Lesser distance to British English than to other Europea

1
ELECTRONIC COMMERCE

• Strategies
• Regional markets
• Risks
• Language issues
• Other cultural issues
• Legal/regulatory issues

Reference Carolyn Siegel (2006), Internet
Marketing Foundations and Applications,
Houghton-Mifflin.
2
Strategies

• Exclusionary
• Solely domestic
• Inclusionary
• Passively international
• Glocals (adaptive approach)
• Globals (standardized approach)

Middle ground
Completely standardized (Globals)
Completely adapted
3
Evaluating Markets

• Economic viability
• Income distribution and averages
• Segment potential
• Internet readiness
• Least Internet Ready Areas of the World (LIRAs)
  (35 of World population)
• Internet Ready Areas of the World (IRAs) (50)
• Internet Leaders (15)

4
Internet Readiness Indices

• Economist
• Approximately 100 measures in 6 categories
• Technology infrastructure
• General business environment
• Consumer and business adoption of e-business
• Social/cultural conditions affecting Internet use
• Availability of e-business support services

• Information and Telecommunications (ITC)
• International Telecommunications Union
• 26 indicators-e.g.,
• Technology infrasturctures
• Market conditions

5
Internet Readiness Criteria

• Infrastructure availability
• Performance
• Types of access available
• Cost of access
• Metered
• Unmetered
• Dial-up issues
• Proportion of population with access

6
LIRAS

• Southern Mexico
• Andean countries
• Most of Brazil
• Sub-Saharan Africa
• Remotest former Soviet Republics
• Laos, Cambodia
• Chinese interior

Reference Carolyn Siegel (2006), Internet
Marketing Foundations and Applications,
Houghton-Mifflin.
7
IRAs

• Coastal India
• Parts of Brazil
• Northern Mexico, Mexico City
• Hungary
• Estonia
• Malaysia
• Former Soviet Republics closer to Europe
• Parts of China (e.g., Shanghai, Hong Kong)

Reference Carolyn Siegel (2006), Internet
Marketing Foundations and Applications,
Houghton-Mifflin.
8
Internet Leaders

• U.S., Canada
• Western Europe
• Japan
• Australia
• New Zealand
• Taiwan
• South Korea
• Israel

9
Countries with Largest Absolute Number of
Internet Users
10
Countries With the Largest Absolute Number of
Users
Sources World Bank, Nielsen
11
Country Internet Penetration Rates by Per Capita
GDP
Note accounting issues!
Source Nielsen.
12
Online Language Communities

• Sizable group of people communicating in the same
  language
• Not proportional to percentage of off-line
  speakers
• Demographics of Internet users within a country
• Willingness to use English or other language sites

13
Risks in International Expansion

• Over-expansion
• Brand dilution
• Over-estimation of revenue
• Under-estimation of costs
• Underestimation of competition
• Regulations

14
Area Issues

• Europe
• High penetration rates access outside home
• Strong economies
• Low credit card use
• Competing technologies
• Interactive TV

• U.S./Canada
• Canadian specialty shopping
• High penetration rates
• Weakening U.S. dollar strengthening Canadian
  dollar
• Mexico
• Growth potential
• Low credit card penetration

15
More Regions

• Asia/Oceania
• China/Japan
• Use of wireless technology for other purposes
• Low rates of credit card use
• China
• Modest economic power
• Japan
• Internet ordering through local merchants

• South Korea
• High Internet penetration rate (45)
• Faster high speed access than in the U.S.
• Australia/New Zealand
• English language use
• Relatively similar culture to U.S.
• High shipping costs

16
Language Issues

• Prior to 2000, 96 of web sites were estimated to
  be in English, the first language of 6 of the
  World population
• 40.2 of online users are estimated to speak
  English to some extent
• 2000 Non-English speakers became majority of
  Internet users

• 75 of Europeans are multi-lingual 90 of these
  include English
• Dangers of U.S. English
• British English is international standard
• American often perceived as misspelled
• Use of slang
• Lesser distance to British English than to other
  European languages

17
Language Display

• Single-byte (Latin-based) vs. double-byte
  languages (Cyrillic, Arabic, Chinese, Japanese,
  Korean)
• Characters may not be displayed correctly (????
  in Internet Explorer)
• Conversion software
• Brower adaptation may not be backwards
  compatible with other software

18
Translation

• Whole vs. part
• FAQ, feedback forms, product specifications,
  warnings, shopping cart info, legal
• Quality of translation
• Superficial
• De-centering (back translation)
• English language instruction as a product

19
Cultural Issues

• Color
• Black as background
• Stylish in U.S.
• Unlucky in Asia, Europe, Latin America
• Red as a lucky color in China but can be
  over-used
• White and green are unlucky in Cina

• Symbolism
• Dogs as pets
• Numbers
• Unlucky numbers
• 4, 9, 13 (Japan)
• 4, 14 (China)
• Lucky numbers
• 1, 8 (China)
• Formality of communication

