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Chapter 3
Social and Cultural Environments
(Lecturer: Minli Wan)
Task of Global Marketers
Study and understand the country culture in which
they will be doing business.
Incorporate this understanding into the marketing
planning process.
Agenda
An overview of culture:
Definition of culture
Elements of culture
Marketing’s impacts on culture
Approaches to studying culture:
Hall’s high- and low-context culture
Hofstede’s cultural typology
The self-reference criterion
Diffusion theory
“People are different around the
world. However, their needs are
the same. How they satisfy their
needs is different, and this is
what we mean by CULTURE.”
- Dr. John Condon
Definition of Culture
“Culture is the collective
programming of the mind that
distinguishes the members of one
category of people from those of
another.”
- Geert Hofstede
Culture is “ways of living, built up by a group of
human beings, which can be transmitted from one
generation to another.”
Culture is acted out in social institutions, including
family, educational, religious, governmental and
business institutions.
Elements of Culture
Culture is divided into material and nonmaterial
culture.
Material culture:
Nonmaterial culture:
Clothing
Tools
Decorative art
Body adornment
Homes
Beliefs
Attitudes
Values
Religion
Aesthetics
Dietary preferences
Language
Attitudes, Beliefs and Values
Belief – an organized pattern of knowledge that an
individual holds to be true about the world.
Attitude – a learned tendency to respond in a
consistent way to a given object or entity.
Value – enduring belief or feeling that a specific
mode of conduct is personally or socially
preferable to another mode of conduct.
=> Attitudes and beliefs are closely related to values.
Major Religious Groups
(Percentage of World Population)
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Impacts of Religion on Global
Marketing Activities
Religious tenets, practices, holidays and history
impact global marketing activities.
Examples:
Hindus do not eat beef, meaning that McDonald’s
cannot serve hamburgers in India.
In the aftermath of the September 2001, terror attacks
in New York and Washington, D.C. and the subsequent
American military actions in the Middle East, some
Muslims have tapped into anti-American sentiment by
urging a boycott of American brands.
Aesthetics
The sense of what is
beautiful or not
beautiful.
What represents good
taste as opposed to
tastelessness or even
obscenity.
Visual aesthetics –
embodied in the color
or shape of a product,
label or package.
Aesthetics style –
perceived differently
around the world.
Color
Color preferences vary among cultures:
Red is popular in most countries, which is associated
with blood, winemaking, active, hot, vibrant and
weddings, but is poorly received in some African
countries.
White connotes purity and cleanliness in the West, but
is associated with death in parts of Asia.
Gray connotes inexpensive in China and Japan, but
associated with high quality and expensive in the U.S.
=> Colors may need to be adapted according to local
cultural preferences.
Dietary Preferences
Would you eat……
Kimchi (Korea) – made of vegetables
with a variety of seasonings?
Blood sausage (Finland and Germany)
– made by cooking blood or dried
blood with a filler until it is thick
enough to congeal when cooled?
Sushi for breakfast (Japan) – made of
nori seaweed and filled with sushi rice,
seafood and vegetable?
Dietary Preferences
Would you eat……
Goose liver (Hungary)?
Pickled eggs (USA)?
Fried crickets (The Philippines)?
Reindeer (Finland)?
Rabbit (France)?
A solid understanding of food-related cultural preferences is important
for any company that markets food or beverage products globally.
Dietary Preferences
Domino’s Pizza pulled out of Italy because its products
were seen as “too American” with bold tomato sauce
and heavy toppings.
To successfully launch the Subway chain in India, it
was necessary to educate Indians about the benefits of
the company’s sandwiches because Indians do not
normally eat bread.
While some food preferences remain deeply embedded
in culture, there is plenty of evidence that global
dietary preferences are converging. E.g., “fast food” is
gaining increased acceptance around the world.
Language and Communication
Language is rooted in society and culture, and
culture is reflected by language.
In global marketing, language is a crucial tool for
communication. It can convey all kind of
information.
Include verbal language and nonverbal language:
Nonverbal
communication
includes
gestures,
touching, and other forms of body language that
supplement verbal communication.
Language and Communication
Verbal communication:


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Diffusion of English:
There are more people who
speak English as a foreign
language than native speakers;
85% of European teens study
English;
Many global companies
require managers to speak
English;
Local language study is
beneficial.
Nonverbal communication:
Westerners tend to be verbal,
Asians value nonverbal
communication;
Body language from different
culture has different meaning;
=> Nonverbal communication
is a challenge for global
marketers.
Nonverbal Communication
Nonverbal Communication
Nonverbal Communication
Laughing is connoted in most countries with
happiness. But in Japan, it is often a sign of
confusion, insecureness and embarrassment.
In Africa, avoiding eye contract or looking at the
ground when talking to one’s parents, an elder or
someone of higher social status is a sign of
respect. In contrast, the same actions are signals of
deception or shame (on the part of the doer) in NA
and most European countries.
