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Consumer Behavior
Dr Ehab M. ABOU AISHAssociate Prof. of Marketing
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Agenda
• Know: - Culture and its components• Hoefstede model for culture analysis- Cultural values • Understand- How to make culture work for marketers
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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.
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Culture Influence on CB• Cultural Definition- Culture is the complex whole that includes
knowledge, belief, art, law, moral, customs and any other capabilities and habits acquired by humans as members of a society
- Software of the mind, a way of thinking and organizing life
- Integrated system of learned behavior patterns that are distinguishing characteristics of the members of any given society
- It consists of 3 main layers:1. Artifacts and products: language, food,
buildings, fashion, arts...2. Norms and values: laws, social controls and
ideals3. Basic beliefs: the society’s unquestioned
assumptions
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Elements of Culture
• Material culture (Economics, Technology)• Social institutions (Family, Political
structure, Media)• Values and Attitudes (Beliefs)• Manners and Customs (Norms, Laws)• Aesthetics (Graphics, Folklore, Music)• Language (verbal and Non-Verbal)• Religion
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Cultural Analysis• Hoefstede model
• Individualism / Collective Index ( IDV) • Preferences for behaviors that promotes
ones self interests vs. group interest• The Power Distance Index (PDI)
• Power inequality between superiors and subordinates
• Uncertainty Avoidance Index (UAI) • Tolerance of uncertainty and ambiguity
• Masculinity / Femininity Index (MFI)• Preference of achievement heroism and
material success
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Cultural Analysis
Country or Region IDV Score PDI Score MFI Score UAI Score
Arab Countries 38 80 53 68
USA 91 40 62 46
Japan 46 54 95 92
France 71 68 43 86
Germany 67 35 66 65
Great Britain 89 35 66 35
South Korea 18 60 39 85
Colombia 13 67 64 80
India 48 77 56 40
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Other-Oriented Values
Environment-Oriented Values
Self-Oriented Values
Variations in Cultural Values
The numerous values that differ across cultures and affect consumption include:
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Variations in Cultural Values
Reflect a society’s view of the appropriate relationships between individuals and groups within that society.
Other-Oriented Values
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Variations in Cultural Values
Prescribe a society’s relationship to its economic and technical as well as its physical environment.
Environment-Oriented Values
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Variations in Cultural Values
Reflect the objectives and approaches to life that the individual members of society find desirable.
Self-Oriented Values
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Variations in Cultural Values
Other-Oriented Values
Individual/Collective
Youth/Age
Extended/Limited Family
Masculine/Feminine
Competitive/Cooperative
Diversity/Uniformity
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Variations in Cultural Values
Individual/Collective
Are individual activity and initiative valued more highly than collective activity and conformity?
Other-Oriented Values
Asian cultures more collective
U.S. culture more individualistic
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Variations in Cultural Values
Youth/Age
Other-Oriented Values
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?
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Variations in Cultural Values
Extended/Limited FamilyOther-Oriented Values
To what extent does one have a life-long obligation to numerous family members?
Extended family critical in South/ Central America
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Variations in Cultural Values
Masculine/Feminine
To what extend does social power automatically go to males?
Other-Oriented Values
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Variations in Cultural Values
Competitive/Cooperative
Other-Oriented Values
Does one obtain success by excelling over others or by cooperating with them?
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Variations in Cultural Values
Diversity/Uniformity
Does the culture embrace variation in religious belief, ethnic background, political views, and other important behaviors and attitudes?
Other-Oriented Values
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Variations in Cultural Values
Environment-Oriented Values
Cleanliness
Performance/Status
Tradition/Change
Risk taking/Security
Problem solving/Fatalistic
Nature
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Variations in Cultural Values
Cleanliness
Environment-Oriented Values
To what extent is cleanliness pursued beyond the minimum needed for health?
U.S. very high on personal hygiene – some think to an extreme!
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Variations in Cultural Values
Performance/StatusEnvironment-Oriented Values
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.
Is the culture’s reward system based on performance or on inherited factors such as family or class?
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Variations in Cultural Values
Tradition/Change
Is tradition valued simply for the sake of tradition? Is change or “progress” an acceptable reason for altering established patterns?
Environment-Oriented Values
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Variations in Cultural 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.
Environment-Oriented Values
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Variations in Cultural 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.
Environment-Oriented Values
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Variations in Cultural Values
Nature
Is nature regarded as something to be admired or overcome?
Environment-Oriented Values
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Variations in Cultural Values
Self-Oriented Values
Active/Passive
Sensual gratification/Abstinence
Material/Nonmaterial
Hard work/Leisure
Postponed gratification/Immediate gratification
Religious/Secular
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Variations in Cultural Values
Active/Passive
Is a physically active approach to life valued more highly than a less active orientation?
Self-Oriented Values
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Variations in Cultural 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.
Self-Oriented Values
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Variations in Cultural Values
Material/Nonmaterial
How much importance is attached to the acquisition of material wealth?
Self-Oriented Values
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.
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Variations in Cultural Values
Hard work/Leisure
Is a person who works harder than economically necessary admired more than one who does not?
Self-Oriented Values
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Variations in Cultural Values
Postponed gratification/Immediate gratification
Are people encouraged to “save for a rainy day” or to “live for today”?
Self-Oriented Values
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Variations in Cultural Values
Religious/Secular
To what extent are behaviors and attitudes based on the rules specified by a religious doctrine?
Self-Oriented Values
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Cross-Cultural Marketing Strategy
Considerations in Approaching a Foreign Market1. Homogeneous versus Heterogeneous with Respect to
Culture?
2. What Needs Can the Product Fill in this Culture?
3. Can Enough People Afford the Product?
4. What Values are Relevant to the Purchase and Use of the Product?
5. What are the Distribution, Political and Legal Structures for the Product?
6. In What Ways Can We Communicate About the Product?
7. What are the Ethical Implications of Marketing This Product in This Country?
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Making Culture Work for Marketing Success
• Embrace local culture• Build relationships• Employ locals to gain cultural knowledge• Help employees understand you• Adapt products and process to local markets• Coordinate by region
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Applications in Consumer Behavior
Adaptation is Often Required in Cross-Cultural Marketing. Here, McDonald’s uses a Popular Chinese Sports Celebrity.
GOH CHAI HIN/AFP/Getty Images