1. Consumer Behaviour Bangor Transfer Abroad Programme Culture Week 4 Lecture 1 Chapter 2

2. Consumer Behaviour Bangor Transfer Abroad Programme Basic Framework Motivation Perception Search Evaluation Choice Learning

3. What is culture? It is a combination and mixture of  Values  Non verbal communications  Demographics  Language It is not just music and art

4. What is culture? In other words it is based upon  Knowledge – Education  Beliefs' - Religion  Mores – morals  Customs  Any other capabilities and habits acquired / learned by members of a society.

5. Cultural Norms Must comply with Optional – nice to conform Not significant

6. Orientation of culture Other Environment Self Hofstede

7. Consumer Behaviour Bangor Transfer Abroad Programme Other Orientation Individual vs Collective Youth vs Age Family - Extended vs Limited Masculine vs Feminine Competition vs Co-operation Diversity vs Uniformity

8. Consumer Behaviour Bangor Transfer Abroad Programme Environment Orientation Cleanliness Performance and Status Tradition vs Change Risk – taking vs Security Attitudes to Problems Nature – live with or change

9. Consumer Behaviour Bangor Transfer Abroad Programme Self Orientation Lifestyle – physical / active Sensual gratification / abstinence Hedonism - materialistic Work ethic – hard work / Leisure Gratification – want it now or save for later Religion vs Secular…

10. Consumer Behaviour Bangor Transfer Abroad Programme Sub Cultures Global Cultures Globalisation of Brands – media Teen culture T Shirts Music Jeans and McD Middle Classes – Designer Clothes, Hotels Wealthy Pensioners – equivalent ppp Foreign Travel

11. Consumer Behaviour Bangor Transfer Abroad Programme Cultural Variations in Non Verbal Communications Time Space Etiquette – politeness Artefacts – Symbols Relationships Agreements

12. CULTURE, Hofstede’s Dimensions Globalization and anti-globalization Western vs. Asian culture

13. Hofstede’s Cultural Dimensions Individualism (vs. collectivism) Power distance Masculine vs. feminine Strong vs. weak uncertainty avoidance Short vs. long term orientation (Confucianist dynamics) – “The Foolish Old Man Who Moved the Mountain” Based on interviews with IBM executives throughout the World--1980s

14. Consumer Behaviour Bangor Transfer Abroad Programme There is an ancient Chinese fable called "The Foolish Old Man Who Removed the Mountains". It tells of an old man who lived in northern China long, long ago and was known as the Foolish Old Man of North Mountain. His house faced south and beyond his doorway stood the two great peaks, Taihang and Wangwu, obstructing the way. He called his sons, and hoe in hand they began to dig up these mountains with great determination. Another graybeard, known as the Wise Old Man, saw them and said derisively, "How silly of you to do this! It is quite impossible for you few to dig up those two huge mountains." The Foolish Old Man replied, "When I die, my sons will carry on; when they die, there will be my grandsons, and then their sons and grandsons, and so on to infinity. High as they are, the mountains cannot grow any higher and with every bit we dig, they will be that much lower. Why can't we clear them away?" Having refuted the Wise Old Man's wrong view, he went on digging every day, unshaken in his conviction. God was moved by this, and he sent down two angels, who carried the mountains away on their backs. Today, two big mountains lie like a dead weight on the Chinese people. One is imperialism, the other is feudalism. The Chinese Communist Party has long made up its mind to dig them up. We must persevere and work unceasingly, and we, too, will touch God's heart. Our God is none other than the masses of the Chinese people. If they stand up and dig together with us, why can't these two mountains be cleared away?

