2-1 © 2007 mcgraw-hill companies, inc., mcgraw-hill/irwin

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PART II: EXTERNAL INFLUENCESPART II: EXTERNAL INFLUENCES

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CHAPTERCHAPTER 22

CROSS-CROSS-CULTURAL CULTURAL

VARIATIONS IN VARIATIONS IN CONSUMER CONSUMER BEHAVIORBEHAVIOR

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Consumer Behavior In The News…Consumer Behavior In The News…

SUV’s in China?SUV’s in China?

Yes!Yes!

Expect SUV Segment to be 20% of Market in Expect SUV Segment to be 20% of Market in 2009 (up from 8% in 2004).2009 (up from 8% in 2004).

Barriers: Barriers:

Drivers: Drivers:

Will Trend Sustain in Face of Rising Fuel Will Trend Sustain in Face of Rising Fuel Costs?Costs?

Source: J. B. White, “China’s SUV Surge,” The Wall Street Journal, June 10, 2004, p. B1, B3

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Consumer Behavior In The News…Consumer Behavior In The News…

SUV’s in China?SUV’s in China?

Yes!Yes!

Expect SUV Segment to be 20% of Market in Expect SUV Segment to be 20% of Market in 2009 (up from 8% in 2004).2009 (up from 8% in 2004).

Barriers: Barriers: Traffic Jams, Gov’t Push to Conserve Traffic Jams, Gov’t Push to Conserve Fuel, Cost of FuelFuel, Cost of Fuel

Drivers: Drivers: Bold Image, Greater Capacity, SafetyBold Image, Greater Capacity, Safety

Will Trend Sustain in Face of Rising Fuel Will Trend Sustain in Face of Rising Fuel Costs?Costs?

Source: J. B. White, “China’s SUV Surge,” The Wall Street Journal, June 10, 2004, p. B1, B3

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Marketing Across Cultural Boundaries is Marketing Across Cultural Boundaries is a Difficult and Challenging Taska Difficult and Challenging Task

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The Concept of CultureThe Concept of Culture

CultureCulture 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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Although pizza is eaten most everywhere, what is on the pizza can be quite different!

Pepperoni

Squid

Tuna & Corn

Black Bean Sauce

BBQ Chicken

Eggs

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Cultural valuesCultural values give rise to norms and associated sanctionssanctions, which in turn influence consumption patternsconsumption patterns.

Cultures are not static. They typically evolve and change slowly over time.

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Other-Oriented ValuesOther-Oriented Values

Environment-Oriented ValuesEnvironment-Oriented Values

Self-Oriented ValuesSelf-Oriented Values

Variations in Cultural ValuesVariations in Cultural Values

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

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Reflect a society’s view of the appropriate relationships between individuals and groups within that society.

Other-Oriented Values

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Prescribe a society’s relationship to its economic and technical as well as its physical environment.

Environment-Oriented Values

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Reflect the objectives and approaches to life that the individual members of society find desirable.

Self-Oriented Values

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Individual/CollectiveIndividual/Collective

Youth/AgeYouth/Age

Extended/Limited FamilyExtended/Limited Family

Masculine/Feminine Masculine/Feminine

Competitive/CooperativeCompetitive/Cooperative

Diversity/UniformityDiversity/Uniformity

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Individual/CollectiveIndividual/Collective

Are individual activity and initiative valued more highly than collective activity and conformity?


Asian cultures more collective

U.S. culture more individualistic

pp. 46 questions

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Youth/AgeYouth/Age


Is family life organized to meet the needs of the children or the adults?

Are younger or older people viewed as leaders and role models?

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Extended/Limited FamilyExtended/Limited FamilyOther-Oriented Values

To what extent does one have a life-long obligation to numerous family members?

Extended family critical in South/ Central America

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Masculine/Feminine Masculine/Feminine

To what extend does social power automatically go to males?


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Competitive/CooperativeCompetitive/Cooperative


Does one obtain success by excelling over others or by cooperating with them?

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Diversity/UniformityDiversity/Uniformity

Does the culture embrace variation in religious belief, ethnic background, political views, and other important behaviors and attitudes?


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CleanlinessCleanliness

Performance/StatusPerformance/Status

Tradition/ChangeTradition/Change

Risk taking/Security Risk taking/Security

Problem solving/FatalisticProblem solving/Fatalistic

NatureNature

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CleanlinessCleanliness


To what extent is cleanliness pursued beyond the minimum needed for health?

U.S. very high on personal hygiene – some think to an extreme!

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Performance/StatusPerformance/StatusEnvironment-Oriented Values

Closely related to the concept of power distance, which refers to the degree to which people accept inequality in power, authority, status, and wealth as natural or inherent in society.

Is the culture’s reward system based on performance or on inherited factors such as family or class?

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Tradition/ChangeTradition/Change

Is tradition valued simply for the sake of tradition? Is change or “progress” an acceptable reason for altering established patterns?


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Tradition/Change (Cont.)Tradition/Change (Cont.)

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


The above represent Internet users and cell phones as a percent of total population

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Risk taking/Security Risk taking/Security

Are those who risk their established positions to overcome obstacles or achieve high goals admired more than those who do not?

