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CHAPTER 4

SOCIAL AND CULTURAL ENVIRONMENTS

SUMMARY

Culture, a societys programming of the mind, has both a pervasive and changinginfluence on each national market environment. Global marketers must recognize the

influence of culture and be prepared to either respond to it or change it. Human behavior

is a function of a persons own uniue personality and that persons interaction with thecollective forces of the particular society and culture in which he or she has lived. !n

particular, attitudes, values, and beliefscan vary significantly from country to country.

"lso, differences pertaining to religion,aesteti!s, dietary customs, and language andcommunication can affect local reaction to brands or products as well as the ability of

company personnel to function effectively in different cultures. " number of concepts

and theoretical frameworks provide insights into these and other cultural issues.

#ultures can be classified as i"#or l$%#!$&te't$ communication and negotiation styles

can differ from country to country. Hofstedes social value typology sheds light onnational cultures in terms of ($%er dista&!e) i&dividualis*vs. !$lle!tivis*)

*as!uli&it+vs, fe*i&i&it+, u&!ertai&t+ av$ida&!e, and l$&"#versus s$rt#ter*$rie&tati$&, %y understanding the self#refere&!e !riteri$&) global marketers canovercome the unconscious tendency for perceptual blockage and distortion.

&ogers classic study on the diffusi$& $f i&&$vati$&shelps e'plain how products are

adopted over time by different ad$(ter !ate"$ries. (he ad$(ti$& (r$!ess that consumergo through can be divided into multi)stage ierar!+ $f effe!ts, &ogers findings

concerning the !ara!teristi!s $f i&&$vati$&s can also help marketers successfullylaunch new products in global markets. &ecent research has suggested that "sian adoptercategories differ from the *estern model. "n awareness of e&vir$&*e&tal se&sitivit+can help marketers determine whether consumer and industry products must be adapted

to the needs of different markets.

OVERVIE-

(he *alt +isney #ompany, home to ickey ouse, +onald +uck, and other iconiccharacters, has a stellar reputation in many parts of the world for its family)friendly

entertainment offerings. However, despite high worldwide awareness levels of the

+isney brand, as of -/, only -0 percent of the companys revenues came from outsidethe 1nited 2tates. 3ow, as the company targets #hina, !ndia, 2outh 4orea, and other

emerging markets, it is departing from its one size fits all approach.

(he changes underway at the *alt +isney #ompany illustrate how differences in the

social and cultural environments impact marketing opportunities and dynamics around

the globe.

5 -66 7earson 8ducation, !nc. publishing as 7rentice Hall

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(his chapter focuses on the social and cultural forces that shape and affect individual,

group, and corporate behavior in the marketplace. *e start with a "e&eral dis!ussi$& $f

te basi! as(e!ts $f !ulture a&d s$!iet+ a&d te e*er"e&!e $f a t%e&t+#first !e&tur+

"l$bal !$&su*er !ulture, Ne't) several useful !$&!e(tual fra*e%$r.s f$r

u&dersta&di&" !ulture are (rese&ted,

(hese include Hall/s i"# a&d l$%#!$&te't !ulture !$&!e(t) Masl$%/s ierar!+)

H$fstede/s !ultural t+($l$"+) te self#refere&!e !riteri$&) a&d diffusi$& te$r+, (he

chapter includes specific e'amples of the impact of culture and society on the marketingof both consumer and industrial products.

ANNOTATED LECTURE0OUTLINE

SOCIETY) CULTURE) AND 1LO2AL CONSUMER CULTURE

-at are te t%$ tas.s $f te "l$bal *ar.eter3

%oth differences and similarities characterize the worlds cultures, meaning that the tasks

of the global marketer is twofold. :irst, marketers must study and understand the countrycultures in which they will be doing business. 2econd, this understanding must be

incorporated into the marketing planning process. !n some instances, strategies and

marketing programs will have to be adapted$ however, marketers should also takeadvantage of shared cultural characteristics and avoid unneeded and costly adaptations of

the marketing mi'.

arketers should be secure in their own convictions and traditions, generosity is reuiredto appreciate the integrity and value of other ways of life and points of view. "lthough

cultural shock is a normal human reaction to the new and unknown, successful globalmarketers strive to comprehend human e'periences from the local point of view.

Defi&e !ulture5

Culturecan be defined as ways of living, built up by a group of human beings that aretransmitted from one generation to another.

" culture acts out its ways of living in the conte't ofsocial institutions, including family,

educational, religious, governmental, and business institutions.

#ulture includes !$&s!i$usand u&!$&s!i$us values) ideas) attitudes)and s+*b$lsthatshape human behavior and that are transmitted from one generation to the ne't.

