This document discusses theories of convergence and divergence in international consumer behavior. It presents convergence theory, which posits that nations are becoming increasingly similar due to factors like technology, education, and communication. However, it also notes that complete convergence is unlikely given differences in cultures and histories. The document then examines dimensions of individual modernity and categorizes societies as pre-modern, modern, or post-modern. Finally, it discusses convergence and divergence at the macro and micro levels in consumer behavior and factors like income, household structure, social class, and ethnicity.

1. CORPISM-08/02
International Consumer
Behavior
Week 3: Convergence &
Divergence
Professor Ethan Chazin
1

2. Cool Stuff

5. The Consumer Instinct

6. Convergence Theory

7. Nations are becoming
increasingly alike despite
different cultures and
histories and diverse political
& economic systems.

9. • Dependence on science & tech.
• Popular attitudes.
• Systems of political & economic control:
– Monopolistic banking industries, increase in
billionaires, PACs, etc.
• Social media & www (interconnected world.)
• Expansion in urban post-industrial centers (The
Capital, Hunger Games)
• Industrialization & modernization creating a
universal civilization is a fallacy & product of
Western thinking.
The Chazin GroupThe Chazin GroupConvergence Due to…

11. Modernization

12. • Mass Education.
• Urbanization.
• Industrialization.
• Bureaucratization.
• Rapid Communication, Transportation.
• Cultural Homogeneity.
The Chazin GroupThe Chazin GroupSocietal Characteristics

13. Dimensions of
Individual
Modernity
Alex Inkeles &
David Horton
Smith

14. • Openness to new experiences.
• Readiness for social change.
• Disposition to form/hold opinions and
acknowledge differences in opinions.
• Information
• Sense of time.
The Chazin GroupThe Chazin GroupTheir 10 Dimensions

15. • Control of environment.
• Orientation toward planning.
• Calculability versus trust.
• Educational & Occupational aspirations.
• Sense of dignity.
• Respect for others.
The Chazin GroupThe Chazin GroupTheir 10 Dimensions

16. All developed nations that
can be considered modern
using these dimensions are
from a European tradition
(except Japan.)

17. Pre-Modern Modern Modern

18. • Agriculture as primary means to sustain
life.
• Households 3 generation extended
families.
• Feudal societies (land-owner, nobility)
• Linear time orientation.
The Chazin GroupThe Chazin GroupPre-Modern

19. • Increased urbanization.
• Nuclear family.
• Mass production.
• Linear time orientation.
The Chazin GroupThe Chazin Group Modern

20. Post-Modern

21. • Most professionals work with information.
• We live in a Digital World (the Cloud)
• Everyone’s connected online.
• Manipulation of gene-sequencing, genomes.
• “In post-modern society, emphasis on
economic achievement is giving way to an
increasing emphasis on quality of life.”
(Inglehart)
The Chazin GroupThe Chazin GroupPost-Modern

25. Micro/Macro
Levels of
Convergence

27. • Macro information includes Gross
Domestic Product (GDP), Gross
National Income (GNI) and growth in
production & consumption.
• Macro environment includes the
political, economic, legal social,
cultural, technological dimensions.
The Chazin GroupThe Chazin GroupMicro vs. Macro

28. • Macro level measures of economic
development :
–GNI per capita, consumption,
transportation, communication
facilities, urbanization, capital for
investment, technology, media.
The Chazin GroupThe Chazin GroupMeasures of Macro Econ

30. K
What do YOU think?

31. Convergence/Divergence in
Consumer Behavior

32. • At macro & micro level convergence & divergence
both take place and is strongest in economically
homogenous regions (like Europe.)
• Even in these regions only a few incidents happen.
• Micro level entails what people do with the
products they own. (Ex. Penetration of TV
ownership in Europe but viewing time and habits
differ drastically.)
• The assumed strongest influence on
consumer behavior is disposable
INCOME!
The Chazin GroupThe Chazin GroupC/D in Consumer Behavior

35. Assessing National Wealth

41. • The wealthier a nation becomes, the more
influential culture is on consumption and
consumer behavior.
• Higher levels of wealth do NOT change
traditional values.
The Chazin GroupThe Chazin GroupNation Wealth

42. • Household size (# people per house) varies
by country – from 2.13 in Sweden to 6.7 in
Pakistan.
• In lower income cultures, household sizes are
larger.
• Age at which women marry varies greatly.
• Women in all cultures have traditionally
performed roles of mother, career and home
provider.
• Women entering the workforce in increasing
numbers.
The Chazin GroupThe Chazin GroupHousehold & Family

43. • Western approach to categorize people by
wealth.
• As wealth spreads globally, disposable
income less effective means of measuring
consumers.
• Other categories such as YUPPIES, DINKs
are required.
• American 3 tier structure (although very
simplistic) is most often used to categorize
people in developed nations (Upper Class,
Middle Class, Lower Class.)
The Chazin GroupThe Chazin GroupSocial Class

44. • Ethnic group defines as being culturally &
physically different from the dominant group
of a society.
• Ethnic minorities become powerful consumer
groups to market to.
• Examples abound: Native Americans,
Aborigines, Gypsies, African Americans,
Turkish Germans, French Italians, etc.
The Chazin GroupThe Chazin GroupEthnicity

45. The 21st Century
French Consumer

47. Engel’s Law

50. The “Rational”
Consumer