Cultural Influences and Values Overview

Culture Definition

• Learned and shared values, rituals, symbols, beliefs, and thought processes
• Passed down through generations
• Resides in individual minds
• Large groups of people can share similar values and views

Influences on Culture

• Geography: Includes climate, topography, and flora. Impacts history, technology, economics, and society.
• History: Specific historical events have significant effects
• Social Institutions: Family, religion, school, the media, government, corporations.

Religion

• Affects values, habits, life outlook and product purchases.

School

• Impacts all aspects of culture
• Literacy rates
• The quality of education systems is a key indicator of economic competitiveness

The Media

• Replaced family time as a major influence on people

Government

• Less influential than other institutions.
• Uses propaganda and laws to influence thinking and behavior.

Corporations

• Spread innovation and ideas.

Global Population Trends

• Estimated population is over 7.5 billion.
• Projection for year 2050: 9.8 billion
• 85% of population growth will occur in underdeveloped regions

Population Aging

• Global life expectancy has increased significantly in the past 50 years.
• UN projects a significant increase in elderly populations by 2050:
  • 65 to 84 years: 3x increase
  • 85 years and over: 6x increase
  • 100 years and over: 16x increase
• This leads to economic strain, with high pension and healthcare costs.

Elements of Culture

• Values: Reflect what a society deems right or wrong
• Rituals: Patterns of behavior and interaction that are learned and repeated
• Symbols: Culture is communication, language itself is a social institution
• Beliefs: Mainly stem from religious teachings, but can vary by culture.
• Thought Processes: How individuals think and problem solve.

Hofstede's Cultural Dimensions:

• Power Distance: The degree to which societies accept power inequalities.
• Individualism vs. Collectivism: The degree to which individuals prioritize themselves vs. the collective.
• Masculinity vs. Femininity: The degree to which societies value assertive and competitive behavior vs. nurturing and caring behavior.
• Uncertainty Avoidance: The extent to which people are comfortable with ambiguity and risk.
• Long-Term Orientation vs. Short-Term Orientation: The degree to which societies value long-term planning and tradition vs. immediate gratification and change.

Marketing and Cultural Values

• Cultural values can predict consumer behavior patterns.
• Example: Consumption patterns for luxury goods
• Consideration of long-term goals vs. immediate gratification
• Importance of word of mouth
• Different levels of cultural sensitivity impacts how much a product needs to adapt to local needs.

Rituals

• Associated with major life events such as marriage, funerals, and graduation.
• Provides marketers with opportunities to connect with consumers on an emotional level.

Symbols

• Aesthetics: Art, folklore, music, drama, dance, dress, and cosmetics can all act as symbols.

Beliefs

• Can be influenced by religion and superstition.
• Shaped by the cultural fabric of a society.
• Influence all manners of behavior.

Resistance to change

• Consumers in different cultures react to change differently
• Companies must be cautious and not expect immediate adoption of new products.
• Should consider the financial and timeline constraints of their marketing.

Environmental Sensitivity

• Reflects how much a product needs to adapt to the culture-specific needs of different markets.

Marketing Implications

• Cultural factors must be considered when marketing consumer and industrial products.