Literature Review

A Review on the Impact of Cross Cultural Differences on

International Marketing
Table of Contents
1. Introduction..................................................................................................................................3
2. Reviewing Key Literature..............................................................................................................4
2.1. Thematic Organization..........................................................................................................4
2.2. Analysis of Methodological Approaches and Theoretical Frameworks...............................7
2.3. Research Gaps and Suggestions............................................................................................8
3. Conclusion.....................................................................................................................................9
4. Reflection....................................................................................................................................10
References...........................................................................................................................................12
 1. Introduction

In the evolving landscape of global business, understanding the intricacies of cross-cultural

differences has become paramount for successful international marketing strategies. The
advent of globalization has interconnected markets across the world, bringing diverse cultures
into closer contact than ever before. This interconnectedness, while offering immense
opportunities for businesses to expand their reach, also presents unique challenges rooted in
cultural variances. These challenges are particularly pronounced in the realm of international
marketing, where understanding and adapting to the cultural nuances of different regions can
make or break the success of marketing campaigns.

Key themes and debates in this field centre around the need for businesses to not only
recognize but also effectively respond to these cultural differences. One major theme involves
the adaptation of marketing messages and strategies to fit local cultural norms and values.
This includes understanding consumer behaviour, which varies significantly from culture to
culture, influenced by factors such as societal norms, language, religion, and values. Another
critical area of debate is the role of cultural intelligence and sensitivity in international
marketing, where marketers must navigate the fine line between standardizing their global
marketing strategies and customizing them to fit local preferences.

This literature review aims to delve into the complex world of cross-cultural differences in
international marketing. It seeks to explore various aspects of how cultural disparities
influence marketing strategies, consumer behaviour, and communication in the international
market. By examining a range of scholarly studies, this review will provide insights into the
current understanding of these cross-cultural impacts, identify gaps in existing research, and
highlight the importance of cultural considerations in developing effective international
marketing strategies. The goal is to contribute to the broader understanding of cross-cultural
challenges in international marketing and to propose directions for future research in this vital
field of global business.
 2. Reviewing Key Literature

2.1. Thematic Organization

Theme 1: Cross-Cultural Communication and Marketing Strategies

Overview of the Theme

Cross-cultural communication is a pivotal theme in the domain of international marketing.

The selected studies collectively provide a comprehensive view of how cultural differences
shape marketing strategies and communication in multinational settings. The importance of
adapting to varying cultural norms, understanding diverse consumer behaviors, and
developing appropriate communication skills for different cultural environments is a
recurring focus across these studies.

Key Findings

Wang et al. (2016) identify essential cross-cultural skills for Chinese expatriates, including
stress management, interpersonal, perceptual, and communication skills, highlighting the role
of host country context in skill efficacy. Gao (2023) emphasizes the complex impact of
cultural differences on multinational enterprises' marketing strategies, underscoring the need
for integrating culture into business strategies. Abugre (2018) discusses critical cross-cultural
communication skills for Western expatriates in Sub-Saharan Africa, emphasizing
understanding local verbal and non-verbal behaviors. Mortimer et al. (2022) explore the
influence of cultural dimensions on 'off-price' fashion shopping, revealing the interaction of
cultural factors with consumer attitudes. Adamczyk (2017) focuses on the importance of
understanding cultural differences in international business, emphasizing the impact on
communication, negotiations, and marketing strategies.

Comparative Discussion

The collection of studies analysed highlights the intricate nature and challenges of cross-
cultural communication in international marketing. Wang et al. (2016) and Abugre (2018)
stress the need for specific communication skills in diverse cultural contexts. Wang et al.
(2016) focus on the essential cross-cultural skills for Chinese expatriates, particularly stress
management and interpersonal skills tailored to the cultural environment of the host country.
This reflects the necessity of understanding and adapting to the cultural norms of the host
country, which may significantly differ from the expatriates' own culture.

Abugre (2018) examines critical communication skills for Western expatriates in Sub-
Saharan Africa, emphasizing the importance of understanding local verbal and non-verbal
behaviours embedded in cultural practices, which often vary greatly from Western
communication norms. This highlights the need for tailored cultural adaptation strategies,
considering both the origin and destination cultures.

