Marketing 4270 Test 1 SG (ch. 1-4)Chapter 1Know what four events and trends affecting global business today stand out as the most dynamic. (p. 6)

1. The rapid growth of the World Trade Organization and new free trade agreements around the world

2. The trend toward the acceptance of the free market system among developed countries in Latin America, Asia, and Eastern Europe

3. The burgeoning impact of the internet, mobile phones, and other global media on the dissolution of national borders

4. The mandate to manage the resources and global environment properly for the generations to come

Be able to explain the meaning of the comment that “… every American company is international.” (p. 6)

Its business performance is conditioned in part by events that occur abroad.o Even companies that do not operate in the international arena are

affected to some degree by the European Union, the export-led growth in South Korea, the revitalized Mexican economy, the economic changes taking place in China, military conflicts in the Middle East, and the climate change.

Know which countries have the highest level of direct foreign investment in the U.S. (p. 7)

United Kingdom Netherlands Japan Germany Switzerland

Where is the brand name “Bimbo” associated with bread (and the term does not mean what it does in the U.S.)? (p. 9)

Spain, Mexico, and other Spanish speaking countrieso has no pejorative meaning

Know the companies that are considered to be the U.S. leaders with foreign revenues. (see Exhibit 1.2) (p. 10)

High to lowo Walmarto Fordo GEo CitiGroupo Hewlett-Packardo Boeingo Intelo Coca-Colao Apple

o StarbucksWhen it comes to firms venturing into international marketing for the first time, know what the requirement is (requirements are). (p. 9-10)

A thorough and complete commitment to foreign markets and new ways of operating.

Know the definition of “international marketing” as well as the only difference between the definitions of domestic and international marketing. (p. 10-11)

International Marketing: The performance of business activities designed to plan, price, promote, and direct the flow of a company’s goods/services to consumers or users in more than on nation for a profit

o Domestic is different from international marketing because international marketing activities take place in more than one country.

Know and be able to explain the difference between uncontrollable and controllable elements of the environment in which businesses operate. (p. 11-13)

Uncontrollable: the marketer must actively evaluate and, if needed, adapt Controllable: can be altered in the long run and usually in the short run as well

to adjust to changing market conditions, consumer tastes, or corporate objectives

Be able to explain the total environment of an international marketer including the difference between political/legal forces, economic forces, competitive forces, level of technology, structure of distribution, geography and infrastructure, and cultural forces. Also, be able to explain the elements of the uncontrollable foreign environment as well as the uncontrollable domestic environment (see Exhibit 1.3). (p. 11-15)

Political/legal forces are controllable Economic forces, competitive forces, level of technology, structure of

distribution, geography and infrastructure, and cultural forces are foreign environment, uncontrollable

Domestic Uncontrollable: factors in a company’s home country over which the company has little or no control or influence

Foreign Uncontrollable: factors in the foreign market over which a business is operating in its home country and has little or no control or influence

Know what the terms “environmental adaptation” and cultural conditioning mean and what it involves. (p. 15-16)

Environmental adaption: to adjust and adapt a marketing program to foreign markets, marketers must be able to interpret effectively the influence and impact of each of the uncontrollable environmental elements on the marketing plan for each foreign market in which they hope to do business

Cultural Conditioning: is like an icebergo we are not aware of nine-tenths of it

Know what the “task of cultural adjustment” refers to and how challenging and important it is to international marketers. (p. 15-16)

Adjusting marketing efforts to cultures to which one is not attuned;o Frame of reference

Marketers must be aware of what frame of reference they are using to make decisions or evaluate the potential of a market.

