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Chapter 13 Cross-Cultural Consumer Behavior: An International Perspective REVIEW AND DISCUSSION QUESTIONS 13.1 With all the problems facing companies that go global, why are so many companies choosing to expand internationally? What are the advantages of expanding beyond the domestic market? American companies are increasingly deriving the majority of their sales and profits from overseas operations. For example, 64 percent of Coke’s total sales and over 40 percent of Procter & Gamble’s total sales are derived from international sales. The reasons for companies expanding internationally include: taking advantage of emerging markets; escaping recessions in the United States; keeping up with or escaping competition; taking advantage of liberal tax laws; disposing of inventories of older products; extending the life cycles of products which had reached their peaks in the United States; and trying to establish a global image. Some companies may choose to “go global” because they would like to keep up with technology or test their products in foreign markets first. 13.2 In terms of consumer behavior, are the world’s countries and their cultures becoming more similar or more different? Discuss. This question provides a vehicle for an interesting class discussion. Marketers are arguing both sides of the issue. Some see an increase in people’s distinctive tastes and standards based on nationalism, regionalism, or culture. Others see the influence of media and pop culture as blending cultures and blurring national boundaries. Your authors argue that the cultures of the world are not becoming more similar. In spite of this fact, it is apparent that America’s pop culture, that is, our movies, TV shows, and pop music, is popular all around the globe. Will recent world events and conflicts change this popularity? Consumer behavior across the world is experiencing a complex interplay between globalization and cultural preservation. While there are undeniable trends towards homogenization in some aspects, such as the widespread adoption of certain global brands and products, there are also strong forces preserving and promoting cultural diversity. Globalization has undoubtedly led to increased similarities in consumer behavior. The rise of multinational corporations and the spread of digital media have facilitated the dissemination of consumer trends and preferences across borders. As a result, you can find similar products, brands, and consumption patterns in diverse parts of the world. For instance, fast-food chains like McDonald's and Coca-Cola are ubiquitous symbols of globalization, present in nearly every corner of the globe. Furthermore, technological advancements, especially in e-commerce and social media, have created a global marketplace where consumers have access to products and trends from around the world. This has contributed to the convergence of consumer preferences, as people are exposed to and influenced by a shared pool of information and experiences. However, alongside these globalizing forces, there is a growing appreciation for cultural diversity and a desire to preserve local traditions and identities. Many consumers seek out unique products that reflect their cultural heritage or ethical values. This has led to a resurgence of interest in traditional crafts, artisanal goods, and locally sourced products. Additionally, there is a rising awareness of sustainability and ethical consumption, driving consumers to support businesses that align with their values, whether they are global or local. Moreover, cultural differences still play a significant role in shaping consumer behavior. Factors such as language, religion, historical context, and social norms influence people's preferences and purchasing decisions. For example, while Western societies may value convenience and efficiency, Eastern cultures may prioritize harmony and tradition. These cultural differences can manifest in diverse consumption patterns, from food choices to shopping habits. In conclusion, while there are undeniable trends towards global homogenization in consumer behavior, driven by globalization and technological advancements, cultural diversity remains a resilient force. Consumers around the world continue to embrace both global and local influences, creating a dynamic and multifaceted consumer landscape that reflects a balance between uniformity and diversity. 13.3 What is cross-cultural consumer analysis? How can a multinational company use cross-cultural research to design each factor in its marketing mix? Illustrate your answer with examples. Cross-cultural consumer analysis is defined as the effort to determine to what extent the consumers of two or more nations are similar or different. Such an analysis provides marketers with an understanding of the differences and similarities in psychological, social, cultural, and environmental factors, and permits the design of effective marketing strategies for each of the specific countries involved. Table 13-2 shows what multinational marketers found when they studied Chinese and American cultures. 