 26
Multiculturalism
New communities
◉ Iriye, A. 2002
27
Universalism and
Multiculturalism
Is the Universalism possible in a
multicultural society?
◉ Buenfil, R. 2008
29
Universalism and
Multiculturalism
Multiculturalism: Is the way societies have mixed cultural
varieties and life styles to the historic point called “globus
universalis”, where we tend to observe one global culture,
global communities that are more and more alike.
◉ FAO, 2016
32
Internet and Information and
Communication Technologies
◉ Exercise: What new opportunities ICT´s had brought for brands nowadays?
What kind of creative strategies brands design to get to their
targets using ICT´s?
Look out for some examples.
◉ FAO, 2016
33
ICT Revolution in consumer product
markets
◉ Household´s voice in the marketplace is strengthened too, so, the brand´s reputation it
´s more at a stake than before.
◉ Better information among economics agents and easier entry of firms result in stiffer
competition, with higher efficiency in production
◉ Tendencies to reduced profit margins give firms incentives to opt for more
differentiation of products and prices, and in some cases, also more complex price
systems.
◉ New technologies and social media have led to a fast evolution of consumer behavior.
◉ Brands have changed in consequence too, developing mainly personalized strategies
to attract these new users.
◉ A new ecosystem has appeared:
○ User experience
○ New Influencer marketing
○ User-generated content
○ eWom
42
Culture and Cultural
Consumers
◉ A person’s culture has a huge influence on their thought processes
and behaviours.
◉ Because it’s so influential on how people perceive the world
around them, their place in it, and how they make decisions, it
tends to play a role in determining how and why we consume
goods and services.
Williams, D. 2020 43
Culture and Cultural
Consumers
◉ Cultural prohibitions against consuming products such as alcohol
or meat, or cultural preferences for styles of clothing, make it easy
to understand some buying patterns.
Williams, D. 2020 44
Culture and Cultural
Consumers
◉ Other elements are more subtle. Cultural elements such as time
orientation (whether a culture tends to focus on the past, present
or future) seem to bear influence on elements of online shopping
such as trust and social interaction.
Williams, D. 2020 45
Culture and Cultural
Consumers
◉ Human personalities vary and that variety encompasses the extent
to which an individual takes on board the particular influences of
their culture.
◉ Indian consumers tend to be more family orientated than western
ones but that doesn’t mean there aren’t Indian consumers who
don’t make highly individualistic purchasing decisions – or
Western ones that don’t think collectively.
Williams, D. 2020 46
Culture and Cultural
Consumers
◉ Culture is what comes natural to a person, and it makes their
decisions easier, because they are in their comfort zone, but even
than some authors think different products and services make the
decisions harder, others think that in post modernity, people
actually seek for different.
Williams, D. 2020 47
Cultural elements that influence
buying behavior
◉ Youth orientation
◉ Long-term vs short-term orientation (lateness, inefficiency,
managing personal time)
◉ Masculinity vs femininity
◉ Power distance index
◉ Individualism / collectivism
◉ Uncertainty avoidance (risk avoidance)
Williams, D. 2020 48
Culture impacting Marketing
◉ Ex. Motorbikes
Williams, D. 2020 49
Comsumption Microcultures
◉Class
◉Gender
◉Race
50
Diversity as an attribute element of
the global consumer
◉Diversity is the constant in the modern world.
◉Diversity is the real or perceived differences among
people in race, ethnicity, sexual orientation, gender,
age, physical and mental abilities, appearance and
religion.
Rosa, G. 2016
51
Diversity as an attribute element of
the global consumer
◉While marketing professionals may have a particular
target audience in mind, they should not disclude any
race, ethnicity, age group, gender or any other
characteristic that sets people apart.
Rosa, G. 2016
52
53
Diversity as an attribute element of
the global consumer
◉Brands take advantage of differences to build a
positive image in front of their audiences.
◉Even though the purpose of this is not all the time
honest, their target should be feeling it is.
◉The most adviseable way of doing it is to create
culture of acceptance.
54
55
PEOPLE AND
PRODUCTS IN A
MOVING
MARKET
PEOPLE AND PRODUCTS IN A
MOVING MARKET
In contemporary times, the buying and having of material goods, along with
a growing array of services, have become as central to people’s sense of
being as family and career. “I shop, therefore I am, and I am what I
consume” may well be the defining dictum of modern woman and man.
