Learning objectives. Ethics and Culture The Sociocultural Environment. Learning objectives (2) The Meaning of Culture The Johari Window

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1 Learning objectives Ethics and Culture The Sociocultural Environment Develop an understanding of what culture is and how the main components of a culture impact upon a culture s way of life Explain the intimate relationship between cultural influences, consumer needs and consumer behaviour Discuss the various approaches to conducting cross-cultural analysis Reading: Muhlbacher Ch 5 Lee and Carter Ch 4 Learning objectives (2) Self-reference criterion (SRC) Discuss the strengths and weaknesses of Hofstede s model Discuss whether the world s cultures are converging or diverging Refers to one s unconscious reference to one s own cultural values when attempting to understand another culture? Approaches to eliminate SRC Define problem or goal in terms of home country culture, traits, habits, and norms Define problems or goals in terms of the foreign culture Isolate the SRC influence and examine it carefully to see how it complicates the problem Redefine the problem without the SRC influence and solve for the foreign market situation The Meaning of Culture The Johari Window Things they see Things they do not see Things I see Open for Discussion Their Blind Spot My blind spot My Blind Spot Insight Shared Blind Spot Unconscious (Source adapted from S Jourard (1964) The transparent self, ( Nostrand Reinhold, Princeton N.J) 1

2 Culture Culture is the collective programming of the mind which distinguishes the members of one human group from another. It is the learned ways in which a society understands, decides and communicates. Hofstede (1980) More Definitions A distinctive pattern of values and beliefs which are characteristic of a particular society or sub-group within that society. Mullins (2005) a set of beliefs or standards, shared by a group of people, which helps the individual decide what is, what can be, how to feel, what to do and how to go about doing it. Goodenough (1940) Characteristics of culture The visible and invisible parts of culture Culture is learned Culture is interrelated Culture is shared A Cultural Framework - Terpstra and Sarathy (2000) Language Religion Values and Attitudes National culture Layers of culture Business/industry culture Aesthetics Cultures Education Company culture Individual behaviour/ decision maker Law and Politics Technology and Material Culture Social Organisation 2

3 Understanding Culture and Consumer Behaviour Approaches to the Study of Culture Maslow (1970): Hierarchy of Needs Lee (1966): Self Reference Criteria Hall s (1977): High and Low Context Cultures Hofstede (2001, 1997): The four dimensions of power distance, individualism and masculinity and uncertainty avoidance Hall s Communication Context Comparing low- and high-context cultures (1) Low-context cultures High-context cultures Communication Explicit, direct Implicit, indirect Sense of self and space Informal handshakes Formal hugs, bows, and handshakes Short video : Comparing low- and high-context cultures (2) Comparing low- and high-context cultures (3) Dress and appearance Varies widely, dress for success Indication of position in society, religious rule Time consciousness Linear, exact, promptness is valued, time = money Elastic, relative, time = relationships Food and eating habits Eating is a necessity, fast food Eating is social event Family and friends Nuclear family, self-oriented, value youth Extended family, other oriented, loyalty 3

4 Comparing low- and high-context cultures (4) Comparing low- and high-context cultures (5) Values and norms Independence, confrontation of conflict Group conformity, harmony Mental process and learning Linear, logical, sequential, problem solving Lateral, holistic, accepting life s difficulties Beliefs and attitudes Egalitarian, challenge authority, gender equity Hierarchical, respect for authority, gender roles Business/ work habits Deal oriented, rewards based on achievement Relationship oriented, rewards based on seniority The contextual continuum of differing cultures Hofestede Dimensions video (Acknowledgement BBB Marketing) The role of language Language is important in information gathering and evaluation efforts Language provides access to local society Language capability is important to company communications Language enables the interpretation of context Sensuality and touch culture in Saudi Arabian versus European advertising 4

5 Hofstede s model of national cultures Cultural similarities and differences Power distance Uncertainty avoidance Individualism/ Collectivism Masculinity / Femininity Time perspective or Confucian Dynamism Hofstede s (1990) cultural distance framework: Power distance (authority) Uncertainty avoidance (control of aggression and emotional expression) Individualism vs. Collectivism (relationship between individual and group) Masculinity vs. Femininity (social implications of self-discipline) Long-term orientation (emphasized duration of return) (Source: Hofstede, 1990; Hickson & Pugh, 2001; Hofstede & Hofstede, 2004) Cultural similarities and differences Convergence of world s cultures (Source: Hofstede, 1990; Hickson & Pugh, 2001) Source: Globalisation Debate Globalization seems inevitable, but it is not without controversy. The debate on globalization will continue as people try to make sure that the benefits of global trade outweigh the costs for all countries, not just a select few Video 15mins Seminar Activity Cultural Environment - Video and Questions Open the following website watch the video and answer the questions ex.html Questions: 1. Language can be a barrier to effective communication. What steps can a company take to minimize language barriers across borders? 2. Cultural differences need to be considered when communicating across borders. What characteristics of a country's culture need to be researched to ensure business success across borders? 3. The video mentions that some companies have trusted contacts in a country they wish to do business with, while other companies rely on a significant amount of research to learn more about culture characteristics, etc. What method do you feel is most effective for gathering useful, accurate, and up-to-date information regarding cultural issues? 5

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