RELATIONSHIP MARKETING IN THREE CULTURES: DETERMINANTS,DIFFERENCES, & DISTANCE

ABSTRACT

This research investigates the differences in relationship marketing approachesemployed by television direct marketing in three different cultures, American,Japanese, and Chinese, and uses these differences as a basis for supporting theories ofglobalization or localization. Television marketing is a form of direct marketingbased on the most advanced technologies deployed in only developed countries whereinfrastructure of cable television, telephone, and credit institutions is well established.Such global technologies are often asserted as being the basis for an emerging globalconsumer culture that overrides local traditional cultures. Direct marketing dependson building a relationship with the consumer, in order to overcome the lack ofphysical contact with the products, or control over the products being viewed. Byexamining the details of this relationship building in three different countries, thisresearch will test the validity of assertions about convergence of consumer behaviordue to similar technologies and global products. Results have vital importance formarketers entering the emerging Chinese market, as a fundamental decisions aboutlocalization versus globalization must be addressed.

INTRODUCTION

Rapid growth in technology-based marketing channels around the world forcesmarketers to reevaluate issues surrounding globalization as it relates to and ischanged by these technologies. Products are marketed now through numerous directchannels around the world, but left unanswered is the lingering question: areconsumers becoming more homogeneous? The globalization of markets, observedby Levitt (1983), included a merging of consumer preferences and a standardizationof products on a world-wide scale. Eshghi and Sheth (1985), however, found thatconsumption patterns across France, Brazil, Japan, and the United States weremostly influenced by national and cultural factors. Even the firms held up asarchetypes of standardized global marketing, such as Coke and McDonald’s, havehad to make adjustments across cultures (Lynch, 1984). This is more true today thanever as McDonalds offers Red Bean Sundays in Hong Kong and TeriyakiMcBurgers in Japan. Yet technologies such as the Internet seem to be brining a levelof similarity to consumers and the marketing communication sent to them.

While technology-based channels allow rapid diffusion of products around theworld, it is at the point of sale where consumers’ concerns must be taken intoaccount. This research asserts that the existence of culturally based differences atthe point of sale can be quantified through close examination of direct homeshopping, where high technology and the need to match consumers’ expectations(though relationship development) meet.

Technology-based marketing channels have developed in Asia at a rapid pace.For example, the fastest growing geographic market for Web users is Asia with over100 million present users (Find, 2001) and the greatest potential number of totalusers. China has already surpassed Taiwan in total number of Web users (22 millionto 10 million) even though Taiwan’s usage rate is over 50 percent and China’s undertwo percent (Find, 2001, McCarthy, 2000). Such rapid growth draws attentioneasily, but the very technological base that makes growth of the Internet possible

also creates networks of telephone lines, televisions, and banking institutions—allenabling technologies of television shopping. Widespread technologies, such astelevision, may reveal just how similar consumers are becoming. After all,television technology is similar no matter where it is used.

Even with twenty years of steadily increasing international media and freemarkets, standardized marketing approaches do not dominate the Asian market. Yin(1999) found that 77 percent of sampled foreign firms advertising in China (PRC) usea partly localized strategy, while a further 12 percent use a fully localized strategy.She also found that foreign firms considered language localization the most importantadvertising component. Usunier (1996) points out that much of the observed culturalglobalization is based on the assumption that a modern lifestyle is represented by theAmerican way of life, where the world tunes into CNN for news and learns English inschools (Pennycook, 1994). True globalization, they both argue, occurs only whenthe flow of culturally specific artifacts ceases to be one way.

Opposition to the absolute standardization approach may suffer from a strawman fallacy, since Levitt was simply pointing out the flaws of an extreme localizationstrategy and no one seriously supports the idea that all markets everywhere can betreated as a homogeneous group (Ramarapu, Timmerman, & Ramarapu, 1999). Thespecific conditions of each market must be considered, as well as cultural factors,when adjusting a combination of local and global approaches. The dichotomyrepresented by standardization-adaptation is a continuum (Banerjee, 1994) wherethere are numerous possibilities depending on the specific market variables, andwhatever the combination a firm chooses, communication is the tool used.

