BA 115IU

International Marketing
Chapter 4
Cultural Dynamics in Assessing
Global Markets

Lecturer: Dinh Thi Le Trinh

 Table of contents
n What is the culture?
n The role of culture in international
marketing?
n The origins of culture
n The elements of culture
n The change of culture
 What is the culture?
n Culture deals with a people’s design for
living.
n Geert Hofstede: Culture refers to the

“software of the mind” -> a guide for

humans on how to think and behave or a
problem-solving tool.
 What is the culture?
n => “Culture is the sum of the values,
rituals, symbols, beliefs, and thought
processes that are learned and shared by a
group of people, then transmitted from
generation to generation” (Cateora, Gilly
and Graham, 2020).
 The role of culture in
international marketing
n Marketing concept: satisfy the consumers’
needs and wants at a profit -> the successful
marketer can be seen as a student of culture.
 The importance of culture in
international marketing
The decision to
purchase products
(goods and services)
depends largely on a Willingness to buy Culture determines
consumer’s: depends on: a product’s:

• Economic • Personality and • Desirability

ability • Culture
• Frequency
• Willingness to
buy of purchase
• Use
Cultural Influences On Buyer
Behaviour

Cultural competence VITAL IM skill

Adapted from: Jeannet and Hennesey (2002)
 The Challenges of Culture in
Global Marketing Management
n Challenges of cultural competence:
n Marketing mix: Adapt or Standardise?
n Accept cultural diversity or encourage convergence?
n Socially learned norms what we feel right, appropriate,
important, desirable
n Market opportunities: Competitive advantage
n Cultural Environment
n understanding markets, consumers, employees,
network partners:
 The role of culture in
international marketing
n Culture is pervasive in all marketing
activities (product design, packaging,
pricing, research, promotion, channels of
distribution, and styling).
 The role of culture in
international marketing
n The best international marketers should:
n appreciate the cultural differences pertinent to
their businesses.
n understand the origins of these differences
n The use of something new is the beginning of
cultural change ->The marketer becomes a
change agent ->foresee changes in current
markets of operation.
n Humans make adaptations to changing
environments through innovation.
 The origins of culture
n Individuals learn culture from social
institutions
n Socialization (growing up)
n Acculturation (adjusting to a new culture)
n Application (decisions about consumption and
production)
Causal factors and social processes
determine cultural differences
 Geography
n Include climate, topography, flora, fauna,
and microbiology.
n =>Influence history, technology, economics,
social institutions and way of thinking
n => geography -> consumer choice

n Geography changes -> humans can adapt

almost immediately (e.g. Covid-19 pandemic).
 Geography
n Ex:
n Jared Diamond’s opinions: Historically
innovations spread faster East to West than
North to South (e.g., the Silk Road).
n Philip Parker’s results: Latitude (climate) has
impacts on per capita GDP, workers’ wages.
 History
n The impact of specific events in history can be seen
reflected in:
n technology
n social institutions
n cultural values
n consumer behavior.
n Ex:
n in 1776 (American Declaration of Independence with its
values and institutions <-> publication of Adam Smith’s
The Wealth of Nations.
n The post-War baby boom -> consumption patterns
around the world.
 The political economy
n In 20th century, 4 approaches to governance
competed for world dominance:
n Fascism: fell in 1945
n Colonialism: a casualty of World War II
n Communism: crumbled in the 1990s
n Democracy/free enterprise: September 11 and the
conflicts in the Middle East to keep the list of bad things
growing
n Political economy influence on social institutions,
cultural values, and ways of thinking.
 Technology
n Technological innovation -> institutions and
cultural values in the past 100 years in the
United States.
n Ex:
n jet aircraft, air conditioning, televisions,
computers, mobile phones, and the Internet.
n Birth control
 Social institutions
n include family, religion, school, the media,
government, and corporations
n affect and organize people relations, teach
acceptable behavior to succeeding
generations, and govern themselves.
 Family

