Chapter Overview

This chapter outlines the basic contours of the global market economy and identifies opportunities and constraints created by the global economy. Average GNP per capita is identified as a useful indicator of aggregate purchasing power, but we discuss many limitations of using this indicator to estimate consumption. We summarize this discussion by identifying global consumption trends. We identify several important trends, including: the move toward a service economy, global concern for the environment, a growing gap between rich and poor, and a number of earthscaping processes. This discussion builds on the globalization and technology trends we have already identified in previous chapters.

The bulk of the chapter provides a broad sketch of consumer behavior in different parts of the world. Thus, we approach consumer behavior from a global perspective. Such a view is important because, as we emphasize throughout this book, both marketers and consumers face a global marketplace. We begin with a section that describes consumption in North America and Western Europe, where consumers thrive in an information-rich environment. Consumption patterns and preference are defined by the enormous consumption possibilities that exist in these countries, and consumers are accustomed to making fine distinctions between similar brands. Experts predict important trends and changes in consumer behavior as we move into the 21st century. Perhaps most important is an era of fragmentation into smaller subcultures and customized consumer segments.

The next section focuses on Japan and the Newly Industrialized Countries (NICs) of the Pacific Rim. Japan is not a newly industrialized country, but it is such a dominant influence in the Pacific Rim that the success of this region is closely tied to Japan. Cultural values and economic problems and opportunities differ greatly across these nations, but it is still possible to characterize some of the commonalties in this region of the world. Access to market information is expanding dramatically with the introduction of new telecommunications satellites and the Internet. Consumption patterns and preferences are extremely diverse. In a number of the NICs, the focus of consumer spending has, until quite recently, been on consumer durables. In other markets, especially Japan and Hong Kong, a wide variety of luxury goods and services enjoy healthy growth.

One of the most dramatic changes in the late 20th century was the shift of the centralized command economies in former communist states to market economies. Each of these countries has its own special economic problems and differs in its evolution to a market driven economy. The transformation has been dramatic, but the future remains unpredictable. Consumers are definitely learning to discriminate quality, and now have access to the same explosion of media options as North America and Western Europe.

In the final section we outline consumer behavior in the developing countries and the Third World. Many of these countries have ancient and well-developed market institutions, but lack modern marketing infrastructures. The recent spread of global satellite communications has had a dramatic effect on access to marketing communications. Third-World consumers are remarkably loyal to local values. In these countries, the future is likely to be mapped by the continued clash between foreign goods and values and local traditions and beliefs. An especially interesting aspect of consumption in these countries is creolization-- adapting foreign products and services to local needs and tastes.

You will learn more about global consumption throughout this book. The purpose of this chapter is to set the tone for thinking about marketers and consumers interacting in a very fast-paced, creolized, global world. In the next chapter, we will describe in more detail how cultural differences impact consumption patterns.