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Ad Appeals Markham Competition The Impact of Cultural and Market Distance on International Advertising: An Content Analysis of Ad Appeals in Ads from US, Japan and Korea Yoo-Kyung Kim and Hao-chieh Chang S.I. Newhouse School of Public Communications Syracuse University 215 University Place Syracuse, NY 13244-2100 Tel: (315)422-0609 E-mail: [log in to unmask] Submitted to the International Communication Division for AEJMC, April 1, 1996 The Impact of Cultural and Market Distance on International Advertising: An Content Analysis of Ad Appeals in Ads from US, Japan and Korea Abstract This study examined the imapct of cultural and market distance on ad appeals of international advertising by identifying variables related to cultural characteristics and market conditions. A content analysis of 234 magazine advertisements for common multinational brands was performed. Results showed that US ads were more likely to use hard-sell appeal and Korean soft-sell. Similar finding was found for Japanese/Korean ads comparison. In addition, comparative appeal was found significantly more ofen in US ads than its Japanese and Korean counterparts. Data from concept mapping were used to validate the statistical analysis and a consistent result was found. The Impact of Cultural and Market Distance on International Advertising: An Content Analysis of Ad Appeals in Ads from US, Japan and Korea Introduction The development of cross-border communications, global media and advanced technologies has led to a single global marketplace. Such a trend seemed to generate the driving force for the demand for universal brand and uniform advertising within the multinational arena. However, psychological or perceived barriers between country borders still remain. Regional differences have resulted in a variety of different cultural and socio-economic models which in turn have impacted the configuration of multinational networking in all types of marketing communications. They came to recognize that markets around the world are moving from mass products to specially tailored products designed to meet highly differentiated consumer needs in a variety of cultural settings (Homma, 1991). This transition further prompted Transnational Advertising Agencies (TNAA) to become motivated in communicating effectively with consumers from a wide variety of cultures on behalf of their global clients. The goal of TNAA is to develop international advertising campaigns to communicate their global clients' message to consumers (Mueller, 1987). Thus, their immediate tasks focused on the key question of devising advertising campaign performance for foreign markets: should the targets be considered as a separate individual consumer or as collective global consumers? To explore this question, this study will examine cultural and market-related factors as major possible explanatory variables for the diverse performance of advertising campaigns in international contexts. Specifically, the study will focus on the impact of these factors on the type of advertising appeals employed in transnational advertising campaigns. In addition, this study will also examine how cultual distance and market distance between cultural groups influence the practice of standardization versus localization in international advertising. Conceptualization Cultural Distance As Samovar, Porter and Jain (1981) proposed, the degree of influence culture has on intercultural communication situations is a function of the dissimilarity or distance between cultures. Cultural distance is concerned with the degree of dissimilarity between message senders and message receivers. So, as the cultural distance is similar - socially, politically, psychographically and demographically - the more the communication repertoire of behavior is likely to be. Based on the concept of cultural distance, Mueller (1987) compared ads from U.S., Japan and Germany in order to examine the relative degree of standardization of ads between countries. She found that overall usage of standardized campaigns was more common for messages transferred between Western nations than for messages transferred between Western and Eastern nations. This suggests that the cultural distance between Western countries tends to be less than the one between Western countries and Eastern countries. It further suggests that a standardized advertising campaign is more common between countries where there is less cultural distance. Cultural Scale Based on the concept of cultural distance, Samovar et al(1981) suggested the use of a measuring scale assesses the variation of cultural distance between cultures. The amount of difference between two cultural groups can be seen to depend on the relative social uniqueness of the two groups. Such a social uniqueness is qualitatively and subjectively determined by a number of cultural factors which are subject to variation: physical appearance, religion, philosophy, social attitude, language, heritage, basic conceptualizations of self and the universe, and degree of technological development (Samovar et al, 1981). Although this scale is rather unrefined, it does provide insights into the effect of cultural differences. For example, from this scale, a maximum difference exists between Western and Asian cultures. In contrast, an example nearer the center of the scale is the difference between American culture and German culture, where less variation is found. Although the concept of cultural distance seems so basic, its conceptual model and scale are valuable in a sense that they, albeit roughly, provide the standard guidelines measuring the degree of similarity/dissimilarity between cultures. Samovar et al (1981) provides a cultural distance scale to measure cultural characteristics between societies or countries. Cultural characteristics More than three decades ago, McLuhan (1964) noted that advertisements are the richest and most faithful daily reflections that any society ever made of its entire range of activities. Lazer et al (1987) suggested that while Western communication appeals tend to be more verbal, with a logical direct message, Japanese appeals are more emotional, suggestive and indirect. One of the earliest cross-cultural studies (Lenormand, 1964), maintained that cultural differences such as basic customs, religious beliefs and living standards are too great to overcome. In the early 1970s, Britt (1974), Green and Langeared (1975), and Green, Cunningham and Cunningham (1975) reported that because consumers evaluated the attributes of the same product differently across cultures, this fact should be reflected in different advertising approaches. Other studies have compared Eastern and Western cultural traditions or standards to assess major differences in ads (Hong et al, 1987; Mueller, 1987, 1991, 1992; Sriram et al, 1991; Chang, 1991). They argued that distinct cultural characteristics are embedded in advertising appeals, which are used in varying degrees to convey advertising messages of various cultures : these are emotional and cognitive orientations, soft-and-hard sell appeals, power distance, individualism-collectivism and uncertainty avoidance. Martensen (1989) and Kweon et al (1992) added the concept of contextual culture and time perception, from which clear difference between East and West was found. As such, criteria for cultural dimensions had mixed agreement and support among researchers primarily because these are never completely exclusive and independent. However, Zandpour and his associates(1994) systematically restructured the criteria for cultural characteristics into four distinct categories: Individualism-collectivism, power distance, uncertainty avoidance and perception of time. The representativeness of these cultural dimensions has already been tested and substantiated in terms of whether it was able to explain differences in consumer behavior (Lynn, Zinkhan and Harris, 1993). Thus, although there are more cultural characteristics that may be relevant to advertising, these four characteristics seemed to be the most parsimonious criteria used to classify the different patterns of advertising expressions among cultures. Therefore, the present study will build on Zandpour et al's cultural criteria by examining the following cultural characteristics which have been utilized as the common denominators in cross-cultural studies of advertising: Individualism-collectivism, power distance, uncertainty avoidance and perception of time. Individualism-Collectivism. Individualism-collectivism has been suggested to be the major dimension of cultural variability identified by theorists across disciplines (Zandpour et al, 1994). Individualism is defined as "a situation in which people are supposed to look after themselves and their immediate family only," whereas collectivism is defined as a "situation in which people belong to in-groups or collectivities which are supposed to look after them in exchange for loyalty (Chang, 1991; Hofstede and Bond, 1984). The emphasis in individualistic societies is on a person's initiative and achievement, relying on factual information for decision-making as opposed to seeking group harmony and consensus (Zandpour et al,1994; Gudykunst, Ting-Toomy & Stewart, 1985). Further, the individualistic society emphasizes the articulation of messages, whereas the collectivistic society is characterized as nonverbal and less articulate in communication (Gudykunst & Kim, 1984; Zandpour et al, 1994). Western societies are mainly regarded as individualistic societies as opposed to Eastern ones which are collectivistic (Frith et al, 1991, Hofstede, 1984). Individualistic societies are more likely to put more emphasis on individual differences or strength in argument, and instead put less emphasis on shared feeling and consonance among persons when they process persuasive message such as advertising. Ogilvy (1985) asserted that in an individualistic society such as US, advertising should be written not to multiple readers, but to single individual reader. He argued that it is because when people read advertising copy, they are not together but merely alone. In line with this, Wolburg and Talyor (1994) explored the depth and the ways that American television advertising reflected individualism. They further found that regardless of the nature of the product, advertising appealed heavily to self-interests. Power Distance. Power distance is concerned with the relationship between authority and social perception (Hofstede, 1991). In high-power distance cultures, people tend to obey the recommendations of authority figures such as parents, teachers and bosses in comparison to cultures that have little tolerance for authority (Hofstede, 1991; Zandpour et al, 1994). In this culture, people tend to emphasize the basis of facts and reasoning. Zandpour et al's (1994) study confirmed that power distance was a significant factor affecting advertising difference among cultures. They found that high power distance culture tended to use more celebrities with various kinds of authorities and rely on more psychological appeals, compared to low power distance culture. Sriram et al (1991) and Frith and Wesson (1991) also substantiated the influence of power distance on advertising. In particular, Sriram et al (1991) found that from a discriminant analysis, power distance was a significant determinant for clustering 40 countries into six groups within each of which standardization could be attempted. Uncertainty Avoidance. Uncertainty avoidance is the degree to which people prefer structured to unstructured situations, and ranges from extremely rigid to relatively flexible (De Mooiji, 1994; Hofstede & Bond, 1984). Cultures with high levels of uncertainty avoidance need to rely more on formal rules, absolute truth and advice of those whom they consider to be experts (Hostede, 1980; Rubin 1992; Zandpour et al, 1994). Learning by trial and error and experimentation, searching for innovation, and acceptance of a high level of mobility, all express an easy attitude toward insecurity. Instead of engaging in decision-making, people avoiding uncertainties are more likely to rely on rules, precedents and patterns. They tend to avoid making assessment and assumptions, and do not like to publish or discuss their plans before these are complete (De Mooiji, 1994). This cultural value is clearly reflected in advertising, than any other values, because it is more closely related to communication patterns and comprehensibilites of messages. Perception of Time. Different cultures have different concepts of time. Time is used as a measuring instrument and a means of controlling human behavior by setting deadlines and objectives (De Mooiji, 1994). Although it might be devised only from Western perspectives, Hall (1990) argued that time is tangible; like an object, it can be saved, spent, found, lost and wasted. He describes this way of handling time as monochronic as opposed to polychronic. People from monochronic cultures tend to do one thing at a time; they are organized and methodical, and their workdays are structured to allow them to complete one task after another. Polychrnoic people on the other hand tend to do many things simultaneously. Polychronic cultures rely more on implicit and nonverbal information as opposed to monochronic cultures that seek explicit communication (Hall, 1983; Zandpour et al, 1994). In particular, Zandpour et al's (1994) study found that monochronic cultures (e.g., North America and European countries) with linear perception of time tended to rely more on direct, rational, argumentative and explicit advertising appeals, as opposed to polychronic culture with nonlinear perception of time. Market Distance As Johansson (1994) argued, culture alone does not explain the unique nature of a country's advertising. To develop a deeper understanding, it is reasonable to investigate market conditions related to advertising industry, which might play a role as another explanatory variable for ad dissimilarity. Market distance is defined as dissmilarity or difference between markets in terms of market conditions which are generally defined as visible or invisible factors directly or indirectly related to economic market or relevant environment in a country (Schiffman and Kanuk, 1991; Kotler, 1984). In general, these focus on six broad areas : 1) institutional arrangements (e.g., advertisers and ad agency structure, Johansson, 1994), which suggests that the institutional setup leads to the creative freedom in advertising; 2) legal environment or government regulation (Cutler, 1992; Boddewyn, 1988; Lorimore, 1979; Miracle, 1968), which suggests that the extent of government control for advertising results in creative diversities; 3) media characteristics (Rau and Preble, 1987; Sorenson and Weichman, 1975; Lenormand, 1964), which summarizes that media-related factors affect the development of international campaign; 4) product positioning (Jones, 1992; Moriarity and Duncan, 1990; Sorrenson and Weichman, 1975), which asserts that products are diversely positioned according to consumers' use and gratifications in an international context; 5) different product categories (Chang, 1991; Cutler, 1991; Stern, Krugman and Resnik, 1981) and the Product Life Cycle (Miracle et al, 1991; Chang, 1990), for which different message strategies are required. As a step toward more specific approach out of the above listed categories, Zandpour et al (1994) identified and examined seven elements related to advertising industry environment. Under the category of institutional arrangements, they expanded it with advertising expenditure per capita, presence of US adverisers, advertising personnel shortage and US advertising agencies. Under the category of legal environment, government control was included. Under the product category, they identified the type of product. And the type of commercial breaks was indentified as major operational variable of media characteristics. These categories seem to be more specific and exclusive in a sense that they focused more directly on advertising industry-related classifications. Therefore, their approach will be used as a conceptual building block to examine market conditions in the present study. Only categories relevant to this study will be used as explanatory variables for the difference of advertising. Among them, commercial break, which was originally used in their study was excluded because this study will focus on print medium. Advertising Expenditure Per Capita. In industrialized countries, consumers have greater per capita income with which to purchase goods, and the marketplace is more consumer oriented. Thus, it is natural to assume that in more industrialized countries firms employ advertising more extensively to improve or hold their competitive position in the marketplace. Cutler (1991) found that in countries where advertising expenditures per capita are high, there are more extensive use of hard-sell advertising techniques to cut through the clutter of advertising. Zandpour et al (1994) demonstrated that greater per capita advertising expenditures was associated with higher levels of advertising sophistication and consumer acceptance of advertising as a legitimate medium. Presence of US Advertisers. Since US advertising has by far the largest ad expenditure and has dominated the world market, their advertising policies and strategies could influence the advertising of a target country. Levitt (1983) said that if they are looking for a standardization approach in advertising message, the number of US advertisers in target countries may be a major indicator to consider. Zandpour et al (1994) found that the presence of US advertisers was a significant factor affecting advertising informativeness and style among countries. Advertising Personnel Shortage. Advertising personnel is concerned with the potential of human resources in advertising industry. This potential might determine the quality of advertising in a market. Zandpour et al (1994) argued that availability of skilled advertising personnel in a market could independently impact the quality of the creative work in that market. This might be greatly different from country to country. In fact, Shao and Hill (1992), and Zandpour et al(1994) found that there was a significant difference in availability of such skills around the world. In particular, Zandpour et al (1994) found that access to a ready supply of advertising personnel - measured by the total number of areas among the fifteen advertising professions that were short in each country - meant more informative, argumentative, symbolic and less dramatic advertising. US Advertising Agencies. US advertising agencies exist almost ubiquitously. They are primarily taking charge of controlling advertising strategy, policy and management in accordance with the guidelines from US-based