Interview with a Nigerian buyer: Mobolaji Omotosho

Mr Omotosho is a 27-year-old student from Ibadan, Oyo, Nigeria. He has lived in the United States for a few years, and has noticed key differences between buying in America and Nigeria. The major difference is that there are few set rates in Nigeria: buyers must barter with sellers. ‘Except gas everything is up for discussion’, he said. Although the pursuits are different, information literacy must be attained to secure a good deal in such a barter economy. ‘You really need to understand the products and the people who sell them.’ He says Nigerians rely on word of mouth from neighbors and family more than any other information. In fact, it is a custom for parents to take their children shopping and teach them what questions to ask during the process, and how to negotiate.

He recounted the first time his parents allowed him to observe the process for buying a car. ‘It was a choice between a Japanese and a German product. They spoke to several family members, trusted mechanics and those who owned both vehicle types. They then approached the different sellers before making a final decision. This experience helped me. At 15 I was able to make my own purchases. I learned to track the rates, and the information to gather from talking to other people.’

Although word of mouth is most important, and culturally significant, Mr Omotosho also acknowledged that marketing does play a part in Nigerian buying decisions. Nigerians consume radio and television commercials, but rarely are such ads geared towards large purchases such as vehicles. ‘Commercials are for small items; word of mouth is better for bigger items.’

He believes that Nigerian buyers have much more information literacy responsibility than sellers. ‘Since there is no credit system, the seller has no worries.’ This is because Nigerian purchases are usually finished at the point of sale. There are no monthly payment arrangements on credit or layaway programs. Mr Omotosho believes that information literacy will be more important to Nigerian buyers in the future. He thinks that fixed rates will eventually kill barter, and that the Internet will become increasingly accessible. He believes that sellers can be ‘craftier’ in cyberspace, and that buyers will have to improve both their Web Locate and Analyze skills to make information-literate buying decisions. Despite the technology emphasis, he believes that such change will be challenging more for cultural reasons.

Financing

Two roles dependent on information literacy are sellers who provide financing and sellers who seek it. Sellers who lend must seek information about laws, rates and prospective buyer fiscal health. Sellers who borrow need to identify the options and rates available from lenders. To succeed in either scenario, sellers need to undertake primary, secondary and possibly tertiary research.

Those who need money but do not have a strong finance background should start with tertiary sources, for example a money encyclopedia. This can help the seller make better sense of the more specific information he or she will encounter. If the seller already possesses adequate knowledge of finance, then they might go directly to secondary sources (e.g. newspaper articles, books) that offer more in-depth information about financing, preferably as it relates to their particular industry. Whereas time is not of the essence with tertiary sources (fundamentals of financial theory and practice do not rapidly change), secondary sources that deal with particular industries might be in flux.

Although secondary and tertiary research is not mandatory, it is inconceivable not to undertake primary research, and unlike the others its information is very time sensitive. An example is reviewing the actual rates and services that lending agencies offer – they sometimes change by the hour. Primary information is necessary for those who both seek and lend. If lending, then doing background checks on prospective buyers is pivotal. The information items of project feasibility, credit history and professional qualifications should be Analyzed before a decision is made.

Budgeting

To return to sellers who seek financing: once funding is secured, information is necessary for effective budgeting. The seller must thoroughly project all possible aspects of accounting in relation to their project (e.g. appreciation, depreciation, insurance, taxing), and budget accordingly. This means either hiring an accountant or ‘crunching numbers’ themselves.

Accounting offers an interesting array of information relationships. Examples include annual budgets, interest rates and insurance premiums as primary information in relation to the seller. But what of newspaper articles that deal with events that affect one’s particular industry, long or short term, explicitly or implicitly (e.g. consumer confidence)? Although it was written by a reporter, the article could be used to determine budget decisions and thus qualify as primary information. For example, a seller in the oil industry might have to account for more hazards or damages within a fiscal year if drilling in a region that suffers from political unrest. Politics and oil might be two different topics, but to conduct business in a region, no matter what industry, the level of safety can be a huge cost factor. It is more responsible to plan for worst-case scenarios than to assume nothing will go wrong. It can be the difference between long-term success and failure. Such information is available more from newspapers than anywhere else.

