“approaches to culture and their application / implication to International Marketing Research“ Group Presentation Aachen The Fantastic Five EMIC vs. ETIC Kazembi Zatjirua * Alexander Fischer * Matthias Metzger Marc Oback * Holger Ruban

“There is no such thing as a universal management method or management theory across the globe” Geert Hofstede

Kazembi Zatjirua * Alexander Fischer * Matthias Metzger * Marc Oback * Holger Ruban EMIC versus ETIC Level Differentiation: Level of similarities and differentiation EMIC -Reflects on similarities of cultures (Preferences on valid contructs & concepts, focus on culture-free masses) ETIC -Reflects on differentiation of cultures (Preferences on cultural peculiarities, culture-specific concepts) Individual Purchasing Process Purchasing Process EMIC Approach EMIC Approach ETIC Approach ETIC Approach Design & value preposition of products and services Design & value preposition of products and services Design & value preposition of products and services Design & value preposition of products and services

Kazembi Zatjirua * Alexander Fischer * Matthias Metzger * Marc Oback * Holger Ruban MICRO versus MACRO Level Differentiation: Level of reflection Microlevel -Reflects on phenomenons of individuals (Preferences on sense, thinking, act) Macrolevel -Reflects on general phenomenons of cultural levels (Preferences on cultural value, consumption behaviour and pattern) Individual Purchasing Process Purchasing Process MACROLEVEL MARKETING cultural value, consumption behaviour and pattern MACROLEVEL MARKETING cultural value, consumption behaviour and pattern MICROLEVEL MARKETING phenomenons of individuals MICROLEVEL MARKETING phenomenons of individuals

Level of reflection Focus of refelection Observation Macrolevel Observation Macrolevel Observation Microlevel Observation Microlevel Similarity (etic) Differentiate (emic) Identification of culture independed realities of the microlevel Identification of culture independed realities of the microlevel Description of the uniqueness of individual societies Description of the uniqueness of individual societies Identification of types and subgroups of societies Identification of types and subgroups of societies Description of dimensions for classification of cultures Description of dimensions for classification of cultures Kazembi Zatjirua * Alexander Fischer * Matthias Metzger * Marc Oback * Holger Ruban

Etic on a macro level  Hofstede’s four dimensions of culture variation (1980, 1991)  individualism vs. collectivism  power distance  masculinity vs. femininity  uncertainty avoidance  Schwartz’s framework (1990)  relations between individual and groups  assuring responsible behaviour  the role in humankind in the natural and social world  New concepts  Nigel Holden (2004) => no B2B marketing, negotiations for e.g. Japan and Germany =>

Kazembi Zatjirua * Alexander Fischer * Matthias Metzger * Marc Oback * Holger Ruban Example for Hofstede

Etic on a macro basis - Identifying of types and subgroups Understanding the global market Reach ability, receptivity, stability, measurability, sustainability and profitability => Market entry strategy => Segmentation => Product placement To find clusters (cluster theory) Production Education Supply Chain Marketing Operations

Global market segmentation on a macro level  Global market segmentation Economic Technological Geographic Cultural Demographic Political Industrial structure Strategic brand positioning

Kazembi Zatjirua * Alexander Fischer * Matthias Metzger * Marc Oback * Holger Ruban Conclusions and recommendations Global segmentation should include macro and Micro-level Bases

Conclusion and recommendations

“EMIC (PHONEMIC) VERSES ETIC (PHONETIC) APPROACHES TO CULTURE AND THEIR APPLICATION /IMPLICATION TO INTERATIONAL MARKETING RESEARCH “

Segmentation of markets (using micro-level bases) Bases for segmentation:  Lifestyle factors and profit benefits  Responses to marketing  Cultural traits  Attutudes  Hybrid factors (values, benefits, demographics) Micro-segmentation: segments based on behavioural factors  consumer responsiveness to elements of the marketing program  understanding the nature of consumer orientation towards the product and its appeal

EMIC approach – micro-level Culture influences consumer behaviour through its manifestations: values  values (centrally held, enduring belief which drives an individual‘s behaviour)  heroes rituals  rituals (behaviour repeated over time, involving the consumption of goods)  symbols  symbols (language, gestures, pictures) (Hofstede, 1997) EMIC approach to cross-cultural consumer research:  description of the uniqueness of individual societies  focus is upon understanding issues from the viewpoint of the subjects being studied  provides “culture-rich“ information

What are the components of consumer behaviour? Cognition  Cognition (memory structures or self-constructuals) Affect  Affect (intention formation process and its outcome) Attitude  Attitude (towards an entity) Behaviour  Behaviour (individual choices and behaviour patterns) An individual‘s behaviour is a result of that individual‘s cultural value system. Emic reseachers view culture as inseparable from the individual, as an inherent quality. Consumer behaviour

Cultural Value System Symbols VALUES HeroesRituals Consumer behaviour Cognition Affect Behaviour Marketing Communications Marketing Research Interaction of culture and consumer behaviour

Managerial Implications for Segmentation (-Targeting-Positioning)

Intial move into “similar“ cultures (requires broader etic approach) Current moves into “new“ and “differing“ cultures (requires emic understanding on mirco-level, before application to etic) cross-cultural research The very name cross-cultural research embodies both approaches: To be “cultural“ requires the emic viewpoint, and “cross“ requires the etic perspective