headquarters. For the most part, advertising for US brands tends to be controlled by US advertising agencies even in countries outside US. Often they tend to follow the standardized guidelines set by US headquarters especially for economic reasons. Zandpour et al (1994) found that television commercial in markets with a strong presence of American advertising agencies were more factual and did not have any reasoning or conclusions. Therefore, it is expected that the more US advertising agencies there are within a country, the more advertising become Americanized and standardized. Government Control. The legal regulation by the government is always a barrier in international advertising. Government control is defined as any form of restriction exercised by the legislation, court, consumer protection, and administrative department in the government of a target country (Cutler, 1991; Boddewyn, 1981). The degree of restriction on advertising varies according to the country. Advertising in the United States is the most unrestricted (with the exception of deceptive advertising) by both the government and by media practices (Cutler, 1991; Boddewyn, 1983). Boddewyn (1983) discovered that India had minor legal restriction but major media restriction. Many studies found that there are substantial advertising regulatory differences across countries and thus, this would greatly hinder international advertising, especially standardized advertising (Boddewyn, 1981; Boddewyn and Marton, 1978; Luqmani, Yavas and Quraeshi, 1989; Zandpour et al, 1994). In particular, Zandpour et al (1994) found that the extent and nature of government control of advertising was significantly related to advertising messages. Specifically, they found that when marketers were confronted with strict government control of advertising, they tended to use psychological and symbolic associations and were less likely to use dramatic testimonials and wordy commercials. Type of Products. Advertisers may impact the nature of advertising through the type of products that they advertize (Zandpour et al, 1994). Ryans (1969) suggested that product type should be one of the main determinants for advertising standardization. However, in the case of all durable products and most non-durable products, standardization is quite questionable. Jhally, Kline and Leiss (1985) found that in the United States, the use of appeals varied drastically by product category. Similarly, Link (1988) suggested that globalization process must be tailored to the specific needs of each product category. Zandpour et al (1994)'s study found that product categories have independently affected information content, creative strategy, the style of ad messages. In particular, Food-beverages was more likely to be presented in a dramatic format, providing little visual information with very little chance of being advertised in a news format. Personal care-cosmetic and drug advertising, however, was more likely to use visual information. This category was also less likely to be presented in a news format as opposed to service, car and car products that were more frequently advertised in terms of conceptually unrelated facts with little visual information. To summarize, this study explains the difference of advertising from the conceptual framework of the combination of cultural distance and market distance. Simultaneous examination of both cultural distance and market distance will provide a more explanatory power for the difference of advertising. It is because both variables are not correlated and thus, independent and mutually exclusive. Furthermore, which variable has more impact on ad difference cannot be always determined. Advertising Appeals. The advertising appeal in this study is defined as persuasive techniques that advertisers use in the advertisement in the hope of attracting their A.I.D.A (attention-interest-desire-action) (Aaker and Meyers, 1987). The advertising appeal can be multi-dimensional as it contains both the intended message and the process for delivering the message (Cutler, 1991). There are a number of classification systems which have been developed for describing advertising appeal (Jhally, Kline, and Leiss, 1985; Norris, 1981; Fletcher and Zeigler, 1978). Among many executional appeals, however, this study will categorize them into hard or soft sell, direct response,and comparative appeal which have been most frequently used in cross-cultural studies of international advertising. Hard and soft-sell appeal. The terms hard-sell and soft-sell advertising are defined as relative terms which describes an overall set of advertisements and techniques rather than any specific ad or technique. Hard-sell advertising consists of advertising which takes a direct, short-term, approach to the actual sale of a product (Cutler, 1991; Wells, Burnett and Moriarity, 1989). Such advertising is generally described as focusing on rational, factual, logical reasons for purchasing the product. Soft-sell advertising will be defined as advertising which takes an indirect, long-term approach to the sale of the product through the establishment of association between the product and positive feeling for a person, situation or item (Cutler, 1991). Soft-sell ads tend to be associated with an emotional appeal, as opposed to hard-sell ads using a rational or product-oriented appeal. Lannon (1986) characterizes the dominant United States hard-sell approach as fact based, while the more soft-sell approach exists in the U.K.'s humor. Roth (1982) characterizes the U.K.'s style as more participative, implicit, nonverbal and visual than the United States ads. Similar contrasts between hard-sell and soft-sell are made in many of the studies of Japanese advertising. Mueller (1987) found that the soft-sell approach was used three times as often in Japanese ads as in the United States ads. Helming (1984) notes that Japanese commercials do not mention price and are low-key on the emphasis of brand names. Roth (1982) described American ads as direct, visual and explicit, with bold headlines and type, while Japanese ads were more non-verbal, visual, intuitive, and emotional. Direct response appeal. Direct response is defined as a direct action request, such as a coupon or an invitation to write or call (Wells, 1988; Cutler, 1991). Ads containing direct response requests are oriented to the short-term and direct and can be measured for results. This direct action orientation is highly structured, and appears to fit within the conceptualization of hard-sell (Mueller, 1991; Cutler, 1991). Martensen (1987) found that advertising in the United States had a 22 percent higher individualism score than Sweden and used direct response ads 29 percent more often than Sweden. Comparative Appeal. Comparative appeal is defined as an appeal which explicitly compares the brand to a competitor's brand by name/picture, the term brand X competitors' brands, or implicitly by stating that the brand is better than all others. The explicit or implicit comparison of one brand to another brand in an ad has been examined by a number of researchers (Miracle, 1988; Miracle and Nevett, 1987; Boddewyn, 1983; Boddewyn and Marton, 1978). The regulatory situation is substantially different in each country, and in this case the regulatory factor was expected to dominate over both economic and cultural indicators (Boddewyn, 1983). The United States uses this appeal or technique more predominantly than any other country in the world. Mueller (1991) and Cutler (1989) argued that while ads in individualistic culture such as the US frequently use comparative appeals, ads in collectivistic societies may not need or desire specific comparative appeals. Country Profile Three countries were selected from North America and Asia, the two largest marketable continents. They are the US, Korea and Japan. From a cultural perspective, Korea and Japan represent traditionally Eastern cultures, while the US represents the West (Mueller, 1987; Chang, 1991, Frith and Frith, 1991; Frith and Wesson, 1992). Type of Culture The communication objectives in Asian cultures are directed toward achieving consensus and harmony in interpersonal relations and social circumstance (Lin, 1993). For this reason, Korean and Japanese cultures are found to be collectivistic in emphasizing these values. In contrast, the United States is considered a culture that relies heavily on its Western rhetoric and logical tradition to relate thoughts and actions to people and their environment (Hall and Hall, 1987; Wells, 1987; Lin, 1993). Therefore, US culture is regarded to be highly individualistic (Hsu, 1981; Hofstede, 1980; Bella, 1987; Shiffman and Kanuk, 1978; Chang, 1991). Korean culture is even more collectivistic than Japanese culture (Gudykunst, Yoon and Nishida, 1987; Hofstede, 1984). This finding was confirmed by Klopf (1981) who reported that in Korea, the family unit is more important than the individual, and decisions are made in favor of the entire family, rather than for the sole benefit of a single individual of the family. Both Korean and Japanese cultures have mostly been influenced by Confucianism which stresses the importance of maintaining proper human relationships. This tradition results in the implicitness and indirectness of the Korean and Japanese languages (Yum, 1987). On this side of Pacific, the Western spirit of adventurism and conquest guides US culture to express more challenges and confrontation to the status