Global communications like television and the internet have increased exposure to global brands and media, but have not caused universal homogenization of consumer culture. While certain consumption patterns and symbols have spread widely, cultural identities and preferences still diverge in important ways between regions and countries. For example, young people's leisure activities vary significantly between places like Portugal, Germany, and Sweden. Global companies have also found they must localize their products, marketing, and operations to each unique culture in order to succeed. Overall, national wealth alone cannot explain differences in consumption - culture remains a highly important variable that shapes consumer behavior in meaningful ways.

1. Culture does not matter
Kartik Arora
DM16221

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Global village, with new electronic medias such as telephone and TV has reduced the difference
with people, by means of electricity . Media/Technology is extension on humans it enhances
their activities ; it does not make people to be same. Example in South Korea people used to
preserve Kimchi in pots in ground, they special refrigerator to this at home . Mobile & Internet
has reinforced the existing habits of consumers instead of converging, tend to diverge .
Technology , Growing GDP has converged the developed countries more to the extent that that
people can buy more to eat, buy new technology etc.
Global Consumers in Global City ?
In many ways consumers are growing alike it is because of Mass communications , travel ,
multinational companies etc. We adopt some of the consumption signals from the world Ex:
Jeans. Assumption here is that our behavior is likewise there are other plenty of examples of
converging consumer behavior across the cultures. World culture is becoming similar in across
the world in terms of music, fashion and technology with more young people becoming closer
across the world.
As teens are watching same television , same commercial they begin to develop the same
consumption patterns Ex : Teens in USA, EU and Latin America find being with friends and
watching TV as enjoyable way to spend their time.
But as other part of story only few people watch International (English) TV programs regularly.
Ex : MTV has localized its content in all the countries. The degree of exchange of people is
limited. How young people like spending their time also varies with 45 % Portuguese youngsters
watch TV only 8 % Germans do so . While there are countries like Sweden, Ireland, Austria
where youngsters like playing sports more than TV or going out with friends .
Globalization
It can be viewed as global brands such as Coca - Cola, McDonald's , Nike, spread of the brand
across the world as symbol of globalization. These brands are not the symbol of total
consumption package nor the transnational trade. Nestle is worlds local company with 87 % of
its assets, 98% of its sales , 97 % workers are outside its homeland country .
Global Consumer Culture ?
Global communications have summed to create a global ,homogeneous consumer culture, if
consumers are viewed as shared set - related symbol( Product category, brands and consumption
activities ) that are meaningful to segment members. It has big role in creation, learning and
sharing of such consumption symbols as a result of these symbols countries are viewed as local
only.

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On the other side it can be said that worldwide reach of television and the internet be it be sports
, entertainment etc. Instead of causing homogenization , globalization has become reason of local
cultural identities in various part of the world.
Example : Cricket is the sport of Britain , Rugby of New Zealand , Cycling of Netherlands ,
Football is considered as global sport but it is not there in USA .
Converging and Diverging Consumer Behavior
It has been argued that new technology will lead to homogenization of consumer wants and
needs because consumers will prefer high standards of quality and low price to more customized
product. In terms of consumer rationality it seems to be true but it is unrealistic in terms of
cultural point of view. As people around the world become better educated and more affluent
their taste diverge with increased wealth . People now travel to extent that they are confronted
with different cultures.
This trend also has divergence Latin America there is large difference between the rich and the
poor , in the rich side each country has a lot in common than their poor people. All Latin
Americans consume shampoo but with varying brand preference, however only 25% of the
Latin Americans eat cold cereal for breakfast.
Japan was the first Asian country to get developed , it was expected that the consumption pattern
of Japan will follow however that did not happen . They other economies like Malaysia and
Indonesia are developing is different.
On the convergence level , that follows economic development -penetration of products like
refrigerators , washing machine , TV as more people can now reach higher level of their needs.
People tend to do with their incremental income , to buy durables for comfort . At this level
countries tend to diverge.
Instead of Homogenizing the world is becoming more heterogeneous Example Europe has 31
independent countries now they are 51. It is because people don't have harmonized people's
value , Consumers tend to feel comfortable with their own products or brands they are used to .
In the post scarcity scarcities they have got more choices now , consideration set makes them
less rational in purchase , they are converging economically . Thus national wealth is not enough
to explain the difference . Culture becomes more important variable to explain consumption
differences .
After converging fully when the limit is reached the pattern tends to diverge , Example in EU in
1995 number of Cars and TV converged , now it has diverged a lot . It is not because of the
economic factors but the technology .

