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I I I Research International Asia Pie. Ltd. 7500A Beach Road, 3501 Windsor House The Plaza #09-302 311 Gloucester Road, Singapore 0719 Causeway Bay, Hong Kong. Tel: +65 291 7003 Tel: +852 894 6244 Fax: +65 291 7486 Fax: +852 576 7247 ~ RESEARCH NTERN ATIONAL HONG KONG YAMS STUDY 1993 I I I I I I 3 I ~ I I ~ ] a A Qualitative Investigation Of Young Adult Male Smoker Values, Lifestyles and Brand Images Prepared for Philip Morris Asia Inc. and Philip Morris International Inc. by Research International Asia, for and on behalf of Research International UK December 1993 Argentina, Australia, Austria, Belgium, Brazil, Chile, Denmark, Ecuador, Finland, France, Germany, Greece, Hong Kong, Hungary, India, ltaly, Japan, Kenya, Netherlands, New Zealand, Norway, Philippines, Portugal, Saudi Arabia, Singapore, South Africa, Spain, Sweden, Thailand, United Kingdom, USA, USSR.

I I CONTENTS PAGE I I SECTION ONE: EXECUTIVE SUMMARY 1.0 Background 2.0 Philosophy 3.0 Objectives 4.0 Approach 1 I I I I I I I I I I ] 2 4 5 5.0 Main Findings 6 6.0 Conclusions and Strategic Review 16 SECTION TWO: DEVELOPMENT OF YAMS VALUE SYSTEM SECTION THREE: SUMMARY PRESENTATION CHARTS SECTION FOUR: FULL PRESENTATION CHARTS (Volume 2) ~

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I I I I I I I I I I I I I I I I ~ I Research International Asia/MDR EXECUTIVE SUMMARY - YAMS Research Hong Kong 1993 1 Background Following the successful review of lifestyle research among Young Adult Smokers (YAS) by Philip Morris International in Europe, it was decided that a similar approach could be applied in Asia. With Hong Kong one of the region's most mature markets, the territory was selected as the first market for the research to be conducted. Once completed and reviewed, the methodology was to be evaluated and a decision made by Philip Morris Asia Inc. whether to replicate the study in other Asian markets or not. The young adult smoker study, of which the European results were discussed as part of the Monte Carlo conference on Marlboro Red in 1992, examines young adult lifestyles, attitudes and aspirations, as well as their opinions of media, advertising and various cigarette brand, promotion and sponsorship activities. Philip Morris Asia Inc. Hong Kong YAMS Project Page 1 of 31

I Research International Asia/MDR I I I I I I I I I I I I I J 2 Philosophy "When the goal is truly innovative products and markets, simply being customer-led is not enough ....of course it is important to listen to customers, but it is hard to be market leaders if you do no more than that....Market research and segmentation analyses are unlikely to reveal opportunities. Deep insights into the needs, lifestyles and aspirations of today's and tomorrow's consumers, will " Hamel and Prahalad, Harvard Business Review, July 1991 With branding, a crucial element of the marketing mix for cigarettes, it is important, especially in a relatively mature market like Hong Kong, to understand underlying how cultural belief systems and values impact on the market's interpretation of these brand images. Gaining an insight into lifestyles and behaviours enables the marketer to better comprehend how the consumers view their brand and therefore assess the relevance of the images and messages associated with the brands they manage. For example, in Europe where Philip Morris has developed a strong and salient image for its flagship brand Marlboro, the research suggested that the values projected by the brand were becoming less relevant to the YAS segment who were seeking more reality and less imagery. This transition towards a need for more relevant communication was also accompanied by a transition towards so-called neo-traditional values which are oriented towards authenticity, self-control and substance. Essentially, this approach looks to identify how changes in society are impacting upon the lifestyles and values of consumers and how these in turn are altering needs and expectations related to brands and products. In order to better understand how YAMS perceive and react to brand communications and images, it is therefore useful to understand their own personal philosophy ie. how they lives their lives, and what they want to achieve. Philip Morris Asia Inc. Hong Kong YAMS Project Page 2 of 31 4

Research internationat Asia/MDR I I I I II I I I I I Through a greater understanding of these dimensions, marketers can tailor more effective communication programmes, by developing messages of the type this segment are open to hearing, in terms they understand. The YAMS study is oriented to providing this insight. As shown above, all these factors incorporated in the project naturally impact on consumer behaviour. In Hong Kong, this is especially important as brand perceptions drive "conspicuous consumption" in many categories ranging from paper tissues to beer to cigarettes, being inextricably linked to images of success, good fortune and face. ~ N) Ln a ~ -a cr ~ ~ . ~ ~ t -~ I I J Philip Morris Asia Inc. Hong Kong YAMS Project Page 3 of 31 -1

1 Research International Asia/MDR I ii I J ] I I I 3 I 7 I I I I 3 Objectives The main objectives for this study were generally similar to those applied in the European review of YAS. The main objectives of this study were as follows: (1) To gain a thorough understanding of Young Adult Male Smokers (YAMS) in terms of their attitudes, values, aspirations, interests and lifestyles, and specifically how young adult male smokers perceive Marlboro as a brand in relation to the competition; (2) To gauge the perception of the current Marlboro campaigns (thematic, tactical and sponsorship) vs competitive brands among YAMS; (3) To fmd out any distinction, if any, in the image and perception of Marlboro Red and Marlboro Lights in the eyes of the YAMS. Specifically, the study needs to identify how consumers view Red vs Lights (total "consumer offering"); and how they view each of the brands' various elements eg. packaging, product and advertising; (4) To assess the impact and overall image benefits of various Marlboro sponsorship and trade-mark diversification activities as well as their overall acceptability to the YAMS segment. Philip Morris Asia Inc. Hong Kong YAMS Project Page 4 of 31 4

