Chapter 4

Cultural Dynamics in
Assessing Global
Markets

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Learning Objectives

4-1 The importance of culture to an

international marketer
4-2 The origins of culture
4-3 The elements of culture
4-4 The impact of cultural borrowing
4-5 The strategy of planned change and its
consequences
The Importance of Culture

Culture is
• Behaviors and values, the seen and unseen, that
are learned, shared, and transmitted by a group
of people
• Relevant to the study of international marketing
• The human-made part of human environment
• Knowledge, beliefs, art, morals, laws, customs, and
any other capabilities and habits
Culture’s Pervasive Impact 1 of 4

Culture and Birthrates

• Gradual decline beginning in 1960s for many
countries
• Shift from agricultural to industrial to services economies
• Government policies or use of birth control technology
• Global change in values about family size
Exhibit 4.1 Birthrates (per 1,000
women) U.S.

Source: World Bank, World Development Indicators 2012, https://openknowledge.worldbank.org/handle/10986/6014. Accessed 2018
Exhibit 4.1 Birthrates (per 1,000
women) Singapore

Source: World Bank, World Development Indicators 2012, https://openknowledge.worldbank.org/handle/10986/6014. Accessed 2018
Exhibit 4.1 Birthrates (per 1,000
women) Japan

Source: World Bank, World Development Indicators 2012, https://openknowledge.worldbank.org/handle/10986/6014. Accessed 2018
Culture’s Pervasive Impact 2 of 4

Culture and Consumption

• The Dutch are champion consumers of cut flowers
• Flowers of cultural and economic value through history
• The Germans, British, and Japanese love chocolates
• Cooler temperatures allow for easier storage
• The Japanese and Spaniards love seafood
• Being surrounded by water explains preference for seafood
• French and Italians consume the most wine
• Grapes grow best there; alcohol laws more relaxed
Exhibit 4.2 Patterns of Consumption (annual,
per capita)

Cut
Fish and Dried
Flowers Chocolate Wine Tobacco
Country Seafood Pasta
(kg) (liters) (sticks)
(kg) (kg)
(€)
France 42 4.3 5.2 9.2 37.9 682

Germany 48 8.1 8.6 9.0 24.6 980

Italy 45 2.5 8.3 24.7 35.1 1147

Netherlands 49 4.9 4.8 3.7 25.7 659

Spain 23 2.1 28.2 5.2 19.5 911

United
38 8.0 11.3 4.7 21.2 568
Kingdom

Japan 46 1.1 32.1 8.0 7.2 1490

United
32 4.4 5.0 2.2 9.9 874
States
Culture’s Pervasive Impact 3 of 4

Consequences of Consumption
• Some think consumption of romantic products would
lead to higher birthrates
• Germans consume great amount of flowers, candy, and wine
• But, have lowest birthrate among the six European countries
• Cardiac issues in countries that consume higher
levels of red meat
Exhibit 4.3 Consequences of Consumption 1
of 2

Birthrates Life
Country
(per 1,000) Expectancy
France 13.1 82.2
Germany 8.6 81.2
Italy 8.9 82.6
Netherlands 10.7 81.3
Spain 9.5 82.6
United Kingdom 12.8 81.2
Japan 7.9 83.3
United States 12.7 78.9
Exhibit 4.3 Consequences of Consumption 2
of 2

Ischemic
Diabetes Lung Stomach
Country Heart
Mellitus Cancer Cancer
Disease
France 58.6 18.3 52.2 7.8
Germany 161.3 30.8 56.7 12.6
Italy 120.2 35.2 60.6 16.8
Netherlands 57.8 16.4 64.8 8.5
Spain 77.6 22.4 48.0 12.5
United
121.0 9.7 56.4 7.7
Kingdom
Japan 62.1 11.7 56.5 39.4
United
120.1 22.3 51.6 3.7
States
Culture’s Pervasive Impact 4 of 4

Consequences of Consumption continued

• Diabetes in countries that consume higher levels of
sugar and chocolate
• Japan shows high incidence of stomach cancer
• Perhaps due to salty foods, soy sauce, and Helicobacter
pylori
• But, longest life expectancy, maybe because of fish-based
diet
Cultural Food Differences
Finding horse or donkey as your entrée would not be romantic or even
appetizing in most places around the world. Even though horse
consumption is generally declining in France, here in Paris you
still can buy a steed steak at the local bouchers chevaleries. Escargot
oui, Eeyore oui!

©John Graham
Definitions and Origins of Culture 1 of 11

Geert Hofstede
• Culture is “software of the mind”

Edward Hall
• Cultural differences are often invisible
• Marketers who ignore them hurt companies and
career
James Day Hodgson
• Describes culture as a “thicket” – tough to get
through.
Definitions and Origins of Culture 2 of 11

Culture
• Sum of values, rituals, symbols, beliefs, and thought
processes that are learned and shared by a group of
people, then transmitted from generation to
generation
• Resides in the individual’s mind
• Large collective of people can be like-minded
Exhibit 4.4 Origins, Elements, and Consequences
of Culture

Jump to long description.

