A model of five dimensions of national cultures was developed by Geert Hofstede in the 1970s from a survey of more than 100,000 IBM employees around the world. They were outlined in his book Culture's Consequences: International Differences in Work-Related Values and have since been validated numerous times from further empirical evidence. These ideas were contextualised for marketing by Marieke de Mooij in the excellent Consumer Behaviour and Culture: Consequences for Global Marketing and Advertising. So what are the consequences for businesses marketing their products or services outside their home country and how is this reflected online?
Hofstede’s five dimensions were as follows:
Individualism/Collectivism: the extent to which people integrate into groups and whether value is placed largely on the group or the individual. In the example, Indonesia ranks as a very collectivist culture where identity is based on the social groupings to which people belong. Austria is a more individualist culture where self-actualisation is important and where people choose their own affiliations.
Individualism/Collectivism impacts information gathering from media and word-of-mouth. It influences preferences around email and blogging.
:Power Distance: the extent to which less powerful members of society accept and expect that power is distributed unequally. In the example above, Indonesia ranks very highly on the scale as there is an acceptance that everyone has their place in a hierarchy. Austria ranks very low on the scale as it is a society where there is a focus on equality in rights and opportunity.
Power Distance impacts perceptions of status brands and influences communication behaviour, customer service and purchasing habits.
Uncertainty Avoidance: the extent to which a society has a tolerance for uncertainty and ambiguity. Indonesia has a medium-low preference for avoiding uncertainty meaning the internal is separated from the external and maintaining harmony is important. Austria ranks highly on the scale and is a culture that strongly prefers to avoid uncertainty. Decisions tend to be taken after detailed analysis of information.
Uncertainty Avoidance impacts the adoption of innovations, learning languages and interactions with foreigners.
Masculinity/Femininity: the extent to which gender roles are distributed, and whether performance and achievement or caring and quality of life are important. Indonesia borders the two. Status and symbols of success are important but often within a concept of maintaining outward appearances. Austria is ranked as a highly masculine culture, highly success oriented and driven with an emphasis on equity and competition.
Masculinity/femininity impacts internet access habits and the consumption of status brands and luxury goods.
Long/Short Term Orientation: the extent to which a culture attaches more importance to the future of the present and past. Indonesia is a long-term oriented culture with an emphasis on thrift and pragmatism. Austria is a short-term oriented culture with an emphasis on achieving quick results and a concern for establishing the truth.
Long/Short Term Orientation impacts the use of convenience items and white goods and influences how the Internet is used.
In the next post I will look at how these dimensions are reflected in consumption behaviour in specific countries and the implications for digital marketing.
