Marketing Gericht Op Azie - Open Boek Tentamen Print

Marketing gericht op Azië Tikra B.V. 2012 - 2013

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Inhoudsopgave

Chapter 1: Consumer Behavior Across Cultures

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3

Chapter 2: Values and Culture

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6

Chapter 3: Convergence and Divergence in Consumer Behavior

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11

Chapter 4: Consumer attributes

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15

Chapter 5: Social Processes

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20

Chapter 6: Mental Processes

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24

Chapter 7: Culture, Communication and Media Behaviour

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28

Chapter 8:Consumer Behavior Domains

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30

Marketing tentamenvragen

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33

Marketing herkansingsvragen

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34


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International Markets and Market Research, Markets and Segmentation in an International Context

Markets and Market Segments: A market consists of people with wants and needs, money to spend, and the willingness to spend money on those wants and needs.

- International markets vary due to several factors. Marketers consider these factors when developing international segmentation strategies.

Market segmentation consists of identifying all potential customer groups that are viable for the purposes

of marketing products.

How does a nation’s or region’s culture, including its origins, characteristics, and values, influence the

international marketing context?

Culture: Culture represents the beliefs, customs, and attitudes of a distinct group of people.

- The term “culture” can be applied to a nation, a region, a city, or a single business. Culture, and the elements of culture, strongly influence international marketing activities.

Elements of Culture:

Origins of Culture: Culture develops over time and various

characteristics of culture have strong

historical roots. History is a large driver of

culture.

Origins of Culture: Geography is the other primary driver of culture. Several factors related to the location and characteristics of a geographic region affect the development of culture.

- Topography

- Population density

- Climate

- Access to other nations and cultures

Creating Cultural Consumption: Carnival: Carnival represents how history and geography overlap to create culture and consumption. The celebration is Western European in origin and may even predate its Christian roots. Carnival celebrations are common throughout Europe.

- The celebration in the Notting Hill area of London is one of the largest in the world. - In Belgium, the celebration dates to at least 1394.

Colonization spread the celebration of carnival throughout the world. The most famous of these celebrations is probably Carnival in Brazil.

- Samba dances are native to Brazil but also influenced by African dancing introduced by slaves. Carnival is also observed throughout the rest of Latin America.

- The capital of Uruguay, Montevideo, holds a festival for more than a month. - Trinidad’s event rivals Brazil’s and includes African culture and calypso and the soca dancing. - The Colombian celebration includes a mix of European, African, and indigenous traditions.

Colonization eventually spread carnival to Asia. - India, specifically the former Portuguese city of Goa, celebrates every year. The party includes

traditional Christian elements, but also increasingly reflects India’s Hindu roots.


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Geert Hofstede’s Value Dimensions of Culture:

Why should a marketing team examine cultural imperatives, electives, and exclusives when entering a host

country?

Culture and Behaviors: Cultural Imperatives

- The business customs and expectations that must be met and conformed to or avoided Cultural Electives

- The business customs and expectations that cultural aliens may, but are not required to, conform to or participate in.

Cultural Exclusives - Customs or behavior patterns reserved exclusively for the locals and from which the foreigner is

barred

Culture and Purchasing Behavior: Cultural influences dictate whether a given region or nation can become a viable target market. A marketer first examines culture to determine whether products match the needs and wants of consumers. Culture affects a variety of consumption patterns and purchasing behaviors, including those affected by

aesthetics, religious practices, and dietary preferences.

Cultural Change: Two methods may be used by a marketing department to assess and adapt to cultural change:

1. Seeking cultural congruence, which means products and marketing approaches are designed to

meet the needs of the current culture.

2. Promoting change within the culture.

- Greater risk

- An increased chance of offending

Chapter 1: Consumer Behavior Across Cultures

Global Consumers in a Global Village?: Do travel, global media and technology make us all the same?

Globalization: - In business press “Globalization” is Americanization

- Globalization discourse dominated by Anglo-Saxon authors who see their own country’s brands

everywhere and think it makes people the same

Global Youth Culture: - Assael, 2004: Consumer behavior, a strategic approach:

- Teens across the world

Watch the same television shows and similar commercials


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Develop the same consumption

patterns

Find being with friends and

watching television to be the most

enjoyable ways to spend time

- Travel and global communications have

spurred the development of common norms

and values

The Globalization myths in marketing: - ‘Globalization of markets’ Levitt (1983) : The

world’s needs and desires have

homogenized

- (Internet) technology brings a world culture

- Global business and global media have brought global communities

Youth, business people more similar to each other across countries than to other people

within countries

similarities in media exposure bring consumers together

- Increased wealth makes people travel

- Increased travel brings universal values

- Result:

- Increased focus on similarities, not on differences

- An ideal world versus the real world

Travel and technology: - In Europe, in 2001, 44% of young people had not visited another country, and 86% only one, for

holidays (Eurobarometer); 31% do not speak another language

- Only 0.4% of Europeans work in another EU state, 0.1% work and live in another state (225,000

people).

- People are not becoming the same. Cultural values vary across Europe and with increased wealth

people’s values become even more manifest

- New technology doesn’t change people; it enhances current behavior

- There are global products and brands, but there are no global consumers

Globalization terms/aspects: - Link with modernity and post modernity

- Western imperialism

- Global monoculture

- Positive or negative effects

Positive: Technological progress, employment, cultural exchange

Negative: Monoculture, low trust multinationals

Perceptions of Globalization: - EU inhabitants view globalization as positive, technological progress, health, employment

66% of the Irish view Globalization as an advantage versus 33% of the Greek

- EU inhabitants view USA having too much influence ( 75%)

- Developing economies: global means new, modern, scientific


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Technology does not unify: - Technology and media bring together, they don’t make us the same.

- Which technology people buy and how they use it depend on the habits of the groups to which

they belong, the environment in which they live and grow up: their culture.

- Differences in ownership and usage of technology across nations. Examples.

Behavior varies by national culture: - The Dutch use MSN messenger more than in any other country.

- 80% of Dutch households have Internet access versus 44% of German households (2006).

- 83% of Dutch households have PC versus 57% of Belgian households (2006).

- In 2006 Germany was one of the most mature digital camera markets in Europe. In 1996, 10 years

earlier Germans bought the most analogue film per capita.

