CHAPTER 4 SOCIAL AND CULTURAL ENVIRONMENTS SUMMARY Culture, a societys programming of the mind, has both a pervasive and

changing influence on each national market environment. Global marketers must recognize the influence of culture and be prepared to either respond to it or change it. Human behavior is a function of a persons own uni ue personality and that persons interaction with the collective forces of the particular society and culture in which he or she has lived. !n particular, attitudes, values, and beliefs can vary significantly from country to country. "lso, differences pertaining to religion, aest eti!s, dietary customs, and language and communication can affect local reaction to brands or products as well as the ability of company personnel to function effectively in different cultures. " number of concepts and theoretical frameworks provide insights into these and other cultural issues. #ultures can be classified as i" # or l$%#!$&te't$ communication and negotiation styles can differ from country to country. Hofstedes social value typology sheds light on national cultures in terms of ($%er dista&!e) i&dividualis* vs. !$lle!tivis*) *as!uli&it+ vs, fe*i&i&it+, u&!ertai&t+ av$ida&!e, and l$&"# versus s $rt#ter* $rie&tati$&, %y understanding the self#refere&!e !riteri$&) global marketers can overcome the unconscious tendency for perceptual blockage and distortion. &ogers classic study on the diffusi$& $f i&&$vati$&s helps e'plain how products are adopted over time by different ad$(ter !ate"$ries. (he ad$(ti$& (r$!ess that consumer go through can be divided into multi)stage ierar! + $f effe!ts, &ogers findings concerning the ! ara!teristi!s $f i&&$vati$&s can also help marketers successfully launch new products in global markets. &ecent research has suggested that "sian adopter categories differ from the *estern model. "n awareness of e&vir$&*e&tal se&sitivit+ can help marketers determine whether consumer and industry products must be adapted to the needs of different markets. OVERVIE(he *alt +isney #ompany, home to ,ickey ,ouse, +onald +uck, and other iconic characters, has a stellar reputation in many parts of the world for its family)friendly entertainment offerings. However, despite high worldwide awareness levels of the +isney brand, as of -../, only -0 percent of the companys revenues came from outside the 1nited 2tates. 3ow, as the company targets #hina, !ndia, 2outh 4orea, and other emerging markets, it is departing from its one size fits all approach. (he changes underway at the *alt +isney #ompany illustrate how differences in the social and cultural environments impact marketing opportunities and dynamics around the globe.

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(his chapter focuses on the social and cultural forces that shape and affect individual, group, and corporate behavior in the marketplace. *e start with a "e&eral dis!ussi$& $f t e basi! as(e!ts $f !ulture a&d s$!iet+ a&d t e e*er"e&!e $f a t%e&t+#first !e&tur+ "l$bal !$&su*er !ulture, Ne't) several useful !$&!e(tual fra*e%$r.s f$r u&dersta&di&" !ulture are (rese&ted, (hese include Hall/s i" # a&d l$%#!$&te't !ulture !$&!e(t) Masl$%/s ierar! +) H$fstede/s !ultural t+($l$"+) t e self#refere&!e !riteri$&) a&d diffusi$& t e$r+, (he chapter includes specific e'amples of the impact of culture and society on the marketing of both consumer and industrial products. ANNOTATED LECTURE0OUTLINE SOCIETY) CULTURE) AND 1LO2AL CONSUMER CULTURE - at are t e t%$ tas.s $f t e "l$bal *ar.eter3

%oth differences and similarities characterize the worlds cultures, meaning that the tasks of the global marketer is twofold. :irst, marketers must study and understand the country cultures in which they will be doing business. 2econd, this understanding must be incorporated into the marketing planning process. !n some instances, strategies and marketing programs will have to be adapted$ however, marketers should also take advantage of shared cultural characteristics and avoid unneeded and costly adaptations of the marketing mi'. ,arketers should be secure in their own convictions and traditions, generosity is re uired to appreciate the integrity and value of other ways of life and points of view. "lthough cultural shock is a normal human reaction to the new and unknown, successful global marketers strive to comprehend human e'periences from the local point of view. Defi&e 4!ulture5

Culture can be defined as ways of living, built up by a group of human beings that are transmitted from one generation to another. " culture acts out its ways of living in the conte't of social institutions, including family, educational, religious, governmental, and business institutions. #ulture includes !$&s!i$us and u&!$&s!i$us values) ideas) attitudes) and s+*b$ls that shape human behavior and that are transmitted from one generation to the ne't. I&t$ % at t%$ *ai& !ate"$ries !a& !ulture be divided3

#ulture can be divided into two broad categories; - at is 6*aterial/ !ulture3

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- at is 6&$&*aterial/ !ulture3

a< Material !ulture; the physical component or physical culture and includes physical ob=ects and artifacts created by humans such as clothing and tools. b< N$&*aterial !ulture; the subjective or abstract culture and includes intangibles such as religion, perceptions, attitudes, beliefs, and values. - at is a 6!ultural u&iversal/3

4Cultural u&iversals5 are those elements of culture evident in all societies. (hese universals include; athletic sports, body adornment, cooking, courtship, dancing, decorative art, education, ethics, eti uette, family feasting, food taboos, language, marriage, mealtime, medicine, mourning, music, property rights, religious rituals, residence rules, status differentiation, and trade. Global marketers should view sociocultural phenomenon of the -6st century against a background of traditional definitions. !t has been argued that !$&su*(ti$& has become the hallmark of postmodern society$ cultural information and imagery flow freely across borders via satellite (> and the !nternet. 3ew global consumer cultures are emerging$ these persons share meaningful sets of consumption)related symbols. (his culture stems from the wired world in which there is
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an increasing interconnectedness of local cultures$ it can be e'ploited by global consumer culture positioning @G##7<. Attitudes) 2eliefs) a&d Values !f we accept Hofstedes definition of culture as the collective programming of the mind, then it makes sense to learn about culture by studying attitudes, beliefs, and values. Defi&e 4attitude)5 4belief)5 a&d 4value,5

