Chapter 4 International Marketing

SHORT ANSWER: Giving examples show how technology is providing interesting new opportunities for exploiting linguistics in the name of marketing

: With the increased use of information technology and computers, there has been a noticeable positive and negative impact on linguistics. Text messaging and chat rooms have made it much easier to abbreviate common words, primarily due to limited space on keyboards of cell phones such as BlackBerry and to reduce time involved. Thus, a combination of numerical and alphabetical abbreviations is being used. For example, GR8 (great); CU (see you); AFK (away from keyboard); b4 (before); BBL (be back later); BRB (be right back); GMTA (great minds think alike); l8r (later) and ^5 (high five). In Korean, the phonetic pronunciation of the numerical sequence 8282 (Pal Yi PalYi) means hurry up and 7179 (Chil Han Chil Gu) sounds like "close friend." In some languages numerology has different meanings which when decoded can convey messages. In addition to being exciting, such use of terminology can make slogans stick in the minds of consumers and therefore can be used effectively in marketing. Some of these are getting universally accepted terms due to common use of computers and technological gadgets.

Suppose you have a friend from India who is a lifelong vegetarian and who does not like McDonald's because the company sells hamburgers in many countries. Which of the following describes your friend? A) "vegetarianism" represents a value, "dislike McDonald's" represents an attitude B) "vegetarianism" represents an attitude, "dislike McDonald's" represents a value C) "vegetarianism" and "dislike McDonald's" both represent an attitude D) "vegetarianism" represents a value, "dislike McDonald's" represents a belief E) "vegetarianism" and "dislike McDonald's" both represent values

A "vegetarianism" represents a value, "dislike McDonald's" represents an attitude

In China, Dell had to find a meaningful interpretation of "direct sales." A literal translation results in zhi xiao which is the Chinese term for "illegal pyramid marketing schemes." To counteract the negative connotation, Dell's sales representatives began using the phrase zhi xiao ding gou, which translates as: A) direct orders. B) direct marketing. C) pyramid orders. D) pyramid scheme. E) direct shipping.

A. Direct orders

Insisting on competitive bidding can cause complications in: A) low-context cultures B) high-context cultures. C) low and high context cultures. D) Korean cultures. E) Japanese cultures.

A. Low-context cultures

Lawyers are more important in: A) low-context cultures. B) high-context cultures. C) Indian cultures. D) Korean cultures. E) Japanese cultures.

A. Low-context cultures

According to Hofstede, a cultural dimension which describes a society in which the social roles of men and women overlap, with neither gender exhibiting overly ambitious or competitive behavior is known as: A) nurturing B) individualistic C) collectivistic D) power distance E) achievement

A. Nurturing

Considering Hofstede's notion of culture as "the collective programming of the mind," then attitudes can be defined as: A) a learned tendency to respond in a consistent way to a given object or entity. B) an organized pattern of knowledge that an individual holds to be true about the world. C) an enduring belief or feeling of a specific mode of conduct. D) a personally or socially preferable mode of conduct. E) the deepest level of a culture present in the majority of the members of a particular culture.

A. a learned tendency to respond in consisten way to a given object or entity.

SHORT ANSWER: Hofstede considers culture as "the collective programming of the mind," which makes it necessary to look at the attitudes, beliefs, and values. Giving an example of a country, explain how these attributes are so important.

An attitude is a learned tendency to respond in a consistent way to a given object or entity. Actually, they are clusters of interrelated beliefs. Many Japanese believe that the West is the source of important fashion trends, and therefore they share a favorable attitude toward American brands. A belief is an organized pattern of knowledge that an individual holds to be true about the world. Japan's monocultural society reflects the belief among the Japanese that they are unique in the world. Attitudes and beliefs are closely related to values. A value can be defined as an enduring belief or feeling that a specific mode of conduct is personally or socially preferable to another mode of conduct. Values represent the deepest level of a culture and are present in the majority of the members of a particular culture. The Japanese, for example, strive to achieve cooperation, consensus, self-denial, and harmony. Since these all represent feelings about modes of conduct, they are values. Attitudes, beliefs, and values are all interrelated and extremely important from a marketing point of view

