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Chapter 16 Global Consumer CultureCONSUMER BEHAVIOR, 9e Michael R. Solomon Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Chapter Objectives When you finish this chapter, you should understand why: Styles act as a mirror to reflect underlying cultural conditions. We distinguish between high and low culture. Many modern marketers are reality engineers. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Chapter Objectives (continued)New products, services, and ideas spread through a population. Different types of people are more or less likely to adopt them. Many people and organizations play a role in the fashion system that creates and communicates symbolic meaning to consumers. Fashions follow cycles. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Chapter Objectives (continued)Products that succeed in one culture may fail in another if marketers fail to understand the differences among consumers in each place. Western (and particularly American) culture has a huge impact around the world, though people in other countries don’t necessarily ascribe the same meanings to products as we do. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Where Does Culture Come From?Influence of inner-city teens Hip-hop/black urban culture Outsider heroes, anti-oppression messages, and alienation of blacks “Flavor” on the streets Even though inner-city teens represent only 8% of all people in that age group and have incomes lower than their white suburban counterparts, their influence on young people’s music and fashion tastes is great. Popular culture can arise from many sources and become symbolically connected to others. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Figure 16.1 The Movement of MeaningMainstream culture can modify symbols associated with subcultures so they are appealing to larger audiences. This is known as cooptation. It means that outsiders transform the original meanings of the objects. Cultural meanings can be created from everyday products and these meanings then move through society. Figure 16.1 shows that advertising and fashion play a key role in this process. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Figure 16.2 Culture Production ProcessSometimes we might feel that we have too many choices but really at any point in time we might actually have just a small fraction of the total set of possibilities. Figure 16.2 shows that when we select certain alternatives over others, our choice actually is only the culmination of a complex filtration process that resembles a funnel. Possibilities compete for adoption but then most drop out as they make their way down the path from conception to consumption. This winnowing process is called cultural selection. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Culture Production SystemA culture production system is the set of individuals and organizations that create and market a cultural product It has three major subsystems Creative Managerial Communications No single person or company can create popular culture. Instead, many people and organizations contribute to each new trend. A culture production system (CPS) is this set of people and organizations who create cultural meaning. The system has three major subsystems. The creative subsystem generates new symbols and products. The managerial subsystem selects, makes, produces, and manages the distribution of new symbols and products. A communications subsystem gives meaning to the new product and provide it with a symbolic set of attributes. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Cultural Gatekeepers Cultural gatekeepers are responsible for filtering the overflow of information and materials intended for customers Tastemakers Throughput sector Tastemakers have a say in the products we consider. They are cultural gatekeepers who filter information as it flows down the funnel. Gatekeepers include product reviewers, interior designers, retail buyers, and magazine editors. Social scientists call these agents the throughput sector. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
High Culture and Popular CultureAn art product is an object we admire for its beauty and our emotional response A craft product is admired because of the beauty with which it forms a function Mass culture creates products for a mass market Though culture can create popularity for high and low art and for arts and crafts, there are some basic distinctions. A piece of art is original, subtle, and valuable and it is typically associated with society’s elite. A craft tends to follow a formula that permits rapid production. Mass culture products seek to please the average taste of the average audience. Many popular art forms follow a sort of formula for success as we discuss further on the next slide. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Table 16.2 Cultural Formulae in Public Art FormsArt Form/Genre Western Family Sitcom Time 1800s Anytime Location Edge of civilization Suburbs Protagonist Cowboy Father Heroine Schoolmarm Mother Villain Outlaws Boss, neighbor Secondary characters Town folk Kids, dogs Plot Restore law and order Solve problem Theme Justice Chaos and confusion Costume Cowboy hat, boots Regular clothes Locomotion Horse Station wagon, SUV Weaponry Rifle Insults This table illustrates that many popular art forms follow a cultural formula. Familiar roles and props occur consistently throughout each respective art form or genre. The complete table in the text provides four examples of cultural formulae but here we show two. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Discussion Can you identify a cultural formula at work in romance or action movies? Do you see parallels among the roles different characters play (e.g., the hero, the evildoer, the temptress, etc.)? Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Reality Engineering Many consumer environments have images/characters spawned by marketing campaigns or are “retreads” Marketers use pop culture as promotional vehicles “New vintage” (e.g., “used jeans”) Elements used are both sensory and spatial Reality engineering occurs when marketers appropriate elements of popular culture and use them as promotional vehicles. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Product Placement and Branded EntertainmentInsertion of specific products and use of brand names in movie/TV scripts Directors incorporate branded props for realism Is product placement a positive or negative when it comes to consumer decision-making? The use of branded products in film is an old practice but it has renewed attention as brands pay large sums to be included in popular programming. Sometimes the product placement is free because the director wants to use the branded prop for realism. Other times, the placement comes with a fee. The practice is called branded entertainment sometimes because the brands may sponsor the program (like American Idol). Some researchers claim that product placement helps consumers to make decisions because consumers are then familiar with the brands when they shop. However, others say that placements can be a negative influence on consumer decisions if they are not congruent with the plot. In other words, the placement has to make sense in the minds of consumers in order to be effective. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Advergaming Advergaming refers to online games merged with interactive advertisements Advertisers gain many benefits with advergames Plinking is the act of embedding a product in a video Many brands have used advergaming including Axe, Burger King, and Mini Cooper. The games keep the attention of players longer than typical advertising. They let marketers target specific types of consumers. Marketers can tailor the nature of the game and the products in it to the profiles of different users. The format gives advertisers a great deal of flexibility. Lastly, the games enable marketers to track exposure to advertising in the games. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
The Diffusion of InnovationsInnovation: any product that consumers perceive to be new New manufacturing technique New product variation New way to deliver product New way to package product Diffusion of innovation Successful innovations spread through the population at various rates The diffusion of innovation refers to the process whereby a new product, service, or idea spreads through a population. An innovation is any product or service that consumers perceive to be new. Marketers may need to encourage adoption of new products. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Figure 16.3 Types of AdoptersFigure 16.3 shows the process of diffusion and the categories of people who adopt at various stages in the process. Innovators and early adopters are quick to adopt products. Laggards are very slow. The early majority and late adopters are in the middle. Early adopters are similar to innovators but they are different in their degree of concern for social acceptance. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Behavioral Demands of InnovationsThree major types of innovations (amount of disruption/change they bring to our lives): Continuous innovation Evolutionary rather than revolutionary Dynamically continuous innovation More pronounced change to existing product Discontinuous innovation Creates major changes in the way we live We categorize innovations by the degree to which they demand adopters to change their behavior. A continuous innovation is a modification of an existing product such as when Levi’s promotes a new cut of jeans. The company makes a small change to an existing product. Most product innovations are of this type. When a consumer adopts this kind of new product, she only has to make minor changes in her habits. A dynamically continuous innovation is a significant change to an existing product. A discontinuous innovation creates really big changes in the way we live. Major inventions such as the airplane, the car, the computer, and the television all changed modern lifestyles. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Prerequisites for Successful AdoptionCompatibility Innovation should be compatible with consumers’ lifestyles Trialability People are more likely to adopt an innovation if they can experiment with it prior to purchase Complexity A product that is easy to understand will be chosen over competitors Observability Innovations that are easily observable are more likely to spread A successful innovation, no matter how much we have to change in order to adopt it, should possess certain attributes. To the extent that the product innovation meets these five criteria, it will be adopted. Relative Advantage Product should offer relative advantage over other alternatives Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
The Fashion System The fashion system includes all those people and organizations involved in creating symbolic meanings and transferring these meanings to cultural goods Fashion is code Fashion is context-dependent Fashion is undercoded Although we might think of fashion as clothing, it really includes all types of cultural phenomena including music, art, architecture, and science. We can think of fashion as a code or a language that helps us to decipher meaning. Unlike language, though, fashion is context-dependent. Different consumers can interpret the same style differently. Fashion products are undercoded too. That means that there is no one precise meaning but rather potentially different meanings for each person perceiving the fashion. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Behavioral Science Perspectives and Models of FashionPsychological Economic Sociological Medical The meanings we give products reflect the underlying cultural categories that correspond to the basic ways we characterize the world. Our culture distinguishes between different times of day, between leisure and work, and between genders. Fashion is very complex and operates on many levels. It can affect us as a society and as an individual. Psychological factors can help us to explain what motivates us to be fashionable. Economists approach fashion in terms of supply and demand. The sociological perspective focuses on a subculture’s adoption of a fashion. The trickle-down theory states that there are two conflicting forces that drive fashion change. First, subordinate groups adopt the status symbols of the groups above them as they attempt to climb up the ladder of social mobility. Dominant styles originate with the upper classes and trickle down to those below. Meme theory explains how something becomes popular seemingly all of a sudden. A meme is an idea or product that enters the consciousness of people over time. Memes spread among consumers in a geometric progression just as a virus starts off small and steadily infects increasing numbers of people until it becomes an epidemic. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Motives and Psychological Models of FashionConformity Desire for variety seeking Need to express personal creativity Sexual attraction There are many motives for fashion; some are identified on the slide. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Figure 16.4 Normal Fashion Life CycleFigure 16.4 shows that an item or idea progresses through basic stages from birth to death as it makes its way through the fashion life cycle. The cycle is very similar to the product life cycle. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Fashion Life Cycle ExampleIntroduction stage: small number of music innovators hear a song Acceptance stage: song enjoys increased visibility Regression stage: song reaches stage of social saturation as it becomes overplayed This slide explains the three stages in the overall fashion life cycle. A classic fashion is one with an extremely long acceptance cycle. A fad is one with a very short cycle. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Figure 16.5 Comparison of Acceptance of Fads, Fashions, and ClassicsFigure 16.5 illustrates that fashions begin slowly but if they “make it,” they may diffuse rapidly, peak, and retreat into obscurity. We can identify classes of fashion by the relative length of their acceptance cycles. This is how we differentiate between a fad and a classic. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Discussion What is and what should be the role of fashion in our society? How important is it for people to be in style? What are the pros and cons of keeping up with the latest fashions? Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Figure 16.6 Behavior of FadsFigure 16.6 illustrates that some types of fads have longer life spans than others. Past fad products have included snap bracelets, pet rocks, and hula hoops. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 16-27
How Might We Know if a Trend is a Fad?Does it fit with basic lifestyle changes? Are there benefits? Can we personalize it? Is it a trend or a side effect? Is it a carryover effect? Who adopted the change? This slide lists some questions we can pose and answer to determine whether a trend will be just a fad. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Cultural Differences and MarketingPeople around the world develop their own unique preferences Marketers must be aware of a culture’s norms and manage the relationship between brand and culture strategically Managing the global characteristics of a brand and the culture of the host country is necessary given the importance of global markets to brands. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Think Globally, Act LocallyAdopt a standardized strategy Adopt a localized strategy There is a debate on how a company can best meet the needs of a global market and be efficient too. Should an organization develop separate marketing plans for each culture or should it craft a single plan to implement everywhere? Those who support a standardized marketing strategy argue that many cultures, especially those of industrialized countries are so homogenized that the same approach will work throughout the world. Then the company can develop economies of scale because it does not have to incur the time and expense to develop a separate strategy for each culture. This viewpoint represents an etic perspective which focuses on commonalities across cultures. An etic approach reflects the views of culture from the perspective of an outsider. Others support a localized strategy, learning from those who have struggled with cultural issues like Disney. Disney tried to enforce its culture on its Euro Disney Park and failed. When it opened its Hong Kong location, it instead pursued a localized strategy which was highly successful. Disney’s experience supports an emic perspective, which stresses variations across cultures. This view believes that each culture is unique and therefore marketing strategies must be tailored to the specific culture. Most marketers attempt to find a compromise somewhere in between these two choices such that standardization occurs where it can, but products and strategies are also customized. This ad from Electrolux is a good reminder that most brands are global and will face this issue. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Consumers and Global BrandsGlobal citizens Global dreamers Antiglobals A large-scale study with consumers in 41 countries identified the characteristics people associate with global brands and measured the relative importance of those dimensions when consumers buy products. The researchers grouped consumers who evaluate global brands in the same way and identified four major segments. Global citizens are the largest segment, making up 55% of consumers. They use the global success of a company as a signal of quality and innovation. Global dreamers are the second-largest segment. They consists of consumers who see global brands as quality products and readily buy into the myths told. Antiglobals are skeptical that transnational companies can deliver high-quality goods. They don’t trust global companies to behave responsibly. Global agnostics do not base purchase decisions on a brand’s global attributes. They evaluate global products just as they do local products. Global agnostics Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Emerging Consumer Cultures in Transitional EconomiesCreolization occurs when foreign influences integrate with local meanings Peruvian boys carry rocks painted like radios Chivas Regal wrappers on drums in highland Papua New Guinea Japanese use Western words for anything new and exciting “I feel Coke and sound special” The creolization process sometimes results in bizarre permutations of products and services when locals modify them to be compatible with their customs. This is clear from the examples shown on the slide. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Chapter Summary Styles are like a mirror that reflect culture.We can distinguish between high and low forms of culture. Marketers are also reality engineers. New products spread through the population. Certain characteristics make it more likely that they will be adopted. We’ve reviewed many concepts in this chapter. The key points are noted on the slide. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Chapter Summary The fashion system creates and communicates symbolic meaning for consumers. Fashion follows cycles. Products that succeed in one culture may fail in another due to cultural differences. Western culture has a huge influence on other cultures. We’ve reviewed many concepts in this chapter. The key points are noted in the slide. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 16-34
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