This document discusses cultural dynamics in assessing global markets. It covers several key points:
1. Cultures are complex and influenced by many factors like material goods, social institutions, and beliefs.
2. Markets are shaped by the interaction of cultural, economic, and marketer influences. Understanding culture is crucial for international marketers.
3. There are different levels of culture from national to occupational that marketers must consider. Cultures also change over time through borrowing and planned/unplanned changes.
These slides tell about what is culture, cultural universal, culture shock, cultural relativism, norms, values, mores, and culture from functionalist, conflict, feminist and interactionist perspective
These slides tell about what is culture, cultural universal, culture shock, cultural relativism, norms, values, mores, and culture from functionalist, conflict, feminist and interactionist perspective
Factors Influencing Consumer Buying Decision
Influence of Culture on Consumer Behavior-Concept of Culture; The measurement of Culture; Indian Core
Values; Cultural aspects of emerging markets, Values, Lifestyles, and Psychographics- Impact of Values,
Lifestyles and Psychographics on buying behavior; Demographics, Lifestyles and Psychographics; Values and
Value Systems, Group Influence on Consumption- Role of reference groups; Effect of reference groups on
consumer decision making; Celebrity endorsements
Cross cultural management involves managing work teams in ways that considers the differences in cultures, practices and preferences of consumers in a global or international business context. Many businesses have to learn to modify or adapt their approaches in order to compete on a level in fields no longer bound by physical geography with online interactions more common in business and other situations.
ELECTIVE 1 MULTICULTURAL GROUP 1
This is a compilation of the reports made by group 1 about what is culture, its components and the Filipino culture.
---USEP CED-BSED TLE 3
Understanding the ConsumerCulture and Cultural Change1.docxmarilucorr
Understanding the Consumer
Culture and Cultural Change
1
Understanding Culture
Culture is the lens through which consumers view products and try to make sense of their own and other people’s behaviour..
Culture dictates the manner of how people consume, the priority of needs and wants they attempt to satisfy.
Consumption choices cannot be understood without considering the cultural context in which they are made.
Therefore:
Culture determines
the overall priorities that a consumer attaches to different activities and products
the success or failure of specific products and services.
What is Culture?
Culture is “that complex whole which includes knowledge, belief, art, law, morals, custom, and any other capabilities and habits acquired by man as a member of society.”
(Edward B. Tylor, 1871)
What is the difference between the two?
Culture is "the collective programming of the mind which distinguishes the members of one group or category of people from another."
(Hofstede, 1991, p.5)
3
Definitions of Culture
“Culture may be defined as a set of values, ideas, artefacts, and other meaningful symbols that help individuals to communicate, interpret, and evaluate as members of society.“ (Engel, Blackwell & Miniard, 1990, p. 3).
‘Culture is a society’s personality and describes what people have in common. It is the total sum of learned beliefs, values, and customs that direct the consumer behaviour of members of a particular society’ (Schiffman et al., pp. 282)
4
(adapted from Douglas & Craig, 2011)
Consumer
CULTURE
Cognition
Attitude
Values
Patterns of
Consumption
Choices
Information seeking
Disposal?
Macro
Micro
Meso
Situational Factors
Macro: The types of macroenvironmental variables, which condition consumer behavior, include economic variables such as GNI per capita, income distribution,
GNP, income distribution, government exp, population- purchasing power and variety of options available
The demographic factors such as population size and rate of growth, levels of education, socio-cultural factors such as cultural values, religion and geographic factors such as climate or topography. While each of these different factors can be clearly identified, it is important to remember that they interact with each other, as well as conditioning variables at other levels of context.
Meso: within country differences in ethics groups, language, lifestyle, culture, topography
In China, for example, there are marked differences in the economic infrastructure, consumer purchasing power and distribution channels between different regions (Batra, 1997; Cui and Liu, 2000).
Micro: Local level info on market, economy
This is defined here as consisting of the basic physical infrastructure in a village, town or city, including roads, water, electricity, the market infrastructure, i.e. the number and type of stores avail ...
