CrossCultural Consumer Behavior: An International Perspective

1
Chapter 14

• Cross-Cultural Consumer Behavior An
  International Perspective

2
The Imperative To Be Multinational

• Global Trade Agreements
• EU
• NAFTA
• Acquiring Exposure to Other Cultures
• Country-of-origin Effects

3
Cross-Cultural Consumer Analysis
Research to determine the extent to which
consumers of two or more nations are similar in
relation to specific consumption behavior.
4
Issues in Cross-Cultural Consumer Analysis

• Similarities and Differences Among People
• Time Effects
• The Growing Global Middle Class
• Acculturation
• Research Techniques

5
Table 14.1 Observations on the Differences
Between Japan and American Cultural Traits
JAPANESE CULTURE, TRAITS
AMERICAN CULTURE, TRAITS

• Japanese language

• English language

• Homogeneous

• Diverse

• Harmony to be valued and preserved

• Fight for ones beliefs/positions

• Ambiguous

• Clearcut

• General

• Specific

• Unspoken agreement

• Get the facts straight

• Holdback emotions in public

• Display emotions in public

6
Table 14.1 continued
JAPANESE CULTURE, TRAITS
AMERICAN CULTURE, TRAITS

• Process-oriented

• Result-oriented

• Fun-oriented

• Humor-oriented

• Make a long story short

• Make a short story long

• Nonverbal communication important

• Verbal communication important

• Interested in who is speaking

• Interested in what is spoken

7
Table 14.2 The Pace of Life in 31 Countries
SPEED IS RELATIVE (rank of 31 countries for
overall pace of life and for three measures)
WALKING 60 FEET
OVERALL PACE
PUBLIC CLOCK
POSTAL SERVICE
Switzerland
3
1
1
2
Ireland
1
2
11
3
Germany
5
3
8
1
Japan
7
4
6
4
Italy
10
5
2
12
England
4
6
13
9
Sweden
13
7
7
5
Austria
23
8
3
8
Netherlands
2
9
25
14
Hong Kong
14
10
14
6
8
Table 14.2 continued
WALKING 60 FEET
OVERALL PACE
PUBLIC CLOCK
POSTAL SERVICE
France
8
11
10
18
Poland
12
12
8
15
Costa Rica
16
13
15
10
Taiwan
18
14
21
7
Singapore
25
15
4
11
United States
6
16
20
23
Canada
11
17
22
21
South Korea
20
18
16
20
Hungary
19
19
18
19
Czech Republic
21
20
23
17
9
Table 14.2 continued
WALKING 60 FEET
OVERALL PACE
PUBLIC CLOCK
POSTAL SERVICE
Greece
14
21
29
13
Kenya
9
22
24
30
China
24
23
12
25
Bulgaria
27
24
17
22
Romania
30
25
5
29
Jordan
28
26
19
27
Syria
29
27
27
28
El Salvador
22
28
31
16
Brazil
31
29
28
24
Indonesia
26
30
30
26
Mexico
17
31
26
31
10
Acculturation
The learning of a new foreign culture
11
Table 14.3 The Feasibility of Consumer Telephone
Research in Asia
COUNTRY
FEASIBILITY
Australia
yes
China, Mainland
no, but within five years in big cities
Hong Kong
yes, best method by far
India
yes, for big cities and in English
Indonesia
yes, in Java, Bali and Sumatra
Japan
yes
South Korea
yes
12
Table 14.3 continued
COUNTRY
FEASIBILITY
Malaysia
yes, Peninsula
New Zealand
yes
Philippines
yes
Singapore
yes
Taiwan
yes
Thailand
yes
Vietnam
no
13
Table 14.4 Basic Research Issues in
Cross-Cultural Analysis
FACTORS
EXAMPLES
Differences in language and meaning
Words or concepts may not mean the same in two
different countries.
Difference in market segmentation opportunities
The income, social class, age, and sex of target
customers may differ dramatically in two
different countries.
Difference in consumption patterns
Two countries may differ substantially in the
level of consumption or use of products or
services.
Difference in the perceived benefits of products
and services
Two nations may use or consume the same product
in very different ways.
14
Table 14.4 continued
FACTORS
EXAMPLES
Differences in the criteria for evaluating
products and services
The benefits sought from a service may differ
from country to country.
Differences in economic and social conditions and
family structure
The style of family decision making may vary
significantly from country to country.
Differences in marketing research and conditions
The types and quality of retail outlets and
direct-mail lists may vary greatly among
countries.
Differences in marketing research possibilities
The availability of professional consumer
researchers may vary considerably from country to
country.
15
Alternative Multinational Strategies Global
Versus Local

• Favoring a World Brand
• Adaptive Global Marketing
• Framework for Assessing Multinational Strategies
• Global
• Local
• Mixed

