Chapter 16. Culture and Cross-. Cultural Variations in Chapter 16 Culture and Cross- Cultural Variations in Consumer Behaviour Concept of culture How culture is shared and acquired Cultural values classified into 3 categories Culture includes non-verbal communications Risks and opportunities of cross-cultural or ethnic marketing In this lecture we will discuss the concept of culture, how culture is acquired, the 3 categories of cultural values, and the importance of non-verbal communications in cross-cultural and ethnic marketing. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

Cultural Influences—Overview Definitions Cultural values Cross-cultural variations Non-verbal communications Cross-cultural marketing strategy Specifically, the lecture will discuss the definition of cultural influences, explain cultural values, cross-cultural variations, non-verbal communications in various markets and provide a checklist for developing a cross-cultural marketing strategy. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

Definition of Culture Complex concept that includes knowledge, beliefs, art, law, morals, custom, and any other capabilities acquired by humans as members of society. Culture includes almost everything that influences an individual’s thought processes and behaviours. Culture is defined as a complex concept that includes knowledge, beliefs, art, law, morals, custom, and any other capabilities acquired by humans as members of society. Culture includes almost everything that influences an individual’s thought processes and behaviours. (See page 524.) Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

Variables Influencing Cross-Cultural Marketing Strategies Consumer behaviour is influenced by non-verbal and verbal (language) communication, demographics (ethnic influences) and values. Cross-cultural issues are particularly important for countries such as Australia and New Zealand, whose populations consist of a number of cultures, and whose economic well-being depends on exports. (See page 523.)

Culture Is a comprehensive concept Influences our preferences Is acquired from our experiences and learning Supplies the boundaries for behaviour in modern societies Consumers are seldom aware of cultural influences Culture operates primarily by setting boundaries for individual behaviour, and by influencing the functioning of such institutions as the family and mass media. The boundaries or norms are derived from cultural values. Values are widely-held beliefs that affirm what is desirable. Culture changes when values change, the environment changes, or dramatic events occur. (See page 524.) Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

Cultural Values, Norms, Sanctions and Consumption Patterns Cultural values are widely held beliefs that dictate what is desirable and set the boundaries about what is expected (norms) and what should be avoided (sanctions). The violation of cultural norms results in sanctions or penalties. Thus, acceptable consumption patterns are set. These vary within groups and must be learnt by individuals: often they conform by acting ‘naturally’. (See page 527.)

Classification of Cultural Values Three broad classifications are used: Other-oriented Environment-oriented Self-oriented Cultural values are classified into three categories: other, environment, and self-oriented. (See pages 526–527.) Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

Other-Oriented Values Individual vs collective (initiative, conformity) Romantic orientation (love) Adult vs child (child’s place) Masculine vs feminine (male role) Competition vs cooperation (excel or not?) Youth vs age (wisdom of elders) Other-oriented values reflect a society’s view of the appropriate relationships between individuals and groups within that society. Relevant values of this nature include the individual/collective, romantic, adult/child, masculine/feminine, competition/cooperation and youth/age orientations. (See pages 527–528.) Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

Other-Oriented Values (cont.) See page 527.

Environment-Oriented Values Cleanliness (extent of) Performance vs status (performance or class) Tradition vs change (new behaviours?) Risk-taking vs security (risk encouraged?) Problem-solving vs fatalism (problem-solving or acceptance encouraged?) Nature (admired or overcome?) Environment-oriented values prescribe a society’s relationships with its economic, technical and physical environments. Examples of these values are cleanliness, performance/status, tradition/change, risk taking/security, problem solving/fatalism and nature. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

Environment-Oriented Values (cont.) See page 527.

Self-Oriented Values Active vs passive (physical activity) Material vs non-material approach (acquisition?) Hard work vs leisure (admire hard work?) Postponed vs immediate gratification (save/enjoy now) Sensual gratification vs abstinence (food, drink) Humour vs seriousness (is life serious?) Self-oriented values reflect the objectives and approaches to life that individual members of society find desirable. These include active/passive, material/non-material approaches, hard work/leisure, postponed gratification/immediate gratification, sensual gratification/abstinence, and the humorous/serious approach. (See pages 526–527.) Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

Self-Oriented Values (cont.) See page 527.