As cultural differences become less relevant and disposable incomes become high, a trend towards greater consumption of the following type of foods is predicted. A) French artistic foods B) American fast foods C) Chinese retail foods D) Indian spicy foods E) Mexican spicy foods

B. American fast foods

The power distance dimension reflects the degree of trust among members of society. Thus, the higher the power distance (PDI) the: A) greater is uncertainty avoidance. B) lower is the level of trust. C) higher is tolerance for ambiguity. D) greater is male dominance. E) lower is the harmony

B. Lower is the level of trust

Colgate discovered that in Spanish colgate is a verb form that means "go hang yourself." Whirlpool found that consumers in Italy, France, and Germany had trouble pronouncing the name. These are examples which show the importance of ________ in global marketing. A) syntax and morphology B) phonology and morphology C) syntax and semantics D) semantics and phonology E) semantics and morphology

B. Phonology and morphology

In high-context cultures, time is: A) monochronic. B) polychronic. C) linear. D) short. E) common.

B. Polychronic

Danes generally are not afraid of taking chances; they are comfortable doing things that are not carefully thought out or planned. Denmark's "flexicurity" policy combines free labor markets with adjustable welfare benefits. This is an example of the application of Hofstede's typology under the values which highlight: A) Future Orientation. B) Uncertainty Avoidance. C) Gender Differentiation. D) Power Distance. E) Individualism/Collectivism.

B. Uncertainty Aviodance

Anheuser-Busch and Miller Brewing both experienced market failures in the United Kingdom when they used the phrase "light beer" which was misinterpreted as: A) being low in calories. B) having reduced alcohol levels. C) having light color. D) having less quality. E) having less quantity.

B. having reduced alcohol levels

The use of the color ________ dates back millennia as seen by artisans in ancient Egypt, China, and Mayan civilizations and is now associated with royalty and divinity. A) red B) green C) blue D) orange E) brown

C. Blue

A vice-president of an American software company introduced himself to a group of Korean partners and added "you may just call me John." Although this verbal cue shows the underlying reality that Americans have a high value on informality and equality, it needs adaptation due to the reason that: A) John is not a very popular name in Korea. B) it is difficult to translate John in Korean language. C) customs, hierarchies, and class structure of Korean culture have to be respected. D) Korean culture requires that first and last name be used in addressing guests. E) it is not appropriate to disclose nicknames in business meetings.

C. Customs, Hierarchies, and class structure of Korean culture have to be respected.

Linguists have divided the study of languages into four main areas. The system of word formation is referred to as: A) syntax. B) phonology. C) morphology. D) semantics. E) semiotics.

C. Morphology

Giving business cards with the left hand in Malaysia, showing soles of shoes to a host in Saudi Arabia, and winking one eye in India are all considered impolite interpersonal communication due to the fact that: A) in Middle Eastern countries it is customary to take off shoes at the door. B) it is difficult to notice when one winks eyes since there are many people in India. C) people pick up nonverbal cues and understand intuitively without being told. D) these actions distract people from hearing at meetings. E) people are not aware of Western ways of doing business

C. People pick up nonverbal cues and understan intuitively without being told.

When the Coca-Cola Company was developing its new Dasani bottled water brand, linguists helped guide the naming process. For example, the recurring "a" was chosen because it has a soothing sound. In linguistics, issues pertaining to letters and sounds are a matter of: A) syntax. B) synonym. C) phonology. D) semiotics. E) semantics.

C. Phonology

A characteristic of a low-context culture which is prevalent in the United States, Switzerland, and Germany is that: A) less information is contained in verbal communication. B) major emphasis is on a person's values and position in society. C) the messages are explicit and specific. D) a person's word is his or her bond. E) negotiations are long and protracted

C. The messages are explicit and specific.

Two countries that score low in uncertainty avoidance are: A) Austria and Belgium. B) Japan and Hong Kong. C) United States and Switzerland D) Denmark and Finland. E) Ireland and Italy.

C. United States and Switzerland

While some food preferences remain deeply embedded in culture, there is plenty of evidence that global dietary preferences are converging. Examples of such a change can be predicted from the: A) popularity of Domino's Pizza in Italy. B) preference for local hamburgers from a local chain, Jollibee's, in the Philippines. C) growing number of McDonald's restaurants globally. D) increased sales of soups and noodles in Thailand. E) popularity of Chinese foods in Taiwan.

