Fluent Essays

Culture and Global Dexterity View and consider the ideas of Andy Molinsky on Global Dexterity as it relates to: History and Geography and Cultural Dynamics in Global Markets. Compose a 300 to 400 word post for this forum which focuses on one of Molinsky's concepts presented and aptly connect it to concepts presented in Chapters 3 and 4. Make sure to find one scholarly peer-reviewed journal article for a support for the focus of your Discussion Board post. Chapter 3 History and Geography: The Foundations of Culture Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Learning Objectives LO1 The importance of history and geography in understanding international markets LO2 The effects of history on a country’s culture LO3 How culture interprets events through its own eyes LO4 How long-past U.S. international policies still affect customer attitudes abroad LO5 The effect of geographic diversity on economic profiles of a country LO6 Why marketers need to be responsive to the geography of a country LO7 The economic effects of controlling population growth and aging populations LO8 Communication infrastructures are an integral part of international commerce 2 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Historical Perspective in Global Business History helps define a nation’s “mission.” how it perceives it neighbors how it sees its place in the world how it sees itself Knowing the history of a nation helps in understanding: attitudes about the role of government and business the relations between managers and the managed the sources of management authority attitudes toward foreign corporations 3 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. History and Contemporary Behavior Historical events between nations influence business and history. Any nation’s business and political culture is shaped by history. James Day Hodgson, former U.S. Labor Secretary and Ambassador to Japan, suggested that anyone doing business in another country should understand at least the encyclopedic version of the people’s past as a matter of politeness, if not persuasion. 4 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 4 China: Vigilant of Foreign Influence First Opium War and the Treaty of Nanjing (1839–1842) British traders forced a gateway into xenophobic China Second Opium War (1857–1860) British and French forces destroyed the summer palace in Beijing Signaled more freedom for foreign traders Allowed Christian evangelism throughout the country Taiping Rebellion (1851–1864) Loss of confidence in the Chinese government 5 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 5 Understanding Japanese Behavior Japanese went through seven centuries under the shogun feudal system isolation before the arrival of Commodore Perry in 1853 threat of domination by colonial powers rise of new social classes humiliation of World War II Confucian philosophy emphasizes the basic virtue of loyalty “of friend to friend, of wife to husband, of child to parent, of brother to brother, but, above all, of subject to lord,” that is, to country. A fundamental premise of Japanese ideology reflects the importance of cooperation for the collective good. 6 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 6 History Is Subjective Subjective perception of its history is crucial in understanding a nation’s business and political culture. In the case of U.S.–Mexico relations, perception of history presents two sides: “Geography has made us neighbors, tradition has made us friends.” –President John F. Kennedy “Geography has made us closer, tradition has made us far apart.”–Mexicans When the U.S. Marines sing with pride of their exploits “from the halls of Montezuma to the shores of Tripoli,” the Mexicans are reminded of how U.S. troops marched to the center of Mexico and extracted as tribute the area that is now known as Arizona, California, New Mexico, and Texas. Exhibit 3.1 gives an overview of the expansion of U.S. territory from 1783. 7 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 7 Exhibit 3.1 Territorial Expansion of United States from 1783 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 8 Source: Oxford Atlas of the World, 18th ed., 2002. Reprinted with permission of Philip Maps. back 8 Manifest Destiny and the Monroe Doctrine The basis of U.S. foreign policy in the 19th and 20th centuries Manifest Destiny means that Americans were a chosen people ordained by God to create a model society. Referred to the territorial expansion of the United States from the Atlantic to the Pacific Justified the U.S. annexation of Texas, Oregon, New Mexico, and California, and U.S. involvement in Cuba, Alaska, Hawaii, and the Philippines The Monroe Doctrine is the cornerstone of U.S. foreign policy, proclaiming that No further European colonization in the New World Abstention of the United States from European political affairs Nonintervention by European governments in the governments of the Western Hemisphere 9 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 9 Roosevelt Corollary An extension of the Monroe Doctrine stating that not only would the United States prohibit non-American intervention in Latin American affairs, but it would also police the area and guarantee that Latin American nations met their international obligations. Using this in: 1905, the Dominican Republic was forced to accept the appointment of an American economic adviser, who quickly became the financial director of the small state 1903, the Panama Canal Zone was acquired from Colombia 1906, Cuba was forced to accept the formation of a provisional government Exhibit 3.2 highlights U.S. interventions in Latin America since 1945. 