Nonverbal Communication
If invited to a dinner, in some Asian countries and
Central America, it is well-mannered to leave
right after the dinner – the ones who do not leave
may indicate that they have not eaten enough.
However, in the Indian sub-continent, European
and NA countries, this is considered rude,
indicating that the guest only wants to eat but
could not enjoy the company with the hosts.
Marketing’s Impact on Culture
Universal aspects of the cultural environment
represent opportunities for global markers to
standardize elements of a marketing program.
Increasing travel and improved communications
have contributed to a convergence of tastes and
preferences in a number of product categories.
The cultural change and the globalization of culture
have been significantly accelerated by companies
seizing opportunities to find customers around the
world.
Marketing’s Impact on Culture
However, the impact of marketing
and global capitalization on culture
can be controversial.
Sociologist George Ritzer laments
the “McDonaldization of Culture”.
“Anti-McDonaldization”:
The International Slow Food
Movement has 70,000 members
in 35 countries.
“Slow food is about the idea
that things should not taste the
same everywhere.”
Hall’s High- and Low-Context Cultures
Context of a culture can either be high or low in
terms of background information.
High Context:
Information resides in context:
background, basic values.
Many things are left unsaid.
Less emphasis on legal paperwork.
Focus on personal reputation.
Saudi Arabia, Japan, China.
Low Context:
Messages are explicit and
specific.
Words carry all information.
Reliance on legal paperwork.
Focus on non-personal
documentation of credibility.
Switzerland, U.S., Germany.
Contextual Background of Various
Countries (Hall 1984)
Hofstede’s Cultural Typology
– Five Dimensions of Culture
Power Distance
Individualism / Collectivism
Masculinity / Femininity
Uncertainty avoidance
Long-term orientation / Short-term orientation
Power Distance
It refers to the extent to which less powerful
members of a society accept the unequal distribution
of power.
The power distance index (PDI) measures social
inequality in family, school, and work place.
Countries with high PDI tend to be hierarchical and
value power and social status, so they are often
characterized by a high rate of political violence.
Countries with low PDI value equality and reflect
egalitarian views.
Individualism vs. Collectivism
It refers to the degree of integration of individuals
in a society into groups.
In individualist cultures, each member of society
is mainly concerned with his/her own interest and
their immediate family.
In collectivist cultures, society’s members are
integrated into cohesive in-groups.
Masculinity vs. Femininity
It refers to the value traditionally placed on males
and females.
Masculinity describes a society in which men are
expected to be assertive, competitive and
concerned with material success, and women fulfill
the role of nurturer and are concerned with issues
such as the welfare of children.
Femininity describes a society in which the social
roles of men and women overlap, with neither
gender exhibiting overly ambitious or competitive
behavior.
Uncertainty Avoidance
It reflects the extent to which members of a society
are uncomfortable with unclear, ambiguous or
unstructured situations.
The uncertainty avoidance index (UAI) measures the
tolerance of uncertainty and ambiguity among
members of a society.
High UAI cultures are highly intolerant of ambiguity,
anxiety and stress, prefer rules and structured
circumstances (The Mediterranean countries and
Japan ranks the highest in this category).
Uncertainty Avoidance
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.
Discussion:
China is a country with high or low uncertainty
avoidance?
Denmark has one of the highest divorce rates in the
world. Why?
Long-term vs. Short-term Orientation
It describes a society’s “time horizon”, and assesses
the extent to which a society encourages and rewards
future-oriented behaviors, such as planning, investing
in the future.
Long-term orientation:
Short-term orientation:
Admire persistence;
Relationships ordered by status;
Be thrifty;
Having a sense of shame that
emphasizes caring for others and
being loyal and trustworthy.
Emphasis on quick results;
Status is not a major issue;
Spending;
Not saving face that can hinder the
flow of business.
Discussion: Five Cultural Dimensions
(Scale: High – Moderate – Low)
Five cultural dimensions in China:
Power distance: ________; Individualism: ________;
Masculinity: ________; Uncertainty avoidance: ________;
Long-term orientation: ________.
A comparison of five dimension between China and Japan:
Power distance: China ____ Japan;
Individualism: China ____ Japan;
Masculinity: China ____ Japan;
Uncertainty avoidance: China ____ Japan;
Long-term orientation: China ____ Japan.
Five Dimensions in the Context of China
A Comparison of 5D between China and Japan
Marketing Implications of Hofstede’s
Cultural Typology
Hofstedes’ work gives marketers insights in a
range
of
activities,
including
product
development, interacting with joint venture
partners, and conducting sales meetings.
Power distance reflects the degree of trust; the
higher the PDI, the lower the level of trust.
Companies with high PDI culture prefer sole
ownership of subsidiaries to provide more control.
Companies with low PDI culture are more apt to
use JVs.
Marketing Implications of Hofstede’s
Cultural Typology
The collective-individual orientation is an
important cultural component.
