Consumer Behavior Analysis – IRAN
Consumer behavior is to study the process that begin used to select certain products or services & how to satisfy their needs or to simplify it, it is to see how can attract consumers and how to predict their behavior so there wont be any surprises and adapt to their needs. this subject can be described and defined in different studies like Consumer psychology, Market psychology, Consumer buying behavior & Personal Factors which each one will give very insightful data and would help us to understand and predict.
So to sum up Consumer behavior involves the psychological processes that consumers go through in recognizing their needs, finding ways to solve these needs which ends up to make a purchase decisions. this is an inconstant & changeable factor that if it missed can bring consequences.
In this article I would like to share Iranian consumer behavior analysis and what makes them different when you compare with the other countries in the region.
- IRAN overview:
Iran is a country of 80 million population which that over 60% of the population are under 30 with one of highest ratio of education in the region, second largest economy in MEA & also second high value market in the region as well, hence it is very interesting market to do bussines in. (Please refer to this rticle for more info : https://www.linkedin.com/pulse/iran-market-can-your-golden-dream-business-easily-could-soltani)
- During the past few years, there has been a growing trend on luxury good consumption among Iranian consumers, under effects of three main factors including consumer perceived value, sensitivity to social norms and need for uniqueness on consumer’s intention to purchase luxury products based on the theory of planned behavior. also consumer knowledge is a mediator factor between need for uniqueness and purchase intention.
- Sources of influence on Iranian consumers: There are numerous sources of influence. Often for this factor we must consider cultural & diversity which for Iranian consumers the key factors are as follows:
- Ads and TVCs are really effective on Iranian buying decisions. The majority believe what they see and the more the better. It can be in any of ATL, BTL or TTL activities, but when it is visible and people see it they will remember it. For example Telesales & marketing via TVCs and Ads on satellite channels are really common way of selling different types of products. ( satellite channels are not regulated so it is one of the desirable places for people to sell their low quality products). You can see ads for selling fake Iphones, Samsung Galaxy,weight loss pills and many more fake or low quality products that begin advertised with attractive TVCs.
- Iranian people love to talk so one of the most effective one on this analysis is how strong is Word Of Mouth among Iranian people.WOM impact on Iranian consumers is amazingly strong. Iranian are socialized people, they like to share their ideas, their experience and also their stories as well. They love to pass the information by oral communication or via social network and especially via instant messaging applications like Telegram (very famous one among Iranian : https://telegram.org/). Many prior making buying decisions will investigate thought these or even make buying decision by reading it on them.
- Store Salesman\ Salesperson can trigger that Win Sales and Influence Customers, This is one of the most important factor, if you win salesman heart at point of sales, they can sell your product like you could not believe, They can change consumer behavior and persuade them to buy what they recommend. That is why majority of the companies in Iran are running channel incentive program consistently.
- Warranty IS A MUST for Iranian consumers, It is so important that for Iranian consumers, warranty comes after the brand name, for example they know Samasung by Sam service which is the local exclusive after sales service provider. There were many brands which missed\ignored this factor and failed in Iran market. After sales service provider will give Iranian consumers confidence to make a buying decision and choose certain brands over others & the interesting part is that they are willing to pay extra to buy goods with certain warranty or even choose and pay more for the same product with different warranty which they think it is better in terms of after sales services.
- Original products with Official distributor: Iranian consumers are very sensitive regarding original products and are keen to buy goods from official distributors as well, of course when the price compare with gray make scene & is reasonable. This is because of lack of presence of many vendors in local market due to the political issues , sanctions & embargo during past years which made Iran market heaven for gray/Unofficial stock and also for duplicate and fake products especially in Fashion. This is a common question that begin asked by consumers that Are you sure this is original product? or I am looking for official and original products with official warranty.
- Availability and visibility: Product begin available and visible in the market will attract Iranian consumers, when they see it every where and see others are using it, they will get curious and will ask & look for it.
- New technologies or new products make Iranian consumers really excited, although usually Iranian consumers don’t want to be first to try it and buy new technologies or new products, first they will wait to see if others will use them and then will make a decision to buy it. but even a believable rumor or Ads in media or social networks can trigger them to try new things.
The bottom line is that Iran is very exciting market but different than the others in the region in way that having success story requires to study it first, understand and then adapt to it then Iran will become the golden goose.
For more information please refer to below:
The author can be contacted on Iman_sltn@yahoo.com / Skype : Isoltani690
Cheers
Iman Soltani