Media Religion

Social
institutions

School Governent

Corporation
 Social institutions
n Family
n Family size: smaller (putting off child bearing,
marriage)-> monthly allowances, online dating
service; samesex marriages
n Nepotism (chủ nghĩa gia đình trị)
n Gender discrimination (Favoritism of boys in some
cultures)->differences in how children think and
behave
n Education gap between men and women is narrowing
 Social institutions
n Religion
n affects people’s habits, their outlook on life, the
products they buy, the way they buy them, and even
the newspapers they read.
n Christians (around 32% of the world’s population), 1.6
billion Muslims (around 23%), 1 billion Hindus
(around 15%), nearly 500 million Buddhists (7%) and
around 14 million Jews-> need a basic understanding
of all major religions.
 Social institutions
n Religion
n Ex: Chanel unwittingly desecrated the Koran by
embroidering verses from the sacred book of Islam on
several dresses shown in its summer collections.-> To
placate a Muslim group that felt the use of the verses
desecrated the Koran, Chanel had to destroy the
dresses with the offending designs, along with
negatives of the photos taken of the garments.
n School
n affects all aspects of the culture, from economic
development to consumer behavior.
n The literacy rate of a country is a potent force in
economic development.
n Literacy has a profound effect on marketing.
n Ex: Communicating with a literate market is much easier
than communicating with one in which the marketer must
depend on symbols and pictures.
n Media time (TV, and increasingly the Internet
and mobile phones) has replaced family
time—much to the detriment of American
culture.
n children ages zero to eight averaged 48 minutes
a day on a mobile device in 2017, up from 15
minutes in 2013 and five minutes in 2011.
Furthermore, 45 percent of those kids are now
watching on their own mobile device.
n American kids spend only 180 days per
year in school. Contrast that with around
260 days per year in China, 243 in Japan,
and 240 in Germany, the top three in
number of school days globally.
n Government:
n Most often governments try to influence the
thinking and behaviors of adult citizens for the
citizens’ “own good.”
n Ex:
n the government offers a new “birth bonus” of $800,
given to women in their seventh month of
pregnancy—despite France having one of the highest
fertility rates in the European Union.
n Ex:
n Some gov. owns the media and regularly uses
propaganda to form “favorable” public opinions.
n Some gov. prefer no separation of church and state
(Iran).
n Some gov. promote more creative thinking among
students (China, Vietnam).
n Some Gov. influence thinking and behavior through
the passage, promulgation, promotion, and
enforcement of a variety of laws affecting
consumption and marketing behaviors.
n Corporations:
n most innovations are introduced to
societies by companies.
Elements of Culture
Language
(verbal/non verbal)

Manners &
Material Culture
Customs

Social
Education
Institutions

Belief Systems
Aesthetics
& Religion

Adapted from Terpstra & Sarathy (2000)

Christine Comrie UMKD6Q-15-3 2022-23

 Miscommunication across
cultures
n Cross-cultural miscommunication occurs when the
person from the second culture does not receive the
sender’s intended message.
=> The greater the difference between the sender’s and the
receiver’s cultures, the greater is the chance for cross-
cultural miscommunication.
 Cultural values
n Cultural values: the importance of things and
ideas.
n Geert Hofstede: 6 cultural value dimensions
n Individualism, Power Distance, and Uncertainty
Avoidance -> international marketing
phenomena.
n Robert House et al. (1990s): values (9)
related to leadership and organizations
(GLOBE) nicely coincide with Hofstede’s data
 Hofstede’s value dimensions
n Dutch psychologist Geert Hofstede
published his cultural dimensions model
at the end of the 1970s.
n Hofstede’s original survey of the more than
88,000 employees of the 72 countries
revealed four major cultural dimensions.
Geert Hofstede – Cultural
dimensions
n Dutch psychologist
n Formerly in-house psychologist
for IBM
n Developed dimensions of
cultural distance to improve
international working
n Hofstede developed this
framework for analyzing and
interpreting the behaviors, Christine Comrie UMKD6Q-15-3 2022-23

