Cultural Dynamics in

Assessing Global Markets

International marketing requires constant concern for

different cultures and therefore requires adaptation.
Self-reference criterion - a tendency to rely on one
own cultural values, personal experience and
knowledge as the primary basis for making decisions.
The SRC must be effectively overcome in order to
adapt marketing programs to foreign countries.

Elements of Culture:
1) Language
Context

2) Religion
3) Values and Attitudes
4) Manners/Customs
5) Material Elements
Infrastructure
Convergence

6)
7)
8)

Aesthetics
Education
Social Institutions
Learning about other cultures
experiential knowledge
factual knowledge

Key Concepts
High-context culture
is where the social context in which what is said
strongly affects the meaning of the message.
Examples: Japan and Saudi Arabia

Low-context culture
is where the meaning of the message
is explicitly expressed by the words and is
less affected by the social context.
Example: North America

Contextual Background of
Various Countries
Japanese
Arabian
Latin American
Spanish
Italian
English (UK)
French
North American (US)
Scandinavian

Low
Context
Explicit

German
Swiss

High
Context
Implicit

Language
Verbal

How words are spoken

Gestures made
Body position assumed
Degree of eye contact

Local language capabilitys

important role in international marketing

Aids in information gathering and evaluation

Provides access to local society
Important to company communications
Allows for interpretation of contexts

Nonverbal Language
Hidden language of cultures
Time flexibility and sensibility
Social acquaintance and rapport
Personal physical space and personal touching
Non-verbal gestures and signaling

Fractured Translations
English Translations made by Japanese firm added to labels
to increase prestige for their products being sold in China.
Product

English Translation

Equivalent to Japanese Spam

Liver Putty

Toilet Paper

My Fanny Brand

Ready to Eat Pancakes

Strawberry Crap Dessert

Antifreeze Spray

Hot Piss Brand

Pediatricians Slogan

Specialist in Deceased
Children

SOURCE: Some Strawberry Crap Dessert, dear South China Morning Post,
December 9, 1996 p. 12.

Whose English?

4-8

United States
Kingdom

United

Trunk

Boot

Hood

Bonnet

Convertible Top

Hood

Elevator

Lift

Toilet

W.C.

Bathroom

Tub or Shower

Vacuum

Hoover

???

Shag

Bloody

???

Irwin/McGraw-Hill

Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

The Major World Religions

Christianity - 2.0 billion followers

Islam - 1.2 billion followers
Hinduism - 860 million followers
Buddhism - 360 million followers
Confucianism - 150 million followers

Religion
Marketing in an Islamic Framework
Elements
A. Unity. (Concept of Centrality,
oneness of God, harmony in
life.)
B. Legitimacy. (Fair dealings,
reasonable level of profits.)

C. Zakat. (2.5% per annum

compulsory tax binding on all
classified as not poor.

Implications for Marketing

Product standardization, mass media techniques, central
balance, unity in advertising copy and layout, strong brand
loyalties, a smaller evoked set size, loyalty to company,
opportunities for brand extension strategies.
Less formal product warranties, need for institutional
advertising and/or advocacy advertising, especially by
foreign firms, and a switch from profit-maximizing to a
profit-satisficing strategy.
Use of excessive profits, if any, for charitable acts;
corporate donations for charity, institutional advertising.

Source: Mushtaq Luqmani, Zahir A Quraeshi, and Linda Delene, Marketing in Islamic Countries:
A Viewpoint, MSU Business Topics, Summer 1980, pp. 20-21. Reprinted by permission.

Values and Attitudes

Values
are shared beliefs or
group norms that
have been
internalized by
individuals.

Attitudes
are evaluations
of alternatives
based on these
values.

Work and Leisure

Attitudes Toward Work:
Have a Substantial Impact on Economic
Performance
Vary Greatly Among Countries

Work and Leisure

Country
Austria
Australia
Canada
Chile
Germany
Greece
France
Hungary
Ireland
Italy
Japan
Mexico
S. Africa
Spain
U.K.
U.S.A.

