CHAPTER 13
Cross-Cultural Consumer Behavior: An International Perspective
LEARNING OBJECTIVES
13.2 To understand how to research the cultures of consumers in other countries.
13.4 To understand how to evaluate global marketing prospects.
13.5 To understand the applications of psychographics in targeting consumers in other
countries.
CHAPTER SUMMARY
Learning Objective 13.1: To understand how cultural values and customs impact the buying
patterns of consumers in other countries.
Within the scope of consumer behavior, cross-cultural analysis consists of determining to what
extent the consumers of two or more nations are similar or different. Such analyses provide
Learning Objective 13.2: To understand how to research the cultures of consumers in other
countries.
An understanding of the similarities and differences that exist between nations is critical to the
multinational marketer who must devise appropriate strategies to reach consumers in specific
foreign markets. Some of the problems involved in cross-cultural analysis include differences in
Learning Objective 13.3: To understand localization and standardization of products and
promotions.
The greater the similarity between nations, the more feasible it is to use relatively similar
marketing strategies in each nation. When the cultural beliefs, values, and customs of specific
target countries are found to differ widely, then a highly individualized marketing strategy
is indicated for each country. In deciding whether or not to customize products to local cultures,
marketers must consider local values, linguistic barriers, and legal issues.
Learning Objective 13.4: To understand how to evaluate global marketing prospects.
Firms are increasingly selling their products worldwide for a variety of reasons. Many firms have
learned that overseas markets represent an important opportunity for their future growth when
their home markets reach maturity. This realization is propelling them to expand their horizons
Learning Objective 13.5: To understand the applications of psychographics in targeting
consumers in other countries.
Global psychographic research often reveals cultural differences of great importance to
marketers. Psychographics identifies shared values, irrespective of national borders. Much of this
CHAPTER OUTLINE
INTRODUCTION
1. American companies selling their products in other countries must carefully research the
cultures of the nations that they target.
2. For example, some American brand names indicate what they represent and other do not.
3. Many American brand names and slogans must be revised or changed in non-English
speaking countries.
Global Brands
5. Global brands are associated with three characteristics:
6. Intracountry segments (with respect to how a country’s citizens view global brands) include:
a) Global Citizens (55%)
7. A study of consumers from eight countries discovered that self-enhancement advertisements
and advertising that stressed openness (in terms of allowing people to pursue their goals in
exciting ways) were perceived most favorably.
*****Use Learning Objective 13.1 Here; Use Key Terms global brand Here*****
Analyzing Global Markets
1. Cross-cultural analysis is defined as determining to what extent the consumers of two or
more nations are similar or different.
a. This type of analysis provides marketers with an understanding of the psychological,
social, cultural, and environmental factors.
b. The increased understanding enables the design of effective marketing strategies for
specific countries.
c. Buying styles – collectivistic vs individualistic – can impact consumer behavior
i. Countries like China and Mexico are collectivistic (we) cultures
ii. Countries like the U.S. and the U.K. are individualistic (I) cultures
iii. Collectivists rely more on word-of-mouth
iv. Individualists attach more importance to explicit and implicit promises and
*****Use Learning Objective 13.2 Here; Use Key Term cross-cultural analysis Here; Use
Figure #13.2 Here*****
2. Research issues that should be considered include:
a. Judgments regarding the quality of a country’s products
3. One way of studying the interrelationship between consumers’ attitudes toward local and
global products identified the following dimensions:
4. Another study identified personal cultural orientations and measured:
a. Independence
b. Interdependence
c. Power
5. Acculturation is the process by which marketers learn – via cross-cultural analysis – about
values, beliefs, and customs of the new society.
6. Acculturation is a dual learning process:
a) First marketers must learn everything that is relevant to the product and product
category.
b) Marketers must persuade the members of that society to modify or break with their own
traditions.
