Global Marketing

Ninth Edition

Chapter 4
Social and Cultural
Environments

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Learning Objectives (1 of 2)
4.1 Define culture and identify the various expressions and
manifestations of culture that can impact marketing
strategies.
4.2 Compare and contrast the key aspects of high- and
low-context cultures.
4.3 Identify and briefly explain the major dimensions of
Hofstede’s social values typology.

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Learning Objectives (2 of 2)
4.4 Explain how the self-reference criterion can affect
decision making at global companies and provide a step-
by-step example of a company adapting to conditions in a
global market.
4.5 Analyze the components of diffusion theory and its
applicability to global marketing.
4.6 Explain the marketing implications of social and
cultural environments around the globe.

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Task of Global Marketers
• Study and understand the cultures of countries in which
they will be doing business
• Understand how an unconscious reference to their own
cultural values, or self-reference criterion, may influence
their perception of the market
• Incorporate this understanding into the marketing
planning process

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Society, Culture and Global Consumer
Culture (1 of 2)
• Culture–ways of living, built up by a group of human
beings, that are transmitted from one generation to
another
• Culture has both conscious and unconscious values,
ideas, attitudes, and symbols
• Culture is acted out in social institutions
• These institutions reinforce cultural norms
• Culture is both physical (clothing and tools) and
nonphysical (religion, attitudes, beliefs, and values)

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Society, Culture and Global Consumer
Culture (2 of 2)
• “Culture is the collective programming of the mind that
distinguishes the members of one category of people
from those of another.” ~Geert Hofstede
• A nation, an ethnic group, a gender group, an
organization, or a family may be considered as a
category.

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Social Institutions
• Family
• Education
• Religion
• Government
• Business
These institutions function to reinforce cultural norms

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Material and Nonmaterial Culture
• Physical Culture • Abstract Culture
– Clothing – Religion
– Tools – Perceptions
– Decorative art – Attitudes
– Body adornment – Beliefs
– Homes – Values

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Society, Culture, and Global Consumer
Culture
• Global consumer cultures are emerging
– Persons who share meaningful sets of consumption-
related symbols
– Pub culture, coffee culture, fast-food culture, credit
card culture, soccer culture
• Primarily the product of a technologically interconnected
world
– Internet
– Satellite TV

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 Attitudes, Beliefs, and Values
• Attitude
– learned tendency to respond in a consistent way to a given
object or entity
• Belief
– an organized pattern of knowledge that an individual holds to be
true about the world
• Value
– enduring belief or feeling that a specific mode of conduct is
personally or socially preferable to another mode of conduct
• Subcultures
– smaller groups of people with their own shared attitudes, beliefs,
& values (ex. Vegetarians)

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Religion
• The world’s major religions include Buddhism,
Christianity, Hinduism, Islam, and Judaism and are an
important source of beliefs, attitudes, and values.
• Religious tenets, practices, holidays, and history impact
global marketing activities.

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Aesthetics

• The sense of what is • Visual

beautiful and what is not – embodied in the color
beautiful or shape of a
• What represents good product, label, or
taste as opposed to package
tastelessness or even • Styles
obscenity – various degrees of
complexity, for
example, are
perceived differently
around the world

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Aesthetics and Color (some examples)
• Red
– associated with blood, wine-making, activity, heat, and vibrancy in many
countries but is poorly received in some African countries.
• Blue
– since the pigment was rare, ancient Egyptians, Chinese, Mayans
associated it with royalty and divinity. Half of interviewees state blue is
the favorite color.
• White
– identified with purity and cleanliness in the West, with death in parts of
Asia.
• Gray
– means inexpensive in Japan and China, but high quality and expensive
in the U.S.

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 Music
• Found in all cultures
• Rhythm is universal
• Styles are associated with
countries or regions: bossa
nova & Argentina, salsa & Cuba,
reggae & Jamaica, blues, rap,
rock, country & U.S.
• Understand what style is
appropriate in advertising
– varies by culture and
government regulations
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Dietary Preferences (1 of 2)

• Domino’s Pizza pulled out of Italy because its products

were seen as “too American” with bold tomato sauce and
heavy toppings.
• Domino’s is India’s largest foreign fast-food chain with
over 700 stores. Its success is attributed to localized
toppings.
• Dunkin’ Donuts morning business in India was slow.
Indians eat breakfast at home. Business took off after it
introduced the Original Tough Guy Chicken Burger for
later time of day.

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Dietary Preferences (2 of 2)

• Although some food preferences are deeply rooted in

culture, global dietary preferences are converging.
– Pasta, pizza, sushi, other ethnic foods

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Language and Communication

• Semiotics
– the study of signs and their meanings
– includes both spoken and unspoken language
• Unspoken language includes gestures, touching, body
language
• Spoken language has four areas:
– Syntax – word order in sentences
– Semantics – deals with the meaning of words
– Phonology – system of sound patterns
– Morphology – word formation

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Pronunciation Problems
• “Colgate” in Spanish means “go hang yourself”
• IKEA hired linguists to rename products in
Thailand because they had sexual connotations
• Whirlpool spent large sums on advertising only to
find out that French, Italian & German consumers
could not pronounce the brand name
• Diesel brand name was chosen because it is
pronounced the same in all languages

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Language and Communication (3 of 3)

English Around the Globe Nonverbal Communication

• More people speak • In the Middle East,
English as a 2nd language Westerners should not show
than there are native the soles of shoes or pass
speakers documents with the left hand
• 85% of EU teens study • In Japan, bowing has many
English nuances
• Sony (Japan) & Nokia • Asians place greater value
(Finland) require upper on nonverbal communication
managers to pass an than Westerners
English proficiency test

