Chapter14crosscultural Consumer Behavior 091011084927 Phpapp02

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14 - 2Copyright 2007 by Prentice Hall

Chapter Outline

The Imperative to Be Multinational

Cross-Cultural Consumer Analysis

Alternative Multinational Strategies Cross-Cultural Psychographic

Segmentation


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The Imperative to Be

Multinational

Global Trade Agreements

EU

NAFTA

Acquiring Exposure to Other Cultures

Country-of-origin Effects


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Table 14.1 The Worlds Most

Valuable Brands

1. Coca-Cola

2. Microsoft

3. IBM

4. GE

5. Intel

6. Disney

7. McDonalds8. Nokia

9. Toyota

10.Marlboro
http://www.ars-group.com/admeas/wcd.htm


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Most of these

brands offerdifferent Web

sites for each

country.

weblink
http://www.cocacola.com/worldwide/flashIndex1.htmlhttp://www.cocacola.com/worldwide/flashIndex1.html


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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.


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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 acountry

Peoples Republic of China has some animosity to

Japan

Jewish consumers avoid German products

New Zealand and Australian consumers boycott

French products



Swiss Watches



More Swiss Watches



Cant Beat the Engineering

The American Twist



This U.S.

GovernmentWeb site helps

those who

want to buy

USA products.

weblink
http://www.buyusa.com/page/my_gtn/splash.asphttp://www.buyusa.com/page/my_gtn/splash.asp



National Identity

Figure 14.2



Cross-Cultural

Consumer

Analysis

The effort to

determine to what

extent theconsumers of two

or more nations are

similar or different.



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 similarmarketing strategies

Marketers often speak

to the same types of

consumers globally

Issues



Discussion Questions

Are people becoming more similar?

Why or why not?



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




Analysis

Similarities and

differences among

people

The growing global


market

Acculturation

Growing in Asia,

South America, and

Eastern Europe

Marketers should

focus on thesemarkets

Issues




Analysis

Similarities and

differences among

people

The growing global


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



The iPod has

global appealto the young

market.

weblink
http://www.apple.com/ipod/http://www.apple.com/ipod/




Analysis

Similarities and

differences among

people

The growing global


market

Acculturation

Marketers must

learn everything that

is relevant about the

usage of their

product and productcategories in foreign

countries

Issues



Table 14.6 Basic Research Issues in

Cross-Cultural AnalysisFACTORSDifferences 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 dramaticallyin 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.


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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 tocountry.

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.


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WorldBrands

Products that are

manufactured,

packaged, and

positioned the sameway regardless of the

country in which they

are sold.


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Are Global Brands Different?

According to a surveyyes.

Global brands have:

Quality signal

Global myth

Social responsibility


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Multinational Reactions to Brand

Extensions

A global brand does not always have

success with brand extentions

Example Coke brand extensionCoke

popcorn

Eastern culture saw fit and accepted the

brand extension

Western culture did not see fit


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Adaptive Global Marketing

Adaptation of advertising message tospecific values of particular cultures

McDonalds uses localization

Example Ronald McDonald is DonaldMcDonald in Japan

Japanese menu includes corn soup andgreen tea milkshakes

Often best to combine global and localmarketing strategies


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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?


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Alternative Multinational Strategies:

Global Versus Local

Framework for Assessing Multinational

Strategies

Global

Local

Mixed


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Table 14.8 A Framework for Alternative

Global Marketing Strategies

PRODUCT

STRATEGY

COMMUNICATON

STRATEGY

STANDARDIZEDCOMMUNICATIONS

LOCALIZEDCOMMUNICATIONS

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


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Cross-Cultural Psychographic

Segmentation

The on ly ul t imate truth possib le is that

humans are both deeply the same and

obviously d i f ferent .


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Table 14.10 Six Global Consumer

Segments

Strivers

23%

Altruists

18%

Devouts

22%

Fun Seekers

12%

Creatives

10%

Intimates

15%

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