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,Cultural Dynamics in Assessing Global Markets,International Marketing,Chapter 4,Chapter Outline,Definitions and Origins of Culture,Cultural Change,Elements of Culture,Cultural Knowledge,Cultures Pervasive Impact,Chapter Learning Objectives,1. The importance of culture to an international marketer,2. The origins and elements of culture,3. The impact of cultural borrowing,4. The strategy of planned change and its consequences,Preface,Culture is the human-made part of human environment the sum total of knowledge, beliefs, art, morals, laws, customs, and any other capabilities and habits acquired by humans as members of society.,Importance of culture in international marketing,Culture is pervasive in all marketing activities in pricing, promotion, channels of distribution, product, packaging, and styling. WHY?,Markets are the result of the three-way interaction of marketers effort, economic conditions, and all other elements of the culture.,Culture influences every part of our lives Cultures impact on birth rates in Taiwan, Japan, and USA,Birthrates have implications for sellers of diapers, toys, schools, and colleges. P74,Consumption of different types of food make part of culture: Chocolate by Swiss, seafood by Japanese preference, beef by British, wines by France and Italy, pasta by Italy and Japan; tobacco drop in USA, UK and Japan P75 Even diseases are influenced by culture: stomach cancer in Japan, and lung cancer in Spain, heat problems in UK P75-76,Cultures Pervasive Impact,Cultures Pervasive Impact,Cultures Pervasive Impact,Cultures Pervasive Impact,Definitions and Origins of Culture,Culture has been conceptualized as: “Software of the mind” culture is a guide for humans on how to think and behave; it is a problem-solving tool (Hofstede) An invisible barrier a completely different way of organizing life, of thinking, and of conceiving the underlying assumptions about the family and the state, the economic system, and even Man himself” (Edward Hall, Anthropologist and business consultantl) A “thicket” (U.S. Ambassador Hodgson),Culture is the sum of the “values, rituals, symbols, beliefs, and thought processes that are learned, shared by a group of people, and transmitted from generation to generation”,Definitions and Origins of Culture P77,Origins of Culture: Geography,Geography, which includes climate, topography, flora, fauna, and microbiology, influences our social institutions,2. Two researchers suggest that geography influences everything from history to present-day cultural values,First, Jared Diamond states that historically innovations spread faster east-to-west than north-to-south,Second, Philip Parker reports strong correlations between the latitude (climate) and the per capita GDP of countries,Origins of Culture: History,The impact of specific events in history can be seen reflected in technology, social institutions, cultural values, and even consumer behavior,2. The military conflicts in the Middle East in 2003 bred new cola brands, Mecca Cola, Muslim Up, and Arab Cola,For e.g., American trade policy depended on tobacco being the original source of the Virginia colonys economic survival in the 1600s,Origins of Culture: The Political Economy,For most of the 20th Century three approaches to governance competed for world dominance: fascism, communism, and democracy/free enterprise,3. Necessary to appreciate the influence of the political economy on social institutions and cultural values and ways of thinking,2. Fascism fell in 1945; Communism crumbled in the 1990s,Origins of Culture: Technology,Technological innovations also impact institutions and cultural,2. Jet aircraft, air conditioning, televisions, computers, and the internet have all influenced culture,3. Arguably the greatest impact is the pill that has allowed women to have careers and freed men to spend more time with kids,Origins of Culture: Social Institutions,Social institutions including family, religion, school, the media, government, and corporations all affect culture,The family, social classes, group behavior, age groups, and how societies define decency and civility are interpreted differently within every culture (1) Family behavior varies across the world, e.g., extended families living together to Dad washing dishes (2) Religious value systems differ across the world, e.g., Muslims not allowed to eat pork to Hindus not allowed to consume beef,Origins of Culture: Social Institutions,(3) School and education, and literacy rates affect culture and economic growth (4) Media (magazines, TV, the Internet) influences culture and behavior (5) Government policies influence the thinking and behaviors citizens of adult citizens, e.g., the French government offers new “birth bonuses” of $800 given to women as an incentive to increase family size (6) Corporations influence culture via the products they market, e.g., MTV,Origins of Culture: Social Institutions,Other levels of Government policy influence Balancing between sovereignty and requirements of Global organization; differing political philosophies, and nationalism enhance risks, which ranges from confiscation, expropriation, domestication, to political sanctions; from rules and regulations such as exchange controls, local-content laws, import restrictions, tax controls, price controls, to labor protection; and influence of political and social activists, violence and terrorism, and cyber-terrorism.,Elements of Culture,International marketers must design products, distribution systems, and promotional programs with due consideration to culture, which was defined as including five elements:,Cultural values Rituals Symbols Beliefs, and Thought processes,Elements of Culture: Cultural Values,Differences in cultural values, which is found to exist among countries, affects consumer behavior Hofstede, who studied over 90,000 people in 66 countries, found that the cultures differed along four primary dimensions:,Individualism/Collective