2-1 © 2007 mcgraw-hill companies, inc., mcgraw-hill/irwin
TRANSCRIPT
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CHAPTERCHAPTER 22
CROSS-CROSS-CULTURAL CULTURAL
VARIATIONS IN VARIATIONS IN CONSUMER CONSUMER BEHAVIORBEHAVIOR
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Consumer Behavior In The News…Consumer Behavior In The News…
SUV’s in China?SUV’s in China?
Yes!Yes!
Expect SUV Segment to be 20% of Market in Expect SUV Segment to be 20% of Market in 2009 (up from 8% in 2004).2009 (up from 8% in 2004).
Barriers: Barriers:
Drivers: Drivers:
Will Trend Sustain in Face of Rising Fuel Will Trend Sustain in Face of Rising Fuel Costs?Costs?
Source: J. B. White, “China’s SUV Surge,” The Wall Street Journal, June 10, 2004, p. B1, B3
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Consumer Behavior In The News…Consumer Behavior In The News…
SUV’s in China?SUV’s in China?
Yes!Yes!
Expect SUV Segment to be 20% of Market in Expect SUV Segment to be 20% of Market in 2009 (up from 8% in 2004).2009 (up from 8% in 2004).
Barriers: Barriers: Traffic Jams, Gov’t Push to Conserve Traffic Jams, Gov’t Push to Conserve Fuel, Cost of FuelFuel, Cost of Fuel
Drivers: Drivers: Bold Image, Greater Capacity, SafetyBold Image, Greater Capacity, Safety
Will Trend Sustain in Face of Rising Fuel Will Trend Sustain in Face of Rising Fuel Costs?Costs?
Source: J. B. White, “China’s SUV Surge,” The Wall Street Journal, June 10, 2004, p. B1, B3
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Marketing Across Cultural Boundaries is Marketing Across Cultural Boundaries is a Difficult and Challenging Taska Difficult and Challenging Task
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The Concept of CultureThe Concept of Culture
CultureCulture is the complex whole that includes knowledge, belief, art, law, morals, customs, and any other capabilities and habits acquired by humans as members of society.
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The Concept of CultureThe Concept of Culture
Although pizza is eaten most everywhere, what is on the pizza can be quite different!
Pepperoni
Squid
Tuna & Corn
Black Bean Sauce
BBQ Chicken
Eggs
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The Concept of CultureThe Concept of Culture
Cultural valuesCultural values give rise to norms and associated sanctionssanctions, which in turn influence consumption patternsconsumption patterns.
Cultures are not static. They typically evolve and change slowly over time.
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Other-Oriented ValuesOther-Oriented Values
Environment-Oriented ValuesEnvironment-Oriented Values
Self-Oriented ValuesSelf-Oriented Values
Variations in Cultural ValuesVariations in Cultural Values
The numerous values that differ across cultures and affect consumption include:
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Variations in Cultural ValuesVariations in Cultural Values
Reflect a society’s view of the appropriate relationships between individuals and groups within that society.
Other-Oriented Values
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Variations in Cultural ValuesVariations in Cultural Values
Prescribe a society’s relationship to its economic and technical as well as its physical environment.
Environment-Oriented Values
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Variations in Cultural ValuesVariations in Cultural Values
Reflect the objectives and approaches to life that the individual members of society find desirable.
Self-Oriented Values
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Variations in Cultural ValuesVariations in Cultural Values
Other-Oriented Values
Individual/CollectiveIndividual/Collective
Youth/AgeYouth/Age
Extended/Limited FamilyExtended/Limited Family
Masculine/Feminine Masculine/Feminine
Competitive/CooperativeCompetitive/Cooperative
Diversity/UniformityDiversity/Uniformity
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Variations in Cultural ValuesVariations in Cultural Values
Individual/CollectiveIndividual/Collective
Are individual activity and initiative valued more highly than collective activity and conformity?
Other-Oriented Values
Asian cultures more collective
U.S. culture more individualistic
pp. 46 questions
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Variations in Cultural ValuesVariations in Cultural Values
Youth/AgeYouth/Age
Other-Oriented Values
Is family life organized to meet the needs of the children or the adults?
Are younger or older people viewed as leaders and role models?
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Variations in Cultural ValuesVariations in Cultural Values
Extended/Limited FamilyExtended/Limited FamilyOther-Oriented Values
To what extent does one have a life-long obligation to numerous family members?
Extended family critical in South/ Central America
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Variations in Cultural ValuesVariations in Cultural Values
Masculine/Feminine Masculine/Feminine
To what extend does social power automatically go to males?
