Podcast
Questions and Answers
Which cultures tend to concentrate on time management according to the content?
Which cultures tend to concentrate on time management according to the content?
What does M-Time stand for?
What does M-Time stand for?
Monochronic Time
High-context cultures emphasize holding on to schedules.
High-context cultures emphasize holding on to schedules.
False
What is the primary effect of a company’s marketing orientation on its profits?
What is the primary effect of a company’s marketing orientation on its profits?
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The definition of corruption is consistent worldwide.
The definition of corruption is consistent worldwide.
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What does Transparency International aim to do?
What does Transparency International aim to do?
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What type of payment is referred to as 'lubrication'?
What type of payment is referred to as 'lubrication'?
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What does the Foreign Corrupt Practices Act prohibit?
What does the Foreign Corrupt Practices Act prohibit?
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Match the components of a product with their descriptions:
Match the components of a product with their descriptions:
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Products are often classified as _____, whereas services are intangible.
Products are often classified as _____, whereas services are intangible.
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Which of the following characteristics is NOT unique to services?
Which of the following characteristics is NOT unique to services?
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What does 'country-of-origin effect' (COE) influence?
What does 'country-of-origin effect' (COE) influence?
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More knowledgeable consumers are less sensitive to a product's country-of-origin effect.
More knowledgeable consumers are less sensitive to a product's country-of-origin effect.
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Study Notes
Time Management
- Anglo cultures prioritize time management more than Latin or Asian cultures.
- Edward T-Hall distinguishes two time systems:
- Monochronic: Focus on one task at a time, prevalent in low-context cultures (e.g., North Americans, Swiss, Germans).
- Polychronic: Multiple tasks simultaneously, prioritize human interaction over schedules, common in high-context cultures.
Marketing Orientation
- A company's marketing orientation is positively correlated with profits.
Business Ethics
- The understanding of corruption varies globally.
- In communist countries, profits can be perceived as corruption.
Bribery and Extortion
- Transparency International works against corruption through international and national efforts.
- The Bribe Payers Index ranks company's tendency to pay bribes internationally.
- Higher scores indicate lower levels of bribery.
- Japan, despite its relationship-based culture, has a decreasing score.
- The difference between bribery and extortion relies on whether it’s an offer or a demand for payment.
Lubrication and Subornation
- Lubrication: Small bribes or tips.
- Subornation: Large sums of money, often unaccounted for, to entice an official into illegal acts.
Agents Fees
- Agents may be hired when business persons are unsure of a country's regulations.
- Example: Hiring an attorney to navigate building code variances.
- The Foreign Corrupt Practices Act prohibits American executives and firms from bribing foreign officials.
Ethical Decision Frameworks
- Utilitarian ethics: Focuses on maximizing the "common good" for all stakeholders. Considers who the relevant stakeholders are.
- Rights of the Parties: Emphasizes respecting individual rights.
- Justice or fairness: Ensures fair treatment for all parties.
Culture's Influence on Strategic Thinking
- Cultures with lower uncertainty avoidance (e.g., China) tend to favor entrepreneurship.
Relationship-Oriented vs. Information-Oriented Cultures
- Low-context American culture has low power distance and high individualism.
- High-context Arab cultures have high power distance and low individualism.
Product Adaptation
- Products may need adaptation to meet physical or mandatory requirements of new markets.
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Product homologation: Locally mandated changes in product or service quality.
- Oreo's adaptation in China: Reduced sugar content, smaller packages, and lower price.
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Product homologation: Locally mandated changes in product or service quality.
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Green marketing: Focuses on environmental consequences of marketing activities.
- Example: Lenor's concentrated fabric softener in refillable plastic packaging.
Products and Culture
- A product's value extends beyond its physical form and functionality. Cultural values and customs influence its importance.
- Companies with strong organizational identities may struggle with product adaptation.
Innovative Products and Adaptation
- Innovation: Any new idea perceived by a group of people.
- Diffusion: Product adoption and spread across markets by increasing consumers.
- Factors affecting the rate of diffusion:
- Perceived newness.
- Perceived product attributes.
- Communication methods.
Five Characteristics of Innovation
- Relative Advantage: Perceived benefit over existing products.
- Compatibility: Alignment with acceptable norms, values, and behaviors.
- Complexity: Ease of product use.
- Trialability: Economic or social risk associated with product use.
- Observability: Visibility and communicability of product benefits.
Production of Innovations
- Factors favoring product innovation in industries like pharmaceuticals:
- Patience.
- Focus on key innovations.
- Experience.
Product Component Model
- Separates a product into three components for adaptation in new markets:
- Core component: Physical product, technology, design, and functionalities.
- Packaging Component: Includes style, labeling, branding, quality, price, and packaging.
- Support Services Component: Includes repair, maintenance, instructions, installation, warranties, delivery, and spare parts.
Marketing Consumer Services Globally
- Services differ from products due to four key characteristics:
- Intangibility: Services cannot be physically touched.
- Inseparability: Production and consumption are simultaneous.
- Heterogeneity: Individualized service delivery leads to variations.
- Perishability: Services cannot be stored and must be consumed immediately.
- Importance of visual aids and symbols in low-literacy countries.
Brands in International Markets
- Global brand: Worldwide recognition for a product or service, differentiating it from competitors.
- A successful brand is a crucial asset for any company.
- Brand image: Foundation of a company's strategy and identity.
Global Brands
- Companies with strong brands often seek global brand expansion.
- Perceived "globaness" can increase sales.
National Brands
- Companies may favor using national brands with local appeal, while maintaining a global technology approach.
- Example: Unilever's Omo detergent brand alongside the local brand Pollena 2000.
Country-of-Origin Effect and Global Brands
- Consumers associate product value with a brand's origin.
- Country-of-Origin Effect (COE): Influence of a product's origin on consumer perception.
- Ethnocentrism: National pride can influence attitudes towards foreign products - the "buy local" effect.
- For technical products, the perception of quality might be lower for products from less developed countries.
- Consumers with more product knowledge are more sensitive to COE.
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Description
Explore the intricate relationship between time management, marketing orientation, and global business ethics in this quiz. Learn about cultural differences in time perception and how corruption is understood in various contexts. Test your knowledge on key concepts related to bribery and corporate responsibility.
