12Chapter

Cross-Culture

Modular: Afjal HossainLecturer

Department of Marketing

Patuakhali Science and Technology University

Schiffman G. Leon & Kanuk Lazar Leslie Consumer Behavior, 8th ed. Ch. 14, p. (471-492)

Learning Objectives:

How cross-culture satisfies international market?

How cross-culture is formed?

How cross-culture is measured in consumer behavior/ selling?

Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 02

Definition:

Cross-Culture & Analysis

The culture of two/ more nations. Cross-

culture consumer analysis is the effort todetermine to what extent the consumersof two/ more nations are similar ordifferent.

Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 03

Basic Research Issues in Cross-Cultural Analysis:

Difference in language & meaning

Difference in market segmentation opportunities

Difference in consumption patterns

Difference in the perceived benefits of products and services

Difference in economic and social conditions and family structures

Difference in marketing research and conditions

Difference in marketing research possibilities

Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 04

Objectives:

1. Similarities and differences among people

The greater the similarity between nations, the

more feasible it is to use relatively similarmarketing strategies in each nation. On thecontrary, if the cultural beliefs, values & customsof specific target countries are found to differwidely, then a highly individualized marketingstrategy is indicated for each country.

Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 05

Objectives:

2. Time Effects

In USA, 80% of work time spent on task & 20% is

used to social activities.

In India/ Nepal, 50% of each.

In Japan, social time is having tea with peers in themiddle of the day.

Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 06

Objectives:

3. The growing global middle class

Income equivalent to $5,000/yearly is

considered a middle class people.

4. Acculturation is needed

Acculturation is the dual process: 1st marketer

must thoroughly orient themselves to the values,beliefs & customs of the new society toapproximately position and market their products.

Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 07

Objectives:

4. Acculturation is needed

2nd To gain acceptance for a culturally new

product in a foreign society, they must develop astrategy that encourages members of that societyto modify or even break with their owntraditions.

But in Saudi Arabia, It is illegal to stop people onthe streets because most gatherings of 4/ morepeople are outlawed.

Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 08

Objectives:

5. Applying research techniques

Language and/ word usages often differ from

nation to nation.

Another issue is the scales of measurement.

In USA, 5/ 7 point scale is adequate but someother countries 10/ 20 point scale are used.

Research facilities i.e. telephone interviewing arenot available in some countries.

Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 09

Importance of Cross-Culture:

To be multinationalNow marketing of a product is not limited to home country, it goes to other countries for their future growth.

Acquiring exposure to other countriesConsumers obtain a ‘taste’ of different cultures from contact withforeign movies, theater, art and artifacts, through travel, living andworking in foreign countries or even by immigration.

Country of origin effectsMany consumers associate France with wine, fashon clothing andperfume, whereas Italy with pasta, furniture, shoes & sports. Japanwith camera and China with consumer electronics.

Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 10

Importance of Cross-Culture:

Examples:

NAFTA (North American Free Trade Agreement)

consisting of USA, Canada & Mexico provides free marketaccess to these countries people.

ASEAN (Association of South-East Asian Nations)consisting of Indonesia, Singapore, Thailand, ThePhilippines, Malaysia, Brunei and Vietnam also providesfree market access to these nations.

Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 11

Alternative Multinational Strategies:

1. Global vs Local

segment whether by ‘shared needs and values’ or by ‘national

borders’

2. Favoring a world brand

world brand products are manufactured, packaged & positioned

in exactly the same way for each country they are sold. Ex:Pantene & Olay oil are the 2 major world brand of Procter &Gamble.

3. Adaptive Global Marketing

Ronald McDonald has been renamed Donald McDonald in Japan

because The Japanese language does not contain the letter ‘R’.

Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 12

Framework for assessing multinational strategies:

Product Strategy

Communication Strategy

Standardized Communication

Localized Communication

Standardized productGlobal Strategy: Uniform product/ Uniform message

Mixed Strategy: Uniformed product/ Customized message

Localized productMixed Strategy:

Customized product/Uniform message

Local Strategy: Customized product/Customized message

Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 13

Framework for assessing multinational strategies:

When looking for success in a foreign market, it

has been suggested that a company shuldremember 3 P’s:

1. Product

2. Place

3. People

Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 14

Degree of fit between marketing strategies and 3 P’s:

3 P’sMarketing strategies

Specific Elements Standardization Localization

Product TechnologyCulture boundReputationProduct perception

HighLowSterlingHigh

LowHighPoor or unknownLow

Place EconomyPartnersCompetition

ProsperousFewLow

StrugglingPlentifulIntense

People TastesSophisticationSegmentsClassification

Little preferenceHighFewIndustrial/ Consumer durables

High preferenceLowManyConsumer nondurables

Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 15

Cross-Cultural Psychographic Segmentation:

There are 6 psychographic segmentation variables are:

Segment Name Descriptions

Strivers They consider material things extremely important i.e. value wealth, status,ambition, and power. Ex: Computers

Devout Have more traditional values like faith, duty, obedience and respect. Leastinvolved in media/ western brands.

Altruists Interested in social issues and causes. Generally well educated & older(median age 44) i.e. Russia & Latin America

Intimates They are focused on relationship close to home i.e. spouses, family orfriends. Heavy users of media/ talking with others.

Fun Seekers Youngest group. They value adventure, excitement, pleasure etc. They are focused on electric media (music).

Creative Dedicated to technology, knowledge & learning from books, magazines &newspapers.

Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 16

Marketing Mistakes:

1. Product Problems

Different country has different choices. Ex: Japanconsumers preferred clearer, les sweet iced tea.

The same color often has different meanings indifferent cultures.

Ex: Blue – Holland (warmth); Iran (death); India(purity)

Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 17

2. Promotional problems

Promotional message must be consistent with thelanguage and customs of the particular target

society.

The word ‘clock’ in Chinese sounds like the word ‘death’

Marketing Mistakes:

Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 18

3. Pricing & Distribution problems

Japan products will be value less if there are not

sufficient middle men because to reach the products tothe consumer they use a lot of middle men.

But USA just opposing Japan.

Marketing Mistakes:

Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 19

Query?

Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 20

Thank You

… For staying with me …

Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 21