International Marketing

Professor Nripendra P. Rana

PhD, MBA, PGCtHE, FHEA, SFHEA
Professor of Marketing, College of Business and
Economics, Qatar University, Doha, Qatar
The International Marketing
Environment
 3

Learning Objectives
After studying this chapter, you should be able to know:

o The origins and elements of culture.

o The importance of culture to international marketers.
o The impact of culture on International Marketing.
Cultural Dimensions

International Marketing
 Cultural dimensions 5

Geert Hofstede’s Cultural Dimensions

o Studied more than 90,000 people, across 66 countries around

the world, since 1967
o The cultures of the nations differed along four primary
dimensions
o Two additional dimensions discovered in later research studies
o Subsequently, other researchers have determined that a wide
variety of business and consumer behavior patterns are
associated with three of those four dimensions
 Cultural dimensions 6

Geert Hofstede’s Cultural Dimensions

o Individualistic/Collective Index (IDV): focuses on self-

orientation

o Power Distance Index (PDI): focuses on authority orientation

o Uncertainty Avoidance (UAI): focuses on risk orientation

o Masculinity/Femininity Index (MAS): focuses on assertiveness

and achievement
 Cultural dimensions 7

Individualism vs. Collectivism (IDV)

o The extent to which one’s self-identity is defined according

to individual characteristics or by the characteristics of the
group to which the individual belongs

o The importance of social bonds in people’s lives

o The extent to which individual or group interests dominate

 Collectivistic Countries: Asian countries, African countries

 Individualistic Countries: Switzerland, United States, UK
 Cultural dimensions 8

Individualism vs. Collectivism (IDV)

o The Individualism/Collectivism Index refers to the preference for

behavior that promotes one’s self-interest
 Cultures that score high in IDV reflect an « I » mentality and tend to
reward and accept individual initiative, whereas
 Those low in individualism reflect a « we » mentality and
generally subjugate the individual to the group
Cultural dimensions 9
 Cultural dimensions 10

Power Distance Index (PDI)

o Measures the tolerance of social inequality, that is, power

inequality between superiors and subordinates within a social
system

 Cultures with high PDI scores tend to be hierarchical, with

social roles and inheritance as sources of power and social
status

 Cultures with low PDI scores, tend to value equality and cite
knowledge and respect as sources of power
 Cultural dimensions 11

Power Distance Index (PDI)

o High PDI: Latin European Countries, Latin American countries,

Arab conutries, African countries

o Low PDI: Scandinavian countries, Anglo-Saxon countries

Cultural dimensions 12
 Cultural dimensions 13

Uncertainty Avoidance Index (UAI)

o Measures the tolerance of uncertainty and ambiguity among
members of a society

o Cultures with high UAI are highly intolerant of ambiguity and as

a result tend to be distrustful of new ideas or behaviors

o They tend to have a high level of anxiety and stress and a

concern with security and rule following

o Accordingly, they strongly stick to historically tested patterns of

behavior
 Cultural dimensions 14

Uncertainty Avoidance Index (UAI)

o Those with very high UAI scores thus accord a high level of
authority to rules as a means of avoiding risk

o High uncertainty avoidance => high levels of anxiety

 Search for stability, order, and discipline

 Use plans and forecasts, standardisation of procedures,

regulations and laws, etc.
o Cultures scoring low in uncertainty avoidance are associated with
a low level of anxiety and stress and a willingness to take risk
 Cultural dimensions 15

Uncertainty Avoidance Index (UAI)

HIGH LOW
Scandinavian and
Latin Europe (France, anglo-saxon
Italy, Spain) countries

South America South East Asia

(Mexico, Chili,
Argentina…),
India,
Japan African countries
Cultural dimensions 16
 Cultural dimensions 17

Masculinity vs. Feminity (MAS)

o The extent to which traditional male orientations of ambition,

achievement and heroism are emphasised over traditional
female orientations of nurturance and interpersonal
harmony
Cultural dimensions 18
 Cultural dimensions 19

Short Term vs. Long Term Orientation (LTO)

o Short term oriented societies are more rooted in the present and
the past, try to maintain traditions and inherited habits

o Long term oriented societies look more towards the

future, has a more pragmatic look at things and
prepares for the future by determination and adaptation
Cultural dimensions 20
 Cultural dimensions 21

Indulgence versus Restraint (IND)

o Indulgent societies are more tolerant towards enjoying life,

having fun and freedom of expression

o Societies with high restraint put more constraints on

individual freedom, and values more strict social norms
Cultural dimensions 22
Cultural dimensions 23
 24

How can we identify and discover these

?dimensions of a certain country

o This can be done through:

o Some sources available electronically.
https://www.hofstede-insights.com/product/compare-countries/

o Some published scientific research studies.

 Understanding the cultural environment 25

Cultural Dimensions:

o Power Distance Index (PDI)

o Individualism vs. Collectivism (IDV)
o Uncertainty Avoidance Index (UAI)
o Masculinity vs. Feminity (MAS)
o Short Term vs. Long Term Orientation (LTO)
o Indulgence versus Restraint (IND)
 26

Any Questions??