57
PEOPLE AND PRODUCTS IN A
MOVING MARKET
We choose our friends and lovers on the basis of the books they read, the
music they listen to, the celebrities they idolize, their preferences in foods
and restaurants, and their Facebook “likes.”
Kimmel, A. 2015
58
PEOPLE AND PRODUCTS IN A
MOVING MARKET
As the complexity of consumer decision making took front and
center among the concerns of consumer researchers and
practitioners, so too did the meaning of consumer behavior,
which now encompasses the full range of the consumer decision-
making process, beginning with the decision to consume (to
spend or save, to have or not to have) and ending with product
usage, disposition, and post-purchase reflections
Kimmel, A. 2015
59
PEOPLE AND PRODUCTS IN A
MOVING MARKET
A comprehensive understanding of consumer behavior requires a
consideration of how the possession and use of consumption
objects influences who we are, how we perceive ourselves and
others, and how these objects impact the broader social and
cultural worlds we inhabit in our various roles as citizens,
parents, professionals, and so on.
Kimmel, A. 2015
60
FROM CONSUMER TO
PROSUMER
The traditional “top-down” marketing paradigm (business-to-
consumer marketing, or B-to-C) whereby consumers were
content to select goods produced, distributed, and promoted by
companies and advertisers which decided what customers needed
and desired has been turned on its head in an amazingly
short span of time.
Kimmel, A. 2015
61
FROM CONSUMER TO
PROSUMER
In its place are bottom-up, grass-roots approaches (consumer to-
consumer marketing, or C-to-C) that are shaping the business
world in ways unimagined only a few decades ago.
Consumers are increasingly taking control of the marketplace and
are no longer merely passive participants in the wide array of
activities that comprise the marketing enterprise.
Kimmel, A. 2015
62
Consumers are no longer
considered merely as
customers or passive
recipients of marketing
content and offers, but as
active and participative
contributors to the marketing
enterprise who actively
create, produce, share, and
monitor marketing-related
content (Armano, 2015).
PRODUCT AND SELF-
CONGRUENCE
Consumers’ product choices and brand preferences often involve
a comparison between self-concept and the perception of the
product under consideration.
Kimmel, A. 2015
64
PRODUCT AND SELF-
CONGRUENCE
In research focusing on the extent to which the self-concept is
susceptible to situational influence, it was found that brands
perceived as having certain personalities can act as situational
stimuli that can influence assessments of different aspects of
one’s self-concept by transferring brand personality traits to
consumer personality traits.
Kimmel, A. 2015
PRODUCT AND SELF-
CONGRUENCE
Self-concept:
Self-concept is how we perceive our behaviors, abilities, and unique
characteristics. For example, beliefs such as "I am a good friend" or "I am a
kind person" are part of an overall self-concept.
Our self-perception is important because it affects our motivations, attitudes,
and behaviors. It also impacts how we feel about the person we think we are,
including whether we are competent or if we have self-worth.
Goldman, R. 2021
Rogers, C. 2012
SELF-CONCEPT
Self-image: Self-image refers to how you see yourself at this moment in time. Attributes
like physical characteristics, personality traits, and social roles all impact your self-image.
Self-esteem: How much you like, accept, and value yourself all contribute to your self-
concept in the form of self-esteem. Self-esteem can be impacted by a number of factors—
including how others see you, how you think you compare to others, and your role in
society.
Ideal self: The ideal self is the person you want to be. This person has the attributes or
qualities you are either working toward or want to possess. It's who you envision yourself
to be if you were exactly as you wanted.
Rogers, C. 2012
PRODUCT AND SELF-
CONGRUENCE
Some persons may define their rebellious and free-spirited self-
image by owning a Harley-Davidson motorcycle, others exhibit
their conscientious and caring nature by purchasing Body Shop
products, and others demonstrate their environmental sensitivities
by driving a Toyota Prius.
Kimmel, A. 2015
The extended Self-concept
Kimmel, A. 2015
The extended Self-concept
72
EMERGING GROUPS
LUXURY
MARKET
73
LUXURY MARKET
Many marketers try to target affluent, upscale buyers. This makes
sense, because these consumers obviously have the resources to
spend on costly products that command higher profit margins.
Luxury marketing is largely about exclusivity. If everyone
has it, it’s not luxury
Solomon, 2021
74
César Val
LUXURY MARKET
A luxury brand is a complex platform that
conveys messages about quality, lineage, status,
and taste.
