International marketing presenatation week 4

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Cultural Differences In, and Influences On, Consumers’ Propensity to adopt innovation

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International marketing presenatation week 4

  1. 1. Cultural Differences In, and Influences On, Consumers’ Propensity to adopt innovation Sangeeta Singh, 2006 Lisa Hanley, Louise Dewaele, Tom Cella 1
  2. 2. Overview  Introduction  Objectives  Study 2
  3. 3. Diffusion Theory 3
  4. 4. Innovators and Imitators  Innovators  Imitators  Influenced into adopting because of their internal predispositions.  Adopt due to external influences  Consist of early adopters, early majority, late majority and laggards.  Influenced in timing of purchase by members of society  Not influenced in timing of purchase by other members of society 5
  5. 5. Culture and Consumption Behaviour  Culture not only affects the specific products people buy but also the structure of consumption, individual decision making and communication about the product.  Hostede (1980) has identified four dimensions that account for the variability across cultures.  Individualism/ Collectivism  Power Distance  Uncertainty Avoidance  Masculinity/ Feminity 6
  6. 6. Assumptions  Strong Uncertainty Avoidance- high imitation  Weak Uncertainty Avoidance- high innovation  Individualist- more innovative  Small Power Distance- Higher innovation  Larger Power Distance- Higher imitation  Masculine cultures- High innovation Feminine- More likely to imitate  Collectivist- conform & imitate  7
  7. 7. Discussion  In conclusion, innovators have   Weak Uncertainty Avoidance   Small Power Distance Masculine qualities  While they did find differences across cultures in consumers’ propensity to innovate, they did not find noteworthy variations in consumers’ propensity to imitate Imitators have…  Large Power Distance  Strong Uncertainty Avoidance  Feminine qualities 8
  8. 8. Implications for Marketers  Emphasize unique and new features Rational as opposed to emotional arguments that stress product features and benefits Imitators Employ normative influences  Role models and authority figures   Innovators    After sales service reduces perceived risks  Sales people and Opinion leaders would facilitate acceptance  Distribution of free samples to enable consumers to see the product in use 9
  9. 9. Final Thoughts…  Not helpful in assessing innovators and imitators  While Germany has stronger characteristics that lean towards innovators  Partially useful- greater understanding of cultural influences on innovators.  France does not necessarily show characteristics strongly linked to imitators  Not in sync with Hofstede assumption/ categorizations of what characteristics countries embed Imitator Innovator 10
  10. 10. References  E.M Rogers. Diffusion of innovations, 4th Edition (New York: The Free Press. 1995)  Sangeeta Singh (2006), “Cultural differences in, and influences on, consumers’propensity to adopt innovations,” International Marketing Review, Vol. 23 No. 2, pp. 173-191  "National Culture - Geert Hofstede."Cultural Insights - Geert Hofstede. N.p., n.d. Web. 10 Oct. 2013. <http://geert-hofstede.com/national-culture.html>. 4

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