quo (Lin, 1993). Thus, US culture is characterized as direct, explicit( Frith and Wesson, 1991) and as distrustful of authority (Shils, 1956, Norton, 1964). According to Hofstede's (1984) survey, Asian countries tended mostly to be in high-power distance cultures, whereas most of Western countries were more likely to belong to low power distance cultures. His study also found that the Korean and Japanese culture were high power distance cultures, showing scores of 54 and 60 respectively on a power distance scale, compared to 40 of the United States. Americans live easily with uncertainty and base many of their daily decisions on probabilities (De Mooiji, 1994). The Asian people, on the other hand, shun insecurity. Hofstede (1984) showed that Asian tended to have a strong need to avoid uncertainty than people of any other nationality. The uncertainty avoidance indexes of Korea and Japan were 85 and 92 respectively, whereas it is 46 for US. Consequently, Japanese and Koreans have much higher uncertainty avoidance, compared to US (Hofstede, 1984). In the perception of time, the Americans have a linear time concept, with clear structures, such as beginning, turning point, climax and end (Hall, 1989). Thus, they tend to do one thing at a time in the way of handling time called "monochronic." On the other hand, Korean and Japanese are more likely to be "polychronic" which means that people tend to do many things simultaneously (De Mooiji, 1994; Hofstede, 1984). Market Sophistication Regarding market conditions, US is the leader especially in advertising industry environment at the 21st century, but is closely followed by Japan. For instance, in the area of advertising expenditures, US is the top market with Japan a distinct second largest market, whereas Korea was marked as the 9th market in the world (Advertising Age, August 14, 1994). Overall, general trade volumes and economic indicators show that US and Japan were sharing the leading positions in the world markets, compared to Korea. According to Kotler (1992)'s definitions of market level based on the concept of product life cycle, both US and Japan may be advanced market dwelling on the maturity stage of product life cycle (PLC), whereas Korea is more likely to be a far developing market in the stage of growth of the PLC. Government control in Japan and Korea is similarly stricter than US which is much more moderate than any other country (Boddeywn, 1986; Cutler, 1991). In regard to domestic institutional arrangement, the typical Western ad agency is independent of the media and considers it unethical to accept as clients firms competing in the same market (Johansson, 1994). However, the ad agencies in Korea and Japan do not face this limitations. The larger agencies have direct influence in the media and customarily maintain business relationships with competing advertisers. In terms of media availability and patterns, Korea has only 197 consumer magazines (Ad Yearbook, 1993), which is far behind US (2,869) and Japan (2,424) (Ad Age, August 1994). Korean consumers get information about products and services mostly from newspapers, whereas Americans and Japanese do so from magazines (Hong et al, 1987; Moon and Franke, 1987). It might be partly because US and Japanese magazines are more narrowly targeted based on more specialized topics than those in Korea. In terms of ad personnel shortage, US had more abundant access to a ready supply of advertising personnel, compared to Japan and Korea (Zandpour et al, 1994). Even Japan had a higher advertising personnel shortage than Korea. From the comparison, the US-Japan dyad has more in common than the Japan-Korea or US-Korea dyads. Basically, these countries share certain characteristics and yet are differentiated by others. Japan and Korea share cultural perspectives but differ in market conditions. US and Japan have similar market conditions, but exhibit diversely opposite cultural characteristics. For these two comparisons, the relative influence of two variables is hard to establish in terms of which has more impact on difference of ads between countries, because these are not mutually correlated by any means. However, this study expects that cultural distance will largely - but not absolutely - be more impactful than market distance for the following reasons. First of all, major criteria for cultural distance were originally related to socio-cultural uniqueness which encompasses all the consumer-related factors such as language, values, attitudes, and other psychological variables. In contrast, market distance or conditions are expected to form the external structure of advertising, which is more directly related to the industrial environment of advertising than to the consumer environment. Thus, these arguments will boil down to the question of which influence had more priority in creating difference of ads : consumer factors or market factors? Assuming that advertising is a purposeful and consumer-oriented communication means between advertisers and consumers, advertising is more likely to be reflective of cultural distance or characteristics, as a primary influential agent of ad dissimilarity. Factors of market distance associated with market conditions play only a secondary role in measuring or evaluating ad differences. Therefore, in this study, it is expected that cultural characteristics or cultural distance are more impactful than market conditions or market distance. When applying this to the cultural and market distance scale as in Figure 1, if there is any difference of ads between US and Japan, that will be attributed to the difference of culture or characteristics. Also, any difference of ads between Japan and Korea will be ascribed to the dissimilarity of market conditions. Finally, the difference between US and Korea will be explained by the difference in both cultural characteristics and market conditions. Based on the above discussion and findings, the following hypotheses are stated : H1: US magazine ads will have more hard-sell, comparative and direct response appeals than Korean magazine ads. H2: US magazine ads will have more hard-sell, comparative and direct response appeals than Japanese magazine ads. H3: Japanese magazine ads will have more hard-sell, comparative and direct response appeals than Korean magazine ads. So far, a distance pattern between individual countries has been predicted on the basis of their predicted interaction among cultural characteristics, market conditions and advertising. The next step is concerned with a distance pattern between country dyads - country pairs - which is the question of where in the cultural and market distance scale each dyad could be positioned. Further, it is expected that advertising difference will vary according to cultural and market distance between country dyads. Among the three country dyads, the US-Korea comparison is at the maximum difference level because of difference in both cultural and market distance, while the Korea-Japan comparison is at the minimum difference level because of difference only in market distance, according to the distance scale. Thus, applied to an advertising context, it can be expected that advertising difference between US and Korea will be greater than the one between US & Japan or Korea & Japan. Further, it can be also predicted that advertising difference between US and Japan will be greater than Korea and Japan. Therefore, the hypotheses will be as follows: H4: The differences between US and Korean ads are greater than those between US and Japanese ads in ad appeals. H5: The differences between US and Korean ads are greater than those between Korean and Japanese ads in ad appeals. H6: The differences between US and Japanese ads are greater than those between Korean and Japanese ads in ad appeals. Method Magazine ads from US, Japan and Korea constitute the units of analysis. This study content analyzed magazine advertisements (at least half-page in size) that were for multinational common brands from US, Japan and Korea. US, Japanese and Korean advertisements were obtained by purposive sampling, i.e, advertisements selected on the basis of specific characteristics or qualities and eliminated those which failed to meet these criteria. Thus, advertisements for common brands advertized in these three countries in Winter (January), Spring (March), Summer (June), and Fall (September) 1995 were obtained in order to control for possible seasonality effects. Editions from as many titles of magazines with mass circulations as possible were used to obtain the latest number of common ads. As a result, 243 magazine ads were collected from US (n=81), Japan (n=81) and Korea (n=81) from a total of 65 magazine titles - approximately 500 issues. Coding Scheme Sets of common brand ads in the US, Japanese and Korean sample were content analyzed for a number of variabes. These included three types of ad appeals: 1) hard sell / soft sell, 2) comparative appeal, and 3) direct respose appeal, as well as 4) the degree of similarity between country dyads. The ad appeals were nominally coded: 1) hard / soft sell appeal was coded "0" for hard-sell and "1" for soft-sell appeal; 2) comparative and 3) direct response appeal were measured as follows: "0" for absence and "1" for presence. To code ad-related factors, three independent coders, unaware of the objectives of the study, were recruited. Fluency in Japanese and Korean was a requirement for the coding of those ads. High