CB 7

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CB 7

  1. 1. Consumer BehaviorDr Ehab M. ABOU AISHAssociate Prof. of Marketing
  2. 2. Agenda• Know:- Culture and its components• Hoefstede model for culture analysis- Cultural values• Understand- How to make culture work for marketersDr ABOU AISH
  3. 3. The Concept of Culture 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.Dr ABOU AISH
  4. 4. Culture Influence on CB• Cultural Definition- Culture is the complex whole that includes knowledge, belief, art, law, moral, customs and any other capabilities and habits acquired by humans as members of a society- Software of the mind, a way of thinking and organizing life- Integrated system of learned behavior patterns that are distinguishing characteristics of the members of any given society- It consists of 3 main layers:1. Artifacts and products: language, food, buildings, fashion, arts...2. Norms and values: laws, social controls and ideals3. Basic beliefs: the society’s unquestioned assumptionsDr ABOU AISH
  5. 5. Elements of Culture • Material culture (Economics, Technology) • Social institutions (Family, Political structure, Media) • Values and Attitudes (Beliefs) • Manners and Customs (Norms, Laws) • Aesthetics (Graphics, Folklore, Music) • Language (verbal and Non-Verbal) • ReligionDr ABOU AISH
  6. 6. Cultural Analysis• Hoefstede model • Individualism / Collective Index ( IDV) • Preferences for behaviors that promotes ones self interests vs. group interest • The Power Distance Index (PDI) • Power inequality between superiors and subordinates • Uncertainty Avoidance Index (UAI) • Tolerance of uncertainty and ambiguity • Masculinity / Femininity Index (MFI) • Preference of achievement heroism and material successDr ABOU AISH
  7. 7. Cultural AnalysisCountry or Region IDV Score PDI Score MFI Score UAI ScoreArab Countries 38 80 53 68USA 91 40 62 46Japan 46 54 95 92France 71 68 43 86Germany 67 35 66 65Great Britain 89 35 66 35South Korea 18 60 39 85Colombia 13 67 64 80India 48 77 56 40 Dr ABOU AISH
  8. 8. Variations in Cultural ValuesThe numerous values that differ acrosscultures and affect consumption include:Other-Oriented ValuesEnvironment-Oriented ValuesSelf-Oriented Values Dr ABOU AISH
  9. 9. Variations in Cultural Values Other-Oriented ValuesReflect a society’s viewof the appropriaterelationships betweenindividuals and groupswithin that society. Dr ABOU AISH
  10. 10. Variations in Cultural Values Environment-Oriented ValuesPrescribe a society’srelationship to itseconomic and technicalas well as its physicalenvironment. Dr ABOU AISH
  11. 11. Variations in Cultural Values Self-Oriented ValuesReflect the objectives and approaches to life thatthe individual members of society find desirable. Dr ABOU AISH
  12. 12. Variations in Cultural Values Other-Oriented ValuesIndividual/CollectiveYouth/AgeExtended/Limited FamilyMasculine/FeminineCompetitive/CooperativeDiversity/Uniformity Dr ABOU AISH
  13. 13. Variations in Cultural Values Other-Oriented Values Individual/CollectiveAre individual activity and initiative valued more highlythan collective activity and conformity?Asian cultures morecollectiveU.S. culture moreindividualistic Dr ABOU AISH
  14. 14. Variations in Cultural Values Other-Oriented Values Youth/AgeIs family life organizedto meet the needs ofthe children or theadults?Are younger or olderpeople viewed asleaders and rolemodels? Dr ABOU AISH
  15. 15. Variations in Cultural Values Other-Oriented Values Extended/Limited FamilyTo what extent doesone have a life-longobligation tonumerous familymembers?Extended familycritical in South/Central America Dr ABOU AISH
  16. 16. Variations in Cultural Values Other-Oriented Values Masculine/FeminineTo what extend does social power automatically go tomales? Dr ABOU AISH
  17. 17. Variations in Cultural Values Other-Oriented Values Competitive/CooperativeDoes one obtainsuccess by excellingover others or bycooperating withthem?Dr ABOU AISH
  18. 18. Variations in Cultural Values Other-Oriented Values Diversity/UniformityDoes the culture embrace variation in religious belief,ethnic background, political views, and other importantbehaviors and attitudes? Dr ABOU AISH