Marketing

Information literacy is necessary for marketing in terms of both producing the actual advertisements and the initial demographic analysis stage. Sellers can purchase demographic information from private firms that specialize in collecting it, and in some cases from government offices. They can also do their own research using survey instruments, conducting interviews or making observations. An easy mistake is to focus more on quantity than quality: relevancy and accuracy are just as important as comprehensiveness.

The advertisements themselves are dependent on the primary research conducted during the demographic analysis: sellers must know who are their prospective buyers before they produce commercials or buy space for page layouts. Advertising can also benefit from secondary research, in this case books and articles about principles of advertising (some are even specific to particular buyers and products). Even if not specific, it is still useful to know in general how to attract buyers, as well as the best media to use (e.g. television, Web, radio, newspaper).

Managing

Not every business has personnel issues: many small business owners work alone. However, sellers who do employ personnel in different departments need to make sure they have the information necessary to do their jobs effectively (discussed further in Seller as Provider).

Personnel often complain that they do not get the necessary information: it is difficult to understand why a seller would hire people if they are unwilling to keep them informed. Sometimes this is not a conscious effort, especially in big business: the bigger the organization, the easier it is for communication disconnections to appear. Large corporations have robust hierarchies with layers of middle management; information in an office memorandum originally intended for primary use could be seen by the 100th person removed.

Voluntary and mandatory information

Sellers regularly provide information to buyers on Websites, in commercials and on the products themselves. Depending on the country and its business regulation laws, some sellers are obligated to provide information that would not otherwise be considered good marketing, such as warning labels. Sellers want prospective buyers to think about how great the products are rather than worry about problems associated with them; yet, in many countries they are required by law to mention potential hazards. In addition to pre-emptive information such as directions and warnings, sometimes sellers must also truthfully answer direct questions posed by buyers.

Arguably, however, the majority of the information provided is that which the seller wants emphasized (a seller will not spend millions for World Cup advertising to provide information that will hurt sales). The adage that if it is good enough, your product will sell itself no longer applies: it seems there is buyer expectation that sellers will try to persuade them. If not, then products could be disregarded in favor of those that are marketed.

Intra-seller information

As already mentioned, sellers as seekers do not always get the information needed to do their jobs, including from supervisors. Genoni and Partridge observed that ‘… supervisors do not see it as the supervisors role to assist with the information management aspect of research’.¹ In this case, Genoni and Partridge emphasize the organizational aspect of information and Locate. However, it does not end or even begin there: sometimes managers do not give subordinates accurate or clear instructions for Identify. If this is the case, then Locate, Analyze and Use all suffer. The same sometimes happens among colleagues on the same hierarchical level for various reasons, both intentional and unintentional.

Information literacy is crucial to all seller initiatives; however, it is in large, corporate settings where the top hierarchy truly needs to facilitate information literacy at all levels. Although information literacy is as important to small businesses, there is not as much potential for communication breakdown. Large sellers have little trouble with Locate (some have their own libraries), but facilitating the other three components among all personnel can be problematic. Smaller businesses will not typically have the Locate capability of large sellers, but because communication is less daunting (i.e. fewer people), the other three components are easier to pursue.

There are too many different types of personnel to be able to address them adequately in this chapter. However, one area that is becoming common to all industries is information technology, especially with the increased importance of the Web and B2B (business-to-business) commerce. Personnel in these departments rarely do direct selling; however, without them, much of the selling cannot be effectively accomplished. An example would be a Web copy editor. He or she may have computer programming and composition acumen, but without accurate and timely information provided from the departments they support, the Website, and thus sales, will suffer.

Interview with an Egyptian seller: Sherif El-Shenawy

Mr El-Shenawy has done business in Egypt, the United States, India and Germany. He earned a Bachelor of Science degree in Agricultural Engineering from Alexandria University in Egypt, and has dealt in rental properties, food markets, manufacturing, and currently decorative rugs and furniture.

