Thirteen: Cross-Cultural Consumer Behavior: An International Perspective

CHAPTER
THIRTEEN
Cross-Cultural
Consumer Behavior:
An International
Perspective
Learning Objectives
1. To Understand the Importance of Formulating an

Appropriate Multinational or Global Marketing
Strategy.
2. To Understand How to Study the Differences
Among Cultures While Developing Marketing
Strategies.
3. To Understand How Consumer-Related Factors
Impact a Firm’s Decision to Select a Global, Local, or
Mixed Marketing Strategy.
4. To Understand How Lifestyle and Psychographic
Copyright Segmentation Canas Prentice
2010 Pearson Education, Inc. Publishing Be Used.
Hall Chapter Thirteen Slide 2
Under What Circumstances Would This English-Language Ad
Attract Affluent Consumers from Largely
Non-English Speaking Countries?
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Thirteen Slide 3
If They Frequently Visit the United States
and Regularly Read American Upscale Magazines
The Imperative to Be Multinational
• Global Trade
Agreements
– EU
– NAFTA
• Winning Emerging
Markets
• Acquiring Exposure to
Other Cultures
• Country-of-origin Effects
The Best Global Brands - Table 13.1
1. Coca-Cola
2. IBM
3. Microsoft
4. GE
5. Nokia
6. Toyota
7. Intel
8. McDonald’s
9. Disney
10.Google
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.
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
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
Why Do Most Global
Airlines Stress Pampering
Business Travelers in Their Ads?
Upscale International Business
Travelers Share Much in Common.
Other Country-of-Origin Effects
• Mexican study uncovered:

– Country-of-design (COD)
– Country-of-assembly (COA)
– Country-of-parts (COP)
Conceptual Model of COD and COM
Figure 13.2
The effort to
determine to what
Cross-Cultural
extent the
Consumer
consumers of two
Analysis
or more nations are
similar or different.
Cross-Cultural Consumer Analysis
Issues
• Similarities and • The greater the similarity
differences among between nations, the
people more feasible to use
• The growing global relatively similar
middle class marketing strategies
• The global teen market • Marketers often speak to
the same “types” of
• Acculturation
consumers globally
• Are people becoming more similar?

• Why or why not?
Comparisons of Chinese and American
Cultural Traits - Table 13.2
• Chinese Cultural Traits • American Cultural Traits
• Centered on Confucian • Individual centered
doctrine • Emphasis on self-
• Submissive to authority reliance
• Ancestor worship • Primary faith in
• Values a person’s duty rationalism
to family and state • Values individual
personality
Issues
• Similarities and • Growing in Asia, South
differences among America, and Eastern
people Europe
• The growing global • Marketers should focus
middle class on these markets
• The global teen market
• Acculturation
Issues
• Similarities and • There has been growth in an
differences among affluent global teenage and
people young adult market.
• They appear to have similar
• The growing global
interests, desires, and
middle class consumption behavior no
• The global teen market matter where they live.
• Acculturation
Issues
• Similarities and • Marketers must learn
differences among everything that is
people relevant about the
• The growing global usage of their product
middle class and product categories
• The global teen market in foreign countries
• Acculturation
Research Issues in Cross-Cultural Analysis
Table 13.8
FACTORS EXAMPLES
Differences in language and meaning Words or concepts may not mean the
same in two different countries.
Differences in market segmentation The income, social class, age, and sex of
opportunities target customers may differ dramatically
in two different countries.
Differences in consumption patterns Two countries may differ substantially in

the level of consumption or use of
products or services.
Differences in the perceived benefits of Two nations may use or consume the
products and services same product in very different ways.
Table 13.8 (continued)
FACTORS EXAMPLES
Differences in the criteria for evaluating The benefits sought from a service may
products and services differ from country to country.
Differences in economic and social The “style” of family decision making

conditions and family structure may vary significantly from country to
country.
Differences in marketing research and The types and quality of retail outlets
conditions and direct-mail lists may vary greatly
among countries.
Differences in marketing research The availability of professional consumer
possibilities researchers may vary considerably from
country to country.
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
Products that are
manufactured,
packaged, and
World
positioned the same
Brands
way regardless of the
country in which they
are sold.
Why Does One of the World’s Most Highly Regarded
Wristwatch Brands Use a Single Global Advertising
Strategy (Only Varying the Language)?
They Speak to Them in Their Own Language to
Maximize their “Comfort Zone.”
Cross-Border Diffusion of Popular Culture
Figure 13.6
Are Global Brands Different?
• According to a survey – yes

• Global brands have:
– Quality signal
– Global myth
– Social responsibility
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
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
• If your university is considering a satellite

business program in Korea:
– How would they need to adapt the program?
– What would prompt these changes?
Framework for Assessing
Multinational Strategies
• Global
• Local
• Mixed
A Framework for Alternative Global
Marketing Strategies - Table 13.10
COMMUNICATON
STRATEGY
PRODUCT STANDARDIZED LOCALIZED

STRATEGY COMMUNICATIONS COMMUNICATIONS
STANDARDIZED Global strategy: Mixed Strategy:

PRODUCT Uniform Product/ Uniform Uniform Product/
Message Customized Message
LOCALIZED Mixed strategy: Local Strategy:

PRODUCT Customized Product/ Customized Product/
Uniform Message Customized Message
Cross-Cultural
Psychographic Segmentation
• The only ultimate truth possible is that

humans are both deeply the same and
obviously different.
Six Global Consumer Segments
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mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.
Copyright © 2010 Pearson Education, Inc. Publishing as

Prentice Hall

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CHAPTER

1. To Understand the Importance of Formulating an

• What challenges may Toyota have faced to

• Mexican study uncovered:

• Are people becoming more similar?

Differences in consumption patterns Two countries may differ substantially in

Differences in economic and social The “style” of family decision making

• According to a survey – yes

• Adaptation of advertising message to specific

• If your university is considering a satellite

PRODUCT STANDARDIZED LOCALIZED

STANDARDIZED Global strategy: Mixed Strategy:

LOCALIZED Mixed strategy: Local Strategy:

• The only ultimate truth possible is that

Copyright © 2010 Pearson Education, Inc. Publishing as

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