I&t$ %at t%$ *ai& !ate"$ries !a& !ulture be divided3

#ulture can be divided into two broad categories;

-at is 6*aterial/ !ulture3


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-at is 6&$&*aterial/ !ulture3

a< Material !ulture; thephysical componentorphysical cultureand includesphysical ob=ects and artifacts created by humans such as clothing and tools.

b< N$&*aterial !ulture; thesubjectiveor abstractcultureand includes intangibles

such as religion, perceptions, attitudes, beliefs, and values.

-at is a 6!ultural u&iversal/3

Cultural u&iversals5are those elements of culture evident in all societies. (heseuniversals include;

athletic sports,

body adornment,

cooking,

courtship,

dancing,

decorative art,

education,

ethics,

etiuette,

family feasting,

food taboos,

language,

marriage,

mealtime,

medicine,

mourning,

music,

property rights,

religious rituals,

residence rules,

status differentiation, and

trade.

Global marketers should view sociocultural phenomenon of the -6stcentury against a

background of traditional definitions.

!t has been argued that !$&su*(ti$&has become the hallmark of postmodern society$

cultural information and imagery flow freely across borders via satellite (> and the

!nternet.

3ew global consumer cultures are emerging$ these persons share meaningful sets of

consumption)related symbols. (his culture stems from the wired world in which there is


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an increasing interconnectedness of local cultures$ it can be e'ploited by global consumer

culture positioning @G##7

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b< !n the aftermath of the 2eptember -6 terror attacks in 3ew Bork and

*ashington, +.#. and the subseuent "merican military actions in the iddle

8ast, some uslims have tapped into anti)"merican sentiment by urging aboycott of "merican brands.

&eligious issues have also been at the heart of a dispute about whether references to Godand #hristianity should be included in a new 8uropean constitution that will be adopted

now that the 8uropean 1nion has e'panded its membership from fifteen to -9 countries.

Aesteti!s

*ithin every culture, there is an overall sense of what is beautiful and what is notbeautiful, what represents good taste as opposed to tastelessness or even obscenity, and

so on. 2uch considerations are matters of aesteti!s,

Global marketers need to understand the importance of visual aestheticsembodied in thecolor or shape of product, label, or package.

Cikewise, different parts of the world perceive aesthetic styles various degrees of

comple'ity, for e'ample D differently. !n some cases a standardized color can be used

such as the distinctive yellow on #aterpillars euipment.

" number of companies seem to be e'periencing a case of the blues, as evidenced by

names such as %luetooth, %lue oon, and Eet%lue "irways$ likewise, 2kyy vodka is

packaged in a distinctive blue bottle.

%ecause color preferences vary among cultures, such perceptions should be considered in

product packaging and communications especially in highly competitive markets.

(here is nothing inherently good or bad about a color$ red is popular in most

countries despite being the color of blood. !t represents winemaking and conveys themeaning emotional.

2ensitivity and willingness to accommodate such perceptions helps generated goodwill;

!n some "frican countries, red is poorly received, and white connotes death in parts of"sia.

usic is an aesthetic component of all cultures, accepted as a form of artistic e'pressionand source of entertainment. !n one sense represents a transculture not identified with

any particular nation$ rhythm is a universal aspect of music.

However, music is also characterized by stylistic variation with regional or country

associations @e.g., reggae with Eamaica

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%ecause music plays an important role in advertising, marketers must understand what

style is appropriate in a given national market. "lthough background music can be used

effectively in broadcast commercials, the type of music appropriate for a commercial inone part of the world may not be acceptable or effective in another part.

Dietar+ Prefere&!es

#ultural influences are also uite apparent in food preparation and consumption patternsand habits.

8'amples;

a< +ominos 7izza pulled out of !taly because !talians perceived its product to be

too "merican. !n particular, the tomato sauce was too bold and the toppings

were too heavy.

b< (o successfully launch the 2ubway chain in !ndia, it was necessary to educateconsumers about the benefits of the companys sandwiches. *hyF %ecause

!ndians do not normally consume bread.

(hese e'amples underscore the fact that a solid understanding of food)related culturalpreferences is important for any company that markets food or beverages products

globally.

#ompanies that lack cultural sensitivity are bound to make marketing mistakes.

-+ is 6fast f$$d/ "ai&i&" i& a!!e(ta&!e ar$u&d te %$rld3

*hile some food preferences remain deeply embedded in culture, there is plenty of

evidence that global dietary preferences are converging. :or e'ample, fast food is

gaining increased acceptance around the world.

