© 2009 South-Western, a division of Cengage Learning. Chapter 8 Consumer Culture BABIN / HARRIS

© 2009 South-Western, a division of Cengage Learning.8-2 Learning Outcomes Understand how culture provides the true meaning of objects and activities. Use the key dimensions of core societal values to understand the concept of cultural distance. Define acculturation and enculturation. List fundamental elements of verbal and nonverbal communication. Discuss current emerging consumer markets and scan for opportunities. LO 1 LO 2 LO 3 LO 4 LO 5

© 2009 South-Western, a division of Cengage Learning. LO 1 Understand how culture provides the true meaning of objects and activities.

© 2009 South-Western, a division of Cengage Learning.8-4 What is Culture? Commonly held societal beliefs that define what is socially gratifying. LO 1

© 2009 South-Western, a division of Cengage Learning.8-5 The World Is Their Cup! How can Starbuck’s succeed in China?

© 2009 South-Western, a division of Cengage Learning.8-6 Exhibit 8.1 Culture, Meaning and Value LO 1

© 2009 South-Western, a division of Cengage Learning.8-7 Exhibit 8.2 Culture is Hierarchical LO 1

© 2009 South-Western, a division of Cengage Learning.8-8 Culture, Meaning, and Value LO 1 Gives meanings to objects Gives meanings to activities Facilitates communication

© 2009 South-Western, a division of Cengage Learning.8-9 Cultural Norms and Sanctions Cultural Norm Rule that specifies the appropriate behavior in a a given situation within a specific culture. Cultural Norm Rule that specifies the appropriate behavior in a a given situation within a specific culture. LO 1 Cultural Sanction Penalty associated with performing a non- gratifying or culturally inconsistent behavior. Cultural Sanction Penalty associated with performing a non- gratifying or culturally inconsistent behavior.

© 2009 South-Western, a division of Cengage Learning. LO 2 Use the key dimensions of core societal values to understand the concept of cultural distance.

© 2009 South-Western, a division of Cengage Learning.8-11 Exhibit 8.3 Inputs and Outputs of Culture LO 2

© 2009 South-Western, a division of Cengage Learning.8-12 Tradition Religious traditions shape consumption experiences.

© 2009 South-Western, a division of Cengage Learning.8-13 Dimensions of Cultural Values LO 2 Masculinity Uncertainty Avoidance Individualism Power Distance Long-Term Orientation

© 2009 South-Western, a division of Cengage Learning.8-14 Individualism A typical advertisement appealing to individualism as CSV.

© 2009 South-Western, a division of Cengage Learning.8-15 Exhibit 8.4 CSV Scoreboard LO 2

© 2009 South-Western, a division of Cengage Learning.8-16 Cultural Distance Represents how disparate one nation is from another in terms of their CSVs. Where, CD = Cultural Distance TCSV = Target Country Value Score on Dimension i BCSV = Baseline Country Value Score on Dimension i LO 2

© 2009 South-Western, a division of Cengage Learning.8-17 Exhibit 8.5: CSV Difference Scores Relative to American Consumers LO 2 Lower CD scores implies greater similarities.

© 2009 South-Western, a division of Cengage Learning. LO 3 Define acculturation and enculturation.

© 2009 South-Western, a division of Cengage Learning.8-19 How Is Culture Learned? LO 3 Enculturation Socialization Acculturation

© 2009 South-Western, a division of Cengage Learning.8-20 Exhibit 8.6: Factors Associated with Faster Acculturation LO 3

© 2009 South-Western, a division of Cengage Learning.8-21 Exhibit 8.7 Quartet of Institutions LO 3

© 2009 South-Western, a division of Cengage Learning.8-22 World Teen Culture Teens are similar around the world! LO 3

© 2009 South-Western, a division of Cengage Learning.8-23 Exhibit 8.8: Similarities and Differences Among Teen Consumers LO 3

© 2009 South-Western, a division of Cengage Learning.8-24 Modeling and Shaping Modeling A process of imitating others’ behavior. Modeling A process of imitating others’ behavior. LO 3 Shaping Consumers’ behaviors slowly adapt to a culture through a series of rewards and sanctions. Shaping Consumers’ behaviors slowly adapt to a culture through a series of rewards and sanctions.

© 2009 South-Western, a division of Cengage Learning.8-25 What Consumers Do Know Can Hurt Them? The Chinese government censors information its citizens receive through the Internet, which has impacted Google, Yahoo, and Microsoft.

© 2009 South-Western, a division of Cengage Learning. LO 4 List fundamental elements of verbal and nonverbal communication.

© 2009 South-Western, a division of Cengage Learning.8-27 Verbal and Nonverbal Communication Verbal Communication The transfer of information through either the literal spoken or written word. Verbal Communication The transfer of information through either the literal spoken or written word. LO 4 Nonverbal Communication Communication not involving the literal spoken or written word. Nonverbal Communication Communication not involving the literal spoken or written word.

© 2009 South-Western, a division of Cengage Learning.8-28 Exhibit 8.9 Problems With Verbal Communication LO 4

© 2009 South-Western, a division of Cengage Learning.8-29 Translational and Metric Equivalence Translational equivalence – exists when two phrases share the same precise meaning in two different cultures. Metric equivalence – the state in which consumers are shown to use numbers to represent quantities the same way across cultures. LO 4

© 2009 South-Western, a division of Cengage Learning.8-30 Verbal Communication What does this mean?

© 2009 South-Western, a division of Cengage Learning.8-31 Exhibit 8.10 Nonverbal Communication LO 4

© 2009 South-Western, a division of Cengage Learning.8-32 These Are a Few of Our Favorite Things Is this your favorite thing? Answers will differ around the world.

© 2009 South-Western, a division of Cengage Learning. LO 5 Discuss current emerging consumer markets and scan for opportunities.

© 2009 South-Western, a division of Cengage Learning.8-34 Emerging Cultures LO 5 BRIC Markets Brazil, Russia, India, and China BRIC Markets Brazil, Russia, India, and China Chindia Refers to the combined market and business potential of China and India. Chindia Refers to the combined market and business potential of China and India.

© 2009 South-Western, a division of Cengage Learning.8-35 Exhibit 8.11: Attractive Consumer Markets for Foreign Direct Investment (FDI) LO 5

© 2009 South-Western, a division of Cengage Learning.8-36 Exhibit 8.12: Purchasing Power Parity of Leading Consumer Nations LO 5

© 2009 South-Western, a division of Cengage Learning.8-37 Glocalization Represents the idea that marketing strategy may be global but the implementation of that strategy at the marketing tactics level should be local. Represents the idea that marketing strategy may be global but the implementation of that strategy at the marketing tactics level should be local. LO 5

© 2009 South-Western, a division of Cengage Learning.8-38 ESPN Has Glocalized! LO 5