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Chapter Sixteen
Culture and cross-cultural
 variations in consumer
        behaviour


                             16-1
Chapter 16:
         Culture and cross-cultural
     variations in consumer behaviour
1. Concept of culture
2. How culture is shared and acquired
3. Cultural values classified into 3 categories
4. Culture also involves non-verbal
   communications
5. Consumption practices are influenced by
   cultural content
6. Considerations before undertaking cross-
   cultural or ethnic marketing

                                             16-2
Cultural influences—Overview

1. Definitions
2. Cultural values
3. Cross-cultural variations
4. Non-verbal communications
5. Cross-cultural marketing strategy




                                       16-3
Definition of culture

• Complex concept that includes knowledge,
  beliefs, art, law, morals, custom, and any
  other capabilities acquired by humans as
  members of society.

• Culture includes almost everything that
  influences an individual’s thought
  processes and behaviours.


                                               16-4
The Concept of Culture

                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.


                                      16-5
Variables influencing cross-cultural
       marketing strategies




                                       16-6
Culture
• Is a comprehensive concept
• Influences our preferences
• Is acquired from our experiences and
  learning
• Supplies the boundaries for behaviour
  in modern societies
• Consumers are seldom aware of
  cultural influences

                                      16-7
Cultural values, norms, sanctions and
        consumption patterns




                                    16-8
Culture and change

• Cultures are not static and evolve and
  change slowly over time
• Sometimes changes can be rapid
   – Technological advances
   – Dramatic events e.g. war
• Marketers need to monitor changes


                                      16-9
Interaction between values, norms, and
         consumption patterns




                                     16-10
Classification of cultural values
• Three broad classifications are used:
  –   Other-oriented

  –   Environment-oriented

  –   Self-oriented



                                     16-11
Variations in Cultural Values

             Other-Oriented Values

Reflect a society’s view
of the appropriate
relationships between
individuals and groups
within that society.




                                       16-12
Variations in Cultural Values

       Environment-Oriented Values

Prescribe a society’s
relationship to its
economic and technical
as well as its physical
environment.




                                      16-13
Variations in Cultural Values

             Self-Oriented Values
Reflect the objectives and approaches to life that
the individual members of society find desirable.




                                                     16-14
Other-oriented values
• Individual vs collective (initiative,
    conformity)
•   Romantic orientation (love)
•   Adult vs child (child’s place)
•   Masculine vs feminine (male role)
•   Competition vs cooperation (excel or
    not?)
•   Youth vs age (wisdom of elders)

                                          16-15
Variations in Cultural Values

              Other-Oriented Values
                    Individual/Collective
Are individual activity and initiative valued more highly
than collective activity and conformity?

Asian cultures more
collective
U.S. culture more
individualistic


                                                            16-16
Variations in Cultural Values
            Other-Oriented Values
                    Youth/Age

Is family life organized
to meet the needs of
the children or the
adults?
Are younger or older
people viewed as
leaders and role
models?
                                      16-17
Variations in Cultural Values
             Other-Oriented Values
               Extended/Limited Family

To what extent does
one have a life-long
obligation to
numerous family
members?
Extended family
critical in South/
Central America
                                         16-18
Variations in Cultural Values

            Other-Oriented Values
                Masculine/Feminine
To what extend does social power automatically go to
males?




                                                       16-19
Variations in Cultural Values
         Other-Oriented Values
          Competitive/Cooperative


Does one obtain
success by excelling
over others or by
cooperating with
them?



                                    16-20
Variations in Cultural Values

             Other-Oriented Values
                 Diversity/Uniformity
Does the culture embrace variation in religious belief,
ethnic background, political views, and other important
behaviors and attitudes?




                                                          16-21
Environment-oriented values
• Cleanliness (extent of)
• Performance vs status (performance or
    class)
•   Tradition vs change (new behaviours?)
•   Risk-taking vs security (risk encouraged?)
•   Problem-solving vs fatalism (problem-
    solving or acceptance encouraged?)
•   Nature (admired or overcome?)


                                            16-22
Variations in Cultural Values

        Environment-Oriented Values
                  Cleanliness

To what extent is
cleanliness pursued
beyond the minimum
needed for health?
U.S. very high on personal
hygiene – some think to an
extreme!
                                      16-23
Variations in Cultural Values
            Environment-Oriented Values
                   Performance/Status
Is the culture’s reward system based on performance or on
inherited factors such as family or class?

