2. Culture

Deep cultural under-currents structure life in subtle but highly  consistentt ways that consisten t hat are not  consciously consciou sly formulated. Like the invisible jet streams in the skies that  determine the course of a storm, these currents shape our lives; yet  their influence is only beginning to be identified . Edward T. Hall Intl. 3:1

WHAT IS CULTURE?

Culture is a learned, shared, compelling, interrelated set of symbols whose meanings provide a set of orientations for members of a society. These orientations, taken together, provide solutions to problems that all societies must solve if they are to remain viable.  – Terpstra and David (1985)

Culture is the collective mental programming of individuals in a society as a result of  common background, education, and life experiences.  – Hofstede (1980)

Culture is the man-made part of the environment.  – Herkovits (1948) Intl. 3:2

IMPACT OF CULTURE ON MARKETING DECISIONS Customer  Culture

 Lifestyle

 Behavior Patterns

 Actions in Marketplace

 Impact on Firm’s Marketing Decisions Intl. 3:3

ELEMENTS OF CULTURE • Material Culture:  –  Technology & Economics

• Social Organization:  –  Institutions  –  Education  –  Politics

• Belief Systems • Language • Aesthetics Intl. 3:4

FUNCTIONS OF CULTURE

• Acquisition of food, clothing, and shelter. • Protection from human enemies and natural disasters • Regulation of sexuality. • Child raising and instruction in socially approved and useful behavior. • Division of labor among humans. • Sharing and exchanging the product of human work. Intl. 3:5

FUNCTIONS OF CULTURE (Contd .) • Providing social controls against deviant behavior. • Providing incentives to motivate persons to want  to do what they have to do. • Distributing power and legitimizing the wielding of power to allow setting of priorities, making decisions, and coordinating actions that obtain social goals. • Providing a sense of priorities (values) and an overall sense of worth (religion) to social life.

Intl. 3:6

MAJOR CULTURAL FRAMEWORKS • Kluckhohn and Strodtbeck (1961) • Hall and Hall (1990) • Hofstede (1980) • Trompenaars (1993)

Intl. 3:7

KLUCKHOHN AND STRODTBECK (1961) • Nature of People: Good, Bad, or a Combination. • Relationship Between People: Individualism or Groupism. • Primary Mode of Activity: Being or Doing? • Conception of Space: Private or Public? • Dominant Temporal Orientation: Past, Present, or Future? Intl. 3:8

HALL AND HALL (1990) • Context, or the amount of explicit information in communication. • Space, or the ways of communicating through specific handling of personal space. • Time, which is either monochronic (scheduling and completing one activity at a time) or  polychronic (not distinguishing between the activities and completing them simultaneously). • Information flow, which is the structure and speed of messages between individuals and organizations. Intl. 3:9

HIGH AND LOW CONTEXT CULTURES FACTOR Lawyers Person’s Word

HIGH Less Important Is his/her bond

More Get it in writing

Resp. for Error

Highest Level

Pushed to lowest level

Space

Breathe on each other. Polychronic

Bubble of private space. Monochronic and linear. Proceed quickly. Common U.S., N. Europe

Time

Negotiations Lengthy Competitive Bid Infrequent Examples Japan, Mid-East

LOW

Intl. 3:10

HALL’S SILENT LANGUAGES • Language of Time • Language of Space • Language of Things • Language of Friendship • Language of Agreements

Intl. 3:11

CONTEXTUAL BACKGROUND OF VARIOUS COUNTRIES

High Context

Japanese

IMPLICIT

 Arabian

Latin American Spanish Italian English (UK) French North America (US) Scandinavian German Low Context

Swiss

EXPLICIT Intl. 3:12

HIGH/LOW CONTEXT CULTURES High-Context Crucial to Communications: external environment, situation, nonverbal behavior Relationships: long lasting, deep personal mutual involvement Communication: economical, fast because of shared "code" Authority person: responsible for actions of subordinates, loyalty at a premium Agreements:

Low-Context explicit information, blunt communicative style short duration, heterogeneous populations explicit messages, low reliance on non verbal diffused through bureaucratic system, personal responsibility tough to pin down

spoken, flexible and changeable

written, final and binding, litigious, more lawyers

Insiders vs. outsiders: very distinguishable

difficult to identify, foreigners can adjust

Cultural pattern change: slow

faster

Intl. 3:13

CONTRASTING COMMUNICATION STYLES Traditional Asian High Context Cultures

Australian Low Context Culture

• Indirect

• Direct

• Implicit, Nonverbal

• Explicit, verbal

• Formal

• Informal

• Goal Oriented

• Spontaneous

• Emotionally controlled

• Emotionally expressive

• Self-effacing, modest

• Self-promoting, egocentric Intl. 3:14

HOFSTEDE'S DIMENSIONS OF CULTURE • Individualism/Collectivism: Individualism implies a loosely knit social framework in which people are supposed to take care of themselves and their  immediate families only whereas collectivism is characterized by a tight social framework in which people distinguish between in-groups and outgroups; they expect their in-group (relatives, clans, organizations) to look after them, and in return they owe absolute loyalty to the in-group.

