Science Current Events | Science News | Brightsurf.com
 
Email a Friend Send to a friend
Printer Friendly Print The language of luxury

The language of luxury

September 18, 2008

Virtually every population in the world has at least one thing in common: multinational companies are vying for their attention. From General Mills in India to Godiva Chocolate in Paraguay, advertising is one of the most significant expenditures companies make the world over. University of Minnesota researcher Rohini Ahluwalia asks... "to get the most bang for their buck, how should these corporations talk to consumers - in English, their native language, or both?"

Several countries in Southeast Asia, Europe and North America, among others, have bilingual populations that are fairly fluent in a "foreign" language (typically English or French) as well as at least one local or native language. In new research, Ahluwalia, an associate professor of marketing at the Carlson School of Management and Aradhna Krishna of the University of Michigan look at the complexity and benefits of advertising to these populations.




"The issue of bilingual consumers is increasingly crucial for multinational corporations," said Ahluwalia. "To someone in Spain, an advertisement for a luxury item from a foreign firm could have a more positive impact if delivered in English or "Spanglish" than if it were delivered in only Spanish. Conversely, if the advertised product was a necessity, the native language may be more persuasive."

Advertising language will affect slogan evaluation for foreign corporations, but not for local companies, Ahluwalia shows. To demonstrate the effect, the researchers conducted a study in India where much of the population is fluent in English and Hindi, with both languages viewed favorably. They found that while the Hindi language is associated with "belongingness" (close, friendly, familiar), English is associated with "sophistication" (global, hip, upper class). For a necessary item like laundry detergent, advertisers are better off using the native language for its relatibility. But for luxury items, which can range from chocolate to a brand new car, a mixed-language approach will be more effective.

"People expect mixed language from local companies. But from multinationals, it is unexpected, so a customer's attention is grabbed by the second language in the ad. It makes the ad's language stand out," explained Ahluwalia. "The consumer's focus on the language makes them think about the associations of the language used that is, what does it seem to convey? Sophistication, modernity or closeness? This effect could be very favorable for a foreign company selling a discretionary or luxury product."

The implications for multinational firms are immense. "From a foreign firm, English-only ads may not be as effective, and ads in the local language may backfire, invoking skepticism in the consumer. The safest bet is to use mixed-language ads when working with bilingual markets," states Ahluwalia. From French and English advertisements in Canada to Spanglish ads across Latin America, firms will be able to target global bilingual markets by showing off their language savvy and insights into local culture.

University of Minnesota



Related Multinational Current Events and Multinational News Articles Multinational Current Events and Multinational News RSS Multinational Current Events and Multinational News RSS
New study calls for global project finance reform
The worldwide financial crisis puts a new emphasis on infrastructure spending, seen by many governments as a way to head off economic downturn, and as a way of holding on to achievements made in the developing world. Recent research by the Economic and Social Research Council finds that Project Finance (PF), one of the most commonly used methods of funding major infrastructure projects in the developing world, can pose potential risks in the communities in which it is deployed.

Waste coffee grounds offer new source of biodiesel fuel
Researchers in Nevada are reporting that waste coffee grounds can provide a cheap, abundant, and environmentally friendly source of biodiesel fuel for powering cars and trucks. Their study has been published online in the American Chemical Society's (ACS) Journal of Agricultural and Food Chemistry, a bi-weekly publication.

Novel treatments show improvements in survival and response rates for leukemia and lymphoma
The use of dexamethasone early in the treatment of children with acute lymphoblastic leukemia, the most common type of childhood cancer, may help reduce the risk of relapse.

Research highlights new approaches to prevent blood clots
Blood clotting, or coagulation, is an important process that prevents excessive bleeding when a blood vessel is injured.

Study Investigates Non-Surgical Placement of a Gore-tex Type Device in the Heart to Stop Recurrent Strokes and Mini-Strokes
A study is under way at Rush University Medical Center using a small, soft-patch device made of a Gore-tex-type material - often used to make durable outerwear - to close a common hole found in the heart called a patent foramen ovale (PFO) in order to prevent recurrent strokes and transient ischemic attacks (TIAs) in adults.

Vitamin C lowers levels of heart disease biomarker, finds study, adds to debate of health benefits
A new study led by researchers at the University of California, Berkeley, adds to the evidence that vitamin C supplements can lower concentrations of C-reactive protein (CRP), a central biomarker of inflammation that has been shown to be a powerful predictor of heart disease and diabetes.

U.S.-Led, International AGAP Team Poised to Probe One of Antarctica's Last Unexplored Places
A U.S.-led, multinational team of scientists from six nations will pierce the mysteries of one of the globe's last major unexplored places this month. Using sophisticated airborne radar and other Information Age tools and techniques, the scientists will virtually "peel away" more than four kilometers (2.5 miles) of ice covering an Antarctic mountain range that rivals the Alps in elevation, and which current scientific knowledge suggests shouldn't be there at all.

