Chapter 8 The socio-cultural environment

Lecture overview
Introduction What is culture? Levels of culture High and low context cultures The fundamentals of culture Individualism and collectivism Hofstedes cultural value dimensions Trompenaars cultural value dimensions

Overview (continued)
The values theory and the measurement of cross-cultural values Using social axioms to augment the measurement of value dimensions Cultural analysis Self-reference criteria The relationship between culture and international marketing Summary

Learning Outcomes

Identify the different levels of culture. Evaluate Hofstedes and Trompenaars cultural value dimensions respectively. Explain the values theory and discuss the measurement of cross-cultural values. Discuss different forms of cultural analysis. Examine the meaning and role of the selfreference criteria. Analyse the relationship between culture and international marketing.

Introduction
This chapter focuses on issues related to the sociocultural environments the international marketer faces in foreign markets. In order for an international marketer to be successful in a foreign market, it is important to:
be familiar with the socio-cultural aspects of this market take these aspects into account when developing a marketing strategy for the specific foreign market.

What is culture?
Culture is learned, shared and transmitted from one generation to the next (Czinkota & Ronkainen).
It is an an integrated system of learned behaviour patterns that are distinguishing characteristics of the members of any given society (Czinkota & Ronkainen).

Encompasses all traditions, habits, religion, art and language (Jeannet & Hennessey).

What is culture? (continued)

A subculture can be defined as an: identifiable subgroup within a culture that shares values and patterns of behaviour that are distinguishable from the overall culture Anderson & Vincze

Levels of culture

National culture

Industry culture Firm culture Individual behaviour

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High and low context cultures

Low-context cultures
individuals rely on what is said and written for meaning. individuals communicate through words exactly what is meant.

High-context cultures
individuals do not say and write exactly what is meant.
read between the lines. gestures, moods and environmental clues form part of the message.

The fundamentals of culture (continued)

Material culture reflects the societys exposure to technology. Aesthetics is expressed in a cultures art, colour, form and music. Social organisation involves kinship, common territory, special interest groups, class or caste groupings, age and the role of women in society. Manners and customs refers to what the society considers as good manners and appropriate.

The fundamentals of culture (continued)

Education refers to the level of education and education system in place in a society. Religion and beliefs dictate how individuals live their lives. Attitudes and values influence aspects such as time, achievement, work, health and willingness to take risk of members of a society. Language is seen as key to culture and is verbal and non-verbal.

Individualism
Culture is made up of individuals connected to each other

Individuals are motivated by their preferences, needs and rights

Personal objectives are more important than the objectives of others

Collectivism
Describes a culture consisting of closely connected individuals Individuals view themselves as part of a collective including families, church groups or work groups Individuals are motivated by what the collectives want or expect from them Personal goals are secondary to that of the collective The linkage between members of the collective is very important

Hofstedes cultural value dimensions

Power distance the way in which inequality between

different members of a society are dealt with.

Uncertainty avoidance the way in which members of

a particular society deal with uncertainty.

Individualism the extent to which members of a

society promote individual self interest.

Masculinity masculine cultures prize assertiveness,

materialism and limited concern for other members of society. Less masculine cultures value members of society, good relationships with others and quality of life.

Time orientation members of a societys orientation to

the future.

Trompenaars cultural value dimensions

Universalism versus particularism steadfast
principles in terms of what is right and wrong versus obligations that come with relationships.

Individualism versus communitarianism individuals

consider themselves as individuals first versus group obligations are seen as more important than individual desires.

Neutral versus affective individuals repress their

emotions versus individuals tend to express their emotions.

Specific versus diffuse get to the point without delay

when interacting with others versus value relationships and focus only on business dealings once relationships have been established.

Trompenaars cultural value dimensions (continued)

Achievement versus ascription a persons status in
society is derived from his or her own achievements versus status is dependent upon the persons age, gender, family relations and social contacts.

Attitudes to time achievements of the past are not

important versus past accomplishments are viewed with more regard than present and planned future performance.