Intl. 3:15

INDIVIDUALISM/COLLECTIVISM COLLECTIVIST People born into extended families or other in-groups which continue to protect them in exchange for loyalty. High-context communication. Employer-employee relationship  perceived in moral terms, like a family link. Management is management of  groups. Relationship prevails over task.

INDIVIDUALIST Everyone grows up to look after  him/herself and his/her  nuclear family. Low-context communication. Relationship between employeremployee perceived as contract based on mutual advantage. Management of individuals. Task prevails over relationship. Intl. 3:16

HOFSTEDE'S DIMENSIONS OF CULTURE • Power Distance: is the extent to which a society accepts the fact that power in institutions and organizations is distributed unequally. It is reflected in the values of the less powerful members of a society as well as those of the more powerful members.

Intl. 3:17

EXAMPLE OF SMALL PDI  Stockholm, December 23, 1988. The Swedish King Carl  Gustav this week experienced considerable delay while  shopping for Christmas presents for his children, when he wanted to pay by cheque but could not show his cheque card. The salesperson refused to accept the cheque without legitimation. Only when helpful  bystanders dug in their pockets for one-crown pieces  showing the face of the king, the salesperson decided to accept this legitimation, not however, without testing the check for authenticity and noting the name and address of the holder. Intl. 3:18

POWER DISTANCE Small PDI

Large PDI

Inequalities among people should  be minimized.

Inequalities both expected and desired.

Parents treat children as equals, and vice versa.

Parents teach children obedience.

Decentralization is popular.

Centralization is popular.

Ideal boss: resourceful democrat.

Ideal boss: benevolent autocrat or  good father.

Privileges and status symbols are frowned upon.

Privileges and status symbols are  both expected and popular.

Intl. 3:19

HOFSTEDE'S DIMENSIONS OF CULTURE • Uncertainty Avoidance: indicates the extent to which a society feels threatened by uncertain and ambiguous situations and tries to avoid these situations by providing greater  career stability, establishing formal rules, not tolerating deviant ideas and behaviors, and believing in absolute truths and the attainment of expertise. Strong uncertainty avoidance societies tend to be characterized by a higher level of anxiety and aggressiveness.

Intl. 3:20

UNCERTAINTY AVOIDANCE Weak UAI Uncertainty considered normal feature and each day is accepted as it comes. Low stress and anxiety. Comfortable in ambiguous situations and with unfamiliar risks. What is different, is curious.  No more rules than is strictly necessary. Precision and punctuality have to be learned. Tolerance of deviant and innovative ideas.

Strong UAI Uncertainty in life felt as a continuous threat to be fought. High stress and anxiety. Fear of ambiguous situations and unfamiliar risks. What is different, is dangerous. Emotional need for rules, even if  unworkable. Precision and punctuality come naturally. Suppression of deviant ideas and resistance to innovation. Intl. 3:21

HOFSTEDE'S DIMENSIONS OF CULTURE • Masculinity/Femininity: In a masculine society, the dominant values are assertiveness, the acquisition of money and things, and not caring for others. In a feminine society, the values of quality of life, caring for the underdog, and nurturing take precedence over purely materialistic pursuits.

Intl. 3:22

MASCULINITY/FEMININITY Feminine Caring for others and preservation as dominant values. Both men and women allowed to be tender and concerned with relationships.

Masculine Material success and progress as dominant values. Men supposed to be assertive, ambitious, and tough.

Sympathy for the weak.

Sympathy for the strong.

Managers use intuition and strive for  consensus.

Managers expected to be decisive and aggressive.

Stress on equality, solidarity, and quality of life. Conflicts resolved by compromise and negotiation.

Stress on equity, competition among colleagues, and  performance. Conflicts resolved by fighting them out. Intl. 3:23

LONG VS. SHORT-TERM ORIENTATION Short-Term Respect for traditions, social and status obligations regardless of  costs. Social pressure to "keep up with the Joneses" even if overspending. Little money for investment. Quick results expected. Concern with possessing the truth.