Gao (2023) discusses leveraging cultural differences in international marketing as a strategic

advantage, suggesting that understanding and utilizing cultural diversity can lead to
innovative marketing strategies. Adamczyk (2017) advocates for a comprehensive
understanding of cultural nuances, including communication styles, negotiation tactics, and
consumer preferences, essential for building trust and engaging effectively in international
markets.

Mortimer et al. (2022) add a unique angle by examining the impact of national cultural
dimensions on consumer behaviour in the fashion industry, specifically how cultural factors
like individualism, power distance, and uncertainty avoidance affect attitudes towards 'off-
price' fashion shopping. This study offers targeted insights for marketers in the fashion
industry, providing actionable advice on tailoring marketing strategies to align with the
cultural values and preferences of different market segments.

Theme 2: Consumer Behaviour in Different Cultural Contexts

Overview of the Theme

Consumer behaviour in various cultural contexts is a significant theme in international

marketing. The studies reviewed provide insights into how cultural differences influence
consumer behaviour, with a particular focus on how these variations impact marketing
strategies and consumer engagement in different cultural settings. This theme is crucial for
understanding the nuances of consumer preferences and buying patterns across diverse
cultural landscapes.

Key Findings

Mortimer et al. (2022) investigate 'off-price' fashion shopping behaviours, comparing

Australian and Chinese consumers. Their findings reveal that consumer involvement
positively impacts the 'off-price' shopping experience, particularly in terms of effort, mastery,
and pride. However, the study notes limited moderation effects of cultural differences on
these experiences. The study demonstrates how national cultural dimensions such as
individualism, uncertainty avoidance, long-term orientation, and indulgence interact with
product involvement in influencing consumer attitudes towards fashion and involvement in
'off-price' shopping.

Adamczyk (2017) focuses on categorizing cultures and presenting characteristics of selected

countries in business areas. The study confirms that cultural differences significantly affect
business, including consumer behaviour in a global economy. It emphasizes the importance
of understanding and diagnosing the culture of business partners and developing market-
specific strategies based on this cultural understanding.

Comparative Analysis

Mortimer et al. (2022) and Adamczyk (2017) both acknowledge the impact of cultural
differences on consumer behaviour. Mortimer et al. (2022) provides a more focused
exploration of consumer behaviour in the context of 'off-price' fashion shopping, specifically
examining how national cultural dimensions influence consumer involvement and pride in
two distinct cultures. In contrast, Adamczyk (2017) takes a broader approach, systematizing
knowledge on the characteristics and classification of cultures and their influence on business
practices, including consumer behaviour.

While Mortimer et al. (2022) provide empirical evidence on the interaction of cultural
dimensions with consumer behaviour in specific retail settings, Adamczyk (2017) offers a
theoretical framework for understanding cultural influences on consumer behaviour in
international business. Mortimer et al. (2022) study suggests that cultural factors like
individualism and long-term orientation can influence consumer attitudes towards fashion
shopping, whereas Adamczyk emphasizes the need for businesses to understand cultural
differences to develop effective marketing strategies.

Theme 3: Cultural Intelligence in International Marketing

Overview of the Theme

Cultural intelligence in international marketing is an essential theme for understanding how

businesses navigate diverse cultural landscapes in the global market. This theme encompasses
the ability to interpret and adapt to cultural cues, effectively communicate across cultural
boundaries, and design marketing strategies that are sensitive to cultural nuances. The studies
in focus provide an in-depth exploration of how cultural intelligence impacts the success of
international marketing initiatives, examining the role of cultural understanding in different
market contexts.

Key Findings

Wang et al. (2016) explore cross-cultural skills vital for Chinese expatriates, stressing the
importance of stress-management, interpersonal, perceptual, and communication skills. The
study highlights that the effectiveness of these skills varies according to the host country,
demonstrating the contextual nature of cultural intelligence.

Abugre (2018) emphasizes the significance of cross-cultural communication for Western

expatriates in Sub-Saharan Africa. The study identifies key skills such as understanding
verbal and non-verbal behaviors and managing cultural differences, which are crucial for
successful interactions in multinational companies.

