Cross-Cultural Consumer Behavior 1 Flashcards
National Culture (Hostede’s 6 Cultural Dimensions Theory)
Power Distance Index
- the degree of inequality that exists – and is accepted – between people with and without power
Individualism vs Collectivism
- the strength of the ties/connection that people have to others within their community
Uncertainty Avoidance
- describes how well people can cope with anxiety and ambiguity
Masculinity vs Femininity
- the distribution of roles between men and women in a society
LT vs ST Orientation
- the time horizon people in a society display
- long-term orientation countries: pragmatic, modest, thrifty
short-term oriented countries: more emphasis on principles, consistency, truth (religious and nationalistic)
Indulgence vs Restraint
- describes how freely people satisfy their basic needs and desires
Cross-Cultural Analysis in Consumer Behavior
International marketers study the psychological, social, and cultural characteristics of foreign consumers
- allows marketers to design effective marketing strategies for specific or multiple national markets
- global brands hold significant market share in several countries
Key Characteristics of Global Brands
Quality Signal
- The more people who purchase a brand, the higher the brand’s quality
- Global brands demand a premium price
Global Myth
- Consumers view global brands as a “cultural ideal”
- Make them feel like citizens of the world
Social Responsibility
- Global companies are held to a higher level of corporate social responsibility compared to local brands
- Expected to respond to social problems
How A Country’s Citizens View Global Brands
Global Citizens: Use a company’s global success as an indication of product quality and innovativeness
Expect the firm to act in a socially responsible manner.
Global Dreamers: View global brands as quality products, but are not particularly concerned about social responsibility.
Anti-Globals: feel that global brands are higher quality than local brands.
- However, they dislike brands that preach U.S. values.
- They do not trust global companies to act responsibly.
- They try to avoid purchasing global brands.
Global Agnostics: evaluate global brands in the same way they evaluate local brands.
Assessing Consumption-Related Cultural Differences
Judgments regarding the quality of a country’s products.
Willingness to buy a country’s products.
Willingness to buy foreign-made products.
Identification with a country’s culture.
Ethnic self-identification
National self-identification
Personal Cultural Orientations
Independence
- “I would rather depend on myself than others”.
Interdependence
- “The well-being of my group members is important to me.”
Power
- “It is difficult for me to refuse a request if someone senior asks me.”
Social Inequality
- “It is important for everyone to know their rightful place in the society.”
Risk Aversion
- “I prefer a routine way of life to an unpredictable one full of change.”
Ambiguity Tolerance
- “I prefer specific instructions to broad guidelines.”
Tradition
- “I am proud of my culture.”
Acculturation
Dual Learning Process
Step 1: Marketers learn everything relevant about the product category in the chosen market.
Step 2: Marketers must persuade the target market to change traditional ways of doing things and adopt the new product.
Standardization VS Localization
Global Marketing Strategy: Selling the same product and using the same positioning and communication approach globally.
Local Marketing Strategy: customizing both the product and the communications program for each unique market.
Hybrid Strategy
- Standardizing the product; customizing the communications.
- Customizing the product; standardizing the communications.
Linguistic Barriers
When Parker Pen targeted Mexico, its ads were supposed to say “It won’t leak in your pocket and embarrass you.”
However, the company mistakenly thought “embarazar” meant “embarrass.”
Instead the ads said that “It won’t leak in your pocket and make you pregnant.”