Know what the text identifies as the key to successful international marketing. (p. 16) Adaption to environmental differences from one market to another

Be able to define “self-reference criterion” and explain how it might influence human behavior when it comes to international marketing. (p. 16-17)

Self-Reference Criterion: the unconscious reference to one’s own cultural values, experiences, and knowledge as a basis for decisions

o Prevents you from being aware of cultural differences or from recognizing the importance of those differences

o Impede the ability to assess a foreign market in its true lightKnow the steps (in order) that the knowledgeable marketer should take to avoid errors in business decisions. (p. 17-18)

1. Define the business problem or goal in home-country cultural traits, habits, or norms

2. Define the business problem or goal in foreign-country cultural traits, habits, or norms through consultation with natives of the target country. Make no value judgments

3. Isolate the SRC influence in the problem and examine it carefully to see how it complicates the problem

4. Redefine the problem without the SRC influence and solve for optimum business goal situation

Know and be able to describe the stages of international marketing involvement. (p. 19-22)

1. No Direct Foreign Marketing Does not actively cultivate customers outside national boundaries Products may reach foreign markets Sales may be made to trading companies or foreign customers who directly

contact the firm Products may reach foreign markets via domestic wholesalers or distributers

who sell abroad without the encouragement/knowledge of the producer.2. Infrequent Foreign Marketing

Temporary surpluses cause infrequent marketing Little or no change is seen in the company organization or product lines Approaches to strategic decisions in firms involved in international markets:

3. Regular Foreign Marketing: Devoted to the production of goods and services to be marketed in foreign

markets Company is dependent on foreign sales and profits to meet its goals

4. International Marketing: Fully committed to international marketing

Example) Fredders ACs: went into China with their product and found it needed to redesign its product for Chinese consumers.

5. Global Marketing:

The world is one market Market segmentation isn’t based on national borders, but rather on income

level, usage patterns, or other patterns that span across countries and regions

More than half its sales revenue come from abroad The entire operation takes on a global perspective For example, Proctor and Gamble may pursue a global strategy for

disposable diapers bug a multi-domestic strategy on Asian markets for detergents

Know and be able to describe the three relatively distinct approaches to strategic decisions in firms involved in international markets. (p. 20)

1. Companies with either a high technology and/or marketing-based resources appear to be better equipped to internationalize than more traditional manufacturing kinds of companies

2. Smaller home markets and larger production capacities appear to favor internationalization

3. Firms with key managers well networked internationally are able to accelerate the internationalization process

Be able to define and explain “global orientation.” (p. 21-23) Operating as if all the country markets in a company’s scope of operations were

one single global market Standardizing the market mix so it’s culturally feasible and cost effective

Chapter 2Know which four countries the U.S. trades with the most (in order) (see Exhibit 2.1). (p. 28)

1. Canada2. China3. Mexico4. Japan

Know the name of the plan that was used after World War II to rebuild and reinvigorate war ravaged countries. (p. 29-30)

Marshall PlanKnow how/why a contributing cause of the Great Depression was the Smoot-Hawley Act and how GATT was used after World War II. Also, know what organization GATT became part of (after the “Uruguay Round of tariff negotiations”). (p. 29, 30, 45-47)

The Smoot-Hawley Act had sent international trade to a halt after WWI when other nations followed the U.S.’s example set by this act.

o Raised the U.S. tariffs on more than 20,000 imported goods to levels in excess of 60%.

o To retaliate, 60 countries erected high tariff walls, and international trade stopped, along with most economies.

GATT- a forum for member countries to negotiate a reduction of tariffs and other barriers to trade.

o It became part of the WTO (WORLD TRADE ORGANIZATION)Know what MNC stands for and be able to define the phrase. (p. 30-32)

MNC=U.S. Multinational corporationso A corporation with assets and facilities in more than just its home country

They were facing major challenges in resistance to direct investment and increasing competition in export markets.

