Transcript Chapter

Chapter
12
Cross-Culture
Modular: Afjal Hossain
Assistant Professor
Department of Marketing
Patuakhali Science and Technology University
Schiffman G. Leon & Kanuk Lazar Leslie
Consumer Behavior, 8th ed. Ch. 14, p. (471-492)
Learning Objectives:
• How cross-culture satisfies international market?
• How cross-culture is formed?
• How cross-culture is measured in consumer
behavior/ selling?
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006
02
Definition:
• Cross-Culture & Analysis
The culture of two/ more nations. Cross-culture
consumer analysis is the effort to determine to
what extent the consumers of two/ more nations
are similar or different.
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006
03
Basic Research Issues in Cross-Cultural Analysis:
•
•
•
•
•
Difference in language & meaning
Difference in market segmentation opportunities
Difference in consumption patterns
Difference in the perceived benefits of products and services
Difference in economic and social conditions and family
structures
• Difference in marketing research and conditions
• Difference in marketing research possibilities
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006
04
Objectives:
1. Similarities and differences among
people
The greater the similarity between nations, the more feasible
it is to use relatively similar marketing strategies in each
nation. On the contrary, if the cultural beliefs, values &
customs of specific target countries are found to differ widely,
then a highly individualized marketing strategy is indicated for
each country.
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006
05
Objectives:
2.
Time Effects
In USA, 80% of work time spent on task & 20% is used to social
activities.
In India/ Nepal, 50% of each.
In Japan, social time is having tea with peers in the middle of the
day.
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006
06
Objectives:
3.
The growing global middle class
Income equivalent to $5,000/yearly is considered a middle
class people.
4. Acculturation is needed
Acculturation is the dual process: 1st marketer must thoroughly
orient themselves to the values, beliefs & customs of the new
society to approximately position and market their products.
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006
07
Objectives:
4. Acculturation is needed
2nd To gain acceptance for a culturally new product in a
foreign society, they must develop a strategy that encourages
members of that society to modify or even break with their
own traditions.
But in Saudi Arabia, It is illegal to stop people on the streets
because most gatherings of 4/ more people are outlawed.
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006
08
Objectives:
5. Applying research techniques
Language and/ word usages often differ from nation to
nation.
Another issue is the scales of measurement.
In USA, 5/ 7 point scale is adequate but some other countries
10/ 20 point scale are used.
Research facilities i.e. telephone interviewing are not
available in some countries.
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006
09
Importance of Cross-Culture:
 To be multinational
Now marketing of a product is not limited to home country, it goes
to other countries for their future growth.
 Acquiring exposure to other countries
Consumers obtain a ‘taste’ of different cultures from contact with foreign
movies, theater, art and artifacts, through travel, living and working in
foreign countries or even by immigration.
 Country of origin effects
Many consumers associate France with wine, fashon clothing and perfume,
whereas Italy with pasta, furniture, shoes & sports. Japan with camera and
China with consumer electronics.
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006
10
Importance of Cross-Culture:
• Examples:
NAFTA (North American Free Trade Agreement) consisting of
USA, Canada & Mexico provides free market access to these
countries people.
ASEAN (Association of South-East Asian Nations) consisting of
Indonesia, Singapore, Thailand, The Philippines, Malaysia,
Brunei and Vietnam also provides free market access to these
nations.
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006
11
Alternative Multinational Strategies:
1. Global vs Local
segment whether by ‘shared needs and values’ or by ‘national borders’
2. Favoring a world brand
world brand products are manufactured, packaged & positioned in
exactly the same way for each country they are sold. Ex: Pantene & Olay
oil are the 2 major world brand of Procter & Gamble.
3. Adaptive Global Marketing
Ronald McDonald has been renamed Donald McDonald in Japan
because The Japanese language does not contain the letter ‘R’.
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006
12
Framework for assessing multinational strategies:
Communication Strategy
Product Strategy
Standardized product
Localized product
Standardized
Communication
Localized
Communication
Global Strategy:
Uniform product/
Uniform message
Mixed Strategy:
Uniformed product/
Customized message
Mixed Strategy:
Customized product/
Uniform message
Local Strategy:
Customized product/
Customized message
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006
13
Framework for assessing multinational strategies:
When looking for success in a foreign market, it has been
suggested that a company shuld remember 3 P’s:
1. Product
2. Place
3. People
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006
14
Degree of fit between marketing strategies and 3 P’s:
Marketing strategies
3 P’s
Specific Elements
Standardization
Localization
Product
Technology
Culture bound
Reputation
Product perception
High
Low
Sterling
High
Low
High
Poor or unknown
Low
Place
Economy
Partners
Competition
Prosperous
Few
Low
Struggling
Plentiful
Intense
People
Tastes
Sophistication
Segments
Classification
Little preference
High
Few
Industrial/ Consumer durables
High preference
Low
Many
Consumer nondurables
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006
15
Cross-Cultural Psychographic Segmentation:
There are 6 psychographic segmentation variables are:
Segment Name
Descriptions
Strivers
They consider material things extremely important i.e. value wealth, status,
ambition, and power. Ex: Computers
Devout
Have more traditional values like faith, duty, obedience and respect. Least involved
in media/ western brands.
Altruists
Interested in social issues and causes. Generally well educated & older (median
age 44) i.e. Russia & Latin America
Intimates
They are focused on relationship close to home i.e. spouses, family or friends.
Heavy users of media/ talking with others.
Fun Seekers
Youngest group. They value adventure, excitement, pleasure etc. They are focused
on electric media (music).
Creative
Dedicated to technology, knowledge & learning from books, magazines &
newspapers.
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006
16
Marketing Mistakes:
1. Product Problems
Different country has different choices. Ex: Japan
consumers preferred clearer, les sweet iced tea.
The same color often has different meanings in
different cultures.
Ex: Blue – Holland (warmth); Iran (death); India
(purity)
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006
17
Marketing Mistakes:
2. Promotional problems
Promotional message must be consistent with the
language and customs of the particular target society.
The word ‘clock’ in Chinese sounds like the word ‘death’
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006
18
Marketing Mistakes:
3. Pricing & Distribution problems
Japan products will be value less if there are not sufficient middle
men because to reach the products to the consumer they use a lot
of middle men.
But USA just opposing Japan.
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006
19