CONSUMER BEHAVIOUR AND...
Transcript of CONSUMER BEHAVIOUR AND...
Cross-Cultural Marketing and Advertising
CONSUMER BEHAVIOUR AND SEGMENTATION
Cultural assumptions and behaviour
Hofstede:
Collectivism vs. Individualism
Collectivism (Japan, Iran, Taiwan…)
emphasis in-group needs & goals, beliefs shared with in-group, homogeneous in-groups heterogeneous out groups, norms predict behaviour better than attitudes
Individualism (U.S., G.B., CA, I…)
emphasis self needs, beliefs distinguish from others, homogeneous out-groups heterogeneous in-groups, attitudes predict behaviour better than norms
Hofstede:
Masculinity
Masculinity (Venezuela, Italy, Germany, Australia...)
Ambitious, need to excel, tendency to polarize, live in order to work, big & fast are beautiful, admiration for the achiever, decisiveness
Femininity (Sweden, Thailand, Spain…)
quality of life, serving others, striving for consensus, work in order to live, small and slow are beautiful, sympathy for the unfortunate, intuition
Hofstede:
Power distance
Large (Philippines, Mexico, India, France…)
high dependence needs, inequality accepted, hierarchy needed, superiors often inaccessible, power-holders have privileges, change by revolution
Small (U.S., Netherlands, Australia, Israel…)
low dependence needs, inequality minimized, hierarchy for convenience, superiors accessible, all have equal rights, change by evolution
Hofstede:
Uncertainty avoidance
Strong (France, Belgium, Greece, Portugal…)
anxiety, higher stress, inner urge to work hard, emotions accepted, conflict is threatening, need of consensus, need to avoid failure, need for laws & rules
Weak (U.S. ,Hong Kong, Canada, Singapore)
relaxed, lower stress, emotions not shown, conflict and competition accepted, acceptance of dissent, willingness to take risks, few rules
Hofstede:
Long/short term orientation
High (Hong Kong, Taiwan, Japan, South Korea, Brazil…)
many truths, pragmatic, long-term orientation, acceptance of change, thrift for investment
Low (West Africa, Canada, Pakistan…)
absolute truth, conventional/traditional, short term orientation, concern for stability, quick results expected, spending for today
(Nakata and Sivakumar)
Applications I.
Individualism promotes new product development during the initial or conceptualization phase - nonconformity
Collectivism promotes new product development during the implementation phase -interdependence
Femininity positively affects the conceptualization stage of new product development - supportive climate
Masculinity promotes the implementation stage -goal directedness and formalization
Applications II.
Low power distance facilitates new product development during the conceptualization stage - diverse ideas
High power distance facilitates new product development at the implementation stage -centralized command
Low uncertainty avoidance facilitates the initiation phase - risk taking and minimal controls
Applications III.
High uncertainty avoidance facilitates implementation stage - tight planning and controls
Long term orientation promotes new product development
Short term orientation impedes new product development
Current trends I.
Individualism
+ purchase insurance, have dogs, own a motor home for leisure, read more books, have an answering machine
Masculinity
+ status purchases (watches, jewellery), importance of car engine power, business class travel, confidence in advertising
– partner involvement in car choice, women as main shoppers
Current trends II.
Power Distance
+ confidence in the press, lack of confidence in police, child obedience
Uncertainty Avoidance
+ buying new (vs used) cars, buying precious metals and gems, use of mineral water
– buying stocks, use of internet and other media, eating ice-cream, frozen food, confectionary and snacks
Modern culture
Individualist orientation
Strong emphasis on material achievements – doing/having not being
Strongly economic, “commoditized” time
Tendency to discard past in favour of future orientation
Fairly high degree of utilitarianism
GfK:
Convergence of behaviour…?
The pursuit of well-being
– consumers know what they are supposed to do to live a healthy lifestyle
Life on the go
– consumers live mobile lifestyles, they are not permanently “on the move”, but that international travel, shuttling between work and home, vacations and leisure all lead to mobility of attitude and mind as well as body
…
Pragmatic materialism
we want products which combine a number of positive features (confectionery has to be both tasty and healthy, a
handbag must offer luxury at an affordable price, a pair of shoes must be comfortable and high quality...)
New 4 old media
Word of mouth propaganda
An ageing population
…
In pursuit of relaxation
People try to escape its stresses and strains. The more the standard of living of the middle classes rises in the developing countries, the more consumers pursue the symbols of a successful lifestyle.
Consumers in control
it is consumers who will decide how and which products meet their expectations
Major questions
How do the buyers’ characteristics –cultural, social, personal, and psychological – influence buying behavior?
How does the buyer make purchasing decisions?
Model of Buyer Behaviour:Similarities vs. Differences
Multi-domestic vs. Global
If products, consumer, behaviour, or elements of the marketing mix depend on culture (culture-bound), multi-domesticity is stronger
There exists a continuum from pure global to fully multi-domestic
Socio-cultural environment
Family – Individualism & Collectivism Extent of group/family influence on attitudes and buying
behaviour? Consumer behaviour reflects self-actualize individual identity or
group belonging?
Social class (caste) Is it locally important? Is class belonging demonstrated through consumption?
Sex roles Division of labour? Who makes buying decisions? Who shops?
Age influences Do people know their age? Value of younger and older people in society? Influence processes across age groups? Purchasing power distribution across generations?
Differences in local consumption patterns
Climate
Local regulations
Local taste for similar items
Different use of similar items
Different meaning in context for similar products
Differences in motivations and buying behaviour
Local consumption habits rooted in early childhood, and socialization at school and in the family
Example of consumer behaviour for milk-
based products in France and China
Consumption/cap: 68 litres /year
Consumption of diversified milk-
based products: milk, cheese,
butter, yoghurt, etc.
Daily consumption.
Purchasing decision: basic quality
being well controlled, price is a key
factor
Consumers are used to milk-
based products and receptive to
symbols which emphasize
genuineness, origin, organic
manufacturing (labels, bio, etc.)
Consumption/cap: 3 litres/year
Consumption focused on yoghurt
(80%)
Product perceived as exotic
Purchasing decision: choice of
high quality imported products
perceived as having superior
quality when compared with
domestic products
Consumers are uneducated for
using this kind of product properly
(especially as concerns
conservation …)
France China
'McDonaldization' of society
standard (key benefit = predictable performance);
the same for everybody;
the same everywhere in the world;
the same over time.
Euroconsumers
Culture and life-styles
Different needs and demands
Conservatives vs. modernism
Rational vs. emotional aspects
Low context vs. high context
Organizational Buying
Fewer buyers
Larger buyers
Close supplier-customer relationship
Geographically concentrated buyers
Professional purchasing –standardisation
Ethno Marketing
a strategy that analysis the consumerism and buying behaviour of ethical minority groups, in order to appealing marketing concepts that target those minority groups.
Ay Yildiz
New markets
Ethno Marketing
can be a very effective strategy based also on cultural basis.