"n attitude is a learned tendency to respond in a consistent way to a given ob=ect or entity. "ttitudes are clusters of interrelated beliefs. " belief is an organized pattern of knowledge that an individual holds to be true about the world. "ttitudes and beliefs are related to values. " value is 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 culture. - at is a 4sub!ulture53

*ithin any large dominant cultural group, there are likely to be sub!ultures) smaller groups with their own shared subset of attitudes, beliefs, and values$ subcultures represent attractive niche marketing opportunities. Reli"i$& &eligion is an important source of a societys beliefs, attitudes, and values. Na*e f$ur $f t e *a7$r %$rld reli"i$&s,

(he worlds ma=or religions include 2udd is*) Hi&duis*) Isla*) 8udais*) a&d C ristia&it+. &eligious tenets, practices, holidays, and history directly impact the way people of different faiths react to global marketing activities. 8'ample; a< Hindus do not eat beef, which means that ,c+onalds does not serve hamburgers in !ndia.

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b< !n the aftermath of the 2eptember -..6 terror attacks in 3ew Bork and *ashington, +.#. and the subse uent "merican military actions in the ,iddle 8ast, some ,uslims have tapped into anti)"merican sentiment by urging a boycott of "merican brands. &eligious issues have also been at the heart of a dispute about whether references to God and #hristianity should be included in a new 8uropean constitution that will be adopted now that the 8uropean 1nion has e'panded its membership from fifteen to -9 countries. Aest eti!s *ithin every culture, there is an overall sense of what is beautiful and what is not beautiful, what represents good taste as opposed to tastelessness or even obscenity, and so on. 2uch considerations are matters of aest eti!s, Global marketers need to understand the importance of visual aesthetics embodied in the color or shape of product, label, or package. Cikewise, different parts of the world perceive aesthetic styles various degrees of comple'ity, for e'ample D differently. !n some cases a standardized color can be used such as the distinctive yellow on #aterpillars e uipment. " number of companies seem to be e'periencing a case of the blues, as evidenced by names such as %luetooth, %lue ,oon, and Eet%lue "irways$ likewise, 2kyy vodka is packaged in a distinctive blue bottle. %ecause color preferences vary among cultures, such perceptions should be considered in product packaging and communications especially in highly competitive markets. (here is nothing inherently good or bad about a color$ red is popular in most countries despite being the color of blood. !t represents winemaking and conveys the meaning emotional. 2ensitivity and willingness to accommodate such perceptions helps generated goodwill; !n some "frican countries, red is poorly received, and white connotes death in parts of "sia. ,usic is an aesthetic component of all cultures, accepted as a form of artistic e'pression and source of entertainment. !n one sense represents a transculture not identified with any particular nation$ rhythm is a universal aspect of music. However, music is also characterized by stylistic variation with regional or country associations @e.g., reggae with Eamaica<$ music e'emplifies the think global, act local theme.

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%ecause music plays an important role in advertising, marketers must understand what style is appropriate in a given national market. "lthough background music can be used effectively in broadcast commercials, the type of music appropriate for a commercial in one part of the world may not be acceptable or effective in another part. Dietar+ Prefere&!es #ultural influences are also uite apparent in food preparation and consumption patterns and habits. 8'amples; a< +ominos 7izza pulled out of !taly because !talians perceived its product to be too "merican. !n particular, the tomato sauce was too bold and the toppings were too heavy. b< (o successfully launch the 2ubway chain in !ndia, it was necessary to educate consumers about the benefits of the companys sandwiches. *hyF %ecause !ndians do not normally consume bread. (hese e'amples underscore the fact that a solid understanding of food)related cultural preferences is important for any company that markets food or beverages products globally. #ompanies that lack cultural sensitivity are bound to make marketing mistakes. - + is 6fast f$$d/ "ai&i&" i& a!!e(ta&!e ar$u&d t e %$rld3

*hile some food preferences remain deeply embedded in culture, there is plenty of evidence that global dietary preferences are converging. :or e'ample, fast food is gaining increased acceptance around the world. (here are several e'planations for this. a< Heads of families in many countries are pressed for time and are disinclined to prepare home)cooked meals. b< Boung people are e'perimenting with different foods. c< (he global tourism boom has e'posed travelers to pizza, pasta, and other ethnic foods. d< 2horter lunch hours and tighter budgets are forcing workers to find a place to grab a uick, cheap bite before returning to work. e< "s cultural differences become less relevant, such convenience products will be purchased in any country when consumer disposable income is high enough. However, such processes can provoke nationalist backlash.
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(o counteract the e'posure of its young citizens to le Big ,ac and other "merican)style fast foods, the :rench 3ational #ouncil of #ulinary "rts designed a course of :rench cuisine and good taste for elementary school children.

