Chair for
Marketing and Retailing Trier University Prof. Dr. Prof. h.c. B. Swoboda
2nd practise Master-Study WS 2015/2016
Specialising: Handel und Internationales Marketing-Management
Module: Retail Management und International Branding
INTERNATIONAL BRAND
MANAGEMENT
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
Literature
Required literature (relevant in some excercises)
Steenkamp, J.-B. E. M., Batra, R., & Alden, D. L. (2003), “How perceived
brand globalness creates brand value”, Journal of International Business
Studies, 34(1): 53-65.
Pappu, R., Quester, P. G., & Cooksey, R. W. (2007): “Country image and
consumer-based brand equity: relationships and implications for
international marketing”, Journal of International Business Studies, 38(5):
726-45.
Slide 2
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
… exports (in Mill. USD)
… foreign direct investments (in Mill. USD)
Source: UNCTAD 2015.
Source: UNCTAD 2015.
0
5000
10000
15000
20000
1970 1980 1990 2000 2010 2014
317 2,376
4,261
7,941
18,969 23,725
0
5000
10000
15000
20000
25000
1980 1990 2000 2010 2014
698 2,081
7,511
20,371 25,823
International development of …
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
Domestic Markets
Company
International Brand Strategies –
Global Branding
Country A Country C
Global Brand
Country B
Consistent marketing concept
Slide 4
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
Domestic Markets
Company
Country A Country B
Local
brand 1
Local
brand 2
Product
Individual
marketing concepts
Persil sensitiv Mini Risk
International Brand Strategies –
Global Branding
Slide 5
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
Key Problems in Brand Management
Definition: “Brand as a memory in the heads of the target group”, but
New strategic questions, e.g.
Who are the relevant target groups (and competitors) internationally?
Should I use present brands for the expansion into new (e.g. emerging)
countries and thus build a international Product Brand-Portfolio?
Is my Product Brand-Portfolio “country specific” or “global” or “regional”?
Is my Corporate Brand-Management standardized internationally?
How to deal with new determining factors, e.g.
Firm specific: Resources, e.g. brand competences?
Host country specific: General/macro (e.g. geography, economy, legislative,
cultural) or market/meso (e.g. customer behavior, competition)?
Home country specific: Country of Origin Image, cultural distance?
Slide 6
Chair for
Marketing and Retailing Trier University Prof. Dr. Prof. h.c. B. Swoboda
International Brand Management
2.1 Developments and strategic decisions
2.2 Building Global Customer-based Brand Equity
2.3 Determinants of International Brand Management
2.4 Students’ presentation
2
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
In Detail (2.1, 2.2) …
International corporate and product
brand options and tendencies
Decision options and steps in
international brand management
Global Branding strategy and
building global CBBE
Objectives
Considering brand management
decisions in international markets
Understanding, why firms take
brands global
Highlighting the pros and cons as
well as the decisions of a global
marketing strategy
Developing a global brand strategy
Slide 8
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
10 Worldwide “Corporate”
Brands
45 Worldwide Strategic
Brands
Responsibility of general
management at strategic
business unit level
140 Regional Strategic
Brands
Responsibility of strategic
business unit and regional
management
7,500 Local Brands
Responsibility of local
markets
•Nestle
•Carnation
•Buitoni
•Kit Kat
•Polo
•Cerelac
•Baci
•Macintosh’s
•Vittel
•Stouffer’s
•La Laiterie
•Texicana
•Brigadeiro
•Rocky
•Soils
Examples
•Herta
•Alpo
•Gerber
•Poland Spring
•Mighty Dog
•Smarties
•After Eight
•Coffee-Mate
•Maggi
•Perrier
•L’Oreal
Source: http://www.nestle.com; http://brand/index.asp. Slide 9
Nestle’s Branding Tree
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
Without a doubt: Corporate Brands are internationally equal?
