Differences in cross-cultural
consumer behaviour and
consequences for branding
Dr. Ivana First
University of Rijeka
Agios Nikolaos, 7th July 2011.
Istraživačko pitanje?
Does culture influences
consumer perception of
brands?
Pure
alcohol
What is a brand?
Sirup with
soda
Tobacco
Hatch and Rubin, 2006
Consumers are willing to pay 37% price premium on a branded product
over the same quality private label.
WHY?
Brand benefits
Function
Quality
guarantee
Community
belonging
Creating one’s
self identity
Self - fulfilment
Benefit
Reducing risk, Reducing time
Bonding, familiarity relationship
Personalising one’s choice
Ethical and social responsibility
confirmation
Keller, 2003; Kapferer, 2004; Cova i Pace 2006; McAlexander, Schouten, i Koenig 2002;
Tungate 2005; Escalas i Bettman 2003; Fournier 1998. Muniz and O’Guinn, 2001
Cultural influence on brand meaning
The Traditional View of Brand Meaning Creation
New
product
is created
Marketers
decide on
desired
brand
identity
Brand identity is
communicated to
consumers via vision,
culture, positioning,
personality,
relationship and
presentation
Brand image
is absorbed
and
accepted by
consumers
“Pool of Reality” model of Brand Image Creation
New product
is created
Brand manager
instigates dialogue
Central pool of
meanings
Brand consultants
enter dialogue
about brand
identity
Blythe 2007
Consumers enter
dialogue about brand
image
Creatives and agency
enter dialogue about
communications
Cultural influence on brand meaning
S
C
R1
M1
R2
M2
R3
M3
KR1
KR2
KR3
Berthon, Pitt, and Campbell 2008, p. 3.
S = sender of communication «C»
R = recipient of communication
K = knowledge base of recipient
M = meaning ascribed to
communication
Cultural influence on brand meaning
Brand benefits/meanings
Cultural dimensions
Collectivism
+
-
Power Distance
+
-
Masculinity
Uncertainty Avoidance
+
-
+
-
Belonging, network, sacrifices
Individual, autonomy, freedom
Power, admirable, class
Approachable, equal
Efficiency, success, progress
Love, harmony, care
High quality, safety, tradition
Risk, adventure, innovation
Cultural influence on brand meaning
EXCERSISE
What does Coca-cola mean to you?
Where do you come from?
Do you like Coca-cola?
Methodological Considerations
Countries
power distance
100
80
60
40
20
uncertainty avoidance
0
Austria
Finland
India
USA
masculinity
Brands
individuality
Qualitative Research: Results
Results: Symbolic Images
100%
80%
Coca-Cola
Google
60%
Nike
40%
Nokia
Toyota
20%
0%
Finland
India
Austria
United
States
Qualitative Research: Results
Refreshing/cooling/fresh
Not healthy/no nutrition value
Cold/cool/chilled/chilling
Christmas/Santa Clause/
Sweet/sugar/not soar
Global/not local
Warm summer/hot day
American/American lifestyle
Fizzy/carbonated/sparkling
Energetic/keeps me going
Big/large/huge
Exciting/not boring/not serious
Recognizable/familiar/identifiable
Opening bottle
Traditional/classic/original
Bonding with friends/parties/fun
Not natural
0
4
Finland
India
8
US
Austria
12
Quantitative Research: Results
Coca - cola
Brand
Meaning
Austria
(1)
Finland
(2)
India
(3)
United
States
(4)
F
Partial
(3,354)
η2
Refreshing -.287 (1.088)3 .039 (.800)3 .353 (.910)1,2 -.036 (1.113) 3.69*
.030
Globally
recognised
.161 (.892)4
Unhealthy
.359 (1.06)2,3,4 .033 (.783)1,3 -369 (1.04)1,2 -.187 (.950)1 8.71** .069
Christmas
.400 (.96)2,3,4 -.190 (.979)1 -.261 (.965)1 -.033 (.958)1 9.17** .072
Classic
-.346 (.932)2,4 .551 (.736)1,3 -.631 (1.00)2,4 .526 (.707)1,3 30.7** .206
Energising
.033 (1.070)
.119 (.914)
-.179 (1.155) -.239 (1.031)1 5.03** .041
UA
Bonding with
friends b
.324 (.942)3
* p < .05 **; p < .01
-.173 (.938)
.257 (1.002)
-.111 (.914)
2.17
.018
CO
.410 (.789)3,4 -.968 (.75)1,2,4 .045 (.865)2,3 30.4** .205
Qualitative Research: Results
Gives answers/provides data
Fast/quick/high speed
Not old/new
World/worldwide/global
Powerful/potent/almighty
Life saver/basic necessity
No privacy/no freedom/omnipresent
Useful/helpful
Google logo
Happiness/satisfaction
Huge/extensive/not small
Not reliable
Easy to use/convenient/no problem
Search
Not stupid/not dump/not ignorant
Reliable/trustful
Creative
0
2
4
6
Finland
8
India
10
US
12
Austria
14
16
Quantitative Research: Results
Google
Brand
Meaning
Austria
(1)
Finland
(2)
India
(3)
United
States (4)
F
(3,
309)
Partial
η2
PD
Almighty -.462 (1.011)3,4 -.196 (.916)3,4 .612 (.743)1,2 .370 (.876)1,2 10.76** .095
Helpful
-.188 (1.293)
.022 (.942)
Intrusive .247 (1.032)2,4 -.156 (1.078)1
.066 (.755)
.229 (.652)
.596
CO
.006
.135 (.837)4 -.392 (.85)1,3 3.674*
.034
Inspired -.350 (1.08)3,4 -320 (.877)3,4 .475 (.695)1,2 .556 (.896)1,2 9.15**
.082
Fun
.143
-.455 (1.007)3,4 -.220 (.849)3,4 .703 (.87)1,2,4 .272 (77)1,2,3 17.18**
Global
.199 (.986)2 -.328 (1.08)1,3 .229 (.785)2 -.139 (.995) 4.829** .045
Informa
tive
.083 (1.042)2 -.534 (1.05)1,3,4 .345 (.681)2 .273 (.847)2 5.43** .050
* p < .05 **; p < .01
In coclusion:
Culture influences :
a) consumer behaviour
Conclusion
b) consumer perception
Therefore:
• It is important to get to know cultural differences.
• Adjust marketing strategies to satisfy dominant
cultural values.
Thank you!
ifirst@efri.hr