Dispelling the myth of a global consumer
Indonesian consumer behavior researched by means of an analytical diagram for intercultural marketing
With a case-study of Sunsilk shampoo for the veiled woman

Dissertation

zur Erlangung des akademischen Grades


doctor philosophiae
(Dr. phil)

eingereicht an

der Philosophischen Fakultät III
der Humboldt – Universität zu Berlin

von Dipl.-Kulturwirt (Univ.) Ragnar Karl Willer

Präsident der Humboldt - Universität zu Berlin

Prof. Dr. Christoph Markschies

Dekan: Dekan der Philosophischen Fakultät III
Prof. Dr. Thomas Macho

Gutachter:
1. Professor Dr. Vincent J. H. Houben
2. Professor Dr. Ingrid Wessel

Tag der mündlichen Prüfung: 19. Juli 2006

Title

Dispelling the myth of a global consumer

Indonesian consumer behavior researched by means of an analytical diagram for intercultural marketing

With a case-study of Sunsilk shampoo for the veiled woman

Ragnar K. Willer

Abstract

What impact does culture have on consumer behavior?

The discussion of the above question in the multicultural context (Mischkultur) of Indonesia is characterized by the fact that it goes far beyond the limits of the respective scientific fields like Southeast Asian studies or business studies. It provides a new analytical diagram for structural analysis of cultural influences on consumer behavior which offers the possibility to develop new markets in an intercultural manner.

Investigation of cultural factors influencing Indonesian consumers has indicated that the often postulated globally homogenous thinking and universally acting consumer is merely a myth. This investigation concludes with a case-study dealing with a shampoo developed by a multinational for the niche segment, Indonesian veiled Muslim women.

The Author

Ragnar Karl Willer is pursuing a PhD at the Institute of Asian and African Studies at Humboldt University Berlin. He received an MA in International Business and Cultural Studies at the University of Passau. The author considers himself affiliated to the “Passau School”, a school of thought which believes in the superiority of interdisciplinary and intercultural research frameworks. Ragnar Karl Willer’s company, OC EO Strategic Consulting Services Limited, provides clients with the necessary expertise for doing business in Southeast Asia.

Keywords: Southeast Asia, Indonesia, Culture, Marketing, International Marketing, Intercultural Marketing, Global Marketing, Consumer Behavior, Globalization, Glocalization, Hofstede, Unilever

Titel

Die Dechiffrierung des Mythos eines globalen Konsumenten

Indonesisches Konsumverhalten erforscht mit Hilfe eines analytischen Diagramms des interkulturellen Marketings

Mit einer Fallstudie des Sunsilk Shampoos für die verschleierte Muslimin

Ragnar K. Willer

Übersicht

Welche Bedeutung hat Kultur für das Konsumverhalten?

Die hier vorgelegte Auseinandersetzung mit dieser Frage im Kontext der Mischkultur Indonesiens zeichnet sich aus, dass sie über die Binnenräume der jeweiligen Wissenschaftsfächer, wie der Südostasienkunde und der Betriebswirtschaftslehre, weit hinausragt und für die Beantwortung der Fragestellung ein neu entwickeltes analytisches Diagramm zur strukturierten Analyse kultureller Einflüsse auf das Konsumverhalten aufweist, das die Möglichkeit, Märkte interkulturell zu erschließen, eröffnet.

Die Untersuchung der den indonesischen Konsumenten beeinflussenden Kulturelemente ist ein Indizienbeweis gegen die so häufig postulierte Vorstellung eines global, homogen denkenden und universalistisch handelnden Konsumenten, die mit der Fallstudie eines für das Nischensegment der verschleierten Musliminnen in Indonesien geschaffenen Shampoos eines Weltkonzerns abschließt.

Der Autor

Ragnar Karl Willer ist Doktorand am Institut für Asien- und Afrikawissenschaften der Humboldt-Universität zu Berlin. 2003 schloss er als Diplom-Kulturwirt sein Studium mit Schwerpunkt Südostasien an der Universität Passau ab. Der Autor fühlt sich dem Denkkonzept der Passauer Schule und damit interdisziplinären und interkulturellen Forschungsansätzen und -gerüsten verpflichtet. Die von Ragnar Karl Willer gegründete OC EO Strategic Consulting Services Limited unterstützt Unternehmen bei ihren Aktivitäten in Südostasien.