Based on Exhibit 2.2, know which country is number one in the number of corporations that make up the top 100. Know which country has the second most corporations in the top 100. (p. 31)

1. United States2. Japan and Germany tied with 11

First, be able to define “balance of payments.” Second, know and be able to describe the three accounts that make up a balance-of-payments statement. (p. 33-34)

Balance of Payment: The system of accounts that records a nation's international financial transactions.

o Double-Entry Bookkeeping system 3 Accounts that make up a balance-of-payments statement:

1. Current Account: a record of all merchandise exports, imports, and services plus unilateral transfers of funds (of primary interest to international business because it includes all international merchandise trade and service accounts)

2. Capital Account: a record of direct investment, portfolio investment, and short term capital movements to and from countries

3. Reserves Account: a record of exports and imports of gold, or increases or decreases in foreign exchange, and increases or decreases in liabilities to foreign central banks.

Be able to define and explain the term “protectionism” and what role the WTO (if any) has played in avoiding it. (p. 35-37)

Protectionism: the use by nations of legal barriers, exchange barriers, and psychological barriers to restrain entry of good from other countries.

o It cannot be viewed as a trade barrier. o Politically popular during times of declining wages or high unemployment

but rarely leads to renewed growth in a declining industry.Know the reasons (justifications) that countries give for adopting an attitude of protectionism. (p. 35-36)

1. Protection of an infant industry 2. Protection of the home market3. Need to keep money at home4. Encouragement of capital accumulation5. Maintenance of the standard of living and real wages6. Conservation of natural resources.7. Industrialization of a low-wage nation8. Maintenance of employment and reduction of unemployment 9. National defense

10. Enhancement of business size 11. Retaliation and bargaining.

Be able to define “tariff” and explain what effect tariffs tend to have on business. (p. 37-38)

Tariff: a fee or tax that countries impose on imported goods, often to protect a country’s markets from intrusion from foreign countries.

o Barriers to tradeo Increase:

Inflationary pressures Special interests’ privileges Government control and political considerations in economic

matters The number of tariffs

o Weaken: Balance-of-payment positions Supply-and-demand patterns International relations

They can start trade warso Restrict:

Manufacturers’ supply sources Choices available to consumers Competition.

Know and be able to explain the various nontariff barriers (see Exhibit 2.7 and pages noted). (p. 38-42)

Specific Limitations on trade o Quotas, boycotts: an absolute restriction against purchase and

transportation of certain goods and services, monetary barriers, and market barriers.

o Import Licensing requirementso Proportional restrictions of foreign to domestic goodso Minimum import price limitso Embargoes: refusal to sell to a specific country

Customs and Administrative Entry Procedureso Valuation systemso Antidumping practices: prevents foreign producers from “predatory

pricing” a practice whereby a foreign producer intentionally sells its products in the united states for less than the cost of production to undermine the competition and take control of the market

o Tariff classificationso Documentation requirementso Fees

Standardso Standards disparities: protects health, safety and product qualityo Intergovernmental acceptances of testing methods and standards

o Packaging, labeling, marking standards Governmental participation in Trade

o Government procurement policieso Export subsidieso Countervailing dutieso Domestic assistance programs

Charges on Importso Prior import deposit requirementso Administrative Feeso Special supplementary dutieso Import credit discriminations o Variable levieso Border taxes

Otherso Voluntary export restraints (orderly market agreements): Common in

textiles, clothing, steel, agriculture, and automobiles. An agreement between the importing country and the exporting

country for a restriction on the volume of exports.o Orderly marketing agreements

Be able to define “voluntary export restraints,” and explain why they might be used. (p. 39-40)

Voluntary Export Restraints: restricts volume of exports the exporting company sets the restraints, generally imposed under the threat of stiffer quotas and tariffs being set by the importing country.

o Similar to quotasKnow and be able to explain the difference between boycotts and embargoes. (p. 39-40)

Boycott: refusal to buy from a specific country Embargo: refusal to sell to a specific country

Be able to define and explain how standards can be used as a nontariff barrier. (p. 40-41)

Standards protect health, safety and product quality. Used in an unduly stringent or discriminating way to restrict trade

o The volume of regulations in this category are a problemKnow what predatory pricing is and why/how antidumping laws prevent foreign producers from using them. (p. 41-42)

Predatory Pricing: a practice where a foreign producer intentionally sells its products in the United States for less than the cost of production to undermine the competition and take control of the market.

o Violators are assessed antidumping duties or countervailing duties. They have to re-establish fair trade.

