Differences in cross-culturalconsumer behaviour and

consequences for branding

Dr. Ivana FirstUniversity of Rijeka Agios Nikolaos, 7th July

2011.

Istr

aži

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o p

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?

Does culture influences consumer

perception of brands?

Wh

at

is a

bra

nd

?Sirup with soda

TobaccoPure alcohol

Hatch and Rubin, 2006

Consumers are willing to pay 37% price premium on a branded product over the same quality private label.

WHY?

Bra

nd

be

ne

fits

Function Benefit

Quality guarantee

Reducing risk, Reducing time

Community belonging

Bonding, familiarity relationship

Creating one’s self identity

Personalising one’s choice

Self - fulfilment Ethical and social responsibility confirmation

Keller, 2003; Kapferer, 2004; Cova i Pace 2006; McAlexander, Schouten, i Koenig 2002; Tungate 2005; Escalas i Bettman 2003; Fournier 1998. Muniz and O’Guinn, 2001

New product

is created

Marketers decide on desired brand

identity

Brand identity is communicated to

consumers via vision, culture,

positioning, personality,

relationship and presentation

Brand image is absorbed

and accepted

by consumers

The Traditional View of Brand Meaning Creation

Brand manager instigates dialogue

New product is created Consumers enter

dialogue about brand image

Central pool of meanings Creatives and

agency enter dialogue about

communicationsBrand

consultants enter dialogue about brand identity

“Pool of Reality” model of Brand Image Creation

Blythe 2007

Cu

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S R2

R3KR1

KR2

KR3

R1 M1

M2

M3

C

S = sender of communication «C»R = recipient of communicationK = knowledge base of recipientM = meaning ascribed to communication

Berthon, Pitt, and Campbell 2008, p. 3.

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Cultural dimensions Brand benefits/meanings

Collectivism

Uncertainty Avoidance

Power Distance

High quality, safety, traditionRisk, adventure, innovation

Power, admirable, class

Approachable, equal

Efficiency, success, progress

Belonging, network, sacrificesIndividual, autonomy, freedom

Masculinity

+

+

+

+

-

-

-

Cu

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ue

nc

e o

n b

ran

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g

Love, harmony, care-

Cu

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g

EXCERSISE

What does Coca-cola mean to you?

Where do you come from?Do you like Coca-cola?

Me

tho

do

log

ica

l Co

ns

ide

rati

on

sCountries

Brands

0

20

40

60

80

100power distance

individuality

masculinity

uncertainty avoidance

Austria

Finland

India

USA

Qu

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Re

su

lts

Re

su

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: S

ym

bo

lic Im

ag

es

0%

20%

40%

60%

80%

100%

Finland India Austria UnitedStates

Coca-Cola

Google

Nike

Nokia

Toyota

Qu

alit

ati

ve

Re

se

arc

h:

Re

su

lts

0 4 8 12

Refreshing/cooling/freshNot healthy/no nutrition value

Cold/cool/chilled/chillingChristmas/Santa Clause/

Sweet/sugar/not soarGlobal/not local

Warm summer/hot dayAmerican/American lifestyleFizzy/carbonated/sparklingEnergetic/keeps me going

Big/large/hugeExciting/not boring/not serious

Recognizable/familiar/identifiableOpening bottle

Traditional/classic/originalBonding with friends/parties/fun

Not natural

Finland India US Austria

Qu

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: R

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s Brand Meaning

Austria(1)

Finland(2)

India(3)

United States (4)

F(3,354

)

Partial

η2Refreshin

g -.287 (1.088)3 .039 (.800)3 .353 (.910)1,2

-.036 (1.113) 3.69* .030

Globally recognised .161 (.892)4 .119 (.914) -.179 (1.155)

-.239 (1.031)1 5.03** .041

Unhealthy .359 (1.06)2,3,4 .033 (.783)1,3-369 (1.04)1,2 -.187 (.950)1 8.71** .069

Christmas .400 (.96)2,3,4 -.190 (.979)1 -.261 (.965)1 -.033 (.958)1 9.17** .072

Classic -.346 (.932)2,4 .551 (.736)1,3

-.631 (1.00)2,4 .526 (.707)1,330.7** .206

Energising .033 (1.070) -.173 (.938) .257 (1.002) -.111 (.914) 2.17 .018Bonding with friends b .324 (.942)3 .410 (.789)3,4

-.968 (.75)1,2,4 .045 (.865)2,330.4** .205

* p < .05 **; p < .01

Coca - cola

UA

CO

Qu

alit

ati

ve

Re

se

arc

h:

Re

su

lts

0 2 4 6 8 10 12 14 16

Gives answers/provides data

Fast/quick/high speed

Not old/new

World/worldwide/global

Powerful/potent/almighty

Life saver/basic necessity

No privacy/no freedom/omnipresent

Useful/helpful

Google logo

Happiness/satisfaction

Huge/extensive/not small

Not reliable

Easy to use/convenient/no problem

Search

Not stupid/not dump/not ignorant

Reliable/trustful

Creative

Finland India US Austria

Qu

an

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: R

es

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sGoogle

Brand Meaning

Austria(1)

Finland(2)

India(3)

United States (4)

F(3,

309)

Partial η2

Almighty

-.462 (1.011)3,4 -.196 (.916)3,4 .612 (.743)1,2

.370 (.876)1,2 10.76** .095

Helpful -.188 (1.293) .022 (.942) .066 (.755) .229 (.652) .596 .006Intrusive .247 (1.032)2,4-.156 (1.078)1 .135 (.837)4 -.392 (.85)1,3 3.674* .034

Inspired -.350 (1.08)3,4 -320 (.877)3,4 .475 (.695)1,2

.556 (.896)1,2 9.15** .082

Fun

-.455 (1.007)3,4 -.220 (.849)3,4 .703 (.87)1,2,4 .272 (77)1,2,3 17.18** .143

Global .199 (.986)2 -.328 (1.08)1,3 .229 (.785)2 -.139 (.995) 4.829** .045

Informative .083 (1.042)2

-.534 (1.05)1,3,4 .345 (.681)2 .273 (.847)2 5.43** .050

* p < .05 **; p < .01

PD

CO

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ion

In coclusion:

Culture influences :

a) consumer behaviour

b) consumer perception

Therefore:• It is important to get to know cultural differences.• Adjust marketing strategies to satisfy dominant

cultural values.

Thank you!

ifirst@efri.hr