14-1 Chapter 14 Consumer Behavior, Eighth Edition Consumer Behavior, Eighth Edition SCHIFFMAN & KANUK Cross-Cultural Consumer Behavior: An International Perspective

14-2 The Imperative To Be Multinational Global Trade Agreements –EU –NAFTA Acquiring Exposure to Other Cultures Country-of-origin Effects

14-3 The World’s Most Valuable Brands 1 Coca-Cola 2 Microsoft 3 IBM 4 GE 5 Nokia 6 Intel 7 Disney 8 Ford 9 McDonald’s 10 AT&T

14-4 Figure 14.1 The Importance of Country of Origin Effects

14-5 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

14-6 Issues in Cross-Cultural Consumer Analysis Similarities and Differences Among People Time Effects The Growing Global Middle Class Acculturation –Research Techniques

14-7 Table 14.2 Some Comparisons Chinese Cultural Traits Centered on Confucian doctrine Submissive to authority Ancestor worship Values a person’s duty to family and state American Cultural Traits Individual centered Emphasis on self- reliance Primary faith in rationalism Values individual personality

14-8 The Effect of Guo Qing Due to the one-child policy in China, families emphasize high quality purchases for their “little emperor.” Children in China are given more than $3 billion collectively to spend as they wish and influence about 68% of parental spending.

14-9 Table 14.3 The Pace of Life Switzerland31 WALKING 60 FEET OVERALL PACE 12 PUBLIC CLOCK POSTAL SERVICE Ireland12113 Germany5381 Japan7464 Italy England46139 Sweden13775 Austria23838 Netherlands Hong Kong SPEED IS RELATIVE (rank of 31 countries for overall pace of life and for three measures)

14-10 Acculturation The learning of a new “foreign” culture.

14-11 Table 14.4 Basic Research Issues in Cross-Cultural Analysis FACTORS Differences in language and meaning Differences in market segmentation opportunities 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.

14-12 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 and conditions 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.

14-13 Alternative Multinational Strategies: Global Versus Local Favoring a “World Brand” Adaptive Global Marketing Framework for Assessing Multinational Strategies –Global –Local –Mixed

14-14 Figure 14.3 Leading Wrist- Watch Manufacturer Uses Global Advertising Strategy

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14-16 WorldBrands Products that are manufactured, packaged, and positioned the same way regardless of the country in which they are sold.

14-17 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

14-18 Table 14.8 Six Global Consumer Segments Strivers 23% Altruists 18% Devouts 22% Fun Seekers 12% Creatives 10% Intimates 15%

14-19 Marketing Mistakes: A Failure to Understand Differences Product Problems Promotional Problems Pricing and Distribution Problems

14-20 Mistake Samples Snapple: Japanese consumers preferred clear, less sweet iced tea Oreos: Japanese consumers only wanted to eat the base - no cream. Ikea: American windows are taller than European windows.

14-21 Consider Color Meanings of Blue –Holland - warmth –Iran - death –Sweden - coldness –India - purity Meanings of Yellow –U.S. - warmth –France - fidelity