13.4 What are the advantages and disadvantages of global promotional strategies? The major advantage of a global promotional strategy is cost savings across the board in designing and implementing a marketing mix. Thus, the manufacturer of Aramis, a well-established brand of men’s fragrance sold in more than 120 countries, has been running a worldwide advertising campaign depicting a blurred form of a hurrying businessman that prevents the viewer from fully identifying the model’s ethnic group. Gillette uses a global approach (i.e., the same ads running in different countries/languages) for its Sensor Shaving System. Although local marketing strategies are clearly more expensive and complex than global ones, in many cases, differences between the needs and wants of consumers in different countries are strong enough to preclude the use of global promotional approaches. Thus, McDonald’s localizes its advertising to consumers in different countries, and Procter & Gamble and Colgate-Palmolive create different versions of their products as well as localized promotions in targeting world-wide consumers. 13.5 What are the advantages and disadvantages of localized promotional strategies? A local marketing strategy consists of customizing both the product and the communications program for each unique market. One advantage is it can help companies meet the needs of a given market. Another advantage is communications can be fine-tuned based on language and other cultural ideals, including sources that would be perceived as most credible in each market. One disadvantage is it may create confusion for people who are exposed to the brand’s communications in multiple markets. In addition, there is a higher cost associated with unique promotional strategies in different countries. 13.6 Give three examples of linguistic problems that companies have faced during marketing in global markets and describe how these problems could have been avoided. 1. The slogan “Chevy Runs Deep” did not translate well in some languages. The company replaced it with the slogan “Find New Roads” because the car represents different things to different people, a theme that resonates with consumers around the world. 2. When General Motors introduced the Chevy Nova in South America, it was apparently unaware that “no va” means “it won’t go.” After the company figured out why it was not selling any of these cars, it renamed the car in its Spanish markets as the Caribe. 3. When Parker Pen marketed a ballpoint pen in Mexico, its ads were supposed to say “It won’t leak in your pocket and embarrass you.” However, the company mistakenly thought the Spanish word “embarazar” meant “embarrass.” Instead the ads said that “It won’t leak in your pocket and make you pregnant.” 4. When Vicks first introduced its cough drops on the German market, it was chagrined to learn that the German pronunciation of “v” is f—making its name in German the guttural equivalent of “sexual penetration.” 5. In Taiwan, the translation of the Pepsi slogan “Come alive with the Pepsi Generation” came out as “Pepsi will bring your ancestors back from the dead.” The rapidly growing Chinese market represents an enormously difficult cultural and linguistic challenge. The name Coca-Cola in China was first rendered as Ke-kou-ke-la. Unfortunately, the Coke company did not discover until after thousands of signs had been printed that the phrase means “bite the wax tadpole” or “female horse stuffed with wax” (depending on the dialect). Coke then researched 40,000 Chinese characters and found a close phonetic equivalent, ko-kou-ko-le, which can be loosely translated as “happiness in the mouth.” Companies can avoid these challenges by working with someone who is acculturated to the region and understands the language and/or by conducting market research prior to market entry. 13.7 Give three examples of product problems that companies have faced during marketing in global markets and describe how these problems could have been avoided. Mattel shut its Barbie stores in China after learning that Chinese parents wanted their girls to model themselves after studious children, not flirts. Consequently, Mattel decided to market mostly educational toys in China. Home Depot Inc. closed about half its stores in China, finding scant interest among Chinese for do-it-yourself renovation, and decided to come up with a new strategy for the Chinese market. Many Britons consider the Starbucks version too watery, so baristas in Britain recently began adding a free extra shot of espresso. Sixty percent of French people like espresso, but many complained that Starbucks’ espresso tasted charred. In response, Starbucks introduced a lighter “blonde” espresso roast in Paris. Germans thought the greeters at Walmart were creepy. Ikea packaging and bed sizes were not compatible in all markets. Students may have their own examples. Acculturation to the market prior to product launch and research with the market can help companies avoid these problems. 13.8 An American company is considering introducing yogurt in Japan. What cultural aspects should the company study before deciding whether or not to do so? The American company should consider legal barriers; linguistic barriers (including acknowledging the Japanese language does not include the R sound, if that is relevant); the local culture’s values, priorities, customs, and beliefs; existing attitudes toward yogurt; local tastes (e.g. green tea; very low consumption of cheese and eggs); economic factors (low end forecasted growth in consumer expenditures); Japan-VALS (wherein Japanese consumers are segmented by attitudes toward social change and primary motivations including tradition, achievement and self-expression); 50% of Japanese women work outside the home; and other environmental characteristics that might affect the usage or potential usage of the products. 