This document discusses cross-cultural variations in consumer behavior across several chapters. It covers the concept of culture and how values, norms, and sanctions vary across societies and influence areas like consumption, communications, and relationships. Specific cultural values around individualism/collectivism, family structures, gender roles, risk-taking, and time orientation are examined. Nonverbal communication factors like the meaning of numbers, colors, symbols, and concepts of time and space are also culturally dependent. The document stresses the importance of understanding differences in cultures, values, demographics, and addressing ethical implications when expanding into foreign markets.

1. CHAPTER TWO
Cross-Cultural Variations
in Consumer Behavior
McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

2. 2
CHAPTER 2
Cultural Factors

3. 3
CHAPTER 2
The Concept of Culture
• Culture: The complex whole that
includes knowledge, belief, art, law,
morals, customs, and any other
capabilities and habits acquired by
humans as members of society
• Key issues:
• Comprehensive
• Acquired
• Boundaries
• Seldom Aware

4. 4
CHAPTER 2
Values, Norms, and Sanctions

5. 5
CHAPTER 2
Variations in Cultural Values
Environment-
oriented
values
Other-
oriented
values
Self-
oriented
values
Consumption
Purchase
Communications
Society’s view
of relationships
between people
Society’s view
of relationships
with environment
Objectives/
approaches
to life society
finds desirable

6. 6
CHAPTER 2
Other-oriented Values
• Individual/Collective: Membership
• Extended/Limited Family: Grandparents
• Adult/Child: US versus other Countries
• Masculine/Feminine: Rank, Prestige
• Competitive/Cooperative: Comparative Ads
• Youth/Age: Elders

7. 7
CHAPTER 2
Environment-oriented Values
• Cleanliness: How Much?
• Performance/Status: Branded Goods
• Tradition/Change: Innovation
• Risk taking/Security: Entrepreneur
• Problem-solving/Fatalistic: Acceptance
• Nature: Social Responsibility

8. 8
CHAPTER 2
Self-oriented Values
• Active/Passive: DO SOMETHING!
• Material/Nonmaterial: Instrumental/Terminal
• Hard work/Leisure: Vacation?
• Postponed gratification/Immediate
gratification: Credit
• Sensual gratification/Abstinence: Differences
• Humor/Serious: Superficial

9. 9
CHAPTER 2
Consumer Insight 2-1
• The coffee bar concept, coupled with high-
quality, strongly flavored coffee, obviously
transferred successfully from the Italian to the
American culture. However, America has
traditionally embraced coffee. Will Starbucks
work in countries where tea is the dominant
drink?
• What values will affect Starbucks’ success in
China?
• What ethical issues should Starbucks consider as
it enters developing countries?

10. 10
CHAPTER 2
Language Issues…

11. 11
CHAPTER 2
Factors Influencing Nonverbal Communication

12. 12
CHAPTER 2
Nonverbal Factors
• Time
• Time perspective
• Meanings in the Use of Time
• Space
• Office Space
• Personal Space
• Symbols

13. 13
CHAPTER 2
The Meaning of Numbers, Colors, & Symbols

14. 14
CHAPTER 2
Nonverbal Factors (continued)
• Friendship
• The concept of guanxi
• Agreements
• Things
• Etiquette

15. 15
CHAPTER 2
Global Demographics
• Purchasing Power Parity
• Different Cultures are…Different!
• Knowing and Addressing is the Trick

16. 16
CHAPTER 2
Approaching a Foreign Market
• Geographic area
• Are needs the same?
• Size of market?
• Are values consistent?
• Distribution, Politics, and Legal structures?
• How do we communicate?
• Are there any ethical implications?