CHAPTER THIRTEEN CrossCultural Consumer Behavior An International Perspective

CHAPTER THIRTEEN Cross-Cultural Consumer Behavior: An International Perspective

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 as. Be Used. Copyright 2010 Pearson Education, Inc. Publishing Prentice Hall Chapter Thirteen Slide 2

Under What Circumstances Would This English-Language Ad Attract Affluent Consumers from Largely Non-English Speaking Countries? Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Thirteen Slide 3

If They Frequently Visit the United States and Regularly Read American Upscale Magazines Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Thirteen Slide 4

The Imperative to Be Multinational • Global Trade Agreements – EU – NAFTA • Winning Emerging Markets • Acquiring Exposure to Other Cultures • Country-of-origin Effects Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Thirteen Slide 5

The Best Global Brands - Table 13. 1 1. Coca-Cola 2. IBM 3. Microsoft 4. GE 5. Nokia 6. Toyota 7. Intel 8. Mc. Donald’s 9. Disney 10. Google Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Thirteen Slide 6

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 4 Ps. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Thirteen Slide 7

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 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Thirteen Slide 8

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 Australian consumers boycott French products Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Thirteen Slide 9

Why Do Most Global Airlines Stress Pampering Business Travelers in Their Ads? Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Thirteen Slide 10

Upscale International Business Travelers Share Much in Common. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Thirteen Slide 11

Other Country-of-Origin Effects • Mexican study uncovered: – Country-of-design (COD) – Country-of-assembly (COA) – Country-of-parts (COP) Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Thirteen Slide 12

Conceptual Model of COD and COM Figure 13. 2 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Thirteen Slide 13

Cross-Cultural Consumer Analysis The effort to determine to what extent the consumers of two or more nations are similar or different. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Thirteen Slide 14

Cross-Cultural Consumer Analysis Issues • 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 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Thirteen Slide 15

Discussion Questions • Are people becoming more similar? • Why or why not? Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Thirteen Slide 16

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 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall • American Cultural Traits • Individual centered • Emphasis on selfreliance • Primary faith in rationalism • Values individual personality Chapter Thirteen Slide 17

Cross-Cultural Consumer Analysis Issues • 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 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Thirteen Slide 18

Cross-Cultural Consumer Analysis Issues • 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. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Thirteen Slide 19

Cross-Cultural Consumer Analysis Issues • 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 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Thirteen Slide 20

Research Issues in Cross-Cultural Analysis Table 13. 8 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. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Thirteen Slide 21

Table 13. 8 (continued) 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. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Thirteen Slide 22

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 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Thirteen Slide 23

World Brands Products that are manufactured, packaged, and positioned the same way regardless of the country in which they are sold. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Thirteen Slide 24

Why Does One of the World’s Most Highly Regarded Wristwatch Brands Use a Single Global Advertising Strategy (Only Varying the Language)? Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Thirteen Slide 25

They Speak to Them in Their Own Language to Maximize their “Comfort Zone. ” Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Thirteen Slide 26

Cross-Border Diffusion of Popular Culture Figure 13. 6 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Thirteen Slide 27

Are Global Brands Different? • According to a survey – yes • Global brands have: – Quality signal – Global myth – Social responsibility Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Thirteen Slide 28

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 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Thirteen Slide 29

Adaptive Global Marketing • Adaptation of advertising message to specific values of particular cultures • Mc. Donald’s uses localization – Example Ronald Mc. Donald is Donald Mc. Donald in Japan – Japanese menu includes corn soup and green tea milkshakes • Often best to combine global and local marketing strategies Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Thirteen Slide 30

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? Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Thirteen Slide 31

Framework for Assessing Multinational Strategies • Global • Local • Mixed Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Thirteen Slide 32

A Framework for Alternative Global Marketing Strategies - Table 13. 10 COMMUNICATON STRATEGY PRODUCT 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 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Thirteen Slide 33

Cross-Cultural Psychographic Segmentation • The only ultimate truth possible is that humans are both deeply the same and obviously different. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Thirteen Slide 34

Six Global Consumer Segments Strivers Devouts Altruists Intimates Fun Seekers Creatives Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Thirteen Slide 35

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