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CADS 2000 Week 3 Notes

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Robyn Notetaker
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These notes go over material that will be on the next exam on Thursday, September 8, 2016.
Textile Industrial Complex
Ann Beth Jenkins Presley
Class Notes
Consumer, consumption




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This 9 page Class Notes was uploaded by Robyn Notetaker on Thursday September 1, 2016. The Class Notes belongs to CADS 2000 at Auburn University taught by Ann Beth Jenkins Presley in Fall 2016. Since its upload, it has received 4 views. For similar materials see Textile Industrial Complex in College of Health & Human Sci - Family, Consumer and Nutrition Sciences at Auburn University.

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Date Created: 09/01/16
Notes 8/30/16 CADS 2000 Main Idea: Consumer Behavior/ Consumer Consumption & Tipping Point  Between 1949 and 1969, the number of households in the U.S. with at least one TV set rose from less than a million to 44 million  The number of commercial TV stations rose from 69 to 566  Televisions of the 1950’s ranged in price from $129 to $1,295 - The average family income $3,300 - The average car cost $1,510 - The median home price $7,354  Television had an enormous impact on 1950s America  At the end of the decade, almost 2/3 of household owned a TV  Through TV shows, an image of America was formed  The 1950s has been dubbed the “Golden Age of Television” by many Ex: I love Lucy, Leave it to Beaver, The lone Ranger  The television commercial was born  The television commercial became, and still is, the most effective method of reaching consumers  The amount advertisers paid these TV stations and the networks rose from $58 million to $1.5 billion  Television forever changed politics  Political advertisers very quickly understood how powerful this new tool was  The next decade (television) saw the Kennedy-Nixon debates of the 1960 presidential campaign General Timeline - Increased SUPPLY of mass consumer goods - Increased DEMAND of mass consumer goods (Consumer Revolution) - Fueled changes in production - Democratization of goods (i.e. uniformity in products & appearance) - Spread to other countries & industries So where are we now??? Globalization What is Globalization? -is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology  This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world.  The worldwide movement toward economic, financial, trade, and communications integration  Globalization implies the opening of local and nationalistic perspectives to a broader outlook of an interconnected and interdependent world with free transfer of capital, goods World Trade Organization (WTO) - established 1995  Deals with the global rules of trade between nations  Its main function is to ensure that trade flows as smoothly, predictably and freely as possible International Monetary Fund-established 1945  Foster global monetary cooperation  Secure financial stability  Facilitate international trade  Promote high employment & sustainable economic growth  Reduce poverty around the world Globalization- is it new?  NO  For thousands of years, people-and, later, corporations-have been buying from and selling to each other in lands at great distances BUT… - Never at this speed! - In general, the 20 century saw unparalleled economic growth - But it wasn’t steady growth th  Wage growth during the 20 was amazing!  However, that really doesn’t tell the whole story What drives Globalization? Spread of Knowledge (and technology)  Workers move from one country to another to find jobs  Most often between developing countries  Might move back home and take skills they learned with them  But the spread of knowledge doesn’t make us all the same  How people buy and use technology and knowledge is influenced by environment and culture  Not all countries (or cities, even) have the same ownership and use of technology Trade and Policies - Developing countries increased their share of world trade: 19% in 1971 to 29% in 1999  Opening up economies  Domestically and Internationally  Openness international trade raised per capita income Movement of Capital (money)  Private investments and money flow to developing countries (esp. 1990s) Movement of People  Workers move from one country to another to find better jobs  Most often between developing countries  Might move back home and take skills they learned with them Other Impacts of Globalization - Globalization affects the environment, culture, political systems and economic development and prosperity, as well as the physical well-being of human beings in the societies around the world Poverty and Inequality Increasing???  Developing countries have made a lot of progress, though WHY??? - Life expectancy has increased BUT quality of life has not necessarily improved - Too many live in poverty Globalization in Developed Countries - Guess what? - Workers in advanced economics are worried about globalization, too - Threatened by job outsourcing to lower wage countries Is Emotion Tied to the term “Globalization?”  Some great with hostility and fear  Why?  Some have proposed that is has inequity between nations has gotten even worse with the current global economy Inward vs Outward  In 1970s and 80s, many developing countries focused only on domestic policies  For most, didn’t work out too well for them Usage of Term Globalization - Pretty common since 1980s - The EU (European Union) was formed in 1993 (In the planning for decades) - NAFTA (North American Free Trade Agreement) January 1, 1994 What is Brexit? - It is a word that has become used as a shorthand way of saying the UK leaving the EU –merging the words Britain and exit to get Globalization vs. Local Cultures  Globalization is welcomed by many because it allows people access to news goods and services  Local cultures, values and traditions can be undermined by introduction of foreign goods and influences  However, some worry about the impact on locally made products and those who produce them  Now, cultures are easily mixed  Culture flow occurs differently across the world  Global norms or practices are interpreted differently depending on the local culture (Remember this!)  