values, and attitudes of a

national culture.
 Hofstede’s value dimensions
n Power distance:
n is defined as the extent to which the less
powerful members of institutions and
organisations within a country expect and accept
that power is distributed unequally.
n High power distance cultures openly accept that a
boss is “higher” and as such deserves a more formal
respect and authority (e.g. Japan, Mexico, and the
Philippines).
n Ex: In Japan or Mexico, the senior person is almost a father
figure and is automatically given respect and usually loyalty
without questions (Adler & Gundersen, 2008).
Hofstede’s value dimensions
n In Southern Europe, Latin America, and much of Asia, power
is an integral part of the social equation. An individual’s
status, age, and seniority command respect. Subordinates
expect to be told what to do and won’t take initiative or
speak their minds unless a manager explicitly asks for their
opinion.
n low power distance cultures: Belief that effective
leaders do not need to have substantial amounts of
power compared to their subordinates
n Austria and Denmark: superiors and subordinates are more
likely to see each other as equal in power.
n In Sweden, Norway, and Israel, respect for equality is a
warranty of freedom. Subordinates and managers alike often
speak their minds.
 Hofestede’s value dimensions
n Individualism/ Collectivism
n Individualism: (e.g. Australia, Northern
European countries, and the United Kingdom)
n people are supposed to look after themselves and
their direct family only.
n Initiating alone, sweating alone, achieving alone—
not necessarily collective efforts—are what win
applause.
Hofestede’s value dimensions
n competition is the fuel of success.
n the “me” identity predominates.
n Ex: In the United States, individualism is valued and
promoted—from its political structure (individual
rights and democracy) to entrepreneurial zeal
(capitalism).
 Hofestede’s value dimensions
n Collectivism: (Singapore, Korea, Mexico, and
Arab)
n people belong to “in groups” that take care of them
in exchange for loyalty.
n group goals take precedence over individuals’ goals.
n the “us” identity predominates.
n Ex: The protections offered by traditional Japanese
companies come to mind as a distinctively group-
oriented value.
 Hofestede’s value dimensions
n Masculinity/Feminine:
n Masculinity: (Japan and Latin American)
n The society will be driven by competition,
achievement and success.
n Value: assertiveness, materialism, and less concern for
others.
n Men have tough and independent personas, while women
cultivate modesty and quality of life.
 Hofestede’s value dimensions
n Feminine society:
n is one where quality of life is the sign of success and
standing out from the crowd is not admirable.
n emphasize “feminine” values: concern for all, an
emphasis on the quality of life, and an emphasis on
relationships.
n both genders swap roles, with the focus on quality of
life, service, and independence.
n Ex: The Scandinavian cultures rank as feminine cultures, as do
cultures in Switzerland and New Zealand. The United States is
actually more moderate.
 Hofestede’s value dimensions
n Uncertainty avoidance:
n The extent to which the members of a culture
feel threatened by ambiguous or unknown
situations and have created beliefs and
institutions that try to avoid these.
n high uncertainty avoidance: (Japan and France)
n prefer to steer clear of conflict and competition.
n tend to appreciate very clear instructions.
Hofestede’s value dimensions
n At the office, sharply defined rules and rituals are
used to get tasks completed.
n Stability and what is known are preferred to instability
and the unknown.
n Company cultures may show a preference for low-risk
decisions, and employees are less willing to exhibit
aggressiveness.
 Hofestede’s value dimensions
n low uncertainty avoidance:
n people are more willing to take on risks,
n companies may appear less formal and structured,
and “thinking outside the box” is valued.
n Ex: Denmark, Singapore, Australia, and to a slightly lesser
extent, the United States usually require less formal rules
to interact.
 Hofestede’s value dimensions
n Long term orientation:
n describes how every society has to maintain
some links with its own past while dealing with
the challenges of the present and future.
n Normative (chuẩn mực) societies score low on
this dimension: (traditional Eastern cultures)
n prefer to maintain time-honoured traditions and
norms while viewing societal change with suspicion.
n values persistence, perseverance, thriftiness, and
having a sense of shame.
n Ex: a Japanese CEO is likely to apologize or take the blame
for a faulty product or process.
 Hofestede’s value dimensions
n Pragmatic (thực tế) societies: scores high on
this dimension (e.g. United Kingdom and the
United States)
n encourage thrift and efforts in modern education as
a way to prepare for the future.
n values tradition only to the extent of fulfilling social
obligations or providing gifts or favors.
n are more likely to be focused on the immediate or
short-term impact of an issue.)
 Hofestede’s value dimensions
n Indulgence (Sự nuông chiều): was added in
2010 (Hofstede, Hofstede, & Minkov, 2010, p. 297)
n the extent to which people try to control their desires and
impulses (bốc đồng), based on the way they were raised.
n Indulgence: relatively weak control (e.g. United States)
n A perception of personal life control
n Loosely prescribed gender roles
n Freedom of speech is important

Hofstede, G., Hofstede, G. J., Minkov, M. (2010). Cultures and Organizations:

Software of the Mind. 3 rd Edition. USA: McGraw-Hill.
 Hofestede’s value dimensions
n Restraint (kiềm chế): relatively strong control
(Russia)
n Strictly prescribed gender roles
n Freedom of speech is not a primary concern

Hofstede, G., Hofstede, G. J., Minkov, M. (2010). Cultures and Organizations:

Software of the Mind. 3 rd Edition. USA: McGraw-Hill.
 What is it???->Cultural
orientation
The cultural
Culture
orientation of a
society reflects
the complex
interaction of
Behavior Value
values, attitudes,
and behaviors
displayed by its
Attitude
members.
 Value
n is explicitly or implicitly desirable to an individual
or group (Adler & Gundersen, 2008)
n influences the selection from available modes,
means, and ends of action (Adler & Gundersen,
2008).
n is society’s ideas about what is good or bad,
acceptable or unacceptable, right or wrong (Adler
& Gundersen, 2008).

