Chapter 4

Cultural Dynamics in Assessing Global Markets

PowerPoint presentation prepared by:

Professor Rajiv Mehta
Associate Professor of Marketing
New Jersey Institute of Technology
Newark, N.J.
McGraw-Hill/Irwin

2005 The McGraw-Hill Companies, Inc. All rights reserved.

Chapter Learning Objectives

1.
1. The
The importance
importance of
of culture
culture to
to an
an international
international
marketer
marketer
2.
2. The
The origins
origins and
and elements
elements of
of culture
culture
3.
3. The
The impact
impact of
of cultural
cultural borrowing
borrowing
4.
4. The
The strategy
strategy of
of planned
planned change
change and
and its
its
consequences
consequences

Introduction
Culture
Culture refers
refers to
to the
the human-made
human-made part
part of
of human
human environment
environment
the
the sum
sum total
total of
of knowledge,
knowledge, beliefs,
beliefs, art,
art, morals,
morals, laws,
laws, customs,
customs, and
and
any
any other
other capabilities
capabilities and
and habits
habits acquired
acquired by
by humans
humans as
as members
members
of
of society
society
Importance
Importance of
of culture
culture in
in international
international marketing
marketing
A
Asuccessful
successful marketer
marketer must
must be
be aa student
student of
of
culture
culture
Culture
Culture is
is pervasive
pervasive in
in all
all marketing
marketing activities
activities
in
in pricing,
pricing, promotion,
promotion, channels
channels of
of distribution,
distribution,
product,
product, packaging,
packaging, and
and styling
styling
Understanding
Understanding culture
culture can
can determine
determine success
success or
or failure
failure in
in
international
international marketing
marketing

Cultures Pervasive Impact

Culture
Culture influences
influences every
every part
part of
of
our
our lives
lives
Cultures
Cultures impact
impact on
on birth
birth rates
rates in
in
Taiwan,
Taiwan, Japan,
Japan, and
and Singapore
Singapore

Birthrates
Birthrates have
have implications
implications for
for sellers
sellers of
of diapers,
diapers, toys,
toys,
schools,
schools, and
and colleges
colleges

Consumption
Consumption of
of different
different types
types of
of food
food influence
influence is
is culture:
culture:
Chocolate
Chocolate by
by Swiss,
Swiss, seafood
seafood by
by Japanese
Japanese preference,
preference, beef
beef by
by
British,
British, wines
wines by
by France
France and
and Italy
Italy
Even
Even diseases
diseases are
are influenced
influenced by
by culture:
culture: stomach
stomach cancer
cancer in
in
Japan,
Japan, and
and lung
lung cancer
cancer in
in Spain
Spain

Definitions and Origins of Culture

Culture
Culture isis the
the sum
sum of
of the
the values,
values, rituals,
rituals, symbols,
symbols, beliefs,
beliefs, and
and thought
thought processes
processes
that
that are
are learned,
learned, shared
shared by
by aa group
group of
of people,
people, and
and transmitted
transmitted from
from generation
generation to
to
generation
generation
Culture has been conceptualized as:
1.
2.

3.

Software of the mind culture is a guide for

humans on how to think and behave; it is a
problem-solving tool (Hofstede)
An invisible barrier a completely different way
of organizing life, of thinking, and of conceiving
the underlying assumptions about the family and
the state, the economic system, and even Man
himself (Hall)
A thicket (U.S. Ambassador Hodgson)

Origins of Culture: Geography

1.
1. Geography,
Geography, which
which includes
includes climate,
climate, topography,
topography, flora,
flora, fauna,
fauna,
and
and microbiology,
microbiology, influences
influences our
our social
social institutions
institutions
2.
2. Two
Two researchers
researchers
suggest
suggest that
that
geography
geography
influences
influences
everything
everything from
from
history
history to
to
present-day
present-day
cultural
cultural values
values

3.
3. First,
First, Jared
Jared
Diamond
Diamond states
states
that
that historically
historically
innovations
innovations
spread
spread faster
faster
east-to-west
east-to-west than
than
north-to-south
north-to-south