I I I I I I I I I 1 I I I I I I Research International Asia/MDR 4 Approach As noted, the research applied the successful research design applied in Europe. This involved an intensive (3 hour) in-depth interview which addressed a wide range of subjects from lifestyles and aspirations to a detailed exploration of brand imagery and communication preferences. The research itself was undertaken among eighty (80) young adult male smokers aged between 18 and 24 divided into four groups according to the brands they smoked (regular brand): Marlboro Red, Marlboro Lights, Salem Lights and Kent. All respondents were required to meet normal Philip Morris "smoker" definitions. In terms of analysis, this largely followed the format developed by Philip Morris International in preparing an overview of the European research whereby a "value system" was developed for Hong Kong (see Section Two for discussion). This "value system" essentially reflected the universe of lifestyle motivations held by the respondents identified in reviewing responses to the lifestyle, life philosophy and aspirations section of the interview. From the Hong Kong research, eight (8) "value dimensions" were identified reflecting a mix of traditional and adapted Chinese values as well as a range of more modem values normally associated with "western" cultures, (discussed in more detail in the following section). This "value system" was then used to evaluate the position of the four main brand of interest as well as a number of well known "International Success Brands" including Polo, Nike, Coca-Cola, Swatch and Levis. This involved reviewing image and communication associations for each brand and interpreting them in terms of the "value system". As a result, the values implied by each brand were represented on a two-dimensional "map", and the various positioning implications for each brand discussed. Philip Morris Asia Inc. Hong Kong YAMS Project Page 5 of 31

I I I Ii I I I I I I I I I Research International Asia/MDR 5 Main Findings Value System Development Based on the interviews and a review of various commentaries and papers on Chinese as well as cross-cultural social-psychology, an eight dimension "value system" was developed for Hong Kong as shown below. This value system, like that developed by PMI for the European YAS study, represented the wide spectrum of "value orientations" held by the respondents. Specifically, the eight "value dimensions" or orientations are descriptive labels for a set of behaviours or motivations which encompass each dimension as shown. Adapted Hong Kong YAMS Value System y ~ -M ~tn.nd.l s«~ruy Own Bnsinss Philip Morris Asia Inc. Hong Kong YAMS Projed Page 6 of 31 Power/ I Achievement /\ D~~+ ~oe" Leadership I orfentatio 7, ~ M F ~

I Research International Asia/MDR I I I I I I I I E- ] I I I I I I While not all of the respondents were motivated by the same values, to the same degree, responses were very homogenous in contrast to those in Western Europe. This consistency would appear to largely be a result of a combination of factors, namely: the economic prosperity of Hong Kong, the stability of the socio-political environment due to the laissez-faire administration of the territory by Britain, together with Chinese social norms of familism with its mutually supporting structures and a general Chinese orientation for conformity, and security through acceptance by others etc. The "value system" itself reflects the unique nature of the Hong Kong environment and combines both traditional and adapted Chinese value orientations such as the reliance on relationships and respect (those on the left hand side of the map), with the more "modem" self-oriented preferences for freedom, good times and a comfortable lifestyle (those on the right). Brand Images and Implied Value S, sy tems Overall, it emerged that most of the major cigarette brands that are popular among these smokers had distinctive market positions although the degree to which their images were salient and relevant to the YAMS smoker group varied. Marlboro Red and Salem Lights clearly have the most salient and consistently positive imagery/implied value system whereas those for Kent and Marlboro Lights in particular are less so. This tends to reflect either a lack of a clearly communicated image (as in the case of Marlboro Lights), or wear-out and lack of communication initiatives in the YAMS segment (Kent) as well as comparatively poorly perceived product performance. Assessments of the images and value system associations for each of the four brands covered in this research project are summarised on the following pages: Philip Morris Asia Inc. Hong Kong YAMS Project Page 7 of 31 .i1

I Research International Asia/MDR I ] i I I I I I I I I a i Marlboro Red Marlboro Red is clearly in a strong position in the YAMS segment with a dominant position driven by both product and image. The brand's position is also extremely consistent among all smokers although product preferences are variable, mainly in terrns of reaction to the product's strength (less appeal to respondents who smoke milder cigarettes especially Salem Lights). Brand and Communication Imag_erY Assessing reaction to Marlboro's overall communication in the marketplace reveals that the respondents clearly like the current promotional themes. The execution style and images are clearly Marlboro with the impressive open country scenes clearly regarded as consistent with the dominant nature of Marlboro's position in the market. A number of respondents also mentioned Marlboro's Chinese New Year advertising of a few years ago, which they felt matched the general thematic style of Marlboro advertising (big country) but also appealed because of the obvious cultural links. General reaction to the cowboy image remains mainly positive and is a key communications icon for the brand. Key associations for Marlboro clearly relate to this "cowboy factor" with images of freedom, independence, and the "cool" man-in-control obviously appealing to the YAMS segment. In terms of the cowboy/Western imagery this is not regarded as overtly American but the environment is regarded by many as possibly a little harsh. With these respondents clearly oriented towards enjoying their life, images of hard work in hard dusty, dirty conditions is not so appealing. Value Review In the YAMS segment, the brand appeals to many as is evident by.its market share, with many smokers attracted by the "man in control" and related "cowboy" factor images such as those noted above. Philip Morris Asia Inc. Hong Kong YAMS Project Page 8 of 31 I

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t Research International Asia/MDR I I I I I ] I I I I I ] J I While some of the images are taken quite literally by the respondents, Marlboro Red clearly represents an appealing "state of mind" for the respondents, and appeals to the more individualistic values of self- determination and independence. Moreover the brand is also seen as successful and powerful, ("a brand that does not make you lose face" as one respondent put it) and while it is less likely to be regarded as aspirational in "state of life" and related self-indulgent terms, the brand clearly benefits from its power and leadership associations. On balance, the cowboy and American West remain key image drivers for Marlboro Red and although the respondents appreciate the freedom images, some are less enamoured with the evident lack of comfort in the images. Overall Marlboro Red's product and communication images are very consistent, "a strong product in a stronger environment" These clearly reinforce perceptions of the product (ie. taste) and inhibit Salem Lights smokers especially who are looking for a milder, easier taste (indeed, Marlboro Red smokers will smoke Salem if they feel that their throats are irritated). Others images suggest that while Marlboro is not really regarded as overtly macho, the character is seen as a little "rough". Marlboro Red Review Primary Value Drivers: Power/Leadership (strong) Independence/Individualistic (strong) Secondary Value Drivers: Personal Well-Being Philip Morris Asia Inc. Hong Kong YAMS Project Page 9 of 31 J

