1. page 1 Shopping Behavior Module David F. Miller Center for Retailing Education and Research 1. Culture Differences

2. page 2 Shopping Behavior Module David F. Miller Center for Retailing Education and Research Dimensions of Cultural China Compared to U.S.

3. page 3 Shopping Behavior Module David F. Miller Center for Retailing Education and Research Hofstede’s Cultural Dimensions  Individualism-collectivism  Masculinity-femininity  Power distance  Uncertainty avoidance

4. page 4 Shopping Behavior Module David F. Miller Center for Retailing Education and Research Individualism-Collectivism Individualism  High value on autonomy  Individual achievement  Privacy Collectivism  High value on group  Family, clan, organization  Loyalty  Devotion  Conformity

5. page 5 Shopping Behavior Module David F. Miller Center for Retailing Education and Research  Success  Assertive acquisition of money/power  achievement  Equality of genders  Caring for disadvantaged  Harmony Achievement Relationship Masculinity - Femininity

6. page 6 Shopping Behavior Module David F. Miller Center for Retailing Education and Research Power Distance High-Power Distance  Accept position  Follow authority  Concentrated & centralized authority  Hierarchical Low-Power Distance  Avoid concentration of authority  Decentralized  Fewer layers of management Acceptance of Difference in Power

7. page 7 Shopping Behavior Module David F. Miller Center for Retailing Education and Research Low Uncertainty Avoidance  Embrace unpredictable  Less adherence to rules, procedures, or hierarchies  Risk taking desirable High Uncertainty Avoidance  Threatened by ambiguity  Need stable & predictable workplace  Reliance on rules Uncertainty Avoidance Reaction of Ambiguity

8. page 8 Shopping Behavior Module David F. Miller Center for Retailing Education and Research Cultural Differences Individualistic (IDV) vr. Collectivist – look out for self, self reliant, loose bonds with others Power distance (PDI) – acceptance of power and wealth inequality Long-Term Orientation (LTD) – importance of tradition, protecting face

9. page 9 Shopping Behavior Module David F. Miller Center for Retailing Education and Research What effect do these cultural differences have on retailing?  Shopping behavior  Store management

10. page 10 Shopping Behavior Module David F. Miller Center for Retailing Education and Research Shopping Behavior in China

11. page 11 Shopping Behavior Module David F. Miller Center for Retailing Education and Research Shopping During Mao Era Ration coupons were required to buy cloth, but a selection of fabric drew customers to Beijing Department Store on Wangfujing Street in 1983.

12. page 12 Shopping Behavior Module David F. Miller Center for Retailing Education and Research Shopping as Leisure

13. page 13 Shopping Behavior Module David F. Miller Center for Retailing Education and Research Brand Conception

14. page 14 Shopping Behavior Module David F. Miller Center for Retailing Education and Research Local vs. Foreign Brands

15. page 15 Shopping Behavior Module David F. Miller Center for Retailing Education and Research Young Consumers Preferences

16. page 16 Shopping Behavior Module David F. Miller Center for Retailing Education and Research Shifts in Behavior  Brand to Value  Collect information from internet and other sources  Shift from traditional channels-Dept. Stores and brand exclusive stores to hypermarkets, supermarkets, Internet  Increasing Consumer Sophistication  Demand products with more function, better value, better price, variety  Consumers gain more access to product information— brands, products, prices and channels

17. page 17 Shopping Behavior Module David F. Miller Center for Retailing Education and Research Shift in Consumption