15. Individualism vs. collectivism The extent to which – Individuals as opposed to groups are rewarded – It is desirable to “stand out” from others In collectivism, the unit of responsibility can be (sometimes depending on context) – Work group – Family – Nation, community, or society as a whole

16. Power Distance The extent to which “rank” is important in work and relationships Rank can be based on – Position – Family/ethnic status – Age Implications for – Strategy formation – Delegation – Correcting mistakes

17. “Masculine” vs. “Feminine” “Masculine” values: Dominating environment, “conquering” nature, “progress” – E.g., damming, tunnels, land development, land reclamation “Feminine” values: Harmony, preserving environment – E.g., environmental impact, working around nature

18. Uncertainty Avoidance Low uncertainty avoidance – Willingness to Take risks – Investments – Social situations – Consider new ideas High uncertainty avoidance – Reliance on authority for decision making

19. Long vs. short term orientation Not included in Hofstede’s original work Complications—is U.S. shortsighted? – Short term financial performance – Investment in new technologies; firms with high price/earnings ratios Net present value (NPV) analysis/discounted cash flows Economic structure – Accountability to stockholders; disclosure of information

20. Characteristics of Culture Comprehensive Acquired (learned) Manifested in boundaries of acceptable thought and behavior--norms and sanctions Conscious awareness limited (frequently taken for granted) Dynamic vs. static

21. Homogeneity of Culture—Some Dimensions Linguistic Religious Ethnic Climatic Geographic Institutional/political Social/income Source: Usinier and Lee, 2005

22. Eastern vs. Western Culture Differences in – Values – Perceptions of Objects Reality – Stability vs. change – Control – Perceived roles

23. Time Issues in Culture Time as tangible, valuable commodity – “Time is money” vs. – Traditional means of relations Monochronic vs. polychronic approach to combining events Eating times – Regularity vs. flexibility – Social purpose – Meal purpose and content – Distribution of food consumption across the day Life as “single continuous event” vs. a series of repeating cycles – Impact of religion, attachment to nature’s cycles Preferred temporal orientation – Past – Present – Future

24. Relating to Outsiders Perceptions of outsiders—may be seen as – “barbarian” – “lazy” – “backward” – “inefficient” vs. “un- cultured” – profane (relative to in- group’s religion) Tendency to perceive “out-groups” as more homogeneous than one’s own group—the Sherif Boys’ Camp studies Locus of in-group—may depend on context Source: Usinier and Lee, 2005

25. Acculturation, Not Assimilation Assimilation: – A group leaves culture and customs behind and adopts culture and customs of another group Acculturation: – A group adopts or borrows customs and traits from another culture

26. Acculturation is Defined as… “Change resulting from contact between cultures” “The process by which people adopt or borrow customs and traits from another culture” “A merging of cultures as a result of prolonged contact” “Mutual influence of different cultures in close contact” Source: “Acculturation” Microsoft Encarta Online Encyclopedia 2000 Strategy Research Corp. Webster New World Dictionary, Third College Edition

27. Key Indicators of Acculturation Language Values

28. Cultural “borrowing” Adoption of elements from other cultures— e.g., – Language and writing systems – Products (e.g., jeans, pizza) Adjustments/adaptations Hidden process; origin may be unknown to contemporary members of the culture Source: Usinier and Lee, 2005

29. Some Examples of Borrowing Japanese writing system (sound and concept pictorals)—adapted with difficulty from Chinese (concept only pictorals) Arabic numeral system and mathematics English language words from – Latin – Arabic – Germanic and Nordic languages Major world religions

30. Perceived Control Over Reality World is not generally seen as predictable – Trends are not expected to continue Individual has little control over the world BUT – Outcome is believed to be tied to effort, not individual skill

31. Some Tendencies IssueWestern CultureEastern Culture Focus of attentionObjectsEnvironment Composition of the World ObjectsSubstances Controllability of environment More perceived control Less perceived control Perceived stabilityMore stableMore change Organization of the world CategoriesRelationships ReasoningFormal logicLess use of formal logic Resolution of disagreement Dialectic“Middle way” Source: Richard E. Nisbett, The Geography of Thought: How Asians and Westerners Think Differently … and Why, New York, 2003, The Free Press

32. More Tendencies Westeners tend to rate themselves – More unique than average and what they are – “Above average” in ability Easteners tend to rate themselves – Less unique than they really are – “Below average”

33. Parenting Western – Child given choices – In play, parent asks questions about objects Eastern – Choices made for the child – Child reared to stay with mother most of the time – Parent asks questions about feelings – Feelings in disciplinary talks “The farmer feels bad that you did not eat everything…” “The toy is crying because you threw it.”

