Professional Documents
Culture Documents
SUMMARY
Culture, a societys programming of the mind, has both a pervasive and changing
influence on each national market environment. Global marketers must recognize the
influence of culture and be prepared to either respond to it or change it. Human behavior
is a function of a persons own unique personality and that persons interaction with the
collective forces of the particular society and culture in which he or she has lived. In
particular, attitudes, values, and beliefs can vary significantly from country to country.
Also, differences pertaining to religion, aesthetics, dietary customs, and language and
communication can affect local reaction to brands or products as well as the ability of
company personnel to function effectively in different cultures. A number of concepts and
theoretical frameworks provide insights into these and other cultural issues.
Rogers classic study on the diffusion of innovations helps explain how products are
adopted over time by different adopter categories. The adoption process that consumer
go through can be divided into multi-stage hierarchy of effects. Rogers findings
concerning the characteristics of innovations can also help marketers successfully
launch new products in global markets. Recent research has suggested that Asian adopter
categories differ from the Western model. An awareness of environmental sensitivity
can help marketers determine whether consumer and industry products must be adapted
to the needs of different markets.
OVERVIEW
The Walt Disney Company, home to Mickey Mouse, Donald Duck, and other iconic
characters, has a stellar reputation in many parts of the world for its family-friendly
entertainment offerings. However, despite high worldwide awareness levels of the
Disney brand, as of 2006, only 25 percent of the companys revenues came from outside
the United States. Now, as the company targets China, India, South Korea, and other
emerging markets, it is departing from its one size fits all approach.
The changes underway at the Walt Disney Company illustrate how differences in the
social and cultural environments impact marketing opportunities and dynamics around
the globe.
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This chapter focuses on the social and cultural forces that shape and affect individual,
group, and corporate behavior in the marketplace. We start with a general discussion of
the basic aspects of culture and society and the emergence of a twenty-first century
global consumer culture. Next, several useful conceptual frameworks for
understanding culture are presented.
These include Halls high- and low-context culture concept, Maslows hierarchy,
Hofstedes cultural typology, the self-reference criterion, and diffusion theory. The
chapter includes specific examples of the impact of culture and society on the marketing
of both consumer and industrial products.
ANNOTATED LECTURE/OUTLINE
Both differences and similarities characterize the worlds cultures, meaning that the tasks
of the global marketer is twofold. First, marketers must study and understand the country
cultures in which they will be doing business. Second, this understanding must be
incorporated into the marketing planning process. In some instances, strategies and
marketing programs will have to be adapted; however, marketers should also take
advantage of shared cultural characteristics and avoid unneeded and costly adaptations of
the marketing mix.
Marketers should be secure in their own convictions and traditions, generosity is required
to appreciate the integrity and value of other ways of life and points of view. Although
cultural shock is a normal human reaction to the new and unknown, successful global
marketers strive to comprehend human experiences from the local point of view.
Define culture
Culture can be defined as ways of living, built up by a group of human beings that are
transmitted from one generation to another.
A culture acts out its ways of living in the context of social institutions, including family,
educational, religious, governmental, and business institutions.
Culture includes conscious and unconscious values, ideas, attitudes, and symbols that
shape human behavior and that are transmitted from one generation to the next.
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What is nonmaterial culture?
Cultural universals are those elements of culture evident in all societies. These
universals include:
athletic sports,
body adornment,
cooking,
courtship,
dancing,
decorative art,
education,
ethics,
etiquette,
family feasting,
food taboos,
language,
marriage,
mealtime,
medicine,
mourning,
music,
property rights,
religious rituals,
residence rules,
status differentiation, and
trade.
Global marketers should view sociocultural phenomenon of the 21st century against a
background of traditional definitions.
It has been argued that consumption has become the hallmark of postmodern society;
cultural information and imagery flow freely across borders via satellite TV and the
Internet.
New global consumer cultures are emerging; these persons share meaningful sets of
consumption-related symbols. This culture stems from the wired world in which there is
an increasing interconnectedness of local cultures; it can be exploited by global consumer
culture positioning (GCCP).
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Attitudes, Beliefs, and Values
A belief is an organized pattern of knowledge that an individual holds to be true about the
world. Attitudes and beliefs are related to values.
What is a subculture?
Within any large dominant cultural group, there are likely to be subcultures, smaller
groups with their own shared subset of attitudes, beliefs, and values; subcultures
represent attractive niche marketing opportunities.
Religion
The worlds major religions include Buddhism, Hinduism, Islam, Judaism, and
Christianity.
Religious tenets, practices, holidays, and history directly impact the way people of
different faiths react to global marketing activities.
