CHAPTER 13

Cross-Cultural Consumer Behavior: An International Perspective

LEARNING OBJECTIVES

After reading, studying and analyzing this chapter, students should be able to understand:
13.1 How to study the values and customs of different cultures in order to develop effective
marketing strategies.
13.2 How to decide whether to customize products for global markets or to sell standardized
ones.
13.3 How to identify global marketing opportunities.
13.4 How to apply psychographics to segmenting multinational markets.

CHAPTER SUMMARY

Learning Objective 13.1: To understand how to study the values and customs of different
cultures in order to develop effective marketing strategies.

Within the scope of consumer behavior, cross-cultural analysis is defined as determining to what
extent the consumers of two or more nations are similar or different. Such analyses can provide
marketers with an understanding of the psychological, social, and cultural characteristics of the
foreign consumers they wish to target, so that they can design effective marketing strategies for
the specific national markets involved. An understanding of the similarities and differences that
exist between nations is critical to the multinational marketer who must devise appropriate
strategies to reach consumers in specific foreign markets. Some of the problems involved in
cross-cultural analysis include differences in language, consumption patterns, needs, product
usage, economic and social conditions, marketing conditions, and market research opportunities.
Acculturation is the process by which marketers learn—via cross-cultural analysis—about the
values, beliefs, and customs of other cultures and apply this knowledge to marketing products
internationally.

Learning Objective 13.2: To understand how to decide whether to customize products for
global markets or to sell standardized ones.

The greater the similarity between nations, the more feasible it is to use relatively similar
marketing strategies in each nation. When the cultural beliefs, values, and customs of specific
target countries are found to differ widely, then a highly individualized marketing strategy is
indicated for each country. In deciding whether or not to customize products to local cultures,
marketers must consider local values, linguistic barriers, and legal issues.

Learning Objective 13.3: To understand how to identify global marketing opportunities.

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Firms are increasingly selling their products worldwide, for a variety of reasons. Many firms
have learned that overseas markets represent an important opportunity for their future growth
when their home markets reach maturity. This realization is propelling them to expand their
horizons and seek consumers in markets all over the world. Moreover, consumers around the
globe are eager to try “foreign” products that are popular in different and far-off places. As
increasing numbers of consumers come in contact with the material goods and lifestyles of
people living in other countries, and as the number of middle-class consumers grows in
developing countries, marketers are eager to locate these new customers and offer them the
products.

Learning Objective 13.4: To understand how to apply psychographics to segmenting

multinational markets.

Global psychographic research often reveals cultural differences of great importance to

marketers. Psychographics identifies shared values, irrespective of national borders. Much of this
research has sought to uncover the bedrock values in peoples’ lives, in order to understand the
motivations that drive both attitudes and behavior. The VALS research methodology has been
used to identify psychographic segments in other countries.

CHAPTER OUTLINE

INTRODUCTION

1. A world brand is manufactured, packaged and positioned exactly the same way regardless
of the country in which it is sold.
2. A global marketing strategy consists of selling the same product using the same positioning
approach and communications globally.
3. A local marketing strategy consists of customizing both the product and the
communications program for each unique market.
4. Hybrid marketing strategies standardize the product or the advertising message (but not
both) while customizing the other one.

*****Use Key Terms world brand, global marketing strategy, local marketing strategy,
hybrid marketing strategies Here; Use Figure #13.1 Here; Use Table 13.1 Here*****

Cross-Cultural Analysis and Acculturation

1. Cross-cultural analysis is defined as determining to what extent the consumers of two or

more nations are similar or different.
a. This type of analysis provides marketers with an understanding of the psychological,
social and cultural characteristics of the foreign consumers they wish to target.
b. The increased understanding enables the design of effective marketing strategies for
specific national markets.
c. Research issues that should be considered include:
i. Differences in language and meaning
ii. Differences in market segmentation opportunities
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 iii. Differences in consumption patterns
iv. Differences in the perceived benefits of products and services
v. Differences in the criteria for evaluating products and services
vi. Differences in economic and social conditions and family structure
vii. Differences in marketing research and conditions
viii. Differences in marketing research possibilities
d. Marketers want to know how consumers in two or more societies are similar and how
they are different.
i. Countries like China and Mexico are collectivistic (we) cultures
ii. Countries like the U.S. and the U.K. are individualistic (I) cultures
iii. Collectivists rely more on word-of-mouth
iv. Individualists attach more importance to explicit and implicit promises and
third parties
e. The greater the similarity between nations, the more feasible it is to use relatively
similar marketing strategies in each nation.

