IBUS 402 Exam 1

correlation

relationship between 2 or more variables measuring strength and direction

r squared

goodness of fit index into a regression line

regression

measure of change in a dependent variable that is associated with change in an independent variable

p value

measure of statistical significance against null,

3 commonly agreed areas of culture

- culture isn't innate, it is learned

- various facts of culture are interrelated

- culture defines boundaries of different groups

different boundaries of culture

- national

- organizational

- corporate

- individual

- professional

What did culture used to be known for?

Blood and soil, national identity from your ethnicity

4 Hofstede Dimensions

1. Power Distance

2. Masculinity v Femininity

3. Uncertainty Avoidance

4. Individualism v Collectivism

Extra 2 Hofstede Dimensions

5. Longterm Orientation (Confucian)

6. Indulgence v Self Restraint

GLOBE Study of Leadership and Effectiveness

36 Dimensions of Culture: 9 Dimensions, 2 Levels of Analysis, 2 Manifestations

What are the 2 Levels of Analysis in the GLOBE Study?

societal and organizational

What are the 2 cultural manifestations in the GLOBE Study?

Practices (as is) and Values (what should be)

Individualism v Collectivism

loyalty towards oneself and towards a group, independence and interdependence

Power Distance

attitude towards authority, distance between individuals in a hierarchy, extent of acceptance of inequality

Uncertainty Avoidance

degree of tolerance for uncertainty and the unknown

Masculinity v. Femininity

importance of work goals or personal goals, extent of distinction of gender roles

Longterm Orientation

fostering virtues related to the past and present or the future

Indulgence v. Self Restraint

degree of freedom societal norms give in fulfilling human desires

Convergence Theory

nearly all societies move toward the same point at different speeds

What is Convergence Theory a direct result of?

Industrialization and Modernization

Divergence Theory

different forms of modernity, there is no convergence

What is the main underlying concept of convergence?

Convergence doesn't mean being identical, it means having similar characteristics like high urbanization, use of science and technology, and high formal education

Modernization

anything that has recently replaced something that was previously accepted

Modernization theory views modern as ___ and traditional as ____

positive; negative

Societal Modernization

- mass education

- urbanization

- bureaucratization

- rapid communication

- industrialization

- transportation

Economic Modernization

- scientific technology

- interdependence of impersonal markets

- inanimate energy

- rising levels of material well being

- high labor specialization

Socio-Psychological Modernization

process of change in perceiving, expressing, and valuing, change in attitudes and values

Pre Modern

- agriculture

- cyclical time perception

- 3 generation houses

- feudal societies with landowners and nobility

Modern

- urbanization

- mass production

- nuclear family (husband, wife, kids)

- linear time orientation

Post Modern

- quality of life

- economic achievement

- obtain, transform, and integrate information

Common Assumption regarding Modernization

modernization leads to autonomy leading to a decreased sense of community

Macro data represents...

indicators of countries development

Examples of Macro Data

number of phone lines, number of cars, computers

Micro data represents...

differences in consumption, behavior, attitudes, and values

Examples of Micro Data

time watching TV, actions taken online, amount of liters consumed per capita

Gini Coefficient

measure of inequality where zero means perfect equality

World Income Distribution has become more or less equal according to the Gini Coefficient?

More equal

4 Types of Convergence

1. Non Uniform Direction of Movement

2. Thresholds Over Absolute Differences

3. Parallel Change w/o Convergence

4. Diversity Masked by Convergence

5. Variability in change patterns by subsystem

6. Consumption patterns in varying rates

Non-Uniform Direction of Movement

movement to a common point doesn't mean movement in the same direction

Thresholds over absolute differences

thresholds may be more important than the differences ex. modern school established

Variability in change patterns by subsystem

convergence of a subsystem may not mean convergence of a whole category

Where is convergence weakest?

in economically heterogeneous areas

products at the macro level converge fastest with a link to....

economic development

strongest influence on consumer behavior is...

income

T or F: Culture replaces income as an explanatory variable

true

Urbanization: individualistic cultures

one family houses with private gardens

Urbanization: collectivistic cultures

apartment blocks

What does age distribution mean for a wealthy nation?

