This slide is about different aspects of global culture.

1. Global Culture

2. Material culture
 Material culture is also referred to as the physical culture or physical component. It
consists of concrete and tangible objects like clothing, books, movies, foods, cars,
music, fashion, buildings, furniture etc. This tangible and concrete items are man
made.

3. Non material culture
 Non material culture is also known as subjective or abstract culture. It includes
intangibles such as attitudes, beliefs, values, religion, perceptions, tradition, habits,
customs, art, law etc.

5. Comparison between material and nonmaterial
culture
 Material culture includes things
that have a physical existence and
these are created by human
himself.
 Tangible things
 Computers, Tv’s, cars, buildings,
phone, foods, movies, clothing etc.
are examples of material culture.
 Non-material culture represents a
community’s values, norms and
attitudes and these do not have a
material existence. They are not
human made.
 Thoughts and ideas
 Language, beliefs, values, rules of
behavior, family patterns, and
political systems are examples of
nonmaterial culture.

6. Comparison between material and nonmaterial
culture
 Items of material culture begin as
raw materials such as iron ore,
trees, and oil.
 They are transformed through
technology. Sociologists define
technology as knowledge,
techniques, and tools that make it
possible for people to transform
resources into usable forms, and
the skills required to use them
after they are developed.
 A central component of
nonmaterial culture is beliefs.
 They are not transferable through
technology. Beliefs, rules, customs,
family system, tradition etc. can
not be transferred thorough
technology. It remains in a persons
mind.

7. Comparison between material and nonmaterial
culture
 Material culture includes the
physical objects that can be seen,
touched and felt by others.
 The material culture represents
humans’ relationship with the
nature also. The man may build a
house in order to protect him
from the sunlight and this process
of survival has led the mankind to
create a lot of material things,
adding value to their own culture
as well.
 Nonmaterial culture includes
abstract intangibles that can not be
seen, touched.
 The material things have a
symbolic value related to the
nonmaterial things. The non-
material faith is embedded in the
material object. For Example: The
wedding ring has a material
existence and it may reflect love,
care and faith to each other
between couples.

8. Importance of understanding relationship between
material culture and nonmaterial culture for global
marketers:
Material and nonmaterial aspects of culture are linked, and physical objects often
symbolize cultural ideas. For example: A metro pass is a material object, but it
represents a form of nonmaterial culture, namely, capitalism, and the acceptance of
paying for transportation. Clothing, hairstyles, and jewelry are part of material
culture, but the appropriateness of wearing certain clothing for specific events
reflects nonmaterial culture.
Material and nonmaterial aspects of a culture has a great impact on global
marketing. A global marketer must have to understand about the relationship
aspects of material and nonmaterial culture in depth of the countries in which they
will be doing business before offering a product to them. Because they have to
develop product. Price ,promote and distribute the product and communicating
product feature to the customers according to that culture and influence customers
to buy it.

9. To have an effective communication one must send the message according to the
receiver's culture, customs and learning process. There are some major barriers by
which effective communication can be hampered. Self Reference Criterion (SRC)
and Ethnocentrism can make the effort worthless. So global marketers have to
understand this relationship.
Another reason is some countries nonmaterial culture( beliefs, norms, values) and
material culture emphasis on ethnocentrism( thinks their products are superior).
Before entering into a country global marketers have to aware of this.
Different countries have different cultural mix ( material and nonmaterial
relationship) that affects global marketing strategy. Poor understanding of this
relationship may costs even billion dollars to a company. Good understanding of
this relationship can help to make billion dollars profit.
Examples: India is a country where most of the people follows Hinduism. So typical
Mcdonald’s can not run business there as it will hurt their religion values as beef is
prohibited in this country. So Mcdonald’s understand this and launched new
Chicken Maharaja mac burger specially for India..

10. They also launched green corner in theie kitchen for their vegetarian fare this
includes vegetabke items such as spicy Mcaloo tikka potato mac burger, pizza
mcpuff, paneer salsa Mcwrap etc Meat items are prepared in red area of the
kitchen. Even the mayonnaise is made without eggs.
In India, food is a material thing but nonmaterial beliefs( not eating beef) has
made global marketers to think differently and run business here. So, if global
marketers does not understand the relationship between this two they will not
be able to run their business profitably and will face criticism and loss.
For all these reasons, it is important for global marketers to understand the
relationship between material and nonmaterial culture.
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11. Low- context culture
 A low-context culture is described as open, rule-oriented, individualized, detail-
oriented in communication, problem-oriented, proactive and productive. In a low
context culture messages are, messages are explicit and specific, words carry most
of the communication power. The United States is an example of a primarily low-
context culture, though it is important to point out that virtually no nation's culture
is exclusively high or low-context.