Know what country (at the turn of the century) took over from Japan as America’s number one trade problem. (p. 42)

China

Know the significant breakthroughs of the GATT Uruguay Round. (p. 43-45)

Know the difference between the WTO and GATT. (p. 42-47) World Trade Organization (WTO): encompassed the current GATT structure and

extends it to new areas not adequately covered in the past. o Institution, not an agreement. o Sets many rules governing trade among its 157 members and provides a

panel of experts to hear and rule on trade disputes among members and issues binding decisions.

o All member countries have equal representation General Agreement on Trades and Tariffs (GATT): provided a process to reduce

tariffs and created an agency to serve as watchdog over world trade. 1. Trade shall be conducted on a nondiscriminatory basis 2. Protection shall be afforded domestic industries through customs tariffs,

not through such commercial measures as import quotes 3. Consultation shall be the primary method used to solve global trade

problems.Know why the U.S. challenged the ratification of the WTO. (p. 45-47)

There was concern for the possible loss of sovereignty over its trade laws to WTO, the lack of veto power, and the role that the United States would assume when a conflict arises over an individual state’s laws that might be challenged by a WTO member.

Beginning to gain acceptance.Know the various “interpretation loopholes” that world marketers may attempt when it comes to skirting the spirit of GATT and WTO. (p. 46-47)

China applied safety and quality inspection requirements and they increased technical and inspection requirements.

Antidumping duties Several countries are negotiating bilateral trade agreements.

Know the role of and be able to define the IMF. (p. 47-50) International Monetary Fund: global institution created to assist nations in

becoming and remaining economically viable. o Stabilization of foreign exchange rates and the establishment of freely

convertible currencies to facilitate the expansion and balanced growth of international trade.

o Lends money to members having trouble meeting financial obligations to other members

Know the major complaints from protestors during the Seattle Round of the WTO meetings. (p. 47-50)

Environmental concerns Worker exploitation and domestic job losses Cultural extinction Higher oil prices Diminished sovereignty of nations.

Chapter 3:Know how why history and geography are important when it comes to interpreting a culture’s behavior and attitudes. (p. 54-55)

It helps us fully understand a culture’s actions and point of viewKnow what history is used for when it comes to a nation, e.g., how it helps to define a nation’s mission, etc. (p. 54-55)

History helps to:o Define a nation’s “mission”o How it perceives its neighborso How it sees its place in the worldo How it sees itself

Helps us understand:o Attitudes about the role of government and businesso The relations between managers and the managedo Sources of management and authorityo Attitudes towards foreign corporations

Important to understand history how it is and how it was History influences business decisions

o Foreign direct investmentso Market entryo Personal choices

Know the background of the First Opium War and what was the result. (p. 54-55) British tea was creating a huge trade deficit The English East India Company had opium

o The best opium came from British India Chinese officials wanted to legalize opium

o Suppliers boosted production and shipmento The emperor ordered destruction of all inventories

The opium trade was dead The British blockaded Chinese ports Chinese gave up Hong Kong and 21 million pounds to the British

o Ports were open to trade and settlement by foreigners The opium war became about foreign access to Chinese trade A second opium war was fought

o The British and Chinese combines to destroy the summer palace in Beijing

Resulted in a loss of confidence in the Chinese governmentKnow what the text “says” about the isolation/openness of Japan when Commodore Perry sailed there in 1853. (p. 56)

It was isolated before Commodore Perry sailed there (kinda unclear in the text)Know the various factors that permeate many facets of Japanese behavior and what those characteristics mean to outsiders. (p. 56)

Loyalty to family, to country, to company, and to social groups and the strong drive to cooperate, work together for a common cause, and permeate many facets of Japanese behavior and have historical roots that date back thousands of years.

