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Unit 8Cultural Environment In International Business Objectives of the Unit Understand the basic aspects of culture Identify various approaches to culture study Business Environments What is culture? Essential Features of Culture It is learned, not innate The various facts of culture are interrelated. Culture exists in a state of constant change It is shared by members of groups and defines the boundaries between different groups. e.g. Ways of organizing society, from kinship groups to states and multi-national corporations; the distinctive techniques of a group and their characteristic products Cultural Influence on Marketing How does culture influence customer behavior? Approaches to Study of Culture Maslow’s Hierarchy of Needs Self-Reference Criterion (SRC) Diffusion Theory : adopter category and adoption of innovation High and Low Context Culture Perception Maslow’s Hierarchy of Needs The universality of need hierarchy means the more highly developed a market, the greater the portion of goods purchased to fill social and esteem needs The level of consumption is related to physiological and psychological drives Critics to hypothesis and stereotypeof cultural differences A person’s needs do not progress neatly along the need hierarchy Stereotypes about cultural differences do not hold in case of employees’ goals over the world, it is the managers’ self-assumption (self-reference) Self-Reference Criterion (SRC) an unconscious reference to one’s own cultural values, experiences, and knowledge as a basis for decisions Ethnocentrism (种族中心主义) the notion that one’s own culture or company knows best how to do things 1. Define the business problem in home-country cultural traits, habits, or norms 2. Define the business problem in foreign-country cultural traits, habits, or norms. Make no value judgments 3. Isolate the SRC Influence in the problem and examine it carefully to see how it complicates
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