Chapter 4

Agenda
— Culture and its elements
— High- vs. low- context cultures
— Hofstede’s culture typology
— Self-reference criterion
— New product diffusion
— Product environment sensitivity
Marlboro Cowboy in U.S.
Marlboro Cowboys in Japan & Taiwan
Culture
— Ways of living, built up by a group of people, transmitted from
generation to generation.
— Conscious and unconscious values, ideas, attitudes, and symbols à shape
human behaviour.
— Physical/material (clothing, art) and nonphysical/nonmaterial (religion,
attitudes, beliefs, values).
Cateora, Graham, and Papadopoulos (2008), International Marketing, 2nd Canadian edition, McGraw-Hill Ryerson.
Elements of Culture
— Attitudes, beliefs, and values
— Religion
— Aesthetics
— Dietary preferences
— Language
— Rituals
— Symbols
— etc.
Attitudes, Beliefs & Values
— Attitudes – learned tendency to respond in a consistent way to things; a
mental predisposition to view things in either positive or negative
terms.
— Belief – organized knowledge about the world.
— Value - an enduring belief/feeling that a specific mode of conduct is
personally or socially preferable to another conduct.
— e.g., Japanese value cooperation, consensus, harmony
— Value à beliefs à attitudes
 A Comparison Between Brazil and U.S.

Value Brazil 1988 U.S. 1981

Overall Rank Overall Rank

True Friendship 1 10
Mature Love 2 14
Happiness 3 5
Inner Harmony 4 13
Family Security 7 1
A World at Peace 5 2
Freedom (independence) 6 3
Self-Respect 9 4

Source: Wagner A. Kamakura and Jose Afonso Mazzon (1991), “Value Segmentation: A Model
for the Measurement of Values and Value Systems,” Journal of Consumer Research, 18 (September), 208-
218.
Value-Belief-Attitude – An Application
Brazil U.S.
Value True friendship Family security
Belief - Have a great time with - Enjoy all the happiness with
friends family members
- Friends are important in my - Family is important in my life
life
Ad appeal ? ?
Attitude Positive Positive
toward the
ad/product
Spirituality
— Major religions: Buddhism, Christianity, Hinduism, Islam, and Judaism
à beliefs, attitudes, and values.
— Other thoughts
— The western aversion to the number 13 or refusing to walk under a ladder
— Japanese concern about Year of the Fire Horse
— The Chinese practice of feng shui in designing buildings

— Thought Processes
— “Asian” (holistic) and “Western” (analytic) thinking
Holistic vs. Analytic Perception

Nisbett, Richard E. and Yuri Miyamoto (2005), “The influence of culture: holistic
versus analytic perception,” Trends in Cognitive Science, 9(10), 467-473.
Barbie – Discussion
— Barbie dolls are sold all over the globe
— http://barbie.everythinggirl.com/
— How important is culture in children’s toy preference?
— Will cultural differences result in failure for Mattel as the company enters
foreign markets, e.g., Japan, China, and Brazil?
— http://www.theneweconomy.com/business/life-in-plastic-not-so-fantastic-barbies-great-decline
Aesthetics
— The sense of what is beautiful
and what is not beautiful
— What represents good taste as
opposed to tastelessness or even
obscenity
— Visual – embodied in the color or
shape of a product, label, or
package
— Styles – various degrees of
complexity, for example are
perceived differently around the
world
Aesthetics
— Red — White

— Active, hot, vibrant — Purity, cleanliness

— Weddings in some Asian cultures — Death in parts of Asia
— Poorly received in African
countries
Dietary Preferences
— Would you eat…..
— Reindeer (Finland)
— Rabbit (France)
— Rice, soup, and grilled fish for breakfast (Japan)
— Kimchi (Korea)
— Blood sausage (Germany)
Language & Communication
— Semiotics—the study of signs and their meanings
— Spoken language
— Syntax – sentence
— Semantics – meanings
— Phonology – sound
— Morphology – words