The technology paradox: - People use new technology to do the things they used to do better, nicer, more efficiently

- They are extensions of human beings (McLuhan)

- People’s behavior is very stable, is based in history; new technology is used to reinforce existing

behavior

The colder the climate, the more deep freezers and ice cream consumed

Mobile phone penetration highest where most main telephone lines

Convergence-divergence: - Human behavior stable

- New technology often new format of the old.

Deep freezers, mobile phones

- Not necessarily driver of new behavior

- No evidence of convergence.

- Persistent variation of consumption & consumer behavior across countries.

- The older the product category the stronger the influence of culture.

Cross-border lifestyle groups: - Global communities, global tribes

- Davos culture

- Yuppy internationale

- Global youth culture

- Business people

New media: - The internet amplifies and modifies existing patterns of governmental conflict and cooperation

- Positive democratic effects in countries that were already partially democratic

- In many countries access to Internet limited by filtration software

- People fit new technology into their existing lifestyles

- Companies adjust websites to local peculiarities

- People most easily navigate websites developed by designers of own culture

Universalism: - Conviction of “what is good for us is good for others”

Democracy, fast food, dashboard dining

- View Europe or Asia as one market

- Lack of geographical or historical knowledge


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- Language, literature (Baccardi)

- Assume U.S. or British theories of consumer

behavior are valid elsewhere

Global branding and advertising: - Markets are people

- People live in the local

- Going global means understanding the local

- Most trusted brands are local or national

Renault , Volkswagen , Skoda etc

- Understand consumers across cultures

Chapter 2: Values and Culture

The value concept: - A value is an enduring belief that a specific mode of conduct or end-state of existence is personally

or socially preferable to an opposite one

- Value system: values ordered in priority with respect to other values

- Rokeach: Terminal (eg. comfortable life) and Instrumental values (eg. ambitious)

- Values have cognitive, affective and behavioral components

Preference of one state of being over another: Instrumental Values are different /country: evil - good war - peace unhappy - happy sick - healthy dirty - clean

ugly - beautiful passive - active pessimist - optimist traditional - modern

US Being Honest Ambitious Responsible

China Cheerful Polite Independent

Measuring values:

- Questions about preferences of states of being

measure the desired

- Questions about guiding principles in one’s life

measure the desirable

- Values are abstract

Not all people/cultures respond to abstract questions = Western custom

Asians tend to respond according to social setting


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Importance of context

Rokeach and values: - Levels of values

End-state of existence: terminal value

Desirable mode of conduct: instrumental value

- 18 terminal value items

e.g. world at peace, equality, salvation, national security

- 18 instrumental value items

e.g. ambitious, honest, obedient, broad-minded

- Instrumental values are motivators: instruments to reach end-states

Ten of the Rokeach terminal values: 1. Comfortable, prosperous life 2. Exciting life 3. Sense of accomplishment 4. Equality 5. Freedom

6. Happiness 7. National security 8. Salvation 9. Self-respect 10. •Social recognition (respect, admiration)

Ten American enduring Core Values (Yankelovich) 1. Freedom, free speech and freedom from

constraint to the pursuit of private happiness 2. Equality before the law 3. Equality of opportunity: 'freedom & individuality

in the marketplace' 4. Fairness: 'get what you deserve'

5. Achievement: 'individual effort will pay off' 6. Patriotism 7. Democracy 8. American exceptionalism: special moral status 9. Religion 10. Luck

Values Belgium (Vyncke) 1. Having your own house 2. Thrift 3. Progeny, descendants 4. Health, safety, security 5. Keep everything, all you have, as it is 6. Romantic love, strong relationship, erotic love

7. Love for children 8. Strong family ties 9. Self-respect, status, success 10. Being a leader, power 11. Freedom, independent, doing your own thing

Value studies in marketing and advertising:

- Segmentation

enriching segment descriptions

• add values to demographics

• see consumer as a whole

- Differentiation

add values to attributes and benefits

communicate how brand delivers higher

level consequences

- Positioning

adding values creates association network which distinguishes products

positions a brand vs. other brands in the category

Several ways to view culture: - Learned and shared ways of doing things and solving problems

in a society (national culture) or in a company (company culture)


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- “How we do things here”

- The glue that binds people together

- If there are no shared ways of doing things it is difficult to live or work together

Comparing cultures: - Culture as an onion: values and expressions of culture

- Convergence = mainly the expressions of culture

- Use interpretable dimensional scales on which cultures have different positions

Expressions of culture: - Language / humour

- Signs and symbols

- Body language

Facial expressions

Gestures

- Thinking patterns

- Communication

Personal contacts

Written, memos, e-mails

Beyond the anecdotal: Understand values: - Cultural values explain how people interact in business

Meetings, dress codes, trust, relationships b/w bosses-subordinates

Organization models

- Cultural values explain consumer behavior

Influence on marketing and advertising

Media usage, communication styles

- Value systems of companies and creators of advertising reflected in communications

Measuring cultural values: - Derive cultural values from cultural artifacts (fairy tales, advertising)

- Information about cultures derived from the study of individuals

- Problems:

Results based on self reports

Implicit comparisons with others

Questions, language

Interpretation

Equivalence

- Individual vs. culture-level

Associations can vary for individual and culture level

Searching for similarities or differences: - In international marketing focus is on the search for similarities, finding similar groups across

countries – youth, business people etc.

- Studies that focus on differences use dimensions or typologies

- Typologies describe easy-to-imagine types within countries, based on lifestyles or socio-milieus

- Lifestyle studies:

VALS - based on US value study

CCA – based on French value study, later extended to other countries in Europe


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Kompas – Scandinavia

- Values of culture of origin reflected in dimensions

National cultures: - Nations should not be equated with societies

- But, many nations are historically developed wholes

even when consisting of clearly different groups

- United States heterogeneous nation

- Comparing nations

Differences within nations are smaller than

differences across nations

Classifying cultures: - Classifications of culture

Descriptive characteristics

Value categories

Dimensions

- Dimensions empirically based; factor analysis

of large databases

- Countries have a score on a scale

- Useful for secondary analysis of consumption

data

Large-scale dimensional models: - Inglehart: 2 dimensions

- Minkov: 3 dimensions

- Hofstede: 5 dimensions of national culture

- Schwartz: 7 value types or motivational domains

- GLOBE: 9 dimensions

- Hofstede and Schwartz most used for marketing

Hofstede’s dimensions of national culture: - Power Distance

- Individualism-Collectivism

- Masculinity-Femininity

- Uncertainty Avoidance

- Long-Term vs. Short-Term orientation

- Country scores for 66 countries and 3 regions

- Explain most of variation of consumer

behaviour

Ads: Power Distance:

- Social status: well-known brands - Pakistan’s former president shows his Nike shoes - Spain: Respect for elders - Int’l ad, PDI - Elders look like youngsters, Not acceptable in PDI+ cultures - Korea (PDI+): need for prestige and status - Dependence (Italy) – Independence (Netherlands)

Individualism-Collectivism: - Denmark: privacy needs, enjoy alone


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- Spain: Individual choice (literal translation of int’l ad for Lucky Strike) vs. culture-fit group enjoyment for L&M

- Culture of country-of-origin reflected in int’l advertising - Spain: Indirect way to tell - Here is a

group of people with a Friday feeling - Direct approach: “I”, “You” - Indirect approach: symbolism,

metaphors (Belgium, Int’l ad Thai airlines) - Not sharing (Magnum, Netherlands) vs.

sharing (Donettes, Spain) Masculinity-Femininity:

- Masculine cultures: biggest, the best, aggressive typology

- Feminine cultures: modesty, understatement

- Volvo Sweden “Don’t show off” - Italy: A Seat Cordoba must always be

seen. Glass door in garage - Netherlands: The neighbors cannot see

the car, anyway, the most important part is under the bonnet, nobody can see it.

- Mexico, Italy - Role differentiation - Netherlands, Spain - Overlapping roles - Role differentiation

MAS: Mothers clean and look after children

FEM: Fathers also clean and look after children

Uncertainty Avoidance: - Germany: Details and testimonial by a

Professor Dr. M. Rimpler - Germany: experts and specialists - USA: Result orientation - Little

information about product or details - France & Spain: grooming is important,

combine the right colors - Norway & Australia: no attention to

grooming - UAI+: Process orientation, how the

product works UAI-: Result orientation, the effect

Long Term Orientation - Short Term Orientation - Long term symbols: old trees, Continuity

Possible exam questions: The Japanese have many holidays and celebrations of seasons that can be explained by culture. Seasonal events are cherry blossom viewing (around April 1), autumn colors viewing and going out in the rainy season. Special holidays are “Day for the admiration of nature” (March 20), “Commune with nature and be grateful for its blessings” (May 4) and “Respect-for-the-aged day” (third Monday of September). Which dimensions can explain these special occasions?

Answer: Time is circular, PDI+ and LTO+ Relationship man - nature


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The Lego toy bricks were originally developed as “educational”. It was a Danish invention. The name was based on a contraction of leg godt, which translates as “play well.” As it was meant to be an educational toy, it was based on the practice of parents constructing buildings together with their children as equals. Which dimension explains the fact that Lego never sold as well in France as it did in the Nordic countries?

Answer: PDI+; parents don’t play that much with children as they do in PDI- cultures

Chapter 3: Convergence and Divergence in Consumer Behaviour

Globalization of markets: - Levitt (1983):

“A powerful force drives the world toward a converging commonality, and that force is

technology. It has proletarianized communication, transport and travel. The world’s needs

and desires have irrevocably homogenized”

- Homogenization of needs

is argument for standardizing products, marketing and advertising

Convergence: - Modernization driver of convergence

- Economic modernization: technology, specialization of labor, interdependence of impersonal

markets, large-scale financing, rising levels of material well-being

- Socio psychological modernization: process of change in ways of perceiving, expressing and valuing.

(Inkeles and Smith, 1999) business people

- In marketing technology (Internet, electronic media) considered to be most important driver of

convergence

Technology does not unify: - Technology and media bring together, they don’t make us the same.

- Which technology people buy and how they use it depend on the habits of the groups of which

they are part, the environment in which they live and grow up: their culture.

- Differences in ownership and usage of technology across nations.

Behavior varies by national culture: - The Dutch use MSN messenger more than in any other country.

- 89% of the Dutch use Internet versus 46.9 % of the Germans (2006).

- Netherlands: 85.4 computers per 100 people; Belgium: 37.7 computers per 100 people (2006).

- In 2006 Germany one of the most mature digital camera markets in Europe. In 1996, 10 years

earlier Germans bought most analogue film per capita.

Technology and convergence: - Human behavior stable

- New technology often new format of the old.

o Deepfreezers, mobile phones

- Not necessarily driver of new behavior

- People adopt new technology to keep doing what they like to do most, in a nicer or more efficient

way.

- No evidence of convergence.

The new often a new format of the old: - More deep freezers in cold climates

- More ice cream consumed in cold climates

- Fastest penetration of mobile phones where most fixed telephone lines


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- Access internet at home or in the public domain

Macro-micro dichotomy: - Macro information: indicators of macro-economic environment of countries: population data,

GNI/capita, education levels, per capita telephone main lines, cars, PCs, TV sets

- Micro information: differences in consumption, attitudes, values, consumer behavior, e.g. time

spent watching TV, behavior on the Internet, liters per capita mineral water consumed.

Macro & micro level convergence-divergence: - Convergence of national wealth in rich regions, not worldwide

- World inequality increased

- European Union example of convergence of GNI/capita

- Micro-level: with increased wealth divergence, cultural values become manifest

Convergence-divergence: - Persistent differences in consumer behavior worldwide

- In economically homogeneous area, convergence at macro-level


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Investment type durables: convergence

Convergence at macro-level masks diversity at

micro-level

- Convergence of the new, divergence of the old

With increased wealth, convergence turns into

divergence

- Converging incomes: diverging behavior

Culture, int’l marketing & advertising: - Appr. 70% of variation in product ownership and usage

explained by Hofstede dimensions

With converging national wealth, values of national culture become manifest

- No global communities. Surveys show that

across countries young people vary as much as

grown-ups

business people are human beings; values

reflected in decision making behavior

Other measurement variables: - Urbanization - Population density - Education - Age distribution

- Household and family - Social class - Ethnicity - Climate

Urbanization:

- Distinction urban-rural mainly important for developing

economies

- Disposable income urban higher than rural

- Less pronounced in developed economies, where rural

can be more wealthy

- Urban: less extended households (= people living

together), but psychologically extended household still

exists

Population density: - Number of people per square kilometer

- Not meaningful variable for explaining differences in consumption or consumer behavior

Education: - Education levels = function of national wealth

- Convergence of education levels with converging

wealth

Age distribution: - Age distribution related to economic development and

culture

% under 15 = low GNI/capita

% over 65 = high GNI/capita

- Lower birthrates in LTO+ cultures

- Developed world: graying populations


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Household and family: - Household size variations

- Age of marriage varies: lower income, earlier marriages

- Working women: varying reasons for work and differences in childcare

- Low MAS cultures: males and females share childcare; Low IDV cultures: extended family takes care

of children

Social class: - Class structures and measurements vary by country

- Organized vs. non-organized class

- Organized class example Caste system India

- Marketing categorizes people according to income, age group, occupation etc.

