When traveling or living abroad what gave you the biggest culture shock? Three Elements of Culture • The first is that culture is learned. This means that unlike hair color or height, culture is not a hereditary trait. If a French mother and an Australian father live in Mexico and have a child, the child will adopt the Mexican culture - language, values, importance of events, etc. The child will certainly have a better sense of French and Australian cultures than its classmates, but it will, nevertheless, accept the Mexican culture as its own. • Second, culture is shared by all members of society. This trait is what turns ideals and values into a culture rather than a personal preference. Subcultures can certainly exist within a culture; this is particularly true when large groups of immigrants arrive in a country and "find" one another. In this way Jewish or Italian or Polish subculture may flourish within a larger culture. • Finally, the idea that one element of culture affects all other elements is important in understanding how elements of culture are related to each other. An example of this is class: an individual's class will affect the vocabulary she uses, as well as how she perceives the world around her. What is Culture? “The sum total of knowledge, beliefs, art, morals, laws, customs, and any other habits and capabilities acquired by humans as members of society.” Culture Incorporates… • Social Institutions – Family: nuclear, extended, parental roles, marriage & courtship, female/male roles – Education: primary, secondary, higher, literacy rate – Political System*: structure, parties, stability, tax rates, local government – Legal System*: laws regulating exchange, doing business in Culture incorporates… • Social Institutions (con‟t.) – Humans and the Universe: Belief systems, religion, degree to which people accept religion, number who belong – Attitudes – Values Humans & Universe (Religion, superstition, belief systems) Culture Incorporates… • Aesthetics – Design, folklore, music, drama, folklore & symbols Aesthetics (Art, folklore, music, drama) help interpret meaning of colors, symbols, standards of beauty) Culture incorporates… • Living Conditions – Diet – Housing – Dress – Recreation – Health care – Social security Social Institutions (Social classes, roles of men & women, family, education, media), Dress, Recreation Recreation Culture incorporates… • Language – Official, Spoken vs. written, Dialects Language English Translations made by Japanese firm that were added to labels to increase prestige for their products being sold in China. Product EnglishTranslation Equivalent to Japanese Spam Liver Putty Toilet Paper My Fanny Brand Ready to Eat Pancakes Strawberry Crap Dessert Antifreeze Spray Hot Piss Brand Pediatrician‟s Slogan Specialist in Deceased Children Language… • Nike made a television ad promoting its shoes, with people from different countries saying, "Just do it" in their native language. Too late they found out that a Samburu African tribesman was really saying, "I don't want these, give me big shoes." Key Element of Culture Values - Enduring Western Eastern beliefs about a specific mode of conduct or desirable Success Social Welfare end-state that guide the selection or Achievement evaluation of behavior In Sum, Culture includes… • Social institutions, e.g family, schools, government • Belief Systems • Values • Aesthetics • Living Conditions, e.g. diet, dress, recreation • Language How Does Culture Affect Marketing? 1. Material culture (Technology Level) → Quality & type of product demanded, functional features, means of production Functional Features • Jogging Suit • Jogging suit with easy zip back keeps your dog clean and dry in Type of Products rain or snow. Great for shows! Type of Products Effect of Material Culture (Economic Development) on Marketing – As economy develops • Marketing institutions become more varied & complex • Facilitating institutions emerge, e.g. advertising agencies, credit bureaus • Demand for industrial products changes – Equipment to build manufacturing plants, highways, power plants – Parts and supplies to maintain plants – Items that other countries can produce more competitively • Demand for consumer goods moves from subsistence to luxury How Does Culture Affect Marketing? 2. Values affect how product is positioned. E.G. Japanese Values on Product Positioning (Deodorant) • Japanese attitude towards body smells and the belief that Western style, heavy-duty deodorants are not required for them because they ‘don’t smell as bad’ are the main reasons why deodorants designed for Japanese are different from those designed for foreigners. • Western culture has traditionally been fragrance-based with individuals mixing deodorants, perfumes and their own body odors to create a ‘unique smell’ • While Japanese culture has tended to discourage the showcasing of one’s own smell, preferring the non-intrusive and non-smelling to the fragrant and aromatic. • Japanese deodorants marketed as ‘fresh’ rather than „nice-smelling‟; come in lighter fragrances such as green apple and lemon; seems to be a female-dominated market, with the male deodorant market hardly visible. • Many foreigners living in Japan choose to stock up on deodorant when they go home or arrange to have a supply shipped in from overseas. U. S. has so far decided not to enter the Japanese market at all. How Does Culture Affect Marketing? 