Work Hrs.
1,744
1,847
1,892
2,400
1,704
1,775
1,790
1,756
1,727
1,721
1,893
2,094
1,999
1,721
1,880
1,946

Work/Fun Comp. Sup.

5.72
5.50
5.44
5.93
6.59
7.06
6.23
7.19
5.2
5.87
4.6
4.38
6.33
5.74
5.14
4.11
6.37
6.46
5.32
5.12
5.4
7.37
5.51
4.83
4.65
3.71
5.41
4.68
4.5
5.53
5.37
6.54

Values of Selected
Countries*
Work Hrs. = Average
number of working hours
per year.
Work/Fun = Young peoples
desire to work/learn vs.
have fun. (0 for fun - 10 for
work/learn).
Comp. Sup. = Societys
support of competitiveness
(0 for least support - 10 for
most support).
Source: The World
Competitiveness Yearbook
1996, (Lausanne: IMD,
1996), pp. 556, 579, 581.
*See text for complete listing of
countries and statistics.

Cultural Analysis for

International Marketing
Cultural Dimensions

Individualism vs. Collectivism

Small vs. Large Power Distance
Masculine vs. Feminine
Weak vs. Strong Uncertainty Avoidance

*Source of this entire list: Philip R. Harris and Robert T. Moran: Managing Cultural
Differences, 2nd ed. (Houston: Gulf, 1987) pp. 212-215.

Power Distance and Individualism-Collectivism

Small Power
Distance
Collectivist

Individualism Index

Large Power
Distance Collectivist

1. Costa Rica
2. Korea and
Mexico
3. Brazil & India
4. Israel and
Ireland
5. Australia and
U.S.A.
6. France and
Italy

2
3

Small
Power
Distance
112
Individualist
10

Example
Countries:

Large Power
Distance
Individualist
110

Power Distance Index

Source: Geert
Hofstede, Cultures and
Organizations,
McGraw-Hill, 1991, pp.
23, 51, 83 & 111.
Reprinted with
permission of the
McGraw-Hill
Companies.

Manners and Customs

Potential problem areas for
marketers arise from an
insufficient understanding of:
different ways of thinking.
the necessity of saving face.
knowledge and understanding
of the host country.
the decision-making process
and personal relations.
the allocation of time
for negotiations.

A house should be dusted and

polished three times a week

Italy
89%
United Kingdom
France 55
Spain 53
Germany
45
Australia
33
United States 25

59

I attend church regularly

Spain 77%
Italy
75
Germany
70
United States 65
United Kingdom
France 23
Australia
16

36

My children are the most

important thing in my life

Germany
Italy
France
United States
Spain
Australia

86%
84
73
71
67
48

There is too much emphasis on

sex nowadays

United Kingdom
Italy
United States
France
Australia
Germany

82%
79
66
52
31
24

Everyone Should Use a Deodorant

United States
Canada
United Kingdom
Italy
France
Australia

89%
79
71
69
59
53

Cultural Factors
Never touch the head of a Thai or pass an object over it. The
head is considered scared in Thailand.
Avoid using triangular shapes in Hong Kong, Korea, and
Taiwan. It is considered a negative shape.
The number 7 is considered bad luck in Kenya, good luck in
Czech Republic and has a magical connotation in Benin, Africa.
The number 10 is bad luck in Korea.
The number 4 means death in Japan.
Red represents witchcraft and death in many African countries.
Red is a positive color in Denmark.

SOURCE: Business America, July 12, 1993

Its Not the Gift That Counts, but How Your Present It

Japan
4-4

Do not open a gift in front of a Japanese

counterpart unless asked, and do not expect the
Japanese to open your gift.
Avoid ribbons and bows as part of the gift wrapping.
Bows as we know them are considered unattractive,
and ribbon colors can have different meanings.
Do not offer a gift depicting a fox or badger. The fox
is the symbol of fertility; the badger, cunning.