Diversity itself has become a global value Concerns about Globalization - One of the big concerns about globalization of culture that is supposedly taking place is that it not only leads to a homogenization of world culture, but also that it largely represents the “Americanization” of world cultures - Examples of American companies on other countries’ cultural identity can be easily seen using food examples  First, food itself is in many countries as integral aspect of the culture  Second, restaurants can influence the mores and habits in societies where they operate  Coffee in Italy is more than a drink; it is part of the way of life and Italian customs  In the United States common for people to buy takeout coffee for drinking in the street or office  In Italy people usually prefer to relax and chat with peers while drinking coffee McDonaldization  Fast Food restaurants has come to dominate more and more sectors of American society as well as of the rest of the world Cocacolonization (or coca-colonization)  Refers to the globalization of American culture pushed through popular American products such Coca-Cola Influence and Dominance of U.S. Films & Entertainment Industry  A dominance of US customs and values are also present with regard to films and the entertainment industry more broadly  But if governments try to control, then is it censorship or just not trusting decisions of their citizens? Notes for CADS 2000 9/1/16 Professor Presley Global Monoculture What is global monoculture? - Global monoculture is the movement of the entire earth to becoming a single culture. - This is likely a Westernized culture - The idea that everywhere you go will be like everywhere else - Walking the streets of Beijing, Hong Kong, Venice, Paris, Barcelona, San Francisco, and Zurich becomes - Many societies, particularly indigenous peoples, view culture as their richest heritage, without which they have no roots, history or soul. Its value is other than monetary. To commodify Culture What is culture? What does it mean? How does it impact consumer behavior around the world? 1. Power Distance index (PDI) - The degree of inequality that exists- and is accepted- between people with and without power - A high PDI score indicates that a society accepts an unequal, hierarchical distribution of power, and that people understand “their place” in the system - A low PDI score means that power is shared and is widely dispersed, and that society members do not accept situations where power is distributed unequally 2. Individualism vs Collectivism (IDV) - Refers to strength of ties people have to others within their community - A high IDV score indicates weak interpersonal connection among those who are not part of a core “family” - In a collectivist society people are supposed to be loyal to the group to which they belong, and, in exchange, the group will defend their interests 3. Masculinity vs Femininity (MAS) - Refers to distribution of roles between men and women - In masculine societies, the roles of men and women overlap less, and men are expected to behave assertively - In feminine societies, there is a great deal of overlap between male and female roles, and modesty is perceived as a virtue 4. Uncertainty Avoidance Index (UAI) - This dimension describes how well people can cope with anxiety - In societies that score highly for Uncertainty Avoidance, people attempt to make life as predictable and controllable as possible - People in low UAI-scoring countries are more relaxed, open or inclusive - *Avoiding uncertainty is not necessarily the same as avoiding risk* 5. Pragmatic vs Normative (PRA) - Refers to degree to which people need to explain the inexplicable—strongly related to religiosity and nationalism - Generally, high PRA countries tend to be pragmatic, modest, long-term oriented, and more thrifty - Low-scoring countries, people tend to be religious and nationalistic 6. Indulgence vs Restraint (IVR) - Cultures with a high IVR score allow or encourage relatively free gratification of people’s own drives and emotions, such as enjoying life and having fun - In a society with a low IVR score, there is more emphasis on suppressing gratification and more regulation of people’s conduct and behavior, and there are stricter social norms A few thing to REMEMBER - Cultural norms play a large part in interpersonal relationships at work. - When you grow up in a certain culture, you take the behavioral norms of your society for granted, and you don’t have to think about your reactions, preferences and feelings provided that you don’t deviate too much from the central tendency in your society - However, when you step into a foreign culture, things suddenly seem different, and you don’t want to cause offense Culture can be defined as…. - The sum total of learned beliefs, values, and customs that serve to direct the consumer behavior of members of a particular society - Culture refers to the set of values, ideas, and attitudes that area accepted by a homogenous group of people and transmitted to the next generation - Culture can be viewed as society’s personality - Culture is made up of many things, including but not limited to: Roles, Beliefs, Values, Customs, Rituals The Invisible Hand of Culture -Each person perceives the world through their own cultural lens - Just because someone shares similar characteristics does NOT mean they have the same cultural beliefs or customs CULTURE - Culture determines what people wear and eat, where they reside and travel - Cultural values in the US are good health, education, individualism, and freedom - The influence of culture on buying behavior varies between and within cultures - Buying behavior varying from region to region Cross Cultural Analysis *Analysis that determines the extent to which the consumers of two or more nations are similar or different Comparison of Chinese and American Cultures - Americans highly value individuality - Chinese typically base their decisions on how they will be perceived by those around them - Consider family, friends, and colleagues first - Americans care more about how well things work than what image they project - China, a developing market, people use brands not only for their functionality but also to project social status Promotional Appeals - Humorous advertising: UK vs Greece - Sexual appeals: *Western Culture vs Muslim or Buddhist countries *South Asian cultures vs the US - Collectivist vs Individualistic ad appeals How to Measure Cross-Cultural Aspects 1. Judgements regarding the quality of a country’s products 2. Willingness to buy a country’s products 3. Ethnocentrism---willingness/unwillingness to buy foreign-made products 4. Perceptions of a country’s consumption culture 5. Acculturation---learning a new culture 6. Ethnic self-identification 7. National self-identification Culture is learned - Enculturation and acculturation - Language and symbols - Ritual - Sharing of culture Enculturation and Acculturation - Enculturation- the learning of one’s own culture - Acculturation- the learning of a new or foreign culture Acculturation: Dual Learning Process 1. Marketers learn everything relevant about the product/product category in the chosen market 2. Marketers must persuade/teach members of the chosen market to change traditional way of doing things and adopt the new product Language and symbols (verbal and non-verbal) - Without a common language, shared meaning could not exist - Marketers must choose appropriate symbols in advertising - Marketers can use “known” symbols for associations - A symbol may have many meanings which can also be contradictory - The advertiser must ascertain exactly what the symbol is communicating to its intended audience Culture Customization Examples - McDonald’s -Japan: Donald McDonald vs Ronald Mc Donald -Japan: Corn soup and green tea milkshakes - Sweden: Softer deign and woodcut packaging -France: McBaguette -Philippines: Rice and spaghetti as side dishes - Pizza Hut Casual Dining in China - Starbucks coffee in Europe


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