978-0134129945 Chapter 4 Lecture Note Part 1

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CHAPTER 4

SOCIAL AND CULTURAL ENVIRONMENTS

SUMMARY

A. Culture, a society’s “programming of the mind,” has both a pervasive and changing

influence on each national market environment. Global marketers must recognize the

influence of culture and be prepared to either respond to it or change it. Human behavior

is a function of a person’s own unique personality and that person’s interaction with the

collective forces of the particular society and culture in which he or she has lived. In

particular, attitudes, values, and beliefs can vary significantly from country to country.

B. Also, differences pertaining to religion, aesthetics, dietary customs, and language and

communication can affect local reaction to brands or products as well as the ability of

company personnel to function effectively in different cultures. A number of concepts and

theoretical frameworks provide insights into these and other cultural issues.

C. Cultures can be classified as high- or low-context; communication and negotiation styles

can differ from country to country. Hofstede’s social value typology helps marketers

understand cultures in terms of power distance, individualism vs. collectivism,

masculinity vs. femininity, uncertainty avoidance, and long- versus short-term

orientation. By understanding the self-reference criterion, global marketers can

overcome the unconscious tendency for perceptual blockage and distortion.

D. Rogers’ classic study on the diffusion of innovations helps explain how products are

adopted over time by different adopter categories. The adoption process that consumers

go through can be divided into multi-stage hierarchy of effects. Rogers’ findings

concerning the characteristics of innovations can also help marketers successfully

launch new products in global markets. Recent research has suggested that Asian adopter

categories differ from the Western model. An awareness of environmental sensitivity

can help marketers determine whether consumer and industry products must be adapted

to the needs of different markets.

LEARNING OBJECTIVES

1 Define culture and identify the various expressions and manifestations of culture that can

impact global marketing strategies

2 Compare and contrast the key aspects of high- and low-context cultures

3 Identify and briefly explain the major dimensions of Hofstede’s social values typology

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4 Explain how the self-reference criterion can affect decision making at global companies and

provide a step-by-step example of a company adapting to conditions in a global market

5 Analyze the components of diffusion theory and its applicability to global marketing

6 Explain the marketing implications of different social and cultural environments around the

globe

OVERVIEW

The conflicting priorities of commerce and conservation in Venice illustrate the ways that

differences in the social and cultural environments impact marketing opportunities and dynamics

around the globe. This chapter focuses on the social and cultural forces that shape and affect

individual, group, and corporate behavior in the marketplace. We start with a general discussion

of the basic aspects of culture and society and the emergence of a twenty-first-century global

consumer culture. Next, several useful conceptual frameworks for understanding culture are

presented. These include Hall’s concept of high- and low-context cultures, Maslow’s hierarchy of

needs, Hofstede’s cultural typology, the self-reference criterion, and diffusion theory.

The chapter also includes specific examples of the impact of culture and society on the

marketing of both consumer and industrial products.

ANNOTATED LECTURE/OUTLINE

SOCIETY, CULTURE, AND GLOBAL CONSUMER CULTURE

Both differences and similarities characterize the world’s cultures, meaning that the task of the

global marketer are twofold. First, marketers must study and understand the country cultures in

which they will be doing business. Second, this understanding must be incorporated into the

marketing planning process. In some instances, strategies and marketing programs will have to

be adapted; however, marketers should also take advantage of shared cultural characteristics and

avoid unneeded and costly adaptations of the marketing mix.

While marketers should be secure in their own convictions and traditions, an open mind is

required to appreciate the integrity and value of other ways of life and points of view. Although

“culture shock” is a normal human reaction to the new and unknown, successful global

marketers strive to comprehend human experiences from the local point of view.

Culture can be understood as “ways of living, built up by a group of human beings that are

transmitted from one generation to another.”

(Learning Objective #1)

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A culture acts out its ways of living in the context of social institutions, including family,

educational, religious, governmental, and business institutions.

Culture includes conscious and unconscious values, ideas, attitudes, and symbols that shape

human behavior and that are transmitted from one generation to the next.

Culture can be divided into two broad categories:

a) Material culture: the physical component or physical culture and includes physical

objects and artifacts created by humans such as clothing and tools.

b) Nonmaterial culture: the subjective or abstract culture and includes intangibles such as

religion, perceptions, attitudes, beliefs, and values.