Europe

Avoid red roses and white flowers, even numbers,

and the number 13. Do not wrap flowers in paper.
Do not risk the impression of bribery by spending
too much on a gift.

Irwin/McGraw-Hill

Copyrightby
2002
by The McGraw-Hill
Companies,
Inc.rights
All rights
reserved.
Copyright2002
The McGraw-Hill
Companies,
Inc. All
reserved
.

Its Not the Gift That Counts, but How Your Present It
Arab World

Do not give a gift when you first meet someone. It

may be interpreted as a bribe.
Do not let it appear that you contrived to present the
gift when the recipient is alone. It looks bad unless
you know the person well. Give the gift in front of
others in less personal relationships.

4-5

Latin America

Do not give a gift until after a somewhat personal

relationship has developed unless it is given to
express appreciation for hospitality.
Gift should be given during social encounters, not in
the course of business.

China

Never make an issue of a gift presentationpublicly

or private.
Gifts should be presented privately, with the
exception of collective ceremonial gifts at banquets.

Irwin/McGraw-Hill

Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Material Elements
Material culture
Results from technology and is directly related to
how a society organizes its economic activity.
Material culture is manifested in

Economic infrastructure
Social infrastructure
Financial infrastructure
Marketing infrastructure
Cultural convergence

The degree of industrialization

can provide a marketing
segmentation variable.

Aesthetics
What is or is not acceptable as good taste
varies widely in cultures.
The symbolism of colors, forms, and music
carries different meanings in different
cultures.

Education
Assessing the educational level of a culture
formal and informal education
literacy rates
enrollment in secondary
or higher education
qualitative aspects of
emphasizing science

Education affects
employee training
competition for labor
product characteristics

Education

Educational Statistics of Selected Countries (in %)*

Country
Austria
Australia
Canada
Chile
Germany
France
India
Ireland
Italy
Japan
Mexico
South Africa
Spain
United Kingdom
United States

Secondary
104
82
104
72
97
101
44
101
76
97
55
69
108
86
90

University
37
40
99
23
36
46
6
38
34
32
14
14
40
28
46

Literacy
98
99
98
95
99
99
52
99
97
100
87
82
95
99
100

*See text for complete listing of countries and

statistics.

Secondary = Percentage of relevant

age group receiving full time
secondary education. Scores in
excess of 100% indicate adults also
participating in that education.
University = Percentage of
population 20 - 24 years old enrolled
in higher education
Literacy = Percentage of Population
over 15 years old
Source: The World Competitiveness
Report 1996 (Lausanne: IMD, 1996),
pp. 560, 561, 567.

Social Institutions
Kinship relationships
immediate and extended family

Social stratification
Reference groups
Primary reference groups
family, coworkers

Secondary reference groups

professional associations,
trade organizations

The Family
Family Roles Display Great
Variances between Cultures
Nuclear Family

Country
Austria
Australia
Canada
Chile
Germany
Greece
France
Ireland
Italy
Japan
Mexico
S. Africa
Spain
U.K.
U.S.A.

The Family

Pop. Growth Fem. Work

0.6
41
1.4
43
1.3
45
1.6
32
0.5
42
0.5
36
0.5
44
0.1
33
0.1
38
0.4
41
2.1
31
2.3
37
0.2
36
0.3
43
0.9
46

*See text for complete listing of countries and

statistics.

Family Statistics of Selected

Countries (in %)*
Pop. Growth = Population Growth:
percentage per year, 1985-1995.
Fem. Work = Female participation in the
labor force as a percentage of the total
labor force, 1995.
Source: 1997 World Bank Atlas,
Washington, DC: World Bank, 1997, pp.
16-17.

The Training Challenge - Global Managers

Internal education programs that increase cultural
sensitivity
Culture-specific information
Culture-general information
Self-specific information

Specialized training for global managers

Area studies
Environmental briefings
Cultural orientation programs

Cultural assimilator
Sensitivity training
Field experience