Our Plan Today

1. Chapter 2
2. Chapter 4
3. Brief of assessment 3
4. Preparation for next
week
CHAPTER 2
CROSS-
CULTURAL
VARIATIONS
IN
CONSUMER
BEHAVIOR
Copyright © 2017 by The McGraw-Hill Companies, Inc. All rights reserved.
PART II: EXTERNAL INFLUENCES

2-3
 Learning Objectives

L01 Define the concept of culture

L02 Describe core values that vary across culture and

influence behaviors

L03 Understand cross-cultural variations in nonverbal

communications

L04 Summarize key aspects of the global youth culture

L05 Understand the role of global demographics

L06 List the key dimensions in deciding to enter a foreign

market
 We see the world through
our lenses of cultural perception
 We see the world through
our lenses of cultural perception
 We see the world through
our lenses of cultural perception
 Definition of Culture
• Complex concept that include:
ü Knowledge
ü Beliefs
ü Art
ü Law
ü Morals
ü Customs
ü Any other capabilities acquired by
humans as members of society.
• Influences an individual’s thought
processes and behaviors
 Nature of Culture

• Culture is acquired
from our
experiences and
learning
• It supplies norms
and sanctions:
appropriate and
inappropriate
behaviors in
societies
• Consumers are
seldom aware of
cultural influences
 Interaction between values, norms, and
consumption patterns

Norms:
Give rise to norms Specify ranges of
appropriate
behaviors
Cultural Marketing
Values Strategy

Associated sanctions
Sanctions:
Penalties for
violating norms

https://www.youtube.com/watch?v=vUM
QeNw2QDA

1
 Culture & Change
1. Cultures are not static, they evolve
and change slowly over time

2. Sometimes changes can be more

rapid:

Ø Technological advances

Ø Dramatic events e.g., Covid-19

3. Marketers need to monitor changes:

Ø Multi-cultural societies, lifestyle,

women in the labour market,
gender equality, younger
generation vs older one…

https://www.youtube.com/watch?v=z2T-Rh838GA

1
 Classification of Cultural Values
vThree broad classifications are used:

1 Other-oriented 2 Environment- 3 Self-oriented

Appropriate oriented Reflects
relationships and Prescribes a objectives and
behaviours with society’s approaches to life
others relationship with that are desirable
its economic, for an individual of
technical, physical a society
environments

v These numerous values are differ across cultures and affect

consumption.
 Other-oriented Values
• Individual vs collective: are people driven by acting for the
good of the community over an individual’s good? Group
conformity or individual differences and diversity?
• Romantic vs practical: does a society believe that “love
conquers all?” Are open courtship and physical proximity
accepted?
• Adult & child: is family life organized to meet the needs of the
children or the adults? What is the child’s role?
• Masculine vs feminine: are rank, prestige, and important roles
assigned primarily to men or women? Does the husband or wife
or do both of them make important decisions in the family?
• Competition vs cooperation: do people obtain success by
excelling over others, or by cooperating with them?
• Youth vs age: are wisdom and prestige assigned to the
younger or the older members of a culture?
 Environment-oriented Values
• Nature threatening vs friendly: Is nature regarded as
something to overcome or admire?
• Tradition vs change: is society’s existing patterns considered
to be superior to new patterns?
• Performance vs status: is the culture reward system based on
individual’s performance or on inherited factors such as family
or class?
• Problem solving vs fatalism: are people encouraged to
overcome problems or take a “whatever will be, will be”
attitude?
• Risk vs security: are those who take risks admired?
• Maximum vs minimum cleanliness: is cleanliness pursued
beyond the minimum level needed for health?
 Self-oriented Values
• Active vs passive: is a physically active approach to life
valued more highly than a less active orientation?
• Material vs non-material: how much importance is attached to
the acquisition of material wealth?
• Hard work vs leisure: is a person who works harder admired?
• Humor vs seriousness: is life to be regarded as a strictly
serious affair or is it to be treated lightly?
• Sensual gratification vs abstinence: is it good to enjoy
sensual pleasure (food, drink, etc.)?
• Postponed vs immediate gratification: are people
encouraged to “save for a rainy day” or “live for today”?

https://www.youtube.com/w
atch?v=8mjs_aoaUXI
Which Cultural Value?
Which Cultural Value?

https://www.youtube.com/watch?v=9Y-YJEtxHeo
Which Cultural Value?

https://www.youtube.com/watch?v=qIVDxL2lgN4
Which Cultural Value?
 Values Of Learning
From Different Cultures
America
India Vietnam
Mali Turkmenistan Nicaragua

