This document discusses cross-cultural consumer behavior and the globalization of consumption. It addresses several topics:
1) How culture influences consumer behavior through values, institutions, social conventions and customs. This affects loyalty, risk perception and decision making.
2) The convergence and divergence of global consumption patterns at both the macro level of industries and demographics, and the micro level of individual consumption.
3) The emergence of standardized global consumer products and culture through McDonaldization, but also the persistence of local habits and culture-bound products.
Culture
Concept of Culture
3 B Framework
Implications on Consumer behavior
Parameters of Cultural boundaries
Values and Consumer Behavior
Demographics and its impact on Marketing
Language as an barrier for Consumer Behavior
Non Verbal communication as a tool of understanding pulse of marketing
Join AIPMM Anthropologist Paula Gray as she concludes the in-depth webcast series focusing on Consumer Behavior. This 3 part series has been a tremendous success as Paula has taken the time to unpack the somewhat mysterious buyer decision process. Part 1 focused on the product purchasing process, part 2 focused on internal process that shape buying decisions. Now join us for the final installment where we will look at how cultural and societal rules, laws, conventions, customs and values also affect the consumer’s purchase decision.
Your customer does not make buying decisions in a vacuum, but rather under the societal and cultural pressures that exist anywhere. Who better to uncover the complexity of that socio-cultural framework than our own AIPMM Anthropologist, Paula Gray? Join us as we learn more about these external influences and how they shape the internal buying decision.
As with the rest of this series you can use this information to inform your marketing strategy, create more relevant messaging and improve your social media strategy. This information is relevant for both tangible goods and intangible services.
Key topics in Part 3 will include:
· Definition of culture and how the components affect your customer’s buying decisions
· Subcultures and their “languages”
· Family and household member influence
· Reference groups and their influence
About Paula Gray
Paula Gray is an anthropologist and the Director of Research and Knowledge Development at AIPMM. She has traveled the globe to work with companies throughout the US, Europe, Africa and Asia-Pacific to help them gain a deeper understanding of their customers. She is featured in Linda Gorchels' book The Product Manager's Handbook and has contributed to several books on product management including The Guide to the Product Management and Marketing Body of Knowledge (ProdBOK). She is also the author of numerous blog posts and papers including Business Anthropology and the Culture of Product Managers.
Culture in Consumer Behaviour By Ray Bawania and Abhishek ChandRay Bawania
How does culture affect consumer behavior?
Should companies assimilate to local tastes or are they expected to be exporting their own taste to provide locals with something new?
Culture
Concept of Culture
3 B Framework
Implications on Consumer behavior
Parameters of Cultural boundaries
Values and Consumer Behavior
Demographics and its impact on Marketing
Language as an barrier for Consumer Behavior
Non Verbal communication as a tool of understanding pulse of marketing
Join AIPMM Anthropologist Paula Gray as she concludes the in-depth webcast series focusing on Consumer Behavior. This 3 part series has been a tremendous success as Paula has taken the time to unpack the somewhat mysterious buyer decision process. Part 1 focused on the product purchasing process, part 2 focused on internal process that shape buying decisions. Now join us for the final installment where we will look at how cultural and societal rules, laws, conventions, customs and values also affect the consumer’s purchase decision.
Your customer does not make buying decisions in a vacuum, but rather under the societal and cultural pressures that exist anywhere. Who better to uncover the complexity of that socio-cultural framework than our own AIPMM Anthropologist, Paula Gray? Join us as we learn more about these external influences and how they shape the internal buying decision.
As with the rest of this series you can use this information to inform your marketing strategy, create more relevant messaging and improve your social media strategy. This information is relevant for both tangible goods and intangible services.
