Prince Chapter One

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Consumer Cosmopolitanismin the Age of Globalization


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Consumer Cosmopolitanismin the Age of Globalization

Editor

Melvin Prince

Southern Connecticut State University


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Consumer Cosmopolitanism in the Age of Globalization

Copyright Business Expert Press, 2012.

All rights reserved. No part of this publication may be reproduced,

stored in a retrieval system, or transmitted in any form or by any

meanselectronic, mechanical, photocopy, recording, or any other

except for brief quotations, not to exceed 400 words, without the prior

permission of the publisher.

First published in 2012 by

Business Expert Press, LLC

222 East 46th Street, New York, NY 10017www.businessexpertpress.com

ISBN-13: 978-1-60649-364-9 (paperback)

ISBN-13: 978-1-60649-365-6 (e-book)

DOI 10.4128/9781606493656

Business Expert Press Consumer Behavior collection

Collection ISSN: 2163-9477 (print)

Collection ISSN: 2163-937X (electronic)

Cover design by Jonathan Pennell

Interior design by Exeter Premedia Services Private Ltd.,

Chennai, India

First edition: 2012

10 9 8 7 6 5 4 3 2 1

Printed in the United States of America.


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Abstract

Cosmopolitans are individuals with a distinctive kind of extended national

and international orientation, a global vision and sense of belonging to

the world. Tese people are sophisticated and importantly engaged in

the cultures outside of local geographical boundaries. Information about

cosmopolitan consumerstheir origins, values, media usage, and buyer

behaviorpresented in this book will be used to great practical advantage

by marketing educators as well as by practicing marketers. Tis unique

book lls a knowledge gap that has long been overlooked largely because

other related marketing areas have overshadowed and overlooked thenotion of cosmopolitan consumers. Until the publication of this volume,

there has been no single authoritative source that directly and comprehen-

sively covers the eld of consumer cosmopolitanism. Moreover, through

original essays by an all-star cast of contributors, the reader is introduced

to a powerful new approach to marketing, eclectically packed with novel

ideas and insights that noticeably advance the marketing eld and bring

it more fully into the age of globalization.

Keywords

acculturation, animosity, beliefs, consumers, cosmopolitan, culture,

consumption, customs, ethnocentrism, globalization, social identity,

international, locals, materialism, national identity, purchase behavior,

relationship marketing, market segmentation, tastes, values, xenocentrism


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About the Editor

Melvin Princeholds a PhD from Columbia University. He is a professor

of marketing at Southern Connecticut State University. He teaches

graduate courses in marketing research, consumer behavior, and product

management. Past academic appointments include teaching and research

at Brandeis University, Fordham University, Pace, Iona College, and

Quinnipiac University.Dr. Prince is a member of the American Marketing Association,

American Statistical Association, Association for Consumer Research,

and the Society for Consumer Psychology, a division of the American

Psychological Association.

He has delivered addresses before the Advertising Research Founda-

tion, the Association of National Advertisers, and the Market Research

Council. He has written four books, including Consumer Research for

Management Decisions. In his latest, he a co-editor of a book entitled Lead-ing Edge Marketing Research: Principles and Practices for the 21st Century

(Sage Publications). His articles have previously appeared in such journals

as Journal of Business Venturing, Journal of Economic Psychology,Business

Horizons,Business Strategy Review,Journal of Advertising, and Journal of

Advertising Research.

A major theme of his writings include cutting-edge issues in consumer

behavior and research methodology, such as the money attitudes of men

and women, reliability of positioning studies, brand prestige measure-

ment, innovative approaches to focus groups, and potentials of mixed

methods studies. He is a member of the editorial board of theJournal of

Business Research.