10 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 10 Source: Oxford Atlas of the World, 18th ed., 2002 Preprinted with permission of Philip Maps Exhibit 3.2 U.S. Intervention in Latin American since 1945 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 11 back 11 Geography and Global Markets Geography The study of Earth’s surface, climate, continents, countries, peoples, industries, and resources Includes an understanding of how a society’s culture and economy are affected as a nation struggles to supply its people’s needs within the limits imposed by its physical makeup Involves the study of: Climate and topography Nature and economic growth Social responsibility and environmental management Resources 12 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 12 Climate and Topography Marketers need to be aware of a country’s climatic features that can affect the uses and functions of products and equipment. Extremes in altitude, humidity, and temperature Products that perform well in temperate zones may deteriorate rapidly or require special cooling or lubrication to function adequately in tropical zones Within even a single national market, climate can be sufficiently diverse to require major adjustments Different seasons between the northern and southern hemispheres also affect global strategies Mountains, oceans, seas, jungles, and other geographical features can pose serious impediments to economic growth and trade 13 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 13 Marveling in Machu Picchu? Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 14 This advertisement provides the only time we have seen a human vomiting to market a product. The product advertised treats altitude sickness. The billboard appears in the Lima, Peru, airport, targeting tourists traveling from sea level to Cuzco and Machu Picchu (pictured in the scenic background). Cuzco, the old Inca capital, is at more than 11,000 feet in altitude, and many foreign tourists visiting there suffer this particular sort of tourista. © John Graham Geography, Nature, and Economic Growth Climate and topography coupled with civil wars, poor environmental policies, and natural disasters push these countries further into economic stagnation. Without irrigation and water management, droughts, floods, and soil erosion afflict them, often leading to creeping deserts. Population increases, deforestation, and overgrazing intensify the impact of drought and lead to malnutrition and ill health. Cyclones cannot be prevented, nor can inadequate rainfall, but means to control their effects are available. 15 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 15 Pollution in Angkor Wat Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 16 Two kinds of pollution in Cambodia. The monkey with the Coke can may seem kind of funny, until you think about it as an eyesore on the steps of the pristine Angkor Wat temple grounds. We’d also guess that caffeine, sugar, sharp-edged aluminum cans, and monkeys don’t mix too well. The land mines still in the ground from a decade’s past war are not funny. Here, Germany is helping clean up the deadly mess. © John Graham © John Graham Social Responsibility and Environmental Management Environmental protection is NOT an optional extra; it is an essential part of the complex process of doing business. Global issue rather than national Poses common threats to humankind and thus cannot be addressed by nations in isolation Ways to stem the tide of pollution and to clean up decades of neglect are special concern to governments and businesses Exhibit 3.3 shows a comparative analysis of several countries’ rates and pledges for the reduction of greenhouse-gas emissions. 17 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 17 Exhibit 3.3 A Comparison of Greenhouse-Gas Emission Rates and Pledges for Reductions Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 18 Source: EuroMonitor International, 2012; Intergovernmental Panel on Climate Change back 18 In São Paulo, motorists have a choice! Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 19 Here in São Paulo, Shell sells two kinds of fuel: alcohol made primarily from sugarcane and gasoline made from dirtier fossil fuels. Flexible-fuel engines in Brazilian cars can burn either kind of fuel or any mixture of the two. Although the price per liter is quite different, so is the mileage per liter. Brazilians make their choice of fuel based on the kind of driving they anticipate, city versus highway. © John Graham Resources A nation’s demand for a particular mineral or energy source does not necessarily coincide with domestic supply. In the underdeveloped world, human labor provides the preponderance of energy. The principal supplements to human energy are animals wood fossil fuel nuclear power to a lesser and more experimental extent the ocean’s tides, geothermal power, and the sun Exhibit 3.4 shows Total World Energy Consumption by Region and Fuel Source © narvikk/Getty Images 20 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 20 Sources: BP Statistics Review of World Energy 2014 and International Energy Outlook 2014, U.S. Department of Energy, both accessed 2015. Exhibit 3.4 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 21 back 21 The Good News China is beginning to curtail its use of coal in favor of renewable resources as their demand is expected to peak before 2020. United States and China recently agreed on targets to cut carbon emissions, spurring the global efforts for cutting greenhouse gases. Countries in Asia and Africa have started using alternative resources for a more sustainable lifestyle. 22 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 22 Use of Alternative Resources (1 of 2) This Masai woman of Tanzania put to good use both cow dung and urine in building her hut, pictured here in her family village (or boma). The semi-nomadic Masai graze their cattle during the day but enclose them within the acacia bush boma at night to protect them from predators. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 23 © John Graham Use of Alternative Resources (2 of 2) Cattle dung, which is used both as farmyard manure and, dried into cakes, as household fuel, is being carried to a local market in India. India’s cattle produce enormous quantities of dung, which some studies suggest provide the equivalent of 10,000 megawatts of energy annually. The Chulha stove described at the beginning of this chapter is designed to safely burn the cattle dung pictured on this fellow’s head. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 24 © John Graham Global Population Recent estimates put world population at more than 7 billion people Expected to grow to about 9.5 billion by 2050 Almost all the projected growth will occur in less developed regions 1.2 billion jobs must be created to accommodate new entrants through 2025 Exhibit 3. 5 shows that 85 percent of the population will be concentrated in less developed regions by 2050. 25 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 25 Exhibit 3.5 World Population by Region, 2014–2050 (millions) Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 26 Source: World Population Prospects, The 2014 Revision, United Nations Economic and Social Affairs, http:// www.unpopulation.org, 2012. Reprinted with permission. back The prerequisites to population control are: Adequate incomes Higher literacy levels Education for women Universal access to healthcare Family planning Improved nutrition Basic change in cultural beliefs Procreation is one of the most culturally sensitive, uncontrollable factors. Controlling Population Growth 27 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Religion and Family Planning Religion plays a major role in attitudes about family size and family planning. Many religions discourage or ban family planning and thus serve as a deterrent to control. Case in Point – NIGERIA The country has a strong Muslim tradition in the north and a strong Roman Catholic tradition in the east, and both faiths favor large families. Most traditional religions in Africa encourage large families; in fact, the principal deity for many is the goddess of land and fertility. Map 7 shows the different religions of the world. Some of those have beliefs hampering the population programs of many governments. 28 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 28 Rural/Urban Migration 1800 3.5% live in urban areas 2015 54% live in urban areas Desire for greater access to sources of education, healthcare, and improved job opportunities Tokyo has already overtaken Mexico City as the largest city on Earth, with a population of 38 million, a jump of almost 8 million since 1990 By 2030, 61% of the world’s population will live in urban areas At least 27 cities will have populations of 10 million or more, 23 of which will be in less-developed regions 29 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 29 Population Decline and Aging Birthrates in western Europe and Japan have been decreasing since the early or mid-1960s More women are choosing career over children Couples are deciding to remain childless Global life expectancy has grown more in the past 50 years than over the previous 5,000 years Today, the over-age-65 group is 14%, and by 2030 this group will reach 25% in 30 different countries The number of “old old” will grow much faster than the “young old” 30 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. U.N. Projections for 2050 People Aged 65 to 84 From 400 million to 1.3 billion (3x increase) 85 years and over From 26 million to 175 million (6x increase) Over 100 years From 135,000 to 2.2 million (16x increase) Exhibit 3.6 illustrates the disparity in aging between more developed and less developed countries. 31 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 31 Source: Adapted from “There Will Soon Be Seven Billion People on the Planet,” National Geographic Magazine, January 2011. p. 51; “A Special Report on Japan,” The Economist, November 10, 2010, p. 4. Exhibit 3.6 Age Density for World and Japan Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 32 back 32 Worker Shortage and Immigration Free flow of immigration will help ameliorate the dual problems of explosive population expansion in less developed countries and worker shortage in industrialized regions To keep the worker-to-retiree ratio from falling: Europe will need 1.4 billion immigrants over the next 50 years Japan and the United States will need 600 million immigrants between now and 2050 Immigration will not help ameliorate the problem though if political and cultural opposition to immigration cannot be overcome. 33 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 33 World Trade Routes Trade routes link people and economies Bind the world together Minimize distance Break natural barriers Curtail lack of resources Bridge fundamental differences As long as one group of people in the world wants something that another group somewhere else has and there is a means of travel between the two, there is trade. 