Global Marketing Chapter 4

ways of living, built up by a group of human beings, that are transmitted from one generation to another
social institutions
function to reinforce cultural norms
Hofstede’s definition of culture
the collective programming of the mind that distinguishes the members of one category of people from those of another
1. material culture
2. nonmaterial culture
what are the 2 broad categories of cultural elements?
material culture
“physical component/culture”, physical objects & artifacts created by humans
nonmaterial culture
“subjective/abstract culture”, intangibles like religion, perceptions, attitudes, beliefs, values
Global Consumer Culture Positioning (GCCP)
positioning strategy that seeks to differentiate product, brand, or company as a symbol of, or association w/, a global culture or a global market segment
learned tendency to respond in consistent way to given object/entity
organized pattern of knowledge an individual holds to be true about world
enduring belief/feeling that specific mode of conduct is personally/socially preferable to another mode of conduct
smaller groups of people w/ their own shared subset of attitudes, beliefs, & values
source of society’s beliefs, attitudes, & values
buddhism, hinduism, islam, judaism, christianity
what are the world’s 5 major religions?
visual aesthetics
embodied in color or shape of product, label, package
rules of sentence, formation
system of meaning
system of sound patterns
word formation
nonverbal communication
gestures, touching, & other body language
study of signs & their meanings
verbal communication
what kind of communication do people who grow up in the WEST use more?
nonverbal communication
what kind of communication do people who grow up in the EAST use more?
low-context culture
– messages are explicit & specific
– words carry most of communication power
– deals aren’t made on character, background & values, but on words & numbers
– US, Switzerland, Germany
high-context culture
– less information contained in verbal part of message
– more information in context of communication
– function w/ less legal paperwork
– who you are
– Japan, Saudi Arabia
individualistic cultures
people look after their own & family interest
collectivistic cultures
people expect the group to look after & protect them
power distance
extent to which less powerful members of society accept power to be distributed equally
high power distance
accepts wide differences in power; great respect for authority
low power distance
plays down inequalities; employees not afraid to approach boss
high power distance
what kind of power distance do Hong Kong & France have?
low power distance
what kind of power distance do Germany, Austria, Netherlands, and Scandinavia have?
uncertainty avoidance
extent to which members of society are uncomfortable w/ clear, ambiguous, or unstructured situations; tolerance of differing opinions
high uncertainty avoidance
threatened w/ ambiguity & experience high anxiety
low uncertainty avoidance
comfortable w/ risks; tolerant of different behavior & opinions
describes society where men are expected to be assertive, competitive, & concerned w/ material success & women fulfill role of nurturer & are concerned with issues like welfare of children
describes society where social roles of men & women overlap, w/ neither gender exhibiting overly ambitious or competitive behavior
Long-term orientation
people look to future & value thrift & persistence
Short-term orientation
people value tradition & past
The Self-Reference Criterion (SRC)
the unconscious reference to one’s own cultural values
1. define problem in terms of home-country cultural traits
2. define problem in terms of host-country cultural traits
3. isolate SRC influence & examine
4. redefine problem without SRC influence & solve for host-country market situation
what is the 4-step framework to the Self-Reference Criterion (SRC)?
adoption process
the mental stages an individual passes from time of his/her first knowledge of an innovation to time of product adoption/purchase
1. awareness
2. interest
3. evaluation
4. trial
5. adoption
what are the 5 phases an individual passes through in proceeding from 1st knowledge of product to final adoption/purchase?
characteristics of innovations
the factors that affect the rate at which innovations are adopted
relative advantage
how a new product compares with existing products or methods in eyes of customers
extent to which product is consistent w/ existing values & past experiences of adopters
degree to which an innovation/new product is difficult to understand/use
ability of product to be tried & used on limited basis without great expense
degree to which benefits of an innovation or value of a product may be communicated to potential market
1. relative advantage
2. compatibility
3. complexity
4. divisibility
5. communicability
what are the 5 characteristics of innovations?
adopter categories
classifications of individuals within the market on basis of innovativeness
1. innovators
2. early adopters
3. early majority
4. late majority
5. laggards
5 categories of normal distribution
Interaction effect
process through which individuals who have adopted innovation influence others
environmental sensitivity
reflects extent to which products must be adapted to culture-specific needs of different national markets