Closely related to the concept of
power distance, which refers to
the degree to which people
accept inequality in power,
authority, status, and wealth as
natural or inherent in society.


                                                            16-24
Variations in Cultural Values
         Environment-Oriented Values

                   Tradition/Change
Is tradition valued simply for the sake of tradition? Is
change or “progress” an acceptable reason for altering
established patterns?




                                                           16-25
Variations in Cultural Values
                Environment-Oriented Values
                                    Tradition/Change (Cont.)
A focus on technology as an indicator of change illustrates
some dramatic differences across cultures that show the
following:




     The above represent Internet users and cell phones as a percent of total population
                                                                                           16-26
Variations in Cultural Values

          Environment-Oriented Values
                  Risk taking/Security
Are those who risk their established positions to
overcome obstacles or achieve high goals admired more
than those who do not?
A society that does not admire risk taking is unlikely to
develop enough entrepreneurs to achieve economic
change and growth.



                                                            16-27
Variations in Cultural Values

        Environment-Oriented Values
              Problem solving/Fatalistic
Are people encouraged to overcome all problems,
or do they take a “what will be, well be” attitude?
Is there an optimistic, “we can do it” orientation?
Mexico and Middle-East Countries tend to fall
toward the fatalistic end of the continuum.



                                                      16-28
Variations in Cultural Values

       Environment-Oriented Values
                      Nature
Is nature regarded as something to be admired or
overcome?




                                                   16-29
Self-oriented values
• Active vs passive (physical activity)
• Material vs non-material approach
    (acquisition?)
•   Hard work vs leisure (admire hard work?)
•   Postponed vs immediate gratification
    (save/enjoy now)
•   Sensual gratification vs abstinence (food,
    drink)
•   Humour vs seriousness (is life serious?)


                                             16-30
Variations in Cultural Values

             Self-Oriented Values
                   Active/Passive
Is a physically active approach to life valued more
highly than a less active orientation?




                                                      16-31
Variations in Cultural Values
                 Self-Oriented Values

            Sensual gratification/Abstinence
To what extent is it acceptable to enjoy sensual pleasures
such as food, drink, and sex?
Cultures differ in their acceptance of sensual gratification.




                                                                16-32
Applications in Consumer Behavior


Ad for Calvin Klein
underwear:
OK in U.S. and
France.
Not appropriate in
cultures that place a
high value on
abstinence.



                                        16-33
Variations in Cultural Values
               Self-Oriented Values
                 Material/Nonmaterial
How much importance is attached to the acquisition of
material wealth?
Two types of materialism:
1. Instrumental materialism – is the acquisition of
   things to enable one to do something.
2. Terminal materialism – is the acquisition of items for
   the sake of owning the item itself.


                                                            16-34
Variations in Cultural Values

             Self-Oriented Values
                 Hard work/Leisure
Is a person who works harder than economically
necessary admired more than one who does not?




                                                 16-35
Variations in Cultural Values

              Self-Oriented Values
   Postponed gratification/Immediate gratification
Are people encouraged to “save for a rainy day” or to
“live for today”?




                                                        16-36
Variations in Cultural Values

              Self-Oriented Values
                  Religious/Secular
To what extent are behaviors and attitudes based on
the rules specified by a religious doctrine?




                                                      16-37
The Australasian culture
• Australasian values
  – Self-oriented values
  – Environment-oriented values
  – Self-oriented values




                                  16-38
Australasian self-oriented values
• Hard work valued
• Strong bias for action
• May be a lessening of self-gratification
  –But very high personal debt
• Material orientation
• Humorous outlook




                                       16-39
Australasian environment-oriented
               values
Traditionally have admired:
• Cleanliness
• Change
• Performance
• Risk taking
• Conquest of nature
  How have these changed?


                                 16-40
Australasian other-orientated
             values
• Traditionally (Aust-NZ) have been
 individualistic, competitive, romantic,
 masculine, youthful, and parent-
 oriented societies

 How are these changing?