- Definitions vary: “working class” may have different meanings across countries

- Categorizing by race illegal in some European countries.

Ethnicity: - Ethnic group term used for minority groups in a society

E.g. Native Americans, Australian aborigines. Turkish Germans

- Catchall collective term for race, religion, language, nationality to identity minority group

- Integration takes appr. three generations, depending on living conditions (mixing with population

or living in “ghettos”)

Climate: - Direct and indirect influence on consumption

- Geographical latitude rough measure of climatic differences

- Direct effect: energy consumption

- Indirect effect: wealth

- Calorie intake more related to wealth and IDV than to climate

- Homeostatis – certain stimulants (e.g. coffee) mediate effects of climate

Rational consumer: - Economists view consumer as rational decision maker (homo economicus), maximizing utility and

profit

- Influence of income overstated

- Across countries many consumption differences cannot be explained by differences in national

income

- Reverse: lower income countries spend more money on status goods

Engel’s Law: - With increasing income percentage of private consumption spent on food decreases

- Phenomenon on IDV cultures

- COL cultures: compared with IDV cultures percentage spent on food will remain larger

Conclusion: - Evidence of stability of values and behavior

- One of the assumed causes of convergence is modernization.

- Whatever convergence on a macro level takes place is rarely seen at micro level

- With increasing wealth value differences become manifest and consumer behavior diverges

- Other demographic variables can not be used as explaining variables.

- Cultural variables are the best variables to explain differences


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Chapter 4: Consumer attributes

Consumer attributes: - Concept of self

Self descriptions, self evaluations

Self enhancement, self esteem

- Personality

Implications for brand personality concept

- Personal traits

Brand personalities across cultures

- Identity and image

- Attitude

Relationship attitude-behavior

- Lifestyle

The self-concept: - The self-concept plays a central role in behavior and psychological processes.

- The self consists of the body, family, possessions, moods, emotions, conscience, attitudes, values,

traits, and social position.

- Major distinction between independent self and interdependent self; ‘me’ as a unique entity or ‘me’

as integrated in the social environment.

- Real self vs. ideal self; Identity and image

- Importance for consumer behavior: differentiate or conform to the behavior of others

Self descriptions, self evaluations: - Individualists describe themselves in abstract terms, collectivists describe themselves in relation to

others

- American self descriptions contain mainly positive self-evaluations.

- Self criticism more found in COL cultures, but also in IDV/FEM cultures

Discuss: Dove self esteem campaign: - Would this work where relationships are more important for the real self than self-enhancement?

- Print ads: older women can show who they are

- Films

- Case Dove Japan

Implications marketing, branding, advertising: - Products must be compatible with ideal self

- Ideal self varies

IDV = uniqueness

COL = group identity and social status

- Brand concept typical of IDV cultures

- Brand identity versus Face of the brand

- Advertising: uniqueness versus group appeals

Ads: - Leading products, not brands (Barcelona, Spain) - Col - The right brand at the right occasion - Ad for Japanese - bank in Newsweek, North-Atlantic edition, Group enhancement - Col - Airtel, Spain, Group identity


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Personality: - Basic assumptions of individualistic cultures:

People should distinguish

themselves from others

Cross-situational consistency

Personality traits are universal

- In collectivistic cultures

Person is interdependent entity

Individual behavior is situational

Characteristics vary by social role

Self descriptions in commercial studies: Reader’s Digest Trusted Brands (2001-2002-2003-2004) - www.rdtrustedbrands.com Examples:

- Passionate (UAI+)

- Rebel (UAI+)

- Optimistic (UAI-/PDI-)

- Impulsive (PDI-/MAS-)

- Cautious (UAI+)

- Stressed (PDI+/UAI+)

- Adventurous (PDI-)

- Stylish (PDI+/MAS+)

Marketing metaphors: - Personality and identity used as metaphors

in marketing and branding

- Companies have identities (Corporate identity)

- Brands should have unique personalities with characteristics like people have

- e.g. friendly, trustworthy, aggressive .

- Differentiate versus the competition

- And positioned versus other brands of the same company and the competition

- Brand positions should be consistent

- But: consumer take-out different from company input


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Brand personalities and culture: - In individualistic cultures the brand personality is a unique entity, in collectivistic cultures it is

embedded in the environment, a family of brands of the company.

- Product brand vs. company brand ( Yaris versus Toyota)

- ‘Brand personality’ vs. ‘brand world’ or ‘brand face’

- In some cultures brands have personality traits that do not exist in others

e.g. Ruggedness (USA), Passion (Spain), Peacefulness (Japan) (See Aaker et al.)

Identity and image: - Identity – Idea about oneself, body, values

- Image – How others see and judge a person

- Identity for individualists based on individual characteristics, for collectivists defined by

relationships

- Achieved identity (good father / student etc.) and ascribed identity (gender ,age )

Body Image: - Picture of own body that we form in

our mind

- Desirable appearance leads to self-

esteem; but, self-esteem not as

important everywhere.

- Gap between real and ideal image

largest in IDV cultures. Leads to

disorders. In COL cultures external

factors important

- Cultural groups have different

definitions of physical attractiveness

- Poses in US media are defiant, reflect independence. In Asia open: dependence.

