Social and Cultural Environments

1. Social and Cultural Environments Global Marketing Chapter 4

2. This chapter includes: Society, Culture, and Consumer Culture Ethnocentricity and Self-Reference Criterion Hall’s Theory Hofstede’s Cultural Typology Diffusion Theory Introduction

3. Culture • A basic definition -- Culture is the total accumulation of an identifiable group's beliefs, norms, activities, institutions, and communication patterns. • Values, attitudes, standards and beliefs are all embedded in culture

4. Society, Culture, and Global Consumer Culture • Culture is acted out in social institutions • Culture is both physical (clothing and tools) and nonphysical (religion, attitudes, beliefs, and values)

5. Social Institutions • Family • Education • Religion • Government • Business These institutions function to reinforce cultural norms

6. Physical component or physical culture Clothing Tools Decorative art Body adornment Homes Subjective or abstract culture Religion Perceptions Attitudes Beliefs Values Material and Nonmaterial Culture

7. Society, Culture, and Global Consumer Culture “Culture is the collective programming of the mind that distinguishes the members of one category of people from those of another.” Geert Hofstede • A nation, an ethic group, a gender group, an organization, or a family may be considered as a category.

8. Attitudes, Beliefs, and Values • Attitude–learned tendency to respond in a consistent way to a given object or entity • Belief–an organized pattern of knowledge that an individual holds to be true about the world • Value–enduring belief or feeling that a specific mode of conduct is personally or socially preferable to another mode of conduct

9. Religion • The world’s major religions include Buddhism, Hinduism, Islam, Judaism, and Christianity and are an important source of beliefs, attitudes, and values. • Religious tenets, practices, holidays, and history impact global marketing activities.

10. The sense of what is beautiful and what is not beautiful What represents good taste as opposed to tastelessness or even obscenity Visual–embodied in the color or shape of a product, label, or package Styles–various degrees of complexity, for example, are perceived differently around the world Aesthetics

11. Aesthetics and Color • Red–associated with blood, wine-making, activity, heat, and vibrancy in many countries but is poorly received in some African countries. White–identified with purity and cleanliness in the West, with death in parts of Asia. Gray–means inexpensive in Japan and China, but high quality and expensive in the U.S.

12. The Meaning of Color Red signifies good luck and celebration in China Red is associated with “active,” “hot” and “vibrant”

13. Dietary Preferences

14. Speaking English around the Globe There are more people who speak English as a foreign language than native speakers 85% of European teens study English Sony, Nokia, Matsushita require managers to speak English Nonverbal Communication Westerners tend to be verbal; Asians value nonverbal communication In Japan, bowing has many nuances In the Mideast, Westerners should not show the soles of shoes or pass documents with the left hand Language and Communication

15. Marketing’s Impact on Culture • Universal aspects of the cultural environment represent opportunities to standardize elements of a marketing program • Increasing travel and improved communications have contributed to a convergence of tastes and preferences in a number of product categories

17. Theoretical perspectives • Halls High- Low context culture • Hofstede’s Cultural Typology • Diffusion Theory

18. Low vs. High ContextTreat everyone the same vs. cater to background characteristics

19. High Context Information resides in context Emphasis on background, basic values, societal status Less emphasis on legal paperwork Focus on personal reputation Saudi Arabia, Japan Low Context Messages are explicit and specific Words carry all information Reliance on legal paperwork Focus on non-personal documentation of credibility Switzerland, U.S., Germany High- and Low-Context Cultures

20. High- and Low-Context Cultures

21. Hofstede’s Cultural Typology • Power Distance • Individualism/ Collectivism • Masculinity • Uncertainty Avoidance • Long-term Orientation

22. Low vs. High power distance(shared power vs. power elites)

23. Power Distance • Low power distance cultures decentralize power into many different organizations & job positions. Powerful people are not that much different from everyone else. • High power distance cultures centralize power into a small group of power elites who are treated with great deference. • Hong Kong, France etc. are high power distance countries • Austria, Denmark, Sweden etc. are lower power distance countries

24. Individualistic culture: I define myself (not society) Japan, Hong kong, Taiwan are having high collectivism United States, Europe are having high individualism

25. Masculinity/Femininity Japan, Austria are ranked highest

26. Uncertainty Avoidance • Preparedness of the people to face any uncertainties in society. • Members of the uncertainty avoiding cultures may be more aggressive, emotional and have intolerant behavior. • Greece, Portugal etc. are outrank others • Denmark, Sweden, Ireland, US are uncertainty accepting countries.

27. Long term orientation • The extent to which a society encourages and rewards future oriented behaviors such as planning, investing in the future etc. • Most of the Asian countries such as Japan, Hong Kong, Taiwan are examples.

28. Self-Reference Criterion and Perception • Unconscious reference to one’s own cultural values; creates cultural myopia • How to Reduce Cultural Myopia: • Define the problem or goal in terms of home country cultural traits • Define the problem in terms of host-country cultural traits; make no value judgments • Isolate the SRC influence and examine it • Redefine the problem without the SRC influence and solve for the host country situation

29. Diffusion Theory: The Adoption Process (Self Study) • The mental stages through which an individual passes from the time of his or her first knowledge of an innovation to the time of product adoption or purchase • Awareness • Interest • Evaluation • Trial • Adoption

30. Diffusion Theory:Characteristics of Innovations • Innovation is something new; five factors that affect the rate at which innovations are adopted include: • Relative advantage • Compatibility • Complexity • Divisibility • Communicability

31. Diffusion Theory:Adopter Categories

32. Marketing Implications • Cultural factors must be considered when marketing consumer and industrial products • Environmental sensitivity reflects the extent to which products must be adapted to the culture-specific needs of different national markets

33. Looking Ahead to Chapter 5 • The Political, Legal, and Regulatory Environments of Marketing