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Cross-Culture

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Title: Cross-Culture


1
Chapter
  • 12

Cross-Culture
Modular Afjal Hossain Assistant
Professor Department of Marketing Patuakhali
Science and Technology University
Schiffman G. Leon Kanuk Lazar Leslie



Consumer Behavior, 8th ed. Ch. 14, p. (471-492)
2
Learning Objectives
  • How cross-culture satisfies international market?
  • How cross-culture is formed?
  • How cross-culture is measured in consumer
    behavior/ selling?

Leon G. Schiffman Leslie Lazar Kanuk Consumer
Behavior 8th edition, Prentice Hall 2006

02
3
Definition
  • Cross-Culture Analysis
  • The culture of two/ more nations. Cross-culture
    consumer analysis is the effort to determine to
    what extent the consumers of two/ more nations
    are similar or different.

Leon G. Schiffman Leslie Lazar Kanuk Consumer
Behavior 8th edition, Prentice Hall 2006

03
4
Basic Research Issues in Cross-Cultural Analysis
  • Difference in language meaning
  • Difference in market segmentation opportunities
  • Difference in consumption patterns
  • Difference in the perceived benefits of products
    and services
  • Difference in economic and social conditions and
    family structures
  • Difference in marketing research and conditions
  • Difference in marketing research possibilities

Leon G. Schiffman Leslie Lazar Kanuk Consumer
Behavior 8th edition, Prentice Hall 2006

04
5
Objectives
  • Similarities and differences among people
  • The greater the similarity between nations, the
    more feasible it is to use relatively similar
    marketing strategies in each nation. On the
    contrary, if the cultural beliefs, values
    customs of specific target countries are found to
    differ widely, then a highly individualized
    marketing strategy is indicated for each country.

Leon G. Schiffman Leslie Lazar Kanuk Consumer
Behavior 8th edition, Prentice Hall 2006

05
6
Objectives
  • Time Effects
  • In USA, 80 of work time spent on task 20 is
    used to social activities.
  • In India/ Nepal, 50 of each.
  • In Japan, social time is having tea with peers
    in the middle of the day.

Leon G. Schiffman Leslie Lazar Kanuk Consumer
Behavior 8th edition, Prentice Hall 2006

06
7
Objectives
  • The growing global middle class
  • Income equivalent to 5,000/yearly is considered
    a middle class people.
  • Acculturation is needed
  • Acculturation is the dual process 1st marketer
    must thoroughly orient themselves to the values,
    beliefs customs of the new society to
    approximately position and market their products.

Leon G. Schiffman Leslie Lazar Kanuk Consumer
Behavior 8th edition, Prentice Hall 2006

07
8
Objectives
  • Acculturation is needed
  • 2nd To gain acceptance for a culturally new
    product in a foreign society, they must develop a
    strategy that encourages members of that society
    to modify or even break with their own
    traditions.
  • But in Saudi Arabia, It is illegal to stop
    people on the streets because most gatherings of
    4/ more people are outlawed.

Leon G. Schiffman Leslie Lazar Kanuk Consumer
Behavior 8th edition, Prentice Hall 2006

08
9
Objectives
  • Applying research techniques
  • Language and/ word usages often differ from
    nation to nation.
  • Another issue is the scales of measurement.
  • In USA, 5/ 7 point scale is adequate but some
    other countries 10/ 20 point scale are used.
  • Research facilities i.e. telephone interviewing
    are not available in some countries.

Leon G. Schiffman Leslie Lazar Kanuk Consumer
Behavior 8th edition, Prentice Hall 2006

09
10
Importance of Cross-Culture
  • To be multinational
  • Now marketing of a product is not limited to
    home country, it goes to other countries for
    their future growth.
  • Acquiring exposure to other countries
  • Consumers obtain a taste of different cultures
    from contact with foreign movies, theater, art
    and artifacts, through travel, living and working
    in foreign countries or even by immigration.
  • Country of origin effects
  • Many consumers associate France with wine,
    fashon clothing and perfume, whereas Italy with
    pasta, furniture, shoes sports. Japan with
    camera and China with consumer electronics.

