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Deep cultural under-currentsstructure life in subtle but highlyconsistent ways that are notconsciously formulated. Like the

invisible jet streams in the skies thatdetermine the course of a storm,these currents shape our lives; yettheir influence is only beginning to

be identified.

Edward T. Hall

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Culture is a learned, shared, compelling,interrelated set of symbols whose meanings

provide a set of orientations for members of asociety. These orientations, taken together,provide solutions to problems that allsocieties must solve if they are to remainviable. Terpstra and David (1985)

Culture is the collective mental programmingof individuals in a society as a result ofcommon background, education, and life

experiences. Hofstede (1980)

Culture is the man-made part of theenvironment. Herkovits (1948)

WHAT IS CULTURE?

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IMPACT OF CULTURE ON

MARKETING DECISIONS

CustomerCustomerCultureCulture

LifestyleLifestyle Behavior PatternsBehavior Patterns

Actions in MarketplaceActions in Marketplace

Impact on FirmsImpact on Firms

Marketing DecisionsMarketing Decisions

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ELEMENTS OF CULTURE

Material Culture:

Technology & Economics

Social Organization:

Institutions

Education

Politics

Belief Systems

Language

Aesthetics

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FUNCTIONS OF CULTURE

Acquisition of food, clothing, and shelter.

Protection from human enemies and natural

disasters

Regulation of sexuality.

Child raising and instruction in socially approvedand useful behavior.

Division of labor among humans.

Sharing and exchanging the product of humanwork.

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FUNCTIONS OF CULTURE (Contd.)

Providing social controls against deviantbehavior.

Providing incentives to motivate persons to want

to do what they have to do.

Distributing power and legitimizing the wieldingof power to allow setting of priorities, makingdecisions, and coordinating actions that obtain

social goals. Providing a sense of priorities (values) and an

overall sense of worth (religion) to social life.

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MAJOR CULTURAL FRAMEWORKS

Kluckhohn and Strodtbeck (1961)

Hall and Hall (1990)

Hofstede (1980)

Trompenaars (1993)

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KLUCKHOHN AND STRODTBECK (1961)

Nature of People: Good, Bad, or aCombination.

Relationship Between People:Individualism or Groupism.

Primary Mode of Activity: Being or Doing?

Conception of Space: Private or Public?

Dominant Temporal Orientation: Past,Present, or Future?

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HALL AND HALL (1990)

Context, or the amount of explicit information incommunication.

Space, or the ways of communicating through

specific handling of personal space.

Time, which is either monochronic (schedulingand completing one activity at a time) orpolychronic (not distinguishing between the

activities and completing them simultaneously). Information flow, which is the structure and speed

of messages between individuals andorganizations.

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Intl. 3:10

HIGH AND LOW CONTEXT CULTURES

FACTOR HIGH LOW

Lawyers Less Important More

Persons Word Is his/her bond Get it in writing

Resp. for Error Highest Level Pushed to lowest level

Space Breathe on each Bubble of privateother. space.

Time Polychronic Monochronic andlinear.

Negotiations Lengthy Proceed quickly.

Competitive Bid Infrequent Common

Examples Japan, Mid-East U.S., N. Europe

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Intl. 3:11

HALLS SILENT LANGUAGES

Language of Time

Language of Space

Language of Things

Language of Friendship

Language of Agreements

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CONTEXTUAL BACKGROUND OF VARIOUSCOUNTRIES

Arabian

Latin American

Spanish

Italian

English (UK)

French

North America (US)

Scandinavian

Swiss

German

High ContextIMPLICIT

EXPLICIT

Japanese

Low Context

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Intl. 3:13

High-Context Low-Context

Crucial to Communications:external environment, situation, non-verbal behavior

explicit information, bluntcommunicative style

Relationships:

long lasting, deep personal mutualinvolvement

short duration, heterogeneouspopulations

Communication:economical, fast because of shared "code" explicit messages, low reliance on non

verbalAuthority person:

responsible for actions of subordinates,loyalty at a premium

diffused through bureaucratic system,personal responsibility tough to pin

downAgreements:

spoken, flexible and changeablewritten, final and binding, litigious,more lawyers

Insiders vs. outsiders: very distinguishable difficult to identify, foreigners can adjust

Cultural pattern change:

slow faster

HIGH/LOW CONTEXT CULTURES

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Intl. 3:14

CONTRASTING COMMUNICATION STYLES

Indirect

Implicit, Nonverbal

Formal

Goal Oriented

Emotionally

controlled Self-effacing, modest

Direct

Explicit, verbal

Informal

Spontaneous

Emotionally

expressive Self-promoting,

egocentric

Traditional Asian HighContext Cultures Australian LowContext Culture

Adapted from Chan (1992)

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Intl. 3:15

Individualism/Collectivism: Individualism impliesa loosely knit social framework in which peopleare supposed to take care of themselves and their

immediate families only whereas collectivism ischaracterized by a tight social framework in whichpeople distinguish between in-groups and out-groups; they expect their in-group (relatives,clans, organizations) to look after them, and in

return they owe absolute loyalty to the in-group.

