This theoretical model of culture’s influence on behavior gives us a sense of how culture combines with personality traits to build our beliefs and values. This forms our attitudes, which combine with social norms to determine how we intend to behave, and consequently do behave, in given situations.
The core values have to meet these three criteria. They have to be pervasive, where a significant portion of the population accepts this value. They have to be enduring, lasting for a significant period of time, and they must be consumer related,in that they help us understand consumption.
Most marketers agree that it is important to be a global marketer in order to survive in the market. But they also realize there are serious challenges in global marketing.Most governments are working to help the movement of goods and services by creating changes in their government. Consider the European Union’s effort to form a single market and the establishment of NAFTA, which aids the U.S., Canada, and Mexico in trade relations. These are two strong examples of the government’s role in expanding business. This web link takes you to an English-language homepage of the European Union’s website.In addition to changes in these large countries, marketers must realize that about 85% of the world’s population live in what are classified as emerging markets and include Brazil, Russia, India, and China to name a few. These countries, like the rest of the world, are being exposed to cultures from other countries and have increased interest in global products.
According to BusinessWeek, Coca-Cola is the most valuable brand in the world with a brand value of almost $67 billion. This web link goes to the Coca-Cola homepage. As with many global brands, the first question you see when you enter the web site is “Which country are you from?”
Consumers will differ in their perceived image of a product based on the country of origin (COO). COO often makes it easier for a consumer to make a decision. For example, it might be easier to pick a wine if you just choose a French wine because you know France is known for its wine.Research has shown a tie between NFC (need for cognition) and country of origin assessment.
There are some groups of consumers which can be labeled high-animosity consumers when considering country of origin. The Chinese are reacting to their occupation in WWII by Japan, the Jewish consumers to the Holocaust, and some New Zealand and Australian consumers to France’s nuclear tests in the South Pacific.
A Mexican study decomposed COO into these three entities. Origin is now further broken into where the product was designed, assembled, and/or where the raw materials are produced. The results of the study showed differences between Mexicans and Americans and differences in age in their country-of-origin effects. On the next slide, you can see a model of COD and COM.
In this model, we can see the impact of COD and COM on the perception of branded products. You can see the impact of COD and COM on perceived product quality.
Cross-cultural consumer analysis, the similarity and differences between consumers in several nations, is important when deciding whether or not to enter a foreign market. The analysis carefully considers the psychological, social, and cultural similarities and differences among people.
The more similar two nations, the more likely the marketer can use similar marketing strategies.As a basis of similarity, marketers often look to see if a country is more collective in its culture vs. individualistic. This is really the difference between a “we” culture and an “I” culture. In a few slides, you can see detailed differences between a Chinese and an American consumer.
We can see some of the traits that are examined are values, faith, and attitude to authority.
The middle class will grow globally with the largest growth coming from China and India. This creates significant opportunity to marketers who provide products and services for this middle class. In some countries, the middle class is very large. South Korea is considered to have more than 90 percent of its population as middle class.
The interesting thing about the teen market is the similarities teens share even when they live in vastly different countries. Marketers realize that teens in most countries value their cell phone and online sources.
We have learned in previous chapters that when someone moves to a new country, they go through an acculturation process where they learn the customs, rituals, and attitudes. Marketers must put themselves through an acculturation process before trying to market to a new country. If they don’t truly understand the values, beliefs, and customs of the society, they cannot really market products effectively.
Cross-cultural analysis is very difficult for many reasons. This chart gives some examples of the basic issues that multinational marketers must consider when planning cross-cultural research.
Some marketers will argue that since people are becoming more alike in so many countries, that one marketing strategy, with some small adjustments in language, are cost effective and a better idea. Other marketers believe there are national borders and that marketing strategies must stay local. This slide lists several issues which will be explored in more detail on the following slides.
World brands are often created with very high-end products targeted to an affluent market. But beyond this, other marketers, including P&G, have moved to a world brand for a small percent of their product portfolio.
Here is a model of cross-border diffusion of popular culture. Some interesting parts of this model include promotion and distribution and the central role of the early adopter.
Research tells us that global brands are indeed viewed differently than local brands. Because a brand is global, consumers worldwide must believe in it so it must be of good quality. The global myth characteristic is related to how consumers feel about themselves. The global brands make them feel like a citizen of the world, whereas a local brand gives them less power and identity. Finally, global brands tend to show more social responsibility than local brands. In part because of their sales revenue and their investment in many countries, they are viewed as more socially responsible.
At first, one would think the power of a global brand would enable it to be more successful with brand extensions. This does not turn out to be true because people are not holistic in their thinking – they do not take the overall brand name and apply it to any product group – it remains specific for the product category in which it built its reputation.