*****Use Key Term acculturation Here *****
7. It is often difficult for a company planning to do business in foreign countries to undertake
cross-cultural consumer research.
a. It is hard to conduct Western-style market research in the Islamic countries of the
9. The greater the similarity between nations, the more feasible it is to use relatively similar
marketing strategies in each nation.
*****Use Review and Discussion Question #13.3 Here; Use Hands-on Assignment #13.15
Here *****
Localization versus Standardization
1. A global marketing strategy consists of selling the same product using the same positioning
approach and communications globally.
3. Marketers can customize their offerings in other nations or market them the same way they
do at home (e.g. Oakley, Mattel, Home Depot).
*****Use Learning Objective #13.3 Here; Use Key Terms global marketing strategy, local
marketing strategy Here *****
4. Some companies have failed by assuming the needs of another culture would be the same as
the needs in their original market.
5. Promotional appeals must reflect the local culture’s values and priorities.
a. Countries differ in responses to humorous appeals and sexual appeals.
b. Countries differ in responses to individualistic and collectivistic ad appeals.
c. Comparative advertising has been used more in the United States than in other
countries, but comparative ad persuasiveness hinges on:
i. Self-construal (how individuals perceive, comprehend, and interpret the
world around them)
ii. Need for cognition
6. Sometimes, local laws force American marketers to alter their offerings.
Global Marketing Prospects
1. Firms are increasingly selling their products worldwide, for a variety of reasons.
a. There has been an ongoing buildup of “multinational fever.”
b. The general attractiveness of multinational markets, products, or services originating
3. The most important criterion for identifying global marketing opportunities is a country’s
consumer spending and its growth prospects.
*****Use Learning Objective #13.4 Here; Use Figures #13.3, #13.4 and #13.5A-E Here; Use
Review and Discussion Questions #13.1 and #13.7 Here*****
4. Brands continuously monitor their brand shares in domestic and foreign markets.
5. Local brands can sometimes overtake well-established U.S. offerings.
*****Use Table #13.1 Here; Use Review and Discussion Question #13.2 Here *****
Targeting Global Consumers
1. Global Millennials make up one-fourth of the planet’s population – 1.7 billion people.
a. Millennials have grown up amid growing media fragmentation, multitasking, and full
2. Global teens appear to have similar interests and desires, regardless of where they live.
a. Their “sameness” allows marketers to launch similar styles and/or use global
3. The global middle class is expected to grow.
a. By 2025, China will have the world’s largest middle class.
4. Some countries require different lifestyle segmentation.
a. In Japan, businesses use the Japan-VALS framework to monitor Japan’s consumer
5. The Japan-VALS segments stem from consumers’ primary motivations and degree of
6. Roper Starch Worldwide interviewed 35,000 consumers in 35 countries in order to identify
shared values, irrespective of national borders.
a. The research sought to uncover the bedrock values in peoples’ lives so as to
understand the motivations that drive both attitudes and behavior.
b. After completing the interviews in North and South America, Asia, and Europe, six
global value groups were uncovered:
i. Strivers—ambitious and materialistic.
ii. Devouts—responsible, respectful, and conservative.
iii. Altruists—unselfish in their concern for others, society, and the future.
iv. Intimates—focus on social relationships and family.
v. Fun Seekers—young in age and outlook, value adventure and good times.
vi. Creatives—seek knowledge and insight, and have a keen interest in books and
new media.
*****Use Learning Objective #13.5 Here; Use Figure #13.7 Here *****
REVIEW AND DISCUSSION QUESTIONS
13.1 With all the problems facing companies that go global, why are so many companies
choosing to expand internationally? What are the advantages of expanding beyond the
domestic market?
American companies are increasingly deriving the majority of their sales and profits from
overseas operations. The reasons for companies expanding internationally include: taking
advantage of emerging markets; escaping recessions in the United States; keeping up with or
13.2 In terms of consumer behavior, are the world’s countries and their cultures
becoming more similar or more different? Discuss.
