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THE CULTURAL PRODUCT:
INTEGRATION AND RELATIONAL
APPROACHi
Lucia Aiello
Universitas Mercatorum, Rome, Italy
Claudia Cacia
University of Salerno, Italy
ABSTRACT
In this chapter, the authors approaches the theme of the definition and classification of cultural products
according to the major Italian and international authors dealing with the issue, knowing that culture,
before being the core product of an enterprise, belongs to people. They argue for more theoretical
discussion into the organizational and managerial dynamics of cultural product, drawing from the
consideration that to date management research is neglecting cultural product as a serious object of
investigation despite its economic, social, and political significance. Starting from the analysis of the
main literature on "culture", the authors show a new concept of cultural property: the integrated cultural
product. Moreover, the analysis of cultural product, the distinctive characteristics and dynamics of
cultural industries are made adopting a relational approaches . As a result, the aim of this work is to
define the unique dynamics of the integrated cultural product in a relational perspective.
INTRODUCTION
Cultureii is considered a common good, a key element of communitys wellbeing, for the entire humanity
(refer to the definition and classification of Cultural Heritage adopted by UNESCO), and as such
everyone is responsible for preserving, maintaining and developing it. "Culture" defies easy definition
(Knight, 1999). It is not just the arts, but the larger meaning of our pastimes, habits, images, institutions,
perspectives on the world, collective memory and our bilingualism and multiculturalism" (Canada Vital
Link, 1987). Such a broad definition makes it difficult to grasp fully the precise scope of the subject being
considered. However, in the context of the culture debate, the concern is both with culture per se both
with the means by which it is delivered, that is to say, cultural industries.
The term cultural industries encompasses a wide variety of commodified activities, including the mass
media (print and broadcast media and advertising), film, new media, art, design, music, and architecture.
Conversely, although it is an important area of research and of economic activity, there has been a
significant gap in systematic studies of these industries (DiMaggio and Hirsch 1976; Pratt 1997a; Sadler
1997; Scott 2000b; Powder, 2002).
Due to the importance of such industries in the dissemination of culture, different governments have
sought to provide support for their maintenance and growth. The more complicated questions are for the
debate around culture in considering if whether cultural products are goods or services and also, whether
cultural products from different countries constitute "like" or "directly competitive or substitutable"
products. Despite the importance of these issue, the previous consideration reflects the confusion created
by the dual nature of culture.
Braun and Leigh Parker have noted that culture does not fit easily into the definition of either a service or
a good. Clearly, cultural products have both significant service and good components. In this context
services seem to be more labour-intensive and less tangible than goods, so cultural performances more
closely resemble services. As well, things such as legal and financial services involve the dissemination
of information, or skill and knowledge; this dissemination appears analogous to the role played by books,
6
periodicals and even audio-visual products-all of which are clearly physical products. Many cultural
products must exist in physical form in order to be distributed to potential audiences (for example a legal
opinion may be contained within a written memo, but this would not transform it from a service into a
good). Technological advances have blurred the distinction further, as satellites and the Internet now
allow cultural products to reach wide audiences without being packaged and shipped across borders. For
these reasons, it is impossible to fit culture neatly into either category of good or service. Although, the
WTO put a little clearly on the question of how cultural products are to be treated but disputes will likely
continue as to whether culture is a good or service (Bernier, 2005; Lhr. 2010).
Culture is also an exchange value so it is a product (good, service, idea), but one that calls for good,
consistent and shared economic, social and cultural models (AA.VV, 2005), these models however, must
not disregard the UNESCOs definition of World Cultural Heritage considering culture a good belonging
to all mankind: "Everyone must be enabled to enjoy culture" - "Culture is a world heritage site"
(UNESCO, 2005).
The key to addressing this debate is to acknowledge, as Voon does, that cultural products have cultural as
well as commercial value, and to understand that cultural value is highly prized, just as is the multi-
billion-dollar industry that produces cultural products (Voon, 2007). Accordingly, many authors such as
Bassett (1993), Bianchini (1993), Bryan et al. (2000), Dziembowska-Kowalska and Funck (1999), Fuchs
(2002), Heilbrun and Gray (1993), Hudson (1995), Landry (2000), Lorente (2002), Myerscough (1988),
OConnor (1998), Throsby (2001), Weinstein and Clower (2000), and Whitt (1987), among others, have
all commented on the potentialities of the cultural economy for job creation and urban regeneration in
stagnating areas, and value creation (Scott, 2004).
