Chapter 5
Cultural Influences on International Marketing
LEARNING OBJECTIVES
After studying this chapter students should be able to:
• Identify elements of culture and examine how they affect international marketing
practices around the world.
• Describe national and regional character based on dimensions such as time
CHAPTER SPOTLIGHTS
• Culture Defined: Culture is defined as a continuously changing totality of learned
and shared meanings, rituals, norms, and traditions among the members of a
society. Pivotal constituents are ecology, social structure, and ideology.
• Elements of Culture: Elements of culture include language (spoken/written,
nonverbal communication), religion, cultural values (enduring beliefs about a
• Self-Reference Criterion and Ethnocentrism: Marketers must avoid the self-
reference criterion, or the unconscious reference to their own value systems, and
ethnocentrism, the belief that home-country culture is superior to another culture
and that strategies used in the home-country market will work in other countries.
• The Global Consumer Culture: Global consumer segments worldwide defined in
CHAPTER OVERVIEW
This chapter examines how the different elements of culture affect marketing practices
global consumer culture is examined as it manifests itself around the world.
CHAPTER OUTLINE
5-1 Culture Defined
1. Definition of Culture: Culture is defined as a continuously changing totality
of learned and shared meanings, rituals, norms, and traditions among the
5-2 Elements of Culture: The elements of culture that are most relevant to
international marketing managers are:
5-2a Language:
Shapes and structures one’s worldview; language nuances and complexities are
key to communicating in a particular culture. It has two main aspects:
1. Spoken/written language: poses a number of concerns to marketers. First, it
where multiple languages are used as to which language(s) to use.
2. Non-verbal communication: Includes all communication other than spoken
language. The following venues are important in international marketing:
a. Proxemics: The relationship between physical space and the process of
communication – in some cultures, it is appropriate to stand close to
your counterpart, while, in others, there is an imaginary bubble
5-2b Religion:
Defines a society’s relationship to the supernatural, and, as a result, determines
dominant values and attitudes. Religious beliefs are important determinants of
consumer behavior and can be linked to cultural behaviors that impact economic
development and marketing.
1. Religion and business days: Dominant religion of a country determines
various practices, such as prayer time, the time for fasting, and creates
restrictions on businesses related to operations on national religious holidays.
2. Religion and gender roles: Differ from country to country. For example, in
the more traditional Islamic countries, women’s business activities are
5-2c Cultural Values:
Values are enduring beliefs about a specific mode of conduct or desirable end-
5-2d Cultural Norms: Imperatives, Exclusives, and Adiaphoras
Norms are derived from values and are defined as rules that dictate what is right
or wrong. To be successful in foreign markets, marketers must be able to adhere
to the following cultural norms, related to imperatives, exclusives, and
adiaphoras.
1. Imperatives refer to what one must or must not do in a certain culture.
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5-2e National/Regional Character:
Distinct set of behavior and personality characteristics particular to a country or a
number of countries in a certain geographical region.
1. Time orientation: The manner in which tasks are approached relative to time.
Monochronic time (M-time) is attributed to cultures where individuals usually
do one thing at a time, sequentially. Polychronic time (P-time) is attributed to
transaction in a foreign culture.
4. Socializing: The need for socialization as a prerequisite for a positive working
relationship; the extent to which the content of conversations is appropriate
for the event differs by country (for example, in some countries it is
appropriate to talk business over dinner, whereas in others, it is not).
5. Gender roles: Women’s and men’s roles in society and role-related
expectations are important when establishing business relationships. In certain
5-3 Cultural Variability: Identifies the differences between cultures using the
Hofstede dimensions.
5-3a Hofstede Dimensions:
1. Power distance: The manner in which interpersonal relationships are formed
when differences in power are perceived. The relationship can either be
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3. Masculinity: The degree to which a national culture is characterized by
5-4 Cultural Change and Marketing:
Because cultures are undergoing continuous change, cultural training must
5-5 The Self-Reference Criterion and Ethnocentrism:
When dealing with other cultures, marketers must avoid the self-reference
5-6 The Global Consumer Culture:
Global consumer segments, characterized by shared sets of consumption-related
symbols and similar consumption activities, are represented worldwide. Global
consumer culture is attributed to the proliferation of transnational firms,
KEY TERMS
Acculturation: The act of learning a new culture; encompasses intercultural interaction
and adaptation.
Adiaphoras: The norms that refer to customs that a foreign national may engage in but is
not necessarily expected to do so.
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Chronemics: The timing of verbal exchanges.
Collectivism: The degree to which individuals prefer to act in the interest of the group,
rather than in their own self-interest.
Enculturation: The process by which individuals learn the beliefs and behaviors
endorsed by their own culture.
Ethnocentrism: The belief that one’s culture is superior to another and that strategies
used in one’s home country (presumably a developed country) will work just as well
internationally.
Exclusives: The norms that refer to activities that are appropriate only for locals and
from which individuals from a foreign country are excluded.
Haptics: The use of touch while conversing.