I Research International Asia/MDR TI I I I I I I I I I I I j Marlboro Lights Marlboro Lights has a confused image. While seen by Marlboro smokers as largely inheriting most of the traditional Marlboro Red images and attributes, but in a softer and generally positive way, Marlboro Lights is not particularly well regarded by other brand smokers. This appears to be because the brand is not really regarded as any different to Marlboro Red in any major way, with the exception of a lighter taste. Even on a taste platform however, non- Marlboro smokers seem to consider that Lights may not really seem light, having similar tobacco flavour as Marlboro Red. This expectation would appear to be related to the brand's communication as few respondents can spontaneously mention any brand specific communication for Marlboro Lights. As a result Marlboro communication images are applied to both brands. Brand and Communication Imag_es Unfortunately for Marlboro Lights, when the respondents were asked to discuss image associations for the brand, most associations outside slightly lighter product characteristics were generally weak reflecting a general lack of real brand identity. For example, while the personality of the Marlboro Lights brand is not seen to have the same "raw qualities" of Marlboro Red, the development of a desirable, refined and more upscale image is inhibited by a lack of personality strength. While still independent, Lights comes across as too insular and reserved, even less accessible than the Marlboro Red character. When prompted on differences between Marlboro Red and Lights communication, possible associations bear out this "lack of character development". Marlboro Red's communication uses strong colours whereas Lights is weaker, Marlboro Red appears more sociable (more people in various executions) whereas Marlboro Lights appears lonely etc. Philip Morris Asia Inc. Hong Kong YAMS Project Page 10 of 31 J

I Penaul Rolaao~nH~ (msrriagdwl[ddildra~) Carefree Benevolaw \ I / Relaxation Good II(s Personal Steadleoss & Rd[aliHty Comfort Value Personal Health Enjoy Good dmos Enjoy Activity f MARLBORO LIGHTS

Research International Asia/MDR I I I I I I I J I I I I I I Brand Values Extending the communication and brand imagery into the value system shows that Marlboro Lights retains some of the independence images present in Marlboro Red and even contributes to some achievement and prosperity due to a slightly younger but more upwardly mobile user image. However, the fact that it is not regarded as being as successful, together with its lack of any strong brand identity outside Marlboro Red dimensions means that it does not represent anything particular. This presents a fundamental question to Philip Morris in what to do with Marlboro Lights. Reviewing the possible ways to extend Marlboro Lights into other value dimensions reveals mixed possibilities. It is possible that Marlboro Lights could look to extend the Marlboro imagery into the value segments where the brand has some association, such as Achievement and Personal Well- being, although these are already secondary to Marlboro Red. Developing more prosperity images are also possible but probably a little harder to support under the existing communications strategy (they are however supported through sponsorship and trademark diversification). Despite such possibilities, because most of these values are at least in-part derived from Marlboro Red, Marlboro Lights' position remains indistinct being based on the associations of lighter product performance (not always viewed positively), and a slightly more accessible but possibly weak and introverted (not Marlboro enough?) personality. Beyond this, even though the brand appears to hold a slightly more desirable user image profile in socio-economic terms, Lights remains exclusively the "little brother" of Marlboro Red. As a result, it remains inaccessible to those who do not relate to the Marlboro image and implied product performance. Marlboro Lights Review Primary Value Drivers: Independence/Individualism (moderate) Secondary Drivers: Personal Well-Being Achievement/Prosperity (some) Philip Morris Asia Inc. Hong Kong YAMS Project Page 11 of 31 J

SALEM LIGHTS , i

Research International Asia/MDR I I I I I I I I I I I I I i I Salem Lights The key competitor brand to Marlboro in this key YAMS segment, Salem Lights strength is very similar to that of Marlboro Red in that it is supported by a distinctive image and good product performance. Interestingly, the brand is a clear opposite to Marlboro Red, offering the benefits of a lighter, menthol taste together with appeals based on relaxing communication images. Brand and Communication Images A key factor in this positioning is the menthol taste platform which clearly offers an alternative to smokers with associated comfort imagery that traditionally accompanies menthol. This is reassuring and very comfortable to most YAMS. These images are also projected in the brand's communications. Salem Lights is non-offensive, and occupies a position that in many ways is uniquely Chinese ie. low key and restrained, yet youthful and pleasant, non-confrontational etc. The brand offers a clear "state of life" image of clean living, a pleasant personality as well as an orientation towards relative prosperity and leisure. Brand Values As is evident from the discussion above, Salem's positioning on the value system is virtually opposite of Marlboro Red being strongly collective, with additional emphasis on youth, good times, personal well-being and relationships. It clearly communicates the benefits of less hardship and more leisure that is appearing in the YAMS value system (as opposed to Marlboro Red's hard working, tougher life image). Salem Lights Review Primary Value Drivers: Collectivism Personal Well-Being Secondary Value Drivers: Traditional Relationships Personal Well-Being & Hedonism Achievement & Prosperity (some) Philip Morris Asia Inc. Hong Kong YAMS Project Page 12 of 31

Research Internationa! Asia/MDR 1 I I I I I I I I I I I J J Kent While Kent's overall image is clearly weaker in terms of overall "power" than Marlboro Red and Salem, the brand is still quite clearly defined in the eyes of the respondents. This is not surprising given the time the brand has been on the market. It is however clearly in decline, as while it supports a more up-market aspirational image implying a leisure-oriented lifestyle (especially among Kent smokers), it has clearly been inhibited by a worn-out market image and a lack of a tangible product benefit (compared to Marlboro Red's strength, and Salem Lights' light refreshing menthol taste for example). Brand and Communication Images A lack of product performance and no investment in the brand's promotional theme has bored the market. This is especially important to the YAMS who want to be seen as smoking a trendy brand. To many, Kent has aged with its smokers and has not looked to maintain its presence in the YAS market. In addition, the YAMS do not see the overtly western and affluent images associated with the Kent communications as being relevant to their lifestyle (a little too indulgent). Furthermore, the brand's user profile is generally regarded as being too old, while in terms of personality, the brand implies a lack of reliability and a playboy image which is seen more negatively these days. These more than offset the positives associated with the success and recreational lifestyle images. Brand Values Interpreting these images in terms of the value system shows that Kent despite quite an overt prosperity and hedonistic positioning does not really generate empathy in this smoker group. While there are secondary associations to traditional relationships and achievement, the brand does not have the status of Marlboro Red, nor the valued personal and collective characteristics of Salem Lights. Philip Morris Asia Inc. Hong Kong YAMS Project Page 13 of 31 J

KENT Enjoy Adivity

Research International Asia/MDR I I I I I I I I 3 I I I I J J For Kent, the biggest problem however has been a lack of communication investment as while there are a number of negatives, some fine tuning to the brand's communication platform some time ago may have been able to re- focus the brand. In many ways its biggest mistake was to lose track of the YAMS segment. As a consequence, it now relies on communication images that project older more middle class images and are associated with less desirable personality traits. It also lacks a tangible product identity. Kent Review Primary Value Drivers: Prosperity (moderate) Hedonism (moderate) Secondary Value Drivers: Achievement Relationships.(some) Independence (some) Philip Morris Asia Inc. Hong Kong YAMS Project Page 14 of 31 -1