In this perspective, this research approaches the theme of the definition and classification of cultural
products according to the major Italian and international authors dealing with the issue, knowing that
culture, before being the core product of an enterprise, belongs to people.
From this perspective, cultural products should be under attention, well known, must be disclosed and
attractive and spread through a common and accessible "language". The analysis of the main literature on
"culture" leads to a new concept of cultural property: the integrated cultural product(Ferri & Aiello,
2009).
Source: our elaboration on Colbert F., (2004), Marketing delle arti e della cultura, ETAS, p. 3.
According to Colbert the firm in the strict sense consists of the performing arts, especially of those in
which the core business is a "direct contact" between the artist, his art and the consumer. The firm in the
broad sense is represented by the cultural industry and the media (for example, film industry, newspaper)
whose core business is an art product (good or service) coming from a production and/or distributive
process where the "contact between the artist, his art and the consumer is indirect".
It should be said, however, that from Colberts publication to the present, technological innovation has
provided more advanced tools that have been reducing the difference between the strict sense group and
the broad sense group, until they will merge. Infact, the difference between business and industry is
centered on the direct contact between the public and the arts:
in the strict sense: direct contact.
in the broad sense: indirect contact.
This distinction has been taken up, enhanced and partly analyzed into Italian context by Ferri in a recent
study (2009) whose objective was define, in their general aspects, all cultural activities aside from a legal
point of view", just reducing Cultural Property to movable and immovable property, excluding consumer
goods and services" (Ferri, 2007).
The author, define the cultural good accordingly with the Italian Legislative Decree no. 42/2004 whose
Art. 2, defines cultural goods as immovable and movable things which, in accordance with Articles 10
and 11, are artistic, historical, archaeological, ethno-anthropological, archival and bibliographic and other
things identified by law or under the law as evidence with value of civilization. From the definition of the
Legislative Decree she takes a broader view and analyzes all activities having cultural purposes but not
falling within the definition of the Italian Legislative Decree mentioned.
So one step further Colberts is a general definition of cultural good "as a movable and immovable good
(in the strict sense), activities, services and any other consumer good (in the broad sense) having a direct
and/or indirect contact with the culture of one or more civilizations.
For the author cultural products share a social objective, namely the common cultural growth with a view
to enhancing the economic value of both a recording or film product and a museum. This does not mean
to exclude the economic purpose; the author rather emphasizes the need "to pursue both the development
of the good and the protection and preservation of the culture" (Colbert, 2000). The cultural value,
therefore, does not prevail over the economic value, but combines with it in the mix of development of
the good, protection and preservation of the culture, it follows that the artistic creation is a starting point
in the planning of development policies (Ferri, 2007).
So, cultural value is identified as an influential factor on brand image and is widely accepted as one of the
crucial concepts in understanding consumer consumption value, which determines choices of consuming
everyday products and services (Park & Rabolt, 2009). Culture provides a sort of shared understanding
among people in a society that allows them to predict and coordinate social activities (Sternquist, 1998),
9
and cultural values refer to the core of the entire cultures mindset shared by a society (McGregor, 2000).
These issues bring to another distinction utilized internationally, related to the concepts of cultural
property and heritage. The concept of cultural property (Protection) dominates in the Italian scenario
whereas Heritage (heritage, economic enhancement) prevails at international level, so with a view to
sharing past and contemporary cultures at a global level, we cannot disregard an internationally shared
definition of culture as the one provided by Ferri (2009). Cultural enterprises are therefore united by
artistic creations that can be audio, visual, written, regardless of the historical period they were produced.
Each company has to activate, manage and maintain a production and distribution chain of artistic
creations, live or reproduced, belonging to past or contemporary cultures.
Cultural-products industries can thus be identified in concrete terms as an ensemble of sectors offering (1)
service outputs that focus on entertainment, edification, and information (e.g., motion pictures, recorded
music, print media, or museums) and (2) manufactured products through which consumers construct
distinctive forms of individuality, self-affirmation, and social display (e.g., fashion clothing or jewelry)
(Scott, 2004). The cultural economy, then, constitutes a rather incoherent collection of industries (Scott,
2000). Cultural-products industries are therefore significantly on the rise of late, and they constitute an
important and growing element of modern economic systems. So, cultural industries, and the cultural
economy as a whole, are becoming increasingly prominent in post-industrial societies (Lash and Urry
1994; Zukin 1995, 1998; Scott 2000a; Throsby 2001; Kloosterman 2004; Currid 2007).