Attitude: - Attitude = lasting general evaluation of people, objects, advertisements or issues

- Basis in IDV cultures is consistency

- Cognitive-affective and behavioral components

- Assumption consistency relationship attitude-behavior

- Measuring advertising effectiveness: attitude towards the ad (Aad)

Persuasion scores measure intention to buy


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Assuming relationship intention and behavior

This relationship varies by culture

Gap between intention and actual buying larger in UAI+ cultures. Example environmental

issues

Attitudes toward food, health, materialism: - Attitudes toward food (safety, trust =

PDI-/UAI-)

- Attitudes toward health related to UAI

- Physicians, use of antibiotics = UAI+

- Health very good, active sports = UAI-

- Materialism - ingredients

- Meaning, Success, Happiness

- Strongest in IDV/MAS cultures

Attitudes toward country-of-origin, national pride:

- Attitudes toward country-of-origin

- Prototypicality (Japanese = technologically advanced; Germany = reliable)

- “Way of life” (American way of living)

- Developed countries more favored than developing countries

- National pride strongest in LTO- cultures

- Consumer ethnocentrism related to national pride

International Product Positioning Challenges: Country-of-Origin Effects

- The country-of-origin effect summarizes the response a consumer has to a product due to the

country that is the source, in the consumer’s mind, of the product.

- The country-of-origin effect can drastically alter the position of the product in the minds of

consumers.

Sources of Country-of-Origin Positioning Effects:

Country Image: Country-of-origin effects are often based on stereotyped conceptions consumers have about countries or the country’s image. Country image consists of the attitudes and knowledge consumers

have about a country.

Packaging and Labels: A key regulatory issue is packaging and labels regulations.

Attitudes to environment; sex and love: - Environmental concern strongest in wealthy countries

- Associations with environment vary

- Environmentally friendly behavior varies with PDI (see also relationship attitude-behavior)


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- Romantic love, expressions of intimacy vary mostly with IDV/COL

- Distinction love and sex less rigid in FEM cultures than in MAS cultures.

- Nudity is not the same as sex

Lifestyle: - Lifestyle = set of values, interests, opinions and behavior of consumers

- All are reflection of culture

- Lifestyle groups like the young show similarities at the level of cultural expressions, not values

Conclusion: - Personality and traits are western concepts

- For marketing and branding these variations are important since its seen as methaphors for brand

personality

- Most pronounced difference is between individualistic and collectivistic cultures .

- Western : self consistent and unchangeable

- Collectivistic : varies along the context and situations

- Culture related attitudes given

- Lifestyle : evidence that culture differences override lifestyle similarities

What two primary elements shape a product’s positioning in the global marketplace?

The Nature of International Product Positioning: - Product position summarizes consumer opinions regarding the specific features of the product. - Product position represents what currently exists. - Product positioning states the goal that marketers have in mind.

Marketing activities can be designed to shape a product’s position over time. - Two key elements of product position:

The way customers view the product

The product’s standing relative to competitors’

What are the main approaches to international product positioning?

Positioning Statements and Approaches: A one- or two-sentence summary of a company’s positioning strategy is its positioning statement.

- “Nike will provide authentic, innovative products that improve athletic performance.”

How can a product’s position become an asset in an international marketing effort?

International Positioning Objectives: Differentiation: - Differentiation results from emphasizing a unique benefit or component of a product that

separates it

- from competitors’.

- This represents something different from the STP process.

- Differentiation notes the specific benefit or attribute that makes the product unique when

compared to competitors’.

This typically applies across various target markets.


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International Positioning Objectives: Brand Equity: - Brand equity is the unique benefits that a product enjoys due solely to its brand name.

The sources of brand equity are the strong, favorable, and unique associations

consumers have with the brand.

- The benefits of brand equity include:

The ability to charge a higher price

Increased consumer loyalty

Higher stock price

Chapter 5: Social Processes

Motivation, needs, drives

- Motivation research seeks to find the underlying why of behavior

- Three main types of motivation explanations

Physiological: Internal or primary drives

Behavioral: external drives

Psychological: processes that steer, sustain and stop a goal-directed sequence of behavior

- Needs: Social or functional (bicycle USA-China)

- Many motives are culture-bound.

- Freud, Maslow, McClelland

Needs & Motives: - Category and culture-bound

- Purity: Mineral water, processed food, detergents and UAI

- Status: Luxury goods and MAS

- Varying relationships

- Environmentalism: behavior vs. attitude (PDI-/FEM)

- Convenience (IDV/UAI-/LTO-)

- Hedonism (IDV)

Different buying motives – Toothpaste: - French - Kills germs in the mouth

- Americans - “well-known brand “ Brightens

the teeth

- Brazilians - Color of toothpaste

Category motive for Coffee – conversation in the

home (Germany)


LL 21

Emotion:

- Process involving interaction cognition and

physiology. Mind influences body, body

influences mind.

- Emotions are affective responses that are

learned.

- Emotions are integral wholes in which

various components are linked together

- Experience

- Facial expression

- Physiological response

- Mesquita & Frijda: Several elements of emotions are related to culture.

Culture and emotion:

- Universal basic emotions?

- The more abstract, the more universal

- Emotion and language

- Most languages possess sets of emotion-labeling words

- English: anger, fear, sadness, joy

- Anger is a different experience across cultures

- Expression of emotions

- Neuro physiological position: universal, distinctive movements of facial muscle for each primary

affect state.

- Universalists: face reveals emotion in a way that is universally understood

- Display rules

- Meaning and intensity of emotions vary

- East Asian collectivists don’t display negative emotions (experiment Friesen)


LL 22

Measurement of emotions & culture: - Recognition and judgment of expressions of emotions

Measurement based on recognition of facial expressions

Absence of context (most measurements in laboratory situations)

Decoding measures vary: emotion terms used

IDV cultures: negative emotions better recognized

UAI+ cultures emotions expressed; UAI- cultures emotions less expressed, people use cues

from faces.

Russell: Only happiness can be universally understood. Many emotions confused: disgust-

contempt; sadness-contempt and; fear-surprise.

Cultural backgrounds of expressor and judge interfere

Smile universal expression of happiness?

Recognition of emotions: Americans focus on mouth, Japanese focus on eyes: USA: - :) & :

( Japan: ^_ ^ & ;_;

- Emotion-eliciting events

IDV: being alone can cause happiness; COL: being alone can cause sadness (relationship

problem)

The use of emotions in advertising: - Assumed universality of emotions: frequent use of emotional cues in international advertising

(Coca-Cola and happiness)

- Varying use of emotions in advertising across cultures. Content and responses vary.

