Social and cultural environments
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Social and Cultural Environments. This chapter includes: Society, Culture, and Consumer Culture Ethnocentricity and Self-Reference Criterion Hall’s Theory Maslow’s Hierarchy Hofstede’s Cultural Typology Diffusion Theory. Introduction. African Market.

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Social and cultural environments

Social and Cultural Environments


Introduction

This chapter includes:

Society, Culture, and Consumer Culture

Ethnocentricity and

Self-Reference Criterion

Hall’s Theory

Maslow’s Hierarchy

Hofstede’s Cultural Typology

Diffusion Theory

Introduction

African Market


Introduction1

“This can happen to anyone, anywhere, at anytime if you don’t understand other people’s culture.”

Finn Hansen,

Head of international operations at Arla Foods

referring to the boycott of Danish products by Muslims and the political debacle that followed the publication of images of the prophet Mohammed in a Danish newspaper.

Introduction


Task of global marketers

Task of Global Marketers

  • Study and understand the cultures of countries in which they will be doing business

  • Understand how an unconscious reference to their own cultural values, or self-reference criterion, may influence their perception of the market

  • Incorporate this understanding into the marketing planning process


Society culture and global consumer culture

Society, Culture, and Global Consumer Culture

  • Culture – ways of living, built up by a group of human beings, that are transmitted from one generation to another

  • Culture is acted out in social institutions

  • Culture has both conscious and unconscious values, ideas and attitudes

  • Culture is both material/physical (clothing and tools) and nonmaterial/nonphysical (religion, attitudes, beliefs, and values)


Society culture and global consumer culture1

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 ethnic group, a gender group, an organization, or a family may be considered as a category.


Social institutions

Social Institutions

  • Family

  • Education

  • Religion

  • Government

  • Business

    These institutions function to reinforce cultural norms


Material and nonmaterial culture

Physical components of culture

Clothing

Tools

Decorative art

Body adornment

Homes

Subjective or abstract culture

Religion

Perceptions

Attitudes

Beliefs

Values

Material and Nonmaterial Culture


Society culture and global consumer culture2

Society, Culture, and Global Consumer Culture

  • Global consumer cultures are emerging

    • Persons who share meaningful sets of consumption-related symbols

    • Pub culture, coffee culture, fast-food culture, credit card culture

  • Primarily the product of a technologically interconnected world

    • Internet

    • Satellite TV

    • Cell phones


Attitudes beliefs and values

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


Aesthetics

The sense of what is beautiful and what is not beautiful

What represents good taste as opposed to tastelessness

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


Aesthetics and color

What do you associate

Aesthetics and Color

with“red”?

with white”?

  • Blood, wine-making,activity, heat, vibrancy in somecountries,

  • Weddings in some Asian cultures

    but...

  • Poorly received in African countries

with“gray”?

  • Purity, cleanliness in western parts

    but...

  • Death in parts of Asia

  • Inexpensive in Japan and China,

  • but …

  • high quality and expensive in the U.S.


Dietary preferences

Dietary Preferences

  • Domino’s Pizza pulled out of Italy because its products were seen as “too American” with bold tomato sauce and heavy toppings.

  • Subway had to educate Indians about the benefits of sandwiches because they do not normally eat bread.


Language and communication

Language and Communication

  • Spoken or verbal cues

  • Nonverbal cues or body language


Language and communication1

Language and Communication


Phonology in action

Phonology in action

  • Colgate – a Spanish command that means ‘go hang yourself’

  • Whirlpool – consumers in Italy, France and Germany had trouble in pronouncing the name

  • Diesel – one of the few words pronounced the same in most languages

  • Technology implications for sending Text messages by mobile phones

    • Example: phonetic pronounciation of some numerical sequences in Korea:

      • 8282 means ‘hurry up’

      • 7170 means ‘close friend’

      • 4 5683 968 means ‘I Love You’


Language and communication2

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


Language and communication3

Language and Communication

  • Verbal Cues

  • Nonverbal cues or body language

    • Shrug

    • Head wobble - In Western countries, "Yes, definitely!" is communicated by nodding the head multiple times. In South Asia, it is communicated by a single strong head-wobble.