intercoder reliability was found using Scott's pi procedure: American/Korean (87.9%), American/Japanese(85.7%) and Korean/Japanese(86.7%). The degree of similarity in ads between country dyads was measured on the basis of coding results. Particularly, this was coded by a primary coder after comparing pairs of common brand ads in the US and Japanese sample, the US and Korean sample and Japanese and Korean sample. The evaluation was done on the basis of a 5-point scale ranging from totally dissimilar to very similar . The assessment was determined by the percent of agreement in coding 14 information cues of paired samples of ads. That is, if their codings in ads between paired countries were in 81 - 100% agreement, it receives a "5"(very similar). Likewise, a "4" is used for 61 - 80% agreement, a "3" for 41 - 60% agreement, a "2" for 21 - 40 agreement and a "1" (totally dissimilar) for 0 - 20% agreement. In addition, type of product among market conditions was excluded from analysis due to the sample characteristics. With regard to statistical measures, chi-square, t-test were used to test the study hypotheses. A New Approach with Concept Mapping As a way of comparing countries' unique meaning vis a vis ad-related factors, this study proposes the use of a computerized concept-mappig program called VBPro (Miller, 1993). Concept mapping is a multidimensional scaling procedure developed for the specific purpose of analyzing natural language text through computer program (Miller, 1991). The scaling was made by the mechanism of factor analysis. The program creates a term-by-term cosine matrix based on the frequency of their occurrence and co-occurance and extracts the first three eigenvectors of this matrix. The eigenvalues are standardized to unit length (that is, the sum of their squares equals one). This standardization minimizes differences in derived values that are due solely to differences in frequency occurrence (Andsager and Miller, 1994). The formula for the co-occurrence cosine matrix is as follows where A and B represent the respective terms (Salton, 1982). Cos = AB/ ( A2)( B2) The values for the first eigenvector depend primarily on the frequency and number of co-occurences of each term and are interpreted as the prominence or "size" of that term or concept (Andsager and Miller, 1994). The second and third eignevectors are interpreted as dimensions to project the words into a two-dimensional space (Andsager and Miller, 1994). Therefore, concepts appearing close to each other could be said to represent a cluster and are related through co-occurrence (Chew and Kim, 1994). For the most part, the usage of concept mapping has varied according to analytic purposes and media characteristics. In general, concept mapping has been used to analyze the relationship between attributes and objects in media content and among perceptions of population subgroups (Miller, 1991; Chew and Miller, 1992; Chew, Metha, and Kim, 1992; Chew, Metha and Oldfather, 1993; Chew, Metha and Oldfather, 1994; ). Themes and categories in contents were usually the variables under examination. However, the present study used concept mapping to analyze the dynamic pattern between attributes and objects. Unlike the previous studies that focused on texts in media coverage and open-ended data from respondents, this study analyzed the creative patterns in magazine advertising among countries. Specifically, it examined how ad-related attributes will co-occur and be associated with specific countries (the objects). Spatial plots were used to show the distance (closeness or separateness) of specific elements or factors related to advertising from each country. Data from original coding instrument was entered and transfered from SAS to VBPro, the computer program for concept mapping (Miller, 1995). Data was reformatted from the number to actual term representing it in an ad. After data were entered and processed in a specific format required by VBPro, VBPro coded the data on co-occurrence of each country and frequency distributions of categorical attributes. As mentioned earlier, standardized principal components of the co-occurance matriz were created based on the interactions between these country variables and categorical attributes, which subsequently demonstrate the relationship clusters of selected terms and their standardized loadings. These loadings produced three dimensional coordinates, among which the second and third coordinates were the horizontal and vertical dimensions respectively. In this study, the standardized loadings were reexpressed as bubble coordinates with a vriety of different radia on the chart. This process resulted in the position of the spatial plot which was the rendezvous point of two dimensional coordinates. It further provides comparative insights into what types of categorical attributes occur more frequently among the three countries. Specifically, it compared country to country in regard to preplanned categorical attributes by doing maps for all three countries. Results US and Korea As expected, US ads were more likely to use hard-sell appeals (75.3%), whereas Korean ads tended to use soft-sell appeals (58.0%). The result of chi-square test showed there was a significant difference between US and Korean ads (X2= 18.6, p<.01, see table 1). In addition, US ads tended to use comparative appeals more frequently than Korean ads (33.3% vs. 18.5%, X2= 4.6, p<.05). However, no significant difference was found in direct response appeal between these two countries (see Table 2). Thus, Hypothesis 1 was partially supported. ------------------------- Table 1 about here ------------------------- ------------------------- Table 2 about here ------------------------- US vs. Japan As expected, US ads tended to use hard-sell appeal more than Japanese ads (75.3% vs. 60.5%, X2=4.08, p<.05). However, contrary to the prediction, Japanese ads were more likely to use hard-sell appeal rather than soft-sell appeals (see Table 3). US ads also had more comparative appeals than Japanese ads (33.3% vs. 11.1%, X2=11.6, p<.05) However, no statistical significance was found in direct response appeal between US and Japanese ads (see Table 4). Thus, these findings provide partial support for Hypothesis 2. ------------------------- Table 3 about here ------------------------- ------------------------- Table 4 about here ------------------------- Japan vs. Korea The result showed that Japanese ads used more hard-sell appeals, whereas Korean ads had more soft-sell appeals (X2=5.59, p<.05, see Table 5). No significant difference was found in comparative or direct response appeal between ads in Japan and Korea (see Table 6). Overall, these provided partial support for Hypothesis 3. ------------------------- Table 5 about here ------------------------- ------------------------- Table 6 about here ------------------------- Degree of Similarity Between Country Dyads Comparison between US/Korea and Japan/Korea No significant difference was found in ad appeal between ads in US/Korea and US/Japan (Mean = 4.03 vs. Mean = 4.14, t (160) = -.71, p<.23, see Table 7). When profiled by product category, a significant difference was found only in alcohol-tobacco ads (see Table 8). The result showed that ads between US and Japan for this product were more similar than ads between US and Korea. This provides partial support for Hypothesis 4. ------------------------- Table 7 about here ------------------------- ------------------------- Table 8 about here ------------------------- Comparison between US/Korea and Japan/Korea The result shows no significant difference in ad appeals between ads in US/Korea and Japan/Korea (Table 9). However, when profiled by product category, a significant difference was found in jewelry ads. That is, ad appeals between Japanese and Korean ads for jewelry were more similar than those between ads in US and Korea for the same product (Table 10). Car ads approached statistical significance (p <.063) and thus indicated that ad appeals between Japanese and Korean ads for cars may be more similar than those between US and Korean ads for the same product. ------------------------- Table 9 about here ------------------------- ------------------------- Table 10 about here ------------------------- Comparison between US/Japan and Japan/Korea There is also no significant difference in ad appeal between US/Japan and Japan/Korea dyads (Table 11). However, a significant difference was found in alcohol-tobacco ads. As in information content, ads in US and Japan for alcohol-tobacco were more similar than those between Japan and Korea for the same product (Table 12). This showed the opposite direction of Hypothesis 6, which was not supported. ------------------------- Table 11 about here ------------------------- ------------------------- Table 12 about here ------------------------- Concept Mapping Figure 1 based on standardized loadings (Table 13) displays the attributes associated with ad appeals as they co-occur with countries. The "soft-sell" appeal was closer to Korea, whereas the "hard-sell" appeal was closer to U.S. Further, a cluster of hard-sell appeal is located relatively closer to Japan, compared to Korea. "Comparative" appeal was closer to U.S., and "direct response" appeal was located at the center of the map and thus, had almost equal distance from three countries. These results provide partial support for Hypotheses 1, 2 and 3, and are closely consistent with the chi-square