C. growing number of McDonald's restaurants globally.

While marketers should be secure in their own convictions and traditions, ________ are required to appreciate the integrity and value of other ways of life and points of view. A) standard of living and stage of economic development B) production process and standards of measurement C) open mind and absence of prejudice D) degree of nationalism and economic community membership E) fast food culture and slow food culture

C. open mind and absence of prejudice

Cultural influences are also quite apparent in food preparation and consumption patterns and habits. Domino's Pizza, the world's largest pizza-delivery company, pulled out of Italy because: A) its tomato sauce was too bold and competed with Italian products. B) people did not like to eat at home. C) Italians perceived its products to be "too American." D) Italians wanted more toppings on thick crust. E) Italians did not like anyone else to use the name "pizza."

C.Italians perceived its products to be "too American"

There is nothing inherently "good" or "bad" about any color of the spectrum and all associations and perceptions regarding color arise from culture. Which of the following statements is not true? A) Red is a popular color in most parts of the world. B) Red color is associated with "active," "vibrant," and "emotional." C) Red color is preferred in many countries since it is the color of blood. D) Red color is highly preferred in some African countries. E) Red color is tied to the traditions of viticulture and winemaking.

D. Red color is highly preferred in some African countries

An intern from the United Kingdom was working in an American software company during summers. One day her boss gave her a memo asking her to post it, with the intention of having it put on the bulletin board. To her boss's surprise the letter was mailed by the intern since the word "post" means "mail" in British English. In communication terms this error can be attributed due to: A) syntax. B) phonology. C) morphology. D) semantics. E) semiotics.

D. Semantics

European consumers have faced a number of food-related issues, including an outbreak of hoof-and-mouth disease and continuing concerns over mad cow disease. As a result, many are skeptical about GMOs (genetically-modified organisms) and the benefits of eating food products that incorporate genetically-engineered ingredients. As one French citizen noted recently, "We have a very risk-averse society that has been completely traumatized by food scares." Thinking about this situation in terms of Hofstede's cultural values framework, one might reasonably interpret this remark to indicate that France ranks relatively high in: A) Power Distance. B) Short-term Orientation. C) Masculinity. D) Uncertainty Avoidance. E) Individualism.

D. Uncertainty Avoidance

According to Geert Hofstede, which of the following is a key cultural dimension that helps account for rapid economic growth in Asia? A) power distance B) individualist/collectivist C) feminine/masculine D) uncertainty avoidance E) long-term orientation

E. Long-term orientation

Which is not considered as a long-term value? A) persistence B) sense of shame C) thrift D) ordering relationships E) search for truth

E. Search for the Truth

"McDonaldization of culture," a term coined by Geert Hofstede, refers to the wide spread of McDonald's restaurants in the world and its adverse impact on global culture T/F?

False

According to Hofstede's research on cultural values, masculinity dimension describes a society in which social roles of men and women overlap T/F?

False

Aesthetic elements that are attractive, appealing, and in good taste are perceived as decent and accepted universally. T/F

False

Background music can be used effectively in broadcast commercials, however, the type of music appropriate for a commercial in one part of the world may be inappropriate in another part. T/F?

False

Culture includes conscious and unconscious values, ideas, attitudes, and symbols that shape human behavior that are confined to a generation. T/F?

False

High-context messages are explicit and specific; words carry most of the communication power. T/F?

False

In surveys about color preferences, 50 percent of respondents indicate white is their favorite-and it is favored by a wide margin over the next-preferred color, blue. T/F

False

Japanese strive to achieve cooperation, consensus, self-denial, and harmony. Because these all represent feelings about modes of conduct, they are beliefs. T/F?

False

Procter & Gamble's introduction of All-Temperature Cheer laundry detergent in Japan was a flop at first. The problem was that Japanese women wash clothes in cold water-either tap water or leftover bath water-so they don't care about all-temperature washing (which is a big selling point in the United States). Also, Cheer was first introduced in Japan at a time when the market for fabric softeners in Japan was rapidly expanding. However, when Japanese housewives added lots of fabric softener to the water, Cheer didn't produce many suds (Americans don't use as much fabric softener). P&G reformulated the product so it wouldn't be affected by fabric softeners, and ads for Cheer in Japan pledged superior cleaning in cold water, not all temperatures. Which of the following might have helped P&G avoid the initial problems with Cheer?