Definitions and Origins of Culture 3 of 11

Geography
• Includes climate, topography, flora, fauna,
microbiology
• Impacts history, technology, economics,
society
• Professor of Physiology Jared Diamond
• Innovations spread fastest East to West than North to
South
• Professor of Marketing Philip Parker
• Geography has a strong influence on history, economics,
and consumer behavior
Definitions and Origins of Culture 4 of 11

History
• Specific historical events have great impact
• The Wealth of Nations, Adam Smith (1776)
• Impacted the Declaration of Independence, and
thereby American’s values and institutions
• Ripple effects of World War II
• Germany’s mistrust of propaganda; unusual
limitations on marketing practices
• Post-war baby boom; affects consumption patterns
around the world today
Definitions and Origins of Culture 5 of 11

The Political Economy

• Four approaches to governance competed
for world dominance for most of 20th
century
• Colonialism—casualty of WWII
• Fascism—fell in 1945
• Communism—crumbled in the 1990s
• Democracy/Free enterprise
Definitions and Origins of Culture 6 of 11

Technology
• Innovation impacts institutions and cultural values
• The birth control pill perhaps most impactful
• Changed traditional gender roles; more women in careers

• Smaller families around world

• Government and schools must address abstinence, condoms

• Technology does not always solve all problems

• U.S. has best healthcare technology but the highest cost and
worse outcomes
Jump to long description.

Source: Michelle Andrews, “Health, The Cost of Care,” National Geographic Magazine, December
Exhibit 4.5 Comparison of Healthcare Systems

2009
. Oliver Uberti/National Geographic Stock.
Definitions and Origins of Culture 6 of 11

Social Institutions
• Family, religion, school, the media,
government, corporations
• Cultural interpretations are impacted by
• The positions of men and women in society
• The role of family
• Social classes
• Group behavior
• Age groups
• Societal definitions of decency and civility
Definitions and Origins of Culture 8 of 11

Family
• The impact of birth control
• Putting off marriage
• Single parenthood
• What constitutes a family is changing
• Same-sex marriage
• Divorce

• Changing ratios of males to females

Definitions and Origins of Culture 9 of 11

Religion
• First social institution infants are exposed
to outside the home
• Affects value systems, habits, outlook on life,
products bought
Definitions and Origins of Culture 10 of
11

School
• Affects all aspects of culture
• Literacy rates
• Performance of education systems is a leading
indicator of economic competitiveness

The Media
• Media time has replaced family time
Schools

In the United States, kids attend school 180 days per year; in
China, they attend over 220 days—that’s six days a week. There’s
a great thirst for the written word in China—here children read
books rented from a street vendor.
© Cary Wolinsky/Trillium Studios
Definitions and Origins of Culture 11 of
11

Government
• Less influential
• Governments try to influence the thinking and
behavior of adults
• Use of propaganda, laws to influence

Corporations
• Diffusion of innovation
Elements of Culture 1 of 8

Five elements of Culture

• Values
• Rituals
• Symbols
• Beliefs
• Thought processes
Elements of Culture 2 of 8

Cultural Values
• Hofstede’s four dimensions
• Individualism/Collectivism Index (IDV); focus on
self-orientation
• Power Distance Index (PDI); focus on authority
orientation
• Uncertainty Avoidance Index (UAI); focus on risk
orientation
• Masculinity/Femininity Index (MAS); focus on
assertiveness and achievement
 Exhibit 4.7 Hofstede’s Indices, Language, and
Linguistic Distance
Primary
Country IDV Score PDI Score UAI Score
Language
Arab
38 80 68 Arabic
countries
Finland 63 33 59 Finnish
France 71 68 86 French
Great Britain 89 35 35 English
Greece 35 60 112 Greek
India 48 77 40 Dravidian
Iran 41 58 59 Farsi
Japan 46 54 92 Japanese
Mexico 30 81 82 Spanish
South Korea 18 60 85 Korean
United States 91 40 46 English
Source: Geert Hofstede, Gert Jan Hofstede, and Michael Minkov, Cultures and Organizations: Software of the Mind, 3rd ed. (New York: McGraw-Hill, 2011); Joel West and
John L. Graham, “A Linguistics-Based Measure of Cultural Distance and Its Relationship to Managerial Values,” Management International Review 44, no.3 (2004), pp. 239–
60.
Elements of Culture 3 of 8

