Test 5 Flashcards

1
Q

What is globalization? And how is it changing?

A

It is more than just import and exports! Can involve exporting and importing values, lifestyles and attitudes.

It is changing from one-way influence (US-others) to mutual influence.

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2
Q

What are the four basic types of world citizens?

A
  1. Global citizens
  2. Global dreamers
  3. Antoglobals
  4. Global agnostics
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3
Q

What is a global citizen? (part of the 4 types)

A

o Positive toward international brands
o Signal higher quality
o Most concerned about corporate responsibility to the local country
o Prominent: Brazil, China and Indonesia
o Rare: US and UK

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4
Q

What is a global dreamer? (part of the 4 types)

A

o Positive towards international brands
o Buy into positive symbolic aspects
o Less concerned about corporate responsibility to the local country
o Equally distributed across countries

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5
Q

What is antiglobals? (part of the 4 types)

A
o	Negative toward international brands 
o	Don’t like brands that preach American Values 
o	Don’t like multinationals 
o	Higher: UK and China 
o	Lower: Egypt and South Africa
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6
Q

What is global agnostics? (part of the 4 types)

A

o Don’t base decisions on global brand name (evaluate same as local brands)
o Don’t see global brands as special
o Higher: US and South Africa
o Lower: Japan, Indonesia, China and Turkey.

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7
Q

How do you define culture?

A

Culture is the complex whole that includes knowledge, belief, art, law, morals, customs, and any other capabilities and habits acquired by humans as members of society.

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8
Q

What is culture?

A

Culture – refers to the mental frames and meanings that are shared by most people in a social group
In a broad sense, cultural meanings include common perspectives, typical cognitions (beliefs) and affective reactions (feelings), and characteristic patterns of behavior.

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9
Q

What does cultural meanings usually include?

A

o Common perspectives
o Typical cognitions
o Characteristic patterns of behavior

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10
Q

How can cultural meanings be analyzed?

A

o Cultural meanings can be analyzed at different levels.
♣ Macro (Canada, France, Poland, Kenya, or Australia)
♣ Subcultures (elderly, young adults)
♣ Social classes (middle versus working class)
♣ Reference groups (members of a sorority or group of co-workers)
♣ Family (one family or extended)

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11
Q

How can cultural meanings be created?

A

o Created by people
o Construction of cultural meaning is more obvious at the level of smaller groups

o Cultural meanings are constantly in motion and can be subject to rapid changes
o Social groups differ in the amount of freedom people have to adopt and use cultural meanings

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12
Q

How do marketers approach culture?

A

o Analyze culture in terms of its major attributes or its content.
o Marketers typically focus on identifying the dominant values of a society, but culture is more than values.

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13
Q

What is cultural values?

A

Cultural values give rise to norms and associated sanctions, which in turn influence consumption patterns.
Cultures are not static.
¬ They typically evolve and change slowly over time.

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14
Q

The number of values that differ across cultures and affect consumption include:

A
o	Other-Oriented Values
¬	Reflect a society’s view of the appropriate relationships between individuals and groups within a society
¬	Individual/Collective
¬	Youth/Age
¬	Extended/Limited Family
¬	Masculine/Feminine 
¬	Competitive/Cooperative
¬	Diversity/Uniformity

o Environment-Oriented Values

¬	Prescribe a society’s relationship to its economic and technical as well as its physical environment 
♣	Cleanliness
♣	Performance/Status
♣	Tradition/Change
♣	Risk taking/Security 
♣	Problem solving/Fatalistic
♣	Nature

o Self-Oriented Values

¬ Reflect the objectives and approaches to life that the individual members of society find desirable
ϒ Active/Passive
ϒ Sensual gratification/Abstinence
ϒ Material/Nonmaterial
ϒ Hard work/Leisure
ϒ Postponed gratification/Immediate gratification
ϒ Religious/Secular

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15
Q

What does the content of culture include?

A

o Beliefs, attitudes, goals, and values held by most people in a society.
o The meaning of characteristic behaviors, rules, customs, and norms that most people follow.
o The meanings of significant aspects of the social and physical environment, including:
o Major social institutions in a society.
o Typical physical objects used by people in a society.

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16
Q

What is the goal of cultural analysis?

A

o To understand the cultural meaning of concepts from the point of view of the consumers who create and use them

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17
Q

Remember:

A

Behaviors can have important cultural meanings

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18
Q

What are the variables in nonverbal communication? 7 things.