— Unspoken language: gestures, touching, body language

 Language & Communication

Pronounced “shu” Sounds like Sounds like

Sounds like “lose”. “break into “death” or
pieces or fall “the end”.
apart”.
In China, it is bad luck to give these three items.
Language – King’s English
English American English American
Word Equivalent Word Equivalent
Gangway Sweet
Nappy Car park
Trousers Lift
Lorry Torch
Chips Crisps
Fortnight Let
Language – King’s English
English American English American
Word Equivalent Word Equivalent
Gangway Aisle Sweet Dessert
Nappy Diaper Car park Parking lot
Trousers Pants Lift Elevator
Lorry Truck Torch Flashlight
Chips French fries Crisps Chips
Fortnight Two Weeks Let Rent (lease)
Australian English
Australian American Australian American
Word Equivalent Word Equivalent
Tomato Sauce Amber Fluid
Cheese and Brolly
Kisses
Boomer Chrissie
Grasshopper Sanger
Jumper Strides
Sheila Mozzie
Australian English
Australian American Australian American
Word Equivalent Word Equivalent
Tomato Sauce Ketchup Amber Fluid Beer
Cheese and Wife Brolly Umbrella
Kisses
Boomer Kangaroo Chrissie Christmas
Grasshopper Tourist Sanger Sandwich
Jumper Sweater Strides Men’s Pants
Sheila Young Mozzie Mosquito
Women
How to negotiate across culture?
— How to express disagreement? When to upgrade/downgrade?
— Russians, French, Germans, Israelis, Dutch use a lot of upgraders
— Totally, completely, absolutely
— Mexicans, Thai, Japanese, Peruvians use lots of downgraders
— Partially, a little bit, maybe to soften the disagreement
— Emotional expressive or not?
— Emotionally expressive cultures: Brazil, Mexico, Saudi Arabia, France,
Israel
— Calm: Denmark, Germany, Netherlands, Sweden
“Getting to Sí, Ja, Oui, Hai, and Da: How to
negotiate across cultures,” HBR, Dec., 2015.
How to negotiate across culture?
— How other culture builds trust?
— Cognitive vs. Affective Trust
— Cultures value affective connection
— BRIC, Southeast Asia, Africa, Middle Eastern, Mediterranean cultures
— Build affective trust through activities: tea, karaoke, golf……

— Avoid Yes-or-No Questions

— No: perceived rude in some cultures (e.g., Southeast Asia, Japan, Korea, India,
Latin America), so they say “no” in a different way, e.g., we will try our best; I will
try, but it will be difficult; hesitance
— No: offend people in some cultures
— Ask differently: will you do this? à how long would it take you to get this one?
How to negotiate across culture?
— Be careful about putting it in writing
— U.S, Northern Europe: clarity, repetition à meeting minutes, contracts, emails
— Africa, Asia: relationship carry more weight in business
— Feel distrust if their counter part repeats or sends emails, contracts after the verbal
agreement
— Ask your counterparts to draft à how much detail they want to commit
— Be ready to revisit: North Americans see the contract as an end to discussion,
other cultures see the contract as just one step in the dance

— “Getting to Sí, Ja, Oui, Hai, and Da: How to negotiate across cultures,” HBR, Dec., 2015.
Rituals
— Rituals are patterns of behavior and interaction that are learned and
repeated, and they vary from country to country.
— Traditions, celebrations, wedding
— extended lunch hours in Spain and Greece.
— tailgating before football games in the U.S.
Chinese Moon Festival

— On the 15th day of the 8th month of

the lunar calendar

moon cake
Starbucks & Nokia @ Chinese Moon Festival
Cultural Symbols
— Objects that represent beliefs and values
— Have shared symbolic meanings.
— Culture is reflected in core symbols.

Taj Mahal

Mt. Fuji
Nike in China
— To promote Air Zoom LeBron II sneakers in China
— How will you promote it?

