Presen ented ed By Andrew w J. Marsigl iglia, a, PhD, CCP - - PowerPoint PPT Presentation

Presen ented ed By Andrew w J. Marsigl iglia, a, PhD, CCP

Consu nsumer mer beha havior vior is largely ely depend penden ent t on cul ultural ural fa factor

• rs

s Cul ultural ural refere erenc nce e groups ups affect ect pur urchas ase e beha havior vior

Househo ehold ld influe uenc nces es and tenden ndenci cies es Peer Gro roups ups influen uence ce

Mark rketi ting ng comm mmuni nica cati tion

• n mus

ust t addre ress ss cul ultura ural l and referenc erence group fa factor

• rs

Domes estic tic perspec pectiv tive Global bal perspecti ective. e.

Mark rket t segme mentat ntation ion and d microm

• marketin

ting g to develop elop cus ustome

• mer-ce

centri ntric c mark rketi ting ng mess ssages ages Provide ide preci cise sely y defined ined mark rketi ting ng comm mmun unica icati tion

• n

Pro rovid vide appropri ropriat ate e informati

• rmation
• n to consumer

ers St Stimul ulat ate e consumer ers to purchas ase

Cultural Effects s on Consum sumer Behavior

• r

2 2 2 2 2

2

Chara ract cteris eristics tics of Cul ultural ural Values ues

Concep ept t of individ ividual ality ity, indep epend enden ence, ce, achie chievem ement, ent, and self-ful fulfillment illment Dimen ensi sions

• ns of Culture

ure (Hofsted ede, e, 1984) Power-Dista Distance nce Un Uncer erta tain inty ty Avoidan dance ce Individ ividua ualism sm Mascul culini nity ty

Strategic ic Ap Applicat ation ion of Cross

• ss Cul

ultura ural l & Global bal Influen fluences ces

Culture ure has a significa icant t effect ect on consumer umer purchas asing ng beha havior vior

Mark rketi eting ng messa sage ge tailored to a country’s cultural dime mens nsions

• ns

A person’s cultural values are modified when they live in a different country

Micro-se segmenta entatio tion of consumer umers accor

• rding

ding to their eir cultura tural l va values es

Moderate e mark rket eting ng messa sage to include lude speci cifi fic cultural tural va values Identi ntify y cultura tural va values es of host st countr ntry y & countr try y of origin gin

3 3 3 3 3

3 Cultural Effects s on Consum sumer Behavior

• r

Influenc fluence of Referen erence ce Group ups s on Consu nsumer mers

Cultural ural reference ference gro roup ups are a micro-le level el perspec pectiv tive e of specif ific ic cluster ers of individ ividual al people ple within thin a culture. ture. Normative reference groups: source of a consumer’s core cultural values Comparative reference groups: source of a consumer’s self-ap apprai praisal sal Reference erence gro roups ups form the lens throu

• ugh which consumer

ers s view w adver ertis tisin ing messages es and pro roducts ducts

Strategic ic Ap Applicat ation ion of Referen erence ce Group up Influ luenc ences

Comparati arative e reference ference gro roup ups influen uence ce purchas ase e decision cisions , Figure re 1 Luxury products cts – badg dge e value ue items Necess essit ity y products cts that t may be used d publica ically Primar ary referen erence ce gro roups ps Peers s Groups ps Familia ilial Groups

4 4 4 4 4

4 Cultural Effects s on Consum sumer Behavior

• r

Cultural Effects s on Consum sumer Behavior

• r

5 5 5 5 5

5

Type e of Referen rence Product uct Group up Public lic Privat ate Lu Luxury Pe Peer ▪ Strong g product uct influe luence nce ▪ Strong g Product uct Influe luence nce ▪ Strong g brand nd influe luence nce ▪ Weak brand nd influe uence nce Familia ilial ▪ Weak Influe luence nce ▪ Strong g nuclear lear fa family ly influe luence nce ▪ Very strong g extended ded fa family ly ▪ influe uence nce Neces essit ity Pe Peer ▪ Weak produc duct influe luence nce ▪ Weak produc duct influe luence nce ▪ Strong g brand nd influe luence nce ▪ Weak brand nd influe uence nce Familia ilial ▪ Weak Influe luence nce ▪ Strong g nuclear lear fa family ly influe luence nce ▪ Very strong g extended ded fa family ly influe uence nce Source: (Childers, 1992, p. 201)