The cultural products emerging from these cultural industries are often strictly embedded with cultural
elements specific to the localities or regions where they are produced. In fact, local or regional histories
and cultures that inform the design and manufacturing of such products, or inform the technical, creative
and social processes underlying their production should thus be seen as unique selling points that insulate
producers in these industries from extra-local or extra-regional competition (Pratt 2008). The
uniqueness in cultural products makes their demand non-substitutable (Deinema, 2008). However, the
vast range of alternative cultural products available to consumers separates the cultural industries from
many other industries. The fact that there are some many substitutes available in cultural product
categories reflects the fact that consumers are highly interested in the choices they make and the in the
possibility of continually changing and swapping the cultural artefacts that surround them (Power, 2008).
So, this condition shift to description of cultural system towards the involvement of customer in a
relational perspective. In this view it is important to clarify in detail the subjects and actors involved in
the system - cultural chain, the main elements and the link with the context in which this are expresses; so
in the following sections we describe all the components which contribute to delineate the concept of
integrated cultural products.
10
the reproduction/displaying represented by the cultural activity. Support activities that are in the
horizontal part of the chain are the protection, which is usually carried out by a person/public institution
and distribution, which can also be performed by an external cultural distribution agency.
Each element in the cultural chain can be self-managed or managed in accordance with the market logic.
The cultural enterprise should consists of one or more undertakings which independently or linked carry
out all or part of the above considered activities. The objective of the cultural chain representation is two-
fold:
1. to connect into a system "along" the chain the actors and activities involved, identifying their
roles and tasks;
2. to provide a first distinction and classification of the cultural enterprise.
The representation also identify the main actors of the cultural system (Barile, 2009), on the basis of the
functions they perform. A designer is responsible for the design and planning of artistic creation; a
cultural distribution agency is responsible for distribution and promotion activities. Both the artist and the
industry can carry out the production/distribution activities, the cultural operator is responsible for
reproduction/displaying activities, the task of protection is the responsibility of a specific person /
institution, which may be the manager or the appropriate authority/local authority. According to the
functional/organizational meaning we propose in this work, the cultural enterprise is the one self-
performing or giving others all activities along the cultural chain. The choice to represent the chain as a
system results from the desire to explain the sense of unity and connection of all elements of the cultural
enterprise, regardless of the subject's legal and economic unity. Some examples may better explain the
contents of the figure 1. Theatre companies, for example, can be both cultural enterprises and simply
artists on tour, which rely on agencies for distribution.
The display areas just exhibit works of art, protecting them for a limited period of time; on the other hand
a museum constantly exposes and saves them. So, this explanation allow us to introduce a further
distinction between cultural enterprise and "limited" cultural enterprise, the latter potentially embodying
undertakings self-managing or assigning to third parties the activities along the culture chain, such as the
Editorials, where retail distribution is entrusted to news-stands, while all other functions depend on the
publisher.
A company, a business, a subject, a cultural agency, or an artist may occupy part or all of the cultural
chain, in relation to what they will have different size, structure, sector and function, so we must consider
several criteria in order to classify them (Colbert, 2004). The first concerns the company mission, which
may be product-oriented (e.g. museum) or market-oriented (i.e. record label). The second refers to the
mode of production, which can be unique (unique and original, e.g. framework) or reproducible (e.g.
music CDs), these criteria enable researchers to distinguish cultural enterprises from artistic enterprises
(Colbert, 2004).
Therefore, the product as a creative act is the result of activities carried out by cultural enterprises and it
must have a "cultural" content (Colbert, 2004:21).
In short, the market and demand variables do not necessarily have the same characteristic neither between
the two elements considered (Offer / Product and Market/ Consumer) nor within these elements
themselves (components level/technical level and degree of knowledge/ degree of needs/experiences to be
met). By intersecting the degrees / levels for each variable we can identified nine conditions represented
by the nine quadrants, in which the measurement of values moves between low and high complexity.
Specifically we can identify:
Each quadrant represents the total value resulting from the interaction of the level / degree of complexity
of both the supply / product and the market / consumer. Territoriality is another feature of cultural
product.