Factors Influencing Consumer Buying Decision
Influence of Culture on Consumer Behavior-Concept of Culture; The measurement of Culture; Indian Core
Values; Cultural aspects of emerging markets, Values, Lifestyles, and Psychographics- Impact of Values,
Lifestyles and Psychographics on buying behavior; Demographics, Lifestyles and Psychographics; Values and
Value Systems, Group Influence on Consumption- Role of reference groups; Effect of reference groups on
consumer decision making; Celebrity endorsements
Cross cultural management involves managing work teams in ways that considers the differences in cultures, practices and preferences of consumers in a global or international business context. Many businesses have to learn to modify or adapt their approaches in order to compete on a level in fields no longer bound by physical geography with online interactions more common in business and other situations.
ELECTIVE 1 MULTICULTURAL GROUP 1
This is a compilation of the reports made by group 1 about what is culture, its components and the Filipino culture.
---USEP CED-BSED TLE 3
Understanding the ConsumerCulture and Cultural Change1.docxmarilucorr
Understanding the Consumer
Culture and Cultural Change
1
Understanding Culture
Culture is the lens through which consumers view products and try to make sense of their own and other people’s behaviour..
Culture dictates the manner of how people consume, the priority of needs and wants they attempt to satisfy.
Consumption choices cannot be understood without considering the cultural context in which they are made.
Therefore:
Culture determines
the overall priorities that a consumer attaches to different activities and products
the success or failure of specific products and services.
What is Culture?
Culture is “that complex whole which includes knowledge, belief, art, law, morals, custom, and any other capabilities and habits acquired by man as a member of society.”
(Edward B. Tylor, 1871)
What is the difference between the two?
Culture is "the collective programming of the mind which distinguishes the members of one group or category of people from another."
(Hofstede, 1991, p.5)
3
Definitions of Culture
“Culture may be defined as a set of values, ideas, artefacts, and other meaningful symbols that help individuals to communicate, interpret, and evaluate as members of society.“ (Engel, Blackwell & Miniard, 1990, p. 3).
‘Culture is a society’s personality and describes what people have in common. It is the total sum of learned beliefs, values, and customs that direct the consumer behaviour of members of a particular society’ (Schiffman et al., pp. 282)
4
(adapted from Douglas & Craig, 2011)
Consumer
CULTURE
Cognition
Attitude
Values
Patterns of
Consumption
Choices
Information seeking
Disposal?
Macro
Micro
Meso
Situational Factors
Macro: The types of macroenvironmental variables, which condition consumer behavior, include economic variables such as GNI per capita, income distribution,
GNP, income distribution, government exp, population- purchasing power and variety of options available
The demographic factors such as population size and rate of growth, levels of education, socio-cultural factors such as cultural values, religion and geographic factors such as climate or topography. While each of these different factors can be clearly identified, it is important to remember that they interact with each other, as well as conditioning variables at other levels of context.
Meso: within country differences in ethics groups, language, lifestyle, culture, topography
In China, for example, there are marked differences in the economic infrastructure, consumer purchasing power and distribution channels between different regions (Batra, 1997; Cui and Liu, 2000).
Micro: Local level info on market, economy
This is defined here as consisting of the basic physical infrastructure in a village, town or city, including roads, water, electricity, the market infrastructure, i.e. the number and type of stores avail ...
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Your Path to Profits - The Game-Changing Power of a Marketing - Daniel Bussius
Cultural Dynamics in Global Market
1. INTERNATIONAL MARKETING
1 5 T H E D I T I O N
P H I L I P R. C A T E O R A
M A R Y C. G I L L Y
J O H N L . G R A H A M
Cultural Dynamics in Assessing Global Markets
Chapter 4
3. INTRODUCTION
Culture is human-made part of human
environment- the sum total of knowledge,
beliefs, art, morals, laws, customs, and any
other capabilities and habits acquired by
humans as members of society.
4. INTRODUCTION
Culture is pertinent to the study of international
marketing
Culture is pervasive in all international marketing
activities- Pricing, promotions, Channels of
Distribution, product, packaging and styling
The priority of the needs and wants and the manner
in which they are satisfied are functions of culture
that eventually dictates styles of living.
