Cultural Dynamics In Assessing Global Markets PDF

CULTURAL DYNAMICS IN ASSESSING GLOBAL MARKETS 442 Chapter 4 1 Origins, Elements, and Consequences of Culture 2 Definitions of culture Edward Hall: “Cultural Geert Hofstede: culture is differences are often inv...

CULTURAL DYNAMICS IN ASSESSING GLOBAL MARKETS 442 Chapter 4 1 Origins, Elements, and Consequences of Culture 2 Definitions of culture Edward Hall: “Cultural Geert Hofstede: culture is differences are often invisible” “software of the mind” 3 Culture is… Sum of values, rituals, symbols, beliefs, and thought processes that are learned and shared by a group of people, then transmitted from generation to generation The human-made part of human environment Resides in the individual’s mind (values, beliefs, attitudes) Large collective of people can be like-minded Often hidden from view Is reinforced & acted out in social institutions 4 Social institutions family religion school/educations the media, government & corporations 5 Family 6 Religion First social institution infants are exposed to outside the home Affects value systems, habits, outlook on life, products bought Is subjective – difficult to verify or question Religious taboos Tension 7 Technology & Education Innovation impacts institutions and cultural values Technology does not always solve all problems Next wave impacting marketing: AI, Crypto currency… Education is a leading indicator for literacy levels, competitiveness of a society, & potentially how open society will be to change 8 Government, corporations & the media Government -Less influential, try to influence the thinking and behavior of adults, some use laws &/or propaganda Corporations – can act as cultural “change agents” Media – what is the impact of media on a culture 9 Elements of culture Five elements - Impact product design, distribution, and promotion in international markets Values Rituals Symbols Beliefs Thought processes 10 Cultural values Hofstede’s four dimensions Individualism/Collective Index (IDV); focus on self-orientation Power Distance Index (PDI); focus on authority orientation Uncertainty Avoidance Index (UAI); focus on risk orientation Masculinity/Femininity Index (MAS); focus on assertiveness and achievement 11 Rituals Patterns of behavior and interaction that are learned and repeated Associated with major life events: marriage, funerals, graduation Also smaller rituals: dinner at restaurant, grooming, visit to store Important function of culture Coordinate everyday interactions and special occasions Let people know what to expect 12 Cultural universals Dancing/music Mourning Dressing/adornment Mealtimes/cooking/food Courtship/dating Medicine Marriage Religion/rituals Property rights Status 13 Symbols Anthropologist Edward T. Hall: culture is communication Includes ability to accurately interpret symbols Language itself thought of as important social institution Linguistic distance, bilingualism, biculturalism Aesthetics considered symbols Art, folklore, music, drama, dance, dress, cosmetics 14 Beliefs Mainly stem from religious training, varies by culture Relationship between superstition and religion unclear Important part of cultural fabric of a society Influence all manners of behavior Subcultures 15 Resistance to change Consumers in different cultures display differing resistance Qualities of innovations that are most readily accepted: Hold greatest interest within the society Are least disruptive to current values and behavior patterns Important for international marketers to understand Can’t wait a long time for acceptance of innovation Must gain acceptance within limits of financial resources and projected profitability periods 16 Diffusion of Innovation 17 Product Life Cycle 18 Marketing implications 19 Paradox of cultural change Culture is dynamic in nature yet Culture is conservative and resists change Why do societies change? Change can be thrust upon cultures Result of society seeking ways to solve problems Adjusting to environmental and historical changes “Cultural convergence” 20 Cultural sensitivity & tolerance Starting point for successful foreign marketing Must be carefully cultivated Negative attitudes toward globalization 21