Eigene Schlagworte: Südostasien, Indonesien, Kultur, Marketing, Internationales Marketing, Interkulturelles Marketing, Globales Marketing, Konsumverhalten, Globalisierung, Glokalisierung, Hofstede, Unilever

Inhaltsverzeichnis

• A Introductive Remarks
  • A.1  Preface
  • A.2 Technical comments
  • A.3 Introduction
    • A.3.1  Expanding markets in the Asian century and its challenges
    • A.3.2 Subject and question framework
    • A.3.3 Research framework
    • A.3.4 Literature
    • A.3.5 Roots
    • A.3.6 Structure
  • A.4  The Landscape: Area and Business Studies
    • A.4.1  The starting point
    • A.4.2 Implementing cultural capital: The call for a more direct dialogue with the corporate world
  • A.5  Indonesia: The complex sphere of marketing - starting points
    • A.5.1  A visual introduction
    • A.5.2 Indonesia: An Introduction
    • A.5.3 Geographical framework
    • A.5.4 Population and demographics
      • A.5.4.1  Population data
      • A.5.4.2 Ethnic groups
      • A.5.4.3 Languages
    • A.5.5 Religion
      • A.5.5.1  Indian religions
      • A.5.5.2 Islam
      • A.5.5.3 Christian religions
    • A.5.6 Social consequence of ethnic and religious pluralism in Indonesia
    • A.5.7 History
      • A.5.7.1  Pre-Colonial Times
      • A.5.7.2 Colonial times
      • A.5.7.3 On the way to independence
      • A.5.7.4 Sukarno
      • A.5.7.5 Soeharto
      • A.5.7.6 Post-Soeharto Indonesia
    • A.5.8 A short economic history from independence until today
      • A.5.8.1  The Asian Crisis
      • A.5.8.2 Current situation
• B Basic theoretical concepts of globalization and international marketing International marketing in a global era
  • B.1  Global dynamics and culture: Between globalization and localization
    • B.1.1  Introduction
    • B.1.2 Globalization and the world economy
    • B.1.3 The globalization debate: the area of conflict between critics and supporters of globalization
    • B.1.4 Defining “globalization”
  • B.2 The global economic map: Internationalization trends in business
    • B.2.1  The global environment
    • B.2.2 The market contours
      • B.2.2.1  Drivers of globalization processes influencing marketing strategies
      • B.2.2.2 Phases of internal business economic strategies
    • B.2.3 Globalization and marketing
      • B.2.3.1  The dilemmas
      • B.2.3.2 The standpoints
      • B.2.3.3 Globalization and consumption
  • B.3 Global players in Southeast Asia: The role of the MNC
  • B.4 International Marketing: Meaning and subject in a global environment
    • B.4.1  An introduction to marketing
      • B.4.1.1  Definition
      • B.4.1.2 The marketing process
      • B.4.1.3 Defining international marketing
      • B.4.1.4 Elements or factors of international marketing
    • B.4.2 Ethnocentrism and other problems facing international marketers
  • B.5 Developing global marketing strategies: Risks and organizational matters
    • B.5.1  Determining the risks
    • B.5.2 International strategies
    • B.5.3 Organizational theories of MNCs
  • B.6 The idea of the global consumer: An old debate and a new view
    • B.6.1  Theoretical starting points
    • B.6.2 Practical reality
    • B.6.3 Glocalization of consumers
    • B.6.4 Consumer culture
  • B.7 Culture, a multidimensional construct: possible repercussions on advertising
    • B.7.1  Culture and international marketing
      • B.7.1.1  Introduction
• C Transforming International Marketing into Intercultural Marketing: The Integrative, Multidimensional Analytical diagram and its Implementation in Indonesia
  • C.1  Typologies of cultures as dilemmas for international marketing and their influence on selected aspects of consumer behaviour
    • C.1.1  Introduction
    • C.1.2  Approaching the construct “culture“
      • C.1.2.1  Definitions
      • C.1.2.2 Theoretical basis
    • C.1.3 Starting point of the research framework
    • C.1.4 Theoretical basis and methods of analysis
    • C.1.5 The integrative analytical diagram for intercultural marketing
