Consumer Behaviour - Chapter 2

1. CHAPTER 02
Cross-
Cultural
Variations in
Consumer
Behavior
McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

2. 2-2
PART II: EXTERNAL INFLUENCES

3. L01 Define the concept of culture
Describe core values that vary across culture and
influence behaviors
Understand cross-cultural variations in nonverbal
communications
Summarize key aspects of the global youth culture
Understand the role of global demographics
List the key dimensions in deciding to enter a foreign
market
L02
L06
L05
L04
L03
Learning Objectives
2-3

4. Changing Global Demographics
 Can you guess what percent of purchasing
power is held by Japanese consumers in the
50+ age category?
 25%
 45%
 65%
 80%
Source: “In Asia, Markets Pay Heed to a Growing Older Population,” Advertising Age, October 17, 2011, p. 10.
Consumer Behavior In The News…
2-4

5. Changing Global Demographics
 Percent of purchasing power held by Japanese
consumers in the 50+ age category?
 80%: If you said 80% you were correct!
 Mirrors aging Baby Boom in United States.
 “Easier-to-Use” products key.
 BUT: Electric guitars a big hit too!!!
 Can you relate this to the popularity of karaoke
as business socializing tool in Japan?
Source: “In Asia, Markets Pay Heed to a Growing Older Population,” Advertising Age, October 17, 2011, p. 10.
Consumer Behavior In The News…
2-5

6. 2-6
Marketing Across Cultural Boundaries is a
Difficult and Challenging Task

7. The following Video Clip demonstrates
how Oreo adapts globally to “be the
number one cookie in the world.”
2-7
Video Application

8. 2-8
2-8

9. One-way influence from U.S. to other countries to…
Mutual influence
Global citizens
Global dreamers
Antiglobals
Global agnostics
Globalization changing from
Four major world citizens
2-9
Globalization

10. Culture is the complex
whole that includes
knowledge, belief, art,
law, morals, customs,
and any other
capabilities and habits
acquired by humans as
members of society.
2-10
The Concept of Culture

11. Cultural values give
rise to norms and
associated sanctions,
which in turn influence
consumption patterns.
Cultures are not static.
They typically evolve
and change slowly over
time.
2-11
The Concept of Culture

12. Other-Oriented Values
Environment-Oriented Values
Self-Oriented Values
The numerous values that differ across
cultures and affect consumption include:
2-12
Variations in Cultural Values

13. Other-Oriented Values
Individual/Collective
Youth/Age
Extended/Limited Family
Masculine/Feminine
Competitive/Cooperative
Diversity/Uniformity
2-13
Variations in Cultural Values

14. Environment-Oriented Values
Cleanliness
Performance/Status
Tradition/Change
Risk taking/Security
Problem solving/Fatalistic
Nature
2-14
Variations in Cultural Values

15. Self-Oriented Values
Active/Passive
Sensual gratification/Abstinence
Material/Nonmaterial
Hard work/Leisure
Postponed gratification/Immediate gratification
Religious/Secular
2-15
Variations in Cultural Values

16. Ad for Calvin Klein
underwear:
OK in U.S. and
France.
Not appropriate in
cultures that place a
high value on
abstinence.
Sensual Gratification/Abstinence
2-16
Applications in Consumer Behavior

17. 2-17
Cultural Variations in Nonverbal
Communications

18. Time
• Time perspective
• Time Interpretations
The meaning of time varies
between cultures in two major
ways:
2-18
Cultural Variations in Nonverbal
Communications

19. • Overall use and meanings
assigned to space vary widely
among different cultures
Space
2-19
Cultural Variations in Nonverbal
Communications

20. Symbols
Colors, animals, shapes,
numbers, and music have
varying meanings across
cultures.
Failure to recognize the
meaning assigned to a symbol
can cause serious problems!
2-20
Cultural Variations in Nonverbal
Communications

21. 2-21
Cultural Variations in Nonverbal
Communications

22. Relationships
How quickly and easily do cultures
form relationships and make friends?
•Americans tend to form relationships
and friends quickly and easily.
•Chinese relationships are much more
complex and characterized by guanxi.
2-22
Cultural Variations in Nonverbal
Communications

23. Agreements
How does a culture ensure
business obligations are
honored? How are
disagreements resolved?
Some cultures rely on a legal
system; others rely on
relationships, friendships, etc.
2-23
Cultural Variations in Nonverbal
Communications

24. Things
The cultural meaning of things
leads to purchase patterns that one
would not otherwise predict.
The differing meanings that
cultures attach to things, including
products, make gift giving a
particularly difficult task.
2-24
Cultural Variations in Nonverbal
Communications

25. Etiquette
2-25
YouTube Spotlight
International Business Minute Discusses Etiquette
The generally accepted ways of behaving in
social situations.
Behaviors considered rude or obnoxious in
one culture may be quite acceptable in
another!
Normal voice tone, pitch, and speed of
speech differ between cultures and
languages, as do the use of gestures.
Cultural Variations in Nonverbal
Communications

26. A Global Youth Culture?
•Mass media and the Internet have
had an impact of uniformity among
teens around the world.
•They tend to watch many of the
same shows, movies and videos,
listen to the same music, and dress
alike.
•Technology is important factor but
U.S. youth and brands no longer lead
the way.
2-26
Global Cultures

27. Demographics describe a population in terms of its size,
structure, and distribution.
•Demographics are both a result and a
cause of cultural values.
•For example, densely populated
societies, such as China, are likely to
have more of a collective orientation
than an individualistic one.
•Disposable income is one aspect of
demographics--the rapid growth in
personal income in parts of China has led
to an overall market explosion!
2-27
Global Demographics

28. Marketers increasingly use Purchasing Power Parity (PPP)
rather than average or median income to evaluate markets.
PPP is based on the cost of a standard market basket of
products bought in each country.
The following shows four countries in terms of PPP:
Country Per Capita
Income
% of Total income
(to top 10%)
Per Capita
PPP
Brazil $4,791 45% $8,596
China $1,721 35% $4,091
United Kingdom $37,266 29% $31,580
United States $41,674 30% $41,674
2-28
Global Demographics

29. Considerations in Approaching a Foreign Market
1. Homogeneous versus Heterogeneous with Respect to
Culture?
2. What Needs Can the Product Fill in this Culture?
3. Can Enough People Afford the Product?
4. What Values are Relevant to the Purchase and Use of the
Product?
5. What are the Distribution, Political and Legal Structures for
the Product?
6. In What Ways Can We Communicate About the Product?
7. What are the Ethical Implications of Marketing This Product
in This Country?
2-29
Cross-Cultural Marketing Strategy

30. This Chinese
Dunkin’ Donut store
is an example of
glocalization.
Notice the mix of
standard and
customized themes
(color and symbols).
2-30
Applications in Consumer Behavior
© Ted Hornbein