I Research International Asia/MDR I I I ~ I I I I I E I I I I I I Sponsorship Review The last major component of the 1993 Hong Kong YAMS study was a review of Marlboro's sponsorship and trademark diversification activities. Overall, it was clear that generally speaking, all sponsorship activities with the exception of Marlboro Lights Cinema Showcase had been successful in widening the image profile of Marlboro and yet still reinforcing traditional Marlboro Red imagery. Key image contributions are largely in the area of * exclusive (Marlboro Classic, Formula 1) * style/fashionable (Marlboro Classics, Formula 1, Motorbikes) * modernity/contemporary (Marlboro Red Hot Hits, Marlboro Classic, Formula One); * excitement (Formula 1, Motorbikes, Horse Of The Year) * more youthful/energy (Marlboro Red Hot Hits, Marlboro Classic, Formula 1, Motorbikes and Marlboro Championship) * local appeal/Hong Kong identity (Marlboro Red Hot Hits and Horse Of The Year) * health/activity (Marlboro Championship and Marlboro Cup) Overall, the only poorly performing association is for Marlboro Lights Cinema Showcase as while some people felt reassured by a Marlboro sanctioned event, most were not able to make a logical fit between the event and the product. The sponsorship also had very low general awareness and in many ways is indicative of Marlboro Lights' lack of identity. Overall however, it has emerged that sponsorship and trademark diversification are clearly contributing to Marlboro's overall brand image by reinforcing existing images in a contemporary way by building on modern lifestyle dimensions and local activity associations. Philip Morris Asia Inc. Hong Kong YAMS Project Page 15 of 31 J

Research International Asia/MDR I I I ~ .x ] I I I I I I I J I 6 Conclusions and Strategic Review As a final review it is worthwhile to consider the wider strategic implications of this study and in this regard the main finding is the need for a commitment to the YAMS segment, consistency in communication and product performance. Both Marlboro Red and Salem Lights are evidence of such an approach but while they both have strong positionings, they clearly communicate different values the market: Marlboro Red = a "state of mind", the man in control, powerful, free, independent, self-reliant; Salem Lights = a "state of life", a collective positioning, friendly, fun-loving, accessible, responsible. At this level, both brands are also strongly supported by good product performance, but Marlboro Red is more vulnerable to Salem Lights because of the taste acceptability (and occasional usage) of Salem Lights by Marlboro smokers and perhaps also because of its wide usage profile (not only for YAMS). Salem Lights, despite its limited profile (smokers remain very young), is in a good position to take advantage of the market trend towards lighter cigarettes as well as a YAMS preference for a more self- indulgent lifestyle. Marlboro Red is able to counter this to some extent with higher profile sponsorship activities such as Formula One and Marlboro Championship as well as through Marlboro Classics, but the main image drivers for MR, reflect a less comfortable image than Salem. The Need For A New Brand? For the immediate future, Marlboro Red is well positioned. It enjoys a large market following and is clearly not as vulnerable as it is in Europe in terms of its positioning, as many YAMS still obviously relate to its brand imagery and implied value-system of freedom, success/power and independence. However, because of its salient position, Marlboro Red cannot really counter Salem Lights because it is such a different proposition to the YAMS. Philip Morris Asia Inc. Hong Kong YAMS Project Page 16 of 31 J

Research International Asia/MDR I I I I I I I I J I I I 3 I ] As a result, Philip Morris will need to look to develop a credible and effective competitor in the lighter segment of the market to take advantage of the segment growth and to counter Salem Lights and other new entrants such as Mild Seven. The extent to which a Marlboro branded product can do this however remains questionable as this would risk over-extending Marlboro's franchise and potentially diluting its image, and possibly alienating existing Marlboro Red smokers (although due to the strength of the brand, this is not likely). It is possible that Marlboro Lights' position could be strengthened along lines discussed to take advantage of the Light trend, but the need for a strong menthol variant is evident in light of Salem's strength. The issue of whether to use Marlboro Lights or Marlboro branded menthol variants is relevant in this regard although the research did not really address this issue directly. The biggest challenge for Philip Morris however, is in building a brand or brands (in all likelihood outside the Marlboro family), that are credible and acceptable to non-Marlboro smokers, and have the necessary product performance and value orientation to effectively compete with Salem Lights and other newer market entrants. Philip Morris Asia Inc. Hong Kong YAMS Project Page 17 of 31 J

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Research International Asia/MDR I I I j I I I I ] DEVELOPMENT OF A YAMS VALUE SYSTEM; A DISCUSSION Generally speaking until the late 1980's there had been little effort made to synthesize and review the psychological behaviors of Chinese people, at least in a scientific and methodological way. Indeed, despite the existence of literally hundreds of titles purporting to explain Chinese behavior, most rely on the personal observations and insights of their authors rather than empirically sound evidence. This is not to say that anecdotal observations and our own "windows of experience" are not of great assistance in aiming to better understand the Chinese community, in addition to the results of the YAMS interviews. However the methodologically sound studies provide the structure for applying these experiential insights. Traditionally the Chinese have always been worried about how they can accommodate the benefits of modernization into their society without losing valued elements of their own culture and cultural identity. In Hong Kong, people according to Dr Michael Bond of the Hong Kong Chinese University "...appear to accept and endorse the idea of 'a modern Chinese' as a person who retains the essential Chinese virtues of sexual propriety, devotion to ones family, political disinterest and social introversion...they regard modern Chinese, like modern Westerners, as oriented towards technical mastery, as pragmatic, an achiever, intelligent and proud of Chinese culture", f_Beyond The Chinese Face. Insights from Psycholoay, ed. Dr Michael Bond, Hong Kong Oxford University Press 1991]. This concept of "a modern Chinese" seeks to determine the extent to which Asian and particularly Chinese/Confixcian cultural values are balanced with other (desirable) elements of Western cultures. Dr Bond does point out that it is important to distinguish between the process of modernization and the concept of Westernization. This is because Eastern cultures are not becoming more western, it is just that the process of modernization began in the West a little earlier. Indeed, the desire to acquire things Western has often been associated with a need among Asians to become more western. In fact nothing could be further from the truth, it is just that the desire for these goods and services reflects a natural and basic human inclination towards having a more comfortable life! There is however considerable debate as to the extent to which any culture can retain its own identity without being overpowered by a convergent modern-world culture. At this stage we tend to take the view of a number of social psychologists and commentators who note that despite some inevitable sharing of values, differences between modern cultures in Asia and the West (Europe and US) do exist. Whether these differences can be accommodated within a cross cultural value system or not however is at least for now a debatable point, but various discussions are reviewed here. What is clear however is that there do appear to be distinct values held by the Hong Kong YAMS that are different from those desired from the "post-materialist" values identified in the European study values which have been identified in trying to explain the modernization of Western European and North American cultures. Philip Morris Asia Inc. Hong Kong YAMS Project Page 18 of 31 ~

