Culture Aspects of Consumer Behavior Analysis - Case Study Example

? Case study analysis Case one: Japan to Apple’s iPhone: “No Thanks!” Introduction There are numerous lessons learned by Apple regarding the differences in consumer behavior and purchasing decision between the Japanese market and the market outside Japan. Apple hoped that the iPhone would attain high market share in Japan since due to faster 3G network and a touch screen. The Japanese consumers felt that they needed time to get used to the iPhone due to some features that were lacking. For instance, Japanese consumers generally enjoy advanced phone features like satellite navigation service, music player, digital camera and digital TV-viewing capability. The iPhone lacked the “emoji” which is a clip art that can be used in composing e-mails in order to make them more attractive. In addition, mobile phones in Japan allow the consumers to use the phone as train passes or debit cards. Apple learned that consumer behavior and purchasing decisions are influenced by the different values, beliefs and norms that are associated with the cultural market (Schiffman, Kanuk, L & Wisenblit, 2010). Apple has gained the knowledge that it is essential to gain acceptance for a culturally new product in foreign countries through developing a business strategy that enables the consumers to break with their own traditions and alter consumer-purchasing behavior (Blithe, 2008). Apple has learned that high-involvement, high-tech products share some features like microprocessors, but the advertisement must use detailed emotional appeals through visual images (Schiffman, Kanuk, L & Wisenblit, 2010). According to previous research on online presence, about 86 percent of Japanese companies kept a local identity with the (.jp) unlike more than 55 percent of US companies that used the global “.com” identity. Japanese consumers support and sustain the consumption of products associated with the country culture. It is evident that Japanese culture prefers visual images and appeal rather due to the need of making e-mails more attractive. Apple learned that different psychological and social factors influence consumer behavior in different countries. Personal perceptions, motives, personality and attitudes will impact on the consumer behavior while making a purchase decision (Wright, 2006). For instance, the motive of buying a mobile phone is different in Japan. While US consumers buy expensive and sophisticated mobile phones in order to satisfy the need of self-esteem and recognition, the Japanese mobile phone consumers see it as a necessity. Japanese consumers prefer the mobile phones that can at the same time be used as train passes and debit cards. Apple acknowledged that Japanese market is different from other countries since the consumers have positive perceptions about high quality products (Wright, 2006). Japan consumers enjoy mobile phones with digital TV-viewing capability, music player and digital camera. Accordingly, the attitudes of consumer influence the purchasing behavior since Japanese consumers created a negative attitude towards the iPhone. For instance, some consumers thought it will be difficult to get used to the iPhone since most mobile phones in Japan have standardized features. Consumers usually pay more attention to advertising messages and information that reinforces the already held attitudes towards the product. Japanese market is also unique due to personality traits and values of the consumers. Most of the consumers are introverts and social cohesion is emphasized in the society (Schiffman, Kanuk, L & Wisenblit, 2010). Differences in consumer behavior across cultures are evidenced in the product marketing mix strategy. The perceived product quality, design features and ease of use vary across cultures. Accordingly, marketers must vary their place of distribution depending on the dominant values and norms in the market (Wright, 2006). For instance, US consumers prefer making their purchases from supermarkets while in other cultures consumers prefer making their purchases from retail shops. The culture also influences the pricing strategy such as discounts, premium pricing and market entry pricing (Schiffman, Kanuk, L & Wisenblit, 2010). For instance, German consumers are price sensitive and consider them impulsive shopper. In some cultures, discounts and free samples influence the buying decision depending on the consumer’s attached value to the discount. Japanese consumers have strong values to personal duties to the family and prefer prize stability due to the closed worldwide view while compared with the US market consumers (Harrison, 2012). The family and other reference groups have strong influence on the consumption behaviors and purchase decision of an individual in Japan. Japanese society comprises of closely-knit families. Roles and status within the family determine the individual who makes the ultimate decision in purchasing a certain product (Wright, 2006). For instance, women have the role of purchasing household goods. The social class also determines the consumer behavior. Japanese market has high social classes that are created by huge disparity in wealth distribution, respect for the elders and low education levels (Blithe, 2008). The social class determines the product features that individuals within a certain social class seek. For instance, the wealthy prefer quality while the low-income social class prefer cheap products (Schiffman, Kanuk, L & Wisenblit, 2010). The culture determines how promotional mix communicates value and benefits to the target consumers. People from particular cultures such as European countries prefer watching television while people from American culture prefer reading newspapers to access information. The advertisement messages should consider the prevailing beliefs, motives and attitudes of consumers in order to facilitate interpretation and retention of the meaningful advertisement message by the consumer (Blithe, 2008). The marketing messages must not be offensive or insulting depending on the specific dominant religion. Religion also affects the products to be distributed in the certain market (Schiffman, Kanuk, L & Wisenblit, 2010). For instance, Shariah law forbids the charging of interest by banks thus all financial institutions operating in those markets must ensure their products are compliant with Islamic banking. Accordingly, it is inappropriate to use advertisements that contain pictures of pigs or sausages in Muslim countries like Russia. The marketing mix strategy must also cater for the educational levels in the country (Harrison, 2012). Countries with low levels of education prefer audio advertisements rather written copies. The labeling of products and instructions of use must be easy for the consumers to understand. For instance, it would be inappropriate to use British English in advertisement messages in as China. For instance, McDonald’s menu in Japan is localized and includes corn-soup and green tea milkshakes. Accordingly, McDonald implemented the wood-cut illustrations and softer deigns in order to appeal to the Sweden cultural market that have strong values of wood and outdoors (Harrison, 2012). The marketing strategy must consider the cultural aesthetics in the design of visual advertisement images. This will entail use of the country colors and music in order to attract the attention of the consumer. The background colors and