Cross-Cultural Marketing and Advertising

CONSUMER BEHAVIOUR AND SEGMENTATION

Cultural assumptions and behaviour

Hofstede:

Collectivism vs. Individualism

Collectivism (Japan, Iran, Taiwan…)

emphasis in-group needs & goals, beliefs shared with in-group, homogeneous in-groups heterogeneous out groups, norms predict behaviour better than attitudes

Individualism (U.S., G.B., CA, I…)

emphasis self needs, beliefs distinguish from others, homogeneous out-groups heterogeneous in-groups, attitudes predict behaviour better than norms

Hofstede:

Masculinity

Masculinity (Venezuela, Italy, Germany, Australia...)

Ambitious, need to excel, tendency to polarize, live in order to work, big & fast are beautiful, admiration for the achiever, decisiveness

Femininity (Sweden, Thailand, Spain…)

quality of life, serving others, striving for consensus, work in order to live, small and slow are beautiful, sympathy for the unfortunate, intuition

Hofstede:

Power distance

Large (Philippines, Mexico, India, France…)

high dependence needs, inequality accepted, hierarchy needed, superiors often inaccessible, power-holders have privileges, change by revolution

Small (U.S., Netherlands, Australia, Israel…)

low dependence needs, inequality minimized, hierarchy for convenience, superiors accessible, all have equal rights, change by evolution

Hofstede:

Uncertainty avoidance

Strong (France, Belgium, Greece, Portugal…)

anxiety, higher stress, inner urge to work hard, emotions accepted, conflict is threatening, need of consensus, need to avoid failure, need for laws & rules

Weak (U.S. ,Hong Kong, Canada, Singapore)

relaxed, lower stress, emotions not shown, conflict and competition accepted, acceptance of dissent, willingness to take risks, few rules

Hofstede:

Long/short term orientation

High (Hong Kong, Taiwan, Japan, South Korea, Brazil…)

many truths, pragmatic, long-term orientation, acceptance of change, thrift for investment

Low (West Africa, Canada, Pakistan…)

absolute truth, conventional/traditional, short term orientation, concern for stability, quick results expected, spending for today

(Nakata and Sivakumar)

Applications I.

Individualism promotes new product development during the initial or conceptualization phase - nonconformity

Collectivism promotes new product development during the implementation phase -interdependence

Femininity positively affects the conceptualization stage of new product development - supportive climate

Masculinity promotes the implementation stage -goal directedness and formalization

Applications II.

Low power distance facilitates new product development during the conceptualization stage - diverse ideas

High power distance facilitates new product development at the implementation stage -centralized command

Low uncertainty avoidance facilitates the initiation phase - risk taking and minimal controls

Applications III.

High uncertainty avoidance facilitates implementation stage - tight planning and controls

Long term orientation promotes new product development

Short term orientation impedes new product development

Current trends I.

Individualism

+ purchase insurance, have dogs, own a motor home for leisure, read more books, have an answering machine

Masculinity

+ status purchases (watches, jewellery), importance of car engine power, business class travel, confidence in advertising

– partner involvement in car choice, women as main shoppers

Current trends II.

Power Distance

+ confidence in the press, lack of confidence in police, child obedience

Uncertainty Avoidance

+ buying new (vs used) cars, buying precious metals and gems, use of mineral water

– buying stocks, use of internet and other media, eating ice-cream, frozen food, confectionary and snacks

Modern culture

Individualist orientation

Strong emphasis on material achievements – doing/having not being

Strongly economic, “commoditized” time

Tendency to discard past in favour of future orientation

Fairly high degree of utilitarianism

GfK:

Convergence of behaviour…?

The pursuit of well-being

– consumers know what they are supposed to do to live a healthy lifestyle

Life on the go

– consumers live mobile lifestyles, they are not permanently “on the move”, but that international travel, shuttling between work and home, vacations and leisure all lead to mobility of attitude and mind as well as body

…

Pragmatic materialism

we want products which combine a number of positive features (confectionery has to be both tasty and healthy, a

handbag must offer luxury at an affordable price, a pair of shoes must be comfortable and high quality...)

New 4 old media

Word of mouth propaganda

An ageing population

…

In pursuit of relaxation

People try to escape its stresses and strains. The more the standard of living of the middle classes rises in the developing countries, the more consumers pursue the symbols of a successful lifestyle.

Consumers in control

it is consumers who will decide how and which products meet their expectations

Major questions

How do the buyers’ characteristics –cultural, social, personal, and psychological – influence buying behavior?

How does the buyer make purchasing decisions?

Model of Buyer Behaviour:Similarities vs. Differences

Multi-domestic vs. Global

If products, consumer, behaviour, or elements of the marketing mix depend on culture (culture-bound), multi-domesticity is stronger

There exists a continuum from pure global to fully multi-domestic

Socio-cultural environment

Family – Individualism & Collectivism Extent of group/family influence on attitudes and buying

behaviour? Consumer behaviour reflects self-actualize individual identity or

group belonging?

Social class (caste) Is it locally important? Is class belonging demonstrated through consumption?

Sex roles Division of labour? Who makes buying decisions? Who shops?

Age influences Do people know their age? Value of younger and older people in society? Influence processes across age groups? Purchasing power distribution across generations?

Differences in local consumption patterns

Climate

Local regulations

Local taste for similar items

Different use of similar items

Different meaning in context for similar products

Differences in motivations and buying behaviour

Local consumption habits rooted in early childhood, and socialization at school and in the family

Example of consumer behaviour for milk-

based products in France and China

Consumption/cap: 68 litres /year

Consumption of diversified milk-

based products: milk, cheese,

butter, yoghurt, etc.

Daily consumption.

Purchasing decision: basic quality

being well controlled, price is a key

factor

Consumers are used to milk-

based products and receptive to

symbols which emphasize

genuineness, origin, organic

manufacturing (labels, bio, etc.)

Consumption/cap: 3 litres/year

Consumption focused on yoghurt

(80%)

Product perceived as exotic

Purchasing decision: choice of

high quality imported products

perceived as having superior

quality when compared with

domestic products

Consumers are uneducated for

using this kind of product properly

(especially as concerns

conservation …)

France China

'McDonaldization' of society

standard (key benefit = predictable performance);

the same for everybody;

the same everywhere in the world;

the same over time.

Euroconsumers

Culture and life-styles

Different needs and demands

Conservatives vs. modernism

Rational vs. emotional aspects

Low context vs. high context

Organizational Buying

Fewer buyers

Larger buyers

Close supplier-customer relationship

Geographically concentrated buyers

Professional purchasing –standardisation

Ethno Marketing

a strategy that analysis the consumerism and buying behaviour of ethical minority groups, in order to appealing marketing concepts that target those minority groups.

Ay Yildiz

New markets

Ethno Marketing

can be a very effective strategy based also on cultural basis.