Coordinating marketing communication, in any combination of standardized-adapted forms, so that concepts consumers receive as inputs about a firm’sproduct/service/brand are consistent is the central tenant of Integrated MarketingCommunications, IMC (Novak & Phelps, 1994; Schultz, 1991; Stewart, 1996).Through a cross-discipline coordination of the promotion-mix, consumers receivemessages that can be cognitively fit together to make a whole, as Schultz,Tannenbaum, and Robert (1993, p.47) wrote: Since consumers process informationusing a judgment approach, what the marketer says about a product or service mustfit with what is already stored in the customer’s head or is coming from outsidesources.

GLOBAL INTEGRATED MARKETING COMMUNICATION

Grein and Gould (1996) expanded IMC to the global context through GloballyIntegrated Marketing Communications, GIMC. Gould, Lerman, and Grein (1999)refined the GIMC definition to emphasize global coordination of marketingcommunications within the context of flexible response to the standardization-adaptation issue. Expanding on the communication emphasis, Duncan and Moriarty(1998) presented a marketing paradigm centered on communication, rather thanMcGarthy’s (1964) 4Ps. They argued that persuasion cannot no longer be the centerof marketing efforts, but instead interaction with the customer is required to createand maintain long-term relationships. Central to this perspective is that everything afirm does and does not do affects the brand relationship. Communication in thetwenty-first century cannot be opted out of. Interactivity for the modern marketer isrequired for establishing and maintaining a brand image.

Duncan and Moriarty’s (1998) communication-based model for managingrelationships recognizes the centrality of communication in marketing. From thisperspective, marketing communication level messages to consumers must bereconsidered in the context of the global reach of a firm’s communication efforts(both intentional and unintentional). The most basic issue resulting from this iswhether a global or local strategy should be adopted.

In the traditional physical marketplace, marketing communication was sent outto foreign markets through some combination of global and local strategies. Firmscould choose to limit or even completely ignore some, or all, foreign markets bysimply not communicating with them. The foreign consumer set, shown in Figure 1(square 1), could be completely controlled by decreasing or increasing intersection A,with an emphasis on a single domestic national marketplace. If a firm chose not tointeract with a foreign market, there was little negative effect, from thecommunication perspective, since a foreign consumer entering the marketplace for aproduct search (intersection B) simply would not find any information and would begenerally unaware of the firm and its brands. Increased globalization (Figure 1,square 2) led to firms purposefully communicating with chosen foreign consumerswho could search out a brand, intersection B, and find information and possibly evenhave interaction with the firm, intersection C. A global presence could lead toconsumers who were aware of the brand, through communications spilling over fromother markets or word of mouth, and seeking it out, but not finding any localpresence, intersection B. Such a result could have negative effects as a lack ofcommunication is sending a message to the consumer searching for information(Schultz et al., 1993).

With the maturing of interactive information technologies, foreign consumersreceive communications from the firm, even when not purposefully sent, and can seekout information in an enlarged space (Figure 1, square 3). The result is themarketspace where ignoring a foreign market, intersection D, simply ceases to exist asan option. All of this is framed in the universe if GIMC, where the firm plans andcoordinates marketing messages in order to maintain consistency of the marketingcommunications.

Figure 1. Changes in marketing communication sets

InteractivityCProduct/Information SearchB

AdvertisingPublic RelationsPersonal SalesPromotionsPackagingEvents

A D No Foreign Presence U GIMC

Marketin

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arketspace

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Marketspace

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Brands covered in local media are quickly seen on the other side of the Earthas consumers view media sources and direct shopping channels that ignore nationalboundaries. Blakely (2001) observes the globalization models of just five to ten yearsago are already outdated due to increased levels of electronic media. What then arethe implications for marketing messages being sent to the consumer in a specificcountry? This research aims to answer the following research questions based onpreviously researched cultural characteristics:

Q1. Do differences in the three television home shopping efforts of Japan,America, and Taiwan, parallel Hoffstede’s (1997) cultural classifications?