Marketing s impact on culture

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


Controversy surrounding marketing s impact on culture

Controversy Surrounding Marketing’s Impact on Culture

  • “McDonaldization of Culture”

    Eating is at the heart of most cultures and for many it is something on which much time, attention and money are lavished.

    In attempting to alter the way people eat, McDonaldization poses a profound threat to the entire cultural complex of many societies.

    George Ritzer


Controversy surrounding marketing s impact on culture1

Controversy Surrounding Marketing’s Impact on Culture

  • Protest against the opening of McDonald’s in Rome led to the establishment of the Slow Food movement

    • “Slow Food” movement: has 70,000 members in 35 countries

    • “Slow food is about the idea that things should not taste the same everywhere”


High and low context cultures

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


High and low context cultures1

High- and Low-Context Cultures


Hofstede s cultural typology

Hofstede’s Cultural Typology

  • Power Distance

  • Individualism/Collectivism

  • Masculinity

  • Uncertainty Avoidance

  • Long-term Orientation


Hofstede s cultural typology1

Hofstede’s Cultural Typology

  • Power Distanceğthe extent to which the less powerful members of a society accept - even expect- power to be distributed unequally (can be differences in the levels of power)

    • Latin American and Arab nations are ranked the highest in this category; Scandinavian and Germanic speaking countries the least.

    • Countries with high power distance rating are often characterized by a high rate of political violence.


Hofstede s cultural typology2

Hofstede’s Cultural Typology

  • Individualism / Collectivismğa reflection of the degree to which individuals in asociety are integrated into groups

    • the extent to which people are expected to stand up for themselves, or alternatively act predominantly as a member of the group or organization.

    • Latin American cultures rank the lowest in this category, while U.S.A. is the most individualistic culture.


Hofstede s cultural typology3

Hofstede’s Cultural Typology

  • Masculinity/ Femininityğrefers to the value placed on traditionally male or female values.

    • Masculinityğa society in which men are expected to be assertive, competitive, and concerned with material success and the accumulation of wealth, and women fulfill the role of nurturer and are concerned with issues such as the welfare of children.

    • Femininityğdescribes a society in which the socialroles of men and women overlap; feminine cultures place more value on relationships and quality of life.

    • Japanis considered by Hofstede to be the most "masculine" culture, Swedenthe most "feminine“. The U.S. and UK are moderately masculine.


Hofstede s cultural typology4

Hofstede’s Cultural Typology

  • Uncertainty Avoidanceğthe extent to which the members of a society are uncomfortable with unclear, ambiguous, or unstructured situations

    • Reflects the extent to which a society attempts to cope with anxiety by minimizing uncertainty.

    • Cultures that scored high in uncertainty avoidance prefer rules (e.g. about religion and food) and structured circumstances, and employees tend to remain longer with their present employer.

    • Mediterranean cultures and Japanrank the highest in this category.


Hofstede s cultural typology5

Hofstede’s Cultural Typology

  • Long-term Orientation (vs. short-term orientation) ğconcerning “a society’s search for virtue”, rather than a search for truth.

    • Describes a society's "time horizon", or the importance attached to the future vs.the past and present & assesses the sense of immediacy within a culture, whether gratification should be immediate or deferred.

    • In long term oriented societies, thrift and perseverance are valued more; in short term oriented societies, respect for tradition and reciprocation of gifts and favors are valued more.

    • Eastern nations tend to score especially high here, with Western nations scoring low and the less developed nations very low;

    • Chinascored highest and Pakistan lowest.


Http www geert hofstede com

http://www.geert-hofstede.com


Self reference criterion and perception

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


Diffusion theory the adoption process

Diffusion Theory: The Adoption Process

  • 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


Diffusion theory characteristics of innovations

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


Diffusion theory adopter categories

Diffusion Theory:Adopter Categories


Marketing implications

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


Environmental sensitivity

Environmental Sensitivity


Environmental sensitivity1

Environmental Sensitivity

  • Independent of social class and income, culture is a significant influence on consumption and purchasing

  • Food is the most culturally-sensitive category of consumer goods

    • Dehydrated Knorr Soups did not gain popularity in the U.S. market that preferred canned soups

    • Starbucks overcame cultural barriers in Great Britain and had 466 outlets by 2005


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