Example:
a) Hindus do not eat beef, which means that McDonalds does not serve hamburgers
in India.
b) In the aftermath of the September 2001 terror attacks in New York and
Washington, D.C. and the subsequent American military actions in the Middle
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East, some Muslims have tapped into anti-American sentiment by urging a
boycott of American brands.
Religious issues have also been at the heart of a dispute about whether references to God
and Christianity should be included in a new European constitution that will be adopted
now that the European Union has expanded its membership from fifteen to 27 countries.
Aesthetics
Within every culture, there is an overall sense of what is beautiful and what is not
beautiful, what represents good taste as opposed to tastelessness or even obscenity, and so
on. Such considerations are matters of aesthetics.
Global marketers need to understand the importance of visual aesthetics embodied in the
color or shape of product, label, or package.
Likewise, different parts of the world perceive aesthetic styles various degrees of
complexity, for example differently. In some cases a standardized color can be used
such as the distinctive yellow on Caterpillars equipment.
Because color preferences vary among cultures, such perceptions should be considered in
product packaging and communications especially in highly competitive markets.
There is nothing inherently good or bad about a color; red is popular in most
countries despite being the color of blood. It represents winemaking and conveys the
meaning emotional.
Because music plays an important role in advertising, marketers must understand what
style is appropriate in a given national market. Although background music can be used
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effectively in broadcast commercials, the type of music appropriate for a commercial in
one part of the world may not be acceptable or effective in another part.
Dietary Preferences
Cultural influences are also quite apparent in food preparation and consumption patterns
and habits.
Examples:
a) Dominos Pizza pulled out of Italy because Italians perceived its product to be
too American. In particular, the tomato sauce was too bold and the toppings
were too heavy.
b) To successfully launch the Subway chain in India, it was necessary to educate
consumers about the benefits of the companys sandwiches. Why? Because
Indians do not normally consume bread.
These examples underscore the fact that a solid understanding of food-related cultural
preferences is important for any company that markets food or beverages products
globally.
Companies that lack cultural sensitivity are bound to make marketing mistakes.
While some food preferences remain deeply embedded in culture, there is plenty of
evidence that global dietary preferences are converging. For example, fast food is
gaining increased acceptance around the world.
a) Heads of families in many countries are pressed for time and are disinclined to
prepare home-cooked meals.
b) Young people are experimenting with different foods.
c) The global tourism boom has exposed travelers to pizza, pasta, and other ethnic
foods.
d) Shorter lunch hours and tighter budgets are forcing workers to find a place to grab
a quick, cheap bite before returning to work.
e) As cultural differences become less relevant, such convenience products will be
purchased in any country when consumer disposable income is high enough.
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To counteract the exposure of its young citizens to le Big Mac and other
American-style fast foods, the French National Council of Culinary Arts designed
a course of French cuisine and good taste for elementary school children.
Linguists divide the study of spoken or verbal language into four areas:
syntax (rules of sentence formation)
semantics (system of meaning)
phonology (system of sound patterns)
morphology (word formation).
The spoken and unspoken aspects of language are included in the broader linguistic field
of semiotics, which is the study of signs and their meanings.
Semantic issues arise in global marketing (e.g. When Good Housekeeping magazine was
launched in Japan, the closest translation in Japanese meant domestic duties.)
Phonology can be an issue (e.g., Colgate discovered that in Spanish, Colgate means go
hang yourself).
Foreign language study is beneficial. While acquiring language skills, students gain
cross-cultural insights and develop a rapport with those who speak English as a second
language.
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Training and a heightened sense of the host country cultural context are necessary to
counteract the tendency to bring ones own cultural ethnocentrism to the negotiating
table.
The challenges of nonverbal communication are formidable (e.g., In the Middle East,
Westerners must not reveal the soles of their shoes or pass documents with the left hand).
Westerners must pay attention not only to what they hear but also to what they see when
conducting business in such cultures.
Define sequencing.
Define phasing.
Sequencing concerns whether the discussion goes directly from point A to point B
or seems to go off on tangents.
Phasing pertains to whether certain important agenda items are discussed
immediately or after the parties have taken some time to establish rapport (see
Table 4-1).
Universal aspects of the cultural environment represent opportunities for global marketers
to standardize a marketing program. The astute global marketer often discovers that much
of the apparent cultural diversity in the world turns out to be different ways of
accomplishing the same thing.
Edward T. Hall forwarded the concept of high- and low-context to explain cultural
orientations.
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Define low-context culture.
Define high-context culture.
What is the basic difference between the two?
In a low-context culture, messages are explicit and specific; words carry most of the
communication power.