(here are several e'planations for this.

a< Heads of families in many countries are pressed for time and are disinclined toprepare home)cooked meals.

b< Boung people are e'perimenting with different foods.

c< (he global tourism boom has e'posed travelers to pizza, pasta, and other ethnicfoods.

d< 2horter lunch hours and tighter budgets are forcing workers to find a place to grab

a uick, cheap bite before returning to work.e< "s cultural differences become less relevant, such convenience products will be

purchased in any country when consumer disposable income is high enough.

However, such processes can provoke nationalist backlash.


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(o counteract the e'posure of its young citizens to le Big ac and other

"merican)style fast foods, the :rench 3ational #ouncil of #ulinary "rts designeda course of :rench cuisine and good taste for elementary school children.

La&"ua"e a&d C$**u&i!ati$&

(he diversity of cultures around the world is reflected in language.

-at are te f$ur areas $f stud+ i& verbal la&"ua"e3

Cinguists divide the study ofspokenor verballanguage into four areas;

synta' @rules of sentence formation. (o eliminate or reduce cultural myopia, Cee proposed a four)step framework.

+efine the problem or goal in terms of home country cultural traits

+efine the problem or goal in terms of host)country cultural traits. ake no value

=udgments.

!solate the 2 influence and e'amine it. &edefine the problem without the 2 influence and solve

2 teaches that a vital, critical skill of the global marketer is unbiased perception, theability to see a culture.

2 can be a negative force in global business leading to misunderstanding and failure.

" person must suspend assumptions based on prior e'perience and success and add newknowledge.

(he lesson that the 2 teaches is that a vital, critical skill of the global marketer isunbiased perception, the ability to understand a culture.

DI::USION THEORY

-at is diffusi$& te$r+3

2ociologist 8verett &ogers distilled his research into three concepts that are e'tremely

useful to global marketers; the adoption process, characteristics of innovations, andadopter categories.

"n innovation is something new. However, a product already introduced in one marketmay be an innovation elsewhere because it is new and different for the targeted market.

anagers find themselves marketing products that may be, simultaneously, innovationsin some markets and mature or declining products in other markets.

-at are te sta"es $f te ad$(ti$& (r$!ess3

Defi&e ea! $f te sta"es,

Te Ad$(ti$& Pr$!ess

(he ad$(ti$& (r$!ess ) the mental stages from the first knowledge of an innovation to

product adoption or purchase;

"#areness$ (he customer becomes aware for the first time of the product or

innovation. Global marketers create awareness through general e'posure to

advertising messages.

%nterest$(he customer is interested enough to learn more. (he customer will

engage in research and seek information.

&valuation. (he individual mentally assesses the productIs benefits and decides

whether or not to try it.


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rial$ost customers will not purchase e'pensive products without a Ktrial.K

:or ine'pensive products, an initial single purchase is defined as trial.

"doption. (he individual either makes an initial purchase or continues to

purchase a product. 2ales reps and word of mouth are forces in the decision tobuy.

Cara!teristi!s $f I&&$vati$&s

:ive factors affect the rate of adoption;

'elative advantage; How a new product compares with e'isting products or

methods.

Compatibility; How consistent a product is with e'isting values and past

e'periences.

Comple(ity; How difficult the new product is to understand and use.

)ivisibility; How easy it is to try a product on a limited basis without great

e'pense.

Communicability. How well the benefits or value of a product are

communicated.

Ad$(ter Cate"$ries

Ad$(ter !ate"$riesare classifications of individuals in a market on the basis of

innovativeness. @2ee :igure )6alue 2urvey. (his survey revealed a dimension of "sian

culture called #onfucian +ynamism that helps e'plain the growth in "sian

economies. 2pecifically, virtuous behavior in "sian culture is reflected inpersistence, observing ordered relationships, thrift, and a sense of shame.

*esterners may enrich their own e'perience and further their business goals by

absorbing some of these cultural dimensions$ *esterners should also realize thatit is probably futile to try to change "sian behavior that is rooted in these

dimensions.

. 8'plain the self)reference criterion. Go to the library and find e'amples of product

failures that might have been avoided through the application of the 2.


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on early adopters, who make up 6.0 percent of the potential market. (hey e'ert a

great deal of influence on the mass market for a product, which &ogers calls the

early and late ma=ority.

/. #ompare and contrast the 1nited 2tates and Eapan in terms of traditions and

organizational behavior and norms.

2ince Eapan is a high)conte't, homogeneous culture, while the 1.2. is a low)

conte't, heterogeneous culture, Eapan has faster diffusion rates than the 1.2."doption would proceed more uickly in Eapan where innovation was introduced

late, allowing time to assess the relative advantages, compatibility, and other

product attributes. Eapan has a long)term perspective as opposed to the short)term

perspective in the 1nited 2tates. (he Eapanese adopter categories differ fromthose for 1.2 consumers. (here are fewer Eapanese innovators since risk

avoidance is high$ however, when Eapanese consumers become aware that others

tried the product, they uickly follow suit.