                                       16-41
Australasian values dictate that hard work
               is desirable




                                       16-42
Western society accepts open courtship




                                    16-43
Cultural variations in non-verbal
         communications
Translation problems in marketing




                                 16-44
Cross-cultural variations:
     Factors influencing non-verbal
            communications
• Time
• Space
• Friendship
• Agreements
• Things
• Symbols
• Etiquette

                                      16-45
Cultural Variations in Nonverbal
       Communications




                                   16-46
Cultural Variations in Nonverbal
       Communications

                       Time
              The meaning of time varies
              between cultures in two major
              ways:

               •   Time perspective—the
                   culture’s overall orientation
                   toward time (monochronic
                                 monochronic
                   vs. polychronic
                       polychronic)

               •    Interpretations assigned to
                   specific uses of time
                                                   16-47
Time perspective
Monochronic and polychronic cultures




                                       16-48
Non-verbal communications
             (cont.)
• Space
• Friendship
• Agreements
• Things
• Symbols
• Etiquette



                               16-49
Cultural Variations in Nonverbal
       Communications

                       Space

              •   Overall use and meanings
                  assigned to space vary widely
                  among different cultures
                  -how office space is
                  allocated

                  -Personal space



                                              16-50
Cultural Variations in Nonverbal
       Communications

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



                                            16-51
Meaning of numbers, colours and other
 symbols, in different cultures – Part 1




                                       16-52
Meaning of numbers, colours and other
 symbols, in different cultures - Part 2




                                      16-53
Cultural Variations in Nonverbal
       Communications

                Relationships
            How quickly and easily do cultures
            form relationships and make friends?
               •Americans tend to form relationships
               and friends quickly and easily.
               •Chinese relationships are much more
               complex. Under the concept of guanxi,
               an individual can draw upon personal
               connections/relationships to secure
               resources or advantages when doing
               business as well as in the course of
               social life.

                                                   16-54
Cultural Variations in Nonverbal
       Communications

                  Agreements
            How does a culture ensure
            business obligations are
            honored? How are
            disagreements resolved?
            Some cultures rely on a legal
            system; others rely on
            relationships, friendships, kinship,
            local moral principles, or informal
            customs to guide business
            conduct.
                                                   16-55
Cultural Variations in Nonverbal
       Communications
                       Things
            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.
            For example, what type of gift is
            appropriate and when does receipt
            of a gift “require” a gift in return?
                                                    16-56
Cultural Variations in Nonverbal
       Communications
                        Etiquette
          Meishi is an important aspect of Japanese
          business etiquette…”a man without a Meishi has
          no identity in Japan.” What is Meishi? It is the
          exchange of business cards!




                                                       16-57
Cultural Variations in Nonverbal
       Communications
                        Etiquette
          The generally accepted ways of behaving in
          social situations.
          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.




                                                       16-58
Etiquette
• Eye contact with business clients
• Touching a customer on the arm or
  shoulder
• Contact between males




                                      16-59
Developing a cross-cultural
       marketing strategy
Seven questions:
1. Is it a homogenous culture?
2. What needs will the product fill?
3. Can enough afford the product?
4. What values are relevant to this product?
5. What are the distribution, political and legal
   structures?
6. How can the firm communicate about the
   product?
7. What are the ethical implications?
                                              16-60

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BB Chapter Sixteen : Culture And Cross Cultural

