Different consumer behaviour( Marketing #3)

Even though when we think about North America, Canada and the U.S always come together, the cultures and people behaviors are quite different. Alan Middleton, assistant professor at the Schulich school of business at York University, has  generalized several differences. Firstly, he said canadians are more cautious. “we are more cautious, we are slow adopter of new things, new technology, new products than our friendly down south.”

I think this difference is largely due to the different life styles in these two countries . Compare to America, Canada is more relax. Canadians like to travel, skiing and enjoy their own time rather than work all the time. As a result, we are slower adopter for new objects.

Another culture difference that Middleton found was that “America is a much more deeply innovative and experimental culture. We are much more value culture.”He explains that this is a reason why online shopping grows a lot more slower in Canada than the U.S. Because we are value orientated, we want to actually see the product. Also, because of this, we tend to buy things for long term use and Americans like to search for newness .

Consumer behaviors is not a independent concept, it is just a part of our life style. People are different, so it is very complex to be specifically analyzed. Even though we say that Canadians are more leisure and Americans are more busy. These differences are not very obvious on younger generations, due to the global economic and high technology median. However, the younger generations might have some other differences that their parents don’t have.  Marketing study on consumer behaviors is not a once for all event, people will always change as tome goes by.

Reference:

Schulich marketing professor explains the difference between Canadian and American consumer (2012) http://media.schulich.yorku.ca/faculty/schulich-marketing-professor-explains-the-difference-between-canadian-and-american-consumers/

 

Why Zellers Failed (Marketing #2)

I have been lived in Canada for only 3 or 4 years,Zellers is part of “Canadian life” in my head. One day I saw the red sign “closing sale” one the door, I really felt surprised. Most of the stores were replaced by Target Canada or Walmart Canada. What makes this well-known brand failed after it has already operated for more than 80 years?

Zellers is popular in Canada, but its market size did not grow much in the last 30 years, the volume of Zellers was floating up and down around $2.5 billion a year. Comparing to this, Walmart Canada has grown to about 16 billion a year.“ the lowest price is the law”, as a discount department retailer, this is Zellers always pursuit for. However, Walmart took this away by offering the lowest price. The Canadian market became more and more global and diversity, but Zellers did not  effectively adapt itself to that. Meanwhile, Target, as a famous U.S retail brand, has great ambitions for expanding to the north. As a result, Zellers was chose as a footstep for them.

Not only Zellers, think back to many other Canadian brands, such as ATI, Rona, even Tim hortons faced the risk of merger before. For the overall economics, taking over might be a good thing. However, since the U.S companies have an increasingly large occupation in Canadian market by either taking over or expanding, there is a huge challenge for the local brands to competitive with them.