Bimtech Cross Culture Cb (1)

7/31/2019 Bimtech Cross Culture Cb (1)

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Cross-Cultural

ConsumerBehaviour-AnInternational

Perspective


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Leading

Wrist-WatchManufacturerUses GlobalAdvertising

Strategy


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Many Japanese Women feel guilty preparingfrozen vegetables in a microwave ratherthan preparing fresh vegetables.

No smear lipstick did not exist in Japan untila few years but it now has sales of $45million a month.

Superstition can affect behaviour in aculture.

In efforts to tap into the growing market ofIndian Americans, Managing Director ofMutual of New York Life Insurance is

visiting Hindu Temples.


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American Airlines introduced its new leatherfirst class seats in Mexico with the themeFly in Leather which when translated readflynaked.


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See the colourcombinations!!!!!!


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Consumer Insight The coffee bar concept, coupled with

high-quality, strongly flavored coffee,obviously transferred successfully fromthe Italian to the American culture.However, America has traditionally

embraced coffee. Will Starbucks workin countries where tea is the dominantdrink?

What values will affect Starbucks

success in China? What ethical issues should Starbucks

consider as it enters developingcountries?


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Introduction to CrossCulture

numerous larger differences existbetween citizens of different nationshaving different cultures, values,

beliefs, and languages. If international marketers should

understand the relevant similaritiesand differences that exist between

the peoples of the countries theydecide to target.


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Introduction to CrossCulture

countries of origin of the brands (Country ofdesign, Country of assembly, country ofparts)

The country of origin effects influence howconsumers rate quality, and sometimes,which brands they will ultimately select.

Many Chinese consumers consider Sonyhigh-end and high-quality, but may refuseto buy due to animosity toward Japan. High-animosity consumers own fewer Japanese

products than low-animosity consumers


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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, thesame global advertising campaign, ortailored products and localized ads foreach country).

This challenge has been given specialmeaning by the efforts of the EuropeanUnion (EU) to forming a single market. It is unclear whether this diverse market will be

transformed into a single market of homogeneousEuro-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 ofEU members will help shape Europe into a huge,powerful, single market.


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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, andVietnam, is another important economic alliance thatoffers 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 economicopportunities.

Firms are selling their products worldwide for a

variety of reasons. Overseas markets represent the single most importantopportunity for future growth as home markets reachmaturity.

Consumers all over the world are increasingly eager totry foreign products that are popular in different andfar-off places.


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Acquiring Exposure toOther Cultures

How consumers in one culture secure exposure tothe goods of other people living in other cultures isan important part of consumer behavior.

A portion of consumers exposure to differentcultures tends to come about through consumersown initiativestheir travel, their living andworking in foreign countries, or even theirimmigration to a different country.

Consumers often obtain a taste of differentcultures from contact with foreign movies, theater,art and artifact, and, most certainly, exposure tounfamiliar and different products. Within thiscontext, international marketing provides a form ofculture transfer.


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Cross-Cultural ConsumerAnalysis

Cross-cultural consumer analysis is defined asthe effort to determine to what extent theconsumers of two or more nations aresimilar or different. In a broader context it

might include a comparison of subculturalgroups within a single country.

Issues in Cross-Cultural ConsumerAnalysis

Similarities and Differences among People

Time Effects

The Growing Global Middle Class

Acculturation


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

The average childrens birthday party in the United States lastsapproximately two hours.

Brazilians are willing to wait a little more than two hours for a latearriver to show up at a birthday party.

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

country to country. 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 withpeers 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 onhow long pedestrians take to walk 60 feet, the minutes it takes

a postal clerk to complete a stamp-purchase transaction, andthe accuracy of public clocks) reveals substantial cross-culturaldifferences. Switzerland has the fastest pace of life; Mexico hasthe slowest pace of life.


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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 thatalthough 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 beremembered that the same product might have differentmeanings in different countries. A U.S. consumer wants his orher fast food to be fast, a Korean consumer is more likely toview a meal as a social or family-related experience.

