CHAPTER TWO Cross-Cultural Variations in Consumer Behavior McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. 2 CHAPTER Cultural Factors 2 3 The Concept of Culture • Culture: The complex whole that includes knowledge, belief, art, law, morals, customs, and any other capabilities and habits acquired by humans as members of society • Key issues: • Comprehensive • Acquired • Boundaries • Seldom Aware CHAPTER 2 4 CHAPTER Values, Norms, and Sanctions 2 5 Variations in Cultural Values Otheroriented values Environmentoriented values Selforiented values CHAPTER 2 Society’s view of relationships between people Society’s view of relationships with environment Objectives/ approaches to life society finds desirable Consumption Purchase Communications 6 Other-oriented Values • Individual/Collective: Membership • Extended/Limited Family: Grandparents • Adult/Child: US versus other Countries • Masculine/Feminine: Rank, Prestige • Competitive/Cooperative: Comparative Ads • Youth/Age: Elders CHAPTER 2 7 Environment-oriented Values • Cleanliness: How Much? • Performance/Status: Branded Goods • Tradition/Change: Innovation • Risk taking/Security: Entrepreneur • Problem-solving/Fatalistic: Acceptance • Nature: Social Responsibility CHAPTER 2 8 Self-oriented Values • Active/Passive: DO SOMETHING! • Material/Nonmaterial: Instrumental/Terminal • Hard work/Leisure: Vacation? • Postponed gratification/Immediate gratification: Credit • Sensual gratification/Abstinence: Differences • Humor/Serious: Superficial CHAPTER 2 9 Consumer Insight 2-1 • The coffee bar concept, coupled with highquality, strongly flavored coffee, obviously transferred successfully from the Italian to the American culture. However, America has traditionally embraced coffee. Will Starbucks work in countries where tea is the dominant drink? • What values will affect Starbucks’ success in China? • What ethical issues should Starbucks consider as it enters developing countries? CHAPTER 2 Language Issues… 10 CHAPTER 2 11 CHAPTER Factors Influencing Nonverbal Communication 2 12 Nonverbal Factors • Time • Time perspective • Meanings in the Use of Time • Space • Office Space • Personal Space • Symbols CHAPTER 2 13 CHAPTER The Meaning of Numbers, Colors, & Symbols 2 14 Nonverbal Factors (continued) • Friendship • The concept of guanxi • Agreements • Things • Etiquette CHAPTER 2 15 Global Demographics • Purchasing Power Parity • Different Cultures are…Different! • Knowing and Addressing is the Trick CHAPTER 2 16 Approaching a Foreign Market • • • • • • • CHAPTER 2 Geographic area Are needs the same? Size of market? Are values consistent? Distribution, Politics, and Legal structures? How do we communicate? Are there any ethical implications?