*****Use Learning Objective 13.1 Here; Use Key Term cross-cultural analysis Here; Use
Tables 13.2 and 13.3 Here; Use Review and Discussion Question #13.3 Here; Use Hands-on
Assignments #13.13, #13.15 Here *****

f. A study in four countries (U.S., U.K., France, Germany) identified differences in

consumer style and segmented consumers into four clusters:
i. Price-sensitive consumers
ii. Variety-seeking consumers
iii. Brand-loyal consumers
iv. Information-seeking consumers

***** Use Tables 13.4 and 13.5 Here*****

2. There are several frameworks for assessing consumption-related cultural differences.

a. One study identified the dimensions that cross-cultural studies should address:
i. Judgments regarding the quality of a country’s products
ii. Willingness to buy a country’s products
iii. Ethnocentrism—willingness to buy foreign-made products
iv. Perceptions of a country’s consumption culture
v. Acculturation—identification with a country’s culture
vi. Ethnic self-identification
vii. National self-identification
b. Another study identified the following relevant dimensions for measuring the
interrelationship between consumers’ attitudes toward local and global products:
i. Entertainment
ii. Furnishings
iii. Food
iv. Lifestyles
v. Brands
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 c. Another study identified personal cultural orientations that can be used in cross-
cultural measurement.
i. Independence
ii. Interdependence
iii. Power
iv. Social Inequality
v. Risk Aversion
vi. Ambiguity Tolerance
vii. Masculinity
viii. Gender Equality
ix. Tradition
x. Prudence
xi. Consumer Ethnocentrism
xii. Consumer Innovativeness

***** Use Review and Discussion Questions #13.8 and #13.9 Here *****

3. Marketers need to go through an acculturation process, learning everything that is relevant

to their product usage in the foreign countries in which they plan to operate.
a) Marketers must thoroughly orient themselves to the values, beliefs, and customs of the
new society.
b) Marketers must persuade the members of that society to modify or break with their own
traditions.

*****Use Key Term acculturation Here *****

4. It is often difficult for a company planning to do business in foreign countries to undertake

cross-cultural consumer research.
a. It is hard to conduct Western-style market research in the Islamic countries of the
Middle East.
b. In many countries there is a limited amount of information regarding consumer and
market statistics.
c. Scales of measurement are not adequate.
d. Research facilities may not be available.
e. To avoid research measurement problems, consumer researchers should
i. Familiarize themselves with the research services in the countries where they
are evaluating markets and learn to design marketing research studies that will
yield useful data.
ii. Keep in mind that cultural differences may make “standard” research
methodologies inappropriate.

Localization versus Standardization

1. Marketers can adapt their offerings in other nations or market them the same way they do at
home.
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 *****Use Learning Objective #13.2 Here *****
2. Some companies customize their products or services for local cultures.
3. Some companies have failed by assuming the needs of another culture would be the same as
the needs in their original market.
4. Many American brand names and slogans must be revised or changed in non-English
speaking countries.
a) Linguistic differences may be the most challenging factor facing companies that are
expanding globally.
b) Many companies have made errors with their translations.
c) A genuine Chinese name can say a lot about a product’s characteristics and result in
consumer attachment to the brand.

***** Use Review and Discussion Questions #13.6 and #13.7 Here *****

5. Promotional appeals must reflect the local culture’s values and priorities.
a) Countries differ in responses to humorous appeals and sexual appeals.
b) Countries differ in responses to individualistic and collectivistic ad appeals.
c) Comparative advertising has been used more in the United States than in other
countries, but comparative ad persuasiveness hinges on:
i) Self-construal (how individuals perceive, comprehend, and interpret the world
around them)
ii) Need for cognition

