Onkvisit S., Shaw J. International Marketing: Analysis and Strategy

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Language of negotiation

Negotiation styles vary greatly. Hispanic business-

people are surprised by Anglos’ resistance to bar-

gaining. In the USA, a lack of eye contact is usually

viewed as an indication that something is not quite

right, but the cultural style of communication nego-

tiation in Japan requires a great deal less eye contact

between speakers. Furthermore, in Japan, periods

of silence are common during interactions, and a

response of silence should not come as a surprise.

Americans should learn to be more comfortable

with this negotiating tactic, instead of reacting by

quickly offering either more concessions or new

arguments.

Americans’ straightforward style may prove a

handicap in business negotiations. Chinese negotia-

tions are generally tough-minded, well prepared,

and under no signiﬁcant time constraints. They

are prepared to use various tactics to secure the

best deal. While proclaiming ignorance of foreign

technology and foreign business practices, these

negotiators may actually be willing to play off one

competitor against another. In China, foreigners

should expect repetitious and time-consuming

negotiations. Concessions from the Chinese may not

come until Western negotiators, after many days of

unproductive negotiations, are ready to give up and

head for the airport. Only then will they be called

back for further negotiations.

One study found that Chinese executives were

more likely than Canadian executives to avoid con-

ﬂicts. This is understandable because collectivism

and group harmony are emphasized in traditional

Confucianism and in contemporary socialism.When

Chinese managers had to deal with conﬂicts, how-

ever, they were more likely to use negative resolu-

tion strategies (i.e., discontinuing or withdrawing

negotiation).

Another study involved simulated

intracultural, one-on-one, buyer–seller negotia-

tions.The ﬁndings indicated that Soviet negotiators

achieved higher individual proﬁts when employing a

competitive approach but that American partici-

pants achieved higher proﬁts when employing a

more cooperative approach in negotiations.

Language of religion

In search of spiritual guidance, people turn to reli-

gion. The major religions are familiar to everyone.

In some parts of the world, animism (the belief in

the existence of such things as souls, spirits,

demons, magic, and witchcraft) may be considered

to be a form of religion. Regardless of the religion

involved, it is safe to say, speciﬁc religious protocols

are observed by the faithful (e.g., having evil spirits

exorcised).

Religion affects people in many ways because it

prescribes proper behavior, including work habits.

The Protestant work ethic encourages Christians to

glorify God by working hard and being thrifty.Thus

many Europeans and Americans believe that work is

a moral virtue and disapprove of the idle. Likewise,

Islam exalts work, and idleness is seen as a sign of a

person’s lack of faith in the religion.As such, anyone

who is able to work is not allowed to become vol-

untarily idle. Some religions, however, seem to

guide people in the opposite direction. In Hinduism

and Buddhism, the emphasis is on the elimination of

desires because desires cause worrying. Not striving

brings peace, and a person at peace does not suffer.

Marketers must pay attention to religious activ-

ities. Buddhists observe the days associated with the

birth and death of Buddha and, to a lesser extent,

those days of full moon, half moon, and no moon.

The entire month of Ramadan is a religious holiday

for Muslims, who fast from dawn to dusk each day

during that month. Therefore, workers must use

part of normal sleeping time for eating.Work pro-

ductivity can be greatly affected. Furthermore,

Muslims pray ﬁve times a day, and they stop all work

to do so.

There is no doubt that international marketing is

affected by religious beliefs. Saudi Arabian publica-

tions will not accept any advertisement that has

a picture of a woman in it. Sleeveless dresses are

considered offensive to Islamic rules, and all adver-

tisements that include pictures of such dresses

are banned in Malaysia. Also, religious require-

ments may prohibit consumption of certain items.

Religious taboos include pork and alcohol for

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Muslims, beef for Hindus, and pork and shellﬁsh for

Jews, and once included meat on Friday for Roman

Catholics.

Language of superstition

In the modern world, it is easy to dismiss supersti-

tion as nonsense. Yet superstitious beliefs play a

crucial role in explaining personal as well as busi-

ness behavior in all parts of the world. In Asia,

fortune telling, palm reading, dream analysis and

interpretation, phases of the moon, birthdate, and

handwriting analysis, communication with ghosts,

and many other beliefs are part of everyday life.