results. ------------------------- Figure 1 about here ------------------------- ------------------------- Table 13 about here ------------------------- Discussion Chi-square tests suggested that US ads were more likely to use hard-sell appeals and Korean soft-sell. Also, US ads tended to use hard-sell appeal more than Japanese ads. Furthermore, Japanese ads used more hard-sell appeals, whereas Korean ads had more soft-sell appeals. In addition, comparative appeal was found significantly more often in US ads than in Japanese and Korean ads. However, no significant difference was found in direct response among three countries. Data from concept mapping were consistent with such results. Hard-Soft Sell: It was expected that hard-sell appeal was more likely to be employed in monochronic and individualistic cultures with linear logic and explicit conclusion and low power distance, whereas soft-sell appeal was more likely to be used in polychronic and collectivistic cultures with indirect and suggestive communication tone or style. In addition, hard sell appeal was more likely to be employed in markets with high advertising expenditure per capita, more types of products and less strict government control of advertising. Thus, difference in hard-and-soft sell appeal between US and Korean ads can be explained by both cultural and market differences. In addition, difference in such appeals between US and Japanese ads can be explained more by cultural distance. As expected, such a difference between Japanese and Korean ads may be explained by market distance. Noteworthy is that Korean ads had more soft-sell appeal, though they were found to be significantly more informative. This is contrary to the notion that hard-sell ads tend to have more information cues, while soft-sell ads had fewer. However, looking especially at Korean ads, artifacts such as price, components or contents, and availability information cues were more consistently found than in other countries'. As was already operationalized, these factors were not considered as contributing factors to hard-soft sell appeals. Comparative Appeal: Results showed that US ads tended to use this appeal more frequently than did Japanese and Korean ads. Contrary to the expectations, no significant difference in comparative appeal was found between Japan and Korea. Concept mapping also indicated that comparative appeal was distinctly clustered more closely to US, compared to Japan and Korea. Comparative appeal was expected to appear more often in monochronic cultures with individualism. In addition, this appeal was more likely to be used in competitive markets with abundant types of products and less strict government control of advertising as well as in those with available advertising personnel. Possibly, individualism-collectivism as well as strict legal regulation of advertising are major determinants for difference in comparative appeal and for localization between ads in US and Japan, and US and Korea. Also, this reflects the Japanese and Korean "cultural characteristics of avoiding confrontation"; in addition, the Japanese and Korean do not want competitors to lose face (Wagenaar, 1978). Accordingly, comparative ads in Japan and Korea tend to be legally restricted by their governments and to be both explicitly and implicitly avoided by advertisers as well as consumers who favor group harmony over individual self-interest and desire. Thus, differences in comparative appeal between US and Korean ads can be explained by both cultural and market distances. In addition, difference in such appeals between US and Japanese ads can be explained more by cultural distance and partly by market distance especially in legal regulation of comparative appeal in advertising. However, no significant difference in comparative appeal was found between Japanese and Korean ads. This is another example that as mentioned in the above, cultural similarity had more overriding power than market distance. Direct Response Appeal: Contrary to the expectation, chi-square results showed no significant difference in any paired comparisons of countries. Concept mapping indicated that this cluster is placed at the center of the map, i.e., it tended to co-occur with equal frequently with US, Japan and Korea. This was more likely to be used in monochronic cultures emphasizing linear, logical, direct and explicit communication style. Also, this appeal was expected to be used in markets with more US advertisers - originally invented and got fully oriented to this selling technique - as well as in those with high advertising expenditure per capita and many types of products. However, the expectation was not supported. One of the reasons may be that such expectations mostly resulted from studies on domestic brand ads in each specific country, rather than on multinational brand ads. Thus, characteristics of ads may be one explanatory factor. Perhaps direct response may be the least sensitive appeal to cultural and market conditions and instead, be the common denominator for multinational brand ads which were generally new to consumers and tend to solicit their high involvement-decision making and further inquiries for more information. Similarity of Ad Appeals Overall, no significant differences in similarity ratings of ad appeals were found between any country dyads. However, when profiled by product category, ad appeals between Japanese and Korean ads for jewelry turned out to be more similar than those between US and Korean ads. This provided partial support for the expectation that ads between Japan and Korea which have cultural similarity but market distance, would be more similar than those between US and Korea which have both cultural and market distance. This finding suggests regarding jewelry ads, ad appeals can be more standardized between ads in Japan and Korea than between ads in US and Korea. Such a difference between US and Japan or Korean ads might possibly be explained by difference of gender roles specific to them. For example, Korean and Japanese women in collectivistic cultures with authoritative and hierarchical structure - i.e., high power distance - tend to pursue their ideal self-image to be recognized their social positions or status in their groups, while American women in individualistic cultures with more horizontal and informal relationship - i.e., low power distance are more likely to look for their actual or realistic self-image and self-interest, and tend to ignore the formality. Thus, this trend may have contributed to the differences in ad appeal for jewelry ads among them. In addition, ad appeals between US and Japanese ads for alcohol-tobacco were found to be more similar than those between US and Korea, and Japan and Korea. For this market sensitive product, market similarity between US and Japan had more explanatory power than cultural similarity between Japan and Korea. Thus, ad appeals between US and Japan could be more similar than those between Japan and Korea. Plausibly, the industries relevant to these products are fully deregulated to private companies: thus free market competition is ensured. These two countries have been enjoying a relatively free trade system for these products, compared to the Korean alcohol-tobacco industry which is still under regional cartel system or restricted by the government. Also, these products in both US and Japan are generally similar PLC which is on the maturity stage, whereas those in Korea is still on the growing stage. Thus, as far as alcohol-tobacco products are concerned, more similarity can be found between US and Japan than between US and Korea, and even between Japan and Korea. Contrary to our conceptual prediction, this suggests that at least for ads of alcohol-tobacco which tend to be sensitive more to market conditions, market similarity is more useful to predict the degree of campaign performance in ad appeals, rather than cultural similarity. Hard-and-soft sell appeal was significantly different among three countries. Thus, a localized approach is obviously suitable, between these paired countries, for ad messages using such appeals. Dissimilarity in comparative appeal may be the reason that advertising message should be localized between US and Korea, and US and Japan. Also, similarity in this appeal between Japan and Korea may be a reason that ads between them should be more standardized. In addition, it was found that product types were major contributing factors to decisions for standardized or localized approach, because they differ significantly in their sensitivities to either cultural or market conditions. Overall, similarity and dissimilarity of three major advertising factors among US, Japan and Korea were examined and discussed with the emphasis on their associations with cultural and market conditions. The expectations clearly supported that differences in cultural characteristics and market conditions lead respectively to cultural distance as well as market distance between different cultural groups. Further, an inductive inference from these results suggests that the combination of such cultural distance and market distance should ultimately lead to "advertising distance" between cultural groups - here expressed as the degree of standardization and localization: if it becomes closer or shorter between countries, ads tend to be more standardized, whereas if it becomes farther and wider, then ads are more likely to be localized. Limitations of