Lecture notes

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International Market Communication
Marketing Across Cultures. Chapter 5
Local consumers and the globalization of consumption
Lecture notes
[key notions: consumption fordism, globalization, the utilitarian view,
convergence]
’The central paradox of globalization is the encounter between companies
that are increasingly global and consumers who remain largely local’ (Usunier
2000: 136)
Usunier’s main argument: ‘Consumption styles converge only at a
macroscopic level’. Usunier’s point is that too little emphasis has been put on
studying the details of ‘meaning invested’ by local consumers in the things
and services they buy and in their consumption experiences (ibid.)
A second argument forwarded by Usunier is that there is an apparent trend
toward homogenisation of markets. He suggests three areas to be studied:
1) Globalization of demand (convergence of consumer behaviour and
convergence of marketing environments world-wide)
2) Globalization of supply and competition (progressive shift from domestic
protected industries to global industries). (Trade organizations, etc.)
3) Globalization of products and marketing offerings (treated in chapter 8)
1. Traditional international trade doctrines (Ricardo’s On the
Principles of Political Economy and Taxation (1817) – the law of
comparative advantage => a country that does not produce wine
should buy it from a country with expertise in wine production
because of the comparative advantage of the latter in
International Market Communication
Marketing Across Cultures. Chapter 5
Local consumers and the globalization of consumption
manufacturing the product.) This point of view was utilitarian
(focus on product utility – price and quantity) and the cultural
meaning invested in the products by consumers (quality) was
ignored. (This is a problem with global marketing approaches). –
The corn laws – abolition of trade barriers – opening up of
markets – leading perhaps to job losses. [There seems to be a
clash of interests between cultural diversity and global welfare].
2. The utilitarian view focuses on price, and low-cost arguments are
used (the ideology of ‘standard in the American mind’). Most
authors in the area of international marketing (e.g. Levitt) believe
that differences in national tastes will disappear = a word-view).
(Consumption-fordism = mass consumption of goods) Usunier is
very critical of the utilitarian view. He quotes Czinkota and
Ronkainen (1995, p. 3) who present global preferences as a
simple fact: ‘No longer an alternative, global marketing has
become an imperative for business’. But [Important for
companies to use the competitive parameter of diversity in an age
of standardization].
3. Convergence at the macro-level
Supply has become globalized  (perhaps leading to) globalized
patterns of consumption. Convergence in the following areas:
- demography (age distribution, size of households, more
immigrants)
- sociocultural environment (growing equality between men and
women, more working women, greater health and environment
concerns  a trend towards more femininity)
- consumer behaviour (changing consumption patterns)
International Market Communication
Marketing Across Cultures. Chapter 5
Local consumers and the globalization of consumption
Usunier’s conclusion is that quantitative globalization cannot be
denied, but what is more interesting is that globalization increases
diversity instead of reducing it if the local consumer is taken into
account (2000: 141).
4. Convergence at a micro-level
One study (Eshghi and Sheth (1985) of France, Brazil, Japan the
US hypothesizes that lifestyles variation has greater impact on
consumption patterns than national variation (users versus nonusers; owners versus non-owners of a number of products). But
the influence by lifestyles was not as strong as initially assumed
(although still significant) as national and cultural influences
seemed to determine consumption patterns. Another study
(Zaichkowsky and Sood (1988) suggests that in terms of ‘use’ and
‘consumer involvement’ with a product, consumer globalization
differs according to product/service category. Further studies of
yet other aspects of consumption have demonstrated that ‘the
age of universal marketing is not yet upon us’ as there is
considerable variation from one nation to another (Usunier 2000:
144). However, conclusions on the impact of globalization on
consumption patterns should be drawn with caution because of
the complexity of the area.
5. Is there a global consumer culture?
McDonaldization (builds on three principles 1) the same for
everybody, 2) the same everywhere in the world, 3) the same for
all time. These principles incorporate efficiency, systematic
quantification and calculation, predictability and control through
International Market Communication
Marketing Across Cultures. Chapter 5
Local consumers and the globalization of consumption
the substitution of non-human for human technology.) Examples:
Coca-Cola, McDonald’s.
The emergence of a global ‘modern’ culture (consumption
fordism, high individualism, tightly structured time patterns). The
concept should not be confused with the convergence of local
cultures (e.g. language, writing systems, religions).
6. Concepts/products robust to cultural influence?
Usunier asks the question: ‘what is more culture free and what
more culture bound, in terms of product and service categories on
the one hand, and consumer behaviour on the other?’ The
question here is whether it is at all possible to think of products
that are robust to cultural influence.
Some products are more culture-bound than others (e.g. furniture,
food). Electronic equipment is not culture-bound in western
countries, but in the developing world may be seen as a status
symbol. Usunier (2000: 150) claims that pictures are less culturebound than written linguistic materials, e.g. the IKEA assembling
instructions. Compare, however, the Morsø wood burning stove
brochure.
Non-durable goods are more culture-bound (appeal to tastes,
habits and customs). The same can be said for films, novels and
products that involve a relationship to others (e.g. gifts). Culture
bonds may be studied by making a cultural biography of a
product.
International Market Communication
Marketing Across Cultures. Chapter 5
Local consumers and the globalization of consumption
7. The role of habits in consumer experiences
Habits are central in local consumer behaviour because they
make people’s actions self-evident. Habit is based on what is
common-sensical. Examples: drinking coffee as a social event,
British fire safety systems and beer drinking.
8. Globalization constraints
Consumers are not global themselves, but they prefer cheap,
good-quality products. They are not conscious of buying a global
product. They value individual expression in their purchases.
There has been some resistance to the opening of national
markets through the WTO. (The problem of the third world , e.g.
Nestlé).
A preference for national products in the western world (consumer
ethnocentrism). (This is different in developing countries).
The issue of ‘buy national’ campaigns. (Usunier’s advice is to play
clearly on nationalistic feelings).
9. Conclusions
 Families are likely to be attracted to modern fordist
consumption.
 Some individuals are postmodernist consumers
 Some individuals are critical/political consumers.
International Market Communication
Marketing Across Cultures. Chapter 5
Local consumers and the globalization of consumption
 Marketers are likely to be pragmatic in their marketing
efforts, showing adaptations and flexibility in facing local
consumption.
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