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Universidad De Navarra Facultad De Comunicación UNIVERSIDAD DE NAVARRA FACULTAD DE COMUNICACIÓN CONVERGENCE AND DIVERGENCE IN CONSUMER BEHAVIOR CONSEQUENCES FOR GLOBAL MARKETING AND ADVERTISING MARIEKE DE MOOIJ DIRECTOR: ANGEL ARRESE Tesis Doctoral presentada para optar al grado de Doctor en Comunicación Pamplona, 2001 ii Contents Contents Page number Chapter 1: Introduction 1.1. Problem description 1 1.2. Methodology 2 1.3. Structure 3 1.4. Main challenge 4 1.5. Process and Acknowledgements 4 Chapter 2: Literature 2.1. Standardization versus adaptation 6 2.1.1. The debate 7 2.1.2. The conditions for successful standardization 11 2.1.3. Global communities 12 2.1.4. Empirical studies 15 2.1.4.1. Surveys among managers 15 2.1.4.2. Effect of standardization on performance and ROI 18 2.2. Convergence-Divergence 19 2.2.1. Convergence theory 21 2.2.2. The macro-micro dichotomy 21 2.2.3. The macro-micro dichotomy defined 24 2.2.4. Forms of convergence 25 2.2.5. Convergence-divergence in consumer behavior 26 2.2.6. Convergence-divergence in advertising practice 27 2.2.7. Empirical studies of convergence-divergence 28 2.3. Culture and values 29 2.3.1. Culture defined 30 2.3.2. Dimensions of culture 31 2.3.2.1. Kluckhohn and Strodtbeck: Five value orientations 32 2.3.2.2. Hall: High and Low Context 32 2.3.2.3. Hofstede: Five dimensions of national culture 33 2.3.2.4. Schwartz: Seven value types or motivational domains 38 2.3.2.5. Smith and Trompenaars: Seven value dimensions 39 2.3.2.6. Choice of model 39 2.3.3. Values 41 2.3.3.1. Values are stable 43 2.3.3.2. Value domains 46 2.4. Advertising, Culture and the Consumer 47 2.4.1. Advertising and culture 48 2.4.2. The search for a theoretical framework 50 2.4.3. The concept of the rational consumer 53 2.4.4. The intermediary variables 53 iii 2.4.4.1. Attitudes 53 2.4.4.2. Lifestyle 54 2.4.4.3. The concept of self and personality 56 2.4.5. Processes 57 2.4.5.1. Motivation 57 2.4.5.2. Emotion 58 2.4.5.3. Information processing 59 2.4.5.4. Decision-making 60 2.4.6. Consumer behavior domains 63 2.4.6.1. Consumption, ownership and usage across cultures 63 2.4.6.2. Diffusion of innovations 64 2.4.6.3. Complaining behavior 67 2.4.6.4. Brand loyalty 68 2.4.6.5. Responses to advertising 68 2.4.6.6. Media usage 69 2.5. Conclusions 70 Chapter 3: Adopting a cross-cultural research methodology 3.1. Methodology 72 3.1.1. Cross-cultural comparative research 72 3.1.2. Variables used in cross-cultural consumer research 74 3.1.2.1. National income 75 3.1.2.2. Indirect measures of national income 76 3.1.2.3. Cultural values 78 3.1.3. Level of analysis and data types 79 3.1.3.1. Level of analysis 80 3.1.3.2. Data types 81 3.1.3.3. Macro- and micro-level data 82 3.2. Choice of methodology 83 3.2.1. Sources 83 3.2.2. Groups of countries 84 3.2.3. Measuring convergence-divergence 85 3.2.4. Measuring relationships 85 3.3. Choice of independent variables 86 3.3.1. Interdependence of variables 87 3.3.2. Income 88 3.3.3. Cultural variables and Climate 89 3.3.4. Socio-demographic indicators 92 3.4. Hierarchies and product constellations 96 3.4.1. Hierarchies 96 3.4.2. Product constellations 97 3.5. Data and data sources 98 3.6. Conclusions 99 iv Contents Chapter 4: Convergence-divergence 4.1. The macro-level: Socio-economic variables 102 4.1.1. National income 103 4.1.2. Urbanization 104 4.1.3. Education 104 4.1.4. Health 105 4.1.5. Housing 106 4.1.6. Women: Work and Education 107 4.2. Communication and technology 108 4.2.1. Telephone main lines 109 4.2.2. Passenger cars 110 4.2.2.1. Number of cars owned 112 4.2.2.2. Type of car owned 113 4.2.2.3. Preference of new cars over second hand cars 113 4.2.2.4. Attitudes to technology and buying influence 114 4.2.3. Television 114 4.2.3.1. Income and culture to explain variance 115 4.2.3.2. Numbers of TV sets and VCR penetration 116 4.2.3.3. Viewing time 116 4.2.4. Radio 117 4.2.5. The press 118 4.2.5.1. Newspapers 118 4.2.5.2. Book readership 121 4.2.6. Advertising expenditures 122 4.3. The structure of private consumption 123 4.3.1. Food 