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Chapter 13

Chapter 13

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University of Guelph
Marketing and Consumer Studies
MCS 2600
Lianne Foti

Chapter 13- cb- Cross cultural consumer behavior ← • Today almost all major corporations are actively marketing their products beyond their original homeland borders. • The vocabulary of marketing now includes terms such as GLOCAL, which refers to companies that are both global and local, that is they include in their marketing efforts a blend of standardized and local elements in order to secure the benefits of each strategy. • This challenge has been given special meaning by the efforts of the European Union (EU) to form a single market. Although the movement of goods and services among its 27 members has been eased, it is unclear whether this diverse market will really be transformed. • Closer to home, the North American Free Trade Agreement (NAFTA) which currently consists of the United States, Canada, and Mexico. Winning Emerging Markets: • In 2006, for the first time, the GDP of emerging markets equaled the GDP of advanced nations. Much of this growth came from BRICET- brazil, Russia, India, china, eastern Europe, and turkey. Because emerging markets are home to about 85 percent of the world’s population, multinational, marketers who ignore these markets do so at their own peril. ← Acquire Exposure to Other Cultures: • As more and more consumers come in contact with the material goods and lifestyles of people living in other parts of the world, they have the opportunity to adopt these different products and practices. ← Country-of-orgin Effects: • A number of recent research studies have examine country of orgin effects both in the united states and in other countries. • One study of the Samsung brand among U.S consumers found no difference in brand image or purchase intention whether the subject thought that Samsung was a Japanese brand or a South Korean brand. • A study in Indonesia reported that with respect to relative quality and purchase intention, country-of-orgin was more important than price for both intangible services and tangible goods, and this was true for consumers both high and low in consumer ethnocentrism • Research conducted in China found that the COO can influence four different factors, 1) consumer ethnocentrism, 2) knowledge of the product and country of orgin, 3) degree of a consumer’s involvement in the product, 4) individual differences in information processing • COO effects influence how consumers rate quality and which brands they will ultimately select. ← The best global brands: coca cola, ibm, Microsoft, GE, nokia, Toyota, intel, McDonalds, Disney, Google Country-of-orgin Effects: POSITIVE • Many consumers take into consideration the COO of a product o Country of origin commonly:  France=wine, fashion, perfume  Italy=pasta, designer clothing  Japan=cameras and consumer electronics  Germany=cars, tools, machinery Animosity and Country of Manufacturer: Some consumers have animosity (hatred) toward a country o People’s Republic of China have some animosity to Japan o Jewish consumers avoid German products due to holocaust o New Zealand and Australian consumers boycott French products due to France’s nuclear tests in the South Pacific • To determine whether and how to enter a foreign market, marketers need to conduct some form of ← cross-cultural consumer analysis: the effort to determine to what extent the consumers of two or more nations are similar or different. • Such analyses can provide marketers with an understanding of the psychological, social, and cultural characteristics of the foreign consumers they wish to target. • Issues: o 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  Comparison of Chinese and American Cultural Traits (See table 13.2)  Based on consumer style, researchers were able to segment these consumers into four clusters 1) price- sensitive, 2) variety-seeking, 3) brand-loyal, 4) information seeking  For example, since German consumers tend to be less brand loyal and more price sensitive that their counterparts from other three nations, it is not surprising that German participants are underrepresented in the brand-loyal consumer cluster and overrepresented in price-sensitive. • The growing global middle class: o Growing in Asia, South America, and Easter Europe o Marketers should focus on these markets • The Global Teen Market: o As part of the growth of the world middle class, there has been a parallel growth in an affluent global teenage and young adult market, a segment that has attracted the attention of marketers o They appear to have similar interests, desires, and consumption behavior no matter where they live • Acculturation: o Too many marketers contemplating international expansion make the strategic error of believing that its product is likely local or domestic consumers, then everyone will like it. This biased viewpoint increases the likelihood of marketing failures abroad. o To overcome such a narrow and culturally myopic view, marketers must also go through an acculturation process: they must learn everything that is relevant about the usage of their product and product categories in foreign countries. o In a sense, cross cultural acculturation is a dual process for marketers. First, marketers must thoroughly orient themse
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