Multicultural Marketing 3rd SessionCross culture consumer behavior & Local Consumer and Globalization of Consumption
Today’s Agenda Convergence of Marketing Environments Marketing Research Group Work Class Assignment 2 Individual Quiz 3 (last quiz) Slides for this can be found on Slideshare
Reminder 4 Quizzes = 30% (individual) You have already done one quiz 4 Case Studies = 30% (to be done in groups) 1 Final Group Project Details will be given at the end of the class with a link to the details and deadline. Rules: Latecomers to come in class after break If you are caught talking to much, you will be sent out of the class.
Class Group AssignmentPlease write on an A4 sheet of paper.Write all group member names clearly.Write the title as Assignment no. 1All write down the question which is belowWhy can word-of-mouth communication amongpeople be considered as a fairly robust consumer behavior concept cross-culturally?
Assignment AnswerThe core concept : In all cultures, people communicate on a many topics, includingwhat they buy, their consumption experiences, what they plan to buy. However, someaspects of word-of-mouth (WOM) may differ cross-culturally, such as: The extent to which people speak about consumption experiences; it may be considered as trivial and a lack of “savoir-vivre” to speak about what one has bought or used. The extent to which people consider it appropriate to speak about particular attributes of the consumption experience (price, for instance, may be tabooed). The extent to which people consider it normal to emit negative WOM messages (defaming others). The extent to which people consider that negative WOM can backfire on them, especially in small cultural communities where the source of negative WOM risks being identified by a powerful target. The extent to which WOM influences future purchase decisions.
Quiz 2 - IndividualYou are free to use any resource (Internet, Dictionary, your notes)No discussions amongst yourselves.Use an A4 sheet and write your name and the Quiz Number clearly.‘Dating’ is a very curious concept for many people. In anycase it cannot be fully translated into many languages andsimply means ‘making an appointment’.Compare what dating means to Americans with what itmeans in other cultures, demonstrating how the complexprocess of finding a partner for life can be commercialized indifferent contexts.Hint: Choose a country (France, Taiwan) or a society(Asian, Muslims) and compare it to American Dating sites.
Quiz Answer There has been a number of articles in the Journal of Consumer Research about dating and the forms of consumption, gifts, restaurants, etc. which are associated with dating in the United States. Some phrases are typically associated with dating such as boy friend or girl friend, often used untranslated in other languages. The purpose of this comparison is to understand how cultural differences in this area (what a date means, acceptance of non-married couples, of people kissing each other in the street, etc.) are associated with consumption rituals such as gift-giving, birthday presents, first-buy-ever, etc. (his first car, her first ring, etc.).
Convergence of Marketing Environments Local Marketing Environments Marketing: Borrowed Concepts and Practices Regional Convergence Limitations of Convergence
Local Marketing Environments Local knowledge is important because it is operational Understanding local marketing environments: Self-criticism is a necessary perspective because we understand our environment from our own perspective. There is always a reference point that force us to make a judgment High-context international marketing is infused with local knowledge.
Local Marketing Environment Economic Environment prices are adapted by global marketers so that they fit with local purchasing power Income and wealth inequalities are closely related to power distance Political Environment Political aspects of the local environment are generally associated with political risk (nationalization, coups) Joint Ventures, Licensing, Contribute to country’s economy Legal Environment No real universal law. Communist Law, civil code, shariah, socialist law.
Marketing: Borrowed Concepts Marketing concepts and practices were initially developed in the USA and have continued to spread because of the success of US-based companies in global markets. Marketing vocabulary is now used worldwide: ‘mailing’, ‘media planning’ and ‘merchandising’ are all familiar words. In French companies one often finds a directeur du marketing (vice president, marketing) and a directeur commercial (vice president, sales). The French directeur commercial is actually responsible for a large part of what Americans call ‘marketing’ as a functional area. In the United States a vice president, marketing, would more commonly deal with marketing strategy as well as sales and advertising.
Regional Convergence Regional integration is now under way, based mostly on trade agreements. The basic assumptions, interaction models and attitudes are to be taken into account in negotiations between nation-states. Therefore, convergence is basically economic (as in the case of the North American Free Trade Agreement, NAFTA), more rarely political (as in the case of the EU, and this with obvious pains). Cultural convergence is a more difficult process: it certainly happens but over a very long period and with people largely unaware of it. Groups of countries can be identified for the purpose of marketing on 2 elements: similarities (which unite them against the rest of the world) differences (which account for the intraregional diversity).
Limitation of Convergence While economic systems are converging towards a market economy, the degree of poverty of a significant group of developing countries has been increasing over the years. Buying and consumption patterns in affluent counties appear to have in fact diverged as much as converged. After 9/11, tourism, hotel, airline, and education industry in countries like the US has faced a lot of decline.
Cross Cultural Market Research The Market Research Procedure Types of Marketing Research International Challenges Legal and Ethical Issues
The Marketing Research Procedure1. Define the research problem (not symptom) and establish research objectives: Broad enough? Influence of local culture?2. Determine the sources of information needed to answer the research objectives Availability, reliability, cost, etc.3. Gather the relevant data from secondary and/or primary sources4. Analyse, interpret, and present the results
Marketing Research Problem Problem-solving Identification Research Research•Market Potential •Segmentation•Market Share •Product•Market characteristics •Pricing•Image •Promotion•Sales •Distribution•Forecasting•Business Trends
Types of Marketing Research Qualitative An exploration of what people do or say Observation Depth interviews Focus groups Quantitative Structured questions where the response options have been predetermined Survey research Experiments Observation
International Challenges Lack & inaccuracy of secondary data Time & cost of primary data Co-ordination across countries Environmental differences leading to complex designs Comparability across countries
General Problems in Secondary Data Availability of Data entire country, regions? Reliability of Data optimistic, understated? quality in developing markets Comparability of Data categories, currencies, frequency, base years, sampling unit Who collected the data? For what purpose? Any reason for purposely misrepresenting the facts? How were data collected? Methodology Are the data internally consistent and logical in light of known data sources or market factors?
General Problems with Primary Data Who should respond? Ability to communicate opinions? Willingness? truthful, taboos, taxes Method suitability? mail, phone, personal interviews, internet Sample adequacy? Lists and techniques Language/comprehension translation meanings attitudes of interviewers and respondents willingness to respond illiteracy & education level
Cross Culture Equivalence Conceptual Equivalence: Similar meaning equivalently weighted or articulated Self image: beauty, youth, friendliness, etc. Perceived risk: social, physical, financial, etc. Functional Equivalence: Similar activities, different functions? preparing a meal? bicycle? watch? Examine the social setting where the product is consumed Translation Equivalence Back Translation, and Parallel Translation E.g. warm/hot vs. Chaud; hair vs. Cheveux and poil Measure Equivalence Perceptual: Colors, smells Metric: scale, meaning Calibration: weight, distance Data Collection Equivalence Willingness to co-operate Response bias: Lessen embarassment
Legal and Ethical Issues Regulatory issues Regulations and guidelines to prevent unfair and deceptive acts Industry standards to guide research activities Privacy issues Included in both regulatory and ethical issues Violating promises of anonymity Identifying unsuspecting respondents Ethical issues Honesty throughout the research process Rights of others (e.g. using competitor information)