Cross-Cultural Consumer Behaviour. A comparison between Germany and the U.S.

Seminar paper from the year 2004 in the subject Business economics - Offline Marketing and Online Marketing, grade: 1,0, Nürtingen University, language: English, abstract: The study of consumer behavior is about much more than just people buying things. It is about the study of 'why' people buy things, about their needs and desires. Possessions influence the way people feel about themselves and on the other hand, people's culture, lifestyle and social settings influence their purchasing decisions. 'Culture is the lens through which people view products' (Solomon, 1999, p.495). Today, almost all major companies are marketing their products beyond their original homeland borders. The question is generally not whether to market a brand in other countries but rather how to do it (Schiffmann, 2003). The field of consumer behavior is young and dynamic. In order to understand why people buy certain products or services, marketers must understand the differences between the consumers of different cultures - 'cross-cultural' differences. Especially in times of globalization and internationalization it is very important to develop effective marketing strategies for foreign markets, to define consumption motives, goals and desires. Communication and advertising messages should then be adapted accordingly to the specific values of particular cultures. Sensitivity towards these cultural differences can provide sales- and profit opportunities (Schiffmann, 2003). However this sensitivity can only come from understanding the underlying dimensions of culture. The key for success and the challenges to face for companies in any business will be to constantly watch and adapt to the changing cultural values, changing consumption patterns and lifestyles. To write about the 'American' or 'European' consumer might be challenging in some way, because the general theories about sociological or psychological influences on consumer behavior are common to all Western countries. On the other hand, the ways in which people live their consumption life can already vary greatly within one country only. Thus, one could assume that numerous larger differences exist between the citizens of different nations. 'The United States is, without a doubt, the most important country to understand, yet it is the most misunderstood country in the world' ('Release of the Special Issue of the USA 2002', 2002). Because of this, the risk of missing the American target is high. Vice versa, many Americans miss the target in operating effectively in foreign countries (Ting-Toomey, 1999). [...]