A culture is the way of life of a people. There are cultural differences from country to country and usually major cultural variations among demographic groups within a nation’s political boundaries. Such differences may encompass different languages/dialects and always include a characteristic set/subset of norms and values.
Moreover, cultural differences aren’t limited to distinctive national or ethnic identities. There also are diverse cultural norms and values between generations, between different socioeconomic groups (working class, middle class, upper middle and upper classes), even between men and women. So, variations in norms, values and ‘lingo’ may exist even within the family unit.
In Hong Kong, the KFC slogan, “It’s finger lick in’ good” was translated as ‘Ear your fingers off.’
In Spain, the American brewer Coors hip phrase “Turn it loose'” was translated as “Get diarrhea.” Yes, really…
In Mexico, American Airlines catchphrase “Fly in leather,” completely overlooked the slang meaning of the Spanish word for leather (cuero) as “nude.”
Finally, there is the classic GM misstep in naming one of its cars Nova (which translates into Spanish as ‘it doesn’t go’) in the 1960s and 70s
Cultures are variably receptive to marketing messages
Marketing research, described in Part I of this blog article, underscores the following–
First, making simple cultural/demographic assumptions often results in companies underestimating the broader appeal of their products outside of conventional ethnic/other group boundaries.
Second, cultural preferences are learned/chosen over time and not inevitably determined by the ethnic identity of a person’s family of origin. Therefore, preferences for food, music, sports, food and fashion can be highly individual and not necessarily anchored in one’s cultural roots.
Third, the most likely place to find consumers with multicultural tastes are large metropolitan areas where diverse ethnic groups have a strong, broad impact on product and entertainment expenditures.
Chinese Marketing Culture
For decades, Western companies have sought to understand Chinese consumers. And with market research firms now tracking every sector in great detail—from luxury goods to healthcare products to the latest trends in e-commerce—a more sophisticated picture of the market is emerging.
But companies still have much to learn about the cultural gap separating the average Chinese consumer from his or her counterpart in the West—just as they have much to learn about the distinguishing cultural features of any other market, from Brazil to Nigeria to Indonesia. Such knowledge may not have been crucial in the heady days of the 1990s, when the Chinese economy was still emerging and opportunities seemed to be endless. But now that the market has grown and matured, expanding into China requires a deeper appreciation for the impact cultural tradition can have on consumer psychology.
“In the early days, you almost didn’t need a strategy—you could make money as long as you had connections or guanxi,” says Angela Lee, a professor of marketing at the Kellogg School and an expert on cross-cultural issues in consumer behavior. “But that’s not the case anymore. Now, those companies that have a genuine understanding of Chinese consumer culture are better placed to succeed.”
“Those who understand the nuances of Chinese consumer psychology have a better chance of long-term success.”
![]()
China’s economy will soon be the largest in the world. The increasingly middle class Chinese consumer responds best to soft sell marketing that emphasize collective rather than individualistic values.
IKEA and other large corporations have successfully used strategies that companies wanting to break into this vast market should consider adopting.
They include–
Focus on ‘product fit, price, location (there are many regional sub-markets in China), and promotional strategies that synch with the local culture;
Tailoring their marketing to the culture of each regional market, though that is only one among a number of key factors they consider;
Capitalizing on Chinese consumers’ reliance, first on TV, and, second, on word-of-mouth, for product selection. The Internet is a rapidly rising influence. The average Chinese consumer spends more time researching product choices before making a purchase than is the case for the average Westerner;
The increasing appreciation among Chinese consumers for products with aesthetic appeal and a corresponding growing demand among the Chinese upper middle and upper classes for high quality, luxury goods; and
Playing to the Chinese definition of shopping as entertainment, an enjoyable way to spend their leisure time.
But there are also other strategies that are needed to apply in order to market your products in China.
Create Useful Surveys. Once a company knows what questions to ask, it must carefully consider how to ask them. For example, market researchers in China still conduct surveys, but researchers have learned to adjust the scales to fit an East Asian context. A survey designed for a U.S. audience might ask consumers to rate a product on a scale of one to seven, but this turns out to be less informative in China or Japan. “In North America,” Lee says, “people tend to move toward the extremes, while in Asian cultures people tend to stay away from extremes—they see extremes as undesirable. People want to be polite; they believe in moderation. So if you give them a scale of one to seven, you will get a lot of fours, which isn’t very useful.” Procter & Gamble encountered this problem while doing market research in Japan; its solution was to use a six-point scale, which forced consumers to express a more definitive view of a product.
Understand the Importance of Hierarchy. Consider the paradox between savings and spending: while Chinese consumers have relatively high savings rates, they will also pay high premiums for certain luxury items, especially those that are used in public, like watches or mobile phones. “It’s a very hierarchical society,” Lee says, “and one way to distinguish oneself is through consumption.”
Chinese consumers also tend to invest heavily in their children, which often means paying up for things like baby formula and private tutors. Partly, this has to do with a major shift in the family structure. “China used to be the prototypical collectivistic culture, and parents were very respected by the children; but that is changing now because of the one-child policy,” Lee says. “The child has become more important in the family unit, with parents and grandparents all trying to help their children rise up in a fiercely competitive society.”
Understand That Opposites Can Coexist. Lee says East Asian cultures are more comfortable with the idea of two opposites coexisting. “It goes back to the difference between Aristotle and Confucius,” she says. “Western societies believe in logic—where something is either ‘A’ or not ‘A’—so dealing with logical inconsistencies causes’ great discomfort. East Asians are able to accept that something could be both ‘A’ and not ‘A’ at the same time. The yin and yang is the classic symbol of opposites coexisting.”
To see how this increased comfort with contradiction may be relevant for companies, consider product reviews. “American consumers tend to be more polarized,” Lee says. “When they read a positive review and a negative review, they will choose to believe either one or the other, because they like to have a single, consistent view of a given product.” Chinese consumers, by contrast, take a more nuanced approach by accounting for positive and negative reviews simultaneously.
Understand the Importance of Relationships. As a society, China places tremendous value on harmonious relationships—something marketers may wish to emphasize when crafting messages. “Individualistic societies value personal goals and accomplishments, and collectivist societies value group goals and accomplishments,” Lee says. “Chinese consumers may respond better to ads that place an emphasis on families or relationships, rather than those that put more stake in personal pride and autonomy.”
Prepare for Consumer Changes—but Do Not Ignore Tradition. Lee is quick to emphasize that Chinese consumer behavior is not a static phenomenon. “The Chinese consumer is probably evolving faster than consumers in other countries. So in one sense, it’s a significant challenge for companies to keep up.” Consumers with more disposable income are growing more sophisticated, the landscape changes frequently as new players enter the market, and urban areas continue to swell. “It’s a very dynamic market,” she says, “and it’s also highly adaptive,” which bodes well for long-term stability even as the country faces a stock market crisis and economic slowdown.
But this dynamism does not mean that Chinese tradition is obsolete. “The market will continue to change, but there are elements of consumer behavior that are rooted in the psychology of a culture, and recognizing that can make a big difference.”
Musayyab Ali
marketingassignment.docx
0