La&"ua"e a&d C$**u&i!ati$& (he diversity of cultures around the world is reflected in language. - at are t e f$ur areas $f stud+ i& verbal la&"ua"e3

Cinguists divide the study of spoken or verbal language into four areas; synta' @rules of sentence formation< semantics @system of meaning< phonology @system of sound patterns< morphology @word formation<. Unspoken or nonverbal communication includes gestures, touching, and other forms of body language that supplement spoken communication. (he spoken and unspoken aspects of language are included in the broader linguistic field of semiotics, which is the study of signs and their meanings. !n global marketing, language is a crucial tool for communicating with customers, channel intermediaries, and others. %lunders in product names and advertising are costly. 2emantic issues arise in global marketing @e.g. *hen Good Housekeeping magazine was launched in Eapan, the closest translation in Eapanese meant domestic duties.< 7honology can be an issue @e.g., #olgate discovered that in 2panish, Colgate means go hang yourself<. (echnology is providing interesting new opportunities for e'ploiting linguistics in the name of marketing. Boung people throughout the world are using mobile phones to send te't messages$ it turns out that certain number combinations have meaning in particular languages. "n impact of globalization is the diffusion of 8nglish$ more people speak 8nglish as a foreign language than as a native language @e.g., 3okia and 2ony re uire 8nglish<. :oreign language study is beneficial. *hile ac uiring language skills, students gain cross)cultural insights and develop a rapport with those who speak 8nglish as a second language.

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(raining and a heightened sense of the host country cultural conte't are necessary to counteract the tendency to bring ones own cultural ethnocentrism to the negotiating table. (he challenges of nonverbal communication are formidable @e.g., !n the ,iddle 8ast, *esterners must not reveal the soles of their shoes or pass documents with the left hand<. *esterners must pay attention not only to what they hear but also to what they see when conducting business in such cultures. Defi&e 4se9ue&!i&",5 Defi&e 4( asi&",5

(wo important communication issues may emerge; 2equencing concerns whether the discussion goes directly from point " to point % or seems to go off on tangents. Phasing pertains to whether certain important agenda items are discussed immediately or after the parties have taken some time to establish rapport @see (able G)6<.

Mar.eti&"/s I*(a!t $& Culture 1niversal aspects of the cultural environment represent opportunities for global marketers to standardize a marketing program. (he astute global marketer often discovers that much of the apparent cultural diversity in the world turns out to be different ways of accomplishing the same thing. !ncreased travel and improved communications have contributed to a convergence of tastes and preferences in many product categories. However, the impact of marketing and of global capitalism on culture can be controversial$ sociologist &itzer laments the ,c+onaldization of culture. - at is t e I&ter&ati$&al Sl$% :$$d M$ve*e&t3

"s a response, the international 2low :ood movement boasts 9.,... members in H0 countries$ it is founded on the idea that things should not taste the same everywhere. @8'hibit G)A<. HI1H# AND LO-#CONTE;T CULTURES 8dward (. Hall forwarded the concept of i" # and l$%#!$&te't to e'plain cultural orientations.
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Defi&e 4l$%#!$&te't5 !ulture, Defi&e 4 i" #!$&te't5 !ulture, - at is t e basi! differe&!e bet%ee& t e t%$3

!n a l$%#!$&te't !ulture, messages are e'plicit and specific$ words carry most of the communication power. !n a i" #!$&te't !ulture, less information is contained in the verbal part of a message. ,ore information resides in the conte't of communication, including the background, associations, and basic values of the communicators. High)conte't cultures function with much less legal paperwork than low)conte't cultures @e.g., Eapan and 2audi "rabia place emphasis on a persons values and social position< !n a low)conte't culture such as the 1.2. or Germany, deals are made with less information about character, background, and values. ,uch more reliance is placed upon words and numbers. !n a high)conte't culture, a persons word is his bond. (here is less need to anticipate legal contingencies because the culture emphasizes obligations and trust as important values. !n these cultures, shared feelings of obligation and honor take the place of impersonal legal sanctions. 8'ceptions to the general tendency are found in subcultures. (he 1.2. is a low)conte't culture with high)conte't subcultures @e.g., the world of the central banker, for e'ample, is a gentlemans world. (he word of the banker is many times sufficient for the borrowing of millions of dollars<. @(able G)- summarizes some of the ways in which high) and low) conte't cultures differ<. HO:STEDE/S CULTURAL TYPOLO1Y Hofstede is well known for research studies of social values suggesting that the cultures of different nations can be compared in terms of five dimensions. @(able G)H<. (hree of the dimensions refer to e'pected social behavior, one dimension is concerned with mans search for (ruth, and one dimension reflects the importance of time. (he dimensions are; Defi&e t e f$ur di*e&si$&s $f H$fstede/s t+($l$"+,

6. P$%er dista&!e, (his is the e'tent to which the less powerful members of a society accept power to be distributed une ually. "ll societies are une ual, but some are more une ual than others. High power distance; Hong 4ong and :rance. Cow power distance; "ustria and 2candinavia.
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-. I&dividualist !ultures< each member of society is primarily concerned with his or her own interest and those of the immediate family. @1nited 2tates and 8urope< a. C$lle!tivist !ultures, all of societyIs members are integrated into cohesive in)groups. @Eapanese and other "sian cultures< H, Mas!uli&it+, (his dimension describes a society in which men are e'pected to be assertive, competitive, and concerned with material success, and women fulfill the role of nurturer. 8'amples are Eapan and "ustria. :e*i&i&it+, by contrast, describes a society in which the social roles of men and women overlap, with neither gender e'hibiting overly competitive behavior. 8'amples are 2pain, (aiwan, and the 3etherlands. G, U&!ertai&t+ av$ida&!e, (his is the e'tent to which the members of a society are uncomfortable with unclear, ambiguous, or unstructured situations. ,embers of uncertainty accepting cultures are more tolerant of persons whose opinions differ from their own. 8'amples; +enmark and the 1nited 2tates. "t the other end are Greece and 7ortugal. :or cultural dimensions in "sia, researchers developed a #hinese >alue 2urvey @#>2< a< " long-term orientation @C(J< versus short-term orientation to assess the sense of immediacy within a culture, whether gratification should be immediate or deferred. b< Cong)term values include persistence @perseverance<, a general tenacity in the pursuit of a goal. c< Ordering relationships by status reflects the presence of societal hierarchies, and observing this order indicates the acceptance of complementary relations. d< hri!t manifests itself in high savings rates. e< " sense o! shame leads to sensitivity in social contacts. (hese values are held within high)performing "sian countries such as Hong 4ong, (aiwan, and Eapan, but these values alone do not lead to economic growth. (he e'istence of a market and a supportive political conte't are also re uired @e.g. !ndia has been held back by market restrictions until recently<. Hofstedes work provides marketers insights that can guide them in a range of activities, including product development, interacting with =oint venture partners, and conducting sales meetings. :or e'ample, understanding the time orientation of ones native culture compared to others is crucial.