Research International Asia/MDR I I ] I ~ I I I I J I J In our view there are several differences between modern Asian and European /American cultures. The recent commentary in the West tends to support the view that the more modern, western cultures are now seeking what Maslow described as social and self actualization needs. However the extent to which similar needs are sought in Asian cultures is debatable according to Dr Bond. He cites Yang Kuo-shu's comments on Japanese culture as one example, where the Japanese society is characterized by a blend of traditional and modern values: "Strong traditional values such as group solidarity, interpersonal harmony, paternalism, and familism are coexisting with quite modern values such as achievement and competition, and....along with democratic values exist beliefs in hierachial social structures and in authority, obedience, and inequality of men and women", [BeXond The Chinese Face Insights from Psychology, ed. Dr Michael Bond, Hong Kong Oxford University Press 1991 ]. Yang Kuo-shu also identifies how the values (what he terms "Evaluative attitudinal Characteristics") of the Chinese are changing under social as well as economic modernization, especially in the development of a less collectivist, more individualistic character: Decreasing Characteristics Preference for inner development Preference for collectivist relationship Preference for social control and restraint Theoretical value Social value Religious value External control beliefs Authoritarian attitudes Increasing Characteristics Preference for achievement Preference for an individualistic relationship Preference for self-indulgence Aesthetic value Internal control beliefs Democratic attitudes NJ u'I. These comments tend to suggest that either within a global cross cultural system or on ~ their own, there are a distinct set of Chinese or Asian values. In preparing a value system for the YAMS group we were also wary of the need to accommodate changes over time in the gradual modernization of Hong Kong and other Asian countries, as well as identifying the elements of the traditional Chinese Value system that are retained in the modern cultural context. Such a system according to Lau and Kuan (1988) "represents a mixture of old and new orientations". It is this mixture of orientations both traditional and modern, old and new that we are looking to identify here but a system that can be applied across most Asian markets. This is because most discussions of Chinese value systems appear to concentrate on the traditional value system of agrarian China and do not always accommodate the greater China cultural developments in Taiwan and Hong Kong, for example. Philip Morris Asia Inc. Hong Kong YAMS Project Page 19 of 31 -1

Research International Asia/MDR I I I Ii I ] I I I I I I I I As this research may ultimately be part of a wider Asian comparison, it is important to look to develop value "drivers" that are appropriate to Asian cultureas a whole. To do this we have reviewed a number of social-psychology works in addition to the transcripts to try and build a pan-Asian Value System. It has also been useful to draw on existing studies from cross-cultural psychology. These studies are essentially oriented towards developing a global system of examining cultural values, and contend that across all cultures there are a number ofunderlying core values shared by all people to varying degrees. "The value concept, more than any other, should occupy a central position....and beable to unify apparent diverse interests in all the sciences concerned with human behavior" [Rokeach, 1973, pp3]. In this area there have been two major studies, the first was conducted by Geert Hofstede and the second by Shalom Schwartz. Surveying work related values across 53 cultural units, Hofstede identified four major dimensions of cultural variation namely Collectivism, Individualism, Power Distance, Uncertainty Avoidance and Masculinity. Of these two are generally regarded as importantbecause all three Chinese samples in this study (from Hong Kong, Singapore and Taiwan) occupied similar positions on these "factors" highly collective and moderately power distant. Another important dimension is that these economies are all developed to similar levels and show that certain fundamentally "Chinese" values have remained intact through the modernization process. On the other dimensions the Chinese were less distinctive although traits of both are evident in family as well as social attitudes. The Collectivist-Individualist dimension is now recognized as a fundamental aspect of cultural variation of which the crucial distinction across cultures is the "degree of interdependence a society maintains among individuals. It relates to people's self concept: 'I' or 'we". This is an important area as traditionally, Chinese, Japanese and other Asian societies have been very collectivist. Swartz also makes this distinction in discussing his concepts of communal (Asian) and contractual (Western) societies.l Key collectivist values that are consistent with modern Asian cultures include: * certain rules about lack of public conflict, maintaining harmonious relationships in groups i.e. a desire to control certain emotions to avoid imposing one's feelings on others; 1The main difference in Schwartz's approach is to define the collectivist individualistic dimension in termsof what he calls "purely social structural grounds". Communal societies are then defined as those societies characterized by "...extended primary groups in which people have difruse mutual obligations and expectations...based on ascribed statuses." In comparison, contractual societies are characterized by narrow primary groupsand by social relations which develop various obligations and expectations as a result negotiation". Philip Morris Asia Inc. Hong Kong YAMS Project Page 20 of 31

Research Tnternational Asia/MDR I I I I ii I I I I I I i I I i * greater demands on building and maintaining personal relationships (guanxi in Mandarin) and for what is known as "social morality" where attributes such as kindness, modesty, reliability which are important in maintaining the harmony of interpersonal relationships and reducing individual abrasiveness; * the desire for social stability. This is a core value and is derived from a past of social instability. Confucian structures and their systems were designed so no conflict would appear as their all consuming desire was social harmony. This is also reinforced inauthoritarian and hierachial power structures, filial piety and the concept of face; * the family as the basic social unit and similar need for family stability. This reliance on the family and the support system it provides remains strong in Hong Kong and other modem Asian cultures; In comparison, Power Distance is defined as the "degree to which the members of society accept that power in institutions and organizations is distributed unequally". In this regard it is easy to recognize this feature in most Asian governments whether it be the (until recently) inaccessible colonial governmentof Hong Kong, the paternalistic communist system in the PRC, or the autocratic style of Lee Kwan Yew in "democratic" Singapore. Justification of government policy on the grounds of "social stability" are very familiar to most Asians and reflects traditional Confucian ideals (in traditional China, the role of rulers was to uphold morality and to "educate people in moral deeds" (Lau and Kuan, pp 19) under the traditional "Mandate Of Heaven" of tian ming ie. to preserve social and cosmic harmony). In many ways, this traditional Chinese tendency to put social (and political) interests ahead of economic ones, is yet to be tested in many economies just because they have not experienced economic recession. Power Distance is also reinforced by related hierachial structures in Asian social-life such as Filial Piety, where unquestioned respect and obedience of elder leads to greater power distance in society. Filial piety, was therefore, central to the maintenance of this system as it specified the nature of the relationship between people and ensured that authority was respected. It was also supported by the clear definition of status and control in terms of the role of boss and subordinate, and is reflected in the importance of titles and the desire for relative status among Chinese people. There are also clear relationships to the concept of favor and face.2 ZThis concept of face and relationships is very important in a hierachial society where the major social resources are controlled by a few and may be allocated based on social preferences. This reinforces the importance of contacts and relationships (guanxt) and reflects traditional Chinese and Asian concepts of leadership which have evolved from the traditional family structures where the head of the family manages the household (this also reinforces images of the male provider, traditional sex roles and alike). Philip Morris Asia Inc. Hong Kong YAMS Project Page 21 of 31 .1

