Cross-Cultural Consumer Behaviour-An International Perspective

Leading Wrist-Watch
Manufacturer

Uses Global Advertising Strategy

 Many Japanese Women feel guilty preparing frozen vegetables in a microwave rather than preparing fresh vegetables. No smear lipstick did not exist in Japan until a few years but it now has sales of $45 million a month. Superstition can affect behaviour in a culture. In efforts to tap into the growing market of Indian Americans, Managing Director of Mutual of New York Life Insurance is visiting Hindu Temples.

 American Airlines introduced its new leather first class seats in Mexico with the theme Fly in Leather which when translated read fly naked.

See the colour combinations!!!!!!

Consumer Insight
The coffee bar concept, coupled with high-quality, strongly flavored coffee, obviously transferred successfully from the Italian to the American culture. However, America has traditionally embraced coffee. Will Starbucks work in countries where tea is the dominant drink? What values will affect Starbucks success in China? What ethical issues should Starbucks consider as it enters developing countries?

Introduction to Cross Culture

numerous larger differences exist between citizens of different nations having different cultures, values, beliefs, and languages. If international marketers should understand the relevant similarities and differences that exist between the peoples of the countries they decide to target.

Introduction to Cross Culture

countries of origin of the brands (Country of design, Country of assembly, country of parts) The country of origin effects influence how consumers rate quality, and sometimes, which brands they will ultimately select. Many Chinese consumers consider Sony high-end and high-quality, but may refuse to buy due to animosity toward Japan. Highanimosity consumers own fewer Japanese products than low-animosity consumers

The Imperative To Be Multinational Today the issue is generally not whether to market a brand in other countries but rather how to do it (e.g., the same product, the same global advertising campaign, or tailored products and localized ads for each country). This challenge has been given special meaning by the efforts of the European Union (EU) to forming a single market.
It is unclear whether this diverse market will be transformed into a single market of homogeneous Euro-consumers with the same or very similar wants and needs. Many people hope that the introduction of the euro as a common currency among a number of EU members will help shape Europe into a huge, powerful, single market.

The Imperative To Be Multinational

The North American Free Trade Agreement (NAFTA), which currently consists of the United States, Canada, and Mexico, provides free-market access to 400 million consumers. The emerging Association of Southeast Asian Nations (ASEAN), consisting of Indonesia, Singapore, Thailand, the Philippines, Malaysia, Brunei, and Vietnam, is another important economic alliance that offers marketers new global markets. The members of this group have formed the ASEAN Free Trade Area (AFTA) to promote regional trade. Many firms are developing strategies to take advantage of these and other emerging economic opportunities. Firms are selling their products worldwide for a variety of reasons.
Overseas markets represent the single most important opportunity for future growth as home markets reach maturity. Consumers all over the world are increasingly eager to try foreign products that are popular in different and far-off places.

Acquiring Exposure to Other Cultures

How consumers in one culture secure exposure to the goods of other people living in other cultures is an important part of consumer behavior. A portion of consumers exposure to different cultures tends to come about through consumers own initiativestheir travel, their living and working in foreign countries, or even their immigration to a different country. Consumers often obtain a taste of different cultures from contact with foreign movies, theater, art and artifact, and, most certainly, exposure to unfamiliar and different products. Within this context, international marketing provides a form of culture transfer.

Cross-Cultural Consumer Analysis

Cross-cultural consumer analysis is defined as the effort to determine to what extent the consumers of two or more nations are similar or different. In a broader context it might include a comparison of subcultural groups within a single country. Issues in Cross-Cultural Consumer Analysis Similarities and Differences among People Time Effects The Growing Global Middle Class Acculturation

Cross-Cultural Consumer Analysis

Time Effects The pace of life differs from one nation to another.

How time is spent on the job is also an issue that varies from country to country.

The average childrens birthday party in the United States lasts approximately two hours. Brazilians are willing to wait a little more than two hours for a late arriver to show up at a birthday party.
In the United States., about 80 percent of work time is spent on the task, and perhaps 20 percent is used for social activities. But in countries like India and Nepal, the balance is closer to 50 percent on each; and in Japan, social time, such as having tea with peers in the middle of the day, is considered to be a part of work.

Research on pace of life in 31 countries (basing overall pace on how long pedestrians take to walk 60 feet, the minutes it takes a postal clerk to complete a stamp-purchase transaction, and the accuracy of public clocks) reveals substantial cross-cultural differences. Switzerland has the fastest pace of life; Mexico has the slowest pace of life.

