Self- Reference Criterion

Self-Reference Criterion (SRC) and Ethnocentrism

SRC is an unconscious reference to ones own cultural values, experiences, and knowledge as a basis for decisions. Ethnocentrism refers to the notion that ones own culture or company knows best how to do things. Both the SRC and ethnocentrism impede the ability to assess a foreign market in its true light.

Ethnocentrism
The belief
that ones culture is superior to another and that strategies used in ones home country will work just as well internationally the belief that purchasing foreign products hurts the local economy by causing loss of jobs, and that it is morally wrong and unpatriotic.

Domestic marketing extension concept Leads to the rejection of foreign products.

Obstacles to Internationalization
Self-Reference Criterion
Conscious and unconscious reference to own national culture while operating in the host country. (e.g. eye contact US-Japan)
To counter the impact of the self-reference criterion, the corporation must select appropriate personnel for international assignments and engage in sensitivity training.

Does this picture offend you?

If so, then you may be guilty of Ethnocentrism!

People who are ethnocentric apply their own values in judging the behavior and beliefs of other people raised in other cultures. Ethnocentrism contributes to social solidarity and a sense of value and community. However, it also fuels conflict.

Ethnocentrism, Cultural Relativism, and Human Rights

The human rights movement suggests that there is a realm of justice and morality that supercedes the practices of many cultures. Examples: female genital mutilation in the Middle East; male circumcision at birth in the United States.

Ethnocentric Orientation
Domestic strategies, techniques, and personnel are perceived as superior. International markets are secondary, regarded primarily as outlets for surplus domestic production. International marketing plans are developed in-house by the international division. E.g. Disney resort in France: Disneyland Resort Paris had to adapt it to local preferences: European fairy tales, food, and dress code for staff.

Polycentric Orientation
Focuses on the importance and uniqueness of each international market Firms establish independent businesses in each target country. Fully decentralized, minimal coordination with headquarters Marketing strategies are specific to each country. Outcomes:
No economies of scale Duplicated functions Higher final product costs

Regiocentric Orientation
World regions that share economic, political, and/or cultural traits are perceived as distinct markets. (e.g. EU, NAFTA) Divisions are organized based on location. Regional offices coordinate marketing activities.

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Geocentric Orientation
Marketing strategies aimed at market segments, rather than geographic locations Maximizes efficiencies worldwide and provides standardized product or service throughout the world E.g. McDonalds

McDonalds India

Religion
Societys relationship to the supernatural determines dominant values and attitudes. Examples:
Protestant Religionstresses hard work and frugality. Judaismstresses education and development. Islamfocus on rules for social interaction. Bans the use of interest rates. No pork or alcohol Hinduismencourages family orientation and dictates strict dietary constraints. Strictly hierarchical. No Beef. Buddhismstresses sufferance and avoidance of worldly desires.

Religion and Its Impact on Business

Business Days Gender Roles Gift Giving Marketing Practices
Monday Christian Islam Judaism Business Business Business Tuesday Business Business Business Wednesday Business Business Business Thursday Business Business Business Business Friday Business Saturday Business Moring Business Business Business Sunday

Created By Swapnil Jadhav