It often encompasses a set of visual icons, such as a distinctive
logo, monograms, patterns and images.
Solomon, 2021
76
Luxury brands vary in the type of status signaling they employ. Compare a
discreet luxury brand the very prominent repeating logo pattern you might find
on a Louis Vuitton bag or perhaps a pair of sunglasses emblazoned with a very
large Dolce and Gabbana label that runs across the front. As a rule, those who
are wealthier and don’t have a high need for status rely on “quiet signals” and
likely will be put off by excessive displays.
77
Old money
New money
78
Loxury groups atttudes(Consulting Business Inteligence, 2021):
• Luxury is functional: These consumers use their money to buy things that
will last and have enduring value. They conduct extensive pre-purchase
research and make logical decisions rather than emotional or impulsive
choices.
• Luctury is a reward: These consumers tend to be younger than the first
group but older than the third group. They use luxury goods to say, “I’ve
made it.”
• Luxury is indulgence: This group is the smallest of the three and tends to
include younger consumers and slightly more males than the other two
groups. To these consumers, the purpose of owning luxury is to be
extremely lavish and self-indulgent.
Luxury Market
behavior
80
Luxury Market
behavior
Mid-income consumers buy “everyday luxury”
goods such as Swatch watches, imported beers
and wines to satisfy their craving for luxury
(Rambourg, 2014; Vickers & Renand, 2003).
Hung & Tse, 2020
81
Luxury Market
behavior
Consumers’ motivations for luxury brands can
be classified into four categories:
• performance-related (quality),
• personal (inner satisfaction),
• interpersonal (attention-getting) and
• social (status). 82
EMERGING GROUPS
HEALTH
CONSCIOUS
Consumers are far more health conscious than
before.
After months of increased hand washing, wearing protective masks
and isolating indoors, hygiene will be the forefront of everyone’s
minds.
Freedman, 2021
84
It’s not just about the short-term impact of contracting Covid-19.
The global pandemic has caused people to think about ageing. In
particular, how they can lead a healthy lifestyle into their old age.
Freedman, 2021
85
A general health-conscious way of living is a key current consumer
trend.
Freedman, 2021
86
What can brands do?
• Providing more helpful services or products which will allow
customers to lead healthy lives is key.
• Brands can also look into the latest touchless technology to help
customers feel safe while shopping in physical stores or when
taking part in interactive experiences.
Freedman, 2021
87
NEW GREEN
CONSUMER
88
GREEN
CONSUMER
Is defined as that consumer who expresses his concern for the
environment in his behavior of purchase, looking for products
that are perceived as having less impact on the environment
(Peattie, 2001).
89
90
Since then, there has been a steady rise in global initiatives
dedicated to sustainability.
91
92
Green Consumerism has increased the demand for goods and services
based on their pro-environment benefits.
93
Who are the new green consumers?
Over time, “sustainability” has evolved from a simple buzzword to a mindset
that has driven the consumption landscape to change.
The breadth of available environmental data clearly points to an urgent need for
collective action to minimize and reduce the harm that we have already
inflicted on our planet.
Therefore, Green consumers are making consumption choices amongst an
ever-growing selection of ‘green products’
94
The green consumer behavior
We can define this “green consumer behavior” through the following
characteristics:
• Ethical purchase choice, product use and post-use;
• Purchase and use of products with lower environmental impacts; and
• Use of organic products, made with low impact processes and can then
easily be disposed of through recycling, biodegradability, or compostability
(including packaging).
96
The green consumer behavior
The importance of green consumerism, therefore, includes:
• Reduced waste in packaging;
• Increased energy efficiency;
• Decreased release of emissions and other pollutants during production and
transportation processes;
• Consumption of healthier, less environmentally harmful, foods.
97
Who are the new green consumers?
We can define this “green consumer behavior” through the following
characteristics:
• Ethical purchase choice, product use and post-use;
• Purchase and use of products with lower environmental impacts; and
• Use of organic products, made with low impact processes and can then
easily be disposed of through recycling, biodegradability, or compostability.
98
Who are the new green consumers?
We can define this “green consumer behavior” through the following
characteristics:
• Ethical purchase choice, product use and post-use;
• Purchase and use of products with lower environmental impacts; and
• Use of organic products, made with low impact processes and can then
easily be disposed of through recycling, biodegradability, or compostability.
99
Who do you think is the most
responsible for the future of
environment?
https://www.menti.com/dwn71pobh4
100
Where does the responsibility lie?