20
More Cultural Issues

• Measurement issues
• Metric vs. U.S., British systems
• Clothing sizes
• Representation of numbers
• 1,000.00 vs. 1.000,00
• Dates

• Offensive content
• Specific body parts
• Revealing content
• Gestures

21
Government Issues

• Regulation
• Extraterritorial laws and regulations
• Privacy
• Safe Harbor procedures
• Encryption restrictions

• Extent of regulation
• Protection of small businesses
• Limitations on online advertising (China)
• Taxation
• Censorship
• Fraud

22
International Internet Users

• Finding buyers
• Local search engines
• Advertising
• Search engine optimization
• Mailing lists from catalogs prior to Internet
  entry
• Demographics
• Gender ratios
• Socioeconomic status of users

• Access speed
• High broadband access rates in Europe and Korea
• Out-of-Home Access
• Portable systems
• Web enabled cell phones/PDAs
• Solar/battery powered devices for developing
  World
• Pirates and piracy

23
Selected Issues

• Internet governance
• Running of top domain and IP numbering systems
• Fear of constraining influences if countries with
  reputations for censorship participate
• Cross-border spamming
• Identification
• Action against offenders
• Censorship issues
• Extreme (China, Singapore)
• More modest (Europe)

• Gambling
• U.S. based
• Indirect ownership of foreign sites
• Foreign based
• Loopholes in rules
• Import/export constraints
• Government oversight/ regulation
• Extent of regulation
• Policy on competition

24
The Culturally Customized Web Site

• Book objectives
• Describe comprehensive study of web site
  evaluation by consumers in five countries
• Make suggestions for adapting web sites for
  different cultures
• Book web site

http//theculturallycustomizedwebsite.com/
25
Chapter 1Cultural Customization

• Some issues
• Values depicted
• Aesthetics
• Conventions
• Symbolism
• Color
• Desirability of features
• For reassurance
• To affirm values

• Some areas considered
• Hofstedes dimensions
• High vs. low context orientation of culture

26
Research

• Level of customization vs.
• Attitude (liking)
• Purchase intention
• Both more favorable attitudes and higher purchase
  intentions for customized web sites in several
  countries
• Italy
• India
• Netherlands
• Switzerland
• Spain

27
Web Site Classifications (Somewhat Arbitrary)

• Standardized
• Same content for whole world
• http//www.Tyco.com
• Semi-Localized
• Limited local informatione.g., contact info for
  foreign subsidiaries
• http//www.Gap.com
• Localized
• Country specific pages
• Translation into local languages as needed
• http//www.Dell.com

• Highly localized
• Country specific URLs
• Local formats (e.g., zip vs. postal code, time)
• Local content
• http//www.Amazon.com http//www.Amazon.co.uk
• Culturally customized
• Complete immersion
• Three levels
• Adaptation
• Symbolism
• Behavior
• None identified closest is http//www.Ikea.com

28
Ch. 2 The Rationale for Cultural Customization

• Web return on investment (ROI)
• Characteristics favoring customization
• Open
• Interactive ? dialogue, culturally sensitive
• Hyperlinks, self search ? need for motivation
• Customization opportunities from technology ?
  ability to meet diverse customer needs
• Increasing bandwidth ? opportunities for
  integrated experience based on customization
• Need to hold customers ? need for motivation

29
Relevant Cultural Issues Perception, Language

• Perceptionwhat is
• Noticed
• Processed
• Language
• Chinese found to learn faster visually due to
  pictoral alphabet
• Color perception
• Associations, preferences
• Naming

• Implications
• Spatial orientation (right-left, left-right,
  up-down) ? navigation modes
• Translation issues
• Idiomatic equivalence
• Vocabulary equivalence
• Conceptual equivalence

30
More Language Issues

• Dialects
• Text length ? formatting implications
• Language structure
• Use of acronyms
• Color categories

31
Cultural Issue Symbolism

• Association of concepts or images with meaning
  (e.g., flag with patriotism)
• Associations will tend to vary often based on
  language and experience or word sounds (Chinese)
• Country specific symbols

32
Cultural Issue Behavior

• National norms
• Expectations of how to do things
• Relationships between people

33
Ch. 3 A Cultural Values Framework for Web Design

• Cultures vs. countries ? may need to
  subdividee.g.,
• India, Ireland, Switzerland
• Culture vs. within-culture variatione.g.,
  lifestyle segmentation (VALS2)

34
Chapter 4Cultural Customization
Individualism-Collectivism

• The extent to which goals of the individual, as
  opposed to the group, are valued
• Extent to which individual differences in
  behavior are accepted and/or encouraged

35
Country Examples

• High
• U.S.
• Australia
• U.K.
• Netherlands
• Canada
• New Zealand
• Middle
• India
• Japan
• Argentina
• Arab World

• Low
• Guatemala
• Ecuador
• Panama
• Venezuela
• Columbia
• Indonesia
• China
• Pakistan
• Indonesia
• Taiwan

36
Authors Caveats

• Numbers represent averages
• Web sites which happen to portray individualist
  and/or collectivist values may do so without
  actually having sought to customize for the
  particular culture
• Other variables are important

