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Cross-Cultural Consumer Behavior

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Cross cultural marketing Cross cultural marketing is defined as the effort

to determine to what extent the consumers of twoor more nations are similar or different. This willfacilitate marketers to understand the

psychological , social and cultural aspects offoreign consumers they wish to target, so as todesign effective marketing strategies for each ofthe specific national markets involved.

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The Worlds Most Valuable

BrandsRANK BRAND 2004 BRAND VALUE

($ Billions)

1 Coca-Cola 67.4

2 Microsoft 61.4

3 IBM 53.8

4 GE 44.1

5 Intel 33.5

6 Disney 27.1

7 McDonalds 25.0

8 Nokia 24.0

9 Toyota 22.7

10 Marlboro 22.1

Source: "The Top 100 Brands," Business Week,August 2,2004

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Cross-Cultural

Consumer

Analysis

The effort to

determine to what

extent theconsumers of two

or more nations are

similar or different.

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Cross-Cultural ConsumerAnalysis

Similarities anddifferences amongpeople

The growing global

middle class The global teenage

market

Acculturation

The greater the similaritybetween nations, the morefeasible to use relativelysimilar marketingstrategies

Marketers often speak tothe same types of

consumers globally

Issues

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Comparisons of Chinese and AmericanCultural Traits

Chinese Cultural Traits

Submissive to authority

A closed worldview,stability and harmony

Values a persons duty

to family and state

American Cultural Traits

Individual centered

Emphasis on self-reliance

Primary faith inrationalism

Values individualpersonality

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Cross-Cultural ConsumerAnalysis

Similarities anddifferences amongpeople

The growing global

middle class The global teenage

market

Acculturation

Growing in Asia, SouthAmerica, and EasternEurope

Marketers should focuson these markets

Issues

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Cross-Cultural ConsumerAnalysis

Similarities anddifferences amongpeople

The growing global

middle class The global teenage

market

Acculturation

There has been growth inan affluent global teenageand young adult market

They appear to havesimilar interests, desires,and consumption behaviorno matter where they live.

Issues

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Problems in Cross Cultural Marketing

Problems related to product selection: For example, the 7 billion Kellog of the U.S., a

veteran of the global breakfast cereals market hasrealised that its initial reading of would be

customers was incorrect. The firm needs toreanalyse how to drive the Indian consumer toadopt readymade breakfast cereals in place ofhis hot, fresh, cereal based, fat free rice idli.

Kraft blends different coffees for the British (whodrink their coffee with milk), the French (who drinktheir coffee black)

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Problems related to promotion/ marketingcommunication:

The same colour may have different meaning in variouscountries. The colour blue, in Holland conveys a

feeling of warmth, in Iran blue colour is associatedwith death, whereas in India blue colour signifies

purity.Purple is associated with death in Burma andsome Latin American nations; white is a mourningcolour in India; and green is associated with disease

in Malaysia Norway, Belgium, and France do not allow cigarettes

and alcohol to be advertised on TV

Austria and Italy regulate TV advertising to children

Saudia Arabia does not want advertisers to use womenin ads

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Problems related to pricing : Sometimes marketers price their products lower in

the foreign market because, they feel incomes arelow so a low price is necessary to sell the products.Or the marketer may want to dump the goods i.e.,he may charge a lesser price in the foreign marketthan in the home market, since they feel that thesegoods have no market at home.

Problems related to the selection of distribution

channel There are striking differences in the number and type of

middlemen serving each foreign market. For example, tosell soap in Japan, Procter & Gamble had to work out acomplicated distribution network. Having such a long

distribution network may result in doubling or tripling ofthe consumers price over the importers price.

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P & G----- General wholesaler-------Basic product

speciality wholesaler------------ regionalwholesaler---------local wholesaler--------retailers

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Few of the differences in the behaviour patternin the consumer markets over the world

The average Frenchman uses almost twice asmany cosmetics and beauty aids as does his wife

Italian children like to eat a bar of chocolatebetween two-slices of bread as a snack

The Germans and the French eat more packagedbranded spaghetti than the Italians

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Some business norms and behaviouralso vary from country to country

American business executives prefer to keep areasonable distance during business talk

American business executives come to the pointquickly, where as Japanese business executives

need time to mutually discuss the issue and taketime before taking a decision