“Cultural Influences on selected Aspects of Consumer Behaviour”

1. “Cultural Influences on selected Aspects of Consumer Behaviour” Learning the Business of Asian Business PhD Seminar-3

2. Force-Process-Outcome (Fam: ‘Effective advertising in China and India’, Proceedings of International Conference on Research in Advertising, 2005, pp. 161-167) Force Outcome Process

3. Impact of Cultural Differences on Consumer Behaviour & Marketing Communications Aspects of Marketing Communications: Aspects of Consumer Behaviour: Words, Symbols & Perception Motivation Age Self-concept Group Influence Social Class Sex Roles Attitudes to Change Purchase Decision Making Post-Purchase Elements of Culture: Material Language Aesthetics Education Religion Social Organization Politics & Law Values & Attitudes Ethics & Etiquettes Message decisions (appeal, central message) Creative approaches (execution: casting & activities of people, the settings, interrelationship) Advertising styles Media planning approaches

4. The Possible Impact of Cultural Differences on Selected Aspects of Consumer Behaviour • 1. Symbols & Perception • Symbols work as a powerful means of suggestion and evocation. The symbolic aspects of consumption are important to consumers: the social meaning of many products is more important than their functional utility. In their capacity as signs with suggestive power, symbols rely on natural elements: colours, shapes, locations, materials, everyday objects, animals, countryside and elements of nature, famous characters, etc. (see Omega watch associated with America’s Cup)

5. Omega Watch and America’s Cup

6. perception of shapes, colours varies across cultures. Colours, • things, numbers and even smells have symbolic meanings, • often not the one you think! In certain cultures, the lake is a symbol of love, the blue colour is of virginity, the green of peace, and white is the colour of birth in the West and is usually celebrated as a happy event. In China it symbolizes mourning. • Chinese consumers living in coastal areas prefer loud colours, • while those living inland prefer gaudy colours. Red suggests good • fortune in China but death in Turkey. The owl in India is bad luck, • like a black cat in Europe. In Japan a fox is associated with witches. • In Singapore the number 7 is unlucky; but in Japan it is 4.

7. The Possible Impact of Cultural Differences on Selected Aspects of Consumer Behaviour Associating Symbols • Chinese consumers attached a high level of involvement to the purchasing of consumer goods, and this is directly attributable to the Chinese culture of public and visible consumption. (materialism) • these markers/labels can be seen in possessions such as designer- labeled goods, expensive jewelry and cars, but this apparent materialism does not reflect internal personal tastes, traits or goals.

8. 2. Motivation: Motivation to own, to buy, to spend, to consume, to show, to share, to give differs across cultures. Motivation to spend can be altered by negative views of money. Motivation to buy may be low amongst Hindu culture since they discard objects and material culture. Motivation to consume may be hindered by a strong ecological stance like eliminate plastic in favour of reusable bottles. Similarly motivation to form relationship often lead to more gift giving occasions like those widely practiced by Chinese and Japanese.

9. Understanding the variations in what motivates people is important for positioning brands in different markets. It explains differences in brand loyalty, brand preference, brand image, etc. Differences in sensitivity to certain product attributes and advertising appeals can be explained by culturally defined motives. See the “Motives for buying Automobiles”.

10. Motives for Buying Automobiles Source:de Mooij, (1998) 1 2 4 3

11. Quadrant 2 • Masculine and weak uncertainty • avoidance • People have a preference for cars with • big, powerful motors. They tend to • have a need for status. So what • advertising appeal/s to use? • Quadrant 1 • Feminine and weak uncertainty • avoidance • People have preference for safety • to protect their family for saving money. • So what advertising appeal/s to use? • Quadrant 3 • Feminine and strong uncertainty • avoidance • People in this culture see the need for ‘sporty’ driving, fast acceleration but not so aggressive. A preference for design, but more in the art/fashion sphere, pleasure and enjoyment. • Quadrant 4 • Masculine and strong uncertainty • avoidance • People in this culture are aggressive • drivers, prefer cars with rapid • acceleration. Because they are often • stressed up, they driving fast, they can • ‘release’ stress. So what advertising • appeal/s to use?

12. Motivation (Source: Schutte and Ciarlante, 1998) Self Actualisation Status Prestige Admiration Belonging Affiliation Safety Safety Physiological Physiological Asia Lower level needs West

13. Power distance vs group/individualism orientation (Hofstede, 1980) High power distance Asia Individualism Group orientation Western Countries Lower power distance

14. 3. Age: • Do people know their age?/Respective valuation of younger and older people in the society/Influence processes across age groups for buying decisions/How is purchasing power distributed across generations? • Culture based interpretations of: • Young age – usually associated with inexperience, lack of seriousness and character or with openness, creativity, ability to change things and undertake new projects • Old age – ‘useless mouths’ or ‘deadweight’ and should be asked to climb a tree and then let the young to shake him/her down from the tree. If he/she is old but strong, then should stay otherwise the solution is automatic. Or has wisdom and therefore should consulted. • 2. How we value older people will influence the way their roles or image be projected/associated?

15. 4. Self-Concept: Self concept may explain why and/or how consumers are motivated to interact with reference groups, sales people, and competing brands. Understanding self-concept’s influence on behaviour may enable marketers to develop effective methods of appealing to various target markets by targeting difference self-concepts. • Self concept consists of five components; • ideal self – model person which one aspires to be • apparent self – how one actually view the individual • perceived self – how one sees oneself • social self – how a person thinks others perceive them • actual self – a composite of all these concepts.