125 4.3.2. Clothing and footwear 127 4.3.3. Fuel and power 127 4.3.4. Health and medical care expenditures 128 4.3.5. Transport and communications 129 4.3.6. Leisure and entertainment 129 4.3.7. Furniture, furnishing and household equipment 129 4.4. Food, beverages, alcohol and cigarettes 130 4.4.1. Food 131 4.4.1.1. Processed food 132 4.4.1.2. Fresh fruit and groceries 133 4.4.2. Beverages 134 4.4.2.1. Mineral water and soft drinks in Europe 136 4.4.3. Cigarettes and alcohol 137 4.5. Consumer electronics 138 4.5.1. The communication means of the new economy 139 4.5.1.1. The Internet in Europe 139 4.5.2. Consumer electronics: Audio 142 4.5.3. Household appliances 143 4.6. Personal and household products 144 4.6.1. Personal products: Watches and Cameras 144 4.6.1.1. Watches 144 v 4.6.1.1.1. Number of watches owned 145 4.6.1.1.2. Watch brands 145 4.6.1.2. Cameras 146 4.6.2. Personal products 147 4.6.2.1. Personal (care) products 147 4.6.2.2. Personal care products in Europe 148 4.6.3. Luxury products 149 4.6.4. Household cleaning products 151 4.7. Finance 152 4.7.1. Credit cards 152 4.7.2. Insurance and investments 153 4.8. Values 154 4.8.1. General life satisfaction 154 4.8.2. World Values Survey: Comparison Worldwide and Europe 155 4.9. Summary of findings 156 4.9.1. Convergence-Stability-Divergence 156 4.9.2. Heterogeneity versus Homogeneity 158 4.9.3. The time factor 159 4.9.4. Patterns of convergence and divergence 160 4.9.4.1. Convergence masks diversity or divergence 160 4.9.4.2. Convergence 161 4.9.4.3. Convergence, stability, divergence and crossover 162 4.9.4.4. Thresholds of convergence 163 4.9.4.5. Parallel change 164 4.9.4.6. Divergence 165 4.9.5. What is newest changes fastest 166 4.9.6. No value change 167 4.9.7. Hierarchies of explaining variables 168 4.10. Conclusions 169 Chapter 5: Consequences for theory and practice 5.1. Consequences for consumer behavior theory 170 5.1.1. Culture and values: Value domains 171 5.1.1.1. Purity 171 5.1.1.2. Locus of control 173 5.1.1.3. Status 176 5.1.1.4. Active-passive in leisure: Sports and Art orientation 178 5.1.1.5. Dependence and harmony 179 5.1.1.6. Quality of life 180 5.1.2. The economic environment 182 5.1.2.1. The concept of the rational consumer 182 5.1.2.2. Engel's law 183 5.1.3. The intermediary variables 183 5.1.3.1. Attitude 183 5.1.3.2. Lifestyle 186 5.1.4. Processes 186 5.1.4.1. Motivation 186 vi Contents 5.1.4.2. Decision making 188 5.1.5. Consumer behavior domains 190 5.1.5.1. Diffusion of innovations 190 5.1.5.2. Media behavior 192 5.2. Consequences for practice 194 5.2.1. Stages of global market development 195 5.2.2. Branding strategies 196 5.2.3. Market research 197 5.2.4. Market segmentation by cultural values 198 5.2.4.1. Cosmetics 199 5.2.4.2. Passenger cars 200 5.2.5. Public policy and culture analysis 201 5.3. Conclusions 202 Chapter 6: Conclusions 6.1. The myths of global marketing 204 6.1.1. The myth of convergence 204 6.1.2. The myth of global advertising 206 6.1.3. The myth of global communities 207 6.1.4. The myth of culture-free products 208 6.1.5. The myth of the new media 209 6.2. Culture and consumption 210 6.2.1. Product categories are culture-specific 211 6.2.2. Explaining variables operate in hierarchies 211 6.2.3. Value domains 212 6.3. Culture and consumer behavior 212 6.3.1. The rational consumer and the role of income 212 6.3.2. Attitudes, motives, lifestyle and culture 213 6.3.3. Decision making behavior is not universal 213 6.3.4. Diffusion of innovations 214 6.3.5. Media and advertising 214 6.4. Consequences for practice 214 6.4.1. Consequences for strategy 214 6.4.2. Consequences for market research 215 6.5. Recommendations for further research 215 References 217 Appendix: Tables 235 Summary 303 Sumario (summary in Spanish) 307 Samenvatting (summary in Dutch) 313 CHAPTER 1 INTRODUCTION The central question of this dissertation and its underlying research is: Are consumers worldwide becoming alike or will they remain different? The answer is relevant for international marketing and advertising.
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