Physical appearance is often used to judge a person’s

character. Long ears, for example, supposedly

belong to those who have good fortune.

Some Westerners may be amused to see foreign-

ers taking superstition so seriously. They may not

place much credence in animal sacriﬁces or other

ceremonial means used to get rid of evil spirits, but

they should realize that their own beliefs and super-

stitions are just as silly when viewed by foreigners.

Americans knock on wood, cross their ﬁngers, and

feel uneasy when a black cat crosses their path.They

do not want to walk under ladders and may be extra

careful on Friday the thirteenth.

It must be remembered that people everywhere

are human beings with emotions and idiosyncrasies.

They cannot be expected to always behave in a ratio-

nal and objective manner. In a number of countries

(e.g., Colombia), it is not uncommon for priests or

monks to bless cars with holy water.While the prac-

tice may not have scientiﬁc value, it does give

owners and drivers peace of mind. Instead of belit-

tling or making fun of superstition, one is prudent

to show respect for local customs and beliefs. A

show of respect will go a long way in gaining friend-

ship and cooperation from local people.

Language of color

Flowers and colors have their own language and

meaning.Preferences for particular colors are deter-

mined by culture. Because of custom and taboo,

some colors are viewed negatively.A color deemed

positive and acceptable in one culture may be inap-

propriate in another. According to FTD and Inter-

ﬂora Inc. which send ﬂowers by wire to some 140

countries, the color red is used to cast spells in

Mexico, and a white bouquet is necessary to lift the

spell. In Spain, red roses are associated more with

lust than with love. In France, a dozen as well as

thirteen yellow roses are inappropriate: yellow sug-

gests inﬁdelity, and cut ﬂowers by the dozen or any

other even number are unlucky. Both the color

yellow and the number thirteen are also inappropri-

ate in Latin America where yellow is associated with

death rather than with inﬁdelity. In Italy, roses serve

as tokens of affection when they are sent in odd

numbers to women. In Japan, on the other hand,

men are on the receiving end of Valentine’s Day.

Since a sixteen-petal chrysanthemum is used in the

imperial family crest, any other use is disrespectful.

Swiss women do not want ﬂowers with strong

scents.To Swedish women,a cactus signals the end of

a romance.

Other than ﬂowers, colors by themselves have

special meaning.Yellow is associated with disease in

Africa.White is an appropriate color for a wedding

gown in the USA, yet white is used alternately with

black for mourning in India, Hong Kong, and Japan.

Americans see red when they are angry, but red is

a lucky color for the Chinese. It is customary for the

Chinese to put money in red envelopes as gifts for

employees and children on special occasions, espe-

cially on the Chinese New Year’s Day.

Using the Luscher color test, a group of

researchers asked Chinese, Korean, Japanese, and

American respondents about which color they

associated with certain words (e.g., expensive,

happy, love, and dependable), countries (e.g., Italy,

France), institutions (e.g., restaurants, theaters),

and product packages (e.g., soft drink label, box of

headache remedy). Some colors appear to show

cross-cultural consistency. Such colors as purple and

gray, however, hold opposite meanings in different

cultures.

Marketing managers should be careful when

using certain colors since their products because

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using the wrong color can make or break a deal. A

manufacturer of medical systems lost a large order

for CAT (computerized axial tomography) scanners

in one Middle Eastern country due to the whiteness

of the equipment. Parker’s white pens did not fare

well in China, where white is the color of mourn-

ing. Its green pens suffered the same fate in India,

where green is associated with bad luck.

Language of gifts

Cultural attitudes concerning the presentation

of gifts vary greatly across the globe. Because of

varying perceptions of gifts and their appropriate-

ness, good intentions can turn into surprises and

even embarrassment when particular gifts violate

cultural beliefs. Apparel is not commonly given in

the USA, where it is considered too personal a gift,

nor in Russia, where it is considered a bribe. In

France, Russia, Germany, Taiwan, and Thailand,

giving a knife as a present is inappropriate because

it may “cut” or “wound” a friendship. Although

improper to be given, cutlery can be sold – for a

small sum of money as token payment.

