Chapter 02 - Cross-Cultural Variations in Consumer Behavior

Chapter 2
Cross-Cultural Variations
in Consumer Behavior
LEARNING OBJECTIVES
1) Understand what culture is, and why and how it is influential in terms of consumer behavior
2) Understand what cultural values are, and how they act to influence behavior
!) Understand what is meant by cross-cultural variations in nonverbal communication, and why this
understandin" is important to mar#eters
$) Be able to develop a cross-cultural approach to the desi"n of mar#etin" strate"y
S!!AR"
Culture is defined as the comple% whole that includes #nowled"e, beliefs, art, law, morals, customs, and
any other capabilities ac&uired by humans as members of society 't includes almost everythin" that
influences an individual(s thou"ht processes and behaviors
Culture operates primarily by settin" boundaries for individual behavior and by influencin" the
functionin" of such institutions as the family and mass media )he boundaries or norms are derived
from cultural values Values are widely held beliefs that affirm what is desirable
Cultural values are classified into three cate"ories* other, environment, and self Other-oriented values
reflect a society(s view of the appropriate relationships between individuals and "roups within that
society +elevant values of this nature include individual/collective, youth/age, extended/limited
family, masculine/feminine, competitive/cooperative, and diversity/uniformity Environment-oriented
values prescribe a society(s relationships with its economic, technical, and physical environments
,%amples of environment values are cleanliness, performance/status, tradition/change, risk
taking/security, problem solving/fatalistic, and nature Self-oriented values reflect the ob-ectives and
approaches to life that individual members of society find desirable )hese include active/passive,
sensual gratification/abstinence, material/nonmaterial, hard work/leisure, postponed
gratification/immediate gratification, and religious/secular
.ifferences in verbal communication systems are immediately obvious across cultures and must be
ta#en into account by mar#eters wishin" to do business in those cultures /robably more important,
however, and certainly more difficult to reco"ni0e are nonverbal communication systems 1a-or
e%amples of nonverbal communication variables that affect mar#eters are time, space, symbols,
relationships, agreements, things, and etiuette
)here is evidence that urban youth around the world share at least some aspects of a common culture
)his is driven by worldwide mass media and common music and sports stars !emographics describe a
population in terms of its si0e, structure, and distribution .emo"raphics differ widely across cultures
and influence cultural values 2and are influenced by them) as well as consumption patterns
2-1
Chapter 02 - Cross-Cultural Variations in Consumer Behavior
3even &uestions are relevant for developin" a cross-cultural mar#etin" strate"y* 21) 's the "eo"raphic
area homo"eneous or hetero"eneous with respect to culture4 22) 5hat needs can this product fill in this
culture4 2!) Can enou"h people afford the product4 2$) 5hat values are relevant to the purchase and
use of the product4 26) 5hat are the distribution, political, and le"al structures for the product4 27)
8ow can we communicate about the product4 29) 5hat are the ethical implications of mar#etin" this
product in this country4
LECTRE TI#S AN$ AI$S
1) Culture is a difficult concept for students to fully understand thou"h they en-oy readin" about it 't
is difficult for them to see what culture is and what its influences are because they are typically
unaware of their own culture 't is often best to start the culture lecture with an e%ample of some
completely different behavior in another culture 2e", the necessity of women bein" veiled in strict
1uslim cultures) to point up how culture :tells; us what to do 8owever, it is important to move
beyond amusin" e%amples of cultural snafus and into an understandin" of how culture functions
2) 3tudents from other cultures should be encoura"ed to describe the differences between their home
cultures and the one they are in now .omestic students who have lived in another culture should do
li#ewise
!) )his is an e%cellent time to use a "uest spea#er < professor from cultural anthropolo"y or
sociolo"y, an e%ecutive with substantial international e%perience, or anyone who has lived at least
one year in a different culture can provide a valuable learnin" e%perience
$) 3tudent 8andout 1* "#$%E&'() C*#SS'C = 1'3),+ .>?U) '? @</<?
6) 3tudent 8andout 2* )+<?3A<)'>? /+>BA,13 '? '?),+?<)'>?<A 1<+B,)'?C
7) 3tudent 8andout !* D,.,E CU3)>1'F,3 D>+ )8, A<)'? <1,+'C<? 1<+B,)
9) 3tudent 8andout $* CUA)U+<A V<+'<)'>?3 '? 8>A'.<G )+<.')'>?3
H) <ssi"n andIor prepare one or more of the CB /+,33 8'C8A'C8)3 articles for class discussion
2-2
Chapter 02 - Cross-Cultural Variations in Consumer Behavior
Stu%ent &an%out '( MARKETING CLASSIC !ISTER $ONT IN JA#AN
Bo-i Chiba of 1ister .onut describes how that firm succeeded in @apan*
5hen we first introduced donuts in @apan, our consumer tests indicated that most
@apanese did not care for cinnamon 3o ' thou"ht 'Jd reduce the content
dramatically at first But what is a donut without cinnamon4 >ver the ne%t five to
si% years, we have "radually increased our donutsJ cinnamon content at a pace our
customers could "et used to )oday, our donuts contain the same amount of
cinnamon as in the Unites 3tates 't has ta#en a lon" time, but as far as the taste
buds are concerned, we have converted the @apanese into li#in" cinnamon over
the past decade
1ister .onutJs success is the result of a series of such minute, but sensible,
modifications )heir coffee cup is smaller and li"hter, to fit the fin"er si0e of the
avera"e @apanese consumer ,ven their donuts are a little smaller than those in
the United 3tates
3ource* B >hmae, +,ow -.S. "arketers Can Succeed in /apan,0 <dvertisin" <"e , 1ay 7,
1KH6, p 6H.
2-!
Chapter 02 - Cross-Cultural Variations in Consumer Behavior
Stu%ent &an%out 2( TRANSLATION #ROBLE!S IN INTERNATIONAL
!AR)ETING
ChevroletJs ?ova is an inappropriate brand name in 3panish-spea#in" countries
where :no va; means :it doesnJt "o;
Chrysler couldnJt use its UB theme :the >ri"inal; in Cermany because :.ie
>ri"inal; in Cerman implies peculiar
<n <merican manufacturer of heavy-duty wrappin" paper inadvertently translated
its brand name into @apanese as :8e who envelops himself in 10 tons of rice
paper;
<merican 1otors :1atador; translated as :#iller; in /uerto +ico - a country with
a hi"h traffic fatality rate
@ohnson 5a% introduced :/led"e; in the ?etherlands as :/li0; /li0 is
pronounced very much li#e :piss; in .utch 3ince most .utch also spea#
,n"lish, this caused serious problems
< @apanese firm introduced a @apanese whis#ey named :Blac# ?i##a; into the
U3 mar#et
Vic#s is the most crude slan" term for se%ual intercourse in Cerman )he
company "oes by 5ic#s in Cermany
)he .airy <ssociationJs LCot 1il#4L headin" was translated as L<re you
lactatin"4L in 3panish
2-$
Chapter 02 - Cross-Cultural Variations in Consumer Behavior
Stu%ent &an%out *( +E$E, CSTO!I-ES +OR T&E LATIN A!ERICAN !AR)ET
)he followin" describes how Ded,% used a customi0ed strate"y to successfully
tar"et the Aatin <merican mar#et*
'n the late 1KK0(s, Ded,% was not nearly as well #nown in Aatin <merica
and the Caribbean as it was in other parts of the world )herefore, it
decided to launch an ad campai"n to build brand awareness amon" small
and medium-si0ed shippers )he ad a"ency was challen"ed to create a
commercial that would wor# across this broad re"ion with its differin"
cultures and lan"ua"es 'n addition, it would need to be presented in
,n"lish and /ortu"uese in addition to 3panish without loo#in" :dubbed,;
since shootin" multiple commercials would be too e%pensive
)he !0-second commercial showed a youn" e&uipment mana"er for a
soccer team, the dominant sport in the re"ion, worried about the delivery of
Mve bo%es of uniforms he had shipped to 1adrid for a ma-or match <n
older man assures him that all will be Mne as lon" as he had shipped them
via Ded,%, which he had not )he ne%t scene is a soccer Meld where the
opponents are about to attempt a penalty #ic# <s the camera reveals the
defenders, the audience sees that they are defendin" the "oal without their
uniforms or any other clothin" )he ta"line for the ad is* :Aet Ded,% ta#e
the load off your shoulders;
)wo versions of the last scene were shot, the nude version and a version
with the men in their underwear )he underwear version was run in 1e%ico
due to local restrictions on nudity in prime time )he theme 2soccer), which
resonates in most Aatin <merican mar#ets, alon" with a realistic situation
and a humorous endin" made this commercial memorable and successful
Dor e%ample, awareness went up between 9 and 19 percent dependin" on
the specific mar#et
3ource* / A <ndruss, :Ded,% Bic#s Up Brand,; "arketing (ews, @uly !0, 2001, pp
$=6
2-6
Chapter 02 - Cross-Cultural Variations in Consumer Behavior
Stu%ent &an%out .( CLTRAL VARIATIONS IN &OLI$A" TRA$ITIONS
Various holiday traditions "et translated differently from country to country
Companies must understand cultural differences related to the celebration of such
holidays when mar#etin" across country
Dor e%ample, 8alloween ori"inated in 'reland, Britain, and northwest Drance
>ver time, its celebration became limited to the United 3tates, Canada, and
'reland ?ow, however, it has "one "lobal*
)he <bominable Ciant 1an ,atin" Fombie )ea /arty is the theme for a
costume bash at a 3in"apore ni"htclub
@apan held a 8ello 8alloween /ump#in /arade in )o#yo
'n /aris, shops decorate their windows with "oblins, spider webs, and
s#eletonsN pump#ins are on sale at open-air mar#etsN ba#eries produce
decorated 8alloween ca#esN 1c.onald(s "ives out mas#s with #ids(
mealsN and some children "o tric#-or-treatin"
5hen such holidays do not replace local traditions and are adapted to the local
culture, they can enrich the lives of the populations that adopt them 8owever,
such imports can also be disruptive or controversial Dor e%ample, <merican-style
celebrations of Valentine(s .ay are spreadin" throu"hout the worldN but in
countries such as 'ndia, they have been met with protests 8indu and 'ndian
beliefs "enerally restrict public displays of affection and many Mnd Valentine
cards that show youn" couples embracin" to be offensive
3ource* 3 Cut#in, :3poo#y Dun Creepin" around Clobe,; $egister-)uard, >ctober 2K, 2000,
p 17<
CB #RESS &IG&LIG&TS( IN-CLASS $ISCSSION ARTICLES
<rticle 1
1 Bush, :3tate Darm Blasts A/C< ,n"lish /roficiency /olicy,; #dvertising #ge, 3eptember 2, 200H
Highlights: )he uproar caused by the Aadies /rofessional Colf <ssociation 2A/C<) ,n"lish lan"ua"e
policy )he policy 2bein" revised) would suspend players who could not spea# ,n"lish well enou"h to
be understood at U3 events )he U3-based A/C< operates worldwide and 26 percent of its players
come from outside the U3 )he A/C< defended its policy sayin"*
2-7
Chapter 02 - Cross-Cultural Variations in Consumer Behavior
't is imperative for the future success of the A/C< as well as the success of each A/C< player
that our members effectively communicate in ,n"lish at tournaments inside the United 3tates
with those who provide for the e%istence of the tournaments and the opportunities for
professional "olfers to ma#e a livin" doin" what they love
3tate Darm, a ma-or A/C< sponsor who ob-ected to the policy stated*
)he fact that they are callin" it a policy is a problem >fferin" and encoura"in" players to improve
their ,n"lish so they help themselves and the lea"ue be more media-friendly is "reat But when you
ma#e it a policy and threaten people it turns the whole thin" on its head
Use in Discussion: Can underscore need for cultural sensitivity when dealin" "lobally Can as#
students to create alternative plans that would achieve the desired "oal 2lan"ua"e proficiency) but
create less bac#lash A/C< response over time can also be trac#ed and discussed
<rticle 2
A 5ent0 and , 8all, :< O3ea( of ?udity in Vaseline 3pots,; #dvertising #ge, Debruary 1K, 2009, p 71
Highlights: 8ow Vaseline is customi0in" its ads around the world )he campai"n in &uestion has
close-ups of s#in as well as distant shots of unclothed people actin" out the role of the body(s s#in
cells as they re-uvenate and heal )he ad ran in UB but wasn(t allowed to air in U3 due to
stricter laws >ne e%ec notes, :5e loo# for cultural and consumer tailorin", and also re"ulatory;
Use in Discussion: Can be used to underscore different value systems across cultures <lso can relate
to issues of standardi0ation versus customi0ation = a new version is bein" created for the U3 with
the "oal bein" standardi0ation of the #ey theme 2Vaseline(s role in s#in health) but customi0ation to
local culture, values, and laws
<rticle !
D Fa#aria, :'ndia +isin",; (ewsweek, 1arch 7, 2007, p !6-$2
Highlights: )he "rowth and evolution of 'ndia 3ome interestin" facts* e%pected ran# in world
economy in 20$0 is P!N lar"est movie and )V audiences in the worldN number of shoppin" centers
increased from ! 22001) to !$6 22009 e%pected)N retail sales risin" at 2HQ per year with lu%ury
brands a part of the mi% <lso chan"in", traditional cultural values Dor e%ample, call centers
ma#e youn" men and women wor# to"ether at ni"ht
Use in Discussion: < host of interestin" information that points to the stron" role of 'ndia in the world
economy, the chan"es that economic development is havin" on traditional values, etc
2-9
Chapter 02 - Cross-Cultural Variations in Consumer Behavior
INTERNET E,ERCISES
B, 3U+, )> C8,CB )8,3, 3'),3 B,D>+, <33'C?'?C )8,3, /+>BA,13 5,B 3'),3
C<? <?. .> C8<?C,, 3UC8 )8<) 3>1, 3'),3 1<G ?> A>?C,+ ,E'3) >+ C>?)<'?
)8, .<)< ?,,.,. )> <?35,+ )8, RU,3)'>?
1) Visit the 1ichi"an 3tate University international business resources 5eb site
2www"lobaled"emsueduIinde%asp) 5hich of the resources listed is most useful for the
followin" 2hint* the "lobal resources section is a "ood place to start)4
a) 5orldwide consumer data
b) .ata on consumer mar#ets in China
c) .ata on consumer mar#ets in Bra0il
d) .ata on industrial mar#ets in Canada
3tudents will find this site to be fascinatin" and useful Clobal,d"e
)1
is a web portal for
international business professionals 't provides the followin" information and lin#a"es* )lobal
$esources - more than 6,000 online resources 2under resource des#)N Country 'nsights =
information about all countries by re"ionN (ews 1 2iews =re"ardin" the latest international business
issuesN #cademic = research and teachin" resourcesN and !iagnostic &ools = decision tools for
mana"ers 8owever, "ood, country-specific data for a specific product cate"ory is often
unavailable or can be found only after a ri"orous search 3ometimes, news or chat "roups can
provide help
2) Usin" the 1ichi"an 3tate University site described in ,%cerise 1 above, select and describe one of
the sources listed ,valuate its usefulness for understandin" international mar#ets and other
cultures
3tudents can drill down in numerous areas includin" )lobal $esources and Country 'nsights where
Clobal,d"e
)1
provides lin#s to various useful information sources
!) Usin" the 'nternet, prepare a brief report on the followin" as a mar#et for automobiles /rovide
addresses for all 5eb sites used
a) 'ndia
b) United Bin"dom
c) Ratar
d) China
)he 13U site 2see Ruestion 1) is a "reat place to be"in <nother "reat source for country-specific
data is the 5orld Dact Boo# 2wwwcia"ovIlibraryIpublicationsIthe-world-factboo#I)
2-H
Chapter 02 - Cross-Cultural Variations in Consumer Behavior
$) /repare a report that describes how useful, if at all, the information available at the 5orld Ban#
5eb site 2wwwworldban#or") is in terms of helpin" you understand the followin" as a mar#et for
cell phones*
a) United Bin"dom
b) 3outh Borea
c) <ustralia
d) <r"entina
)his site 2and most others) will provide useful demo"raphic data but will rarely have data on
product consumption at an appropriate level 'nterestin"ly, cell 2mobile) phones fall under
infrastructure and communications which tend to be trac#ed to a "reater e%tent than other specific
product cate"ories such as automobiles and refri"erators )his e%ercise should help ma#e clear the
necessary but insufficient nature of demo"raphic data 'nformation on cultural values, eti&uette and
so forth are needed and are rarely available in secondary data
6) Visit the C'< site 2https*IIwwwcia"ovIlibraryIpublicationsIthe-world-factboo#) ,valuate the
usefulness of this site for international mar#eters
)his site has very useful economic and demo"raphic data on more than 260 countries and other
entities Ai#e most of the other demo"raphic sites, it is limited in the level of detail it provides on
specific mar#et se"ments 'ts international focus ma#es this resource particularly useful in the
development of multinational mar#etin" strate"ies

34 Visit the Bwintessential 5eb site 2www.kwintessential.co.uk) Clic# on the :Cross Cultural
Rui00es; /ic# several topicsIcountries and ta#e a &ui0 /repare a report on what you learned
)his can be a "reat eye opener Gou mi"ht as# different "roups of students to choose different
countries and to report their findin"s to the class 't becomes &uic#ly apparent how diverse various
countries are and the e%tent to which our #nowled"e of these differences is limited
54 Visit Aand(s ,nd(s various international sites 2you can start at www.landsend.com) Beyond
adaptin" to lan"ua"e differences, how much adaptin" have they done to each country4 Based on
your understandin" of the cultural differences would you have e%pected more or less adaptation4
?>),* 3tudents can :Coo"le; Aands( ,nd or loo# under the international tab at the very bottom of
the U3 site of wwwlandsendcom
3tudents will li#ely vary in their opinions here 8owever, beyond lan"ua"e 2@apanese in the @apan
site), it doesn(t appear that Aand(s ,nd is doin" a "reat deal to adapt to cultural differences Dor
e%ample, most of the people in the Aand(s ,nd @apan ads are <merican not @apanese < #ey
discussion point here is to what e%tent such standardi0ation is acceptable and howIwhat further
customi0ation mi"ht benefit Aand(s ,nd
2-K
Chapter 02 - Cross-Cultural Variations in Consumer Behavior
$$B LI+E ST"LE ST$"
T!
$ATA ANAL"SES
?>),* >U+ +UA, 5<3 )> A>>B D>+ 10Q S .'DD,+,?C,3 58,? )8'3 5<3?()
/+<C)'C<A D>+ <? >U)C>1, V<+'<BA, 5, A>>B,. D>+ )8, :8'C8; C<),C>+G
)> B, +>UC8AG )5'C, )8, :A>5; >BV'>U3AG >)8,+ +UA,3 C>UA. B, U3,.
?>),* D>+ D,1<A, 3/>U3,(3 5>+B A,V,A, 5, .'3+,C<+.,. )8, C<),C>+G
:DUAA-)'1, 8>1,1<B,+; .U, )> )8, ,E)+,1,AG 31<AA 2? T 6) 3<1/A,
1) 5hat characteri0es U3 consumers who are interested in other cultures and interested in shoppin"
for items influenced by other cultures4 2Use the ..B data in )ables 1B throu"h 9B) 8ow mi"ht
travel a"ents use this in developin" mar#etin" strate"ies involvin" international travel4
a) 'nterested in the Cultures of >ther Countries
Aow 2Q) 8i"h 2Q)
1arital 3tatus 1arried 2!6K) 3in"le 2never married) 260!)
Children at 8ome 1 2!2K), 2-! 2!29), $S 2!$6) 0 2$!1)
1ale +espondents
23pouse(s 5or# Aevel)
Dull-)ime 8omema#er 2279)
,mployed /art-)ime 2296)
UnemployedI +etired 2!H2)
8ousehold 'ncome U 100 2!0-$0 ran"e) V 100 2$H9)
,ducation 83 .e"ree 2226) Craduate 3chool 262!)
)ech 3avvy 2/erceived) Aow and 1edium 2!66) 8i"h 2601)
>ccupation
Darmin", Dorestry, Dishin" 22!1)
/recision /roduction, Craft and
+epair 22!!), >perator, Dabricator,
Aaborer 22$6)
/rofessional 2$K1), 3ales 2$$9)
,%ecutive, 1ana"er, <dministrator 2$02)
,thnic 3ubculture 5hite 2!67)
>ther 26HK)
8ispanic 2$67)
Blac# 2$!0)
<"e
!6-$$ 2!66), $6-6$ 2!6K), 26-!$
2!H7), and V 7$ 2!K6)
1H-2$ 2$H2)
Co"nitive <"e 2Deel a
lot Goun"er than <"e)
.efinitelyICenerally .isa"ree 2!2K)
1oderately .isa"reeI<"ree 2!!0)
CenerallyI.efinitely <"ree 2$$9)
Ceo"raphic +e"ion ,ast ?orth Central 22HK) /acific 260K)
3in"le, no children, hi"her income, hi"her education, professionals of diverse ethic bac#"rounds
seem to be most interested in other cultures Goun"er 2actual and co"nitive) and /acific re"ion also
are important Clearly, it would ma#e sense for travel a"ents to tar"et the youn", ethnically diverse,
professional community )wo interestin" points are worth notin" Dirst is that co"nitive youth
su""ests that even older consumers who :feel; youn" are interested in other cultures which could be
worth e%plorin" from an advertisin" standpoint 3econd, the data don(t indicate what cultures the
different ethnicities are most interested in, which is somethin" travel a"encies would want to learn in
order to tar"et specific ethnic subcultures with international travel pac#a"es
2-10
Chapter 02 - Cross-Cultural Variations in Consumer Behavior
)b ,n-oy 3hoppin" for 'tems 'nfluenced by >ther Cultures
Aow 2Q) 8i"h 2Q)
1arital 3tatus 1arried 217H) 3in"le 2!!0)
8ousehold 'ncome
2'n )housands)
70-90B 21$H) U 20B 2269) and V100B 22!)
,ducation 83 .e"ree 216H) Craduate 3chool 226K)
)ech 3avvy 2/erceived) Aow 21K7) 8i"h 22H6)
>ccupation
Darmin", Dorestry, Dishin" 299),
/recision /roduction, Craft and
+epair 2120),>perator, Dabricator,
Aaborer 21!$)
/rofessional 22$7)
,thnic 3ubculture 5hite 2172) Blac# 2!9K)
<"e V 7$ 2179) 1H-2$ 2271)
'deal 3elf-Concept 1asculine 216H)
Gouthful 2292) and <dventurous
2270)
/rofile here is similar in many ways to that found in /art < 3in"le, youn"er, hi"her education,
professionals with a youthful and adventurous ideal self are li#ely to report en-oyin" shoppin" for
items influenced by other cultures 3o too are Blac#s )he ideal self-concept aspects of youthful
and adventurous could inform promotional strate"ies for companies in the U3 mar#etin" items
from other countries
REVIE/ 0ESTIONS
1) 5hat are some of the ethical issues involved in cross-cultural mar#etin"4
>bvious issues include e%portin" potential harmful products such ci"arettes as well as products or
services that disrupt the local economy <lterin" cultural values and the lifestyles of countries in
ways that may diminish the overall &uality of life in the country are also issues
2) 5hat is meant by the term culture4
Culture is that comple% whole that includes #nowled"e, belief, art, law, morals, custom, and any
other capabilities and habits ac&uired by an individual as a member of society 't is important to
mar#etin" because culture indicates the approved ways of solvin" product-related problems for
consumers
!) 5hat does the statement :Culture sets boundaries on behaviors; mean4
?ormally, the boundaries of behavior are outlined by the culture, and even some of these boundaries
for certain #inds of behavior are va"ue >n the other hand, very important behaviors, such as the
ways in which one person may force behavior in others, are very well defined Consumptive
behaviors also run the "amut from va"ue 2purchase and use of food products for entertainin") to
fairly specific 2what clothes one should wear for specific occasions such as weddin"s or funerals)
$) 5hat is a norm4 Drom what are norms derived4
?orms are rules that specify or prohibit certain behaviors in specific situations and are based on or
derived from cultural values
2-11
Chapter 02 - Cross-Cultural Variations in Consumer Behavior
6) 5hat is a cultural value4
Cultural values are widely held beliefs that affirm what is desirable
7) 5hat is a sanction6
3anctions are penalties ran"in" from mild social disapproval to banishment from the "roup and are
imposed on those who violate cultural norms
9) Cultural values can be classified as affectin" one of three types of relationshipsWother,
environment, or self .escribe each of these, and differentiate each one from the others
>ther* +eflect a societyJs view of appropriate relationships between individuals and "roups
,nvironment* /rescribe a societyJs relationship to its economic, technical, and physical
environments
3elf* +eflect the ob-ectives and approaches to life that members of society find desirable
H) 8ow does the first of the followin" paired orientations differ from the second4
a 'ndividualIcollective * 'ndividual emphasi0es individual initiative and activity, while collective
appreciates "roup cooperation and conformity
b /erformanceIstatus * 'n performance orientation, opportunities, rewards, and presti"e are
based on an individualJs performance, while in a status orientation those thin"s are based on
the status associated with the personJs family, position, or class
c )raditionIchan"e * )radition values no or little chan"e, while a chan"e orientation sees chan"e
or pro"ress as "ood
d AimitedIe%tended family * Aimited defines a family more ti"htly in terms of immediate
relatives and imposes fewer obli"ations to respond to the needs of other family members than
does an e%tended family orientation
e <ctiveIpassive * <n active orientation reflects the e%pectation that people will ta#e a
physically active approach to wor# and play /assive simply means much less of that
e%pectation
f 1aterialInonmaterial * 5hether the accumulation of material wealth is valued 2material) or
not 2nonmaterial)
" 8ard wor#Ileisure * 's wor# valued for itself, independent of e%ternal rewards 2hard wor#), or
is wor# merely a :means to an end; 2leisure)4
h +is# ta#in"Isecurity * 's the person who ris#s his established position or wealth on a new
venture admired 2ris# ta#in") or considered fool hardy 2security)4
i 1asculineIfeminine * <re ran#, presti"e, and important social roles assi"ned primarily to men
2masculine) or women 2feminine)4
- CompetitiveIcooperative * 's the path to success found by outdoin" other individuals or
"roups, or is success to be achieved by formin" alliances with other individuals and "roups4
# GouthIa"e * <re presti"e, ran#, and important social roles assi"ned to youn"er 2youth) or
older 2a"e) members of society4
2-12
Chapter 02 - Cross-Cultural Variations in Consumer Behavior
l /roblem -solvin"Ifatalistic * .o people react to obstacles and disasters as challen"es to be
overcome 2problem-solvin"), or do they ta#e a :what will be, will be; attitude 2fatalistic)4
m .iversityIuniformity * does the culture embrace variation in reli"ious beliefs, ethnic
bac#"round, political views, and so forth4
n /ostponed "ratificationIimmediate "ratification * 's one encoura"ed to :save for a rainy day;
2postponed), or should you :live for today; 2immediate)4
o 3ensual "ratificationIabstinence * 's it acceptable to pamper oneself, to satisfy oneJs desires
for food, drin#, or se% beyond the minimum re&uirement 2sensual) or not 2abstinence)4
p +eli"iousI3ecular * )o what e%tent are daily activities determined by reli"ious doctrine4
K) 5hat is meant by nonverbal communications4 5hy is this a difficult area to ad-ust to4
?onverbal communication refers to the transfer of information from one person to another without
the use of lan"ua"e, spo#en or written, such as usin" the si0e of an individualJs office as an
indication of status 't is difficult to ad-ust to because we assi"n our own cultureJs meanin"s to the
nonverbal si"ns bein" utili0ed by another culture
10) 5hat is meant by each of the followin" as a form of nonverbal communication4
a )ime * )he cultureJs overall orientation to time and the way in which the meanin" of time
varies
b 3pace * )he use people ma#e of space and the meanin"s they assi"n to it
c 3ymbols * .ifferent colors, numbers, and shapes ac&uire different symbolic meanin"s across
cultures
d +elationships * )he de"ree of ri"hts and obli"ations imposed by relationships and friendships
e <"reements * )he need to rely 2or not to rely) on an e%tensive and, "enerally, hi"hly efficient
le"al system for ensurin" that business obli"ations are honored and for resolvin"
disa"reements
f )hin"s * )he assi"nin" of meanin" to the possession of various ob-ects and the de"ree to
which ac&uisition of "oods themselves is valued
" ,ti&uette * Cenerally accepted ways of behavin" in defined social situations
11) 5hat is guanxi4
)uanxi is literally translated as personal connectionsIrelationships on which an individual can draw
to secure resources or advanta"es when doin" business as well as in the course of social life
12) 5hat is the difference between instrumental and terminal materialism4
'nstrumental materialism involves the ac&uisition of products in order to achieve a "oal 2s#is to
allow s#iin") )erminal materialism is the ac&uisition of products for the pleasure of ownin" the
product 2art, for e%ample)
2-1!
Chapter 02 - Cross-Cultural Variations in Consumer Behavior
1!) 5hat are the differences between a monochronic time perspective and a polychronic time
perspective4
/eople are monochronic if they have a stron" orientation toward the present and the short-term
future < person who is polychronic has a stron" orientation toward the present and past <s a result
of different time orientations, each type of person has a different orientation toward time, situations,
and relationships
1$) 5hat forces seem to be creatin" a "lobal teena"e culture4
)he emer"ence of worldwide mass media is the stron"est influence ,ntertainers and sports heroes
as superstars and the universal appeal of a variety of sports are also important
16) 5hat are demo"raphics4 5hy are they important to international mar#eters4
.emo"raphics describe a population in terms of its si0e, structure, and distribution .emo"raphics
differ sharply across countries and cause needs to differ, as well as influence the ability of
consumers to fulfill needs
17) 5hat is purchasing power parity6
't is a measure of the ability of consumers in different countries with various income levels to
purchase a set of "oods Basically, it e&uates the income level in a country to the income in
<merican dollars that could buy the same set of "oods that the income will buy in its home country
't answers the &uestion, :how much would it cost in U3 dollars to live the lifestyle that a "iven
income will buy in another country4; )his allows meanin"ful cross-country income comparisons
19) 5hat are the seven #ey considerations in decidin" whether or not to enter a "iven international
mar#et4
a 's the "eo"raphic area homo"eneous or hetero"eneous with respect to culture4
b 5hat needs can this product fill in this culture4
c Can enou"h of the "roup2s) needin" this product afford the product4
d 5hat values or patterns of values are relevant to the purchase and use of the product4
e 5hat are the distribution, political and le"al structure of this product4
f 'n what ways can we communicate about the product4
" 5hat are the ethical implications of mar#etin" this product in this country4
1H) 5hat does determinin" if a "eo"raphic area or political unit is homo"eneous or hetero"eneous with
respect to culture mean4 5hy is this important4
8omo"eneous means that the culture within the area is the same, as opposed to hetero"eneous
which means the culture varies )his is important in determinin" whether standardi0ed versus
individual mar#etin" strate"ies are necessary
2-1$
Chapter 02 - Cross-Cultural Variations in Consumer Behavior
$is1ussion 0uestions
1K) 5hy should we study forei"n cultures if we do not plan to en"a"e in international or e%port
mar#etin"4
)o better understand our own culture and the #inds of impacts it has on our consumers 'n addition,
all business is international or is at least affected by international business conditions and trends
Dinally, one can hardly be considered educated without at least an appreciation of cultural
differences
20) 's a country(s culture more li#ely to be reflected in its art museums or its television commercials4
5hy4
/robably in its television commercials )hey are more li#ely to show how people actually thin#,
feel, behave, and act over a wider variety of real situations ?ote that when archaeolo"ists describe
the culture of an ancient civili0ation, they probably do so more by its products 2dishes, furniture,
tools) than by its art
21) <re the cultures of the world becomin" more similar or more distinct4
)here is no answer to this one, but it is a "ood vehicle to brin" out &uestions about standardi0ation
of mar#etin" strate"ies 3ome students will ar"ue that increased travel and communication, hi"her
levels of education and income, and so forth, cause brea#down in cultural boundaries >thers ar"ue
that there is an increased emphasis on retainin" those boundaries with increased nationalism in
many parts of the world ' believe that we are seein" some increase in similarity but not to the e%tent
many students ima"ine
22) 5hy do values differ across cultures4
.ifferent social histories, physical environments, and reli"ious influences create different values 't
is fun to have students from differ cultures describe their view of the forces that have shaped their
cultures values
2!) )he te%t lists 1H cultural values 2in three cate"ories) of relevance to mar#etin" practice .escribe
and place into one of the three cate"ories two additional cultural values that have some relevance to
mar#etin" practice
3implicityIComple%ity* <re simple or comple% stimuli, situations, and lifestyles preferred4
Environment
8ealth* <re individuals deeply concerned with their short- and lon"-run health4 Self
'nvolvementI?oninvolvement* <re individuals deeply concerned or indifferent about occurrences
that donJt affect them directly4 Environment
2$) 3elect two cultural values from each of the three cate"ories .escribe the boundaries 2norms)
relevant to that value in your society and the sanctions for violatin" those norms
't is probably easiest to as# students to do this first for the masculineIfeminine value, and then let
them volunteer other values that interest them )he masculineIfeminine value is well #nown to them,
and they are aware of the sanctions for violations )here are also noticeable differences across
cultures that the students are li#ely to have noticed
26) 5hat are the most relevant cultural values affectin" the consumption of each of the followin"4
.escribe how and why these values are particularly important
a) 'nternet
b) 1/! player
c) 1il#
d) Dast food
e) 1ountain bi#e
f) Cell /hones
2-16
Chapter 02 - Cross-Cultural Variations in Consumer Behavior
)his &uestion is a "ood way to cover the concept of values and their role in product
consumption <lmost any value can affect consumption, but some will have a stron"er or more
lo"ical relationship /ush the students to -ustify their answers and to e%plain how a mana"er
could utili0e #nowled"e of those values to improve the mar#etin" pro"ram
27) 5hat variations between the United 3tates and other societies, other than cultural variations,
may affect the relative level of usa"e of the followin"4
a) 'nternet
b) 1/! player
c) 1il#
d) Dast food
e) 1ountain bi#e
f) Cell phones
<ny aspect of demo"raphics could be relevant Clearly a"e and income are important across
many of the products /resence of children li#ely plays a role in fast food and mil#, and so on
't is useful to have students rate the relative importance of demo"raphic factors relative to
cultural factors 2from &uestion 26)
29) 's the ,uropean Union li#ely to become a relatively homo"eneous culture by 20264
)his is a fun &uestion if you have a number of ,uropean students as well as some <mericans
who have traveled in ,urope recently )he answer is probably no thou"h it will almost
certainly continue to move in that direction 'n addition, youn"er, hi"hly educated individuals
livin" in urban areas probably will have a relatively homo"eneous culture by 2026 'n "eneral,
<merican students tend to thin# it will be more homo"eneous than do ,uropean students
2H) 5hat values underlie the differences between Di-i 'sland and U3 children in terms of the
strate"ies they use to influence their parents( decisions4 5hat mar#etin" implications emer"e4
)his relates to the youthIa"e distinction, but "oes deeper to differences in collectivism, respect
for authority, and seniority )he Di-i culture is less individualistic and places a hi"her value on
respect and seniority compared to the U3 <nd this translates into differences in dealin" with
children in which Di-i parents are less tolerant and responsive to purchase :demands; on the
part of children than U3 parents <t a minimum, parent and child portrayals in ads would
need to be sensitive to these differences
2K) 5hat are the mar#etin" implications of the differences in the masculine/feminine orientation
across countries4
Aoo#in" at the data on participatin" in sports and e%ercise indicates that 1e%ico, Drance, and
3outh Borea show the lar"est differences in fre&uent participation based on "ender 1ore
specifically, the data shows the chan"in" orientation of women in traditionally masculine
countries
2-17
Chapter 02 - Cross-Cultural Variations in Consumer Behavior
!0) +espond to the &uestions in Consumer 'nsi"ht 2-1
Certainly, diversity is a critical value bein" tapped by each company as they levera"e the
popularity of 'ndian culture into other countries <lso, youth could be important as they
appear to be tappin" into the "lobal teen phenomenon
'n at least one case, 2?o#ia in <sia), there is probably diver"ence from traditional "ender roles
2masculineIfeminine) and more of a sensual appeal 2sensual "ratificationIabstinence) than
mi"ht be typical of how women are portrayed in traditional <sian ads ,ncoura"e students to
speculate on additional differences
)he ethics li#ely depend on ones values 2see &uestion $0) )he le"al issue is hard to predict,
althou"h the 58> will almost certainly lobby for stricter policies
!1) 5hy do nonverbal communication systems vary across cultures4
.ifferent social histories, physical environments, and reli"ious influences over time create
different nonverbal communications systems 8owever, ' am unaware of any systematic
attempt to classify cultures andIor re"ions in terms of their nonverbal systems and to
LdetermineL e% post facto the causes of the differences
!2) 5hich, if any, nonverbal communication factors mi"ht be relevant in the mar#etin" of the
followin"4
a) Au%ury
automobiles
b) @ewelry
c) Aaptop computers
d) Aaundry deter"ent
e) Aip balm
f) 5omen(s clothin"
3tudents should discuss each of the nonverbal communication factors 2time, space, relationships,
a"reements, thin"s, symbols, and eti&uette) for each of the products listed in the &uestion )hey need
to consider each element of the mar#etin" mi% as well )he easiest discussion will be around
advertisin" and you may want to limit it to that area if time is short
!!) 5hat are the implications of guanxi for a 5estern firm enterin" the Chinese mar#et4
)he most important issue is developin" a deep understandin" that these comple% relationships e%ist
)his understandin" will emphasi0e the importance and value of "uan%i and modify the approach a
western firm will use in penetratin" the Chinese mar#et 'n most cases, a re-evaluation of resources
2relationships, time, a"reements, etc) is re&uired
!$) )o what e%tent do you thin# youth are truly becomin" a sin"le, "lobal culture4
5hile there is no absolutely correct answer, the author(s e%perience of livin" in a variety of cultures
with and without his teena"e 2at that time) children leads him to believe that this is indeed true for
middle and upper class teena"ers in urban areas
!6) 5ill today(s youth still be a :"lobal culture; when they are $04 5hy or why not4
)his is a very "ood way to e%plore what a culture truly is and how it develops and chan"es 't may
also cause some to reconsider their answer to &uestion !$ 'f teena"ers do indeed have a common
culture includin" values, this is not li#ely to chan"e radically as they enter adulthood
2-19
Chapter 02 - Cross-Cultural Variations in Consumer Behavior
!7) 8ow do demo"raphics affect a culture(s values4 8ow do a culture(s values affect its demo"raphics4
Values have a stron"er, more direct impact on demo"raphics than vice versa 8owever, values are
formed and evolve based on the history and environment of a culture .emo"raphics are part of that
environment Cultures with dense populations are li#ely to develop a collective orientation due to
the re&uirements of livin" in close pro%imity 3ocieties that value ris#-ta#in", hard wor#, and
postponed "ratification are li#ely to have hi"h income and education levels
!9) 5hat causes the differences between purchasin" power parity and income as shown in the te%t4
Aocal cost structures, "overnmental provided health care, ta%es, and other cost of livin" factors
associated with the economic status of a particular country causes difference between raw income
numbers and purchasin" power
!H) )he te%t provides a seven-step procedure for analy0in" a forei"n mar#et Usin" this procedure,
analy0e your country as a mar#et for*
a) Aaptop computers from @apan
b) <utomobiles from Cermany
c) 3un"lasses from 'taly
d) 5ine from Chile
)his &uestion can provide an e%cellent method for presentin" the material on cross-cultural
mar#etin" strate"y ' recommend splittin" the class into a multiple of seven "roups and assi"nin"
each "roup one of the seven considerations listed in the te%t )hen have each "roup evaluate one or
more of the products listed above with respect to the #ey consideration it was assi"ned 5hen "iven
time to prepare, a very "ood discussion that involves the entire class can be "enerated
!K) 5hat are the ma-or ethical issues in introducin" prepared foods such as fast foods to developin"
countries4
)he consumption of this product mi"ht divert resources from other, more important, food
purchases Dor e%ample, hi"h fat, hi"h sodium bur"ers and fries may cost more and be less
nutritious than fruits and ve"etables .isposal of the product may be more difficult and therefore
create an environmental problem
$0) 3hould U3 tobacco firms be allowed to mar#et ci"arettes in developin" countries4 5hy or why
not4
)he answer depends more on one(s value system than on any set of facts 't is critically important to
respect the views of all students in such discussions Gou can play devil(s advocate but it is
sometimes easy to intimidate students this early in the term 'f no one mentions it, an interestin"
point is that it is somewhat condescendin" for the U3 to attempt to "overn what occurs in another
country
$1) 8ow can developin" countries #eep their cultures from bein" overly 5esterni0ed or <mericani0ed4
)here is no answer to this &uestion Ae"al restrictions can have a modest impact 8owever, cultural
chan"e 2or lac# of chan"e) cannot be le"islated in the lon" run Dortunately, while there are many
trends toward <mericani0ation, there are increasin" forces supportin" local traditions and cultures
2includin" the increased sensitivity of at least some multinationals to local custom and values)
2-1H