Some marketers do not want a common message, positioning, and product offering throughout the world. Some, including McDonald’s, Levi’s, and Reebok, prefer to use multi-local strategies. They create different brand images for their products for different countries. The best approach is often to combine an overall global strategy with local executions which match the cultural differences of the target countries. This gives the power of a world brand combined with local marketing strategies to adapt to the different cultures.This web link will take you to a Japanese McDonald's menu which Google will translate for you. Notice how many of the products are available in other countries yet a few are unique to Japanese tastes.
Many frameworks have been created to help marketers decide whether they should focus on global, local, or mixed strategies. The framework on the following slide will guide you through some of this decision making.
The two main areas a marketer must consider in localized marketing strategies are their product and communications strategy. Can they sell the same product in each country or do local differences require a localized product? Food products often need to be localized as countries differ in their response to such flavors as spiciness, saltiness, sweetness, and use of ingredients. Product standardization works well on technical products. The localization of the message is a decision that is distinct from that of the product. It will depend heavily on language issues and differences in involvement level of the product.
This is the best way of looking at global marketing, by examining psychographic groups. For example, the percent of the U.S. female population that works outside the home is the same as the percent of the Japanese female population. But when we look at the psychographics of these groups, we find that they have very different consumer behavior and attitudes to certain products.
After extensive research of 35,000 customers in 35 countries, researchers created these six global value groups or segments. The strivers are ambitious and materialistic, the devouts responsible and respectful, the altruists unselfish in their concern for others, the intimates focus on social relationships, the fun seekers are young in age and outlook and value a good time, and the creatives seek knowledge and have interests in books and new media.
CultureInfluence of Culture onConsumer Behavior
CultureThe sum total of learnedbeliefs, values, andcustoms that serve toregulate the consumerbehavior of members ofa particular society.2
A Theoretical Model of Culture’s Influenceon Behavior3
The Invisible Hand of Culture44Each individualperceives theworldthrough hisown culturallens
Culture Satisfies Needs• Food and Clothing• Needs vs. Luxury55
In Terms of “Culture,” Do You Consider This Product toBe a “Good Morning” Beverage? Why or Why Not?6
Culture Is Learned• Enculturation andacculturation• Language andsymbols• Ritual• Sharing of culture• Enculturation– The learning of one’sown culture• Acculturation– The learning of a new orforeign cultureIssues7
Culture Is Learned• Enculturation andacculturation• Language andsymbols• Ritual• Sharing of cultureIssues • Without a commonlanguage ,shared meaningcould not exist• Marketers must chooseappropriate symbols inadvertising• Marketers can use“known” symbols forassociations8
Culture Is Learned• Enculturation andacculturation• Language andsymbols• Ritual• Sharing of cultureIssues• A ritual is a type ofsymbolic activity consistingof a series of steps• Rituals extend over thehuman life cycle• Marketers realize thatrituals often involveproducts (artifacts)9
Selected Rituals and Associated ArtifactsSELECTED RITUALS TYPICAL ARTIFACTSWedding White gown (something old, somethingnew, something borrowed, somethingblue)Birth of child U.S. Savings Bond, silver baby spoonBirthday Card, present, cake with candles50th Wedding anniversary Catered party, card and gift, display ofphotos of the couple’s life togetherGraduation Pen, U.S. Savings Bond, card, wristwatchValentine’s Day Candy, card, flowersNew Year’s Eve Champagne, party, fancy dress10
Culture Is Learned• Enculturation andacculturation• Language andsymbols• Ritual• Sharing of CultureIssues• To be a culturalcharacteristic, a belief,value, or practice must beshared by a significantportion of the society• Culture is transferredthrough family, schools,houses of worship, andmedia 11
Culture is Dynamic• Evolves because it fills needs• Certain factors change culture– Technology– Population shifts– Resource shortages– Wars– Changing values– Customs from other countries1212
The Measurement of Culture• Content Analysis• Consumer Fieldwork• Value MeasurementInstruments13
ContentAnalysisA method forsystematically analyzingthe content of verbaland/or pictorialcommunication. Themethod is frequentlyused to determineprevailing social valuesof a society.14
Which Cultural ValueIs Portrayed, and How So?15
Which Cultural ValueIs This Ad Stressing, and How So?16
Consumer Fieldwork• Field Observation– Natural setting– Subject unaware– Focus on observation of behavior• Participant Observation1717
American Core ValuesCriteria for Value Selection• The value must be pervasive.• The value must be enduring.• The value must be consumer-related.18
American Core ValuesAchievementand successActivityEfficiency andpracticalityProgressMaterialcomfortIndividualism FreedomExternalconformityHumanitarianism YouthfulnessFitness andhealth19
Scale to Measure AttitudeToward Helping OthersAttitude toward helping others (AHO)• People should be willing to help others who areless fortunate• Helping troubled people with their problems isvery important to me• People should be more charitable toward others insociety• People in need should receive support from others2020