Handkerchiefs should never be given in Thailand,

Italy,Venezuela, and Brazil because such a gift is akin

to wishing a tragedy upon the recipient, implying

that something distressing will happen in the near

future which will necessitate the use of a handker-

chief to wipe away the tears. Prudence requires one

not to give potted plants to the sick in Japan because

the illness may become more severe by taking

deeper root. It is also wise to avoid giving four of

anything or any item with four in the name to the

Chinese and Japanese because the word sounds like

si in these languages and means death. Likewise,

clocks are a poor choice of gift in China and Taiwan,

because the word for a clock sounds like the word

for “terminate” or for a pre-funeral visit to the dying.

Many Americans think of gift giving as a waste of

time, yet they embrace Christmas gift buying and

giving in spite of the excessive commercial over-

tones. In many parts of the world, a gift is a symbol

of thoughtfulness or consideration, and one does

not visit another person’s home empty-handed. In

Japan, the practice is extended to Japanese ofﬁcials’

overseas trips.This old tradition requires the prime

minister to carry a gift (miyage) to the country

being visited. The gift may take the form of trade

policy concessions.

Gift giving is, to a certain extent, an art. Presents

are given in Europe only after a personal relation-

ship has developed, but they are given in Japan when

people ﬁrst meet as well as when they part. In

Japan, every act of generosity, no matter how small,

must be paid back. In addition, form is more

important than content.As a result, wrapping (tsut-

sumi) has been an art in Japan for over ten centuries.

Special rules apply to wrapping particular items,

and the occasion dictates materials and style. An

American businessperson should keep in mind that

a gift is often most conspicuous by its absence.

Therefore, a cardinal rule in international gift giving

is that, when in doubt, one should study closely the

customs of the society.

It is useful to distinguish among the parties that

receive gifts: good friends, just friends, hi/bye

friends, and romantic other. These parties can be

arranged on the gift continuum scale (from most to

least intimate) of social friendships.There are three

models of social exchange that explain gift giving.

The ﬁrst model is mainly economic, and it uses the

utilitarian motives of equivalence and equality.The

second model relies on the concept of generalized

reciprocity and stresses the symbolic value of a gift

in strengthening relationships. Such relationships do

not seek equivalence and equality, and the relation-

ships permit one-way ﬂows of goods over an

extended period of time. The third model is “pure

gift.” Financial or equivalence considerations are not

important. Gift giving is motivated by one’s deep

desire to please the other person. A Hong Kong

study conﬁrms the existence of the gift continuum,

which may be used to determine and guide gift

exchanges.

SUBCULTURE

Because of differing cultures, worldwide consumer

homogeneity does not exist. Neither does it exist in

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the USA. Differences in consumer groups are

everywhere. There are white, black, Jewish,

Catholic, farmer, truckdriver, young, old, Eastern,

and Western consumers, among other numerous

groups. Communication problems between speak-

ers of different languages are apparent to all, but

people who presumably speak the same language

may also encounter serious communication prob-

lems. Subgroups within societies use specialized

vocabularies.Anyone listening to truckdrivers’ con-

versation on a CB radio could easily verify this point.

In order to understand these diverse groups of

consumers, particular cultures must be examined.

As the focus is on a subgroup within a society, the

more appropriate area for investigation is not

culture itself but rather subculture, namely culture

on a smaller and more speciﬁc level.

A subculture is a distinct and identiﬁable cultural

group that has values in common with the overall

society but also has certain characteristics that are

unique to itself. Thus, subcultures are groups of

people within a larger society. Although the various

subcultures share some basic traits of the wider

culture, they also preserve their own customs and

lifestyles, making them signiﬁcantly different from

other groups within the larger culture of which they

are a part. Indonesia, for instance, has more than

300 ethnic groups, with lifestyles and cultures that

seem thousands of years apart.

There are many different ways to classify sub-

cultures. Although race or ethnic origin is one

obvious way, it is not the only one. Other demo-

graphic and social variables can be just as suitable

for establishing subcultures within a nation.