  • C.2 The orientations
    • C.2.1  Rule Orientation
      • C.2.1.1  Definition
      • C.2.1.2 The orientation’s cultural foundations
      • C.2.1.3 The orientation’s impact on consumer behaviour and international marketing
    • C.2.2 Social orientation
      • C.2.2.1  Definition
      • C.2.2.2 The orientation’s cultural foundations
      • C.2.2.3 Implications for consumer behaviour and international marketing
    • C.2.3 Relationship Orientation
      • C.2.3.1  Definition
      • C.2.3.2 The orientation’s cultural foundations in Indonesia
      • C.2.3.3 Implications for consumer behaviour and international marketing
    • C.2.4 Emotional orientation
      • C.2.4.1  Definition
      • C.2.4.2 The orientation’s cultural foundations
      • C.2.4.3 Implications for consumer behaviour and international marketing
    • C.2.5 Status Orientation
      • C.2.5.1  Definition
      • C.2.5.2 The orientation’s cultural foundations
      • C.2.5.3 Implications for consumer behaviour and international marketing
    • C.2.6 Control Orientation
      • C.2.6.1  Definition
      • C.2.6.2 The orientation’s cultural foundations
      • C.2.6.3 Implications for consumer behaviour and international marketing
    • C.2.7 Time Orientation
      • C.2.7.1  Definition
      • C.2.7.2 The orientation’s cultural foundations
      • C.2.7.3 The orientation’s impact on marketing and consumer behaviour
    • C.2.8 Power Orientation
      • C.2.8.1  Definition
      • C.2.8.2 The orientation’s cultural foundations in Indonesia
      • C.2.8.3 Implications for consumer behaviour and international marketing
    • C.2.9 Gender Orientation
      • C.2.9.1  Definition
      • C.2.9.2 The orientation’s cultural foundations
      • C.2.9.3 Implications for consumer behaviour and international marketing
    • C.2.10 Risk Orientation
      • C.2.10.1  Definition
      • C.2.10.2 The orientation’s cultural foundations
      • C.2.10.3 The orientation’s impact on consumer behaviour and international marketing
  • C.3 Concluding discussion of the analytical diagram
    • C.3.1  Critical appreciation of the analytical diagram
    • C.3.2 Results for Indonesia
      • C.3.2.1  Status-driven behaviour, prestige as a motivator and consumption patterns
      • C.3.2.2 Symbols of setting oneself apart
    • C.3.3  Culture as variable or context
      • C.3.3.1  Differentiated standardization strategy
• D Practical section: Feysen Busana Muslim - Reconciling the global-local dilemma by means of understanding cultural peculiarities
  • D.1  Course of action
  • D.2 Social mixture – Part of the “practices” and source for intercultural marketing
    • D.2.1  Preliminary remarks
    • D.2.2 Re-Islamization in Indonesia and its ramifications on consumers
      • D.2.2.1  The new Islamic middle class: The target group of the Unilever Group
      • D.2.2.2 End of the theoretical introduction and transition to the corporate reaction to the Re-Islamization trend in Indonesia
  • D.3 Case-study
    • D.3.1  Setting the context
    • D.3.2 The market environment
    • D.3.3 Unilever: the global player
      • D.3.3.1  Introduction
    • D.3.4 Unilever in Asia
    • D.3.5 Unilever Indonesia
      • D.3.5.1  UI’s financial performance
    • D.3.6 Strategy
      • D.3.6.1  Cosmetics and Toiletries in Indonesia
    • D.3.7 The Sunsilk brand: Local Touch for Global Success
    • D.3.8 Sunsilk campaigns and brand personality
      • D.3.8.1  Sunsilk and local adaptations
      • D.3.8.2 Sunsilk key facts
    • D.3.9  Marketing strategy
      • D.3.9.1  Endorsement choice
      • D.3.9.2 Advertising campaign
      • D.3.9.3 Campaign execution
    • D.3.10 Outcome
      • D.3.10.1  Outcome from a sociological perspective
• E An assessment: Concluding review and future prospects
  • E.1  Summary of the findings
    • E.1.1  Recommended course of action
• Abbreviations and acronyms
• Bibliography
• Statutory Declaration - Eidesstattliche Versicherung