Key topics in Part 3 will include:
· Definition of culture and how the components affect your customer’s buying decisions
· Subcultures and their “languages”
· Family and household member influence
· Reference groups and their influence
About Paula Gray
Paula Gray is an anthropologist and the Director of Research and Knowledge Development at AIPMM. She has traveled the globe to work with companies throughout the US, Europe, Africa and Asia-Pacific to help them gain a deeper understanding of their customers. She is featured in Linda Gorchels' book The Product Manager's Handbook and has contributed to several books on product management including The Guide to the Product Management and Marketing Body of Knowledge (ProdBOK). She is also the author of numerous blog posts and papers including Business Anthropology and the Culture of Product Managers.
Culture in Consumer Behaviour By Ray Bawania and Abhishek ChandRay Bawania
How does culture affect consumer behavior?
Should companies assimilate to local tastes or are they expected to be exporting their own taste to provide locals with something new?
INFLUENCE OF CULTURE ON CONSUMER BEHAVIOUR
3. WHAT IS CULTURE?
4. BELIEFS AND VALUES:
5. WHAT IS CONSUMER BEHAVIOUR?
6. THE INVISIBLE HAND OF CULTURE
7. Culture exists at different subjective levels:
8. CULTURE SATISFIES NEEDS
10. HOW IS CULTURE LEARNED?
11. How Culture Is Learned
12. ACQUISITION OF CULTURE
13. LANGUAGE AND SYMBOLS:
15. RITUALS:
16. SHARING OF CULTURE
18. CULTURE IS DYNAMIC
20. Mythology
21. THE MEASUREMENT OF CULTURE:
25. Value Measurement Survey Instruments:
27. CONCLUSION
29. REFERENCES:
CONSUMER BEHAVIOUR – NINTH EDITION
WRITTEN BY: LEON G. SCHIFFMAN
LESLIE LAZAR KANUK
10. Perilaku Wisatawan - Sub Culture & Consumer BehaviourIrwan Haribudiman
What Is Subculture?
Nationality Subcultures
Religious Subcultures
Geographic and Regional Subcultures
Racial Subcultures
Age subcultures
Sex as a Subculture
Perilaku Konsumen Lintas Budaya
Arti Penting Menjadi Multinasional (Go International)
Analisis Perilaku Konsumen Lintas Budaya
Alternatif Strategi Multinasional
Segmentasi psikografis Lintas Budaya
INFLUENCE OF CULTURE ON CONSUMER BEHAVIOUR
3. WHAT IS CULTURE?
4. BELIEFS AND VALUES:
5. WHAT IS CONSUMER BEHAVIOUR?
6. THE INVISIBLE HAND OF CULTURE
7. Culture exists at different subjective levels:
8. CULTURE SATISFIES NEEDS
10. HOW IS CULTURE LEARNED?
11. How Culture Is Learned
12. ACQUISITION OF CULTURE
13. LANGUAGE AND SYMBOLS:
15. RITUALS:
16. SHARING OF CULTURE
18. CULTURE IS DYNAMIC
20. Mythology
21. THE MEASUREMENT OF CULTURE:
25. Value Measurement Survey Instruments:
27. CONCLUSION
29. REFERENCES:
CONSUMER BEHAVIOUR – NINTH EDITION
WRITTEN BY: LEON G. SCHIFFMAN
LESLIE LAZAR KANUK
10. Perilaku Wisatawan - Sub Culture & Consumer BehaviourIrwan Haribudiman
What Is Subculture?
Nationality Subcultures
Religious Subcultures
Geographic and Regional Subcultures
Racial Subcultures
Age subcultures
Sex as a Subculture
Perilaku Konsumen Lintas Budaya
Arti Penting Menjadi Multinasional (Go International)
Analisis Perilaku Konsumen Lintas Budaya
Alternatif Strategi Multinasional
Segmentasi psikografis Lintas Budaya
Consumer Behavior and Marketing ResearchNagendra Babu
Consumer Behavior and Marketing Research
introduction, Factors influencing consumer behaviour, Personality, Psychographics, Family, Society, Values of perception, Attitude and life styles, Different models of consumer behaviour – Economic, Learning, Psychoanalytical, Sociological, Howard Shett, Nicosia, Webster and Wind, Engel, Blackwell and Minard models.