Before entering into detail of this subject, it is appropriate to summarize Porters thoughts on competition
between nations: "Countries compete with each other in the same way that companies do". Globalization
has enhanced competition in the cultural field. Cultural products were once closely linked to the territory
and to the local context. Now they are "exported" all over the world, as the works or comedies
represented in various theatres around the world. There are many cases in which a museum "hosts"
cultural products over a period as well as other museums in different countries, such as the Treasure of
Boscoreale, a town near Naples, was exhibited at the Louvre in France a few years ago later it was
exhibited at the Antiquarium of Boscoreale. The concept of export often includes the ability of cultural
products to "attract" their consumers, to "attract" people from different territories at the places where the
cultural product will be enjoyed/ consumed. This is a feature found in some products (i.e. the tourist
products) such as the cultural products having a strong link with the territory. Territory, in such cases,
becomes an integral part of the product to such a degree that it turns into one of good / services strengths.
The "San Carlo" theatre in Naples, for example, is certainly a significant cultural product in the world
scenario, but much of its fame is due to its geographical location. Another meaning of territoriality is: the
essence of cultural products, the characterization of the same, as the Neapolitan film productions1.
Territory therefore has a role whose value is closely linked to its image (Siano, 2011; Rio Morales et al.,
2012), which determines its ability to attract the reference cultural target. In the case that territory has an
image that is consistent with its identity and personality it is able to retain and maintain a positive
positioning on the reference market. The cultural product actually needs to identify with the territory it
belongs to because there is a reciprocal impact on the perception of products characteristics, moving
from a sectorial competition to a territorial competition.
For certain types of products (museums, churches, theatres, cinemas, others), the typical macro-
environmental variables of the territory are an integral part of the cultural product itself, or at least the
1
Film with actors such as Toto, Troisi, D'Angelo have as key element not only the setting in the territories of Naples
but especially the strong connection between the main socio-cultural element of the product - the actor - and the
territory.
14
cultural product "absorbs" the macro-environmental variables, which are not only elements influencing
the use, distribution and product development from the outside, but also elements influencing the
configuration itself of the cultural offer. The table below summarizes the above stated theory.
Table n. 2 The macro-environmental variables and the configuration of the cultural offer.
The reference environment plays a crucial role in the configuration of the product, in the table above, you
can identify the key macro-environmental variables concurring to cultural product configuration. The
variables of the cultural, political, legal and technological environment are those having a direct impact
on the type of product.
Demographic environment impacts on the connection between the need to meet consumers choices and
the offer, then economic and financial environment defines the role of "niche" product.
Integration (Ferri & Aiello, 2009), which is an essential feature of the cultural product, results from the
expanded product concept. Producers, in fact, tend to organize an offer centring it on different levels
(Kotler et al., 2003) of the product in order to earn higher profits. In this regard Benghozzi & Bayart
(1991) believe that the opportunity to derive more revenue from additional products push manufacturers
to readjust their strategies.They argued that cultural objects (like movies, shows, books, concerts, etc..)
are seen as part of a mix of coordinated product, whose markets have to be mutually reinforced. The
integration therefore concerns the cultural offer and its composition, in general, includes both elements:
territory and cultural enterprise. Territorial integration requires the planning and coordination of all
elements of territory in order to make them accessible (transport, hospitals), usable (commercial
activities). Cultural integration instead refers to the ability of company to offer a range of products able to
meet different cultural needs (cinema and theatre multiplex). This last feature determines the
configuration of the Integrated Cultural Product.
15
link the territory with the cultural product. The report can be spontaneous or planned, and follows the
same logic of any other product. In light of those consideration the relational perspective facilitates the
reading of the level of integration (Gummesson, 2008) for a complex product like the cultural one. the
relationships can become a legacy for the territory of reference. Therefore, exists a reciprocity
relationship for all parties involved that sometimes puts the relationship as a real asset to the territory.
Consequently, there are some relationships which cannot be ignored. Our suggestions are clearly a first
step in a long way to discover the opportunity linked to the cultural products. the Integrated cultural
product in a relational perspective, therefore represents a point for future researches. It could be
interesting develop a model able to measure the relation cultural-product-territory, in reason of the
difficulty of developing assessment systems objective and enforceable. Finally, there are many
dimensions of cultural product and this article does not go through them all. Rather it has concentrated on
sketching a model for outlining the relations between cultural products, its components, consumers and
territory, and the conditions that might support firms strategies: strategies that once developed in a local
setting can be taken to entire industry or economy. Around the world policymakers have become
increasingly excited about attracting cultural industries (Power and Scott 2004; Scott 2008). So it is
required further theoretical development in this field of research and also some empirical research is
therefore needed on the measures that need to be taken that can support long-term economic
development.