  • 1. Chapter Sixteen Culture and cross-cultural variations in consumer behaviour 16-1
  • 2. Chapter 16: Culture and cross-cultural variations in consumer behaviour 1. Concept of culture 2. How culture is shared and acquired 3. Cultural values classified into 3 categories 4. Culture also involves non-verbal communications 5. Consumption practices are influenced by cultural content 6. Considerations before undertaking cross- cultural or ethnic marketing 16-2
  • 3. Cultural influences—Overview 1. Definitions 2. Cultural values 3. Cross-cultural variations 4. Non-verbal communications 5. Cross-cultural marketing strategy 16-3
  • 4. Definition of culture • Complex concept that includes knowledge, beliefs, art, law, morals, custom, and any other capabilities acquired by humans as members of society. • Culture includes almost everything that influences an individual’s thought processes and behaviours. 16-4
  • 5. The Concept of Culture 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. 16-5
  • 6. Variables influencing cross-cultural marketing strategies 16-6
  • 7. Culture • Is a comprehensive concept • Influences our preferences • Is acquired from our experiences and learning • Supplies the boundaries for behaviour in modern societies • Consumers are seldom aware of cultural influences 16-7
  • 8. Cultural values, norms, sanctions and consumption patterns 16-8
  • 9. Culture and change • Cultures are not static and evolve and change slowly over time • Sometimes changes can be rapid – Technological advances – Dramatic events e.g. war • Marketers need to monitor changes 16-9
  • 10. Interaction between values, norms, and consumption patterns 16-10
  • 11. Classification of cultural values • Three broad classifications are used: – Other-oriented – Environment-oriented – Self-oriented 16-11
  • 12. Variations in Cultural Values Other-Oriented Values Reflect a society’s view of the appropriate relationships between individuals and groups within that society. 16-12
  • 13. Variations in Cultural Values Environment-Oriented Values Prescribe a society’s relationship to its economic and technical as well as its physical environment. 16-13
  • 14. Variations in Cultural Values Self-Oriented Values Reflect the objectives and approaches to life that the individual members of society find desirable. 16-14
  • 15. Other-oriented values • Individual vs collective (initiative, conformity) • Romantic orientation (love) • Adult vs child (child’s place) • Masculine vs feminine (male role) • Competition vs cooperation (excel or not?) • Youth vs age (wisdom of elders) 16-15
  • 16. Variations in Cultural Values Other-Oriented Values Individual/Collective Are individual activity and initiative valued more highly than collective activity and conformity? Asian cultures more collective U.S. culture more individualistic 16-16
  • 17. Variations in Cultural Values Other-Oriented Values Youth/Age Is family life organized to meet the needs of the children or the adults? Are younger or older people viewed as leaders and role models? 16-17
  • 18. Variations in Cultural Values Other-Oriented Values Extended/Limited Family To what extent does one have a life-long obligation to numerous family members? Extended family critical in South/ Central America 16-18
  • 19. Variations in Cultural Values Other-Oriented Values Masculine/Feminine To what extend does social power automatically go to males? 16-19
  • 20. Variations in Cultural Values Other-Oriented Values Competitive/Cooperative Does one obtain success by excelling over others or by cooperating with them? 16-20
  • 21. Variations in Cultural Values Other-Oriented Values Diversity/Uniformity Does the culture embrace variation in religious belief, ethnic background, political views, and other important behaviors and attitudes? 16-21
  • 22. Environment-oriented values • Cleanliness (extent of) • Performance vs status (performance or class) • Tradition vs change (new behaviours?) • Risk-taking vs security (risk encouraged?) • Problem-solving vs fatalism (problem- solving or acceptance encouraged?) • Nature (admired or overcome?) 16-22
  • 23. Variations in Cultural Values Environment-Oriented Values Cleanliness To what extent is cleanliness pursued beyond the minimum needed for health? U.S. very high on personal hygiene – some think to an extreme! 16-23
  • 24. Variations in Cultural Values Environment-Oriented Values Performance/Status Is the culture’s reward system based on performance or on inherited factors such as family or class? Closely related to the concept of power distance, which refers to the degree to which people accept inequality in power, authority, status, and wealth as natural or inherent in society. 16-24
  • 25. Variations in Cultural Values Environment-Oriented Values Tradition/Change Is tradition valued simply for the sake of tradition? Is change or “progress” an acceptable reason for altering established patterns? 16-25
  • 26. Variations in Cultural Values Environment-Oriented Values Tradition/Change (Cont.) A focus on technology as an indicator of change illustrates some dramatic differences across cultures that show the following: The above represent Internet users and cell phones as a percent of total population 16-26
  • 27. Variations in Cultural Values Environment-Oriented Values Risk taking/Security Are those who risk their established positions to overcome obstacles or achieve high goals admired more than those who do not? A society that does not admire risk taking is unlikely to develop enough entrepreneurs to achieve economic change and growth. 16-27
  • 28. Variations in Cultural Values Environment-Oriented Values Problem solving/Fatalistic Are people encouraged to overcome all problems, or do they take a “what will be, well be” attitude? Is there an optimistic, “we can do it” orientation? Mexico and Middle-East Countries tend to fall toward the fatalistic end of the continuum. 16-28
  • 29. Variations in Cultural Values Environment-Oriented Values Nature Is nature regarded as something to be admired or overcome? 16-29
