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135 Cards in this Set
- Front
- Back
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globalization |
growth to global or worldwide scale. The development of an increasingly integrated global economy, trade, communication, technology,etc. |
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positive perception of globalization |
linked with modernity. View globalization as technological progress; improvement in economy, health and employment |
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negative perceptions of globalization |
Global monoculture, western imperialism, universalism |
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global monoculture |
"cultural homogenization" |
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western imperialism |
passive consumers who have no control over the attractive marketing schemes" They will buy anything we give them cause were better/more developed |
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universalism |
conviction of "what is good for us is food for others" ex: democracy, fast food, dashboard dining democracy worked for us, it'll work for you |
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Globalization of markets (Levitt, 983) |
the world's needs and desires have homogenized. The worlds development of common norms and values |
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4 myths |
technology brings a world culture, global business have brought global consumption, similarities in media exposure bring consumers together, increased wealth makes people travel, so increased travel brings universal values |
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marketing consequences |
increased focus on external similarities, not on internal differences, an ideal world versus the real world, marketers make consumers adapt to the product and services |
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myth1; Technology (internet) brings a world culture" |
Technology brings together, they do not make us the SAME. Differences are in the ownership and usage of technology across the nation |
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search engines and world culture |
yes, we all use search engines around the world but google is more popular in USA and Baidu is popular in china |
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______ is an extension of human beings |
technology |
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New technology |
is used to reinforce existing behavior.EX: the colder the climate, the more deep freezers and ice cream consumed. EX: Mobile phones penetration highest where most main telephone lines |
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Myth 2: Global business have brought global consumption |
there are global products and brands, but no global consumer coherence |
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Myth 3: Similarities in media exposure bring consumers together |
Media brings TOGETHER they DO NOT make us the SAME. |
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Teens across the world |
watch the same television shows and similar commercials, develop the same consumption patterns (music, fashion, and technology). Find being with friends and watching television to be the most enjoyable ways to spend time |
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Myth 4: Increased wealth makes people travel, so... increased travel brings universal values" |
With increased wealth people's values become even more manifest |
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Why does increased wealth make people's values become even more manifest? |
educated has a better understanding of their sense of culture, learn about their own values and become more opinionated |
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What kind of mindset should businesses have on global consumers? |
markets are people people live in the local Going global means understanding the local Most trusted brands are local or national Understand consumers across cultures |
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What defines an emerging market? |
A developing economy with a low-to-middle per capita income. Forecasts of high population growth increasing income levels. Offer great opportunities for trade, technology transfers, and foreign direct investment |
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Why are Emerging Markets so attractive to enter? |
Growing economy with increasing GDP (gross domestic product). Reduced legislative burden Less market saturation less competition |
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Reduced legislatve burden |
reduced regulations w FDI (foreign direct investment) policies |
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less market saturation |
First-movers saturation. Advantage of being one of the first significant company to move into a new market |
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less competition |
compared to domestic competition. Lower level of technological excellence. lower level of customer service. |
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Why is consumer spending power rapidly changing in retail industry? |
The middle-income segment is expanding- represents up to 70% of total population in some emerging markets. Intense interest in branded product |
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four distance consumer groups |
global tier glocal tier local tier Bottom of Pyramid (BOP) |
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global tier |
Consumers who want products and goods to have the same attributes and quality as products in developed countries. same brand, but same product, same if not higher price |
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glocal tier |
consumers who demand customized products, same brand but product changed, lower price |
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local tier |
consumers who demand products of local quality at local price. Local brand, local product, even lower price |
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Bottom of the pyramid (BOP) |
2.7 billion BOPs globally 60% in India and China Income: $2/day; spend $1.25/day $13 trillion market |
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Retail formats for entering emerging markets |
Hypermarket, supermarket, cooperative store, warehouse club, main street stores, mom and pop store, cash and carry stores |
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Hypermarket |
supermarkets and department store combined in one |
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supermarkets |
large, self-service store that carries variety of food, household |
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cooperative store |
co-op-owned and controlled by members of the cooperative who use products |
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warehouse club |
cut price retailer discount to members who pay an annual fees |
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main street stores |
stores located on primary street of a twon |
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mom-and-pop store |
small retail business operated by family |
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cash-and-carry stores |
wholesaler that sells to retailers and other business at discounted prices IN CASH |
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direct exporting |
the company sells to a costumer in another country |
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indirect exporting |
the company sells to a buyer (importer or distribution) in the home country, who in turn exports the product into the other country |
