CORPISM-08/02
International Consumer
Behavior
Week 3: Convergence &
Divergence
Professor Ethan Chazin
1
Cool Stuff
The Consumer Instinct
Convergence Theory
Nations are becoming
increasingly alike despite
different cultures and
histories and diverse political
& economic systems.
• 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…
Modernization
• Mass Education.
• Urbanization.
• Industrialization.
• Bureaucratization.
• Rapid Communication, Transportation.
• Cultural Homogeneity.
The Chazin GroupThe Chazin GroupSocietal Characteristics
Dimensions of
Individual
Modernity
Alex Inkeles &
David Horton
Smith
• 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
• 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
All developed nations that
can be considered modern
using these dimensions are
from a European tradition
(except Japan.)
Pre-Modern Modern Modern
• 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
• Increased urbanization.
• Nuclear family.
• Mass production.
• Linear time orientation.
The Chazin GroupThe Chazin Group Modern
Post-Modern
• 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
Micro/Macro
Levels of
Convergence
• 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
• 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
K
What do YOU think?
Convergence/Divergence in
Consumer Behavior
• 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
Assessing National Wealth
• 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
• 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
• 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
• 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
The 21st Century
French Consumer
Engel’s Law
The “Rational”
Consumer
Consumer behavior week3_condivergence
Consumer behavior week3_condivergence
Consumer behavior week3_condivergence
Consumer behavior week3_condivergence
Consumer behavior week3_condivergence
Consumer behavior week3_condivergence

Consumer behavior week3_condivergence

  • 1.
    CORPISM-08/02 International Consumer Behavior Week 3:Convergence & Divergence Professor Ethan Chazin 1
  • 2.
  • 5.
  • 6.
  • 7.
    Nations are becoming increasinglyalike despite different cultures and histories and diverse political & economic systems.
  • 9.
    • Dependence onscience & 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.
  • 12.
    • Mass Education. •Urbanization. • Industrialization. • Bureaucratization. • Rapid Communication, Transportation. • Cultural Homogeneity. The Chazin GroupThe Chazin GroupSocietal Characteristics
  • 13.
  • 14.
    • Openness tonew 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 ofenvironment. • 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 nationsthat can be considered modern using these dimensions are from a European tradition (except Japan.)
  • 17.
  • 18.
    • Agriculture asprimary 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.
  • 21.
    • Most professionalswork 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.
  • 27.
    • Macro informationincludes 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 levelmeasures 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.
  • 31.
  • 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.
  • 41.
    • The wealthiera 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 approachto 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 groupdefines 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.
  • 47.
  • 50.