- Content: In the US persuasive advertising uses emotions as part of the argumentation

- European styles focus on the emotional relationship consumer-brand (bonding)

- Use of emotions per se, not mainly as part of the argumentation, or pure aesthetics

- Examples: USA (argumentation). France, Italy: (pure emotional bonding)

Ads: - Coca-Cola and happiness - USA: Emotion (Disgust) part of the argument - Emotional bonding: France

- Danish Carlsberg: group of unique individuals

- US Pepsi: individuals must stand out

- Spanish Movistar: harmony

- Japanese Tiovita: careful orchestration of group so no one sticks out

Group processes: - In-group and out-group

- Influences family members

- Conformity

- Public and private space

- Coffee, tea consumption, beer, soft drinks

- Use of Internet; Watching TV

- Public use vs. private use situation

- Appearance

- Uphold face

- Reference groups

- Opinion leaders


LL 23

The individual & the group: - Individualism: Individuals have unique personalities

- Individuals must stand out, demonstrate they are different

- Groups are sets of unique individuals, harmony not necessary

- Consumption choices to demonstrate uniqueness

- “Freedom of choice” and self-expression important

- Collectivism: The dependent self in collectivistic cultures lives in harmony with the group and the

environment; does not want to stand out.

- Groups are sets of equal people

- Conformance in consumer behaviour

Conformity: - Collectivism: owning the same brands as group members, belonging

- Examples: use of conformity in strategy

Heineken

Unilever

Public-Private space: - Differences in appeals for public or personal products

- Differences in behavior public-private space PDI/COL

- Ownership private gardens

- With guests dining at home or in restaurants

- Spending free time in the home or outside

- Meeting friends at home or in bars/cafes

- Accessing the internet at home or in cyber café

- Mixing home and work life

- Appearance

Opinion leaders: - Diffusion of innovations: opinion leaders are informal sources of product information for a specific

product category

- Opinion leaders get information from the media and spread by word-of-mouth

- This two-step-flow of communication may be specific for IDV cultures where people collect

information consciously – see chapter 6


LL 24

Chapter 6: Mental Processes

Mental processes: - Cognition and Cognitive styles - Learning and memory - Cognition and affect - Language - Perception - The creative process

- Attribution - Locus of control - Information processing - Involvement theory - Decision making

Cognitive styles:

- Individual centered vs. situation centered

- Object focus vs. context focus

- Abstract (IND) vs. concrete (COL) thinking

- Categorization: grouping objects or people

Learning and memory: - Culture is learned behavior - Education concepts and systems vary by culture - Better recall of stories consistent with cultural knowledge - Brands are association networks in the consumers’ minds, learned associations

Language:

- Direct vs. indirect styles use

different words

- Language reflects cultural values

- Expressions reflect habits

- Language affects mental

representations

- Verbal vs. visual

- Translations of value studies

problematic

- Foreign language speaking and

understanding related to UAI

Categorization: - Object versus relationship categorization

- Presentation in retail

Relationship between product or type of product

Classifiers

- Brand extension fit less relevant for COL cultures


LL 25

Perception: - Selective perception

- Aesthetic experience

Varying conventions in art, photography

Painting, music

Product design

- Color perception and preferences

- Field dependency

Landscapes, portraits, photography

Creative process: - Western creative process: uniqueness, innovation; divergent thinking

- Eastern creative process: re-use and re-interpretation of tradition

- Work processes: rules vs. originality

- Photojournalism differences related to education and organization

Attribution: - Events explained or predicted by internal vs. external causes

- External: situational

- Internal: ability of people

Information processing: - Psychological approach to analyze how people acquire, organize and use information

- Underlying assumptions

- People want to solve problems & choose rationally

- How people acquire information

- PDI+/COL: Buying process not information based

- No conscious information

gathering; automatic flow of

information between people

- Information must be

organized: schemata

- Processing verbally or visually

- Processing foreign words


LL 26

Culture and How Advertising Works: - Advertising models / theories

- Based on US information processing theories

- Sequences of effects, involvement theory

- Rational – emotional dichotomy (USA)

- Thinking vs. feeling; Informational vs. transformational

- Rational = product information, attributes, argumentation

- Emotional = feeling, pleasure, mood

- Distinction result of focus on informed consumer

- Active pursuit of information typical of IDV/PDI- cultures

- Western information processing theory states that distinctive, unusual information is easier to

remember than ordinary information. Be Carefull !

- But, to be placed in memory, information must be encoded according to existing schemata.

Advertising effect sequences – Involvement theory: “learn-feel-do” “feel-learn-do” “do-learn-feel” “do-feel-learn” “feel-do-learn”

High-involvement Products Low-involvement products Japanese model (trust, relationship comes first)

Decision making:

- General: “decisions happen” versus “decisions are made”

- Internal versus external locus of control

- Need for information, degree of details

- Roles of influentials

Children, elders, family, experts etc.

Involvement partner, secretary in business

- Source of information, credibility of source (IDV)

- Task versus relationship orientation in seller-buyer relationship

- Importance of trust in company

Classic communication model:


LL 27

Communication: - How people communicate varies with IDV, PDI, UAI

- IDV/PDI- = Low context communication (Hall)

Explicit, direct, facts, data, words

- COL/PDI+ = High context communication

Implicit, indirect,

visual, metaphors

Word-of-mouth

- UAI- = textual orientation

(reading & writing)

- In interpersonal

communication,

advertising and website

design.