High-context cultures function with much less legal paperwork than low-context cultures
(e.g., Japan and Saudi Arabia place emphasis on a persons values and social position)
In a low-context culture such as the U.S. or Germany, deals are made with less
information about character, background, and values. Much more reliance is placed upon
words and numbers.
In a high-context culture, a persons word is his bond. There is less need to anticipate
legal contingencies because the culture emphasizes obligations and trust as important
values. In these cultures, shared feelings of obligation and honor take the place of
impersonal legal sanctions.
Exceptions to the general tendency are found in subcultures. The U.S. is a low-context
culture with high-context subcultures (e.g., the world of the central banker, for example,
is a gentlemans world. The word of the banker is many times sufficient for the
borrowing of millions of dollars).
(Table 4-2 summarizes some of the ways in which high- and low- context cultures differ).
Hofstede is well known for research studies of social values suggesting that the cultures
of different nations can be compared in terms of five dimensions. (Table 4-3).
Three of the dimensions refer to expected social behavior, one dimension is concerned
with mans search for Truth, and one dimension reflects the importance of time.
1. Power distance. This is the extent to which the less powerful members of a society
accept power to be distributed unequally. All societies are unequal, but some are
more unequal than others. High power distance: Hong Kong and France. Low power
distance: Austria and Scandinavia.
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2. Individualist cultures: each member of society is primarily concerned with his or
her own interest and those of the immediate family. (United States and Europe)
a. Collectivist cultures, all of society's members are integrated into cohesive
in-groups. (Japanese and other Asian cultures)
4. Uncertainty avoidance. This is the extent to which the members of a society are
uncomfortable with unclear, ambiguous, or unstructured situations. Members of
uncertainty accepting cultures are more tolerant of persons whose opinions differ
from their own. Examples: Denmark and the United States. At the other end are
Greece and Portugal.
For cultural dimensions in Asia, researchers developed a Chinese Value Survey (CVS)
These values are held within high-performing Asian countries such as Hong Kong,
Taiwan, and Japan, but these values alone do not lead to economic growth.
The existence of a market and a supportive political context are also required (e.g. India
has been held back by market restrictions until recently).
Hofstedes work provides marketers insights that can guide them in a range of activities,
including product development, interacting with joint venture partners, and conducting
sales meetings.
For example, understanding the time orientation of ones native culture compared to
others is crucial.
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In Japan, Brazil, and India, building a relationship with a potential business partner takes
precedence over transacting the deal. People from cultures that emphasize the short term
must adapt to the slower pace of business in some countries.
Define gaman.
The Japanese concept of gaman (persistence) provides insight into the willingness of
Japanese corporations to pursue research and development projects for which the odds of
short-term success appear low.
Power distance, reflects the degree of trust; the higher the power distance (PDI), the
lower the level of trust; companies in high PDI cultures prefer sole ownership of
subsidiaries to provide more control.
Throughout much of Asia, the collectivist orientation is dominant. The U.S. is a highly
individualist culture. In highly individualistic cultures, ads often feature one person; in
collectivist countries, ads feature groups.
Using Hofstedes framework can provide useful insights into the creation of culturally
appropriate consumer brand images.
A persons perception of market needs is framed by his or her own cultural experience. A
framework for reducing perceptual blockage and distortion was developed by James Lee.
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The unconscious reference to ones own cultural values is the self-reference criterion
(SRC). To eliminate or reduce cultural myopia, Lee proposed a four-step framework.
Define the problem or goal in terms of home country cultural traits
Define the problem or goal in terms of host-country cultural traits. Make no value
judgments.
Isolate the SRC influence and examine it.
Redefine the problem without the SRC influence and solve
SRC teaches that a vital, critical skill of the global marketer is unbiased perception, the
ability to see a culture.
SRC can be a negative force in global business leading to misunderstanding and failure.
A person must suspend assumptions based on prior experience and success and add new
knowledge.
The lesson that the SRC teaches is that a vital, critical skill of the global marketer is
unbiased perception, the ability to understand a culture.
DIFFUSION THEORY
Sociologist Everett Rogers distilled his research into three concepts that are extremely
useful to global marketers: the adoption process, characteristics of innovations, and
adopter categories.
The adoption process - the mental stages from the first knowledge of an innovation to
product adoption or purchase:
Awareness. The customer becomes aware for the first time of the product or
innovation. Global marketers create awareness through general exposure to
advertising messages.
Interest. The customer is interested enough to learn more. The customer will
engage in research and seek information.
Evaluation. The individual mentally assesses the product's benefits and decides
whether or not to try it.
Trial. Most customers will not purchase expensive products without a "trial."
