5 - 1

How Culture Influences Consumer Behavior (Chapter five )

Zhiyan (Maggie) Wu

School of Management,

Shanghai University of International Business and Economics

5 - 2

Today’s Contents

1. What is culture2. How the Chinese and American cultures

influence their consumer behaviors3. Marketing insights from these

comparisons

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1. Culture Culture is the most basic cause of a person’s

wants and behavior culture reflects people’s core values , which

create opportunities for new products.

Consumer behavior Core value’s differences

Chinese consumer behaviors’ characteristics

American consumer behaviors’ characteristics

1. Collectivism and individualism

face and conformity consumption

Equal and personality consumption

2. . Family members’ relationship

Children’s small power in making decision

Children ‘s big power in making decision

3. Time-consciousness Weak: sensitive to price more than time

Strong : love time-saving products

2. Differences of Chinese and American consumer behaviors due to core value factors (Kanuk et.al, 2008)

Consumer behaviorCore value’s differences

Chinese consumer behavior ‘s characteristics

American consumer behavior ‘s characteristics

4. Pessimism and optimism

Conservative consumption: love savings and thrift

Excessive consumption: dare to consumption , love novelty

5. awareness of environmental protection

Weak Strong: love environment –friendly products

6. Cooperation and competition

“Guanxi “ & “Renqing “ consumption

Objective comparison, rational consumption

7. Materialism & Non materialism

pay attention to practical features , love happiness due to contentment

Seek and possess more material products

资料来源： Leslie Kanuk, Leon Schiffman and Harvard Hansen, Consumer Behavior, p.424-428. Financial Time Prentice Hall, 2008

2.1Core value impacts on consumer behaviors : Collectivism & individualism

Chinese: Collectivism •Face consumption •Conformity consumption

American: Individualism•Equal consumption•Personality consumption

2.11 Collectivism & individualism

The Chinese ‘face’ consumption

The American equal consumption

2.11 Collectivism

Why the Chinese loves ‘face’ consumption?1.The ‘face’ concept is the idea of gaining respect, or the concern for public reputation. 2.Chinese ‘face’ consumption is an inner sense of worth which is experienced by their ego (Wong and Ahuvia 2012).

2.11 Individualism

Why the American loves equal consumption?•In individualist cultures, the American people value the equality as the most important value.

• 2.1.2 Collectivism & individualism

Chinese conformity consumption

American personality consumption

• 2.1.2 Collectivism: Chinese conformity consumption

Why the Chinese loves conformity consumption?1.Conformity refers to the behavior that people consume goods is strongly directed by their group-memberships (Kotler, 2005). 2.The collectivists encourage the Chinese to place their loyalty to their family and kin(Bond,2007). 3.Thus, the Chinese consumers often conform to the majority opinion of the groups they communicate with thereby possessing products because of the membership connotations (Kanuk, 2008)

• 2. 1.2 Individualism: American personality consumption

• Why the American loves personality consumption?

• Personality refers to individual differences in characteristic patterns of thinking, feeling and behaving.

• In individualist cultures, the American people value personal freedom, and tend to be self-focused.

2.2Core value impacts on consumer behaviors : family member’s relationship

Chinese: Confucianism•Children’s small power for their decision making in consumption

American: Individualism•Children’s big power in their decision making in consumption

2.2 Confucianism & individualism : family member’s relationship

• Chinese children American children

• 2.2 Confucianism: Chinese Children’s small power in their decision making

Why the Chinese Children have small power for their decision making in consumption?•In Confucianism, filial piety portrays the relationship between Chinese parent and child. •The confucianists encourage young people should respect the old because they have embodied life experience.•Thus, the Chinese Children have small power for their decision making in consumption

• 2.2 Individualism : American young consumers’ big power for their decision making

Why the American Children have big power for their decision making in consumption?

•In individualist cultures, the American people respect equality and autonomy. •Thus, the American Children have big power for their decision making in consumption(Kanuk, 2008)

2.3. core value impacts on consumer behaviors : time consciousness

• Chinese weak time consciousness: e.g. loving drying wet clothes in the sun

• American strong time consciousness :e.g. loving time-saving products, such as dryer machine

• 2.3 examples of time consciousness for the Chinese and American

• 2.3 thrift value impacts

Why the Chinese has weak time consciousness ?

•Because of thrift value impact, the Chinese has weak time consciousness(Kanuk, 2008)•Examples include they loving wash dishes by hand and drying clothes in the sun, etc.

• 2.3 efficiency value impacts

Why the American has strong time consciousness ? (e.g they love to use time-saving products)

•Because of efficiency value impact, the American has strong time consciousness(Kanuk, 2008)•Examples include they loving using dishwasher and drying machine, and loving buy iced vegetables.

3.1Marketing insights from this comparison : Collectivism & individualism

• Chinese Collectivism: Group-oriented consumption (face and conformity consumption )

• American Individualism: equal and personality consumption

• Marketing insights: marketers may use group(relationship) marketing and leader- opinion marketing to Chinese consumers while to American consumers with more novelty and creative products.

3.2 marketing insights from this comparison: family member relationship

• Chinese Confucianism: Children’s small power in their consumption decision making

• American Individualism: Children’s big power in their consumption decision making

• Marketing insights: children products marketers pay more attention to parents ( Mum) in Chinese market while to American children with novelty products

3.3. marketing insights from these comparisons

• Chinese weak time consciousness: e.g. loving drying wet clothes in the sun

• American strong time consciousness :e.g. loving time-saving products, such as dryer machine

• Marketing insights: marketers pay more attention to products price to Chinese consumers while developing more time-saving products to American consumers