Tabellen

• Table B-1 Orientation and organizational structure
• Table B-2 The nine lifestyle segments for Indonesia (AC Nielsen Indonesia 2004)
• Table C-1 Hofstede Country Scores (of randomly selected Asian countries)
• Table D-1 Worldwide Unilever turnover in million US$
• Table D-2 Seventy years of Unilever in Indonesia
• Table D-3 UI financial performance (1996 and 1999-2003)
• Table D-4 Threats and opportunities analysis: Situation of Unilever's Sunsilk in Indonesia 2004

Bilder

• Figure A-1 Structure of content
• Figure A-1 Map of Indonesia
• Figure A-2 Intra-societal complexities (“intra-gesellschaftliche Problemlagen“) – SABE-Model
• Figure B-1 Globalization Drivers
• Figure B-2 Strategies and timeline
• Figure B-3 Development stages of motorization
• Figure B-4 A Simple Marketing System
• Figure B-5 The four Ps: the marketing mix
• Figure B-6 Marketing analysis, planning, implementation and control
• Figure B-7 Elements or Factors of International Marketing
• Figure B-8 The global consumer hypothesis
• Figure B-9 Major segmentation bases
• Figure B-10 Psychographic segments in Indonesia
• Figure B-11 Characteristics and trends of “consumer culture”
• Figure B-12 Boris Becker for Tag Heuer (image, courtesy of Tag Heuer)
• Figure B-13 Tag Heuer in China (1)
• Figure B-14 Tag Heuer in China (2)
• Figure C-1 Pictorial representation of the defining premises of culture
• Figure C-2 Pyramid of Uniqueness in Mental Programming
• Figure C-3 Analytical diagram for intercultural marketing
• Figure C-4 Hofstede Country Scores (of randomly selected Asian countries)
• Figure C-5 Indonesia scoring rather particularistically
• Figure C-6 Le Meridien Jakarta CRM
• Figure C-7 Credit cards in Singapore and their CRM schemes
• Figure C-8 Titanium Card in Singapore "Power corrupts. Use it wisely"
• Figure C-9 Localized advertising campaigns (1)
• Figure C-10 Localized advertising campaigns (2)
• Figure C-11 Advertising and festive days
• Figure C-12 Twisting tradition: BMW’s award-winning ads in Singapore (1)
• Figure C-13 Twisting tradition: BMW’s award-winning ads in Singapore (2)
• Figure C-14 Localization of the 4 Ps in Singapore
• Figure C-15 Localized marketing approaches in Singapore (ad, courtesy of Miele)
• Figure C-16 Glashütte’s tribute to its Singaporean customers
• Figure C-17 Indonesia scoring rather collectivistically
• Figure C-18 Correlations between different orientations
• Figure C-19 Advertising and purchasing decisions (1)
• Figure C-20 Advertising and purchasing decisions (2)
• Figure C-21 Collectivism and visual language
• Figure C-22 Housing developments in Indonesia
• Figure C-23 Lewin's life circles (author's adaptation)
• Figure C-24 Indonesia scoring rather diffusely
• Figure C-25 Correlations between different orientations
• Figure C-26 Product presentations in diffuse-oriented societies
• Figure C-27 Communication in diffuse and specific societies
• Figure C-28 Endorsements in diffuse-oriented societies (1)
• Figure C-29 Endorsements in diffuse-oriented societies (2)
• Figure C-30 Endorsements in diffuse-oriented societies (3)
• Figure C-31 Inneke Koesherawati endorsing Unilever's Sunsilk in Indonesia
• Figure C-32 Indonesia scoring "in the middle"
• Figure C-33 Correlations between different orientations
• Figure C-34 Emotional visual language in Indonesia (left) and Malaysia (right)
• Figure C-35 Emotional visual language in Indonesia (1)
• Figure C-36 Emotional visual language in Indonesia (2)
• Figure C-37 Emotional visual language in Indonesia (3)
• Figure C-38 Emotional visual language in Indonesia (4)
• Figure C-39 Emotional visual language in Malaysia
• Figure C-40 Correlations between different orientations
• Figure C-41 Indonesia scoring highly status-oriented
• Figure C-42 Advertisements for skin whitening products
• Figure C-43 BMW ads in Singapore (1)
• Figure C-44 BMW ads in Singapore (2)
• Figure C-45 BMW ads in Indonesia