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Contents

About the Contributors..........................................................................xi

Acknowledgments................................................................................ xvii

Preface ................................................................................................ xix

Introduction: Te Changing World and Cosmopolitan Consumers...........xxi

Part I Globalization and the Cosmopolitan Consumer ........... 1Chapter 1 Cosmopolitanism as a Journey: Te Construct and

Dynamics of Change .........................................................3

Hugh M. Cannon and Attila Yaprak

Chapter 2 Te Global Nexus of ransversal Values and

Cosmopolitan Consumers: Understanding the

Intersection of Values and Consumers that Cross Over

Cultures, Contexts, and Countries ...................................29

J. Walker Smith

Part II What Are Cosmopolitans Made of ? ............................ 49

Chapter 3 Becoming and Being a Cosmopolitan Consumer .............51

Mark Cleveland and Michel Laroche

Chapter 4 Relative National Identity and Consumer Product

Evaluations ....................................................................101

Aditi Grover and Philip Ramsey

Chapter 5 Cosmopolitans Go Shopping: A PhenomenologicalInquiry into How Cosmopolitans Relate to Global

and Local Brands ...........................................................119

Siok Kuan ambyah and Darius Chen

Part III Consumer Cosmopolitans:

Te New Marketing Role .......................................... 141

Chapter 6 Segmentation Strategies for Cosmopolitan Consumers ....143

Petra Rieer


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x CONTENTS

Chapter 7 Communications and Cosmopolitanism ........................163

Robert HalsallChapter 8 Relationship Marketing to Cosmopolitan Consumers .....187

Melike Aktas Yamanoglu and Besime Pnar Ozdemir

Notes..................................................................................................213

References ...........................................................................................233

Index .................................................................................................261


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About the Contributors

Hugh Cannonis the Adcraft/Simons-Michelson Professor of Marketing

and Advertising at Wayne State University. He holds PhD and MBA

degrees from New York University and an AB from Brigham Young

University. Prior to his present position, he taught at Northwestern

University, Miami University of Ohio, and New York University, along

with visiting assignments at Brigham Young University, Lviv School ofManagement (Ukraine), Ludwig Maximilian University (Germany),

Sabanci University (urkey), Federal University of Santa Catarina

(Brazil), and Kyonggi University (Korea). He is a frequent contributor to

marketing literature, focusing primarily on topics related to advertising

and media strategy, marketing knowledge formulation and transfer, and

international marketing. He was recipient of the American Academy of

Advertisings Excellence in Research Award for lifetime research contribu-

tions in 2000. He currently serves as Dean of Fellows of the Associationfor Business Simulations and Experiential Learning.

Darius Chen is currently a regional business development analyst with

alisman Energy, an international upstream oil and gas company with

substantial exploration and production operations in North America, the

North Sea, and Southeast Asia. Prior to joining alisman Energy, Darius

spent four years as a management consultant with Schlumberger Busi-

ness Consulting, traveling extensively across Southeast Asia, Europe, and

the Middle East. Darius graduated with honors from the NUS BusinessSchool, the National University of Singapore.

Mark Cleveland (PhD, MSc, BComm) is an Associate Professor of

Marketing (promoted with enure July 2011). In July 2010, he was

appointed Dancap Private Equity Professor in Consumer Behavior.

Dr. Cleveland conducts research into several areas of marketing, with

a special focus on cross-cultural consumer behavior, cosmopolitanism,

globalization and culture, ethnic identity and acculturation, culture and

decision-making, international market segmentation, services marketing,


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xii ABOUT THE CONTRIBUTORS

green marketing, gift-giving, advertising, as well as branding and posi-

tioning. Currently Dr. Cleveland teaches courses in marketing research,consumer behavior, as well as an advanced seminar in consumer research.

He formerly taught principles of marketing. Dr. Cleveland created and

now oversees the consumer behavior area of the DAN Management

Program.

Prior to joining the University of Western Ontario in 2005,

Dr. Cleveland taught at the John Molson School of Business (Concordia

University, Montral) and at HEC-Montral (Universit de Montral). o

date, he has published 21 articles in leading journals, as well as a book on

the topic of global consumer culture. His articles have or will soon appear

in such journals as the Journal of International Marketing, the Journal

of Business Research, the International Marketing Review, Psychology &

Marketing, theJournal of Economic Psychology, the International Journal of

Advertising, the International Journal of Intercultural Relations, theJournal

of Consumer Marketing, theJournal of Strategic Marketing, theJournal of

Consumer Behavior, the Canadian Journal of Administrative Sciences, and

theJournal of International Consumer Marketing.