This question provides a vehicle for an interesting class discussion. Marketers are arguing
both sides of the issue. Some see an increase in people’s distinctive tastes and standards
13.3 What is cross-cultural consumer analysis? How can a multinational company use
cross-cultural research to design each factor in its marketing mix? Illustrate your
answer with examples.
Cross-cultural consumer analysis is defined as the effort to determine to what extent the
consumers of two or more nations are similar or different. Such an analysis provides
13.4 What are the advantages and disadvantages of global promotional strategies?
The major advantage of a global promotional strategy is cost savings across the board in
designing and implementing a marketing mix. Thus, the manufacturer of Aramis, a well–
established brand of men’s fragrance sold in more than 120 countries, has been running a
13.5 What are the advantages and disadvantages of localized promotional strategies?
A local marketing strategy consists of customizing both the product and the communications
program for each unique market. One advantage is it can help companies meet the needs of
13.6 Give three examples of linguistic problems that companies have faced during
marketing in global markets and describe how these problems could have been
avoided.
1. The slogan “Chevy Runs Deep” did not translate well in some languages. The company
2. When General Motors introduced the Chevy Nova in South America, it was apparently
3. When Parker Pen marketed a ballpoint pen in Mexico, its ads were supposed to say “It
4. When Vicks first introduced its cough drops on the German market, it was chagrined to
5. In Taiwan, the translation of the Pepsi slogan “Come alive with the Pepsi Generation”
came out as “Pepsi will bring your ancestors back from the dead.”
The rapidly growing Chinese market represents an enormously difficult cultural and
linguistic challenge. The name Coca-Cola in China was first rendered as Ke–kou-ke–la.
13.7 Give three examples of product problems that companies have faced during
marketing in global markets and describe how these problems could have been
avoided.
Mattel shut its Barbie stores in China after learning that Chinese parents wanted their girls to
model themselves after studious children, not flirts. Consequently, Mattel decided to market
13.8 An American company is considering introducing yogurt in Japan. What cultural
aspects should the company study before deciding whether or not to do so?
The American company should consider legal barriers; linguistic barriers (including
acknowledging the Japanese language does not include the R sound, if that is relevant); the
local culture’s values, priorities, customs, and beliefs; existing attitudes toward yogurt; local
13.9 Coca-Cola is considering introducing very small bottles of its product in Brazil.
These would cost less than bottled water. Discuss whether or not the company should
do so.
Brazil is among the world’s heaviest buyers of bottled water because clean, fresh water is
13.10 As shown earlier, Hong Kong’s Chinese spend more on clothing than any other
nation. Research Hong Kong’s culture and geographic location and explain why they
do so.
Clothing is a major expenditure Hong Kong’s Chinese. It has big shopping centers and low
13.11 Looking at the charts presented earlier in this chapter, select a product that
members of a particular nation consume heavily. Research the country’s culture and
geographic location and describe why they are heavy consumers of the product
selected.
13.12 Looking at the charts presented earlier in this chapter, select a product that
members of a particular nation consume very lightly. Research the country’s culture
and geographic location and describe why they are light users of the product selected.
Student responses may vary. For example, Singapore consumes very little fruit. Most fruit is
imported, Singaporeans prefer fresh to processed fruit, and consumers are price sensitive
HANDS-ON ASSIGNMENTS
13.13 Have you ever traveled outside the United States? If you have, please identify some
differences in values, behavior, and consumption patterns that you noted between
people in a country you visited and Americans.
Instructor’s Discussion
Responses to this exercise will vary based on the sophistication of your students. Its purpose
is to lead the students to conduct small-scale, firsthand cross-cultural analysis. Help students
13.14 Interview a student from another culture about his or her use of (a) credit cards, (b)
fast-food restaurants, (c) shampoo, and (d) sneakers. Compare your consumption
behavior to that of the person you interviewed and discuss any similarities and
differences you discovered.