DEVELOPMENT OF TELEVISION SHOPPING

Television shopping has actually received very little attention in the researchliterature. Infomercials, however, have been studied to some extent. This topic is agood starting point for understanding television home shopping since the homeshopping channels tend to be a series of infomercials strung together as pseudotelevision programs.

Beltramini's (1983) benchmark study of infomercials laid the academic groundwork, exploring the early use of expanded commercials, infomercials, which typicallylasted 30 minutes and included hosts discussing a single product. By the late 1980s,however, infomercials started to get a bad reputation among consumers, as someclaims were overly optimistic (Harris, 1989). In the early 1990s, infomercials were inuse to convey political messages and larger more established companies began usingthem to convey clear marketing messages to viewers (Haley, 1993). The result of thisshift was increased brand awareness through infomercials (Colford and Fahey, 1991;Graves, 1995). Infomercials continued to evolve and have now become widelyaccepted by advertisers and as a standard form of advertising (Wojtas, 1990; Pollock,

1995;Donthu and Gilliland, 1996). Findings show that approximately 55 percent ofadults in the U.S. watch infomercials, with response rates approximating 5 per 1,000viewers (Rosenthal, 1988). Chapman and Beltramini (2000) found that advertisersare quite familiar with the format of infomercials and comfortable with long formatcommercials. After twenty years, the infomercial has lost its reputation for lowquality hype and has gained the respect advertisers as a cost-effective medium.

In the U.S., 95% of stations use infomercials on their airtime (Wicks 1997),and consumers respond by not buying low price products, but on average thatconsumers often made impulse purchases from infomercials, often for expensiveitems. Catanese (1999) reported that prices of eight of the top ten infomercialproducts of 1999 ranged from US$45.90 to US$649.40. Wicks and Abernethy (2001)point out that infomercials are often not reviewed at the television station, leading topotential ethical issues.

To establish the equivalency of the marketing efforts, the next two researchquestions will be explored:

Q2. Do television home shopping efforts in Japan, America, and Taiwan, offersimilar products, quality, and brand?

Q3. Do television home shopping efforts in Japan, America, and Taiwan,display claims that are “too good to be true”.

CHARACTERISTICS OF TELEVISION SHOPPING

Content analysis of commercials and infomercials has been undertaken byTom (1995/1996) and Resnick and Stern (1977) to assess the information content oftelevision commercials. Overall, infomercials were found to provide moreinformation cues than normal commercials, but since infomercials lasted much longer,the actual efficiency of time use was low. Elliott and Lockard (1996) found thatinfomercials actually provided information on more topics and in more detail thannormal commercials.

Direct marketers using TV avoid many channel nodes, but do so at a cost tothe consumer—choice. TV-based home shopping, QVC style, depends on showingsingle products at a time, and not comparing products within the same category. Torespond to this limitations, television shopping channels often offer numerousproducts for display and sale during a single programming segment. The segmenttopic, such as cooking appliances, is then repeated daily with new products eachepisode. This leads to the next research question:

Q4. Do television home shopping efforts in Japan, America, and Taiwan offera wide range of products?

Television shopping sales are often linked to the relationship the salespeople(hosts) have with the audience (Stephens et al, 1996). This relationship is built upover time and may even be based on real-time interaction with audience membersthrough the telephone. This relationship building will give insights into exactly whatdifferences exist among consumers in the three cultures, leading to the next question:

Q5. What are the differences in relationship building across the three cultures’television marketing efforts?