— TV Ad – Chamber of Fear
— http://www.youtube.com/watch?v=q22VEviS-Os

— Result: China banned it as national insult

— https://www.independent.co.uk/news/world/asia/just-dont-do-it-china-bans-nikes-basketball-advert-678907.html
— The Nike commercial shows LeBron James defeats a Chinese
ancient kung fu master.
— Two women in traditional Chinese attire are defeated by LeBron James
in the commercial.
— LeBron James also beats a pair of dragons in the Nike ad.
High- & Low-Context Cultures
— High Context • Low Context
o Information resides in context o Messages are explicit and specific

o Emphasis on background, basic o Words carry all information

values, societal status o Reliance on legal paperwork

o Less emphasis on legal o Focus on non-personal

documentation of credibility
paperwork
o Focus on personal reputation

• Switzerland, U.S., Germany

— Saudi Arabia, Japan
High- & Low-Context Cultures
 Contextual background of Various Countries

Cateora, Graham, and Papadopoulos (2008), International Marketing, 2nd Canadian edition, McGraw-Hill Ryerson.
A Conversation in a high-context culture
— Boss: It’s cold and I’m kind of hungry.
— Meaning: Why don’t you buy a drink or something to eat?

— Employee: How about having a glass of liquor?

— Meaning: I will buy liquor for you.

— Boss: It’s okay. Don’t bother.

— Meaning: I will accept your offer if you repeat it.

— Employee: You must be hungry. How about going out?

— Meaning: I insist upon treating you.

— Boss: Shall I do so?

— Meaning: I accept.

— Source: Outliers, page 217

Hofstede’s Cultural Typology
• Hofstede studied over 90,000 people in 66 countries and found that the cultures differed
along four primary dimensions.
• https://www.hofstede-insights.com/product/compare-countries/

• https://www.hofstede-insights.com/models/national-culture/

• Individualism/Collectivism (IDV): self-orientation; “I” vs. “We” mentality

• Power Distance (PDI): authority orientation

• Uncertainty Avoidance (UAI): risk orientation

• Achievement/Nurturing (Masculinity/Femininity (MAS)): tough vs. tender

• Long-term Orientation: views of and attitudes toward short-term versus long-term time frame

• Future orientation & Competitiveness (HBR)

Hofstede’s Cultural Typology
• Individualism/Collectivism Index
• High IDV cultures reflect an “I” mentality and tend to reward and accept
individual initiative; primarily concerned with his/her own interests and
those of the immediate family.
• Low IDV cultures reflect a “we” mentality and generally subjugate the
individual to the group.
• Collectivism pertains to societies in which people are integrated into
strong, cohesive groups.
Hofstede’s Cultural Typology
• Individualism/Collectivism Index
• “I” seek pleasure, “we” avoid pains
• Pursuing achievement or avoiding loss/failure
• Decision making in a group
• making the same or different decisions
• imitation tendency
• Impulse purchase
• Emotional appeals across culture
• Ego-focused emotions (pride, happiness) vs. other-focused emotions (empathy,
peacefulness)
Hofstede’s Cultural Typology
• Power Distance Index
• The Power Distance Index is the extent to which the less powerful
members of a society accept/expect power to be distributed unequally.
• Cultures with high PDI scores tend to be hierarchical and value power and
social status.
• High PDI cultures believe that those who hold power are entitled to
privileges.
• Cultures with low PDI scores value equality and reflect egalitarian views.
• Does PDI influence donation/prosocial behaviour?
Hofstede’s Cultural Typology
• Power Distance Index
• Does culture has anything to do with plan crash?
• “Outliers: the Story of Success” by Malcolm Gladwell, 2008, Ch7
• Aug. 5, 1997, a Korean Air Boeing 747 crashed in Guam. 228 of the 254 people on board died.
• First Officer: Captain, don’t you think it rains more? In this area, here?
• What he really meant was: You have committed us to visual approach with no backup plan, and the weather outside
is terrible. You think that we will break out of the clouds in time to see the runway. But what if we don’t? It’s pitch-
black outside and pouring rain and the glide scope is down.
• Engineer: Captain, the weather radar has helped us a lot.
• What he really meant was: This isn’t a night where you can rely on just your eyes to land the plane. Look at what the
weather radar is telling us: there’s trouble ahead.
• Captain: Yes, they are very helpful.
• First Officer: not in sight? 500 feet.
• First Officer: Let’s make a missed approach.
• What could have been done: If he had seized the control of the plane at that moment, he could have avoided crashing
into a hill.
Hofstede’s Cultural Typology
• Power Distance Index
• Examples
• In Austria (low PDI), Prime Minister Bruno Kreisky took the street car to work; a
Swedish (low PDI) university official states that in order to execute power, he tried
to not to look powerful.
• A French manufacturing plants has 26% management positions, while a Germany
one only has 16%. French also paid substantially more to their top managers than
German did.
Hofstede’s Cultural Typology
• Does PDI influence donation/prosocial behaviour?
• 60% people donate money in Australia, Ireland, Canada
• 10% or less donate money in China, Greece, Russia
• 10% or less donate time/volunteering in Bulgaria, India, Singapore
• 40% or more volunteering in Canada, U.S.

