A Review of Cross―Cultural Variations in Consumer Behaviour and Marketing Strate

[a] School of Business， University of Cape Coast， Cape Coast， Ghana.

*Corresponding author.

Received 3 October 2012； accepted 23 November 2012

Abstract

People’s habits， their aspirations in life， the roles they fill， how they relate to other people， their perception of things， the products they feel they need and the nature of their consumption patterns reflect， more or less， the influence of culture. This paper， therefore， examines the literature on the nature of nature of culture and cross-cultural variations in consumer behaviour. In this paper， we analyze the marketing implications of cultural differences and similarities that exist between the people of two or more nations. The review mainly examines some theories of culture， variations in cultural values， cultural variations in nonverbal communications and， finally， marketing implications of cross-cultural variations that exist between people of different nations.

Key words： Cross-Cultural variations； Consumer behaviour； Marketing strategy

Francis. O. Boachie-Mensah， Rosemond Boohene （2012）. A Review of Cross-Cultural Variations in Consumer Behaviour and Marketing Strategy. International Business and Management， 5（2）， -0. Available from： http：///index.php/ibm/article/view/j.ibm.1923842820120502.1175

DOI： http：///10.3968/j.ibm.1923842820120502.1175

INTRODUCTION

Marketing across cultural boundaries is a difficult and challenging task. Cultures may differ in demographics， languages nonverbal communications and values. In the business world today， almost all multinational companies are aggressively marketing their goods and services beyond the borders of their homelands. In fact， as Schiffman and Kanuk （2007） observe， the issue is generally not whether to market a brand in other countries but rather how to do it. Because of this emphasis on operating as a multinational company， many companies endeavour to incorporate in their marketing practices a mix of standardized and local components so as to gain the benefits of each strategy. Several companies are fashioning strategies to take advantage of existing and emerging economic opportunities in other societies. Companies are marketing their goods and services worldwide for various reasons. Among others， several companies have realized that overseas markets represent the single most important opportunity for their potential growth when their home markets mature. This realization is driving them to broaden their scope of interests and search for consumers spread across the world.

Values and norms represent the beliefs of various groups within a society. According to Blackwell et al. （2006）， macroculture refers to values and symbols that apply to an entire or to most of its citizens. Microculture refers to values and symbols of a restrictive group or segment of consumers， defined according to variables such as age， religion， ethnicity， or social class. Microcultures are often called subcultures.

Figure 1

Values， Norms， Sanctions and Consumption Patterns

Source： Adapted from Hawkins， D. I， Mothersbaugh， D. L & Best， R. J. Consumer Behaviour：Building Marketing Strategy， （1989） 10th ed. Boston： McGraw-Hill， p. 43.

Cultures are not static. They typically evolve and change slowly over time. As Schiffman and Kanuk （2007） surmise， to fulfill its need-gratifying role， culture continually must evolve if it is to function in the best interests of a society. Major changes can occur in a culture during relatively short time periods due to rapid technological advances， exposure to other culture or dramatic events such as war. For this reason， the marketer must carefully monitor the socio-cultural environment in order to market an existing product more effectively or to develop promising new product. As Hawkins et al. （2007） suggest， marketers must understand both existing cultural values and the emerging cultural values of the societies they serve. A failure to understand cultural differences can produce negative consequences. A cultural system consists of three functional areas， as summarized by Lutz （1985）：

（1） Ecology： the way in which a system is adapted to its habitat. This area is shaped by the technology used to obtain and distribute resources （e.g.， industrialized societies versus Third World countries）. The Japanese， for example， greatly value products that are designed for efficient use of space because of the cramped conditions in that island nation （Lazer et al.， 1985）.

（2） Social structure： the way in which orderly social life is maintained. This includes the domestic and political groups that are dominant within the culture （e.g.， the nuclear family versus the extended family， representative government versus dictatorship）.

（3） Ideology： the mental characteristic of a people and the way in which they relate to their environment and social groups. This revolves around the notion that members of a society possess a common worldview. They share certain ideas about principles of order and fairness. They also share an ethos， or a set of moral and aesthetic principles.