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The older product category the stronger the influence can be said , Consumption of food is
definitely cultural bond . When people become rich and they posses more or less everything they
tend to spend more in the influence of culture. Example Americans buy more cars, Dutch buy
more trailers, Spanish tend to go out to eat often . With more wealth influence of income on
consumption decreases .
Global Communities
Focus on the similarities rather than the differences has lead to research what is called as global
communities. The market is considered to be homogenous as people are exposed to same global
brands such as Coke Levi's , MTV etc. They help in developing global norms and values .
However as the other side of story , people might have brought the same product but for different
reasons Ex : Japanese student might use computer to study whereas American teenager buys it
for music, movies etc, the extent of difference is cultural reason.
If you take typical Indian Engineer / MBA working in Chennai or Delhi he would be wearing
Van Huesen shirt or Nike shoes but he will be very much Indian in his values . He is expected to
respect his parents and lives together with the family , removing of shoes before entering into
temple.
In India family and religion remains solid block of society , teens may experiment western
music, clothes , brands- but may have trouble in understanding attitudinal context . In India ,
pride in Indianness has increased with globalization.
Even in global markets people with similar lifestyle do not behave as a cosistent group of
purchasers because they do not share common values. Marketing communications cannot use
similar arguments or motives as they might have the same values.
Business people are considered here as culture free group they are assumed to be rational
decision making as compared with consumers , but decision making by these business people is
result of cultural bond , Example Neighbors - Belgian prefer meeting a restaurant while Dutch
prefer meeting in office with sandwich.
Universal thinking is lack of knowledge of other countries and cultures . Previous boss of Coca
Cola after contamination incident in Belgium was dismissed the problem with comment "Where
the F**K is Belgium" CEO like him hardly meet with average consumers , it is easy for them to
pretend and assume everybody is same , partners also agree to incline to avoid the conflict.
LG is one perfect example of how it understands the needs of its customers , LG appliances
designed air conditioner for their market in Indonesia and India , The air conditioner was
designed keeping in mind diseases like Malaria , Dengue etc, The air-conditioner had mosquito
repellent installed in it, product became huge success .

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In Nigeria where most of the houses have to operate on generator for 12 hours a day , it was
critical for customers that the Refrigerator consumes less power and came up with device that
consumes less power and could work on small generators , They understood the market and
customer needs well enough to differentiate themselves .
Wal-Mart's Failure in South Korea & Success in China : Wallmart entered into South Korea
without understanding about their culture , they ended up the way they offered products in USA
i.e. more focus on packaged food(Koreans like fresh food), Parking space was too big, Location
was not convenient , Display stalls had long gap between them. Quality of fish was bad-such
things are very critical for Koreans.
In China they learned from their mistakes and were also able to follow their US model , they
targeted right market , location was right , display stands had the right height and gap between
them. One reason also associated with it China like USA is big country and economy of zones
match for the countries it was easy to implement .
New Media
Introduction of new media has facilitated ease of doing business and to some extent modified
behavior . Ex : Penetration of internet , satellite TV. Now information about prices about prices
of various good has helped business men, and farmers too . Though this has happened but it has
not changed the way Indian farmers used to dress etc.
"The internet with foreign involvement , would eventually bring democracy to the Middle
Kingdom" - Bill Clinton.
Effect of internet has been observed in the developed and partially developed countries . Internet
modifies the pattern of Govt. conflict and cooperation.
Though it has got negative side to it, Internet in such countries is highly regulated Ex China -
posted anything online against Govt. can land person behind bars, India banning porn sites where
people question freedom to ones right.

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Internet is not homogenizing factor instead it is there to adapt language and apply local laws
based on the geographic location.
Internet has not changed the people's habit or values , but it confirms existence of habit and
values Example : In Japan Bandai - i - Service , cartoon magazines has always been popular , one
the prime services for NTT i - service was Bandai.
Online sellers are not changing people's preferences but they helping them in buy what they
wanted to buy and already buy. Online selling is now new retail method . These habits and
values had existed for long time and internet cannot change them.
Internet is for Global business and minority of people are affluent , smart , wired. The new media
is not helping in making a global village but helping enough to destroy it .
Branding and Advertising from Global to Multi - Local
The advantages of standardizing the ads across countries has been thought to be cost reduction
by economies scale other reasons been quality control and consistency, But it is wrong practice
global ads can exist if your audience is global where they share same value of different ads.
“Anyone who wants to go global has to understand the local—their own local and the locals of
all their customers. People live in the local. I’ve never met a global consumer. I never expect to.
We define ourselves by our differences. It’s called identity—self ,family, nation.”- CEO Saatchi
& Saatchi .
One might argue how brand like Coca Cola became global brand - answer can it's not global ads
but the distribution channel , for long time cokes goal was to be within arm's reach of desire.
Slogan as "Always, everywhere Coca- Cola" . These goods have transformed accordance with
the values of culture Ex: Amitabh Bachan promoting coke during Diwali season.
McDonald's in Asia follows cultural habits and uses celebrities . Company modified its menu to
meet Indian customers need - Introducing Aloo, Panner in their burger and not using beef . such
practices make way for global companies t make way into new culture .

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Conclusion : Personality can culture are bound together . Culture is beyond social or
environment influences. anthropologists view culture as "People used to be in a culture . Now
culture is in their head". Consumer behavior can be understood by studying culture within each
nation. There is need for intenerated view of the individual , culture , society .
References :
http://am2015.exordo.com/files/papers/48/final_draft/The_role_of_culture_in_shaping_consu
mer-waiting_behaviour.pdf
https://repositorium.sdum.uminho.pt/bitstream/1822/4839/1/Tese_Mar%C3%A7o.pdf
http://inside-iimranchi.blogspot.in/2011/09/product-development-does-culture-matter.html
http://www.acrwebsite.org/search/view-conference-proceedings.aspx?Id=6747
http://spectrum.library.concordia.ca/973648/1/IMR_identity_demographics_consumer_behavi
ors.pdf

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http://www.greatbusinessdebate.co.uk/text_fact/6-reasons-why-culture-and-values-matter-to-
the-bottom-line/
http://www.ics.ul.pt/rdonweb-docs/ICS_MRosales_Needs_EDI1.pdf