Cross-Cultural Consumer Behavior: An International Perspective

1. Cross-Cultural Consumer Behavior: An International Perspective CHAPTER THIRTEEN

2. Chinese Country of Origin Effect In the U.S.?

3. Learning Objectives • To Understand the Importance of Formulating an Appropriate Multinational or Global Marketing Strategy. • To Understand How to Study the Differences Among Cultures While Developing Marketing Strategies. • To Understand How Consumer-Related Factors Impact a Firm’s Decision to Select a Global, Local, or Mixed Marketing Strategy. • To Understand How Lifestyle and Psychographic Segmentation Can Be Used. Chapter Thirteen Slide

4. The Imperative to Be Multinational • Global Trade Agreements • EU • NAFTA • Winning Emerging Markets • Acquiring Exposure to Other Cultures • Country-of-origin Effects Chapter Thirteen Slide

5. The Best Global Brands - Table 13.1 • Coca-Cola • IBM • Microsoft • GE • Nokia • Toyota • Intel • McDonald’s • Disney • Google Chapter Thirteen Slide

6. Discussion Questions • What challenges may Toyota have faced to get their status as one of the top brands? • What might they have done right in their marketing strategy to achieve this status? Consider the 4Ps. • What role did culture play in the recent Toyota recall situation and consumer attitude? Chapter Thirteen Slide

7. Country of Origin Effects: Positive • Many consumers may take into consideration the country of origin of a product. • Country-of-origin commonly: • France = wine, fashion, perfume • Italy = pasta, designer clothing, furniture, shoes, and sports cars • Japan = cameras and consumer electronics • Germany = cars, tools, and machinery Chapter Thirteen Slide

8. Country of Origin Effects: Negative • Some consumers have animosity toward a country • People’s Republic of China has some animosity to Japan • Jewish consumers avoid German products • New Zealand and Australian consumers boycott French products Chapter Thirteen Slide

9. What’s Going on Here? Chapter Thirteen Slide

10. Other Country-of-Origin Effects • Mexican study uncovered: • Country-of-design (COD) • Country-of-assembly (COA) • Country-of-parts (COP) Chapter Thirteen Slide

11. Conceptual Model of COD and COMFigure 13.2 11 Chapter Thirteen Slide

12. Cross-Cultural Consumer Analysis The effort to determine to what extent the consumers of two or more nations are similar or different. Chapter Thirteen Slide

13. Similarities and differences among people The growing global middle class The global teen market Acculturation The greater the similarity between nations, the more feasible to use relatively similar marketing strategies Marketers often speak to the same “types” of consumers globally Cross-Cultural Consumer Analysis Issues Chapter Thirteen Slide

14. Discussion Questions • Are people becoming more similar? • Why or why not? Chapter Thirteen Slide

15. Comparisons of Chinese and American Cultural Traits - Table 13.2 • Chinese Cultural Traits • Centered on Confucian doctrine • Submissive to authority • Ancestor worship • Values a person’s duty to family and state • American Cultural Traits • Individual centered • Emphasis on self-reliance • Primary faith in rationalism • Values individual personality Chapter Thirteen Slide

16. Similarities and differences among people The growing global middle class The global teen market Acculturation Growing in Asia, South America, and Eastern Europe Marketers should focus on these markets Cross-Cultural Consumer Analysis Issues Chapter Thirteen Slide

17. Similarities and differences among people The growing global middle class The global teen 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. Cross-Cultural Consumer Analysis Issues Chapter Thirteen Slide

18. Similarities and differences among people The growing global middle class The global teen market Acculturation Marketers must learn everything that is relevant about the usage of their product and product categories in foreign countries Cross-Cultural Consumer Analysis Issues Chapter Thirteen Slide

19. Research Issues in Cross-Cultural Analysis Table 13.8 Chapter Thirteen Slide

20. Table 13.8 (continued) Chapter Thirteen Slide

21. Alternative Multinational Strategies: Global Versus Local • Favoring a World Brand • Are Global Brands Different? • Multinational Reactions to Brand Extensions • Adaptive Global Marketing • Frameworks for Assessing Multinational Strategies 21 Chapter Thirteen Slide

22. World Brands Products that are manufactured, packaged, and positioned the same way regardless of the country in which they are sold. Chapter Thirteen Slide

23. Why Does One of the World’s Most Highly Regarded Wristwatch Brands Use a Single Global Advertising Strategy (Only Varying the Language)? Chapter Thirteen Slide

24. They Speak to Them in Their Own Language to Maximize their “Comfort Zone.” Chapter Thirteen Slide

25. Cross-Border Diffusion of Popular Culture Figure 13.6 Chapter Thirteen Slide

26. Are Global Brands Different? • According to a survey – yes • Global brands have: • Quality signal • Global myth • Social responsibility Chapter Thirteen Slide

27. Multinational Reactions to Brand Extensions • A global brand does not always have success with brand extensions • Example Coke brand extension – Coke popcorn • Eastern culture saw fit and accepted the brand extension • Western culture did not see fit Chapter Thirteen Slide

28. Adaptive Global Marketing • Adaptation of advertising message to specific values of particular cultures • McDonald’s uses localization • Example Ronald McDonald is Donald McDonald in Japan • Japanese menu includes corn soup and green tea milkshakes • Often best to combine global and local marketing strategies Chapter Thirteen Slide

29. Negative Externalities of Global Business • Global Products: Invasive Species/Environment • Japanese Beetle: New Jersey (1916) • Asian Carps (Arkansas Fish Farms in the 60s/70s) • Termites (New Orleans 40s/50s) • African Honey Bee (southern US 90s/now) • Kudzu (South 30s to50s) Chapter Thirteen Slide

30. Framework for Assessing Multinational Strategies • Global • Local • Mixed Chapter Thirteen Slide

31. COMMUNICATON STRATEGY STANDARDIZED COMMUNICATIONS LOCALIZED COMMUNICATIONS 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 A Framework for Alternative Global Marketing Strategies - Table 13.10 PRODUCT STRATEGY Chapter Thirteen Slide

32. Cross-Cultural Psychographic Segmentation • According to the book, the only ultimate truth possible is that humans are both deeply the same and obviously different. • How does such a belief compare to.. • Confucianism: never stated whether man was born good or evil; rather 'By nature men are similar; by practice men are wide apart' • Protestant belief: Human nature was created good, but through the fall became sinful, that is, fundamentally self-centered Chapter Thirteen Slide

33. Six Global Consumer Segments Chapter Thirteen Slide

34. Chew on This • Would everyone becoming more similar across the globe be a good thing? Chapter Thirteen Slide