Dr. Clevelands research has been presented at 22 conferencesspanning 4 continents. o date, he has conducted research on consumers

living in the Americas (Canada, the United States, Mexico, and Chile),

Europe (United Kingdom, Sweden, the Netherlands, Hungary, and

Greece), and Asia (India, aiwan, Korea, Japan, Tailand, Iran, Lebanon,

and urkey). In 2010, Dr. Cleveland joined the review board for the

International Marketing Review. He serves as an ad-hoc reviewer for

many academic journals. He currently sits on the University of Western

Ontarios Non-Medical Ethical Research Board, as well as on many

departmental committees.

Dr. Cleveland has received numerous awards, including the Benjamin

Franklin Parr Fellowship(for scholarly excellence), the Dancap Private Equity

Faculty Fellowship(for scholarly excellence), theJoe Kelly Graduate Award

(for best thesis/dissertation at the John Molson School of Business), the Best

Paper Award for the International Journal of Advertising, the Emerald Literati

Network Award of Excellence,and theop-10 Best Reviewers of 20072010

for the International Marketing Review. He also gave the valedictorian

address at Concordia Universitys 2006 joint convocation ceremony.


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ABOUT THE CONTRIBUTORS xiii

Aditi Grover is an Assistant Professor at Plymouth State University,

New Hampshire since 2008. She received her PhD in marketing fromthe Marshall School of Business, University of Southern California in

2008. She previously received her MBA in 1995 and has also spent a

few years in the industry. She loves teaching and interacting with her

undergraduate and graduate marketing students. Dr. Grovers current

research focus is on the adoption of new behaviors, social media tools

in the marketing world, and advertising. She has presented her work in

various conferences, both in oral and written formats.

Robert Halsall is Senior Lecturer in the Department of Communica-

tion, Marketing and Media, Aberdeen Business School, Robert Gordon

University, United Kingdom. His research interests encompass critical

management and organizational studies, critical, cultural and media the-

ory, particularly in the German tradition, and latterly the work of Peter

Sloterdijk. Recent publications include articles on corporate cosmopol-

itanism, nation branding, and cultural models in the global nancial

crisis.

Michel Laroche (Royal Bank Distinguished Professor, Concordia

University) holds a PhD (Columbia), a DSc honoris causa (Guelph),

is a Fellow of the Royal Society of Canada, American Psychological

Association, Society for Marketing Advances and Academy of Market-

ing Science. He was named the 2000 Concordia University Research

Fellow, received the 2000 Jacques-Rousseau Medal for the best multi-

disciplinary researcher in Canada, the fth Living Legend of Marketing

Award (2002), and the Sprott Leader in Business Research & Practice

Award (2003). He has published more than 140 journal articles,

including in theJournal of Consumer Research, Journal of the Academy

of Marketing Science, Journal of Retailing, and Journal of Advertising

Research; 140 papers in conference proceedings, 26 textbooks, and sev-

eral book chapters. His research interests include consumer behavior,

online marketing, services marketing, neuromarketing, and advertis-

ing. He is the Managing Editor of theJournal of Business Research, and

is a member of the Board of Governors of the Academy of Marketing

Science.


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ABOUT THE CONTRIBUTORS xv

She teaches marketing principles, international marketing research, and

statistics for marketing research.

J. Walker Smith is Executive Chairman of Te Futures Company, the

leading global foresights and futures research consultancy that is part of

the Kantar Group of WPP, with a mission of unlocking new sources of

growth for clients. Walker has been described by Fortune magazine as

one of Americas leading analysts on consumer trends, and he consults

with clients globally about trends, futures and marketing, and advertis-

ing strategy. He is the co-author of four highly regarded books, including

Rocking the Ages(1997), a book about generations now regarded as one ofthe standards in the eld and included in a list of the top 100 marketing

books, and Life Is Not Work,Work is Not Life(2001), selected by the Wall

Street Journalas one of the 10 best worklife books of 2001. He is a much

sought-after speaker, a columnist for Marketing Management, a blogger

for Branding Strategy Insider, and a former weekly radio commentator

for almost 10 years on City Views, a public radio show about cities and

community life. He is a 2012 inductee into the N.C. Advertising Hall

of Fame. Walker holds a doctorate in Mass Communication from the

University of North Carolina at Chapel Hill.

