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Consumer Behavior

Dr Ehab M. ABOU AISH
Associate Prof. of Marketing
Agenda
•   Know:
-   Culture and its components
•   Hoefstede model for culture analysis
-   Cultural values
•   Understand
-   How to make culture work for marketers




Dr ABOU AISH
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.


Dr ABOU AISH
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 ideals
3. Basic beliefs: the society’s unquestioned assumptions

Dr ABOU AISH
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




Dr ABOU AISH
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


Dr ABOU AISH
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

        Dr ABOU AISH
Variations in Cultural Values
The numerous values that differ across
cultures and affect consumption include:

Other-Oriented Values

Environment-Oriented Values

Self-Oriented Values




   Dr ABOU AISH
Variations in Cultural Values

                  Other-Oriented Values

Reflect a society’s view
of the appropriate
relationships between
individuals and groups
within that society.




   Dr ABOU AISH
Variations in Cultural Values

                 Environment-Oriented Values

Prescribe a society’s
relationship to its
economic and technical
as well as its physical
environment.




  Dr ABOU AISH
Variations in Cultural Values

                Self-Oriented Values
Reflect the objectives and approaches to life that
the individual members of society find desirable.




 Dr ABOU AISH
Variations in Cultural Values
                   Other-Oriented Values

Individual/Collective
Youth/Age
Extended/Limited Family
Masculine/Feminine
Competitive/Cooperative
Diversity/Uniformity

    Dr ABOU AISH
Variations in Cultural Values

                  Other-Oriented Values
                     Individual/Collective
Are individual activity and initiative valued more highly
than collective activity and conformity?

Asian cultures more
collective
U.S. culture more
individualistic

   Dr ABOU AISH
Variations in Cultural Values
                Other-Oriented Values
                      Youth/Age

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?
 Dr ABOU AISH
Variations in Cultural Values
                 Other-Oriented Values
                  Extended/Limited Family

To what extent does
one have a life-long
obligation to
numerous family
members?
Extended family
critical in South/
Central America
  Dr ABOU AISH
Variations in Cultural Values

                 Other-Oriented Values
                    Masculine/Feminine
To what extend does social power automatically go to
males?




  Dr ABOU AISH
Variations in Cultural Values
               Other-Oriented Values
               Competitive/Cooperative


Does one obtain
success by excelling
over others or by
cooperating with
them?



Dr ABOU AISH
Variations in Cultural Values

                 Other-Oriented Values
                    Diversity/Uniformity
Does the culture embrace variation in religious belief,
ethnic background, political views, and other important
behaviors and attitudes?




  Dr ABOU AISH
Variations in Cultural Values
                  Environment-Oriented Values

Cleanliness
Performance/Status
Tradition/Change
Risk taking/Security
Problem solving/Fatalistic
Nature


   Dr ABOU AISH
Variations in Cultural Values

                 Environment-Oriented Values
                         Cleanliness

To what extent is
cleanliness pursued
beyond the minimum
needed for health?
U.S. very high on personal
hygiene – some think to an
extreme!
  Dr ABOU AISH
Variations in Cultural Values
                    Environment-Oriented Values
                         Performance/Status
Is the culture’s reward system based on performance or on
inherited factors such as family or class?

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.

     Dr ABOU AISH
Variations in Cultural Values
                 Environment-Oriented Values

                        Tradition/Change
Is tradition valued simply for the sake of tradition? Is
change or “progress” an acceptable reason for altering
established patterns?




  Dr ABOU AISH
Variations in Cultural Values

                  Environment-Oriented 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.



   Dr ABOU AISH
Variations in Cultural Values

                 Environment-Oriented 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.


  Dr ABOU AISH
Variations in Cultural Values

                 Environment-Oriented Values
                            Nature
Is nature regarded as something to be admired or
overcome?




  Dr ABOU AISH
Variations in Cultural Values
                  Self-Oriented Values

Active/Passive
Sensual gratification/Abstinence
Material/Nonmaterial
Hard work/Leisure
Postponed gratification/Immediate gratification
Religious/Secular

   Dr ABOU AISH
Variations in Cultural Values

                 Self-Oriented Values
                     Active/Passive
Is a physically active approach to life valued more
highly than a less active orientation?




  Dr ABOU AISH
Variations in Cultural Values
                       Self-Oriented 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.




    Dr ABOU AISH
Variations in Cultural Values
                  Self-Oriented Values
                    Material/Nonmaterial
How much importance is attached to the acquisition of
material wealth?
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.


   Dr ABOU AISH
Variations in Cultural Values

                 Self-Oriented Values
                   Hard work/Leisure
Is a person who works harder than economically
necessary admired more than one who does not?




  Dr ABOU AISH
Variations in Cultural Values

                  Self-Oriented Values
   Postponed gratification/Immediate gratification
Are people encouraged to “save for a rainy day” or to
“live for today”?




   Dr ABOU AISH
Variations in Cultural Values

                  Self-Oriented Values
                     Religious/Secular
To what extent are behaviors and attitudes based on
the rules specified by a religious doctrine?




