Cross Cultural Consumer Behaviour

CROSS-CULTURAL CONSUMER BEHAVIOUR

To succeed, international marketers must understand the nature and extent of differences between the consumers of different societies.- ‘cross-cultural' differences.

This is in order to develop effective targeted marketing strategies to use in each foreign market of interest.

The issue is not ‘whether' to market a brand in other countries but ‘how' to do it.

Question : Same product with same ‘global' advertising campaign or ‘tailored' products and ads for each country.

Glocal : Both global and local - A brand of standardized and local elements in order to secure the benefits of each strategy.

Why firms are selling their products overseas ?

(i) Overseas markets represent the single most important opportunity for their future growth. (ii) Consumers all over the world are eager to try ‘foreign' products that are popular in different places.

World's most valuable brand. (i) Coca Cola – 68.5 billions dollars (ii) Microsoft – 65.1 billions dollars

(i) Through consumers' own initiatives – their travel, their living, working in foreign countries, immigration to a different country (ii) Contact with foreign movies, theatre, art, artifacts (iii) Exposure to unfamiliar and different products (iv) By marketers seeking to expand their markets by bringing new products, services, practices, ideas and experiences to potential customers residing in a different country and possessing a different cultural view.

Country-of-origin effects : (i) Consumers use their knowledge where products are made in the evaluation of their purchase options. Such country-of-origin effect seems to come about because consumers are often aware that a particular firm or brand name is associated with a particular country. E.g BMW and Mercedes are thought in the context of their being German, Ferrari a brand that is Italian first.

France is associated with wine, fashion clothing, perfume, Italy with pasta, designer clothing, Germany with tools, cars, heavy machinery

- Consumers tend to have an attitude or a preference when it comes to a particular product being made in a particular country

- A consumer in one country might positively value a particular product made in another country, e.g Rolex watch made in Switzerland. Another consumer might be negatively influenced when the consumer learns that a DVD he wanted is made in Italy.

- When motivation is high and when a specific model of a product is being evaluated the consumers are less likely to base judgments on country –of-origin,

- Some consumers refrain from purchasing products from