13.9 Coca-Cola is considering introducing very small bottles of its product in Brazil. These would cost less than bottled water. Discuss whether or not the company should do so. Brazil is among the world’s heaviest buyers of bottled water because clean, fresh water is very scarce. Brazil has low spending power but consumer expenditures are expected to grow in the next 15 years. Brazilians eat much more fruit than vegetables because growing vegetables is much more expensive than growing fruit. Based on this information, students may suggest there is an opportunity for a soft drink that costs less than water. However, since Coca-Cola is bottled locally, the students may also raise scarce water as a deterrent to market entry. Students may also raise concerns about the ethics of marketing soda as an alternative to water. 13.10 As shown earlier, Hong Kong’s Chinese spend more on clothing than any other nation. Research Hong Kong’s culture and geographic location and explain why they do so. Clothing is a major expenditure Hong Kong’s Chinese. It has big shopping centers and low import taxes, and benefits from its use as a gateway/shipping port. The culture is materialistic and is influenced by its time as a British colony. The culture is also focused on celebrities, which may increase knowledge of and desire for fashion brands. Designer fashions are popular among all classes, but the latest styles are symbols of wealth/upper class stratifications. It has a celebrated fashion week, and although it dropped in the ranks of fashion cities in recent years, it is still in the top 15. 13.11 Looking at the charts presented earlier in this chapter, select a product that members of a particular nation consume heavily. Research the country’s culture and geographic location and describe why they do so. For example, students may choose to further India, where large populations and low incomes result in heavy fruit consumption. The data in Figure 13.5D shows that India is the world’s top consumer of breads and cereals. Consumers in India start the day with daily breads called chapatti, parantas, and dosas. The Indian breakfast is heavy and there is a feeling of fullness at the end. Product: Breads and cereals Country: India Reasons for Heavy Consumption: 1. Cultural Significance: Breads and cereals are staple foods in Indian cuisine and are consumed in various forms across the country. They are a fundamental part of Indian culinary traditions and are deeply ingrained in the culture. 2. Dietary Preferences: Indian cuisine is known for its use of grains, especially wheat and rice, which are used to make a variety of breads, such as chapatti, paranthas, and dosas, as well as cereals like rice and various types of lentils. These foods are not only filling but also provide a good source of energy and nutrients. 3. Economic Factors: Breads and cereals are relatively inexpensive and are a cost-effective way to feed large populations. In a country like India, where there is a large population and low incomes for many, these foods are accessible and provide a substantial portion of the daily diet. 4. Geographic Factors: India's diverse climate and agricultural practices support the cultivation of a variety of grains, including wheat, rice, and millets, which are used to make breads and cereals. The availability of these grains contributes to their heavy consumption. 5. Meal Patterns: In India, breakfast is considered an important meal, and it is often heavy and substantial. Breads and cereals are commonly consumed for breakfast, providing a feeling of fullness and energy to start the day. 6. Health Benefits: Breads and cereals are a good source of carbohydrates, fiber, and other essential nutrients. When consumed as part of a balanced diet, they can contribute to overall health and well-being. Overall, the consumption of breads and cereals in India is influenced by cultural, dietary, economic, geographic, and health-related factors, making them an integral part of the Indian diet. 13.12 Looking at the charts presented earlier in this chapter, select a product that members of a particular nation consume very lightly. Research the country’s culture and geographic location and describe why they do so. For example, Singapore consumes very little fruit. Most fruit is imported, Singaporeans prefer fresh to processed fruit, and consumers are price sensitive when it comes to fruit. Singapore’s geographical position connects it to major air and sea transport routes so it can import food ingredients from around the world. They are passionate about food, but prefer to spend on meat and seafood. Therefore, consumers eat more vegetables, which are less expensive than fruit. In addition, the most popular fruit is banned in many public places because it smells strong. HANDS-ON ASSIGNMENTS 13.13 Have you ever traveled outside the United States? If you have, please identify some differences in values, behavior, and consumption patterns that you noted between people in a country you visited and Americans. Values: Different cultures often prioritize different values. For example, in some Asian cultures, there is a strong emphasis on collectivism and family honor, while in Western cultures like the U.S., individualism and personal achievement are often more prominent. Behavior: Cultural norms can greatly influence behavior. For instance, in some cultures, it is customary to remove shoes before entering a home, whereas in others, it may be seen as unnecessary or even rude. Consumption Patterns: The way people consume goods and services can vary widely between cultures. This can include differences in shopping habits, preferred products, and attitudes towards material possessions. For example, in some cultures, there may be a greater emphasis on saving and frugality, while in others, conspicuous