Environmental and Consumer Influences Analysis

1426 Words Nov 18th, 2014 6 Pages
Environmental and Consumer Influences Analysis

PSY 322

Don Crabtree

Environmental and Consumer Influences Analysis

A consumer’s product selection, whether it is an item or a service, is influenced by a number of competing factors. All of those factors can make the process easier, or more difficult, depending upon the consumer’s own decision making process. Social, political, psychological, cultural, and legal processes, to name a few, all influence the consumer’s decision making process. In the case of retirement investments, particularly variable annuities, that process is made even more difficult due to the complexity of the investment. Tax consequence must be considered. Inheritance and wealth preservation are
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Mentioned below are three important factors most people face with marketing techniques: Cultural, Political, and Business Ethics.

Cultural: In the U.S. there are many cultural variations. One of the things I've found to be a factor with marketing, is the basic cultural and language variations between people from different countries. The complex details of a variable annuity are difficult to explain in any language, so when the client may not speak and understand the broker’s language well enough, there may be a high level of insecurity over the whole purchase process. Also, imagery used in marketing materials may not have the same impact on people from different cultures, and may even be offensive or unrealistic. These same anxiety inducing factors may also prevent the investor from asking questions they feel are relevant, but don’t want to be perceived as uneducated or unsophisticated. Consumer behavior differs in each culture, in which one might use everything from body gestures, long periods of silence, and empathy to exchange communications. People might have a hard time with reading investment materials, writing and speaking a less than familiar language, but might have very clear listening abilities that could increase their comfort with and comprehension of the product.
Political – We’ve all seen the stock markets rise and fall with the