The degree of intra-country homogeneity varies

from one country to another. In the case of Japan,

the society as a whole is remarkably homogeneous.

Although some regional and racial diversities as well

as differences among income classes are to be found,

the differentials are not pronounced. There are

several reasons why Japan is a relatively homoge-

neous country. It is a small country in terms of area,

making its population geographically concentrated.

National pride and management philosophy also

help to forge a high degree of unity. As a result,

people work together harmoniously to achieve

common goals.The need to work hard together was

fostered initially by the need to repair the economy

after World War II, and the lessons learned from this

experience have not been forgotten.

Canada, in contrast, is a large country in terms

of geography. Its population, though much smaller

than that of Japan, is much more geographically dis-

persed, and regional differences exist among the

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■ In the People’s Republic of China, don’t write

notes using red ink. This suggests that the writer

will die soon. Avoid using the number four at all

costs because this, too, signiﬁes death.

■ In Thailand, it is considered offensive to show the

sole of the shoe or foot to another. Therefore, it is

necessary to take care when crossing your legs.

■ In Saudi Arabia, the law prohibits the wearing of

neck jewelry by men, and Westerners have been

arrested for neglecting to observe this rule.

■ In Argentina, do not be offended if your business

associate arrives thirty to forty minutes late to a

meeting.

■ In Costa Rica, if you are invited for dinner to a

home, bring ﬂowers, chocolates, whisky, or wine.

Do not bring calla lilies; they are associated with

funerals.

■ In Germany, ﬁrst names are reserved for family

members and close friends. Moreover, in German

business culture, it is not uncommon for colleagues

who have worked together for years not to know

of each other’s ﬁrst names.

Source:

Margaret Kammeyer, “The Other Customs Barrier,”

Export America

(April 2001): 32.

CULTURAL DIMENSION 6.1 A DIFFERENT KIND OF CUSTOMS BARRIER

provinces, each having its own unique characteris-

tics. Furthermore, ethnic differences are clearly

visible to anyone who travels across Canada.

One study of the relationship between ethnicity

and lifestyle found signiﬁcant differences among

English, French, Italian, and Greek Canadians even

when sociodemographic variables were controlled.

Greek Canadians,for example,are more brand loyal

but dislike credit. Each ethnic group, due to its size,

may require a differentiated marketing strategy.

Canada’s social environment makes it possible

for ethnic groups to be active members of Canadian

society while having the freedom to pursue their

own native customs.The environment thus accom-

modates what is known as ethnic pluralism.

Canadians not only tolerate but even encourage

diversity in ethnic customs.

Ethnically speaking, two prominent subcultures

emerge: English speaking and French speaking.

Studies have repeatedly shown that the French-

speaking and English-speaking households differ

from each other signiﬁcantly in terms of demo-

graphics, subculture, and consumption habits.

French Canadians’ consumer behavior is a cross

between that of North Americans and that of the

continental French, being both similar to and dif-

ferent from those of these two groups. Compared

to the French, Quebecers are more direct, less dra-

matic, and less formal. Compared to other English

Canadians, Quebecers move far less often and thus

have far less need to make long-distance phone calls

to relatives and friends. Although Bell Canada was

successful in English Canada with an advertisement

that tied together environmental concerns with

long-distance service, the advertisement did not

work well in Quebec where people are less likely

to join a car pool or sort domestic garbage for recy-

cling. As a result, Bell Canada adapted the message

to reﬂect Quebecers’ lifestyles by showing a busi-

nessman calling home to speak to his daughter.

In the USA, the population increase among

blacks, Hispanics, and Asians has been explosive.

According to the 2000 US census, these three

groups account for 79 million out of 281 million

Americans and $1 trillion in annual spending power.

The number of Latinos in the USA is growing at

more than twice the rate of blacks, and the Latino

population (at 37 million in 2003) is the country’s

largest minority group. Latinos, making up about

30 percent of California’s population, account for

a majority of births (about 50 percent) in the state.

Demographically, Hispanic households are larger

than white households, with 30.6 percent of

Hispanic households having ﬁve or more people.

