Chapter 3
The Cultural Dynamics in Assessing Global Markets
Definition 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)
Origins of Culture (What determines Culture Differences):
• Geography
• Geography affects culture by playing a large role in the way that people live.
• Locations with rich soil are more likely to produce agricultural traditions
• People who live next to large bodies of water will rely on fish more than
someone living in a drier climate.
• History
• The impact of specific historical events can be seen reflected in cultural
values, and even consumer behavior.
• the military conflicts in the Middle East in 2003 bred new cola brands as
alternatives to Coca-Cola—Mecca Cola, Muslim Up, Arab Cola, and
ColaTurka
• The Political Economy
• appreciate the influence of the political economy on social institutions and
cultural values and ways of thinking
• Technology
• air conditioning, televisions, computers, mobile phones, and the Internet have
changed cultures
• birth control techniques, have had a huge effect on everyday life for people
around the world, as it has freed women to have a career and social life
• Social Institutions
• This includes family, religion, school, the media, government , and
corporations
• They affect the ways in which people relate to one another, organize their
activities to live in harmony and govern themselves.
• Promotion campaigns aim differently at cultures who tend to cherish families
more than others.
Culture’s Universal Impact:
▪ Culture influences every part of our lives
▪ Culture impacts many business and opens opportunities:
o Birthrates have implications for sellers of diapers, toys, schools, and colleges
o Consumption of different types of food influences culture
▪ Chocolate by Swiss
▪ Seafood by Japanese
▪ Beef by British
▪ Wines by France and Italy
o Even diseases are influenced by culture
▪ stomach cancer in Japan, and lung cancer in Spain
Cultural Values:
Hofstede, who studied over 90,000 people in 66 countries, found that cultures differed along
4 primary dimensions:
1. Individualism/Collective Index (IDV): focuses on self-orientation
▪ The Individualism/Collective Index refers to the preference for behavior that
promotes one’s self-interest
▪ High IDV cultures reflect an “I” mentality and tend to reward and accept
individual initiative
▪ Low IDV cultures reflect a “we” mentality and generally suppress the
individual to the group
▪ Collectivism pertains to societies in which people from birth onward are
integrated into strong, cohesive groups, which protect them in exchange for
unquestioning loyalty
2. Power Distance Index (PDI): focuses on authority orientation
▪ The Power Distance Index measures power inequality between superiors and
subordinates within a social system
▪ Cultures with high PDI scores tend to be hierarchical and value power and
social status
▪ High PDI cultures the those who hold power are entitled to privileges
▪ Cultures with low PDI scores value equality and reflect democratic views
3. Uncertainty Avoidance Index (UAI): focuses on risk orientation
▪ The Uncertainty Avoidance Index measures the tolerance of uncertainty and
ambiguity among members of a society
▪ 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
▪ Low UAI cultures are associated with a low level of anxiety and stress, a
tolerance of abnormality and differences, and a willingness to take risks
4. Masculinity/Femininity Index (MAS): focuses on assertiveness and achievement
▪ “masculinity” is defined as a societal preference for achievement, heroism,
assertiveness and material rewards for success.
▪ By contrast, “femininity” is defined as a preference for co-operation, modesty,
caring for the weak and quality of life.
▪ Masculine countries tend to have distinct gender roles and prize material
achievements and wealth-building
▪ Feminine countries tend to have more gender roles and value quality of life
Egypt was one of seven countries Hofstede included in his influential model of cultural
dimensions.
Power Distance High 80
Uncertainty Avoidance High 68
Masculinity High 52
Individualism Low 38
How this reflects in the international market?
▪ If you want to market cars in a country where uncertainty avoidance is high, then
playing up the safety aspects is a good idea.
▪ If you want to advertise mobile phones, then in China you might emphasize the
collective experience whereas in the USA you might focus on how an individual uses
their phone to save time and money.