4.
4. Second,
Second, Philip
Philip Parker
Parker reports
reports strong
strong correlations
correlations between
between the
the
latitude
latitude (climate)
(climate) and
and the
the per
per capita
capita GDP
GDP of
of countries
countries

Origins of Culture: History

1.
1. The
The impact
impact of
of specific
specific events
events in
in history
history can
can be
be seen
seen reflected
reflected in
in
technology,
technology, social
social institutions,
institutions, cultural
cultural values,
values, and
and even
even
consumer
consumer behavior
behavior
For
For e.g.,
e.g., American
American trade
trade
policy
policy depended
depended on
on tobacco
tobacco
being
being the
the original
original source
source of
of
the
the Virginia
Virginia colonys
colonys
economic
economic survival
survival in
in the
the
1600s
1600s

2.
2. The
The military
military conflicts
conflicts in
in the
the Middle
Middle East
East in
in 2003
2003 bred
bred new
new cola
cola
brands,
brands, Mecca
Mecca Cola,
Cola, Muslim
Muslim Up,
Up, and
and Arab
Arab Cola
Cola

Origins of Culture: The Political Economy

1.
1. For
For most
most of
of the
the 20th
20th Century
Century three
three approaches
approaches to
to governance
governance
competed
competed for
for world
world dominance:
dominance: fascism,
fascism, communism,
communism, and
and
democracy/free
democracy/free enterprise
enterprise

2.
2. Fascism
Fascism fell
fell in
in 1945;
1945; Communism
Communism
crumbled
crumbled in
in the
the 1990s
1990s

3.
3. Necessary
Necessary to
to appreciate
appreciate the
the influence
influence of
of the
the political
political economy
economy
on
on social
social institutions
institutions and
and cultural
cultural values
values and
and ways
ways of
of thinking
thinking

Origins of Culture: Technology

1.
1. Technological
Technological innovations
innovations also
also impact
impact institutions
institutions and
and cultural
cultural

2.
2. Jet
Jet aircraft,
aircraft, air
air conditioning,
conditioning,
televisions,
televisions, computers,
computers, and
and the
the
internet
internet have
have all
all influenced
influenced culture
culture

3.
3. Arguably
Arguably the
the greatest
greatest impact
impact is
is
the
the pill
pill that
that has
has allowed
allowed women
women
to
to have
have careers
careers and
and freed
freed men
men to
to
spend
spend more
more time
time with
with kids
kids

Origins of Culture: Social Institutions

Social
Social institutions
institutions including
including family,
family, religion,
religion, school,
school, the
the media,
media,
government,
government, and
and corporations
corporations all
all affect
affect culture
culture
The family, social classes, group behavior,
age groups, and how societies define decency
and civility are interpreted differently within
every culture
(1) Family behavior varies across the world,
e.g., extended families living together to Dad
washing dishes
(2) Religious value systems differ across the
world, e.g., Muslims not allowed to eat pork
to Hindus not allowed to consume beef

Origins of Culture: Social Institutions

(3) School and education, and literacy rates
affect culture and economic growth
(4) Media (magazines, TV, the Internet)
influences culture and behavior
(5) Government policies influence the
thinking and behaviors citizens of adult
citizens, e.g., the French government
offers new birth bonuses of $800 given
to women as an incentive to increase
family size
(6) Corporations influence culture via the
products they market, e.g., MTV

Elements of Culture
International
International marketers
marketers must
must design
design products,
products, distribution
distribution systems,
systems,
and
and promotional
promotional programs
programs with
with due
due consideration
consideration to
to culture,
culture, which
which
was
was defined
defined as
as including
including five
five elements:
elements:
1.

Cultural values

2.

Rituals

3.

Symbols

4.

Beliefs, and

5.

Thought processes

Elements of Culture: Cultural Values

Differences
Differences in
in cultural
cultural values,
values, which
which is
is found
found to
to exist
exist among
among
countries,
countries, affects
affects consumer
consumer behavior
behavior
Hofstede,
Hofstede, who
who studied
studied over
over 90,000
90,000 people
people in
in 66
66 countries,
countries,
found
found that
that the
the cultures
cultures differed
differed along
along four
four primary
primary dimensions:
dimensions:
1.
2.
3.
4.