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!n Eapan, %razil, and !ndia, building a relationship with a potential business partner takes precedence over transacting the deal. 7eople from cultures that emphasize the short term must adapt to the slower pace of business in some countries. Defi&e gaman,

(he Eapanese concept of gaman @persistence< provides insight into the willingness of Eapanese corporations to pursue research and development pro=ects for which the odds of short)term success appear low. - + is it i*($rta&t t$ u&dersta&d t e di*e&si$& $f u&!ertai&t+ av$ida&!e3 H$% *i" t %e tr+ t$ &eutrali=e t ese i" levels $f u&!ertai&t+ av$ida&!e3

%y understanding the dimension of uncertainty avoidance, global marketers are better e uipped to assess the amount of risk with which buyers are comfortable. !n countries with high levels of uncertainty avoidance, marketers should stress warranties, money) back guarantees, and other risk)reducing features. 7ower distance, reflects the degree of trust$ the higher the power distance @7+!<, the lower the level of trust$ companies in high 7+! cultures prefer sole ownership of subsidiaries to provide more control. (he masculinity)femininity dimension manifests itself in the importance of achievement and possessions @masculine values<, compared with helpfulness and social support @feminine values<. "n aggressive, achievement)oriented salesperson is better matched to Eapan than +enmark. (he collective)individual orientation is an important cultural component. (hroughout much of "sia, the collectivist orientation is dominant. (he 1.2. is a highly individualist culture. !n highly individualistic cultures, ads often feature one person$ in collectivist countries, ads feature groups. 1sing Hofstedes framework can provide useful insights into the creation of culturally appropriate consumer brand images. - at are t e t ree t+(es $f bra&d i*a"es3 THE SEL:#RE:ERENCE CRITERION AND PERCEPTION " persons perception of market needs is framed by his or her own cultural e'perience. " framework for reducing perceptual blockage and distortion was developed by Eames Cee. Defi&e t e SRC, H$% !a& %e redu!e $r eli*i&ate it3

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(he unconscious reference to ones own cultural values is the self#refere&!e !riteri$& @SRC>. (o eliminate or reduce cultural myopia, Cee proposed a four)step framework. +efine the problem or goal in terms of home country cultural traits +efine the problem or goal in terms of host)country cultural traits. ,ake no value =udgments. !solate the 2&# influence and e'amine it. &edefine the problem without the 2&# influence and solve 2&# teaches that a vital, critical skill of the global marketer is unbiased perception, the ability to see a culture. 2&# can be a negative force in global business leading to misunderstanding and failure. " person must suspend assumptions based on prior e'perience and success and add new knowledge. (he lesson that the 2&# teaches is that a vital, critical skill of the global marketer is unbiased perception, the ability to understand a culture. DI::USION THEORY - at is diffusi$& t e$r+3

2ociologist 8verett &ogers distilled his research into three concepts that are e'tremely useful to global marketers; the adoption process, characteristics of innovations, and adopter categories. "n innovation is something new. However, a product already introduced in one market may be an innovation elsewhere because it is new and different for the targeted market. ,anagers find themselves marketing products that may be, simultaneously, innovations in some markets and mature or declining products in other markets. - at are t e sta"es $f t e ad$(ti$& (r$!ess3 Defi&e ea! $f t e sta"es,

T e Ad$(ti$& Pr$!ess (he ad$(ti$& (r$!ess ) the mental stages from the first knowledge of an innovation to product adoption or purchase; "#areness$ (he customer becomes aware for the first time of the product or innovation. Global marketers create awareness through general e'posure to advertising messages. %nterest$ (he customer is interested enough to learn more. (he customer will engage in research and seek information. &valuation. (he individual mentally assesses the productIs benefits and decides whether or not to try it.

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rial$ ,ost customers will not purchase e'pensive products without a Ktrial.K :or ine'pensive products, an initial single purchase is defined as trial. "doption. (he individual either makes an initial purchase or continues to purchase a product. 2ales reps and word of mouth are forces in the decision to buy.

C ara!teristi!s $f I&&$vati$&s :ive factors affect the rate of adoption; 'elative advantage; How a new product compares with e'isting products or methods. Compatibility; How consistent a product is with e'isting values and past e'periences. Comple(ity; How difficult the new product is to understand and use. )ivisibility; How easy it is to try a product on a limited basis without great e'pense. Communicability. How well the benefits or value of a product are communicated. Ad$(ter Cate"$ries Ad$(ter !ate"$ries are classifications of individuals in a market on the basis of innovativeness. @2ee :igure G)6< :ive categories have been assigned to the segments of a normal distribution; (he first -.0 percent to purchase a product are innovators. (he ne't 6H.0 percent are early adopters (he ne't HG percent are the early ma=ority (he ne't HG percent are the late ma=ority (he final 6/ percent are laggards. !nnovators are more venturesome, more cosmopolitan, and wealthier than those who adopt later. 8arlier adopters are the most influential people in their communities and have great influence on the early and late ma=ority, the bulk of the adopters of any product. 8arly adopters tend to be younger, with higher social status, and a more favorable financial position than later adopters. 7ersuading innovators and early adopters to purchase a product is critical$ these groups must make the first move in order for eventual penetration of a product into the broader market.