He was familiar with the phrase information literacy, and thinks it is a huge part of the business sector, though it is referred to by different terms. Through talking with him, it is obvious that he not only approaches business in an information-literate manner but is consciously aware of the components during the process. For him, the most critical information is the credit health of his suppliers and customers. Operating on a global scale, he observes several obstacles to Locating it. ‘Most of my customers and suppliers are good people, and I rely more on their word than any reports. However, with someone new, there is always risk.’

Mr El-Shenawy does not consider annual sales numbers as the ultimate barometer of success; instead, integrity and personal relationships are more important to him in the long term. To this end, he seeks personal and cultural information about those with whom he works. Borne and raised in Egypt, he knows Egyptian culture. However, he also needs to know American, German, Indian and other cultures.

‘We live in a global economy. Just because I do direct business in India and not Russia, doesn’t mean what happens in Russia doesn’t affect my business in India.’

Whereas his credit information needs require primary research, Mr El-Shenawy relies more on secondary research for cultural information. He Locates through news reports on television, the Internet and newspapers. He specifically mentioned the British Broadcasting Corporation, the German Deutsch Welle media agency and the American Public Broadcasting Station as his secondary sources of choice.

Not only is it important for him to understand culture, Mr El-Shenawy acknowledges that information about current events in different countries helps him to forecast how his business will be impacted; he accordingly plans in response to such information.

Mr El-Shenawy believes that all sellers have a responsibility to provide information to prospective and past buyers. Not only is this a responsibility but also effective business practise. ‘Customers who feel I honestly informed them appreciate it and come back.’

In addition to specific product information, Mr El-Shenawy provides cultural information significant to the product and those involved with its creation. He believes the cultural significance of his products is as important as the products themselves; therefore, he provides information about the country of origin, how the product was made and significance of it to the culture.

‘I do not sell dollar store items,’ he says. ‘This is very valuable merchandise. It costs a lot of money. A customer who is going to invest a few hundred dollars into something wants to know what they are getting. Every product that I have is unique, and I want the customer to know how it is. It is going to be very cosmopolitan looking in their homes, but it is also going to be a conversation piece.’

There is a lot of other information that Mr El-Shenawy provides, but one piece in particular goes back to responsibility: labor. He gladly provides all the information customers and suppliers want to know about the conditions of his employees.

‘I do not force it on people,’ he says. ‘But, if they ask, I make sure they have it all.’

He acknowledges the worldwide issues concerning inhumane treatment of workers, and assures his buyers that none of his employees is mistreated (I myself had the pleasure of meeting a few of them: they genuinely like Mr El-Shenawy). He mentioned the issue of child labor in particular.

‘I hire children to work for me, both in the US and Egypt,’ he says. ‘However, I do a very close background check on them.’ This includes primary research through direct observations and interviews with the children and their parents. He learns details of their age, health status, home life and school. If he suspects that they are being forced into labor then he does not hire them.

‘I will not hire someone who has not graduated or is not currently in school. Many people, not just Americans – Egyptians and Indians, too – want to know the conditions that my products are made in. I would never exploit any worker, child or adult, for my own reasons and beliefs. However, I am glad to say that being ethical in this way only helps my business.’

Mr El-Shenawy has problems with the principles and methods of modern marketing. He thinks it is irresponsible of sellers to try and persuade people to buy items that they cannot afford. He attributes such marketing methods to the current global economic crisis.

‘People buy things for reasons other than what they should buy or need to buy in relation to what they can afford to buy. They are brainwashed into thinking they must have something. It is a dilemma now, and a big part of why we are in this crisis: people overextended their credit.’

Although he acknowledges that irresponsible lending and marketing are two different things, he believes both have a shared relationship in the global economic downturn of the 2000s.

‘They shouldn’t have been allowed to borrow that much, but why did they want to in the first place?’

Mr El-Shenawy believes that the Internet will make information literacy in business much more significant in coming years, and that successful sellers will need to harness it both for seeking information and for providing it. His concern is the amount of fraudulent information that is provided. In addition to good searching and programming skills, he thinks that critical thinking skills on the part of buyers and better morals on the part of sellers will be the difference between information literacy and illiteracy.

