GLOBAL MANAGEMENT CROSS- CULTURAL CONSUMER ANALYSIS ON INTERNATIONAL PERSPECTIVE

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CROSS- CULTURAL CONSUMER ANALYSIS

A World-wide demand is creating a climate in which cross-cultural consumer analysis becomes critically important. It has been defined as the effort to determine to what extent the consumers of two or more nations are similar or different. It can provide marketers with an understanding of the psychological, social and cultural characteristics of the foreign consumers they wish to target. By this they can design effective marketing 2/5/13 strategies for each of the specific national markets involved.

OBJECTIVES

To understand the importance of formulating an appropriate multinational or global marketing strategy. To understand how to study the differences among cultures while developing marketing strategies. To understand how consumer- related factors impact a firms decision to select a global, local, or mixed marketing strategy. To understand how lifestyle and psychographic segmentation can be used in developing global or local marketing strategies. 2/5/13

SCOPE

The greater the similarity between nations, the more feasible it is to employ relatively similar strategies in each nation. On the other hand, if 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. A major scope is to determine how consumers in two or more societies are similar and how they are different. Success in marketing a product or service in a number of foreign countries may be influenced by similarities 2/5/13 of the beliefs, values, and customs

CROSS- CULTURAL CONSUMER ANALYSISA DUAL PROCESS

In order to overcome a narrow and culturally blur view, marketers must become acculturated. They must learn everything that is relevant to the usage of their product and product category in the foreign countries in which they plan to operate. For marketers cross cultural acculturation is a dual process:

Reorientation: They must thoroughly orient themselves to the values, beliefs 2/5/13 and customs of the new society in order to appropriately position and market their

CROSS- CULTURAL CONSUMER ANALYSISA DUAL PROCESS

Dual acculturation process: In order to gain acceptance for a culturally new product in a foreign society, they must often persuade the members of that society to break with their own traditions. a) In depth picture: The marketer must obtain an in depth picture of the society's present attitudes and customs with regard to preventive medicine and related concepts. b) Promotional Strategies: The marketer must devise promotional strategies which will persuade the target market to buy the 2/5/13 product even if doing so requires a change

CROSS CULTURAL CONSUMER RESEARCH

To do a business without undertaking cross-cultural consumer research, is difficult for a company to do business in foreign countries. A great deal of market consumer information is available to any firm wishing to do business in the home country. However, the situation is vastly different in many other countries. E.g. Indian firms willing to do business in Russia could find only a limited amount of information regarding consumer and market statistics. Marketing research information on China is generally inadequate because surveys that ask personal questions 2/5/13 arouse suspicion among the Chinese people.

CROSS CULTURAL CONSUMER RESEARCH

The basic research techniques used to study the American consumer are useful in studying consumer in foreign lands, but additional burden exists in cross-cultural analysis. Language and word usage often differ from nation to nation. The scales of measurement also differ in international marketing. A five or seven point scale may be adequate in USA while in other countries we may need 10 or even 20 point scale. Like Germans are least likely to overstate their intentions, while Spanish and Italian 2/5/13 customers are likely to overstate them on a

CROSS CULTURAL CONSUMER RESEARCH

In order to avoid such research measurement problems, consumer researchers must familiarize themselves with the availability of research services in the countries they are evaluating as potential markets. They must learn how to design marketing research studies that will yield useful data. They must remember that cultural differences that may make standard research methodologies inappropriate.
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BASIC RESEARCH ISSUES

Differences in following issues in various countries present the basic research issues in cross cultural analysis: a) Language and meaning: For example, The Chevrolet Nova did not sell well in Latin America because in Spanish the word Nova means It doesnt run. Pepsis Come alive with Pepsi campaign, in German literally means Come alive out of the grave. b) Market segmentation opportunities: For example, the income, social class, age and gender of 2/5/13 customers differ target dramatically in two different countries.

BASIC RESEARCH ISSUES

c)

d)

e)

Consumption patterns: For example, any two countries may differ substantially in the level of consumption or use of products or services such as cigarettes. Perceived benefits of products and services: For example, two nations may use or consume the same product such as yogurt in very different ways. Criteria for evaluating products and services: For example, the benefits sought from a service like bank cards may differ from country to country.
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BASIC RESEARCH ISSUES

f)

g)

h)

Economic and social conditions and family structure: the style of family decision making may vary significantly from country to country. Market structure and conditions: For example, the types and quality of retail outlets may vary greatly among countries. Market research possibilities: For example, the availability of professional consumer researchers may vary considerably from country to country.
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