101
Are Millenials driving the change?
Sustainable materials are more of a consideration for younger generations. In
fact, they are more conscious about their purchases reflecting their values.
They are sustainable packaging oriented.
102
Sustainable Packaging: From a Nice-to-Have
to a Must-Have
As the Green consumer has become an increasingly important customer
segment for a number of retailers and Brands, aspects such as packaging need
to be reassessed and re-engineered with the environmental impact considered.
103
Sustainable Packaging: From a Nice-to-Have
to a Must-Have
Trends in packaging:
∎ Design for recycling and reuse
∎ Replace plastic with bioplastic
∎ Increase use of paper packaging
104
105
Generation Z and consumer trends
Authentic digital natives – they use new technologies since they remember–
and therefore, self-taught, creative, collaborative and exposed at the
information.
These traits that make them a new consumer model, with different habits,
skills and attitudes when dealing with their relationship with brands, AND
traits that are forcing companies to adapt to a new reality where digitalization
takes on its maximum expression
But what is really important about these digital natives? Whatis what brands
have or should take into account in their relationship with them?
Is it only changing the way of consuming? Or also the goods and services
consumed? Do they see or expect from brands the same as their ancestors,
millennials, or even older generations like babies Boomers or Generation X?
They are young people born between approximately 1994 and 2009, years in
which the World Wide Web already was fully developed and present in most
homes.
Generation X was born with the walkman, the desktop PC or the Game
Boy, millennials have done it with 2G technology, the laptop and the use of
SMS, and Generation Z with the tablet, the smartphones and an
environment where they massively use WhatsApp to communicate.
https://www.menti.com/nncet89enp
110
Gen Z
https://www.menti.com/3ao6niqcva
111
Generation Z
They use digital tools in all social, work or cultural relationships and have
built their hallmark with the massive use of social networks.
The fact of living constantly connected is a challenge for the young people
of Generation Z, who must know how to balance their real and cyber life,
as well as deal with the risk of technological addiction and other dangers
related to privacy, harassment and abuse. cybercrime
121
A digitalized generation
Z's attention spans are short, eight seconds is the average time that young
people pay attention fully to something specific.
Their brains have evolved to process information at faster speeds and are
cognitively more agile to handle mental challenges, a fact that brands
cannot miss.
8 seconds of attention will force them to relate in a totally different way
with other generations.
124
Food services
Food services have evolved during the past decades, despite pandemics.
This evolution is related to changes in lifestyles that, due to lack of
time, accelerated way of life, incorporation of women to the labor
market, urbanization, food variability search, and others, have made the
consumer to demand new food options and delivery models.
Shingel, 2022
127
Restaurants
TIK TOK AND VIDEO MARKETING
Posting videos of the restaurant’s menu, food preparation, and venue
attracts the attention of young consumers and creates brand recognition.
Due to its ease of adoption and the potential to create a viral hit, the use
of TikTok and other forms of video marketing is expected to be a major
restaurant marketing trend in 2022.
Shingel, 2022
128
Restaurants
PODCAST ADVERTISING
Podcasts are a popular form of entertainment, with shows covering
many different topics, including the food industry.
The massive popularity of podcasts presents an opportunity for
restaurants to advertise their business on relevant shows, reaching a
wide audience and building brand recognition.
Shingel, 2022
129
Restaurants
PODCAST ADVERTISING
Podcasts provide the perfect medium to deliver a short and effective
message such as advertising a new signature dish or promoting online
orders.
Many industries have been taking advantage of the wide reach of
podcast advertising, and 2022 will be the year that restaurants join in on
the trend.
Shingel, 2022
130
Restaurants
PODCAST ADVERTISING
131
Restaurants
LOYALTY PROGRAMS
As consumers shy away from public places, rewards from loyalty
programs can be a great way to engage with customers and incentivize
eating out.
Loyalty programs and exclusive rewards are also a great way for a
restaurant to remain fresh in the mind of consumers, allowing for
continuous engagement.
Shingel, 2022
132
Restaurants
SOCIAL RESPONSIBILITY
Restaurants and other businesses have begun
embracing aspects of social responsibility, and
the trend is expected to continue in 2022.
133
Restaurants
SOCIAL RESPONSIBILITY
Restaurants are also engaging in other aspects of social responsibility
such as donating a portion of proceeds to charity and hosting local
fundraising events. In the next year, look for restaurants to continue to
engage in social responsibility, giving back to local communities, and
establishing themselves as community leaders.
