Chapter 3(5) The Role of Culture PDF

Chapter 3(5) The Role of Culture Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part....

Chapter 3(5) The Role of Culture Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1  Learning Objectives (1 of 2) By the end of this chapter, you should be able to: Define and demonstrate the effect of culture’s various dimensions on business. Examine ways in which cultural knowledge can be acquired and individuals and organizations prepared for cross-cultural interaction. Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2  Learning Objectives (2 of 2) Illustrate ways in which cultural risk poses a challenge to the effective conduct of business communications and transactions. Suggest ways in which businesses act as change agents in the diverse cultural environments in which they operate. Evaluate the ways in which training programs assist international managers to develop the international business skills of their employees. Analyze the strategies corporations can take to work with cultural differences in order to expand their businesses internationally. Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3  Culture Defined (1 of 6) Culture: An integrated system of learned behavior patterns that are distinguishing characteristics of the members of any given society It encompasses a wide variety of elements, from materialistic to spiritual Culture is conservative, resists change, and fosters continuity Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4 Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6  Culture Defined (2 of 6) Acculturation: Adjusting and adapting to a specific culture other than one’s own It is one of the keys to success in international operations Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 7 Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8  Culture Defined (3 of 6) High-context culture: Context is as important as what is said Speaker and the listener rely on a common understanding of the context Low-context culture: Most information is contained explicitly in words It is important to understand the difference between the context cultures to avoid misunderstanding of messages and intentions Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9 Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 10 Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11 Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12  Culture Defined (4 of 6) Roles of an international manager Identifying cross-cultural and intracultural differences Isolating potential opportunities and problems The international business entity acts as a change agent by introducing new products or ideas and practices Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13  Culture Defined (5 of 6) The change agent leads to social change in Manner of consumption Type of products consumed Social organization Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14  Culture Defined (6 of 6) The international marketer may be accused of cultural imperialism Cultural imperialism: The changes brought about are dramatic or if culture- specific adaptations are not made in the marketing approach Global marketers and media have made national and regional artists to break into worldwide markets The term “cultural imperialism” is the idea of the culture of one powerful civilization, country, or institution having great unreciprocated influence on that of another, less powerful, entity to a degree that one may speak of a measure of cultural “domination.” Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 15 Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16  Elements of Culture (1 of 18) Cultural universals: expression of the total way of life of a group of people: Body ornament Music Courtship(romance) Personal names Etiquette Status differentiation Family gestures Trade Joking Mealtimes Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17  Body Ornaments Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 18  Exhibit 3.1 - Elements of Culture Language Manners and customs Verbal Material elements Nonverbal Aesthetics Religion Education Values and attitudes Social institutions Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 19  Knowledge Check Activity You are on your first business visit to a South Asian countries. You feel confident about your ability to speak the language (you studied it in school and have taken a refresher course), and you decide to use it. During introductions, you want to break the ice by insisting that everyone call you by your first name. Speculate as to the reaction. Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 20  Knowledge Check Activity: Answer In many cultures, there are formal and informal rules for human interaction as well as address. Quite often rules in each culture do not become evident to an outsider until they realize something is wrong. In the situation described, the person’s request is probably overtly friendly and may even be interpreted as offensive. In many cultures, calling a business associate by the first name or using the second-person singular (for example, the French tu) is unheard of. Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 21  Elements of Culture Back-translation: Translating a foreign language version back to the original language by a different person from the one who made the first translation Nonverbal language Managers must analyze and become fluent in a diversity of culturally derived behavioral displays Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 22  Elements of Culture The 5 key topics that managers need to understand: 1. Time. 2. Space. 3. Material possessions. 4. Friendship patterns. 5. Business agreements. Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 23  Elements of Culture Religion defines the ideals for life, which are reflected in the values and attitudes of societies and individuals Religion provides the basis for transcultural similarities under shared beliefs and behavior Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 24  Elements of Culture The major religions include Christianity: Consists of 2 significant groups, Catholicism and Protestantism. It lays stress on frugality and accumulation of wealth from hard work Islam: Plays a pervasive role in the life of its followers. It supports entrepreneurship and discourages exploitation Hinduism: Family is an important element in Hindu society. The extended family structure has an impact on the purchasing power and consumption of Hindu families Buddhism: Views life as an existence of suffering. It emphasizes spiritual achievement rather than worldly goods Confucianism: Is characterized by a code of conduct that stresses loyalty and relationships Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 25  Elements of Culture Manners and customs Cultural convergence: Globalization cannot be rejected, as it represents a transformation brought about by us Understanding manners and customs is important in negotiations Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 26  Elements of Culture (11 of 18) Potential problem areas for marketers arise from insufficient: Understanding of different ways of thinking Attention to the necessity of saving face Knowledge and appreciation of the host country Recognition of the decision-making process and the role of personal relations and personalities Allocation of time for negotiations Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 27  Elements of Culture Aesthetics Each culture makes a clear statement concerning good taste as expressed in the arts and in the symbolism of colors, forms, and music Color is used as a mechanism for Brand identification Feature reinforcement Differentiation International firms must take into consideration local tastes and concerns in designing their facilities Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 28 Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 29 Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 30 Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 31  Elements of Culture (15 of 18) Education Formal and informal education plays a major role in the passing on and sharing of culture Educational levels of a culture can be assessed by literacy rates and enrollment in higher education Educational levels have an impact on business functions Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 32 Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 33  Elements of Culture (17 of 18) Social stratification: Division of a particular