CHAPTER 8 CONSUMER CULTURE WHAT DO YOU THINK POLLING QUESTION Men should always pay for their date’s dinner. Strongly disagree 1 2 3 4 5 6 7 Strongly agree Have students access www.cengagebrain.com to answer the polling questions for each chapter of CB. Ask them to take the online poll to see how their answers compare with other students taking a consumer behavior course across the country. Then turn to the last page of the chapter to find the What Others Have Thought box feature. This graph is a snapshot of how other consumer behavior students have answered this polling question thus far. LEARNING OUTCOMES After studying this chapter, the student should be able to: L01 Understand how culture provides the true meaning of objects and activities. L02 Use the key dimensions of core societal values to apply the concept of cultural distance. L03 Define acculturation and enculturation. L04 List fundamental elements of verbal and nonverbal communication. L05 Discuss current emerging consumer markets and scan for opportunities. SUGGESTED LECTURE OPENER In order to tap into one of the hottest emerging consumer markets, Western marketers must tap into the culture of China. One question marketers must consider is whether companies should try to localize their brands in Chinese consumers’ minds, or if brands should maintain their Western messaging. The answer for now seems to be, “both.” Companies should adjust brand messages in order to gain access to the Chinese consumer culture while holding on to the positive associations that are often linked to western products, such as quality and safety. [Source: Joel Backaler. “Inside China’s Consumer Culture,” Forbes.com, August 12, 2010, http://blogs.forbes.com.] LECTURE OUTLINE WITH POWERPOINT® SLIDES Slide 1 Slide 2 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1 LO1. Understand how culture provides the true meaning of objects and activities. Culture and Meaning Are Inseparable Slide 3 Grandé doppio latté, please! What language is this? A consumer can use this expression in more than two dozen countries and get exactly what he or she wants with no translation. The chapter opens with a Starbucks example and how a cup of coffee is translated into many cultures around the world. The key to Starbucks’ success is to understand the impact of culture. Q: Ask students what they think about Starbucks’s strategy for entering the market in China. A: Answers will vary. Differences in cultures and markets can be further introduced. What Is Culture? Culture embodies meaning. Consumer culture can be thought of as commonly held societal beliefs that define what is socially gratifying. Some consumers believe that providing coffee to a child is unacceptable. To other consumers, however, this behavior is seen as normal. It is culture that shapes the value of most products. Culture is a universal phenomenon. Culture is everywhere and ultimately explains the habits and idiosyncrasies of all groups of consumers. In fact, each consumer belongs to many cultural groups. Exhibit 8.1 shows how behavior can have multiple meanings that are each dependent on culture. Slide 4 Slide 5 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Culture, Meaning, and Value Culture performs important functions for consumers that shape the value of consumer activities. These functions include the following: 1. Giving meaning to objects – Consider the degree to which culture defines the meaning of food, religious objects, and everyday items, such as furniture. For instance, in Japan, refrigerators are tiny by most Western standards. 2. Giving meaning to activities – Consider the role of events that are as simple as recreational activities and even personal hygiene. A daily shower is not a universally accepted norm. 3. Facilitating communication – The shared meaning of things facilitates communication. When strangers meet, culture indicates whether a handshake, hug, or kiss is most appropriate. Things as simple as making eye contact can take on dramatically different meanings from one culture to another. Without culture, consumers would have little guidance as to the appropriate actions in many common consumer situations. Slide 6 Cultural Norms Cultural norms refer to rules that specify the appropriate behavior in a given situation within a specific culture. Most, but not all, cultural norms are unwritten and are simply understood by members of a cultural group. As an example, a consumer in Korea is not expected to pour a drink for himself when out in a bar or restaurant with friends or family. The cultural norm is that one pours a drink for friends and family while waiting for someone else to pour a drink for you. In this way, the consumer has performed a socially rewarding (valuable) act consistent with the norms of that society. Cultural Sanctions Cultural sanctions refer to the penalties associated with performing a nongratifying or culturally inconsistent behavior. Cultural sanctions are often relatively innocuous. An extreme example of a cultural sanction is physically or socially harming a family member for fraternizing beyond one’s cultural group. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3 Slide 7 Popular Culture The popular culture captures cultural trends and also shapes norms and sanctions within society. Today, pop icons such as Lady Gaga or Taio Cruz help determine acceptable styles for many groups of admirers who desire to fit in with today’s popular culture. Role Expectations Role expectations refer to the specific expectations that are associated with each type of person within a culture or society. Exhibit 8.2 provides some other examples of cultural role expectations. Slide 8 Q: Corporations must be culturally sensitive toward people living in different societies. How do you think corporations can avoid making cultural mistakes? Research the Internet to find real-life examples of ways in which companies have adapted to different cultures. A: Some popular examples include McDonald’s, Starbucks, and KFC. LO2. Use the key dimensions of core societal values to understand the concept of cultural distance. Using Core Societal Values ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4 Slide 9 Where Does Culture Come from? Cultural beliefs define what religion is acceptable, what type of art and recreation are preferred, what manners are considered polite, and the roles for different types of individuals, including expectations for men and women in society. How do people in one nation end up with a culture distinct from people in another? In other words, what causes culture? The answer is based on two components: 1. Ecological factors – The physical characteristics that describe the physical environment and habitat of a particular place. Examples include living near a desert or ocean. 2. Tradition Refers to the customs and accepted ways of structuring society, such as family and political structures. In the United States, Australia, Canada, and much of Europe, families traditionally consist of two generations (parents and children) living in a household where a husband and wife share decision making. Slide 10 Q: Ask students to discuss their family traditions and where they originated. Have their traditions changed over the years? A: Answers will vary. Dimensions of Cultural Values The most widely applied dimensions are those developed by Geert Hofstede.1 This theory of value-based differences in cultures is based on five key dimensions, with each dimension 1 See Hofstede, Geert (2010). http://www.geert-hofstede.com/geert_hofstede_resources.shtml for an overview. Accessed August 3, 2010. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 representing a core societal value. Core societal values (CSV), or cultural values, represent a commonly agreed upon consensus about the most preferable ways of living within a society. Exhibit 8.3 shows how core societal values serve as the mechanism by which culture affects value. Cultural values can be categorized using the following dimensions: 1. Individualism As a CSV, individualism means the extent to which people are expected to take care of themselves and their immediate family. 3. Masculinity As a CSV, this dimension captures distinctions existing in societies based on mannerisms typically associated with male traits, such as valuing assertiveness and control over traditional feminine traits like caring, conciliation, and community. 2. Power Distance The extent to which authority and privilege are divided among different groups within society and the extent to which these facts of life are accepted by the people within the society. 4. Uncertainty Avoidance A culture high in uncertainty avoidance is uncomfortable with things that are ambiguous or unknown and prefer to play it safe. 5. Long-Term Orientation Reflects values consistent with Confucian philosophy and a prioritization of future rewards over short-term benefits. Slide 11 Have students discuss their thoughts on astrology. Can astrology reduce uncertainty avoidance? Uncertainty avoidance has important implications for consumer behavior, because marketing success and improved quality of life often depend on obtaining value from something innovative and, therefore, somewhat unfamiliar. The CSV Scoreboard A CSV scoreboard can be constructed using historical CSV dimension scores found in many resources, including the Hofstede website at www.geert-hofstede.com. BRIC BRIC refers to the collective economies of Brazil, Russia, India, and China, which are now widely accepted as emerging economies. Exhibit 8.4 depicts a CSV scoreboard for a few select nations. Brazil, Russia, India, and China represent widely accepted emerging economies. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6 CSV Leaders Among all nations with CSV scores, Austria has the lowest power distance scores, and Malaysia has the highest. The United States has relatively low power distance with only 15 nations reporting lower scores. Slide 12 Cultural Distance Cultural distance represents how disparate one nation is from another in terms of their CSVs. With this approach, consumers can be compared by using scores available in a CSV scoreboard. For example, Exhibit 8.5 demonstrates the difference scores for all nations depicted in the CSV scoreboard compared with the United States. The term CANZUS is sometimes used to refer to the close similarity in values between Canada, Australia, New Zealand, and the United States. Slide 13 Slide 14 LO3. Define acculturation and enculturation. How Is Culture Learned? Slide 15 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 7 Culture is a learned process. Consumers learn culture through one of two socialization processes discussed in the following sections. Socialization involves learning through the observation and active processing of information about lived, everyday experience. Slide 16 Enculturation Enculturation represents the way in which a person learns the native culture as well as the way in which a consumer learns and develops shared understandings of things with his or her family. Acculturation Acculturation is the process by which consumers come to learn a culture other than their natural, native culture—that is, the culture to which one may adopt when exposed to a new set of CSVs. Exhibit 8.6 illustrates factors that either inhibit or encourage consumer acculturation. Several factors affect acculturation: 1. Ethnic identification – Ethnic identification is the degree to which a consumer feels a sense of belonging to the culture of their ethnic origins. The strength of this identification can make consumers feel close-minded about adopting products from a different culture. 