Consumer Behavior Eighth Edition SCHIFFMAN KANUK Chapter 14

Consumer Behavior, Eighth Edition SCHIFFMAN & KANUK Chapter 14 Cross-Cultural Consumer Behavior: An International Perspective 14 -1

The Imperative To Be Multinational • Global Trade Agreements – EU – NAFTA • Acquiring Exposure to Other Cultures • Country-of-origin Effects 14 -2

The World’s Most Valuable Brands • • • 14 -3 1 Coca-Cola 2 Microsoft 3 IBM 4 GE 5 Nokia • • • 6 Intel 7 Disney 8 Ford 9 Mc. Donald’s 10 AT&T

Figure 14. 1 The Importance of Country of Origin Effects 14 -4

Country of Origin Effects: Negative and Positive • Many Chinese consumers consider Sony high-end and high-quality, but may refuse to buy due to animosity toward Japan – High-animosity consumers own fewer Japanese products than low-animosity consumers 14 -5

Issues in Cross-Cultural Consumer Analysis • • Similarities and Differences Among People Time Effects The Growing Global Middle Class Acculturation – Research Techniques 14 -6

Table 14. 2 Some Comparisons Chinese Cultural Traits • Centered on Confucian doctrine • Submissive to authority • Ancestor worship • Values a person’s duty to family and state 14 -7 American Cultural Traits • Individual centered • Emphasis on selfreliance • Primary faith in rationalism • Values individual personality

The Effect of Guo Qing • Due to the one-child policy in China, families emphasize high quality purchases for their “little emperor. ” • Children in China are given more than $3 billion collectively to spend as they wish and influence about 68% of parental spending. 14 -8

Table 14. 3 The Pace of Life SPEED IS RELATIVE (rank of 31 countries for overall pace of life and for three measures) OVERALL PACE WALKING 60 FEET POSTAL SERVICE PUBLIC CLOCK Switzerland 1 3 2 1 Ireland 2 1 3 11 Germany 3 5 1 8 Japan 4 7 4 6 Italy 5 10 12 2 England 6 4 9 13 Sweden 7 13 5 7 Austria 8 23 8 3 Netherlands 9 2 14 25 Hong Kong 10 14 6 14 14 -9

Acculturation 14 -10 The learning of a new “foreign” culture.

Table 14. 4 Basic Research Issues in Cross-Cultural Analysis 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. 14 -11

Table 14. 4 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. 14 -12

Alternative Multinational Strategies: Global Versus Local • Favoring a “World Brand” • Adaptive Global Marketing • Framework for Assessing Multinational Strategies – Global – Local – Mixed 14 -13

Figure 14. 3 Leading Wrist. Watch Manufacturer Uses Global Advertising Strategy 14 -14

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World Brands 14 -16 Products that are manufactured, packaged, and positioned the same way regardless of the country in which they are sold.

Table 14. 6 A Framework for Alternative Global Marketing Strategies PRODUCT STRATEGY 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 14 -17

Table 14. 8 Six Global Consumer Segments 14 -18 Strivers 23% Devouts 22% Altruists 18% Intimates 15% Fun Seekers 12% Creatives 10%

Marketing Mistakes: A Failure to Understand Differences • Product Problems • Promotional Problems • Pricing and Distribution Problems 14 -19

Mistake Samples • Snapple: Japanese consumers preferred clear, less sweet iced tea • Oreos: Japanese consumers only wanted to eat the base - no cream. • Ikea: American windows are taller than European windows. 14 -20

Consider Color • Meanings of Blue – Holland - warmth – Iran - death – Sweden - coldness – India - purity 14 -21 • Meanings of Yellow – U. S. - warmth – France - fidelity