Chapter 14 Cross-Cultural Consumer Behavior: An International Perspective.

Chapter 14

Cross-Cultural Consumer Behavior: An International

Perspective

©2000 Prentice Hall

The Imperative To Be Multinational

• Global Trade Agreements– EU– NAFTA

• Acquiring Exposure to Other Cultures

• Country-of-origin Effects


Cross-Cross-Cultural Cultural

Consumer Consumer AnalysisAnalysis

Research to determine the extent to which consumers of two or more nations are

similar in relation to specific consumption behavior.


Issues in Cross-Cultural Consumer Analysis

• Similarities and Differences Among People– Time Effects

• The Growing Global Middle Class• Acculturation

– Research Techniques


Table 14.1 Observations on the Differences Between Japan and American Cultural Traits

JAPANESE CULTURE, TRAITS AMERICAN CULTURE, TRAITS

• Japanese language • English language

• Homogeneous • Diverse

• Harmony to be valued and preserved

• Fight for one’s belief’s/positions

• Ambiguous • Clearcut

• General • Specific

• Unspoken agreement • Get the facts straight

• Holdback emotions in public • Display emotions in public


Table 14.1 continued

JAPANESE CULTURE, TRAITS AMERICAN CULTURE, TRAITS

• Process-oriented • Result-oriented

• Fun-oriented • Humor-oriented• Make a long story short • Make a short story long

• Nonverbal communication important

• Verbal communication important

• Interested in who is speaking • Interested in what is spoken


Table 14.2 The Pace of Life in 31 Countries

Switzerland 31

WALKING 60 FEET

OVERALL PACE

12

PUBLIC CLOCK

POSTAL SERVICE

Ireland 12 113

Germany 53 81

Japan 74 64

Italy 105 212

England 46 139

Sweden 137 75

Austria 238 38

Netherlands 29 2514

Hong Kong 1410 146

SPEED IS RELATIVE(rank of 31 countries for overall pace of life and for three measures)



Taiwan 1814

WALKING 60 FEET

OVERALL PACE

217

PUBLIC CLOCK

POSTAL SERVICE

Singapore 2515 411

United States 616 2023

Canada 1117 2221

South Korea 2018 1620

Hungary 1919 1819

Czech Republic 2120 2317

France 811 1018

Poland 1212 815

Costa Rica 1613 1510



El Salvador 2228

WALKING 60 FEET

OVERALL PACE

3116

PUBLIC CLOCK

POSTAL SERVICE

Brazil 3129 2824

Indonesia 2630 3026

Mexico 1731 2631

Greece 1421 2913

Kenya 922 2430

China 2423 1225

Bulgaria 2724 1722

Jordan 2826 1927

Syria 2927 2728

Romania 3025 529


AcculturationAcculturationThe learning of a new

“foreign” culture


Table 14.3 The Feasibility of Consumer Telephone Research in Asia

COUNTRY FEASIBILITYAustralia yes

China, Mainland no, but within five years in big citiesHong Kong yes, best method by far

India yes, for big cities and in English

Indonesia yes, in Java, Bali and Sumatra

Japan yes

South Korea yes



COUNTRY FEASIBILITYMalaysia yes, Peninsula

New Zealand yes

Philippines yes

Singapore yes

Taiwan yes

Thailand yes

Vietnam no


Table 14.4 Basic Research Issues in Cross-Cultural Analysis

FACTORS

Differences in language and meaning

Difference in market segmentation opportunities

Difference in consumption patterns

Difference 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.



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.


Alternative Multinational Strategies: Global Versus Local

• Favoring a “World Brand”• Adaptive Global Marketing• Framework for Assessing Multinational

Strategies– Global– Local– Mixed


World World BrandsBrands

Products that are manufactured, packaged,

and positioned the same way regardless of the country in

which they are sold.


Table 14.5 Advertising to the World’s Consumers

RANKRANK COUNTRYCOUNTRYPER-CAPITA MEDIA PER-CAPITA MEDIA

SPENDING*SPENDING*

1 Japan $2,137

2 United States 1,861

3 France 1,845

4 Germany 1,593

5 Netherlands 1,517

6 Denmark 1,504

7 Belgium 1,357

8 United Kingdom 1,286

REACHING PEOPLE(media spending per capita for top-ranking and bottom ranking countries, 1996)



RANKRANK COUNTRYCOUNTRYPER-CAPITA MEDIA PER-CAPITA MEDIA

SPENDING*SPENDING*

9 Hong Kong $1,180

10 Australia 1,166

126 Tanzania $4.10

127 Vietnam 2.92

128 Nigeria 2.77

129 China 2.62

130 Laos 0.41

*Author’s estimates based on various sources.


