1. CHAPTER TWO Cross-Cultural Variations in Consumer Behavior McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

2. 2 CHAPTER 2 Cultural Factors

3. 3 CHAPTER 2 The Concept of Culture Culture: The complex whole that includes knowledge, belief, art, law, morals, customs, and any other capabilities and habits acquired by humans as members of society Key issues: Comprehensive Acquired Boundaries Seldom Aware

4. 4 CHAPTER 2 Values, Norms, and Sanctions

5. 5 CHAPTER 2 Variations in Cultural Values Environment- oriented values Other- oriented values Self- oriented values Consumption Purchase Communications Society’s view of relationships between people Society’s view of relationships with environment Objectives/ approaches to life society finds desirable

6. 6 CHAPTER 2 Other-oriented Values Individual/Collective: Membership Extended/Limited Family: Grandparents Adult/Child: US versus other Countries Masculine/Feminine: Rank, Prestige Competitive/Cooperative: Comparative Ads Youth/Age: Elders

7. 7 CHAPTER 2 Environment-oriented Values Cleanliness: How Much? Performance/Status: Branded Goods Tradition/Change: Innovation Risk taking/Security: Entrepreneur Problem-solving/Fatalistic: Acceptance Nature: Social Responsibility

8. 8 CHAPTER 2 Self-oriented Values Active/Passive: DO SOMETHING! Material/Nonmaterial: Instrumental/Terminal Hard work/Leisure: Vacation? Postponed gratification/Immediate gratification: Credit Sensual gratification/Abstinence: Differences Humor/Serious: Superficial

9. 9 CHAPTER 2 Consumer Insight 2-1 The coffee bar concept, coupled with high- quality, strongly flavored coffee, obviously transferred successfully from the Italian to the American culture. However, America has traditionally embraced coffee. Will Starbucks work in countries where tea is the dominant drink? What values will affect Starbucks’ success in China? What ethical issues should Starbucks consider as it enters developing countries?

10. 10 CHAPTER 2 Language Issues…

11. 11 CHAPTER 2 Factors Influencing Nonverbal Communication

12. 12 CHAPTER 2 Nonverbal Factors Time Time perspective Meanings in the Use of Time Space Office Space Personal Space Symbols

13. 13 CHAPTER 2 Nonverbal Factors (Survey Project) Friendship The concept of guanxi Agreements Things Etiquette

14. 14 CHAPTER 2 The Meaning of Numbers, Colors, & Symbols

15. 15 CHAPTER 2 Global Demographics Purchasing Power Parity Different Cultures are…Different! Knowing and Addressing is the Trick

16. 16 CHAPTER 2 Approaching a Foreign Market Geographic area Are needs the same? Size of market? Are values consistent? Distribution, Politics, and Legal structures? How do we communicate? Are there any ethical implications?