Markets constantly change and market behaviors
are part of a country’s culture.
5. INTRODUCTION …….CONTD.
One cannot truly understand how markets
evolve or how they react to a marketer’s effort
without appreciating that markets are a result of
culture.
In fact, markets are a result of the three-way
interaction of a marketer’s efforts, economic
conditions, and all other elements of the culture.
Marketers are constantly adjusting their efforts
to cultural demands of the market, but they are
also acting as “agents of change” whenever the
product or idea being marketed is innovative.
6. Levels of Culture in Multinational Management
National Culture
Business Culture
Organizational Culture Occupational Culture
Multinational Management
7. National culture is the dominant culture within
the political boundaries of the nation-state
Business culture represents norms, values,
and beliefs that pertain to all aspects of doing
business in a culture.
Levels of Culture in Multinational Management
8. Occupational cultures are the norms, values,
beliefs, and expected ways of behaving for
people in the same occupational group such as
physicians, lawyers, accountants, and craftspeople.
Organizational cultures are the norms,
values, and beliefs concerning the organization
shared by members of the organization.
Levels of Culture in Multinational Management
9. Changes in Asian Cultural Drivers
•Religion - Remains strong in many
•Family - Getting smaller in many
•Government - Quite active in many
•School - Always important
•Social media - Getting stronger in many
•Copyright: Dae Ryun Chang
10. EXAMPLE
How the Chinese view relationships.
https://www.youtube.com/watch?v=qingy5JAt
8w&feature=related
11. 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
13. Exhibit 4.2 Consequences of Consumption (annual per capita) Source: EuroMonitor
International, 2010, 2012
14. 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)
15. ORIGINS OF CULTURE
Material Culture
Technology – the techniques and “know-how” of producing
material goods.
Economics – the employment of capabilities and the results.
Social Institutions
Social organizations – family life, status, age.
Education – literacy and intelligence and how informed the
public is.
Political structures – control over business.
Man and the Universe
Belief systems – how do these affect product and promotional
acceptance?
16. ELEMENTS OF CULTURE: MATERIAL CULTURE
Technology
Technological innovations influence cultural values
Jet aircraft, air conditioning, televisions, computers,
and the internet have all influenced culture
Economies: People’s capability to purchase goods
and services
18. ELEMENTS 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
19. ELEMENTS 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
21. ELEMENTS OF CULTURE: 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
22. 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
23. 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
24. 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
25. Exhibit 4.7 Hofstede's Indexes, Language, and Linguistic Distance Source: Geert
Hofstede, Culture's Consequences (thousand Oaks CA: Sage, 2011).
26. ELEMENTS OF CULTURE: RITUALS AND SYMBOLS
Rituals are patterns of behavior and
interaction that are learned and repeated
vary from country to country
Example: Eid salami, to wear bindi by Hindu
wives, to steal shoes in a wedding
27. ELEMENTS OF CULTURE: LANGUAGE AND
LINGUISTIC DISTANCE
From English------
Germany 1, Danish 2, Spanish 3,
Japanese four, Hebrew five,
Chinese 6 and Thai seven
French attempting to preserve
the purity of their language
Linguistic differences from
English, reflects increase in
PDI, decreases IDV and
corruption increases.
Differences in language vocabulary varies
widely, even English is different in
different countries.
28. EXAMPLES OF HOW MESSAGES CAN BE
TRANSLATED IN A WRONG WAY
• A Polish Menu: “Beef rasher’s beaten up in the
country people’s fashion”.
• A Bankok Dry Cleaner: “Drop your trousers here
for best results”.
• Sign in a Rome Doctor’s Office: “Specialists in
women and other diseases”.
• A Sign in a Hong Kong Hospital Bathroom:
“Please don’t stand on the toilet seat”.
• Copenhagen Airline Ticket Office: “ We take all
your bags and send them in all directions”.