In addition, they have their own distinctive con-

sumption habits.They are less likely to use credit,

and soccer is an integral part of their lives. Latino

holidays and cultural events are marketing oppor-

tunities. Other than holidays and holy days,

religious passageways (christenings, communions,

and anniversaries) are important events. Likewise,

Quinceanera (a girl’s 15th birthday) requires make-

up, high heels, nylons, gowns, cards, and so on.

Interestingly, the Hispanic population has grown

to the point that Procter & Gamble even aired

a Spanish-language commercial for its Crest

Whitening Plus Scope toothpaste during the

Grammy Awards. Titled Goodbye Kiss, the com-

mercial’s tagline was in English – “White teeth and

fresh breath . . . in any language.”

Given the fact that each subcultural group is a

part of the larger culture while possessing its own

unique cultural, demographic, and consumption

characteristics, the issue of market heterogeneity

must be recognized.Because individuals’ values vary

across subcultures, business outcomes may vary as

well. As in the case of Brazil’s four regional subcul-

tures, subculture affects both motivational domains

and business performance.

Another study investi-

gated the decision-making patterns of blacks,

Hispanics, and whites in the USA when purchasing

leisure clothes (value-expressive product) and small

electronics (utilitarian product). These groups

differed in their informational inﬂuences (media

and reference group) as well as in their percep-

tions of store attribute importance, and the patterns

also differed between the two product types.

Advertisers should thus adjust their advertising

messages according to the ethnic groups and

product types.

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CULTURE

One marketing question is the language that

should be used so as to effectively appeal to a par-

ticular subculture.According to one study, Spanish-

language advertising positively affected Hispanic

consumers in the USA by signaling solidarity with

the Hispanic community. However, exclusive use of

Spanish in advertising also had a negative effect since

it appeared to arouse Hispanic insecurities about

language use.

Therefore, language choice requires

more research.

“Ethnic self-awareness” is a temporary state

during which a person is more sensitive to infor-

mation related to one’s ethnicity. It occurs when the

person engages in a process of self-categorization

and uses ethnic criteria as a basis for this catego-

rization. This awareness can be aroused by individ-

ual difference variables, situational factors, and

other contextual or stimulus primes in environment

(e.g., visual or verbal cues that draw attention

to ethnicity). When aroused, this awareness can

moderate consumer responses to an advertising

message. A study of 109 Asian and Caucasian par-

ticipants found that ethnic prime increased the

participants’ likelihood to spontaneously mention

their ethnicity in self-descriptions.This then led to

a more favorable response to the same ethnicity

spokesperson and the advertisement that targeted

their ethnicity. In other words, the use of ethnic

actors alone is not meaningful unless consumers can

be aroused ﬁrst to evoke ethnic self-awareness.

Subculture may provide an effective basis for

market segmentation. American ﬁrms attempt to

attract various subcultural groups in many different

ways. Carnival Cruise Lines has an entire cruise

ship (Fiesta Marina) just for the Hispanic market.

McDonald’s has created a Mac Report series

of Spanish infomercials. J.C. Penney has outﬁtted

170 stores to carry merchandise for Hispanic

and African-American consumers.AT&T, MCI, and

Sprint have advertised their long-distance phone

services in a variety of Asian dialects.

While Sears Roebuck and Co. advertises in a

generic form of Spanish, it also recognizes regional

differences. It adopts a Mexican ﬂavor in the

Southwest of the USA and a Caribbean theme in the

East.Along the same line, marketers need to appre-

ciate linguistic variations. “Delincuente” means

delinquent in Puerto Rico but may mean criminal

in Mexico. “Cancelar,” depending on a person’s

origin, may mean either to cancel or to pay off

an account. Beans are “frijoles” in Cuba but

“habicheulas” in Puerto Rico.

