CULTURE AND CONSUMER BEHAVIOUR

Ray Bawania and Abhishek Chand

Definition of Culture• “Culture is the collective programming of the

human mind.” Hofstede (1991) • Culture in this sense is a system of collectively

held values. Culture is everything that people have, think, and do as members of their society, which demonstrating that culture is made up of – Material objects– Ideas, values, attitudes and beliefs

First of all• There is nothing good or bad about Culture. There are only

differences. • Understanding Cultural differences are often the determining

factor in success or failure in business

Cultural Adaptation

• Cultural Adaptation is the process of “adjusting the native ways of thinking and behaviors to be consistent with the local culture” (Kotler, 1982).

• Adaptation Vs Standardization• You can either stick to your firms original

characteristics when expanding (standardization approach) or you can adapt to the new culture (adaptation approach).

Lining Up in Different Countries - Canada

Lining Up in Different Countries - India

Lining Up in Different Countries - Philippines

How Culture Dictates

Consumer Behaviour

How McDonald’

s Has Understoo

d Local Culture

Sample of McDonald’s Utilizing the

‘Glocalization’ Strategy

The Cardboard

Box of Dreams

Canadian Culture

Culture can work For or Against Companies

• For:– If a Chinese company wants to expand into North

America it could take advantage of cultural celebrations like Halloween

• Against:– If an American company goes into China but ignores

the value of selling items targeted towards Singles Day

Conclusion

• Most evidence shows that firms that expand need to use a strategy of cultural adaptation rather standardization

• A good example of this is McDonald’s – They have made significant changes on their products and service based on the local taste, values, custom, dining habits and language in the countries they operate in.

So Are We All Still Buying from the Same Clown?

QUESTIONS?

Works Cited• Foscht, Thomas, et al. "The Impact of Culture on Brand Perceptions: A Six-Nation Study."

Journal of Product & Brand Management 17.3 (2008): 131-42. Web. 10 May 2016• Hofstede, G. (1991). Cultures and organizations: Software of the mind. London: McGraw-Hill.• Kelly, N. (2012, October 8). McDonald’s’ Local Strategy, from El McPollo to Le McWrap

Chèvre. Retrieved May 10, 2016, from https://hbr.org/2012/10/mcdonalds-local-strategy-from• Kotler P. (1982) Global Standardization-Courting Danger, The Journal of Consumer Marketing,

3 (2) spring.• Mohamed, K. (2014). Role of Cultural Adaptation in International Retailing. Journal of

Marketing & Management Research, 4(10), 1–9.• Mooij, Marieke, and Geert Hofstede. "Cross-Cultural Consumer Behavior: A Review of

Research Findings." Journal of International Consumer Marketing (2011): 181-92. Print.• Prahalad, C. K., & Lieberthal, K. (2003). The End of Corporate Imperialism. Harvard Business

Review, 81(8), 109-117.