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KEY TERMS & DEFINITIONS (SUBHEAD 1 STYLE)
Cultural products: are goods and services that include the arts (performing arts, visual arts, architecture),
heritage conservation (museums, galleries, libraries), the cultural industries (written media, broadcasting,
film, recording), and festivals. UNESCO has declared that these products are not like other forms of
merchandise.
Cultural products as service: have both significant service and good components. In this context services
seem to be more labour-intensive and less tangible than goods, so cultural performances more closely
resemble services. As well, things such as legal and financial services involve the dissemination of
information, or skill and knowledge; this dissemination appears analogous to the role played by books,
periodicals and even audio-visual products-all of which are clearly physical products. Many cultural
products must exist in physical form in order to be distributed to potential audiences (for example a legal
opinion may be contained within a written memo, but this would not transform it from a service into a
good).
Cultural enterprises: those performing an activity of prevalent artistic and cultural content, in order to
achieve an objective of social order, "the communitys cultural growth". The cultural enterprise, just like
any other enterprise, needs adequate tangible and intangible assets, that is an appropriate working capital
to achieve its institutional mission.
Cultural firm in the strict sense: consists of the performing arts, especially of those in which the core
business is a "direct contact" between the artist, his art and the consumer.
Cultural firm in the broad sense: is represented by the cultural industry and the media (for example, film
industry, newspaper) whose core business is an art product (good or service) coming from a production
and/or distributive process where the "contact between the artist, his art and the consumer is indirect".
Cultural Chain: several players operate in the cultural chain both independently and as part of the industry
human resources (or collaborators of the artist).The main player is the artist who directly or indirectly
manage the production/distribution of the artistic creation, next to which integrative activities are
vertically held. Without these activities the production and distribution of culture cannot be achieved.
These activities are the design, assigned to a designer and the reproduction/displaying represented by the
cultural activity. Support activities that are in the horizontal part of the chain are the protection, which is
usually carried out by a person/public institution and distribution, which can also be performed by an
external cultural distribution agency. Each element in the cultural chain can be self-managed or managed
in accordance with the market logic. The cultural enterprise should consists of one or more undertakings
which independently or linked carry out all or part of the above considered activities. The objective of the
cultural chain representation is two-fold: 1. to connect into a system "along" the chain the actors and
activities involved, identifying their roles and tasks; 2. to provide a first distinction and classification of
the cultural enterprise.
Matrix of the degree of complexity of cultural product: is represents the cultural product means two
main variables, respectively: 1. Offer Product: number of elements (including technology components). 2.
Consumer/Market: level of needs met and experiences. This element can also be represented by the level
of consumer perceptions. The model assumes that the variables of the Supply and of the Demand have the
same or different values, for example high degree of consumer knowledge and low level of
needs/experiences to satisfy. The degree of complexity of cultural product is the sum of the values of each
element of the variables in terms of complexity.
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i
Although the views expressed in the paper belong to all of the authors, the paragraphs 3 and 2.2. are
attributed to Lucia Aiello, paragraphs 1 and 2.1. to Claudia Cacia, the Introduction, Conclusion and
paragraphs 2, 4, 5 are attributed to all the authors.
ii
Article 9 of the Italian Constitution guarantees the protection of nation historical and artistic heritage
and the art. 117 states that the jurisdiction of cultural heritage is exclusively public, after the reform of
'art. V it became exclusively public with regard to protection and competitive with regions in the field of
development. This distribution is very important because it tends to consider cultural heritage not only as
an expression of national history, but also of local history. These two articles of the Law were
accompanied from 1939 to 2004 by the law Bottai, that despite having been adopted in a period prior to
the birth of Constitution, did not encounter conflicts with the fundamental rules considering the
homogeneity in the field of cultural heritage . Next, the Code of cultural heritage and landscape (so-called
Municipal Code - Legislative Decree 22 January 2004, n. 42) has organized the whole subject by drawing
on all contents of the law Bottai (Ainis and Fiorillo, 2008). See Article. V that provides for the creation of
ordinary Regions. According to the art. 2 of the Municipal Code, cultural good is evidence having value
of civilization. Cultural goods have been also classified in international laws. In particular, the
Convention on the Protection of Cultural Heritage in Armed Conflict adopted at The Hague on May 14,
1954 defined the tangible cultural heritage, and the Convention for the Protection of the Intangible
Cultural Heritage adopted in Paris on October 17, 2003 defined the intangibles.
ii Film with actors such as Tot, Massimo Troisi have as key element not only the setting in the territories
of Naples but especially the strong connection between the main socio-cultural element of the product -
the actor - and the territory.
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