Siok Kuan ambyahis a Senior Lecturer in the Marketing Department

at the National University of Singapore. A consumer researcher by train-

ing, Dr. ambyahs research and teaching interests include consumption

and identity, ethnicity, gender, luxury consumption, consumer culture,

consumer values, cross-cultural consumer behavior, and the consumption

of place. She has published in various leading marketing and quality of

life research journals, and co-authored several books on happiness and

wellbeing. In addition to academic research, she has applied qualitative

research methods in consulting projects with numerous companies in

Singapore.

Melike Aktas Yamanogluis Assistant Professor at the Faculty of Com-

munication, Department of Public Relations and Advertising, Ankara

University (urkey). She graduated from Nottingham Business School,

MA in Marketing in 2002 with thesis titled as Relationship Marketing

in Professional Services: Advertising AgencyClient Relationships in


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xvi ABOUT THE CONTRIBUTORS

urkey and Ankara University Institute of Social Sciences PhD Program

in 2008 with a thesis Experiences of Poor Youth Consumers Living in aConsumer Society. She has been teaching marketing, consumer behavior

in the undergraduate program and marketing theory, sociology of

consumption and consumer culture, and theories of consumption in the

postgraduate program. Her research interests include consumer culture

and consumption relationships in modern societies; class distinctions

of consumption practices; interpersonal communication; relationship

marketing and public relations. She is one of the co-editors of refereed

academic journal communication: research published by Communica-

tion Research Center in Ankara University.

Attila Yaprak is Professor of Marketing and International Business at

Wayne State University and a member of Sabanci Universitys Network

Faculty (urkey). A former Executive Secretary of the Academy of Inter-

national Business, he has taught or had research visits to the University

of Oulu (Finland), Lyon Business School (France), Ludwig Maximilian

University (Germany), Autonomous University of Barcelona (Spain),

Lviv School of Management (Ukraine), Jiang Xi College for International

rade (China), the rade raining Center (Philippines), and the University

of Michigan and Michigan State Universities (United States of America).

His work has appeared in the Journal of International Business Studies,

Journal of the Academy of Marketing Science,Journal of International Mar-

keting, Journal of Business Research, Journal of Advertising,Management

International Review,International Marketing Review,International Busi-

ness Review,Political Psychology,andthe Journal of World Business,among

other journals.Winner of research grant awards from the US Department

of Education, National Science Foundation, and the US Small BusinessAdministration, he is also winner of multiple teaching awards including

the Outstanding Marketing Professor Award (the Academy of Marketing

Science) and the Presidents Award for Excellence in eaching (Wayne

State University). He is a frequent contributor to Executive Development

programs in the United States and urkey and has served as panelist on

research grant panels in the United States, Canada, and Israel.


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Acknowledgments

I must convey my sincere thanks to the series editor Naresh Malhotra.

Fortunately, his creative marketing imagination and intense passion for

intellectual innovation inspired this timely and authoritative volume.

His observations and guidance at the very outset substantially enhanced

the work.

Special thanks are extended to the invisible college of experts who con-tributed most authoritative book chapters. Tey are not only rst rank

scholars and consultants, but are masterful writers. I salute their generosity

in sharing their specialized knowledge of consumer cosmopolitanism.

My boundless appreciation goes to my loving wife Sheila. She has

been my constant partner in pursuing this work, and an invaluable source

of endless and joyous inspiration. Her counsel in framing the work,

promoting the book concept, securing contributors, arranging milestones

for the manuscript, and numerous other details made a huge differencein the outcome.

It has been a great pleasure working with David Parker, publisher

and founder of the Business Expert Press. He understands the need for a

supportive and permissive environment for writers in his fold. He both

inspires and promotes excellence. Hopefully, the present work will justify

his faith in this arduous and risky project.

Cindy Durand, Production Liaison at Business Expert Press, has been

generous with advice in the preparation and submission of the manu-

script. I have never before had such a positive and smooth experience in

the book editing and production process, as the one she has provided.

Finally, I owe profound thanks to the intellectual legacy of my

mentors at Columbia UniversityProfessors Merton and Lazarsfeld

for their brilliant classical works in the areas of cosmopolitan behavior

and consumer motivation.


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Preface

odays emerging global culture is tied to no place or period.