Nature ure of Referen erence ce Groups s and d Web eb Comm mmun unit ities ies

Phys ysica ical society ty of people le that at use the Intern ernet to acce cess ss webs bsit ites es designed ned to pro rovid vide e informati rmation

• n regar

ardin ding g specif ific c topics cs and to interac eract t with th people e of similar ar interes erests ts. Simil ilar r to reference rence gro roups ps in that at they y espous use e shared red va values ues, belief iefs, and interes erests ts. . Divid ided ed into four r basic ic categ egori

• ries

es based ed on thei eir r main functi ctiona

• nality

ity Divided ided into four r basic ic categ egories ries based ed on their ir main functi ction

• nal

ality ity (Assa

ssael, el, 2004)

Commu mmuni niti ties es of transactio saction Commu mmuni niti ties es of interest est Commu mmuni niti ties es of fa fanta tasy sy Commu mmuni niti ties es of relation ionsh ship ip

6 6 6 6 6

6 Cultural Effects s on Consum sumer Behavior

• r

Pur urchas asing ng Pat Patterns rns by Househ usehold

• ld Life

e Cycles les

Life fe Cyc ycle: le: a series es of cycles ycles fro rom a person

• n livin

ing on thei eir r own as a single e consumer umer throu

• ugh

h marri riage age to living ng as an older er single e person

• n.

Consistent ent purchas asin ing patterns erns relati ative e to stage e of the e life fe cycl ycle Househo ehold ld compo positi ition

• n va

varie ies s by y cultur ture Exten ended ed fa fami mily y househ sehol

• ld

d – common mon in collecti ectivisti istic c cultu tures es Nuclea ear fa fami mily household eholds s – common mon in individu idual alisti istic c cultu tures es Joint t deci cisio ion n making is prevalent alent in multi ti-per person

• n household

seholds The e range e of househ ehol

• ld

d life fe cycle ycle stages es and thei eir r effect ect on consumptio tion patterns erns are shown n in Figure ure 2

7 7 7 7 7

7 Cultural Effects s on Consum sumer Behavior

• r

Cultural Effects on Consumer Behavior 8

Life Cycle Stage

Young Young Middle-aged Middle-aged Marri ried Marri ried Marri ried Marri ried Middle-aged Middle-aged Older Young Young Child <6 Child 6+ Child 6+ Child <6 Single Marri ried Marri ried Older Product ct Cate tegor

• ry

Single Marri ried Full Nest I Full Nest II Full Nest III Delaye yed Full Nest Non Non-Tr Traditi tion

• nal

Empty y Nest t I Empty y Nest t II Single Discre cretio tionary ry Income

• Increases

Declines Declines Increases Increases Variable Increases Declines Declines Home Related ted Categ tegor

• ry:

y: Home improvement Variable Increase Decrease Decrease Sharp Incr. Decrease Increase Increase Decrease Decrease Power & lawn tools

• Increase

Decrease Decrease Increase Sharp Incr. Increase Sharp Incr. Sharp Incr. Decrease Major appliances

• Increase

Increase Decrease

• Increase
• Small appliances
• Increase

Decrease Decrease

• Decrease

Increase

• Decrease

Furniture Increase Increase Decrease Decrease Increase Sharp Incr. Increase Decrease Decrease Decrease Servi vice ces s Categ tegor

• ry:

y: Entertainment

• Increase

Decrease Decrease Sharp Incr. Increase

• Increase

Decrease

• Eating out

Increase Increase Decrease Decrease Sharp Incr. Decrease

• Increase
• Insurance
• Increase

Increase Increase Increase decrease Increase Increase Increase Decrease Travel Increase Increase Decrease Decrease Sharp Incr. Decrease Increase Increase Increase Decrease Child care

• Increase

Increase Decrease Increase

• Misc. services
• Decrease

Decrease Sharp Incr. Sharp Incr.

• Other

r Categ tegory ry: Automobiles Increase Increase Decrease Increase Increase Decrease

• Decrease

Decrease Decrease Men's apparel Increase Increase Decrease Decrease Sharp Incr. Decrease Increase Increase Decrease Decrease Women's apparel Increase Increase Decrease Decrease Sharp Incr. Decrease Increase Increase Decrease Decrease Boy's apparel

• Increase

Increase Increase Sharp Incr.

