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What is Culture

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What is Culture Powered By Docstoc
					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.
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