1. MKT 769 CULTURE, Part II Lars Perner, Instructor 1 CULTURE, Part II Hofstedes Dimensions Globalization and anti-globalization Negotiations Western vs. Asian culture

2. MKT 769 CULTURE, Part II Lars Perner, Instructor 2 Globalization of Culture Books by Thomas Friedman –The Lexus and the Olive Tree –The World is Flat Technology allows easier communication and exchange between people –International media –Internet Increased trade among nations

3. MKT 769 CULTURE, Part II Lars Perner, Instructor 3 Anti-Globalism Johny Johansson, In Your Face: How American Marketing Excess Fuels Anti-Americanism –Three strikes: Strike 1: Anti-marketing Strike 2: Anti-globalism Strike 3: Anti-Americanism

4. MKT 769 CULTURE, Part II Lars Perner, Instructor 4 Hofstedes Cultural Dimensions Individualism (vs. collectivism) Power distance Masculine vs. feminine Strong vs. weak uncertainty avoidance Short vs. long term orientation (Confucianist dynamics) –The Foolish Old Man Who Moved the Mountain Based on interviews with IBM executives throughout the World--1980s

5. MKT 769 CULTURE, Part II Lars Perner, Instructor 5 Individualism vs. collectivism The extent to which –Individuals as opposed to groups are rewarded –It is desirable to stand out from others In collectivism, the unit of responsibility can be (sometimes depending on context) –Work group –Family –Nation, community, or society as a whole

6. MKT 769 CULTURE, Part II Lars Perner, Instructor 6 Power Distance The extent to which rank is important in work and relationships Rank can be based on –Position –Family/ethnic status –Age Implications for –Strategy formation –Delegation –Correcting mistakes

7. MKT 769 CULTURE, Part II Lars Perner, Instructor 7 Masculine vs. Feminine Masculine values: Dominating environment, conquering nature, progress –E.g., damming, tunnels, land development, land reclamation Feminine values: Harmony, preserving environment –E.g., environmental impact, working around nature

8. MKT 769 CULTURE, Part II Lars Perner, Instructor 8 Uncertainty Avoidance Low uncertainty avoidance –Willingness to Take risks –Investments –Social situations –Consider new ideas High uncertainty avoidance –Reliance on authority for decision making

9. MKT 769 CULTURE, Part II Lars Perner, Instructor 9 Long vs. short term orientation Not included in Hofstedes original work Complicationsis U.S. shortsighted? –Short term financial performance –Investment in new technologies; firms with high price/earnings ratios Net present value (NPV) analysis/discounted cash flows Economic structure –Accountability to stockholders; disclosure of information

10. MKT 769 CULTURE, Part II Lars Perner, Instructor 10 Characteristics of Culture Comprehensive Acquired (learned) Manifested in boundaries of acceptable thought and behavior-- norms and sanctions Conscious awareness limited (frequently taken for granted) Dynamic vs. static

11. MKT 769 CULTURE, Part II Lars Perner, Instructor 11 Homogeneity of CultureSome Dimensions Linguistic Religious Ethnic Climatic Geographic Institutional/political Social/income Source: Usinier and Lee, 2005

12. MKT 769 CULTURE, Part II Lars Perner, Instructor 12 Issues in Negotiation Non-verbal messages What the other side is likely to hear (or fail to hear) Background of individual –Within the given society (ethnic issues) –Within the company –Within the negotiating group Timing of concessions

13. MKT 769 CULTURE, Part II Lars Perner, Instructor 13 Negotiation Content Non-task sounding Task-related exchange of information Persuasion Concessions and agreements

14. MKT 769 CULTURE, Part II Lars Perner, Instructor 14 Eastern vs. Western Culture Differences in –Values –Perceptions of Objects Reality –Stability vs. change –Control –Perceived roles

15. MKT 769 CULTURE, Part II Lars Perner, Instructor 15 Time Issues in Culture Time as tangible, valuable commodity –Time is money vs. –Traditional means of relations Monochronic vs. polychronic approach to combining events Eating times –Regularity vs. flexibility –Social purpose –Meal purpose and content –Distribution of food consumption across the day Life as single continuous event vs. a series of repeating cycles –Impact of religion, attachment to natures cycles Preferred temporal orientation –Past –Present –Future