False

The president of an American company was interested in dealing with a company in Saudi Arabia. The Saudi CEO made it clear at the outset that the credentials in the documents have less credibility than personal trust and confidence. This shows that the Saudi Arabian culture is a high-context culture. T/F?

False

White connotes purity and cleanliness in the West, but it is often associated with death, mourning, and funerals in China and other parts of Asia. T/F?

False

SHORT ANSWER: What are some of the salient characteristics and differences between high- and low-context cultures?

In a low-context culture, messages are explicit and specific; words carry most of the communication power whereas in high-context culture, less information is contained in the verbal part of a message. Much more resides in the context of communication, including the background, associations, and basic values of the communicators. Japan and Saudi Arabia are examples of high-context culture, where a great deal of emphasis is placed on a person's values and position or place in society. In a low-context culture, such as the United States, Switzerland, or Germany, deals are made with much less information about the character, background, and values of the participants. In a high-context culture, a person's word is his or her bond. As a result, lawyers are much less important in high-context cultures. This also makes negotiations lengthy in high-context culture since several meetings or prodding is needed.

SHORT ANSWER: The diversity of cultures around the world is reflected in languages and communication. When KFC translated its slogan "Finger Licking Good" it became "Eat your fingers" in Chinese; similarly "Pepsi is for Generations" became "your grandparents will come out of the grave to drink Pepsi." Studies showing how linguists have divided the study of spoken or verbal language demonstrate how verbal and non-verbal communication can have an impact on marketing around the world.

Linguists have divided the study of spoken language into four main areas: syntax (rules of sentence formation); semantics (system of meaning); phonology (system of sound patterns); and morphology (word formation). Unspoken or nonverbal communication includes gestures, touching, and other forms of body language. Both the spoken and unspoken aspects of language are included in the broader field of semiotics, which is the study of signs and their meanings. Language is a crucial tool for communicating with customers and channel intermediaries. Words have different meanings in different cultures. For example post in America may refer to putting something on a bulletin board, whereas in British English it may mean mailing through the post office. Similarly, Miller Lite was considered to have less alcohol in Europe, whereas Diet Coke was considered as a dietary supplement in the Middle East. Changes were made to market Miller Lite as Miller Pilsner in Europe and Diet Coke as light coke in the Middle East. In addition to syntax and semantics, phonology can have an impact. For example there is no letter that sounds like P in Arabic so Pepsi sounds like Bebsi and Popeye's sounds like Bobeye's. Similarly, sounds of r and l are intermixed in Chinese. In the United States recently, Sioux Gateway City airport decided to keep the symbol "SUX" although there were a lot of comments about its phonology. On the other hand, the airport decided to use it in marketing by using the slogan "Fly SUX" thereby making it easy for people to remember it. Semantics can also have an impact, such as the word Esso has negative connotation in some languages; Nova (as in Chevy Nova) meant it does not move and Colgate means "go hang yourself" in Spanish. Also, nonverbal cues can have different meanings. In some cultures shaking the head from right to left is considered as yes whereas it means no in some other cultures. Shaking hands is considered as finalizing the deal in some cultures and in others it is just an introduction. There are different ways of bowing in Far Eastern cultures to indicate different aspects. Thus, verbal and nonverbal communications have a distinct impact on marketing practices.

SHORT ANSWER: Applying Hofstede's typology, show how Power Distance and Gender Differentiation can influence the marketing of products and services in different countries

Power Distance is the degree to which members of a particular society expect power to be unequally shared. Hong Kong and France are both high power-distance cultures; low power distance characterizes Germany, Australia, the Netherlands, and Scandinavia. The power distance dimension reflects the degree of trust among members of society. The higher the power distance, the lower the level of trust. Companies in high power-distance cultures prefer sole ownership of subsidiaries because it provides them with more control. On the other hand, companies in low power-distance cultures are more apt to use joint ventures

SHORT ANSWER: London's Sunday Times reported that Mecca-Cola has become the drink which has come to be seen as "politically preferable" to Pepsi or Coke in many Muslim countries. Also, Danish products were boycotted in many Islamic countries in protest of an offensive cartoon that was printed in Danish newspapers. Considering these two examples, show how religion can have an impact on marketing.