Other-Oriented Values
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Variations in Cultural ValuesVariations in Cultural Values
Competitive/CooperativeCompetitive/Cooperative
Other-Oriented Values
Does one obtain success by excelling over others or by cooperating with them?
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Variations in Cultural ValuesVariations in Cultural Values
Diversity/UniformityDiversity/Uniformity
Does the culture embrace variation in religious belief, ethnic background, political views, and other important behaviors and attitudes?
Other-Oriented Values
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Variations in Cultural ValuesVariations in Cultural Values
Environment-Oriented Values
CleanlinessCleanliness
Performance/StatusPerformance/Status
Tradition/ChangeTradition/Change
Risk taking/Security Risk taking/Security
Problem solving/FatalisticProblem solving/Fatalistic
NatureNature
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Variations in Cultural ValuesVariations in Cultural Values
CleanlinessCleanliness
Environment-Oriented Values
To what extent is cleanliness pursued beyond the minimum needed for health?
U.S. very high on personal hygiene – some think to an extreme!
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Variations in Cultural ValuesVariations in Cultural Values
Performance/StatusPerformance/StatusEnvironment-Oriented Values
Closely related to the concept of power distance, which refers to the degree to which people accept inequality in power, authority, status, and wealth as natural or inherent in society.
Is the culture’s reward system based on performance or on inherited factors such as family or class?
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Variations in Cultural ValuesVariations in Cultural Values
Tradition/ChangeTradition/Change
Is tradition valued simply for the sake of tradition? Is change or “progress” an acceptable reason for altering established patterns?
Environment-Oriented Values
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Variations in Cultural ValuesVariations in Cultural Values
Tradition/Change (Cont.)Tradition/Change (Cont.)
A focus on technology as an indicator of change illustrates some dramatic differences across cultures that show the following:
Environment-Oriented Values
The above represent Internet users and cell phones as a percent of total population
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Variations in Cultural ValuesVariations in Cultural Values
Risk taking/Security Risk taking/Security
Are those who risk their established positions to overcome obstacles or achieve high goals admired more than those who do not?
A society that does not admire risk taking is unlikely to develop enough entrepreneurs to achieve economic change and growth.
Environment-Oriented Values
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Variations in Cultural ValuesVariations in Cultural Values
Problem solving/FatalisticProblem solving/Fatalistic
Are people encouraged to overcome all problems, or do they take a “what will be, well be” attitude?
Is there an optimistic, “we can do it” orientation?
Mexico and Middle-East Countries tend to fall toward the fatalistic end of the continuum.
Environment-Oriented Values
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Variations in Cultural ValuesVariations in Cultural Values
NatureNature
Is nature regarded as something to be admired or overcome?
Environment-Oriented Values
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Variations in Cultural ValuesVariations in Cultural Values
Self-Oriented Values
Active/PassiveActive/Passive
Sensual gratification/AbstinenceSensual gratification/Abstinence
Material/NonmaterialMaterial/Nonmaterial
Hard work/LeisureHard work/Leisure
Postponed gratification/Immediate gratificationPostponed gratification/Immediate gratification
Religious/SecularReligious/Secular
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Variations in Cultural ValuesVariations in Cultural Values
Active/PassiveActive/Passive
Is a physically active approach to life valued more highly than a less active orientation?
Self-Oriented Values
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Variations in Cultural ValuesVariations in Cultural Values
Sensual gratification/AbstinenceSensual gratification/Abstinence
To what extent is it acceptable to enjoy sensual pleasures such as food, drink, and sex?
Cultures differ in their acceptance of sensual gratification.
Self-Oriented Values
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Applications in Consumer BehaviorApplications in Consumer Behavior
Ad for Calvin Klein underwear:
OK in U.S. and France.
Not appropriate in cultures that place a high value on abstinence.
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Variations in Cultural ValuesVariations in Cultural Values
Material/NonmaterialMaterial/Nonmaterial
How much importance is attached to the acquisition of material wealth?
Self-Oriented Values
Two types of materialism:
1.1. Instrumental materialismInstrumental materialism – is the acquisition of things to enable one to do something.
2.2. Terminal materialismTerminal materialism – is the acquisition of items for the sake of owning the item itself.
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Variations in Cultural ValuesVariations in Cultural Values
Hard work/LeisureHard work/Leisure
Is a person who works harder than economically necessary admired more than one who does not?
Self-Oriented Values
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Variations in Cultural ValuesVariations in Cultural Values
Postponed gratification/Immediate gratificationPostponed gratification/Immediate gratification
Are people encouraged to “save for a rainy day” or to “live for today”?
