CHAPTER 3 – Marketing Across Cultures

Attitudes
-reflect a people’s underlying values
-positive or negative evaluations, feelings, and tendencies that individuals harbor toward objects or concepts
-learned from role models, parents, teachers, religious leaders
Aesthetics
-what a culture considers “good taste” in the arts, the imagery evoked by certain expressions, and the symbolism of certain colors
-selection of appropriate colore for advertising, product packaging, work uniforms can improve odds of success
Culture
-learned behavior, it is shared with members of a society
-ways of living, built up by a group of human beings, that are transmitted from one generation to another
-acted out in social institutions
-both physical (clothing and tools) and nonphysical (religion, attitudes, beliefs, and values)
-ethnic groups, gender groups, organizations, families are categories
ethnocentric orientation
-home country is superior to others
-sees only similarities in other countries
-assumes products and practices that succeed at home will be successful everywhere
**leads to standardization or extension approach
Polycentric orientation
-each country is unique
-each subsidiary develops its own unique business and marketing strategies
-often referred to as multinational
**leads to a localized or adaption approach that assumes products must be adapted to local market conditions
Regiocentric orientation
-a region is the relevant geographic unit
-Ex: NAFTA or EU market
-Some companies serve markets throughout the world but on a regional basis
-Ex: GM had 4 regions for decades
Geocentric
-entire world is a potential market
-strives for integrated global strategies
-also known as a global or transitional company
-retains an association with the headquarters country
-pursues serving world markets from a single country or sources globally to focus on a select country markets
**leads to a combo of extension and adaptation elements
4 Management Orientations
-ethnocentric
-polycentric
-regiocentric
-geocentric
Examples of social institutions
-family, education, religion, government, business
-reinforce cultural norms
Physical culture
clothes, decorative art, body adornment, homes
abstract culture
religion, perception, attitudes, beliefs, values
Emerging global consumer cultures
-person who share meaningful sets of consumption-related symbols
-Pub, coffee, fast-food, credit card
Cultural symbols
-things that represent ideas and concepts in a specific culture
-plan an important role in cross-cultural analysis b/c different cultures attach different meanings to things
Superstitious numbers in North Americans and Japan
-NA – 13
-Japan – 4, the word for death
-This is why Tiffany & Co. sells fine glassware and china in sets of five not 4 in Japan
“Thumbs-up” difference in US and Russia & Poland
-Good in US, offensive in Russia and Poland when palm of hand is shown
Culture & Int’l Marketing
-marketing research
-product development
-product pricing
-product placement
-product promotion
Basic elements of culture
-values & attitudes
-language
-aesthetics
-religion
-education
Attitude
learned tendency to respond in a consistency way to a given object or entity

Ex: Santiago drives down highway in S.C. and gets stopped by a cop. His immediate reaction is to freak out b/c he thinks he’ll get shot by the cop.

Belief
an organized belief or feeling that a specific mode of conduct is personally or socially preferable to another mode of conduct

Ex: Santiago thinks most white cops are willing to shoot a black person.

Value
enduring belief or feeling that a specific mode of conduct is personally or socially preferable to another mode of conduct

Ex: Society doesn’t care about black people getting shot/approves of white cops shooting black people

What do attitudes, beliefs, and values do?
-guide culturally appropriate behavior
-are widely accepted
-induce people to respond in a certain way
syntax
rules of sentence

ex: English has relatively fixed word order; Russian has relatively free word order

semantics
system of meaning

Ex: Japanese words convey nuances of feeling for which other languages lack exact correlations; ‘yes’ and ‘no’ can be interpreted differently than in other languages

phonology
system of sound patterns

Ex: Japanese do not distinguish b/w the sounds ‘I’ and ‘r’; English and Russian both have ‘I’ and ‘r’ sounds

morphology
word formation

Ex: Russian is a highly inflected language, with 6 different case endings for nouns and adjectives; English has fewer inflections