Regulations in different countries may preclude the use of someof the marketing practices that a firm employs in the UnitedStates.


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Cross-Cultural Consumer AnalysisAcculturation (The learning of a new foreign culture)Is a Needed Marketing Viewpoint

Many marketers make a strategic error when contemplating aninternational expansion, thinking that if domestic consumerslike it, international consumers will like it.

Marketers need to go through an acculturation process, learningeverything that is relevant to their product usage in the foreigncountries 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 indeveloping 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 andrelated concepts.

Then, the marketer must devise promotional strategies that willconvince the members of a target market to have their childrenvaccinated, even if doing so requires a change in current attitudes.


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Table: Basic Research Issues in Cross-Cultural Analysis

FACTORS

Differences in language and meaning

Differences in market segmentationopportunities

Differences in consumption patterns

Differences in the perceived benefits ofproducts and services

EXAMPLES

Words or concepts may not mean the samein two different countries.

The income, social class, age, and sex oftarget customers may differ dramatically intwo different countries.

Two countries may differ substantially inthe level of consumption or use of productsor services.

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


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Table: continued

FACTORS

Differences in the criteria for evaluatingproducts and services

Differences in economic and socialconditions and family structure

Differences in marketing research andconditions

Differences in marketing researchpossibilities

EXAMPLES

The benefits sought from a service maydiffer from country to country.

The style of family decision makingmay vary significantly from country tocountry.

The types and quality of retail outlets anddirect-mail lists may vary greatly amongcountries.

The availability of professional consumerresearchers may vary considerably fromcountry to country.


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Consider Color

Meanings of BlueHolland -warmthIran - deathSweden -coldnessIndia - purity

Meanings of YellowU.S. - warmthFrance - fidelity


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Applying Research Techniques

Although domestic researchmethods are useful in foreigncountries, language and word usageoften differ from nation to nationcausing some difficulties.

To avoid research measurementproblems consumer researchersshould familiarize themselves withthe research services in thecountries where they are evaluatingmarkets.

Alt ti M lti ti l


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Alternative MultinationalStrategies: Global Versus Local

Marketers are arguing for one of twoapproaches.

One, the world markets are becoming moresimilar, and therefore standardized marketingstrategies is appropriate.

Or two, that the variations among nations aretoo great for a standardized marketing strategy.

The challenge is deciding whether to useshared needs and values as a

segmentation strategy or to use nationalborders as a segmentation strategy.


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Marketing Mistakes: A Failure to Understand Differences In most cases, the gamble for marketers in international

marketing is not knowing whether the product, the promotionalappeal, the pricing policy, or the retail channels that are effective

in one country will work in other countries and in trying todetermine what specific changes should be made to ensureacceptance 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 theymust alter traditional product characteristics.

To avoid problems, marketers must ascertain in advance whetherthe physical characteristics of their products will be acceptable tothe new market.

Color is also a critical variable in international marketing, becausethe 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.


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Marketing Mistakes: A Failure to Understand Differences

Promotional Problems: When communicating with consumers in different

parts of the world, the promotional message must beconsistent with the language and customs of theparticular target society.

The Seven-Up, Inc.s highly successful Uncolatheme, developed for the U. S. market, wasconsidered inappropriate for many foreign marketsbecause it did not translate well into otherlanguages.

Product names and promotional phrases can alsocause considerable problems for international

marketers. The word clock in Chinese sounds likethe word death.


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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 andcustoms. It should also be remembered that what Americans view

as low-cost might not be viewed similarly in othercountries. U.S. fast food franchises that operate in Mexico,such as Burger King, Wendys, and McDonalds, are allconsidered upscale to the Mexican consumer.

Japans traditional distribution system differs from theUnited States in that a close, complex relationship existsamong the larger Japanese manufacturers and theirdistributors 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 parentalspending.

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Bimtech Cross Culture Cb (1)