CHARACTERISTICS OF TELEVISION CONSUMERS

The popular view within the ad community is that infomercial shoppers are agroup of "pitiful, credulous and vain" viewers (Garfield, 1993). Dworman (1993)suggests that infomercial shoppers have very high incomes and a more exciting andactive lifestyle than the average American. James and Cunningham (1987) found thatdirect television ad shoppers have a higher convenience motivation than non-shoppers. Gehrt and Carter (1992) were able to classify direct-marketing shoppersinto convenience seeking or recreation seeking categories. Recreational shopper tendto purchase more non-planned products than other shoppers (Bellenger andKorgaonkar, 1980) and are assumed to exhibit impulsive purchase behavior.Television shoppers tend to view more television than average, and such heavyviewing is linked with mood enhancement (Christ & Biggers, 1983). This is all themore true for television shopping because of the very positive message that iscontinually repeated. In a survey of television shoppers, Donthu and Gilliland (1996)found them to be convenience seeking while also less risk averse, but interested infinding details of products and comparing a number of different products (bothfeatures of televisions shopping). This discussion leads to the last research question:

Q6. Do television shoppers across the three cultures have differentdispositions towards convenience, risk, product information, impulse buying?

RESEARCH DESIGN

This research will attempt to answer the research questions by collectingsamples of television marketing efforts in the three countries of Japan, America, andTaiwan. The two stage process will include sampling, content analysis, andclassification, followed with statistical comparisons across the three cultures. Tobegin, television shopping channels that have roughly the same product category,market share (in their respective markets), and maturity will be chosen for inclusion inthe study (see Figure 2).

Figure 2. Selection of television shopping channels in each country

Japan TV MarketingSampling

United States TVMarketing Sampling

Taiwan TV MarketingSampling

Determination ofEquivalent TV

Shopping Channels

PRELIMINARY SCALE DEVELOPMENT

Preliminary scale development will begin with random sampling of televisionshopping channels in the three countries, through video recording taking placesimultaneously (see Figure 3). Approximately 20 hours of recording for each country

will be collected and each analyzed separately for content categories, such as hostinteractions, product cues and information, price and guarantee information, etc.

Figure 3. Preliminary recording in each country

Japan TV MarketingSampling

United States TVMarketing Sampling

Taiwan TV MarketingSampling

VideoRecording

VideoRecording

VideoRecording

Analysis will be carried out by native speakers in each of the languages, so asto increase accuracy. Each language group will have a minimum of three judges.After initial evaluation, all three groups will meet for item comparison (see Figure 4).A common list of important items across all three samples will be drawn out andevaluated for each sample. The preliminary common items will then be used to by allthe three groups on their respective samples to test for validity of the items. Thisprocess will be repeated until a suitable item list and scale is developed forcomparison across the three samples.

Figure 4. Specific languages used in scale developmentPreliminary

Content Analysis

PreliminaryContent Analysis

PreliminaryContent Analysis

EvaluateUsing Japanese

EvaluateUsing English

EvaluateUsing Chinese

Comparison ofItems

FULL SAMPLE PREPARATION

The full sample will be recorded by video tape in the three countries with aminimum of 50 hours programming time each. Recordings will then be transferred toDVD disk easier study (see Figure 5). Digitizing the sample will allow distribution tomore judges as well as more accurate evaluation as the data on the disk can be viewedout of sequence without the delay associated with video tape.

Figure 5. Sample transfer from video tape to digital formatTV MarketingProgram VHS

Recording

ProgramsTransferred to

Digital DVD

CONTENT ANALYSIS

With the items and scales established, groups of student assistants can betrained in scoring procedures. Students from applied foreign language departmentscan be solicited for their English and Japanese skills in categorizing the samplecontent (Figure 6). With over 150 total hours of sample programming time, it will bevital to established standardized items and scoring procedures and then have thecontent analysis distributed to a large number of judges. Approximately 50 judgeswill be sought, with the goal to have each judge view nine hours of programming,with each hour of programming being viewed by three judges so that average scorescan be taken as well as inter judge reliability tested.