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Diffusi$& $f I&&$vati$&s i& Pa!ifi! Ri* C$u&tries 2ince Eapan, 2outh 4orea, and (aiwan are high)conte't, homogeneous cultures while the 1.2. is a low)conte't, heterogeneous culture, research showed that "sia had faster diffusion rates. @2ee :igure G)-< "doption would proceed more uickly in markets where innovations were introduced late, allowing time to assess the relative advantages, compatibility, and other product attributes. (he "sian adopter behavior differs from *estern behavior. (here are fewer "sian innovators since risk avoidance is high. *hen "sian consumers become aware that others tried the product, they uickly follow suit. MAR?ETIN1 IMPLICATIONS O: SOCIAL AND CULTURAL ENVIRONMENTS (he various cultural factors described earlier can e'ert important influences on consumer and industrial products marketed around the globe. H$% !a& !ultural fa!t$rs be re!$"&i=ed i& f$r*ulati&" a "l$bal *ar.eti&" (la&3

E&vir$&*e&tal se&sitivit+ reflects the e'tent to which products must be adapted to the culture)specific needs of different national markets. "t one end of the continuum are environmentally insensitive products that do not re uire significant adaptation$ at the other are products that are sensitive to environmental factors. (he greater the environmental sensitivity, the more managers must address country) specific economic, regulatory, technological, social, and cultural environmental conditions. !ntels microprocessors can be sold anywhere because a chip is a chip, but food products have high environmental sensitivity because of sensitivity to climate and culture. #onsumer products are probably more sensitive to culture than industrial products. Hunger is a basic need in ,aslows hierarchy$ but what people eat is strongly influenced by culture. @:igure G)-<.

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DISCUSSION @UESTIONS 6. *hat are some of the elements that make up cultureF How do these find e'pression in your native cultureF (his uestion can be especially interesting if there is multicultural representation among your students. "sk students from other countries to prepare a list of cultural anomalies that they have found here in the 1nited 2tates versus their home countries. (opics should include; food, entertainment, sports, dating, studying, dorm living and other areas. (his uestion is designed to give students a chance to reflect upon and compare attitudes, beliefs, and values. (hen students should take up the issue of aesthetics. How relevant are the performing or visual arts, both individually and to the home country population in generalF :inally, language and communication issues can be e'plored. -. *hat is the difference between a low)conte't culture and a high)conte't cultureF Give an e'ample of a country that is an e'ample of each type, and provide evidence for your answer. !n a low)conte't culture, most of the message weight in a communication is carried on by the verbal component. " priority in such cultures is getting it in writing, and lawyers play an important role in creating and backing up agreements. !n a high)conte't culture, the conte't of the communication carries more weight. (he role of lawyers is reduced, and personal obligation and trust are emphasized proportionately. Jverall, Eapan is a high)conte't culture, while the 1.2. a low)conte't culture. H. How can Hofstedes cultural typologies help *estern marketers better understand "sian cultureF *esterners seeking a better understanding of "sian culture can benefit from the findings of the #hinese >alue 2urvey. (his survey revealed a dimension of "sian culture called #onfucian +ynamism that helps e'plain the growth in "sian economies. 2pecifically, virtuous behavior in "sian culture is reflected in persistence, observing ordered relationships, thrift, and a sense of shame. *esterners may enrich their own e'perience and further their business goals by absorbing some of these cultural dimensions$ *esterners should also realize that it is probably futile to try to change "sian behavior that is rooted in these dimensions. G. 8'plain the self)reference criterion. Go to the library and find e'amples of product failures that might have been avoided through the application of the 2&#.

