1. Chapter 14 Cross-Cultural Consumer Behavior: An International Perspective

2. ©2000 Prentice Hall The Imperative To Be Multinational Global Trade Agreements –EU –NAFTA Acquiring Exposure to Other Cultures Country-of-origin Effects

3. ©2000 Prentice Hall Cross- Cultural Consumer Analysis Research to determine the extent to which consumers of two or more nations are similar in relation to specific consumption behavior.

4. ©2000 Prentice Hall Issues in Cross-Cultural Consumer Analysis Similarities and Differences Among People –Time Effects The Growing Global Middle Class Acculturation –Research Techniques

5. ©2000 Prentice Hall Table 14.1 Observations on the Differences Between Japan and American Cultural Traits JAPANESE CULTURE, TRAITSAMERICAN CULTURE, TRAITS Japanese languageEnglish language HomogeneousDiverse Harmony to be valued and preserved Fight for one’s belief’s/positions AmbiguousClearcut GeneralSpecific Unspoken agreementGet the facts straight Holdback emotions in publicDisplay emotions in public

6. ©2000 Prentice Hall Table 14.1 continued JAPANESE CULTURE, TRAITSAMERICAN CULTURE, TRAITS Process-orientedResult-oriented Fun-orientedHumor-oriented Make a long story shortMake a short story long Nonverbal communication important Verbal communication important Interested in who is speakingInterested in what is spoken

7. ©2000 Prentice Hall Table 14.2 The Pace of Life in 31 Countries Switzerland31 WALKING 60 FEET OVERALL PACE 12 PUBLIC CLOCK POSTAL SERVICE Ireland12113 Germany5381 Japan7464 Italy105212 England46139 Sweden13775 Austria23838 Netherlands292514 Hong Kong1410146 SPEED IS RELATIVE (rank of 31 countries for overall pace of life and for three measures)

8. ©2000 Prentice Hall Table 14.2 continued Taiwan1814 WALKING 60 FEET OVERALL PACE 217 PUBLIC CLOCK POSTAL SERVICE Singapore2515411 United States6162023 Canada11172221 South Korea20181620 Hungary19 1819 Czech Republic21202317 France8111018 Poland12 815 Costa Rica16131510

9. ©2000 Prentice Hall Table 14.2 continued El Salvador2228 WALKING 60 FEET OVERALL PACE 3116 PUBLIC CLOCK POSTAL SERVICE Brazil31292824 Indonesia2630 26 Mexico17312631 Greece14212913 Kenya9222430 China24231225 Bulgaria27241722 Jordan28261927 Syria2927 28 Romania3025529

10. ©2000 Prentice Hall Acculturation The learning of a new “foreign” culture

11. ©2000 Prentice Hall Table 14.3 The Feasibility of Consumer Telephone Research in Asia COUNTRYFEASIBILITY Australiayes China, Mainlandno, but within five years in big cities Hong Kongyes, best method by far Indiayes, for big cities and in English Indonesiayes, in Java, Bali and Sumatra Japanyes South Koreayes

12. ©2000 Prentice Hall Table 14.3 continued COUNTRYFEASIBILITY Malaysiayes, Peninsula New Zealandyes Philippinesyes Singaporeyes Taiwanyes Thailandyes Vietnamno

13. ©2000 Prentice Hall Table 14.4 Basic Research Issues in Cross-Cultural Analysis FACTORS Differences in language and meaning Difference in market segmentation opportunities Difference in consumption patterns Difference in the perceived benefits of products and services 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. Two countries may differ substantially in the level of consumption or use of products or services. Two nations may use or consume the same product in very different ways.

14. ©2000 Prentice Hall Table 14.4 continued FACTORS Differences in the criteria for evaluating products and services Differences in economic and social conditions and family structure Differences in marketing research and conditions Differences in marketing research possibilities EXAMPLES 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.

15. ©2000 Prentice Hall Alternative Multinational Strategies: Global Versus Local Favoring a “World Brand” Adaptive Global Marketing Framework for Assessing Multinational Strategies –Global –Local –Mixed

16. ©2000 Prentice Hall WorldBrands Products that are manufactured, packaged, and positioned the same way regardless of the country in which they are sold.

17. ©2000 Prentice Hall Table 14.5 Advertising to the World’s Consumers RANKCOUNTRY PER-CAPITA MEDIA SPENDING* 1Japan$2,137 2United States 1,861 3France 1,845 4Germany 1,593 5Netherlands 1,517 6Denmark 1,504 7Belgium 1,357 8United Kingdom 1,286 REACHING PEOPLE (media spending per capita for top-ranking and bottom ranking countries, 1996)

18. ©2000 Prentice Hall Table 14.5 continued RANKCOUNTRY PER-CAPITA MEDIA SPENDING* 9Hong Kong$1,180 10Australia 1,166 126Tanzania $4.10 127Vietnam 2.92 128Nigeria 2.77 129China 2.62 130Laos 0.41 *Author’s estimates based on various sources.