Longer life expectancy

Engels Law

generalizes customer spending patterns

- as family income increases, amount saved and spent on other purchases increase and consumption spent on food decreases

Food is...

an important social function with social value

Edward Hall's view on culture

culture is subconscious, invisible control that we only become aware of when it is challenged

Spencer-Oatey's view on culture

culture is an influence and interpretation factor

Hofstede's 3 Levels of Culture

1. Rituals

2. Heroes

3. Symbols

Rituals

greetings and paying respects

Heroes

admired people that set a behavior example

Symbols

words or colors that carry a special meaning to a group of people

Hall's Classic Patterns

High/Low Context Cultures, Polychronic/Monochronic Time Orientation

high context culture

people rely heavily on situational cues for meaning when communicating with others

low context culture

a culture in which people are expected to be direct and to say what they mean, most of the info is in the message to make up for lack of context

monochronic time orientation

one thing at a time, rigid schedule, personal time and work are not intertwined

polychronic time orientation

multiple tasks handled at once, flexible, work and personal time intertwined

What does Trompenaars and Hampden Turner focus on?

cultural dimensions of business executives

7 dimensions of Trompenaars and Hampden Turner

1. Unviersalism v. Particularism

2. Communitarism v. Individualism

3. Neutral v. Emotional

4. Defuse v. Specific

5. Achievement v. Ascription

6. Human time relationship

7. Human nature relationship

4 Schwartz Value Inventory Categories

self enhancement, openness to change, self transendence, conversation

Self Enhancement: Schwartz Value Inventory

power and achievement

Schwartz Value Inventory: Power

individual values social status and dominance over people and resources

Schwartz Value Inventory: Achievement

personal success and admiration, and hedonism

Openness to Change: Schwartz Value Inventory

hedonism, stimulation, self direction

Self Transendence: Schwartz Value Inventory

universalism and benevolance

Conversation: Schwartz Value Inventory

conformity, tradition, security

Schwartz Value Inventory: Hedonism

preference to self pleasure and gratification

Schwartz Value Inventory: Stimulation

preference for exciting life

Schwartz Value Inventory: Self Direction

value independence, creativity, and freedom

Schwartz Value Inventory: Universalism

preference for social justice and tolerance

Schwartz Value Inventory: Benevolance

promoting welfare of others

Schwartz Value Inventory: Conformity

obediance values

Schwartz Value Inventory: Tradition

respect for tradition and customs

Schwartz Value Inventory: Security

safety, harmony, and welfare

4 Goals to interlock activities and processes for a strong global brand

1. Brand building strategies (COMET)

2. Offer compelling customer proposition

3. Deliver brand promise to target segment with balanced marketing strategy

4. Seize opportunity to respond to demands of the digital environment

COMET Framework

- Customer Preference

- Organizational Benefits

- Marketing Benefits

- Economic Benefits

- Transnational Innovation

What does the COMET Framework show?

5 ways a firm can create value as a global brand

Types of Brands

Value, Mass, Premium, Prestige, Fun

Delivering the brand promise means...

sailing between global uniformity and excessive localization

Underlying trends in seizing opportunity in digital environment

- rise of digital sales channels

- move toward co creation with customers

- unrivaled transparency of global brand activities

- connected customer and sharing economy disrupt industries

- internet potential for new entrants

Customer Preference categories

1. Perceived Quality

2. Global Culture

3. Country of Origin

Perceived Quality

global availability means high quality product, innovative and stable assumptions

Global Culture

obtaining a global brand means passport to global citizenship, participation, and belonging in that country

Country of Origin

certain countries have specific qualities that are globally recognized and appreciated

Limits to Country of Origin

Rogue Actions and Customer Animosity

Rogue Actions

scandals can damage a country's image and the brand

Customer Animosity

anger deriving from historical or ongoing political, economic, and diplomatic actions make customers reject products they know are good

Organizational Benefits Categories

1. Rapid Rollout of New Products

2. Strength in Global Competitive Moves

3. Corporate Identity to Rally all Employees

Rapid rollout of products

focusing on a few big projects for global appeal since product lifecycles are shortening and there is a need to launch quickly

strength in global competitive moves

organizing strategy around the brand

cross subsidation

using cash flow from one country to pay for the moves of another

counter party

defend competition attack in one country by countering another

corporate identity to rally employees

- create synergies and sense of belonging

- add logos and branding familiarity

- attract best and brightest of each cohort with positive brand association

Marketing Benefits Categories

1. Media Spillover across countries

2. pooling marketing resources across countries

3. leveraging best marketing ideas

media spillover across countries

customers exposure to media from other countries (ex. billboards in airports)

pooling marketing resources across countries

offset disadvantage of low local market share and associate with globally recognized celebrities or watched events