12 Cross-Culture Chapter Modular: Afjal Hossain Assistant Professor Department of Marketing Patuakhali Science and Technology University Schiffman G. Leon & Kanuk Lazar Leslie Consumer Behavior, 8th ed. Ch. 14, p. (471-492)

Learning Objectives: How cross-culture satisfies international market? How cross-culture is formed? How cross-culture is measured in consumer behavior/ selling? Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 02

Definition: Cross-Culture & Analysis The culture of two/ more nations. Cross-culture consumer analysis is the effort to determine to what extent the consumers of two/ more nations are similar or different. Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 03

Basic Research Issues in Cross-Cultural Analysis: Difference in language & meaning Difference in market segmentation opportunities Difference in consumption patterns Difference in the perceived benefits of products and services Difference in economic and social conditions and family structures Difference in marketing research and conditions Difference in marketing research possibilities Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 04

Objectives: Similarities and differences among people The greater the similarity between nations, the more feasible it is to use relatively similar marketing strategies in each nation. On the contrary, if the cultural beliefs, values & customs of specific target countries are found to differ widely, then a highly individualized marketing strategy is indicated for each country. Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 05

Objectives: Time Effects In USA, 80% of work time spent on task & 20% is used to social activities. In India/ Nepal, 50% of each. In Japan, social time is having tea with peers in the middle of the day. Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 06

Objectives: The growing global middle class Income equivalent to $5,000/yearly is considered a middle class people. Acculturation is needed Acculturation is the dual process: 1st marketer must thoroughly orient themselves to the values, beliefs & customs of the new society to approximately position and market their products. Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 07

Objectives: Acculturation is needed 2nd 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. But in Saudi Arabia, It is illegal to stop people on the streets because most gatherings of 4/ more people are outlawed. Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 08

Objectives: Applying research techniques Language and/ word usages often differ from nation to nation. Another issue is the scales of measurement. In USA, 5/ 7 point scale is adequate but some other countries 10/ 20 point scale are used. Research facilities i.e. telephone interviewing are not available in some countries. Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 09

Importance of Cross-Culture: To be multinational Now marketing of a product is not limited to home country, it goes to other countries for their future growth. Acquiring exposure to other countries Consumers obtain a ‘taste’ of different cultures from contact with foreign movies, theater, art and artifacts, through travel, living and working in foreign countries or even by immigration. Country of origin effects Many consumers associate France with wine, fashon clothing and perfume, whereas Italy with pasta, furniture, shoes & sports. Japan with camera and China with consumer electronics. Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 10

Importance of Cross-Culture: Examples: NAFTA (North American Free Trade Agreement) consisting of USA, Canada & Mexico provides free market access to these countries people. ASEAN (Association of South-East Asian Nations) consisting of Indonesia, Singapore, Thailand, The Philippines, Malaysia, Brunei and Vietnam also provides free market access to these nations. Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 11

Alternative Multinational Strategies: Global vs Local segment whether by ‘shared needs and values’ or by ‘national borders’ Favoring a world brand world brand products are manufactured, packaged & positioned in exactly the same way for each country they are sold. Ex: Pantene & Olay oil are the 2 major world brand of Procter & Gamble. Adaptive Global Marketing Ronald McDonald has been renamed Donald McDonald in Japan because The Japanese language does not contain the letter ‘R’. Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 12

Framework for assessing multinational strategies: Product Strategy Communication Strategy Standardized Communication Localized Communication Standardized product Global Strategy: Uniform product/ Uniform message Mixed Strategy: Uniformed product/ Customized message Localized product Customized product/ Local Strategy: Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 13

Framework for assessing multinational strategies: When looking for success in a foreign market, it has been suggested that a company shuld remember 3 P’s: Product Place People Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 14

Degree of fit between marketing strategies and 3 P’s: Specific Elements Standardization Localization Product Technology Culture bound Reputation Product perception High Low Sterling Poor or unknown Place Economy Partners Competition Prosperous Few Struggling Plentiful Intense People Tastes Sophistication Segments Classification Little preference Industrial/ Consumer durables High preference Many Consumer nondurables Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 15

Cross-Cultural Psychographic Segmentation: There are 6 psychographic segmentation variables are: Segment Name Descriptions Strivers They consider material things extremely important i.e. value wealth, status, ambition, and power. Ex: Computers Devout Have more traditional values like faith, duty, obedience and respect. Least involved in media/ western brands. Altruists Interested in social issues and causes. Generally well educated & older (median age 44) i.e. Russia & Latin America Intimates They are focused on relationship close to home i.e. spouses, family or friends. Heavy users of media/ talking with others. Fun Seekers Youngest group. They value adventure, excitement, pleasure etc. They are focused on electric media (music). Creative Dedicated to technology, knowledge & learning from books, magazines & newspapers. Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 16

Marketing Mistakes: Product Problems Different country has different choices. Ex: Japan consumers preferred clearer, les sweet iced tea. The same color often has different meanings in different cultures. Ex: Blue – Holland (warmth); Iran (death); India (purity) Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 17

Marketing Mistakes: Promotional problems Promotional message must be consistent with the language and customs of the particular target society. The word ‘clock’ in Chinese sounds like the word ‘death’ Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 18

Marketing Mistakes: Pricing & Distribution problems Japan products will be value less if there are not sufficient middle men because to reach the products to the consumer they use a lot of middle men. But USA just opposing Japan. Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 19