Figure 6. Content analysis distributed to groups

JapaneseContent Analysis

DVDs HoldingSample Content

EnglishContent Analysis

ChineseContent Analysis

Applied Foreign Language Department Students

Content AnalysisTraining

StandardizedItems & Scales

FACTOR & CLUSTER ANALYSIS

Validity checks will be performed and unusual items removed. Factoranalysis will be undertaken in order to consolidate items that are similar. Clusteranalysis will be applied in order to discover differences in the content among the threesamples that may be based on culture (Figure 7).

Figure 7. Final analysis

ContentConsolidation

Internal ValidityCheck

Factor Analysis

Cluster Analysis

The overall flow of the research can be seen in Figure 8. Due to complexity inorganizing data collection across three countries and the need for large amounts ofcontent analysis, the project time is spread over two years.

Figure 8. Proposed research flow

Japan TV MarketingSampling

PreliminaryContent Analysis

JapaneseContent Analysis

United States TVMarketing Sampling

Taiwan TV MarketingSampling

PreliminaryContent Analysis

PreliminaryContent Analysis

TV MarketingProgram VHS

Recording

Content Attribute/Scale

Construction

ProgramsTransferred toDigital DVD

EnglishContent Analysis

ChineseContent Analysis

Year 1

Year 2

ContentConsolidation

Internal ValidityCheck

Factor Analysis

Cluster Analysis

EXAMPLE OF CLASSIFICATION

Based on current literature and preliminary sampling, some common themesof television shopping can act as an example of what direction this proposed researchcould take. Four main categories often appear among the three countries: products,hosts, program scheduling, and audience participation (Figure 9). Each of thesecategories appear to be common yet treated differently among the three locations.

Figure 9. Components of television home shopping

Components ofTelevision Home

Shopping

Products Offered

ProgramScheduling

AudienceParticipation Hosts

As an example, the hosts of the programs play a role that is both product salesperson, celebrity, and confidant. Figure 10 shows the American channel QVC’s mostpopular hosts. Note the dog which is used to show that the QVC hosts are like afamily, complete with a house pet. Contrast this with the Japanese QVC channel (seeFigure 12) where the hosts appear much more like department store receptionists withformal uniform dress.

Figure 10. American home shopping channel’s emphasis on host personality

Figure 12. Japanese home shopping channel’s emphasis on host personality

Another example of common features is the use of a program scheduleshowing what programs will appear at a later date. Although each program is sellinga specific product, the program names often general and may not mention the specificproduct (see Figure 14 and Figure 16).

Figure 14. Taiwan home shopping channel’s emphasis on scheduling

Figure 16. American home shopping channel’s emphasis on scheduling

EXPECTED RESULTS

Results of this project will clarify differences among the three cultures in thepreferences for relationship building in marketing communications. Using actualtelevision marketing samples will act as a lens looking into consumer preferences forsimilar products being sold through similar channels. Depending on the magnitude ofthe difference, localized or global marketing strategies can be supported as animplication of this finding. Existing categories of cultural difference can also beconfirmed and/or expanded on. Such findings will give more detailed support tointernational marketing efforts.

Most importantly, the existence of the so called global consumer will betested. If these three distant cultures do exhibit similar preferences in the marketingrelationship, it can be asserted that indeed consumers around the world are growingcloser. But if differences are pronounced and fall into categories previously observed,such as uncertainty avoidance, or power distance, than the closing of the cultural gapcan be seen as an illusion with no basis in reality.

For marketers, the results are also immediately useful, as implications of thepreferences in each market can act as input to marketing strategy decisions. This isespecially true for the developing Chinese market. If results show that Taiwanconsumers are still very influenced by their traditional culture, in the marketingrelationship, then firms developing the Chinese market will be well advised toemphasize a local strategy with attention paid to the core attributes of Chinese culture.On the other hand, if Taiwan consumers are found to be highly similar to theircounterparts in Japan and the U.S., then firms could expect that as China quicklymodernizes, a global strategy that treats consumers more like global consumers wouldbe appropriate.

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