Session4 Nexus Culture

8/7/2019 Session4 Nexus Culture

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InternationalInternational

MarketingMarketingSession 4

The Impact of Culture

Xuemei Bian


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ObjectivesObjectivesTo create awareness of the cultural

factors impacting on:

Customer decision making Marketing management

To introduce different classifications ofculture


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Cultural EnvironmentCultural Environment

Culture is:the collective programming of the mind which

distinguishes the members of one group orcategory from those of another(Hofstede,

1991).

a learned, shared, compelling, interrelated setof symbols whose meanings provide a set oforientations for members of society. Theseorientations, taken together, provide solutions to

problems that all societies must solve if they areto remain viable(Terpstra and David, 1991).


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Cultural Environment Impacts on:Cultural Environment Impacts on:

All aspects of business and marketing relatedactivities, for example:

Customer decision making, preferences, needs.

Relationship with intermediaries

Managing sales staff

Acquiring customers

Managing employees

..


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A Model of CultureA Model of Culture

Hollensen, 2008, p. 141


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Example: Ikea Catalogue


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Differences in consumerDifferences in consumer

behaviour across culturesbehaviour across cultures

Hierarchies of needs which shape demand

across product categoriesCulture-based values which influence

purchasing behaviour and buyingdecisions

Usunier, p. 70.


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Instrumental and Social SocietiesInstrumental and Social Societies US/Instrumental

Tasks are key in a

competitive environment

Achievement matters

Life is about doing

Behavior

apan/Social

Relationships are key in a

cooperative environment

Values/Beliefs

BasicAxioms

Affiliation matters

Life is about being

Source: Andre Laurent, INSEAD


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Theory of Reasoned ActionTheory of Reasoned Action


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refers to ones unconscious reference toones own cultural values when

attempting to understand anotherculture.

Self-reference criterion (SRC)Self-reference criterion (SRC)


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Halls Communication

Context

Low-contextcultures High-contextcultures


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The contextualcontinuum of differing cultures


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Comparing low-

and high-context cultures (1)

Communication Explicit, direct Implicit, indirect

Characteristic Low-context High-context

Informal handshakesFormal hugs, bows,

and handshakes

Sense of self

and space


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Comparing low-


Time

consciousness

Linear, exact,

promptness is valued,time = money

Elastic, relative,

time = relationships


Nuclear family,

self-oriented,

value youth

Extended family,

other oriented,

loyalty

Family and

friends


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Comparing low-and high-context cultures (4)

Values and norms

Independence,

confrontationof conflict

Group conformity,

harmony


Egalitarian,

challenge authority,

gender equity

Hierarchical,

respect for authority,

gender roles

Beliefs and

attitudes


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Comparing low-


Mental process

and learning

Linear, logical,

sequential,

problem solving

Lateral, holistic,

acceptinglifes difficulties


Deal oriented, rewards

based on achievement

Relationship oriented,

rewards based

on seniority

Business/

work habits


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Comparing low-


Dress

and appearance

Varies widely,

dress for success

Indication of

position in society,religious rule


Eating is a

necessity, fast foodEating is social event

Food

and eating habits


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QuestionQuestion

Where would you allocateChina?India?


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Cross-Cultural ComparisonCross-Cultural Comparison

Hofstedes (1980) study focused on work-related cultural values held by employeesof IBM including 50 countries.4 dimensions:

Power distance

Masculinity

Uncertainty avoidance

Individualism


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Power distance extent to which less powerful members of asociety accept that power is distributed unequally.

Masculinity dominant values are achievement and success.feminine values such as caring for others andquality of life are less important.

Masculine countries show a gap between mens

values and womens values.


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Uncertainty avoidance

extent to which people feel threatenedby uncertaintyand ambiguity and try to avoid these situations.

Individualism

people look after themselves and their immediate

family only. In collectivist cultures people belong to in-groups who look after them in exchange for loyalty.


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Swiss website, featuring a girl listening to music on her own (http://www.mcdonalds.ch)
http://www.mcdonalds.ch/http://www.mcdonalds.ch/


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Indian website (late 2003) (http://www.mcdonaldsindia.com)
http://www.mcdonaldsindia.com/http://www.mcdonaldsindia.com/


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Discuss

Does a country have a homogenousculture?Is culture stable or does it change over

time? Why would it change?Does a global consumer culture exist?

What drives it?


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Category level Example Functionalmeaning

Symbolic meaning

Superordinate Fast Food Satisfies the need for aconvenient way to have

breakfast, lunch or dinnerwhen time matters (GCC)

Symbolises a fast-paced andmodern urban life style(GCC)

Basic Burger Satisfies the need for afilling, simple, quick, tastyand hearty meal (GCC)

May symbolise Westernlifestyle in one culture versussimple meal in another(GLCC/LCC)

Subordinate Burger varieties Satisfies the need for goodvalue at a reasonable price

(GCC)

Adapted to traditionalcultural schema to more

easily assimilate product(LCC)

GLL = Global Consumer Culture; GLCC = Global-Local consumer culture, LCC Local Consumer Culture.

(Source: Merz et al. 2008Nexus)


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Summary: Elements of CultureSummary: Elements of Culture

Languagea mirror of culture

spoken and silent language

Social interaction

how members of society relate to one another nuclear versus extended family

reference groups

Religion

EducationValue system


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Summary: Cultural Differences And TheirSummary: Cultural Differences And Their

Possible Impact On Selected Aspects OfPossible Impact On Selected Aspects Of

Consumer BehaviourConsumer Behaviour

Motivation to own, buy, spend, share Age

valuation of younger vs older people in society,

distribution of purchasing power across generationsGroup influence

individualism/collectivismDecision making

family models

childrens influence on decision making


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http://teresa.elearning.tvu.ac.uk/BAHospManGSMUnit3/Application.htm

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Session4 Nexus Culture