  • 30. Self-oriented values • Active vs passive (physical activity) • Material vs non-material approach (acquisition?) • Hard work vs leisure (admire hard work?) • Postponed vs immediate gratification (save/enjoy now) • Sensual gratification vs abstinence (food, drink) • Humour vs seriousness (is life serious?) 16-30
  • 31. Variations in Cultural Values Self-Oriented Values Active/Passive Is a physically active approach to life valued more highly than a less active orientation? 16-31
  • 32. Variations in Cultural Values Self-Oriented Values Sensual gratification/Abstinence To what extent is it acceptable to enjoy sensual pleasures such as food, drink, and sex? Cultures differ in their acceptance of sensual gratification. 16-32
  • 33. Applications in Consumer Behavior Ad for Calvin Klein underwear: OK in U.S. and France. Not appropriate in cultures that place a high value on abstinence. 16-33
  • 34. Variations in Cultural Values Self-Oriented Values Material/Nonmaterial How much importance is attached to the acquisition of material wealth? Two types of materialism: 1. Instrumental materialism – is the acquisition of things to enable one to do something. 2. Terminal materialism – is the acquisition of items for the sake of owning the item itself. 16-34
  • 35. Variations in Cultural Values Self-Oriented Values Hard work/Leisure Is a person who works harder than economically necessary admired more than one who does not? 16-35
  • 36. Variations in Cultural Values Self-Oriented Values Postponed gratification/Immediate gratification Are people encouraged to “save for a rainy day” or to “live for today”? 16-36
  • 37. Variations in Cultural Values Self-Oriented Values Religious/Secular To what extent are behaviors and attitudes based on the rules specified by a religious doctrine? 16-37
  • 38. The Australasian culture • Australasian values – Self-oriented values – Environment-oriented values – Self-oriented values 16-38
  • 39. Australasian self-oriented values • Hard work valued • Strong bias for action • May be a lessening of self-gratification –But very high personal debt • Material orientation • Humorous outlook 16-39
  • 40. Australasian environment-oriented values Traditionally have admired: • Cleanliness • Change • Performance • Risk taking • Conquest of nature How have these changed? 16-40
  • 41. Australasian other-orientated values • Traditionally (Aust-NZ) have been individualistic, competitive, romantic, masculine, youthful, and parent- oriented societies How are these changing? 16-41
  • 42. Australasian values dictate that hard work is desirable 16-42
  • 43. Western society accepts open courtship 16-43
  • 44. Cultural variations in non-verbal communications Translation problems in marketing 16-44
  • 45. Cross-cultural variations: Factors influencing non-verbal communications • Time • Space • Friendship • Agreements • Things • Symbols • Etiquette 16-45
  • 46. Cultural Variations in Nonverbal Communications 16-46
  • 47. Cultural Variations in Nonverbal Communications Time The meaning of time varies between cultures in two major ways: • Time perspective—the culture’s overall orientation toward time (monochronic monochronic vs. polychronic polychronic) • Interpretations assigned to specific uses of time 16-47
  • 48. Time perspective Monochronic and polychronic cultures 16-48
  • 49. Non-verbal communications (cont.) • Space • Friendship • Agreements • Things • Symbols • Etiquette 16-49
  • 50. Cultural Variations in Nonverbal Communications Space • Overall use and meanings assigned to space vary widely among different cultures -how office space is allocated -Personal space 16-50
  • 51. Cultural Variations in Nonverbal Communications Symbols Colors, animals, shapes, numbers, and music have varying meanings across cultures. Failure to recognize the meaning assigned to a symbol can cause serious problems! 16-51
  • 52. Meaning of numbers, colours and other symbols, in different cultures – Part 1 16-52
  • 53. Meaning of numbers, colours and other symbols, in different cultures - Part 2 16-53
  • 54. Cultural Variations in Nonverbal Communications Relationships How quickly and easily do cultures form relationships and make friends? •Americans tend to form relationships and friends quickly and easily. •Chinese relationships are much more complex. Under the concept of guanxi, an individual can draw upon personal connections/relationships to secure resources or advantages when doing business as well as in the course of social life. 16-54
  • 55. Cultural Variations in Nonverbal Communications Agreements How does a culture ensure business obligations are honored? How are disagreements resolved? Some cultures rely on a legal system; others rely on relationships, friendships, kinship, local moral principles, or informal customs to guide business conduct. 16-55
  • 56. Cultural Variations in Nonverbal Communications Things 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. For example, what type of gift is appropriate and when does receipt of a gift “require” a gift in return? 16-56
  • 57. Cultural Variations in Nonverbal Communications Etiquette Meishi is an important aspect of Japanese business etiquette…”a man without a Meishi has no identity in Japan.” What is Meishi? It is the exchange of business cards! 16-57
  • 58. Cultural Variations in Nonverbal Communications Etiquette The generally accepted ways of behaving in social situations. 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. 16-58
  • 59. Etiquette • Eye contact with business clients • Touching a customer on the arm or shoulder • Contact between males 16-59
  • 60. Developing a cross-cultural marketing strategy Seven questions: 1. Is it a homogenous culture? 2. What needs will the product fill? 3. Can enough afford the product? 4. What values are relevant to this product? 5. What are the distribution, political and legal structures? 6. How can the firm communicate about the product? 7. What are the ethical implications? 16-60