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Chapter global cultural environment and buying behavior, in chapter 4 are included as important dimensions in understanding cultural and market differences among countries. Not to be overlooked is concern for the deterioration of the global ecological environment and the multinational company’s critical responsibility to protect it.
GLOBAL MARKETING MANAGEMENT Chapter PowerPoint Seventh Edition Global Cultural Environment and Buying Behavior MASAAKI KOTABKE | KRISTIAAN HELSEN Chapter Overview Meaning of Culture Elements of Culture Cross-Cultural Comparisons Adapting to Cultures Culture and the Marketing Mix Chapter Copyright © 2017 John Wiley & Sons, Inc Introduction • Buyer behavior and consumer needs are largely driven by cultural norms • Global business means dealing with consumers, strategic partners, distributors, and competitors with different cultural mindsets • Within a given culture, consumption processes can include four stages: access, buying behavior, consumption characteristics, and disposal • Each of these stages is heavily influenced by the culture in which the consumer thrives Chapter Copyright © 2017 John Wiley & Sons, Inc Exhibit 4-1: Cultural Variations in Emoticons Chapter Copyright © 2017 John Wiley & Sons, Inc Definition of Culture • There are numerous definitions of culture In this text, culture (in a business setting) is defined as being learned, shared, and composed of interrelated parts whose meanings provide a set of orientations for members of society • Cultures may be defined by national borders, especially when countries are isolated by natural barriers • Cultures contain subcultures that have little in common with one another Chapter Copyright © 2017 John Wiley & Sons, Inc Elements of Culture • Culture consists of many interrelated components Knowledge of a culture requires a deep understanding of its different parts Following are the elements of culture: – Material life (technologies that are used to produce, distribute, and consume goods and services) – Language (language has two parts: the spoken and the silent language) • Blunders of translation are common either direction (Exhibit 4-2) • Back translation can help avoid problems Chapter Copyright © 2017 John Wiley & Sons, Inc Exhibit 4-2: How Not To Sell Abroad Chapter Copyright © 2017 John Wiley & Sons, Inc Elements of Culture – Social Interactions (social interactions among people; nuclear family, extended family; reference groups) – Aesthetics (ideas and perceptions that a culture upholds in terms of beauty and good taste) – Religion (belief in supernatural agents) – Education (major vehicle for channeling culture from one generation to the next) – Value System (shape people’s norms and standards) Chapter Copyright © 2017 John Wiley & Sons, Inc Exhibit 4-3: Rules for Cracking the Guanxi Code in China Chapter Copyright © 2017 John Wiley & Sons, Inc Exhibit 4-4: 2011 Car Color Preferences Chapter Copyright © 2017 John Wiley & Sons, Inc 10 Exhibit 4-5: Cross-Country Performance Mathematics, Reading, and Science Skills among High-School Students (PISA 2012) Chapter Copyright © 2017 John Wiley & Sons, Inc 11 Cross-Cultural Comparisons • Cultures differ from one another, but usually share certain aspects Recent social psychology research reveal key cultural differences between East (high) and West (low) context cultures in how people perceive reality and reasoning (see below) • High-context cultures: Interpretation of messages rests on contextual cues; e.g., China, Korea, Japan, Latin America • Low-context cultures: Put the most emphasis on written or spoken words; e.g., USA, Scandinavia, Germany Chapter Copyright © 2017 John Wiley & Sons, Inc 12 Cross-Cultural Comparisons High context Japanese IMPLICIT Arabian Latin American Spanish Italian English (UK) French English (US) Scandinavian Low context German Swiss Chapter EXPLICIT Copyright © 2017 John Wiley & Sons, Inc 13 Cross-Cultural Comparisons • Geert Hofstede’s Cultural Classification Scheme: – Power distance: The degree of inequality among people that is viewed as being acceptable – Uncertainty avoidance: The way that a culture deals with the fact that the future can never be known – Individualism: The degree to which people’s image is defined in terms of “me” versus “we.” Continued Chapter Copyright © 2017 John Wiley & Sons, Inc 14 Cross-Cultural Comparisons Continued –Masculinity: The importance of “male” values (assertiveness, status, success, competitive drive within society, achievement) versus “female” values (being people-oriented, solidarity, quality of life) –Long-termism: Oriented primarily on the present and the future –Indulgence: The extent to which people try to control their desires and impulses, based on the way they were raised Chapter Copyright © 2017 John Wiley & Sons, Inc 15 Cross-Cultural Comparisons • GLOBE (Global Leadership and Organizational Behavior Effectiveness) Research Program – Project GLOBE is a large-scale ongoing research program that explores cultural values and their impact on organizational leadership in 62 countries (Exhibit 4-7) – Three dimensions (collectivism I, uncertainty avoidance, and power distance) are the same as Hofstede’s constructs Chapter Copyright © 2017 John Wiley & Sons, Inc 16 Cross-Cultural Comparisons • The remaining six dimensions include: collectivism II, gender egalitarianism, assertiveness, performance orientation, humane orientation, and future orientation • World Value Survey (WVS): (WVS) • The WVS is conducted by a network of social scientists at leading universities worldwide • The WVS has been done multiple times and the population covered is much broader than in other similar studies • The WVS encompasses two broad categories: traditional versus secular values, and survival versus self-expression values (Exhibit 4-8) Chapter Copyright © 2017 John Wiley & Sons, Inc 17 Exhibit 4-7: Project GLOBE Chapter Copyright © 2017 John Wiley & Sons, Inc 18 Exhibit 4-8: World Value Survey (WVS) Chapter Copyright © 2013 John Wiley & Sons, Inc 19 Adapting to Cultures • Global marketers need to become sensitive to cultural biases that influence their thinking, behavior, and decision-making • Self-reference criterion (SRC): Refers to people’s unconscious tendency to resort to their own cultural experience and value systems to interpret a given business situation • Out-group homogeneity bias: Refers to people’s tendency to believe out-group members (e.g., members of host culture) are more alike and less diverse than members of one’s own group Chapter Copyright © 2013 John Wiley & Sons, Inc 20 Culture and the Marketing Mix • Culture is a key pillar of the marketplace • Product Policy: Many products and services must be tailored to local values and preferences to make them more appealing in the host market, while some can also be banned or restricted due to cultural reasons • Pricing: Customers’ willingness to pay for products will vary across cultures; what may be perceived as good value in one culture may have little to no value in other cultures Chapter Copyright © 2017 John Wiley & Sons, Inc 21 Culture and the Marketing Mix • • Distribution: Cultural variables may also dictate distribution strategies Promotion: Promotion is the most visible element of the marketing mix Culture will typically have a major influence on a firm’s communication strategy Local cultural taboos and norms also influence advertising styles (See Exhibit 4-10.) Chapter Copyright © 2017 John Wiley & Sons, Inc 22 Discussion Questions (left), (right) Chapter Copyright © 2017 John Wiley & Sons, Inc 23 ... versus self-expression values (Exhibit 4- 8) Chapter Copyright © 2017 John Wiley & Sons, Inc 17 Exhibit 4- 7: Project GLOBE Chapter Copyright © 2017 John Wiley & Sons, Inc 18 Exhibit 4- 8: World... and standards) Chapter Copyright © 2017 John Wiley & Sons, Inc Exhibit 4- 3: Rules for Cracking the Guanxi Code in China Chapter Copyright © 2017 John Wiley & Sons, Inc Exhibit 4- 4: 2011 Car Color... Preferences Chapter Copyright © 2017 John Wiley & Sons, Inc 10 Exhibit 4- 5: Cross-Country Performance Mathematics, Reading, and Science Skills among High-School Students (PISA 2012) Chapter Copyright