McGraw-Hill/Irwin

Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

PART II: EXTERNAL INFLUENCES

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CHAPTER

2

CROSS-

CULTURAL

VARIATIONS IN

CONSUMER

BEHAVIOR

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Consumer Behavior In The News…

 Can You Guess what Motives Underlie Men’s

Clothing Purchases in Different Countries?

 Europe

 China

 Japan

 U.S.

 How Might Fashion Retailers Respond?

Source: G. Deeny, “The Men Who Spend it Like Beckham,” Financial Times , February 23, 2008, p. 8

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Consumer Behavior In The News…

 Can You Guess what Motives Underlie Men’s

Clothing Purchases in Different Countries?

 Europe – look and feel successful

 China – social harmony

 Japan – look strong

 U.S. – reinvent themselves to seduce

 How Might Fashion Retailers Respond?

Source: G. Deeny, “The Men Who Spend it Like Beckham,” Financial Times , February 23, 2008, p. 8

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Marketing Across Cultural Boundaries is a Difficult and Challenging Task

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Globalization

Globalization changing from

 Oneway influence from U.S. to other countries to…

 Mutual influence

Four major world citizens

 Global citizens

 Global dreamers

 Antiglobals

 Global agnostics

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The Concept of Culture

Culture is the complex whole that includes knowledge, belief, art, law, morals, customs, and any other capabilities and habits acquired by humans as members of society.

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The Concept of Culture

Cultural values give rise to norms and associated sanctions , which in turn influence

consumption patterns.

Cultures are not static.

They typically evolve and change slowly over time.

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Variations in Cultural Values

The numerous values that differ across cultures and affect consumption include:

 Other-Oriented Values

 Environment-Oriented Values

 Self-Oriented Values

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Variations in Cultural Values

Other-Oriented Values

 Individual/Collective

 Youth/Age

 Extended/Limited Family

 Masculine/Feminine

 Competitive/Cooperative

 Diversity/Uniformity

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Variations in Cultural Values

Environment-Oriented Values

 Cleanliness

 Performance/Status

 Tradition/Change

 Risk taking/Security

 Problem solving/Fatalistic

 Nature

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Variations in Cultural Values

Environment-Oriented Values

Tradition/Change

A focus on technology as an indicator of change illustrates some dramatic differences across cultures that show the following:

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Variations in Cultural Values

Self-Oriented Values

 Active/Passive

 Sensual gratification/Abstinence

 Material/Nonmaterial

 Hard work/Leisure

 Postponed gratification/Immediate gratification

 Religious/Secular

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Applications in Consumer Behavior

Sensual Gratification/Abstinence

Ad for Calvin Klein underwear:

OK in U.S. and

France.

Not appropriate in cultures that place a high value on abstinence.

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Cultural Variations in Nonverbal

Communications

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Cultural Variations in Nonverbal

Communications

Time

The meaning of time varies between cultures in two major ways:

• Time perspective

• Time Interpretations

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Cultural Variations in Nonverbal

Communications

Space

• Overall use and meanings assigned to space vary widely among different cultures

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Cultural Variations in Nonverbal

Communications

Symbols

Colors, animals, shapes, numbers, and music have varying meanings across cultures.

Failure to recognize the meaning assigned to a symbol can cause serious problems!

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Cultural Variations in Nonverbal

Communications

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Cultural Variations in Nonverbal

Communications

Relationships

How quickly and easily do cultures form relationships and make friends?

•Americans tend to form relationships and friends quickly and easily.

•Chinese relationships are much more complex and characterized by guanxi .

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Cultural Variations in Nonverbal

Communications

Agreements

How does a culture ensure business obligations are honored?

How are disagreements resolved?

Some cultures rely on a legal system; others rely on relationships, friendships, etc.

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Cultural Variations in Nonverbal

Communications

Things

The cultural meaning of things leads to purchase patterns that one would not otherwise predict.

The differing meanings that cultures attach to things, including products, make gift-giving a particularly difficult task.

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Cultural Variations in Nonverbal

Communications

Etiquette

The generally accepted ways of behaving in social situations.

Behaviors considered rude or obnoxious in one culture may be quite acceptable in another!

Normal voice tone, pitch, and speed of speech differ between cultures and languages, as do the use of gestures.

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Global Cultures

A Global Youth Culture?

•Mass media and the Internet have had an impact of uniformity among teens around the world.

•They tend to watch many of the same shows, movies and videos, listen to the same music, and dress alike.

•Technology is important factor but

U.S. youth and brands no longer lead the way.

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Global Demographics

Demographics describe a population in terms of its size, structure, and distribution.

•Demographics are both a result and a cause of cultural values.

•For example, densely populated societies, such as China, are likely to have more of a collective orientation than an individualistic one.

•Disposable income is one aspect of demographics--the rapid growth in personal income in parts of China has led to an overall market explosion!

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Global Demographics

Marketers increasingly use Purchasing Power Parity (PPP) rather than average or median income to evaluate markets.

PPP is based on the cost of a standard market basket of products bought in each country.

The following shows four countries in terms of PPP:

Country

Brazil

China

United Kingdom

United States

Per Capita

Income

$4,791

$1,721

$37,266

$41,674

% of Total income

(to top 10%)

45%

35%

29%

30%

Per Capita

PPP

$8,596

$4,091

$31,580

$41,674

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Cross-Cultural Marketing Strategy

Considerations in Approaching a Foreign Market

1.

Homogeneous versus Heterogeneous with Respect to

Culture?

2.

What Needs Can the Product Fill in this Culture?

3.

Can Enough People Afford the Product?

4.

What Values are Relevant to the Purchase and Use of the

Product?

5.

What are the Distribution, Political and Legal Structures for the Product?

6.

In What Ways Can We Communicate About the Product?

7.

What are the Ethical Implications of Marketing This Product in This Country?

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Applications in Consumer Behavior

This Western

Union sign shows how marketers provide a local and/or regional flavor both in signage layout and through use of appropriate symbols and color.

© Lars Niki

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