A consumer is a person or an organization that consumes whether he buys or not. That is, consumer is known for actual use or employment of a product or service; he or she does not worry about paying for the same. On the contrary, customer is definitely a buyer or who purchases and may or may not actually consume a given product or service.
Running head PRINCIPLES OF MARKETING1PRINCIPLES OF MARKETING.docxglendar3
Running head: PRINCIPLES OF MARKETING 1
PRINCIPLES OF MARKETING 1
Week 4 Writing Assignment Marketing
Principles of Marketing
Professor Engle
April 12, 2020
Part 1 - Consumer Behavior: How People Make Buying DecisionsConsumer Buying Behavior
Consumer behavior is explained as the selection, buying and consumption of goods or services to fulfill their wants that lead towards satisfaction. Consumer behavior usually involves different processes. First of all, the consumer efforts to find those commodities to which he would provide more utility and would like to consume. Then consumers estimate the money that he has to spend on buying commodities. At last, the consumer makes a comparison of the prices of commodities and after that, if it is suitable then he takes the final decision of buying commodities of his choice.
Product/Service: I am selecting refrigerators as a product that I will offer to customers.
1) Consumer Behavior Model- Environmental Factors
Many environmental factors affect consumer buying behavior like political environment, economic environment, social environment, technological environment, and cultural environment. I will elaborate on only the two more targeted in the present scenario.
The Technological Environment
Technology has brought much advancement not only to products and services, but it also has changed the way of promotional activities. Now there are a variety of features that are introduced like flex-zone, air filtration, adjustable shelves, spill-proof digital shelves, full extension drawers, full-width pantry drawers, electric temperature control, door alarms, designer LED lighting, under counter ice makers, under counter Kegerators. All these advancements are just due to technological advancement. Now the buying behavior of the consumer has changed and they prefer the latest technological product.
Technologies also alter the promotional mix in another significant way: They change the way firms market their products and services. Revolutionary changes originated through the internet, which introduces marketers to a new source that is fully supported for the promotion of goods and services. Marketers should follow technological improvements and adapt their approaches, to take benefit of the opportunities.
The Cultural Environment
Culture can be defined as the combination of art, customs, knowledge, morals, beliefs, value and habits acquired by society. Culture sets certain limitations on behavior that called norms and defilement of these cultural norms consequences in the formation of sanction. Both norms and sanctions affect the consumption pattern. Every society makes its own culture and that influences the choices, wants and behavior of consumers. Chinese don’t prefer durability while the Japanese prefer it. Like people of Islamic countries do not like and permit live-in relationship, it is the culture of Islamic countries, so unmarried live alone and prefer mini-fridge. While in Europe and other c.
Running head PRINCIPLES OF MARKETING1PRINCIPLES OF MARKETING.docxtodd581
Running head: PRINCIPLES OF MARKETING 1
PRINCIPLES OF MARKETING 1
Week 4 Writing Assignment Marketing
Principles of Marketing
Professor Engle
April 12, 2020
Part 1 - Consumer Behavior: How People Make Buying DecisionsConsumer Buying Behavior
Consumer behavior is explained as the selection, buying and consumption of goods or services to fulfill their wants that lead towards satisfaction. Consumer behavior usually involves different processes. First of all, the consumer efforts to find those commodities to which he would provide more utility and would like to consume. Then consumers estimate the money that he has to spend on buying commodities. At last, the consumer makes a comparison of the prices of commodities and after that, if it is suitable then he takes the final decision of buying commodities of his choice.
Product/Service: I am selecting refrigerators as a product that I will offer to customers.
1) Consumer Behavior Model- Environmental Factors
Many environmental factors affect consumer buying behavior like political environment, economic environment, social environment, technological environment, and cultural environment. I will elaborate on only the two more targeted in the present scenario.