   Dr ABOU AISH
Cross-Cultural Marketing Strategy
   Considerations in Approaching a Foreign Market
1. 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?
    Dr ABOU AISH
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




Dr ABOU AISH
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

Dr ABOU AISH

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CB 7

  • 1. Consumer Behavior Dr Ehab M. ABOU AISH Associate Prof. of Marketing
  • 2. Agenda • Know: - Culture and its components • Hoefstede model for culture analysis - Cultural values • Understand - How to make culture work for marketers Dr ABOU AISH
  • 3. 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. Dr ABOU AISH
  • 4. 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 ideals 3. Basic beliefs: the society’s unquestioned assumptions Dr ABOU AISH
  • 5. 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 Dr ABOU AISH
  • 6. 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 Dr ABOU AISH
  • 7. 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 Dr ABOU AISH
  • 8. Variations in Cultural Values The numerous values that differ across cultures and affect consumption include: Other-Oriented Values Environment-Oriented Values Self-Oriented Values Dr ABOU AISH
  • 9. Variations in Cultural Values Other-Oriented Values Reflect a society’s view of the appropriate relationships between individuals and groups within that society. Dr ABOU AISH
  • 10. Variations in Cultural Values Environment-Oriented Values Prescribe a society’s relationship to its economic and technical as well as its physical environment. Dr ABOU AISH
  • 11. Variations in Cultural Values Self-Oriented Values Reflect the objectives and approaches to life that the individual members of society find desirable. Dr ABOU AISH
  • 12. Variations in Cultural Values Other-Oriented Values Individual/Collective Youth/Age Extended/Limited Family Masculine/Feminine Competitive/Cooperative Diversity/Uniformity Dr ABOU AISH
  • 13. Variations in Cultural Values Other-Oriented Values Individual/Collective Are individual activity and initiative valued more highly than collective activity and conformity? Asian cultures more collective U.S. culture more individualistic Dr ABOU AISH
  • 14. Variations in Cultural Values Other-Oriented Values Youth/Age 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? Dr ABOU AISH
  • 15. Variations in Cultural Values Other-Oriented Values Extended/Limited Family To what extent does one have a life-long obligation to numerous family members? Extended family critical in South/ Central America Dr ABOU AISH
  • 16. Variations in Cultural Values Other-Oriented Values Masculine/Feminine To what extend does social power automatically go to males? Dr ABOU AISH
  • 17. Variations in Cultural Values Other-Oriented Values Competitive/Cooperative Does one obtain success by excelling over others or by cooperating with them? Dr ABOU AISH
  • 18. Variations in Cultural Values Other-Oriented Values Diversity/Uniformity Does the culture embrace variation in religious belief, ethnic background, political views, and other important behaviors and attitudes? Dr ABOU AISH
  • 19. Variations in Cultural Values Environment-Oriented Values Cleanliness Performance/Status Tradition/Change Risk taking/Security Problem solving/Fatalistic Nature Dr ABOU AISH
  • 20. Variations in Cultural Values Environment-Oriented Values Cleanliness To what extent is cleanliness pursued beyond the minimum needed for health? U.S. very high on personal hygiene – some think to an extreme! Dr ABOU AISH
  • 21. Variations in Cultural Values Environment-Oriented Values Performance/Status Is the culture’s reward system based on performance or on inherited factors such as family or class? 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. Dr ABOU AISH
  • 22. Variations in Cultural Values Environment-Oriented Values Tradition/Change Is tradition valued simply for the sake of tradition? Is change or “progress” an acceptable reason for altering established patterns? Dr ABOU AISH
  • 23. Variations in Cultural Values Environment-Oriented 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. Dr ABOU AISH
  • 24. Variations in Cultural Values Environment-Oriented 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. Dr ABOU AISH
  • 25. Variations in Cultural Values Environment-Oriented Values Nature Is nature regarded as something to be admired or overcome? Dr ABOU AISH
  • 26. Variations in Cultural Values Self-Oriented Values Active/Passive Sensual gratification/Abstinence Material/Nonmaterial Hard work/Leisure Postponed gratification/Immediate gratification Religious/Secular Dr ABOU AISH
  • 27. Variations in Cultural Values Self-Oriented Values Active/Passive Is a physically active approach to life valued more highly than a less active orientation? Dr ABOU AISH
  • 28. Variations in Cultural Values Self-Oriented 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. Dr ABOU AISH
  • 29. Variations in Cultural Values Self-Oriented Values Material/Nonmaterial How much importance is attached to the acquisition of material wealth? 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. Dr ABOU AISH
  • 30. Variations in Cultural Values Self-Oriented Values Hard work/Leisure Is a person who works harder than economically necessary admired more than one who does not? Dr ABOU AISH
  • 31. Variations in Cultural Values Self-Oriented Values Postponed gratification/Immediate gratification Are people encouraged to “save for a rainy day” or to “live for today”? Dr ABOU AISH
  • 32. Variations in Cultural Values Self-Oriented Values Religious/Secular To what extent are behaviors and attitudes based on the rules specified by a religious doctrine? Dr ABOU AISH
  • 33. Cross-Cultural Marketing Strategy Considerations in Approaching a Foreign Market 1. 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? Dr ABOU AISH
  • 34. 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 Dr ABOU AISH
  • 35. 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 Dr ABOU AISH