2. Consumer ethnocentrism – Consumer ethnocentrism is a belief among consumers that their ethnic group is superior to others and that the products coming from their native land are superior to other products. Slide 17 Quartet of Institutions A quartet of institutions is responsible for communicating CSVs through both formal and informal processes from one generation to another. The four institutions comprising the quartet are the following: 1. Family Primary 2. School Primary ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 3. Church Primary 4. Media Secondary Children who watch more television than others become acculturated to the consumer society and are more materialistic than children who view less television. Internet Censorship – Somebody’s Watching Me Some governments believe media can affect the core societal values of consumers. Censhorship of Internet sites has caused problems for Google, Microsoft, and Yahoo! A search engine from China, Baidu, has grown in popularity in China since it participates in censorship without the disclaimers other companies use. Slide 18 Culture and Policy-Related Consumer Communication Differences in CSVs may have public policy implications. Modeling Modeling is a process of imitating another person’s behavior. Adolescents tend to model the behavior of those they aspire to become. Consumers model each other, particularly for novel products like the vuvuzela that became popular during the 2010 World Cup. See Exhibit 8.8 for ways that institutions facilitate modeling. Shaping Shaping is a socialization process by which consumer behaviors slowly adapt to a culture through a series of rewards and sanctions. Slide 19 Slide 20 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9 LO4. List fundamental elements of verbal and nonverbal communication. Verbal Communication Slide 21 Verbal communication refers to the transfer of information through either the literal spoken or written word. Marketers have long wrestled with the problem of translating advertisements, research instruments, product labels, and promotional materials into foreign languages to compete for foreign markets. One major difficulty involves dialects, which are variations of a common language. Almost every language is spoken slightly differently from place to place. Exhibit 8.9 provides some examples of difficulties in communicating even simple ideas through the spoken or written word. Slide 22 Slide 23 Translation Equivalence A translation equivalence exists when two phrases share the same precise meaning in two different cultures. With this process, one bilingual speaker takes the original phrase and translates it from the original language into the new language. Then, a second, independent bilingual speaker translates the phrase from the new language back into the original language. Metric Equivalence Metric equivalence refers to the state in which consumers use numbers to represent quantities in the same way across cultures. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 10 Slide 24 Nonverbal Communication Nonverbal communication refers to information passed through some nonverbal act or communication that does not involve the literal spoken or written word. Exhibit 8.10 depicts several aspects of nonverbal communication and the way in which they come together to create effective communication. Slide 25 Share with students some famous marketing blunders due to translation issues by using the following website: http://www.brandchannel.com/features_effect.asp?pf_id=243. Ask students what they would do to avoid such costly mistakes. Most will recognize that translation errors occur when companies try to save money or are rushed to meet deadlines. Time In America, the expression “time is money” is often used. Americans typically place a high value on time and timeliness. Consumers from other cultures do not value timeliness in the same way. Mannerisms/Body Language Body language refers to the nonverbal communication cues signaled by somatic (uncontrollable biological) responses. The mannerisms that reveal meaning include the following characteristics: Facial expressions Posture Arm/leg position Skin conditions ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11 Voice Space The value that consumers place on space varies in importance depending on which country you call home. Etiquette/Manners Etiquette represents the customary mannerisms that consumers use in common social situations. Dining etiquette varies considerably from one culture to another. When consumers are unaware or lack concern for the proper etiquette in a given situation, consumers and the service provider may both suffer. Relationships How do consumers respond to attempts by marketers to build a personal relationship? Marketing appeals aimed at building personal relationships should emphasize the collective preference of the group rather than the individual. Agreement How is agreement indicated, and what does it mean? Marketers must be aware of the meaning of agreement in different cultures. In South Korea, a contract is a foreign concept, and it might be seen as an insult to use one. Symbols Because cultures have different value profiles, objects and activities take on different symbolic or semiotic meaning