Cultural Dynamics in Assessing

Global Markets
Chapter 4

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
LO1 The importance of culture to an international
marketer
LO2 The origins of culture
LO3 The elements of culture
LO4 The impact of cultural borrowing
LO5 The strategy of planned change and its
consequences

4-2
Culture’s Pervasive Impact

▪ Culture influences every part of our lives

▪ Cultures impact on birth rates
• Birthrates have implications for sellers of diapers, toys,
schools, and colleges

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4-4
Culture’s Pervasive Impact
▪ Consumption of different types of food influences
culture
• Chocolate by Swiss, seafood by Japanese preference,
beef by British, wines by France and Italy
▪ Even diseases are influenced by culture
• stomach cancer in Japan, and lung cancer in Spain

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Exhibit 4.2 Patterns of Consumption (annual per capita) Source: EuroMonitor International, 2010,
2012
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4-7
Three Definitions of Culture

Culture is the sum of the “values, rituals, symbols,

beliefs, and thought processes that are learned, shared
by a group of people, and transmitted from generation
to generation”
“software of the mind, 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)

4-8
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Origins of Culture: Geography
▪ Geography, which includes climate, topography,
flora, fauna, and microbiology, influences our social
institutions
▪ Jared Diamond states that historically innovations
spread faster east-to-west than north-to-south
▪ Philip Parker reports strong correlations between the
latitude (climate) and the per capita GDP of countries

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Origins of Culture: History
▪ The impact of specific events in history can be seen
reflected in technology, social institutions, cultural
values, and even consumer behavior
▪ The military conflicts in the Middle East in 2003 bred
new cola brands, Mecca Cola, Muslim Up, and Arab
Cola

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Origins of Culture: History

For e.g., American trade policy depended on tobacco

being the original source of the Virginia colony’s
economic survival in the 1600s
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Origins of Culture:
The Political Economy
▪ For most of the 20th Century three approaches to
governance competed for world dominance:
• Fascism
• Fascism fell in 1945
• Communism
• Communism crumbled in the 1990s
• Democracy/free enterprise

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Origins of Culture: Technology
▪ Technological innovations influence cultural values
▪ Jet aircraft, air conditioning, televisions, computers,
and the internet have all influenced culture

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 Family
Behaviors

Religious School
Value &
Systems Education
Social
Institutions

Government
Media
Policies

Corporations

4-15
Origins of Culture: Social Institutions

▪ Social institutions including family, religion, school,

the media, government, and corporations all affect
culture
▪ The family, social classes, group behavior, age groups,
and how societies define decency and civility are
interpreted differently within every culture

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Origins of Culture: Social Institutions

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
3. School and education, and literacy rates affect
culture and economic growth

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Origins of Culture: Social Institutions

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

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 Cultural
Values

Thought
Rituals
Processes
Elements
of
Culture

Beliefs Symbols

4-19
Cultural Values
▪ Hofstede, who studied over 90,000 people in 66
countries, found that the cultures differed along
four primary dimensions
• Individualism/Collective Index (IDV), which focuses
on self-orientation
• 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

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Individualism/Collectivism Index
1. The Individualism/Collective Index refers to the
preference for behavior that promotes one’s 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

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Power Distance 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

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Uncertainty Avoidance 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

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Exhibit 4.7 Hofstede's Indexes, Language, and Linguistic Distance Source: Geert Hofstede,
Culture's Consequences (thousand Oaks CA: Sage, 2011). 4-24
Rituals and Symbols
▪ Rituals are patterns of behavior and interaction that
are learned and repeated vary from country to
country
• e.g., extended lunch hours in Spain and Greece
▪ Language as Symbols: the “languages” of time,
space, things, friendships, and agreements

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Rituals and Symbols
▪ In Canada, language has been the focus of political
disputes
▪ Differences in language vocabulary varies widely,
even English is different in different countries
▪ Aesthetics as Symbols
• the arts, folklore, music, drama, and dance of a culture
influences marketing

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Beliefs
▪ Beliefs, which mainly stem from religious training,
vary from culture to culture
• 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

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Thought Processes
▪ Thought processes also vary across cultures
• “Asian and Western” thinking
• Other examples?

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Cultural Sensitivity and Tolerance
▪ Successful foreign marketing begins with cultural
sensitivity —being familiar with nuances
▪ A new culture can be viewed objectively, evaluated,
and appreciated.

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Cultural Sensitivity Has to Be Cultivated

▪ Cultural sensitivity can be developed by acquiring

knowledge about a culture including:
• Different meanings of colors, and different tastes
• General facts about a culture
▪ It can also be developed by learning the more in-
depth meaning of cultural facts:
• The meaning of time, and attitudes toward people
• Developing a degree of insight

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Resistance to Change
▪ Although some cultures embrace change others are
resistant to it
• Working women in masculine societies like Saudi Arabia
• Lack of acceptance of GM foods (or “Frankenfood”) in
Europe

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