Index (IDV), which focuses on self-orientation Power Distance Index (PDI), which focuses on authority orientation Uncertainty Avoidance Index (UAI), which focuses on risk orientation; and Masculinity/Femininity Index (MAS), which focuses on assertiveness and achievement,Individualism/Collectivism Index,The Individualism/Collective Index refers to the preference for behavior that promotes ones self-interest High IDV cultures reflect an “I” mentality and tend to reward and accept individual initiative Low IDV cultures reflect a “we” mentality and generally subjugate the individual to the group Collectivism pertains to societies in which people from birth onward are integrated into strong, cohesive groups, which protect them in exchange for unquestioning loyalty,Power Distance Index,The Power Distance Index measures (tolerance of )power inequality between superiors and subordinates within a social system Cultures with high PDI scores tend to be hierarchical (分等级的) and value power and social status High PDI cultures the those who hold power are entitled to privileges Cultures with low PDI scores value equality and reflect egalitarian (平等主义的) views,Uncertainty Avoidance Index,The Uncertainty Avoidance Index measures the tolerance of uncertainty and ambiguity (模糊)among members of a society High UAI cultures are highly intolerant of ambiguity, tend to have anxiety and stress, accord a high level of authority to rules as a means of avoiding risk Low UAI cultures are associated with a low level of anxiety and stress, a tolerance of deviance and dissent, and a willingness to take risks,Cultural Values and Consumer Behavior,Explanation of E-trading example,The Americans has highest scores on individualism at 91,with Japan at 46 and France at 71 Both Japan(92) and France(86) score quite high on Uncertainty Avoidance Index, while the American scores low(46). The diffusion of innovation will be slower in Japan and France than in the United States. Cultures scoring higher on individualism an lower on uncertainty avoidance tend to be more innovative.,Complexity of human values and behavior: Which would be more appreciated by 1.American students 2.Chinese students,Elements of Culture: Rituals, and Symbols,Rituals are patterns of behavior and interaction that are learned and repeated vary from country to country, e.g., extended lunch hours in Spain and Greece; department store svc,French attempting to preserve the purity of their language,Language as Symbols: the “languages” of time, space, things, friendships, and agreements,Elements of Culture: Rituals, and Symbols,In Canada, language has been the focus of political disputes including secession,Aesthetics as Symbols: the arts, folklore, music, drama, and dance of a culture influences marketing,Differences in language vocabulary varies widely Linguistic distance increase transaction cost,Fractured Translations,Product Japanese Spam Toilet Paper Ready to Eat Pancakes Antifreeze Spray Pediatricians Slogan,English Translation Liver Putty My Fanny Brand Strawberry Crap Dessert Hot Piss Brand Specialist in Deceased Children,English Translations made by Japanese firm that were added to labels to increase prestige for their products being sold in China,SOURCE: “Some Strawberry Crap Dessert, dear?” South China Morning Post, Dec 9,1996 p. 12.,Elements of Culture: Beliefs and Thought Processes,Beliefs, which stem from religious training, vary from culture to culture,In summary, marketers must consider larger cultural consequences of marketing actions,Thought processes also vary across cultures,Examples:,The western aversion to the number 13 or refusing to walk under a ladder Japanese concern about the Year of the Fire Horse The Chinese practice of Feng Shui in designing buildings,Examples:,“Asian and Western” thinking,Factual versus Interpretive Cultural Knowledge,There are two kinds of knowledge about cultures both of which are necessary,Factual knowledge is usually obvious and must be learned, e.g., different meanings of colors, and different tastes; it deals with a facts about a culture,Interpretive knowledge is the ability to understand and appreciate the nuances of different cultural traits and patterns, e.g., the meaning of time, and attitudes toward people,Interpretive knowledge requires a degree of insight It is dependent on past experience for interpretation It is prone to misinterpretation if ones SRC is used,Cultural Sensitivity and Tolerance,Cultural sensitivity/empathy: Being attuned to the nuances of culture so that a new culture can be viewed objectively, evaluated, and appreciated. The more exotic the situation, the more sensitive, tolerant, and flexible one needs to be. Being cultural sensitive will reduce conflict and improve communications, and thereby increase success in collaborative relationships. Besides knowledge of the origins and elements of cultures, the international marketer should have appreciation of how culture change and how the culture accept or reject new ideas.,Cultural Change and Cultural Borrowing,International marketers should appreciate how cultures change and accept or reject new ideas How cultures change, e.g., war (changes in Japan after World War II) or by natural disaster. More commonly, it changes when people seeking solution to problems caused by changing environmentinvention, experimentation, immigration and introduction from abroad. Hofstede has shown that consumers acceptance of innovations varies across cultures innovation was associated with higher individualism (IDV), and lower power distance (PDI) and uncertainty avoidance (UAI) International marketers should be aware the extent to which cultures borrow ideas and learn from other cultures Helps in the marketing of products from one culture to a different culture,Similarities lead to an illusion,United States Trunk Hood Convertible Top Elevator Toilet Bathroom Vacuum,United Kingdom Boot 2. Bonnet Hood 4. Lift 5. W.C
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