Consumer Behaviour Case Study

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International retailing is managing operations in the international market that varies on regulations, economic development, social conditions, cultural environment, and retail structures. (Alexander, 2007) Moreover, not only the total culture of the firm, the capability to adapt to the market are transferred but also, customer values and expectations, techniques of retailing to the new market is considered. (Dawson, 2007)
A recent guest lecturer from Nespresso Denmark for the international marketing course on 1st of Oct pointed out that the price of Nespresso in South Korea is the highest among their retail shops in the world since consumers in South Korea has high demands for the products and service. (Fredrik Nilsson, Country business manager,
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In order to make customers satisfied with their needs, retailers try to classify them firstly. According to Goworek and McGoldrick (2015) “Understanding the process of consumer decision-making and the various factors that influence consumption decisions are key aspects of Consumer Behaviour(CB) theory. (Goworek & McGoldrick, 2015).”
Consumers’ attitudes are linked to their opinions concerning products and brands (Goworek&McGoldrick, 2015). Also, according to the Theory of Planned Behaviour (Ajzen, 2005), consumers’ intentions for purchasing are shaped by combining attitudes, beliefs, social pressures and ability to act and it affects their consumer behaviour in the end (Ajzen,
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That is the reason, South Korea has a unique position and has become a pillar of the international luxury industry, at the same time, it is a high potential market with customers who support brand loyalty. Also, thegreater variety has increased competition among brands and it drives consumers’ behavioural changes.
A case of Nespresso: Why Price in South Korea is different
A recent guest lecturer from Nespresso Denmark pointed out that the price for the Nespresso is the highest in South Korea market. Also, he added comments that “Korean consumer has high demands for the premium products, it is an interesting market.” (Nilsson, 2015) Furthermore, he said the price will be lower in this year.
In the meantime, the price of the capsules from Nespresso was set twice higher than in Europe. (Seok, 2015) Actually early this year, the price of Nespresso capsules has been lowered by 30 %. The reason for lowering the price is regarded as considering consumers’ responses to buy overseas direct purchase since the price significantly differed from Europe (Seok, 2015).

The case of Starbucks: Why Price in South Korea is the highest among OECD

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