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distributer |
the company sells through a distributer in another country |
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contractual agreements |
franchising - business model Licensing |
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strategic alliance |
joint venture- share strengths, reduce risks |
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ownership |
direct foreign investment- owners by company, incurs all and risk |
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four entry modes into emerging markets |
exporting, contractual agreements, strategic alliance, ownership |
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regions |
latin america, eastern Europe, Asia and Africa |
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Latin America |
most have moved from military dictatorships to democracy elected governments sweeping economic and trade liberalization is occuring |
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eatern europe |
privatizing SOEs(state0owned enterprise), establishing free market policies. Not all countries have made the same progress or success in economic reform or growth |
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Asia |
Fastet-growing area in the world |
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Africa |
Very little economic integration Political instability and unstable economic base |
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What is Value? |
an enduring belief that a specific mode of conduct or end-state of existence is personally or socially preferable to an opposing one. EX: Health, democracy, religious, patriotism |
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What is a Value System? |
values ordered in priority with respect to other values. EX: 1. Religious 2. Patriotism 3. Democracy |
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norms |
acceptable and appropriate types of behavior |
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instrumental values |
desired modes of conduct; motivators to reach end state. being fair -> equality hard work -> achievement of success |
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Terminal |
desired end state of existence |
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cognitie |
know preferred "state of being" |
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affective |
feel emotional about the values |
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behavioral |
leads to an action |
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What is culture? |
It is collective, not about individuals individuals have their individual personalities, but their cultures are what they share with others with the same background. Learned and shared beliefs, attitudes, norms, roles and values |
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expressions of culture |
language, signs and symbols, body language: facial expressions, gestures, thinking patterns, communication: personal contacts, written, memos, email |
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categorization of culture |
continent, nation, states, provinces and regions, languages, religions, age groups, companies, behavior orientation |
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cultural values: National cultures |
Nations share cultural values Has historical bond as a group (even if there are different groups) cultural values learned before age 10-cannot be changes similarities even stronger for countries shared languages and history |
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comparing values |
differences within nations are smaller than difference across nations difference within nations are smaller than differences within religions |
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homogenous vs heterogeneous nations |
homogenous- similarities within one nations Norway, Finland heterogeneous- differences within one nation U.S; Spain |
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Hofstede 6 dimensions |
handling inequality dependence on others emotional gender roles dealing with the unknown time perspective dealing with natural drives |
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handling equality |
the attitude of the culture toward these peer inequalities amongst us Label: Power distance |
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large or high power distance |
respect authority and elders "Rightful Place" consume for social status |
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small or low power distance |
anti-authority inequality minimized "critical mind" Respect for youth consumer for use |
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dependence on others
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degree of interdependence a society maintains among its members Label: indiviualism |
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individualist |
"I" oriented independence privacy and freedom differentiation Media main source of information |
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collectivist |
"we" oriented interdependence Harmony and sharing conformance social network main source of information |
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emotional gender roles |
what motivates people: wanting to be the best (masculine) or liking what you do (feminine) Label: Masculinity |
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Masculine |
material success competition and money consume for show live to work role differentiation mothers cleans, look after children |
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Feminine |
modesty, who you are quality of life consume for use work to live overlapping roles fathers also clean and look after children |
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dealing with the unknown |
the extent to which the members of a culture feel threatened by ambiguous or unknown situations and have created beliefs and institution that try to avoid these Label: uncertainty avoidance |
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high uncertainty avoidance |
clarity, structure, precision and punctuality process-orientation slow adoption of innovations |
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low uncertainty avoidance |
comfortable with ambiguity result-orientation fast adoption of innovations |
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time perspective |
How every society has to maintain some links with its own past while dealing with the challenges of the present and future Label: long term orientation |
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short term orientation |
maintain-time-honored traditions and norms national pride do not like societal change |
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long term orientation |
future rewards persistence modern education adapting to changing circumstances |
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dealing with natural drives |
the extent to which people try to control their desires and impulses Label: indulgence |
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restraints |
suppresses gratification of needs thrift sparing with resources perseverance |
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indulgence |
instant gratification, convenience, spending, Buy now, pay later, enjoying life, having fun |
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Schwartz model |
desirable goals that serve as guiding principles in peoples life |
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hierarchy |
social power, authority, humble |
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emdeddedness |
social order, politeness, obedience, security, conformity |