• Girl's apparel
• Increase

Increase Increase Sharp Incr.

• Infant's apparel
• Increase

Increase

• Sharp Incr.
• Stereo equipment

Increase Increase Decrease Decrease Increase Decrease Decrease Decrease Decrease Decrease Alcohol Increase Decrease Decrease Decrease Increase Decrease Increase Increase Decrease Decrease Medical Increase

• Increase

Increase

• Increase

Increase

• Increase

Increase

Sources: Wells (1966); Childers (1992)

Par Parent nt vs. Peer r Group up Influen fluence ce Am Amon

• ng

g Adoles lesce cents nts

Paren ent t influen uence ce and peer gro roup p influe uence nce on adoles lescent cent purchas ase e decision cisions s is affect ected ed by Type of

• f purcha

hase se - pri rivat vate e verses ses public ic Type of house sehol hold - nuclea ear or extended nded Purchase se effect ect by cultural ural gro roup up

9 9 9 9 9

9 Cultural Effects s on Consum sumer Behavior

• r

Degree ee of Purchas hase e Influen ence by Grou

• up

Cultural l Grou

• up

Public ic Use Produc

• duct

Priv ivat ate e Use e Product

• duct

Peer er Grou

• up

High Low Nu Nucle lear ar Family mily Low High Exten ended ded Family mily High High

Soci cieta tal Imp mplic licat ations ions of Househ usehold

• ld Infl

fluences uences

Ad Adver erti tisi sing ng to ch child ldren ren has been en subject ect to scrutin utiny y for years due to the e possibilit ibility y of harmful rmful societa tal effects ects on ch chil ild d viewer ers. Adv dver ertis tisin ing to ch chil ildr dren en invol

• lves

es four major r issues: Is adver erti tising sing to childr dren en inheren ently tly unfai fair? Does s adver erti tisi sing ng to childr dren en cause se them m to make e poor consume sumer choices? ices? Is parent nt-child child confl flict ict increased ased becau cause se of adver erti tisin sing g to childr dren en? Does advertising have a negative effect on children’s socialization?

10 10 10 10 10 10 10 10 10 10

10 10 Cultural Effects s on Consum sumer Behavior

• r

Nature ure of Word-of

• f-Mouth

Mouth (WO WOM) ) Comm mmun unica icati tion

• n

WOM is a verb rbal al form of interper erpersona

• nal commun

unicati cation

• n

Convey y informa rmati tion

• n to and within

hin cultura tural referenc rence groups ups Influe luence nces s or inf nforms rms members s of the groups ups

Occurs s within a person’s reference groups as well as between reference groups

Strategic ic Ap Applicat ation ion of WOM WOM Communica mmunicati tion

• n

Ad Adjus just t mark rketing ting message e relati ative e to cultural ural dimens nsio ions ns, Figure re 3 Being ng awa ware re of the cultu tural ral dimen ensi sions

• ns that

at are most favorab

• rable

e for WOM mark rketi ting ng may assist mark rketer ers s in applying ying an appropr

• pria

iate e strat ategy for stimul ulating ating product roduct awa warenes reness.

Strategic ic Ap Applicat ation ion of Diffusion usion Theor eory

Spread ead mark rketing ting inform rmati ation

• n acros

ross a large e number ber of reference ference gro roup ups

Encourage urage product duct adopti tion

• n

Encoura urage ge conti tinuo nuous us use of speci cific products ducts.

Rate e of diffus fusion

• n affec

ected ed by y cultura tural l influences ences

11 11 11 11 11 11 11 11 11 11

11 11 Cultural Effects s on Consum sumer Behavior

• r

Cultural Effects on Consumer Behavior 12 Masculinit ulinity Indiv ivid idua ualis lism Power wer Distance nce Uncert certainty inty Avoid idance nce High Low High Low High Low High Low OUT Group up More Likely Less Likely Little Impact Little Impact Less Likely More Likely Little Impact Little Impact IN Group up More Likely More Likely Little Impact Little Impact More Likely More Likely Little Impact Little Impact Repres esentativ entative e Count ntries ies Japan France USA Venezuela Philippines Austria Greece Singapore Venezuela Spain Australia Singapore Mexico Israel Portugal Denmark Mexico Portugal Great Britain Mexico India Sweden Japan Sweden USA Sweden Sweden Greece Singapore USA Mexico USA