the study A primary weakness of this study is the small sample size. An examination of 243 magazine ads for common multinational brands (81 sets) from three countries might weaken the reliability of the obtained results. Also, this small sample size might have increased the likelihood of a type II error. With 81 sets, the statistical tests undertaken may not reveal significant differences when, in fact, such differences indeed exist in the population. Also, since these ads were obtained by purposive sample, they may not be representative of all ads in countries, rather mostly represent elite market. However, since the major purpose of this study was to observe and analyze ad transferability between countries, such a sampling technique was unavoidable. In addition, what this study did not address and was not designed to address was to investigate the effectiveness of ad campaigns on consumers. This is a question particularly worthy of exploration. For the advertising practitioner, an understanding of which technique in ad is more effective is also important. Another major limitation is that although this study was conceptually based on cultural characteristics and market conditions, it could not provide an ideally objective guideline for their interactions - i.e., when both conflict in explaining ad difference or similarity. However, the results of this study are believed to provide a helpful direction for future work. In line with this, this study focused on only three specific countries as samples and even country group with both cultural and market similarity could not be included into sampling frame. Thus, the results of this study might have a weak external validity. Also, this research was based on only magazine advertisements to compare ad transferability. However, it is ideal to compare and ensure the applicabilities of the results to a variety of media such as TV, newspaper and radio. Another weakness was regarding the classifications of ad appeals. Ad appeals in this study had no proper classification categories which were exclusively and exhaustively designed. This might have hampered more robust statistical analysis. Future research needs to add more appeals such as sex appeal, humor appeal etc., in addition to the three appeals investigated in this study. Summary of Results and Implications Discussions based on study results showed mixed and intertwined arguments against or for the expectations for this study. These can be summarized according to the order to conceptual process model that this study developed earlier for its utility test. Briefly stated, difference/similarity of cultural and market conditions will lead to cultural and market distance respectively. Such distances were expected to not only determine clustering patterns of countries, but also a degree of campaign performance such as standardization and specialization. This process was predicted to influence execution and development of ads. From each specific stage, managerial implications may be more efficiently provided. Cultural Characteristics and Market Conditions This study generally identified a set of cultural and market dimensions that could explain the different natures of magazine advertising among three countries. Specifically, it demonstrated that cultural characteristics such as individualism-collectivism, power distance, uncertainty avoidance and perception of time independently and in an integrated form, affected differences in ad appeals among ads from US, Japan and Korea. In addition, market conditions such as advertising expenditure per capita, presence of US advertisers and ad agencies, government control of advertising, advertising personnel shortage and product type were also major contributing factors to such differences of magazine advertising messages. In addition, this study found additional intervening cultural and market variables affecting such differences which were media type, media usage pattern, product life cycle, product category, social attitude toward product and gender role. Ad Appeals: Cultural and market conditions could lead to significant difference in hard-and-soft sell appeals between three countries. US ads had more hard-sell appeals than Japan which had more than Korean ads. As such, hard-sell appeal was used in US ads - i.e., monochronic and individualistic cultures and market with less strict legal regulation of advertising, than Japan - i.e., polychronic and collectivistic cultures with mature competition - and Korea - i.e., polychronic and collectivistic culture with low advertising expenditure per capita and strict government control of advertising. In comparative appeal, US ads had this appeal more often than did Japanese and Korean ads. As expected, comparative appeal was found in monochronic and individualistic cultures with less strict regulation of advertising. Cultural and Market Distance The study's proposed theoretical framework of cultural and market distance overall predicted that differences in cultural and market conditions would lead to advertising distances. Cultural and market distances were predicted by their conceptual scales and thus, measured differences in creative strategy, information content and ad appeals between country dyads through similarity test. Ad Appeals: Ad appeals between Japan and Korea for jewelry ads turned out to be more similar than those between US and Korean ads for the same product. For this product, ad appeals between the dyad with cultural similarity and market distance are more similar than those between the dyad with both cultural and market distance. In jewelry ads, ad appeals between Japan and Korea where only market distance exists were more similar than those between US and Korea where cultural and market distance co-exist. As noted, it is generally clear that difference and similarity in ads between country dyads could be explained by cultural and/or market distance between them. Before reaching this observation, what is important for advertisers is that they should understand the relative importance of the various factors influencing advertising difference /similarity. Further, the relative extent of such difference/similarity in ads varies in certain elements and certain condition - i.e., according to the interaction of country dyads with a variety of cultural and market conditions. Country Clustering and Degree of Campaign Performance Country clustering or grouping was expected to be based on relative degree of cultural distance/similarity and market distance/similarity. Study results on these offer a guideline for decision-making on the degree of standardization or specialization. Ad Appeals: Although cultural and market conditions could not lead to advertising distance between the analyzed countries, they could lead to a significant difference in cultural and market distance for alcohol-tobacco and jewelry. Specifically, in regard to ad appeals in alcohol-tobacco ads, US and Japan can be clustered into the same group and thus could be more standardized, compared to Japan and Korea. For ad appeals in jewelry ads, Japan and Korea could be in the same cluster and their ads could be more standardized than ads between US and Korea. Overall, it is clear that this model was relatively well tested, though the results were not based upon fully deductive reasoning. Although three countries were chosen for the study, each represents typical pattern of global country components and clusters. Also, the results of this study provide the practitioner with a glimpse of the current state of international advertising. Nonetheless, as far as results from this study were based only on content analysis of current ads, rather than measuring effectiveness of ads on consumers, absolute recommendations for advertisers may not be valid. Thus, presuming that the practices of ad campaigns by a number of famous and prestigious multinational brands could be relatively more typical and exemplary, this study would suggest some implications and recommendations. Although results tend to provide partial answers for the multitude of questions that practitioners are likely to have regarding standardization vs. specialization, the glimpse should be sufficient to caution them against an overly optimistic embrace of the extreme position of globalization or specialization of international advertising. Further, on the basis of results, it is expected that this study can offer a framework for international advertisers in doing business, and for academics in crystallizing a universal framework for international advertising. These are: I. Decision for standardization or localization needs to be based on degree of advertising distance determined by double-edged aspects of cultural and market: from cultural similarity and market similarity for full standardization ----> cultural similarity and market difference for less standardization ----> cultural difference and market similarity more toward to localization ---> to cultural and market difference for full localization. However, such decisions may depend on ad-related factors and product categories. Ad Appeals: Localization may be suggested but varies in type of appeals. Hard-soft sell appeal is expected to be localized among three countries. This appeal needs to be all differently prescribed between individual country dyad. Comparative appeal can be localized between US and Korea as well as US and Japan. These results are true especially for alcohol-tobacco and