HOFSTEDE'S DIMENSIONS OF CULTURE

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INDIVIDUALISM/COLLECTIVISM

COLLECTIVISTPeople born into extended families

or other in-groups which

continue to protect them in

exchange for loyalty.

High-context communication.

Employer-employee relationship

perceived in moral terms, like a

family link.

Management is management of

groups.

Relationship prevails over task.

INDIVIDUALISTEveryone grows up to look after

him/herself and his/hernuclear family.

Low-context communication.

Relationship between employer-

employee perceived as

contract based on mutualadvantage.

Management of individuals.

Task prevails over relationship.

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Intl. 3:17

Power Distance: is the extent to which a societyaccepts the fact that power in institutions andorganizations is distributed unequally. It is

reflected in the values of the less powerfulmembers of a society as well as those of the morepowerful members.

HOFSTEDE'S DIMENSIONS OF CULTURE

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Intl. 3:18

EXAMPLE OF SMALL PDI

Stockholm, December 23, 1988. The Swedish King Carl

Gustav this week experienced considerable delay whileshopping for Christmas presents for his children, when

he wanted to pay by cheque but could not show hischeque card. The salesperson refused to accept thecheque without legitimation. Only when helpfulbystanders dug in their pockets for one-crown pieces

showing the face of the king, the salesperson decided to

accept this legitimation, not however, without testing thecheck for authenticity and noting the name and addressof the holder.

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Intl. 3:19

POWER DISTANCE

Small PDIInequalities among people should

be minimized.

Parents treat children as equals,

and vice versa.

Decentralization is popular.

Ideal boss: resourceful democrat.

Privileges and status symbols arefrowned upon.

Large PDIInequalities both expected and

desired.

Parents teach children obedience.

Centralization is popular.

Ideal boss: benevolent autocrat or

good father.

Privileges and status symbols areboth expected and popular.

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Intl. 3:20

Uncertainty Avoidance: indicates the extentto which a society feels threatened byuncertain and ambiguous situations and tries

to avoid these situations by providing greatercareer stability, establishing formal rules, nottolerating deviant ideas and behaviors, andbelieving in absolute truths and theattainment of expertise. Strong uncertainty

avoidance societies tend to be characterizedby a higher level of anxiety andaggressiveness.

HOFSTEDE'S DIMENSIONS OF CULTURE

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Intl. 3:21

UNCERTAINTY AVOIDANCE

Weak UAIUncertainty considered normal feature and

each day is accepted as it comes.

Low stress and anxiety.

Comfortable in ambiguous situations and with

unfamiliar risks.

What is different, is curious.

No more rules than is strictly necessary.

Precision and punctuality have to be learned.

Tolerance of deviant and innovative ideas.

Strong UAI

Uncertainty in life felt as a continuous

threat to be fought.

High stress and anxiety.

Fear of ambiguous situations and

unfamiliar risks.

What is different, is dangerous.

Emotional need for rules, even if

unworkable.

Precision and punctuality come

naturally.

Suppression of deviant ideas and

resistance to innovation.

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Intl. 3:22

Masculinity/Femininity: In a masculinesociety, the dominant values areassertiveness, the acquisition of money and

things, and not caring for others. In afeminine society, the values of quality of life,caring for the underdog, and nurturing takeprecedence over purely materialistic pursuits.

HOFSTEDE'S DIMENSIONS OF CULTURE

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LONG VS. SHORT-TERM

ORIENTATION

Short-TermRespect for traditions, social and

status obligations regardless ofcosts.

Social pressure to "keep up with

the Joneses" even if over-

spending.

Little money for investment.Quick results expected.

Concern with possessing the truth.

Long-TermAdaptation of traditions to a

modern context.Respect for social and status

obligations within limits.

Thrift, being sparing with

resources.

Large savings, funds available forinvestment.

Perseverance towards slow

results.

