“Cultural Influences on selected Aspectsof Consumer Behaviour”

Learning the Business of Asian Business

PhD Seminar-3

Force Process Outcome

Force-Process-Outcome (Fam: ‘Effective advertising in China and India’, Proceedings of International

Conference on Research in Advertising, 2005, pp. 161-167)

Elements of

Culture:

Material

Language

Aesthetics

Education

Religion

Social Organization

Politics & Law

Values & Attitudes

Ethics & Etiquettes

Aspects of Consumer Behaviour:

Words, Symbols & PerceptionMotivationAgeSelf-conceptGroup InfluenceSocial ClassSex RolesAttitudes to ChangePurchase Decision MakingPost-Purchase

Aspects of Marketing

Communications:

Impact of Cultural Differences on

Consumer Behaviour & Marketing Communications

Message decisions (appeal, central message)

Creative approaches(execution: casting &activities of people, thesettings, interrelationship)

Advertising styles

Media planning approaches

The Possible Impact of Cultural Differenceson Selected Aspects of Consumer Behaviour

1. Symbols & Perception Symbols work as a powerful means of suggestion and evocation. The symbolic aspects of consumption are important to consumers: the social meaning of many products is more important than their functional utility.

In their capacity as signs with suggestive power, symbols rely on natural elements: colours, shapes, locations, materials, everyday objects, animals, countryside and elements of nature, famous characters, etc. (see Omega watch associated with America’s Cup)

Omega Watch and America’s Cup

In certain cultures, the lake is a symbol of love, the blue colour isof virginity, the green of peace, and white is the colour of birth inthe West and is usually celebrated as a happy event. In China itsymbolizes mourning.

perception of shapes, colours varies across cultures. Colours, things, numbers and even smells have symbolic meanings, often not the one you think!

Chinese consumers living in coastal areas prefer loud colours, while those living inland prefer gaudy colours. Red suggests good fortune in China but death in Turkey. The owl in India is bad luck, like a black cat in Europe. In Japan a fox is associated with witches. In Singapore the number 7 is unlucky; but in Japan it is 4.

The Possible Impact of Cultural Differenceson Selected Aspects of Consumer Behaviour

these markers/labels can be seen in possessions such as designer- labeled goods, expensive jewelry and cars, but this apparent materialism does not reflect internal personal tastes, traits or goals.

Chinese consumers attached a high level of involvement to the purchasing of consumer goods, and this is directly attributable to the Chinese culture of public and visible consumption. (materialism)

Associating Symbols

2. Motivation:

Motivation to own, to buy, to spend, to consume, to show, to share,to give differs across cultures.

Motivation to spend can be altered by negative views of money.Motivation to buy may be low amongst Hindu culture since theydiscard objects and material culture.

Motivation to consume may be hindered by a strong ecologicalstance like eliminate plastic in favour of reusable bottles. Similarlymotivation to form relationship often lead to more gift givingoccasions like those widely practiced by Chinese and Japanese.

Understanding the variations in what motivates people is importantfor positioning brands in different markets. It explains differences inbrand loyalty, brand preference, brand image, etc.

Differences in sensitivity to certain product attributes and advertising appeals can be explained by culturally defined motives. See the “Motives for buying Automobiles”.

Motives for Buying Automobiles Source:de Mooij, (1998)

1

3

2

4

Quadrant 1- Feminine and weak uncertainty avoidance- People have preference for safety to protect their family for saving money. So what advertising appeal/s to use?

Quadrant 2- Masculine and weak uncertainty avoidance- People have a preference for cars with big, powerful motors. They tend to have a need for status. So what advertising appeal/s to use?

Quadrant 3- Feminine and strong uncertainty avoidance- People in this culture see the need for ‘sporty’ driving, fast acceleration but not so aggressive. A preference for design, but more in the art/fashion sphere, pleasure and enjoyment.

Quadrant 4- Masculine and strong uncertainty avoidance- People in this culture are aggressive drivers, prefer cars with rapid acceleration. Because they are often stressed up, they driving fast, they can ‘release’ stress. So what advertising appeal/s to use?

Motivation

Physiological

Safety

Belonging

Prestige

SelfActualisation

West Lower level needs

Physiological

Safety

Affiliation

Admiration

Status

Asia

(Source: Schutte and Ciarlante, 1998)

Western Countries

Asia

Group orientation

Lower power distance

High power distance

Individualism

Power distance vs group/individualism orientation(Hofstede, 1980)

3. Age:Do people know their age?/Respective valuation of younger and

older people in the society/Influence processes across age groups for buying decisions/How is purchasing power distributed across generations?

Culture based interpretations of:1. Young age – usually associated with inexperience, lack of seriousness and

character or with openness, creativity, ability to change things and undertake new projects

Old age – ‘useless mouths’ or ‘deadweight’ and should be asked to climb a tree and then let the young to shake him/her down from the tree. If he/she is old but strong, then should stay otherwise the solution is automatic. Or has wisdom and therefore should consulted.

2. How we value older people will influence the way their roles or image be projected/associated?

4. Self-Concept:Self concept may explain why and/or how consumers are motivated to interact with reference groups, sales people, and competing brands. Understanding self-concept’s influence on behaviour may enable marketers to develop effective methods of appealing to various target markets by targeting difference self-concepts.Self concept consists of five components;- ideal self – model person which one aspires to be- apparent self – how one actually view the individual- perceived self – how one sees oneself- social self – how a person thinks others perceive them- actual self – a composite of all these concepts.