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Hofstede measures |
behavioral preferences, concrete behavior, cultural-level values, easier to measure across culture around the world |
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schwartz measures |
desirable goals abstract values combines both individual and culture-level values harder to measure across culture around the world |
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factors in value shift |
Wealth, maturation effects, generation effects, Zeitgeist |
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Wealth |
with increased wealth, individualism stronger |
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maturation effects |
people's values shift when they grow older |
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generation effects |
effects of drastic change of conditions on a certain group in a certain time period |
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Zeitgeist |
effect of drastic system-wide changes: all values change (e.g. recession) |
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self-concept/self identity |
perception of the self |
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how is self-concept formed? |
constructed from the beliefs about oneself and the responses of others |
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low PDI (power distance) |
describe achieved identity judged by what one does |
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High PDI (PDI) |
Describe ascribed identity fixed expectation based on non-chosen traits Ie. Gender, age, inherited possessions |
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individualist (& masculine) |
describe themselves in abstract terms contain mainly positive self-evaluations (Ie. Americans) |
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Collectivists |
Also inIDV and FEM describe themselves in relation to others (in terms of context and situations) Self-criticism more |
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IDV (masculine) self-concept |
'me' as a unique entity, "being yourself" consistent across situation
form own identity from youth |
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COL or IDV &FEM self concept |
'me' as integrated in the social environment "being yourself" different at across situation form identity based on dependency needs in relationships |
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Why IDV/FEM? |
self-reliant but interdependent need for consensus low social status needs not wanting to stick out |
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self-concept in Brands: IDV |
consistent attributes and values brand is original and unique Brand has its own identity form the company that fits the customer |
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Self-concept in Brands: COL |
inconsistent attributes and values brand attribute can differ depending on the situation brad is part of greater whole (=company) that fits different context |
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self-concept in products |
products must be compatible with ideal self become part of the "extended self" product image should contribute to consumer's self-concept |
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ideal self in IDV |
uniqueness and independence
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ideal self in COL |
life stage, group identity and social status |
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self-concept in Advertisements in IDV cultures |
individual benefits and preferences personal success and independence |
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self-concept in advertisements in COL cultures |
in-group benefits, harmony and family contextual rather than an abstract creative concept |
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personality |
sum of the qualities and characteristics of an individual studied through traits |
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Personality studied by IDV Nation |
five-factor model of personality traits |
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five-factor model of personality traits |
openness conscientiousness extraversion agreeableness neuroticism |
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limitations of five-factor model |
1.more within difference in personality traits in European than asian countries 2. traits lac fit in among countries 3. some traits lack linguistic equivalence |
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traits lack fit in among countries |
some countries have more dimensions - Ie. 6th dimension: Dependence on others exclusive traits in some countries- Ruggedness (USA), Passion (Spain), Peacefulness (Japan) |
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some traits lack linguistic equivalence |
openness difficult to translate in African Languages |
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six-factor model of personality traits |
dependence on others added openness conscientiousness extraversion agreeableness neuroticism |
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brand personality |
not used to define brand in all cultures used mostly in IDV cultures global brands use personality to position their brands |
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IDV personality |
personality used to distinguish one self from others personality consistent across situation Brand is defined by unique personality- Ie. friendly, adventurous |
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Col personality |
personality reveals an individual's social role Personality changes across situation Brand is defined by context and the company Promote company brand |
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favorite popular sport in both brazil and Mexico |
soccer |
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issues of plastic surgery in Brazil |
obsessed like big boobs |
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Mexican palette |
spicy |
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Mexican celebration for 15 year old females |
quinceanera transition into womanhood |
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Heirarchy |
social power authority humble |
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Embeddedness |
social order, politeness, obedience security, conformity preserving public image wisdom, respect tradition |
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harmony |
world of beauty peace unity with nature protect environment |
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egalitarianism's |
honest freedom equality responsible social justice helpful |
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intellectual autonomy |
curiosity creativity freedom broadminded |
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affective autonomy |
Enjoying life exciting life pleasure |
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Mastery |
successful, ambitious independent, daring, capable choosing own goals |
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neuroticism |
anxiety, angry hostility, depression, self-conscious, impulsive, vulnerability |
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extraversion |
warmth, gregarious, assertive, activity, excitement, positive |
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openness |
fantasy, aesthetics, feelings, actions, ideas, values |
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agreeableness |
trust, straightforward, altruism, compliance, modesty, tender-minded |
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competence |
order, dutifulness, achievement, self-discipline, deliberation |