Adler, J. N. & Gundersen, A., 2008. International Dimensions of Organizational Behavior, 5th,
Thomson Southwestern
 Value
n Example:
n For Latin American managers, loyalty to the family is
highly important — a value that leads them to hire
competent members of their own family whenever
possible (Adler & Gundersen, 2008).
n For U.S. managers, individual achievement is highly

important—a value that leads them to emphasize a

candidate’s track record and performance on qualifying
exams (Adler & Gundersen, 2008).
=> In both two cases, managerial behavior is influenced
by a strongly held value (Adler & Gundersen, 2008).
 Attitude
n “Attitude expresses values and disposes a person
to act or to react in a certain way toward
something” (Adler & Gundersen, 2008).
n Example:
n French Canadians have a positive attitude toward
pleasant or sweet smells-> The advertisements for Irish
Spring soap directed at French Canadians stressed the
pleasant smell (Adler & Gundersen, 2008).
n English Canadians prefer smells with efficient or clean
connotations -> the ads directed at English Canadians
stressed the inclusion of effective deodorants (Adler &
Gundersen, 2008).
 Behavior
n Behavior is any form of human action (Adler &
Gundersen, 2008).
n Example:
n Middle Easterners stand closer together than do North
Americans while Japanese stand farther apart than do
either North Americans or Middle Easterners (Adler &
Gundersen, 2008).
n Cultural values predict consumer behaviors:
n status consumption of luxury goods,
n brand-switching as a group,
n tendency to share based on time perceptions,
n consuming with immediate vs. long-term goals in mind,
n word-of-mouth communications,
n impulsive buying,
n responses of both surprise and disgust,
n the propensity to complain,
n responses to service failures,
n movie preferences,
n the influence of perceptions of product creativity.
Rituals
n Rituals: patterns of behavior and
interaction that are learned and
repeated.
n Ex: Marriage ceremonies and funerals
n Rituals is important:
n coordinate everyday interactions and
special occasions.
n let people know what to expect.
n Edward T. Hall: culture is communication
(e.g. “languages” of time, space, things,
friendships, and agreements)
n Advertising copywriters should be
concerned less with obvious differences
between languages and more with the
idiomatic and symbolic meanings expressed
 Aesthetics
n aesthetics: arts, folklore, music, drama,
dance, dress, and cosmetics
n The uniqueness of a culture can be spotted
quickly in symbols having distinct meanings.
n Insensitivity to aesthetic values can offend,
create a negative impression, and, in
general, render marketing efforts ineffective
or even damaging.
Symbols
n Strong symbolic meanings may be
overlooked if one is not familiar with a
culture’s aesthetic values.
n the use of the number four should be
avoided completely because the word
for four, shi, is also the Japanese word
for death.
 Belief
n Belief: the relationship between superstition
and religion is not at all clear.
n Ex: one explanation of the origin about the
Western aversion to the number 13 has to do
with Jesus sitting with his 12 disciples at the
Last Supper. What Westerners often call
superstition may play quite a large role in a
society’s belief system in another part of the
world.
n Ex: a preference for an “8” as the last
digit in prices listed—the number
connotes “prosperity” in Chinese
culture.
n Thought Processes
n cultural differences in consumer impatience
and in how consumers make decisions
about products—culture seems to matter
more in snap judgments than in longer
deliberations
n Cultural sensitivity: being attuned to the
nuances of culture so that a new culture
can be viewed objectively, evaluated,
and appreciated. Cultural sensitivity, or
cultural empathy, must be carefully
cultivated.
n Culture is dynamic in nature; it is a
living process
n Cultural borrowing is a responsible
effort to learn from others’ cultural ways
in the quest for better solutions to a
society’s particular problems.
n A common language does not guarantee a
similar interpretation of words or phrases.
n Ex:
n Both British and Americans speak English, but
their cultures are sufficiently different that a
single phrase has different meanings to each
and even can be completely misunderstood.
n In England, a lift instead of an elevator
n an American, when speaking of a bathroom,
generally refers to a toilet, whereas in England
a bathroom is a place to take a tub bath.
n Marketers have two options when
introducing an innovation to a culture:
They can wait for changes to occur, or
they can spur change.
n cultural congruence: involves marketing
products similar to ones already on the
market in a manner as congruent as
possible with existing cultural norms,
thereby minimizing resistance.
 EDUCATE SALESFORCE
Market Research
Impact on trust and
Personal bonding

Feelings of Otherness National

National Culture B
Culture A Culture A Culture B
Cultural
Organisational Difference Organisational
Culture A Culture B

The bigger this is

• The bigger the transaction cost
• The more adaptation required
• Increased probability of conflict

Christine Comrie UMKD6Q-15-3 2022-23

Christine Comrie UMKD6Q-15-3 2022-23
Keiretsu

Christine Comrie UMKD6Q-15-3 2022-23

 Self referencing
criterion
n The individual bound by
his / her own cultural
assumptions
n virtually impossible for a
person to observe foreign
cultures without making
reference back to personal
cultural values
n Perception of overseas
events can be distorted Christine Comrie UMKD6Q-15-3 2022-23

by the effects of the SRC