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(he self)reference criterion is a conceptual tool that helps a person eliminate ethnocentric bias when perceiving other cultures. Bou should ask yourself, "m ! making assumptions or drawing conclusions based on my own home)culture e'perience and biasesF (his chapter outlines a four)step process for eliminating 2&# bias. #ampbell 2oup discovered a strong negative opinion toward convenience food. #ampbell discovered that the attitude of homemakers toward food preparation is a ma=or cultural factor in marketing prepared foods. &esearch revealed that !talian housewives devote G.0 hours per day to food preparation versus /. minutes a day spent by their 1.2. counterparts. !ncreased incomes plus product innovations may have an impact on !talian attitudes toward time and convenience with a corresponding positive effect on the market for convenience foods. 0. %riefly e'plain the social research of 8verett &ogers regarding diffusion of innovations, characteristics of innovations, and adopter categories. How does the adoption process in "sia differ from the traditional *estern modelF &ogers work helps marketers understand the social processes at work when a new product is introduced into a culture or country. (he adoption process consists of five steps, starting with awareness and ending with adoption. !n the case of ine'pensive consumer products, adoption means repeat purchase. (he rate at which buyers proceed through the adoption process depends on the five characteristics of innovations; relative advantage, compatibility, comple'ity, divisibility, and communicability. :or e'ample, starting in 6AA6, &ussell ,. :rederickson successfully launched a chain of coffee outlets in Hong 4ong. :rederickson notes that he started by offering a cup of coffee that was better than the rest @relative advantage< at a price that encouraged consumers to try it and come back for more @divisibility<. (he shops generated additional traffic by selling tea$ regular tea)drinking patrons eventually moved up to coffee @compatibility<. :inally, :rederickson staffed the outlets with at least 0.L #hinese so that local consumers could learn about the products from one of their own. (he shops feature posters e'plaining the various coffee drinks and indicating how they are pronounced @communicability< !n view of :redericksons clear understanding of the diffusion process, it is not surprising that he has received many in uiries from 4orea, (aiwan, and 2ingapore from persons wanting to start franchises. (his demonstrates that both the product itself and the retailing concept e'hibit the characteristics of the innovations described by &ogers. @2ource; &ussell ,. :rederickson, How to 2ell #offee in the Cand of (ea, *all +treet ,ournal @Ean. -H, 6AA0<, p. "6/. (he third aspect of &ogers work is adopter categories, a way of classifying individuals in term of their innovativeness. ,arketers should focus special efforts
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on early adopters, who make up 6H.0 percent of the potential market. (hey e'ert a great deal of influence on the mass market for a product, which &ogers calls the early and late ma=ority. /. #ompare and contrast the 1nited 2tates and Eapan in terms of traditions and organizational behavior and norms. 2ince Eapan is a high)conte't, homogeneous culture, while the 1.2. is a low) conte't, heterogeneous culture, Eapan has faster diffusion rates than the 1.2. "doption would proceed more uickly in Eapan where innovation was introduced late, allowing time to assess the relative advantages, compatibility, and other product attributes. Eapan has a long)term perspective as opposed to the short)term perspective in the 1nited 2tates. (he Eapanese adopter categories differ from those for 1.2 consumers. (here are fewer Eapanese innovators since risk avoidance is high$ however, when Eapanese consumers become aware that others tried the product, they uickly follow suit. Eapan ranks high on collectivism. 8veryone wants to use the same products as others. (his is particularly true with name brands. (he Eapanese want known labels with high brand image because risk avoidance is high. %uying name brands avoids the risk of a poor uality product. "mericans are more individualistic and are willing to try new products and off)brands. "mericans are risk)takers. CASES Case 4#A< Dis&e+ Ada(ts t$ Cultural Differe&!es< T e Assi"&*e&t Overvie%< (he *alt +isney #ompany, home to ,ickey ,ouse, +onald +uck, and other iconic characters, has a stellar reputation in many parts of the world for its family) friendly entertainment offerings. However, despite high worldwide awareness levels of the +isney brand, as of -../, only -0 percent of the companys revenues came from outside the 1nited 2tates. 3ow, as the company targets #hina, !ndia, 2outh 4orea, and other emerging markets, it is departing from its one size fits all approach. 6. *hy is it necessary for +isney to build brand awareness in #hina and other emerging marketsF Jne glaring fact is that as of -../, only -0 percent of the companys revenues come from outside of the 1nited 2tates. Jbviously, the +isney #orporation knows that it is vulnerable to any economic downturns in the 1.2. economy. "s %ill 8rnest, managing director, told the -inancial imes, !f you havent grown up with the brand, the stories, or the theme, you are not uite sure what you are walking

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into into (he changes underway at the *alt +isney #ompany illustrate how differences in the social and cultural environments impact marketing opportunities and dynamics around the globe. ,oreover, +isney noted some other cultural differences between 3orth "merican and 8uropean tourists and those of other countries. :or e'ample, #hinese tourist book dinner packages, :or e'ample, in !ndia, +isney is abandoning its go)it)alone policy and partnering with local companies such as Bash &a= :ilms. Cocal managers have been given greater autonomy to develop television programming. +isney is hoping to appeal to !ndias family)oriented middleclass consumers$ core themes include believe in yourself, e'press yourself, and celebrate your family. " &ussian version of High +chool .usical is also in the works. 3e't up; the ,iddle 8ast. "s +isneys Eason &eed says, (heres a really strong affinity between the strong family values in the region and the +isney brand. *e want to go out and try to make a film that will play to families from 3orth "frica to the Gulf 2tates. -. +o you agree with +isneys decision to pursue a localization approach in emerging marketsF @2tudent answers will vary depending upon agreement or disagreement<. %etter students will back up their arguments with fact and figures surrounding the +isney franchise in the 12 and other countries around the world D very good students will cite +isneyland 7aris as an e'ample of what not to do. H. *hy is High +chool .usical so successful in global marketsF High +chool .usical appeals to family)orientated middle)class consumers. !t does not matter what country or continent they reside that makes this a successful +isney event. Case 4#B< :air Trade C$ffee< Et i!s) Reli"i$&) a&d Sustai&able Pr$du!ti$& Overvie%< (he coffee industry has a lot of challenges nowadays. 2uch problems as oversupply and the drop of wholesale price can lead to many disputes around the world. (his drop in prices is definitely having a negative impact on the supplying countries economies. (he :air)trade label is supposed to treat the issue of ethical standards, but customers buying coffee need to care about the fair)trade along with those who invents and promotes it. 6. !s it important for coffee marketers, such as 2tarbucks, 4raft, and 3estle, to create ethical supply chainsF *hyF