  19. 19. Variations in Cultural Values Environment-Oriented ValuesCleanlinessPerformance/StatusTradition/ChangeRisk taking/SecurityProblem solving/FatalisticNature Dr ABOU AISH
  20. 20. Variations in Cultural Values Environment-Oriented Values CleanlinessTo what extent iscleanliness pursuedbeyond the minimumneeded for health?U.S. very high on personalhygiene – some think to anextreme! Dr ABOU AISH
  21. 21. Variations in Cultural Values Environment-Oriented Values Performance/StatusIs the culture’s reward system based on performance or oninherited factors such as family or class?Closely related to the concept ofpower distance, which refers tothe degree to which peopleaccept inequality in power,authority, status, and wealth asnatural or inherent in society. Dr ABOU AISH
  22. 22. Variations in Cultural Values Environment-Oriented Values Tradition/ChangeIs tradition valued simply for the sake of tradition? Ischange or “progress” an acceptable reason for alteringestablished patterns? Dr ABOU AISH
  23. 23. Variations in Cultural Values Environment-Oriented Values Risk taking/SecurityAre those who risk their established positions toovercome obstacles or achieve high goals admired morethan those who do not?A society that does not admire risk taking is unlikely todevelop enough entrepreneurs to achieve economicchange and growth. Dr ABOU AISH
  24. 24. Variations in Cultural Values Environment-Oriented Values Problem solving/FatalisticAre people encouraged to overcome all problems,or do they take a “what will be, well be” attitude?Is there an optimistic, “we can do it” orientation?Mexico and Middle-East Countries tend to falltoward the fatalistic end of the continuum. Dr ABOU AISH
  25. 25. Variations in Cultural Values Environment-Oriented Values NatureIs nature regarded as something to be admired orovercome? Dr ABOU AISH
  26. 26. Variations in Cultural Values Self-Oriented ValuesActive/PassiveSensual gratification/AbstinenceMaterial/NonmaterialHard work/LeisurePostponed gratification/Immediate gratificationReligious/Secular Dr ABOU AISH
  27. 27. Variations in Cultural Values Self-Oriented Values Active/PassiveIs a physically active approach to life valued morehighly than a less active orientation? Dr ABOU AISH
  28. 28. Variations in Cultural Values Self-Oriented Values Sensual gratification/AbstinenceTo what extent is it acceptable to enjoy sensual pleasuressuch as food, drink, and sex?Cultures differ in their acceptance of sensual gratification. Dr ABOU AISH
  29. 29. Variations in Cultural Values Self-Oriented Values Material/NonmaterialHow much importance is attached to the acquisition ofmaterial wealth?Two types of materialism:1. Instrumental materialism – is the acquisition of things to enable one to do something.2. Terminal materialism – is the acquisition of items for the sake of owning the item itself. Dr ABOU AISH
  30. 30. Variations in Cultural Values Self-Oriented Values Hard work/LeisureIs a person who works harder than economicallynecessary admired more than one who does not? Dr ABOU AISH
  31. 31. Variations in Cultural Values Self-Oriented Values Postponed gratification/Immediate gratificationAre people encouraged to “save for a rainy day” or to“live for today”? Dr ABOU AISH
  32. 32. Variations in Cultural Values Self-Oriented Values Religious/SecularTo what extent are behaviors and attitudes based onthe rules specified by a religious doctrine? Dr ABOU AISH
  33. 33. Cross-Cultural Marketing Strategy Considerations in Approaching a Foreign Market1. 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? Dr ABOU AISH
  34. 34. Making Culture Work for Marketing Success• Embrace local culture• Build relationships• Employ locals to gain cultural knowledge• Help employees understand you• Adapt products and process to local markets• Coordinate by regionDr ABOU AISH
  35. 35. Applications in Consumer BehaviorAdaptation is OftenRequired in Cross-Cultural Marketing.Here, McDonald’suses a PopularChinese SportsCelebrity. GOH CHAI HIN/AFP/Getty ImagesDr ABOU AISH

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