“Cultural universals” are those elements of culture evident in all societies. These “universals”

include:

athletic sports

body adornment

cooking

courtship

dancing

decorative art

education

ethics

etiquette

family feasting

food taboos

language

marriage

mealtime

medicine

mourning

music

property rights

religious rituals

residence rules

status differentiation

trade

It has been argued that consumption has become the hallmark of postmodern society; cultural

information and imagery flow freely across borders via satellite TV and the Internet.

New global consumer cultures are emerging; these persons share meaningful sets of

consumption-related symbols. This culture stems from the wired world in which there is an

increasing interconnectedness of local cultures; it can be exploited by global consumer culture

positioning (GCCP).

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Attitudes, Beliefs, and Values

If we accept Hofstede’s definition of culture as “the collective programming of the mind,” then it

makes sense to learn about culture by studying attitudes, beliefs, and values.

An attitude is a learned tendency to respond in a consistent way to a given object or entity.

Attitudes are clusters of interrelated beliefs.

A belief is an organized pattern of knowledge that an individual holds to be true about the world.

Attitudes and beliefs are related to values.

A value is an enduring belief or feeling that a specific mode of conduct is personally or socially

preferable to another mode of conduct; values represent the deepest level of culture.

Within any large dominant cultural group, there are likely to be subcultures, smaller groups with

their own shared subset of attitudes, beliefs, and values; subcultures represent attractive niche

marketing opportunities.

Religion

Religion is an important source of a society’s beliefs, attitudes, and values.

The world’s major religions include Buddhism, Hinduism, Islam, Judaism, and Christianity.

Religious tenets, practices, holidays, and history directly impact the way people of different

faiths react to global marketing activities.

Example:

a) Hindus do not eat beef, which means that McDonald’s does not serve hamburgers in

India.

b) In the aftermath of the September 2001 terror attacks in New York and Washington, D.C.

and the subsequent American military actions in the Middle East, some Muslims have

tapped into anti-American sentiment by urging a boycott of American brands.

Religious issues have also been at the heart of a dispute about whether references to God and

Christianity should be included in a new European constitution that will be adopted now that the

European Union has expanded its membership from fifteen to 27 countries.

Aesthetics

Within every culture, there is an overall sense of what is beautiful and what is not beautiful, what

represents good taste as opposed to tastelessness or even obscenity, and so on. Such

considerations are matters of aesthetics.

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Global marketers need to understand the importance of visual aesthetics embodied in the color or

shape of a product, label, or package.

Likewise, different parts of the world perceive aesthetic styles—various degrees of complexity,

for example—differently. In some cases a standardized color can be used such as the distinctive

yellow on Caterpillar’s equipment.

Because color perceptions can vary among cultures, such perceptions should be considered in

product packaging and communications especially in highly competitive markets.

There is nothing inherently “good” or “bad” about a color; red is popular in most countries

despite being the color of blood. It represents winemaking and conveys the meaning

“emotional.”

In some African countries, red is poorly received, and white is associated with death in parts of

Asia.

Music is an aesthetic component of all cultures, accepted as a form of artistic expression and

source of entertainment. In one sense music represents a “transculture” not identified with any

particular nation; rhythm is a universal aspect of music.

However, music is also characterized by stylistic variation with regional or country-specific

associations (e.g., reggae with Jamaica); music exemplifies the “think global, act local” theme.

Because music plays an important role in advertising, marketers must understand what style is

appropriate in a given national market. Although background music can be used effectively in

broadcast commercials, the type of music appropriate for a commercial in one part of the world

may not be acceptable or effective in another part.

Dietary Preferences

Cultural influences are also quite apparent in food preparation and consumption patterns and

habits.

Examples:

a) Domino’s Pizza pulled out of Italy because Italians perceived its product to be “too

American.” In particular, the tomato sauce was too bold and the toppings were too heavy.

b) When Dunkin Donuts first opened in India in 2012, morning business was slow. Why?

Most Indians eat breakfast at home.

These examples underscore the fact that a solid understanding of food-related cultural

preferences is important for any company that markets food or beverages products globally.

Companies that lack cultural sensitivity are bound to make marketing mistakes.

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While some food preferences remain deeply embedded in culture, there is plenty of evidence that

global dietary preferences are converging. For example, “fast food” is gaining increased

acceptance around the world.