It is not exactly unusual for a company to use a

cosmetic line to target an ethnic group. Maybelline’s

Shades of You and Revlon’s Polished Ambers were

both aimed at African-American and Latin con-

sumers. Both were unsuccessful and have folded

these shades into their conventional lines. Avon

hopes to do better. As the world’s largest direct

seller,Avon has always extended its products beyond

the US market. The company’s catalog appears in

twelve languages and 143 countries. Avon is Latin

America’s top seller. To attract Hispanic women in

the USA, Avon has introduced Avon Eres Tu (“It’s

You”), a bilingual catalog. Instead of simply translat-

ing its current catalog, Eres Tu also includes new

products and beauty tips that do well in Latin

American markets. Unlike Maybelline’s and

Revlon’s past efforts, Avon’s products are tailored

more speciﬁcally to Latinas, and the catalog features

only Latina models. Because Hispanics vary from

being very light to very dark, Avon Eres Tu provides

shades that perfectly match Latina skin tones.

CONCLUSION

Culture prescribes acceptable beliefs, traditions,

customs, and values that are then socially shared.

Culture is subjective, enduring yet dynamic, and

cumulative. It affects people’s behavior in diverse

ways through logic, communication, and consump-

tion. Although some cultural traits are universal,

many others are unique and vary from country to

country.And in spite of national norms, cultural dif-

ferences as a rule even exist within each country.

While there may be a tendency to misunderstand

different cultures and subcultures, this temptation

should be resisted. Being the force that it is, the

culture of one country should not be judged as supe-

rior to the culture of another country. Each culture

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has its own particular values and social practices,

and the international marketer will be much further

ahead if he or she tries to walk in the other person’s

shoes in order to understand more clearly that

person’s concerns and ideas.

Because marketing takes place within a given

culture, a ﬁrm’s marketing plan assumes meaning or

is appropriate only when it is relevant to that

culture. A US company should understand that

foreign consumers are not obligated to take on

American values – nor may those consumers desire

to do so. In addition, it is more important to know

what a person thinks than what that person’s lan-

guage is.Because of the great differences in language

and culture around the world,American ﬁrms need

to adjust their approach to solving marketing prob-

lems in different countries. In a foreign cultural

environment, the marketing plan that has worked

well at home may no longer be effective.As a result,

the ﬁrm’s marketing mix may have to undergo sig-

niﬁcant adaptation and adjustment. Effective mar-

keting in this environment will thus mandate that

the company be culturally responsive.

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CASE 6.1 CROSS-CULTURAL MARKETING: A CLASSROOM SIMULATION

James B Stull, San José State University

This simulation is designed for a ﬁfteen-week, two seventy-ﬁve minute periods per week consumer behavior course,

with approximately forty students per section; adaptations for course length and size are encouraged. Before com-

mencing with the simulation, naturally an explanation to the students is necessary to show how the simulation

meets the objectives of the course.

■

Week 1

Assign students to research groups, one group for each cultural component (language, attitudes,

religion, social organization, education, technology, politics and law); ﬁve students per group. Provide

groups with bibliographies if available. Have the groups focus on the major considerations within each

component.

■

Weeks 1–5

Pace student research groups through their research procedures, keeping them aware that they

will be presenting their ﬁndings to the class during weeks six through nine. Provide sufﬁcient in-class time

for brainstorming, problem-solving and question-feedback sessions.These ﬁrst ﬁve weeks may also be spent

covering or highlighting portions of textbook not highlighted by simulation.

■

Weeks 6–9

Groups present their ﬁndings; for current simulation, one cultural component is presented each

class period for eight successive meetings. Students should be encouraged to participate and take notes

because the information will be used during the third module of the simulation.

■

Weeks 10–15

During week 10, form new groups; assign one member from each

research

group to each

new group so that each new group has eight members, one specialist from each previous group. Each new

group will function as a business organization representing a separate, unique culture. Distribute handout

similar to Table 6.4.

Procedure

Each culture should gain its own identity early

. Have each culture consult its specialists to develop a clear

understanding of its own identity regarding each component. Focus on developing speciﬁc verbal and non-

verbal language norms which will be observed during negotiations with other cultures. This may take a few

class days.

2 Have cultures study other cultures to gain familiarity with each cultural component.

3 Instruct cultures that their overall goal is to market a product (or product line), service or idea to each other

culture, and that their success depends upon how well they know their own culture and how it compares with

other cultures.

