Chapter 14

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

2. The Imperative To Be Multinational • Global Trade Agreements • EU • NAFTA • Acquiring Exposure to Other Cultures • Country-of-origin Effects

3. 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. Issues in Cross-Cultural Consumer Analysis • Similarities and Differences Among People • Time Effects • The Growing Global Middle Class • Acculturation • Research Techniques

5. Table 14.1 Observations on the Differences Between Japan and American Cultural Traits JAPANESE CULTURE, TRAITS AMERICAN CULTURE, TRAITS • Japanese language • English language • Homogeneous • Diverse • Harmony to be valued and preserved • Fight for one’s belief’s/positions • Ambiguous • Clearcut • General • Specific • Unspoken agreement • Get the facts straight • Holdback emotions in public • Display emotions in public

6. Table 14.1 continued JAPANESE CULTURE, TRAITS AMERICAN CULTURE, TRAITS • Process-oriented • Result-oriented • Fun-oriented • Humor-oriented • Make a long story short • Make a short story long • Nonverbal communication important • Verbal communication important • Interested in who is speaking • Interested in what is spoken

7. Table 14.2 The Pace of Life in 31 Countries SPEED IS RELATIVE (rank of 31 countries for overall pace of life and for three measures) OVERALL PACE WALKING 60 FEET POSTAL SERVICE PUBLIC CLOCK Switzerland 1 3 2 1 Ireland 2 1 3 11 Germany 3 5 1 8 Japan 4 7 4 6 Italy 5 10 12 2 England 6 4 9 13 Sweden 7 13 5 7 Austria 8 23 8 3 Netherlands 9 2 14 25 Hong Kong 10 14 6 14

8. Table 14.2 continued OVERALL PACE WALKING 60 FEET POSTAL SERVICE PUBLIC CLOCK France 11 8 18 10 Poland 12 12 15 8 Costa Rica 13 16 10 15 Taiwan 14 18 7 21 Singapore 15 25 11 4 United States 16 6 23 20 Canada 17 11 21 22 South Korea 18 20 20 16 Hungary 19 19 19 18 Czech Republic 20 21 17 23

9. Table 14.2 continued OVERALL PACE WALKING 60 FEET POSTAL SERVICE PUBLIC CLOCK Greece 21 14 13 29 Kenya 22 9 30 24 China 23 24 25 12 Bulgaria 24 27 22 17 Romania 25 30 29 5 Jordan 26 28 27 19 Syria 27 29 28 27 El Salvador 28 22 16 31 Brazil 29 31 24 28 Indonesia 30 26 26 30 Mexico 31 17 31 26

10. Acculturation The learning of a new “foreign” culture

11. Table 14.3 The Feasibility of Consumer Telephone Research in Asia COUNTRY FEASIBILITY Australia yes China, Mainland no, but within five years in big cities Hong Kong yes, best method by far India yes, for big cities and in English Indonesia yes, in Java, Bali and Sumatra Japan yes South Korea yes

12. Table 14.3 continued COUNTRY FEASIBILITY Malaysia yes, Peninsula New Zealand yes Philippines yes Singapore yes Taiwan yes Thailand yes Vietnam no

13. Table 14.4 Basic Research Issues in Cross-Cultural Analysis FACTORS EXAMPLES Differences in language and meaning Words or concepts may not mean the same in two different countries. Difference in market segmentation opportunities The income, social class, age, and sex of target customers may differ dramatically in two different countries. Difference in consumption patterns Two countries may differ substantially in the level of consumption or use of products or services. Difference in the perceived benefits of products and services Two nations may use or consume the same product in very different ways.

14. Table 14.4 continued FACTORS EXAMPLES Differences in the criteria for evaluating products and services The benefits sought from a service may differ from country to country. Differences in economic and social conditions and family structure The “style” of family decision making may vary significantly from country to country. Differences in marketing research and conditions The types and quality of retail outlets and direct-mail lists may vary greatly among countries. Differences in marketing research possibilities The availability of professional consumer researchers may vary considerably from country to country.

15. Alternative Multinational Strategies: Global Versus Local • Favoring a “World Brand” • Adaptive Global Marketing • Framework for Assessing Multinational Strategies • Global • Local • Mixed

16. World Brands Products that are manufactured, packaged, and positioned the same way regardless of the country in which they are sold.

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

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

19. Table 14.6 A Product Recognition Continuum for Multinational Marketing FACTORS EXAMPLES 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. Table 14.6 continued FACTORS EXAMPLES 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. 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. Marketing Mistakes: A Failure to Understand Differences • Product Problems • Promotional Problems • Pricing and Distribution Problems

23. Table 14.8 Six Global Consumer Market Segments SEGMENT NAME GLOBAL SIZE DESCRIPTION Strivers 23% Value wealth, status, ambition, and power, and products like cellular telephones and computers. They consider material things extremely important. Devouts 22% 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. Altruists 18% 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. Table 14.8 continued SEGMENT NAME GLOBAL SIZE DESCRIPTION Intimates 15% 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 Seekers 12% 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. Creatives 10% 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. 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. 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. 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