There are several explanations for this:

a) Heads of families in many countries are pressed for time and are disinclined to prepare

home-cooked meals.

b) Young people are experimenting with different foods.

c) The global tourism boom has exposed travelers to pizza, pasta, and other ethnic foods.

d) Shorter lunch hours and tighter budgets are forcing workers to find a place to grab a

quick, cheap bite before returning to work.

As cultural differences become less relevant, such convenience products will be purchased in any

country when consumer disposable income is high enough.

However, such processes can provoke nationalist backlash.

To counteract the exposure of its young citizens to le Big Mac and other American-style

fast foods, the French National Council of Culinary Arts designed a course of French

cuisine and “good taste” for elementary school students.

Language and Communication

The diversity of cultures around the world is reflected in language.

Linguists divide the study of spoken or verbal language into four areas:

syntax (rules of sentence formation)

semantics (system of meaning)

phonology (system of sound patterns)

morphology (word formation).

Unspoken or nonverbal communication includes gestures, touching, and other forms of body

language that supplement spoken communication.

The spoken and unspoken aspects of language are included in the broader linguistic field of

semiotics, which is the study of signs and their meanings.

In global marketing, language is a crucial tool for communicating with customers, suppliers,

channel intermediaries, and others. Blunders in product names and advertising are costly.

THE CULTURAL CONTEXT

Can French Cuisine Regain Its Luster?

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For centuries, France has enjoyed a reputation as the epitome of the culinary arts. Terms such as

haute cuisine, cuisine classique, and nouvelle cuisine have been used to describe various styles

and eras of French cooking. Quiche, escargot, and Tournados Rossini are some of the French

dishes that entered the culinary mainstream in the twentieth century.

French restaurants that use luxury ingredients and boast highly coveted stars from the venerable

Michelin guide have long been popular dining destinations among globetrotting gourmands.

Recently, a number of authors, journalists, and food critics have chronicled a disturbing trend:

the decline in France’s status as a culinary superpower.

In short, France is no longer universally viewed as cutting-edge. The numbers tell part of the

story: McDonald’s is France’s number one private sector employer, and the number of cafés has

shrunk to 40,000 from 200,000 half a century ago. While sales of the most expensive French

wines are booming, thanks to strong demand in Asia, sales of French wine made for everyday

drinking is declining around the world. What is to be done? Plenty, it turns out. For example,

Omnivore is an organization and magazine started by food writer Luc Dubanchet. The goal is to

spread the word about le jeune cuisine, which is more casual than traditional French.

Omnivore’s sponsors generally hope to generate increased awareness and sales among both chefs

and restaurant patrons. In addition, a French organization called the Interprofessional Council of

Bordeaux Wine (CIVB) has launched a new program to promote Bordeaux wines in global

markets.

Semantic issues (system of meaning) arise in global marketing.

Phonology (system of sound pattern) can be an issue.

Technology is providing interesting new opportunities for exploiting linguistics in the name of

marketing. Young people throughout the world are using mobile phones to send text messages; it

turns out that certain number combinations have meaning in particular languages.

An impact of globalization on culture is the diffusion of the English language; more people speak

English as a foreign language than as a native language.

The challenges of nonverbal communication are formidable (e.g., In the Middle East, Westerners

must not reveal the soles of their shoes or pass documents with the left hand).

Westerners must pay attention not only to what they hear but also to what they see when

conducting business in such cultures.

Two important communication issues may emerge:

Sequencing concerns whether the discussion goes directly from point A to point B or

seems to go off on tangents.

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Phasing pertains to whether certain important agenda items are discussed immediately or

after the parties have taken some time to establish rapport

Marketing’s Impact on Culture

Universal aspects of the cultural environment represent opportunities for global marketers to

standardize a marketing program. The astute global marketer often discovers that much of the

apparent cultural diversity in the world turns out to be different ways of accomplishing the same

thing.

Increased travel and improved communications have contributed to a convergence of tastes and

preferences in many product categories.

However, the impact of marketing and of global capitalism on culture can be controversial;

sociologist Ritzer laments the “McDonaldization of culture.”

As a response, the international Slow Food movement boasts 70,000 members in dozens of

countries; it is founded on the idea that things should not taste the same everywhere (Exhibit 4-

6).

