Leibniz Universität Hannover

Wirtschaftswissenschaftliche Fakultät

Institut für Marketing und Management

Prof. Dr. Klaus-Peter Wiedmann

Betreuer: Dipl.-Ök. Stefan Behrens

Lektion:

International Marketing Cultural differences in international consumer behavior (based on Wal-Mart example)

Verfasserin:

Julia Zaroubina

Matrikelnummer: 2960090

23. Januar 2013

Contents

Introduction

1. Practical Application of Theories

1.1. Culture’s role in international consumer behavior

1.2. Material culture and its influence on consumer behavior

1.3. Language as a key to cultural differences in international marketing

1.4. Reference groups impact on consumer behavior and international growth strategy

2. Managerial Implications

2.1. A-B-C-D Paradigm

2.2. Diffusion theory and adaptation process

2.3. Self-reference criterion

2.4. Culture and marketing mix

2.5. Cross-cultural comparison

2.6. Recommendations

Conclusion

Introduction

Nowadays every company which succeeds in its home-market is going to become international. All these organizations hope to make their best in other countries, to find new consumers and maximize profit. Global market can give your company a massive income or lead to losses. It depends on enormous number of factors, which should be taken in account. However, it is one crucial and complicated parameter influencing the whole international marketing strategy - cultural differences.

Buyer behavior and consumer needs are much ruled by cultural norms and settings. Companies who did not care about making qualified cross-cultural research beforehand were defeated and lost their money, time and sometimes even reputation. Prior to become international you should analyze countries consumer’s mindsets well. It is too risky to invest in international growth marketing strategy without good knowledge of cultural environment. This factor effects the way of distribution, package design and size, name of product, its price and promotion. It is seen that cultural differences influence the global marketing mix program.

International consumer behavior topic is really difficult and laborious, because in every situation you should take in mind a number of cultural characteristics. Even if you have data about some cross-cultural research made in a region of your interest, you should interpret it on the assumption of company’s field of business.

In this paper, by using the example of Wal-Mart, will be described and analyzed how cultural differences influence on international growth strategies. The main topic of this study is cultural differences place in international consumer behavior. It is planned to achieve several goals:

• To find out elements of culture effecting international consumer decision making process;

• To verify what factors played a big role in Wal-Mart international growth strategies in different countries;

• To figure out how these cultural parameters worked and influenced the international consumer behavior in Wal-Mart case;

• To review the basic Hofstede cultural indexes in relation with Wal-Mart future growth strategy;

• To characterize culture of the main countries which markets are going to be entered by Wal-Mart;

• To make some recommendations on Wal-Mart international growth strategies

This paper consists of 2 parts: Practical Application of Theory, where the main characteristics of culture and their impact on consumer behavior in Wal-Mart case will be presented, and Managerial Implications, where working international marketing theories are going to be described and analyzed on the base of current example.