1. Cultural Dynamics in Assessing Global Markets.
Chapter 4

2. Importance of Culture to International Marketing Efforts
“Culture gets in the Way”
eBay example
Japan’s cultural ideas about selling “castoffs” and buying from strangers (garage sales)
France has laws restricting operations except to a few “government-certified auctioneers”
Importance of Culture
Successful businesses must be open to the learning of cultures of different countries
Culture effects every part of marketing (pricing, promotion, placing distribution, packaging…)
Pervasive Impact of Culture – Birth till Death
Example : Chinese Year of the Dragon - Good Luck
Japan : 20% drop in Infertility : Year of the Fire horse , Unhappy lives

3. Definition of Culture Definitions of Culture:
Authors definition: “the sum total of knowledge, beliefs, art, morals, laws, customs and any other capabilities and habits acquired by humans..”
Geert Hofstede: culture as the “software of the mind… provides a guide for humans on how to think and behave”
Edward Hall: cultural differences are invisible and that if marketers ignore them it often hurts both companies and careers.
Example : OWL Tea in Pakistan , resulted in job loss of marketing manager.

4. Exhibit 4.4 “Origins, Elements, and Consequences of Culture
Adaptation occurs through
Socialization,Acculturation & Adaptation:
Through growing up and adjusting to new cultures
Origins of culture come from
Geography ( ex. climate connection to GDP)
History
Political Economy
Technology
Social Institutions (family, religion, school, media government corporations

5. Exhibit 4.4 “Origins, Elements, and Consequences of Culture
Geert Hofstede 4 dimensions of Culture (exhibit 4.5 pg. 105)
1. Individualism/Collectivism Index (IDV)
Scores High in IDV reflect more individualistic behaviors (U.S., Australia, Great Britain)
2. Power Distance Index (PDI)
Measures the power between superiors and subordinates within a social system
Higher PDI scores are hierarchical (Arab countries, Guatemala, Mexico, Venezuela)
Tend to have general mistrust of others

6. Exhibit 4.4 “Origins, Elements, and Consequences of Culture
Geert Hofstede 4 dimensions of Culture (exhibit 4.5 pg. 105)
3. Uncertainty Avoidance Index (UAI)
Measures tolerance of uncertainty and ambiguity
Higher UAI scores mean intolerance of ambiguity and distrust new behaviors and ideas (Japan, France, Greece)
4. Masculinity/Femininity Index (MAS)
Focuses on assertiveness and achievement
Proven least useful in measuring values within cultures

7. Elements of Culture Rituals Symbols Beliefs Thought Processes
Patterns of behavior and interactions that are learned
See Crossing Borders 4.1 pg. 107 (“It’s Not the Gift That Counts, but How You Present it”)
Symbols
Language (exhibit 4.5)
Aesthetics (art, folklore, music, drama and dance)
Beliefs
Myths, superstitions, or other cultural beliefs
Thought Processes
Richard Nisbett- Geogpraphy of thought

8. Cultural Knowledge 2 Types of Cultural Knowledge
1. Factual knowledge
Straightforward fact about a culture
See Crossing Borders 4.3 pg. 113 (“Gaining Cultural Awareness…”)
2. Interpretive knowledge
Feeling that requires some insight as to how a culture exists
It is dependent upon experiences and can lead to incorrect conclusions when using (SRC)
Cultural Sensitivity and Tolerance
Successful International marketing companies are sensitive to differences in cultures and view them objectively

9. Cultural Change “Cultural Borrowing”
Countries often times “borrow” the solutions from other cultures and countries that have experienced similar types of issues and problems
Similarities can be an Illusion:
Need to be careful borrowing from other cultures where differences may be so subtle that the international marketer overlooks very important information

10. Cultural Change Resistance Change Planned & Unplanned Cultural Change
Cultures will accept or resist change based on how disruptive the change
Planned & Unplanned Cultural Change
International Marketers have two options when introducing new products/services to a culture
1. They can wait for the change to occur
2. They can cause the change
McDonald’s example in Japan

11. Cultural Change Consequences of Innovation or Change
International Businesses can bring about functional or dysfunctional change
When product diffusion occurs, social change may also take place as a result of the acceptance of that product
Businesses do not intend to bring dysfunctional change, but it can happen
Nestle example in Nicaragua