Chapter 14
Cross-Cultural Consumer
Behavior: An International
Perspective
The Imperative To Be Multinational
• Global Trade Agreements
– EU
– NAFTA
• Acquiring Exposure to
Other Cultures
• Country-of-origin Effects
©2000 Prentice Hall
CrossCultural
Consumer
Analysis
Research to determine the
extent to which consumers
of two or more nations are
similar in relation to specific
consumption behavior.
©2000 Prentice Hall
Issues in Cross-Cultural Consumer
Analysis
• Similarities and Differences Among People
– Time Effects
• The Growing Global Middle Class
• Acculturation
– Research Techniques
©2000 Prentice Hall
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 one’s belief’s/positions
• Ambiguous
• Clearcut
• General
• Specific
• Unspoken agreement
• Get the facts straight
• Holdback emotions in public
• Display emotions in public
©2000 Prentice Hall
Table 14.1 continued
JAPANESE CULTURE, TRAITS
AMERICAN CULTURE, TRAITS
• Process-oriented
• Result-oriented
• Fun-oriented
• Make a long story short
• Humor-oriented
• Make a short story long
• Nonverbal communication
important
• Verbal communication important
• Interested in who is speaking
• Interested in what is spoken
©2000 Prentice Hall
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)
Switzerland
Ireland
Germany
Japan
Italy
England
Sweden
Austria
Netherlands
Hong Kong
OVERALL
PACE
1
2
3
4
5
6
7
8
9
10
WALKING
60 FEET
3
1
5
7
10
4
13
23
2
14
POSTAL
SERVICE
2
3
1
4
12
9
5
8
14
6
PUBLIC
CLOCK
1
11
8
6
2
13
7
3
25
14
©2000 Prentice Hall
Table 14.2 continued
France
Poland
Costa Rica
Taiwan
Singapore
United States
Canada
South Korea
Hungary
Czech Republic
OVERALL
PACE
11
12
13
14
15
16
17
18
19
20
WALKING
60 FEET
8
12
16
18
25
6
11
20
19
21
POSTAL
SERVICE
18
15
10
7
11
23
21
20
19
17
PUBLIC
CLOCK
10
8
15
21
4
20
22
16
18
23
©2000 Prentice Hall
Table 14.2 continued
Greece
Kenya
China
Bulgaria
Romania
Jordan
Syria
El Salvador
Brazil
Indonesia
Mexico
OVERALL
PACE
21
22
23
24
25
26
27
28
29
30
31
WALKING
60 FEET
14
9
24
27
30
28
29
22
31
26
17
POSTAL
SERVICE
13
30
25
22
29
27
28
16
24
26
31
PUBLIC
CLOCK
29
24
12
17
5
19
27
31
28
30
26
©2000 Prentice Hall
Acculturation
The learning of a new
“foreign” culture
©2000 Prentice Hall
Table 14.3 The Feasibility of Consumer
Telephone Research in Asia
COUNTRY
Australia
China, Mainland
Hong Kong
FEASIBILITY
yes
no, but within five years in big cities
yes, best method by far
India
Indonesia
yes, for big cities and in English
yes, in Java, Bali and Sumatra
Japan
South Korea
yes
yes
©2000 Prentice Hall
Table 14.3 continued
COUNTRY
Malaysia
FEASIBILITY
yes, Peninsula
New Zealand
yes
Philippines
yes
Singapore
yes
Taiwan
yes
Thailand
yes
Vietnam
no
©2000 Prentice Hall
Table 14.4 Basic Research Issues in
Cross-Cultural Analysis
FACTORS
Differences in language and meaning
EXAMPLES
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.
Two countries may differ
substantially in the level of
consumption or use of products or
services.
Difference in consumption patterns
Difference in the perceived benefits of Two nations may use or consume the
products and services
same product in very different ways.
©2000 Prentice Hall
Table 14.4 continued
FACTORS
Differences in the criteria for
evaluating products and services
EXAMPLES
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.
©2000 Prentice Hall
Alternative Multinational Strategies:
Global Versus Local
• Favoring a “World Brand”
• Adaptive Global Marketing
• Framework for Assessing Multinational
Strategies
– Global
– Local
– Mixed
©2000 Prentice Hall
World
Brands
Products that are
manufactured, packaged, and
positioned the same way
regardless of the country in
which they are sold.
©2000 Prentice Hall
Table 14.5 Advertising to the World’s
Consumers
REACHING PEOPLE
(media spending per capita for top-ranking and bottom ranking countries, 1996)
RANK
1
2
3
4
5
6
7
8
COUNTRY
Japan
United States
France
Germany
Netherlands
Denmark
Belgium
United Kingdom
PER-CAPITA MEDIA
SPENDING*
$2,137
1,861
1,845
1,593
1,517
1,504
1,357
1,286
©2000 Prentice Hall
Table 14.5 continued
RANK
9
10
126
127
128
129
130
COUNTRY
Hong Kong
Australia
Tanzania
Vietnam
Nigeria
China
Laos
PER-CAPITA MEDIA
SPENDING*
$1,180
1,166
$4.10
2.92
2.77
2.62
0.41
*Author’s estimates based on various sources.
©2000 Prentice Hall
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 consumer’s mind, sometimes favorable,
sometimes not.
©2000 Prentice Hall
Table 14.6 continued
FACTORS
STAGE
THREE
STAGE
FOUR
STAGE
FIVE
EXAMPLES
Local consumers accord imported brand “national
status”; that is, it’s national origin is known but does not
affect their choice
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
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.
©2000 Prentice Hall
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
©2000 Prentice Hall
Marketing Mistakes: A Failure to
Understand Differences
• Product Problems
• Promotional Problems
• Pricing and Distribution Problems
©2000 Prentice Hall
Table 14.8 Six Global Consumer Market
Segments
SEGMENT
NAME
GLOBAL
SIZE
DESCRIPTION
Strivers
23%
Devouts
22%
Altruists
18%
Value wealth, status, ambition, and power, and
products like cellular telephones and computers. They
consider material things extremely important.
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.
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.
©2000 Prentice Hall
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.
©2000 Prentice Hall
Table 14.9 Eight SocioeconomicPsychographic 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
©2000 Prentice Hall
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
©2000 Prentice Hall
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
©2000 Prentice Hall