1. Consumer Behavior, Ninth Edition Schiffman & Kanuk Copyright 2007 by Prentice Hall Chapter 14 Cross-Cultural Consumer Behavior: An International Perspective

2. 14 - 2 Copyright 2007 by Prentice Hall Chapter Outline The Imperative to Be Multinational Cross-Cultural Consumer Analysis Alternative Multinational Strategies Cross-Cultural Psychographic Segmentation

3. 14 - 3 Copyright 2007 by Prentice Hall The Imperative to Be Multinational Global Trade Agreements –EU –NAFTA Acquiring Exposure to Other Cultures Country-of-origin Effects

4. 14 - 4 Copyright 2007 by Prentice Hall Table 14.1 The World’s Most Valuable Brands 1.Coca-Cola 2.Microsoft 3.IBM 4.GE 5.Intel 6.Disney 7.McDonald’s 8.Nokia 9.Toyota 10.Marlboro

5. 14 - 5 Copyright 2007 by Prentice Hall Most of these brands offer different Web sites for each country. weblink

6. 14 - 6 Copyright 2007 by Prentice Hall Discussion Questions What challenges may Toyota have faced to get this status? What might they have done right in their marketing strategy to achieve this status? Consider the 4Ps.

7. 14 - 7 Copyright 2007 by Prentice Hall Country of Origin Effects: Negative and Positive Many consumers may take into consideration the country of origin of a product. Some consumers have animosity toward a country –People’s Republic of China has some animosity to Japan –Jewish consumers avoid German products –New Zealand and Australian consumers boycott French products

8. 14 - 8 Copyright 2007 by Prentice Hall Swiss Watches

9. 14 - 9 Copyright 2007 by Prentice Hall More Swiss Watches

10. 14 - 10 Copyright 2007 by Prentice Hall Can’t Beat the Engineering The “American” Twist

11. 14 - 11 Copyright 2007 by Prentice Hall This U.S. Government Web site helps those who want to buy USA products. weblink

12. 14 - 12 Copyright 2007 by Prentice Hall National Identity Figure 14.2

13. 14 - 13 Copyright 2007 by Prentice Hall Cross-Cultural Consumer Analysis The effort to determine to what extent the consumers of two or more nations are similar or different.

14. 14 - 14 Copyright 2007 by Prentice Hall Cross-Cultural Consumer Analysis Similarities and differences among people The growing global middle class The global teenage market Acculturation The greater the similarity between nations, the more feasible to use relatively similar marketing strategies Marketers often speak to the same “types” of consumers globally Issues

15. 14 - 15 Copyright 2007 by Prentice Hall Discussion Questions Are people becoming more similar? Why or why not?

16. 14 - 16 Copyright 2007 by Prentice Hall Table 14.2 Comparisons of Chinese and American Cultural Traits Chinese Cultural Traits Centered on Confucian doctrine Submissive to authority Ancestor worship Values a person’s duty to family and state American Cultural Traits Individual centered Emphasis on self- reliance Primary faith in rationalism Values individual personality

17. 14 - 17 Copyright 2007 by Prentice Hall Cross-Cultural Consumer Analysis Similarities and differences among people The growing global middle class The global teenage market Acculturation Growing in Asia, South America, and Eastern Europe Marketers should focus on these markets Issues

18. 14 - 18 Copyright 2007 by Prentice Hall Cross-Cultural Consumer Analysis Similarities and differences among people The growing global middle class The global teenage market Acculturation There has been growth in an affluent global teenage and young adult market They appear to have similar interests, desires, and consumption behavior no matter where they live. Issues

19. 14 - 19 Copyright 2007 by Prentice Hall The iPod has global appeal to the young market. weblink

20. 14 - 20 Copyright 2007 by Prentice Hall Cross-Cultural Consumer Analysis Similarities and differences among people The growing global middle class The global teenage market Acculturation Marketers must learn everything that is relevant about the usage of their product and product categories in foreign countries Issues

21. 14 - 21 Copyright 2007 by Prentice Hall Table 14.6 Basic Research Issues in Cross-Cultural Analysis FACTORS Differences in language and meaning Differences in market segmentation opportunities Differences in consumption patterns Differences 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.

22. 14 - 22 Copyright 2007 by Prentice Hall Table 14.6 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.

23. 14 - 23 Copyright 2007 by Prentice Hall World Brands Products that are manufactured, packaged, and positioned the same way regardless of the country in which they are sold.

24. 14 - 24 Copyright 2007 by Prentice Hall Are Global Brands Different? According to a survey – yes. Global brands have: –Quality signal –Global myth –Social responsibility

25. 14 - 25 Copyright 2007 by Prentice Hall Multinational Reactions to Brand Extensions A global brand does not always have success with brand extentions Example Coke brand extension – Coke popcorn –Eastern culture saw fit and accepted the brand extension –Western culture did not see fit

26. 14 - 26 Copyright 2007 by Prentice Hall Adaptive Global Marketing Adaptation of advertising message to specific values of particular cultures McDonald’s uses localization –Example Ronald McDonald is Donald McDonald in Japan –Japanese menu includes corn soup and green tea milkshakes Often best to combine global and local marketing strategies

27. 14 - 27 Copyright 2007 by Prentice Hall Discussion Question If your university is considering a satellite business program in Korea –How would they need to adapt the program? –What would prompt these changes?

28. 14 - 28 Copyright 2007 by Prentice Hall Alternative Multinational Strategies: Global Versus Local Framework for Assessing Multinational Strategies –Global –Local –Mixed

29. 14 - 29 Copyright 2007 by Prentice Hall Table 14.8 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

30. 14 - 30 Copyright 2007 by Prentice Hall Cross-Cultural Psychographic Segmentation The only ultimate truth possible is that humans are both deeply the same and obviously different.

31. 14 - 31 Copyright 2007 by Prentice Hall Table 14.10 Six Global Consumer Segments Strivers 23% Altruists 18% Devouts 22% Fun Seekers 12% Creatives 10% Intimates 15%