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page 1 Shopping Behavior Module David F. Miller Center for Retailing Education and Research 1. Culture Differences

Page 1 Shopping Behavior Module David F. Miller Center for Retailing Education and Research 1. Culture Differences

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page 3 Shopping Behavior Module David F. Miller Center for Retailing Education and Research Hofstede’s Cultural Dimensions  Individualism-collectivism  Masculinity-femininity  Power distance  Uncertainty avoidance

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Page 1: Page 1 Shopping Behavior Module David F. Miller Center for Retailing Education and Research 1. Culture Differences

page 1Shopping Behavior Module David F. Miller Center for Retailing Education and Research

1. Culture Differences

Page 2: Page 1 Shopping Behavior Module David F. Miller Center for Retailing Education and Research 1. Culture Differences

page 2Shopping Behavior Module David F. Miller Center for Retailing Education and Research

Dimensions of CulturalChina Compared to U.S.

Page 3: Page 1 Shopping Behavior Module David F. Miller Center for Retailing Education and Research 1. Culture Differences

page 3Shopping Behavior Module David F. Miller Center for Retailing Education and Research

Hofstede’s Cultural Dimensions

Individualism-collectivism

Masculinity-femininity

Power distance

Uncertainty avoidance

Page 4: Page 1 Shopping Behavior Module David F. Miller Center for Retailing Education and Research 1. Culture Differences

page 4Shopping Behavior Module David F. Miller Center for Retailing Education and Research

Individualism-Collectivism

Individualism High value on

autonomy Individual

achievement Privacy

Collectivism High value on group

Family, clan, organization

Loyalty Devotion Conformity

Page 5: Page 1 Shopping Behavior Module David F. Miller Center for Retailing Education and Research 1. Culture Differences

page 5Shopping Behavior Module David F. Miller Center for Retailing Education and Research

Success

Assertive acquisition of money/power

achievement

Equality of genders

Caring for disadvantaged

Harmony

AchievementRelationship

Masculinity - Femininity

Page 6: Page 1 Shopping Behavior Module David F. Miller Center for Retailing Education and Research 1. Culture Differences

page 6Shopping Behavior Module David F. Miller Center for Retailing Education and Research

Power Distance

High-Power Distance

Accept position

Follow authority

Concentrated & centralized authority

Hierarchical

Low-Power Distance

Avoid concentration of authority

Decentralized

Fewer layers of management

Acceptance of Difference in Power

Page 7: Page 1 Shopping Behavior Module David F. Miller Center for Retailing Education and Research 1. Culture Differences

page 7Shopping Behavior Module David F. Miller Center for Retailing Education and Research

Low UncertaintyAvoidance Embrace

unpredictable Less adherence

to rules, procedures, or hierarchies

Risk taking desirable

High UncertaintyAvoidance Threatened by

ambiguity Need stable &

predictable workplace

Reliance on rules

Uncertainty Avoidance

Reaction of Ambiguity

Page 8: Page 1 Shopping Behavior Module David F. Miller Center for Retailing Education and Research 1. Culture Differences

page 8Shopping Behavior Module David F. Miller Center for Retailing Education and Research

Cultural Differences

Individualistic (IDV) vr. Collectivist – look out for self, self reliant, loose bonds with others

Power distance (PDI) – acceptance of power and wealth inequality

Long-Term Orientation (LTD) – importance of tradition, protecting face

Page 9: Page 1 Shopping Behavior Module David F. Miller Center for Retailing Education and Research 1. Culture Differences

page 9Shopping Behavior Module David F. Miller Center for Retailing Education and Research

What effect do these cultural differences have on retailing? Shopping behavior Store management

Page 10: Page 1 Shopping Behavior Module David F. Miller Center for Retailing Education and Research 1. Culture Differences

page 10Shopping Behavior Module David F. Miller Center for Retailing Education and Research

Shopping Behavior in China

Page 11: Page 1 Shopping Behavior Module David F. Miller Center for Retailing Education and Research 1. Culture Differences

page 11Shopping Behavior Module David F. Miller Center for Retailing Education and Research

Shopping During Mao Era

Ration coupons were required to buy cloth, but a selection of fabric drew customers to Beijing Department Store on Wangfujing Street in 1983.

Page 12: Page 1 Shopping Behavior Module David F. Miller Center for Retailing Education and Research 1. Culture Differences

page 12Shopping Behavior Module David F. Miller Center for Retailing Education and Research

Shopping as Leisure

Page 13: Page 1 Shopping Behavior Module David F. Miller Center for Retailing Education and Research 1. Culture Differences

page 13Shopping Behavior Module David F. Miller Center for Retailing Education and Research

Brand Conception

Page 14: Page 1 Shopping Behavior Module David F. Miller Center for Retailing Education and Research 1. Culture Differences

page 14Shopping Behavior Module David F. Miller Center for Retailing Education and Research

Local vs. Foreign Brands

Page 15: Page 1 Shopping Behavior Module David F. Miller Center for Retailing Education and Research 1. Culture Differences

page 15Shopping Behavior Module David F. Miller Center for Retailing Education and Research

Young Consumers Preferences

Page 16: Page 1 Shopping Behavior Module David F. Miller Center for Retailing Education and Research 1. Culture Differences

page 16Shopping Behavior Module David F. Miller Center for Retailing Education and Research

Shifts in Behavior

Brand to Value Collect information from internet and other

sources Shift from traditional channels-Dept. Stores and

brand exclusive stores to hypermarkets, supermarkets, Internet

Increasing Consumer Sophistication Demand products with more function, better value,

better price, variety Consumers gain more access to product information—

brands, products, prices and channels

Page 17: Page 1 Shopping Behavior Module David F. Miller Center for Retailing Education and Research 1. Culture Differences

page 17Shopping Behavior Module David F. Miller Center for Retailing Education and Research

Shift in Consumption