34. Teaching Language to Children Emphasis is on verbs, not on – Nouns – Adjectives, adverbs (except if related to emotions)

35. Categorization Tendency to group into categories based on members that go together (e.g., monkey/banana rather than monkey/panda)

36. Proverbs Western: “The early bird gets the worm” Eastern: – “The first bird in the flock gets shot” – “A nail that stands out will be hammered down.”

37. Values IssueWestern Value Eastern Value Distinctiveness of people Want to be distinctiveNot valued; emphasis on tie to group Perceived controlSignificant; values determine choices Modest—societal values are already established EmphasisSuccess and achievement; relationships may get in the way Best outcome for relevant group (e.g., family, work group) Self-esteemStrive to feel good; assurances wanted Tied to belonging with group RelationshipsEquality or superior position Clearly defined; hierarchical RulesSame rules apply to allDepend on context and relationship Source: Richard E. Nisbett, The Geography of Thought: How Asians and Westeners Think Differently … and Why, New York, 2003, The Free Press

38. Some implications Thanking people—for things they are clearly supposed to do? Why the need for a choice between 40 different brands of cereal?

39. Socialization Western textbook: “See Dick run. See Dick play. See Dick run and play.” Chinese: “Big brother takes care of little brother. Big brother loves little brother. Little brother loves big brother.”

40. Perception of People Western: People have characteristics independent of the situation – Fundamental attribution error: People attribute their own behavior to the circumstances but that of others to innate characteristics. Eastern: Person is connected; behavior is the result of specific roles played at the time

41. Contrasting Advertising Perspectives (Aithison 2002) Western – “Atomistic”—broken down to smallest component parts – “Unique selling propositions” – “How to” – Positioning – May be “dull and boring” – “Copy focused” Asian – Holistic – “Everything relates to everything else” – How things “fit together” and “relate” – Visual and oral Jim Aitchison, How Asia Advertises, New York: Wiley, 2002.

42. Advertising Content Comparisons American: – Individual benefit and pleasure (e.g., “Make your way through the crowd) Korean – Collective values (e.g., “We have a way of bringing people together)

43. “Priming” and learning in a culture U.S. professor in Hong Kong started letter apologizing for his unworthiness for the job U.S. manager left room so that an employee could “snoop” on unfavorable report

44. Debate and Conflict “The first person to raise his voice has lost the argument.” (Chinese proverb) Use of indirection and projection Face-to-face vs. anonymous comments Western adversarial “rule of law” based on consistent universal ideals vs. solution for the case at hand in context

45. Resolving Disputes Not based on – Universal principles – Formal logic (not because of inability but because this is not a “mature way” to resolve disputes) Emphasis on – Compromise – Discouragement of bringing about conflict Inherent belief that “contradicting” statements can each have some truth (attraction to paradoxes)

46. Relationships, Education, and Work Western – Standing out; being “better” – Self perceived favorably – Self-esteem building – Work longer on successful job Eastern – Harmony – Must “weed out” personal characteristics that might annoy others – Taught self-criticism – Not recognized in profession until after many years of practice – Work longer on unsuccessful job

47. Chinese Involvement in Product Selection Low for products consumed individually in private—emphasis on price and quality Higher for products consumed in public setting—social significance becomes more important—e.g., – Status – Harmony with others

48. Mexican vs. U.S. culture Cautions – Mexico is a large, heterogeneous country – “Urban” areas vs. indigenous cultures – Large regional variations – Some differences based on income and lifestyle – Some impact of religion

49. Mexican Culture: General Issues High power distance Strong uncertainty avoidance Tendency toward “theoretical” education Strong patriotism Relatively formal etiquette Strong emphasis on family – Extended family – Strong family emphasis within private life – Relatives may be favored for jobs/business

50. Wealth, Positions, Power, and Privileges “He can’t be the owner; he works there!” Emphasis on titles—e.g., licenciado/licenciada Titles may be part of address Importance of connections – U.S.: “Networking” – Mexico: Greater emphasis on family and social class connections Manager/subordinate relationships: – Less question of “why” directions are given

51. Time and Planning Balance of reality and stereotypes Often less of a feel of urgency Speech may be less clear on timing (e.g., “I did” vs. “I am going to”) Keeping customer waiting may not be recognized as inconvenience—but… Planning may be limited due to changing environment (e.g., laws)