37
Suggestions for Sites for Collectivist Societies

• Clubs
• May be offlinesense of belonging
• Chat rooms
• Emphasis on community relations
• Family (we) theme
• Family bonds
• Loyalty programs
• To company or brand
• Japanese amaeloyalty to the group

• Links to local web sites
• Demonstration of connection to local community
• Symbols/pictures of national identity
• Flags
• Architecture
• Important buildings
• Local role models

38
Suggestions for Sites for Individualist Societies

• Independence theme
• I-consciousness
• Individual determinism
• Invest on your terms
• Strong privacy statement

• Personalization and product uniqueness
• Unique content (e.g., self-selected news,
  features, adjustment of view)
• Personalized products, if applicable
• Personal product recommendations

39
Chapter 5Uncertainty Avoidance

• Relative importance of predictable environment,
  defined structure, order vs. acceptance of risk
  taking, reduced structure, and acceptance of
  ambiguity
• Extent of acceptance of new ways of doing things
  if not known
• Valuing conservatism and traditional beliefs
• Example Mexican beverage company explicitly
  lists behaviors expected from employees

40
Countries

• High
• Greece
• Portugal
• Guatemala
• Uruguay
• El Salvador
• Belgium
• Japan
• Medium
• Germany
• Thailand
• Iran
• Finland

• Low
• Singapore
• Jamaica
• Denmark
• Hong Kong
• Sweden
• Ireland
• U.S.

Note that no clear geographic patterns are
evident.
41
Suggestions for Sites for High Uncertainty
Avoidance Societies

• Customer service
• Personnel positioned as experts
• Easily accessible on the site
• Guided navigation
• Traditional theme
• Connection to local stores
• Depictions
• Ability to return merchandise
• Local terminology

• Free
• Trials
• Downloads
• Transaction security
• Testimonials

42
Suggestions for Sites for Low Uncertainty
Avoidance Societies

• None listed. Ideas?

43
Chapter 6Cultural Customization Power Distance

• Extent to which hierarchy and status are
  emphasized as opposed to a preference for more
  distributed power and decision making
• High sensitivity to those older, with seniority,
  and in authority
• Tendency to obey suggestions from authority
  figures

• Preference for face-to-face contact for display
  of respect
• Emphasis on hierarchical structures
• Emphasis on organization charts

44
Countries

• High
• Malaysia
• Panama
• Guatemala
• Philippines
• Mexico
• Arab World
• Middle
• Taiwan
• Iran
• Spain
• Poland

• Low
• Austria
• Israel
• Denmark
• New Zealand
• Ireland
• Norway

45
Suggestions for High Power Distance Societies

• Hierarchy information
• Picture of CEO and other important people
• Use of proper titles
• Quality assurance
• Superior quality
• Awards
• Vision statement by CEO

46
Suggestions for Low Power Distance Societies

• None specifically listed. Ideas?

47
Chapter 7Cultural Customization
Masculinity-Femininity

• Value of achievement, assertiveness, ambition vs.
  nurturance, care for others
• Masculine societies
• Tendency toward clear gender roles
• Success orientation
• Decisiveness
• Directness (depending on levels of collectivism,
  power distance)

• Feminine societies
• Oneness with nature
• Service orientation
• Harmony
• Modesty

48
Countries

• High masculinity
• Japan
• Hungary
• Austria
• Venezuela
• Switzerland
• Mexico
• Middle
• Malaysia
• Brazil
• Singapore
• Israel
• West Africa

• High Femininity
• Sweden
• Norway
• Netherlands
• Denmark
• Costa Rica
• Finland

49
Recommendations for Masculine Societies

• Indication of product effectiveness
• Quizzes, games (competitive element)
• Realism theme
• Decisiveness vs. fantasy, imagery
• Rational/performance appeals
• Clear depiction of gender roles and segregation
• E.g., female section of Japanese search engine

50
Recommendations for Masculine Societies

• Similar considerations to high context
  societies
• Harmony
• Aesthetics
• Soft sell

51
Chapter 8Cultural Customization High-Low
Context

• Importance of context in communication
  styleimportant information may be embedded in
  society as opposed to being more detailed and
  explicit with unambiguous explanation.
• High context societies
• Politeness/indirectness are emphasized
• Soft sell approach
• Aesthetics

• Low context societies
• Hard sell
• Superlative word usage
• Emphasis on rank and prestige of company
• Explicit terms and conditions
• Emphasis on logical, linear thinking
• Action orientation
• Emphasis on rationality

52
Countries

• High Context
• Asia (generally)
• Africa
• South America
• Parts of Middle East
• Japan
• China
• Spain
• Thailand
• Turkey
• Taiwan
• Philippines

• Low context
• Most of Northern Europe
• North America
• New Zealand
• Australia
• U.K.

53
Recommendations

• For High Context Societies
• Aesthetics
• Politeness
• Indirectness
• Soft-sell approach

• For Low Context Societies
• Harder sell
• Terms and conditions
• Rank
• Prestige
• Superlatives