Cross-Cultural Consumer Analysis

The Growing Global Middle Class The growing middle class in developing countries is a phenomenon that is very attractive to global marketers. The news media has given considerable coverage to the idea that the rapidly expanding middle class in countries of Asia, South America, and Eastern Europe is based on the reality that although per capita income may be low, there is nevertheless considerable buying power in a country like China, where $1,500 of income is largely discretionary income. Although a growing middle class may provide a market for products like Big Macs and fries, it should always be remembered that the same product might have different meanings in different countries. A U.S. consumer wants his or her fast food to be fast, a Korean consumer is more likely to view a meal as a social or family-related experience. Regulations in different countries may preclude the use of some of the marketing practices that a firm employs in the United States.

Cross-Cultural Consumer Analysis

Acculturation (The learning of a new foreign culture) Is a Needed Marketing Viewpoint Many marketers make a strategic error when contemplating an international expansion, thinking that if domestic consumers like it, international consumers will like it. Marketers need to go through an acculturation process, learning everything that is relevant to their product usage in the foreign countries in which they plan to operate.

Cross-cultural acculturation is a dual process for marketers.

First, marketers must thoroughly orient themselves to the values, beliefs, and customs of the new society. Second, marketers must persuade the members of that society to break with their own traditions.

A social marketing effort designed to encourage consumers in developing nations to secure polio vaccinations for their children would require a two-step acculturation process.

First, the marketer must obtain an in-depth picture of a societys present attitudes and customs with regard to preventive medicine and related concepts. Then, the marketer must devise promotional strategies that will convince the members of a target market to have their children vaccinated, even if doing so requires a change in current attitudes.

Table: Basic Research Issues in Cross-Cultural Analysis

FACTORS Differences in language and meaning

EXAMPLES Words or concepts may not mean the same in two different countries.

Differences in market segmentation opportunities

The income, social class, age, and sex of target customers may differ dramatically in two different countries.

Differences in consumption patterns

Two countries may differ substantially in the level of consumption or use of products or services.

Differences in the perceived benefits of products and services

Two nations may use or consume the same product in very different ways.

Table: continued
FACTORS Differences in the criteria for evaluating products and services EXAMPLES The benefits sought from a service may differ from country to country.

Differences in economic and social conditions and family structure

The style of family decision making may vary significantly from country to country.

Differences in marketing research and conditions

The types and quality of retail outlets and direct-mail lists may vary greatly among countries.

Differences in marketing research possibilities

The availability of professional consumer researchers may vary considerably from country to country.

Consider Color

Meanings of Blue Holland warmth Iran - death Sweden coldness India - purity

Meanings of Yellow U.S. - warmth France - fidelity

Applying Research Techniques

Although domestic research methods are useful in foreign countries, language and word usage often differ from nation to nation causing some difficulties. To avoid research measurement problems consumer researchers should familiarize themselves with the research services in the countries where they are evaluating markets.

Alternative Multinational Strategies: Global Versus Local

Marketers are arguing for one of two approaches.
One, the world markets are becoming more similar, and therefore standardized marketing strategies is appropriate. Or two, that the variations among nations are too great for a standardized marketing strategy.

The challenge is deciding whether to use shared needs and values as a segmentation strategy or to use national borders as a segmentation strategy.

Marketing Mistakes: A Failure to Understand Differences

In most cases, the gamble for marketers in international marketing is not knowing whether the product, the promotional appeal, the pricing policy, or the retail channels that are effective in one country will work in other countries and in trying to determine what specific changes should be made to ensure acceptance in each foreign market. Product Problems: International marketers frequently neglect to modify their products to meet local customs and tastes. American marketers, selling food products in Japan, frequently learn the hard way (through poor sales performance) that they must alter traditional product characteristics. To avoid problems, marketers must ascertain in advance whether the physical characteristics of their products will be acceptable to the new market. Color is also a critical variable in international marketing, because the same color often has different meanings in different cultures. 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.

Marketing Mistakes: A Failure to Understand Differences

Promotional Problems: When communicating with consumers in different parts of the world, the promotional message must be consistent with the language and customs of the particular target society. The Seven-Up, Inc.s highly successful Uncola theme, developed for the U. S. market, was considered inappropriate for many foreign markets because it did not translate well into other languages. Product names and promotional phrases can also cause considerable problems for international marketers. The word clock in Chinese sounds like the word death.

Marketing Mistakes: A Failure to Understand Differences

Pricing and Distribution Problems: International marketers must adjust their pricing and distribution policies to meet local economic conditions and customs. It should also be remembered that what Americans view as low-cost might not be viewed similarly in other countries. U.S. fast food franchises that operate in Mexico, such as Burger King, Wendys, and McDonalds, are all considered upscale to the Mexican consumer. Japans traditional distribution system differs from the United States in that a close, complex relationship exists among the larger Japanese manufacturers and their distributors and retailers. Marketers must vary their distribution channels by nation. 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.