Marketing Across CulturesCustomer Service ExcellenceWeek 5

Definitions of cultureLinton (1945, p. 21): 'A culture is the configuration of learned behaviour and results of behaviour whose component elements are shared and transmitted by the members of a particular society.

Goodenough (1971): culture is a set of beliefs or standards, shared by a group of people, which help the individual decide what is, what can be, how to feel, what to do and how to go about doing it.

Sources of CultureLanguage(s)NationalityEducationProfessionGroupReligionFamilySexSocial classCorporate or organizational culture

Elements of cultureBiological Foundations

Language and communicationInstitutionsMaterial ProductionsSymbolic Productions

Cultural differencesLanguages Communication styles. Expression of emotions Social customs.Eating habits.Body language

In business other factors to consider are:Time differences. Virtual teams may take longer to develop

Hofstedes cultural dimensionsPower-distanceUncertainty avoidanceIndividualism-collectivismMasculine-feminineHigh context low context

Also see Earley and Mosakowskihttp://www.valuebasedmanagement.net/methods_earley_cultural_intelligence.html

HomogeneityLinguisticReligiousEthnicClimaticGeographicalInstitutional & politicalSocial/incomeAre we becoming more alike?

StereotypesCooks - FrenchMechanics - GermanPolice - BritishLovers - ItalianOrganize - Swiss

Cooks - BritishMechanics - FrenchPolice - GermansLovers - SwissOrganize - Italian

What use is culture?Provides a set of beliefs & standards

What to do and how to do it correctlyWhat is palatable, admissible, ethical, magical, religious, hygienic, quality, etc.

When it is time to sleep, to eat, to work, etc.

How does this impact on Customer service excellence?

Interpreting symbols 7 bad luck in Kenya7 good luck in the Czech Republic7 magical in Benin, Africa10 is bad luck in Korea4 is related to death in JapanRed represents witchcraft and death in many African countries, but is a positive in DenmarkAvoid triangular shapes in Hong Kong, Korea & TaiwanIt is a negative shape

SOURCE: Business America, July 12, 1993

1. Culture is learned 2. Culture is forgottenHofstedes analogyYour culture is like your nose:you do not see it properly yourself,but everybody else does and thinks it is peculiar if it differs from theirs.In addition,you always go where it leads you, andit is always in the way.

Same problems Kluckhohn & Strodtbeck (1961)- different solutionsCommon problems & orientationsInnate human nature: good, evil or mixedNature: subjugation, harmony or masteryTime: past, present or futureActivity: being, doing or do to beRelational: linearity, collaterality or individualitySpace: private, public or mixed

Evaluate SolutionsCognitivePeople think it works that wayAffectivePeople like it that wayDirectivePeople will do it that way

Basic cultural assumptionsA model of cultural dynamics (Usinier 2004)

Halls Silent LanguagesLanguage of TimeLanguage of SpaceLanguage of ThingsLanguage of FriendshipLanguage of Agreements

TimeCommon problems:Is time tangible?scarce resourceHow to schedule tasks?one at a time or multipleAre lifetimes single or cyclical?Separable or seasonalWhat should we emphasize?past, present, futureHow does this affect the marketing mix:Products & services?Promotions?Distribution?Pricing?

Space and relationshipsCommon problems:BelongingPersonalization (being) vs. depersonalization (doing)Ingroup orientationRights & obligationsAchieving membershipConcrete vs. abstract territoryConditions of membershipGroup vs. individualisticHow does this affect the marketing mix:Products & services?Promotions?Distribution?Pricing?

Proxemics (Hall, 1966)Size of space zones?IntimatePersonalSocial

Who can enter?

WestIntimate 0-45 cmPersonal 45 cm-1 mSocial 1-2 m

Marketing Mix?

Northwestern / Central EuropeanGermany, UK, Scandinavia, AustriaTask orientedefficient and fastlittle time for irrelevant itemslike structured agendastart and finish times are setformalityForeigners, who dont respect time orientationless professional or less sophisticated

Canada, USA, AustraliaSimilar task orientationMore casual, less formalGreetings and small talk, first nameagendas are flexibleRelationships are business

Mediterranean Europenon-Parisian French, Iberian, Italian, GreekCan use task orientationExtended tribeDevelop a connection or personal bondmeet informality probe personal connectionTask important but time is flexiblelate, delay delivery is OKCompeted tasks measure successForeignersdisconnect if no relationshipconnect on similarities e.g. tour, language

Latin AmericanIncreased relationship emphasisextended tribe include any Latin, Spanish countryCan be task oriented but not preferredRelationship important, even for foreignersdemonstrate trust, credibility or interestRules change with relationshipincludes obligations and duties (multi-dimension)Task is important but so is trust, honour and compatibility

Traditional CulturesAsian, developing, centrally-controlledSimilarities in orientation to salesClan - identity, protection and preferencePart of group or product in demandRelationships are the gatewaycold selling not usually effectiveHigh context - words not so importantLow context - responsibility, date, penaltyIdentify appropriate networkUnique product

Middle EasternRelationship first - bloodFamily relation part of the teamreligious tenetNot available to outsidersintroductionspersuasion least significanttrust established and maintainedconflict interests, nepotismtime limits are rude and disrespectful

How does this affect choice?

*POWER DISTANCE: in all societies, people possess unequal physical and intellectual capacities. Some socities allow these inerquailities to groww, others de emphasise them. All societies are inequal but some more inequal than otehrs (Hofstede 1994) India, France, Phillipines = High Austria, denmark, Sweden low USA mid point.

UNCERTAINTY AVOIDANCE: The future is always uncertain but how do societies deal with it? Weak UA cultures take each day as it comes, take risks easily etc Denmark, Sweden). Others foster needs to try and beat the future and are aggressive and generate more stress Belgium, Japan and France High (USA mid point)

INDIVIDUALISM: The way people live together Loose ties within individuals GB USA and the Netherlands. Collectivist countries Colombia, Pakistan and Taiwan, Mid range Japan, Austria, India, Spain

MASCULINE FEMININE: The degree to which societies decsribe to typical stereotypes. Mascuiline: Stress, money, acheievement USA near the top third Feminie: emphasis on people Norway, netherlands

HIGH CONTEXT/LOW CONTEXT: LOW CONTEXT rely on spoekn and written language for messages HIGH CONTEXT: interpret more of the elements surrouinding the message to develop understanidngsocial improtamnce iof the person, the social setting add extra information The Japenese have subtle ways of communictaing High Cntext Northern Europe Low context : Imagine a low contaxt compayb trying to offer excellent customer service to a high context culture***Kluckholm & Stodtbeck (1961)Finite # common human problemsDefinable # solutionsAll solutions are present in societies at all times. They are just differentially preferred.

**Culture is persistent!See slide Graham Cleverley (Managers and Magic, Penguin 1971)only changes slowly or in case of major social disruption.

Ex ICIS 98: U.S. question to CEO Nokia: How can it be that a small country such as Finland is so successful? (Reply: open to suggestions)****What happens when you are 30 minutes late to a meeting?How is delay in communication perceived?Physical space, placement, proximityYou are what you wear!What can you expect from a friend?Taxis, bargaining

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