Individualism/Collective Index (IDV), which focuses on selforientation

Power Distance Index (PDI), which focuses on authority
orientation
Uncertainty Avoidance Index (UAI), which focuses on risk
orientation; and
Masculinity/Femininity Index (MAS), which focuses on
assertiveness and achievement

Individualism/Collectivism Index
Individualism/Collectivism
Individualism/Collectivism Index:
Index:
1.

The Individualism/Collective Index refers to the preference

for behavior that promotes ones self-interest

2.

High IDV cultures reflect an I mentality and tend to

reward and accept individual initiative

3.

Low IDV cultures reflect a we mentality and generally

subjugate the individual to the group

4.

Collectivism pertains to societies in which people from

birth onward are integrated into strong, cohesive groups,
which protect them in exchange for unquestioning loyalty

Power Distance Index

Power
Power Distance
Distance Index:
Index:
1.

The Power Distance Index measures power inequality

between superiors and subordinates within a social system

2.

Cultures with high PDI scores tend to be hierarchical and

value power and social status

3.

High PDI cultures the those who hold power are entitled to
privileges

4.

Cultures with low PDI scores value equality and reflect

egalitarian views

Uncertainty Avoidance Index

Uncertainty
Uncertainty Avoidance
Avoidance Index:
Index:
1.

The Uncertainty Avoidance Index measures the tolerance

of uncertainty and ambiguity among members of a society

2.

High UAI cultures are highly intolerant of ambiguity,

experience anxiety and stress, accord a high level of
authority to rules as a means of avoiding risk

3.

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

Elements of Culture: Rituals, and Symbols

Rituals
Rituals are
are patterns
patterns of
of behavior
behavior and
and interaction
interaction that
that are
are learned
learned
and
and repeated
repeated vary
vary from
from country
country to
to country,
country, e.g.,
e.g., extended
extended lunch
lunch
hours
hours in
in Spain
Spain and
and Greece
Greece
Language
Language as
as Symbols:
Symbols: the
the
languages
languages of
of time,
time, space,
space, things,
things,
friendships,
friendships, and
and agreements
agreements

French
French attempting
attempting to
to preserve
preserve the
the
purity
purity of
of their
their language
language

Elements of Culture: Rituals, and Symbols

In
In Canada,
Canada, language
language has
has been
been the
the focus
focus of
of political
political disputes
disputes
including
including secession
secession
Differences
Differences in
in language
language vocabulary
vocabulary
varies
varies widely
widely
Aesthetics
Aesthetics as
as Symbols:
Symbols: the
the arts,
arts,
folklore,
folklore, music,
music, drama,
drama, and
and dance
dance
of
of aa culture
culture influences
influences marketing
marketing

Fractured Translations
English
English Translations
Translations made
made by
by Japanese
Japanese firm
firm that
that were
were added
added to
to
labels
labels to
to increase
increase prestige
prestige for
for their
their products
products being
being sold
sold in
in
China
China

Product
Product

English
English Translation
Translation

Equivalent
Equivalent to
to Japanese
Japanese Spam
Spam

Liver
Liver Putty
Putty

Toilet
Toilet Paper
Paper

My
My Fanny
Fanny Brand
Brand

Ready
Ready to
to Eat
Eat Pancakes
Pancakes

Strawberry
Strawberry Crap
Crap Dessert
Dessert

Antifreeze
Antifreeze Spray
Spray

Hot
Hot Piss
Piss Brand
Brand

Pediatricians
PediatriciansSlogan
Slogan

Specialist
Specialist in
in Deceased
Deceased Children
Children

SOURCE:
SOURCE:Some
SomeStrawberry
StrawberryCrap
CrapDessert,
Dessert,dear?
dear?South
SouthChina
ChinaMorning
MorningPost,
Post,Dec
Dec9,1996
9,1996 p.p.12.
12.

