Chapter 15 The International Consumer

1. Chapter 15The International Consumer Consumer Behavior: A FrameworkJohn C. MowenMichael S. Minor

2. Cross-cultural symbols Values of Japan and the U.S. Back translation Differences in time perception Nonverbal behavior Ethnocentricity and animosity Binational products The matchup hypothesis Standardized global marketing Pattern advertising Key Concepts

3. Introduction • No matter how hard man tries, it is impossible for him to divest himself of his own culture, for it has penetrated to the roots of his nervous system and determines how he perceives the world…People cannot act or interact at all in any meaningful way except through the medium of culture. Hall and Hall (1987), Hidden Differences: Doing Business With the Japanese. New York: Anchor Press/Doubleday, p. 188.

4. Cross-Cultural Use of Symbols • Meaning of symbols differs across cultures. • Symbolic meaning of nonverbal communication can also create problems. • It is important to know the implicit meaning of a symbol when a company begins to market its products or services internationally.

5. Language Values Politics Technology and Material Culture Social Organization Education Religion International Business Cultural Factors

6. The East Asian Consumer • How the societies view the individual • How employees and customers are viewed • Values in Japan are beginning to change with an increased desire for leisure time • Karoshi (death by overwork) still an issue

7. NAFTA has increased U.S.-Mexico trade. U.S. products viewed favorably. Spanish language variations possibly important. The Latin American Consumer

8. The East European Consumer • Western products are in huge demand • Income is less than in western Europe, but productivity is rising after political turmoil in the early 1990s. • Marketing requires an understanding of the different cultures and business practices.

9. The EU contains many nations, cultures, and languages There is no “Euroconsumer” The West European Consumer

10. The African Consumer • Africa is changing rapidly. Africans are often bilingual, speaking their own language and that of former European colonial administrators. • The culture and business climate is strongly influenced by Europe with Francophone (former French colony)countries liking French products. Anglophone countries give high marks to British and German goods. • American products are highly regarded but only the well-to-do can afford them.

11. Translation National Languages and Dialects Time perception Symbols Friendship Etiquette Nonverbal Behavior Country-of-Origin Issues Ethnocentricity Animosity Bi-national products Cross-Cultural Problem Areas

12. Translation • Promotional messages must be accurately translated. The method used to avoid mistakes is back translation. The process involves translating the message back and forth by different translators. In this way differences in meaning can be identified. • Back translation may solve the translation issue, there is the question of whether the context is the same, even if the words are translated accurately. • National languages, local dialects: lingua franca

13. National Languages and Dialects • China, India, and Africa present the greatest linguistic challenges to Westerners. • China is slowly moving towards a common language. • India has even more languages than does China. Coverage of India for marketers is less complicated because the states have three official languages: English, Hindi, and the predominant state language. Advertisers place the same in ad in newspapers in these three languages. • In Africa there are over 1,000 mutually unintelligible languages, making marketing a major challenge.

14. Time perception • Time is precious for Americans : in many other countries, time is much less important. • A study was performed on the accuracy of bank clocks, the average walking speed of pedestrians on a city street, and how long it took postal clerks to sell a stamp in several cultures: • On all three measures, Japan had the most accurate and fastest times. • United States and England were either second or third on each. • Indonesia tended to have the most relaxed pace.

15. Symbols • 7 is unlucky in Ghana, Kenya, lucky in India and the Czech Republic. • 4 is unlucky in Japan, China. • 8, 3, 2 sound good in Hong Kong. • “Wearing a green hat” refers to a cuckholded Chinese.

16. Friendship • In China & Japan friendship is a substitute for a legal system. • We view friendships as more disposable. • Guanxi (personal relationships and pull) are seen as critical.

17. Etiquette • Hugging and kissing • More prevalent in Latin America than here: less prevalent in Asia than here. • Eating habits • Chinese slurp noodles: some Europeans won’t eat any food with their fingers.

18. Non-verbal Behavior • Actions, movements and utterances that communicate. • In some Russian villages, boys dance with chairs until a girl indicates interest. So in Russia, It Takes One to Tango. • Spacing issues • Context

19. Country-of-Origin Issues • Bi-national products • “assembled in X using materials from Y.” • Made in Mexico by a Japanese company. • Ethnocentrism • Assumption that own group is center of universe. • Match-Up Hypothesis • Animosity

20. Ethnocentricity • It is a common tendency for people to: • Interpret others from the perspective of their own group. • Reject those who are culturally dissimilar.

21. Binational Products • The current trend is manufacturing product components in one country and assembling in another, or designing in one and manufacturing in another. • Firms should consider the effects of multiple national origins on product quality evaluations.

22. Matchup Hypothesis • Consumers have preferences for goods that match their notion of the country of origin. • Mexican tequila is good, Russian vodka is good, but not the obverse.

23. Animosity • Some people may prefer not to buy products from a certain country. • Chinese consumers have been found to hold animosity towards Japanese products in general. • Older Mexican consumers are less likely to buy U.S. products than younger Mexicans.

24. Adapting or Standardizing Products and Services • Adapting products to the needs of local consumers is closer to the marketing concept. • Standardizing products may result in savings to the consumer.

25. Tangible Products vs. Services Generally, services and industrial products are less likely than consumer products to need adaptation to local markets.

26. A Conclusion to The Standardization Debate? • Both standardization and adaptation offer customer benefits. • As incomes increase, people in different countries seem to develop more-similar tastes. This is especially true for younger consumers. So more standardization is likely. • The final decision is a management responsibility.

27. Research in International Marketing • To identify taste preferences, companies must engage in marketing research across cultures. • A main problem is how to standardize measures of consumption values. • Technical problems (e.g. the ability to do mail surveys) are also important.

28. Country vs. Segment Targets Two Approaches to Global Segmentation: • Countries • Market Segments

29. Country vs. Market Targets • Managers of firms doing business in several countries can choose two broad segmentation approaches: Country segments or market segments. • In the the first approach, Brazil is viewed as a target market segment. • Using the second approach, although Brazil is the physical location of a large group of consumers, the important variables for segmentation are commonalities in needs and wants among consumers across nationalities.

30. Managerial Implications • Positioning. The origin of the product should usually be clear to help differentiate it from its competitors. • Research. Firms must perform cross-cultural research before venturing into another country. • The Internet has made international marketing research easier, but it has introduced another set of issues: • Penetration of the Internet varies from country to country. • Marketers using the Internet restrict themselves to those with internet access!

31. Implications continued… • Marketing Mix. Products should be appropriate for local conditions. • A recent study showed that men in Eastern Europe are more fashionable than women because men have been more exposed to outside influences. So male clothing should be more flamboyant than female clothing. • Segmentation. The main segmentation issue is determining whether national borders are useful segmentation variables. • Concentrating on cross-border segments that share commonalities may make more sense.