HIGH- AND LOW-CONTEXT CULTURES

(Learning Objective #2)

Edward T. Hall forwarded the concept of high- and low-context to explain cultural orientations.

In a low-context culture, messages are explicit and specific; words carry most of the

communication power.

In a high-context culture, less information is contained in the verbal part of a message. More

information resides in the context of communication, including the background, associations, and

basic values of the communicators.

High-context cultures function with much less legal paperwork than low-context cultures (e.g.,

Japan and Saudi Arabia place emphasis on a person’s values and social position).

In a low-context culture such as the U.S., Switzerland, or Germany, deals are made with less

information about character, background, and values of the participants. Much more reliance is

placed upon words and numbers.

In a high-context culture, a person’s word is his bond. There is less need to anticipate legal

contingencies because the culture emphasizes obligations and trust as important values. In these

cultures, shared feelings of obligation and honor take the place of impersonal legal sanctions.

Exceptions to the general tendency are found in subcultures. The U.S. is a low-context culture

with high-context subcultures (e.g., the world of the central banker, for example, is a

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“gentleman’s” world. The word of the banker is many times sufficient for the borrowing of

millions of dollars).

(Table 4-1 summarizes some of the ways in which high- and low- context cultures differ).

HOFSTEDE’S CULTURAL TYPOLOGY

(Learning Objective #3)

Hofstede is well known for research studies of social values suggesting that the cultures of

different nations can be compared in terms of five dimensions (see Table 4-2).

The dimensions are:

1. The first dimension is a reflection of the degree to which individuals in a society are

integrated into groups. In Individualist cultures: each member of society is primarily

concerned with his or her own interests and those of the immediate family. In Collectivist

cultures, all of society’s members are integrated into cohesive in-groups.

High Individualism – U.S. and Europe

Low Individualism – Japan and other Asian countries

2. Power distance: is the extent to which the less powerful members of a society accept –

even expect – power to be distributed unequally. Hong Kong and France are both high power

distance countries. Germany and Austria are low power distance countries.

3. Uncertainty avoidance: This is the extent to which the members of a society are

uncomfortable with unclear, ambiguous, or unstructured situations. Members of uncertainty

accepting cultures are more tolerant of persons whose opinions differ from their own.

Examples: Denmark, Sweden, Ireland, and the United States. At the other end are Greece and

Portugal.

4. Achievement: This dimension describes a society in which men are expected to be

assertive, competitive, and concerned with material success, and women fulfill the role of

nurturer and are concerned with issues such as the welfare of the children. Examples are

Japan and Austria. Nurturing, by contrast, describes a society in which the social roles of

men and women overlap, with neither gender exhibiting overly competitive behavior.

Examples are Spain, Taiwan, the Netherlands, and the Scandinavian countries.

5. Long-term orientation vs short-term orientation

For cultural dimensions in Asia, researchers developed a Chinese Value Survey (CVS)

a) A long-term orientation (LTO) versus short-term orientation to assess the sense of

immediacy within a culture, whether gratification should be immediate or deferred.

b) Long-term values include persistence (perseverance), a general tenacity in the pursuit of

a goal.

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c) Ordering relationships by status reflects the presence of societal hierarchies, and

observing this order indicates the acceptance of complementary relations.

d) Thrift manifests itself in high savings rates.

e) A sense of shame leads to sensitivity in social contacts.

These values are held within high-performing Asian countries such as Hong Kong, Taiwan, and

Japan, but these values alone do not lead to economic growth.

The existence of a market and a supportive political context are also required (e.g. India has been

held back by market restrictions until recently).

Hofstede’s work provides marketers insights that can guide them in a range of activities,

including product development, interacting with joint venture partners, and conducting sales

meetings.

For example, understanding the time orientation of one’s native culture compared to that of

others is crucial.

In Japan, Brazil, and India, building a relationship with a potential business partner takes

precedence over transacting the deal. People from cultures that emphasize the short term must

adapt to the slower pace of business in some countries.

The Japanese concept of gaman (persistence) provides insight into the willingness of Japanese

corporations to pursue research and development projects for which the odds of short-term

success appear low.

Throughout much of Asia, the collectivist orientation is dominant. The U.S. is a highly

individualist culture. In highly individualistic cultures, ads often feature one person; in

collectivist countries, ads feature groups.

Using Hofstede’s framework can provide useful insights into the creation of culturally

appropriate consumer brand images.

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