The Technological Environment
Technology has brought much advancement not only to products and services, but it also has changed the way of promotional activities. Now there are a variety of features that are introduced like flex-zone, air filtration, adjustable shelves, spill-proof digital shelves, full extension drawers, full-width pantry drawers, electric temperature control, door alarms, designer LED lighting, under counter ice makers, under counter Kegerators. All these advancements are just due to technological advancement. Now the buying behavior of the consumer has changed and they prefer the latest technological product.
Technologies also alter the promotional mix in another significant way: They change the way firms market their products and services. Revolutionary changes originated through the internet, which introduces marketers to a new source that is fully supported for the promotion of goods and services. Marketers should follow technological improvements and adapt their approaches, to take benefit of the opportunities.
The Cultural Environment
Culture can be defined as the combination of art, customs, knowledge, morals, beliefs, value and habits acquired by society. Culture sets certain limitations on behavior that called norms and defilement of these cultural norms consequences in the formation of sanction. Both norms and sanctions affect the consumption pattern. Every society makes its own culture and that influences the choices, wants and behavior of consumers. Chinese don’t prefer durability while the Japanese prefer it. Like people of Islamic countries do not like and permit live-in relationship, it is the culture of Islamic countries, so unmarried live alone and prefer mini-fridge. While in Europe and other c.
1. Multicultural Marketing
2nd Session
Cross culture consumer behavior & Local Consumer and
Globalization of Consumption
2. Cross-Cultural Consumer Behavior
Universal or Specific Consumers?
Culture and Consumer behavior
Hierarchy of Needs (Maslow)
Culture Based Values
Institutions, social conventions, habits, and customs
The Influence of Culture on selected aspects of
consumer behavior
Loyalty
Consumer Involvement
Perceived risk
Marketing as an exchange of “Meanings”
3. Is consumer behavior universal or specific
to its group
• One view is that all consumers can be approached as being similar
• Everyone gets hungry, they sleep, eat breakfast… etc
• 2nd perspective is that all consumers have adapted foreign traits
• McDonalds in Kuwait, Japan
• 3rd is that consumers (a) of a certain ethnicity have modified consumption patterns
in those countries (b) and some ethnic products have reached world class status
by being adopted in most countries
• Asian cuisines (Sushi)
• The 4th is the opposite of Global Perspective
Marketing is a process involving communication and exchange: consumers buy
meanings as well as objects.
4. Hierarchy of Needs
Self • Rank order?
actualization • Criteria for satisfaction?
• Needs vs. Desires
• Economic influences?
Esteem
Social
Safety
Physiological
5. Culture and Consumer Behavior
Hierarchy of needs is not true in every culture
In some economies, people focus more on basic survival
needs
Hindu culture encourage the need for self actualization without
materialistic desires
Individualism and Collectivism
Does an individual makes his own decision or is he/she
influenced socially (shared / social intentions)
Korean students have lunch together or go to the same college
abroad. (Obligation to belong to a certain group)
Asian families restrict autonomous behavior amongst their
children
Independent / Interdependence
Be Yourself (More western culture based value)
Affect on marketing studies – Impulse buying, consumption
patterns, emotional appeal.
6. Culture and Consumer Behavior
Institutions: The State, the Church and Trade
Unions
French Catholic hierarchy has generally opposes to
Sunday trading.
German trade unions oppose an extension of
opening hours.
Stores at 2 p.m. on Saturdays
Closed on Sundays.
The result is that many German consumers must shop
quickly on Saturday mornings.
Catalogue-based mail order and online shopping are good
substitutes
As a result, mail order sales are highly developed in
Germany such as Neckermann, Bertelsmann and Quelle.
7. Culture and Consumer Behavior
Social conventions, habits and customs:
Other products are in a sense institution dependent,
whatever their mode of distribution or consumption:
Marriage-related goods such as a wedding dress or the
products featured on wedding lists, or many kinds of traditional
gift that are offered for specific occasions
Eating habits
„Food is both substance and symbol; providing both physical
nourishment and a key form of communication that carries
many kinds of meanings.‟
Cultural variations, in addition to the social interpretation of
eating habits, include the following:
1. The number of meals consumed each day.
2. The standard duration of a meal, and the positionof meals in the daily
schedule.
