International Marketing- Unit 2

Hofstede's Culture

1. Individualism/collectivism 2. Power distance 3. Masculinity/Femininity 4. Uncertainty avoidance

3. Masculinity/Femininity

A society is masculine when it favors assertiveness, earning money, showing off possessions and caring little for others, while feminine societies are the opposite

________ 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

Culture

Factual Knowledge vs Interpretive Knowledge

Factual knowledge about a culture; it is usually obvious and must be learned. Different meanings of color, different tastes and other traits indigenous to a culture are facts that a marketer can anticipate, study and absorb. Interpretive knowledge: an ability to understand and to appreciate fully the nuances of different cultural traits and patterns.

As countries move from agricultural to industrial to services economies, birth-rates increase. True/False?

False

Adaption

Flexibility Adjustability Ability to integrate Knowledge of country Tolerance

In the context of culture's pervasive impact, which of the following is true about birth-rates?

Government policies and birth control technologies have caused a decline in birth-rates.

1. Individualism/Collectivism

In collective countries there is a close-knit social structure, while in individualistic countries people are basically supposed to care for themselves

In the context of international business negotiations, cultural differences at the level of _____ may cause problems.

Language

Introducing Culture

Marketers have two options when introducing an innovation to a culture: they can wait or they can cause change.

Culture

Material culture: economics, technology Social institutions: political structure, organizations Education: literacy rate, role and levels Belief systems: religion, superstitions, power structure Aesthetics: graphics and art, folklore, music etc Language: use of foreign languages, spoken vs written

2. Power distance

Power distance refers to the extent to which a society and its individuals tolerate an unequal distribution of power

Frame of Reference

The marketer's frame of reference must be that markets do not occur or exist naturally - they become, they evolve; they are not static but change, expand and contract

It is imperative for foreign marketers to learn to appreciate the intricacies of cultures different from their own if they are to be effective in foreign markets. True/False?

True

Japanese diet's emphasis on fish yields them the longest life expectancy. True/False?

True

4. Uncertainty Avoidance

Uncertainty avoidance refers to the degree to which a society feels threatened by uncertain, ambiguous or undefined situations. In a high uncertainty avoidance society people look for stable careers and follow rules and procedures

Cultural exclusives

are those customs or behavior patterns reserved exclusively for the local people and from which the foreigner is excluded

Cultural sensitivity

being attuned to the nuances of culture so that a new culture can be viewed objectively, evaluated and appreciated

Self reference criterion

considering our own conditions, values, and norms while evaluating other

Cultural imperative

refers to the business customs and expectations that must be met and conformed to if relationships are to be successful. friendship, human relations, level of trust

Cultural adiaphora

relates to areas of behavior or to customs that cultural aliens may wish to conform to or participate in but that are not required

Culture's Essence

the members of a group share a set of ideas and values these are transmitted by symbols from one generation to another culture is an outcome of past actions of a group or its members culture is learned culture shapes behaviour and our perception of the world it is reinforced by components such as language, behaviour and 'nation'

Culture Change

the use of something new is the beginning of cultural change and the marketer becomes a change agent

Ethnocentrism

when we behave in an ethnocentric way, there is an exaggerated tendency to believe our own values/norms/culture are superior to those of others complicates the process of cultural assimilation by producing feelings of superiority about one's own culture and, in varying degrees, generates attitudes that other cultures are inferior, barbaric or at least peculiar.