M Anjum

Fayyaz

Group Members
M Anjum Fayyaz
Ejaz Khan
Majid Ibrahim
Johar Hussain
Haq Nawaz
M Shamshad
Rao Inayat Karim

Chapter 12
Cross-Cultural Consumer
Behavior: An
International Perspective

Chapter Outline
The Imperative to Be Multinational
Cross-Cultural Consumer Analysis
Alternative Multinational Strategies
Cross-Cultural Psychographic

Segmentation

The Imperative to Be
Multinational
Introduction:
Today almost all major organizations are

going beyond the country borders.

The issue is not whether to market a brand
but how to do it.
The concept of Glocal
For example McDonalds

The Imperative to Be
Multinational
Global Trade Agreements:
EU
NAFTA
ASEAN

Acquiring Exposure to Other Cultures

Country-of-origin Effects

European Union
The European Union (EU) is an economic

and political union of 28 member states that

are located primarily in Europe.
The EU has developed a single market

through a standardized system of laws that

apply in all member states.
Movement of goods and services has become
easy among the members.

NAFTA
Trade agreement b/w three countries:
United State
Canada
Mexico
Provides free market access to the

million of consumers.

ASEAN
Association of South East Asian Nations
consist of:
Indonesia
Malaysia
Singapore
Thailand
Philippines
And some others.

The Worlds Most Valuable

Brands
Brand

Brand value($ Billions)

104.3
1. Apple
56.7
2. Microsoft
54.9
3. Coca-Cola
50.7
4. IBM
47.3
5. Google
6. McDonalds 39.4
34.2
7. GE
30.9
8. Intel
29.5
9. Samsung
10.Louis Vuitton28.4

Most of these
brands offer
different Web
sites for each
country.

Acquiring Exposure to
other cultures
Consumers come in contact with goods and

life styles of people living in other parts of the

world. They have opportunity to adopt these
different products. So, how consumer in one
culture secure exposure to the goods of other
cultures is most important.
Therefore, marketers try to gain acceptance

for their products in countries that are quite

different from their home country.

Acquiring Exposure to other

cultures (cont)

Country of Origin
The country-of-origin effect (COE),

also known as the made-in image

and the nationality bias is a
psychological effect describing how
consumers' attitudes, perceptions and
purchasing decisions are influenced by
products' country of origin labeling.

Country of Origin
Effects
Many consumers may take into consideration

the country of origin of a product.

Some consumers have animosity toward a

country
Peoples Republic of China has some
animosity to Japan
Jewish consumers avoid German products
New Zealand and Australian consumers
boycott French products

Swiss
Watches

This U.S.
Government
Web site helps
those who
want to buy
USA products.

Ejaz Khan
MB 12-56

Cross-Cultural
Consumer
Analysis

The effort to
determine to what
extent the
consumers of two
or more nations are
similar or different.

Cross-Cultural
Consumer Analysis
Similarities and differences among

people
The growing global middle class
The global teenage market
Acculturation

Similarities and differences

among people
The greater the similarity between

nations, the more feasible to use

relatively
similar
marketing
strategies
Marketers often speak to the same

types of consumers globally

Comparisons of Chinese and American

Cultural Traits
Chinese Cultural
Traits
Centered on
Confucian doctrine
Submissive to
authority
Ancestor worship
Values a persons
duty to family and
state

American Cultural
Traits
Individual centered
Emphasis on selfreliance
Primary faith in
rationalism
Values individual
personality

The growing global

middle
class

Middle class is growing in:

Asia
South America
and Eastern Europe
Marketers should focus on these

markets

Haq Nawaz
MB-12-17

The global teenage

There
market
has been growth in an affluent
global teenage
market
They

and

young

adult

appear
to
have
similar
interests, desires, and consumption
behavior no matter where they live.

The iPod has

global appeal
to the young
market.

Copyright 2007 by Prentice Hall

Acculturation
Marketers must learn everything that

is relevant about the usage of their

product and product categories in
foreign countries

Basic Research Issues in Cross-Cultural Analysis

FACTORS

EXAMPLES

Differences in language and meaning

Words or concepts may not mean the same in

two different countries.

Differences in market segmentation

opportunities

The income, social class, age, and sex of

target customers may differ dramatically in
two different countries.

Differences in consumption patterns

Two countries may differ substantially in the

level of consumption or use of products or
services.

Differences in the perceived benefits of

products and services

Two nations may use or consume the same

product in very different ways.

Basic Research Issues in Cross-Cultural Analysis

FACTORS

EXAMPLES

Differences in the criteria for evaluating

products and services

The benefits sought from a service may

differ from country to country.

Differences in economic and social

conditions and family structure

The style of family decision making

may vary significantly from country to
country.

Differences in marketing research and

conditions

The types and quality of retail outlets and

direct-mail lists may vary greatly among
countries.

Differences in marketing research

possibilities

The availability of professional consumer

researchers may vary considerably from
country to country.