If they are used (endorser strategy or
branded house), they need to be
harmonized, like Henkel or Bayer do that
Even if the strategies are not used (but a
house of brands) the customers know
that the product brands are global or
international or from a particular country
Brand knowledge
Reputation
Brand image
Slide 10
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
Product or Retail Channel Brands are related to some options?
Establishing Global Brands (use of
global, regional (European) or home
country images)
Establishing Local Brands (going close
to the local consumer needs)
Realizing a mixed strategy (having
global, regional and local brands in the
portfolio)
Sweden Japan
Russia China
(3)
Product
Image
(2) Corporate
Image
(1) Country Image
(„Made in ...“)
Slide 11
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
Thus, what is to do?
Coca-Cola as a Global Brand
Slide 12
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
a. Observing Customer Behavior: Worldwide homogenization of needs
Standardization of IM for consumer products is predicated on:
an international equalization of relative income levels
increasing personal consumption and ownership patterns of consumer durables
increased and better communications worldwide
travel patterns of consumers
spread of MNCs
Global companies can reduce their unit costs which allows them to price
penetrate markets and force non-global competitors out
Global Media Consumption
But then …
Slide 13 Source: Levitt (1983)
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
E.g. find across nations segments:
Lifestyle groups in fashion business
Defining and Selecting Effective
Segmentation Criteria
Measurability of criteria, possibility
to identify segments
Behavioral relevance of criteria:
often, easy-to-measure and easy-
to-access criteria (as language,
income, geography) are low on
behavioral relevance
Accessibility of resulting segments
(and potential to isolate the
segments)
Profitability and stability of
segments
Slide 14
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
b. Deal with the Option of Global vs.
Local Marketing Programs 1/2
Advantages
Economies of scale in production
and distribution
Lower marketing costs
Power and scope
Consistency in brand image
Ability to leverage good ideas
quickly and efficiently
Uniformity of marketing practices
Slide 15
Disadvantages
Differences in consumer needs,
wants, and usage patterns for
products
Differences in brand and product
development and the competitive
environment
Differences in the legal environment
Differences in marketing institutions
Differences in administrative
procedures
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
Standardization Adaptation
Goals:
- Harmonization of market presence
- Easier inter-country planning/ expansion
- Use of synergies
Goals:
Higher market share -
Profile in the competition -
Higher communication effects -
Advantages:
- Critical mass
- Scale and learning effects
Advantages:
Better address of customers needs -
Ability to adopt to market changes -
Source: Zentes/Swoboda/Schramm-Klein 2010.
Global
Multinational
Deal with the Option of Global vs.
Local Marketing Programs 2/2
Slide 16
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
c. Define a global, regional or local position
V ö gele
Fast Retailing
Matalan
Gap Cortefiel
Benetton Next
Mango
H&M
Massimo Dutti
Zara Stradivarius
Bershka
Pull &
Bear
- Fashion - Fashion + Fashion +
+ Preis + Preis
- Preis - Preis
V ö gele
Retailing
Matalan
Gap Cortefiel
Benetton Next
H&M
Zara
Bershka
Pull &
Bear
C&A
Slide 17
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
Even if a Brand is standardized it could have various positions
high
low
high
low
Price Adidas
H
Adidas
D
Adidas
F
Prestige/
Quality
Goldstar
Samsung
Sony high
low
high
low
Price Sony
Goldstar
Samsung
Prestige/
Quality
Western EU Middle-/Eastern EU
Slide 18
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
d. Measure the Success – Core- and Peripherial-Elements
Peripheral-Marketing
Elements Supply Chain
Processes
Marketing
Processes
Success across
nations
Success in
host country
Source: Swoboda/Elsner 2013.
