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Chapter4CulturalDynamicsinAssessingGlobalMarketsChapterLearningObjectivesTheimportanceofculturetoaninternationalmarketerTheoriginsandelementsofcultureTheimpactofculturalborrowingThestrategyofplannedchangeanditsconsequencesIntroductionCulturereferstothehuman-madepartofhumanenvironment—thesumtotalofknowledge,beliefs,art,morals,laws,customs,customs,andanyothercapabilitiesandhabitsacquiredbyhumansasmembersofsociety”ImportanceofcultureininternationalmarketingAsuccessfulmarketermustbeastudentofcultureCultureispervasiveinallmarketingactivities—inpricing,promotion,chCulture’sPervasiveImpactCultureinfluenceseverypartofourlives.CulturesimpactonbirthratesinTaiwan,Japan,andSingaporeBirthrateshaveimplicationsforsellersofdiapers,toys,schools,andcollegesConsumptionofdifferenttypesoffoodinfluenceisculture;ChocolatebySwiss,seafoodbyJapanesepreference,beefbyBritish,winesbyFranceandItalyEvendiseasesareinfluencedbyJapanesepreference,beefbyBritish,winesbyFranceandItalyEvendiseasesareinfluencedbyculture:stomachcancerinJapan,andlungcancerinSpain.DefinitionsandOriginsofCultureCultureisthesumofthe“values,rituals,symbols,beliefs,andthoughtprocessesthatarelearned,sharedbyagroupofpeople,andtransmittedfromgenerationtogeneration”Culturehasbeenconceptualizedas:1,“Softwareofthemind”cultureisaguideforhumansonhowtothinkandbehave;itisaproblem-solvingtool(Hofstede)2,Aninvisiblebarrier```acompletelydifferentwayoforganizinglife,ofthinking,andofconceivingtheunderlyingassumptionsaboutthefamilyandthestate,theeconomicsystem,andevenManhimself”(Hall)3,A”thicket”(U.S.AmbassadorHodgson)OriginsofCulture:GeographyGeography,whichincludesclimate,topography,flora,fauna,andmicrobiology,influencesoursocialinstitutionsTworesearcherssuggestthatgeographyinfluenceseverythingfromhistorytopresent-dayculturalvaluesFirst,JaredDiamondstatesthathistoricallyinnovationsspreadfastereast-to-southSecond,PhilipParkerreportsstrongcorrelationsbetweenthelatitude(climate)andthepercapitaGDPofcountriesOriginsofCulture:HistoryTheimpactofspecificeventsinhistorycanbeseenreflectedintechnology,socialinstitutions,culturalvalues,andevenconsumerbehaviorFore.g.,AmericantradepolicydependedontobaccobeingtheoriginalsourceoftheVirginiacolony’seconomicsurvivalinthe1600sThemilitaryconflictsintheMiddleEastin2003brednewcolabrands,MeccaCola,MuslimUp,andArabColaOriginsofCulture:ThePoliticalEconomyFormostofthe20thCenturythreeapproachestogovernancecompetedforworlddominance:fascism,communism,anddemocracy/freeenterpriseNecessarytoappreciatetheinfluenceofthepoliticaleconomyonsocialinstitutionsandculturalvaluesandwaysofthinkingOriginsofCulture:TechnologyTechnologicalinnovationsalsoimpactinstitutionsandculturalJetaircraft,airconditioning,televisions,computers,andtheinternethaveallinfluencedcultureArguablythegreatestimpactisthepillthathasallowedwomentohavecareersandfreedmentospendmoretimewithkidsOriginsofCulture:SocialInstitutionsSocialinstitutionsincludingfamily,religion,school,themedia,government,andcorporationsallaffectcultureThefamily,socialclasses,groupbehavior,agegroups,andhowsocietiesdefinedecencyandcivilityareinterpreteddifferentlywithineveryculture(1)Familybehaviorvariesacrosstheworld,e.g.,extendedfamilieslivingtogetherDadwashingdishes(2)Religiousvaluesystemsdifferacrosstheworld,e.g.,MuslimsnotallowedtoeatporktoHindusnotallowedtoconsumebeefOriginsofCulture:SocialInstitutions(3)Schoolandeducation,andliteracyratesaffectcultureandeconomicgrowth(4)Media(magazines,TV,theInternet)influencescultureandbehavior(5)Governmentpoliciesinfluencethethinkingandbehaviorscitizensofadultcitizens,e.g.,theFrenchgovernmentoffersnew“birthbonuses”of$800giventowomenasanincentivetoincreasefamilysize(6)Corporationsinfluencecultureviatheproductstheymarket,e.g.,MTVElementsofCultureInternationalmarketersmustdesignproducts,distributionsystems,andpromotionalprogramswithdueconsiderationtoculture,whichwasdefinedasincludingfiveelements:1,Culturalvalues2,Rituals3,Symbols4,Beliefs,and5,ThoughtprocessesElementsofCulture:CulturalValuesDifferencesinculturalvalues,whichisfoundtoexistamongcountries,affectsconsumerbehaviorHofstede,whostudiedover90,000peoplein66countries,foundthattheculturesdifferedalongfourprimarydimensions:1,Individualism/CollectiveIndex(IDV),whichfocusesonself-orientation2,PowerDistanceIndex(PDI),whichfocusesonauthorityorientation3,UncertaintyAvoidanceIndex(UAI),whichfocusesonriskorientation;and4,Masculinity/FemininityIndex(MAS),whichfocusesonassertivenessandchievementIndividualism/CollectivismIndexIndividualism/CollectivismIndex:1,TheIndividualism/CollectiveIndexreferstopreferenceforbehaviorthatpromotesone’sself-interest2,HighIDVculturesreflectan“I”mentalityandtendtorewardandacceptindividualinitiative3,LowIDVculturesreflecta“we”mentalityandgenerallysubjugatetheindividualtothegroup4,Collectivismpertainstosocietiesinwhichpeoplefrombirthonwardareintegratedintostrong,cohesivegroups,whichprotecttheminexchangeforunquestioningloyaltyPowerDistanceIndexPowerDistanceIndex:1,ThePowerDistanceIndexmeasurespowerinequalitybetweensuperiorsandsubordinateswithinasocialsystem2,CultureswithhighPDIscorestendtobehierarchicalandvaluepowerandsocialstatus3,HighPDIculturesthethosewhoholdpowerareentitledtoprivileges4,CultureswithlowPDIscoresvalueequalityandreflectegalitarianviewsUncertaintyAvoidanceIndexUncertaintyAvoidanceIndex:1,TheUncertaintyAvoidanceIndexmeasuresthetoleranceofuncertaintyandambiguityamongmembersofasociety2,HighUAIculturesarehighlyintolerantofambiguity,experienceanxietyandstress,accordahighlevelofauthoritytorulesasameansofavoidingrisk3,LowUAIculturesareassociatedwithalowlevelofanxietyandstress,atoleranceofdevianceanddissent,andawillingnesstotakerisksElementsofCulture:Rituals,andSymbols