Religion is one of the most important sources of a culture's beliefs, attitudes, and values. Hindus do not eat beef, which means that McDonald's does not serve hamburgers in India. There was a big uproar when it was found that McDonald's french fries had beef as one of the ingredients. Similarly, Jews do not combine fish and dairy products, which makes McDonald's fish fillet a problem for them. Jews and Muslims do not eat pork, which rules out the use of bacon in many products sold by fast food operations. Restaurants in Malaysia have to declare that all meats are Halal or sacrificed in a specified religious way. In addition to religious requirements, religious sentiments also play an important role. After the incidents of September 2001, there was a distinct feeling of anti-Americanism in many parts of the world, particularly the Middle Eastern region. Mecca-Cola was an attempt to make indigenous products to compete with American ones. One of the concerns in allowing Turkey to join the European Union is that it is predominantly Islamic, whereas other members are comprised of Christians. All these cases show that religion plays a very important role in how people live as well as buy products and services.

SHORT ANSWER: There are considerable differences and similarities among world cultures. This makes the task of the global marketer much more difficult. Giving examples, show what factors have to be taken into account when planning marketing strategy for different parts of the world.

The task of the global marketer is twofold based on the differences and similarities prevalent worldwide. First, marketers must study and understand the country cultures in which conduction of business is planned. Secondly, marketers must incorporate this understanding into the marketing planning process. Several adaptations will be needed in developing strategies. Deep cultural understanding can actually be a source of competitive advantage for global companies. It is not only the language but deep understanding of culture and developing a relationship that is of paramount importance. In a new geographic market, it requires a combination of tough-mindedness and generosity. While marketers should be secure in their own convictions and traditions, generosity is required to appreciate the integrity and value of other ways of life as well as points of view. People should overcome the prejudices that are a natural result of the human tendency toward ethnocentricity.

A latent market is, in essence, an undiscovered market segment True/False>

True

According to Hofstede's definition of culture a particular "category of people" may constitute a nation, an ethnic group, a gender group, an organization, a family, or some other unit. T/F?

True

Although some food preferences remain deeply embedded in culture, plenty of evidence suggests that global dietary preferences are converging. T/F?

True

Americans typically want to "go it alone." As a result, they may be outnumbered in a negotiation situation. T/F?

True

Cadbury has trademarked the color purple for its chocolate confectionary packaging. T/F?

True

Colgate discovered that in Spanish colgate is a verb form that means "go hang yourself." T/F

True

Domino's Pizza had to pull out of Italy because Italians perceived its products to be "too American." T/F?

True

Historically, the lagoon in Venice provided Venetians with a safe haven from Germanic and Hun invaders. T/F?

True

If Avon would like to sell cosmetics in India, a good estimate can be achieved by researching the average wage of an office secretary. T/F?

True

If a potential Latin American customer insists on giving you a tour of the architectural highlights of his city prior to discussing business, it's a clue that you are doing business in a high-context culture. T/F?

True

In China, Dell had to find a meaningful interpretation of "direct sales," the phrase that describes the company's powerful business model. T/F?

True

In Indonesia, home of the world's largest Muslim population, KFC uses Ramadan-themed outdoor advertising to encourage Indonesians to come to the restaurants at buka puasa, the end of each day's fast. T/F

True

In Korea 4 5683 968 can be interpreted as "I love you." T/F?

True

Music is an aesthetic component of all cultures and is accepted as a form of artistic expression and a source of entertainment. T/F?

True

One reason cultural factors challenge global marketers is that many of these factors are hidden from view. T/F?

True

Westerners doing business in the Middle East must be careful not to reveal the soles of their shoes to hosts or pass documents with the left hand. T/F?

True

When marketers refer to "fast-food culture", or "credit-card culture" they are referring to a cosmopolitan culture which is comprised of various segments of the population which are interconnected. T/F?

True