Adapted from Lam, 2005

Mark rket t Segment gmentati tion

• n and Micromar
• marketi

ting ng Divide de mark rkets ts int nto

• homogen

mogeneo eous us groups roups that t have e

Similar r cultur tural and demogr

• graphi

hic c back ckgr groun und Similar product ct consum sumption ption needs s

Develop elop customer

• mer-cen

centric tric adver ertisin tising g that t focus cus on n

Benef efit its s segmen menta tati tion

• n

Behavior

• r segme

ment ntation tion Segmentati mentation

• n by response
• nse elasticit

sticity

Goal al of market t segmentat mentation ion and nd microma

• marketi

ting ng

Provide e precise isely y defined ined marketi ting ng mess ssages ges Satisf sfy consumer’s need for personal information regarding products and services ces

13 13 13 13 13 13 13 13 13 13

13 13 Cultural Effects s on Consum sumer Behavior

• r

Mark rketi ting ng Comm mmuni nicat cation ion Process cesses

Pro roces cess and method ethods used by mark rketer ers to convey y the e message age of their eir product roduct and benef efits its to consumer umers Five e fundam damenta ental components ponents of the e mark rketin ting commun unicati cation

• n pro

roces cess (Assa

sael, el, 2004) :

The sour urce of the messa sage Encoding ding the messa sage ge Transmi nsmiss ssion n of the messag sage Decoding the messa sage e Feedback ck to mark rket eter ers s

Soci cieta tal Imp mplic licat ations ions of Mark rketing ing Communi

• mmunicat

cation ion

Decep eptiv tive e Ad Adver erti tisi sing ng Irresponsib sponsible e Ad Adver erti tisin ing Excess ssiv ive e adver ertis tisin ing Legal al remedies edies

14 14 14 14 14 14 14 14 14 14

14 14 Cultural Effects s on Consum sumer Behavior

• r

Cul ultural ural Values ues have e a Direct ct Effect ect on Cons nsume mer r Beha havior vior Cul ultural ural refere erenc nce e groups ups effect ect social ial and consu sume mer r beha havior vior Consu nsumer mer decis ision ion making king is s affec ected d by house useho hold ld type e

Purchase se patterns erns by lifecy fecycle e stage Paren ent t vs. peer r gro roup up influen uences ces

Word-of

• f-Mou

Mouth th Comm mmuni nicat cation ion is an effica icaciou cious s mark rketi ting ng tool

Cultura ural dimensio ension n effects ects Negati ative e & positiv tive e messages es Diffu fusi sion

• n effect

ects

Mark rketi ting ng segment gmentati tion

• n and micromar
• marketi

ting ng

Customer

• mer-centri

centric c rather ther than an produ roduct ct-centri centric Person

• nal

alized ized mark rketi ting ng commun unica icatio tion

Cult ltural l Effects s on Consu sumer Behavio vior 15 15

16 16 16 16 16 16 16 16 16

16 16 Cultural Effects s on Consum sumer Behavior

• r

Assael el, , H. (2004) 4). . Consume mer r Behavior:

• r: A strategi

gic c appro roach

• ch. Boston,
• n, MA: Hought

hton n Miffl flin n Comp mpany. Childe ders, , T. R. (1992, 2, September) mber). . The Influe uence nce of Familial and Peer-based sed Refere erence nce Groups ups on Consum sumer er Decisio sions ns. . Journal nal of Consumer er Research, , 19, 198-211. Hofst stede ede, , G. (1984) 4). . Cultu ture re's 's Conseque uenc nces.

• s. Newbury

y Par Park, CA: SAGE Publications, ations, Inc. Lam, D. M

• M. (2005).

5). Cultur tural Influen uence on Word-of

• f-Mo

Mout uth h Communi nica cati tion.

• n. AMA Wint

nter r Educators' ' Conference ference Pro rocee eeding dings, (pp. 169-179 79). ). Wells, , W. G. (1966, 6, November). r). Life Cycle Concept pt in Mark rketi eting ng Resear arch.

• h. Journal

al of Mark rketi eting ng Research, 3(4), 335-363 363.