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Consumer Behaviour

Notes A study reported by Rosabeth Moss Kanter of almost 12,000 managers around the world
("Transcending Business Boundaries: 12,000 World managers View Change," Harvard Business
Review 69, May-June 1991) found that although in every country, culture and corporation changes
were occurring, there is still no common culture of management. In fact, the views of managers
tend to relate more to their own country's culture and less to its geographic location.
Some experts argue that marketing strategies, particularly advertising, should be standardised
because this can result in substantial cost savings. The differences in cultural values across
countries make it difficult and a risky proposition. An ad for a beauty care product showing a
model wearing a short dress with very low neckline may be appealing in most Western cultures
but would be probably banned in most Muslim cultures.
Marketers often make the strategic error of assuming that since domestic consumers like a
product, consumers in other countries would naturally like it. Such a view is often referred to as
a "culturally myopic view." Companies have generally been successful in marketing abroad by
recognising local differences in consumer needs and customs. To accomplish this, such companies
had to learn cross-cultural acculturation, which means thoroughly orienting themselves to the
values, beliefs, customs, language and demographics of the new country. They developed
strategies to encourage members of the society to modify attitudes and possibly alter their
behaviours.

Example: McDonald's had a policy of adopting uniformity across global markets. After
facing problems, now it adopts products appropriate for particular cultures. When McDonald's
entered India, it had to make the most dramatic changes. Eighty per cent of the Indian population
is Hindu and they don't eat beef so there is no Big Mac (which contains beef). In its place there is
Big Maharaja, which contains mutton. Many Hindus and almost all Jains are strictly vegetarian
and for this segment McDonald's offers Vegetable Burgers. McDonald's also claims that only
vegetable oils are used. The menu also does not contain any product containing pork because a
sizable population in India is Muslim and considers it unclean.
What multinational advertisers are finding is that it is very difficult to assume anything when it
comes to cultures. While many believe that the world is getting smaller and that cultural diversity
will decline as is suggested by the adoption of Western fashions in many Asian countries, there
are others who are finding that differences between cultures remain firm. For example, some of
the European countries with similar values and purchasing behaviours were banded together in
a common market. This has not met expectations due to stereotypes, history and schooling.
Ad agencies are finding that to succeed in these markets they need to adapt fast otherwise local
ad agencies who have an understanding of local cultures will take away their clients. So these
agencies are increasing their consumer research efforts and localising their campaigns. They are
also paying particular attention to cultural nuances such as which hand one wears a wedding
ring on.
Most multinational companies in India are adapting their advertisements to local cultural
conditions.

Example: Pepsi and Coke are using models wearing Indian dresses and the music and
songs too portray Indian culture. Kellogg's managed to attract Indians to its cereals, despite the
fact that barely 3% of the country reported eating cereal in surveys. Kellogg's advertised the
benefits of a lighter and more nutritious morning meal and introduced flakes made of Basmati
rice, which is a premium aromatic rice.

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