For inexpensive products, an initial single purchase is defined as trial.
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Adoption. The individual either makes an initial purchase or continues to
purchase a product. Sales reps and word of mouth are forces in the decision to
buy.
Characteristics of Innovations
Adopter Categories
Innovators are more venturesome, more cosmopolitan, and wealthier than those who
adopt later.
Earlier adopters are the most influential people in their communities and have great
influence on the early and late majority, the bulk of the adopters of any product.
Early adopters tend to be younger, with higher social status, and a more favorable
financial position than later adopters.
Persuading innovators and early adopters to purchase a product is critical; these groups
must make the first move in order for eventual penetration of a product into the broader
market.
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Since Japan, South Korea, and Taiwan are high-context, homogeneous cultures while the
U.S. is a low-context, heterogeneous culture, research showed that Asia had faster
diffusion rates. (See Figure 4-2)
Adoption would proceed more quickly in markets where innovations were introduced
late, allowing time to assess the relative advantages, compatibility, and other product
attributes.
The Asian adopter behavior differs from Western behavior. There are fewer Asian
innovators since risk avoidance is high.
When Asian consumers become aware that others tried the product, they quickly follow
suit.
The various cultural factors described earlier can exert important influences on consumer
and industrial products marketed around the globe.
Environmental sensitivity reflects the extent to which products must be adapted to the
culture-specific needs of different national markets.
At one end of the continuum are environmentally insensitive products that do not require
significant adaptation; at the other are products that are sensitive to environmental
factors.
The greater the environmental sensitivity, the more managers must address country-
specific economic, regulatory, technological, social, and cultural environmental
conditions.
Intels microprocessors can be sold anywhere because a chip is a chip, but food products
have high environmental sensitivity because of sensitivity to climate and culture.
Consumer products are probably more sensitive to culture than industrial products.
Hunger is a basic need in Maslows hierarchy; but what people eat is strongly influenced
by culture. (Figure 4-2).
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DISCUSSION QUESTIONS
1. What are some of the elements that make up culture? How do these find expression in
your native culture?
This question is designed to give students a chance to reflect upon and compare
attitudes, beliefs, and values. Then students should take up the issue of aesthetics.
How relevant are the performing or visual arts, both individually and to the home
country population in general? Finally, language and communication issues can be
explored.
2. What is the difference between a low-context culture and a high-context culture? Give
an example of a country that is an example of each type, and provide evidence for your
answer.
3. How can Hofstedes cultural typologies help Western marketers better understand
Asian culture?
Westerners seeking a better understanding of Asian culture can benefit from the
findings of the Chinese Value Survey. This survey revealed a dimension of Asian
culture called Confucian Dynamism that helps explain the growth in Asian
economies. Specifically, virtuous behavior in Asian culture is reflected in
persistence, observing ordered relationships, thrift, and a sense of shame.
Westerners may enrich their own experience and further their business goals by
absorbing some of these cultural dimensions; Westerners should also realize that it
is probably futile to try to change Asian behavior that is rooted in these
dimensions.
4. Explain the self-reference criterion. Go to the library and find examples of product
failures that might have been avoided through the application of the SRC.
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The self-reference criterion is a conceptual tool that helps a person eliminate
ethnocentric bias when perceiving other cultures. You should ask yourself, Am I
making assumptions or drawing conclusions based on my own home-culture
experience and biases? This chapter outlines a four-step process for eliminating
SRC bias.
Rogers work helps marketers understand the social processes at work when a
new product is introduced into a culture or country. The adoption process consists
of five steps, starting with awareness and ending with adoption. In the case of
inexpensive consumer products, adoption means repeat purchase. The rate at
which buyers proceed through the adoption process depends on the five
characteristics of innovations: relative advantage, compatibility, complexity,
divisibility, and communicability.
The shops feature posters explaining the various coffee drinks and indicating how
they are pronounced (communicability) In view of Fredericksons clear
understanding of the diffusion process, it is not surprising that he has received
many inquiries from Korea, Taiwan, and Singapore from persons wanting to start
franchises. This demonstrates that both the product itself and the retailing concept
exhibit the characteristics of the innovations described by Rogers. (Source:
Russell M. Frederickson, How to Sell Coffee in the Land of Tea, Wall Street
Journal (Jan. 23, 1995), p. A16.
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on early adopters, who make up 13.5 percent of the potential market. They exert a
great deal of influence on the mass market for a product, which Rogers calls the
early and late majority.
6. Compare and contrast the United States and Japan in terms of traditions and
organizational behavior and norms.
