FOB L4b: International Market Screening and Cultural Dimensions

Vocabulary flashcards covering international market screening criteria, market factors, entry modes, trade barriers, brand adaptation, cultural definitions, cultural frameworks, low/high context continuum, and Hofstede's cultural dimensions.

International Market Selection Factors

The key factors determining international market selection as cited by Sakarya et al. (2007) and Buckley et al. (2022): Market factors, Product/service fit, Entry mode, Trade barriers, Cultural distance, Resources, and Competition.

Great Britain Grocery Market Share (Kantar, 2024)

The 12-week market share distribution among UK grocers according to Kantar (2024): Tesco ($27.9\%$), Sainsbury's ($15.5\%$), Asda ($12.5\%$), Aldi ($10.4\%$), Morrisons ($8.6\%$), and Lidl ($7.7\%$).

Market Factors in Screening

Key factors evaluated during market screening according to Buckley et al. (2022): Lifecycle stage (startup, growth, maturity, decline), Future demand/growth potential, Distribution infrastructure, and Transportation infrastructure.

Entry Mode and Resource Factors

Considerations affecting international expansion strategy according to Buckley et al. (2022), including resources required, employing local staff, required training/education, supply chain and distribution, required marketing changes, cultural similarity, target audience differences, market entry cost, and utilization of existing networks.

Trade and Investment Barriers

Obstacles to international market entry listed by Buckley et al. (2022), including legal, financial, regulatory issues; approaches to marketing communications; tariffs/limitations on profit; constraints on foreign ownership; and quality/health and safety standards.

Brand Adaptation

The process of adapting brand names for international target markets, illustrated by adapting the UK brand Walkers into Lay's.

Culture (Geertz, 1993)

Defined by Geertz (1993) as 'an historically transmitted pattern of meanings embodied in symbols, a system of inherited conceptions expressed in symbolic forms by means of which men communicate, perpetuate, and develop their knowledge about and attitudes toward life.'

Beliefs (Cultural Component)

Mental and verbal processes that reflect our knowledge and assessment of products/services.

Values (Cultural Component)

Indicators consumers use as guides for what is appropriate behaviour, which are usually enduring and widely accepted within the market.

Cultural Framework (Terpstra et al., 2006)

A framework detailing eight interconnected dimensions of culture: Language, Religion, Values and attitudes, Education, Social organisations, Technology and material culture, Law and politics, and Aesthetics.

Low-Context / Individualistic Culture

Cultural characteristics (e.g. western Europe, US) defined by Hollensen (2020) featuring explicit/direct communication, informal handshakes, linear/exact time-consciousness, nuclear family focus, egalitarian views, lateral/holistic mental processes, and deal-oriented business habits.

High-Context / Collectivistic Culture

Cultural characteristics (e.g. Japan, China, Saudi Arabia) defined by Hollensen (2020) featuring implicit/indirect communication, formal greetings, elastic time-consciousness, extended family focus, group conformity, hierarchical structure, and relationship-oriented business habits.

Contextual Continuum of Culture

A continuum by Usunier et al. (2005) ranking cultures from low context (explicit messages) to high context (implicit messages): Swiss, Germans, Scandinavians, North Americans, English, French, Italians/Spanish, Latin Americans, Arabs, and Japanese.

Hofstede (2011) Cultural Dimensions

A framework identifying six cultural dimensions: Power distance, Individualism/Collectivism, Masculinity/Femininity, Uncertainty Avoidance, Long/short term orientation, and Indulgence/Restraint.

Power Distance

Hofstede's dimension defined as 'the extent to which less powerful members of a society accept and expect that power is distributed unequally.'

Individualism / Collectivism

Hofstede's dimension defined as the distinction between whether 'people look after themselves and their immediate family only' (individualism/self-expression) or 'people belong to groups who look after them in exchange for loyalty' (collectivism/conformance).

Masculinity / Femininity

Hofstede's dimension where 'the dominant values in a masculine society are achievement and success, the dominant values in a feminine society are caring for others and quality of life.'

Uncertainty Avoidance

Hofstede's dimension defined as 'the extent to which people feel threatened by uncertainty and ambiguity and try to avoid these situations.'

Long / Short Term Orientation

Hofstede's dimension considering whether today, tomorrow, or next year is important; short term orientation values history and the past (keeping everything the same), while long term orientation looks to the future.

Indulgence / Restraint

Hofstede's dimension where indulgence 'stands for a society that allows relatively free gratification of basic and natural human drives related to enjoying life and having fun,' placing high importance on leisure time and sports involvement.

Country Comparison Tool

A tool based on Hofstede's cultural dimensions used to evaluate and visually compare cultural scores between different nations (such as India and the United Kingdom).