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!t is important for coffee marketers to create an ethical supply chain. !f people know that companies work in an ethical way it should attract more customers. (he customers would e'pect that they would be treated the same fair and ethical way as suppliers of the market. !t would be easier for these companies to e'pand globally because new countries would be more open for business relationship with ethically sensitive corporations. -. " recent study by the 1.4.s !nstitute of Grocery +istribution determined that the ma=ority of consumers do not buy fair)trade products. (he report noted, 2elf)interest is at the center of food choice for most consumers. :ew consumers consider the impact of their purchase decisions on anyone or anything but themselves and their family. +o you agree with this findingF ! agree. 7eople can tend to be selfish in their nature. " lot of people in the world do not have decent incomes, thus they need to conserve money and find less e'pensive alternatives to feed their families. 3ot many buyers think about someone else as they purchase. :or many people when they enter a store, they think only about getting the greatest value for their dollar. ,oney talks. "nother reason why people dont buy fair)trade products is that they dont know what these products are and what their difference from regular products is. H. *hat recommendations would you make to help cure the ills of the coffee marketF ! agree with 7aul &ice who considers advertising of fair)trade essential for the product to be sold. 7robably there are more people who care about the principles of fair trade, but they simply dont know that it e'ists. (he fair)trade principle should be advertised along with places where customers can by the product. !t is necessary to e'plain all the importance of fair)trade products for developing countries. TEACHIN1 TOOLS AND E;ERCISES Additi$&al Cases< 4,arketing; *hos &eally ,inding the 2tore GloballyF Cinda #. 1eltschy,$ !rene Herremans$ Eohn 4. &yans Er. HB+ %H6A.. #olgate ,a' :resh; Global %rand &oll)Jut, Eohn ". Muelch, Eac uie Cabatt)&andle, HB+ 0.?..A. A!tivit+< 2tudents should be preparing or presenting their #ultural)8conomic "nalysis and ,arketing 7lan for their country and product as outlined in #hapter 6. Out#Of#Class Readi&"< "s an outside reading assignment, students will read how e'panding into ad=acent markets is tougher than it looks$ three) uarters of the time, the effort fails. Here is how to change those odds dramatically.

