Marketing Behaviour Assessment 1: Presentation Dimensions of Cultural Values

What is covered in this presentation?  Consumer value framework  Explore the five dimensions of cultural values  Apply this theory to the marketing behaviour of McDonalds  Recommend effective marketing strategies

Five Dimensions of Cultural Values  Hofstede’s five dimensions of cultural values theory has been (and is today) the most dominant metric for measuring culture since around  There is an argument that Hofstede’s theory is not particularly valid due to the fact that culture is extremely complex.  However, it is widely and highly accepted as valuable to use this information and research to apply to a marketing context and use it in a positive way to guide marketing activities.

Power Distance (PD)  The extent to which the less powerful members of society within a country expect and accept that power is distributed unequally.  Refers to the degree of inequality that exists and is accepted among people/consumers that do not have authority or power.  High PD score = society accepts the fact of life that power is distributed unequally.  Low PD score = society views themselves as all being equal and power is well shared/dispersed.

Individualism (IDV)  The strength of the ties people have to others within the community (strong or weak/loose).  The degree to which everyone is expected to look after himself or herself and his or her immediate family.  High IDV score = minimal interpersonal connections and little sharing of responsibility beyond family (may or may not extend to close friends).  Low IDV score = robust group cohesion, significant loyalty and respect for group members. People take more responsibility for each other's well being.

Masculinity (MAS)  This refers to the dominant male sex role pattern in the majority of both traditional and modern society; and to what degree a society sticks with, and values, traditional male and female roles.  Role distinction within a group that values assertiveness and control.  High MAS score = men are expected to be assertive, tough and the provider for his family. If women in this culture work outside the home, they tend to have separate professions from men.  Low MAS score = lots of ‘grey area’ in peoples’ roles (men and women). Men and women often work together, equally, in many professions and roles.

Uncertainty Avoidance (UAI)  UAI refers to the extent to which members of a culture feel threatened by or anxious of uncertain, ambiguous or unknown situations and/or ‘things’.  High UAI score = people try to avoid ambiguity as much as possible. Generally, they like to be governed by rules and order and they “seek a collective truth” (Smith, 2014).  Low UAI score = indicates that society values diversity and enjoy novel events. Limited rules and regulations; people wish to, and are encouraged to, discover their own truth.

Long Term Orientation (LTO)  This refers to the degree that society values long term orientation over short term in regards to the future.  Values consistent with Confucian philosophy; prioritising future rewards above short-term benefits.  High LTO score = it is widely considered as very important to deliver on social obligations and avoid “loss of face”. High importance is placed on family, education and work.  Low LTO score = virtually the opposite. Value honesty, openness and freedom even at the risk of disappointing others.

Conclusion  Overall, McDonalds do acknowledge and address the five dimensions of cultural values in their plethora of marketing activities.  As the business environment continues to become more challenging with the introduction of intelligent competition and changing consumer tastes McDonalds will need to continue to focus their marketing activities on cultural dimensions in order to stay market leaders.

That’s All – Thank you!

References  Yoo, B, Donthu, N, Lenartowicz, T, 2011, Measuring Hofstede’s Five Dimensions of Cultural Values at the Individual Level: Development and Validation of CVSCALE, Journal of International Consumer Marketing, Volume 23:193–210, 2011, Taylor & Francis Group  Payne, N, 2012, Geert Hofstede's Cultural Dimensions, Kwintessentialvids, You Tube, 2012, viewed 10/01/  Smith, C, 2014, Hofstede's Cultural Dimensions, Mind Tools, 2014 viewed 15/01/  McDonalds, 2014, Our Journey Together For Good, McDonalds, 2015, viewed 11/01/  McDonalds, 2014, Corporate Social Responsibility and Sustainability, McDonalds, 2015, viewed 12/01/  McDonalds, 2015, Global Best of Green 2014, McDonalds, 2015, viewed 11/01/ practices/best-of-green.html  Babin, BJ & Harris, EG 2013, CB5, Cengage, United States  Wardell, J, 2015, McDonald's Australian experiment is to look less like McDonald's, Reuters, Yahoo7News, 2015, viewed 15/01/ experiment-is-to-look-less-like-mcdonalds