16. 4. Self-Concept: continue The concept of the self has major implications like: our possessions are a major contributor to and reflector of our identities; by ascribing meaning to what we buy and consume, our possessions become the means by which we strive to assert, complete, or attain our ‘ideal’ self. Consumers may purchase goods in order to develop a particular self-image (self concept) rather than for functionality. Asians, on average have lower self-esteem. They tend to display modest and self-effacing behaviour versus the usually high esteem Westerners who tend to demonstrate more assertiveness and self-assurance. Is this statement true?

17. 5. Group Influence: To what extent are individuals influenced in their attitudes and buying behaviour by their group? How does consumer behaviour reflect the need to self-actualise individual identity or to manifest group belonging? For example in China, friends and colleagues have more purchasing influence than advertising. Also in Asian cultures, the discretion over the use of income is heavily influenced by the expected contribution to the family. The tradition of deference to parental wishes also affects buying patterns in clothing, leisure expenditure, etc., especially as it is normal to live at home until marriage.

18. 5. Group Influence: continue • In collectivist cultures, consumers tend to be more loyal on • average because they tend to: • rely on word-of-mouth communication found in their • reference group • tend to follow the group consensus until there is significant • evidence showing that the new product is better.

19. 5. Group Influence: continue • In collectivist cultures, consumers’ involvement in purchasing a • product will vary according to situation when the product is: • purchased for private use – low involvement surfaced because • they only favour the physical functions of the product and • mostly concerned with price and quality. • Purchased for its symbolic value – since people value social • harmony and the smoothness of relationships within extended • family, the social significance of a product is highly important - • it may express status, gratitude, approval or disapproval.

20. 6. Social Class: Are social classes locally important? Is social class demonstrated through consumption? What type of products or services do social status-minded consumers buy? Are there exclusive shops? The Americans see one’s social class as reflecting one’s personal income and professional merit. The interdependent Chinese sees one’s social class as belonging to one’s group, usually one’s family, relatives, and kinship clan. Social classes are important for consumer behaviour as people tend to express their class differences by consumption. In China, the use of Hard/Soft Bunk on trains is more common than the Western concept of Economy/First Class seating. This is in line with China’s egalitarian society.

21. 7. Sex Roles: The sexual division of labour; who makes the decisions? Who stays at home; who takes care of the children; who does the cooking, who does the washing, cleaning and tidying up; and for shopping who shops: he or she or both of them? In Singapore, a husband played a more dominant role than his US counterpart in family decision making. In a strict Islamic world, women are completely dependent on men, whose authority and command cannot be questioned. A woman’s place is always in the home. In HK, women were often portrayed at home than men, in dependent roles, and less in occupational commercial settings (Furnham and Mak, 1999). In China, a decree by Chairman Mao that both men and women should be treated equally.

22. 8. Attitudes to Change: Resistance to change in consumer behaviour (related to strong uncertainty avoidance), and resistance to change in particular areas when change could clash with local values and behaviour (eg. resistance to fast-food restaurants). Members of a society with strong uncertainty avoidance are less likely to seek change/adopt a new product due to the fear of breakdown, losing ‘face’ and etc. The Chinese saying ‘Never make a purchase until you have compared three shops’ (Cui, 1997) is very much alive among Hong Kong consumers.

23. 9. Purchase Decision Making: Family models (nuclear family versus extended family). Who makes the decision to purchase and for which products? In some cultures the woman holds the purse strings while in others it is the man. In Japan, the housewife makes most of the major purchases for the family and buy the family’s food, household supplies and clothing. So who should the marketers target at in Japan? Children’s influence and decision making, in particular, what roles do China’s single child plays in family decision making? Buyers in high-context, collectivist cultures will seek more social information before making a purchase decision than those in the low context cultures.

24. 9. Purchase Decision Making: continue Will it make a difference to you if the fried chickens you just bought from KFC were from farms that did not stun the chickens first before they are killed? Will it make a difference to you to eat at McDonalds if the hens laying the eggs were not given extra water, more wing room in their cages and fresh air? (see Global boycott aimed at KFC cutting – 7/1/03) People in strong uncertainty avoidance cultures prefer structured and detailed information relative to weak uncertainty avoidance. For example Club Med provides detailed brochures detailing maps of airports at both ends of trip, showing toilets, custom booths and other facilities.

25. 9. Purchase Decision Making: continue Members of collectivist cultures tend to invest time in building relationships with their business partners than individualistic. In collectivist cultures people do not like to say no and in large power distance cultures there is a need to please, resulting in ‘yesmanship’. Additionally, in collectivist societies, fate is assumed to play a role. In cultures where power distance is high, that is decision making is concentrated on the boss, then the sales person has to target at the top and at the same time make friends with people at the intermediate levels. In low power distance cultures, the contact is roughly proportionate with the financial amount involved by the sales contract.

26. 10. Post-Purchase: Perceptions of product quality. Consumer complaining behaviour/dissatisfaction/consumerism. Does price here include non-monetary price? Some cultures perceived a trip to buy a product, or the preparation of meals as enjoyable. To the French, being served is negatively valued. They value equality and therefore, ‘do it yourself’ market is popular in countries such as France where there is low power distance. Is consumerism active in Asian societies? Do Asian consumers voice their dissatisfaction? How many of you know about the return and refund policy of Mark & Spencer, Giordano, etc? Do these shops openly advertise their refund policy?