Table 14.6 A Product Recognition Continuum for Multinational Marketing

FACTORSFACTORS EXAMPLESEXAMPLES

STAGE ONESTAGE ONE Local consumers have heard or read of a brand marketed elsewhere but cannot get it at home; a brand is “alien” and unavailable but may be desirable

STAGE STAGE TWOTWO

Local consumers view a brand made elsewhere as “foreign,” made in a particular country but locally available.The fact that the brand is foreign makes a difference in the consumer’s mind, sometimes favorable, sometimes not.



FACTORSFACTORS EXAMPLESEXAMPLES

STAGE STAGE THREETHREE

Local consumers accord imported brand “national status”; that is, it’s national origin is known but does not affect their choice

STAGE STAGE FOURFOUR

Brand owned by a foreign company is made domestically and has come to be perceived by locals as a local brand; its foreign origins may be remembered but the brand has been “adopted”. Examples are Sony in the U.S., Coca-Cola in Europe and Japan

STAGE STAGE FIVEFIVE

Brand has lost national identity and consumers everywhere see it as “borderless” or global; not only can people not identify where it comes from but they never ask this question. Examples include the Associated Press and CNN news services, Nescafe, Bayer aspirin.


Table 14.7 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


Marketing Mistakes: A Failure to Understand Differences

• Product Problems• Promotional Problems• Pricing and Distribution Problems


Table 14.8 Six Global Consumer Market Segments

SEGMENT NAME

GLOBAL SIZE DESCRIPTION

Strivers 23% Value wealth, status, ambition, and power, and products like cellular telephones and computers. They consider material things extremely important.

Devouts 22% Have more traditional values, like faith, duty, obedience, and respect for elders. Least involved with the media and least likely to want Western brands. Concentrated in the Mideast, Africa, and Asia.

Altruists 18% Very outer focused--interested in social issues and cases. Generally well established, older, and more female than the norm. Found in Russia and Latin America.


Table 14.8 continuedSEGMENT NAME

GLOBAL SIZE DESCRIPTION

Intimates 15% These are “people people,” and focus on relationships close to home, such as spouses, significant others, family, and friends. Often found in England, Hungary, the Netherlands, and the U.S. Very heavy users of media--gives them something to talk about to others.

Fun Seekers 12% The youngest group. They value excitement, adventure, pleasure, and looking good, and spend time at bars, clubs, and restaurants. The group loves electronic media and is more global in its lifestyle, especially in music.

Creatives 10% Dedicated to technology, knowledge, and learning, and are the highest consumers of media, especially books, magazines, and newspapers Members of this group are global trendsetters in owning and using a PC and in surfing the Web.


Table 14.9 Eight Socioeconomic-Psychographic Segments of the Latin

American Market

EMERGING PROFESSIONAL ELITE14% of total; occupies top professional executive positions:• 51% graduated from university or technical college• 55% are married• 98% have color TV; 96% VCR; 97% car; 98% credit card; 90% vacuum cleanerTRADITIONAL ELITE11%; almost half in top professional executive positions:• 53% finished secondary education• 54% married• All have color TV; 91% VCR; 89% car; 60% credit card; 60% vacuum cleanerPROGRESSIVE UPPER MIDDLE CLASS13%; 36% in top or middle management:• 75% studied beyond primary education, 30% studied beyond secondary school• 48% married• 99% have color TV; 77% VCR; 74% car; 31% credit card; 30% vacuum cleaner



SELF-MADE MIDDLE CLASS11%; skills gained through entrepreneurship:• Most ended education with primary school, “virtually none” went beyond

secondary school• Half married• 98% have color TV; 72% VCR; 81% car; 46% credit card; 51% vacuum cleaner

SKILLED MIDDLE CLASS9%; 45% have top operational jobs, 14% own small businesses:• 60% completed secondary education; 18% completed university or technical

college• Half married• 96% have color TV; 60% VCR; 28% car; 29% credit card; 32% vacuum cleaner

SELF-SKILLED LOWER MIDDLE CLASS13%; 58% employed in operational jobs:• 42% went beyond primary school, 11% went beyond secondary education• Half married• 97% have color TV; 50% VCR; 4% car; 8% credit card; none vacuum cleaner



INDUSTRIAL WORKING CLASS14%; a third are in skilled worker positions and another third in average

operational jobs:• 16% went beyond secondary school, 26% completed secondary, 35% complete

primary• 57% married• 92% have color TV; 13% VCR; 5% credit card; 15% vacuum cleaner

STRUGGLING WORKING CLASS15%; most in operational, skilled and unskilled jobs:• 29% completed primary school, 24% completed secondary school• 53% married• 63% have color TV; no more than 10% have VCR, car, credit card, or vacuum

cleaner

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Chapter 14 Cross-Cultural Consumer Behavior: An International Perspective.

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