*****Use Key Term self-construal Here; Use Review and Discussion Questions #13.5 and
#13.6 Here *****

6. Sometimes, local laws force American marketers to alter their offerings.

7. World brands are those products that are manufactured, packaged, and positioned the same
way regardless of the country in which they are sold.
a) Marketers of products with a wide or almost mass-market appeal have embraced a
world branding strategy.
b) Still other marketers selectively use a world branding strategy.
c) Consumers associate global brands with three characteristics:
i) Quality Signal
ii) Global Myth
iii) Social Responsibility
d) Intracountry segments (with respect to how a country’s citizens view global brands)
include:
i) Global Citizens (55%)
ii) Global Dreamers (23%)
iii) Antiglobals (13%)
iv) Global Agnostics (8%)

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 *****Use Figure #13.2 Here; Use Tables 13.6 and 13.7 Here*****

8. Just because a brand may be global in character does not mean that consumers around the
world will necessarily respond similarly to a brand extension.

Global Marketing Opportunities

1. Firms are increasingly selling their products worldwide, for a variety of reasons.
a. There has been an ongoing buildup of “multinational fever.”
b. The general attractiveness of multinational markets, products, or services originating
in one country means that they are increasingly being sought out by consumers in
countries in other parts of the world
c. Many firms have learned that overseas markets represent an important opportunity for
their future growth when their home markets reach maturity.
d. Consumers around the globe are eager to try “foreign” products that are popular in
different and far-off places.
2. Global markets are dynamic and new marketing opportunities emerge continuously.
3. The most important criterion for identifying global marketing opportunities is a country’s
consumer spending and its growth prospects.

*****Use Learning Objective #13.3 Here; Use Figures #13.3 and #13.4 Here; Use Figures
#13.5A-D Here; Use Review and Discussion Questions #13.1, #13.10, #13.11 and #13.12
Here*****

4. The middle class is expected to grow from 30% to 52% of the world’s population by 2020.
a. By 2025, China will have the world’s largest middle class.
b. By 2025, India’s middle class will be 10 times larger than it currently is.
c. Although a growing middle class provides a market opportunity, it should always be
remembers that the same product may have different meanings in different countries.
5. The global teen market appears to have similar interests, desires, and consumption behavior
no matter where they live.
a. Less highly developed nations are different from high developed nations with respect
to teen fashion consciousness.
b. The coolest teens, Creatives, represent 30% of all teenagers and were found in all
studied countries, with a high concentration in Western Europe.

*****Use Table #13.9 Here; Use Review and Discussion Question #13.2 Here *****

Cross-Cultural Segmentation

1. Global “sameness” allows marketers to launch similar styles and/or use global advertising in
some cases.
2. Some countries require different lifestyle segmentation.

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 a. In Japan, businesses use the Japan-VALS framework to monitor Japan’s consumer
environment; generate new product ideas; segment Japanese consumers into potential
target markets; differentiate brands; and develop effective pricing, distribution, and
promotional strategies.
3. The Japan-VALS segments stem from consumers’ primary motivations and degree of
innovativeness, where innovativeness is measured as attitudes toward social change. Primary
motivations include tradition, achievement, and self-expression.
4. Roper Starch Worldwide interviewed 35,000 consumers in 35 countries in order to identify
shared values, irrespective of national borders.
a. The research sought to uncover the bedrock values in peoples’ lives so as to
understand the motivations that drive both attitudes and behavior.
b. After completing the interviews in North and South America, Asia, and Europe, six
global value groups were uncovered:
i. Strivers—ambitious and materialistic.
ii. Devouts—responsible, respectful, and conservative.
iii. Altruists—unselfish in their concern for others, society, and the future.
iv. Intimates—focus on social relationships and family.
v. Fun Seekers—young in age and outlook, value adventure and good times.
vi. Creatives—seek knowledge and insight, and have a keen interest in books and
new media.

*****Use Learning Objective #13.4 Here; Use Hands-on Assignment #13.4 Here *****

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.

Individual, Moderate, 10-15 minutes

Learning Objective 13.1: To understand how to study the values and customs of different
cultures in order to develop effective marketing strategies.
Learning Outcome 17: Explain why and how marketers must adapt marketing strategies to
the global marketplace
AACSB: Reflective thinking
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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?

Individual, Moderate, 10-15 minutes

Learning Objective 13.3: To understand how to identify global marketing opportunities.
Learning Outcome 17: Explain why and how marketers must adapt marketing strategies to
the global marketplace
AACSB: Reflective thinking

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.

