Chapter

2
Cross-Cultural Variations in
Consumer Behavior
Learning Objectives

• Develop an understanding on the concept of culture and its impact on

• consumer behavior
• Learn about the categories of cultural values and its impact on consumer
• behavior
• Understand the cultural variations in nonverbal communications
• Develop an understanding of global cultures and global demographics
• Get an idea about cross-cultural marketing strategy
Marketing Across Cultural Boundaries is a
Difficult and Challenging Task
Globalization
• Globalization means mutual influence as products, brands, cultures, and values
move back and forth across the world.

• Four major world citizens

• Global citizens (55 percent)

• Global dreamers (23 percent)

• Antiglobals (13 percent)

• Global agnostics (9 percent)

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.
• 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.
 Variations in Cultural Values
• Other-Oriented Values
• society’s view of
appropriate relationships
between individuals and
groups within a society
 Individual/Collective
 Youth/Age
 Extended/Immediate
family
 Masculine/Feminine
 Competition/Cooperation
 Diversity/Uniformity
• Self-Oriented Values
• Environment-Oriented • objectives and approaches
to life that an individual
Values
member of a society find
• society’s view of desirable
economic, technical and
physical environment
 Active/Passive
 Cleanliness
 Sensual
Gratification/Abstinence
 Performance/Status
 Material/Nonmaterial
 Tradition/Change
 Hard Work/Leisure
 Risk Taking/Security
 Postponed/Immediate
 Problem Gratification
Solving/Fatalistic
 Religious/Secular
 Admire/Overcome
Nature
Cultural Variations in Nonverbal Communications
• Time
 The meaning of time varies between cultures in two
major ways:
o
Time perspective: Monochronic/Polychronic
o
Time Interpretations
• Space
 Overall use and meanings assigned to space vary
widely among different cultures
• 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!
Cultural Variations in
Nonverbal Communications
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 and
characterized by guanxi
(networks a person has).
Cultural Variations in Nonverbal Communications contd..
• 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, etc.
• 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.
• Etiquette
 The generally accepted ways of behaving in social
situations.
 Behaviors considered rude or obnoxious in one
culture may be quite acceptable in another!
Global Cultures
• A Global Youth Culture?
 Mass media and the Internet have had an impact of
uniformity among teens around the world.
 They tend to watch many of the same shows, movies
and videos, listen to the same music, and dress alike.
 Technology is important factor but U.S. youth and
brands no longer lead the way.

Global Demographics
• Demographics describe a population in terms of its size, structure, and distribution.
• Demographics are both a result and a cause of cultural values.
• Disposable income is one aspect of demographics-the rapid growth in personal income in parts of
China has led to an overall market explosion!
Global Demographics contd..
• Marketers increasingly use Purchasing Power Parity (PPP) rather than average or
median income to evaluate markets.
• PPP is based on the cost of a standard market basket of products bought in each country.

The following shows four countries in terms of PPP:

Per Capita % of Total Per Capita
Country Income income (to top PPP
10%)
Brazil $4,791 45% $8,596
China $1,721 35% $4,091
United
$37,266 29% $31,580
Kingdom
United States $41,674 30% $41,674
Cross-Cultural Marketing Strategy
• Considerations in Approaching a Foreign Market
 Homogeneous versus Heterogeneous with Respect to Culture?
 What Needs Can the Product Fill in this Culture?
 Can Enough People Afford the Product?
 What Values are Relevant to the Purchase and Use of the Product?
 What are the Distribution, Political and Legal Structures for the Product?
 In What Ways Can We Communicate About the Product?
 What are the Ethical Implications of Marketing This Product in This Country?