• “Accepting inequality deters responsibility: how power distance decreases charitable behaviour,” Journal of Consumer Research, 2014.
Hofstede’s Cultural Typology
• Uncertainty Avoidance Index
• The Uncertainty Avoidance Index: the extent to which people are
uncomfortable with unclear, ambiguous, or unstructured situations.
• High UAI cultures are highly intolerant of ambiguity, experience anxiety
and stress, and accord a high level of authority to rules as a means of
avoiding risk .
• Low UAI cultures are associated with a low level of anxiety and stress, a
tolerance of deviance and dissent, and a willingness to take risks, accepting
different ideas.
Hofstede’s Five Dimensions of National Culture

Copyright © 2017 Pearson Education, Inc. 4-47

Hofstede’s Five Dimensions of National Culture

Copyright © 2017 Pearson Education, Inc. 4-48

Product Diffusion Theory
• Which Hofstede’s dimensions will influence the product diffusion curve?
Product Diffusion Theory
• The diffusion curve in Asia.
Hofstede’s Cultural Typology
• Social Contagion and New Product Adoption
• Social contagion: my behavior is affected by others’ behaviors, knowledge,
attitudes; conformity is a social norm.
• Collectivism
• Uncertainty avoidance
• Power distance
• Masculinity
• Source: “Social Contagion and Income Heterogeneity in New Product Diffusion: A Meta-Analytic Test,”
Marketing Science, 23(4), 2004.
Hofstede’s Cultural Typology
• Social Contagion and New Product Adoption
• Make the product an aspirational choice – even for basic needs
• Tata’s Nano, $2,000, world’s cheapest car – not attractive positioning for aspirational
purchase from first time buyers
• https://www.chotukool.com/
• “the aspirations of the lower income people come from the richer people, and unless the rich
buy, the lower income segment won’t”
• Source: http://knowledge.wharton.upenn.edu/article/how-to-avoid-the-pitfalls-of-
emerging-market-innovation/
Self-reference Criterion (SRC)
• SRC: unconscious reference to one’s own cultural values; creates
cultural myopia
• How to Reduce Cultural Myopia:
• Define the problem or goal in terms of home country cultural traits
• Define the problem 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 for the host
country situation
Environmental Sensitivity
— Environmental sensitivity reflects the extent to which products
must be adapted to the culture-specific needs of different national
markets.
— Food is the most culturally-sensitive category of consumer goods
— Bottled water is a convenient alternative in countries where well or tap
water may be contaminated. Bottled water consumption as tripled in
India, doubled in China in the last five years
Environmental Sensitivity