Research International Asia/MDR I I While the degree to which a governmental system is intertwined with society varies, it would appear that most Asian residents feel ambivalent towards the government as long as it's policies do not impact on their personal lives. With steady economic growth and rising incomes, has meant that the government is respected but not loved. This would appear to be largely true in Hong Kong although there is a clear Chinese attitude towards any activities undertaken by the government that intrudes or inconveniences their lifestyle. Generally speaking however, most remain uninvolved in the political process although the civil service in now freely accessible to the local population. The YAMS too, remain similarly ambivalent perhaps more so given the future under Chinese rule and an inevitable loss of political autonomy. This respect in conjunction with the relative isolation from the political process has largely resulted in political ambivalence but has not provided a fertile raison d'etre for indigenous political leaders. However feelings of skepticism about 1997 did motivate the development of the liberal party in Legislative Council elections. Nevertheless, ambivalence is generalized from the government to the new local politicians according to Lau and Kuan (1988) and with this the pervasive sense of social complacency a desire for stability makes political radicalism impossible (at least in western terms). Schwartz's study undertaken in 20 counties is interesting because unlike Hofstede's, shows that the different value dimensions rather than being distinct are part of a dynamic value system. In this system values are viewed as goals and are therefore motivational. Key elements of Schwartz's system are as follows: (1) I I (2) J I I tested empirically, Schwartz identified two essential dimensions for ten motivational values, which included the self transcendence self enhancement, openness to change conservation. value types that serve individual interests namely hedonism, achievement, power, stimulation and self direction, are directly opposed to a second set of attributes that serve collective interests (benevolence, tradition and conformity). Those in between namely,universalism and security were in between these bounded regions. Philip Morris Asia Inc. Hong Kong YAMS Project Page 22 of 31 J

Research International Asia/MDR I I I I I I I I I I I I I (3) a value system, comprised of ten related dimensions mapped in a two dimensional geographic space according to intercorrelations between them.3 These value types are summarized below: Benevolence Orientation to the welfare of people with whom one is in close contact (family, friends etc). Universalism Orientation to the welfare of entities outside the in group such as nature, humankind, world at large etc Tradition/Conformity Theoretically separated but grouped together in terms of motivational values empirically. Essentially they reflect the degree to which subordinates the self', where conformity relates to people with which have frequent contact (parents, bosses) and tradition to more abstract objects such as religious ideas and objects Power/Achievement While obviously linked together as both types of values reflect motivation towards social esteem (one reinforces the other achievement as a means to power) they are regarded as distinct. According to Schwartz, achievement focuses on demonstrable competence in everyday situations eg. expertise, ambition whereas power values reflect more abstract outcomes of action eg. wealth accumulation; Security Incorporates both personal (health, sense of belonging) and social /collective security (social order, family security, national security). Self Direction Independent thought and action, autonomy, personal freedom and an ability to determine one's future Stimulation Derived as a result of a biological need for variety although modified by social experience. Has been claimed as representing thrill seeking (Farley, 1986). Key motivations are to be different, seeking novelty and challenges in life Hedonism Search for enjoyment, relaxation sensuous gratification, the "feel good" factor It is interesting to note that the test included respondents from Hong Kong and China, Japan and Taiwan. Of these only the mainland Chinese deviated substantially from the ideal structure noted above. According to Schwartz, while the Chinese were consistent with the power, achievement, hedonism, stimulation and self direction value types, the remainder could not fit his value system as developed. As a result, Schwartz has "tentatively proposed", that the other value types can be represented in terms of three unique Chinese value types: societal harmony, virtuous interpersonal behavior and personal and interpersonal harmony. 3A set of values were rated on a nine point scale related to how important the value was to them. The intercorrelation matrix of Pearson coefficient scores between the importance ratings were then analyzed cross culturally using the Guttman Lingoes Smallest Space Analysis (SSA). For more details see "Universals In The Content And Structure Of Values: Theoretical Advances and Empirical Tests in 20 Countries", Shalom Schwartz, in Advances In Experimental Social Psychology Vol. 25, (ed Mark Zanna), Academic Press Inc,(1992). Philip Morris Asia Inc. Hong Kong YAMS Project Page 23 of 31 J

Research International Asia/MDR I I I I -1 J I ] I I I I As defined these include the following: ':..societal harmony [incorporates] social order, national security, social justice, worldpeace, protecting the environment, world of beauty; virtuous interpersonal behavior (honest, obedient, responsible, loyal, politeness, humble, self discipline, forgiving, helpfulness); personal and interpersonal harmony (family security, honoring parents and elders, accepting my portion in life, inner harmony, healthy and devout). " Indeed, China, Hong Kong and Taiwan all deviated reasonably from Schwartz's model in some respects. He raises the issue regarding exposure to Western influence in these markets (low) but we would tend to repeat Bond's cautioning over the wholesale application of "western influence" (as opposed to modernization). Besides, at an aggregate level, it could be equally supposed that the differences in these three markets is a result of their essential "Chineseness" rather than their variable levels of economic development and "westernization". In many ways it is not surprising then that these Chinese dimensions were identified. As Schwartz, acknowledges, such dimensions have already been linked by Zhi-gang (1990) to major religious influences upon Chinese culture: Social harmony (associated with Taoism), Interpersonal behavior (Confucianism) and personal and interpersonal harmony (Buddhism), although this can also be obviously linked to Confucian principles of social harmony and balance etc. This system of course is not perfect (for example there emerged no consistent spirituality type of value although this is found in most cultures to varying degrees) despite the fact that all ten value types noted above appeared in 90% or more of the countries studied. As Schwartz acknowledges, a limited sample, translation, cultural biases in responses as well as purely logistical factors all combine to cause natural variation. In addition cultural distinctions are changed as social conditions alter (recall modernization debate). As a result, while it is dangerous to generalize suchstudies, it is.useful to review such information. Nevertheless the structure is a useful point for this consumer research. Philip Morris Asia Inc. Hong Kong YAMS Project Page 24 of 31 J

