International Consumer Behavior the study of convergence and divergence in different cultures

1. CORPISM-08/02
International Consumer
Behavior
Week 3: Convergence &
Divergence
Professor Ethan Chazin
1

2. Cool Stuff

5. The Consumer Instinct

6. Convergence Theory

7. Nations are becoming
increasingly alike despite
different cultures and
histories and diverse political
& economic systems.

9. • Dependence on science & tech.
• Popular attitudes.
• Systems of political & economic control:
– Monopolistic banking industries, increase in
billionaires, PACs, etc.
• Social media & www (interconnected world.)
• Expansion in urban post-industrial centers (The
Capital, Hunger Games)
• Industrialization & modernization creating a
universal civilization is a fallacy & product of
Western thinking.
The Chazin GroupThe Chazin GroupConvergence Due to…

11. Modernization

12. • Mass Education.
• Urbanization.
• Industrialization.
• Bureaucratization.
• Rapid Communication, Transportation.
• Cultural Homogeneity.
The Chazin GroupThe Chazin GroupSocietal Characteristics

13. Dimensions of
Individual
Modernity
Alex Inkeles &
David Horton
Smith

14. • Openness to new experiences.
• Readiness for social change.
• Disposition to form/hold opinions and
acknowledge differences in opinions.
• Information
• Sense of time.
The Chazin GroupThe Chazin GroupTheir 10 Dimensions

15. • Control of environment.
• Orientation toward planning.
• Calculability versus trust.
• Educational & Occupational aspirations.
• Sense of dignity.
• Respect for others.
The Chazin GroupThe Chazin GroupTheir 10 Dimensions

16. All developed nations that
can be considered modern
using these dimensions are
from a European tradition
(except Japan.)

17. Pre-Modern Modern Modern

18. • Agriculture as primary means to sustain
life.
• Households 3 generation extended
families.
• Feudal societies (land-owner, nobility)
• Linear time orientation.
The Chazin GroupThe Chazin GroupPre-Modern

19. • Increased urbanization.
• Nuclear family.
• Mass production.
• Linear time orientation.
The Chazin GroupThe Chazin Group Modern

20. Post-Modern

21. • Most professionals work with information.
• We live in a Digital World (the Cloud)
• Everyone’s connected online.
• Manipulation of gene-sequencing, genomes.
• “In post-modern society, emphasis on
economic achievement is giving way to an
increasing emphasis on quality of life.”
(Inglehart)
The Chazin GroupThe Chazin GroupPost-Modern

25. Micro/Macro
Levels of
Convergence

27. • Macro information includes Gross
Domestic Product (GDP), Gross
National Income (GNI) and growth in
production & consumption.
• Macro environment includes the
political, economic, legal social,
cultural, technological dimensions.
The Chazin GroupThe Chazin GroupMicro vs. Macro

28. • Macro level measures of economic
development :
–GNI per capita, consumption,
transportation, communication
facilities, urbanization, capital for
investment, technology, media.
The Chazin GroupThe Chazin GroupMeasures of Macro Econ

30. K
What do YOU think?

31. Convergence/Divergence in
Consumer Behavior

32. • At macro & micro level convergence & divergence
both take place and is strongest in economically
homogenous regions (like Europe.)
• Even in these regions only a few incidents happen.
• Micro level entails what people do with the
products they own. (Ex. Penetration of TV
ownership in Europe but viewing time and habits
differ drastically.)
• The assumed strongest influence on
consumer behavior is disposable
INCOME!
The Chazin GroupThe Chazin GroupC/D in Consumer Behavior

35. Assessing National Wealth

41. • The wealthier a nation becomes, the more
influential culture is on consumption and
consumer behavior.
• Higher levels of wealth do NOT change
traditional values.
The Chazin GroupThe Chazin GroupNation Wealth

42. • Household size (# people per house) varies
by country – from 2.13 in Sweden to 6.7 in
Pakistan.
• In lower income cultures, household sizes are
larger.
• Age at which women marry varies greatly.
• Women in all cultures have traditionally
performed roles of mother, career and home
provider.
• Women entering the workforce in increasing
numbers.
The Chazin GroupThe Chazin GroupHousehold & Family

43. • Western approach to categorize people by
wealth.
• As wealth spreads globally, disposable
income less effective means of measuring
consumers.
• Other categories such as YUPPIES, DINKs
are required.
• American 3 tier structure (although very
simplistic) is most often used to categorize
people in developed nations (Upper Class,
Middle Class, Lower Class.)
The Chazin GroupThe Chazin GroupSocial Class

44. • Ethnic group defines as being culturally &
physically different from the dominant group
of a society.
• Ethnic minorities become powerful consumer
groups to market to.
• Examples abound: Native Americans,
Aborigines, Gypsies, African Americans,
Turkish Germans, French Italians, etc.
The Chazin GroupThe Chazin GroupEthnicity

45. The 21st Century
French Consumer

47. Engel’s Law

50. The “Rational”
Consumer