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Social & Cultural Environment- An Overview
What is Culture Attitude Belief Values Religion
Aesthetics Dietary Preferences Language &
Communication Factors Affecting Cross-
cultural Business
Hofstedes CulturalTypology
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Task of Global Marketers
Study and understand the countrycultures in which they will be doing
business Incorporate this understanding into the
marketing planning process
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What is Culture? Ways of living Built up by a group of
human beings
Transmitted from onegeneration to another Social Institutions Family Educational, Religious Governmental, business
The collective programming of themind that distinguishesthe members of onecategory of people fromthose of another .
--- Geert Hofstede
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Material and Nonmaterial- Two Dimensions
Physical components of culture
Objects Artifacts
Clothing Tools Pictures Homes
Subjective or abstractculture
Religion Perceptions Attitudes Beliefs
Values
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Attitudes, Beliefs & Values
Attitude
A learned tendency torespond in a consistentway to a givenobject/entity
Belief: An Organized pattern of
knowledge that anindividual holds to be
true
Values
An enduring belief orfeeling that a specificmode of conduct ispersonally/sociallypreferable to anothermode of conduct
Represent the deepestlevel of culture
Present in a majority of members of a particularculture
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ReligionReligion is one important
source of societysbeliefs, attitudes, and values. The worlds
major religions include:
Buddhism, Hinduism,Islam, Judaism, and
Christianity.
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Language and Communication
Linguistic Category Language Example
Syntax English has relatively fixed word order;Russian has relatively free word order
Semantics Japanese words convey nuances of feelingfor which other languages lack exact
correlations; yes and no can beinterpreted differently than in otherlanguages.
Phonology Japanese does not distinguish between thesounds l and r; English and Russian both
have l and r sounds.
Morphology Russian is a highly inflected language, withsix different case endings for nouns andadjectives; English has fewer inflections.
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Factors Affecting Cross-CulturalBusiness
Time Time equals money vs.
relationships
Time & Decision Making Thought Patterns
Circular vs. LinearCultures
Personal Space
Material Possessions Family & Friendship Roles Competitiveness &
Individuality Social Behavior
Eating Foods Gift Giving Greetings
High Vs. Low ContextCultures
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High- and Low-Context Cultures High Context
Information residesin context
Emphasis onbackground, basicvalues
Less emphasis onlegal paperwork
Focus on personalreputation
Low Context Messages are explicit and
specific
Words carry all information Reliance on legal
paperwork Focus on non-personal
documentation of credibility
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High & Low Context Culture Countries: SomeExamples
China Korea Japan Vietnam Arabia Greece India Hispanic
Central & SouthAmerican countries
Italy England USA Switzerland Germany Scandinavian Countries
Denmark Norway Sweden
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High- and Low-Context CulturesFactor/Dimension High Context Low Context
Lawyers Less Important Very Important A persons word Is his/her bond Not reliable get it in
writing
Responsibility for
Organizational error
Taken by highestlevel
Pushed to the lowest level
Space People breathe oneach other
Private space maintained
Time Polychronic Monochronic
CompetitiveBidding
Infrequent Common
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Business Practices- High & Low Context Cultures:Examples
India Business conducted at leisurely pace
When invited to dinner, one should accept and pass the food with the right hand onlyExpect to be asked many personal questions- which Indians see as a sign of politenessIndian avoid discussing political issues with business contacts
USA Americans dislike the practice of developing personal relationships with business associatesas time is money for them.
Business comes first and friendship or pleasure comes later, if at all
Greece Greeks are famous for never discussing business without a cup of coffeeBuilding personal rapport is importantBuilding trust is the major factor in business for them
UK The British are very civil and reservedDo not admire overt ambition or aggressiveness and are often offended by hard sell tacticsGood negotiators but do not have high regard for bargaining
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Hofstedes Cultural Typology Study on cultures Comparison of cultures
of different nations
Five dimensions First three: expected
social behavior Fourth: mans search for
truth Fifth: reflects the
importance of time
1) Power distance2) Individualism
3) Masculinity
4) Uncertainty Avoidance
5) Long Term Orientation
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Power Distance Index (PDI)
The extent to which the less powerful membersof organizations and institutions (like the family)accept and expect that power is distributedunequally.
It suggests that a society's level of inequality isendorsed by the followers as much as by the
leaders. all societies are unequal, but some are moreunequal than others'.
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Individualism (IDV)
on the one side versusits opposite,
Individualist Cultures Each member of society
is primarily concernedwith his/her owninterest and those of
Immediate family3 United Sates & Europe
Collectivist Cultures All of societys members
integrated into cohesivein groups
Japan & Other AsianCountries
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Masculinity (MAS)
Describes a societyin which men areexpected to be
assertive.Competitive andconcerned withmaterial success
Femininity Women fulfill the role of a
nurturer, concerned with issuessuch as the welfare of children
Japan Austria Describes a society in which
social roles of men & womenoverlap with neither genderexhibiting overly ambitious orcompetitive behavior
Spain Taiwan, Holland
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Uncertainty Avoidance Index (UAI) deals with a society's tolerance for uncertainty and ambiguity; it
ultimately refers to man's search for Truth . indicates to what extent a culture programs its members to feel
either uncomfortable or comfortable in unstructured situations.
Unstructured situations are novel, unknown, surprising,different from usual.
Uncertainty avoiding cultures try to minimize the possibility of such situations by
strict laws and rules, safety and security measures, and on the philosophical and religious level by a belief in absolute Truth;
'there can only be one Truth and we have it'.
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Long-Term Orientation (LTO) versus short-termorientation:
Societys search for virtue Assesses sense of immediacy within a culture, where
gratification should be immediate /deferred
Include:1. Persistence (Perseverance )2. Ordering relationships- presence of societal
hierarchies
3. Thrift : High saving rates4. Sense of shame : leads to sensitivity in social contacts
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Hofstede Dimensions- World Average
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Hofstede Diemensions- India
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Hofstede Diemensions-USA
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Religion in India
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