16. MKT 769 CULTURE, Part II Lars Perner, Instructor 16 Relating to Outsiders Perceptions of outsidersmay be seen as –barbarian –lazy –backward –inefficient vs. un- cultured –profane (relative to in-groups religion) Tendency to perceive out- groups as more homogeneous than ones own group the Sherif Boys Camp studies Locus of in- groupmay depend on context Source: Usinier and Lee, 2005

17. MKT 769 CULTURE, Part II Lars Perner, Instructor 17 Cultural borrowing Adoption of elements from other culturese.g., –Language and writing systems –Products (e.g., jeans, pizza) Adjustments/adaptations Hidden process; origin may be unknown to contemporary members of the culture Source: Usinier and Lee, 2005

18. MKT 769 CULTURE, Part II Lars Perner, Instructor 18 Some Examples of Borrowing Japanese writing system (sound and concept pictorals) adapted with difficulty from Chinese (concept only pictorals) Arabic numeral system and mathematics English language words from –Latin –Arabic –Germanic and Nordic languages Major world religions

19. MKT 769 CULTURE, Part II Lars Perner, Instructor 19 Perceived Control Over Reality World is not generally seen as predictable –Trends are not expected to continue Individual has little control over the world BUT –Outcome is believed to be tied to effort, not individual skill

20. MKT 769 CULTURE, Part II Lars Perner, Instructor 20 Some Tendencies IssueWestern CultureEastern Culture Focus of attentionObjectsEnvironment Composition of the World ObjectsSubstances Controllability of environment More perceived control Less perceived control Perceived stabilityMore stableMore change Organization of the world CategoriesRelationships ReasoningFormal logicLess use of formal logic Resolution of disagreement DialecticMiddle way Source: Richard E. Nisbett, The Geography of Thought: How Asians and Westerners Think Differently … and Why, New York, 2003, The Free Press

21. MKT 769 CULTURE, Part II Lars Perner, Instructor 21 More Tendencies Westeners tend to rate themselves –More unique than average and what they are –Above average in ability Easteners tend to rate themselves –Less unique than they really are –Below average

22. MKT 769 CULTURE, Part II Lars Perner, Instructor 22 Parenting Western –Child given choices –In play, parent asks questions about objects Eastern –Choices made for the child –Child reared to stay with mother most of the time –Parent asks questions about feelings –Feelings in disciplinary talks The farmer feels bad that you did not eat everything… The toy is crying because you threw it.

23. MKT 769 CULTURE, Part II Lars Perner, Instructor 23 Teaching Language to Children Emphasis is on verbs, not on –Nouns –Adjectives, adverbs (except if related to emotions)

24. MKT 769 CULTURE, Part II Lars Perner, Instructor 24 Categorization Tendency to group into categories based on members that go together (e.g., monkey/banana rather than monkey/panda)

25. MKT 769 CULTURE, Part II Lars Perner, Instructor 25 Proverbs Western: The early bird gets the worm Eastern: –The first bird in the flock gets shot –A nail that stands out will be hammered down.

26. MKT 769 CULTURE, Part II Lars Perner, Instructor 26 Values IssueWestern Value Eastern Value Distinctiveness of people Want to be distinctiveNot valued; emphasis on tie to group Perceived controlSignificant; values determine choices Modestsocietal values are already established EmphasisSuccess and achievement; relationships may get in the way Best outcome for relevant group (e.g., family, work group) Self-esteemStrive to feel good; assurances wanted Tied to belonging with group RelationshipsEquality or superior position Clearly defined; hierarchical RulesSame rules apply to allDepend on context and relationship Source: Richard E. Nisbett, The Geography of Thought: How Asians and Westeners Think Differently … and Why, New York, 2003, The Free Press

27. MKT 769 CULTURE, Part II Lars Perner, Instructor 27 Some implications Thanking peoplefor things they are clearly supposed to do? Why the need for a choice between 40 different brands of cereal?

