Cultural Influences on Consumer Behaviour

1. Cultural Influences on Consumer Behaviour

3. Cross-Cultural Marketing gaffs • Chevrolet Nova didn't do well in Spanish speaking countries ...Nova means 'No Go' • In Brazil the Ford Pinto flopped because Pinto was Brazilian slang for "tiny male genitals." Ford pried all the nameplates off and substituted Corcel, which means horse. • Bacardi concocted a fruity drink with the name 'Pavian' to suggest French chic ... but 'Pavian' means 'baboon' in German. • A peanut-packed chocolate bar targeted at Japanese teenagers needing energy while cramming for exams ran into a belief that eating peanuts and chocolate causes nosebleeds. • Coors slogan, "Turn it Loose," translated into Spanish as "Suffer From Diarrhea." • Jolly Green Giant translated into Arabic means "Intimidating Green Ogre."

4. Puffs tissues had a bad name in Germany since "Puff" is a colloquial term for whorehouse. • Chicken magnate Frank Perdue’s slogan "It takes a tough man to make a tender chicken, “translated into Spanish came out as "It takes a sexually stimulated man to make a chicken affectionate." • In Italy, a campaign for Schweppes Tonic Water translated the name into"Schweppes Toilet Water." • Beta Systems of Germany prefaced all its software products in North America with the word Beta, which in the Software business is pre-release testing phase of the product meaning it’s not ready for general use. • Japan's 2nd-largest tourist agency, the Kinki Nippon Tourist Co., changed its name after it began receiving requests for unusual sex tours when it entered English-speaking markets. • Scandinavian vacuum manufacturer Electrolux used the following in an American campaign, "Nothing sucks like an Electrolux".

5. What is Culture? The meanings shared by most people in a social group. Characteristics of Culture • Culture is learned • Culture is unconscious • Culture is Symbolic • Culture is a way of life • Culture is Dynamic • Culture is Relative

6. A wink or a twitch

7. Dimensions of Culture • Values • Norms • Ideas/Beliefs • Attitudes • Symbols • Traditions • Artifacts

8. 1896 1918 1924 1935 1955 1960 1970 1986 1990 Culture is Dynamic

9. A woman’s place is in the home?

10. Decoding the Message In the UK, the use of humour in advertising is is also dominant in beer advertising, with 88% using this feature In Germany, beer is not directly associated with humorous advertising, and only 10% of the sample used humour Other themes: sex, sport, friendship, relaxation, tradition

12. What is this ad saying?

13. Swanson TV Dinners

14. Capitalizing on Cultural Trends Swanson TV Dinners 1953

15. Products or services that resonate with the priorities, tastes, and values of a culture have a much better chance of success.

16. Everyone should use a deodorant USA 89% French Canada 81% English Canada 77% United Kingdom 71% Italy 69% France 59% Australia 25% Such findings signal that Canadian values, ideas, and attitudes should not be relied upon when planning marketing forays into foreign consumer markets

17. A house should be dusted and polished three times a week Italy 86% United Kingdom 59% France 55% Spain 53% Germany 45% Australia 33% Canada 25% Each product or service must be evaluated for its potential fit with the cultural norms and values of consumers in a particular country or region

18. Why is it important for businesses to understand culture? • Culture is the lens through which people view products as well as your company • Culture channels our values, attitudes, motives and goal directed behavior, as well as our personality • Culture determines the overall priorities consumers attach to different activities and products • Consumption choices cannot be understood without considering the cultural context in which they are made • Determines the success or failure of specific products or services and marketing efforts • Determines the success or failure of marketing communications

19. Sacred and Profane Consumption Sacred Consumption Profane Consumption • Involves Objects and Events That Are “Set Apart” From Normal Activities, and Are Treated With Some Degree of Respect or Awe. • Involves Consumer Objects and Events That Are Ordinary, Everyday Objects and Events That Do Not Share The “Specialness” of Sacred Ones.

20. Marketers need to be aware of what is sacred – and perhaps taboo in advertising

21. The sacred made Profane

22. Symbols Generate ideas, emotions, thoughts Types of Symbols Numbers Colours Gestures Animals (animate objects) Inanimate objects

24. A Myth is a Story Containing Symbolic Elements That Express the Shared Emotions and Ideals Of a Culture. Mythic Characters and symbols are often used in advertising

25. Traditions What are traditions? • Unwritten rules of culture • Time-bound • Performed by most members of society for forgotten reasons • Remind people of their cultural kinship

26. Religious Rites of Passage Ritual Type Examples Baptism, Meditation, Mass Group Graduation, Marriage Festivals, Holidays Cultural Family Parades, Elections, Trials Civic Personal Business Negotiations Mealtimes, Birthdays Grooming, Household Types of Ritual Experience A stylized, repetitive pattern of behaviour

27. Cultural Artifacts • The material evidence of what a cultures does • What its people value • What attitudes prevail, how they conduct their lives • Usually embody the ideas and traditions of a society

28. What are some typically Canadian artifacts?

29. INNOVATION What is an Innovation? An idea, process, or invention that is new or different.

30. Continuous Innovation

31. Dynamically Continuous Innovation

32. Discontinuous Innovation

33. Diffusion of Innovation The process by which products move from initial introduction and acceptance to regular purchase and use. • Two related processes: • Adoption • Diffusion

34. Adoption Process • 5-step decision process: • Awareness • Interest • Evaluation • Trial • Adoption (rejection)

35. Adopter Categories

36. Product Characteristics That Influence Diffusion CHARACTERISTICS DEFINITION EXAMPLES Relative Advantage The degree to which potential consumers perceive a new product as superior to existing substitutes Air travel over train travel, cordless phones over corded telephones Compatibility The degree to which potential consumers feel a new product is consistent with their present needs, values, and practices Gillette MACH3 over disposable razors, digital telephone answering machines over machines using tape to make recordings Complexity The degree to which a new product is difficult to understand or use Products low in complexity include frozen TV dinners, electric shavers, instant puddings

37. CHARACTERISTICS DEFINITION EXAMPLES Trialability The degree to which a new product is capable of being tried on a limited basis Trial size jars and bottles of new products, free trials of software, free samples, cents-off coupons Observability The degree to which a product’s benefits or attributes can be observed, imagined, or described to potential customers Clothing, such as a new Tommy Hilfiger jacket, a car, wristwatches, eyeglasses

38. Product Placement

39. Product Placement The process of obtaining exposure for a product by arranging for it to be inserted into a movie, a television show, video game or some other medium.

40. 3 BASIC TYPES OF PRODUCT PLACEMENT Visual – occurs when a product, service or logo can simply be observed Spoken -- occurs when an actor or off-screen voice mentions a product, service, or corporation Usage -- occurs when an actor or actress actually handles or interacts with a product, service or corporation. Often includes both a visual and spoken element as well.

41. What are the Advantages of Product Placement? • Implied Endorsements --- often made by major actors or actresses which frequently do not appear in television commercials • Far Reach (Long Life & Global) • Low Cost • Low Clutter • High Profile - success of the product placement is thus tied to the success of the film. • Optimum Viewing Environment - better than TV • ACaptive Audience • Better Demographics • especially for TV • Certain stars can have stronger appeal to specific demographics