Individual, Moderate, 10-15 minutes

Learning Objective 13.1: To understand how to study the values and customs of different
cultures in order to develop effective marketing strategies.
Learning Outcome 17: Explain why and how marketers must adapt marketing strategies to
the global marketplace
AACSB: Reflective thinking

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
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 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.

Individual, Moderate, 5-7 minutes

Learning Objective 13.2: To understand how to decide whether to customize products for
global markets or sell standardized ones.
Learning Outcome 17: Explain why and how marketers must adapt marketing strategies to
the global marketplace
AACSB: Reflective thinking

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.

Individual, Moderate, 5-7 minutes

Learning Objective 13.2: To understand how to decide whether to customize products for
global markets or sell standardized ones.
Learning Outcome 17: Explain why and how marketers must adapt marketing strategies to
the global marketplace
AACSB: Reflective thinking

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.”
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 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.

Individual, Moderate, 15-20 minutes

Learning Objective 13.2: To understand how to decide whether to customize products for
global markets or sell standardized ones.
Learning Outcome 17: Explain why and how marketers must adapt marketing strategies to
the global marketplace
AACSB: Application of knowledge

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.

Individual, Moderate, 10-15 minutes

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 Learning Objective 13.2: To understand how to decide whether to customize products for
global markets or sell standardized ones.
Learning Outcome 17: Explain why and how marketers must adapt marketing strategies to
the global marketplace
AACSB: Application of knowledge

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.

Individual, Moderate, 15-20 minutes

Learning Objective 13.1: To understand how to study the values and customs of different
cultures in order to develop effective marketing strategies.
Learning Outcome 17: Explain why and how marketers must adapt marketing strategies to
the global marketplace
AACSB: Application of knowledge

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.

Individual, Moderate, 15-20 minutes

Learning Objective 13.3: To understand how to identify global marketing opportunities.
Learning Outcome 17: Explain why and how marketers must adapt marketing strategies to
the global marketplace
AACSB: Application of knowledge

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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.

Individual, Moderate, 60-90 minutes

Learning Objective 13.3: To understand how to identify global marketing opportunities.
Learning Outcome 17: Explain why and how marketers must adapt marketing strategies to
the global marketplace
AACSB: Application of knowledge

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.

Student responses will vary. 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.

Individual, Moderate, 60-90 minutes

Learning Objective 13.3: To understand how to identify global marketing opportunities.
Learning Outcome 17: Explain why and how marketers must adapt marketing strategies to
the global marketplace
AACSB: Application of knowledge

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.

Student responses may vary. 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.
Copyright © 2015 Pearson Education
 Individual, Moderate, 25-30 minutes
Learning Objective 13.3: To understand how to identify global marketing opportunities.
Learning Outcome 17: Explain why and how marketers must adapt marketing strategies to
the global marketplace
AACSB: Application of knowledge

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.

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.

Individual, Moderate, 15-20 minutes

Learning Objective 13.1: To understand how to study the values and customs of different
cultures in order to develop effective marketing strategies.
Learning Outcome 17: Explain why and how marketers must adapt marketing strategies to
the global marketplace
AACSB: Reflective thinking

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.

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.

Individual, Moderate, 60-90 minutes

Learning Objective 13.1: To understand how to study the values and customs of different
cultures in order to develop effective marketing strategies.
Learning Outcome 17: Explain why and how marketers must adapt marketing strategies to
the global marketplace
Copyright © 2015 Pearson Education
 AACSB: Application of knowledge

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.

Instructor’s Discussion
This exercise utilizes the analysis of secondary data in studying the values and lifestyles of
consumers in another culture.

Individual or Group, Moderate, 90-120 minutes

Learning Objective 13.2: To understand how to decide whether to customize products for
global markets or sell standardized ones.
Learning Outcome 17: Explain why and how marketers must adapt marketing strategies to
the global marketplace
AACSB: Application of knowledge

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.

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
Copyright © 2015 Pearson Education
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.

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.)

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
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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?

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.

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.
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CASE COMMENTS

Case: LG Mobile/LG Electronics MobileComm USA

“Before you text, give it a ponder”

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.”

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