Theoretical Frameworks to Understand Culture

1
Theoretical Frameworks to Understand Culture
2
(No Transcript)
3
(No Transcript)
4
"Hook 'em, 'Horns"

• President Bush and family may have inadvertently
  ruffled feathers overseas by flashing a "Hook 'em
  'Horns" sign during inaugural parade few years
  back.
• 'Horns" salute -- customary among University of
  Texas __________

5
Hook Em Horns

• In Norway and some other parts of the world, a
  nearly identical hand gesture is considered an
  ______or a sign of the __________l.
• In Mediterranean countries, implies a man is a
  ______, the victim of an unfaithful wife.
• In parts of Africa, used as _____.
• In many European countries, used to ward off "the
  evil eye."
• In Russia, a symbol for "New Russians," the newly
  rich, arrogant and poorly educated.
• In sign language, means an off-color word for
  ________________

6
What Was Being Said Here?
7
What is culture?

• Ways of living, built up by a group of human
  beings, transmitted from one ________ to another
• Acts out ways of living in social institutions
• Family
• Education
• Religion
• Government
• Business
• Includes both ________ and __________values,
  ideas, attitudes, and symbols that shape human
  behavior and are transmitted from one generation
  to the next.

8
Elements of Culture

• Culture consists of many interrelated components.
  _________ of a culture requires a deep
  understanding of its different parts. Following
  are the elements of culture
• ________ (technologies that are used to produce,
  distribute, and consume goods and services)
• Language (language has two parts the spoken and
  the silent language, back translation)
• Social Interaction (social interactions among
  people nuclear family, extended family
  reference groups.)

9
Elements of Culture (contd.)

• __________ (ideas and perceptions that a culture
  upholds in terms of beauty and good taste)
• _________ (communitys set of beliefs that relate
  to a reality that cannot be verified empirically)
• _______ (One of the major vehicles to channel
  from one generation to the next)
• _________ (values shape peoples norms and
  standards)

10
Aesthetics and Color

• What do you associate with Red?
• Active, hot, vibrant
• Weddings in some Asian cultures
• Poorly received in African countries

• With white?
• Purity, cleanliness
• Death in parts of Asia

11
(No Transcript)
12
Dietary Preferences

• Would you eat..
• Reindeer (Finland)
• Rabbit (France)
• Haggis (Scotland)
• Rice, soup, and grilled fish for breakfast
  (Japan)
• Kimchi - Korea
• Blood sausage (Germany)
• Hot dogs (US!)

13
Cultural Orientations Two different ways to
look at them

• Low Context vs. High Context
• _____________
• Hofstedes Definition of Culture the
  collective programming of the mind that ________
  the members of one category of people from those
  of another. Dimensions of Culture
• Power Distance
• Individualism/ Collectivism
• Masculine/ Feminine
• Risk Avoidance
• Time distance

14
High and Low Context Cultures
Low
High
Cloudy amorphous tacit
Clear well defined explicit
15
I. High and Low Context Cultures

• High Context Cultures (eg, Japan, Saudi Arabia,
  India)
• _____ information contained in verbal, _____ in
  non-verbal communication
• Meaning of individual behavior changes depending
  on the situation
• __________ messages full of important and
  intended meanings, subtle
• Important to read between the lines
• _______ emphasis on legal paperwork
• Focus on personal reputation

16
I. High and Low Context Cultures

• Low Context Cultures (eg, USA)
• Intentions are expressed _____, directly
• Situation is not allowed to change the meaning of
  words and behavior
• Straight talk
• Messages are ________and _______
• Words carry all information
• Reliance on legal paperwork
• Focus on non-personal documentation of
  credibility

17
(No Transcript)
18
(No Transcript)
19
II. Hofstedes Model

• 5 Cultural dimensions
• See Table 4-4 for some country rankings on
  dimensions
• Power Distance all societies are unequal, some
  are more so
• Extent to which society tolerates inequalities of
  intellectual and physical capabilities, of life
• Individualism versus collectivism relationship
  between _______and his or her fellows

20
II. Hofstedes Model

• Masculinity versus femininity identification of
  ______ and work roles (Japan - HI Sweden - LO)
• Uncertainty avoidance acceptance of ambiguous
  situations and tolerance of uncertainty
• Aggressive, intolerant and emotional behavior
  versus contemplative, relativistic tolerance
• Time Orientation _____ term vs ______ term
  orientation
• Persistence in Japan implies long term RD