Core-Marketing
Elements
Chicken Maharaja Mac McRice
McKebab Le petit McBaguette
Slide 19
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
Brand resonance
Behavioral loyalty
Frequency and amount of repeat purchases
Attitudinal attachment
Love brand
Proud of brand
Sense of community
Kinship
Affiliation
Active engagement
Seek information
Join club
Visit website, chat rooms
Slide 20
Chair for
Marketing and Retailing Trier University Prof. Dr. Prof. h.c. B. Swoboda
International Brand Management
2.1 Developments and strategic decisions
2.2 Building Global Customer-based Brand Equity
2.3 Determinants of International Brand Management
2.4 Students’ presentation
2
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
Global brand strategy
Identify differences in consumer behavior
How they purchase and use products
What they know and feel about brands
Adjust branding program
Choice of brand elements
Nature of supporting marketing program
Leverage of secondary associations
Core brand building blocks for Global CBBE
Creating brand salience
Crafting brand image
Eliciting brand responses
Cultivating resonance
Slide 22
Source: Keller, K. L. (2008), “Strategic Brand Management: Building, Measuring, and Managing Brand Equity”, 3rd ed., Pearson: Upper Saddle
River, NJ.
.
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
Building global customer-based
brand equity (I) (fully self study)
Slide 23
Understand
similarities and
differences
Don‘t take
shortcuts in
brand
building
Establish
marketing
infrastructure
Embrace
integrated
marketing
communication
Cultivate
brand
partnerships
Developed vs.
developing
markets
Changing
landscape of
global branding
(e.g., younger
consumers,
increased
mobility, growth
of global media)
Provide sources
of CBBE in
each country
Failure of
exporting
marketing
programs from
other countries
Building a brand
from the bottom
up (i.e., building
brand
awareness and
image)
Manufacturing,
distribution and
logistical
advantages
Adaption of
operations due
to differing
infrastructures
Investments in
foreign partners
Production and
distribution are
key factors for
success
Advertising
Non-traditional
forms of
advertising
Promotion and
sponsorship
Establishing
marketing
partnerships
Optimizing
access to
distribution
1 2 3 4 5
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
Building global customer-based
brand equity (II) (fully self study)
Slide 24
Standardized
global marketing
(e.g., common
customer needs,
global
customers,
comparable
technical
standards,…)
Global brand
development
(e.g., globally
basic positioning
and branding,
globally applied
technologies).
Balance
standardization
and
customization
Balance
global and
local control
Establish
operable
guidelines
Implementation
of global BE
measurement
system
Leverage
brand
elements
Centralization at
home office or
headquarters
Decentralization
of decision
making to local
foreign markets
Some
combination of
centralization
and
decentralization
Brand charter
Product line
E.g., Assign
every possible
product to one
category
(Disney:
acceptable
without license
permission, not
permissible to
ever license,
requires
validation from
headquarter)
Provide timely,
accurate, and
actionable
information on
brands
Tactical and
strategic
decisions
Global BE charter
Brand tracking
Avoid lack in
marketing
research
infrastructure
Translation to
another culture
Brand name
memorability
and recall
Non-verbal
brand elements
Translation
problems
Attempt to
create more
uniform brand
elements
6 6 7 8 9 10
Chair for
Marketing and Retailing Trier University Prof. Dr. Prof. h.c. B. Swoboda
International Brand Management
2.1 Developments and strategic decisions
2.2 Building Global Customer-based Brand Equity
2.3 Determinants of International Brand Management
2.4 Students’ presentation
2
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
In Detail…
Overview of determinants in
International Marketing
Elements of culture, Hofstede’s,
GLOBE, and Schwartz approach to
culture
Further determinants: Country-of-Origin,
Perceived Brand Globalness,
Consumer Ethnocentrism
Slide 26
Objectives
Understanding what culture refers to
Understanding the elements of
culture
Applying different approaches of
culture
Understanding different determinants
of global branding
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
Comparison of advertisements in
Sweden and Saudi Arabia
Slide 27
Sweden Saudi Arabia
Source: www.ikea.com
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
A wide range of Determinants
in foreign environments
General Environment
- Entry barriers
- Quantity, quality, size
of competitors
- Competition intensity
- Competitors’ offerings
- …
- Quantity, quality, size
of suppliers
- Quality/offering of
suppliers
- Bargaining power
- …
- Demand patterns
- Structure of needs
- Size of market
segments
- Distribution structure
- Bargaining power
- …
Competitors Suppy Demand
Competitive Environment
- Resources (tangible/intangible)
- Operation mode
- Aims and objectives
- Competitive strategy
- Characteristics of offerings
- …
Internal environment
International Branding
Source: Zentes, J.; Swoboda, B.; Schramm-Klein, H. 2013. Internationales Marketing. 3rd ed. Vahlen: Munich.