population into classes The higher strata control most of the buying power and decision-making positions Reference groups: Provide the values and attitudes that become influential in shaping behavior Can be primary or secondary Social organization determines the roles of managers and subordinates and the way they relate to one another Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 34  Cultural Analysis (1 of 3) Dimensions of culture Individualism-collectivism Power distance Uncertainty avoidance Gender-role orientation Long-term versus short-term orientation Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 35  Cultural Analysis (2 of 3) Self-reference criterion: Unconscious reference to one’s own cultural values Recommendations to reduce the influence of one’s own cultural values: Define the problem in terms of domestic and foreign cultural traits, habits, or norms Isolate the self-reference criterion influence in the problem and examine it to see how it complicates the problem Redefine the problem without the self-reference criterion influence and solve for the optimal goal situation Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 36  Cultural Analysis (3 of 3) Ethnocentricism: The belief that one’s own culture is superior to others It can be achieved by acknowledging and properly adjusting to its possible effects in managerial decision-making Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 37  The Training Challenge (1 of 3) To foster culture sensitivity and acceptance of new ways of doing things Internal education programs must be included The objective of training programs is to foster Preparedness Sensitivity Patience Flexibility in managers and other personnel Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 38  The Training Challenge (2 of 3) Area studies: Provides factual preparation for a manager to operate in, or work with people from, a particular country Cultural assimilator: Trainees must respond to scenarios of specific situations in a particular country Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 39  The Training Challenge (3 of 3) Sensitivity training: Focuses on enhancing a manager’s flexibility in situations that are quite different from those at home Field experience: Exposes a manager to a different cultural environment for a limited amount of time Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 40  Making Culture Work for Marketing Success Embrace local culture Build relationships Employ locals to gain cultural knowledge Help employees understand you Adapt products and processes to local markets Coordinate by region Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 41  Summary Culture is the system of learned behavior patterns characteristic of the members of a given society. It is constantly shaped by a set of dynamic variables: language, religion, values and attitudes, manners and customs, aesthetics, technology, education, and social institutions. An international manager needs both factual and interpretive knowledge of the culture. Two schools of thought exist in the business world on how to deal with cultural diversity. One is that business is business the world around. The other school proposes that companies must tailor business approaches to individual cultures. The internationally successful companies have not rushed into situations but rather built their operations carefully by following the most basic business principles of knowing your challenger, your audience, and your customer Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 42  Key Terms (1 of 7) Culture: An integrated system of learned behavior patterns that are distinguishing characteristics of the members of any given society. Acculturation: The process of adjusting and adapting to a specific culture other than one’s own. High-context culture: Cultures in which the context is at least as important as what is said, for example, Japan and Saudi Arabia have cultures in which what is not said can carry more meaning than what is said. Low-context culture: Cultures in which most information is contained explicitly in the words; for example, North American cultures. Change agent: Introduction of new products or ideas and practices, which may lead to changes in consumption. Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 43  Key Terms (2 of 7) Cultural imperialism: A charge indicted on international marketers if the changes brought about by them are dramatic or if culture-specific adaptations are not made in their marketing approach. Cultural universals: These are manifestations of the total way of life of any group of people, including such elements as bodily adornments, courtship, etiquette, family gestures, joking, mealtimes, music, personal names status differentiation, and trade. Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 44  Key Terms (3 of 7) Back-translation: The translation of a foreign language version back to the original language by a different person from the one who made the first translation; an approach used to detect and avoid omissions and language blunders in translation. Christianity: A monotheistic religion based on the teachings of Jesus of Nazareth. It has the largest following among world religions, with more than 2 billion people. Islam: A monotheistic religion based on the belief that Allah is the only God and Muhammad his only prophet. It has more than 1.2 billion followers across the world. Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 45  Key Terms (4 of 7) Hinduism: A way of life predicated on the caste, or class, to which one is born. Hinduism has 860 million followers, mainly in India, Nepal, Malaysia, Guyana, Suriname, and Sri Lanka. Buddhism: A religion which sees life as an existence of suffering, with achieving nirvana, a state marked by an absence of desire, as the solution to suffering. It has 360 million followers. Confucianism: A religion based on the teachings of Confucius. It has been characterized as a code of conduct rather than a religion and has 150 million followers. Cultural convergence: The growing similarity of attitudes and behaviors across cultures. Focus group: Eight to twelve consumers representing the proposed target market audience, whose responses are used to check for disasters and fine-tune research findings. Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 46  Key Terms (5 of 7) In-depth study: A comprehensive study of a subject matter. Infrastructure: The basic economic, social, financial, and marketing support systems, from housing to banking systems to communications networks; it is also an indicator of potential demand. Social stratification: The division of a particular population into classes. Reference group: Groups that provide the values and attitudes that become influential in shaping behavior. Cultural knowledge: Broad, multifaceted knowledge acquired through living in a certain culture. Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 47  Key Terms (6 of 7) Factual information: Objective knowledge of a culture obtained from others through communication, research, and education. Experiential knowledge: Knowledge acquired only by being involved in a culture other than one’s own. Interpretive knowledge: Knowledge that requires comprehensive fact-finding and preparation and an ability to appreciate the nuances of different cultural traits and patterns; this knowledge is gained only through experience. Self-reference criterion: The unconscious reference to one’s own cultural values in comparison to other cultures. Ethnocentrism: The belief that one’s own culture is superior to others. Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 48  Key Terms (7 of 7) Area studies: Environmental briefings and cultural orientation programs that provide factual preparation for living or working in another culture. Cultural assimilator: A program in which trainees must respond to scenarios of specific situations in a particular country. Sensitivity training: An approach based on the assumption that understanding and accepting oneself is critical to understanding a person from another culture. It focuses on enhancing a manager’s flexibility in situations that are quite different from those at home. Field experience: An experience that involves exposure to a different cultural environment for a limited time; for example, living with a host family of the nationality to which the trainee will be assigned. Michael Czinkota, International Marketing Eleventh Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 49