Caveat emptor

Let the buyer beware. This phrase describes traditionally where responsibility lies during a business transaction. However, in some countries there are regulations on what sellers can sell and how they can sell it. Ultimately, however, whose responsibility is it to ensure honest dealing? In terms of information literacy, buyers and sellers are both providers and seekers, and should take the responsibility that comes with those roles. There are organizations that monitor transactions (e.g. the Better Business Bureau for Canada and the United States), but their powers are limited.

I believe it is more the buyer’s responsibility to ensure information literacy for him/herself, and the seller’s to make a profit. I do not suggest that sellers have no information literacy responsibilities, and as Mr El-Shenawy discussed, it is actually effective business practise to ensure it, especially internally (i.e. intra-seller information). With the Web, sellers can gain poor reputations quickly; therefore, it behooves them in the long term not only to conduct business fairly, but also to provide as much information as possible to buyers to avoid confusion.

Technical writing

Information literacy within the realm of the seller’s operation is often ‘non-product’ related: an example would be technical writing. Personnel in these areas may not be direct revenue providers, but they do facilitate information literacy. Cutting technical writers has been a trend over the past few decades. However, without proper instructions, most buyers cannot effectively use a product to its advertised potential.

Although those involved in product development might excel in their roles, they cannot always effectively explain how their products work, as, for example, with computer operating systems. The programmers who design these are software professionals; however, the buyers who buy them are often barely competent with a computer. Therefore, installing an operating system is a challenge, along with understanding how it works. Buyers need clear, step-by-step guidance written in terms that they can grasp, which is where technical writers come in: as an operating system connects computer software with hardware, a technical writer connects the product to the buyer’s threshold. Employing effective writers is not cheap, but if a company wants people to buy its products, they had better ensure that buyers understand how they work. In this sense, employing professional writers is a wise, long-term investment.

Boycott

Is it ethical? What about for non-product-related issues (e.g. personnel treatment, environmental impact, product testing)? Although their methods may be legal, buyers are sometimes offended by the operations of sellers. Should personal beliefs and principles factor into buying? This is purely a philosophical question as it would be nearly impossible to marshal. However, some organizations place pressure on entire markets to boycott products until the sellers change policies. Is this a violation of sellers’ rights to free enterprise? Should it not be left to law to determine whether a seller has a right to a particular practise? My answer comes from an information literacy perspective.

The role of buyer differs from individual to individual. Although the components do not change, the sorts of information the buyer wants to become literate about do change. If buying is more about morality for one buyer, and Identify, Locate and Analyze contradict what he or she deems moral, then it is his or her privilege to Use that information in whatever way they want, be it to personally boycott a seller and/or influence others to do the same.

As the Web continues to grow in importance, and with it information literacy opportunity, this is something sellers will have to accommodate, fair or unfair. They will have to determine whether short-term cost savings are worth long-term sales losses. Unless the seller has a monopoly (which is often illegal) they may be forced to operate in a way that is more agreeable to information-literate buyers.

Marketing

What sorts of information will the seller provide? In what form? How? Is it more important for the seller to provide comprehensive, honest information, regardless of requirements, or sell a product at any cost? Idealists will argue that the two do not differ: if the seller’s product is good then it will sell itself. Is this really the case?

Although I understand Mr El-Shenawy’s misgivings about certain marketing strategies, I believe that sellers have a responsibility to themselves to sell their product, especially if they have investors. However, sellers also have a responsibility to buyers not to lie and to follow the law. Depending upon demographics, different people will respond to different sales approaches. The product may not change, but the sales approach will if the seller is a savvy business person.

Mr El-Shenawy is concerned that some marketing strategies target buyers who cannot afford the product. Additionally, he views this from a global economic standpoint rather than an individual buyer/seller relationship: if enough poor selling and buying occurs, all sectors will suffer. However, it is in individual relationships where information literacy most prominently appears, along with responsibility. Buyers should not binge spend; they should approach buying in an information-literate fashion. If they did so, then I believe that the marketing strategies that trouble Mr El-Shenawy would disappear.

I doubt that Mr El-Shenawy would disagree. However, where he places more moral responsibility on sellers (including himself), I place more on buyers, including myself. Of course such responsibility still relies on sellers providing information necessary for informed buys.

For the buyer

For the seller