Concern with respecting the

demands of virtue.

Masculinity/Femininity and Uncertainty Avoidance

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Intl. 3:25

Weak Uncertainty

Avoidance Feminine

Weak Uncertainty

Avoidance Masculine

Strong Uncertainty

Avoidance Feminine

Strong Uncertainty

Avoidance Masculine

Uncertainty

Avoidance I

nde

x

0

112

10 100Masculinity Index

41

2

5

6

10

98

7

3

Example

Countries*:

1. Norway

2. Malaysia

3. Jamaica

4. U.S.A.

5. Taiwan

6. Costa Rica

7. Australia

8. Mexico9. Japan

10. Greece

*For complete

list, see text

Source: GeertHofstede, Cultures and

Organizations,

Masculinity/Femininity and Uncertainty Avoidance

10

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Intl. 3:26Power Distance Index

0

112

10 110

Small Power

Distance

Collectivist

Large Power

Distance Collectivist

SmallPower

Distance

Individualist

Large Power

Distance

Individualist

4

1

2

3

5

6

Individualis

m

Ind

ex

Example

Countries*:

1. Costa Rica

2. Korea andMexico

3. Brazil & India

4. Israel and

Ireland

5. Australia andU.S.A.

6. France and

Italy

*For complete

list, see text.Source: GeertHofstede, Cultures and

Organizations,

McGraw-Hill: London:

1991, pp. 23, 51, 83 &

111.

Power Distance and Individualism-Collectivism

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FONS TROMPENAARS VALUE

ORIENTATIONS

Universalism vs. Particularism: one rule for all occasionsor flexibility and adjustment to circumstances.

Communitarianism vs. Individualism

Neutral vs. Emotional: are emotions acceptable in

business? Encourage vs. avoid open display of feelings. Specific vs. Diffuse: can relationships be strictly business-

specific?

Achievement vs. Ascription: achieved status is based onachievement and track-record whereas ascriptive status

based on hierarchy, age, etc.

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MANIFESTATIONS OF CULTURE AT DIFFERENT

LEVELS OF DEPTH

Values

RitualsHeroes

Symbols

Practices

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MANIFESTATIONS OF CULTURE

Symbols: Words, gestures, pictures, or

objects that carry a particular meaning

which is only recognized by those whoshare that culture. New symbols are

easily developed and old ones disappear.

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Heroes are persons alive or dead, real or

imaginary, who possess characteristics

which are highly prized in a culture, andwho thus serve as models of behavior.

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Rituals are collective activities, which within a

culture are considered as socially essential.

Examples are ways of greeting and paying

respect to others, social and religious

ceremonies, etc.

Symbols, heroes, and rituals can be subsumed

under "practices," they are visible to anoutsider but their cultural meaning is invisible.

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VALUES

The core of culture is formed by values, i.e.,

broad tendencies to prefer certain state of

affairs over others. Values are among thefirst things children implicitly learn. By

age ten, most children have their value

system firmly in place. Because values are

acquired so early in our life, most of usremain unconscious of their existence.

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CULTURAL VARIABLES AND MARKETING

Cultural Variable Product Promotion Price Distribution Research

Material Culture

Language

Education

Aesthetics

Values/AttitudesSocial Organization

Political/Legal

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LIFE GOALS

6.2

35.4 5.8 41.2 6.8 10.8

5.1 77.3 9.5

11.2

3.7

9.0

6.7

22.3

7.7

13.9

1.7

5.1

33.39.6

16.7

63.4

60.6

76.0

16.246.2

63.2

72.3

84.8

1.8

2.98.6

5.5

10.9

7.5

10.5

26.322.0

11.9

7.5

3.4

17.8

3.49.2

2.5

1.6

21.71.8

0.5

0.5

7.1 16.4 62.2 10.9 3.4

To get

Rich Acquire Social Position

Live As I Choose

No Answer

France

Japan

US

UK

Germany

Australia

India

Brazil

Work on behalf of Society

Sweden

Switzerland

Philippines

Source:PrimeSource:Prime

Ministers Office,Ministers Office,

How Youth SeeHow Youth See

Life,Focus Japan,Life,Focus Japan,Dec. 1978.Dec. 1978.

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IN CONCLUSION

Most of culture lies hidden and isoutside voluntary control, makingup the warp and weft of human

existence. It penetrates to the rootsof [an individuals] nervous systemand determines how he perceivesthe world. Even when small

fragments of culture are elevated toawareness, they are difficult tochange.

Ed d T H ll