from culture to culture. A cross might mean a device with which to execute people in some cultures, but the cross is a symbol of everlasting life to Christians. In pairs, have students use body language to express an idea. Discuss whether the partners could figure out what the other person was trying to tell them. How could they have communicated better? LO5. Discuss current emerging consumer markets and scan for opportunities. Emerging Cultures Slide 26 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12 BRIC stands for Brazil, Russia, India, and China. These four nations are often singled out as having economies that are growing very rapidly. Chindia refers to the combined market and business potential of China and India. Just over 1 billion consumers live in India. The largest group of consumers in India is between 12 and 20 years old. Slide 27 Exhibit 8.11 displays the most attractive national consumer markets. While countries such as the United States, the United Kingdom, and Germany have long been recognized as important consumer markets, many nations on this list are emerging in the sense that they would not have been considered leading consumer markets a decade or two ago. Slide 28 Glocalization Glocalization represents the idea that a marketing strategy may be global, but the implementation of that strategy at the marketing tactics level should be local. What’s Next? The advancement of free market economies has led to increased standards of living in many corners of the globe. Cultural barriers go beyond dealing with consumers and are also engrained in the sociopolitical environment. Therefore, changes in government institutions are likely needed before many companies will feel comfortable doing business around the world. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13 Slide 29 VIDEO CLIP PowerPoint Clip from Raleigh America Run time 1:33 minutes Slide 30 Raleigh Bicycle is a bicycle manufacturing company founded in 1887 in Nottingham, England. When the “Lance Armstrong effect” towards lighter, faster bikes began to dominate the cycling market, Raleigh needed a way to differentiate its products. Historically Raleigh is known for producing a sturdy, all-steel frame bicycle. To compete in today’s market Raleigh relied on the culture of its European consumers as well as the messenger cyclists here in the states. The result is a return to the steel-frame lifestyle bicycle for the U.S. market that stands out in a sea of training cycles and meets the needs of an emerging market. Ask your students: 1. How does Raleigh use its knowledge of existing consumer cultures to adapt and market a competitive product? Answer: Raleigh looked to the organic lifestyle use of European cyclists as well as the increasingly popular U.S. culture of bicycle messengers to understand and predict a culture of consumers who embody both traits. 2. How does Raleigh’s steel-frame bicycle translate into value for their target consumer? Answer: Consumers who are interested in cycling for commuting or recreational purposes over training and speed are likely to be interested in a stronger more traditional frame over a lightweight road bike’s frame. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14 END OF CHAPTER MATERIAL ONLINE CASE ANSWERS Visit www.login.cengage.com to access the online case studies for CB. 1. According to the text, consumer culture is defined as the commonly held societal beliefs that define what is socially gratifying. How does this case defy commonly held societal beliefs in American consumer culture? What CSV dimensions are most involved? Answer: Al Pratt is single and lives alone, which plays into the CSV dimension of individualism-collectivism. In a society that prizes individualism, American culture actually rewards couplehood by making it far easier for married individuals to navigate the marketplace, particularly as it pertains to behaviors that are commonly associated with families and/or groups of people, such as grocery shopping. Secondly, Al Pratt is a man who is involved in grocery shopping, which engages the dimension of masculinityfemininity. Typically, men are viewed as “fill-in” shoppers within American culture who simply add to the shopping performed by their wives or significant others. In short, the typical grocery shopper is often viewed as “Mom.” Al, on the other hand, is the primary shopper in his household and must navigate a grocery store that is tailored both for women and for families. 2. Imagine yourself as the store manager of the grocery store where Al is shopping. How might you address his needs and the needs of the growing numbers of singles without compromising the needs of the families that also shop at your store? Answer: You could offer rain checks on buy-one-get-one-free coupons that would allow the consumer to buy an item now and then get the free item at a later date and time. Secondly, you could create an aisle in the store that is tailored toward singles, providing smaller, portion-sized items in one location so that they do not necessarily have to wander through every aisle. This type of aisle arrangement would make it easier for people who wish to avoid wasting time and effort in the grocery store. In the deli section, you could make sure that more single-serving preparations are available for single people who live alone. You could suggest to certain manufacturers that smaller portion sizes might be a way to capture this emerging market. You could even host a singles cooking/shopping event where single people who live alone can come together, share the expenses of purchasing ingredients, and either divvy up those ingredients amongst themselves or cook up meals in the store and share the finished meals. 