Cross-Cultural Variations in Consumer Behavior CHAPTER TWO Cross-Cultural Variations in Consumer Behavior Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

Cultural Factors Affect Consumer Behavior and Marketing Strategy 2-1 Language Demographics Consumer behavior Marketing strategy Values Nonverbal communications Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

Value Norms, Sanctions, and Consumption Patterns 2-2 Norms Specify ranges of appropriate behavior Consumption patterns Cultural values Sanctions Penalties for violating norms Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

Value Orientations Influence Behavior 2-3 Environment- oriented values Other- Self- Consumption Purchase Communications Society’s view of relationships between people with environment Objectives/ approaches to life society finds desirable Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

Cultural Values of Relevance to Consumer Behavior 2-4 Other-Oriented Values Individual/Collective. Are individual activity and initiative valued more highly than collective activity and conformity? Extended/Limited Family. To what extent does one have a life-long obligation to numerous family members? Diversity/Uniformity. Does the culture embrace variation in religious beliefs, ethnic backgrounds, political views, and so forth? Masculine/Feminine. To what extent does social power automatically go to males? Competitive/Cooperative. Does one obtain success by excelling over others or by cooperating with them? Youth/Age. Are wisdom and prestige assigned to the younger or older members of a culture? Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

Cultural Values of Relevance to Consumer Behavior 2-4 (II) Environment-Oriented Values Cleanliness. To what extent is cleanliness pursued beyond the minimum needed for health? Performance/Status. Is the culture’s reward system based on performance or on inherited factors such as family or class? Tradition/Change. Are existing patterns of behavior considered to be inherently superior to new patterns of behavior? Risk taking/Security. Are those who risk their established positions to overcome obstacles or achieve high goals admired more than those who do not? Problem-solving/Fatalistic. Are people encouraged to overcome all problems, or do they take a “what will be, will be” attitude? Nature. Is nature regarded as something to be admired or overcome? Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

Cultural Values of Relevance to Consumer Behavior 2-4 (III) Self-Oriented Values Active/Passive. Is a physically active approach to life valued more than a less active orientation? Material/Nonmaterial. How much importance is attached to the acquisition of material wealth? Hard work/Leisure. Is a person who works harder than economically necessary admired more than one who does not? Postponed gratification/Immediate gratification. Are people encouraged to “save for a rainy day” or to “live for today”? Sensual gratification/Abstinence. To what extent is it acceptable to enjoy sensual pleasures such as food, drink, and sex? Religious/Secular. To what extent are behaviors and attitudes based on rules specified by religious doctrine? Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

Factors Influencing Nonverbal Communications 2-5 Time Etiquette Space Nonverbal communications Things Symbols Agreements Friendship Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

Income Distribution Across Countries 2-6 Percent of Country’s Income Received by Population Segmentsa Percent of Population U.S. Brazil France Poland Israel Kenya Indonesia Thailand Japan Top 10% 25.0%* 51.3% 25.5% 21.6% 23.5% 45.4% 27.9% 35.3% 22.4% Next 10% 16.9 16.2 15.3 14.5 16.1 15.5 14.4 15.4 15.1 Next 20% 25.0 16.8 23.5 23.0 24.5 18.9 21.1 20.3 23.1 Next 20% 17.4 8.8 17.2 17.9 17.8 11.1 15.8 13.5 17.5 Next 20% 11.0 4.8 12.1 13.8 12.1 6.4 12.1 9.4 13.2 Lowest 20% 4.7 2.1 6.3 9.2 6.0 2.7 8.7 6.1 8.7 Per capita income (000)b 22.5 2.3 18.3 4.3 12.0 .4 .6 1.6 19.0 *Read as the top 10% receive 25% of the country’s income. a Source: R. Sookdeo, “The New Global Consumer,: Fortune, Autumn-Winter 1993, pp. 68-76. b In 1992 U.S. dollars. Source: World Fact Book 1992 (Washington D.C., Central Intelligence Agency, 1992).

How Households Allocate Their Income 2-7 Country Category U.S. Mexico Poland Iran Kenya Singapore Thailand India Food 10%* 35% 29% 37% 38% 19% 30% 52% Clothing 6 15 9 9 7 8 16 11 Housing, utilities 18 8 6 23 12 11 7 10 Medical care 14 5 6 6 3 7 5 3 Education 8 5 7 10 12 5 4 Transportation 14 12 8 6 8 13 13 7 Other* 30 25 35 14 22 30 24 13 Per capita income (000)b 22.5 3.2 4.3 1.5 .4 13.9 1.6 .4 *Includes appliances and other consumer durables. Source: R. Sookdeo, “The New Global Consumer,: Fortune, Autumn-Winter 1993, pp. 68-76. b In 1992 U.S. dollars. Source: World Fact Book 1992 (Washington D.C., Central Intelligence Agency, 1992).