Adamczyk (2017) delves into the categorization of cultures and their impact on international
business. The study underscores the importance of diagnosing the culture of business partners
and tailoring market-specific strategies based on this cultural understanding.

Comparative Insights

The studies collectively highlight the multifaceted nature of cultural intelligence in

international marketing. Wang et al. (2016) and Abugre (2018) both emphasize the need for
specific communication skills tailored to different cultural contexts. However, Wang et al.
focus on Chinese expatriates, while Abugre (2018) concentrates on Western expatriates in
Africa. This contrast showcases the diverse approaches required for effective cultural
adaptation based on the origin and host cultures.

Adamczyk’s (2017) work complements these studies by providing a broader perspective on

the impact of cultural understanding in international business. The study’s focus on the
categorization of cultures and the development of market-specific strategies based on cultural
knowledge aligns with the idea that cultural intelligence is not only about interpersonal
interactions but also about strategic business planning.

2.2. Analysis of Methodological Approaches and Theoretical Frameworks

The reviewed studies present varied methodologies, each shedding light on cross-cultural
differences in international marketing. Wang et al. (2016) employ a qualitative design with
semi-structured interviews, focusing on Chinese expatriate managers. This method captures
detailed, context-specific information but faces limitations in generalizability due to its small
sample size and specific focus. Gao (2023) and Adamczyk (2017) use literature reviews,
offering a broader, albeit secondary data-dependent, perspective across cultures. Abugre
(2018) opts for qualitative phenomenology through interviews with senior expatriate staff in
Ghana, gaining deep insights into their experiences but with limited regional and
demographic scope. Mortimer et al. (2022) adopt a quantitative approach with a large-scale
online survey, enhancing statistical validity and generalizability while potentially overlooking
qualitative cultural nuances.

The studies employ diverse theoretical frameworks, enhancing understanding of cross-

cultural interactions. Wang et al. (2016) integrate social learning theory with a contextual
perspective, examining cultural skill adaptation in different environments. Abugre (2018)
draws on cross-cultural adaptation theory, relevant for understanding communication
complexities in multilingual settings like Sub-Saharan Africa. Mortimer et al. (2022) utilize
Hofstede's national cultural dimensions and achievement goal theory to analyse consumer
behaviour in off-price fashion shopping, revealing how cultural traits influence shopping
habits.

2.3. Research Gaps and Suggestions

The current literature on international marketing reveals several gaps, particularly in

understanding the impact of cross-cultural differences. Wang et al. (2016) and Abugre (2018)
identify a lack of focus on how expatriate skills are influenced by different contextual factors
in host countries. This suggests a need for research considering the cultural environments
expatriates face. Gao (2023) emphasizes the need for a more comprehensive understanding of
cultural differences on multinational marketing strategies, indicating that current studies may
not fully capture the complexities in various cultural settings.

Adamczyk (2017) and Mortimer et al. (2022) point out the need to further explore cultural
variations in business operations and consumer behaviors across different countries. This
implies that existing studies may have overlooked the broader implications of cultural
diversity in international marketing.
To address these gaps, future research should broaden the geographical scope and deepen the
cultural understanding in international marketing studies. It should examine the
transferability and adaptation of cross-cultural skills among expatriates from diverse
backgrounds in different countries, providing insights into the development and application
of cultural intelligence in international contexts.

Investigating the effectiveness of cultural training programs for international marketing

professionals could provide practical implications for multinational corporations. This
research could assess the impact of these programs on marketing strategies and outcomes,
aiding in navigating cultural differences effectively.

Further studies are needed on the comparative effects of cultural differences on multinational
enterprises' marketing strategies, focusing on how various cultural traits in markets influence
marketing tactics and consumer engagement. Expanding research to include a wider range of
cultural dimensions, consumer traits, and global market contexts would enrich understanding
of global off-price shopping trends and consumer behaviours.

3. Conclusion

In conclusion, the literature reviewed highlights the critical role that cultural disparities play
in shaping international marketing strategies, communication approaches, and consumer
behaviours. While globalization has connected diverse markets, it has also created complex
challenges for businesses aiming to navigate varying cultural contexts.