4 Have cultures develop a product, service or idea which they feel is compatible with their own culture and

which they feel they can market successfully to each other culture. This does not have to be an invention,

merely an innovation for the new market.

5 Have cultures develop a marketing strategy for each other target culture, being sensitive to the idiosyncrasies

of each.

6 Have cultures negotiate with each other, persisting until a contract has been settled or until a perceived stale-

mate has been reached.

7 Discuss the simulation, focusing on affective and cognitive realizations and cultural sensitivity developed.

Each step may take a few class periods, especially those involving cultural self-identity and assessment of other

cultures. Depending upon the population of the course, various levels of marketing and advertising activity may

be reached by participants.

Discussion

During this simulation, students are exposed to conditions utilizing a variety of communication skills: brain-

storming, encoding, decoding, role playing, decision making, problem solving, library research, cultural sensitivity

and more.

Further research is currently underway to determine learning, cross-cultural sensitivity development, and

student attitudes towards and perceptions of beneﬁts of the simulation. Additional research is being conducted to

apply this simulation to Latin American markets.

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Table 6.4 Cultural variables

Variables Culture

BWANA FELIZ LEUNG KORAN DHARMA

Language Swahili Spanish Cantonese Arabic Hindi

Religion (major) Animistic Catholicism Buddhism Muslim Hindu

Education Informal Secondary Formal

Koran

Formal/developing

(urban only) Tech/trade

Technology Low/ Moderate/ Low–moderate Low Agricultural/low/

developing developing developing developing

Politics Republic Republic/ Communist/ Muslim Socialist–British

unstable nationalist colony

Legal system Indigenous Civil Common/communist Muslim Common

Attitudes (to ﬁnd)

Social organization (to ﬁnd)

Notes

1 Attitudes: ﬁnd out general attitudes toward time, space, work, achievement, wealth and material gain, change, etc.

2 Social organization: ﬁnd out general role relationships in terms of families, friendships, reference groups, social classes,

unions, etc.

This simulation also strengthens interpersonal awareness on a

micro

level. If

macro

– cross-cultural – differ-

ences are stressed, it may be safe to assume that participants will recognize that any behavioral differences, even

where major cultural differences do not apply, are due to the inﬁnite variety of experiences of each member of

any society.

Adaptions of this exercise are feasible to meet the needs of industrial and government training programs.

Source:

QUESTIONS

1 What are the characteristics of culture?

2 Explain the impact of culture on consumption.

3 What is the SRC (self-reference criterion)?

4 Distinguish between high-context and low-context cultures.

5 Distinguish between monochronic and polychronic cultures.

6 Explain how the meanings of time, space, agreement/disagreement, and friendship can vary from one culture

to another. Also discuss their business implications.

DISCUSSION ASSIGNMENTS AND MINICASES

1 Which of the following seems to better characterize the world: cultural commonality or cultural diversity?

2 Because English is the world language of business, is it necessary for US managers to learn a foreign

language?

3 Do you agree that the USA is a “melting-pot”?

4 As Hispanic consumers in the USA are also American consumers, is it necessary for marketers to adjust

their marketing mix for this market segment?

5 Explain how culture affects the ways people use eating utensils (e.g., fork, spoon, knife, chopsticks).

6 Explain why people in several countries are upset when they see: (a) an advertisement showing an American

crossing his legs or putting his legs on a table; and (b) Americans wearing shoes in their homes.

7 According to Edward T. Hall, a renowned anthropologist, Americans are more comfortable with Germans

than with the Japanese because Germans generally make eye contact to indicate attention to a speaker.

However, the Americans feel that the Germans do not smile often enough. How do the Germans and Japanese

regard the Americans’ frequent smiles and eye contact?

8 According to William Wells of the DDB Needham Worldwide advertising agency,American TV commercials are

usually shown either as an illustrated lecture or as a drama in which a product is a prop (or a mixture of both

techniques). Why is the lecture approach (a low-context technique) inappropriate for high-context cultures?

Why is the drama approach (a high-context technique) appropriate for Japan? Note that Japanese commer-

cials go to great lengths to present cues that are not product-related before devoting only a few seconds to the

product itself at the end.To American advertisers, this advertising approach is ambiguous and puzzling.