Cultural Values and Consumer Behavior

• Can help predict consumer behavior patterns
• Consumption of luxury goods

• Consuming with immediate vs. long-term goals in mind

• Word-of-mouth communications

• Impulsive buying

• The propensity to complain

• Influence of perceptions of product creativity

Elements of Culture 4 of 8

Rituals
• Patterns of behavior and interaction that are learned
and repeated
• Associated with major life events: marriage, funerals,
graduation

• Also smaller rituals: dinner at restaurant, grooming, visit to

store

• Important function of culture

• Coordinate everyday interactions and special occasions

• Let people know what to expect

Religious Rituals

Every Muslim is enjoined to make the hajj, or pilgrimage, to Mecca,

once in his or her lifetime if physically able. Here, some 2 million
faithful come from all over the world annually to participate in what
is one of the largest ritual meetings on Earth.
© Mahmoud Mahmoud/AFP/Getty Images
Religious Rituals

Dressed in the ritual color of saffron (orange), thousands of pilgrims of

the Lord Shiva descend one of the over 100 Ghats (steps to the holy
river/Mother Ganga/the River Ganges) in Varanasi, India, to perform
puja (ritual cleansing of the soul). Varanasi (also known as Benares or
Banaris) is one of the oldest and holiest cities in India.

©John Graham
Elements of Culture 5 of 8

Symbols
• Anthropologist Edward T. Hall: culture is
communication
• Includes ability to accurately interpret symbols

• Language itself thought of as an important social

institution
• Linguistic distance, bilingualism, biculturalism

• Aesthetics as symbols
• Art, folklore, music, drama, dance, dress, cosmetics
Elements of Culture 6 of 8

Beliefs
• Mainly stem from religious training, varies by culture
• Relationship between superstition and religion unclear
• Western aversion to the number 13

• Japanese concern about the Year of the Fire Horse

• The Chinese practice of Feng Shui

• Important part of cultural fabric of a society

• Influence all manners of behavior
Religion and Business

Russian Orthodox priests prepare to bless an assembly line at a Niva sport-

utility plant near Moscow, part of a joint venture between General Motors and
AvtoVaz. The Niva is the best-selling SUV in Russia, making a profit for GM.

© Maxim Marmur/AP Images

Elements of Culture 7 of 8

Thought Processes
• Ways of thinking vary across cultures
• Impact snap judgments more than long deliberations

• Deeply impact sensory perceptions, particularly aromas

• The Geography of Thought, Richard Nisbett

• Compares Eastern and Western ways of thinking

• Confucius’s worthy picture indicative of perception

differences
Elements of Culture 8 of 8

Cultural Sensitivity and Tolerance

• Starting point for successful foreign marketing
• Being attuned to nuances of a culture

• Viewing it objectively, evaluating and appreciating it

• Reduces conflict, improves communication, makes

collaborative relationships successful

• Must be carefully cultivated

• Understand how own culture impacts view of other cultures

• Just because a culture is different doesn’t mean it’s wrong

Cultural Change 1 of 6

The Paradox of Cultural Change

• Culture is dynamic in nature
• Culture is conservative and resists change
Cultural Change 2 of 6

Why do societies change?

• Change can be thrust upon cultures
• War, natural disasters
• Result of society seeking ways to solve problems
• Adjusting to environmental and historical changes
Cultural Change 3 of 6

Cultural Borrowing
• Learn from other cultures to solve society’s problems
• Once found, society judges whether it is acceptable solution

• If approved, it is passed on and taught as groups’ cultural

heritage

• Although many elements may be borrowed, culture is still

unique

• Elements combined to become typical for society

Cultural Change 4 of 6

Similarities: An Illusion
• Cultures can be distinct even with some
commonalities
• Common language, race, heritage do not guarantee
similarities
• Growing economic unification in Europe
• The “European consumer”
• Consider each country’s consumer behavior independently
Cultural Change 5 of 6

Resistance to Change
• Consumers in different cultures display differing
resistance
• Qualities of innovations that are most readily accepted:
• Hold greatest interest within the society
• Are least disruptive to current values and behavior patterns
• Important for international marketers to understand
• Can’t wait a long time for acceptance of innovation
• Must gain acceptance within limits of financial resources and
projected profitability periods
Changing Culture - Clothing

MTV meets Mom in Mumbai (formerly Bombay), India. Culture does

change—dress and even names of major cities! Even so, a local
resident tells us everyone still calls it Bombay despite the official
alteration. © Joe McNally/Getty Images
Cultural Change 6 of 6

Planned and Unplanned Cultural Change

• Change becoming increasingly more planned
• Strategies to bring about planned change
• Cultural congruence
• Determine which cultural factors conflict with innovation
• Which factors contribute to resistance of its acceptance
• Change the factors from obstacles to stimulants for change
• Change spurred by marketers impacts host culture