- Market size/potential - Cost structure
- Interest rate
- Exchange rate
- Purchasing power
- Business climate
- …
- Trade barriers - Trade agreements
- Law and legal aspects
- Political stability
- …
- Language - Religion
- Values/norms
- Aesthetics
- Education
- Interaction
- …
- Climate
- Topography
- Infrastructure
- …
- Information/commun-
ication technology - IT Systems
- …
Economic factors Political and legal
factors
Cultural factors Geographical
factors
Technological
factors
Slide 28
Consumer
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
Systematization of determinates of
the choice of WOS (+) and JV (-)
Host country factors
Cultural distance
Country risk (-)
Legal restrictions (-)
Market growth (-)
Income level (of host country)
Industry concentration (in host country)
Market size (-)
Markt attractiveness
Volatility of demand
Trade barriers
Competitive intensity
Openness of host country to FDI
Home country factors
Power distance index (+)
Uncertainty avoidance
Internal factors
Int. product diversification (-)
Specificity (general)
Advertising intensity (+)
R&D intensity
Capital intensity
Sub size (absolute & relative to MNE)
Resource intensity (-)
MNC sales & assets
MNC employees (+)
Int. experience (country specific) (+)
Age of subsidiary
Multinational experience
Int. experience (general)
Export intensity (+)
Diversification of MNC
Source: Morschett, D.; Schramm-Klein, H.; Swoboda, B. 2010. Decades of Research on Market Entry Modes: What do we really know about external
antecedents of entry mode choice? Journal of International Management, 16(1): 60-77. Slide 29
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
Example for a systematization of
country differences (I)
Financial
differences
Economic
differences
Definition Measurement
Differences in economic development and
macroeconomic characteristics
Income (GDP/capita)
Inflation
Exports
Imports
Differences in financial sector development Private credit
Stock market capitalization
Listed companies
Political
differences
Differences in political stability, democracy,
and trade block membership
Policy-making uncertainty
Democratic character
Size of the state
WTO member
Regional trade agreement
Administrative
differences
Colonizer-colonized link
Common language
Common religion
Legal system
Differences in colonial ties, language,
religion, and legal system
Source: Berry, H., M.F. Guillén and N. Zhou (2010), An instituional approach to cross-national distance, Journal of International Business Studies,
41 (9), 1460 – 1480. Slide 30
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
Example for a systematization of
country differences(II)
Demographic
differences
Cultural
differences
Definition Measurement
Differences in attitudes toward authority,
trust, individuality, and importance of work
and family
Power distance
Uncertainty avoidance
Individualism
Masculinity
Differences in demographic characteristics Life expectancy
Birth rate
Population under 14
Population above 65
Connectedness
differences
Differences in tourism and internet use Number of Internet user
Int. tourism expenditure
Int. tourism receipts
Geographic
differences
Great circle distance between geographic
center of countries
Great circle distance
Knowledge
differences
Differences in patents and scientific
production
Number of patents
Number of scientific articles
Slide 31 Source: Berry, H., M.F. Guillén and N. Zhou (2010), An instituional approach to cross-national distance, Journal of International Business Studies,
41 (9), 1460 – 1480.
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
Source: CIA Factbook, 2015.. Slide 32
Income and wealth are key determinants of people‘s purchasing power.