A
  1. Time
  2. Space
  3. Symbols
  4. Relationships
  5. Agreements
  6. Things
  7. Etiquette
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19
Q

How does time vary between cultures? 2 ways

A
  1. Time Perspective
    ¥ monochronic vs. polychronic
  2. Time Interpretations
    ¥ promptness
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20
Q

How does space vary between cultures?

A

Personal space: Distance varies.

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21
Q

How symbols vary between cultures?

A

ϒ Colors, animals, shapes, numbers, and music have varying meanings across cultures.
*Failure to recognize the meaning assigned to a SYMBOL can cause serious problems!

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22
Q

How do relationships vary between cultures?

A

How quickly and easily do cultures form RELATIONSHIPS and make friends?
ϒ Americans tend to form relationships and friends quickly and easily.
ϒ Chinese relationships are much more complex and characterized by guanxi.

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23
Q

How do agreements vary between cultures?

A

How does a culture ensure business obligations are honored?
How are disagreements resolved?
ϒ Some cultures rely on a legal system; others rely on relationships, friendships, etc.

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24
Q

How do things vary between cultures?

A

ϒ The cultural meaning of THINGS leads to purchase patterns that one would not otherwise predict.
The differing meanings that cultures attach to things, including products, make gift giving a particularly difficult task

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25
Q

How to etiquette vary between cultures?

A

The generally accepted ways of behaving in social situations.
ϒ Behaviors considered rude or obnoxious in one culture may be quite acceptable in another!
*Normal voice tone, pitch, and speed of speech differ between cultures and languages, as do the use of gestures.

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26
Q

What should marketers do when approaching culture?

A

♣ Marketing strategies must be sensitive to cultural meanings
♣ Marketers need to understand the cultural meanings of their products and brands.

WHEN values change, their means-end-chains change too.

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27
Q

What is demographics?

A

Demographics describe a population in terms of its size, structure, and distribution.

Demographics are both a result and a cause of cultural values.
¬ Densely populated societies, such as China, are likely to have more of a collective orientation than an individualistic one.
Disposable income is one aspect of demographics–the rapid growth in personal income in parts of China has led to an overall market explosion

28
Q

What is Purchasing Power Parity (PPP)?

A

PPP is based on the cost of a standard market basket of products bought in each country

29
Q

What considerations should be made before making a cross-cultural marketing strategy?

A
  1. Homogeneous versus Heterogeneous with Respect to Culture?
  2. What Needs Can the Product Fill in this Culture?
  3. Can Enough People Afford the Product?
  4. What Values are Relevant to the Purchase and Use of the Product?
  5. What are the Distribution, Political and Legal Structures for the Product?
  6. In What Ways Can We Communicate About the Product?
  7. What are the Ethical Implications of Marketing This Product in This Country?
30
Q

What is glocalization?

A

Global localization or the adaption of products and services to local considerations

31
Q

What is a subculture?

A

o Distinctive groups of people in a society that share common cultural meanings for:
o Affective and cognitive responses
o Behaviors
o Environmental factors
o Marketers use a variety of demographic characteristics to identify subcultures.

o A subculture is a segment of a larger culture whose members share distinguishing values and patterns of behavior.

32
Q

What are some types of subculture?

A
o	Age 
o	Religion 
o	Race 
o	Income 
o	Nationality 
o	Gender 
o	Family type 
o	Occupation 
o	Geographic region 
o	Community
33
Q

What is the cognitive age and why should we use this?

A

o Age groups have distinctive values and behaviors.
o Marketers should analyze subjective or “cognitive age” (the age one thinks of oneself as being) rather than chronological or actual age.

34
Q

What is categorized by a Teen market?

A

o Gaining affluence while fluctuating in size
o Has a major influence on household purchases
o Owns discretionary purchasing power
o Forms brand loyalty

35
Q

What age group is considered most affluent age in history and what is categorized by this age group?

A

o The Baby Boomers are considered the most affluent group in history.
o People born between 1946 and 1964.
o Largest and most affluent group in history.
o A blend of “me-generation” and old-fashioned family values.
o Strongly influence the values of other groups.
o Characterized as being health conscious.
o Emphasize quality and less interested with bargain hunting.
o Most lucrative and challenging group for marketers.