Anthony D. Smith

I expect that the information about cosmopolitan consumers presented

in this book will be used to great practical advantage by marketers to

improve the breadth of their decisions. Tis book lls a knowledge gapthat has long been overlooked largely because other related marketing

areas have overshadowed and overlooked the notion of cosmopolitan

consumers.

In this age of globalization, much attention in marketing has been

given to such important matters as country-of-origin effects on buying,

consumer ethnocentrism, and strong consumer preferences for domestic

products, tourism marketing, prestige branding, lifestyle segmentation,

communications and emerging media, and marketing to world-mindedconsumers. Each of the afore-mentioned is at the periphery of consumer

cosmopolitanism marketing. However, until the publication of this

volume, there has been no single authoritative source that directly and

comprehensively covers the eld.

Te roots of modern consumer cosmopolitanism, in general, may be

traced to the landmark essay by Robert K. Merton.1In this work, cosmo-

politans were dened as individuals with a distinctive kind of extended

national and international orientation and sense of belonging. Tese

people whom he identied were viewed as sophisticated and importantly

engaged in the world outside of local geographical boundaries.

By the twenty-rst century scattered writings on consumer cosmo-

politanism began to appear unexpectedly in marketing journals, academic

conference proceedings, working papers, and the like. It appeared that

these authors were generally unaware of the important connections

between their works and those of others, and were, so to speak, working

in the dark. Additionally, key subtopics in consumer cosmopolitanism

were ignored and entirely unaddressed in the literature.


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xxii INTRODUCTION

How does marketing to consumer cosmopolitans t into

overall marketing strategies? In which directions must organizations change to adapt to

consumer cosmopolitanism?

Contributors then developed and submitted chapter abstracts on topics

of their preference and expertise. Contributors who were selected were

free to develop their work in ways that they felt made the best overall

presentation of the state of specialized knowledge in the eld.

Our contributors were provided with no single paradigm that might

inhibit the richness of their creative efforts. Rather, once the topic was

agreed upon, contributors were free to develop their own individual

essays from their particular frames of reference. Consequently, linkages

between chapters were not as explicit as they might have been. For the

readers sake, I have analyzed these essays and searched for underlying

themes that map the eld of consumer cosmopolitanism. Tis will

assist the reader in understanding the work as a whole, and selecting

those elements that best serve ones unique interests. Te structure of

emerging underlying themes in these chapters is presented rst. Tenthe discussion shifts to a theme that is a signicant knowledge gap,

largely overlooked by the research literature: cosmopolitan consumers

and their inuence networks. Finally, suggestions are given to the reader

as to how the book may be best used either as a student, academician,

or practitioner.

On the one hand, we can understand the cosmopolitan consumer

psychologically, in terms of the inner disposition. On the other hand,

there is the consumer who is a bearer or carrier of the social and

cultural milieu. Tis formulation, illustrated in Figure 1, bridges out

to several themes, which are dened in the glossary, appended to this

chapter.

Te individual consumer may be analyzed in terms of motivations

(materialism or cross-cultural values), the self (self-concept or self-esteem),

and lifestyle (group identity or behavior prole). Te consumer as a social

being may be analyzed by social class position (status symbols) and by

cultural background (ritual or cultural capital).


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INTRODUCTION xxiii

Figure 1. Cosmopolitan consumer themes.

Individual domain

Motivation Lifestyle

Materialism Cross-culturalvalue

Self-

Self

Self- Group Behavior

profileconcept esteem identity

Social-cultural domain

Social class CultureStatus Taste

culturesRitual

symbolsCulturalcapital

We will now discuss some key issues associated with these cosmopoli-

tan consumer themes. In the main, the nature and importance of each of

the themes will be readily understood by the reader as he or she journeys

through this book.

Te book describes cosmopolitanism as apostmaterialist disposition.

No signicant connection is seen between cosmopolitanism and mate-

rialism. Social identity is viewed as a manifestation of the way culture is

incorporated into the self-concept. Xenocentrism may be the result oflow self-esteem. Individualism, as opposed to group identity, promotes

cosmopolitanism. aste cultures and high-cultural capital products may

reect cosmopolitanism.

Cultural capital may be viewed or cited as a marker for class status.

