Culture in Consumer Behaviour By Ray Bawania and Abhishek Chand
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Transcript of Culture in Consumer Behaviour By Ray Bawania and Abhishek Chand
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CULTURE AND CONSUMER BEHAVIOUR
Ray Bawania and Abhishek Chand
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Definition of Culture• “Culture is the collective programming of the
human mind.” Hofstede (1991) • Culture in this sense is a system of collectively
held values. Culture is everything that people have, think, and do as members of their society, which demonstrating that culture is made up of – Material objects– Ideas, values, attitudes and beliefs
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First of all• There is nothing good or bad about Culture. There are only
differences. • Understanding Cultural differences are often the determining
factor in success or failure in business
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Cultural Adaptation
• Cultural Adaptation is the process of “adjusting the native ways of thinking and behaviors to be consistent with the local culture” (Kotler, 1982).
• Adaptation Vs Standardization• You can either stick to your firms original
characteristics when expanding (standardization approach) or you can adapt to the new culture (adaptation approach).
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Lining Up in Different Countries - Canada
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Lining Up in Different Countries - India
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Lining Up in Different Countries - Philippines
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How Culture Dictates
Consumer Behaviour
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How McDonald’
s Has Understoo
d Local Culture
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Sample of McDonald’s Utilizing the
‘Glocalization’ Strategy
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The Cardboard
Box of Dreams
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Canadian Culture
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Culture can work For or Against Companies
• For:– If a Chinese company wants to expand into North
America it could take advantage of cultural celebrations like Halloween
• Against:– If an American company goes into China but ignores
the value of selling items targeted towards Singles Day
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Conclusion
• Most evidence shows that firms that expand need to use a strategy of cultural adaptation rather standardization
• A good example of this is McDonald’s – They have made significant changes on their products and service based on the local taste, values, custom, dining habits and language in the countries they operate in.
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So Are We All Still Buying from the Same Clown?
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QUESTIONS?
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Works Cited• Foscht, Thomas, et al. "The Impact of Culture on Brand Perceptions: A Six-Nation Study."
Journal of Product & Brand Management 17.3 (2008): 131-42. Web. 10 May 2016• Hofstede, G. (1991). Cultures and organizations: Software of the mind. London: McGraw-Hill.• Kelly, N. (2012, October 8). McDonald’s’ Local Strategy, from El McPollo to Le McWrap
Chèvre. Retrieved May 10, 2016, from https://hbr.org/2012/10/mcdonalds-local-strategy-from• Kotler P. (1982) Global Standardization-Courting Danger, The Journal of Consumer Marketing,
3 (2) spring.• Mohamed, K. (2014). Role of Cultural Adaptation in International Retailing. Journal of
Marketing & Management Research, 4(10), 1–9.• Mooij, Marieke, and Geert Hofstede. "Cross-Cultural Consumer Behavior: A Review of
Research Findings." Journal of International Consumer Marketing (2011): 181-92. Print.• Prahalad, C. K., & Lieberthal, K. (2003). The End of Corporate Imperialism. Harvard Business
Review, 81(8), 109-117.