Less than US$ 10,000, much of the income is spent on food and other necessities,
and very little disposable income remains.
As a country reaches US$ 20,000, the disposable portion of income increases dra-
matically, results in increased convergent pressures on consumer buying behavior.
Example: An Indian citizen can afford 7.4% of the goods and services consumed
by the average U.S. citizen (on a purchasing power parity base).
Economic: Income differences in the world
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
Bottom of the pyramide
Slide 33
Mobile phone sharing,
e.g., Vodacom
Small packages,
e.g., Unilever
Specialized products, like
Water purification powder,
e.g., P&G
Source: James D., Rodrigo L. and Anthony S. (2013): Credit Suisse Global Wealth Databook 2013.
32 m
(0.7%)
361 m (7.7%)
1,066 m (22.9%)
3,207 m (68.7%)
Wealth Total wealth
(percent of world)
>USD 1m
USD 100,000
to 1m
USD 10,000
to 100,000
<USD
10,000
USD 98.7tm
(41.0%)
USD 101.8tm
(42.3%)
USD 33.0tm
(13.7%)
USD 7.3tm
(3.0%)
Number of adults (percent of world population)
The global wealth pyramid
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
Demographic:
Different demographic structures
Slide 34 Source: International Monetary Fund 2015.
Population over 65 in Europe (in %)
Children per women worldwide
Demographic structure influence
consumers and MNCs
Population size is an indicator for
market potential
Consumer behavior differs in different
ages
Older population may be open for,
e.g., pharmaceutical products
…
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
Shopping behavior of generations
Slide 35
Shopping
frequency per year
Young generation (to 49 years)
194
Generation silver (60 years and above)
234
Number of visited
shops 11 12
Expenditure per
purchase 14.30 EUR 11.46 EUR
Number of
purchased items
per purchase
13.4 9.4
Financial assets
per hausehold 23,000 EUR 32,000 EUR
Source: Gfk Panel Services, 2012.
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
Politic:
Public policy environment
Host governments control and restrict a foreign company‘s activities,
depending upon the interest of the host government.
Role of government influence the application of predictable rules and
policies, i.e., reflects how credible the state is.
Stable governments ensure continuity while instable governments are
correlated with political risk und uncertainties.
Slide 36
Political
risk
Loss of ownership
Political harassment
Nationalism
Confiscation
Expropriation
Nationalization
Domestication
Licensing policy
Tax policy
Social unrest
Patriotism
Chauvinism
Examples
Source: Bradley, F. (2005). International Marketing Strategy. 5 ed. Essex: Prentice Halll.
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
Country risk arising from the legal
environment
Foreign investment laws
Affect the type of entry strategy as well as their operations an performance
Example: Japan‘s large retail store law restricted foreigners from opening
warehouse-style stores, like Walmart or Toys R Us
Marketing and distribution laws
Determination of which laws are allowed in advertising, promotion and
distribution
Example: in Germany comparative advertising is forbidden
Price laws
Essential products that command considerable public interest (like
pharmaceutical products, food, petrol,…) are often subject of price controls
Trade barriers
Tariff barriers
…
Slide 37 Source: Bradley, F. (2005). International Marketing Strategy. 5 ed. Essex: Prentice Halll.
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
Culture:
Culture and subculture
Elements of a culture are values, assumptions, norms and attitudes. It
determines the behavior of the people who belong to the culture.
Important factors that serve media as culture, are heroes, symbols, rites
and rituals.
Cultural dimensions reduce culture significant characteristics to a grid of
fundamental latent variables.
Culture is referred to as a background phenomenon that characterizes our
behavior unconsciously. Culture consists of explicit and implicit ways of
thinking and patterns of behavior that are acquired and passed on by
symbols. They form a specific, identifiable achievement of human groups.
Slide 38
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
Determination of consumer behavior
through culture
Slide 39
Cultural value system
Symbols
Values
Heroes Rituals
Consumer behaviour
Cognitive processes
Activating processes
Behaviour
Marketing
communication
Source: Luna/Gupta 2001, S. 47.
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
Cultural concept of Hofstede
Model for detecting the national culture for international comparison
Hofstede identified in 1973 originally 4 cultural dimensions by interviewing
employees of IBM in more than 70 countries
In further studies (1991 & 2010) two other cultural dimensions could be
identified.
Culture exists only by comparison:
The values of individual cultural dimensions have to be seen relatively and
only become relevant by comparing different countries.
» Culture is the collective programming of the mind distinguishing the
members of a group or category of people from others«
Source: Hofstede, G. H., G. J. Hofstede and M. Minkov (2010). Cultures and Organizations – Software of the Mind. 3 ed. Beverly Hills: McGraw-Hill. Slide 40
G. H. Hofstede
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
Hofstede‘s cultural dimensions
Slide 41
Individualism vs.
collectivism (IDV)
Power distance
(PDI)
Definition Consumer behavior
An unequal distribution of power between the members
of a society is acceptable. The powerful stand privileges.
Accepting new Products
In the individualist society everyone should look at
himself and his immediate family. Self orientation is most
important.
Country-of-Origin-Effect
Uncertainty
avoidance (UAI)
Unknown or ambiguous situations are threatening. Only
predictable risks are to take.
Importance of the
credibility of a Brand
Long-term
orientation (LTO)
In long-term sustainable cultures, endurance / resistance
is a very important personality trait. Life's focus is on the
future.
Luxury Products
Long-Distance Travel
Masculinity vs.
femininity (MAS)
In masculine cultures the roles of husband and wife
should be strictly separated. Men should play a dominant
role, determined to behave performance-oriented and
materialistic and women should strive for quality of life.
Tip
Indulgence vs.
restraints (IVR)
Service-Expectations
Extent to which a society is willing to contend satisfaction
of human needs and incentives trying to enjoy life and
have fun.
Source: Hofstede, G. H., G. J. Hofstede and M. Minkov (2010). Cultures and Organizations – Software of the Mind. 3 ed. Beverly Hills: McGraw-Hill.
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
Examples for Hofstede‘s six
dimensions
Low power distance High power distance
Low uncertainty avoidance High uncertainty avoidance
Individualism Collectivism
Masculinity Femininity
Short-term orientation Long-term orientation
Indulgence Restraint
Slide 42 Source: Hofstede, G. H., G. J. Hofstede and M. Minkov (2010). Cultures and Organizations – Software of the Mind. 3 ed. Beverly
Hills: McGraw-Hill.
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
Schwartz‘s framework
Based on Schwartz seminal work
on human values
Identification of three basic
societal issues:
Relations between individual and
group,
Assuring responsible social
behavior
Role of humankind in the natural
and social world
The cultural adaptations to resolve
each of these issues constitute his
framework, which consists of three
bipolar dimensions, defining seven
national-cultural domains.
Slide 43
Univer-
salism
Humanism
Compli-
ance
Tradition
Safety Power
Performance
Hedonism
Stimulation
Self-
Determi-
nation
Broad-
Minded Willpower
Preservation
of existings
Self-
aggrandize-
ment
Source: Schwartz, S.H. (1997). “Values and Culture, in Munro, D., Carr, S. and Schumaker, J. (Eds), Motivation and Culture, Routledge, New
York, NY, pp. 69-84.
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
Schwartz‘s cultural values
Slide 44
EMBEDDEDNESS Social Order,
Obedience
Respect for Tradition
HIERARCHY Authority, Humble
AFFECTIVE
AUTONOMY Pleasure, Exciting
Life
INTELLECTUAL
AUTONOMY Broadmindedness
Curiosity
MASTERY Ambition,
Daring
EGALITARIANISM Social justice, Equality
HARMONY Unity with Nature
World at Peace
Source: Schwartz, S.H. (1997). “Values and Culture, in Munro, D., Carr, S. and Schumaker, J. (Eds), Motivation and Culture, Routledge, New
York, NY, pp. 69-84.