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Nook, #hris, and "llen, Eames. Growth Jutside the #ore. Harvard Business 'evie# ?6, no. 6- @+ecember, -..H<, pp. /9)9H. Cr$ss#Cultural Differe&!es< (o assess cross)cultural differences, students will talk to people from a different country. (hey can check with the office responsible for coordinating international students to obtain names. !nterview at least three people and get responses to the following uestions; @a< *hat country do you come fromF @b< *hat is your first languageF @c< +escribe you countrys culture in terms of the role of women in the workforce, the benefits provided to employees, how managers treat their employees, and general management practices. @d< *hat were the greatest difficulties you had in adapting to your new cultureF @e< *hat advice would you give me if ! were in a marketing management position in your countryF I&ter&et E'er!ise; Have students go to the homepage of he %nternationalist @###$internationalist$com<. Here they can start to e'plore the world. Have them browse around the sites and then click on !nternational %usiness. (hey should select -)H countries in which they have an interest. 2tudents are to write a 6)page impression of findings regarding the culture of these countries and be should prepared to discuss those findings with the class. :il*< "ssign the film &ising 2un. (he movie is a murder mystery based on the culture clash between Cos "ngeles police and Eapanese multinational business interests. !t is entertaining and educational at the same time. SU11ESTED READIN1 2$$.s "begglen, Eames #., and George 2talk Er. /aisha0 he ,apanese Corporation. 3ew Bork; %asic %ooks, 6A?0. "lfino, ,ark, Eohn 2. #aputo, and &obin *ynyard. .c)onaldi1ation 'evisited2 Critical &ssays on Consumer Culture. *estport, #(; 7raeger, 6AA?. %enedict, &uth. Patterns o! Culture. %oston; Houghton ,ifflin, 6A0A. %rislin, &. *., *. E. Conner, and &. ,. (horndike. Cross-Cultural 'esearch .ethods. 3ew Bork; Eohn *iley O 2ons, 6A9H. +ale, 7eter 3. he .yth o! ,apanese 3niqueness. 3ew Bork; 2t. ,artinIs 7ress, 6A?/. :eatherstone, ,ike, ed. Global Culture2 4ationalism0 Globali1ation and .odernity. Condon; 2age 7ublications, 6AA.. Hall, 8dward (. Beyond Culture. Garden #ity, 3.B.; "nchor, 6A9/. PPPPP and ,ildred &eed Hall. Hidden )i!!erences2 )oing Business #ith the ,apanese. 3ew Bork; +oubleday, 6AA.. PPPPP and ,ildred &eed Hall. 3nderstanding Cultural )i!!erences$ Barmouth, ,8; !ntercultural 7ress, 6AA.. Harris, 7hilip &., and &obert (. ,oran. .anaging Cultural )i!!erences2 High Per!ormance +trategies !or a 4e# *orld o! Business0 Hd ed. Houston; Gulf 7ublishing #ompany, 6AA6. Hofstede, Geert. Cultures and Organi1ations2 +o!t#are o! the .ind. 3ew Bork; ,cGraw)Hill, 6AA6.
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Cewis, &ichard +. *hen Cultures Collide$ Condon; 3icholas %realey 7ublishing, -.... ,oran, &. and *. 2tripp. )ynamics o! +uccess!ul %nternational Business 4egotiations$ Houston; Gulf 7ublishing #ompany, 6AA6. Arti!les "lden, +ana C., Ean)%enedict 2teenkamp, and &a=eev %atra. %rand 7ositioning through "dvertising in "sia, 3orth "merica, and 8urope; (he &ole of Global #onsumer #ulture. ,ournal o! .arketing /H, no. 6 @Eanuary 6AAA<, pp. 90)?9. %onvillian, Gary, and *illliam ". 3owlin. #ultural "wareness; "n 8ssential 8lement of +oing %usiness "broad. Business Hori1ons H9, no. / @3ovember 6AAG<, p. GG. +ulek, &onald 8., Eohn 2. :ielden, and Eohn 2. Hill. !nternational #ommunications; "n 8'ecutive 7rimer. Business Hori1ons HG, no. 6 @EanuaryQ:ebruary 6AA6<, pp. -.)-0. :edor, 4enneth E. and *illiam %. *erther, Er. ,aking 2ense of #ultural :actors in !nternational "lliances. Organi1ational )ynamics, -G, no. G @2pring 6AA0<, pp. HH)G?. :itzgerald, 3ora. Jceans "part, but #loser than Bou (hink. *orld rade0 @:ebruary 6AA/<, p. 0?. :ord, Eohn %., ,ichael 2. Ca(our, and (ony C. Henthorne. 7erceptions of ,arital &oles in 7urchase +ecision 7rocesses; " #ross #ultural 2tudy, ,ournal o! the "cademy o! .arketing +cience, -H, no. - @2pring, 6AA0<, pp. 6-.)6H6. :ord, Eohn %., and 8arl +. Honeycutt, Er. Eapanese 3ational #ulture as a %asis for 1nderstanding Eapanese %usiness 7ractices. Business Hori1ons H0, no. / @3ovemberQ+ecember 6AA-<, pp. -9)HG. :roz, 3adeen and (aghi &amin. 1nderstnding #ultural >ariables is #ritical to 2uccess in !nternational %usiness. %nternational ,ournal o! .angement -6, no. H @-..G<, pp. H.9)H-G. Herbig, 7aul "., and Hugh 8 4ramer. +os and +onts of #ross)#ultural 3egotiations. %ndustrial .arketing .anagement -6, no. G @3ovember 6AA-<, pp. -?9)-A?. Hofstede, Geert, and ,ichael Harris %ond. (he #onfucius #onnection; :rom #ultural &oots to 8conomic Growth. Organi1ational )ynamics, @2pring 6A??<, pp. 0)-6. Eacobs, Caurence 8., #harles 4eown, &eginald *orthley, and 4yung)! Ghymn. #ross) #ultural #olour #omparisons; Global ,arketers %ewareR %nternational .arketing 'evie# ?, no. H @6AA6<, pp. -6)H.. 4im, +onghoon, Bigang 7an, and Heung 2oo 7ark. High) >ersus Cow)#onte't #ulture; " #omparison of #hinese, 4orean, and "merican #ultures. Psychology 5 .arketing 60, no. / @2eptember 6AA?<, pp. 0.9)0-6.
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Cewis, ,aureen. *hy #ross)#ultural (raining 2imulations *ork. ,ournal o! &uropean %ndustrial raining, -A, no. 9 @-..0<, pp. 0A0)0A?. Cin, #arloyn ". #ultural >alues &eflected in #hinese and "merican (elevision "dvertising. ,ournal o! "dvertising H., no. G @*inter -..6< pp. ?H)AG. ,anrai, Calita "., and "=ay 4. ,anrai. #urrent !ssues in the #ross)#ultural and #ross) 3ational #onsumer &esearch. ,ournal o! %nternational Consumer .arketing ?, no. H)G @6AA/<, pp. A)--. ,enger, &ichard. Eapanese and "merican 3egotiators; Jvercoming #ultural %arriers to 1nderstanding. "cademy o! .anagement &(ecutive 6H, no. G @3ovember 6AAA<, pp. 6..)6.6. ,intu, "lma (., and &oger E. #alantone. " #omparative "pproach to !nternational ,arketing 3egotiation. ,ournal o! "pplied Business 'esearch 9, no. G @:all 6AA6<, pp. A.)A9. ,oney, &. %ruce, ,ary #. Gilly, and Eohn C. Graham. 8'plorations of 3ational #ulture and *ord)of),outh &eferral %ehavior in the 7urchase of !ndustrial 2ervices in the 1nited 2tates and Eapan. ,ournal o! .arketing /-, no. G @Jctober 6AA?<, pp. 9/)?9. &eardon, 4athleen 4elley, and &obert 8. 2pekman. 2tarting Jut &ight; 3egotiating Cessons for +omestic and #ross)#ultural %usiness "lliances. Business Hori1ons H9, no. 6 @Eanuary):ebruary 6AAG<, pp. 96)9A. &oss, ,artin 2. (he 8ffects of #ulture and 2ocioeconomics on the 7erformance of Global %rand !mage 2trategies. ,ournal o! .arketing 'esearch H- @,ay 6AA0<, pp. 6/H) 690. 2hane, 2cott ". (he 8ffect of #ultural +ifferences in 7erceptions of (ransactions #osts on 3ational +ifferences in the 7reference for !nternational Eoint >entures. "sia Paci!ic ,ournal o! .anagement 6., no. 6 @6AAH<, pp. 09)/A. 2ivakumar, 4., and #heryl 3akata. (he 2tampede toward HofstedeIs :ramework; "voiding the 2ample +esign 7it in #ross)#ultural &esearch. ,ournal o! %nternational Business +tudies H-, no. H @-..6<, pp. 000)09G. 2chneider, 2usan #., and "rnoud +e ,eyer. !nterpreting and &esponding to 2trategic !ssues; (he !mpact of 3ational #ulture. +trategic .anagement ,ournal 6-, no. G @,ay 6AA6<, pp. H.9)H-.. (ung, &osalie C. Handshakes "cross the 2ea; #ross)#ultural 3egotiating for %usiness 2uccess. Organi1ational )ynamics 6A, no. H @*inter 6AA6<, pp. H.)G..

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1sunier, Eean)#laude G. %usiness (ime 7erception and 3ational #ultures; " #omparative 2urvey. .anagement %nternational 'evie# H6, no. H @(hird Muarter 6AA6<, pp. 6A9)-69. Beh, &yh)song, and Eohn E. Cawrence. !ndividualism and #onfucian +ynamism; " 3ote on HofstedeIs #ultural &oot to 8conomic Growth. ,ournal o! %nternational Business +tudies -/, no. H @6AA0<, pp. /00)//A.

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