The Australasian Culture Australasian values Self-oriented values Environment-oriented values See pages 528–529 for discussion. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

Cross-Cultural Variations: Factors Influencing Non-Verbal Communications Time Space Friendship Agreements Things Symbols Etiquette Differences in verbal communication systems are immediately obvious across cultures, and must be taken into account by marketers wishing to do business in those cultures. Probably more important, however, and certainly more difficult to recognise, are non-verbal communication differences. Examples of the major non-verbal communication variables that affect marketers are time, space, friendship, agreement, things, symbols and etiquette. (See pages 531–536.) Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

Time Perspective Monochronic One thing at a time Concentrate on one job Deadlines matter Commitment to task Adhesion to plans Promptness is valued Short-term relationships Polychronic Many things at once Highly distractible Deadlines are secondary Commitment to people Changing plans is easy Promptness depends Long-term preferred Australasians, like most Westerners, view time as inescapable, linear and fixed in nature. They see it as having separate sections (hours, days, weeks, etc.) and as almost a physical object: it can be saved, lost or wasted. This is known as a monochronic view of time. Other cultures have a different view of time: Chinese, Koreans, Indians and Latin Americans view simultaneous involvement in activities as natural. They tend to set their own pace rather than attempting to adhere to some predetermined timetable. These differences highlight the differences between the two perspectives. (See Exhibit 16.10, page 539.) Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

Non-Verbal Communications (cont.) Space Friendship Agreements Things Symbols Etiquette Space concepts vary between cultures: for example, in Australia the higher levels of management have larger offices, although they do not require the space. The bargain basement tends to be on the lower levels, whereas in Japanese stores it is on the upper floors. Friendship: Australians make friends quickly, whereas other cultures progress towards friendship more slowly. Selling to friends is not attractive to Europeans. Agreements: Australians rely on a legal system and a person’s ‘word’ for agreements. In some cultures a ‘yes’ means ‘maybe’ and not necessarily ‘yes’. Things or items can have different meanings in different cultures. To give a knife in France is offensive as it implies that the friendship will be ‘cut’. Symbols: various colours and symbols have different meanings in different cultures. Company logos and trademarks can be an instant failure if not researched. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

Etiquette Eye contact with business clients Touching a customer on the arm or shoulder Contact between males Eye contact: looking a person ‘straight in the eyes’, an admirable trait in Australia, is considered hostile or insane in Japan. Touching, even on the arm or shoulder: touching a customer on the arm or shoulder, common in Australia, is extremely rude in much of Asia. Male contact: hugging, hand-holding and even kissing between males can be highly offensive in Australia, but quite acceptable in some Arabic and Latin countries. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

Translation Problems in Marketing See page 538.

Developing a Cross-Cultural Marketing Strategy (7 Questions) Is it a homogenous culture? What needs will the product fill? Can enough afford the product? What values are relevant to this product? What are the distribution, political and legal structures? How can the firm communicate about the product? What are the ethical implications? Seven questions are relevant for developing a cross-cultural marketing strategy: Firstly, is the geographic area homogeneous with respect to culture? Second, what needs can this product fill in this culture? Third, can people afford the product? Fourth, what values or patterns of values are relevant to the purchase and use of the product? Fifth, what are the distribution, political and legal structures relating to the product? Sixth, how can the firm communicate about the product? Seventh, what are the ethical implications of marketing the product in that culture? (See page 544ff.) Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

Legal Restrictions on Advertising France: Ads for book publishers, foreign tourism, supermarket chains, margarine and contraceptives are banned. Children cannot be used in ads. Germany: Ads may not inspire fear, encourage superstition, or promote discrimination. Athletes may not be shown drinking. Direct appeals to children are not allowed. Comparative advertising is severely restricted. Britain: Ads for undertakers, the Bible, matrimonial agencies, fortune-tellers, private detectives, contraceptives and pregnancy tests are banned. If used read from slide. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

Next Lecture… Chapter 17: Business-to-Business Buying Behaviour Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins