Consumer Behavior,

Ninth Edition

Schiffman & Kanuk


Copyright 2007 by Prentice Hall
Chapter 14
Cross-Cultural Consumer
Behavior: An International
Perspective


14 - 2
Copyright 2007 by Prentice Hall
Chapter Outline
The Imperative to Be Multinational
Cross-Cultural Consumer Analysis
Alternative Multinational Strategies
Cross-Cultural Psychographic
Segmentation
14 - 3
Copyright 2007 by Prentice Hall
The Imperative to Be
Multinational
Global Trade Agreements
EU
NAFTA
Acquiring Exposure to Other Cultures
Country-of-origin Effects

14 - 4
Copyright 2007 by Prentice Hall
Table 14.1 The Worlds Most
Valuable Brands
1. Coca-Cola
2. Microsoft
3. IBM
4. GE
5. Intel
6. Disney
7. McDonalds
8. Nokia
9. Toyota
10.Marlboro
14 - 5
Copyright 2007 by Prentice Hall
Most of these
brands offer
different Web
sites for each
country.
weblink
14 - 6
Copyright 2007 by Prentice Hall
Discussion Questions
What challenges may Toyota have
faced to get this status?
What might they have done right in
their marketing strategy to achieve this
status? Consider the 4Ps.
14 - 7
Copyright 2007 by Prentice Hall
Country of Origin Effects:
Negative and Positive
Many consumers may take into
consideration the country of origin of a
product.
Some consumers have animosity toward a
country
Peoples Republic of China has some animosity to
Japan
Jewish consumers avoid German products
New Zealand and Australian consumers boycott
French products
14 - 8
Copyright 2007 by Prentice Hall
Swiss Watches
14 - 9
Copyright 2007 by Prentice Hall
More Swiss Watches
14 - 10
Copyright 2007 by Prentice Hall
Cant Beat the Engineering
The American Twist
14 - 11
Copyright 2007 by Prentice Hall
This U.S.
Government
Web site helps
those who
want to buy
USA products.
weblink
14 - 12
Copyright 2007 by Prentice Hall
National Identity
Figure 14.2
14 - 13
Copyright 2007 by Prentice Hall
Cross-Cultural
Consumer
Analysis
The effort to
determine to what
extent the
consumers of two
or more nations are
similar or different.
14 - 14
Copyright 2007 by Prentice Hall
Cross-Cultural Consumer
Analysis
Similarities and
differences among
people
The growing global
middle class
The global teenage
market
Acculturation

The greater the
similarity between
nations, the more
feasible to use
relatively similar
marketing strategies
Marketers often speak
to the same types of
consumers globally
Issues
14 - 15
Copyright 2007 by Prentice Hall
Discussion Questions
Are people becoming more similar?
Why or why not?
14 - 16
Copyright 2007 by Prentice Hall
Table 14.2
Comparisons of Chinese and American
Cultural Traits
Chinese Cultural Traits
Centered on
Confucian doctrine
Submissive to
authority
Ancestor worship
Values a persons
duty to family and
state
American Cultural Traits
Individual centered
Emphasis on self-
reliance
Primary faith in
rationalism
Values individual
personality
14 - 17
Copyright 2007 by Prentice Hall
Cross-Cultural Consumer
Analysis
Similarities and
differences among
people
The growing global
middle class
The global teenage
market
Acculturation

Growing in Asia,
South America, and
Eastern Europe
Marketers should
focus on these
markets
Issues
14 - 18
Copyright 2007 by Prentice Hall
Cross-Cultural Consumer
Analysis
Similarities and
differences among
people
The growing global
middle class
The global teenage
market
Acculturation

There has been growth
in an affluent global
teenage and young adult
market
They appear to have
similar interests,
desires, and
consumption behavior
no matter where they
live.
Issues
14 - 19
Copyright 2007 by Prentice Hall
The iPod has
global appeal
to the young
market.
weblink
14 - 20
Copyright 2007 by Prentice Hall
Cross-Cultural Consumer
Analysis
Similarities and
differences among
people
The growing global
middle class
The global teenage
market
Acculturation

Marketers must
learn everything that
is relevant about the
usage of their
product and product
categories in foreign
countries
Issues
14 - 21
Copyright 2007 by Prentice Hall
Table 14.6 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 - 22
Copyright 2007 by Prentice Hall
Table 14.6 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 - 23
Copyright 2007 by Prentice Hall
World
Brands
Products that are
manufactured,
packaged, and
positioned the same
way regardless of the
country in which they
are sold.
14 - 24
Copyright 2007 by Prentice Hall
Are Global Brands Different?
According to a survey yes.
Global brands have:
Quality signal
Global myth
Social responsibility
14 - 25
Copyright 2007 by Prentice Hall
Multinational Reactions to Brand
Extensions
A global brand does not always have
success with brand extentions
Example Coke brand extension Coke
popcorn
Eastern culture saw fit and accepted the
brand extension
Western culture did not see fit
14 - 26
Copyright 2007 by Prentice Hall
Adaptive Global Marketing
Adaptation of advertising message to
specific values of particular cultures
McDonalds uses localization
Example Ronald McDonald is Donald
McDonald in Japan
Japanese menu includes corn soup and
green tea milkshakes
Often best to combine global and local
marketing strategies
14 - 27
Copyright 2007 by Prentice Hall
Discussion Question
If your university is considering a
satellite business program in Korea
How would they need to adapt the
program?
What would prompt these changes?
14 - 28
Copyright 2007 by Prentice Hall
Alternative Multinational Strategies:
Global Versus Local
Framework for Assessing Multinational
Strategies
Global
Local
Mixed

14 - 29
Copyright 2007 by Prentice Hall
Table 14.8 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 - 30
Copyright 2007 by Prentice Hall
Cross-Cultural Psychographic
Segmentation

The only ultimate truth possible is that
humans are both deeply the same and
obviously different.
14 - 31
Copyright 2007 by Prentice Hall
Table 14.10 Six Global Consumer
Segments
Strivers
23%
Altruists
18%
Devouts
22%
Fun Seekers
12%
Creatives
10%
Intimates
15%