Cross-cultural Influences In Consumer Behaviour

Cross-cultural influences in Consumer Behaviour Based on the text by Schiffman and Kanuk City University of New York

Lecture by S.Victor Anandkumar University of Mauritius

The imperative to be multinational Acquiring exposure to other cultures 

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Through consumers’ own initiatives Through movies, theatre and art Through new products/services Culture transfer through international marketing

Country of origin effects  Consumers use their knowledge of where products are made in the evaluation of their purchase options  Common associations      

France – perfumes, wine, clothing Italy – shoes, sports cars, furniture Japan – cameras and consumer electronics Germany – cars, tools and machinery India – spices, textiles, jewellery US – computers, entertainment, fast-food

A product recognition continuum for Global Stage 1: Local consumers have heard of a brand marketed elsewhere marketing but cannot get it at home; unavailable but may be desirable; e.g. 

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Havana cigars made in Cuba Stage 2: 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; e.g. French wine Stage 3: Local consumers accord imported brand ‘national status’; i.e. its national origin is known but does not affect their choice; e.g. Ford autos in southern Europe Stage 4: Brand owned by a foreign company is made (wholly or partly) 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’ (‘naturalized’); e.g. Coke in Japan, Sony in the US Stage 5: 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; e.g. Associated Press, Nescafe, Aspirin

Basic research issues in crosscultural  Differencesanalysis in language and meaning, e.g. restroom       

Difference in market segmentation opportunities, e.g. age while buying the first car Difference in consumption patters, e.g. mail catalogs Difference in the perceived benefits of products and services, e.g. yogurt Differences in the criteria for evaluating products and services, e.g. credit cards Difference in economic and social conditions and family structure, e.g. family soap Differences in marketing research and conditions, e.g. direct-mail lists Differences in marketing research possibilities, e.g. telephone surveys

Acculturation  

…process by which a narrow and culturally myopic view is overcome …a dual process for marketers.  First, the marketers must thoroughly orient themselves to the values, beliefs and customs of the new society to appropriately position and market their products 

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Gillette’s finding – 30% of European women ‘wet shave’ as compared to 75% of US women. In some European countries like Spain and Italy, women wanting to remove hair go to waxing salons, rather than shaving themselves with a razor. An appreciation of China’s ‘one child’ policy means that foreign businesses will understand that Chinese families are open to particularly high quality baby products for their single child

Second, to gain acceptance for a culturally new product in a foreign society, they must develop a strategy that encourages members of that society to modify or even break with their own traditions 

Tampax tampons greatest challenge is addressing certain religious and cultural mores that suggest that the use of this product results in a violation of the body

Segmenting the world market 

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Result of a study surveying 15000 adults in 14 countries on 5 continents to identify distinct global consumer segments that share attitudes, values and actual purchasing patterns The segments are:  Strivers – lead active lives, under stress, prefer products that are sources of instant gratification  Achievers – affluent, assertive and society’s opinion and style leaders; value status and quality in the brands they buy  Pressureds – mainly women, find it difficult to manage all the problems in their lives, have little time for enjoyment  Adapters – older consumers who live comfortably, recognize and respect new ideas without losing sight of their own values; willing to try new products that enrich their lives  Traditionals – embody the oldest values of their countries and cultures; resistant to change, content with familiar products

Cross-cultural psychographic segmentation: A New York Times  Strivers (23%) – Value wealth and status and products like survey 

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cellphones and computers; consider material things extremely important Devouts (22%) – Have more traditional values like faith, duty, respect for elders; least involved with the media and least likely to want western brands Altruists (18%) – Very outer focused – interested in social issues and causes; generally well educated, older and more female Intimates (15%) – these are ‘people people’ and focus on relationships close to home; very heavy users of media – gives them something to talk about to others Fun seekers (12%) – youngest group; value excitement and looking good; loves electronic media and is more global in its lifestyle Creatives (10%) – dedicated to technology, knowledge an learning; highest consumers of media especially books, magazines and newspapers

A framework for alternative global marketing strategies COMMUNICATION STRATEGY Product Standardized communication Vs. Communication

PRODUCT STRATEGY

Localized Communication

Standardized product

GLOBAL STRATEGY

MIXED STRATEGY

Localized product

MIXED STRATEGY

LOCAL STRATEGY

International Marketer’s dilemma: To standardize or to differentiate   

Think global; Act local Have a global face; Wear a local mask Standardization  

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Advantages Disadvantages

Differentiation  

Advantages Disadvantages

Cross-cultural Marketing Mix Product problems  Promotional problems  Pricing problems  Distribution problems 

Sequence of product differentiation factors MEASUREMENT UNITS

PACKAGE SIZES

LABELING PACKAGING AESTHETICS

CONSTITUENTS

PACKAGING PROTECTION

MANDATORY CHANGES

PRODUCT FEATURES

USAGE INSTRUCTIONS

BRAND NAME PARTLY OPTIONAL CHANGES

WHOLLY OPTIONAL CHANGES