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Marketing’s Impact on Culture
• Universal aspects of the cultural environment represent
opportunities to standardize elements of a marketing
program
– Eg. convenience foods, disposable products, popular music,
movies, communication devices

• Increasing travel and improved communications have

contributed to a convergence of tastes and
preferences in several product categories

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“McDonaldization” of Culture (1 of 2)
• Many people resent the breaking down of cultural barriers
that occurs when global firms expand into new markets.
• “Eating is at the heart of most cultures and for many it is
something on which much time, attention and money are
lavished. In attempting to alter the way people eat,
McDonaldization poses a profound threat to the entire
cultural complex of many societies.”
– Sociologist George Ritzer

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McDonaldization of Culture (2 of 2)

The Slow Food Movement

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High-and Low-Context Cultures

• High Context • Low Context

– Emphasis on – Messages are explicit
background, basic and specific
values, societal status – Words carry all
– Information resides in information
context – Reliance on legal
– Less emphasis on paperwork
legal paperwork – Focus on non-personal
– Focus on personal documentation of
reputation credibility (eg. credit
scores)
Saudi Arabia, Japan
Switzerland, U.S., Germany
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Table 4-1: High-and Low-Context Cultures
Factors or Dimensions High Context Low Context

Lawyers Less important Very important

A person’s word Is his or her bond Is not to be relied upon; “get it in

writing”
Responsibility for Taken by highest level Pushed to lowest level
organizational error
Space People breathe on each other People maintain a bubble of
private space and resent
intrusions
Time Polychromic-everything in life must Monochronic-time is money;
be dealt with in terms of its own linear-one thing at a time
time
Negotiations Are lengthy- a major purpose is to Proceed quickly
allow the parties to get to know
each other
Competitive bidding Infrequent Common

Country or regional examples Japan, Middle East United States, Northern Europe

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Hofstede’s Cultural Typology
• Individualism/Collectivism
• Power Distance
• Uncertainty Avoidance
• Achievement/Nurturing
• Long-term Orientation

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Hofstede’s Five Dimensions of National
Culture (1 of 2)

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Hofstede’s Five Dimensions of National
Culture (2 of 2)

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Hofstede’s Cultural Typology

• Hofstede’s work provides • In Japan, Brazil, and India, building a

relationship with a potential business
marketers insights that can
partner takes precedence over
guide them in a range of transacting the deal. People from
activities, including product cultures that emphasize the short
development, interacting with term must adapt to the slower pace
of business in some countries.
joint venture partners, and
conducting sales meetings. •  

•   • The Japanese concept of gaman

(persistence) provides insight into the
• For example, understanding willingness of Japanese corporations
to pursue research and development
the time orientation of one’s projects for which the odds of short-
native culture compared to term success appear low
that of others is crucial.

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Hofstede’s Cultural Typology

• Throughout much of Asia, the • Using Hofstede’s

collectivist orientation is framework can provide
dominant.
useful insights into the
• The U.S. is a highly creation of culturally
individualist culture. appropriate consumer
• In highly individualistic brand images.
cultures, ads often feature
one person; in collectivist
countries, ads feature groups.
•  

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Self-Reference Criterion and Perception
• Unconscious reference to one’s own cultural values;
creates cultural myopia
• How to Reduce Cultural Myopia:
1. Define the problem or goal in terms of home country
cultural traits
2. Define the problem in terms of host-country cultural
traits; make no value judgments
3. Isolate the SRC influence and examine it
4. Redefine the problem without the SRC influence and
solve for the host country situation

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Disney in France & Tokyo & the Self-
Reference Criterion (1 of 2)
1. Japan: Unlimited demand for American culture. Tokyo a
huge success. No alcohol in parks.
2. France: Europeans, especially the French, are sensitive
about American cultural imperialism. Disney characters
are based on European folk tales. Real castles here!
3. Compare Steps 1 & 2. American & Japanese conditions
are different. Modify design for European success.
4. Redesign the theme park in keeping with European
cultural norms; allow the French to put their identify on
the park.

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Disney in France & Tokyo & the Self-
Reference Criterion (2 of 2)

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Diffusion Theory: 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

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Diffusion Theory: Characteristics of
Innovations (1 of 2)
• Innovation is something new;
• Five factors that affect the rate at which innovations are
adopted include:
– Relative advantage : How the product functions
compared with existing ones
– Compatibility: The extent to which a product is
consistent with existing values and past experiences
of adopters
– Complexity: The degree to which an innovation or
new product is difficult to understand and use.

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Diffusion Theory: Characteristics of
Innovations (2 of 2)
– Divisibility: The ability of a product to be tried and
used on a limited basis

– Communicability: The degree to which benefits of an

innovation or the value of a product may be
communicated to a potential market

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Diffusion Theory: Adopter Categories

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Asian Hierarchy

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Marketing Implications of Social and
Cultural Environments
• Cultural factors must be considered when marketing
consumer and industrial products
• Environmental sensitivity reflects the extent to which
products must be adapted to the culture-specific needs
of different national markets

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Environmental Sensitivity (1 of 2)

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Environmental Sensitivity (2 of 2)
• Independent of social class and income, culture is a
significant influence on consumption and purchasing
• Food is the most culturally-sensitive category of
consumer goods
– Bottled water is a convenient alternative in countries
where well or tap water may be contaminated.
Bottled water consumption has tripled in India,
doubled in China in the last five years
▪ Starbucks overcame cultural barriers in Great
Britain and today has over 800 locations

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Copyright

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