consumption may be more common. These are just a few examples, and the differences can be much more nuanced and varied depending on the specific countries and cultures being compared. Instructor’s Discussion Responses to this exercise will vary based on the sophistication of your students. Its purpose is to lead the students to conduct small-scale, firsthand cross-cultural analysis. Help students to think and not make stereotypical, superficial observations. You can also rent a current foreign film on video, watch it, and note places where these behaviors are demonstrated. Then show selected clips of the film and have the students notice the differences depicted in the film. 13.14 Interview a student from another culture about his or her use of (a) credit cards, (b) fast-food restaurants, (c) shampoo, and (d) sneakers. Compare your consumption behavior to that of the person you interviewed and discuss any similarities and differences you found. 1. Credit Cards: • Ask about their use of credit cards. Do they use them frequently, or do they prefer cash? • Inquire about their attitude towards credit card debt. Do they try to avoid it, or are they comfortable carrying a balance? • Compare their reasons for using credit cards with your own. For example, do they use them for convenience, rewards, or to build credit history? 2. Fast-Food Restaurants: • Discuss their frequency of eating at fast-food restaurants. Is it a common part of their diet, or do they prefer home-cooked meals or other dining options? • Ask about their favorite fast-food chains and menu items. Do they have similar preferences to you, or are they different? • Explore their reasons for choosing fast food. Is it for convenience, taste, or other factors? 3. Shampoo: • Inquire about their shampoo preferences. Do they use a specific brand or type, or do they switch between different products? • Discuss their hair care routine. Do they use additional products such as conditioner or styling products? • Compare their reasons for choosing shampoo with yours. For example, do they prioritize price, brand reputation, or specific hair care needs? 4. Sneakers: • Ask about their footwear preferences. Do they prefer sneakers over other types of shoes, or do they have a different preference? • Inquire about their reasons for choosing sneakers. Is it for comfort, style, or functionality? • Discuss their purchasing behavior. Do they buy sneakers frequently, or do they prefer to stick with a few pairs? After conducting the interview, compare your consumption behavior in these areas with that of the person you interviewed. Look for similarities and differences in preferences, attitudes, and reasons for consumption. Reflect on how these differences may be influenced by cultural factors and how they shape individual consumption patterns. Instructor’s Discussion Prepare students with a caution. Some international students will be offended by this kind of questioning. A variation on this exercise would be for you to bring into class and interview selected international students or faculty and have the students take notes. This exercise is designed to illustrate to students the importance of cross-cultural consumer analysis and the need to adapt marketing programs to the values, customs, and needs of consumers in various countries. 13.15 Select one of the following countries: Mexico, Brazil, Germany, Italy, Israel, Kuwait, Japan, or Australia. Assume that a significant number of people in the country you chose would like to visit the United States and have the financial means to do so. Now, imagine you are a consultant for your state’s tourism agency and you have been charged with developing a promotional strategy to attract tourists from the country you chose. Conduct a computerized literature search of the databases in your school’s library and select and read several articles about the lifestyles, customs, and consumption behavior of people in the country you chose. Prepare an analysis of the articles and, on the basis of what you read, develop a promotional strategy designed to persuade tourists from that country to visit your state. To develop a promotional strategy to attract tourists from Japan to your state in the United States, it's essential to understand their lifestyles, customs, and consumption behavior. Based on research, here's an analysis and a promotional strategy: Analysis of Japanese Tourists: 1. Lifestyles: Japanese tourists often seek experiences that allow them to immerse themselves in different cultures. They value cleanliness, orderliness, and safety. 2. Customs: Japanese culture places importance on respect, politeness, and adherence to social norms. They often travel in family groups or with tour groups. 3. Consumption Behavior: Japanese tourists are known for their high spending on shopping, particularly for luxury goods and unique souvenirs. They also value high-quality accommodations and dining experiences. Promotional Strategy: 1. Cultural Immersion: Highlight cultural experiences in your state that resonate with Japanese tourists, such as museums, historical sites, and cultural festivals. Emphasize cleanliness, safety, and the authenticity of cultural experiences. 2. Customized Tours: Offer tour packages tailored to Japanese preferences, including family-friendly options and group tours with Japanese-speaking guides. Focus on providing a comfortable and respectful travel experience. 3. Shopping and Dining: Promote shopping districts and dining establishments that offer high-quality goods and authentic local cuisine. Highlight any tax-free shopping options for international tourists. 