Chap 9

The Cultural Environment

International marketing requires constant concern for different cultures and therefore requires adaptation.

Self-reference criterion - a tendency to rely on one own cultural values, personal experience and knowledge as the primary basis for making decisions.

The SRC must be effectively overcome in order to adapt marketing programs to foreign countries.

1) LanguageContext

2) Religion

3) Values and Attitudes

4) Manners/Customs

5) Material ElementsInfrastructureConvergence

Elements of Culture:

6) Aesthetics7) Education8) Social Institutions

Learning about other cultures experiential knowledge factual knowledge

Key Concepts

• High-context culture– is where the social context in which what is said

strongly affects the meaning of the message. – Examples: Japan and Saudi Arabia

• Low-context culture– is where the meaning of the message

is explicitly expressed by the words and is less affected by the social context.

– Example: North America

Contextual Background of Various Countries

High Context Implicit

Japanese

Arabian

Latin American

Spanish

Italian

English (UK)

French

North American (US)

Scandinavian

German

SwissLow Context Explicit

Language • Verbal

– How words are spoken– Gestures made– Body position assumed– Degree of eye contact

• Local language capability’s important role in international marketing– Aids in information gathering and evaluation– Provides access to local society– Important to company communications– Allows for interpretation of contexts

Nonverbal Language

• Hidden language of cultures– Time flexibility and sensibility– Social acquaintance and rapport– Personal physical space and personal touching– Non-verbal gestures and signaling

Fractured Translations

Product English Translation

Equivalent to Japanese Spam Liver Putty

Toilet Paper My Fanny Brand

Ready to Eat Pancakes Strawberry Crap Dessert

Antifreeze Spray Hot Piss Brand

Pediatrician’s Slogan Specialist in Deceased Children

SOURCE: Some Strawberry Crap Dessert, dear South China Morning Post, December 9, 1996 p. 12.

English Translations made by Japanese firm added to labels to increase prestige for their products being sold in China.

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Whose English?

United States United Kingdom

Trunk Boot

Hood Bonnet

Convertible Top Hood

Elevator Lift

Toilet W.C.

Bathroom Tub or Shower

Vacuum Hoover

??? Shag

Bloody ???

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The Major World Religions

• Christianity - 2.0 billion followers

• Islam - 1.2 billion followers

• Hinduism - 860 million followers

• Buddhism - 360 million followers

• Confucianism - 150 million followers

ReligionMarketing in an Islamic Framework

Elements Implications for MarketingA. Unity. (Concept of Centrality, oneness of God, harmony in life.)

Product standardization, mass media techniques, centralbalance, unity in advertising copy and layout, strong brandloyalties, a smaller evoked set size, loyalty to company,opportunities for brand extension strategies.

B. Legitimacy. (Fair dealings, reasonable level of profits.)

Less formal product warranties, need for institutionaladvertising and/or advocacy advertising, especially byforeign firms, and a switch from profit-maximizing to aprofit-satisficing strategy.

C. Zakat. (2.5% per annum compulsory tax binding on all classified as “not poor.”

Use of “excessive” profits, if any, for charitable acts;corporate donations for charity, institutional advertising.

Source: Mushtaq Luqmani, Zahir A Quraeshi, and Linda Delene, “Marketing in Islamic Countries: A Viewpoint,” MSU Business Topics, Summer 1980, pp. 20-21. Reprinted by permission.

Values and Attitudes

• Values– are shared beliefs or

group norms that have been

internalized by individuals.

• Attitudes– are evaluations

of alternatives based on these

values.

Work and Leisure

Attitudes Toward Work:

Have a Substantial Impact on Economic Performance

Vary Greatly Among Countries

Work Hrs. = Average number of working hours per year.

Work/Fun = Young people’s desire to work/learn vs. have fun. (0 for fun - 10 for work/learn).

Comp. Sup. = Society’s support of competitiveness (0 for least support - 10 for most support).

Source: The World Competitiveness Yearbook 1996, (Lausanne: IMD, 1996), pp. 556, 579, 581.

Values of Selected Countries*Country Work Hrs. Work/Fun Comp. Sup.

Austria 1,744 5.72 5.50Australia 1,847 5.44 5.93Canada 1,892 6.59 7.06Chile 2,400 6.23 7.19Germany 1,704 5.2 5.87Greece 1,775 4.6 4.38France 1,790 6.33 5.74Hungary 1,756 5.14 4.11Ireland 1,727 6.37 6.46Italy 1,721 5.32 5.12Japan 1,893 5.4 7.37Mexico 2,094 5.51 4.83S. Africa 1,999 4.65 3.71Spain 1,721 5.41 4.68U.K. 1,880 4.5 5.53U.S.A. 1,946 5.37 6.54

Work and Leisure

*See text for complete listing of countries and statistics.

Cultural Analysis for International Marketing

*Source of this entire list: Philip R. Harris and Robert T. Moran: Managing Cultural Differences, 2nd ed. (Houston: Gulf, 1987) pp. 212-215.

Cultural Dimensions Individualism vs. Collectivism Small vs. Large Power Distance Masculine vs. Feminine Weak vs. Strong Uncertainty Avoidance

Power Distance Index

0

112

10 110

Small PowerDistanceCollectivist

Large PowerDistance Collectivist

Small Power DistanceIndividualist

Large PowerDistance

Individualist

4

1

2

3

5

6

Ind

ivid

ual

ism

Ind

ex

ExampleCountries:

1. Costa Rica2. Korea and Mexico3. Brazil & India4. Israel and Ireland5. Australia and U.S.A.6. France and Italy

Source: Geert Hofstede, Cultures and Organizations, McGraw-Hill, 1991, pp. 23, 51, 83 & 111. Reprinted with permission of the McGraw-Hill Companies.