36
Q

Who is categorized the most mature market and was is categorized by this market?

A

¬ Consumers over the age of 55
¬ Among one of the most rapidly growing subcultures.
¬ Have considerable discretionary income.
¬ Have more time to enjoy entertainment and leisure activities.
¬ Developing marketing strategies is difficult.

37
Q

What are ethic subcultures?

A

Ethnic subcultures are those subcultures whose members’ unique shared behaviors are based on a common racial, language, or nationality background

38
Q

What group is the largest subculture in the U.S?

A

ϖ African American or Black subculture:
¬ Largest minority group in the U.S.
¬ Economic conditions vary considerably in different metropolitan areas.
¬ Marketers could further subdivide this group based on income, social class, or geographic region.

39
Q

African Americans

A

ϒ Buying Power:
¬ represents $1.1 trillion in buying power and is expected to grow by 25% through 2018
♣ Demographics:
♣ On average - younger than the white population, and
♣ tend to have less education and lower household income levels.
♣ 1/3 of black household incomes >$50,000
♣ But…differences continue to decrease as a function of education.
♣ Target opportunities exist across a broad range of income.

40
Q

What are the 3 broad segments of the Hispanic subculture?

A
ϖ	Hispanic subculture:
¬	Unequally distributed across the U.S.
¬	Diverse
¬	Three broad segments:
1.	Only Spanish speaking
2.	Bilingual, but favoring Spanish
3.	Bilingual, but favoring English
ϖ	Getting information about Hispanic needs, values, and beliefs is difficult.
41
Q

Hispanic Americans

A

ϒ Buying Power:
¬ estimated at $1.2 trillion and is expected to grow by 33% by 2018
♣ Demographics:
¬ Income, education, language, and identification with Hispanic culture changes across generations.
¬ Roughly 40% of growth in the Hispanic population is attributable to immigration
♣ The level of acculturation plays a major role in the attitudes and behaviors of Hispanic consumers.
ϖ Generational groups also exist which drive differences in language, national identity, and values.
¬ First Generation
¬ Second Generation
¬ Third (+) Generation
¬ Hispanic teens are often bicultural—acculturating by adding a second culture; not replacing their first culture.

42
Q

What do it mean to be bicultural?

A

Adding a second culture; Not replacing their first one.

43
Q

What is the fastest growing segment of ethnic subculture in the U.S.?

A

ϖ Asian subculture:
¬ Among the most rapidly increasing ethnic group in the U.S.
¬ Requires special marketing attention.
¬ According to studies, purchase decisions are based on country of origin and length of time in the country.
¬ A prime market because they are more affluent than any other racial or ethnic group.
¬ Very diverse subculture.
ϒ Buying Power:
¬ estimated purchase power is $713 billion and is expected to grow by 37% by 2018
♣ Demographics:
¬ highest educated
¬ highest income group
¬ This group is also the most diverse group, with numerous nationalities, languages, and religions.

44
Q

Native Americans

A

ϒ Buying Power:
¬ estimated at $96 billion and is expected to grow by 28% by 2018
¬ Demographics:
¬ Approximately 550 Native American tribes
¬ each tribe has its own language and traditions.
¬ Many of the tribes have reservations and quasi-independent political status.

Recent years, Native Americans have been:
ϖ Increasing pride in their heritage
ϖ Less tolerant of inaccurate stereotypes of either their history or their current status.
¬ Marketers using Native American names or portrayals must ensure accurate and appropriate use.

45
Q

Asian-Indian Americans

A

♣ Demographics:
¬ well educated, affluent, and fluent in English
¬ most retain cultural ties to their Indian background
¬ More like Europe than America
While diverse in many ways, most Asian-Indian Americans share many cultural traits, including:
¬ placing a high value on education, particularly their children’s education
¬ husbands play a dominant role in making many of the family decisions

46
Q

Arab Americans

A

ϖ Demographics:
¬ younger then the general population
¬ better educated
¬ higher than average income
¬ Since WWII, many Arab immigrants have been business proprietors, landowners, or influential families fleeing from political turmoil in their home countries.
More than 80% of Arab American are U.S. citizens, and a majority being born in the U.S.
¬ tired of negative stereotyping and misrepresentations about their culture
¬ 66% identify as Christians
¬ 24% identify as Muslims

47
Q

What is acculturation?