Elements of Culture:
Beliefs and Thought Processes
Beliefs,
Beliefs, which
which stem
stem from
from religious
religious training,
training, vary
vary from
from culture
culture to
to
culture
culture

Examples:
Examples:

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
Thought processes
processes also
also vary
vary across
across cultures
cultures
Examples:
Examples:

Asian
Asian and
and Western
Western thinking
thinking

In
In summary,
summary, marketers
marketers must
must consider
consider larger
larger cultural
cultural consequences
consequences
of
of marketing
marketing actions
actions

Factual versus Interpretive

Cultural Knowledge
There
There are
are two
two kinds
kinds of
of knowledge
knowledge about
about cultures
cultures both
both of
of which
which are
are
necessary
necessary

Factual
Factual knowledge
knowledge
is
is usually
usually obvious
obvious
and
and must
must be
be learned,
learned,
e.g.,
e.g., different
different
meanings
meanings of
of colors,
colors,
and
and different
different tastes;
tastes;
itit deals
deals with
with aa facts
facts
about
about aa culture
culture

Interpretive
Interpretive knowledge
knowledge is
is the
the ability
ability to
to
understand
understand and
and appreciate
appreciate the
the nuances
nuances
of
of different
different cultural
cultural traits
traits and
and patterns,
patterns,
e.g.,
e.g., the
the meaning
meaning of
of time,
time, and
and attitudes
attitudes
toward
toward people
people
Interpretive
Interpretive knowledge
knowledge requires
requires aa
degree
degree of
of insight
insight
ItIt is
is dependent
dependent on
on past
past experience
experience for
for
interpretation
interpretation
ItIt is
is prone
prone to
to misinterpretation
misinterpretation ifif ones
ones
SRC
SRC is
is used
used

Cultural Change and Cultural Borrowing

International marketers should appreciate how cultures

change and accept or reject new ideas

How cultures change, e.g., war (changes in Japan after

World War II) or by natural disaster

Hofstede has shown that consumers acceptance of

innovations varies across cultures innovation was
associated with higher individualism (IDV), and lower
power distance (PDI) and uncertainty avoidance (UAI)

International marketers should be aware the extent to

which cultures borrow ideas and learn from other
cultures

Helps in the marketing of products from one culture to a

different culture

Whose English?

United
United States
States

United
United Kingdom
Kingdom

1.
1.
2.
2.
3.
3.
4.
4.
5.
5.
6.
6.
7.
7.

1.
1.
2.
2.
3.
3.
4.
4.
5.
5.
6.
6.
7.
7.

Trunk
Trunk
Hood
Hood
Convertible
Convertible Top
Top
Elevator
Elevator
Toilet
Toilet
Bathroom
Bathroom
Vacuum
Vacuum

Boot
Boot
Bonnet
Bonnet
Hood
Hood
Lift
Lift
W.C.
W.C.
Tub
Tub or
or Shower
Shower
Hoover
Hoover

Resistance to Change
Although
Although some
some cultures
cultures embrace
embrace change,
change,
others
others are
are resistant
resistant to
to itit
Examples
Examples of
of cultures
cultures that
that resist
resist change:
change:
Working
Working women
women in
in Masculine
Masculine societies
societies like
like
Saudi
Saudi Arabia
Arabia
Acceptance
Acceptance of
of genetically
genetically modified
modified foods
foods
(or
(or Frankenfood)
Frankenfood) in
in Europe
Europe

Planned and Unplanned Cultural Change

Cultures that are resistant to change represent a major hurdle in
marketing products
Cultural change can be accomplished by:
First, determine which cultural factors conflict with an
innovation, thus creating resistance to its acceptance
Second, change those factors from obstacles to acceptance into
stimulants for change
Third, marketers can cause change by introducing an idea or
product and deliberately setting about to overcome resistance and
to cause change that accelerates the rate of acceptance
Firms can use a strategy of planned change by deliberately
changing those aspects of the culture offering resistance to
predetermined marketing goals, e.g., introducing western foods
and baseball into Japan