1. McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

2. PART II: EXTERNAL INFLUENCES 2-2

3. CHAPTER 2 CROSS- CULTURAL VARIATIONS IN CONSUMER BEHAVIOR 2-3

4. Consumer Behavior In The News…  Can You Guess what Motives Underlie Men’s Clothing Purchases in Different Countries?  Europe  China  Japan  U.S.  How Might Fashion Retailers Respond? Source: G. Deeny, “The Men Who Spend it Like Beckham,” Financial Times, February 23, 2008, p. 8 2-4

5. Consumer Behavior In The News…  Can You Guess what Motives Underlie Men’s Clothing Purchases in Different Countries?  Europe – look and feel successful  China – social harmony  Japan – look strong  U.S. – reinvent themselves to seduce  How Might Fashion Retailers Respond? Source: G. Deeny, “The Men Who Spend it Like Beckham,” Financial Times, February 23, 2008, p. 8 2-5

6. Marketing Across Cultural Boundaries is a Difficult and Challenging Task 2-6

7.  One-way influence from U.S. to other countries to…  Mutual influence  Global citizens  Global dreamers  Antiglobals  Global agnostics Globalization Globalization changing from Four major world citizens 2-7

8. The Concept of Culture 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. 2-8

9. The Concept of Culture Cultural values sanctions consumption patterns 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. 2-9

10.  Other-Oriented Values  Environment-Oriented Values  Self-Oriented Values Variations in Cultural Values The numerous values that differ across cultures and affect consumption include: 2-10

11. Variations in Cultural Values Other-Oriented Values  Individual/Collective  Youth/Age  Extended/Limited Family  Masculine/Feminine  Competitive/Cooperative  Diversity/Uniformity 2-11

12. Variations in Cultural Values Environment-Oriented Values  Cleanliness  Performance/Status  Tradition/Change  Risk taking/Security  Problem solving/Fatalistic  Nature 2-12

13. Variations in Cultural Values Tradition/Change A focus on technology as an indicator of change illustrates some dramatic differences across cultures that show the following: Environment-Oriented Values 2-13

14. Variations in Cultural Values Self-Oriented Values  Active/Passive  Sensual gratification/Abstinence  Material/Nonmaterial  Hard work/Leisure  Postponed gratification/Immediate gratification  Religious/Secular 2-14

15. 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. Sensual Gratification/Abstinence 2-15

16. Cultural Variations in Nonverbal Communications 2-16

17. Cultural Variations in Nonverbal Communications Time Time perspective Time Interpretations The meaning of time varies between cultures in two major ways: 2-17

18. Cultural Variations in Nonverbal Communications Overall use and meanings assigned to space vary widely among different cultures Space 2-18

19. 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! 2-19

20. Cultural Variations in Nonverbal Communications 2-20

21. 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 and characterized by guanxi. 2-21

22. 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, etc. 2-22

23. 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. 2-23

24. 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. 2-24

25. Global Cultures A Global Youth 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, movies and videos, listen to the same music, and dress alike. Technology is important factor but U.S. youth and brands no longer lead the way. 2-25

26. Global Demographics 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! 2-26

27. Global Demographics Purchasing Power Parity (PPP) PPP Marketers increasingly use Purchasing Power Parity (PPP) rather than average or median income to evaluate markets. PPP is based on the cost of a standard market basket of products bought in each country. The following shows four countries in terms of PPP: CountryPer Capita Income % of Total income (to top 10%) Per Capita PPP Brazil $4,79145%$8,596 China $1,72135%$4,091 United Kingdom $37,26629%$31,580 United States $41,67430%$41,674 2-27

28. Cross-Cultural Marketing Strategy Considerations in Approaching a Foreign Market 1.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? 2-28

29. Applications in Consumer Behavior This Western Union sign shows how marketers provide a local and/or regional flavor both in signage layout and through use of appropriate symbols and color. © Lars Niki 2-29