Hawkins/Mothersbaugh CB 10th Edition

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CHAPTER
CROSS-CULTURAL VARIATIONS IN CONSUMER BEHAVIOR
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Consumer Behavior In The News

• SUVs in China?
• Yes!
• Expect SUV Segment to be 20 of Market in 2009
  (up from 8 in 2004).
• Barriers
• Drivers
• Will Trend Sustain in Face of Rising Fuel Costs?

Source J. B. White, Chinas SUV Surge, The
Wall Street Journal, June 10, 2004, p. B1, B3
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Consumer Behavior In The News

• SUVs in China?
• Yes!
• Expect SUV Segment to be 20 of Market in 2009
  (up from 8 in 2004).
• Barriers Traffic Jams, Govt Push to Conserve
  Fuel, Cost of Fuel
• Drivers Bold Image, Greater Capacity, Safety
• Will Trend Sustain in Face of Rising Fuel Costs?

Source J. B. White, Chinas SUV Surge, The
Wall Street Journal, June 10, 2004, p. B1, B3
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Marketing Across Cultural Boundaries is a
Difficult and Challenging Task
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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.
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The Concept of Culture
Although pizza is eaten most everywhere, what is
on the pizza can be quite different!
Pepperoni
Tuna Corn
Black Bean Sauce
Squid
BBQ Chicken
Eggs
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The Concept of Culture
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.
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Variations in Cultural Values

• Other-Oriented Values
• Environment-Oriented Values
• Self-Oriented Values

The numerous values that differ across cultures
and affect consumption include
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Variations in Cultural Values
Other-Oriented Values
Reflect a societys view of the appropriate
relationships between individuals and groups
within that society.
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Variations in Cultural Values
Environment-Oriented Values
Prescribe a societys relationship to its
economic and technical as well as its physical
environment.
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Variations in Cultural Values
Self-Oriented Values
Reflect the objectives and approaches to life
that the individual members of society find
desirable.
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Variations in Cultural Values
Other-Oriented Values

• Individual/Collective
• Youth/Age
• Extended/Limited Family
• Masculine/Feminine
• Competitive/Cooperative
• Diversity/Uniformity

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Variations in Cultural Values
Other-Oriented Values
Individual/Collective Are individual activity and
initiative valued more highly than collective
activity and conformity?
Asian cultures more collective U.S. culture more
individualistic (eating alone) (China age
differences)
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Variations in Cultural Values
Other-Oriented Values
Youth/Age
Is family life organized to meet the needs of the
children or the adults? Are younger or older
people viewed as leaders and role models? (little
emperors)
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Variations in Cultural Values
Other-Oriented Values
Extended/Limited Family
To what extent does one have a life-long
obligation to numerous family members? Extended
family critical in South/ Central America
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Variations in Cultural Values
Other-Oriented Values
Masculine/Feminine To what extend does social
power automatically go to males?
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Variations in Cultural Values
Other-Oriented Values
Competitive/Cooperative

• Does one obtain success by excelling over others
  or by cooperating with them?
• (comparative ads)

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Variations in Cultural Values
Other-Oriented Values
Diversity/Uniformity Does the culture embrace
variation in religious belief, ethnic background,
political views, and other important behaviors
and attitudes?
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Variations in Cultural Values
Environment-Oriented Values

• Cleanliness
• Performance/Status
• Tradition/Change
• Risk taking/Security
• Problem solving/Fatalistic
• Nature

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Variations in Cultural Values
Environment-Oriented Values
Cleanliness
To what extent is cleanliness pursued beyond the
minimum needed for health? U.S. very high on
personal hygiene some think to an extreme!
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Variations in Cultural Values
Environment-Oriented Values
Performance/Status
Is the cultures reward system based on
performance or on inherited factors such as
family or class?
Closely related to the concept of power distance,
which refers to the degree to which people accept
inequality in power, authority, status, and
wealth as natural or inherent in society.
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Variations in Cultural Values
Environment-Oriented Values
Tradition/Change Is tradition valued simply for
the sake of tradition? Is change or progress
an acceptable reason for altering established
patterns?
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Variations in Cultural Values
Environment-Oriented Values
Tradition/Change (Cont.) A focus on technology as
an indicator of change illustrates some dramatic
differences across cultures that show the
following
The above represent Internet users and cell
phones as a percent of total population
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Variations in Cultural Values
Environment-Oriented Values

• Risk taking/Security
• Are those who risk their established positions to
  overcome obstacles or achieve high goals admired
  more than those who do not?
• A society that does not admire risk taking is
  unlikely to develop enough entrepreneurs to
  achieve economic change and growth.

