Chapter-4

Cultural dynamics in Assessing Global Markets

PP Presentation by
Dr. Shaikh Rafiqul Islam
Ph.D(Malaysia), MBA(Australia), [Link](DU)
Professor
Department of Marketing
Jagannath University
 Culture
▪Culture deals with a group’s design for living
▪It is the human-made part of human environment
▪Itis ‘the sum total of knowledge, beliefs, art, morals,
laws, customs, and any other capabilities and habits
acquired by humans as members of society’
▪Marketing mix must be culturally acceptable
▪Markets are the interaction of a marketer’s efforts,
economic conditions, & all other elements of the culture
▪Marketers act as change agents due to cultural change

Professor [Link], Department of Marketing, JnU 2

 Culture’s Pervasive Impact
▪ It affects every part of our lives, every day, from birth to
death. It even affects how we sleep.
-For example, Japanese children often sleep with their parents

▪ Culture is pervasive in all marketing and the marketer’s

efforts actually become a part of the fabric of culture
▪ It is important to learn to appreciate the intricacies of
cultures different from their own if they are to be effective
in foreign markets

Professor [Link], Department of Marketing, JnU 3

Definitions and Origins of Culture
▪ Dutch mgt. professor Hofstede refers to culture as the
- ‘Software of the mind’ and argues that it provides a guide
for humans on how to think and behave and acts as a a
problem solving tool
▪ James Hodgson, former U.S. ambassador to Japan,
[
describes culture as a “thicket”
▪ ‘It is the sum of the values, rituals, symbols, beliefs, &
thought processes that are learned, shared by a group of
people, & transmitted from generation to generation’
▪ Culture resides with an individual’s mind

Professor [Link], Department of Marketing, JnU 4

 Origins , Elements, and Consequences
of Culture
Origins
Geography
( climate, topography, flora, fauna, microbiology)

History

Adaptation
Technology & Political economy

Social institutions
( family, religion, school, media, government, corporations)

Socialization/ Peers Imitation Elements of Culture

acculturation ( values, rituals, symbols, beliefs, thought processes)

Consequences

Application Consumption decisions

Management Style
& behavior
 Geography
▪ Includes climate, topography, flora, fauna, &
microbiology
▪ Has impact on history, economics, consumer behavior
-Geography determines what jacket a buyer will buy
▪ Findings on geography:
-‘Historically innovations spread faster from east-to-west
than north-to-south’
-‘Strong correlation exists between the latitude (climate) and
the per capita GDP of countries’

Professor [Link], Department of Marketing, JnU 6

 History

▪ The impact of history can be seen reflected in

technology, social institutions, cultural values, and
consumer behavior
-For example, The military conflicts in the Middle East in
2003 caused new cola brands to be developed, including
Mecca Cola, Muslim Up, & Arab Cola

Professor [Link], Department of Marketing, JnU 7

 The Political economy
▪ For most of the 20th century 3 approaches to governance
competed for world dominance:
-Fascism (fell in 1945)
-Communism (crumbled in 1990s)
-Democracy/ free enterprise

▪ Appreciate the influence of the political economy on

social institutions & cultural values & ways of thinking

Professor [Link], Department of Marketing, JnU 8

 Technology

▪ Includes the techniques used in the creation of material

goods; it is the technological know-how possessed by the
people of a society

▪ Has the greatest impact on institutions & cultural values

-For example, Birth control techniques have had a huge effect
on life for everyone
- Smart phone technology has changed the ritual of greetings.

Professor [Link], Department of Marketing, JnU 9

 Social Institutions
▪ Social institution include:
-Family -Media
-Religion -Government
-School -Corporations

▪ Affect the ways in which people:

-Relate to one another
-Organize activities to live in harmony with one another
-Teach acceptable behavior to succeeding generations
-Govern themselves

Professor [Link], Department of Marketing, JnU 10

 Elements of Culture
▪ Five elements of culture:
-Values
-Rituals
-Symbols
-Beliefs
-Thought

▪ Marketers must design 4 Ps with due

consideration of each of the five elements

Professor [Link], Department of Marketing, JnU 11

 Elements of Culture- Values
▪ Fundamental differences in cultural values exist
among countries
▪ Hofstede studied over 90,000 people in 66 countries;
he found that cultures differed along 4 primary
dimensions:
-Individualism/Collectivism Index (IDV)
-Power Distance Index (PDI)
-Uncertainty Avoidance Index (UAI)
-Masculinity/Femininity Index (MAS)

Professor [Link], Department of Marketing, JnU 12

 Hofstede’s 4-Factor Model:
The Individualism/Collective Index (IDV)

▪ Focuses on self-orientations or self interest

▪ Emphasize ‘I’ mentality and tend to reward & accept
individual initiative
▪ Low in IDV reflect ‘we’ mentality
▪ Ties between individuals are loose