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
Comparison of cultural concepts
Slide 45
Hofstede
Strengths Weaknesses
No theoretical background
Up-to-dateness – Change in values
over time
External validity: IBM-Employees,
only one company
High correlation of several cultural
dimensions (IDV/PDI; IDV/LTO)
Work-related items
Big data basis
Assumption of relative stability
of values (vs. Change in
values)
Easier handleable than
comparable cultural concepts
Wide acceptance
No distinction between
practices and values
Schwartz Items have been developed to
measure individual-level value
dimensions
Schwartz has been seldom applied
in contrast to Hofstede and GLOBE
Recent data
Close match between definition
of cultural domains and the
used items
Items have been shown to have
the similar meaning across
cultures
Broader set of items than
Hofstede and GLOBE
Strong theoretical foundation
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
Consumer:
Perceived brand globalness (PBG)
PBG refers to the use of global symbols in marketing and the customers’
awareness that a brand is located all over the world, thus differing from
‘foreignness’.
The retailer can benefit from market-based advantages, such as brand
esteem and brand credibility, prestige and quality advantages, and
enhanced purchase likelihood.
PBG and PBL are not seen as opposing points on a continuum, they
rather disclose a portfolio of positioning options for global, local or
hybrid/glocal brands.
Slide 46
Perceived brand globalness (PBG) is defined as the extent to which a firm is viewed
as a global player in the minds of target consumers.
Perceived brand localness (PBL) conveys that a brand is seen as an icon of local
culture.
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
Consumer ethnocentrism (CET)
Slide 47
The beliefs held by consumers about the appropriateness,
indeed morality, of purchasing foreign made products.
Source: Shimp, T. A., & Sharma, S. 1987. Consumer ethnocentrism: Construction and validation of the CETSCALE. Journal of Marketing
Research, 24(3): 280–289.
Ethnocentric consumer feel it is wrong to purchase-foreign made products
Purchasing foreign products may be viewed as improper because it costs
domestic jobs and hurts the economy.
The purchase of foreign products may even be seen as simply unpatriotic.
Can be measured with the CETSCALE, e.g.:
We should buy from foreign countries only those products we cannot obtain
within our own country.
It is not right to purchase foreign products.
A real [German] should always buy [German]-made products.
…
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
Home country:
Country-of-origin (COO)
Consumers' broad general perceptions of a country including of its national
characteristics that is then attached to the products of that country.
In situations in which additional information is unavailable or difficult to get
can be the sole determinant of whether or not someone buys a product.
Sensitivity to country of origin varies by product category:
Strong for durable goods and luxury goods
Weakest for low involvement products, like shampoo or candy
Slide 48
Country of origin (COO), is the country of manufacture, production, or growth where
an article or product comes from.
Source: Bradley, F. (2005). International Marketing Strategy. 5 ed. Essex: Prentice Halll.
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda Interplay of CET, COO and PBG
Slide 49
Counsumer
ethnocentrism
Country-of-origin Perceived brand
globalness
Consumer-related
Company-related Country-related
Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda
Exercise for the next lecture
Read the Literature and answer the two questions
What are the research gaps/calls, questions and key results of the papers?
Which theory/conceptualization is used and how they measure constructs?
How is the structure of the paper?
Steenkamp, J.-B. E. M., Batra, R., & Alden, D. L. (2003), “How perceived brand globalness
creates brand value”, Journal of International Business Studies, 34(1): 53-65.
Prepare a short (ca.15 min., 10 slides) presentation; please use
presentation template on our homepage.
1.5 points on top of the exam.
Please send your presentation to [email protected] until
Tuesday, 12:00 o’clock
Slide 50
Top Related