Aesthetics
-sense of what is beautiful and not
-what represents god taste as opposed to tastelessness or even obscenity
-visual
-styles
visual
embodied in the color or shape of a product, label, or package
styles
various degrees of complexity, for ex, are perceived differently around the world
the color red
associated w/ blood, wine-making, activity, heat, vibrancy in many countries but is poorly received in some African countries
color white
id w/ purity and cleanliness in the West, with death in parts of Asia
Gray
means inexpensive in Japan and China, but high quality and expensive in US
World’s major religions
Buddhism, Christianity, Hinduism, and Islam
Things that differ b/w religions
-religious holidays
-consumption patterns
-economic role of women
-religious institutions
-religious divisions: political instability and different target segments
Hinduism
-formed around 4,000 yrs ago in present day India
-more than 90% of Hinduism’s 900 million adherents live in India
-majority religion of Nepal and 2nd in Bangladesh, Bhutan, and Sri Lanka
-way of life for some
-recalls no founder and no central authority orspiritual leader
-believe in reincarnation–rebirth of human soul at time of death
-highest gold in life is moksha (escape cycle of reincarnation and eternal state of eternal happiness called nirvana)
-strict ones don’t eat/willfully harm any living creature b/c it may be a reincarnated human soul
Basic element of culture: Education
-adaptation of mkt programs
-labeling adaptation
-difficulty when conducting research
-cooperation w/ distributors
-inadequate support services
-training
high-context cultures
-info resides in context
-emphasis on background, basic values, societal status
-less emphasis on legal paperwork
-focus on personal reputation
-Saudi Arabia, Japan
low-context cultures
-messages are explicit and specific
-words carry all info
-reliance on legal paperwork
focus on non-personal documentation of credibility
-Switzerland, US, Germany
Polychronic
everything in life must be dealt with in terms of its own time

Ex: high-context cultures

Monochronic
time is money; linear–one thing at a time

Ex: low-context culture

Hofstede’s cultural typology
-power distance
-individualism/collectivism
-masculine/feminine
-uncertainty avoidance
-long-term orientation
-indulgence vs. restraint
Individualistic
people look after their own and family interests (US, Canada, Australia)

-personal achievements

Collectivistic
people expect the group to look after and protect them (Mexico, Thailand)

-business conducted in group context
-conformity

High power distance
accepts wide differences in power; great deal of respect for those in authority (Mexico, Singapore, France, Guatemala, Philippines, Malaysia)

-big gaps b/w weak and powerful
-top mgmt tends to be autocratic & give little autonomy to lower-level employees

Low power distance
plays down inequalities; employees are not afraid to approach nor are in awe (US, Sweden)

-firms tend toward flat organizational structures with relatively equal relations b.w managers and workers

High uncertainty avoidance
threatened with ambiguity and experience high levels of anxiety (Belgium, Japan, France)

-rigid codes, decisions made slowly

Low uncertainty avoidance
comfortable with risks; tolerant of different behavior & opinions (Ireland, Jamaica, Canada, US, Singapore)

-quick decisions

Masculine/Achievement
values such as assertiveness, acquiring money and goods, and competition prevail (US, Japan, Australia)

-ambition and power

Feminine/Nurturing
values such as relationships and concern for others prevail (France, Sweden, Scandinavian countries)
Long-term orientation
people look to the future and value thrift and persistence (China, Taiwan, Japan)
Short-term orientation
people value tradition and the past (Germany, Australia, US, Canada)
power distance
how people perceive power differences (told/asked)
individualism/collectivism
degree to which individuals are integrated into groups (I/we)
Induglence
-degree to which people in a society attempt to control their impulses and desires
-Denmark,Mexico, US score high
How to reduce cultural myopia
-define problem or goal in terms of home country cultural traits
-define problem in terms of host-country cultural traits; make no value judgments
-isolate the self reference criterion (SRC) influence and examine it
-redefine the problem w/o the SRC influence and solve for the host country situation
self-reference criterion & perception
unconscious reference to one’s own cultural values; creates cultural myopia
Diffusion Theory: The Adoption Process
-Innovators
-Early adopters
-Early majority
-Late majority
-Laggards
latent market
an undiscovered market; demand would be there if product was there
incipient market
market will emerge as macro environmental trends continue
self-reference citerion
occurs when a person’s values and beliefs intrude on the assessment of foreign culture
secondary sources
-data from sources that already exist – they have not been gathered for the specific research project
-minimal effort and cost
-trade journals, international orgs, commercial sources, trade associations, databases

ex: go to census websites and use percentages of how many students have cars (therefore less accurate and -cheaper)

primary data
-facts and figures that are newly collected for the project
-methods: survey research, interviews, consumer panels, observation, focus groups
sampling
a selected subset of a population that is representative of the entire population
probability sampling
random selection sampling
non-probability samples
biased sampling
Statistical techniques to analyze data
ANOVA, regression, factor analysis, cluster analysis
comparability
means that research can be used for valid comparisons between countries
emic
analysis studies a culture from within
etic
analysis is detached & used in multi-country studies