Long-Term Adaptation of traditions to a modern context. Respect for social and status obligations within limits. Thrift, being sparing with resources. Large savings, funds available for  investment. Perseverance towards slow results. Concern with respecting the demands of virtue. Intl. 3:24

Masculinity/Femininity and Uncertainty Avoidance 0

yt ni at

e c n a di o v A

e d nI

x

Weak Uncertainty Avoidance Feminine

Weak Uncertainty Avoidance Masculine

3

2 1

4 5

7

r

e c n U

6

Strong Uncertainty 112 Avoidance Feminine 10

8

9

Strong Uncertainty 10

Example Countries*: 1. Norway 2. Malaysia 3. Jamaica 4. U.S.A. 5. Taiwan 6. Costa Rica 7. Australia 8. Mexico 9. Japan 10. Greece *For complete list, see text Source: Geert Hofstede, Cultures and  Organizations,

Avoidance Masculine

Masculinity Index

100 Intl. 3:25

Power Distance and Individualism-Collectivism 0

d nI si l a u di vi d nI

Small Power  Distance Collectivist

Large Power  Distance Collectivist

1

2

x e

3

m

4

Small Power  Distance 112 Individualist 10

6

5

Large Power  Distance Individualist 110

Power Distance Index

Example Countries*: 1. Costa Rica 2. Korea and Mexico 3. Brazil & India 4. Israel and Ireland 5. Australia and U.S.A. 6. France and Italy *For complete list, see text. Source: Geert Hofstede, Cultures and  Organizations, McGraw-Hill: London: 1991, pp. 23, 51, 83 & 111. Intl. 3:26

FONS TROMPENAAR’S VALUE ORIENTATIONS • Universalism vs. Particularism: one rule for all occasions or flexibility and adjustment to circumstances. • Communitarianism vs. Individualism • Neutral vs. Emotional: are emotions acceptable in business? Encourage vs. avoid open display of feelings. • Specific vs. Diffuse: can relationships be strictly “businessspecific?” • Achievement vs. Ascription: achieved status is based on achievement and track-record whereas ascriptive status based on hierarchy, age, etc.

Intl. 3:27

MANIFESTATIONS OF CULTURE AT DIFFERENT LEVELS OF DEPTH

Practices

Values Rituals Heroes Symbols Intl. 3:28

MANIFESTATIONS OF CULTURE

• Symbols: Words, gestures, pictures, or objects that carry a particular meaning which is only recognized by those who share that culture. New symbols are easily developed and old ones disappear.

Intl. 3:29

• Heroes are persons alive or dead, real or imaginary, who possess characteristics which are highly prized in a culture, and who thus serve as models of behavior.

Intl. 3:30

• Rituals are collective activities, which within a culture are considered as socially essential. Examples are ways of greeting and paying respect to others, social and religious ceremonies, etc. • Symbols, heroes, and rituals can be subsumed under "practices," they are visible to an outsider but their cultural meaning is invisible.

Intl. 3:31

VALUES The core of culture is formed by values, i.e., broad tendencies to prefer certain state of  affairs over others. Values are among the first things children implicitly learn. By age ten, most children have their value system firmly in place. Because values are acquired so early in our life, most of us remain unconscious of their existence.

Intl. 3:32

CULTURAL VARIABLES AND MARKETING

Cultural Variable

Product Promotion

Price

Distribution Research

Material Culture Language Education Aesthetics Values/Attitudes Social Organization Political/Legal

Intl. 3:33

LIFE GOALS France

7.1

Japan

35.4

US  UK 

16.4

62.2 5.8

41.2

6.2  5.1

77.3

11.2  13.9

63.4

Germany  9.0  17.8 

 Switzerland 3.7   Sweden

21.7  7.7 

9.5   1.8  8.6 

33.3 9.6  16.7 

2.9

60.6 

5.5  7.5 

72.3

10.9 3.4

76.0 

22.3

 Philippines

6.8 10.8  

84.8 

6.7  5.1

India

Brazil 

9.2 

2.5 1.7 

 Australia

10.9 3.4

16.2  46.2  63.2 

 Source:Prime  Minister’s Office, “How Youth See  Life,”Focus Japan,  Dec. 1978.

7.5  3.4 10.5  26.3

1.6  1.8 

22.0 

0.5 

11.9

0.5 

No Answer 

Work on behalf of Society  To get  Live As I Choose Rich Intl. 3:34  Acquire Social Position