4. Accommodations: Partner with hotels and accommodations that cater to Japanese preferences, such as providing Japanese-style rooms or amenities like bidets. 5. Safety and Convenience: Emphasize the safety and ease of travel in your state, including efficient public transportation options and tourist-friendly infrastructure. By understanding the lifestyles, customs, and consumption behavior of Japanese tourists, you can tailor your promotional strategy to effectively attract them to your state, offering experiences that meet their preferences and expectations. Instructor’s Discussion This exercise utilizes the analysis of secondary data in studying the values and lifestyles of consumers in another culture. S.T.A.R. PROJECTS Ethical Issues in Consumer Behavior S.T.A.R. Project #1 Probably no trade arrangements have had bigger impacts on the United States in recent years than the initiation of North American Free Trade Agreement (NAFTA) or the creation of the European Union (EU). Your assignment is to pick one of these two major trade arrangements or agreements and conduct secondary research on the ethical statements, areas, or arrangements that impact consumers found within your chosen agreement or arrangement. For example, does your chosen trade arrangement or agreement have an ethics statement? If so, what does it mandate for signatories? How are consumers treated within the framework of the trade arrangement or agreement (what recourse with respect to complaints do consumers have)? Write a short summary paper outlining your findings. The North American Free Trade Agreement (NAFTA) and the European Union (EU) are two major trade arrangements that have had significant impacts on the United States and global trade. For this assignment, I will focus on NAFTA and explore the ethical statements and arrangements that impact consumers within the framework of this agreement. NAFTA and Consumer Protection: NAFTA is a trade agreement between the United States, Canada, and Mexico, aimed at reducing barriers to trade and promoting economic growth. While NAFTA primarily focuses on trade-related issues, it also includes provisions related to consumer protection. These provisions are aimed at ensuring that consumers in member countries are treated fairly and have access to effective mechanisms for resolving disputes. Ethical Statements and Mandates: NAFTA does not have a specific ethics statement, but it includes provisions related to consumer protection. These provisions are outlined in Chapter 15 of the agreement, which covers various aspects of consumer protection, including product safety, labeling, and advertising standards. The agreement encourages member countries to adopt and maintain measures that protect consumers from deceptive or fraudulent commercial practices. Consumer Recourse and Complaints: NAFTA includes mechanisms for resolving disputes related to consumer protection. If a consumer believes that their rights under NAFTA have been violated, they can file a complaint with the relevant authorities in their country. NAFTA provides for cooperation between member countries to address consumer protection issues and encourages the development of effective enforcement mechanisms. Summary: In summary, NAFTA includes provisions aimed at protecting consumers and ensuring that they have access to effective mechanisms for resolving disputes. While the agreement does not have a specific ethics statement, it includes provisions related to consumer protection that mandate member countries to adopt and maintain measures to protect consumers. Overall, NAFTA has had a significant impact on consumer protection in the United States and other member countries, helping to ensure that consumers are treated fairly in the context of international trade. Instructor’s Discussion The best place to start to accomplish this assignment is to review the material found in the chapter. Next, library or Internet sources can be used to explore NAFTA or the EU. Students should remember that current periodicals such as Business Week or Fortune often carry articles about NAFTA or the EU. Pick one or two of the best student summaries and read the material to the class or have the student authors describe their findings. Use this as a springboard to more complete discussion of the ethical issues found in either or both of these trade arrangements or agreements. S.T.A.R. Project #2 Assume that you are the marketing manager for a food products company that has just developed a new frozen “French fry” product. This new “French fry” product comes in small microwavable pouches and is noted for its crispiness. The product has been test marketed in New England and has shown favorable results. Your task is to attempt to sell the product idea to Canadian consumers. This might be a difficult task because of Canadian resistance to some United States products. The decision, however, has been made to go forward. Write a short position and strategy paper that outlines how you would attempt to introduce the product into Canada. Remember that English and French speaking Canadians might receive the product differently. Be sure to identify in your paper any cultural or ethical issues that must be addressed by such an introduction. Lastly, evaluate the likelihood of success of the product in the Canadian market. Explain your conclusions. Introduction: Introducing a new frozen "French fry" product into the Canadian market presents both opportunities and challenges. While Canadian consumers may be receptive to innovative food products, there may also be resistance to some United