images in the advertisement affect the consumers thought processes due to cultural values (Blithe, 2008). For instance, US consumers focus on product related claims as opposed to Taiwanese consumers that focus on the aesthetic appeal of the advertisement. Chinese consumers concentrate on the symbols rather than textual messages. Culture influences the perceptions of quality since aesthetics influence the brand image thus affecting the relationship between price and quality of the product (Schiffman, Kanuk, L & Wisenblit, 2010). Case two: Would Mickey Mouse Eat Shark’s Fin Soup? There are various lessons the Walt Disney Company learned about consumer behavior and purchasing decisions at Hong Kong Disneyland. The company has learned that there are various external factors that influence consumer behavior and purchasing decisions in Hong Kong. Though Disneyland wanted to entrench Chinese traditions in wedding banquets, environmental groups are against depletion of rare species such as hark and penguins. Disneyland learned that global issues such as need to conserve the environment, safeguard the endangered species and global politics can impact on consumer buying behavior and decisions. For instance, Hong Kong authorities stopped the shipment of 1,800 freeze-dried penguins in order to safeguard the penguins from distinction. Accordingly, changes in global social values such as new eating habits can influence the decision to buy a particular product. In addition, Disneyland learned that Chinese culture is different from Hong Kong due to differing norms, values and beliefs about the ecological environment and eating habits (Harrison, 2012). The Hong Kong consumers have positive perceptions and attitudes towards environmental conservation thus would be willing to stop consumption of food prepared from the shark and penguins (Schiffman, Kanuk, L & Wisenblit, 2010). There are various global issues may influence consumer behavior. One of the global issues that influence consumer behavior is the rapid changes in technology and information technologies. Technology has made it possible for consumers to access wide variety of goods through the internet and access huge volumes of information that is required in making the purchase decision (Blithe, 2008). Consumers use the internet to search for products that meet their price, quality and performance expectations. Accordingly, marketers use computer technologies in designing creative visual images that appeal to consumers thus increasing the likelihood of a purchase decision (Harrison, 2012). Another global issue that affects consumer behavior is global warming concerns. Numerous non-governmental organizations are currently involved in awareness of climate change in the society (Blithe, 2008). Consumers tend to have negative perceptions and attitudes towards brands that are associated with companies that produce high concentrations of greenhouse gases. Accordingly, consumers will prefer brands that are associated with green manufacturing processes and those that conserve the environment through recycling. Another global issue that influence consumer behavior is the ecological environment. Numerous laws and environmental pressure groups influence the type of goods produced in the market (Schiffman, Kanuk, L & Wisenblit, 2010). Environmental laws require the companies to provide information on their level of environmental protection and conservation activities. For instance, environmental pressure groups aim at safeguarding the depletion of rare natural resources and protecting endangered species of animals in the society (Blithe, 2008). Another global issue that will influence consumer behavior is racism. Consumers in some countries try to shun products that are associated with racist advertisements and other stereotyping. For instance, Black Americans will avoid purchasing products that are advertised using messages containing racial prejudices (Harrison, 2012). Global politics and political environment will influence the consumer behavior in deciding whether to buy products from other countries. Consumer will avoid products from countries that are considered dictatorial or countries that facilitate terrorism related activities. For instance, Israel consumers have negative attitudes and perceptions towards products from German due to the association with the Holocaust. Trade restrictions and tariffs affect the ability of consumers to purchase certain products while regional economic organizations create positive attitudes among the regional consumers on products emanating from the regional member countries (Schiffman, Kanuk, L & Wisenblit, 2010). The global economic environment will also influence the consumer behavior and purchasing decisions. Global economic crisis lead to slow down in production activities and reduction in consumer income thus negatively affecting the demand in global markets (Blithe, 2008). The economic crisis force consumers to seek cheap products and take more time in evaluating their purchase decision to due high perceive risk in the decision. Global taxation issues and trade cycles make consumers to buy products during particular times of the year. Accordingly, prevailing interest rates and exchange rate in the market hinder or facilitate trade thus affecting the consumer purchase decision. The global social environment will influence consumer behavior. The world has witnessed growth in subcultures that are associated with new consumption trends and lifestyles (Blithe, 2008). For instance, ethical issues affect the perceptions of consumers towards certain products while lifestyle trends have led to high demand for techno-savvy products (Schiffman, Kanuk, L & Wisenblit, 2010). Conclusion Culture influences consumer behavior and purchasing decisions. The culture also affects the marketing mix strategy. The customs, beliefs and values determine how individuals behave and assist in processing advertisement information. The attitudes, purchase motives and perceptions of consumers will influence the success of the product in a cultural market. Marketers must use cultural representations such as language and color in their promotional appeals in order to connect to the consumers through making a cultural reference. Consumers are comfortable buying products and services that correspond to the perceptions and attitudes. The marketing mix must consider the purchase motive and personality of consumers such as the lifestyle and social status. The pricing decision must consider the perceptions of consumers towards discounts, and the trade-off between premium prices and product quality. The cultural marketing mix must consider the place of distribution since some consumers prefer buying from supermarkets while other prefers buying from small shops. The marketing communication messages must be aligned with the cultural language and aired through the culturally preferred channels of communication. Accordingly, the impact of advertisement messages on religion should be considered. References: Blithe, J. (2008). Consumer behavior. London: Thompson Learning. Harrison, J.S. (2012). Foundations in strategic management. Cincinnati: South-Western. Keith, B. “Chinese delicacy has Disney in turbulent waters,” New York Times, June 17, 2005, C1, C7. Schiffman, L.G., Kanuk, L.L & Wisenblit, J. (2010). Consumer behavior, 10th ed. London: Pearson Education. Wright, R. (2006). Consumer behavior. London: Thompson Learning. Read More