The Influence of values on New Product adoption : A CrossCultural Study

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Major Consumer Reference Groups
Reference Groups
Individual
Family
Friends
Social Class
Selected Subcultures
One's Own Culture
Other Cultures
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Values and Culture Cross-Cultural Comparisons.
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Are Cultural differences that important in our
modern society ?
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Why Talk about Cultural Differences ?

• ?Differences between national cultures create
  important opportunities for growth and
  development, but also can cause serious problems
  if they are not understood.?
• (Mead 1998)

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Problems
Communication blunders

• When Pepsi started marketing its products in
  China a few years back, they translated their
  slogan "Pepsi Brings You Back to Life" quite
  literally. The slogan in Chinese really meant
  "Pepsi Brings Your Ancestors Back from the
  Grave."

• Clairol, introduced the "Mist Stick", a curling
  iron, in Germany only to find out that mist is
  slang for trash or waste.

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Culture may be thought of as a societys
personality.
It includes both abstract ideas, such as values
and ethics, as well as the material objects and
services, such as automobiles, clothing, food,
artthat are consumed or valued by a group of
people. (Hoyer and McInnis, 2001)
Culture is the accumulation of shared meanings,
rituals, norms and traditions among the members
of an organization or a society. (Schiffman and
Kanuk, 1998)
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Two Images for a Better Understanding of Culture
Culture can be pictured as a pair of glasses
through which people perceive their environment.
Culture and Consumer Behavior can also be
pictured as a two-way street.
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Sources of culture
Language Nationality Education Profession
Group (ethnicity) Religion Family Consumptio
n Social class
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Culture Sharing Values
Every culture is defined by a set of values
shared by its members.
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The Values Transfusion Model
Values of Society
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The Values Transfusion Model
Values of Society
Religious Institutions
Educational Institutions
Early Lifetime Experiences
Family
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The Values Transfusion Model
Values of Society
Religious Institutions
Educational Institutions
Early Lifetime Experiences
Family
Individual Internalized Values
Peers
Media
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The Values Transfusion Model
Values of Society
Religious Institutions
Educational Institutions
Early Lifetime Experiences
Family
Individual Internalized Values
Peers
Media
Society of Future
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The Rokeach Value Survey Instrument
TERMINAL VALUES
INSTRUMENTAL VALUES
A COMFORTABLE LIFE
AMBITIOUS
AN EXCITING LIFE
BROAD-MINDED
A WORLD AT PEACE
CAPABLE
EQUALITY
CHEERFUL
FREEDOM
CLEAN
HAPPINESS
COURAGEOUS
NATIONAL SECURITY
FORGIVING
PLEASURE
HELPFUL
SALVATION
HONEST
SOCIAL RECOGNITION
IMAGINATIVE
TRUE FRIENDSHIP
INDEPENDENT
WISDOM
INTELLECTUAL
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TERMINAL VALUES
INSTRUMENTAL VALUES
A WORLD OF BEAUTY
LOGICAL
FAMILY SECURITY
LOVING
MATURE LOVE
OBEDIENT
SELF-RESPECT
POLITE
A SENSE OF ACCOMPLISHMENT
RESPONSIBLE
INNER HARMONY
SELF-CONTROLLED
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Summary of American Core Values
VALUE
GENERAL FEATURES
RELEVANCE TO CONSUMER BEHAVIOR
ACHIEVEMENT AND SUCCESS ACTIVITY