Apple – Inclusion & Diversity

https://www.youtube.com/watch?v=cvb49-Csq1o
 Values Of Learning
From Different Cultures
Why Starbuck struggles in Vietnam?

https://www.youtube.com/watch?v=llwyY4BDbfc&t=21s
 Variables influencing cross-cultural
marketing strategies

Language

Demographics
Consumer Marketing
Behaviour Strategy
Value

Non-verbal
communication

https://www.youtube.com/watc
h?v=aKfPg0LN_2o
Variables influencing cross-cultural
marketing strategies
Variables influencing cross-cultural
marketing strategies
 Language Challenge in Marketing
• “Come alive with Pepsi” was
translated in Mandarin into
“Pepsi brings your ancestors
back from death”
• Chevrolet Nova – the car that
does not go (in Spanish)
• An advertisement for a Swedish
vacuum cleaner read ‘Nothing
sucks like an Electrolux’.
• A French ad supposed to say
‘Have a Coke and a smile’
sounded like ‘Have a Coke and
a mouse’.
• A car model was called ‘Fiera’,
which means ‘ugly old woman’.
Value As An Indicator For
Marketing Strategy
 Non-verbal communication in
marketing
• Time
• Symbols
• Etiquette
• Space
• Friendship
• Agreement
• Things

• Egypt: Be patient
• Italy: What exactly do you mean?
• Greece: That’s just perfect
What does this cultural symbol mean?

ü Strength
ü Perseverance
ü Love
ü Bravery
ü Dedication
Cultural variations: Space
 Cultural variations: Meaning (1)

Symbol for mourning or death in the Far East and India; happiness and purity in
White
Australia, New Zealand and the United State.
Black Worn for funerals in Britain, US, Australia and New Zealand.
Purple Associated with death in many Latin America countries.
Connotation of femininity in the Netherlands, masculinity in Sweden and the United
Blue
States.
Unlucky or negative in Chad, Nigeria and Germany; positive in Denmark, Romania and
Red Argentina. Brides wear red in China and India, but it is a masculine colour in the United
Kingdom and France.
Yellow
Sign of death in Mexico; infidelity in France.
flowers
White lilies Suggestion of death in England.
Red
Remembrance of lives lost in battle in Australia.
poppies
 Cultural variations: Meaning (2)

Red roses True love in Europe, Britain and Australia.

Unlucky in Ghana, Kenya and Singapore; lucky in Morocco, India, Slovakia,

Number 7
Nicaragua and the United States.
Number 8 Lucky number in China and some parts of South-East Asia.

Triangle Negative in Hing Kong, Korea and Taiwan; positive in Columbia.

Symbol of Nazism 9when reversed0 in many parts of the world; a sacred religious
Swastika
Hindu symbol in India.

Owl Wisdom in the United States; bad luck in India

Cranes Symbol of peace in Japan.

Doves With an olive branch, is a symbol of peace in many countries.

Deer Speed and grace in the United States; homosexuality in Brazil.

 Cultural variations: Etiquette

• Eye contact
• Touching
• Nose blowing, spitting, sole of shoe
• Business cards
• Contact between males
• Attitudes towards women

https://www.youtube.com/watch?v=bdeFdFEbuqk
 Cross-cultural marketing strategy
checklist
1. Is it a homogenous culture?
2. What need will the product fill in this culture?
3. Can enough people afford the product?
4. What cultural values, attitudes, and behaviors are relevant to
this product?
5. What are the distribution, political & legal structures?
6. How can the firm communicate about the product?
7. What are the ethical implications of marketing the product in
that culture?
 How will cultural variations
influence marketing decisions?
 Global Cultures
A Global Youth Culture?
• Mass media and the Internet have had an impact of uniformity among
teens around the world.
• They tend to watch many of the same shows, movies and videos, listen
to the same music, and dress alike.
• Technology is important factor but U.S. youth and brands no longer lead
the way.

BTS performance in Paris

5 models of Vinfast e-cars at CES Las Vegas
2-36
 Global Demographics
Demographics describe a population in terms of its size,
structure, and distribution.
• Demographics are both a result and a
cause of cultural values.
Ø For example, densely populated
societies, such as Vietnam, are
likely to have more of a collective
orientation than an individualistic
one.
• Disposable income is one aspect of
demographics--the rapid growth in
personal income in parts of Vietnam
has led to an overall market explosion!