3. What problems directly related to socialization and culture do you see within this case? Answer: Most of us learn how to shop for groceries in households that have more than one person in them, so we learn how to buy for families. Single people may have to unlearn how to shop in the grocery store because buying for families might produce a great deal more waste than they are willing to deal with. This raises the following question: How does someone learn to shop for only one person? Furthermore, because American culture assumes that women are the primary grocery shoppers, how does Al learn how to shop when he most likely was not taught how to shop by his mother? ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 15 4. What other emerging markets can you think of that may need to be addressed by grocery stores? How might they best address these markets? Answer: There are any number of emerging markets that grocery chains might face. Among them is the variety of different household types that dot the social landscape in America including single-father families, commuter households, nonfamily households, and other households that do not follow the traditional notion of the nuclear family of mom, dad, and a few kids. Each of these types may have different needs in terms of serving needs and even food needs. Additionally, grocers have ample opportunities to address various ethnic and national markets as well. With the globalization of the market, grocers may find that they are in a position to distinguish themselves in a variety of ways. For example, the grocery store may create individual “boutiques” that address the needs of various cultural groups. Instead of creating a single aisle that contains all of the ethnic foods in one basic section, why not try creating a boutique for each of the prominent cultural groups in the area? For instance, there would be an Asian boutique that not only contained items considered to be Asian, but also contained basic staples important to that cultural group, such as rice and various vegetables. The same boutiques could be created for other cultural groups as well, essentially dividing the grocery store into various mini-stores that cater to the needs of a larger percentage of the population. REVIEW QUESTIONS (*) Indicates material on prep cards. 1. [LO1] Define culture from a consumer behavior viewpoint. Answer: Consumer culture can be thought of as commonly held societal beliefs that define what is socially gratifying. Culture shapes value by framing everyday life in terms of these commonly held beliefs. 2. [LO1] Culture affects the value of consumer behaviors. Consider the differences in American consumers versus Chinese consumers. Contrast the value that consumers in these countries might typically desire in the following products: Automobiles Rolex watch Notebook computer Ruth’s Chris Steak House Blackberry Torch mobile device Answer: There are no right or wrong answers to these examples. The focus of this question is to prompt students to think about different cultures and how those cultures might use products similarly or differently than the students. It’s good if students think in terms of whether the primary motivation is utilitarian or hedonic value. Later in the chapter, these can be revisited in terms of CSVs. The following are some example responses. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16 Product United States China Automobiles Expression of individual; provides hedonic value through experience and status. Way to gain acceptance from others and provide transportation for friends/family; can be status symbol as well; utilitarian value emphasized. Rolex Expression of individual status and achievement; hedonic value emphasized. Expression of status within group; hedonic value (more intricate point is that it provides utilitarian value as a way of gaining recognition). Notebook computer Primarily a tool for work; utilitarian value emphasized. Can be used for work, but also as an important mechanism for communicating with others; can also provide status; utilitarian value emphasized. Ruth’s Chris Steak House Pleasant and intimate dining experience; hedonic value emphasized. True luxury product, but perhaps also a tool for building business relationships, particularly with westerners; in the latter case, utilitarian value emphasized. Blackberry Torch Mobile Device Tool for work and communication; leans toward more utilitarian value. Tool for staying in contact with one’s primary groups. Leans toward utilitarian value but slightly more hedonic value than among Americans. 3.* [LO1] In what 3 ways does culture shape value for consumers? Answer: 1) Gives meaning to objects; 2) Gives meaning to activities; 3) Facilitating communication. 4. [LO1] Define cultural norms and cultural sanctions. Suppose an American student is invited to study in South Korea. How might norms and sanctions help the student understand how to behave in common consumer situations, such as in a restaurant or on a break from studies? Answer: Norms are rules that specify appropriate behavior in situations, and sanctions are penalties for not conforming to those norms. The consumer will receive gratifying responses when behavior is consistent with the norms and perhaps strange looks, silence, comments, or even a direct acknowledgement of an offense when behavior goes against the norms. Thus, by reward or by punishment, the consumer will learn. 