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Variations in Cultural Values
Environment-Oriented Values
Problem solving/Fatalistic Are 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 fall toward the
fatalistic end of the continuum.
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Variations in Cultural Values
Environment-Oriented Values
Nature Is nature regarded as something to be
admired or overcome?
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Variations in Cultural Values
Self-Oriented Values

• Active/Passive
• Sensual gratification/Abstinence
• Material/Nonmaterial
• Hard work/Leisure
• Postponed gratification/Immediate gratification
• Religious/Secular

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Variations in Cultural Values
Self-Oriented Values
Active/Passive Is a physically active approach to
life valued more highly than a less active
orientation?
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Variations in Cultural Values
Self-Oriented Values
Sensual gratification/Abstinence To what extent
is it acceptable to enjoy sensual pleasures such
as food, drink, and sex? Cultures differ in their
acceptance of sensual gratification.
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Applications in Consumer Behavior
Ad for Calvin Klein underwear OK in U.S. and
France. Not appropriate in cultures that place a
high value on abstinence.
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Variations in Cultural Values
Self-Oriented Values
Material/Nonmaterial How much importance is
attached to the acquisition of material wealth?
(Chinese and televisions)

• Two types of materialism
• Instrumental materialism is the acquisition of
  things to enable one to do something.
• Terminal materialism is the acquisition of
  items for the sake of owning the item itself.

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Variations in Cultural Values
Self-Oriented Values
Hard work/Leisure Is a person who works harder
than economically necessary admired more than one
who does not?
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Variations in Cultural Values
Self-Oriented Values
Postponed gratification/Immediate
gratification Are people encouraged to save for
a rainy day or to live for today?
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Variations in Cultural Values
Self-Oriented Values
Religious/Secular To what extent are behaviors
and attitudes based on the rules specified by a
religious doctrine?
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Cultural Variations in Nonverbal Communications
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Cultural Variations in Nonverbal Communications
Time
The meaning of time varies between cultures in
two major ways

• Time perspectivethe cultures overall
  orientation toward time (monochronic vs.
  polychronic)
• Interpretations assigned to specific uses of
  time (impacts messages - McDonalds)

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Cultural Variations in Nonverbal Communications
Space

• Overall use and meanings assigned to space vary
  widely among different cultures

• how office space is allocated
• Personal space

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Cultural Variations in Nonverbal Communications
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!
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Cultural Variations in Nonverbal Communications
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Cultural Variations in Nonverbal Communications
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.
  Under the concept of guanxi, an individual can
  draw upon personal connections/relationships to
  secure resources or advantages when doing
  business as well as in the course of social life.

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Cultural Variations in Nonverbal Communications
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, kinship, local moral
principles, or informal customs to guide business
conduct.
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Cultural Variations in Nonverbal Communications
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. For
example, what type of gift is appropriate and
when does receipt of a gift require a gift in
return?
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Cultural Variations in Nonverbal Communications
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.
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Cultural Variations in Nonverbal Communications
Etiquette
Meishi is an important aspect of Japanese
business etiquettea man without a Meishi has no
identity in Japan. What is Meishi? It is the
exchange of business cards!
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Global Cultures
A Global Teenage 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, see
  the same movies and videos, listen to the same
  music, and they tend to dress alike.

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Global Demographics
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!

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Global Demographics
A critical aspect of demographics for marketers
is income--specifically the distribution of
income. One country with a relatively low average
income can have a sizable middle-income segment,
while another country with the same average
income may have most of the wealth in the hands
of a few individuals.
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Global Demographics
Country GDP (per capita) of total income (to top 10)
Brazil 7,600 48
China 5,000 30
United Kingdom 27,700 28
United States 37,800 31
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Cross-Cultural Marketing Strategy
Considerations in Approaching a Foreign Market

• Homogeneous versus Heterogeneous with Respect to
  Culture?
• What Needs Can the Product Fill in this Culture?
• Can Enough People Afford the Product?
• What Values are Relevant to the Purchase and Use
  of the Product?
• What are the Distribution, Political and Legal
  Structures for the Product?
• In What Ways Can We Communicate About the
  Product?
• What are the Ethical Implications of Marketing
  This Product in This Country?

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Applications in Consumer Behavior
Adaptation is Often Required in Cross-Cultural
Marketing. Here, McDonalds uses a Popular
Chinese Sports Celebrity.
GOH CHAI HIN/AFP/Getty Images
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