9 What are the stereotypes of the following groups: Arabs, Asians, Africans, and Latin Americans? Why is it

undesirable to use stereotyping as a basis to understand foreigners? Also identify the positive traits and

values of the groups mentioned above.

10 What are some of the unique characteristics of the US culture? What are some of the unique business char-

acteristics of the Japanese culture?

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NOTES

1 Donnel A. Briley, Michael W. Morris, and Itamar Simonson,“Reasons as Carriers of Culture: Dynamic versus

Dispositional Models of Cultural Inﬂuence on Decision Making,”

Journal of Consumer Research

(September 2000): 157–78.

2 “India Honors Bride Who Fought Dowry,”

San José Mercury News

, May 17, 2003.

3 “Singapore Lets Its Hair Down,”

International Herald Tribune

, July 15, 2003.

4 “Malts Hot in Mideast,”

San José Mercury News

, February 13, 2003.

5 James A. Lee, “Cultural Analysis in Overseas Operations,”

Harvard Business Review

44 (March to April

1966): 106, 111.

6 Edward T. Hall,

Beyond Culture

(Garden City, NY: Anchor Press/Doubleday, 1976).

7 Hall,

Beyond Culture

8 George P. Murdock, “The Common Denominator of Cultures,” in

The Science of Man in the World Crisis

ed. Ralph Linden (New York, NY: Columbia University Press, 1945), 123–42.

9 Basil G. Englis, Michael R. Solomon, and Richard D. Ashmore, “Beauty Before the Eyes of Beholders: The

Cultural Encoding of Beauty Types in Magazine Advertising and Music Television,”

Journal of Advertising

23 (June 1994): 49–64.

10 “Plastic Surgery for Minorities,”

San José Mercury News

, August 24, 2002.

11 “Vietnamese Women Make an Anti-Sun Fashion Statement,”

San José Mercury News

, November 18, 2002.

12 “Fat Is ideal Body Shape in West Africa,”

San José Mercury News

, February 17, 2001.

13 “Lost Languages,”

San José Mercury News

, August 26, 2001.

14 “Lost Languages.”

15 “Gene That Generates Language Found, English Scientists Say,”

San José Mercury News

, October 4, 2001.

16 Simon Anholt, “The Problem of International Work: Why Copy Can’t Be Translated,”

DM News

, January

23, 1995, 13.

The Tower of Business Babel: A Guide for the Correct Use of the English Language in International Trade

(Janesville, WI: Parker Pen Co., 1983).

18 Justin Fox, “The Triumph of English,”

FORTUNE

, September 18, 2000, 209ff.

19 David R. Berlo,

The Process of Communication

(New York, NY: Holt, Rinehart, & Winston, 1960), 164.

20 Bernd H. Schmitt, “Language and Visual Imagery: Issues of Corporate Identity in East Asia,”

Columbia

Journal of World Business

30 (winter 1995): 28–36.

21 Bernd H. Schmitt, Yigang Pan, and Nader T. Tavassoli, “Language and Consumer Memory: The Impact of

Linguistic Differences Between Chinese and English,”

Journal of Consumer Research

21 (December 1994):

419–31.

22 Nader T.Tavassoli and Jin K.Han,“Scripted Thought: Processing Korean Hancha and Hangul in a Multimedia

Context,”

Journal of Consumer Research

28 (December 2001): 482–93.

23 David Luna and Laura A. Peracchio, “Moderators of Language Effects in Advertising to Bilinguals: A

Psycholinguistic Approach,”

Journal of Consumer Research

28 (September 2001): 284–95.

Investment in Indonesia

(Kantor Akuntan Sudjendro and Peat Marwick, 1985), 15–16.

25 Edward T. Hall, “The Silent Language in Overseas Business,”

Harvard Business Review

38 (May to June

1960): 87–96; H. K. Arning, “Business Customs from Malaya to Murmansk,”

Management Review

(October 1964): 5–14.

26 Robert J. Graham, “The Role of Perception of Time in Consumer Research,”

Journal of Consumer Research

7 (March 1981): 335–42.

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