Research International Asia/MDR -1 I I I I I I I I I I I I I The New Economic Imperatives - The three aspects of Materialism Pursuit of material possessions is generally regarded as one of the major normative orientations of Hong Kong and other more developed Asian economies. This is supported by many commentators in the field of social-psychology and can be experienced in everyday life in the "four dragon" economies and Japan, although the recent recession in Japan may at this stage be slowly changing this orientation. Nevertheless comments such as "money as religion" or "in Hong Kong money is not everything but without it you cannot do anything "reinforces the underlying values of this money culture". According to Lau, there are generally seen to be three underlying dimensions of materialism: (1)The pursuit of wealth. This is determined by various factors including historic tradition of commercialization and business shrewdness, the blocking of politicized upward mobility due to colonial structure, the stimuli of visible consumption and openness of the economy. (2) Entrepreneurialism. Materialism and the pursuit of wealth must have a vehicle according to Redding and Wong (1993) and so entrepreneurial skill is highly regarded. Gaining success for the family through ones own endeavors and skill is extremely desirable and is societally revered (witness the respect Li Ka-shing receives in the YAMS interviews). It also reflects the ultimate achievement for the self, a self-realization that while yielding independence is not in itself individualistic. (3)Work Ethic. Exposed in Kahn's post-Confucian hypothesis (1979), it was shown that seriousness of purpose and diligence were important components of East Asian cultures. To Lau (1988), this orientation is clearly reflected in a longing for material goods and reliance on material criteria when making normative judgments about others. Lau has subsequently felt motivated to mourn the apparent demise of the family institution by characterizing Hong Kong Chinese Value System as "egotistical or acquisitive individualism", although it would appear that while the family unit is not as tight as it used to be, familism and commitment to traditional relationships remain. Philip Morris Asia Inc. Hong Kong YAMS Project Page 25 of 31 I

# I j I J I I I I I Research International Asia/MDR Social Values - A Review Of New and Traditional Dimensions As we developed the value system it was important to identify both old and new dimensions of Asian society. Having reviewed the virtually all encompassing newmaterialism it is also important to review other cultural dimensions such as those identified in the Hofstede study and examine how they have developed over time and under the influence of society's modernization. Such dimensions include individuality and the related concepts of personal freedom and self-determinism; as well as attitudes towards. It is also important to review some of the traditional social values have already been noted but deserve more elaboration including the importance of traditional relationships and family; as well as considering distinctive Asian concepts such as "face". Individuality The pursuit of wealth and the overall concept of materialism are also linked to the dimension of individualism. Individualism is a key dimension in this regard mainly because of the different way in which man is regarded in society."...in a western sense, the individual is highly is highly valued and takes precedence over society or any other collectives. Implicit in [this] concept of individualism are a positive view of human nature, a low degree offatalism and theories of individual rights and equality" (Lau and Kuan, 1988, pp4l). This extends from the need for personal development or self- actualization as expressed in Maslow's hierarchy of needs and is conspicuously absent from the Chinese concept of man. Confucianism on the other hand was oriented towards "secular human affairs",the so- called "societization" of the cosmic order and emphasis on group life. Nevertheless, Chinese society did have definite ideas about equality, rights, duties and freedoms, many of these were contingent upon the discretion of the state. In other words, freedom was granted by the state, and the individual a subordinate. Among the modernized Chinese (and Asian) cultures, the extent to which individualism has developed tends to be on the basis of their own self determination. Therefore success is measured in terms of what they have achieved in monetary or other terms rather than their intrinsic worth as an individual. This reflects the Confucian work ethic and a desire to improve one's status in an economically hierachial society (success in the political arena has until recently been limited). For Hong Kong people, however, the most valued dimension of individualism is freedom, namely freedom of speech, association and importantly of business and self- determination. Most of the respondents for example demonstrated a clear desire for self- determinism and an ability to do what they wanted. As a result the threat of a reduction in personal autonomy is one of the greatest concerns about the future. Despite this desire for self-determinism there remains a desire for social stability. This is not only because of the laissez-faire environment of Hong Kong, but reflects the more traditional Chinese orientation towards safety and uncertainty- conflict avoidance. Philip Morris Asia Inc. Hong Kong YAMS Project Page 26 of 31 J

I I I I I I i I I I I I I I Research International Asia/NIDR There is however a surprising lack of tolerance in Asia for anyone who is different. While some individual rights are respected such as the freedoms discussed, in a society where achievement and reward are emphasized, many find it difficult to conceptualize that fundamental rights should exist for doing nothing. In this regard, many Chinese see rights as a privilege and a reward for conformity to community standards (witness the lack of tolerance of inentalillness). Personal Efficacy and Fatalism In traditional agrarian societies characterized by relative scarcity, a fatalistic outlook on life and a general lack of any belief in one's ability to change one's environment and lifestyle are common. Indeed in traditional China and most of Asia, many lived a rather miserable existence. Under Confucian ideology while there was some opportunity for upward mobility through the ability of the state to provide everyone access to possible self-improvement through "education", the open and dynamic socio-economic opportunities of Hong Kong, Taiwan and Singapore (as well as those in Korea and Japan for that matter) have tended to reduce the dependence on fate especially among the young. This is not to say that many people do not believe in luck, except that more than ever, more are inclined to attribute economic success to individualistic variables such as hardwork and foresight as opposed to fate, although the Confucian ethic is also a key factor. This is of course related to self-determination, which is divided between economics and politics. There is no doubt that modern Asians desire economic self-determination but until recently there would appear to have been very little motivation for political efficacy. There is some debate over whether this apathy towards politics is a function of a general inaccessibility to government or a general demonstration of a preference for conflict aversion and desire for a collective society (non-rock-the-boat-ism). As was noted earlier, economic success has promoted social stability in this way as people have tolerated politics as these standards of living have improved (as long as it was not too intrusive). Recent disputes in China related to the economic slow down, show that political demonstration and frustration at a lack of personal efficacy can emerge under conditions of relative hardship. However, in modern Asia, it is clear that the predominant desire is economic stability, and it is often as not, that democratically elected governments have looted and the autocrats who have brought peace, prosperity and equality. This is why undesirable (in Western terms) governments have remained stable and are likely to remain so. Philip Morris Asia Inc. Hong Kong YAMS Project Page 27 of 31 I