Hard work is good success flows from hard work
Acts as a justification for acquisition of goods
Keeping busy is healthy and natural
Stimulates interest in products that are
time-savers and enhance leisure time
EFFICIENCYAND PRACTIALITY
Admiration of things that solve problems
People can improve themselves tomorrow should be
better than today. Stimulates desire for new
products that fulfill unsatisfied needs ready
acceptance of products that claim to be new and
improved
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VALUE
GENERAL FEATURES
RELEVANCE TO CONSUMER BEHAVIOR
MATERIAL COMFORT
The good life
Fosters acceptance of convenience and luxury
products that make life more comfortable and
enjoyable
INDIVIDUALISM
Being oneself
Stimulates acceptance of customized or unique
products that enable a person to express his or
her own personality
FREEDOM
Freedom of choice
Fosters interest in wide product lines and
differentiated products
EXTERNAL CONFORMITY
Uniformity of observable behavior desire for
acceptance
Stimulates interest in products that are used or
owned by others in the same social group
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VALUE
GENERAL FEATURES
RELEVANCE TO CONSUMER BEHAVIOR
HUMANITAR-IANISM
Caring for others, particularly the underdog
Stimulates patronage of firms that compete with
market leaders
YOUTHFULNESS
A state of mind that stresses being young at
heart and having a youthful appearance
Stimulates acceptance of products that provide
the illusion of maintaining or fostering
youthfulness
FITNESS AND HEALTH
Caring about ones body, including the desire to
be physically fit and healthy
Stimulates acceptance of food products,
activities, and equipment perceived to maintain
or increase physical fitness
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Example of Value use in Advertising Molson
Canadian
Reinforcement of Nationalism-Patriotism
Survey Product, Communication and
positioning. Canadian difference reinforced.
1-2-3-4-5-6
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American Core Values
American values and advertising
Which core values provide appeals for
advertising? Understanding values helps
advertisers avoid violating norms or standards of
society Sometimes advertisers shock consumers by
breaking the rules
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Symbol
Anything that stands for something else. Symbols
can be verbal or nonverbal.
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Ritual
A type of symbolic activity consisting of a
series of steps (multiple behaviors) occurring in
a fixed sequence and repeated over time.
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Selected Rituals and Associated Artifacts
SELECTED RITUALS
TYPICAL ARTIFACTS
Wedding-2
White gown (something old, something new,
something borrowed, something blue)
Birth of child
U.S. Savings Bond, silver baby spoon
Jogging
Towel, exercise clothes, water, portable tape
player
50th Wedding Anniversary
Catered party, card and gift, display of photos
of the couples life together
Graduation
Pen, U.S. Savings Bond, card, wristwatch
Valentines Day
Candy card, flowers
New Years Eve
Champagne, party, fancy dress
Thanksgiving
Prepare a turkey meal for family and friends
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SELECTED RITUALS
TYPICAL ARTIFACTS
Jogging
Towel, exercise clothes, water, portable tape
player
Sunday football
Beer, potato chips, pretzels
Super Bowl Party
Same as Sunday football (just more)
Starting a new job
Get a haircut, buy some new clothing
Get a job promotion
Taken out to lunch by coworkers, receive token
gift
Retirement
Company party, watch, plaque
Death
Send a card, give to charity in the name of the
deceased
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Classifying and Comparing Cultures
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Cross-Cultural Marketing

