Cross-Cultural Consumer Behavior: An International Perspective Consumer Behavior, Eighth Edition SCHIFFMAN & KANUK Chapter 14 Cross-Cultural Consumer Behavior: An International Perspective

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

Country of Origin Effects: Negative and Positive Many Chinese consumers consider Sony high-end and high-quality, but may refuse to buy due to animosity toward Japan High-animosity consumers own fewer Japanese products than low-animosity consumers

Cross-Cultural Consumer Analysis Research to determine the extent to which consumers of two or more nations are similar in relation to

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

Table 14.2 Some Comparisons Chinese Cultural Traits Centered on Confucian doctrine Submissive to authority American Cultural Traits Individual centered Emphasis on self-reliance Primary faith in rationalism

The Effect of Guo Qing Due to the one-child policy in China, families emphasize high quality purchases for their “ Children in China are given more than $3 billion collectively to spend as they wish and influence about 68% of parental spending.

Table 14.3 The Pace of Life SPEED IS RELATIVE (rank of 31 countries for overall pace of life and for three measures) Switzerland 3 1 WALKING 60 FEET OVERALL PACE 2 PUBLIC CLOCK POSTAL SERVICE Ireland 11 Germany 5 8 Japan 7 4 6 Italy 10 12 England 13 9 Sweden Austria 23 Netherlands 25 14 Hong Kong

Acculturation

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

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

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

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

Figure 14.3 Leading Wrist-Watch Manufacturer Uses Global Advertising Strategy

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

Table 14.6 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

Advertising to the World’s Consumers PER-CAPITA MEDIA SPENDING* 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

Table 14.8 Six Global Consumer Segments Strivers 23% Altruists 18% Devouts 22% Fun Seekers 12% Creatives 10% Intimates 15%

Marketing Mistakes: A Failure to Understand Differences Product Problems Promotional Problems Pricing and Distribution Problems

Consider Color Meanings of Blue Holland - warmth Iran - death Sweden - coldness India - purity Meanings of Yellow U.S. - warmth France - fidelity