jewelry ads. Comparative appeal may be more standardized between ads from Japan and Korea. It is also expected that direct response appeal may be more standardized among the three countries in all product categories. As mentioned, these suggestions are based on the analysis of reality. In order to validate their practicalities and applicabilities into this reality, an effectiveness study of ads on consumers should follow. Nevertheless, presuming that what has been going on in international advertising could be what advertisers for multinational brands have chosen to support, such fact-driven suggestions may be more practical, useful and less risky. From this point of view, here is suggestions with a specific example for "Debeer diamond on print ads." II. Further, it is suggested that to see their dissimilarities between cultural groups, their similarities should be first considered and vice versa. More important, for standardization, advertisers need to look into the similarity which could override the difference either in culture or market. Also, for localization purposes, advertisers may need to look for the difference which could override the similarity either in culture or market. Therefore, beyond the prevalent notion of regional proximity for clustering countries, this study suggests that a relativity of distance in culture and market should be considered in evaluating clustering pattern of countries and determining degree of campaign performances. Conclusion There seems to be a major controversy between the advocates of think global and the proponents of "think global but act local." The results of this study would support the latter argument. This slogan might suggest that "thinking global" reflects the strategic objective of international advertising campaign which is its global reach-out beyond the differences, whereas "acting local" is concerned more with tactical execution in implementing such a strategic objective. Although cultural and market differences seem to dictate the strategy and execution of advertising among US, Japan and Korea, certain commonalities in each advertising approach are apparent. This implies that there is always inherent common ground rooted in modern materialism across cultures. This is because differences between national consumer cultures and market environments are not absolute but a matter of degrees on a continuum (Lin, 1993). In other words, it can be argued that extreme performance of ad campaign - i.e., either completely standardized or localized - does not exist in international context. Instead, the decision should be adjusted through relative appraisal of cultural and market distance scale between individual country dyads. Therefore, when developing customized ads for local markets, cultural characteristics, market conditions and other intervening variables such as media type, PLC, product type, gender, and other cultural traits related to communication patterns and styles etc. should be defined and evaluated in terms of their weighted magnitudes of impact between different cultural groups. Noteworthy is that as contemporary market conditions around international environment is rapidly evolving, ads may develop more toward standardization. In other words, advertising similarity due to evolving market conditions could predominantly override advertising difference caused by cultural characteristics. It is further expected that dominance of market conditions over cultural characteristics will reemerge as another issue-provocative agenda in international advertising. 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Table 1.Hard-and-Soft sell Appeals US vs.Korea _______________________________________________ US Korea _______________________________________________ Hard Sell 75.3% 41.9% Soft Sell 24.7% 58.0% ________________________________________________ X2 = 18.6, df=1, p < .01 Table 2. Comparative Appeal and Direct Respons US vs.Korea _________________________________________________________________ US(%) Korea(%) Significance level _________________________________________________________________ Comparative Appeal 33.3 18.5 X2 = 4.6, p < .05 Direct Response 55.5 58.0 X2 = .2, p < .63 _________________________________________________________________ Table 3. Hard-and-Soft sell Appea US vs. Japan _______________________________________________ US Japan _______________________________________________ Hard Sell 75.3% 60.5% Soft Sell 24.7% 39.5% _______________________________________________ X2 = 4.08, df=1, p < .05 Table 4. Comparative Appeal and Direct Response US vs. Japan _______________________________________________________ US(%) Japan(%) Significane level _______________________________________________________ Comparative Appeal 33.3 11.1 X2= 11.6, p <.05 Direct Response 55.5 58.0 X2= .2, p <.63 _______________________________________________________ Table 5. Hard-and-Soft sell Appeals Japan vs. Korea ______________________________________________ Japan Korea ______________________________________________ Hard Sell 60.5% 41.9% Soft Sell 39.5% 58.0% ______________________________________________ X2 = 5.59, df=1, p < .05 Table 6. Comparative Appeal and Direct Response Japan vs. Korea ________________________________________________________ Japan(%) Korea(%) Significance level ________________________________________________________ Comparative Appeal 11.1 18.5 X2 = 12.5, p <.001 Direct Response 58.0 58.0 X2 = 0.0, p < 1.0 ________________________________________________________ Table 7. Mean Similaritya of Ad Appeals US/Korea vs. US/Japan ____________________________________________________________ US/Korea n US/Japan n t 1 tailed p. ____________________________________________________________ Mean Similarity 4.03 162 4.14 162 - 0.71 p <.23 ____________________________________________________________ a Dyad ads were rated on a 1 - 5 scale where 1 indicates "very dissimilar and 5 indicates "very similar." Table 8 Mean Similarityb of Ad Appeal by Product Category US/Korea vs. US/Japan ____________________________________________________________ US/Korea n US/Japan n t 1-tailed p. ____________________________________________________________ Food-Beveragea 3.6 3 4.6 3 Alcohol-Tobacco 4.1 7 4.7 7 -2.45 p<.012* Personal Care 4.2 20 4.0 20 0.61 p <.27 -Cosmetics Clothing 3.9 15 3.8 15 0.33 p <.42 Jewelry 3.5 14 4.0 14 -1.26 p <.10 Car 4.2 7 4.1 7 0.32 p <.37 Electronics 4.6 11 4.4 11 0.56 p <.28 Travel Servicesa 3.0 4 3.7 4 ____________________________________________________________ * p < .05 a Cells were too small for statistical analysis b Dyad ads were rated on a 1 - 5 scale where 1 indicates "very dissimilar and 5 indicates "very similar." Table 9. Mean Similaritya of Ad Appeals US/Korea vs. Japan/Korea ____________________________________________________________ US/Korea n Japan/Korea n t 1-tailed p. ____________________________________________________________ Mean Similarity 4.03 162 4.07 162 -0.22 p <.43 ____________________________________________________________ a Dyad ads were rated on a 1 - 5 scale where 1 indicates "very dissimilar" and 5 indicates "very similar." Table 10. Mean Similarityb of Ad Appeal by product category US/Korea vs. Japan/Korea ____________________________________________________________ US/Korea n Japan/Korea n t 1-tailed p ____________________________________________________________ Food-Beveragea 3.6 3 3.6 3 Alcohol-Tobacco 4.1 7 3.7 7 1.34 p <.10 Personal Care -Cosmetics 4.2 20 4.3 20 -0.16 p <.48 Clothing 3.9 15 3.7 15 0.48 p <.31 Jewelry 3.5 14 4.4 14 -2.13 p <.021* Car 4.2 7 4.7 7 -1.64 p <.063 Electronics 4.6 11 4.1 11 1.23 p <.11 Travel Servicesa 3.0 4 3.0 4 ____________________________________________________________ * p < .05 a Cells were too small for statistical analysis. b Dyad ads were rated on a 1 - 5 scale where 1 indicates "very dissimilar" and 5 indicates "very similar." Table 11. Mean Similaritya of Ad Appeals US/Japan vs. Japan/Korea ____________________________________________________________ US/Japan n Japan/Korea n t 1-tailed p. ____________________________________________________________ Mean Similarity 4.14 162 4.07 162 0.44 p <.32 ____________________________________________________________ a Dyad ads were rated on a 1 - 5 scale where 1 indicates "very dissimilar" and 5 indicates "very similar." Table 12. Mean Similarityb of Ad Appeals by product category US/Japan vs. Japan/Korea _______________________________________________________________ US/Japan n Japan/Korea n t 1-tailed p _______________________________________________________________ Food-Beveragea 4.6 3 3.6 3 Alcohol-Tobacco 4.7 7 3.7 7 2.94 p <.006* Personal Care -Cosmetics 4.0 20 4.3 20 -0.82 p <.21 Clothing 3.8 15 3.7 15 0.30 p <.38 Jewelry 4.0 14 4.4 14 -0.81 p <.21 Car 4.1 7 4.7 7 -1.28 p <.11 Electronics 4.5 11 4.1 11 0.72 p <.23 Travel Servicesa 3.7 4 3.0 4 _______________________________________________________________ * p < .01 a Cells were too small for statistical analysis. b Dyad ads were rated on a 1 - 5 scale where 1 indicates "very dissimilar" and 5 indicates "very similar." Table 13. Attributes Associated with Ad Appeals by Country _____________________________________________ Standardized Loadings: First Three Coordinates HARD 0.90 -0.42 0.15 SOFT 0.60 0.80 -0.11 COMPAR 0.81 -0.46 -0.36 DIRECT 0.99 0.10 0.13 KOREA 0.59 0.62 -0.52 JAPAN 0.53 0.19 0.83 USA 0.74 -0.60 -0.31 _____________________________________________
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