29. ELEMENTS OF CULTURE: AESTHETICS AND
SYMBOLS
Aesthetics as Symbols
the arts, folklore, music, drama, and dance of a
culture influences marketing
Graphic and plastic arts – degree of
modernization.
Folklore – superstition, tradition, etc.
Music, drama, and the dance – promotional
possibilities.
30. Exhibit 4.8 Metaphorical Journeys through 23 Nations
Source: Martin J. Gannon, Understanding global Cultures, Metaphorical Journeys
through 23 Nations, 2nd ed. Copright 2001.
31. ELEMENTS OF CULTURE: 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
32. CULTURES PERVASIVE IMPACT
• Culture influences every part of our lives
• Cultures impact on birth rates in Taiwan, Japan, and Singapore
33. ELEMENTS OF CULTURE: THOUGHT PROCESSES
Thought processes also vary across cultures
“Asian and Western” thinking
Punctuality, hidden meaning in perception and
straight forwardness etc.
34. Chinese Book of Songs , circa 800 BC:
When a son is born
Let him sleep on the bed,
Clothe him with fine clothes.
And give him jade to play with. . . .
When a daughter is born,
Let her sleep on the ground,
Wrap her in common wrappings,
And give her broken tiles for playthings.
????????????????????????????????
35. CULTURAL CHANGE AND CULTURAL
BORROWING
International marketers should appreciate
how cultures change and accept or reject
new ideas
Hofstede has shown that consumers’
acceptance of innovations varies across
cultures – innovation was associated with
higher individualism (IDV), and lower
power distance (PDI) and uncertainty
avoidance (UAI)
International marketers should be aware the
extent to which cultures borrow ideas and
learn from other cultures
36. CULTURAL BORROWING
It is a responsible effort to learn from others’
cultural ways in the quest for better solutions
to a society’s particular problems.
37. CULTURAL CHANGE
Planned and Unplanned Cultural Change
Unplanned Change- introduce a product and
hope for the best
Planned Change- deliberately set out to
change those aspects of the culture offering
resistance to predetermined marketing goals.
Consequences of Innovation – functional or
dysfunctional
38. WHOSE ENGLISH?
United
States
• Trunk
• Hood
• Convertible
Top
• Elevator
• Toilet
• Bathroom
• Vacuum
United
Kingdom
• Boot
• Bonnet
• Hood
• Lift
• W.C.
• Tub or
Shower
• Hoover
39. CULTURAL SENSITIVITY AND TOLERANCE
Successful foreign marketing begins with
cultural sensitivity —being familiar with
nuances
ICC qualifier tournament in 1997 when
Bangladesh won
Baisakhi and Bengali New Year.
21st Feb International Mother L:anguage Day
A new culture can be viewed objectively,
evaluated, and appreciated.
40. CULTURAL SENSITIVITY HAS TO BE CULTIVATED
There are two kinds of knowledge about cultures both of
which are necessary
Interpretive knowledge is the ability to
understand and appreciate the nuances
of different cultural traits and patterns,
e.g., the meaning of time, and attitudes
toward people
Interpretive knowledge requires a
degree of insight
It is dependent on past experience for
interpretation
It is prone to misinterpretation if one’s
SRC is used
Factual knowledge
is usually obvious
and must be learned,
e.g., different
meanings of colors,
and different tastes;
it deals with the facts
about a culture
41. ENVIRONMENTAL SENSITIVITY
It is the extent to which products must be adapted
to the culture-specific needs of different national
markets.
Product
Adaptation
Environmental Sensitivity
High
High
Low
Low
Integrated Circuit
Computer
Food
Fig: Environmental
Sensitivity Product Adaptation
Matrix
42. ENVIRONMENTAL SENSITIVITY
Intel- a chip is a chip anywhere around the world
Product Adaptation- low
Environmental Sensitivity- low
Computer
Product Adaptation- variations in the country voltage requirements require
some adaptation
Environmental Sensitivity- low
Food
Product Adaptation- high, McDonald’s adapting to local taste
Environmental Sensitivity- High, sensitive to climate and culture
43. 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