INTERNATIONAL MARKETING - 2 TOPICS - LONG QUIZ

Hofstede's Cultural Dimensions Theory

is a foundational framework in cross-cultural communication, international business, and organizational behavior.

Power Distance Index (PDI)

The extent to which less powerful members of a society accept and expect that power is distributed unequally.

High PDI

Hierarchical structures are accepted; authority is respected (e.g., Malaysia, Mexico).

Low PDI

Power is more equally distributed; flatter organizations are preferred (e.g., Denmark, New Zealand).

Individualism vs. Collectivism (IDV)

The degree to which individuals are integrated into groups.

Individualistic cultures

Emphasize personal achievements, autonomy, and individual rights (e.g., USA, UK).

Collectivist cultures

Value group harmony, loyalty, and family ties (e.g., China, Indonesia).

Masculinity vs. Femininity (MAS)

The distribution of emotional roles between genders and the value placed on competitiveness vs. care.

Masculine cultures

Focus on achievement, success, and assertiveness (e.g., Japan, Germany).

Feminine cultures

Emphasize relationships, quality of life, and caring for others (e.g., Sweden, Netherlands).

Uncertainty Avoidance Index (UAI)

The extent to which members of a culture feel threatened by ambiguous or unknown situations.

High UAI

Prefer rules, structure, and predictability (e.g., Greece, Portugal).

Low UAI

More comfortable with ambiguity and risk-taking (e.g., Singapore, Jamaica).

Long-Term vs. Short-Term Orientation (LTO)

The degree to which a culture embraces long-term commitments and respect for tradition.

Long-term oriented cultures

Value perseverance, thrift, and adapting to changing circumstances (e.g., China, South Korea).

Short-term oriented cultures

Focus on quick results, respect for tradition, and fulfilling social obligations (e.g., USA, Philippines).

Indulgence vs. Restraint (IVR)

The extent to which a society allows relatively free gratification of basic human desires related to enjoying life and having fun.

Indulgent cultures

Encourage enjoyment, leisure, and freedom (e.g., Mexico, Sweden).

Restrained cultures

Regulate gratification through strict social norms (e.g., Russia, Egypt).

McDonald's

the American fast-food giant, entered the Indian market in 1996

Power Distance (High in India)

•Implication: Indian society respects hierarchy and authority.

•McDonald's Response: Structured its management and customer service to reflect respect for authority and seniority. Store managers were given prominent roles in decision-making and customer relations.

Individualism vs. Collectivism (India is Collectivist)

•Implication: Family and community are central to decision-making.

•McDonald's Response: Designed family-friendly restaurants and marketing campaigns that emphasized togetherness and shared experiences (e.g., "McDonald's mein hai kuch baat").

Masculinity vs. Femininity (India is Moderately Masculine)

•Implication: Achievement and success are valued, but relationships also matter.

•McDonald's Response: Balanced its branding between aspirational messaging and emotional appeal. Promotions often highlighted success and affordability.

Uncertainty Avoidance (Moderate in India)

•Implication: Indians prefer some structure but are open to new experiences.

•McDonald's Response: Introduced familiar flavors with a twist (e.g., McAloo Tikki burger) to reduce uncertainty while offering novelty.

Long-Term Orientation (India is Long-Term Oriented)

•Implication: Emphasis on perseverance and adapting to change.

•McDonald's Response: Took a slow and steady approach to expansion, investing in local supply chains and customizing menus over time.

Indulgence vs. Restraint (India is More Restrained)

•Implication: Social norms may discourage overt indulgence.

•McDonald's Response: Positioned its offerings as affordable treats rather than luxury indulgences, aligning with cultural norms around modesty and restraint.

Hall's High-Context vs. Low-Context Communication

explains how people from different cultures communicate—not just with words, but also with non-verbal cues, social context, and shared understanding.

Hall's High-Context

•It is often hidden in the context, not just in the words.

•People rely on body language, tone of voice, facial expressions, and shared cultural knowledge.

•Communication is indirect, subtle, and often implicit.

Hall's High-Context

If someone says, "I'm not sure that's the best idea," they might actually mean "No," but they're being polite. You're expected to read between the lines.

Low-Context Communication

•Words carry most of the meaning.

•People are direct, explicit, and clear in what they say.

•Communication is straightforward, and less dependent on shared background or non-verbal cues.