16
World Brands
Products that are manufactured, packaged, and
positioned the same way regardless of the country
in which they are sold.
17
Table 14.5 Advertising to the Worlds Consumers
REACHING PEOPLE (media spending per capita for
top-ranking and bottom ranking countries, 1996)
RANK
COUNTRY
PER-CAPITA MEDIA SPENDING
1
Japan
2,137
2
United States
1,861
3
France
1,845
4
Germany
1,593
5
Netherlands
1,517
6
Denmark
1,504
7
Belgium
1,357
8
United Kingdom
1,286
18
Table 14.5 continued
RANK
COUNTRY
PER-CAPITA MEDIA SPENDING
9
Hong Kong
1,180
10
Australia
1,166
126
Tanzania
4.10
127
Vietnam
2.92
128
Nigeria
2.77
129
China
2.62
130
Laos
0.41
Authors estimates based on various sources.
19
Table 14.6 A Product Recognition Continuum for
Multinational Marketing
FACTORS
EXAMPLES
STAGE ONE
Local consumers have heard or read of a brand
marketed elsewhere but cannot get it at home a
brand is alien and unavailable but may be
desirable
STAGE TWO
Local consumers view a brand made elsewhere as
foreign, made in a particular country but
locally available.The fact that the brand is
foreign makes a difference in the consumers
mind, sometimes favorable, sometimes not.
20
Table 14.6 continued
FACTORS
EXAMPLES
STAGE THREE
Local consumers accord imported brand national
status that is, its national origin is known
but does not affect their choice
STAGE FOUR
Brand owned by a foreign company is made
domestically and has come to be perceived by
locals as a local brand its foreign origins may
be remembered but the brand has been adopted.
Examples are Sony in the U.S., Coca-Cola in
Europe and Japan
STAGE FIVE
Brand has lost national identity and consumers
everywhere see it as borderless or global not
only can people not identify where it comes from
but they never ask this question. Examples
include the Associated Press and CNN news
services, Nescafe, Bayer aspirin.
21
Table 14.7 A Framework for Alternative Global
Marketing Strategies
PRODUCT STRATEGY
COMMUNICATON STRATEGY
STANDARDIZED COMMUNICATIONS
LOCALIZED COMMUNICATIONS
STANDARDIZED PRODUCT
Global strategy Uniform Product/ Uniform Message
Mixed Strategy Uniform Product/ Customized
Message
LOCALIZED PRODUCT
Mixed strategy Customized Product/ Uniform
Message
Local Strategy Customized Product/ Customized
Message
22
Marketing Mistakes A Failure to Understand
Differences

• Product Problems
• Promotional Problems
• Pricing and Distribution Problems

23
Table 14.8 Six Global Consumer Market Segments
SEGMENT NAME
GLOBAL SIZE
DESCRIPTION
Strivers
23
Value wealth, status, ambition, and power, and
products like cellular telephones and computers.
They consider material things extremely important.
Devouts
22
Have more traditional values, like faith, duty,
obedience, and respect for elders. Least involved
with the media and least likely to want Western
brands. Concentrated in the Mideast, Africa, and
Asia.
Altruists
18
Very outer focused--interested in social issues
and cases. Generally well established, older, and
more female than the norm. Found in Russia and
Latin America.
24
Table 14.8 continued
SEGMENT NAME
GLOBAL SIZE
DESCRIPTION
Intimates
15
These are people people, and focus on
relationships close to home, such as spouses,
significant others, family, and friends. Often
found in England, Hungary, the Netherlands, and
the U.S. Very heavy users of media--gives them
something to talk about to others.
Fun Seekers
12
The youngest group. They value excitement,
adventure, pleasure, and looking good, and spend
time at bars, clubs, and restaurants. The group
loves electronic media and is more global in its
lifestyle, especially in music.
Creatives
10
Dedicated to technology, knowledge, and learning,
and are the highest consumers of media,
especially books, magazines, and newspapers
Members of this group are global trendsetters in
owning and using a PC and in surfing the Web.
25
Table 14.9 Eight Socioeconomic-Psychographic
Segments of the Latin American Market

• EMERGING PROFESSIONAL ELITE
• 14 of total occupies top professional executive
  positions
• 51 graduated from university or technical
  college
• 55 are married
• 98 have color TV 96 VCR 97 car 98 credit
  card 90 vacuum cleaner

• TRADITIONAL ELITE
• 11 almost half in top professional executive
  positions
• 53 finished secondary education
• 54 married
• All have color TV 91 VCR 89 car 60 credit
  card 60 vacuum cleaner

• PROGRESSIVE UPPER MIDDLE CLASS
• 13 36 in top or middle management
• 75 studied beyond primary education, 30 studied
  beyond secondary school
• 48 married
• 99 have color TV 77 VCR 74 car 31 credit
  card 30 vacuum cleaner

26
Table 14.9 continued

• SELF-MADE MIDDLE CLASS
• 11 skills gained through entrepreneurship
• Most ended education with primary school,
  virtually none went beyond secondary school
• Half married
• 98 have color TV 72 VCR 81 car 46 credit
  card 51 vacuum cleaner

• SKILLED MIDDLE CLASS
• 9 45 have top operational jobs, 14 own small
  businesses
• 60 completed secondary education 18 completed
  university or technical college
• Half married
• 96 have color TV 60 VCR 28 car 29 credit
  card 32 vacuum cleaner

• SELF-SKILLED LOWER MIDDLE CLASS
• 13 58 employed in operational jobs
• 42 went beyond primary school, 11 went beyond
  secondary education
• Half married
• 97 have color TV 50 VCR 4 car 8 credit
  card none vacuum cleaner

27
Table 14.9 continued

• INDUSTRIAL WORKING CLASS
• 14 a third are in skilled worker positions and
  another third in average operational jobs
• 16 went beyond secondary school, 26 completed
  secondary, 35 complete primary
• 57 married
• 92 have color TV 13 VCR 5 credit card 15
  vacuum cleaner

• STRUGGLING WORKING CLASS
• 15 most in operational, skilled and unskilled
  jobs
• 29 completed primary school, 24 completed
  secondary school
• 53 married
• 63 have color TV no more than 10 have VCR,
  car, credit card, or vacuum cleaner