Consumer Behavior, Eighth Edition SCHIFFMAN & KANUK

Chapter 14
Cross-Cultural Consumer Behavior: An International Perspective
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The Imperative To Be Multinational

Global Trade Agreements
EU NAFTA

Acquiring Exposure to Other Cultures Country-of-origin Effects

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The Worlds Most Valuable Brands

1 Coca-Cola 2 Microsoft 3 IBM 4 GE 5 Nokia 6 Intel 7 Disney 8 Ford 9 McDonalds 10 AT&T

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Figure 14.1 The Importance of Country of Origin Effects

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Country of Origin Effects: Negative and Positive

Many Chinese consumers consider Sony high-end and high-quality, but may refuse to buy due to animosity toward Japan
High-animosity consumers own fewer Japanese products than low-animosity consumers

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Issues in Cross-Cultural Consumer Analysis

Similarities and Differences Among People Time Effects The Growing Global Middle Class Acculturation
Research Techniques

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Table 14.2 Some Comparisons

Chinese Cultural Traits Centered on Confucian doctrine Submissive to authority Ancestor worship Values a persons duty to family and state
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American Cultural Traits Individual centered Emphasis on selfreliance Primary faith in rationalism Values individual personality

The Effect of Guo Qing

Due to the one-child policy in China, families emphasize high quality purchases for their little emperor. Children in China are given more than $3 billion collectively to spend as they wish and influence about 68% of parental spending.
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Table 14.3 The Pace of Life

SPEED IS RELATIVE (rank of 31 countries for overall pace of life and for three measures) OVERALL PACE Switzerland Ireland Germany Japan Italy England Sweden Austria Netherlands Hong Kong
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WALKING 60 FEET 3 1 5 7 10 4 13 23 2 14

POSTAL SERVICE 2 3 1 4 12 9 5 8 14 6

PUBLIC CLOCK 1 11 8 6 2 13 7 3 25 14

1 2 3 4 5 6 7 8 9 10

Acculturation

The learning of a new foreign culture.

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Table 14.4 Basic Research Issues in Cross-Cultural Analysis

FACTORS Differences in language and meaning Differences in market segmentation opportunities EXAMPLES Words or concepts may not mean the same in two different countries. The income, social class, age, and sex of target customers may differ dramatically in two different countries.

Differences in consumption patterns

Two countries may differ substantially in the level of consumption or use of products or services.

Differences in the perceived benefits of products and services

Two nations may use or consume the same product in very different ways.

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Table 14.4 continued

FACTORS EXAMPLES

Differences in the criteria for evaluating products and services

Differences in economic and social conditions and family structure

The benefits sought from a service may differ from country to country.
The style of family decision making may vary significantly from country to country. The types and quality of retail outlets and direct-mail lists may vary greatly among countries. The availability of professional consumer researchers may vary considerably from country to country.

Differences in marketing research and conditions

Differences in marketing research possibilities

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Alternative Multinational Strategies: Global Versus Local

Favoring a World Brand Adaptive Global Marketing Framework for Assessing Multinational Strategies
Global Local Mixed

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Figure 14.3 Leading WristWatch Manufacturer Uses Global Advertising Strategy

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World Brands

Products that are manufactured, packaged, and positioned the same way regardless of the country in which they are sold.

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Table 14.6 A Framework for Alternative Global Marketing Strategies

PRODUCT STRATEGY COMMUNICATON STRATEGY STANDARDIZED COMMUNICATIONS STANDARDIZED PRODUCT Global strategy: Uniform Product/ Uniform Message Mixed strategy: Customized Product/ Uniform Message LOCALIZED COMMUNICATIONS Mixed Strategy: Uniform Product/ Customized Message Local Strategy: Customized Product/ Customized Message

LOCALIZED PRODUCT

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Table 14.8 Six Global Consumer Segments

Strivers 23% Devouts 22%

Altruists 18% Fun Seekers 12%

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Intimates 15% Creatives 10%

Marketing Mistakes: A Failure to Understand Differences

Product Problems Promotional Problems Pricing and Distribution Problems

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Mistake Samples
Snapple: Japanese consumers preferred clear, less sweet iced tea Oreos: Japanese consumers only wanted to eat the base - no cream. Ikea: American windows are taller than European windows.

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Consider Color
Meanings of Blue Holland - warmth Iran - death Sweden - coldness India - purity Meanings of Yellow U.S. - warmth France - fidelity

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