19. ©2000 Prentice Hall Table 14.6 A Product Recognition Continuum for Multinational Marketing FACTORSEXAMPLES STAGE ONE Local consumers have heard or read of a brand marketed elsewhere but cannot get it at home; a brand is “alien” and unavailable but may be desirable STAGE TWO Local consumers view a brand made elsewhere as “foreign,” made in a particular country but locally available.The fact that the brand is foreign makes a difference in the consumer’s mind, sometimes favorable, sometimes not.

20. ©2000 Prentice Hall Table 14.6 continued FACTORSEXAMPLES STAGE THREE Local consumers accord imported brand “national status”; that is, it’s national origin is known but does not affect their choice STAGE FOUR Brand owned by a foreign company is made domestically and has come to be perceived by locals as a local brand; its foreign origins may be remembered but the brand has been “adopted”. Examples are Sony in the U.S., Coca-Cola in Europe and Japan STAGE FIVE Brand has lost national identity and consumers everywhere see it as “borderless” or global; not only can people not identify where it comes from but they never ask this question. Examples include the Associated Press and CNN news services, Nescafe, Bayer aspirin.

21. ©2000 Prentice Hall Table 14.7 A Framework for Alternative Global Marketing Strategies PRODUCT STRATEGY COMMUNICATON STRATEGY STANDARDIZED COMMUNICATIONS LOCALIZED COMMUNICATIONS STANDARDIZED PRODUCT Global strategy: Uniform Product/ Uniform Message Mixed Strategy: Uniform Product/ Customized Message LOCALIZED PRODUCT Mixed strategy: Customized Product/ Uniform Message Local Strategy: Customized Product/ Customized Message

22. ©2000 Prentice Hall Marketing Mistakes: A Failure to Understand Differences Product Problems Promotional Problems Pricing and Distribution Problems

23. ©2000 Prentice Hall Table 14.8 Six Global Consumer Market Segments SEGMENT NAME GLOBAL SIZEDESCRIPTION Strivers23%Value wealth, status, ambition, and power, and products like cellular telephones and computers. They consider material things extremely important. Devouts22%Have more traditional values, like faith, duty, obedience, and respect for elders. Least involved with the media and least likely to want Western brands. Concentrated in the Mideast, Africa, and Asia. Altruists18%Very outer focused--interested in social issues and cases. Generally well established, older, and more female than the norm. Found in Russia and Latin America.

24. ©2000 Prentice Hall Table 14.8 continued SEGMENT NAME GLOBAL SIZEDESCRIPTION Intimates15%These are “people people,” and focus on relationships close to home, such as spouses, significant others, family, and friends. Often found in England, Hungary, the Netherlands, and the U.S. Very heavy users of media--gives them something to talk about to others. Fun Seekers12%The youngest group. They value excitement, adventure, pleasure, and looking good, and spend time at bars, clubs, and restaurants. The group loves electronic media and is more global in its lifestyle, especially in music. Creatives10%Dedicated to technology, knowledge, and learning, and are the highest consumers of media, especially books, magazines, and newspapers Members of this group are global trendsetters in owning and using a PC and in surfing the Web.

25. ©2000 Prentice Hall Table 14.9 Eight Socioeconomic- Psychographic Segments of the Latin American Market EMERGING PROFESSIONAL ELITE 14% of total; occupies top professional executive positions: 51% graduated from university or technical college 55% are married 98% have color TV; 96% VCR; 97% car; 98% credit card; 90% vacuum cleaner TRADITIONAL ELITE 11%; almost half in top professional executive positions: 53% finished secondary education 54% married All have color TV; 91% VCR; 89% car; 60% credit card; 60% vacuum cleaner PROGRESSIVE UPPER MIDDLE CLASS 13%; 36% in top or middle management: 75% studied beyond primary education, 30% studied beyond secondary school 48% married 99% have color TV; 77% VCR; 74% car; 31% credit card; 30% vacuum cleaner

26. ©2000 Prentice Hall Table 14.9 continued SELF-MADE MIDDLE CLASS 11%; skills gained through entrepreneurship: Most ended education with primary school, “virtually none” went beyond secondary school Half married 98% have color TV; 72% VCR; 81% car; 46% credit card; 51% vacuum cleaner SKILLED MIDDLE CLASS 9%; 45% have top operational jobs, 14% own small businesses: 60% completed secondary education; 18% completed university or technical college Half married 96% have color TV; 60% VCR; 28% car; 29% credit card; 32% vacuum cleaner SELF-SKILLED LOWER MIDDLE CLASS 13%; 58% employed in operational jobs: 42% went beyond primary school, 11% went beyond secondary education Half married 97% have color TV; 50% VCR; 4% car; 8% credit card; none vacuum cleaner

27. ©2000 Prentice Hall Table 14.9 continued INDUSTRIAL WORKING CLASS 14%; a third are in skilled worker positions and another third in average operational jobs: 16% went beyond secondary school, 26% completed secondary, 35% complete primary 57% married 92% have color TV; 13% VCR; 5% credit card; 15% vacuum cleaner STRUGGLING WORKING CLASS 15%; most in operational, skilled and unskilled jobs: 29% completed primary school, 24% completed secondary school 53% married 63% have color TV; no more than 10% have VCR, car, credit card, or vacuum cleaner