The concept of the self has major implications like: our possessionsare a major contributor to and reflector of our identities; byascribing meaning to what we buy and consume, our possessionsbecome the means by which we strive to assert, complete, or attainour ‘ideal’ self.

Asians, on average have lower self-esteem. They tend to displaymodest and self-effacing behaviour versus the usually high esteemWesterners who tend to demonstrate more assertiveness andself-assurance. Is this statement true?

4. Self-Concept: continue

Consumers may purchase goods in order to develop a particularself-image (self concept) rather than for functionality.

5. Group Influence:To what extent are individuals influenced in their attitudes and buying behaviour by their group? How does consumer behaviour reflect the need to self-actualise individual identity or to manifest group belonging?

For example in China, friends and colleagues have morepurchasing influence than advertising. Also in Asian cultures,the discretion over the use of income is heavily influenced bythe expected contribution to the family. The tradition ofdeference to parental wishes also affects buying patterns inclothing, leisure expenditure, etc., especially as it is normal tolive at home until marriage.

In collectivist cultures, consumers tend to be more loyal on average because they tend to:

1. rely on word-of-mouth communication found in their reference group

2. tend to follow the group consensus until there is significant evidence showing that the new product is better.

5. Group Influence: continue

In collectivist cultures, consumers’ involvement in purchasing a product will vary according to situation when the product is:

1. purchased for private use – low involvement surfaced because they only favour the physical functions of the product and mostly concerned with price and quality.

2. Purchased for its symbolic value – since people value social harmony and the smoothness of relationships within extended family, the social significance of a product is highly important - it may express status, gratitude, approval or disapproval.

5. Group Influence: continue

6. Social Class:Are social classes locally important? Is social class demonstratedthrough consumption? What type of products or services dosocial status-minded consumers buy? Are there exclusive shops?

The Americans see one’s social class as reflecting one’s personalincome and professional merit. The interdependent Chinese seesone’s social class as belonging to one’s group, usually one’sfamily, relatives, and kinship clan. Social classes are importantfor consumer behaviour as people tend to express their classdifferences by consumption.

In China, the use of Hard/Soft Bunk on trains is more common than the Western concept of Economy/First Class seating. This is in line with China’s egalitarian society.

7. Sex Roles:The sexual division of labour; who makes the decisions? Who staysat home; who takes care of the children; who does the cooking, whodoes the washing, cleaning and tidying up; and for shopping who shops: he or she or both of them?

In Singapore, a husband played a more dominant role than hisUS counterpart in family decision making. In a strict Islamicworld, women are completely dependent on men, whose authorityand command cannot be questioned. A woman’s place is always inthe home.

In HK, women were often portrayed at home than men, in dependent roles, and less in occupational commercial settings(Furnham and Mak, 1999). In China, a decree by Chairman Mao that bothmen and women should be treated equally.

8. Attitudes to Change:Resistance to change in consumer behaviour (related to stronguncertainty avoidance), and resistance to change in particular areas when change could clash with local values and behaviour (eg. resistance to fast-food restaurants).

Members of a society with strong uncertainty avoidance are lesslikely to seek change/adopt a new product due to the fear of breakdown, losing ‘face’ and etc. The Chinese saying ‘Never makea purchase until you have compared three shops’ (Cui, 1997) isvery much alive among Hong Kong consumers.

9. Purchase Decision Making:

Family models (nuclear family versus extended family). Who makes the decision to purchase and for which products? In some cultures the woman holds the purse strings while in others it is the man. In Japan, the housewife makes most of the major purchases for the family and buy the family’s food, household supplies and clothing. So who should the marketers target at in Japan?

Children’s influence and decision making, in particular, what rolesdo China’s single child plays in family decision making?

Buyers in high-context, collectivist cultures will seek more social information before making a purchase decision than those in the low context cultures.

Will it make a difference to you if the fried chickens you just bought from KFC were from farms that did not stun the chickens first before they are killed? Will it make a difference to you to eatat McDonalds if the hens laying the eggs were not given extra water, more wing room in their cages and fresh air? (see Global boycott

aimed at KFC cutting – 7/1/03)

People in strong uncertainty avoidance cultures prefer structured and detailed information relative to weak uncertainty avoidance. For example Club Med provides detailed brochures detailing maps of airports at both ends of trip, showing toilets, custom booths and other facilities.

9. Purchase Decision Making: continue

In cultures where power distance is high, that is decision making is concentrated on the boss, then the sales person has to target at the top and at the same time make friends with people at the intermediate levels. In low power distance cultures, the contact is roughly proportionate with the financial amount involved by the sales contract.

9. Purchase Decision Making: continue

Members of collectivist cultures tend to invest time in buildingrelationships with their business partners than individualistic. Incollectivist cultures people do not like to say no and in large power distance cultures there is a need to please, resulting in ‘yesmanship’. Additionally, in collectivist societies, fate is assumed to play a role.

10. Post-Purchase:Perceptions of product quality. Consumer complainingbehaviour/dissatisfaction/consumerism.

Does price here include non-monetary price? Some culturesperceived a trip to buy a product, or the preparation of mealsas enjoyable. To the French, being served is negatively valued.They value equality and therefore, ‘do it yourself’ market ispopular in countries such as France where there is low powerdistance.

Is consumerism active in Asian societies? Do Asian consumersvoice their dissatisfaction? How many of you know about the return and refund policy of Mark & Spencer, Giordano, etc? Dothese shops openly advertise their refund policy?