▪ Collectivism pertains to societies in which people from

birth onward are integrated into strong , cohesive groups

Professor [Link], Department of Marketing, JnU 13

 Hofstede’s 4-Factor Model:
The Power Distance Index (PDI)

▪ Focuses on authority orientations

▪ Measures the tolerance of social inequality
▪ Cultures with high PDA scores tend to be hierarchical
▪ Cultures with low PDA scores tend to value equality
▪ High PDA scores tend to indicate a perception of
difference between superior & subordinate & a belief
that those who hold power are entitled to privileges
▪ A low score reflects more egalitarian views

Professor [Link], Department of Marketing, JnU 14

 Hofstede’s 4-Factor Model:
The Uncertainty Avoidance Index (UAI)

▪ Focuses on risk orientations

▪ Measures the tolerance of uncertainty & ambiguity

among members of a society
▪ High UAI scores are highly intolerant of ambiguity,
distrustful of new ideas, and concern for security
▪ Low UAI scores are associated with a low level of
anxiety & stress, a tolerance of deviance & dissent, and
a willingness to take risks

Professor [Link], Department of Marketing, JnU 15

 Hofstede’s 4-Factor Model:
The Masculinity/Femininity Index (MAS)

▪ Focuses on assertiveness an achievement

▪ Less useful in consumer behavior and business

▪ High MAS scores are highly male dominated culture
▪ Low MAS scores are less male dominated culture

Professor [Link], Department of Marketing, JnU 16

 Elements of Culture- Rituals
▪ Patterns of behavior & interaction that are learned &
repeated
▪ Associated with major events in life
-For example, marriage ceremonies & funerals, dinner at a
restaurant or a visit to a department store
▪ Coordinate everyday interactions and special occasions
▪ Let people know what to expect

Professor [Link], Department of Marketing, JnU 17

 Elements of Culture- Symbols

▪ Edward T. Hall says ‘culture is communication’

-He talks about the ‘languages’ of time, space, things,
friendships and agreement’
▪ Learning to correctly interpret the symbols is a key part
of socialization
▪ Learning starts immediately after birth

Professor [Link], Department of Marketing, JnU 18

 Elements of Culture- Symbols: Language
▪ Language itself is a social institution with political
influence (Canada)
▪ The number of spoken languages and cultural diversity are
decreasing
▪ Marketers must achieve expert communication
▪ Be concerned less with obvious differences between
languages & more with the idiomatic meanings expressed
-For example, Tambo means a ‘roadside inn’ in Bolivia, Colombia,
Ecuador, & Peru ‘a diary firm’ in Argentina and a ‘brothel’ in
Uruguay and in Chile

Professor [Link], Department of Marketing, JnU 19

 Elements of Culture- Symbols:
Aesthetics As Symbols

▪ Components are the arts, folklore, music, drama,& dance

▪ A picture is worth a thousand words
▪ Responses to images, myths, & metaphors are based on
consumers’ personal & national identities & relationships
within their culture
-For example, think about the subtle earth tones of the typical Japanese
restaurant compared with the bright reds & yellows in the décor of ethnic
Chinese restaurants

Professor [Link], Department of Marketing, JnU 20

 Elements of Culture- Beliefs

▪ Most beliefs come from religious training

▪ Relationship between superstition and religion is not at all
clear
-For example, one explanation of the origin of Western aversion to the
number 13 has to do with Jesus sitting with his 12 disciples at the Last
Supper
▪ Many of our beliefs are secular in nature

Professor [Link], Department of Marketing, JnU 21

 Elements of Culture- Beliefs
▪ Superstition plays a large role in a society’s belief system in
some parts of the world
-For example, in parts of Asia, ghosts, fortune telling, palmistry, blood
types, head-bump reading, phases of the moon, faith healers, demons,
& soothsayers can all be integral elements of society

▪ One person’s belief are another person’s funny story

▪ Consider the importance of myths/ beliefs/ superstitions/

other cultural beliefs

Professor [Link], Department of Marketing, JnU 22

 Elements of Culture- Thought Processes

▪ Thinking process vary across cultures

-For example, Asians tend to see the whole picture & can report details
about the background & foreground. Westerners alternatively focus on
the foreground & can provide great details about central figures, but
see almost nothing in the background

Each of the cultural elements must be evaluated in light of

how they might affect a proposed marketing program

Professor [Link], Department of Marketing, JnU 23

 Cultural Knowledge- Factual Knowledge

▪ Factual Knowledge is obvious and must be learned

▪ Different meaning of colors, different tastes, and other
traits in a culture are facts that a marketer can anticipate,
study, and absorb
▪ It has a meaning as straightforward fact about a culture
-For example, in Mexico 98% people are Roman Catholic, but
equally important is what it means to be a Catholic within
Mexican culture vs being Catholic in Spain or Italy