When cultural changes occur， trends develop and provide marketing opportunities to those who spot the changes before their competitors do. As culture evolves， marketers may associate product or brand benefits with new values， or they may have to change the product if that value is no longer gratifying in society.

As Schiffman and Kanuk （2007） emphasize， the changing nature of culture means that marketers have to consistently reconsider why consumers are now doing what they do， who the purchasers and the users of their products are （males only， females only， or both）， when they do their shopping， how and where they can be reached by the media， and what product and service needs are emerging. Marketers who monitor cultural changes also often find new opportunities to increase corporate profitability.

1.2 Variations in Cultural Values

Marketing across cultural boundaries is a difficult and challenging task. Cultures may differ in demographics， languages， nonverbal communications and values. Although every culture is different， as Solomon （2002） identifies， four dimensions appear to account for much of this variability （Hofstede， 1980； Milner et al.， 2002）：

（1） Power distance： the way in which interpersonal relationships form when differences in power are perceived. Some cultures emphasize strict， vertical relationships （e.g.， Ghana）， whereas others， as the United States， stress a greater degree of equality and informality.

（2） Uncertainty avoidance： the degree to which people feel threatened by ambiguous situations and have beliefs and institutions that help that help them to avoid this uncertainty （e.g.， organized religion）.

（3） Masculinity/femininity： the degree to which sex roles are clearly delineated （see Session 2）. Traditional societies are more likely to possess very explicit rules about the acceptable behaviours of men and women， such as who is responsible for certain tasks within the family unit.

（4） Individualism/collectivism： the extent to which the welfare of the individual versus that of the group is valued. Cultures differ in their emphasis on individualism versus collectivism. In collectivist cultures， people subordinate their personal goals to those of a stable in-group. In contrast， consumers in individualist cultures attach more importance to individual goals， and people are more likely to change membership when the demands of the group （e.g.， workplace， church， etc.） become too costly. Whereas a collectivist society will stress values such as self-discipline and accepting one’s position in life， people in individualist cultures emphasize personal enjoyment， excitement， equality and freedom. As the literature indicates （e.g.， Goleman， 1990； Triandis， 1989； Triandis et al.， 1988）， some strongly individualistic cultures include the United States of America， Australia， Great Britain， Canada and the Netherlands. Venezuela， Pakistan， Taiwan， Thailand， Turkey， Greece and Portugal are some examples of strongly collectivist cultures.

Cultural values are widely held beliefs that affirm what is desirable. These values affect behavior through norms， which specify an acceptable range of responses to specific situations. As Hawkins et al. （2007） submit， a useful approach to understanding cultural variations in behavior is to understand the values embraced by different cultures.

There are numerous values that vary across cultures and affect consumption. Hawkins et al. （2007） present a classification scheme consisting of three broad forms of cultural values： （1） other-oriented， （2） environment-oriented and （3） self-oriented. The cultural values that have the most impact on consumer behavior can be classified in one of these three general categories.

Other-Oriented Values. As Hawkins et al. （2007） observe， other-oriented values reflect a society’s view of the relationships between individuals and groups within that society. These relationships have a major influence on marketing practice. For example， if the society values collective activity， consumers will look towards others for guidance in purchase decisions and will not respond favourably to promotional appeals to “be an individual.”

Environment-Oriented Values. These prescribe a society’s relationship to its economic and technical as well as its physical environment. As Hawkins et al. observe， you would develop a very different marketing programme for a society that stressed a problem-solving， risk-taking， performance-oriented approach to its environment than you would for a fatalistic， security- and status-oriented society.

Self-Oriented Values. As the authors suggest， self-oriented values reflect the objectives and approaches to life that the individual members of society find desirable. Again， these values have strong implications for marketing management. For instance， the acceptance and use of credit is very much determined by a society’s position on the value of postponed versus immediate gratification.

1.3 Cultural Variations in Nonverbal Communications

As Hawkins et al. （2007） observe， differences in verbal communication systems （languages） are immediately obvious to anyone entering a foreign culture. A Ghanaian travelling in Britain or America will be able to communicate， but differences in pronunciation， timing， and meaning will still occur.

Attempts to translate marketing communications from one language to another can result in ineffective communications， as Ford Motor Company is painfully aware. For example， Fiera （a low-cost truck designed for developing countries） faced sales problems since fiera means “terrible， cruel， or ugly” in Spanish （Ricks， 1983）.