• Adaptation
• Local standards
• Local hygiene and safety standards
• Local particuliarities in service, maintenance
  and distribution
• Avoidance of unfavorable image of imported
  products, companies, nationality or brand names
• Cultural adequate use of symbols possible

• Standardization
• Use of
• Experience effects
• Economies of scale
• International standards
• International use of products
• Significant learning effects
• Use of favorable image of imported products,
  companies, nationality or brands, exotic or
  ethnic appeal

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Subculture

• Groups whose members share beliefs and common
  experiences that set them apart from other
  members of a culture
• A distinct cultural group that exists as an
• identifiable segment within a larger,
• more complex society.

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Relationship Between Culture and Subculture
Subcultural Traits of Hispanic Americans
Dominant Cultural Traits of U.S. Citizens
Subcultural Traits of Asian Americans
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Examples of Major Subcultural Categories
CATEGORIES
EXAMPLES
Nationality
French, Puerto Rican, Korean
Religion
Catholic, Hindu, Jew
Geographic region
Southeastern, Midwestern, Eastern
Race
African-American, Caucasian, Asian-American
Age
Y, Xers, middle age, elderly
Gender
Female, Male
Occupation
Engineer, cook, plumber
Social class
Lower, middle, upper
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Lifestyle Studies

• How time is spent
• Importance of things around them
• Beliefs
• Socioeconomic characteristics

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VALS 2 - LIFESTYLE SEGMENTATION So
urce VALS 2, SRI International
Abundant Resources
Principle Oriented
Status Oriented
Action Oriented
Minimal Resources
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VALS 2 - LIFESTYLE SEGMENTATION
Abundant Resources
Principle Oriented
Status Oriented
Action Oriented
FULFILLED11
BELIEVERS16
Minimal Resources
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VALS 2 - LIFESTYLE SEGMENTATION
ACTUALIZERS8
Abundant Resources
Principle Oriented
Status Oriented
Action Oriented
FULFILLED11
ACHIEVERS13
STRIVERS13
BELIEVERS16
Minimal Resources
STRUGGLERS12
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VALS 2 - LIFESTYLE SEGMENTATION
ACTUALIZERS8
Abundant Resources
Principle Oriented
Status Oriented
Action Oriented
EXPERIENCERS12
FULFILLED11
ACHIEVERS13
STRIVERS13
MAKERS13
BELIEVERS16
Minimal Resources
STRUGGLERS12
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Subcultures

• Ethnic Subculture
• The US situation (plurality and main groups)
• Ethnic groups geographically concentrated
• Effect of Immigration
• Major changes

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Intercultural Influence
Individual A
Individual A
Individual A
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U.S. Ethnic Landscape Cues for Reflection
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Source Claritas, 2003
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Targeting Hispanic-American Consumers
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Challenges for Ethnic Marketing in the U.S.

• Privacy and Redlining ethical issues
• Preconceived perceptions of ethnic groups
• Diversity within an ethnic group and constant
  evolution of ethnicity Post Ethnic America.

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Issues in Studying Hispanic American Subcultures

• Hispanic Consumer Behavior
• Stronger preference for well-established brands
• Prefer to shop at smaller stores
• Some are shifting food shopping to non-ethnic
  American-style supermarkets
• Youths are more fashion-conscious

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Ways in Which Hispanic Has Been Defined
NAME OF INDICATOR
NATURE/SCOPE AND COMMENTARY
Spanish surname
Not a definitive since a non-Hispanic person
might have a Spanish surname, or an Hispanic
person might have a non-Spanish surname.
Country of origin
The birthplace of persons born in the Untied
States of Hispanic parents would not reveal their
Hispanic background.
Country of family ancestry
Includes those individuals who may not be
Hispanic despite coming form a particular
Spanish-Latin country.
Spanish spoken at home
A significant minority of Hispanic households may
speak English at home, yet consider themselves to
be cultural Hispanic.
Self-identification
It is reasonable that if an adequate number of
self-report choices are offered, a person might
identify himself or herself as Hispanic.
Degree of identification
This measure captures the degree of personal
identification as Hispanic and augments the
self-identification measure.
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Figure 13.4 Hispanic Linguistic Challenge
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Reaching the African-American Audience

• Two Alternate Strategies
• Running all the advertising in general mass media
• Running additional advertising at special
  advertising in selected media directed
  exclusively to African-Americans

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Asian-American Consumers

• Where Are the Asian-Americans?
• Largely urban
• Asian-Americans As Consumers
• Buying power of 110 billion annually
• Brand loyal customers
• Frequently male-oriented consumer decisions
• Attracted to retailers who welcome Asian-American
  patronage

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Facts and Figures regarding Ethnic Markets
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Facts and Figures regarding Ethnic Markets
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Regional Influences

