Internationalization

Many store chains have expanded outside the United States. Consequently, companies must deal not only with geographical distances but also with cultural distances as well. Consider these examples—Starbucks and Outback Steakhouse. Each corporation must adapt its product menu to the country in which it operates. For example, in Seoul, Outback Steakhouse serves kimchi (fermented cabbage) on the menu, which is neither American nor Australian.

Technological Changes

In the mid-twentieth century, television revolutionized consumer behavior. Not only did TV change advertising forever, but true home shopping became a possibility. Businesses like QVC and HSN build virtual relationships through emotional connections with TV personalities and lower the risks (of not being satisfied with purchases) involved in ordering online by providing both product demonstrations and peer and expert testimonials. Strong integration between their websites, television broadcasts, telephone and even a few stores provide the ultimate flexibility for a consumer’s time and shopping preferences. To see this technology in action, check out the QVC website and make sure to click on the Watch Live link to see the current broadcast and Customer Shoutouts for online testimonials.

Changing Communications

Consumers’ favorite form of communication used to be face-to-face. Now, many consumers choose the telephone as their preferred communication method (either by voice or text message). E-mail and social networks are also used, and live online chats with sales, customer service, and technical support provide the sense of face-to-face communication that consumers desire without the hassle of commuting to a brick-and-mortar store. Marketers are quickly learning how to expand the use of these tools and others to communicate with consumers.

Changing Demographics

Since 1950, the U.S. population growth rate has declined by more than 50% (multpl, 2015). In addition, growth since World War II of the middle class in the United States, Europe, and Japan is being usurped by an expansion of the middle class in emerging markets. These two are among the reasons marketers had focused their efforts on these markets in the second millennium, especially the BRIC countries of Brazil, Russia, India, and China (Ernst & Young, 2013). Changing consumer demographics are indicators of potential opportunities and challenges. Of course, in many cases, more research is needed regarding consumer needs, attitudes, and behaviors (NABs) and other external environmental influences, like global economies and national government stability, to clearly understand these opportunities or setbacks.

Changing Economy

After a few years of disruption in nations around the globe, Greece—losing ground in its struggle to recover—closed its banks in June 2015. United States Federal Reserve Chair Janet Yellen stated, “To the extent that there are impacts [from the closings in Greece] on the euro-area economy or on global financial markets, there would undoubtedly be spillovers to the United States that would affect our outlook as well” (Mui, 2015). Consumers’ reactions worldwide could include a conservative approach to spending until the impact is more clearly understood. With less disposable income (less money to spend), retailers may struggle to maintain their own revenue and profit goals. Even as economies recover, fresh memories of budget troubles may delay or permanently change consumer spending. Many retail marketers look to other consumer NABs to find ways to match new consumer expectations to their organizational goals and resources.