States products. To successfully launch the product in Canada, it is crucial to understand the cultural and ethical considerations unique to the Canadian market, particularly with respect to language, food preferences, and consumer perceptions of American products. Position Paper: Our new frozen "French fry" product, known for its crispiness and convenience, has the potential to appeal to Canadian consumers looking for convenient and high-quality food options. To address potential resistance to United States products, we will emphasize the unique qualities and benefits of our product, highlighting its superior taste, texture, and convenience. Strategy: 1. Market Segmentation: Segment the Canadian market based on demographics, psychographics, and behavioral factors to identify target consumer groups most likely to be interested in our product. 2. Product Positioning: Position the product as a premium, high-quality alternative to traditional frozen French fries, emphasizing its crispiness and convenience. 3. Marketing Communication: Develop marketing campaigns that resonate with Canadian consumers, emphasizing the product's unique selling points and addressing any concerns about American products. 4. Bilingual Packaging: Ensure that product packaging is bilingual (English and French) to cater to both English-speaking and French-speaking Canadians. 5. Cultural Sensitivity: Take into account cultural differences between regions in Canada, particularly with respect to food preferences and perceptions of American products. 6. Ethical Considerations: Ensure that marketing and labeling comply with Canadian regulations and ethical standards, particularly regarding food safety and environmental sustainability. Likelihood of Success: The success of the product in the Canadian market will depend on several factors, including the effectiveness of our marketing strategy, the appeal of the product to Canadian consumers, and our ability to address any cultural or ethical concerns. With the right approach, our new frozen "French fry" product has a good chance of success in Canada, offering consumers a convenient and delicious option for enjoying crispy French fries at home. Instructor’s Discussion Description of the product was kept to a minimum on purpose. In this way students can create their own product by making assumptions. Encourage them to do so. Students can research the Canadian market by using the library or the Internet. Students should certainly comment on Canadian resistance to becoming Americanized. Students should also see that a product such as this might not be popular in the French Canadian markets because the descriptor “French fry” might be offensive. How could the company overcome this difficulty? In the English speaking Canadian market, “French fries” might also be referred to as “chips.” Would this be a problem? What stigma might be associated with a microwavable product (i.e., would it be limp or soggy)? This project is a good one to use for discussion with respect to product introductions. Small Group Projects S.T.A.R. Project #3 Your group should research two to three companies that are reportedly doing an excellent job of recognizing the various cross-cultural similarities and differences among the consumers of different societies. Your group should focus on company marketing strategies. What marketing strategies have these companies employed in order to meet the needs of the consumers in these foreign cultures? How do these marketing strategies differ from the marketing strategies used for the American culture? Select at least one company that has been unsuccessful at recognizing cross-cultural similarities and differences. What did this company do wrong? What could this company have done better in order to be successful in its attempt? (Note: Coca Cola could qualify for both categories. Their early attempts at cross-cultural marketing were disastrous, especially in Asia. Now they are one of the premier international marketers.) Researching companies that excel at recognizing cross-cultural similarities and differences can provide valuable insights into effective global marketing strategies. Here are a few examples: 1. McDonald's: • Marketing Strategies: McDonald's adapts its menu to suit local tastes and cultural preferences. For example, in India, where the majority of the population does not eat beef, McDonald's offers a range of vegetarian options, including the McAloo Tikki burger. • Differences from American Marketing: McDonald's marketing in foreign cultures often emphasizes local flavors and ingredients, which may differ significantly from its American menu. Additionally, the company often incorporates cultural elements into its advertising campaigns to resonate with local audiences. 2. Nike: • Marketing Strategies: Nike is known for its "glocal" approach, combining global branding with local customization. The company collaborates with local athletes, artists, and designers to create products and campaigns that resonate with specific markets. • Differences from American Marketing: Nike's marketing in foreign markets often highlights local sports and cultural events, as well as local athletes and influencers, to connect with consumers on a personal and cultural level. 3. Coca-Cola: • Marketing Strategies: Coca-Cola has successfully adapted its marketing to different cultures by focusing on universal themes of happiness, togetherness, and sharing. The company often incorporates local customs and traditions into its advertising campaigns. • Differences from American Marketing: While Coca-Cola's core message remains consistent across cultures, its execution varies to reflect local tastes and preferences. For example, in some countries, Coca-Cola is marketed as a luxury product, while in others, it is positioned as an everyday refreshment. Unsuccessful Example: Pepsi: • What Went Wrong: Pepsi's "Pepsi Generation" campaign in China, which featured the slogan "Come Alive with Pepsi," was mistranslated as "Pepsi brings your ancestors back from the dead." This cultural misstep offended many Chinese consumers and damaged Pepsi's brand reputation in the country. • What Could Have Been Done Better: Pepsi could have avoided this misstep by conducting thorough cultural research and consulting with local experts to ensure that its messaging resonated appropriately with Chinese consumers. In conclusion, companies that succeed in recognizing cross-cultural similarities and differences often employ strategies that involve adapting their products, messaging, and marketing approaches to suit local tastes and preferences. Conversely, companies that fail to recognize these differences can face backlash and damage to their brand reputation. Instructor’s Discussion As an instructor, you can select the companies for the students or allow them to be creative with their own selection. Remember to have them explain or justify their picks. The focus of this assignment is on how companies recognize and deal with cross-cultural similarities and differences. Students should reference the material in the chapter before beginning this assignment. If students have a difficult time getting started, recommend that the section on Marketing Mistakes be read. S.T.A.R. Project #4 How would you like to plan your own cruise to an exotic foreign port or island paradise? Carnival Cruise Line (see www.carnival.com) is betting that just such a dream is one that you would like to realize. Carnival, a leader in the foreign travel and cruise industry, has constructed a Web site that allows the aspiring traveler to become his or her own travel agent. Your assignment is to plan and tentatively book your own cruise. You will be able to do so without commitment. As you plan your cruise make note of the consumer decisions that you must reach, the ease or difficulty in doing this, and choices that are allowed. Once you have completed the process, write a short report that summarizes your experience. Was the Web site an aid to your booking objective? What were the Web site’s strong and weak points? How could it be improved? What did you learn about booking travel online? As a consumer, would you use this method if you were doing it for real? Summary Report: Planning a Cruise with Carnival Cruise Line I embarked on the virtual journey of planning a cruise through Carnival Cruise Line's website, www.carnival.com, with the excitement of exploring exotic foreign ports and island paradises. The website proved to be a comprehensive tool that allowed me to become my own travel agent, offering a range of options and choices to customize my cruise experience. Consumer Decisions and Choices: The website presented me with a plethora of consumer decisions to make, including selecting the destination, cruise length, cabin type, dining preferences, and optional activities and excursions. I was able to browse through various cruise itineraries, view deck plans, and explore different stateroom options. Ease of Booking: Overall, the booking process was relatively easy and user-friendly. The website's interface was intuitive, and I found it easy to navigate through the different sections. The booking engine guided me through each step, providing clear instructions and options along the way. Strengths of the Website: 1. Comprehensive Information: The website provided detailed information about each cruise itinerary, including ports of call, onboard activities, and dining options. 2. Customization Options: I appreciated the ability to customize my cruise experience, from selecting a specific cabin to choosing optional activities. 3. User-Friendly Interface: The website's interface was well-designed and easy to use, making the booking process straightforward. Weaknesses and Areas for Improvement: 1. Technical Glitches: I encountered a few technical glitches while navigating the website, such as slow loading times and occasional errors. 2. Limited Personalization: While the website offered some customization options, I felt that there could be more personalized recommendations based on my preferences. 3. Clarity on Pricing: The pricing information was sometimes unclear, and I had to dig deeper to understand the total cost of my cruise, including taxes and fees. Improvements: 1. Enhanced Personalization: The website could benefit from offering more personalized recommendations based on user preferences and past booking history. 2. Improved Pricing Transparency: Clearer pricing information, including a breakdown of all costs, would help users make more informed decisions. 