Intercultural Experiences on Purchasing and Consumer Habits in Different Countries www.inctrainconsult.eu Ich hab' was vom Löwen.
Lecturer INC Training & Consulting, s.r.o. Intercultural - Networks - Change IČO 44 361 602 DIČ 2022685775 DI Elisabeth Alder-Wuerrer Managing Director Trenčianska 53/B Bratislava 821 09 Slovakia Phone: +421 948 600 119 Mobile: + 43 664 39 069 22 e mail: office@inctrainconsult.eu web: http://www.inctrainconsult.eu www.inctrainconsult.eu 2
Why should managers be interested in cultural differences? Right products for the different markets Right marketing and advertisement Successful relations with employees, bosses, partners and customers www.inctrainconsult.eu 3
Content Culture Examples Global Symbols Examples Hofstede s Dimensions of Culture www.inctrainconsult.eu 4
Culture is everything manmade - there are 3 levels What do you see or hear? Actions, looks, clothes, space, relations, jokes, stories, tools, rituals, structures of communication, language, rewards, punishments,.. How do people explain things? values that people express, when the are asked to explain their culture. What is the undisputed basic of thinking? social natural laws basic concepts of living, which are not doubted by the people. Very often people are not aware of the fact, that there are alternative ways to think, evaluate and act. You learn about their existence, if you compare your culture to other cultures. www.inctrainconsult.eu 5
social natural laws Reality and truth How do you proof, that something is true? Dogma Specialist Process debate, Testing Science Time Space Human nature Relations How to interact with you superior What can be expected? Relationship group/single person www.inctrainconsult.eu 6
Way to Explore all Three Levels of Culture What you can see or hear? What? How? Look and listen carefully without categorizing - just gather as much information as possible. Like a scientist who learns about a natural phenomena. (It is fun to do it for your own culture too.) How do people explain things? Why? Ask politely for the why explaining what you see listen and ask further till you think you understand. What is the undisputed basic of thinking? social natural laws are the hardest to find. That can only be done in comparison to another culture. The best way is a dialogue with people of the other culture. Be aware you will learn at least as much about your own culture s social natural laws. i.e. what is fair, in which aspects men and women are equal, what is success, what is polite, what is punctual, www.inctrainconsult.eu 7
Cultures are not only National Cultures Country Language Roots Profession Religion Region Gender Family/Tribe Class Organization/Company. www.inctrainconsult.eu 8
What forms a culture? Culture includes all the successful ways to cope with problems and challenges from the past and it changes mostly slowly adapting to new challenges. History of the Country History of the Group/Family Culture New Challenges Economic Situation New Experiences www.inctrainconsult.eu 9
Where to keep the butter and where to keep the bread in UK? www.inctrainconsult.eu 10
Why do Italians have so many mobile phones? www.inctrainconsult.eu 11
Where would you discuss business outside the office? Hotel meeting room Airport Lunch Dinner Coffee House Night Club In your house or flat... www.inctrainconsult.eu 12
Why is advertisement for insurance so dull in Switzerland? www.inctrainconsult.eu 13
The older the product category the stronger the difference Food Beauty Transportation Mail Newspaper reading /Radio www.inctrainconsult.eu 14
Why do Austrians not buy Plätzchen even if the Plätzchen are tasty? www.inctrainconsult.eu 15
What colors or patterns are worn by whom? www.inctrainconsult.eu 16
Global symbols Symbols are situated at the top of the culture pyramid which is what you can see or hear The same symbols like elegant cars, the latest mobile or the Prada costume are used in many different countries. Therefore they are called global symbols. BUT that does not tell you that the lower parts of the culture pyramid are the same. People use these global symbols as instruments to express their own values. www.inctrainconsult.eu 17
Shopping in the Middle East Bargaining Who will spend more money in a trendy shop for underwear in Abu Dhabi? www.inctrainconsult.eu 18
Car, washing machine, TV, mobile what are you buying after that? In Germany? In Italy? In Slovak Republic? www.inctrainconsult.eu 19
Some more examples Using public transport in Prague and Vienna the differences for me Public Transport US Slovak Republic Austria Mail Abu Dhabi US Slovak Republic Hairdresser and cosmetics England Suits of Iraqi delegates Sour cream and bones Kotany spices vs. Curry Dining out. www.inctrainconsult.eu 20
There is nobody like the American or the Slovakian wide ranges in the countries Each attribute/characteristic is differently distributed among people in different countries. When studies mention the country they mean the average but you will meet individuals. www.inctrainconsult.eu 21
Which dimensions can help to describe cultures? Hofstedes dimensions Power Distance Index Individualism Masculinity Uncertainty Avoidance Index Long-Term Orientation www.inctrainconsult.eu 22
Power Distance Index (PDI) that is the extent to which the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed unequally. PDI Slovak Republic 104 Russia 93 Czech Republic 57 Hungary 46 US 40 Germany 35 Austria 11 www.inctrainconsult.eu 23
Individualism (IDV) IDV IDV on the one side versus its opposite, collectivism, that is the degree to which individuals are inte-grated into groups. US 91 Hungary 80 Germany 67 Czech Republic 58 Austria 55 Slovak Republic 52 Russia 39 www.inctrainconsult.eu 24
Masculinity (MAS) The assertive pole has been called 'masculine' and the modest, caring pole 'feminine'. MAS Slovak Republic 110 Hungary 88 Austria 79 Germany 66 US 62 Czech Republic 57 Russia 36 www.inctrainconsult.eu 25
Uncertainty Avoidance Index (UAI) It indicates to what extent a culture programs its members to feel either uncomfortable or comfortable in unstructured situations. Unstructured situations are novel, unknown, surprising, different from usual. Uncertainty avoiding cultures try to minimize the possibility of such situations by strict laws and rules. UAI Russia 95 Hungary 82 Czech Republic 74 Austria 70 Germany 65 Slovak Republic 51 US 46 www.inctrainconsult.eu 26
Long-Term Orientation (LTO) LTO versus short-term orientation: this dimension was found in a study using a questionnaire designed by Chinese scholars. Values associated with Long Term Orientation are thrift (saving) and perseverance (persistency) LTO China 118 Hungary 50 Slovak Republic 38 Austria 31 Germany 31 US 29 Czech Republic 13 www.inctrainconsult.eu 27
It is the average you are interested in advertisment and selling strategy 50% of the differences in consumption between countries can be explained by GDP Hofstedes culture dimensions there stay 50% to observe, question, reflect and analyze. Sources: Geert Hofstede & Gert Jan Hofstede, Cultures and Organizations software of the mind Marieke de Mooij, Consumer Behaviour and Culture Consequences for Global Marketing and Advertising www.inctrainconsult.eu 28
Thank You! www.inctrainconsult.eu 29