Chapter 15The International Consumer

Consumer Behavior: A FrameworkJohn C. MowenMichael S. Minor

Key Concepts

Cross-cultural symbols

Values of Japan and the U.S.

Back translation Differences in time

perception Nonverbal behavior

Ethnocentricity and animosity

Binational products The matchup

hypothesis Standardized global

marketing Pattern advertising

Introduction No matter how hard man tries, it is

impossible for him to divest himself of his own culture, for it has penetrated to the roots of his nervous system and determines how he perceives the world…People cannot act or interact at all in any meaningful way except through the medium of culture.

Hall and Hall (1987), Hidden Differences: Doing Business With the Japanese. New York: Anchor Press/Doubleday, p. 188.

Cross-Cultural Use of Symbols Meaning of symbols differs across cultures. Symbolic meaning of nonverbal

communication can also create problems. It is important to know the implicit meaning of

a symbol when a company begins to market its products or services internationally.

International Business Cultural Factors

Language Values Politics Technology

and Material Culture

Social Organization

Education Religion

The East Asian Consumer How the societies view the individual

How employees and customers are viewed

Values in Japan are beginning to change with an increased desire for leisure time Karoshi (death by overwork) still an issue

The Latin American Consumer NAFTA has

increased U.S.-Mexico trade.

U.S. products viewed favorably.

Spanish language variations possibly important.

The East European Consumer Western products are in huge demand Income is less than in western Europe, but

productivity is rising after political turmoil in the early 1990s.

Marketing requires an understanding of the different cultures and business practices.

The West European Consumer The EU contains

many nations, cultures, and languages

There is no “Euroconsumer”

The African Consumer Africa is changing rapidly. Africans are often

bilingual, speaking their own language and that of former European colonial administrators.

The culture and business climate is strongly influenced by Europe with Francophone (former French colony)countries liking French products. Anglophone countries give high marks to British and German goods.

American products are highly regarded but only the well-to-do can afford them.

Cross-Cultural Problem Areas Translation National Languages

and Dialects Time perception Symbols Friendship Etiquette

Nonverbal Behavior Country-of-Origin

Issues Ethnocentricity Animosity Bi-national products

Translation Promotional messages must be accurately

translated. The method used to avoid mistakes is back translat ion. The process involves translating the message back and forth by different translators. In this way differences in meaning can be identified.

Back translation may solve the translation issue, there is the question of whether the context is the same, even if the words are translated accurately.

National languages, local dialects: lingua franca

National Languages and Dialects China, India, and Africa present the greatest

linguistic challenges to Westerners. China is slowly moving towards a common

language. India has even more languages than does China.

Coverage of India for marketers is less complicated because the states have three official languages: English, Hindi, and the predominant state language. Advertisers place the same in ad in newspapers in these three languages.

In Africa there are over 1,000 mutually unintelligible languages, making marketing a major challenge.

Time perception Time is precious for Americans : in many

other countries, time is much less important. A study was performed on the accuracy of

bank clocks, the average walking speed of pedestrians on a city street, and how long it took postal clerks to sell a stamp in several cultures: On all three measures, Japan had the most

accurate and fastest times. United States and England were either second or

third on each. Indonesia tended to have the most relaxed pace.

Symbols 7 is unlucky in Ghana, Kenya, lucky in India

and the Czech Republic. 4 is unlucky in Japan, China. 8, 3, 2 sound good in Hong Kong. “Wearing a green hat” refers to a cuckholded

Chinese.

Friendship In China & Japan friendship is a substitute for

a legal system. We view friendships as more disposable.

Guanxi (personal relationships and pull) are seen as critical.

Etiquette Hugging and kissing

More prevalent in Latin America than here: less prevalent in Asia than here.

Eating habits Chinese slurp noodles: some Europeans

won’t eat any food with their fingers.

Non-verbal Behavior Actions, movements and utterances that

communicate. In some Russian villages, boys dance with

chairs until a girl indicates interest. So in Russia, It Takes One to Tango.

Spacing issues Context

Country-of-Origin IssuesCountry-of-Origin Issues Bi-national products

– “assembled in X using materials from Y.”– Made in Mexico by a Japanese company.

Ethnocentrism– Assumption that own group is center of universe.

Match-Up Hypothesis Animosity

Ethnocentricity It is a common tendency for people to:

Interpret others from the perspective of their own group.

Reject those who are culturally dissimilar.

Binational Products The current trend is manufacturing product

components in one country and assembling in another, or designing in one and manufacturing in another.

Firms should consider the effects of multiple national origins on product quality evaluations.

Matchup Hypothesis Consumers have preferences for goods that

match their notion of the country of origin. Mexican tequila is good, Russian vodka is good,

but not the obverse.

Animosity Some people may prefer not to buy products

from a certain country. Chinese consumers have been found to hold

animosity towards Japanese products in general. Older Mexican consumers are less likely to buy

U.S. products than younger Mexicans.

Adapting or Standardizing Products and Services

Adapting products to the needs of local consumers is closer to the marketing concept.

Standardizing products may result in savings to the consumer.

Tangible Products vs. Services

Generally, services and industrial products are less likely than consumer products to need adaptation to local markets.

A Conclusion to The Standardization Debate?

Both standardization and adaptation offer customer benefits.

As incomes increase, people in different countries seem to develop more-similar tastes. This is especially true for younger consumers. So more standardization is likely.

The final decision is a management responsibility.

Research in International Marketing

To identify taste preferences, companies must engage in marketing research across cultures.

A main problem is how to standardize measures of consumption values.

Technical problems (e.g. the ability to do mail surveys) are also important.

Country vs. Segment TargetsCountry vs. Segment Targets

Two Approaches to Global Segmentation:

Countries

Market Segments

Country vs. Market Targets Managers of firms doing business in several

countries can choose two broad segmentation approaches: Country segments or market segments. In the the first approach, Brazil is viewed as a

target market segment. Using the second approach, although Brazil is the

physical location of a large group of consumers, the important variables for segmentation are commonalities in needs and wants among consumers across nationalities.

Managerial Implications Positioning. The origin of the product should

usually be clear to help differentiate it from its competitors.

Research. Firms must perform cross-cultural research before venturing into another country. The Internet has made international marketing

research easier, but it has introduced another set of issues:

Penetration of the Internet varies from country to country. Marketers using the Internet restrict themselves to those with

internet access!

Implications continued… Marketing Mix. Products should be

appropriate for local conditions. A recent study showed that men in Eastern

Europe are more fashionable than women because men have been more exposed to outside influences. So male clothing should be more flamboyant than female clothing.

Segmentation. The main segmentation issue is determining whether national borders are useful segmentation variables. Concentrating on cross-border segments that

share commonalities may make more sense.