5. [LO1] Define role expectations. How does pop culture influence role expectations? Role expectations – the specific expectations that are associated with each type of person within a culture or society. Pop culture sends signals about the way people of certain types should behave. A “cool kid” may be expected to behave in the same manner of a pop celebrity or face sanctions from his or her so-called “cool” friends. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17 6.* [LO2] List and briefly describe each of the five dimensions of CSVs. Answer: The five dimensions are as follows: Power distance – Degree to which social classes are distinct and norms of behavior are assigned based on class. Individualism – Extent to which individual consumers are expected to take care of (and achieve for) themselves and their immediate family. Masculinity – Extent to which consumers in this society display traits associated with males, such as assertiveness or aggressiveness. Uncertainty avoidance – Extent to which consumers avoid things that are ambiguous or unknown; alternatively, the extent to which consumers like to know or be provided with information that spells out exactly how a person should act in a situation. Long-term orientation – Prioritization of future rewards over present gains. 7. [LO2] Using the Hofstede website discussed in the chapter, compute the cultural distance between the United States and Mexico. Then, compute the cultural distance between the United States and Ireland. (Note: Mexico and Ireland are rated on only four dimensions, so there is no LTO score.) Answer: United States and Mexico = 84 (if you plug in the average LTO score of 45 for Mexico, which is not rated on this dimension by Hofstede). If you do the calculation without this dimension, the distance score would be 82. (Scores for Mexico = 81, 30, 69, 82 for pd, indv, mas, and ua.) United States and Ireland = 32 (if you plug in the average LTO score of 45 for Ireland, which is not rated on this dimension by Hofstede). If you do the calculation without this dimension, the distance score would be 27. (Scores for Ireland = 28, 70, 68, 35 for pd, indv, mas, and ua.). This activity makes the point that, although Ireland may be further from the United States than Mexico, it is closer in terms of the cultural distance. The calculation is illustrated in Exhibit 8.5. 8. [LO2] Assuming an American retailer is considering opening an electronics store, would you recommend Mexico or Ireland as a more attractive foreign market? Answer: As long as the cost of transportation is not radically less in Mexico than in Ireland, Ireland appears the better market for a successful U.S. product based on the CSV proximity. 9. [LO3] What does the term consumer socialization mean? In what ways do consumers become socialized to behavior in a given culture? Answer: Consumer socialization refers to consumers learning through observation and the active processing of information about lived, everyday experience. The two ways that consumers become socialized are through enculturation, which is learning a native culture, and through acculturation, which is learning a new culture. 10. [LO3] Describe the socialization processes that have shaped your current food preferences as a consumer. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 18 Answer: This discussion question has no right or wrong answers. Students may talk about how the diet to which they were enculturated as a child has changed as they became acculturated to new experiences when they went off to college. 11. [LO4] What are the basic elements of nonverbal communication? Answer: The basic elements are as follows: Time Mannerisms/body language Space Etiquette/manners Agreement Relationships Symbols 12. [LO4] For the following societies, do you believe that verbal or nonverbal communication is more important? Answer: This activity allows students to examine whether a culture is a high- or lowcontext culture. The chapter mentions Asian cultures as high context, while cultures such as Germany and Scandinavia are considered to be low context. Hawaiian culture – Hawaii leans toward a high-context culture, so nonverbal communication may be slightly more important (due to the Asian influence). Canada – Canada is a low-context culture (Quebecois/French-Canadian may be a more high-context culture than the rest of Canada), so verbal communication is more important. Indonesia – Indonesia is a high-context culture, so nonverbal communication is key. Australia – Australia is a relatively low-context culture, so verbal communication is key. Mexico – Mexico is a high-context culture, so nonverbal communication is important. Nigeria – Nigeria is a high-context culture, so nonverbal communication is important. 13. * [LO5] What is meant by glocalization? Answer: Glocalization represents the idea that marketing strategy may be global, but the implementation of that strategy at the marketing tactics level should be local. 14. [LO5] What countries are involved in the BRIC report? Answer: The countries include: Brazil Russia India China ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 19 INTERACTIVE/APPLICATION EXERCISES 15.* Design an advertisement that intends to communicate the benefits of a facial cream to family skin care for each of the following consumer markets. Consider the relative role of verbal and nonverbal communication in doing so. Germany Egypt Japan Israel New Zealand Answer: In this activity, look for students to rely more on printed copy in the countries that place high importance on verbal communication and to place more emphasis on nonverbal elements in other cultures. Therefore, for Germany, Israel, and New Zealand, verbal elements should perhaps be emphasized highly relative to the other cultures. 