Eapan ranks high on collectivism. 8veryone wants to use the same products as

others. (his is particularly true with name brands. (he Eapanese want knownlabels with high brand image because risk avoidance is high. %uying name brands

avoids the risk of a poor uality product. "mericans are more individualistic and

are willing to try new products and off)brands. "mericans are risk)takers.

CASES

Case 4#< Dis&e+ Ada(ts t$ Cultural Differe&!es< Te Assi"&*e&t

Overvie%< (he *alt +isney #ompany, home to ickey ouse, +onald +uck, and other

iconic characters, has a stellar reputation in many parts of the world for its family)friendly entertainment offerings. However, despite high worldwide awareness levels of

the +isney brand, as of -/, only -0 percent of the companys revenues came from

outside the 1nited 2tates. 3ow, as the company targets #hina, !ndia, 2outh 4orea, andother emerging markets, it is departing from its one size fits all approach.

6. *hy is it necessary for +isney to build brand awareness in #hina and other emerging

marketsF

Jne glaring fact is that as of -/, only -0 percent of the companys revenues

come from outside of the 1nited 2tates. Jbviously, the +isney #orporationknows that it is vulnerable to any economic downturns in the 1.2. economy.

"s %ill 8rnest, managing director, told theinancial imes, !f you haventgrown up with the brand, the stories, or the theme, you are not uite sure what

you are walking


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!t is important for coffee marketers to create an ethical supply chain. !f people

know that companies work in an ethical way it should attract more customers. (he

customers would e'pect that they would be treated the same fair and ethical wayas suppliers of the market. !t would be easier for these companies to e'pand

globally because new countries would be more open for business relationship

with ethically sensitive corporations.

-. " recent study by the 1.4.s !nstitute of Grocery +istribution determined that the

ma=ority of consumers do not buy fair)trade products. (he report noted, 2elf)interest isat the center of food choice for most consumers. :ew consumers consider the impact of

their purchase decisions on anyone or anything but themselves and their family. +o you

agree with this findingF

! agree. 7eople can tend to be selfish in their nature. " lot of people in the world do

not have decent incomes, thus they need to conserve money and find less e'pensive

alternatives to feed their families. 3ot many buyers think about someone else as they

purchase. :or many people when they enter a store, they think only about getting thegreatest value for their dollar. oney talks. "nother reason why people dont buy

fair)trade products is that they dont know what these products are and what theirdifference from regular products is.

. *hat recommendations would you make to help cure the ills of the coffee marketF

! agree with 7aul &ice who considers advertising of fair)trade essential for the

product to be sold. 7robably there are more people who care about the principles

of fair trade, but they simply dont know that it e'ists. (he fair)trade principleshould be advertised along with places where customers can by the product. !t is

necessary to e'plain all the importance of fair)trade products for developing

countries.

TEACHIN1 TOOLS AND E;ERCISES

Additi$&al Cases< arketing; *hos &eally inding the 2tore GloballyF Cinda #.

1eltschy,$ !rene Herremans$ Eohn 4. &yans Er.HB+ %H6A.

#olgate a' :resh; Global %rand &oll)Jut, Eohn ". Muelch, Eacuie Cabatt)&andle,HB+ 0?A.

A!tivit+

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Nook, #hris, and "llen, Eames. Growth Jutside the #ore.Harvard Business 'evie# ?6,

no. 6- @+ecember, -

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Cewis, &ichard +. *hen Cultures Collide$Condon; 3icholas %realey 7ublishing, -.

oran, &. and *. 2tripp.)ynamics o! +uccess!ul %nternational Business 4egotiations$

Houston; Gulf 7ublishing #ompany, 6AA6.

Arti!les

"lden, +ana C., Ean)%enedict 2teenkamp, and &a=eev %atra. %rand 7ositioning through"dvertising in "sia, 3orth "merica, and 8urope; (he &ole of Global #onsumer

#ulture.,ournal o! .arketing /, no. 6 @Eanuary 6AAA

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Cewis, aureen. *hy #ross)#ultural (raining 2imulations *ork.,ournal o!

&uropean %ndustrial raining, -A, no. 9 @-0entures."sia Paci!ic

,ournal o! .anagement 6, no. 6 @6AA

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1sunier, Eean)#laude G. %usiness (ime 7erception and 3ational #ultures; "

#omparative 2urvey..anagement %nternational 'evie#6, no. @(hird Muarter 6AA6

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