The document discusses different cultural orientations that impact services such as views of nature, activities, time, and relationships. It also examines strategies for entering global service markets like foreign direct investment, franchising, and joint ventures. When expanding services globally, organizations must determine whether to standardize or adapt their offerings based on differences in audiences, personnel, settings, and performances across countries.

1. Thinking Globally (Chap. 15) Culture: set of shared values and beliefs in a society Services and Culture Cultural Orientation Toward Nature Cultural Orientation Toward Activities Cultural Orientation Toward Time Cultural Orientation Toward Others

2. Services and Culture Cultural Orientation Toward Nature: Do people seek to control their environment, or do they consider it impossible or inappropriate to control? Cultures differ in the extent to which individuals expect uncertainties to be controlled at the service encounter.

3. Services and Culture Cultural Orientation Toward Activities: Do individuals focus on the activity or results of the activity? That is, do individuals focus on the process or the outcome of service delivery. Eastern cultures (south Asia) are more likely to emphasize the service experience as opposed to the outcome of a service delivery.

4. Services and Culture Cultural Orientation Toward Time: Cultures differ in how individuals perceive the duration and the immediacy of the service encounter. In Western cultures, time is more absolute and punctuality is an important requirement in service delivery.

5. Services and Culture Cultural Orientation Toward Others: Group-oriented cultures place less importance on self and more importance on social hierarchy. Many western cultures (US) take a strongly egalitarian approach to waiting and would reject any attempt to violate the “first come, first served” rule

6. Services and Culture Cultural Orientation Toward God:

7. Services and Culture Hong Kong Disney Service Standards at Four Seasons: in the US, coffee is left on tables at breakfast; in many parts of Europe (France) customers perceive this as lack of service and servers personally refill coffee cups as needed

8. Global Trade in Services Outbound service export strategy: sending the service provider to other countries Fast foods, traveling to other countries to offer service

9. Global Trade in Services Inbound service export strategy: bringing foreign customers to the service provider’s country. Foreign students, patients from other countries

10. Global Trade in Services Teleservice export strategy: exporting services by delivering them electronically Overcome time & distance barrier Offshoring: outsourcing services such as customer service, education, medicine.

11. Criteria for Entering Which countries (potential markets)? Infrastructure, government regulations, trade barriers Quality of labor pool, welcoming environmentliteracy, education level, computer literacy Geographically close: Canada, Mexico Psychic proximity: laws, language, custom

12. Entry Strategies forGlobal Service Markets Foreign Direct Investment – Organization chooses to invest its resources directly in another country Sending service providers to another country

13. Entry Strategies forGlobal Service Markets Franchising Franchisees: service outlets licensed by a principal to deliver a unique service concept it has created or popularized. McDonald’s

14. Entry Strategies forGlobal Service Markets Joint Ventures – Organization contracts with local organizations and thereby shares risks and rewards Wal-Mart and Bharti Enterprises open Wal-Mart stores in India

15. Standardization VersusAdaptation of Global Services Standardization means providing the same service in the same manner around the world Adaptation means tailoring service offerings to accommodate conditions in each local market

16. Standardization VersusAdaptation of Global Services From Table 15.1: Services Theater Decisions Audience: How do the customers differ? Actors: Do we use same types of personnel? How should we adapt training? Compensation for foreign service providers?

17. Standardization VersusAdaptation of Global Services From Table 15.1: Services Theater Decisions Setting: How should the setting be redisigned, and what adaptations are necessary? Performance: How should acts and scripts be adapted?

18. Key Issues in Standardization vs Adaptation To what extent should services marketing mix be adapted or standardized? Review elements of marketing mix and determine which would add more revenue than cost Standardized Adapted

19. Key Issues in Standardization vs. Adaptation Elements of Services Marketing Mix: which will add more revenue than costs ? Actors (training), setting (change in physical environment), performance (change in acts & scripts)