2-
 Global Demographics
Marketers increasingly use Purchasing Power Parity (PPP)
rather than average or median income to evaluate markets.
PPP is based on the cost of a standard market basket of
products bought in each country.
The following shows four countries in terms of PPP:
Country Per Capita % of Total income Per Capita
Income (to top 10%) PPP

Brazil $4,791 45% $8,596

China $1,721 35% $4,091
United Kingdom $37,266 29% $31,580
United States $41,674 30% $41,674

2-
Using demographic to assess
a market potential

3
CHAPTER 4
The Changing
American
Society:
Demographics
and Social
Stratification
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
PART II: EXTERNAL INFLUENCES

4-
 Learning Objectives

L01 Understand the critical role that demographics play in

influencing consumer behavior

L02 Define the concept of generations and discuss the

generations that exist in America

L03 Explain the concept of social stratification and the role

that socioeconomic factors play

L04 Identify and discuss the major social classes in

America

L05 Understand how social class is measured

L06 Discuss the role of social class in developing

marketing strategies
Demographics and Social Stratification

Demographics

ü Population and Size

ü Occupation
ü Education
ü Income
ü Age
Demographics and Social Stratification

Demographics
Demographics and Social Stratification
Demographics and Social Stratification
Demographics and Social Stratification

18-24 25-34 35-44 45-54 55-64 65+

Understanding American Generations
A Generation or age cohort is a
group of persons who have
experienced a common social,
political, historical, and economic
environment.
Cohort analysis is the process
of describing and explaining the
attitudes, values and behaviors
of an age group as well as
predicting its future attitudes,
values, and behaviors.

4-
Understanding American Generations

Ø Pre-Depression

Ø Depression Mature Market

Ø Baby Boom

Ø Generation X

Ø Generation Y

Ø Generation Z

4-
 Understanding American Generations
Baby Boom Generation: A Closer Look
• Compared to prior generations, Boomers are:
Higher income, higher education
More tech savvy
Defining retirement differently
• Boomers also are:
Strong market for “anti-aging” products, travel, and
financial services
Often alienated by overly “youth oriented” appeals in ads
 Understanding American Generations
Segmenting the Boomer Market

Marketers must look beyond the stereotypes:

Stereotype 1
ü Boomers all have the same values and outlook
Stereotype 2
ü Boomers are self-centered
Stereotype 3
ü Boomers are not tech savvy
Stereotype 4
ü Boomers are married empty nesters who are downsizing
Stereotype 5
ü Boomers are all retiring early and wealthy

4-
 Understanding American Generations
Generation Xers: A Closer Look

• Smaller than previous generations

• Highly educated, with more college attendance and
graduates than previous generations; 20% of Gen X women
earn more than their spouses
• More diverse and open to diversity than previous generations
• Both cynical and sophisticated about products, ads and
shopping
• Materialistic and impatient

4-
Understanding American Generations
Generation Yers: A Closer Look
• Really Two Sub-Markets: Young Gen Y and Older Gen Y
• Expected to have at least as high of education level as
previous generation
• Factors they believe make their generation unique
Technology use
Music and pop culture
Tolerance
Intelligence, and
clothes

4-
 Understanding American Generations
Targeting Generation Z
• Known as Digital Natives, Generation @, Net Generation
• $200 billion purchase power!
• Buying patterns formed as young teen will follow through life
• Gen Z easily bored; use of music, language and images key
to remain relevant and fresh

4-
 Social Stratification

• Social Rank and Social Class System

• Status Crystallization
• Social Structure in the United States
• The Measurement of Social Class
• Social Stratification and Marketing Strategy

4-
 Social Stratification

• Social rank:
Ø One’s position relative to others
Ø Defined by on one or more
dimensions (parental status,
education, income...) valued by
society
Ø Also referred to as social class
and social standing
• Social class:
Ø Group of people in a society
that share similar economic
positions, status, values,
lifestyles, interests, education
and behaviour.
 Social Stratification

• Status dimensions, such

as parental status,
education, occupation and
income, set limits on one’s
lifestyle, including one’s
residence.
• Status crystallization,
which is moderate in the
U.S., reflects the
consistency of these
status dimensions.
 Social Structure in the United States
Social Standing is Derived and Influences Behavior
Social Structure in the United States
Social Structure in the United States
Social Structure in the United States
Middle Americans
Upward Pull Strategy

4-
 Measurement of Social Class
• Two basic approaches to
measuring social status:
Ø Single-item index: education,
occupation, income, age...
Ø Multi-item index: social status,
including demographics and
attitude, values, lifestyle...
• Since an individual’s overall status is
influenced by several dimensions,
single-item indexes are generally
less accurate than are multi-item
indexes.
Social Stratification and Marketing