A predominant finding across the analysed studies is the need for multinational enterprises to
move beyond mere recognition of cultural differences toward concrete adaptation of their
marketing tactics and messages to align with local cultural values and norms. However, the
current literature reveals gaps in providing explicit frameworks and guidelines to assist
businesses in this integration process across diverse global regions.

Additionally, existing research on cross-cultural skills predominantly focuses on generic

competencies rather than outlining specific skill sets tailored for professionals from particular
cultural backgrounds operating in defined target markets. This presents an opportunity for
future studies to examine cultural skill adaptation among expatriate groups in different host
country environments.
The literature also indicates a need for further investigation into the nuanced effects of
particular cultural dimensions on consumer attitudes and engagement across international
markets. While studies have explored broad cultural traits, more targeted research is required
to unpack the contextual influences of elements like power distance, individualism, and
uncertainty avoidance on buyer behaviours across product categories and global regions.

In response to these gaps, my proposed study will contribute empirical insights and strategic
recommendations to guide international marketers in effectively navigating cross-cultural
complexities across key regions. By examining expatriate experiences and consumer
behaviours in defined markets, this research aims to advance the integration of cultural
awareness into global marketing practices, a pivotal step for succeeding in today’s
interconnected landscape.

4. Reflection

Conducting the literature review on the impact of cross-cultural differences on international

marketing has been an insightful process. Initially, I found the breadth of this topic daunting,
given the expansive research on cultural variations in global business. Narrowing my focus to
key dimensions that directly influence marketing strategies and communication was crucial to
make the scope more manageable.

Reviewing scholarly articles on this theme revealed some expected and unexpected themes.
The importance of cultural adaptation and sensitivity was a predictable theme across studies.
However, the specific competencies highlighted for expatriates working in multinational
enterprises provided valuable specificity for my research aims. Furthermore, the emerged
focus on contextual factors and their influence on cross-cultural skills gave me a more
nuanced perspective on this complex issue.

Organizing the literature thematically helped synthesize learnings across disparate sources.
Comparing findings, methods, and theories across studies revealed research gaps and
opportunities for further investigation. This process enabled me to identify my unique
contribution to the field through an empirical examination of cultural skill adaptation and
consumer behaviours in defined international contexts.

Preparing this review challenged me to deeply engage with experts’ viewpoints, evaluating
their evidence to shape my own perspective. Translating complex concepts into accessible
themes and summaries further developed my academic writing abilities. Condensing
multifaceted research into succinct comparative analyses required critical assessment and
clear presentation skills.

Conducting an effective, well-structured literature review entails meticulous synthesis,

critique and organization of existing material. This grounds an original research topic within
its scholarly discourse, justifying the need for further investigation. Through this enriching
process, I have gained invaluable research and writing skills to apply in my dissertation study.
Analysing previous findings has armed me with deeper knowledge to undertake focused field
research examining cross-cultural intricacies in international marketing across targeted
regions. I am eager to build on these academic foundations to contribute my own empirical
insights to this critical domain.
References

Abugre, J.B. 2018, "Cross-cultural communication imperatives: Critical lessons for Western
expatriates in multinational companies (MNCs) in sub-Saharan Africa", Critical perspectives
on international business, vol. 14, no. 2/3, pp. 170-187.

Adamczyk, M. (2017). The Importance of Cultural Differences in International Business. The

Central European Review of Economics and Management, [online] 1(2), p.151. Available at:
https://www.econstor.eu/bitstream/10419/229732/1/cerem-v1-i2-335.pdf.

Gao, Y. (2023). The influence of cultural differences on marketing strategies of MNEs. SHS
Web of Conferences, 163, p.02036. doi:https://doi.org/10.1051/shsconf/202316302036.

Mortimer, G., Grimmer, M., Grimmer, L., Wang, S. & Su, J. 2022, "A cross cultural
examination of “off-price” fashion shopping", International journal of retail & distribution
management, vol. 50, no. 12, pp. 1494-1517.

Wang, D., Fan, D., Freeman, S. and Zhu, C.J. (2016). Exploring cross-cultural skills for
expatriate managers from Chinese multinationals: Congruence and contextualization. Asia
Pacific Journal of Management, [online] 34(1), pp.123–146.
doi:https://doi.org/10.1007/s10490-016-9474-z.