Professional Documents
Culture Documents
Intl MRKTG CHPT 5
Intl MRKTG CHPT 5
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Learning Objectives
• To understand the significance of culture in
international marketing decisions
• To elucidate the concept of culture and its
constituents
• To explain comparisons of cross-cultural
behaviour
• To discuss cultural orientation in international
marketing
• To explicate self reference criteria and
ethnocentrism
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Significance of Culture
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Constituents of Culture
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Value System
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Norms
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Aesthetics
• Ideas and perceptions that a cultural group
upholds in terms of beauty and good taste. It
includes areas related to music, dance,
painting, drama, architecture, etc
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Traditions and Customs
within a society.
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Language
A systematic means of communicating ideas or
feelings by the use of conventionalized signs,
gestures, marks, or especially articulate vocal
sounds.
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Religion
Religious beliefs significantly influence business decision
making.
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Comparison of Cross Cultural
Behavior
• An appreciation of cultural differences
facilitates international managers to
conceptualize and implement business
strategies in view of cultural sensitivities in
various countries.
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Hofstede’s Cultural Classification
Power distance: High vs. Low
The extent to which less powerful members of
an institution accept that power is distributed
unequally.
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High Power Distance
•High social inequalities tolerated with differences in power
and income distribution
•Organizational structures are hierarchical based an inequality
among superiors and subordinates
•Decision making is centralized
•Juniors blindly follow the orders of their superiors
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Low Power Distance
• Superiors and subordinates consider each
other equal
• Organizations are relatively flatter
• Decision making is decentralized
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Individualism vs. Collectivism
Individualism
The tendency of people to look after themselves and their immediate
family.
• Strong work ethics
• Promotions based on merit
• Involvement of employees is calculative
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Individualism vs. Collectivism (contd)
Collectivisms
The tendency of people to belong to groups and to look after
each other in exchange for loyalty. In such cultures, interest of
groups have precedence over individual interest
For instance, Guatemala, Pakistan, Singapore, Malaysia etc.
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Masculinity vs. Femininity
In masculine societies, the dominant values
emphasize on work goals, such as earnings,
advancement, success, and material belongings.
e.g. Japan, Switzerland, Great Britain, the US etc.
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Uncertainty Avoidance
The extent to which people feel threatened by ambiguous
situations.
In high uncertainty avoidance societies there is lack of
tolerance for ambiguity and the need for formal rules.
For instance, Greece, Portugal, Japan, France etc.
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Tromponaars’ Cultural Classification
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Universalism vs. Particularism
• Universalism: The belief that ideas and practices can
be defined and applied everywhere without
modification
e.g. the US, Australia, Germany, Sweden etc.
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Individualism vs. Communitarianism
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Neutral vs. Affective
Neutral Cultures: Cultures in which people tend to hold
back their emotions and try not to exhibit their feelings.
For instance, Japan, the UK, Singapore, Australia, etc.
Affective Cultures: Cultures where emotions are
expressed openly.
For instance, Mexico, Netherlands, Switzerland, China,
Brazil, etc.
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Specific vs. Diffused
Specific Cultures: Cultures in which individuals tend to
have a large public space which is readily shared, and a
smaller private space.
For instance, Australia, the UK, the USA and Switzerland.
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Other Cross-Cultural Classifications
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High Context vs. Low Context
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Homophilous vs. Heterophilous
Homophilous Cultures: Cultures where people share
beliefs, speak the same language, and practice the same
religion.
For instance, Japan, Korea and Scandinavian countries.
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Polychronic vs. Monochronic
Polychronic Cultures: Cultures in which time schedules and deadlines
are flexible and relationships take precedence.
For instance, India, Thailand, Philippines, UAE, Egypt, Brazil, Russia
etc.
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Expressive vs. Reserved Cultures
Expressive cultures: people are more expressive
with direct eye contact.
For instance, Russia, Poland, Romania, USA,
Australia, and Canada
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Parochialism vs. Simplification
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Self Reference Criterion (SRC)
• An unconscious reference to one’s own
cultural values, experiences, and knowledge
as a basis for decision-making. SRC
significantly influences ability of international
managers to objectively evaluate
environmental factors and make business
decision.
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Approach to Eliminate SRC
Step 1: Define the business problem or goal in home-
country traits, habits, or norms.
Step 2: Define the business problem or goal in foreign
country cultural traits, habits, or norms.
Make no value judgments.
Step 3: Isolate the SRC influence in the problem and
examine it carefully to see how it complicates
the problem.
Step 4: Redefine the problem without the SRC
influence and solve for the optimum business
goal situation.
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