Instructor’s Discussion
Prepare students with a caution. Some international students will be offended by this kind of
13.15 Select one of the following countries: Mexico, Brazil, Germany, Italy, Israel,
Kuwait, Japan, or Australia. Assume that a significant number of people in the country
you chose would like to visit the United States and have the financial means to do so.
Now, imagine you are a consultant for your state’s tourism agency and you have been
charged with developing a promotional strategy to attract tourists from the country
you chose. Conduct a computerized literature search of the databases in your school’s
library and select and read several articles about the lifestyles, customs, and
consumption behavior of people in the country you chose. Prepare an analysis of the
articles and, on the basis of what you read, develop a promotional strategy designed to
persuade tourists from that country to visit your state.
Instructor’s Discussion
S.T.A.R. PROJECTS
Ethical Issues in Consumer Behavior
S.T.A.R. Project #1
Assume that you are the marketing manager for a food products company that has just developed
a new frozen “French fry” product. This new “French fry” product comes in small microwavable
pouches and is noted for its crispiness. The product has been test marketed in New England and
has shown favorable results. Your task is to attempt to sell the product idea to Canadian
consumers. This might be a difficult task because of Canadian resistance to some United States
products. The decision, however, has been made to go forward. Write a short position and
strategy paper that outlines how you would attempt to introduce the product into Canada.
Remember that English and French speaking Canadians might receive the product differently. Be
sure to identify in your paper any cultural or ethical issues that must be addressed by such an
introduction. Lastly, evaluate the likelihood of success of the product in the Canadian market.
Explain your conclusions.
Instructor’s Discussion
Small Group Projects
S.T.A.R. Project #2
Your group should research two to three companies that are reportedly doing an excellent job of
recognizing the various cross-cultural similarities and differences among the consumers of
different societies. Your group should focus on company marketing strategies. What marketing
strategies have these companies employed in order to meet the needs of the consumers in these
foreign cultures? How do these marketing strategies differ from the marketing strategies used for
the American culture? Select at least one company that has been unsuccessful at recognizing
cross-cultural similarities and differences. What did this company do wrong? What could this
company have done better in order to be successful in its attempt? (Note: Coca Cola could
qualify for both categories. Their early attempts at cross-cultural marketing were disastrous,
especially in Asia. Now they are one of the premier international marketers.)
Instructor’s Discussion
S.T.A.R. Project #3
How would you like to plan your own cruise to an exotic foreign port or island paradise?
Carnival Cruise Line (see www.carnival.com) is betting that just such a dream is one that you
would like to realize. Carnival, a leader in the foreign travel and cruise industry, has constructed
a Web site that allows the aspiring traveler to become his or her own travel agent. Your
assignment is to plan and tentatively book your own cruise. You will be able to do so without
commitment. As you plan your cruise make note of the consumer decisions that you must reach,
the ease or difficulty in doing this, and choices that are allowed. Once you have completed the
process, write a short report that summarizes your experience. Was the Web site an aid to your
booking objective? What were the Web site’s strong and weak points? How could it be
improved? What did you learn about booking travel online? As a consumer, would you use this
method if you were doing it for real?
Instructor’s Discussion
S.T.A.R. Project #4
At any given time the world is in turmoil somewhere. This turmoil often impacts global business
and commerce. If business and commerce are affected, consumers are also affected. Your
assignment is to use the Internet to research how global events impact global consumers. A good
place to start your Internet search is to review the latest stories and headlines found on either
CNN (see www.cnn.com) or U. S. News and World Report (see www.usnews.com). Other
sources can be used, however, these two news-oriented Web sites do an adequate job of
reporting global events and consumer issues that are impacted by world events. For example,
does war in the Middle-East impact gasoline prices or automobile sales? Does disagreement
among members of the United Nations (especially the powerful members) hurt trade and
consumer purchasing? Are American consumers welcomed around the world if anti-
Americanism is high? Write a summary report about your findings and conclusions.