! ~?t € ~ ~ ~ ~ I I I I I I j I I ] Research International Asia/MDR Traditional Relationships Of all the relationships that exist in Chinese and other societies, it is the family. Traditionally for the Confucian Chinese, the basic social virtue of filial piety (love and respect for parents) was fundamental to a stable hierachial order because it was considered the right attitude to authority. As a result "instant, exact and complete obedience" is the ideal and is reflected in conformity of society as well as within the family. For the Chinese, familism is a key value and while the concept of the extended family may be changing there remains a commitment to kinship relations and the maintenance of a stable and happy family environment. This family unit is self-supporting and resources are often shared. This entails looking after parents when they are older, or others when they are in need etc. In many ways, this inward looking dependence on the family unit is a very natural consequence of traditional Asian lifestyles. Indeed, "blood is thicker than water" is especially true among societies with relatively low geographical mobility and the absence of any government sponsored social support. Philip Morris Asia Inc. Hong Kong YAMS Project Page 28 of 31 J

Research International Asia/MDR i I I I I J I I I "1 J THE RESULTING VALUE SYSTEM As a consequence of this review, a value system dynamic was developed for the YAMS group. Like Hong Kong, this system is a blend of old and new, a combination of "traditional" values related to relationships, power and the need for personal reliability and health, as well as less traditional and more self-indulgent "modern" values related to Hong Kong "money culture" and the pursuit of good times and self-determination. From this review the main dimensions of this value system are summarized below and can for convenience be divided into two sections, namely the neo-traditional values of Power Attitudes, Collectivism, Traditional Relationships and Personal Well-being, as well as the modern values related to Achievement and Prosperity, Individualism and Hedonism. These "value motivations" each reflect a particular motivational goal of the YAMS identified from the research undertaken in Hong Kong. Within each dimension are a number of key orientations that emerged from the research. Philip Morris Asia Inc. Hong Kong YAMS Project Page 29 of 31 I

d Adapted Hong Kong YAMS Value System Sodal Rewgnition MasculinitylAuthority ' Maturlty/V4isdom Valued J Respect Authority/Powe ////r Social 1Naturat Order Non-ConfcontationaUStabiiity Status Quo Orientation ~ Security Friends Important Family Comntitment Male.Prov[der Power/ Leadership Collectivist Traditional Relationships Personal RelationsHps (marriageJwifelchildren) Benevolence Personal Well-being Hedonism Tndividuslistic Carefree Personal Steadiness & Reliability Good I3fe Relaxation Comfort Value Personal Health Enjoy Good times Enjoy Aciivity i 7= ~l

Research International Asia/MDR I I I I I j I !I I Power Attitudes Despite domestic politics becoming more accessible, political power remains the domain of a privileged few. Chinese deference to power systems and hierachial structure remains it is just that in Hong Kong economic power may be more real than political power. With 1997 approaching power attitudes are changing (political efficacy vs apathy) Collectivism This reflects many traditional Chinese values including the concept of face and conflict uncertainty/avoidance. This also incorporates Schwartz's Chinese value of "societal harmony" as well as dimensions related to popularity, acceptance and personal attributes Trad. Relationships This includes the natural Chinese value of maintaining tight kinship ties as well as values related to friendship. Many also retain traditional views over farnily structures, the role of male provider etc Personal Well-being An important concept for many Chinese, although the more traditional spiritual dimensions such as Yinyang, escape virtually all the YAMS. Nevertheless, most sought personal health and general well-being as well as a range of personal characteristics related to reliability, stability, honesty etc. These values are clearly reflected in Schwartz's concept of "virtuous interpersonal behavior" Achievement-Prosperity As discussed earlier, the "money culture" that pervades Hong Kong society is well established as is the key motivation to move ahead, accumulate wealth be successful etc Indep/Individualism As discussed, personal freedom and the right for control over one's life is important to people in Hong Kong and reflected in the laissez-faire nature of the territory. Nowadays, with the images of 1997 and MTV it is probably more important (and relevant) to the YAMS. Related to this is the desire for success and the independence in lifestyle this brings. Hedonism A result of Hong Kong's economic miracle life is now comfortable and people like to enjoy their wealth. While leisure time is valuable, work and family still dominate the Hong Kong scene but may like to enjoy the company of their friends and have a good time. It should be noted that while being far from original in its structure, this value system applies a uniquely Asian perspective to the analysis used by Philip Morris International in the EC. It also looks to balance the insights from psychology and sociology with our own knowledge and experience with Hong Kong people as well as the findings of the YAMS research. This value system will be used throughout this project. Philip Morris Asia Inc. Hong Kong YAMS Project Page 30 of 31

i I I I I I I I I I I j Research International Asia/MDR To finalize this review, it is perhaps worthwhile to review the key differences between Hong Kong and a modern Chinese society such as that which exists in the PRC are therefore clear and fundamental: its high degree of modernization, industrialization and urbanization (environment) as well as high degree of personal and individual autonomy; its dominance by market forces and laissez-faire philosophies; the erosion of tradition and adapted changes in family structures; the lack of a moralizing and controlling economic and political elite; the high standard of living and international influence; as well as the rapidity of social change and its political and economic dependence With regards to the YAMS group, the main difference is the extent to which the more traditional egalitarian values are supported among the Hong Kong YAMS. With no institutionalized and powerful custodians of the Confucian ethic (outside the family), there is not the single minded pursuit (nor enforcement) of such values. Confucian and traditional values do however remain, largely due to social customs and family socialization according to Lau and Khan (1988) but only in some areas. For today's YAMS, the key orientation is moving towards greater enjoyment of their environment although most are clearly motivated by work and achievement instincts. In many ways the YAMS values are in a transitional phase, not so concerned about their own spirituality or politics but looking to take advantage of the greater wealth and prosperity brought about by materialist value motivations. References: Advances In Experimental Social-Psychology, Mark Zanna (ed), Academic Press 1992 Beyond The Chinese Face: Insights From Psycholoev, Michael Bond, Hong Kong Oxford University Press, 1991 The Ethos Of The Hong Kong Chinese, Lau Siu-Kai and Kuan Hsin-Chi, Chinese University Press, 1988 The Psvchology Of The Chinese People, Michael Bond (ed), Hong Kong Oxford University Press, 1985 Philip Morris Asia Inc. Hong Kong YAMS Project Page 31 of 31 J

I I I I I I I i I I I I I SECTION TffitEE: SUlVIMARY PRESENTATION CHARTS i