As Hawkins et al. emphasize， the problems of literal translations and slang expressions are compounded by symbolic meanings associated with words， the absence of some words from various languages， and the difficulty of pronouncing certain words （Zhang & Schmitt， 2001）.

Nonverbal communication systems are the arbitrary meanings a culture assigns actions， events， and things other than words. The following discussion examines seven major variables all of which influence nonverbal communications： time， space， symbols， relationships， agreements， things and etiquette.

Time. According to Spears et al. （2001）， the meaning of time varies between cultures in two ways： time perspective and meanings in the use of time. Time perspective is the culture’s overall orientation towards time. People of most developed countries tend to view time as inescapable， linear and fixed min nature （Hawkins et al.， 2007）. It is a road reaching into the future with distinct， separate sections （hours， days， weeks and so on）. Time is considered almost as a physical object： we can schedule it， waste it， lose it and so forth. Believing that a person does one thing at a time， we have a strong orientation towards the present and the short term future. This is referred to as a monochromic time perspective. Most people of the Asian and Latin American descent tend to view time as being less discrete and less subject to scheduling. They view simultaneous involvement in many activities as natural. People and relationships take priority over schedules， and activities occur in their own pace rather than according to a predetermined timetable. Such cultures have an orientation towards the present and the future. This is known as a polychromic time perspective （Hawkins et al.， 2007）.

How would marketing activities vary between monochromic and polychromic cultures？ Personal selling and negotiation styles and strategies should differ， as would advertising themes. Contests and sales with deadlines would generally be more effective in monochromic than in polychromic cultures. As Hawkins et al. observe， convenience foods frequently fail when positioned in terms of timesaving and convenience in polychromic cultures where saving time is not part of the cultural thought processes （Hawkins et al.， 2007）. Interestingly， even within a culture， time perspectives ac vary by age and by situation. For example， according to de Mooij （2007）， in Japan， work is approached in terms of monochromic time whereas leisure is approached， as their culture might suggest， in terms of polychromic time.

Meanings in the use of time. Specific uses of time have varying meanings in different cultures. In much of the world， the time required for a decision is proportional to the importance of the decision. As Hawkins et al. observe， Americans， by being well prepared with ready answers， may adversely downplay the importance of the business being discussed. Likewise， both Japanese and Middle-Eastern executives are put off by Americans’ insistence on coming to the point directly and quickly in business transactions. Promptness is considered very important in American and Japan. According to de Mooij， “time is money and a symbol of status ad responsibility. To be kept waiting is offensive in monochromic cultures； it is perceived as a message. It is not in polychromic culture” （de Mooij， 2007）. As can seen， understanding such differences prior to doing business in a given country is very important.

Space. In view of Chapman and Jamal （2007）， the use people make of space and the meanings they assign to their use of space constitute another form of nonverbal communication. In Ghana， like in America， office space in organizations generally is allocated according to rank or prestige than need. The chief executive will often have the largest office， followed by deputy chief executive and so on. Personal space is a second major use of space. This is the nearest that others can move to a person in various situations without one feeling uncomfortable. As the literature suggests， in America， normal business conversations occur at distances of 3 to 5 feet and highly personal business from 18 inches to 3 feet. In part of northern Europe， the distances are slightly longer； in most Latin America， they are substantially shorter （Hawkins et al.， 2007）.

In the context of business， for instance， an American businessperson in Latin America would tend to back away from a Latin American counterpart in order to maintain his/her preferred personal distance. In turn， the host will tend to advance towards the American in order to maintain his/her personal space. Furthermore， each assigns a meaning to the other’s actions according to what the action means in his/her culture. Thus， the North American would consider the Latin American to be pushy and aggressive. In turn， the Latin American would consider the North American to be cold， aloof and snobbish.

Symbols. Basically， a symbol is anything that stands for something else. Any word is a symbol. To communicate effectively with their audience， marketers would need to use appropriate symbols to convey desired product images or characteristics. These symbols can be verbal or nonverbal. Verbal symbols may include a television announcement or an advertisement in a magazine. Nonverbal communication includes the use of such symbols as figures， colours， shapes and even textures to lend additional meaning to print or broadcast advertisements， to trademarks and to packaging or product designs （Schifman & Kanuk， 2007）.