34 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 34 Trading Through the Years 1500 – establishment of trade routes between Europe, Asia, and the Americas The Spanish empire founded the city of Manila in the Philippines to receive its silver-laden galleons bound for China. On the return trip, the ship’s cargo of silk and other Chinese goods would be offloaded in Mexico, carried overland to the Atlantic, and put on Spanish ships to Spain. The same trades routes remain important today and many Latin American countries have strong relationships with Europe, Asia, and the rest of the world. Map 8 shows these traditional trade routes and the burgeoning trade linkage between the developing nations. Land Sea Air Internet 35 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Port of Corinth Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 36 During ancient times the Port of Corinth was a crucial trading center and port serving Greece and its neighbors. The isthmus on which the city is built linked central Greece with the Peloponnesian Peninsula by land before the 6-kilometer canal pictured was completed in 1893. In ancient times ships were unloaded in Corinth and literally dragged across the 6-kilometer isthmus and reloaded, all to save the weeks-long voyage by sail between the Aegean and Ionian Seas. © John Graham The Changing Climate Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 37 Climate change opens up a new trade route that may compete with the Panama Canal, cutting costly days off the travel time between Western Europe and Asia. Here a German commercial vessel follows a Russian icebreaker through the proverbial Northwest Passage. Map 2 shows the changing world climate and how it opens up new avenues for foreign trade. © Education Images/UIG/Getty Images Communication Links Telegraph Telephone Television Computer Mobile Phones Satellite Internet Communication has evolved. Each revolution in technology has had a profound effect on human conditions, economic growth, and the manner in which commerce functions. Map 5 illustrates the importance of fiber optic cable and satellites in providing global communications. 38 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 38 Summary A prospective international marketer should be reasonably familiar with the world, its climate, and topographic differences. Geographic hurdles must be recognized as having a direct effect on marketing and the related activities of communications and distribution. Many of the peculiarities of a country (i.e., peculiar to the foreigner) would be better understood and anticipated if its history and geography were studied more closely. The study of history and geography is needed to provide the marketer with an understanding of why a country has developed as it has, rather than as a guide for adapting marketing plans. History and geography are two of the environments of foreign marketing that should be thoroughly understood and that must be included in foreign marketing plans to a degree commensurate with their influence on marketing effort. 39 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 39 Chapter 4 Cultural Dynamics in Assessing Global Markets Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Learning Objectives LO1 The importance of culture to an international marketer LO2 The origins of culture LO3 The elements of culture LO4 The impact of cultural borrowing LO5 The strategy of planned change and its consequences 2 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Culture’s Pervasive Impact Culture affects every part of our lives How we spend money How we consume How we sleep 3 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 3 Culture and Birthrates The birthrate tables in Exhibit 4.1 show the gradual decline beginning in the 1960s. Birthrate spikes in Singapore in 1976 and 1988 are not a matter of random fluctuation. In Chinese cultures, being born in the Year of the Dragon is considered good luck. A sudden and substantial decline in fertility in Japan in 1966 reflects abstinence, abortions, and birth certificate fudging. The Japanese believe that women born in the Year of the Fire Horse will lead unhappy lives and perhaps murder their husbands. 4 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 4 Exhibit 4.1 Birthrates (per 1000 women) Source: World Bank, World Development Indicators by International Bank for Reconstruction and Development, 2012. Copyright © 2012 by World Bank. Reproduced with permission of World Bank via Copyright Clearance Center. 5 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. back 5 Culture and Consumption Exhibit 4.2 illustrates culture’s influence on consumption patterns The Dutch are the champion consumers of cut flowers. The Germans and British love their chocolates. The Japanese and Spaniards prefer seafood. The Italians love pasta. The French and Italians consume wine. The Japanese are the highest consumers of tobacco. 6 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 6 Exhibit 4.2 Patterns of Consumption (annual per capita) Country Cut Flowers (€) Chocolate (kg) Fish and Seafood (kg) Dried Pasta (kg) Wine (liters) Tobacco (sticks) 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 Kingdom 38 8.0 11.3 4.7 21.2 568 Japan 46 1.1 32.1 8.0 7.2 1490 United States 32 4.4 5.0 2.2 9.9 874 Source: CBI Marketing Information Data Base, “CBI Tradewatch for Cut Flowers and Foliage,” http://www.cbi.eu, 2012; and 2015. EuroMonitor International 7 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. back 7 Culture and Disease Exhibit 4.3 shows the consequence of consumption patterns across the countries listed. The Germans have some of the highest consumption levels of flowers, candy, and wine, but the lowest birthrate among the six European countries. Perhaps the Japanese diet’s emphasis on fish yields them the longest life expectancy. The diabetes mellitus death rates have declined in five of the countries. Japan shows a high incidence of stomach cancer. 