It gives an outsider a basis to begin developing cultural sensitivity and a better understanding of contemporary Japanese behavior

Know who the text says history is written by and what that means for those of us who read about it. (see Crossing Borders 3.1) Know the story about who invented the telephone. (p. 57, 58, 63, 64)

We know that maps of the world sold in the U.S. tend to have the U.S. as the center of the world while maps of the world sold in Great Britain show Great Britain at the center of the world. We find a similar situation when we buy maps in other countries as well. Know why that probably occurs. (p. 57)

Our perspective influences our view of history as well as our view of many other things.

Be able to summarize the feelings of most Mexicans towards the U.S. (according to the text). (p. 57-61)

Mexicans would say, “geography has made us closer while tradition has made us far apart”

Mexicans think that the US self-interest is the primary motivation for having good relations with Mexico

Mexicans think history is taught in one way in America and another way in Mexico

o Mexico thinks they are portrayed in US textbooks as bandits who invaded TX

Mexicans don’t like gringos for historical reasons but today the world is changing and dividing into commercial blocks and they are handcuffed to each other (for better or worse)

Mexicans think they have and always will be a colony of the USAKnow what happened during and the outcome of the Mexican War of 1846-1848. (p. 57-61)

Resulted in Mexico ceding a large part of the West to the United StatesKnow the various methods that the U.S. used to expand westward toward the Pacific in the 1800s. (see Exhibit 3.1, e.g., annexation, buying). (p. 59-60)

Financial deals Negotiated settlements Forcible annexations

Be able to explain “Manifest Destiny” and the “Monroe Doctrine” and the Monroe Doctrine’s Roosevelt Corollary. (p. 59-60)

Manifest Destiny: a basis for U.S. policy during the 19th and 20th centuries as the nation expanded its territory. The notion that Americans were a chosen people ordained by God to create a model society.

Monroe Doctrine: President James Monroe- Proclaimed 3 basic dictations1. No further European colonization in the New World2. Abstention of the United States to European political affairs3. Non-intervention of European governments in the governments of the

western hemisphere Monroe Doctrine’s Roosevelt Corollary: An extension of the Monroe Doctrine

by Theodore Roosevelt. Stated that the US would prohibit non-American intervention in Latin American Affairs and police Latin America and guarantee that all Latin American nations would meet their international obligations.

Be able to characterize how U.S. citizens and Latin American citizens see the Monroe Doctrine. (p. 59-60)

US citizens- the Monroe Doctrine was a justifiable part of our foreign policy Latin American citizens- the Monroe Doctrine was an unwelcome intrusion in

Latin American affairsKnow what sort of environment that geography is a part of as well as the important elements of geography that should be of interest to someone preparing an appraisal of the feasibility of a venture into another country. (p. 62-67)

Geography: the study of the earth’s surface, climate, continents, countries, peoples, industries, and resources.

Appraisal of the feasibility of a venture into another country ((not sure what this means!!)

When it comes to geography, nature, and economic growth, know what sorts of countries suffer the most from major calamities. (p. 66-67)

Less privileged Population increases, deforestation, and overgrazing all worsen drought,

malnutrition, and ill health, which further reduce these countries abilities to solve their own problems.

Be able to define and explain the term “sustainable development.” (p. 67-71) Sustainable development: being able to creating a lasting balance between the

environment, the economy, and society.o An approach towards economic growth that has been described as a

cooperative effort among businesses, environmentalists, and others to seek growth with “wise resource management, equitable distribution of benefits, and reduction of negative efforts on people and the environment from the process of economic growth”

Be able to explain the findings shown in Exhibit 3.4, e.g., which continent/geographic areas consumes the least and the most world energy. (p. 71-74)

Percentage of World Energy consumption but Energy sources (high to low)o Liquidso Coalo Natural gas

o Othero Nuclear

Total world energy consumption by region (high to low)o Asiao Europeo North Americao Latin Americao Middle Easto Africa

Be able to explain why we tend to see migration from rural to urban areas, i.e., why do people move to cities? (p. 74-76)