3. Streamlined Navigation: Addressing technical issues and improving website speed would enhance the overall user experience. Booking Experience and Future Considerations: My experience planning a cruise with Carnival Cruise Line's website was positive overall. The website's features and options allowed me to tailor my cruise experience to my preferences. As a consumer, I would consider using this method for booking a cruise in the future, as it offers convenience and flexibility in planning a vacation. However, I would also explore other options and compare prices and offerings before making a final decision. Instructor’s Discussion Nothing is quite as much fun as booking a dream vacation (especially if money is no object). Students will be exposed to a consumer-friendly Web site that has been evaluated as one of the best. To extend this project, the instructor might select some of the other cruise Web sites and create a comparison for Carnival. Or, the instructor might invite a travel agent to speak to the class about the advantages of using a travel agent over self-booking or Web site booking. S.T.A.R. Project #5 At any given time the world is in turmoil somewhere. This turmoil often impacts global business and commerce. If business and commerce are affected, consumers are also affected. Your assignment is to use the Internet to research how global events impact global consumers. A good place to start your Internet search is to review the latest stories and headlines found on either CNN (see www.cnn.com) or U. S. News and World Report (see www.usnews.com). Other sources can be used, however, these two news-oriented Web sites do an adequate job of reporting global events and consumer issues that are impacted by world events. For example, does war in the Middle-East impact gasoline prices or automobile sales? Does disagreement among members of the United Nations (especially the powerful members) hurt trade and consumer purchasing? Are American consumers welcomed around the world if anti-Americanism is high? Write a summary report about your findings and conclusions. Summary Report: Impact of Global Events on Global Consumers Global events have a significant impact on global business, commerce, and consequently, consumers. Through research on news sources such as CNN and U.S. News and World Report, several key findings have emerged regarding the relationship between global events and consumer issues: 1. Economic Turmoil and Consumer Confidence: Events such as economic recessions, stock market crashes, and currency fluctuations can significantly impact consumer confidence. Uncertainty about the economy can lead consumers to reduce spending, save more, and be more cautious in their purchasing decisions. 2. Political Instability and Consumer Behavior: Political instability, including conflicts, wars, and terrorist attacks, can disrupt supply chains, increase commodity prices, and create uncertainty in global markets. This can lead to higher prices for goods and services, impacting consumer purchasing power. 3. Natural Disasters and Consumer Spending: Natural disasters such as hurricanes, earthquakes, and floods can cause widespread damage to infrastructure, disrupt transportation and supply chains, and lead to shortages of goods. This can result in higher prices for essential items, impacting consumer budgets and spending patterns. 4. Trade Disputes and Consumer Prices: Trade disputes between countries, such as tariffs and trade barriers, can lead to higher prices for imported goods. This can impact consumer choices and purchasing decisions, as they may opt for cheaper alternatives or reduce consumption of affected products. 5. Anti-American Sentiment and Consumer Behavior: Anti-American sentiment in some parts of the world can impact American businesses operating abroad and influence consumer perceptions of American products and brands. This can lead to challenges in marketing and selling American products in certain markets. In conclusion, global events have a direct impact on global consumers, influencing their confidence, behavior, and purchasing decisions. It is essential for businesses and policymakers to understand these dynamics and adapt their strategies accordingly to navigate the complex and ever-changing global landscape. Instructor’s Discussion Students are free to be creative with this assignment. As was indicated in the assignment, world events are constantly changing and these events impact consumers and consumption. Each student should create his or her own illustrations. These illustrations should be supported by world events and secondary material. Have a discussion that involves not only contemporary news stories but the human side as well. International students can usually provide good insight into this area. The only real danger of this assignment is that it might degrade to a political discussion rather than one that centers on consumers and consumption. Watch this danger and keep students focused and on track. CASE COMMENTS Case: LG Mobile/LG Electronics MobileComm USA “Before you text, give it a ponder” How did LG's campaign against mobile bullying aim to change teens' attitudes and perceptions about mean texting, and how did this initiative align with the brand's commitment to making a positive impact on the world? LG’s campaign changed attitudes about mobile bullying, which was perceived by teens as a normal part of communicating. However, cell phone misuse (bullying, sexting) is a problem. LG became an advocate against the problem as part of its overt commitment to make a positive impact on the world, as summarized by the brand essence “Life’s Good.” They aimed not to eliminate mobile bullying, but rather to change attitudes about its importance. In doing so, LG felt it would also improve its brand equity. So, the measures were to change teens’ attitude and perceptions about mean texting, increase brand relevance and consideration, increase equity among teens of LG Mobile as a socially responsible company, motivate teens to interact with the LG brand, and generate unpaid media. They leveraged regret over past texts and asked teens to “think before you text.” Solution Manual for Consumer Behaviour Leon G. Schiffman, Leslie Lozor Konuk, S. Ramesh Kumar 9789332555099, 9780134734828