Cultural capital involves esoteric knowledge of manners, taste, and aes-

thetic values. High status individuals tend to be cultural ominivores with

extremely broad tastes. Mobility builds cultural capital. Cultural capital

forms include educational credentials, literary canons, cultural activities,speech modalities, cultural choices, and possession of cultural goods.

raditional assumptions about cosmopolitanism and materialism are

investigated. Contrary to popular belief, the two concepts have no clear

associationcosmopolitans may or may not be materialist.

Cosmopolitan languages, such as English, give cosmopolitan status to

the user. Communications exposure includes the presentation of rituals

which determine which places are presented in the media and how they

are presented.


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INTRODUCTION xxv

in specic cosmopolitan traits. Finally, Part III, Consumer Cosmopolitans:

Te New Marketing Role, consists of three chapters dealing with market-ing strategies for global and local brands. Tus, the general ow of dis-

cussion in this book is from social and economic worldwide trends that

shape cosmopolitanism, to cosmopolitan traits and motivations, to issues

that are the bases of marketing plans and actions.

All the chapters in Part I deal with the roots of cosmopolitanism.

In Chapter 1 by Cannon and Yaprak we learn that cosmopolitanism is

premised on exposure to the complexities of other peoples and cultures,

and the search for authenticity of cosmopolitan experiences. In Chapter 2

Walker Smith shows that the key dynamic in todays marketplace is the

tension between global and local outlooks, and identities which affect the

cosmopolitan view. In Part II, there is a general recognition that cosmo-

politanism is ingrained as an important aspect of the consumers iden-

tity. In the opening section of the chapter, by Cleveland and Laroche,

cosmopolitanism is viewed as a growing global network of social rela-

tionships. In the following chapter by Grover and Ramsey a new con-

struct of Relative National Identication is advanced, which highlights

residual identication with the country-of-birth. Chapter 5, by ambyahand Chen, consists of an analysis of blurring national tastes and prefer-

ences. All these chapters provide insights into cosmopolitan attitudes and

consumption behaviors concerning global and local brands.

Te nal section, Part III, contains three chapters dealing with

targeting, communicating, and engaging with cosmopolitan consumers.

Te opening chapter in this section, by Rieer, discusses segmentation

strategies for cosmopolitan consumers: their proles and psychographics.

Chapter 7, by Halsall, and Chapter 8 by Yamanoglu and Ozdemir,

address marketing efforts to interact with cosmopolitan segments.

Halsall concentrates on forms of media that can bring users to a cos-

mopolitan perspective and retain them as a target audience. Yamanoglu

and Ozdemir discuss relational strategies that articulate corporate objec-

tives and cosmopolitan consumer motivations. All chapters in Part III

are thus concerned with cosmopolitan-oriented marketing practice. Te

reader will note that strategic directions given in Part III are based on

concepts and facts that derive from earlier parts.


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xxvi INTRODUCTION

Tis book represents a large undertaking. o my knowledge, it is

the only comprehensive and authoritative source on the topic of thecosmopolitan consumer. For those who seek additional resources,

consider searching through the books copious references section.

It is hoped that at some future dates and times, conferences, work-

shops and seminars in the area will be held for academicians, their

students, and marketing practitionersto explore still other facets of this

intriguing eld.

APPENDIX A: GLOSSARY OFTHEMATIC TERMS

Behavior prolethe consumers allocations of income that reect

patterns of choices of products, services, and activities.

Cross-cultural valuesa set of value dimensions that may be used to

survey consumers, so as to rate, compare and contrast countries.

Cultural capitala set of distinctive and socially rare tastes and practices

that admits a person into the realm of the upper class.

Group identitya set of meanings that dene a person, based on a role

as a member of a particular group.

Materialismthe importance consumers attach to worldly possessions.

Rituala set of multiple symbolic behaviors that occur in a xed

sequence and that tend to be repeated periodically.

Self-conceptthe beliefs a person holds about his or her own attributes

and how he or she evaluates these qualities.

Self-esteemthe positivity of a persons self-concept.

Status symbolsexpensive products that are acquired in order to let

others know that one can afford them.

aste culturesa group of consumers who share aesthetic and intellectual

preferences.

Documents

Prince Chapter One