21
Individualism and Power Distance
Power Distance Index (PDI)
GUA
EQA
COL
PAN
VEN
PAK
IDO
Large power distance Low individualism
COS
Small power distance Low individualism
12 18 24 30 36 42 48 54 60 66 72 79 85 91
PER
SAL
TAL
SIN
KOR
THA
WAF
CHL
HOK
PHL
YUG
MAL
POR
EAF
MEX
PHI
GRE
TUR
URU
ARA
BRA
JAM
ira
ARG
JPN
IND
AUT
SPA
ISR
FIN
SAF
GER
NOR
SWI
FRA
SWE
IRE
BEL
DEN
ITA
CAN
NZL
Large power distance High individualism
NET
USA
GBR
Small power distance High individualism
AUL
11 28 44 61
77 94 111
Figure 3-5
Source G. Hofstede, The Cultural Relativity of
Organizational Practices and Theories, Journal
of International Business Studies 14 (Fall
1983), pp. 75-89.
22
Uncertainty Avoidance and Masculinity
Masculinity Index (MAS)
Weak uncertainty avoidance Feminine
Weak uncertainty avoidance Masculine
8 16 24 32 40 48 56 64 72 80 88 96 104 110
SIN
JAM
DEN
HOK
SWE
GBR
IRE
MAL
IND
PHI
USA
CAN
NOR
IDO
SAF
NET
NZL
AUL
EAF
WAF
IRA
FIN
SWI
THA
ARA
GER
TAI
AUT
PAK
BRA
ITA
VEN
COS
ISR
CHL
FRA
COL
TUR
SPA
MEX
PAN
ARG
KOR
YUG
PER
SAL
BEL
JPN
URU
GUA
POR
Strong uncertainty avoidance Masculine
Strong uncertainty avoidance Feminine
GRE
5 23 41
59 77 95
Figure 3-6
Source G. Hofstede, The Cultural Relativity of
Organizational Practices and Theories, Journal
of International Business Studies 14 (Fall
1983), pp. 75-89.
23
Marketing Implications

• Time Orientation
• Relationship building (Long) versus transaction
  oriented business (short)
• Propensity to _______ (short) or ____ (long)
• Persistence (long)
• Performance implications on companies
• Implications on RD and innovation, and
  investment

24
Marketing Implications

• Uncertainty avoidance (high)
• Comfort zone of buyers -- Risk
• More brand conscious higher brand loyalty in
  Japan
• Focus on warranties, money back guarantees
• Brand Loyalty
• In Germany, if you buy your first BMW when you
  are 16, you are going to be buried in one when
  you are 90
• Implications for customer acquisition costs
• German consumers are more quality conscious, and
  are more touchy-feely than Americans

25
Marketing Implications

• Power distance
• Reflected in hierarchical firm structure
• Relationships between superiors and subordinates
• Preference for solely owned subsidiaries rather
  than joint ventures
• Degree of trust in society
• Higher the distance, lower the trust

26
Marketing Implications

• Masculinity-Femininity
• Achievement and possessions versus helpfulness
  and social support
• Will a _______ assertive woman be effective in
  selling to a staid old Japanese company?
• Collectivism vs. Individualism
• Team orientation and desire for harmony
• Word of mouth

27
Marketing Implications

• Use Hofstede to create culturally appropriate
  consumer brand images
• Image that emphasizes functional benefits of
  products (low power distance)
• Social brand image (high power distance, low
  individualism)
• Fulfill consumer needs for group membership,
  affiliation
• Sensory appeal (high individualism)
• Novelty, variety

28
Self-Reference Criterion

• SRC ________ reference to ones own cultural
  values creates cultural myopia
• How to Reduce Cultural Myopia
• Define the ______ or goal in terms of home
  country cultural traits
• Define the _______ in terms of host-country
  cultural traits make no value judgements
• Isolate the SRC influence and examine it
• Redefine the problem without the SRC influence
  and solve

29
Diffusion Theory

• The process by which individuals ______ a new
  idea
• Three basic concepts
• _______ process
• Characteristics of Innovations
• ________ categories

30
Process of Adoption of Innovations
1. Awareness Mass media advertising important!
2. Interest Consumer seeks out additional
information
3. Evaluation
4. Trial Free samples, test drive
WOM, sales reps important
5. Adoption
31
Rate of Adoption of Innovations
Relative Advantage How does ____Product
compare to ______? Compatibility Extent to
which a product is ________ with old values,
experience, products Complexity Is new product
_________ to use or understand? Divisibility
Ability of product to be _____ and used on
limited basis w/o great expense Communicability
Degree to which ________ of Innovation or value
of product can be communicated to the market
32
Adopter Categories
Bell shaped curve based on the assumption of
human interaction In a social system where an
adopter passes the information onto two people.
33
Implications for international sales diffusion

• Depends on word of mouth
• In collectivist, homogenous, and risk averse
  cultures
• Fewer innovators
• But diffusion is _____ to be ______ (see Fig 4-2)

34
Environmental Sensitivity (Fig. 4-3)
35
Six rules of thumb for doing business across
cultures

• Be prepared
• Slow down
• Establish trust
• Understand the importance of language
• Respect cultural differences
• Understand that no culture is inherently superior
  in all aspects

Note For the exam, understand all of Ch. 4.