3. Social institutions regulate consumer‟s behaviors and attitudes by organizing his activities and teaching acceptable behavior – literacy, e.g. type of media – political acceptance of marketing activities, e.g. hypermarche In Sum, Culture Affects… • Management • Marketing – Consumer Behavior – Product Development & Design – Promotion – Distribution – Pricing • Countries vary based on culture – Cultures can be classified on a number of dimensions, e.g. Hofstede Hofstede’s Dimensions of Culture: (1) Uncertainty Avoidance 1. Uncertainty Avoidance focuses on the degree the society reinforces, or does not reinforce, uncertainty and ambiguity within the society. – High Uncertainty Avoidance ranking indicates the country cannot tolerate a high level of uncertainty/ambiguity. This is reflected in a high concern for rules, regulations, controls, and issues with career security; risk averse – Low Uncertainty Avoidance ranking indicates the country has a higher tolerance for ambiguity and uncertainty. This is reflected in a society that more readily accepts change and takes more and greater risks. 2 - Masculinity 2. Masculinity focuses on the degree the society reinforces, or does not reinforce, the traditional masculine work role model of male achievement, control, and power. The higher the MAS score the more "masculine" a culture is. High Masculinity ranking indicates the country experiences a high degree of gender differentiation. In these cultures, males dominate a significant portion of the society and power structure, with females being controlled by male domination. Low Masculinity ranking indicates the country has a low level of differentiation and discrimination between genders. In these cultures, females are treated equally to males in all aspects of the society. Masculine societies, stress values such as the importance of showing off; achieving something visible, or making money. Feminine societies stress quality of life and personal relationships. 3 - Individualism 3. Individualism focuses on the degree the society reinforces individual or collective, achievement and interpersonal relationships. High Individualism ranking indicates that individuality and individual rights are very important. Individuals in these societies may tend to form a larger number of looser relationships. Low Individualism ranking typifies societies of a more collectivist nature with close ties between individuals. These cultures reinforce extended families and collectives. 4 - Power Distance 4. Power Distance focuses on the degree of equality, or inequality, between people in the country's society. The higher the PD score the more inequity between the superior and a subordinate. In organizations, Power Distance is related to the degree of centralization of authority and autocratic leadership. High Power Distance ranking indicates that inequalities of power and wealth have been allowed to grow within the society. These societies are more likely to follow a caste system that does not Low Power Distance ranking indicates the society de-emphasizes the differences between citizen's power and wealth. In these societies equality and opportunity for everyone is stressed. 5 – Long term Orientation 5. Long-Term Orientation (LTO) focuses on the degree the society embraces, or does not embrace, long-term devotion to traditional, forward thinking values. High Long-Term Orientation ranking indicates the country prescribes to the values of long-term commitments and respect for tradition. This is thought to support a strong work ethic where long-term rewards are expected as a result of today's hard work. However, business may take longer to develop in this society, particularly for an "outsider". Low Long-Term Orientation ranking indicates the country does not reinforce the concept of long-term, traditional orientation. In this culture, change can occur more rapidly as long-term traditions and commitments do not become impediments to change. Taiwan Argentina U.S. What Dimension does this illustrate? Thousands of Chinese school children stand at attention during a ceremony to celebrate China Children's Day, at Beijing's Tiananmen Square Friday on May 31, 2002. The event took place a day earlier actual International Children's Day, which falls on June 1. Taiwan The Hofstede analysis for Taiwan is almost identical to the model for China. Long-term Orientation is the highest-ranking factor. As with other Asian countries, relationships are a primary part of the culture. Individualism is the lowest ranking. Like the Chinese, the Taiwanese are a collectivist society. What Dimension does this illustrate? Country? The Hofstede analysis for the United United States States is very similar to other World Countries that have their heritage founded in Europe with strong ties to the British Isles (see Great Britain, Canada, Australia, and New Zealand). Individualism ranks highest and is a significant factor in the life of U.S. Americans. The low ranking of Long- term Orientation reflects a freedom in the culture from long-term traditional commitments, which allows greater flexibility and the freedom to react quickly to new opportunities. http://www.cyborlink.com/besite/ hofstede.htm Implications of Hofstede‟s Study • Countries vary as should management practices Weaknesses of Hofstede‟s Study • Assumes one to one correspondence between culture and nation-state, while countries have more than one culture • Researchers were either Europeans or Americans • Limited to single industry • Cultures are dynamic • Understanding