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he rest of the EU. The earliest date to join eurozne is unknown ...may be 2012
1) The globalization of business, 2) Quantum advances in telecommunications and data processing 3) The formation of global alliances, 4) The growing diversity in the domestic workforce, 5) The increasing mobility of workforce worldwide.
Culture is the collective programming of the mind which distinguishes the members of one human group from another Culture is patterned ways of thinking, feeling and reacting, acquired and transmitted mainly by symbols Culture is the guider of selection of appropriate responses in social situations, social interactions, business interactions
Cultural Influences
Culture:
The values, ideas, attitudes, and symbols that people adopt to communicate, interpret, and interact as members of society.
Cultural Influences
Socialization:
The process of absorbing a culture
Consumer Socialization:
When socialization is applied to marketing and consumer behavior.
A system of values and norms that are shared among a group of people and that when taken together constitute a design for living.
Hofstede and Weber
Values: Abstract ideas/assumptions about what a group believes to be good, right and desirable
Norms: social rules and guidelines that prescribe appropriate behavior in particular situations
Values
Values:
Shared beliefs or cultural norms about what is important or right.
Cultural values directly influence how Consumers view and use individual products, brands, and services.
Values
The List of Values (LOV): Self-respect Warm relationships Self-fulfillment Sense of belonging Respect from others Excitement Security Sense of accomplishment Fun and enjoyment in life
Culture is not a constant - it evolves over time Since 2000s Indian values toward the role of women are changing. Japan moves toward greater individualism in the workplace
Effects of globalization
Subcultures
Ethnic Patterns:
The norms and values of specific groups or subcultures within a society.
Social Classes:
Relatively homogeneous divisions within a society that contain people with similar values, needs, lifestyles, and behavior.
Single adults, to
Married couples whose children have left home, to The retired survivor
Interpersonal Influences
Reference Groups: Those others look to for help and guidance including friends, coworkers, and others.
Individual Differences
Sources of Individual Differences Influencing Consumer Behavior:
1. Word-of-mouth communications 2. Personality 3. Lifestyles and psychographics 4. Motivation
Word-of-Mouth Communications
Market Mavens: Consumers who know about many kinds of products, places to shop, and other facts of the market, and they like to share this information with other consumers.
Personality
Personality:
Reflects a persons consistent response to his or her environment.
Personality
Self-Concept:
The overall perception and feeling that one has about herself or himself.
Psychographics:
Divide a market into lifestyle segments on the basis of consumer interests, values, opinions, personality characteristics, attitudes, and demographics.
Motivation
Motivation:
Refers to a state or condition within a person that prompts goaldirected behavior.
Maslows Hierarchy:
Self-actualization Needs - Art, books, recreation Esteem Needs - Clothing, home furnishings Love and Belonging Needs - Mementos, gifts, photos Safety Needs - Burglar alarms, seat belts Physiological Needs - Food, heat, shelter
Situational Factors
Situational Factors
Consumers buy products with anticipated uses in mind.
Marketers influence consumers by imparting knowledge through advertising, product labels, and personal selling.
Marketers hope consumers will attend to, comprehend, and then remember these messages
Firms adopting a customer value perspective must employ marketing communications that convey realistic expectations.
Culture affects Consumer behavior Local demand Buying decisions Brand Image Culture influences managerial styles and management decisions Culture affects the nature of business
Knowledge of native culture is useful when dealing with home markets but it has little value when dealing in foreign markets
Culture acts as a hidden entry barrier, but it can be overcome with cultural sensitivity, hard work & quality Managerial behavior is driven by his/her cultural knowledge
Some countries are multicultural:- India, China, US, Russia. These countries have several sub-cultures.....51 nations in China!!!! While many are mono cultural. UK, France, Germany, Columbia, Peru etc. Culture is the Silent Language in International business Relationship with Time & Space High Context Low context cultures and direct, indirect behaving Body language
Managers face cultural dilemmas due to differences in cultures Modenization versus westernization Individualism Vs Collectivism in decision making Specific Vs General Attitudes towards Time Attitudes towards Environment
Kiss, Shake Hands ! Women and religion in Muslim The number 7 is considered bad luck in Kenya, good luck in Czech Republic Number 8 in China - always and everywhere Avoid using triangular shapes in Hong Kong, Korea and Taiwan. It is considered as a negative shape. The number 4 means Death in Japan and China Gift giving-How to choose it !
The aim of business is the same everywhere, but the way to do it varies across countries
Culture defines a set of acceptable & unacceptable behaviors, which forms the basis of Way of doing Business Managers learn how to do business. This process is called Enculturalization and Socialization How consumers behave How to manage people, supplier & subordinates What guides the consumer behavior Global business involves cross cultural negotiations, establishing relationships with suppliers, customers, distributors & other partners Acceptable Behavior in business is usually acceptable behavior in society
Establish the global firm as a dependable supplier operating in the local market Understand buyers position People who influence the buying decision Role of the suppliers product/Service in the buyers business success This will make the local buyer treat the global supplier as a local firm.
Learn & analyze local cultures before entry Identify trustworthy local agents Identify danger signals Know the strengths & weakness as perceived by the local culture
Establish trust & friendships New Culture is an operational risk
American Society Dignity of Individuals Dignity of individuals Individuals work ethic Great individuals freedom Respect for rules A open and transparent society Multi-cultural society A society excelling in creativity and versatility
Japanese Society In the same boat concept Human relation oriented Dependence on the group Lack of individuals freedom Low regard for rules A close society, lacking in transparency Mono-cultural society An orderly and uniform society Dependence on consensus A society which pursue harmony with reality