Japan ranks high on collectivism. Everyone wants to use the same products as
others. This is particularly true with name brands. The Japanese want known
labels with high brand image because risk avoidance is high. Buying name brands
avoids the risk of a poor quality product. Americans are more individualistic and
are willing to try new products and off-brands. Americans are risk-takers.
CASES
Overview: The Walt Disney Company, home to Mickey Mouse, Donald Duck, and other
iconic characters, has a stellar reputation in many parts of the world for its family-
friendly entertainment offerings. However, despite high worldwide awareness levels of
the Disney brand, as of 2006, only 25 percent of the companys revenues came from
outside the United States. Now, as the company targets China, India, South Korea, and
other emerging markets, it is departing from its one size fits all approach.
1. Why is it necessary for Disney to build brand awareness in China and other emerging
markets?
One glaring fact is that as of 2006, only 25 percent of the companys revenues
come from outside of the United States. Obviously, the Disney Corporation
knows that it is vulnerable to any economic downturns in the U.S. economy.
As Bill Ernest, managing director, told the Financial Times, If you havent
grown up with the brand, the stories, or the theme, you are not quite sure what
you are walking
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into into The changes underway at the Walt Disney Company illustrate how
differences in the social and cultural environments impact marketing opportunities
and dynamics
around the globe.
Moreover, Disney noted some other cultural differences between North American
and European tourists and those of other countries. For example, Chinese tourist
book dinner packages, For example, in India, Disney is abandoning its go-it-alone
policy and partnering with local companies such as Yash Raj Films. Local
managers have been given greater autonomy to develop television programming.
Disney is hoping to appeal to Indias family-oriented middleclass consumers; core
themes include believe in yourself, express yourself, and celebrate your family.
A Russian version of High School Musical is also in the works. Next up: the
Middle East. As Disneys Jason Reed says, Theres a really strong affinity
between the strong family values in the region and the Disney brand. We want to
go out and try to make a film that will play to families from North Africa to the
Gulf States.
Case 4-2: Fair Trade Coffee: Ethics, Religion, and Sustainable Production
Overview: The coffee industry has a lot of challenges nowadays. Such problems as
oversupply and the drop of wholesale price can lead to many disputes around the world.
This drop in prices is definitely having a negative impact on the supplying countries
economies. The Fair-trade label is supposed to treat the issue of ethical standards, but
customers buying coffee need to care about the fair-trade along with those who invents
and promotes it.
1. Is it important for coffee marketers, such as Starbucks, Kraft, and Nestle, to create
ethical supply chains? Why?
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It is important for coffee marketers to create an ethical supply chain. If people
know that companies work in an ethical way it should attract more customers. The
customers would expect that they would be treated the same fair and ethical way
as suppliers of the market. It would be easier for these companies to expand
globally because new countries would be more open for business relationship
with ethically sensitive corporations.
2. A recent study by the U.K.s Institute of Grocery Distribution determined that the
majority of consumers do not buy fair-trade products. The report noted, Self-interest is
at the center of food choice for most consumers. Few consumers consider the impact of
their purchase decisions on anyone or anything but themselves and their family. Do you
agree with this finding?
I agree. People can tend to be selfish in their nature. A lot of people in the world do
not have decent incomes, thus they need to conserve money and find less expensive
alternatives to feed their families. Not many buyers think about someone else as they
purchase. For many people when they enter a store, they think only about getting the
greatest value for their dollar. Money talks. Another reason why people dont buy
fair-trade products is that they dont know what these products are and what their
difference from regular products is.
3. What recommendations would you make to help cure the ills of the coffee market?
I agree with Paul Rice who considers advertising of fair-trade essential for the
product to be sold. Probably there are more people who care about the principles
of fair trade, but they simply dont know that it exists. The fair-trade principle
should be advertised along with places where customers can by the product. It is
necessary to explain all the importance of fair-trade products for developing
countries.
Additional Cases: Marketing: Whos Really Minding the Store Globally? Linda C.
Ueltschy,; Irene Herremans; John K. Ryans Jr. HBS BH190.
Colgate Max Fresh: Global Brand Roll-Out, John A. Quelch, Jacquie Labatt-Randle,
HBS 508009.
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Zook, Chris, and Allen, James. Growth Outside the Core. Harvard Business Review 81,
no. 12 (December, 2003), pp. 67-73.
Film: Assign the film Rising Sun. The movie is a murder mystery based on the culture
clash between Los Angeles police and Japanese multinational business interests. It is
entertaining and educational at the same time.
SUGGESTED READING
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_____ and Mildred Reed Hall. Understanding Cultural Differences. Yarmouth, ME:
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Lewis, Maureen. Why Cross-Cultural Training Simulations Work. Journal of European
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