Communication styles: - Verbal styles

o Verbal personal

( The I form)

o Verbal contextual

o Elaborate (Arab cultures), exacting (UK, US),

succinct (Japan)

- Nonverbal styles

o Unique-explicit (uniek /open) and unique-implicit

( uniek / privacy)

o Group-explicit and group-implicitt

Communication and the electronic media: - Usage differences of internet, e-mail, mobile phone reflect interpersonal communication styles

Use of voice mail, e-mail, internet

- Social networks for individualists = path to resources; collectivists: sharing feelings and ideas

- More blogging in COL cultures

Mass communication styles: - Communication styles reflected in mass communications

TV programs, casting, style

Literature

Films

Advertising

Culture and advertising style: - Appeal

- Reflects values and

motivations

- Product values or added

values

- Communication style

- Verbal vs. visual, direct vs.

indirect


LL 28

- Basic advertising form

- Lecture style, demonstration

- Drama, indirect approach

- Pure entertainment

- Execution

- Reflection of people’s lives

Direct-Indirect: - Explicit - Implicit

- Verbal - Visual

- Facts - Symbols

- Lecture style – Metaphors &

entertainment

Indirect approach Metaphors, symbols, Visual & symbolic, Symbolism

Direct style translated to indirect style culture

Films: - Direct: Pepsi, US; Vauxhall Corsa, UK

- Indirect, drama: Gran Capitan, Spain; Opel Corsa, France; Birra Moretti, Italy (theatre style)

- Humor: Kalle, Sweden; Braathens, Norway; Rolo, Netherlands

- Aesthetics: Maitre de Thé, Russia

- Magic: Chicklets, Thailand; Rediff, India

The purpose of advertising: - Advertising is effective if it fits its purpose

- The purpose of advertising varies with culture

- Sales (US) versus relationship / trust (Europe/Asia)

- US model is ‘persuasion’; Most of Europe and Asia ‘likability’

- Different styles relate to different purposes

- In the Anglo-Saxon world, Germany, advertising persuades through argumentation and direct style

- In most of Europe and all of Asia people are used to more indirect, complex communication styles,

e.g. emotions, metaphors, art. Direct style offends.

Logic of advertising: Anglo-Saxon worldand Germany Most of Europe and all of Asia - Tell the audience how you or the product is

different. - Tell why your product is the best - Consumers will want to buy since they have a

clear reason for the purchase. - If they like it repurchase

- Make friends with the target audience. - Prove that you understand their feelings - Show that you are nice - Consumers will then want to buy, because they

trust you and feel familiar. - Afterwards consumers will find out the benefits.

Chapter 7: Culture, Communication and Media Behaviour

Web communication styles: - IDV/Low context: more search for information, less consumer-marketer interaction

- COL/High context: more visuals, animation, more person-to-person interactivity

- Use of colors, extreme claims, authority etc. all reflection of culture, as in advertising


LL 29

- People perform information seeking tasks faster when using web content created by designers

from their own culture

Culture and the media: - Media preferences: reading vs. viewing

- Television

- Viewing time

- Programming, watching foreign channels

- Radio

- Newspapers

- Readership

- Magazines

- The Internet

Magazines: - Variety of magazine types across countries

- Percents of advertising expenditures in magazines correlate with PDI+ and UAI+ (social status,

people)

- International becomes multi-local

- Glossy magazines

- Status needs: PDI+, MAS

- Interest in fashion = COL, PDI+, UAI+

- Covers vary

The Internet and culture: - Access varies with uncertainty avoidance

- Usage

- Business = PDI-

- e-mail = UAI-

- Leisure = MAS-

- Place of access follows existing habits

- Website design varies with culture, as advertising does: content and style

The Internet: - Basic roles internet culture-bound

Information

Social

Entertainment

- LTO+ cultures adopt internet applications most intensively


LL 30

Responses to marketing communication: - Sales promotions

Variety of promotional activities, culture-related

- Advertising

Responses will vary with adaptation to culture-defined styles, appeals, execution

Appeals vary with motives

Executional styles: lesson, drama, entertainment (see advertising styles), use of celebrities

Acceptance of advertising in general; collectivists less skeptical of advertising than

individualists

Brand communications across cultures: - Means-end chains, laddering

- Value structure maps

how similar product attributes can lead to various cultural end values

Example cars

Chapter 8:Consumer Behavior Domains

Consumer behavior domains: - Product acquisition, usage and ownership

Food, household products, personal products, clothing & footwear, household appliances,

consumer electronics, luxury articles, communication technology, cars, leisure, finance

- Shopping and buying behavior

Out-of-home shopping and buying


LL 31

Retail design

- Complaining behavior

- Brand loyalty

- Diffusion of innovations

Innovativeness

Acceptance of new products

Food and beverages, cultural relationships: - Food expenditures as percent of household income: GNI/cap and IDV

- Processed food: Low UA, LTO-

- Soft drinks: LTO-

- Mineral water: UAI

- Coffee: Climate and FEM

Coffee has different social functions, in the home (cozy, FEM), in the public domain

(COL/PDI+)

- Alcoholic beverages: some have status value (e.g. Scotch whisky in continental Europe

- Cigarettes: stress-reduction function: UAI+

Personal care and cosmetics: - Personal care products = wealth and IDV

- Color cosmetics - instrument for self-enhancement: LTO-

- Deodorant usage: IDV, LTO-, UAI+

Household appliances: - Deep freezers: cold climates

- Adapt household appliances to specific usage (e.g. Kimchi refrigerator, Korea)

- Collectivism: more fresh products, home-cooking, food processors

- Dishwashers: convenience: LTO-

Consumer electronics, personal computers: - Audio, video = wealth and IDV

- Radios = IDV

- Personal computers = wealth and UAI-

Luxury articles: - Most found cultural relationships are with MAS (to demonstrate success) and PDI (social status)

- Rolex = IDV

Cars: - Car ownership related to wealth and individualism

- Ownership of one or more cars = MAS

- Knowledge engine size = MAS

Leisure: - Leisure expenditures highest in IDV, PDI- and UAI- cultures

- IDV = values of excitement and adventure

- IDV = more private gardens, gardening activities and garden equipment

- UAI = active versus passive; active sports vs. dining out in restaurants

- Vacation expenditures: MAS/FEM

- Visit museums: LTO-


LL 32

- Pets: More cats in IDV cultures, more dogs in PDI+ cultures. IDV cultures: one woman with one pet

(Sheba, Germany); COL cultures: pets are part of family, pets with their own animal friends (Purina,

Spain) or extended cat family (Maruha, Japan)

Finance: - Insurance = wealth and IDV

- LTO+ = Saving

- LTO- = loans and credit cards

Shopping and buying behavior: - Shopping motives and shopping activities vary

- Price consciousness

- Differences public and private consumption goods

COL/PDI+: social norms more important than price

- IDV: Fun shopping; COL: shopping social activity, meet people

- Shopping in mega store once a week vs. shopping every day

- IDV: more impulsive buying

Out-of-home shopping and buying: - Internet buying partly replacement of mail order, not replacement “mortar and brick”

- What people buy online, differences across cultures reflect differences buying in shop

- Internet buying: trust in seller important

Retail design: - Differences in retail design reflect culture

- Presentation of products, categorization

- Offer fresh food; what is considered fresh

- Hygiene, color of floors, cleanliness

- Personnel: hierarchy, personalized, names, relationship with clients, etc.