28. MKT 769 CULTURE, Part II Lars Perner, Instructor 28 Socialization Western textbook: See Dick run. See Dick play. See Dick run and play. Chinese: Big brother takes care of little brother. Big brother loves little brother. Little brother loves big brother.

29. MKT 769 CULTURE, Part II Lars Perner, Instructor 29 Perception of People Western: People have characteristics independent of the situation –Fundamental attribution error: People attribute their own behavior to the circumstances but that of others to innate characteristics. Eastern: Person is connected; behavior is the result of specific roles played at the time

30. MKT 769 CULTURE, Part II Lars Perner, Instructor 30 Contrasting Advertising Perspectives (Aithison 2002) Western –Atomisticbroken down to smallest component parts –Unique selling propositions –How to –Positioning –May be dull and boring –Copy focused Asian –Holistic –Everything relates to everything else –How things fit together and relate –Visual and oral Jim Aitchison, How Asia Advertises, New York: Wiley, 2002.

31. MKT 769 CULTURE, Part II Lars Perner, Instructor 31 Advertising Content Comparisons American: –Individual benefit and pleasure (e.g., Make your way through the crowd) Korean –Collective values (e.g., We have a way of bringing people together)

32. MKT 769 CULTURE, Part II Lars Perner, Instructor 32 Priming and learning in a culture U.S. professor in Hong Kong started letter apologizing for his unworthiness for the job U.S. manager left room so that an employee could snoop on unfavorable report

33. MKT 769 CULTURE, Part II Lars Perner, Instructor 33 Debate and Conflict The first person to raise his voice has lost the argument. (Chinese proverb) Use of indirection and projection Face-to-face vs. anonymous comments Western adversarial rule of law based on consistent universal ideals vs. solution for the case at hand in context

34. MKT 769 CULTURE, Part II Lars Perner, Instructor 34 Resolving Disputes Not based on –Universal principles –Formal logic (not because of inability but because this is not a mature way to resolve disputes) Emphasis on –Compromise –Discouragement of bringing about conflict Inherent belief that contradicting statements can each have some truth (attraction to paradoxes)

35. MKT 769 CULTURE, Part II Lars Perner, Instructor 35 Relationships, Education, and Work Western –Standing out; being better –Self perceived favorably –Self-esteem building –Work longer on successful job Eastern –Harmony –Must weed out personal characteristics that might annoy others –Taught self-criticism –Not recognized in profession until after many years of practice –Work longer on unsuccessful job

36. MKT 769 CULTURE, Part II Lars Perner, Instructor 36 Chinese Involvement in Product Selection Low for products consumed individually in privateemphasis on price and quality Higher for products consumed in public settingsocial significance becomes more importante.g., –Status –Harmony with others

37. MKT 769 CULTURE, Part II Lars Perner, Instructor 37 Mexican vs. U.S. culture Cautions –Mexico is a large, heterogeneous country –Urban areas vs. indigenous cultures –Large regional variations –Some differences based on income and lifestyle –Some impact of religion

38. MKT 769 CULTURE, Part II Lars Perner, Instructor 38 Mexican Culture: General Issues High power distance Strong uncertainty avoidance Tendency toward theoretical education Strong patriotism Relatively formal etiquette Strong emphasis on family –Extended family –Strong family emphasis within private life –Relatives may be favored for jobs/business

39. MKT 769 CULTURE, Part II Lars Perner, Instructor 39 Wealth, Positions, Power, and Privileges He cant be the owner; he works there! Emphasis on titlese.g., licenciado/licenciada Titles may be part of address Importance of connections –U.S.: Networking –Mexico: Greater emphasis on family and social class connections Manager/subordinate relationships: –Less question of why directions are given

40. MKT 769 CULTURE, Part II Lars Perner, Instructor 40 Time and Planning Balance of reality and stereotypes Often less of a feel of urgency Speech may be less clear on timing (e.g., I did vs. I am going to) Keeping customer waiting may not be recognized as inconveniencebut… Planning may be limited due to changing environment (e.g., laws)