In Japan, team orientation and desire for harmony
means that praising an individual in front of peers
is awkward.
In the USA with highly individual culture, a
person with accomplishments is likely to be
pleased by publicly acknowledgement.
Marketing Implications of Hofstede’s
Cultural Typology
The masculine-femininity dimension manifests
itself in the importance of achievement and
processions (masculine values) compared with
helpfulness and social support (feminine culture).
An aggressive, achievement-oriented sales person
is better matched to Austria and Japan than
Denmark.
Marketing Implications of Hofstede’s
Cultural Typology
By understanding uncertainty avoidance, global
marketers can assess the buyers’ risk tolerance.
In Japan and other Asian countries, with low
tolerance for the unknown, buyers will be
conscious of brand names and are likely to exhibit
high brand loyalty. Advertising copy should stress
warranties and money-back guarantees.
The Self-Reference Criterion (SRC):
Major Obstacle
SRC is an unconscious reference to one’s own
cultural values, experiences and knowledge as a basis
for decisions.
Ethnocentrism refers to the notion that one’s own
culture or company knows best how to do things.
Both the SRC and ethnocentrism impede the ability
to assess a foreign market in its true light.
One’s SRC can prevent him from being aware of
cultural differences and therefore produce an
unsuccessful marketing program.
Avoiding the Self-Reference Criterion (SRC)
To avoid the SRC or to reduce cultural myopia, the
following steps are suggested:
1.
2.
3.
4.
Define the problem or goal in home-country cultural
traits, habits or norms.
Define the problem in host-country (foreign-country)
cultural traits, habits or norms; make no value
judgments.
Isolate the SRC influence in the problem and examine
it to see how it complicates the problem.
Redefine the problem without the SRC influence and
solve for the host-country market situation.
Diffusion Theory
Everett Rogers’ diffusion of innovation framework:
The adoption process
Characteristics of innovations
Categories of adopters
The Adoption Process
The mental stages through which an individual
passes from the time of his or her first knowledge of
an innovation to the time of product adoption or
purchase:
Awareness -> Interest -> Evaluation -> Trial -> Adoption:
• Awareness: Global marketing should create awareness
of a new product through general exposure to
advertising messages;
• During the stage from evaluation to trial to adoption,
sales representatives and word of mouth are regarded as
major persuasive forces affecting customers’ buying
decisions.
Characteristics of Innovations
Five factors affecting the rate at which innovations
are adopted:
Relative advantage – how a new product compares with
existing products or methods;
Compatibility – how consistent a new product is with
existing values and past experiences of adopters;
Complexity – how difficult a new product is to understand
and use;
Divisibility – how easy a new product is tried on a limited
basis without great expense;
Communicability – how well the benefits or the value of a
new product are communicated.
Adopter Categories
Contribution of the Diffusion Theory
Explain how products are adopted and diffused over
time by different adopter categories;
Rogers’ findings concerning the characteristics of
innovations help global marketers successfully
launch new products in global markets.
Marketing Implications of Social and
Cultural Environments
The various cultural factors can exert important
influences on marketing consumer products and
industrial products.
These factors must be considered in formulating a
global marketing plan.
Environmental sensitivity reflects the extent to
which products must be adapted to the culturespecific needs of different national markets.
Environmental Sensitivity
Cases:
The greater a product’s environmental sensitivity, the more
marketers must address countryspecific
economic,
regulatory,
technological, social and cultural
environmental conditions.
Consumer products, such as food,
are more sensitive to culture than
industrial products.
McDonald’s has achieved great success outside the USA by adopting its
menu items to local tastes.
The Swiss dehydrated Knorr soup had a major share in the European
prepared food market, but did not gain popularity in the US market
because of the company’s failure to change the soup-eating habits of
Americans, who preferred canned soups.
Homework
Difference between high-context and lowcontext culture. How does it affect your
business conducting?
Understand how an unconscious reference to
their own cultural values or self-reference
criterion may influence their perception of the
market.
Exercises for Chapter 4。
Preview Chapter 4. The Political, Legal, and
Regulatory Environments of Marketing。
Thank You!
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High- and Low-Context Cultures
Factor / Dimension
High Context
Low Context
Lawyers
Less Important
Very Important
A person’s word
Is his / her bond
Is unreliable – get it in writing
Responsibility for
Organizational error
Taken by highest level
Pushed to the lowest level
Space
People breathe on each
other
Private space maintained
Time
Polychronic
Monochronic
Negotiations
Lengthy
Proceed quickly
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4-57
Measure Cultural Difference
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Marketing Implications of Hofstede’s
Cultural Typology
The collective-individual orientation is an
important cultural component.
In Japan, team orientation and desire for harmony
means that praising an individual in front of peers
is awkward. Japanese say:” The nail that sticks up
get hammers down”.
In the highly US culture, a person with
accomplishments is likely to be pleased by
publicly acknowledgement.