8 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 8 Exhibit 4.3 Consequences of Consumption Country Birthrates (per 1,000) Life Expectancy Ischemic Heart Disease Diabetes Mellitus Lung Cancer Stomach Cancer France 13.1 82.2 58.6 18.3 52.2 7.8 Germany 8.6 81.2 161.3 30.8 56.7 12.6 Italy 8.9 82.6 120.2 35.2 60.6 16.8 Netherlands 10.7 81.3 57.8 16.4 64.8 8.5 Spain 9.5 82.6 77.6 22.4 48.0 12.5 United Kingdom 12.8 81.2 121.0 9.7 56.4 7.7 Japan 7.9 83.3 62.1 11.7 56.5 39.4 United States 12.7 78.9 120.1 22.3 51.6 3.7 Source: EuroMonitor 2015. Death Rate per 100,000 9 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. back 9 The Traditional Definition of Culture 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 Resides in the individual’s mind Recognizes that large collectives of people can be like-minded 10 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Exhibit 4.4 Origins, Elements, and Consequences of Culture 11 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 11 Origins of Culture: Geography Includes climate, topography, flora, fauna, and microbiology Influences history, technology, and economics Social institutions Boy-to-girl birth ratio Ways of thinking 12 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 12 Origins of Culture: History The impact of specific events in history can be seen reflected in technology, social institutions, cultural values, and even consumer behavior. Much of American trade policy has depended on the happenstance of tobacco being the original source of the Virginia colony’s economic survival in the 1600s. The Declaration of Independence, and thereby Americans’ values and institutions, was fundamentally influenced by the coincident 1776 publication of Adam Smith’s The Wealth of Nations. The military conflicts in the Middle East in 2003 bred new cola brands as alternatives to Coca-Cola—Mecca Cola, Muslim Up, Arab Cola, and ColaTurka. 13 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 13 Origins of Culture: The Political Economy For most of the 20th century, four approaches to governance competed for world dominance: Colonialism Casualty of World War II Fascism Fell in 1945 Communism Crumbled in the 1990s Democracy/free enterprise 14 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Origins of Culture: Technology The effect of birth control techniques Women have careers. Half the marketing majors in the United States are women. 10 percent of the crews on U.S. Navy ships are women. Men spend more time with kids. 15 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 15 Exhibit 4.5 Comparison of Healthcare Systems Source: Michelle Andrews, “Health, The Cost of Care,” National Geographic Magazine, December 2009. Oliver Uberti/National Geographic Stock. Reprinted with permission. 16 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Origins of Culture: Social Institutions Includes family, religion, school, the media, government, and corporations Aspects that are interpreted differently within each culture: The positions of men and women in society The family Social classes Group behavior Age groups How societies define decency and civility 17 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 17 Social Institutions: Family The technology of birth control has tremendously affected families and reduced family sizes around the world. Family forms and functions also vary substantially around the world, even around the country. The ratio of male to female children is affected by culture (as well as latitude). All these differences lead directly to differences in how children think and behave. 18 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 18 Social Institutions: Religion The impact of religion on the value systems of a society and the effect of value systems on marketing must not be underestimated. In most cultures, the first social institution infants are exposed to outside the home takes the form of a church, mosque, shrine, or synagogue. The influence of religion is often quite strong, so marketers with little or no understanding of a religion may readily offend deeply. 19 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 19 Religious Pilgrims Every Muslim is enjoined to make the hajj, or pilgrimage, to Mecca, once in his or her lifetime if physically able. Millions of faithful Muslims come from all over the world annually to participate in what is one of the largest ritual meetings on Earth. Each day at sunrise and sunset, pilgrims crowd the Ghats (steps to the holy river/Mother Ganga/the River Ganges) to immerse themselves in the water and perform puja. The 55-day festival attracts some 60–80 million pilgrims. © Mahmoud Mahmoud/AFP/Getty Images © John Graham 20 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 20 Social Institutions: School The literacy rate of a country is a potent force in economic development. According to the World Bank, no country has been successful economically with less than 50 percent literacy. When countries have invested in education, the economic rewards have been substantial. Communicating with a literate market is much easier than communicating with one in which the marketer must depend on symbols and pictures. 21 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Children reading books rented from a street vendor In the United States, kids attend school 180 days per year; in China, they attend 251 days—that’s six days a week. There’s a great thirst for the written word in China. © Cary Wolinsky/Trillium Studios 22 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Social Institutions: The Media The relative performance of educational systems (Exhibit 4.6) is seen as a leading indicator of economic competitiveness. Media time (TV and increasingly the Internet and mobile phones) has replaced family time. American kids spend only 180 days per year in school. Chinese, Japanese, and German kids spend around 220 days per year in school. 23 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 23 Exhibit 4.6 OECD Program for International Student Assessment (PISA) Selected Scores and Rankings for 15-Year-Olds, 2013 Source: OECD, PISA, http://www. economist.com/node/21529014, 2015. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. back Social Institutions: Government Most often governments try to influence the thinking and behaviors of adult citizens for the citizens’ “own good.” In some countries, the government owns the media and regularly uses propaganda to form “favorable” public opinions. Other countries prefer no separation of church and state. Governments also affect ways of thinking indirectly, through their support of religious organizations and schools. Governments influence thinking and behavior through the passage, promulgation, promotion, and enforcement of a variety of laws affecting consumption and marketing behaviors. 25 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 25 Social Institutions: Corporations Most innovations are introduced to societies by companies, many times by multinational companies. Multinational companies efficiently distribute new products and services based on new ideas from around the word. As a result: Cultures change. New ways of thinking are stimulated. 26 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 26 Elements of Culture The five elements of culture Values Rituals Symbols Beliefs Thought processes 27 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 27 Cultural Values Hofstede, who studied over 90,000 people in 66 countries, found that the cultures differed along four primary dimensions. Individualism/Collective Index (IDV), which focuses on self-orientation Power Distance Index (PDI), which focuses on authority orientation Uncertainty Avoidance Index (UAI), which focuses on risk orientation Masculinity/Femininity Index (MAS), which focuses on assertiveness and achievement 28 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 28 Individualism/Collective Index Refers to the preference for behavior that promotes one’s self-interest High IDV cultures reflect an “I” mentality and tend to reward and accept individual initiative Low IDV cultures reflect a “we” mentality and generally subjugate the individual to the group 29 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 29 Power Distance Index Measures the tolerance of social inequality, that is, power inequality between superiors and subordinates within a social system. High PDI cultures tend to be hierarchical, with members citing social roles, manipulation, and inheritance as sources of power and social status. Low PDI cultures tend to value equality and cite knowledge and achievement as sources of power. 30 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 30 Uncertainty Avoidance Index Measures the tolerance of uncertainty and ambiguity among members of a society High UAI cultures are highly intolerant of ambiguity, experience anxiety and stress, are concerned with security and rule following, and accord a high level of authority to rules as a means of avoiding risk. Low UAI cultures are associated with a low level of anxiety and stress, a tolerance of deviance and dissent, and a willingness to take risks. 31 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 31 Cultural Values and Consumer Behavior A variety of studies (Exhibit 4.7) have shown cultural values can predict such consumer behaviors as word-of-mouth communications impulsive buying responses of both surprise and disgust the propensity to complain responses to service failures movie preferences the influence of perceptions of product creativity 32 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 32 Exhibit 4.7 Hofstede’s Indexes, Language, and Linguistic Distance Source: Geert Hofstede, Gert Jan Hofstede, and Michael Minkov, Culture 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. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. back Rituals Patterns of behavior and interaction that are learned and repeated Marriage ceremonies Funerals Graduation rituals Dinner at a restaurant Visit to a department store Grooming before heading off to work Coordinate everyday interactions and special occasions Let people know what to expect 34 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 34 Symbols Anthropologist Edward T. Hall tells us that culture is communication. Learning to interpret correctly the symbols that surround us is a key part of socialization. Aesthetics includes arts, folklore, music, drama, dance, dress, and cosmetics. Customers everywhere respond to images, myths, and metaphors that help them define their personal and national identities and relationships within a context of culture and product benefits. Exhibit 4.8 lists the metaphors Martin Gannon identified to represent cultures around the world. 35 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 35 Language For some around the world, language is itself thought of as a social institution, often with political importance. Linguistic distance determines differences in values across countries and the amount of trade between countries and demonstrates a direct influence of language on cultural values, expectations, and even conceptions of time. Bilingualism: Customers process advertisements differently if heard in their native versus second language. Biculturalism: Customers can switch identities and perception frames. 36 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 36 Exhibit 4.8 Metaphorical Journeys through 23 Nations The Thai Kingdom The Traditional British House The Japanese Garden The Malaysian Balik Kampung India: The Dance of Shiva The Nigerian Marketplace Bedouin Jewelry and Saudi Arabia The Israeli Kibbutzim and Moshavim The Turkish Coffeehouse The Italian Opera The Brazilian Samba Belgian Lace The Polish Village Church The Mexican Fiesta Kimchi and Korea The Russian Ballet The German Symphony The Spanish Bullfight The Swedish Stuga The Portuguese Bullfight Irish Conversations The Chinese Family Altar American Football Source: From Martin J. Gannon, and Rajnandini K. Pillai Understanding Global Cultures, Metaphorical Journeys through 31 Nations, 5th ed. (Thousand Oaks, CA: Sage, 2012). Reprinted by permission of Sage Publications, Inc. via Copyright Clearance Center. 