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Cross-cultural Marketing > G - Cross-cultural product politics > Flashcards

G - Cross-cultural product politics Flashcards

1
Q

Standardization vs. Adaption

Basic problem of Standardization vs. Adaption

A

Standardization is used for global marketing and more or less culture free. Adaption however is used for domestic marketing and is culture bound.
Cross-cultural marketing is somewhere in the middle: as global as possible, as local as necessary.

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2
Q

Standardization vs. Adaption

Scope of different products

Product type:
Availability:
Example:

A

Product type: national
Availability: one national market
Example: “McAroni” salad with noodles, developed for Sweden

Product type: international
Availability: many national markets
Example: “Noodle soup” - for Asian cultures

Product type: global
Availability: worldwide
Example: “Big Mac”

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3
Q

Problems with standardization

Typical mistakes of Global marketing

Example

A

Coca-Cola removed 2 liter bottles from Spains market after the company realized that the fridges in Spain are typically small

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4
Q

The Standardization / Adaption-Problem

Factors influencing the S/A-Decision

Standardization

Type of good:
Economies of scale:
Protectionism:
Cultural bondage:

A

Type of good:
- Luxury, investment and high-tech good

Economies of scale:
- realizable

Protectionism:
- weak

Cultural bondage:
- no (culture free)

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5
Q

The Standardization / Adaption-Problem

Factors influencing the S/A-Decision

Adaption

Type of good:
Economies of scale:
Protectionism:
Cultural bondage:

A

Type of good:
- Consumer and high-touch food

Economies of scale:
- not realizable

Protectionism:
- strong

Cultural bondage:
- yes (culture bound)

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6
Q

The Standardization / Adaption-Problem

Culture Bondage of Products

A

When culture bondage is weak, high standardization is high, e.g. Computer (hardware), airline companies, photography equipment.
When culture bondage is high, standardization is low, e.g. textiles, sweets/confect, food, publisher goods.

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7
Q

Survey: Which elements of the product politics can be standardized?

A 
Product Quality (78%)
Brand name (72%)
Image (71%)
Performance (67%)
Size and color (54%)
Packaging and styling (52%)
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8
Q

The Standardization / Adaption-Problem

Product attributes / value

A

Substantial
- basic benefit

Extended
- added value, e.g. services

Generic
- Social and emotional benefit

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9
Q

The Standardization / Adaption-Problem

Factors influencing S/A of product attribute

Physical attributes

Pro Adaption vs. pro standardization

A

Pro Adaption:

  • cost-reducing adaption
  • local standards, hygiene and safety regulations
  • consumer behavior
  • physical environment

Pro standardization:

  • experience effects
  • Economies of scale
  • international standards
  • international product use
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10
Q

The Standardization / Adaption-Problem

Factors influencing S/A of product attribute

Service attributes

Pro adaption vs. pro standardization

A

Pro adaption:

  • limited savings related to scale
  • local peculiarities in services, maintenance and distribution

Pro standardization:

  • significant learning effects
  • internationally mobile customers
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11
Q

The Standardization / Adaption-Problem

Factors influencing S/A of product attribute

Symbolic attributes

Pro adaption vs. pro standardization

A

Pro adaption:

  • unfavorable image of imported product, company, nationality or brand name
  • inadequate meaning, conveyed by color, shape, etc.

Pro standardization:

  • favorable image of imported products, company, nationality, or brand
  • exotic or ethnic appeal
  • demand for “universals”
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12
Q

Country of origin effect (CoO)

A

“Any effects on a person’s perception arising from stereotypes of associations with a product’s country of origin”

  • influence of the country of origin of a product or service on the perception and evaluation of consumers
  • scientific origin: A study by Schooler (1965) found that Guatemalan students prefer domestic products over Mexican products
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13
Q

Country of Origin Label

Excursus De-Internationalization

A
  • 20% of the German companies active abroad relocate their product back to Germany within four to five years
  • origin from a low-wage-country may turn out as disadvantage
  • e.g. longer shipping distance -> long time span until it’s available in the market
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14
Q

Country of Origin Label

Macro- vs. Micro-Level

A

Macro:
- country-specific image

Micro:
- country-specific product image

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15
Q

Country of origin label

Types of country of origin labels

A 
Country of:
Sourcing
Assembly or manufacture ("made in")
Design
Product or country of component
Brand (relevant for buying decision)
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16
Q

Mechanism of the country of origin effect

Cue Information

A

CoO has an effect like a mental short cut (like brands or prices)

-> if you don’t have much information about the product the country of origin helps to categorize if it’s a good product

17
Q

Explanation of the CoO-Effect

Cue utilization theory

Boundary conditions for using the country of origin

A

Boundary conditions for using the country of origin:

  • high relevance of quality
  • high quality insecurity
  • low availability of information about the product quality
18
Q

Explanation of the CoO-Effect

Cue utilization theory

Attributes of the used quality signals

A

Security Value of the CoO-Sign (“Descriptive Belief”)

and Prediction Value of the CoO-Sign (“Inferential Belief”) lead to consumers using the CoO-label as a quality sign

19
Q

Effect of the CoO

Meta-Analysis on the Effect of CoO

Results

A

influence of the CoO on
…product quality (attitude) 30%
…buying intention (intention) 19%
…purchase, boycott (actual behavior) -> questionable

Possibly exaggeration of the CoO-Effect in research

20
Q

Effect of the CoO

Meta-Analysis on the Effect of the CoO

Reasons

A
  • single cue-designs (-> research design lacks ecological validity)
  • student samples
  • social desirable answering behavior
21
Q

Signalizing the CoO

Design Elements that visualize the CoO

Verbal

A

Direct cue:
- unambiguous naming of the country of origin

Indirect cue:
- Appeal via foreign language or elements

22
Q

Signalizing the CoO

Design Elements that visualize the CoO

Non-verbal

A

Visual:
- Showing typical emblems or persons etc.

Acoustic:
- Typical sounds

23
Q

Consumer Ethnocentrism

A

Preference for domestic products

Reasons:

Normative

  • motivation to support local economy
  • buy-domestic-calls

Affective

  • assumption of better image and product quality
  • patriotism
24
Q

Consumer Ethnocentrism

Theory of social identity

A
  • social identity is created by social affiliation with the in-group and disassociation from the outgroup
  • prestige of the ingroup relevant -> group enhancing
25
Q

Hostility or dislike of other countries

Consumer animosity

A

Explicit refusal of products from one specific country

Causes:
political, cultural, economic and military conflicts

26
Q

Hostility or dislike of other countries

Consumer animosity

Consequences (examples)

A

Boycott of US products (2006)
-> Heinz-Ketchup, Anti-Cola, Esso

Boycott of Danish products (2006)
-> Arla (short-time-work, 1,34 Mio€/Tag)

Boycott of French products (2008)
-> traveling agency -20% bookings

27
Q

Cross-cultural differences in the boycott Prevalence (Hoffmann 2014)

A

Data base:

  • secondary data:
  • > boycott prevalence: World value survey
  • > culture: Globe

Findings:
Influence of culture on boycott prevalence. The effect is stable after controlling for GDP etc.

28
Q

International Brand names

Framework for brand name decisions

Positioning

A

Brand image is in the center of corporate image, positioning of competitor, needs of target group A, B and C

29
Q

International Brand names

Framework for brand name decisions

Requirements for brand positioning

national

A
  • fit with corporate strategy
  • distinction from competitor
  • fit with target group
  • perceptibility
  • conciseness
30
Q

Linguistic Aspects of International Brand names

Types of brand names

A

Descriptive names
- e.g. Kinderschokolade

Associative names
- e.g. Schauma

Artificial names
- e.g. Haribo (acronym)

31
Q

Linguistic Aspects of International Brand names

S/A Decision -> are the brand names feasible to standardize? Transferable to other languages and cultures?

Contingency variables

A

Legal criteria

  • differentiation possible
  • protectability internationally possible?

Marketing criteria

  • relevant for product
  • fit to corporate image
  • signalizing of positioning
  • appeal

Linguistic criteria

  • Phonetic attributes
  • semantic attributes
  • morphologic attributes
32
Q

Linguistic Aspects of International Brand names

S/A Decision -> are the brand names feasible to standardize? Transferable to other languages and cultures?

Contingency variables

Linguistic criteria

A

Phonetic attributes

  • pronounceability
  • readability
  • euphony

Semantic attributes

  • positive associations
  • comprehensibility
  • memorability
  • language-independence

Morphologic attributes

  • briefness
  • simplicity
33
Q

Linguistic Aspects of International Brand names

Strategies to transfer brand names to other languages

A

Adaptation
Linguistic Transfer
Standardization

34
Q

Linguistic Aspects of International Brand names

Strategies to transfer brand names to other languages

Adaption

A

Creation:

  • Developing a new name for the target country
  • > Local brand names
35
Q

Linguistic Aspects of International Brand names

Strategies to transfer brand names to other languages

Linguistic transfer

A 
Phonetic translation (Transliteration)
-> sounds similar to the original

Semantic Translation
-> translation that captures the meaning of the original name

Phonosemantic translation
-> both

36
Q

Linguistic Aspects of International Brand names

Strategies to transfer brand names to other languages

Standardization

A

Using the original name in all countries (e.g. IKEA)

-> global brand name

Cross-cultural Marketing (11 decks)

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