Leon G. Schiffman Leslie Lazar Kanuk Consumer
Behavior 8th edition, Prentice Hall 2006

10
11
Importance of Cross-Culture
  • Examples
  • NAFTA (North American Free Trade Agreement)
    consisting of USA, Canada Mexico provides free
    market access to these countries people.
  • ASEAN (Association of South-East Asian Nations)
    consisting of Indonesia, Singapore, Thailand, The
    Philippines, Malaysia, Brunei and Vietnam also
    provides free market access to these nations.

Leon G. Schiffman Leslie Lazar Kanuk Consumer
Behavior 8th edition, Prentice Hall 2006

11
12
Alternative Multinational Strategies
  • Global vs Local
  • segment whether by shared needs and values or
    by national borders
  • Favoring a world brand
  • world brand products are manufactured, packaged
    positioned in exactly the same way for each
    country they are sold. Ex Pantene Olay oil are
    the 2 major world brand of Procter Gamble.
  • Adaptive Global Marketing
  • Ronald McDonald has been renamed Donald McDonald
    in Japan because The Japanese language does not
    contain the letter R.

Leon G. Schiffman Leslie Lazar Kanuk Consumer
Behavior 8th edition, Prentice Hall 2006

12
13
Framework for assessing multinational strategies
Product Strategy Communication Strategy Communication Strategy
Product Strategy Standardized Communication Localized Communication
Standardized product Global Strategy Uniform product/ Uniform message Mixed Strategy Uniformed product/ Customized message
Localized product Mixed Strategy Customized product/ Uniform message Local Strategy Customized product/ Customized message
Leon G. Schiffman Leslie Lazar Kanuk Consumer
Behavior 8th edition, Prentice Hall 2006

13
14
Framework for assessing multinational strategies
  • When looking for success in a foreign market, it
    has been suggested that a company shuld remember
    3 Ps
  • Product
  • Place
  • People

Leon G. Schiffman Leslie Lazar Kanuk Consumer
Behavior 8th edition, Prentice Hall 2006

14
15
Degree of fit between marketing strategies and 3
Ps
3 Ps Marketing strategies Marketing strategies Marketing strategies
3 Ps Specific Elements Standardization Localization
Product Technology Culture bound Reputation Product perception High Low Sterling High Low High Poor or unknown Low
Place Economy Partners Competition Prosperous Few Low Struggling Plentiful Intense
People Tastes Sophistication Segments Classification Little preference High Few Industrial/ Consumer durables High preference Low Many Consumer nondurables
Leon G. Schiffman Leslie Lazar Kanuk Consumer
Behavior 8th edition, Prentice Hall 2006

15
16
Cross-Cultural Psychographic Segmentation
  • There are 6 psychographic segmentation variables
    are

Segment Name Descriptions
Strivers They consider material things extremely important i.e. value wealth, status, ambition, and power. Ex Computers
Devout Have more traditional values like faith, duty, obedience and respect. Least involved in media/ western brands.
Altruists Interested in social issues and causes. Generally well educated older (median age 44) i.e. Russia Latin America
Intimates They are focused on relationship close to home i.e. spouses, family or friends. Heavy users of media/ talking with others.
Fun Seekers Youngest group. They value adventure, excitement, pleasure etc. They are focused on electric media (music).
Creative Dedicated to technology, knowledge learning from books, magazines newspapers.
Leon G. Schiffman Leslie Lazar Kanuk Consumer
Behavior 8th edition, Prentice Hall 2006

16
17
Marketing Mistakes
  • Product Problems
  • Different country has different choices. Ex
    Japan consumers preferred clearer, les sweet iced
    tea.
  • The same color often has different meanings in
    different cultures.
  • Ex Blue Holland (warmth) Iran (death) India
    (purity)

Leon G. Schiffman Leslie Lazar Kanuk Consumer
Behavior 8th edition, Prentice Hall 2006

17
18
Marketing Mistakes
  • Promotional problems
  • Promotional message must be consistent with the
    language and customs of the particular target
    society.
  • The word clock in Chinese sounds like the word
    death

Leon G. Schiffman Leslie Lazar Kanuk Consumer
Behavior 8th edition, Prentice Hall 2006

18
19
Marketing Mistakes
  • Pricing Distribution problems
  • Japan products will be value less if there are
    not sufficient middle men because to reach the
    products to the consumer they use a lot of middle
    men.
  • But USA just opposing Japan.

Leon G. Schiffman Leslie Lazar Kanuk Consumer
Behavior 8th edition, Prentice Hall 2006

19
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