- Treatment of children, female/male shoppers

Complaining behavior: - IDV: more complaining

- COL: reluctance to complain but much negative word-of-mouth

China: boycott to express discontent

- IDV/MAS: legal action

Brand loyalty: - COL: conformity needs makes brand loyal

- LTO-: percentages who say they are the first to try new brands

- PDI+: proper place makes loyal to number one brand

- COL/PDI+: reputation of firm makes brand loyal

Applications: - Product-market development across cultures

- Stages of market development

- Varying levels of communication

- Branding strategies

- Segmenting international markets


LL 33

Marketing tentamenvragen

1. Verklaar waarom dat de meubel een statussymbool is geworden terwijl het als functioneel

voorwerp bedoeld was. Hint: feministische cultuur.

2. Als de meubel gaat exporteren naar andere landen. Op welke manier kun je het verder promoten

zonder dat er extra kosten bij komen. Hint: prijs inelastisch.

3. In hoeverre kunnen de VS en Japan op gelijkwaardige manier benaderd worden? Hint: PDI/MAS

4. Hoe zou je in beide landen promoten?

5. Op basis van duurzaamheid van het product en de imago van het bedrijf zelf. Welke land zou jij

kiezen om te exporteren?

Antwoorden:

1. Zweedse mensen zijn technisch ingesteld, bekijken het als ingenieurs waardoor ze bekijken vanuit en perspectief dat alles wel goed functioneel. Nederlanders hecht veel aan uiterlijk, zijn geografisch ingesteld, kijken vanuit een grafische

perspectief of de designs mooi zijn.

2. Bij feministische cultuur is kwaliteit van het leven is van belang. De kwaliteit van het leven wordt

vertoond in cultuur van status. Bij de feministische cultuur wordt status bekijken als ingenieurs

waar perspectief van goederen wordt beoordeelt op zijn functionaliteit en design. De meubels van

TIKRA heeft een speciale design, productkenmerken en goede kwaliteit. In de feministische cultuur

het aantonen van status wordt gesymboliseerd in goederen waar de functie en design heel goed is

en niet om de status van het product.

3. Online promoten, online diensten, zoals social media , daarnaast meer bekendheid kijken door gratis beurzen of seminars.

4. volgens het tabel scoort Japan en VS bijna gelijk op PDI. De bevolking zijn individualistisch ingesteld. De 2 landen zijn rijk en meer uit te besteden. Die landen zullen meer uitgeven aan luxe producten, veel waarde hechten aan status. Product promoten als statusproducten. Prijs hoog. Beide landen zijn ook mannelijker cultuur.

5.

Japan VS

Individualistisch – collectivistisch Grote machtafstand Mannelijk cultuur Hoge onzekerheidsvermijding Denken op lange termijn Instrumentele waarde: Polite Indenpendent Cheerful

Gemiddelde machtafstand Individualistisch Mannelijke cultuur Lage en onzekerheid vermijding Denken op korte termijn Instrumentele waarde: Being honest Amibitious Responsible

Hoe kan het product gepromoot worden in beide landen:

Direct marketing, directe reclame met een hoge waarde van marketing en informatie. Hier kan

gedaan worden door bijvoorbeeld: dat de reclame van het product wordt getoond dat het

producten van TIKRA wordt gebruikt bij de White House, etc.

6. Japan want. USA = denken op korte termijn, zijn op zich zelf gericht dan de maatschappij Japan = lange termijn, meer collectivistisch, denken aan maatschappij.


LL 34

Marketing herkansingsvragen

1. Men overweegt een Noorse werknemer aan te nemen. Zal de perceptie van deze Noorse werknemer wezenlijk anders te zijn dan die van Kees de Vries tegenover statussymbolen? Beargumenteer.

Antwoord:

Nee, want beide landen zijn feministische cultuur. De kenmerken van landen met een feministische

cultuur zijn:

-kwaliteit van het leven is van belang, streven naar consensus, werken om te leven, sympathie voor

de ongelukkigen, intuitie, overlappende rollen van mannen en vrouwen.

2. U ziet de mogelijkheden om dit product verder te promoten. U besluit de prijs substantieel te verhogen om op die manier extra inkomsten te genereren. Verwacht u een enorme impact op de verkoop van deze meubelen?

3. Gezien het beperkte promotiebudget stelt men het volgende; Het promotie concept dat is ontwikkeld van de VS gaan we gebruiken om het product ook aan de man te brengen in Indonesië. Hierdoor besparen we op ontwikkelingskosten. Antwoord:

De promotie van concept in VS kunnen niet worden toegepast in Indonesië. De factoren kunnen

verdeeld worden in:

Individualisme vs Collectivisme

VS –individualisme : Geef iemand mogelijk vrijheid en een maximum aan mogelijkheden en de

kwaliteit zal toenemen. De vorm van promotie activiteiten in landen met een hoge Individualisme

cultuur: zijn meestal direct gericht naar een persoon/individu (de vorm van promotie : “IK”)

Indonesië –collectivisme : Indonesische mensen rekening houden met kwaliteit van het leven van

anderen, ook al gaat dit ten kosten van persoonlijke vrijheid en zelf ontplooiing dan het leven

uiteindelijk voor iedereen beter worden. De vorm van de promotie in Indoensie moet heel anders

zijn dan in VS. Het moet groepen bij betrokken worden bij de reclame/promotie. De promotie moet

gericht zijn op een groep mensen. (de vorm van promotie is : “WIJ”)

4. Bespreek of het zinvol is om “Global Advertising” te doen vanuit het perspectief van de klant/markt? Antwoord: Nee, want andere landen heeft een andere trend en cultuur van communicatie

5. U overweegt om promotie te maken over uw product voor zowel uw klanten in de VS als Indonesië. Beargumenteer of dit op dezelfde manier kan. Nee, kijk vraag 3

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