Low-Context Communication

If someone says, "No, I don't agree," they mean exactly that. There's no hidden meaning—what you hear is what they mean.

Fons Trompenaars

is a renowned Dutch organizational theorist, psychologist, and management consultant, best known for developing the Seven Dimensions of Culture model, which helps organizations understand and manage cultural differences in global business settings.

Trompenaars' 7 Dimensions of Culture

1.Universalism vs. Particularism - Rules vs. relationships

2.Individualism vs. Communitarianism - Personal goals vs. group goals

3.Neutral vs. Emotional - Controlled vs. expressive emotions

4.Specific vs. Diffuse - Separation vs. blending of work and personal life

5.Achievement vs. Ascription - Earned vs. given status

6.Sequential vs. Synchronic Time - Linear vs. flexible time perception

7.Internal vs. External Control - Control over vs. adaptation to environment

Cross-cultural communication

is how people from different cultures exchange information, ideas, and emotions. In global marketing, understanding these differences is crucial to avoid misunderstandings and build strong relationships.

Barriers to Cross-Cultural Communication

1.Language Differences

2.Stereotypes

3.Non-Verbal Cues

4.Time Perception

Communication Styles

Across Cultures

1. Direct vs. Indirect

2. Formal vs. Informal

3. Verbal vs. Non-Verbal

Direct

: Say what you mean (e.g., USA, Germany).

Indirect

Use hints or context (e.g., Japan, Philippines).

Formal

Use titles and polite language (e.g., South Korea).

Informal

Casual tone and first names (e.g., Australia).

Verbal

Spoken or written words.

Non-Verbal

Gestures, facial expressions, silence, posture.

Culture

is the collection of shared beliefs, values, customs, behaviors, and artifacts that define a group or society, shaping how people live and interact.

Cultural Framework

is like a "lens" or "map" that helps us make sense of the similarities and differences among cultures. This explains why people from different cultures might see or do things differently.

Understanding Diversity

Helps us make sense of why people from different countries act, think, or communicate differently.

Guiding Business & Communication

Provides a "map" for interacting with others in global business, education, or travel.

Avoiding Misunderstandings

Reduces conflicts caused by cultural differences.

Building Respect

Promotes tolerance and appreciation for other people's values and beliefs.

Better Communication

Improves the way we deliver and interpret messages across cultures.

Stronger Relationships

Builds trust in business, school, or personal settings.

Effective Decision-Making

Understanding cultural expectations leads to smoother negotiations and teamwork.

Global Competence

Prepares people to work or live in multicultural environments.

Advantages in Business & Work Culture

1. Saves Time & Reduces Conflict

2. Boosts Collaboration

3. Enhances Leadership Skills

4. Improves Customer & Client Relations

2 Concepts of Culture

National & Organizational

National Culture

• Shared values, beliefs, norms, and expectations common to people brought up within a specific country or nation.

• Broad societal level—includes language, customs, traditions beyond work

• Difficult and slow to change; Values persist over generations.

• Collective mental programming ("programming of the mind") differentiating one nation from another

Organizational Culture

• Shared practices, behaviors, rituals, and norms within a specific organization.

• Narrower scope—focuses specifically on how work-related activities, interactions, and business are conducted.

• Can be changed relatively quickly through management and leadership.

• A system of shared norms and practices within an organizational context, including rituals, symbols, and workplace behaviors.

Business meeting culture

is one of the easiest ways to see how cultural frameworks work in real life

Asia

Culture: Often hierarchical; respect for seniority is important.

Polite greetings, use of titles, indirect communication, consensus-building.

Africa

Culture: Relationship-based; personal trust is highly valued.

May start with informal conversation before business, flexible with time, storytelling used to explain ideas.

North America

Culture: Time-conscious, goal-oriented, direct communication.

Start on time, follow an agenda, focus on efficiency and results.

South America

Culture: Warm, expressive, relationship-driven.

May start late, personal connections are emphasized, flexible agenda.

Europe

Culture: Varies, but generally formal, structured, and punctual.

Clear agenda, logical arguments, respect for hierarchy (Southern Europe) vs. flat discussion style (Northern Europe).

Australia (Oceania)

Culture: Informal, egalitarian, straightforward.

Relaxed atmosphere, first names used, humor is common, but still efficient.

Antarctica

Culture: Unique because it has no native population; only scientists and researchers work there temporarily.

International and multicultural—collaboration and respect are emphasized; English is often the working language.