Professor [Link], Department of Marketing, JnU 24

 Cultural Knowledge- Interpretive Knowledge

▪ It is an ability to understand and appreciate the

nuances of different cultural traits and patterns
-For example, the meaning of time, attitudes and the
understanding of one’s role in society, and the meaning of
life can differ considerably from culture to culture and
may require more than factual knowledge

Professor [Link], Department of Marketing, JnU 25

Cultural Knowledge- Interpretive Knowledge

▪ It is something deeper and needs insight, like feeling

▪ It is kind of knowledge that depends on past experience
for interpretation
▪ It is prone to misinterpretation if SRC is used
▪ Easy to learn living with people in other cultures

Professor [Link], Department of Marketing, JnU 26

 Cultural Knowledge-
Cultural Sensitivity and Tolerance

▪ It means being attuned to the nuances of culture so that a

new culture can be viewed and evaluated objectively
▪ Cultural empathy must be carefully cultivated
▪ Nothing is right or wrong, better or worse; they are simply
different
▪ The more exotic the situation, the more tolerant, flexible and
sensitive be
▪ Know how cultures change or accept or reject ideas

Professor [Link], Department of Marketing, JnU 27

 Cultural Change

▪ Culture is dynamic in nature- a living process

▪ That cultural change is constant is paradoxical because it
is conservative and resists to change
▪ Cultural change:
-By war, like the change in Japan after World War II
-By natural disaster
-By seeking ways to solve the problems created by change in envt.
-By accident
-By borrowing
-By acculturation

Professor [Link], Department of Marketing, JnU 28

 Cultural Change- 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
▪ Cultural borrowing is common to all cultures
▪ Cultural diversity is imitated from other cultures
▪ Behaviors borrowed from other cultures are combined in
a unique manner that becomes a typical culture

Professor [Link], Department of Marketing, JnU 29

 Cultural Change- Similarities: An Illusion
▪ Similar-but-different aspect of culture creates illusions of
similarity that do not exist
-For example, both British & Americans speak English. An
American when speaking of a bathroom, generally refers to a toilet,
whereas in England a bath room is a place to take a tub bath
▪ In economically unified Europe, there are variations in needs
▪ There exists subcultures
▪ Never rely on often-used axiom

Professor [Link], Department of Marketing, JnU 30

 Cultural Change- Resistance to Change

▪ Culture change gradually

▪ Change does not occur without some resistance
▪ The degree of resistance to new patterns varies
-Some are accepted completely and quickly and some are not
▪ Hofsted’s data show that:
-acceptance of innovation varies across cultures
-innovation is associated with higher IDV, lower PDI and UAI

Professor [Link], Department of Marketing, JnU 31

 Cultural Change- Resistance to Change

▪ Acceptance of innovation depends on:

-the degree of interest in the subject
-how drastically the new will change the old
▪ Resistance can be overcome
▪ Feeling the need to change helps overcome resistance
[

▪ Planned change may be required

Professor [Link], Department of Marketing, JnU 32

 Cultural Change: Planned & Unplanned
▪ Planned change needs to:
-determine which cultural factors conflict with an innovation
-change those factors from obstacles into stimulants for change
▪ Two options when introducing any innovation:
-Wait -Cause change
▪ The latter involves introducing an idea and deliberately
setting about to overcome resistance
▪ Not all marketing efforts require change to be accepted
▪ Cultural congruence strategy can help overcome resistance

Professor [Link], Department of Marketing, JnU 33

Cultural Change: Planned & Unplanned

▪ Unplanned change is to introduce a product and hope

for the best
-For example, the Japanese diet has changed since the
introduction of milk & bread soon after World War II
▪ Marketing strategy is judged culturally in terms of
acceptance, resistance, or rejection
▪ How marketing efforts interact with a culture
determines the degree of success or failure

Professor [Link], Department of Marketing, JnU 34

Cultural Change- Consequences of Innovation

▪ When product diffusion (acceptance) occurs, a process of

social change may also occur

▪ Diffusion efforts inadvertently bring about changes

▪ Consequences may be functional or dysfunctional,
depending on whether the effects on the social system
are desirable or undesirable

Professor [Link], Department of Marketing, JnU 35

 Cultural Change- Consequences of Innovation

▪ Functional consequences are related to positive effect

▪ Dysfunctional consequences are related to negative effect
-For example, the introduction of a processed feeding formula into
the diet of babies in Nicaragua and other underdeveloped countries-
protein deficiency and breast-feeding to bottle feeding

▪ Marketer’s concern is with perceived functional consequences

Professor [Link], Department of Marketing, JnU 36