A society that does not admire risk taking is unlikely to develop enough entrepreneurs to achieve economic change and growth.


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Problem solving/FatalisticProblem solving/Fatalistic

Are people encouraged to overcome all problems, or do they take a “what will be, well be” attitude?

Is there an optimistic, “we can do it” orientation?

Mexico and Middle-East Countries tend to fall toward the fatalistic end of the continuum.


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NatureNature

Is nature regarded as something to be admired or overcome?


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Active/PassiveActive/Passive

Sensual gratification/AbstinenceSensual gratification/Abstinence

Material/NonmaterialMaterial/Nonmaterial

Hard work/LeisureHard work/Leisure

Postponed gratification/Immediate gratificationPostponed gratification/Immediate gratification

Religious/SecularReligious/Secular

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Active/PassiveActive/Passive

Is a physically active approach to life valued more highly than a less active orientation?


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Sensual gratification/AbstinenceSensual gratification/Abstinence

To what extent is it acceptable to enjoy sensual pleasures such as food, drink, and sex?

Cultures differ in their acceptance of sensual gratification.


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Applications in Consumer BehaviorApplications in Consumer Behavior

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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Material/NonmaterialMaterial/Nonmaterial

How much importance is attached to the acquisition of material wealth?


Two types of materialism:

1.1. Instrumental materialismInstrumental materialism – is the acquisition of things to enable one to do something.

2.2. Terminal materialismTerminal materialism – is the acquisition of items for the sake of owning the item itself.

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Hard work/LeisureHard work/Leisure

Is a person who works harder than economically necessary admired more than one who does not?


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Postponed gratification/Immediate gratificationPostponed gratification/Immediate gratification

Are people encouraged to “save for a rainy day” or to “live for today”?


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Religious/SecularReligious/Secular

To what extent are behaviors and attitudes based on the rules specified by a religious doctrine?


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Cultural Variations in Nonverbal Communications

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TimeTime

• Time perspective—the culture’s overall orientation toward time (monochronic monochronic vs. polychronicpolychronic)

• Interpretations assigned to specific uses of time

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

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

SpaceSpace

-how office space is allocated

-Personal space

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SymbolsSymbols

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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RelationshipsRelationshipsHow 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. Under the concept of guanxi, an individual can draw upon personal connections/relationships to secure resources or advantages when doing business as well as in the course of social life.

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AgreementsAgreementsHow does a culture ensure business obligations are honored? How are disagreements resolved?

Some cultures rely on a legal system; others rely on relationships, friendships, kinship, local moral principles, or informal customs to guide business conduct.

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ThingsThingsThe 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.

For example, what type of gift is appropriate and when does receipt of a gift “require” a gift in return?

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EtiquetteEtiquetteThe 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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EtiquetteEtiquetteMeishi is an important aspect of Japanese business etiquette…”a man without a Meishi has no identity in Japan.” What is Meishi? It is the exchange of business cards!

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Global Cultures

A Global Teenage 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, see the same movies and videos, listen to the same music, and they tend to dress alike.

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Global Demographics

DemographicsDemographics 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

A critical aspect of demographics for marketers is income--specifically the distribution of income.

One country with a relatively low average income can have a sizable middle-income segment, while another country with the same average income may have most of the wealth in the hands of a few individuals.

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Global Demographics

Country GDP (per capita)

% of total income (to top 10%)

Brazil $ 7,600 48%

China 5,000 30

United Kingdom

27,700 28

United States 37,800 31

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Global Demographics

Marketers increasingly use Purchasing Power Parity (PPP)Purchasing Power Parity (PPP) rather than average or median income to evaluate markets. PPPPPP is based on the cost of a standard market basket of products bought in each country.

Country Per Capita Income Per Capita PPP

Brazil $ 7,600 $ 7,480

China 1,100 4,990

United Kingdom 28,350 27,650

United States 37,610 37,500

The following shows the same countries in terms of PPP:

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Cross-Cultural Marketing Strategy

Considerations in Approaching a Foreign Market1.1. Homogeneous versus Heterogeneous with Respect to Homogeneous versus Heterogeneous with Respect to

Culture?Culture?

2.2. What Needs Can the Product Fill in this Culture?What Needs Can the Product Fill in this Culture?

3.3. Can Enough People Afford the Product?Can Enough People Afford the Product?

4.4. What Values are Relevant to the Purchase and Use of the What Values are Relevant to the Purchase and Use of the Product?Product?

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

6.6. In What Ways Can We Communicate About the Product?In What Ways Can We Communicate About the Product?

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

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Applications in Consumer Behavior

Adaptation is Often Adaptation is Often Required in Cross-Required in Cross-Cultural Marketing. Cultural Marketing. Here, McDonald’s Here, McDonald’s uses a Popular uses a Popular Chinese Sports Chinese Sports Celebrity.Celebrity.

GOH CHAI HIN/AFP/Getty Images

2-1 © 2007 mcgraw-hill companies, inc., mcgraw-hill/irwin

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cultural valuesreflect

cultural boundaries

cultural valuesprescribe

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suv segment

numerous family members

individual members of

chinas suv surge