High-Context Cultures: Cultures in which the context of a message – the message
source, the source’s standing in society or in a group, his or her expertise, tone of voice,
and body language – are all meaningful parts of the message.
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Ideology: The manner in which individuals relate to their environment and to others,
including their attitudes toward time, space, possessions, and referent others.
Imperatives: The norms referring to what individuals must or must not do in a certain
culture.
Local Consumer Culture Positioning: Positioning that associates the brand with local
cultural meanings, reflecting the local culture, and portrayed as consumed by locals
and/or depicted as locally produced by local people.
Low-Context Cultures: Cultures in which what is said is precisely what is meant so that
the verbal message carries the full meaning of the sentence.
Nonverbal Communication: All communication that is not written or spoken; includes
body language, gestures, facial expressions, eye contact, and silence.
Norms: Rules that dictate what is right or wrong, acceptable or unacceptable in a society.
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Polychronic Time: The interpretation of time as fluid, such that individuals can
accomplish multiple tasks at once.
Postures: Individuals’ physical postures during conversation.
Self-Reference Criterion: Individuals’ conscious and unconscious reference to their
own national culture, to home-country norms and values, and to their knowledge and
experience in the process of making decisions in the host country.
Social Structure: The organization of relationships in a society.
Spoken/Written Language: The language used in conversation/ the language used in
written communications.
Values: Enduring beliefs about a specific mode of conduct or desirable end-state that
guide the selection or evaluation of behavior.
DISCUSSION QUESTIONS
1) How does religion affect international marketing and international business
operations in a target market?
Religion, as the society’s relationship to the supernatural, determines the dominant
values and attitudes. As a result, it has an important influence on consumer behavior:
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2) What are the different cultural norms and values, and how do they differ around
the world?
Cultural values are defined as enduring beliefs about a specific mode of conduct
or desirable end-state that guide the selection or evaluation of behavior. Western cultures
place more stress on success, achievement and competitiveness, whereas Eastern cultures
3) Margaret Hogan is an international marketing manager planning to accept an
assignment representing her company interests in Saudi Arabia. What are some of
the cultural elements that will have an impact on her performance? How can she
best prepare for this assignment?
As a woman, Margaret will need to be aware of the position of women in that
country. Therefore, she should be prepared to dress very differently than at home, making
sure her wrists, ankles, hair, and face are covered at all times. She should also hire a
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4) Many messages aimed at consumers in Central and Eastern Europe have a status
message. Why? If you were assigned to work in this environment, would you, as a
manager, show solidarity with the workers and symbolically work alongside them in
the factory? Explain.
In countries in the former Eastern Bloc, status was, for decades, defined by
political affiliation. Higher political status (party leader) meant having a much higher
living standard than the average individual. After the fall of communism, these countries
5) How do managers use the global consumer culture to position their goods in the
local market?
Global consumer culture addresses trends such as the proliferation of transnational
firms and their brands worldwide, globalized consumerism, and the desire for material
REVIEW QUESTIONS
True/False
1. True
6. True
Multiple Choice
1. C
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CASE 5-1
Wal-Mart: An Anatomy of Failure in the German Market
1. Do an analysis of the German food retail consumer. How do consumers in
Germany differ (or do they?) from consumers in the United States?
German consumers are deal prone. They would like to pay low prices and expect to have
2. What assumptions did Wal-Mart make regarding German consumers that were
incorrect? Why did the company make erroneous assumptions?
Wal-Mart’s incorrect assumptions were that German consumers, much like their U.S.
counterparts, desire low prices and excellent consumer service. Their strategy was to
3. How did Wal-Mart’s employee culture clash with Germany’s employee culture?
Wal-Mart’s German employees resisted the company’s customer-service culture,
standing stone-faced as exuberant U.S. managers did the company cheer. The employees
CASE 5-2
Disneyland Resort Paris: The Challenges of Cultural Adaptation
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1. How do the values and lifestyles of European consumers differ from those of
consumers in the United States? Discuss the Disney failure to address European
consumers’ preferences based on the respective values and lifestyles.
Disney did not quite understand the values and lifestyles of European consumers. Among
the mistakes the company made before 1994 are the following:
– Disney did not have enough variety to appeal to the highly diverse European sub-
2. How did Disneyland Resorts Paris manage a turnaround? What did it do to
convince consumers to come back?
After being close to bankruptcy in 1994, Disney made dramatic changes to slowly
increase popularity. Attendance at Disney today is steadily increasing in Europe.
– Disney changed the name of its resort to Disneyland Resort Paris. The new name
emphasizes the longer vacations (Resort) people enjoy in Europe.
park after 5 p.m.
– Disney changed its alcohol policy to allow wine and beer to be sold with meals.
– Its restaurants offer a more diverse menu that includes meals appealing to
different groups.
3. Compare the Disney case with the Wal-Mart case. Did Disney make better
decisions? Why, or why not?
Disney decided to adapt and, importantly, there was room for adaptation to the European
culture. Wal-Mart did not have any options to lower its prices beyond what they were
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