of Culture (values) helps determine international orientation or approach (Ch. 1, pp. 19-22) – Domestic Market Extension – Multidomestic Market – Global Marketing • Understanding culture (values) helps determine whether to target – All consumers within the borders of a country as a single market or – global market segments, all consumers with the same needs and wants in groups of country markets Hofstede Dimensions • Power Distance focuses on the degree of equality, or inequality, between people in the country's society. A High Power Distance ranking indicates that inequalities of power and wealth have been allowed to grow within the society. These societies are more likely to follow a caste system that does not allow significant upward mobility of its citizens. A Low Power Distance ranking indicates the society de-emphasizes the differences between citizen's power and wealth. In these societies equality and opportunity for everyone is stressed. • Individualism focuses on the degree the society reinforces individual or collective, achievement and interpersonal relationships. A High Individualism ranking indicates that individuality and individual rights are paramount within the society. Individuals in these societies may tend to form a larger number of looser relationships. A Low Individualism ranking typifies societies of a more collectivist nature with close ties between individuals. These cultures reinforce extended families and collectives where everyone takes responsibility for fellow members of their group. • Masculinity focuses on the degree the society reinforces, or does not reinforce, the traditional masculine work role model of male achievement, control, and power. A High Masculinity ranking indicates the country experiences a high degree of gender differentiation. In these cultures, males dominate a significant portion of the society and power structure, with females being controlled by male domination. A Low Masculinity ranking indicates the country has a low level of differentiation and discrimination between genders. In these cultures, females are treated equally to males in all aspects of the society. • Uncertainty Avoidance focuses on the degree the society reinforces, or does not reinforce, uncertainty and ambiguity within the society. A High Uncertainty Avoidance ranking indicates the country has a high level of uncertainty and ambiguity. This is reflected in a high concern for rules, regulations, controls, and issues with career security. A Low Uncertainty Avoidance ranking indicates the country has a low level of ambiguity and uncertainty. This is reflected in a society that more readily accepts change and takes more and greater risks. Culture & Negotiations • In achievement-oriented cultures (e.g. Japan) – make sure you or someone in your negotiation team has enough technical knowledge and experience to convince the other party that your proposal will work. Culture & Negotiations • In status-oriented cultures – Make sure that your negotiation team has enough older or senior members with extensive experience and titles. – Respect the line of hierarchy in the other negotiation team. Bypassing a superior is unacceptable in many cultures. – Use titles and symbols to indicate your status in society. For this reason, the Japanese always exchange business cards before the conversation begin. In situations where business cards are exchanged, the card should be studied respectfully, not stuffed in a pocket, written on, or otherwise disregarded. – Be formal. This includes dressing conservatively, using titles instead of first names, refraining from joking or social chatting, and, whenever possible, negotiating in person Culture & Negotiations • In future-oriented cultures – Avoid appearing impatient. Future-oriented cultures such as Japan, Hong Kong, Taiwan, and South Korea, have a long-term outlooks that value perseverance. – Spend more time on interpersonal relationships during your negotiation. As we mentioned previously, for Brazilians the process itself, as opposed to the end result, is the most import aspect of negotiations. Rapport-building and trust are extremely important; it is important not to be perceived as cold or unfriendly. – Future-oriented societies place the maintenance of personal relationships before costs, winning, and saving face. To that end, reciprocation of greetings, gifts, and personal favors are extremely important in future-oriented cultures. Culture & Negotiations • In uncertainty-avoidance (UA) cultures (Israel, Austria, and Columbia – Individuals from cultures with strong uncertainty-avoidance tendencies often feel threatened by unknown or ambiguous situations. It is important to be fully prepared and have all details at hand when negotiating with businesses from uncertainty-avoidance cultures. – Uncertainty-avoidance cultures place a strong emphasis on rules, regulations, and punctuality. Tardiness is a sign of rudeness; appointments must be kept strictly and interruptions and delays avoided. – Formality is also important in high uncertainty-avoidance countries. As with status-oriented cultures, it is important to remain formal – Individuals from high uncertainty-avoidance cultures have a reputation for being hard bargainers. They like to open with extreme demands and make few and small concessions. Haggling is common, expected, and essential. British Stereotypes The True Brit Get Around in ENGLISH – How to be Polite What to Say Before You Eat Enjoy Your Meal!