12. High- Context culture
 A high context culture is one where most of the communication is done
indirectly and more dependence is on non-verbal communication and
gestures. In a high context culture, relationships are built slowly which are
generally long term and stable and are dependent on trust and loyalty. High
context culture is mostly found in Asian, African, Latin American and central
European countries. In high context culture less information is contained in
the verbal part of the message. Much more information resides in the context
of communication, background, associations, and basic values of the
communicators.

13. Difference between High context and Low context
culture
High context culture Low context culture
 In this culture less information is
contained in the verbal part of the
message. Much information resides in
the context of communication,
background, associations and basic
values of communicators.
 High context culture deals with much less
legal paperwork. They place a great deal
of emphasis on a persons values and
positions or place in society.
 Lawyers are less important here.
 In this culture messages are explicit
and specific; words carry most of the
communication power. Most
information is contained in the verbal
part of the message.
 In low context culture deals are made
with more legal paperwork and less
with values, status, background and
information about participants.
 Lawyers are very important in this
culture.

14. Difference between High context and Low context
culture
High context culture Low context culture
 Negotiations are lengthy- a major
purposes is to allow the parties to get to
know each other.
 Competitive bidding is infrequent.
 A persons word his or her bond.
 Responsibility for organizational error is
taken by the highest level. Because of
lower power distance index employees
can easily communicate with their boss
about the problem.
 Negotiations are proceed quickly
here because people relies in legal
documents more here.
 Competitive bidding is common here.
 A persons words is not to be relied
upon; “ get it in writing”.
 Responsibility for organizational error
is pushed to the lowest level because
of the highest level of power distance
index.

15. Difference between High context and Low context
culture
High context culture Low context culture
 In high context cultures, communication
is done primarily through nonverbal
mediums and gestures.
 In high context cultures, social structure
and authority are centralized;
responsibility is on the top. Person at top
works for the good of the group.
 Space is communal; people stand close to
each other and share the same space.
 In low context cultures, information
is vested explicitly so that there is no
risk of confusion.
• In low context cultures social
structure is decentralized;
responsibility goes further down ( is
not concentrated on the top)
• Space is compartmentalized and
privately owned. Privacy is important
so people are farther apart.

16. Difference between High context and Low context
culture
High context culture Low context culture
• Ones identity is rooted in the group they
are in ; family, work, culture etc.
• High context culture emphasis on high
commitment of long term relationship.
• Example: In Saudi Arabia for granting of a
business loan, they depend on the
applicants character, background, status,
position in society, associations to
different groups and values. They will
give the loan based on “ who you are”
than on formal analysis of formal
financial documents.
 Ones identity is rooted in oneself and
ones accomplishments.
 Low context culture emphasis on low
commitment to relationship.
 Example: By contrast, Japanese
companies such as sony traditionally
paid a great deal of attention to the
university background of a new hire;
preference would be given to
graduates of Tokyo university.
Specific elements on a resume were
less important.

17. A country that is an example of both low context culture
and high context culture are discussed below with
evidence:
Countries are classified as high or low context in their overall tendency but
there are exceptions to the general tendency. These exceptions are found in
subcultures. There are countries which contains both high and low context
culture. For example: The United States.
The united states is a low context culture with subculture that operate in the
high- context mode. The world of the central banker, for example is a
gentlemen’s world that is a high context culture. Even during the most hectic
day of the trading in the foreign exchange market a central bankers word is
sufficient for him or her to borrow millions of dollars.

18. Hofstede’s cultural Typology
Hofstede’s Cultural Dimensions Theory, developed by Geert Hofstede, is a
framework used to understand the differences in culture across countries and to
discern the ways that business is done across different cultures. In other words, the
framework is used to distinguish between different national cultures, the
dimensions of culture, and assess their impact on a business setting.
Hofstede identified six categories that define culture:
1.Power Distance Index
2.Collectivism vs. Individualism
3.Uncertainty Avoidance Index
4.Femininity vs. Masculinity
5.Short-Term vs. Long-Term Orientation
6.Restraint vs. Indulgence