A desire for a greater access to sources of education, healthcare, and improved job opportunities

Know the three converging issues in China that are causing a serious gender imbalance in China, (note Crossing Borders 3.3). (p. 78)

1. China (the world’s most populous country) has a strict one-child policy to curb population growth

2. Traditional values dictate male superiority and a definite parental preference for boys

3. Prenatal scanning allows women to discover the sex of their fetuses and thereby abort unwanted female fetuses

Chapter 4Be able to explain the definition of “culture” and explain how culture impacts marketer’s efforts. (p. 96-103, 110)

Culture: the human made part of human environmento The sum total of knowledge, beliefs, arts, morals, laws, customs, and any

other capabilities and habits learned and shared by a group of people, then transmitted from generation to generation

Markets and market behavior are not static, but evolve, expand, and contract in response to marketing effort, economic conditions, and other cultural influences.

o It effects how we consume in general. o Geography affects what we consume based on what resources are

available. o Culture also affects production based on the needs of the people.

Be able to explain what it means that marketers may have to act as “agents of change.” When would marketers do that? Why (in what situations)? (p. 96)

They are constantly adjusting their efforts to cultural demands of the market, but if whatever product or idea being marketed is innovative, they are acting as agents of change.

Whatever the degree of acceptance, the use of something new is the beginning of cultural change

o The marketer becomes a change agent.

Know which country has the highest rate of consumption of cut flowers, chocolate, fish, pasta, and wine. (see Exhibit 4.2) (p. 98)

Flowers- Netherlands Chocolate- UK Fish & Seafood- Japan Dried Pasta: Italy Wine: France Tobacco: Spain

Be able to explain what Geert Hofstede meant when he referred to culture as the “software of the mind.” (p. 102-103)

Culture provides a guide for humans on how to think and behave A problem solving tool

Know what “socialization” means when it comes to learning culture. In socialization, from what sources do individuals learn culture? (p. 102-103)

Socialization= growing up Individuals learn culture from social institutions such as family, religion, school,

the media, government, and corporationsBe able to define “acculturation” and differentiate it from socialization. (p. 102-103)

Acculturation: adjusting to a new culture o Also learned from social institutions

It differs from socialization in the fact that an individual has to change their behavior from one culture to another

Know the origins of culture. (p. 102-103) Traditional definitions center around the notion that culture is the sum of the

values, rituals, symbols, beliefs, and thought processes that are learned and shared by a group of people, then transmitted from generation to generation.

Culture resides in the individuals mind The expression “a culture” recognizes that large collectives of people can, to a

great degree, be like-mindedKnow the social institutions that influence values and culture and particularly the four social institutions that most strongly influence values and culture. (p. 105-109)

1. Family: Birth control has tremendously affected families and reduced family sizes Women have begun putting off childbearing and marriage, most notably in

Asia. Family functions vary around the world and even country. Nepotism is seen as a problem in the US but is often the organizing principle

in Chinese and Mexican firms. The ratio of male to female children is also affected by culture. Individualism is being taught the first night the American infant is tucked into

her own separate bassinette. Values for egalitarianism are learned the first time Dad washed the dishes in

front of the kids or when Mom heads off to work2. Religion:

In most cultures, this is the first social institution infants are exposed to outside the home.

Religion clearly affects the peoples habits, their outlook on life, the products they buy, the way they buy them, and even the newspapers they read.

Ones on religion is often not a reliable guide to another’s beliefs. Most people do not understand religions other than their own, and/or what

is “known” about other religions is often incorrect3. School:

Education is one of the most important social situations and affects all aspects of the culture.