Scientists working to protect NI from Bird Flu
Queen's scientists are involved in two international projects aimed to protect Northern Ireland's agri-food industry from Bird Flu and African Swine Fever, a disease which kills pigs.

Aberrations in region of chromosome 1q21.1 associated with broad range of disorders in children
Researchers have discovered a submicroscopic aberration in a particular region of human chromosome 1q21.1 that appears to be associated with a variety of developmental disorders in children.

The drivers of tropical deforestation are changing, say scientists
A shift from poverty-driven to industry-driven deforestation threatens the world's tropical forests but offers new opportunities for conservation, according to an article coauthored by William Laurance of the Smithsonian Tropical Research Institute in Panama.
More Multinational Current Events and Multinational News Articles


Multinational Business Finance (11th Edition) (The Addison-Wesley Series in Finance)
by David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett

Renowned for its authoritative, comprehensive coverage of contemporary international finance, this market-leading text trains the leaders of tomorrow's multinational enterprises to recognize and capitalize on the unique characteristics of global markets. Because the job of a manager is to make financial decisions that increase firm value, the authors have embedded real-world mini-cases throughout...



Multinational Financial Management, Study Guide
by Alan C. Shapiro

* Integrates economic and political factors underlying exchange rate determination. * Uses the balance-of-payments framework to assess economic links among nations. * Presents a comprehensive discussion of the foreign exchange market. * Discusses the key parity conditions in international finance that relate interest rates, exchange rates, and inflation rates, and the underlying...



Multinational Financial Management
by Alan C. Shapiro

Specific guidelines for making financial decisions in an international context Learn how to make sound financial decisions in the multinational firm with Alan Shapiro's Eighth Edition of Multinational Financial Management. Shapiro provides a clear conceptual framework for analyzing key financial decisions in multinational firms-a framework that you can rely on throughout your career. ...



Fundamentals of Multinational Finance (3rd Edition) (Prentice Hall Series in Finance)
by Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman

By grounding concepts in the context of illuminating case studies and real-world examples, Fundamentals of Multinational Finance, 3/e  familiarizes finance and international business readers with the fundamental concepts and tools necessary to implement an effective global financial management strategy. Global Financial Environment: Globalization and the Multinational Enterprise; Financial...



International Accounting and Multinational Enterprises
by Lee H. Radebaugh, Sidney J. Gray, Ervin L. Black

Make informed decisions in today's dynamic international business environments International accounting has never been so exciting. Not only is the pace of international business, finance, and investment rapidly increasing, but we are also moving closer than ever before toward a convergence of accounting standards worldwide. Updated and revised to keep pace with these changes, this...



Multinational Management (with Map)
by John B. Cullen, K. Praveen Parboteeah

The globalization of companies, the growing importance of emerging markets, the global impact of wars, terrorism, and even disease define the nature of today's business. Developing and making strategic choices are the mainstays of successful decision making in this increasingly complex global environment. And the new fourth edition of Cullen & Parboteeah's MULTINATIONAL MANAGEMENT: A STRATEGIC...



Multinational Finance
by Kirt Butler

Multinational Finance assumes the viewpoint of the financial manager of a multinational corporation with investment or financial operations in more than one country. The text provides a framework for evaluating the many opportunities, costs, and risks of multinational operations in a manner that allows readers to see beyond the algebra and terminology to the general principles of multinational...



Producing Security: Multinational Corporations, Globalization, and the Changing Calculus of Conflict (Princeton Studies in International History and Politics)
by Stephen G. Brooks

Scholars and statesmen have debated the influence of international commerce on war and peace for thousands of years. Over the centuries, analysts have generally treated the questions "Does international commerce influence security?" and "Do trade flows influence security?" as synonymous.In Producing Security, Stephen Brooks maintains that such an overarching focus on the security implications of...



Multinational Enterprises and the Global Economy
by J. H. Dunning, Sarianna M. Lundan

This thoroughly updated and revised edition of a widely acclaimed, classic text will be required reading for academics, policymakers and advanced students of international business worldwide. Employing a distinctive and unified framework, this book draws together research across a range of academic fields to offer a synthesis of the determinants of MNE activity, and its effects on the economic...



Global Inc.: An Atlas of the Multinational Corporation
by Medard Gabel, Henry Bruner

"In the future there will be two kinds of corporations; those that go global, and those that go bankrupt."—C. Michael Armstrong, CEO, AT&T Of the 100 largest economies in the world, 53 are corporations. A handful of corporate giants control most of the world's energy, technology, food, banks, industry, and media. Yet despite the ubiquity of enormous multinationals and their tremendous...

© 2009 BrightSurf.com