Ritualsarepatternsofbehaviorandinteractionthatarelearnedandrepeatedvaryfromcountrytocountry,e.g.,extendedlunchhoursinSpainandGreeceLanguageasSymbols:the“languages”oftime,space,things,friendships,andagreementsElementsofCulture:Rituals,andSymbolsInCanada,languagehasbeenthefocusofpoliticaldisputesincludingsecessionFrenchattemptingtopreservethepurityoftheirlanguageDifferencesinlanguagevocabularyvarieswidelyElementsofCulture:Rituals,andSymbolsAestheticsasSymbols:GraphicandPlasticArts+Folklore+Music,DramaandDance.Aestheticsroleininterpretingthesymbolicmeaningsofvariousmethodsofartisticexpression,color,andstandardsofbeautyineachculture.Customerseverywhererespondtoimages,myths,andmetaphors.Productstylingmustbeaestheticallypleasingtobesuccessful,asmustadvertisementsandpackagedesigns.Withoutaculturallycorrectinterpretationofacountry’saestheticvalues,awholehostofmarketingproblemscanarise.ElementsofCulture:BeliefsandThoughtProcessesBeliefs,whichstemfromreligioustraining,varyfromculturetocultureHumansandTheUniverse.Religion(BeliefSystems)+superstitions+relatedpowerstructuresReligionimpactspeople’shabits,theiroutlookonlife,theproductstheybuy,thewaytheybuythem,eventhenewspaperstheyread.Religionisoneofthemostsensitiveelementsofaculture.Superstitionsplaysamuchlargeroleinasociety’sbeliefsysteminsomepartsoftheworld.It’scalledart,science,philosophy,orsuperstitions,dependingonwhoistalking.Forexample,Chineseancientbelief”fengshui”ElementsofCulture:BeliefsandThoughtProcessesThoughtprocessesalsovaryacrossculturesExamples:”AsianandWestern”thinkingInsummary,marketersmustconsiderlargerculturalconsequencesofmarketingactions.FactualversusInterpretiveCulturalKnowledgeTherearetwokindsofknowledgeaboutculturesbothofwhicharenecessaryInterpretiveknowledgeistheabilitytounderstandandappreciatethenuancesofdifferentculturaltraitsandpatterns,e.g.,themeaningoftime,andattitudestowardpeopleFactualknowledgeisusuallyobviousandmustbelearned,e.g.,differentmeaningsofcolors,anddifferenttastes;itdealswithafactsaboutacultureInterpretiveknowledgerequiresadegreeofinsight.Itisdependentonpastexperienceforinterpretation.Itispronetomisinterpretationifone’sSRCisused.

CulturalChangeandCulturalBorrowingInternationalmarketersshouldappreciatehowcultureschangeandacceptorrejectnewideasHowcultureschange,e.g.,war(changesinJapanafterWorldWarⅡ)orbynaturaldisasterHofstedehasshownthatconsumers’acceptanceofinnovationsvariesacrosscultures-innovationwasassociatedwithhigherindividualism(IDV),andlowerpowerdistance(PDI)anduncertaintyavoidance(UAI)InternationalmarketersshouldbeawaretheextenttowhichculturesborrowideasandlearnfromotherculturesHelpsinthemarketingofproductsfromoneculturetodifferentcultureResistancetoChangeAlthoughsomeculturesembracechange,othersareresistanttoitExampleofculturethatresistchange:WorkingwomeninMasculinesocietieslikeSaudiArabiaAcceptanceofgeneticallymodifiedfoods(or“Frankenfood”)inEuropePlann

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