Shingel, 2022
134
Food services
trends
FOOD PRODUCTS TRENDS:
New packagings, more natural formulas and other options for those
who are worried about their health and environment are coming out.
Shingel, 2022
135
FOOD PRODUCT
TRENDS
SUSTAINABLE DISPOSABLES:
With the many plastic and styrofoam bans that popped
up before the pandemic, it looked like we were on a
track to reduce single-use products in the industry.
Then the delivery and takeout boom temporarily
derailed the movement towards sustainability.
This year we’ll see the pendulum swinging back the
other way as a wide variety of eco-friendly disposable
products become available.
136
FOOD PRODUCT
TRENDS
ADVANCE CLEANING PRODUCTS
Our definition of “clean” has certainly evolved over the last few years.
The types of janitorial products that we expect to see in a foodservice
environment are growing to include some rather hi-tech cleaning
options.
Shingel, 2022
137
Food services
trends
SERVICE TRENDS:
With a global pandemic continuing to rage on, restaurants still need to
find creative ways to serve guests.
Shingel, 2022
138
SERVICE TRENDS
139
SERVICE TRENDS
LIMITED MENUS
Smaller menus and fewer choices have advantages that go beyond the
obvious benefits to a short-staffed kitchen. Dining behavior is leaning
towards quality over quantity, and guests will be looking for a small
selection of the restaurant’s signature dishes instead of a large menu.
140
SERVICE TRENDS
141
Food services
trends
DELIVERY TRENDS
2021 saw a massive increase in demand for delivery services, and in
2022 restaurants will have the same focus on capitalizing on the food
delivery market.
142
DELIVERY TRENDS
IN-HOUSE DELIVERY
Throughout the COVID-19 pandemic, many restaurants have relied on
third-party delivery services to handle high volumes of delivery orders.
However, creating an in-house delivery system can cut down on
miscommunications and prevent restaurants from having to pay fees to
a third party.
143
DELIVERY TRENDS
IMPROVED PACKAGING
Takeout containers and other forms of delivery packaging have seen a
big jump in use with the rise in food delivery amidst the COVID-19
pandemic. Since delivery packaging is currently such a big part of the
foodservice industry, expect to see restaurants improving their
packaging options throughout the year.
144
DELIVERY TRENDS
145
DELIVERY TRENDS
146
Preloved / Second hand trend
147
Preloved / Second hand
trend
“Vintage” items, preloved and other adjectives are being used to refer,
nowadays, to used or preowned products.
Preowned products weren´t something people were looking for in the last
millenium, excepting for antique lovers, in an initial wave called “the search
for vintage”.
Actually, using or buying preowned products used to be a symbol of poverty.
148
149
Preloved / Second hand
trend
Before pandemics, we could see how a new niche was rising. The niche of
people seeking for preowned products such as: apparel, accesories, home
appliances, furniture, books and many others.
With that niche growing, new words to refer to those products appeared too,
specially one: PRELOVED
150
Preloved
The word “Preloved” was the start of the transition from a niche to a whole new trend.
It started before pandemics, but it was reinforced by it.
151
152
Preloved buying
motivations
But why are people into buying these preloved ítems?, what are the
motivations behind it?
153
Preloved buying
motivations
∎ Economical motivations
∎ Style / glamour
∎ Feeling in trend
∎ Helping (feeling) the planet, environmental footprint, specially in
fashion field
154
Categorization of
preloved products
There are two big categories of products:
∎ Everyday products (clothing, home, etc)
∎ Stylish expensive products, one of a kind
155
Preloved / Second hand trend in
Hermosillo
156
Preloved / Second hand trend
online
157
Upcycling
158
How is this
consumer? 159
How is this consumer?
According to the different categories of preloved products, there are also two
different categories of consumers according to that:
∎ Fashion oriented: Generation Z and Millenials are “selfie” generations, with
means they are overexposed. That exposition leads them to always look for
new fashion options, which is expensive.
∎ Enviroment oriented: People who are truly worried about trends like “fast
fashion” and are trying to do what they can to extend as much as posible the
life of ítems.
160
How is this consumer?
These consumers are defining new signs and symbols around this trend:
∎ Belonging (fitting) into reference groups
∎ Feeling better about themselves
∎ Feeling of being wealthy
∎ Thought of contributing for a better future
161