Literacy rate of a country is a potent force for economic developmento According to the world bank, no country has been successful with less

than 50% literacy4. The Media:

Media time (like TV, internet, and mobile phones) has replaced family time. Many decry the declining American educational system as it produces a

lower percentage of college graduates than twelve other countries, including Russia, Japan and France

When it comes to the U.S., Australia, Great Britain, Japan, France and Canada, know which country scores highest and lowest on the Individualism/Collectivism Index (IDV) and be able to explain what high and low scores mean. (also see Exhibit 4.5) (p. 110-113)

IDF SCORES (high to low)o USAo Australiao Great Britaino Canadao Franceo Japan

The IDV refers to the preference for behavior that promotes one’s self-interest.o Cultures that score high on the IDV reflect an “I” mentality and tend to

reward and accept individual initiativeo Lower scores reflect a “we” mentality and are generally more group

oriented. Individualism pertains to societies in which everyone is expected to look after

him or herself along with their immediate family. Collectivism, pertains to societies in which people from birth onward are

integrated into strong, cohesive groups which throughout peoples lifetimes continue to protect them in exchange for unquestioning loyalty

When it comes to symbols, be able to describe “aesthetics as symbols” beginning with a definition and then being able to give examples. (p. 116-117)

Aesthetics: symbolic system represented in arts, folklore, music, drama, dance, dress, and cosmetics

Customers everywhere respond to images, myths, and metaphors that help them define their personal and national identities and relationships within a context of culture and product benefits. The uniqueness of a culture can be spotted quickly in symbols having distinct meanings

Ex. the subtle earth tones in a typical Japanese restaurant vs. the bright reds and yellows in the décor of ethnic Chinese restaurants

In Richard Nisbett’s book, The Geography of Thought, he discusses differences in “Asian and Western” thinking. Be able to explain his findings. (p. 119-120)

Nisbett acknowledges the danger in generalizing the Japanese, Chinese, and Korean cultures on the one hand, and the European and American cultures on the other.

However a good metaphor used is Confucius’ idea that “a picture is worth a thousand words”.

o Asians tend to see the whole picture and can give details about the background and foreground.

o Westerners tend to focus on the foreground and can provide great detail about central figures but see relatively little in the background.

o This difference in perception – focus vs. big picture – is associated with a wide variety of differences in values, preferences, and expectations about future events

Know the definition of “cultural borrowing” and be able to give an example of it. (p. 121-122)

Cultural Borrowing: a responsible effort to learn from others’ cultural ways in the quest for better solutions to a society’s particular problems

o Cultures in their own right are the result, in part, of imitating a diversity of others

o Ex. A typical US citizen may begin their breakfast with an orange from the eastern Mediterranean, then go on to waffles (originally made by Scandinavian technique from wheat domesticated in Asia Minor) drizzled with maple syrup (invented by native americans of the US eastern woodlands), and have a side dish of the eggs of a species of bird domesticated in Indochina. While eating, they made read the news on a material invented by China.

Each of the borrowed cultural facets has been adapted to fit her needs, molded into uniquely American habits, foods, and customs.

Culture is learned. Though many behaviors are borrowed from other cultures, they are combined in a unique manner that becomes typical for a particular society

When it comes to “Resistance to Change” be able to briefly describe what studies found was associated with consumers’ acceptance of innovations across cultures. (p. 122-123)

A characteristic of human culture is that change occurs. New methods, ideas, and products are held to be suspect before they are accepted, if ever.

Consumers in different cultures display differing resistance. Studies show that the most important factors in determining what kind and how

much of an innovation will be accepted in the degree of interest in the particular subject, as well as how drastically the new will change the old (how disruptive the innovation to presently acceptable value and behavioral patterns).

Increasingly, changes are occurring in societies as a result of purposeful attempts by some acceptable institution to bring about change (planned change)

Be able to explain how “cultural congruence,” “unplanned change” and “planned change” are used to introduce products into a marketplace. (p. 124)

Cultural Congruence: marketing products similar to ones already on the market in a manner as congruent as possible with existing cultural norms

o Minimizing resistance Unplanned Change: introduce a product and hope for the best (in terms of

acceptance) Planned Change: deliberately set out to change the aspects of the culture

offering resistance to predetermined marketing goals; the marketer has some responsibility to determine the consequences of such an action