Attitudes to the environment the major focus

influencing a persons life exists within a person versus the environment is far stronger than an individual.

The values theory and the measurement of cross-cultural values

Identifies a set of 10 different value constructs which are recognised across cultures

The Schwartz Value Survey (SVS) is used to measure these 10 value constructs
The SVS requires abstract thinking and employs value concepts outside of any specific context The SVS works well in western industrialised countries where education emphasises such thinking

The values theory and the measurement of cross-cultural values (continued)

Research conducted in Sub-Saharan Africa, India and Malaysia (amongst others, failed to obtain support for the theory The Portrait Values Questionnaire (PVQ) was developed to measure the 10 value-constructs in a more concrete manner

The PVQ is useable with populations for which the SVS is not suitable
The PVQ is an independent test of the values theory

Using social axioms to augment the measurement of value dimensions

Social axioms are fundamental principles that people support

These principles guide behaviour in everyday life

Social axioms differ from one person to another and mirror the unique experiences of individuals

Two examples of social axioms:

belief in a religion helps one understand the meaning of life failure is the beginning of success.

Two social axiom dimensions

Dynamic externality. Reflects an outward orientation and a basic dealing with outside influences where fate and the presence of a supreme being are important to people.
Societal cynicism in cultures with high levels of societal cynicism, individuals are disengaged from their work and view their work as instrumental in obtaining what they want from life.

Cultural analysis
Develop an analytical framework to deal with cultural differences.
The framework can be used to adapt or develop new marketing strategies to enter foreign markets.

Cultural analysis (continued)

The following guides exist to better understand cultures and analyse different cultures:
Communication typologies
The work of Triandes, Hofstede and Trompenaars, The values theory The use of social axioms

Communication typologies
Culture is analysed based upon the manner in which communication takes place. Communication typologies include:
Contextual versus personal Direct versus indirect Elaborative versus succinct Instrumental versus affective

 The cultural value dimensions identified explain the differences between cultures around the world. Understanding the values assists the international marketer in deciding on the marketing strategy for a specific group or culture.

Social axioms involves focusing on the fundamental principles that people support and that guide their behaviour This assists the international marketer to obtain a better understanding of the culture and the way individuals in the culture perceive it.

Self-reference criteria
Is when a person views another culture with an evaluative and egotistical approach with reference to his/her own culture.

International marketers should view a foreign within the context of the country or market where the culture is found.
Other cultures should be seen as being different NOT inferior!

Focus on reducing the influence of the selfreference criteria by:

Defining the problem or goal in terms of the home countrys cultural traits, habits and norms.

Defining the problem or goal in terms of the host countrys cultural traits, habits and norms.
Isolating the influence of the self-reference criteria and carefully investigate how it complicates the problem. Redefining the problem by excluding the influence of the self-reference criteria and focusing on solving the problem or achieving the goal optimally.

The relationship between culture and international marketing

The customer in the international market:

It is important for the international marketer to determine religion, attitudes, beliefs, customs, manners and many more elements when trying to understand the customer in a market.
To understand or predict the consumers behaviour have knowledge of the culture of the foreign market.

The relationship between culture and international marketing (cont.)

The marketing mix in the international market:
Country of origin influences the perception of a product positively or negatively watches from Switzerland.

Take the role of discount pricing, bartering and other pricing practices in a particular market into account.
Alter distribution decisions in particular foreign markets due to cultural influences using bicycles in some markets to distribute Coca-Cola. Promotion that works well in the home country may not be effective in the foreign market Vodacom Yebo Gogo ads may be humorous in South Africa but not in others

The relationship between culture and international marketing (cont.)

Delivering value in the international market: It is not always easy to deliver similar value to all customers all over the world - The international marketer might have to change marketing strategy to deliver value in the host market - For example, It is difficult to provide internet banking in a market without necessary infrastructure.

Ethical standards differ from one culture to another and could pose major challenges for the international marketer