Cross-Cultural Consumer Behavior:

An International Perspective

CHAPTERTHIRTEEN

Learning Objectives

1. To Understand the Importance of Formulating an Appropriate Multinational or Global Marketing Strategy.

2. To Understand How to Study the Differences Among Cultures While Developing Marketing Strategies.

3. To Understand How Consumer-Related Factors Impact a Firm’s Decision to Select a Global, Local, or Mixed Marketing Strategy.

4. To Understand How Lifestyle and Psychographic Segmentation Can Be Used.

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Under What Circumstances Would This English-Language Ad Attract Affluent Consumers from Largely

Non-English Speaking Countries?

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If They Frequently Visit the United Statesand Regularly Read American Upscale Magazines

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The Imperative to Be Multinational

• Global Trade Agreements– EU– NAFTA

• Winning Emerging Markets

• Acquiring Exposure to Other Cultures

• Country-of-origin Effects

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The Best Global Brands - Table 13.1

1. Coca-Cola2. IBM3. Microsoft4. GE5. Nokia6. Toyota7. Intel8. McDonald’s9. Disney10.Google

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Discussion Questions

• What challenges may Toyota have faced to get their status as one of the top brands?

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

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Country of Origin Effects: Positive

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

• Country-of-origin commonly:– France = wine, fashion, perfume– Italy = pasta, designer clothing, furniture, shoes,

and sports cars– Japan = cameras and consumer electronics– Germany = cars, tools, and machinery

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Country of Origin Effects: Negative

• 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

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Why Do Most GlobalAirlines Stress Pampering

Business Travelers in Their Ads?

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Upscale International Business Travelers Share Much in Common.

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Other Country-of-Origin Effects

• Mexican study uncovered:– Country-of-design (COD)– Country-of-assembly (COA)– Country-of-parts (COP)

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Conceptual Model of COD and COMFigure 13.2

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Cross-CulturalConsumer Analysis

The effort to determine to what

extent the consumers of two

or more nations are similar or different.

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Cross-Cultural Consumer Analysis

• Similarities and differences among people

• The growing global middle class

• The global teen market• Acculturation

• 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

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Discussion Questions

• Are people becoming more similar?• Why or why not?

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Comparisons of Chinese and American Cultural Traits - Table 13.2

• 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

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Cross-Cultural Consumer Analysis

• Similarities and differences among people

• The growing global middle class

• The global teen market• Acculturation

• Growing in Asia, South America, and Eastern Europe

• Marketers should focus on these markets

Issues

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Cross-Cultural Consumer Analysis

• Similarities and differences among people

• The growing global middle class

• The global teen market• Acculturation

• 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

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Cross-Cultural Consumer Analysis

• Similarities and differences among people

• The growing global middle class

• The global teen market• Acculturation

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

Issues

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Research Issues in Cross-Cultural Analysis Table 13.8

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FACTORS EXAMPLES

Differences in language and meaning Words or concepts may not mean the same in two different countries.

Differences in market segmentation opportunities

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

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

Differences in the perceived benefits of products and services

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

Table 13.8 (continued)

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FACTORS EXAMPLES

Differences in the criteria for evaluating products and services

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

Differences in economic and social conditions and family structure

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

Differences in marketing research and conditions

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

Differences in marketing research possibilities

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

Alternative Multinational Strategies: Global Versus Local

• Favoring a World Brand• Are Global Brands Different?• Multinational Reactions to Brand Extensions• Adaptive Global Marketing• Frameworks for Assessing Multinational

Strategies

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World Brands

Products that are manufactured, packaged, and

positioned the same way regardless of the country in which they

are sold.

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Why Does One of the World’s Most Highly Regarded Wristwatch Brands Use a Single Global Advertising

Strategy (Only Varying the Language)?

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They Speak to Them in Their Own Language to Maximize their “Comfort Zone.”

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Cross-Border Diffusion of Popular Culture Figure 13.6

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Are Global Brands Different?

• According to a survey – yes• Global brands have:– Quality signal– Global myth– Social responsibility

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Multinational Reactions to Brand Extensions

• A global brand does not always have success with brand extensions

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

extension– Western culture did not see fit

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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

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Discussion Questions

• If your university is considering a satellite business program in Korea:– How would they need to adapt the program?– What would prompt these changes?

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Framework for Assessing Multinational Strategies

• Global• Local• Mixed

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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

PRODUCT STRATEGY

A Framework for Alternative Global Marketing Strategies - Table 13.10

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Cross-Cultural Psychographic Segmentation

• The only ultimate truth possible is that humans are both deeply the same and obviously different.

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Six Global Consumer Segments

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