Self-Oriented Values
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Variations in Cultural ValuesVariations in Cultural Values
Religious/SecularReligious/Secular
To what extent are behaviors and attitudes based on the rules specified by a religious doctrine?
Self-Oriented Values
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Cultural Variations in Nonverbal Communications
TimeTime
• Time perspective—the culture’s overall orientation toward time (monochronic monochronic vs. polychronicpolychronic)
• Interpretations assigned to specific uses of time
The meaning of time varies between cultures in two major ways:
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Cultural Variations in Nonverbal Communications
• Overall use and meanings assigned to space vary widely among different cultures
SpaceSpace
-how office space is allocated
-Personal space
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Cultural Variations in Nonverbal Communications
SymbolsSymbols
Colors, animals, shapes, numbers, and music have varying meanings across cultures.
Failure to recognize the meaning assigned to a symbol can cause serious problems!
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Cultural Variations in Nonverbal Communications
RelationshipsRelationshipsHow quickly and easily do cultures form relationships and make friends?
•Americans tend to form relationships and friends quickly and easily.
•Chinese relationships are much more complex. Under the concept of guanxi, an individual can draw upon personal connections/relationships to secure resources or advantages when doing business as well as in the course of social life.
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Cultural Variations in Nonverbal Communications
AgreementsAgreementsHow does a culture ensure business obligations are honored? How are disagreements resolved?
Some cultures rely on a legal system; others rely on relationships, friendships, kinship, local moral principles, or informal customs to guide business conduct.
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Cultural Variations in Nonverbal Communications
ThingsThingsThe cultural meaning of things leads to purchase patterns that one would not otherwise predict.
The differing meanings that cultures attach to things, including products, make gift-giving a particularly difficult task.
For example, what type of gift is appropriate and when does receipt of a gift “require” a gift in return?
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Cultural Variations in Nonverbal Communications
EtiquetteEtiquetteThe generally accepted ways of behaving in social situations.
Behaviors considered rude or obnoxious in one culture may be quite acceptable in another!
Normal voice tone, pitch, and speed of speech differ between cultures and languages, as do the use of gestures.
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Cultural Variations in Nonverbal Communications
EtiquetteEtiquetteMeishi is an important aspect of Japanese business etiquette…”a man without a Meishi has no identity in Japan.” What is Meishi? It is the exchange of business cards!
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Global Cultures
A Global Teenage Culture?
•Mass media and the Internet have had an impact of uniformity among teens around the world.
•They tend to watch many of the same shows, see the same movies and videos, listen to the same music, and they tend to dress alike.
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Global Demographics
DemographicsDemographics describe a population in terms of its size, structure, and distribution.
•Demographics are both a result and a cause of cultural values.
•For example, densely populated societies, such as China, are likely to have more of a collective orientation than an individualistic one.
•Disposable income is one aspect of demographics--the rapid growth in personal income in parts of China has led to an overall market explosion!
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Global Demographics
A critical aspect of demographics for marketers is income--specifically the distribution of income.
One country with a relatively low average income can have a sizable middle-income segment, while another country with the same average income may have most of the wealth in the hands of a few individuals.
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Global Demographics
Country GDP (per capita)
% of total income (to top 10%)
Brazil $ 7,600 48%
China 5,000 30
United Kingdom
27,700 28
United States 37,800 31
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Global Demographics
Marketers increasingly use Purchasing Power Parity (PPP)Purchasing Power Parity (PPP) rather than average or median income to evaluate markets. PPPPPP is based on the cost of a standard market basket of products bought in each country.
Country Per Capita Income Per Capita PPP
Brazil $ 7,600 $ 7,480
China 1,100 4,990
United Kingdom 28,350 27,650
United States 37,610 37,500
The following shows the same countries in terms of PPP:
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Cross-Cultural Marketing Strategy
Considerations in Approaching a Foreign Market1.1. Homogeneous versus Heterogeneous with Respect to Homogeneous versus Heterogeneous with Respect to
Culture?Culture?
2.2. What Needs Can the Product Fill in this Culture?What Needs Can the Product Fill in this Culture?
3.3. Can Enough People Afford the Product?Can Enough People Afford the Product?
4.4. What Values are Relevant to the Purchase and Use of the What Values are Relevant to the Purchase and Use of the Product?Product?
5.5. What are the Distribution, Political and Legal Structures for What are the Distribution, Political and Legal Structures for the Product?the Product?
6.6. In What Ways Can We Communicate About the Product?In What Ways Can We Communicate About the Product?
7.7. What are the Ethical Implications of Marketing This Product What are the Ethical Implications of Marketing This Product in This Country?in This Country?