As Schifman and Kanuk surmise， a symbol may have several， even contradictory， meanings， so the advertiser would need to ascertain exactly what the symbol is communicating to its intended audience. For example， the marketer who uses a trademark depicting an old craftsman to symbolize careful workmanship may instead be communicating an image of outmoded methods and lack of style. The marketer who uses slang in an advertisement to attract an audience of teenagers would need to do so with great care. Slang that is misused or outdated will symbolically date the marketer’s firm or product （Schifman & Kanuk， 2007）. In fact， as the authors emphasize， all the elements of the marketing mix （the product， its price， promotion and the stores at which it is available） are symbols that communicate ranges of its quality to potential customers. Failure to recognize the meaning assigned to a symbol can cause serious problems.

Relationships. The rights and obligations imposed by relationships and friendships are another nonverbal cultural variable. According to Hawkins et al. （2007）， Americans， more so than most other cultures， form relationships and make friends quickly and easily and drop them easily also. Largely， this may be because America has always had a great deal of both social and geographic mobility. In their view， people who move every few years must be able to form friendships in a short time period and depart from them with a minimum of pain. In many other parts of the world， relationships and friendships are formed slowly and carefully because they imply deep and lasting obligations. As the literature indicates （e.g.， Herbig & Kramer， 1992； Fan & Zigang， 2004）， friendships and business are deeply intertwined in most of the world. This is exemplified by the following quote：

To most Asians and Latin Americans， good personal relationships and feelings are all that really matter in a long-term agreement. After all， the written word is less important than personal ties. Once personal trust has been established， co-operation increases. The social contacts developed between the parties are often far more significant than the technical specifications and the price. In many countries the heart of the matter， the major point of the negotiations， is getting to know the people involved. Americans negotiate a contract； the Japanese negotiate a relationship. In many cultures， the written word is used simply to satisfy legalities. In their eyes， emotion and personal relations are more important than cold facts （Herbig & Kramer， 1992）.

Etiquette. This represents generally accepted ways of behaving in social situations. Behaviours considered rude or offensive in one culture may be quite acceptable in another. The common and acceptable Western European habit of crossing one’s legs while sitting， such that the sole of a shoe shows， is extremely insulting in many Eastern and African cultures （Hawkins et al.， 2007）. In these cultures， the sole of the foot or shoe should never be exposed to view. As Voss et al. （2004） observe， while most Americans are not hesitant to voice their dissatisfaction with a service encounter， many Asians are. This also appears to be true of the British who have traditionally been characterized by their reserved nature. Such factors can lead American managers to misjudge customer response to their services abroad （Voss et al.， 2004； Hui & Au， 2001）.

Normal voice tone， pitch and speed of speech differ among cultures and languages， as does the use of gestures. Westerners often mistake the seemingly loud， volatile speech of some Asian cultures as signifying anger or emotional distress when it is normal speech for the occasion. The importance of proper， culture-specific etiquette is obvious. Although people recognize that etiquette varies from culture to culture， there is still a strong emotional feeling that “our way is natural and right” （Hawkins et al.， 2007）.

2. CROSS-CULTURAL MARKETING STRATEGY

An important issue facing marketers is the extent to which one or more global consumer cultures segments are emerging. As Keillor et al. （2002） indicate， evidence suggests that there is indeed movement in this direction. Such a culture will have a shared set of consumption-related symbols with common meaning and desirability among members. One such proposed global culture is that portion of local cultures that view themselves as cosmopolitan， knowledgeable and modern. Such individuals share many values and consumption-related behaviours with similar individuals across a range of national cultures （Hawkins et al.， 2007）.

Such cultures are being created by the globalization of mass media， work， education and travel. Some product categories and brands have become symbolically related to this culture. This does not imply that these brands use the same advertising globally but rather that the underlying theme and symbolism may be the same.

There is ongoing controversy over the extent to which cross-cultural marketing strategies， particularly advertising， should be standardized （Sirisagul， 2000； Neff， 2000； de Mooij & Hofstede， 2002）. Standardized strategies can result in significant cost savings. This should be an important consideration in the marker’s advertising strategy.