Johar Hussain
MB-12-42

Alternative Multinational
Strategies: Global Versus
Local
World
Brands

Products that are

manufactured, packaged,
and positioned the same
way regardless of the
country in which they are
sold.

Cross-Border Diffusion of
Popular Culture
Generation

Promotio
n
Direct
Indirect
Popular
culture
socio-cultural
Activities,
Events,Places,l
ife styles

Distribution
Direct
Indirect

Consumption

CrossBorder
Access
Promotion
Distribution
--------------Domestic

Branding

Early Adopters
Demographics
& Friendship
Network

Consumptio
n
(Passive to
Active)
Awareness
Interest
Search
Participation

Positive
View
Of
(lifestyle)
(SubCulture)
Feedback of Branding influence
of Popular Culture

High
Branding
Potential
Attributes/
Perceptions

Brand
Building
(New &
Extension)
Products,
Services,
Styles,
Images,&
location

Majid Ibrahim

Are Global Brands

Different?
According to a survey yes.
Global brands have:
Quality signal
Global myth
Social responsibility

Multinational Reactions to Brand

Extensions
A global brand does not always have

success with brand extensions.

Example of Coke brand extension Coke

popcorn
Eastern culture saw fit and accepted the
brand extension
Western culture did not see fit.

Adaptive Global
Marketing
Adaptation of advertising message to

specific values of particular cultures

McDonalds uses localization
Example Ronald McDonald is Donald
McDonald in Japan
Japanese menu includes corn soup and
green tea milkshakes
Often best to combine global and local
marketing strategies

M.Shamshad
MB-12-30

Frameworks
for assessing
multinational
strategies

Continued
Global marketers face the
challenge
of
creating
multinational strategies in the
form
of
marketing
and
advertising programs capable of
communicating effectively with a
diversity of target market.

Product recognition
Continuum for Multinational
Marketing
Factors

Examples

1.Local consumers have heard or read of a brand

marketed elsewhere but cannot get it at home,

brand is alien and unavailable but may be
desirable.
2.Local consumer view a brand made elsewhere as
foreign a made in particular country but locally
available.
3.Local consumer accord imported brand national
status that is its national origin is known but does
not effect their choice.

Continued
Brand owned by foreign company is made
domestically and has come to be perceived
by as a local brand its foreign origin may be
remembered but the brand has been
adopted.
5 Brand has lost national identity and
consumer elsewhere see it as border less or
global not only can people not identified
where it come formed but they never ask
this question.
4

A Framework for Alternative Global

Marketing Strategies
PRODUCT
STRATEGY

COMMUNICATON
STRATEGY
STANDARDIZED
COMMUNICATIONS

LOCALIZED
COMMUNICATIONS

STANDARDIZED
PRODUCT

Global strategy:
Uniform Product/ Uniform
Message

Mixed Strategy:
Uniform Product/
Customized Message

LOCALIZED
PRODUCT

Mixed strategy:
Customized Product/
Uniform Message

Local Strategy:
Customized Product/
Customized Message

When it comes to the design of e-commerce

websites five nation research. study suggests that
consumer react best when content is adapted to their
local needs. While in the past some company felt that
local adaption involved no more then simply
translating web pages into the local languages.
Which is now felt that special attention must also be
paid to the number of others including local time and
date formats, units of measurement, addresses and
telephone numbers, layouts and orientation of
WebPages, icons, symbols and colors.

Rao Inayat
Kareem

Cross-culture
psychographic
Segmentation

Psychographics
Study of values, attitude, interest and

life styles
Psychographic studies of individuals
and communities is valuable in the field
of marketing.
Psychographics is equivalent to
Culture.

Copyright 2007 by Prentice Hall

Psychographic
segmentation
Dividing the buyers in the market

into groups based on social class,

life style
or personality characteristics.
Sometimes,reffered to as Behavioral

Segmentation.

Cross-cultural psychographic
segmentation
Market segmentation on the bases of

consumer life
styles,attitudes,activities,behaviours
irrespective of National Border.
The only ultimate truth possible is that
humans are both deeply the same and
obviously different.
Used in Developing global and local
marketing strategies.

Strivers
23%

Devouts
22%

Altruists
18%

Intimates
15%

Fun Seekers
12%

Creatives
10%

Six Global Consumer Segments

1. Strivers:
Ambitious and materialistic
2. Devouts:
Responsible and respectful, conservative
and outlook

3. Altruists:
Unselfish and their concern for others

Six Global Consumer Segments

4. Intimates:
Focus on social relationship and family

5. Fun seekers:
Young in age and outlook, they value adventures
and good times

6. Creative:
interest

Seek knowledge insight and have a keen

in books and new media

Summary
Different countries, cultures have different
values, norms, lifestyles therefore they
have also different taste toward the World
Brands. It is necessary for the
organizations to formulate that marketing
strategies which are customized across the
culture. According to values and perception
of the consumer the marketing efforts
would be beneficial for both organization
as well consumers.
Copyright 2007 by Prentice Hall