Toward a Shopping Culture• Is shopping what we do to create value in ourlives?• The younger generation is shopping more• This has an effect on credit card debt21
The Imperative to Be Multinational• Global TradeAgreements– EU– NAFTA• Winning EmergingMarkets• Acquiring Exposure toOther Cultures• Country-of-origin Effects31
The Best Global Brands1. Coca-Cola2. IBM3. Microsoft4. GE5. Nokia6. Toyota7. Intel8. McDonald’s9. Disney10.Google32
Country of Origin Effects:Positive• Many consumers may take into considerationthe 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 machinery33
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 and Australian consumers boycott Frenchproducts34
Why Do Most GlobalAirlines Stress PamperingBusiness Travelers in Their Ads?35
Upscale International BusinessTravelers Share Much in Common.36
Other Country-of-Origin Effects• Mexican study uncovered:– Country-of-design (COD)– Country-of-assembly (COA)– Country-of-parts (COP)37
Cross-CulturalConsumerAnalysisThe effort todetermine to whatextent theconsumers of twoor more nations aresimilar or different.39
Cross-Cultural Consumer Analysis• Similarities anddifferences amongpeople• The growing globalmiddle class• The global teen market• Acculturation• The greater the similaritybetween nations, themore feasible to userelatively similar marketingstrategies• Marketers often speak tothe same “types” ofconsumers globallyIssues40
Comparisons of Chinese and AmericanCultural Traits• Chinese Cultural Traits• Centered on Confuciandoctrine• Submissive to authority• Ancestor worship• Values a person’s dutyto family and state• American Cultural Traits• Individual centered• Emphasis on self-reliance• Primary faith inrationalism• Values individualpersonality41
Cross-Cultural Consumer Analysis• Similarities anddifferences amongpeople• The growing globalmiddle class• The global teen market• Acculturation• Growing in Asia, SouthAmerica, and EasternEurope• Marketers should focuson these marketsIssues42
Cross-Cultural Consumer Analysis• Similarities anddifferences amongpeople• The growing globalmiddle class• The global teen market• Acculturation• There has been growth in anaffluent global teenage andyoung adult market.• They appear to have similarinterests, desires, andconsumption behavior nomatter where they live.Issues43
Cross-Cultural Consumer Analysis• Similarities anddifferences amongpeople• The growing globalmiddle class• The global teen market• Acculturation• Marketers must learneverything that isrelevant about theusage of their productand product categoriesin foreign countriesIssues44
Research Issues in Cross-Cultural Analysis45FACTORS EXAMPLESDifferences in language and meaning Words or concepts may not mean thesame in two different countries.Differences in market segmentationopportunitiesThe income, social class, age, and sex oftarget customers may differ dramaticallyin two different countries.Differences in consumption patterns Two countries may differ substantially inthe level of consumption or use ofproducts or services.Differences in the perceived benefits ofproducts and servicesTwo nations may use or consume thesame product in very different ways.
Table (continued)46FACTORS EXAMPLESDifferences in the criteria for evaluatingproducts and servicesThe benefits sought from a service maydiffer from country to country.Differences in economic and socialconditions and family structureThe “style” of family decision makingmay vary significantly from country tocountry.Differences in marketing research andconditionsThe types and quality of retail outletsand direct-mail lists may vary greatlyamong countries.Differences in marketing researchpossibilitiesThe availability of professional consumerresearchers may vary considerably fromcountry to country.
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 MultinationalStrategies4747
WorldBrandsProducts that aremanufactured,packaged, andpositioned the sameway regardless of thecountry in which theyare sold.48
Why Does One of the World’s Most Highly RegardedWristwatch Brands Use a Single Global AdvertisingStrategy (Only Varying the Language)?49
They Speak to Them in Their Own Language toMaximize their “Comfort Zone.”50
Are Global Brands Different?• According to a survey – yes• Global brands have:– Quality signal– Global myth– Social responsibility52
Multinational Reactions toBrand Extensions• A global brand does not always have successwith brand extensions• Example Coke brand extension – Cokepopcorn– Eastern culture saw fit and accepted the brandextension– Western culture did not see fit53
Adaptive Global Marketing• Adaptation of advertising message to specificvalues of particular cultures• McDonald’s uses localization– Example Ronald McDonald is Donald McDonald inJapan– Japanese menu includes corn soup and green teamilkshakes• Often best to combine global and localmarketing strategies54
Framework for AssessingMultinational Strategies• Global• Local• Mixed55
COMMUNICATONSTRATEGYSTANDARDIZEDCOMMUNICATIONSLOCALIZEDCOMMUNICATIONSSTANDARDIZEDPRODUCTGlobal strategy:Uniform Product/ UniformMessageMixed Strategy:Uniform Product/Customized MessageLOCALIZEDPRODUCTMixed strategy:Customized Product/Uniform MessageLocal Strategy:Customized Product/Customized MessagePRODUCTSTRATEGYA Framework for Alternative GlobalMarketing Strategies56
Cross-CulturalPsychographic Segmentation• The only ultimate truth possible is thathumans are both deeply the same andobviously different.57
Six Global Consumer Segments58Strivers DevoutsAltruists IntimatesFunSeekersCreatives