▪ In countries with low masculinity, highly gendered products and marketing messages
may be frowned up and taking a gender-neutral approach to your marketing would be
a good idea.
Cultural Sensitivity and Tolerance:
▪ Successful foreign marketing begins with cultural sensitivity (=being familiar with
distinctions) to avoid resistance to change.
▪ A new culture can be viewed objectively, evaluated, and appreciated.
▪ Cultural sensitivity can be developed by acquiring general knowledge about a culture,
as well as in-depth meanings of cultural facts including:
o Different meanings of colors, and different tastes
o General facts about a culture
o The meaning of time, and attitudes toward people
1. Colors:
USA China Middle Japan France UK India Belgium
East
Red Danger Good luck Danger Happiness Middle- Power purity
Love celebration caution Good luck class authorit
Passion Happiness (bourgeo y
Rise in Rise in is)
stock stock prices
prices
Purple Royalty Royalty Wealth Wealth Freedom Royalty Sorrow Magic
Peace Unhappiness Mystery
royalty
Pink Baby happiness girly Youth celebrations Baby
girls happiness boys
Blue Baby Optimism spirituality Purity nobility Trust religious Baby
boys Growth calmness girls
Safety spirituality
trust
2. Rituals:
▪ Rituals are patterns of behavior and interaction that are learned and repeated.
▪ The most obvious ones are associated with major events in life, like marriage
ceremonies and funerals
▪ Every Muslim is enjoined to make the hajj, or pilgrimage to Mecca, once in his or her
lifetime if physically able.
▪ Life is also filled with little rituals, such as dinner at a restaurant or a visit to a
department store or even grooming before heading off to work or class in the
morning.
▪ In restaurants in Madrid, dessert may precede the entrée, but dinner often starts at
about midnight, and the entire process can be a three-hour affair.
3. Symbols:
▪ Language: Recent studies indicate that a new concept, linguistic distance , is proving
useful to marketing researchers in market segmentation and strategic entry decisions.
As English spreads around the world via school systems and the Internet, cultural
values of individualism and egalitarianism will spread with it.
▪ Aesthetics: arts, folklore, music, drama, dance, dress, and cosmetics. Customers
everywhere respond to images, myths, and metaphors that help them define their
personal and national identities and relationships within a context of culture and
product benefits.
▪ Beliefs: religious beliefs, myths, beliefs about meanings of numbers (13 = unluck,
pessimism / 8 = prosperity in China), and others
Cultural Borrowing:
Cultural borrowing is a responsible effort to learn from others’ cultural ways in the
quest for better solutions to a society’s particular problems.
Some cultures grow closer together and some further apart with contact.
Example: An Egyptian citizen begins his day with a breakfast consisting of an orange
from the eastern Mediterranean, a cup of coffee from Brazil, a waffle made by a
Scandinavian technique. Over these she pours maple syrup, invented by the eastern
U.S. As a side dish, he may have the eggs of a species of bird domesticated in China
and cold cuts that have been salted and smoked by a process developed in northern
Europe. While eating, he reads the news of the day on his mobile phone that is made
in Japan, while the German brand TV is running in the background
Actually this citizen is correct to assume that he is 100 % Egyptian, because each of
the borrowed cultural facets has been adapted to fit his needs, molded into uniquely
Egyptian habits, foods, and customs.
Example of giving gifts in different cultures:
Japan Don’t open gifts unless asked
Avoid ribbons and bows in gift wrapping
Offer gifts with both hands
Europe Avoid red roses and white flowers
Avoid number 13
Don’t spend too much on a gift (bribery)
Arabs Don’t gift someone on the first time you meet (bribery)
Latin Only give gifts when there is a somewhat personal relationship
America Gifts must be given in social gatherings, not business
Avoid black and purple
China Give gifts with both hands
Present the gift privately
Russia Russians enjoy gifts, like chocolate or wine
In case of flowers or something with quantity, avoid even numbers, they are for
funerals
USA Showy gifts can cause huge problems