• Regions Within the United States
• Nine Nations of North America

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Exhibit 13.3a The Nine Nations of North
America Source Journal of
Marketing. Art reprinted by permission.
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Table 13.4 Product Purchase/Usage by Leading
Metropolitan Market
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Major Age Subcultures
Generation X Market
Generation Y Market
Baby Boomer Market
Seniors Market
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Age and Challenges
Age Challenges Implications
Having cool stuff Making friends Fitting in
Rebelling Dating College Job Car Housing and
furnishings Marriage/Committed partner Children Ch
ildren Bigger house and more furnishings Aging
parents Managing time Retirement Managing
health Maintaining social relations
Kids and Tweens Teens Young Adult Middle
Adult Older Adult
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Cohort Effects and Preferences
Depression World War II Post-War Boomers
I Boomers II Generation X Generation Y
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Kids

• Brand Formation
• 98 of kids aged 9-13 know what car they would
  like to drive when they grow up.
• 97 know the best brand of athletic shoe.
• 93 know the best store to buy athletic shoes.
• 90 know the best store to buy clothing with
  sports team logos.
• 84 know the best brand of computer.
• 77 know the best hotel.
• 75 know the best brand of camera.

Source Sports Illustrated for Kids 1997 Omnibus
Studies.
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Kids What Makes A Kid Cool?
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Kids

• 93 of kids between 9 and 13 influence what kinds
  of jeans their parents buy for them.
• 89 influence the kind of cookies, desserts,
  soda, chips and cereal purchased for their
  household.
• 61 of kids said they helped their parents decide
  what kind of family car to buy.
• 41 of kids whose parents bought a new car took
  the kids with them when car shopping.

Source Sports Illustrated for Kids 1997 Omnibus
Studies.
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Love and Generation Y

• Grew up with working mothers, divorce, threat of
  AIDs.
• Searching for a soul-mate.
• 82 of 18-24 say motherhood is the most important
  job in the world, compared to 72 of Generation
  Xers.
• 24 of 18-24 say sex before marriage is not wrong
  at all, compared to 48 of those 45-54.
• Dating Safety trends
• Meeting in coffee bars
• Group dates
• Blockbuster nights
• Finding love online love_at_aol (125,000 ads year
  round, 43,000 from 18-25 year olds?chat rooms?
  go voice? actual meeting)? Cyber Vows chat room
  (reception for the new millennium).

Source Helene Stepinski, Y Not Love, American
Demographics, February 1999.
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Generation Y
Born between 1977 and 1994 also called echo
boomers and millennium generation
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Gen Y Adult Appeal
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Generation X
Born between 1965 and 1979 post baby boomer
segment (also referred to as Xers or busters).
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Baby Boomers
Individuals born between 1946 and 1964
(approximately 45 of the adult population).
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Baby Boomers

• The largest age category alive today
• Frequently make important consumer purchase
  decisions
• Include a small subsegment of trendsetting
  consumers (yuppies) who influence consumer tastes
  of other age segments

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Application

• Sony is introducing a new 27-inch TV with a
  picture-in-picture feature. How should the
  company position and advertise the product to (a)
  generation X consumers and (b) affluent baby
  boomers?
• Ex 1 - 2

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Appealing to Yuppies
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Seniors
Generally older consumers. Consist of
subcultures, including the 50-plus market and the
elderly consumers market.
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Three Senior Subsegments

• The Young-Old (65-74)
• The Old (75-84)
• The Old-Old (85 and older)

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Issues in Understanding Sex as a Subculture

• Sex Roles and Consumer Behavior
• Masculine vs. Feminine Traits
• Sexual Orientation
• Segmentation Issues
• Shopping Patterns

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Religious Subcultures

• 200 organized religious groups in the U.S.
• Primary organized faiths include
• Protestant denominations
• Roman Catholicism
• Judaism or other
• Consumer Behavior is directly affected by
  religion in terms of products that are
  symbolically and ritualistically associated with
  the celebration of religious holidays

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Ad Containing Kosher Indicator
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Subcultures of Consumption
Vert Marketing
Pink Marketing
Sports Marketing
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Application

• Using one of the subculture presented, identify a
  group that can be regarded as a subculture within
  the university. Describe the norms, values and
  behaviors of the subculture members. How would
  marketers reach this group?