Topic 1: Social and Cultural Considerations in International Marketing

Question 1

How does “Terpstra” define culture?

Answer 1

Culture is the “integrated sum total of learned behavioral traits that are manifested and shared by members of a society.

Question 2

What are Hall’s two types of cultures?

Answer 2

“High Context Culture” and “Low Context Culture”

Question 3

What are some characteristics of a “low context culture”?

Answer 3

Clear written communication, usually no room for interpretations.

Question 4

What are some characteristics of a “high context culture”?

Answer 4

Implicit, indirect, high use of body language and symbols.

Question 5

Where are some places in the world that are known for having a low context culture? High Context?

Answer 5

Low- Northern Europe, High- Japan

Question 6

What are the eight elements of culture that are important for firms to look in to?

Answer 6

Technology, Language, Aesthetics, Education, Religion, social organization, and law/politics.

Question 7

If a company is looking at advertising their product in a low-literacy and low-educated area, how might they want to market their product in terms of advertising?

Answer 7

They would want to rely on VISUAL advertising, instead of advertising with the written word.

Question 8

What are Hofstede’s 5 cultural dimensions?

Answer 8

1) Power Distance, 2) Individualism, 3) Masculinity v. Femininity, 4) Uncertainty Avoidance, and 5) Long-Term orientation

Question 9

What does “Power Distance” mean?

Answer 9

It is the degree of inequality among people.

Question 10

What do “masculine” cultures tend to value?

Answer 10

Achievement, heroism, assertiveness, material reward for success, competitiveness.

Question 11

Which countries tend to be more masculine?

Answer 11

USA, Germany, Japan

Question 12

What do “feminine” cultures tend to value?

Answer 12

cooperation, modesty, caring for the weak, quality of life, consensus-oriented.

Question 13

Which countries tend to be more feminine?

Answer 13

Holland, Scandinavian, most Asian and Latin countries.

Question 14

What is “Uncertainty Avoidance”?

Answer 14

The way that a society deals with unknown situations/change.

Question 15

What do “uncertainty avoiding” societies rely on?

Answer 15

strict laws and rules, safety and security measures, and a belief in absolute truth, they also tend to be more emotional and nervous.

Question 16

What are some examples of “uncertainty avoiding” countries?

Answer 16

German-Speaking countries, Japan, and Latin-Countries.

Question 17

Describe how countries of lower uncertainty avoidance react to uncertainty.

Answer 17

They are more tolerant of opinions different from what they are used to; they try to have as few rules as possible, and… are relativist and allow many currents to flow side by side

Question 18

What are some examples of countries that have a lower uncertainty avoidance?

Answer 18

USA (Some regions), Scandinavian countries, Chinese speaking countries

Question 19

How do “Long Term” oriented societies think about the future?

Answer 19

They value perseverance, are more forward looking, and they search for virtue, encourage saving for the future.

Question 20

What are some common countries that are more Long-Term oriented?

Answer 20

East-Asian countries, especially China, and southern European countries.

Question 21

How do Short Term oriented societies think about the future?

Answer 21

They value tradition, social obligations, and “protecting face”.

Question 22

What are some examples of short-term oriented societies?

Answer 22

USA

Question 23

What are the 5 MACRO-economic cultural factors that firms should consider when entering a foreign market?

Answer 23

1) Cultural Variability 2) Cultural Complexity 3) Cultural Hostility 4) Cultural Homogeneity and 5) Cultural Interdependence

Question 24

What is “Cultural Variability”?

Answer 24

How much a culture can change over time.

Question 25

What is an example of a region with low cultural variability?

Answer 25

Buddhist cultures

Question 26

What is an example of a region with high cultural variability?

Answer 26

South Africa

Question 27

What is “Cultural Complexity”?

Answer 27

How complex a culture is (high v low context cultures)

Question 28

What is “Cultural Hostility”?

Answer 28

How open cultures are to adopting products and services.

Question 29

What is an example of a discouraged foreign product?

Answer 29

Goods from China, because of labor issues

Question 30

What is an example of a promoted foreign product?

Answer 30

Wine from Italy

Question 31

What is “Cultural Homogeneity”?

Answer 31

How homogeneous a culture is. Countries that are more homogeneous are easier to market towards.

Question 32

What is “Cultural Interdependence”?

Answer 32

How easily a culture is influenced by outside factors. Some cultures are extra resistant.

Question 33

What is an example of a culture that is resistant to outside factors?

Answer 33

Amish cultures

Question 34

What are the steps that should be taken when analyzing consumer behavior in foreign markets on a MICRO ECONOMIC level?

Answer 34

1) determine relevant motivations in the culture 2) determine characteristic behavior patterns, 3) determine what broad cultural
values are relevant to this product, 4)determine characteristic forms of decision making, 5) evaluate promotion
methods appropriate to the culture, and 6) determine appropriate institutions for this product in the minds of
consumers

Question 35

True or False: When entering a foreign market, companies tend to enter markets that have a lower “sociocultural distance gap”?

Answer 35

TRUE. It is less expensive to enter markets that are similar to your home base.