Consumer Behavior,Ninth Edition

Schiffman & Kanuk

Chapter 13Cross-Cultural Consumer Behavior: An International PerspectiveMKT 344 Lecturer: NNA

The Imperative to Be Multinational

Global Trade Agreements EU NAFTA

Acquiring Exposure to Other Cultures Country-of-origin Effects

Table 14.1 The World’s Most Valuable Brands

1. Coca-Cola2. Microsoft3. IBM4. GE5. Intel6. Disney7. McDonald’s8. Nokia9. Toyota10.Marlboro

Most of these brands offer different Web sites for each country.

Discussion Questions

What challenges may Toyota have faced to get this status?

What might they have done right in their marketing strategy to achieve this status? Consider the 4Ps.

Country of Origin Effects: Negative and Positive

Many consumers may take into consideration the country of origin of a product.

Some consumers have animosity toward a country People’s Republic of China has some animosity

to Japan Jewish consumers avoid German products New Zealand and Australian consumers boycott

French products

Swiss Watches

More Swiss Watches

Can’t Beat the EngineeringThe “American” Twist

This U.S. Government Web site helps those who want to buy USA products.

National Identity Figure 14.2

Cross-CulturalConsumer Analysis

The effort to determine to what

extent the consumers of two

or more nations are similar or different.

Cross-Cultural Consumer Analysis

Similarities and differences among people

The greater the similarity between nations, the more feasible to use relatively similar marketing strategies

Marketers often speak to the same “types” of consumers globally

Issues

Discussion Questions

Are people becoming more similar? Why or why not?

Table 14.2 Comparisons of Chinese and American Cultural Traits

Chinese Cultural Traits

Centered on Confucian doctrine

Submissive to authority

Ancestor worship Values a person’s

duty to family and state

American Cultural Traits

Individual centered Emphasis on self-

reliance Primary faith in

rationalism Values individual

personality

Cross-Cultural Consumer Analysis

The growing global middle class

Growing in Asia, South America, and Eastern Europe

Marketers should focus on these markets

Issues

Cross-Cultural Consumer Analysis

The global teenage market

There has been growth in an affluent global teenage and young adult market

They appear to have similar interests, desires, and consumption behavior no matter where they live.

Issues

The iPod has global appeal to the young market.

Cross-Cultural Consumer Analysis

Acculturation Marketers must learn everything that is relevant about the usage of their product and product categories in foreign countries

Issues

Table 14.6 Basic Research Issues in Cross-Cultural Analysis

FACTORS

Differences in language and meaning

Differences in market segmentation opportunities

Differences in consumption patterns

Differences in the perceived benefits of products and services

EXAMPLES

Words or concepts may not mean the same in two different countries.

The income, social class, age, and sex of target customers may differ dramatically in two different countries.

Two countries may differ substantially in the level of consumption or use of products or services.

Two nations may use or consume the same product in very different ways.

Table 14.6 continued

FACTORS

Differences in the criteria for evaluating products and services

Differences in economic and social conditions and family structure

Differences in marketing research and conditions

Differences in marketing research possibilities

EXAMPLES

The benefits sought from a service may differ from country to country.

The “style” of family decision making may vary significantly from country to country.

The types and quality of retail outlets and direct-mail lists may vary greatly among countries.

The availability of professional consumer researchers may vary considerably from country to country.

World Brands

Products that are manufactured, packaged, and

positioned the same way regardless of the country in which they

are sold.

Are Global Brands Different?

According to a survey – yes. Global brands have:

Quality signal Global myth Social responsibility

Multinational Reactions to Brand Extensions

A global brand does not always have success with brand extentions

Example Coke brand extension – Coke popcorn Eastern culture saw fit and accepted the

brand extension Western culture did not see fit

Adaptive Global Marketing Adaptation of advertising message

to specific values of particular cultures

McDonald’s uses localization Example Ronald McDonald is Donald

McDonald in Japan Japanese menu includes corn soup and

green tea milkshakes Often best to combine global and

local marketing strategies

Discussion Question

If your university is considering a satellite business program in Korea How would they need to adapt the

program? What would prompt these changes?

Alternative Multinational Strategies: Global Versus Local

Framework for Assessing Multinational Strategies Global Local Mixed

Table 14.8 A Framework for Alternative Global Marketing

Strategies

PRODUCT STRATEGY

COMMUNICATON STRATEGY

STANDARDIZED COMMUNICATIONS

LOCALIZED COMMUNICATIONS

STANDARDIZED PRODUCT

Global strategy:Uniform Product/ Uniform Message

Mixed Strategy:Uniform Product/ Customized Message

LOCALIZED PRODUCT

Mixed strategy:Customized Product/ Uniform Message

Local Strategy:Customized Product/ Customized Message

Cross-Cultural Psychographic Segmentation

The only ultimate truth possible is that humans are both deeply the same

and obviously different.

Table 14.10 Six Global Consumer Segments

Strivers 23%

Altruists18%

Devouts22%

Fun Seekers12%

Creatives10%

Intimates15%