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Consumer behavior week3_condivergence

  1. CORPISM-08/02 International Consumer Behavior Week 3: Convergence & Divergence Professor Ethan Chazin 1
  2. Cool Stuff
  3. The Consumer Instinct
  4. Convergence Theory
  5. Nations are becoming increasingly alike despite different cultures and histories and diverse political & economic systems.
  6. • 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…
  7. Modernization
  8. • Mass Education. • Urbanization. • Industrialization. • Bureaucratization. • Rapid Communication, Transportation. • Cultural Homogeneity. The Chazin GroupThe Chazin GroupSocietal Characteristics
  9. Dimensions of Individual Modernity Alex Inkeles & David Horton Smith
  10. • 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
  11. • 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
  12. All developed nations that can be considered modern using these dimensions are from a European tradition (except Japan.)
  13. Pre-Modern Modern Modern
  14. • 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
  15. • Increased urbanization. • Nuclear family. • Mass production. • Linear time orientation. The Chazin GroupThe Chazin Group Modern
  16. Post-Modern
  17. • 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
  18. Micro/Macro Levels of Convergence
  19. • 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
  20. • 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
  21. K What do YOU think?
  22. Convergence/Divergence in Consumer Behavior
  23. • 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
  24. Assessing National Wealth
  25. • 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
  26. • 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
  27. • 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
  28. • 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
  29. The 21st Century French Consumer
  30. Engel’s Law
  31. The “Rational” Consumer