CHAPTER TWOCross-Cultural Variations in Consumer BehaviorMcGraw-Hill/IrwinCopyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

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Cultural Factors

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The Concept of CultureCulture: The complex whole that includes knowledge, belief, art, law, morals, customs, and any other capabilities and habits acquired by humans as members of societyKey issues:ComprehensiveAcquiredBoundariesSeldom Aware

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Values, Norms, and Sanctions

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Variations in Cultural Values

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Other-oriented ValuesIndividual/Collective: Membership Extended/Limited Family: Grandparents Adult/Child: US versus other Countries Masculine/Feminine: Rank, Prestige Competitive/Cooperative: Comparative Ads Youth/Age: Elders

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Environment-oriented ValuesCleanliness: How Much? Performance/Status: Branded Goods Tradition/Change: Innovation Risk taking/Security: Entrepreneur Problem-solving/Fatalistic: Acceptance Nature: Social Responsibility

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Self-oriented ValuesActive/Passive: DO SOMETHING!Material/Nonmaterial: Instrumental/TerminalHard work/Leisure: Vacation? Postponed gratification/Immediate gratification: Credit Sensual gratification/Abstinence: Differences Humor/Serious: Superficial

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Consumer Insight 2-1The coffee bar concept, coupled with high-quality, 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?

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Language Issues

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Factors Influencing Nonverbal Communication

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Nonverbal FactorsTimeTime perspectiveMeanings in the Use of TimeSpaceOffice SpacePersonal SpaceSymbols

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The Meaning of Numbers, Colors, & Symbols

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Nonverbal Factors (continued)FriendshipThe concept of guanxiAgreementsThingsEtiquette

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Global DemographicsPurchasing Power ParityDifferent Cultures areDifferent!Knowing and Addressing is the Trick

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Approaching a Foreign MarketGeographic areaAre needs the same?Size of market?Are values consistent?Distribution, Politics, and Legal structures?How do we communicate?Are there any ethical implications?