9. Influence of Culture on aspects of CB
Psychological Process
Motivation
to own, buy, spend, consume, show, share, give?
Perception
Perception of shapes, colours and space? (Red is lucky in
Chinese)
Learning and Memory
Familiarity with product classes?
Attitude
Resistance to change (Resistance to FAST FOOD in France)
Decision Making
Individual or social influences
Loyalty
Value of certainty?
Consumer Complaint
Perceptions of quality?
10. Influence of Culture on aspects of CB
Loyalty
USA – Value Opportunity
Assumed disloyal
Enjoy change more than stability
Price competition
Asian – Value Certainty
High level of single brand dominance
Rely on information from reference groups – WOM is important
Follow group consensus until proved wrong
11. Influence of Culture on aspects of CB
Consumer Involvement
Higher in Asians with regard to purchasing for social and
symbolic values (buying a car)
Low in Asians if product is for private use (Price and
Quality)
Perceived Risk
Can be separated to financial, physical, social risk … etc
Buying a car where road safety is not an issue (Physical risk)
petrol is cheap (financial risk) but if the car breaks down on the
highway and there is no mechanic available (reliability risk)
12. Marketing as an Exchange of Meanings
Consumers buy meanings and marketers
communicate meanings through products and
advertisements.
Many of the meanings in M.Exc are culture based
Therefore in the process of exchange through buyer–
seller relations, marketing communications or product
consumption, interpretations are made spontaneously,
The Role of Emotions in Japanese marketing
Affect on sales team regarding compensation
In Japan, the husband is supposed to hand all his income over
to his wife. If he doesn‟t, he is criticized by people around him.
13. Class Group Assignment
Please write on an A4 sheet of paper.
Write all group member names clearly.
Write the title as Assignment no. 1
All write down the question which is below
Why can 'word-of-mouth communication' among
people be considered as a fairly robust consumer
behavior concept cross-culturally?
14. Local Consumers &
The Globalization of Consumption
Free Trade
Diversity in Global Markets
The Global Convergence of Consumption Patterns
At the Macro Level
At Micro Level
Emergence of a Global Consumer Culture
Standardized World Package
McDonald-ization
Local Products and Consumption Experience
Culture Bound Products
Habits and Shared Meaning
Local Consumer Culture and Resistance to Change
15. Free Trade
All countries benefit from exports and imports
Cultural exchange usually happened through trade
Industries can develop around a certain product (western
pharmaceuticals) giving rise to jobs
Countries that import heavily are not at a
disadvantage
They can charge on duties, taxes
They can provide subsidies and levies for local importers
Tax Free Economies
Allow for market entry
But marketers may face difficulties in entering a market
due to competition
16. Free Trade
Pricing
A commodity in one nation maybe a luxury item in another
nation
Toyota Camry in India is a luxury but in Dubai (its considered a
Taxi)
Standardization of products
Voltage in USA is 110V but in other countries its 220V
Halal (for Muslims) or Kosher (for Jews) products.
Left hand drive Vs. Right hand drive (some people in the
world drive on the wrong side of the road)
In Globalization, Diversity presents
An opportunity to create a differentiation strategy,
And to gain competitive advantage
17. Convergence of Consumption Patterns
At the Macro Level
Removing barriers to trade helps in globalization of
industries
This leads to demographic convergence such as age,
income, household with consumptions
Wine consumption has decreased and beer consumption has
increased in the south (in France, Greece, Italy,)
The opposite pattern has evolved in the north of Europe (in
Austria, Belgium, Denmark, Germany) leading to macro-level
convergence
Beef consumption in Japan, traditionally a fish-eating country,
has developed considerably while there has been a rise in fish
consumption in traditionally meat eating countries.
In this sense, globalization increases, not decreases,
diversity in everyone‟s experience.