37 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. back Beliefs Beliefs, which mainly stem from religious training, vary from culture to culture. The western aversion to the number 13 Japanese concern about Year of the Fire Horse The Chinese practice of Feng Shui Myths, beliefs, superstitions, or other cultural beliefs are an important part of the cultural fabric of a society and influence all manner of behavior. 38 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 38 Russian Orthodox priests blessing a Niva assembly line 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 39 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 39 Thought Processes Culture seems to matter more in snap judgments than in longer deliberations. Studies demonstrate a deeper impact of culture on sensory perceptions themselves, particularly aromas. Newer products and services and more extensive programs involving the entire cycle, from product development through promotion to final selling, require greater consideration of cultural factors. 40 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 40 Cultural Sensitivity and Tolerance Successful foreign marketing begins with cultural sensitivity Being attuned to the nuances of culture A new culture can be viewed objectively, evaluated, and appreciated Being culturally sensitive will reduce conflict and improve communications and thereby increase success in collaborative relationships. 41 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 41 The Paradox in Cultural Change Culture is dynamic in nature. It is a living process. Culture is conservative and resists change. Culture is the accumulation of a series of the best solutions to problems faced in common by members of a given society. Why do societies change? War Natural disaster 42 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Cultural Borrowing Cultural borrowing is a responsible effort to learn from others’ cultural ways in the quest for better solutions to a society’s particular problems. Regardless of how or where solutions are found, once a particular pattern of action is judged acceptable by society, it becomes the approved way and is passed on and taught as part of the group’s cultural heritage. Culture is learned; societies pass on to succeeding generations solutions to problems, constantly building on and expanding the culture so that a wide range of behavior is possible. 43 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 43 Similarities: An Illusion A common language does not guarantee a similar interpretation of words or phrases. Americans and British have a harder time understanding each other because of their apparent and assumed cultural similarities. The growing economic unification of Europe has fostered a tendency to speak of the “European consumer.” Marketers must assess each country thoroughly in terms of the proposed products or services and never rely on an often-used axiom that if it sells in one country, it will surely sell in another. 44 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 44 Resistance to Change Consumers in different cultures display differing resistance. Observations indicate that those innovations most readily accepted are those holding the greatest interest within the society and those least disruptive. Historically, most cultural borrowing and the resulting change has occurred without a deliberate plan, but increasingly, changes are occurring in societies as a result of purposeful attempts by some acceptable institution to bring about change, that is, planned change. 45 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 45 Mom in Mumbai Culture does change—dress and even names of major cities! Mumbai was formerly called Bombay. However, according to a local resident, everyone still calls it Bombay despite the official alteration. © Joe McNally/Getty Images 46 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 46 Planned and Unplanned Cultural Change The first step in bringing about planned change in a society is to determine which cultural factors conflict with an innovation, thus creating resistance to its acceptance. The next step is an effort to change those factors from obstacles to acceptance into stimulants for change. 47 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Introducing Innovation Marketers have two options when introducing an innovation to a culture. They can wait for changes to occur. Hopeful waiting for eventual cultural changes that prove their innovations of value to the culture They can spur change. Introducing an idea or product and deliberately setting about to overcome resistance and to cause change that accelerates the rate of acceptance 48 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Cultural Congruence Not all marketing efforts require change to be accepted. 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. 49 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 49 Summary Marketers have only limited control over the cultural environment. New environments influenced by elements unfamiliar and sometimes unrecognizable to the marketer complicate the task of planning marketing strategies. Of all the tools the foreign marketer must have, those that help generate empathy for another culture are, perhaps, the most valuable. 50 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.