A

ϖ Acculturation - how people in one culture or subculture understand and adapt to the meanings of another culture or subculture.
ϖ Consumer acculturation refers to how people acquire the ability and cultural knowledge to be skilled consumers in different cultures or subcultures.
Why is Acculturation important?
ϖ Important for people who move to different regions within the same country and must adapt to different subcultural meanings.
ϖ The degree to which immigrants, movers, and marketers become acculturated into a new culture or subculture depends on their level of cultural interpenetration.
ϖ Cultural interpenetration is the amount and type of social interactions with people in the host culture.

48
Q

What is Cultural Interpenetration?

A

ϖ is the amount and type of social interactions with people in the host culture.

49
Q

What are the 4 stages of acculturation?

A

♣ correspond to four levels of cultural interpenetration
1. Honeymoon
2. Rejection
3. Tolerance
4. Integration
ϖ An important aspect of the acculturation process is proficiency in the language of the new culture.

50
Q

Can gender be used to identify a subculture?

A

ϖ Gender differences may be significant enough to consider the two sexes as separate subcultures.
ϖ Marketers may find it useful to develop different marketing strategies for the male and female subcultures.
ϖ Today women either make or greatly influence most purchasing decisions.

51
Q

What 3 income categories can be used to identify a subculture?

A
ϖ	People at different income levels tend to have quite different values, behaviors, and lifestyles.
ϖ	Three income categories
1.	Downscale (under $33,000)
2.	Middle income ($33,000 - $55,000)
3.	Upscale ($55,000 and up)
52
Q

Is the US religious or secular?

A

ϒ America is basically a secular society.
That is, the educational system, government, and political process are not controlled by a religious group, and most people’s daily behaviors are not guided by strict religious guidelines.

But is religion important?
¬ Religion is important and directly influences the behaviors of many Americans.
¬ This includes consuming religiously-themed products and avoiding the consumption of other products, such as alcohol.
¬ There are a number of religious subcultures in America

53
Q

What are some different religious subcultures?

A

o Roman Catholic:

o Protestant: values and attributes tend to shape the core American Culture

54
Q

What are the 4 social class groups used for consumer analysis in the U.S?

A
  1. Upper
  2. Middle
  3. Working
  4. Lower
    ϖ Identification with each social class is influenced most strongly by one’s level of education and occupation.
    ϖ Social class is a composite of many personal and social attributes.
    ϖ Families in each social class can be further classified as:
    ¬ Over-privileged
    ¬ Average
    ¬ Underprivileged
55
Q

What is demographic clustering?

A

Combines demographic and socioeconomic data obtained from the U.S census with the customer behavior data obtained from panel or surveys. –> An identification and description of consumer behavior based on ex. Postal zip codes.

People who live in the same neighborhoods eat the same brands of food, read the same magazines and use the same brands of toiletries.

56
Q

What is Upper classes “Upper crust”:

A

Well-established family names with inherited wealth or “old money”

57
Q

What is “Nouveau riche”:

A

Newly earned money: Eminem, Trump, Oprah Winfrey. The distinction from the other class is the age of money.

58
Q

What is Upper middle class:

A

The educated elite. Paid to get the work completed, not by the hour.

59
Q

What is Lower middle class:

A

Solid, respectable holder of American values “the typical American”. Fan of “Do-it-yourself”

60
Q

What is the Lower classes / The working class / Disenfranchised social class:

A

Construction workers, plumbers, electricians… Live paycheck to paycheck. Also include urban ghetto dwellers, migrant farm workers, homeless…

61
Q

What is high-brow, low-brow and no brow?

A

High-brow: Classical music, opera, rare wines
Low-brow: Velvet painting, plastic flowers, cheap wines.
No brow: Walmart, Target, McDonald’s

62
Q

What is seniors?

A

They are becoming the biggest and most powerful consumer group: Things need to be adjusted to them: Easier to grasp goods and bigger fonts.

63
Q

What is Boomers?

A

Boomers: Feel the world will be shaped to their expectations.

These categories used: Mass media

64
Q

Define generation X

A

Generation X: Smallest generation. More multiethnic than previous generations.

65
Q

Define generation Y

A

Generation Y: Fruit of the Boom: Most ethnically diverse group. More tech-savvy and the earliest shoppers.

These generations used: One-on-one marketing, “Marketing by permission”: Word-of-mouth, stealth marketing.