• Figure C-46 Wempe advertising campaign clearly reflects a "doing orientation"
• Figure C-47 DeBeers new "A diamond forever" campaign reflecting a "doing approach"
• Figure C-48 The status orientation in Indonesia
• Figure C-49 Foreign names evoke status in all fields of business
• Figure C-50 Examples of traditional retailing in Indonesia and presentation of products
• Figure C-51 Maslow's Hierarchy of Needs (1)
• Figure C-52 Maslow's Hierarchy of Needs (2) (adapted from HS, lecture October 2004)
• Figure C-53 Trilogy of needs
• Figure C-54 Indonesia scoring rather externally controlled
• Figure C-55 Interaction with consumers in externally- and internally-oriented companies
• Figure C-56 Possible results of an inner-controlled (directed) market approach (images, courtesy of Coke)
• Figure C-57 M-time versus P-time cultures and timing
• Figure C-58 Time zones and their relatedness
• Figure C-59 Indonesia scoring rather short-term oriented
• Figure C-60 Worldly existence of humans: time bar versus time circle
• Figure C-61 An example of short-termism in advertising (image, courtesy of GMC)
• Figure C-62 Harmonious sentiments as indicators of long-termism
• Figure C-63 Harmonious sentiments as indicators of long-termism
• Figure C-64 Short-termism in Indonesian advertising campaigns for banking products
• Figure C-65 Indonesia scoring as rather highly power oriented
• Figure C-66 Power distance in advertising campaigns
• Figure C-67 Product endorsements in Indonesia
• Figure C-68 Product endorsements in Singapore
• Figure C-69 Imitating European architectural styles in order to add status to buildings
• Figure C-70 Indonesia scoring rather femininely oriented
• Figure C-71 Car design and the gender orientation (images, courtesy of Citroen, Ford)
• Figure C-72 Watch makers and their campaigns in Indonesia. What might be the more appropriate approach?
• Figure C-73 Caring in advertising campaigns in Indonesia
• Figure C-74 Indonesia’s rather low score on the risk orientation
• Figure C-75 Perceived risk in Indonesia and Germany
• Figure C-76 Diffusion of Innovation
• Figure C-77 Value orientations and their position within the culture onion
• Figure C-78 Value orientation results for Indonesia (1)
• Figure C-79 Value orientations for Indonesa
• Figure C-80 Correlation between status and power orientation
• Figure C-81 Status and power orientations over the course of time in Indonesia
• Figure C-82 Culture as a variable
• Figure C-83 Culture as context
• Figure C-84 Between standardization and differentiation
• Figure C-85 Differentiated standardization (adapted from chartbook, Müller and Gelbrich)
• Figure C-86 Regional (Asia-Pacific) campaign Mercedes-Benz & Me (online campaign of the year)
• Figure C-87 Variable versus steady elements of the structuralist model of culture
• Figure C-88 Turnover by selected luxury goods companies by geographic region
• Figure D-1 Procedure overview (Part C and D)
• Figure D-2 Islamization trends in product development
• Figure D-3 Examples of “Feysen Busana Muslim”
• Figure D-4 Orientations and practices over the course of time (1)
• Figure D-5 Orientations and practices over the course of time (2)
• Figure D-6 Opportunities in D&E markets
• Figure D-7 Unilever’s mission
• Figure D-8 Some of Unilever’s brands
• Figure D-9 Unilever in D&E markets
• Figure D-10 Lux and Lifebuoy and their local executions
• Figure D-11 Geographic reach and turnover
• Figure D-12 Sachet packaging
• Figure D-13 Personal care in D&E markets
• Figure D-14 Local executions of global brands
• Figure D-15 Sunsilk brand communications
• Figure D-16 L’Oreal brand communication
• Figure D-17 Global needs but local preferences
• Figure D-18 Local adaptations under the Sunsilk brand umbrella
• Figure D-19 Sunsilk market performance and market share
• Figure D-20 Sunsilk’s “Segar dan Bersih” endorsement
• Figure D-21 Inneke Koesherawati endorsing Sunsilk (official ads)
• Figure D-22 Advertising campaign of Sunsilk “Segar dan Bersih”