Generally， most companies will blend standardization and customization. A recent surge in people’s pride in their local cultures means that at least some customization is necessary （Hawkins et al.， 2007）. A critical factor is achieving the right balance and determining where standardization is possible and where customization is critical.

2.1 Considerations in Approaching a Foreign Market

There are seven key considerations for each geographic market that a firm is contemplating. An analysis of these seven variables would provide the background necessary for deciding whether or not to enter the market and to what extent， if any， an individualized marketing strategy is required （Hawkins et al.， 2007）.

Is the geographic area homogeneous or heterogeneous with respect culture？ Marketing efforts， in general， are geared towards defined geographic areas， most importantly political and economic entities. This approach is often supported legal requirements and existing distribution channels. Nevertheless， it is also encouraged by the implicit belief that geographic or political boundaries coincide with cultural boundaries. From the forgoing， country boundaries represent general boundaries； but it is very important also to consider the existing differences within a given country. For example， Rubel’s （1996） and Barros’ （2004） research recommends that marketing strategies in Latin America must take into consideration not only cross-country but also within country boundaries differences. Accordingly， marketing campaigns need to be designed for cultural and demographic groups， not just countries.

What needs can this product or a version of it fill in this culture？ Majority of companies analyze a new market with an existing product or product technology in mind. The issue that needs to be addressed is what needs their existing or modified product can satisfy in the given culture. For example， bicycles and motor serve basically recreational needs in developed countries， but they provide primary transportation in many other countries， particularly developing ones.

ABX Company successfully positioned Juvita as a substitute for apple juice at breakfast in Ghana. Nevertheless， in evaluating the market for La Cote d’I voire， it realized that the Ivorians drink little apple juice and almost none at breakfast. Consequently， a completely different positioning strategy was employed； Juvita was promoted as a new type of refreshing drink for any time of the day.

Can enough of the people needing the product afford the product？ A firm needs to undertake an initial demographic analysis to find out the number of individuals or households that might need the product who can actually have the money to buy it. Example， while China has over 1.3 billion consumers， the effective market for most Western goods is estimated to be less than 20 percent of this total （Madden & Neff， 2004）. Furthermore， the possibilities of establishing credit， obtaining a government subsidy， or making a less expensive version of the product should be considered. As Andruss （2001） reports， this latter approach is being employed by P&G in China， where a tiered pricing system was created to help reach consumers with relatively low incomes.

What values or patterns are relevant to the purchase and use of this product？ The second section of this paper centred on values and their role in consumer behavior. The system may be examined for influences on purchasing the product， owning the product， using the product and disposing the product. Much of the marketing strategy will be based on this analysis.

What are the distribution， political and legal structures for the product？ It is obvious that a country’s legal structure can have an influence on each element of a company’s marketing mix. For example， a company may have to make changes for its advertisement in a given country because of legal restrictions in the country. It is reported of China to have recently banned sex appeals， and advertisements for so-called ‘offensive’ products such as feminine-hygiene products and hemorrhoid ointments have been banned during the three daily meals times （when families will be watching with children） （Chen & Chang， 2004）. And Brazil has put laws in place that limit the amount of alcohol advertising （Fowler， 2004）. Such legal restrictions limit the ability of firms to employ standardized approaches to their marketing efforts.

Also， regulations influence distribution channels. For example， as Madden reports （1998）， China placed a ban on direct sales to consumers； this has major repercussions for direct marketers in this country.

In what ways can we communicate about the product？ As Hawkins et al. （2007） suggest， this question demands an investigation into （1） available media and who attends to each type， （2） the needs the product fill， （3） values associated with the product and its use and （4） the verbal and nonverbal communications systems in the culture（s）. All elements of an organization’s promotional mix， which includes packaging， non-functional product design features， personal selling techniques and advertising， should be based on these factors. For example， ABX Technologies makes use of bright colours for the refrigerators it markets in some Asian countries. The company does so because a lot of consumers in these countries keep their refrigerators in their living rooms and want them to serve as attractive pieces of furniture， not just as appliances.

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