18. Convergence of Consumption Patterns
At the micro level, researches have found culture
influences consumption patterns
1. For product type durable, household and functional
products varied more by culture than non-durable,
sensory and personal products.
2. For product/service category, restaurants, air travel and
hair shampoo are more influenced by culture than beer,
jeans, going to the cinema, soft drinks and stereos.
3. For situational frequency, time of day, where consumers
shopped, the length of time and the reason varied by
culture for food, but not for clothing.
4. For reasons for purchase maintenance, enjoyment and
defense reasons differed by country.
19. Emergence of a Global Consumer Culture
Standard world package
A consumer culture guides people in defining their
aspirations towards a certain set of possessions.
The standard US package of goods has developed into a
standard world package that includes a car and a home
with electric lighting, a refrigerator and a television.
The same holds true for services, since the fast-food
restaurant has become part of the standard world
package.
„Standard‟ has three meanings:
(1) the same for everybody;
(2) the same everywhere in the world;
(3) the same for alltime. e.g., Coca Cola
20. Emergence of a Global Consumer Culture
McDonald‟s (standardization) has led to globalization of
fast food through four points
1. Efficiency:
The McDonaldized service offers the optimum method for
getting from one point (being hungry) to another (being fed).
2. Systematic quantification and calculation:
McDonald‟s offers more „bang for the buck‟ and provides its
customers with „value‟ meals.
3. Predictability
Whether in Chicago, Moscow or Tokyo, we find the same Big Mac
and French Fries. Consumers find great comfort in this
predictability which reduces perceived risk.
4. Control through use of technology
Rules are fairly strict and automatic systems (e.g. soft drinks or
ice-cream dispensers) control the exact quantity, in line with point
2.
This also facilitates predictability by reassuring customers about
the service to be obtained from McDonald‟s.
21. Local Products & Consumption Experience
If consumer culture matters, then it is likely that consumers will
invest more meaning in products that are more bound to
cultural interpretation.
The question is therefore: what is more culture-free and what more
culture-bound, in terms of product and service categories on the one
hand, and consumer behavior on the other?
Culture Bound Products:
Some aspects to examine are
Rich (or poor) cultural context – Shopping, consuming, and
disposing
Relationship to the physical environment – Climate, population,
agriculture
Cultural or National identity – Use of local products and
craftsmanship (Italian suits, Egyptian cotton, French fashion
designers)
Language - Songs, soap operas, films and novels. Ikea uses
pictures to avoid language barriers in its instruction manual
22. Local Products & Consumption Experience
Habits and shared meanings
Habits are ways of doing and behaving that have
been reinforced by authorization and gratification,
Once the programming is forgotten they appear
legitimate.
Examples
Kaffeetrinken
The special relationship of Germans to coffee & cakes (Kuchen) has
much to do with happy hours experienced since childhood when
people relax in a tight society with an internalized pressure for
conforming to rules.
Drinking Beer
Shape and size of beer glasses
Flavor (bitterness, froth, bubbles, sweetness, alcohol levels)
23. End of Lecture
See you after two weeks
baber_mirza@hotmail.com
Groups to be formed in the next session.
Final Group project to be given next week
Editor's Notes
1. The number of meals consumed each day.2. The standard duration of a meal, and the position of meals in the daily schedule.3. The composition of each meal. The portions may differ in size, comprising various kinds of food (local ingredients or cooking style); the nutritional content may be composed so that the eater can cope with long or short time periods without further calorific input during the day.4. Which beverages accompany the meal (water, coffee, tea, wine, beer, and so on) and what their ‘status’ is – refresher, energizer, coolant, relaxer, etc. 5. The social function, whether ‘fuel’ or daily ‘social event’. The meal may be a communal event where people entertain themselves by eating and chatting together, or it may simply be a means of feeding oneself without any symbolic, personal or collective connotation.6. Is the food ready-made or is it prepared from basic ingredients? Do servants help prepare the meal? What is the cultural meaning of the meal being prepared by the housewife or by her husband, for whom, in which particular situations?