Topic 1: Social and Cultural Considerations in International Marketing Flashcards
How does “Terpstra” define culture?
Culture is the “integrated sum total of learned behavioral traits that are manifested and shared by members of a society.
What are Hall’s two types of cultures?
“High Context Culture” and “Low Context Culture”
What are some characteristics of a “low context culture”?
Clear written communication, usually no room for interpretations.
What are some characteristics of a “high context culture”?
Implicit, indirect, high use of body language and symbols.
Where are some places in the world that are known for having a low context culture? High Context?
Low- Northern Europe, High- Japan
What are the eight elements of culture that are important for firms to look in to?
Technology, Language, Aesthetics, Education, Religion, social organization, and law/politics.
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?
They would want to rely on VISUAL advertising, instead of advertising with the written word.
What are Hofstede’s 5 cultural dimensions?
1) Power Distance, 2) Individualism, 3) Masculinity v. Femininity, 4) Uncertainty Avoidance, and 5) Long-Term orientation
What does “Power Distance” mean?
It is the degree of inequality among people.
What do “masculine” cultures tend to value?
Achievement, heroism, assertiveness, material reward for success, competitiveness.
Which countries tend to be more masculine?
USA, Germany, Japan
What do “feminine” cultures tend to value?
cooperation, modesty, caring for the weak, quality of life, consensus-oriented.
Which countries tend to be more feminine?
Holland, Scandinavian, most Asian and Latin countries.
What is “Uncertainty Avoidance”?
The way that a society deals with unknown situations/change.
What do “uncertainty avoiding” societies rely on?
strict laws and rules, safety and security measures, and a belief in absolute truth, they also tend to be more emotional and nervous.
What are some examples of “uncertainty avoiding” countries?
German-Speaking countries, Japan, and Latin-Countries.
Describe how countries of lower uncertainty avoidance react to uncertainty.
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
What are some examples of countries that have a lower uncertainty avoidance?
USA (Some regions), Scandinavian countries, Chinese speaking countries
How do “Long Term” oriented societies think about the future?
They value perseverance, are more forward looking, and they search for virtue, encourage saving for the future.
What are some common countries that are more Long-Term oriented?
East-Asian countries, especially China, and southern European countries.
How do Short Term oriented societies think about the future?
They value tradition, social obligations, and “protecting face”.
What are some examples of short-term oriented societies?
USA
What are the 5 MACRO-economic cultural factors that firms should consider when entering a foreign market?
1) Cultural Variability 2) Cultural Complexity 3) Cultural Hostility 4) Cultural Homogeneity and 5) Cultural Interdependence
What is “Cultural Variability”?
How much a culture can change over time.
What is an example of a region with low cultural variability?
Buddhist cultures
What is an example of a region with high cultural variability?
South Africa
What is “Cultural Complexity”?
How complex a culture is (high v low context cultures)
What is “Cultural Hostility”?
How open cultures are to adopting products and services.
What is an example of a discouraged foreign product?
Goods from China, because of labor issues
What is an example of a promoted foreign product?
Wine from Italy
What is “Cultural Homogeneity”?
How homogeneous a culture is. Countries that are more homogeneous are easier to market towards.
What is “Cultural Interdependence”?
How easily a culture is influenced by outside factors. Some cultures are extra resistant.
What is an example of a culture that is resistant to outside factors?
Amish cultures
What are the steps that should be taken when analyzing consumer behavior in foreign markets on a MICRO ECONOMIC level?
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
True or False: When entering a foreign market, companies tend to enter markets that have a lower “sociocultural distance gap”?
TRUE. It is less expensive to enter markets that are similar to your home base.