16. [ETHICS] Use the Internet to find the consumer corruption indices for various nations (see www.transparency.org). Why do these values differ so greatly from nation to nation? How would this factor into the idea of cultural distance? Do you believe it would be ethical to do business in one of the more traditionally corrupt nations, such as Russia or Nigeria? Answer: This question should generate discussion. Relate the corruption scores to the value profiles for each nation. The question of ethics is a tricky one. If doing business there would require employees to be unethical or participate in unethical actions, then the case can be made that a company should not do business there so that employees would not become acculturated to unethical business practices. However, if business can be conducted without compromising the values held by the company within its home country, then the case can be made that doing business in unethical places is justified. 17.* Interview a fellow student who is from a culture other than your own. How does this student view the dimensions of CSV (individualism, masculinity, power distance, uncertainty avoidance, long-term avoidance)? How have these dimensions affected the student’s behavior since arriving in your country? Were you aware of the importance of these dimensions in the student’s life? What major cultural differences has the student noticed since arriving in your country? Answer: This question should generate discussion about the dimensions of CSVs as well as key terms such as socialization, modeling, acculturation, and the quartet of institutions. 18. View a popular foreign movie. What consumer behavior differences do you observe in the culture that you are witnessing? Do you observe differences between your culture and the culture in the movie in terms of nonverbal communication? Sex roles? Individual or collective attitudes? Answer: This question has similar aims to Question 16. The values depicted in the movie can perhaps be contrasted with those of the native culture. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 20 GROUP ACTIVITY Ask someone from the international department at a nearby university to visit your classroom, or have an international student pay a visit so that students can experience consumer culture. Have the student or representative discuss Exhibit 8.1 on culture, meaning, and value. This activity allows students to understand the impact of marketing in cultures around the world. This activity could end up as a panel discussion if two or more students hail from other countries. Students could prepare questions about food, colors, customs, and etiquette to learn directly from the international students on campus. This activity helps break down any barriers that some students feel because many are unsure of how to approach each other. This activity tends to give introverted students a chance to engage with other talkative students. If you have a large classroom, this activity can be completed as a homework assignment and then experienced as an in-class discussion if time permits. CHAPTER VIDEO CASE To view the video case Method-Global Beginnings, go to the CB companion website login.cengage.com to select this video.2 In the twenty-first century, startups can become global businesses much faster than in anytime in history. So, while new companies are forging their way domestically, they may also experience an added layer of challenges from trying to enter global markets at the same time. In this final video segment on method, founder Eric Ryan and CEO Alastair Dorward describe their company’s perspective on global expansion and which foreign markets represent good opportunities for method. Ask your students: 1. Is Method a multinational company? Explain. Answer: With strategic partners in the UK and Canada, method is indeed an international company, in stage one of becoming a multinational company (that is, method operates in the U.S. and sells into Canada and the UK.) 2. Which environmental factors facing all global marketers is Method confronting as it begins to expand into foreign markets? Answer: Technological development in the UK in its attempts to have its products bottled there. The economic development, culture, and demography of some international markets make it less feasible to consider marketing it products there. 3. Outline Method’s global marketing mix. Answer: By beginning its global marketing in Canada and the UK, method did not face a language barrier or much of a cultural barrier, so their product, place, and promotion mix 2 From Lamb, Hair, McDaniel. Method - Global Beginnings from Marketing 9e, pg. 137-138. Copyright (c) 2008 South-Western, a part of Cengage Learning, Inc. Reproduced by permission. www.cengage.com/permissions. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 21 are similar to that in the U.S. and, to be cost-effective to do business with the UK and Canada, price points must be acceptable to both parties. 4. What is innovative about how method envisions moving into foreign markets? Would method’s strategy for global expansion work for other companies or industries? Which ones? Explain. Answer: Method intends to target multinational retailers, not necessarily countries, as global partners. A multinational retail store, such as Carrefour, with stores in 20 countries, and provide method with a ready-made distribution system for their product. And, as a unique product, method does not need to be in every retailer’s store, giving a competitive advantage to the retailers the company chooses. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 22