Power Distance and Individualism-Collectivism

Manners and Customs

• Potential problem areas for marketers arise from an insufficient understanding of:– different ways of thinking.– the necessity of saving face.– knowledge and understanding

of the host country.– the decision-making process

and personal relations.– the allocation of time

for negotiations.

“A house should be dusted and polished three times a week”• Italy 89%

• United Kingdom 59

• France 55

• Spain 53

• Germany 45

• Australia 33

• United States 25

“I attend church regularly”

• Spain 77%

• Italy 75

• Germany 70

• United States 65

• United Kingdom 36

• France 23

• Australia 16

“My children are the most important thing in my life”

• Germany 86%

• Italy 84

• France 73

• United States 71

• Spain 67

• Australia 48

“There is too much emphasis on sex nowadays”

• United Kingdom 82%

• Italy 79

• United States 66

• France 52

• Australia 31

• Germany 24

“Everyone Should Use a Deodorant”

• United States 89%

• Canada 79

• United Kingdom 71

• Italy 69

• France 59

• Australia 53

Cultural Factors• Never touch the head of a Thai or pass an object over it. The

head is considered scared in Thailand.

• Avoid using triangular shapes in Hong Kong, Korea, and Taiwan. It is considered a negative shape.

• The number 7 is considered bad luck in Kenya, good luck in Czech Republic and has a magical connotation in Benin, Africa.

• The number 10 is bad luck in Korea.

• The number 4 means death in Japan.

• Red represents witchcraft and death in many African countries.

• Red is a positive color in Denmark.

SOURCE: Business America, July 12, 1993

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It’s Not the Gift That Counts, but How Your Present It

Japan Do not open a gift in front of a Japanese counterpart unless asked, and do not expect the Japanese to open your gift.

Avoid ribbons and bows as part of the gift wrapping. Bows as we know them are considered unattractive, and ribbon colors can have different meanings.

Do not offer a gift depicting a fox or badger. The fox is the symbol of fertility; the badger, cunning.

Europe Avoid red roses and white flowers, even numbers, and the number 13. Do not wrap flowers in paper.

Do not risk the impression of bribery by spending too much on a gift.

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It’s Not the Gift That Counts, but How Your Present It…

Arab World Do not give a gift when you first meet someone. It may be interpreted as a bribe.

Do not let it appear that you contrived to present the gift when the recipient is alone. It looks bad unless you know the person well. Give the gift in front of others in less –personal relationships.

Latin America Do not give a gift until after a somewhat personal relationship has developed unless it is given to express appreciation for hospitality.

Gift should be given during social encounters, not in the course of business.

China Never make an issue of a gift presentation—publicly or private.

Gifts should be presented privately, with the exception of collective ceremonial gifts at banquets.

Material Elements• Material culture

– Results from technology and is directly related to how a society organizes its economic activity.

– Material culture is manifested in• Economic infrastructure

• Social infrastructure

• Financial infrastructure

• Marketing infrastructure

• Cultural convergence

– The degree of industrialization can provide a marketing segmentation variable.

Aesthetics

• What is or is not acceptable as good taste varies widely in cultures.

• The symbolism of colors, forms, and music carries different meanings in different cultures.

Education• Assessing the educational level of a culture

– formal and informal education– literacy rates– enrollment in secondary

or higher education– qualitative aspects of

emphasizing science

• Education affects– employee training– competition for labor– product characteristics

Country Secondary University LiteracyAustria 104 37 98Australia 82 40 99Canada 104 99 98Chile 72 23 95Germany 97 36 99France 101 46 99India 44 6 52Ireland 101 38 99Italy 76 34 97Japan 97 32 100Mexico 55 14 87South Africa 69 14 82Spain 108 40 95United Kingdom 86 28 99United States 90 46 100

Secondary = Percentage of relevant age group receiving full time secondary education. Scores in excess of 100% indicate adults also participating in that education.

University = Percentage of population 20 - 24 years old enrolled in higher education

Literacy = Percentage of Population over 15 years old

Source: The World Competitiveness Report 1996 (Lausanne: IMD, 1996), pp. 560, 561, 567.

Education

*See text for complete listing of countries and statistics.

Educational Statistics of Selected Countries (in %)*

Social Institutions

• Kinship relationships– immediate and extended family

• Social stratification

• Reference groups– Primary reference groups

• family, coworkers

– Secondary reference groups• professional associations,

trade organizations

The Family

Family Roles Display Great

Variances between Cultures

Nuclear Family

Family Statistics of Selected Countries (in %)*

Pop. Growth = Population Growth: percentage per year, 1985-1995.

Fem. Work = Female participation in the labor force as a percentage of the total labor force, 1995.

Source: 1997 World Bank Atlas, Washington, DC: World Bank, 1997, pp. 16-17.

Country Pop. Growth Fem. WorkAustria 0.6 41Australia 1.4 43Canada 1.3 45Chile 1.6 32Germany 0.5 42Greece 0.5 36France 0.5 44Ireland 0.1 33Italy 0.1 38Japan 0.4 41Mexico 2.1 31S. Africa 2.3 37Spain 0.2 36U.K. 0.3 43U.S.A. 0.9 46

The Family

*See text for complete listing of countries and statistics.

The Training Challenge - Global Managers

• Internal education programs that increase cultural sensitivity– Culture-specific information– Culture-general information– Self-specific information

• Specialized training for global managers– Area studies

• Environmental briefings

• Cultural orientation programs

– Cultural assimilator– Sensitivity training– Field experience

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Business Customs

Cultural ImperativesCultural Imperatives

Cultural AdiaphoraCultural Adiaphora

Cultural ExclusivesCultural Exclusives

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