Marketing Strategy and consumer behavior Paper 3

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PAPER 2

Hofstede’s Cultural Dimension Model

Globalization and international business are crucial, especially in understanding the competition in their markets—however, aspects such as tariffs, language barriers, currency exchange, and cultural differences. Culture plays a major role in international marketing, especially as businesses formulate their operations and marketing strategies. Culture affects the effectiveness of coming up with a compelling marketing message within different cross-cultural contexts. There has been an increasing interest in the consequences of culture in advertising and marketing. Thanks to the internet, companies can spread the message about their services and the products they offer, and their cultural image. This makes their global consumers more aware of their brand, mandating the need for alternative paradigms of culture that would help in understanding the dynamic nature of the markets, its consumers, and competing organizations around the world (Benli & Ferman, 2019).

Understanding International Marketing and Branding

Hofstede’s cultural model has been used to understand cultural differences concerning branding and advertising. When companies engage in a global market, professional efforts are designed to appeal to consumers from different cultures (Chowdhury et al., 2020). For a marketing strategy to be effective, it needs to be customized towards an approach that considers different consumer attitudes. Based on the results derived from Germany and the United States, there is a significant difference concerning branding and advertising. For instance, in the power dimension, given that Germany has a lower power dimension than the United States, it would be ideal to use an approach that focuses on middle-class individuals and ordinary workers who discuss the products and reach a consensus. The products promoted, therefore, must make their lives easier. In America, the marketing gimmicks should appeal to leaders, emphasizing how the product would be beneficial to a company or family.

Additionally, since Germans tend to avoid risk, it would be ideal for pointing out the characteristics of available products and the specific features of each. For the U.S, however, brands can focus on generalizing their products and imply benefits and references associated with positive change (Sigurdsson et al., 2018). Both countries are individualistic, meaning that the promotions should target consumers by showing them how they would benefit from them through value addition, time management, or individual freedom. In Germany, companies should observe the social restrictions in place and adopt promotions that outline the social benefits of the different products, unlike the U.S., where the culture values more relaxed standards, sports, and leisure times. Given that both countries have low masculinity, it would be advised to take up a neutral approach in appealing to both men and women as appropriate (Chowdhury et al., 2020). Eastern cultures, Germany included, have a long-term orientation that focuses on traditions that link to past or future events. As such, companies should consider such orientations and fit promotions into their traditional standards and seek short-term benefits for the United States (Gómez-Suárez, et al., 2019).

Understanding Consumer Behavior

Consumer behavior and purchasing power are driven by needs and motives that can be interpreted as cognitive psychological concepts that generate behavior connected to different social environments. Consumer behavior, according to Hofstede, is more inclined to individualism and collectivism than any other dimension (De Mooij, 2017). Both Germany and the United States are more individualists and have more interest in variety seeking and fun-shopping. However, since both countries differ in orientation, German consumers would have more interest in investing and saving than American consumers who are more interested in spending, purchasing, and consumption (Saleem & Larimo, 2017). Both countries are more feminine, meaning that they would be less interested in status orientation and luxury and are easily influenced by environmental factors.

Since Germany has a lower tolerance for risks, consumers are less likely to be interested in innovations but would be strict on their routines and habits (Sobol et al., 2018). They are also loyal to one brand. In the U.S., consumers are interested in creativity, and new options are not necessarily regarded as loyal consumers (Kurpis & Hunter, 2017). High levels of power dominance in the U.S. makes consumers more brand-oriented as compared to users in Germany who show an egalitarian approach in brand selection. Germany is less indulged in leisure needs, meaning that consumers would show moderate decision-making capabilities, unlike the United States, who have less control and restrictions in their purchasing capabilities.

Advantages and Disadvantages

Understanding culture from a different perspective is beneficial in numerous ways. First, it fosters innovation and creativity, changing how people view the world. This helps solve problems that meet customer needs in new ways because of the different personalities, perspectives, and voices that can be aired out. By offering an avenue for new ideas, business organizations can gain more profit. The knowledge gathered can make local markets more profitable and competitive (Alozie, n.d.). Third, it reaps cultural insight and sensitivity, which ultimately means a higher market audience. It also allows companies to offer broader and more adaptable products and services. Companies that adopt to different cultures are also more productive and perform better. It also fosters room for professional and personal growth.

However, there are also some challenges associated with diverse cultures. First, some cultures feel dominant over others and may present a hostile work environment, affecting market impact in the region. Also, integrating a multicultural approach can be difficult, especially around negative cultural stereotypes and prejudice (Tien & Ngoc, n.d.). On some occasions, professional communication may be misinterpreted or difficult to understand across different cultures. A change in work requirements may also be difficult to adopt. Finally, different cultures have different perspectives of personal and professional etiquette, since they differ in workplace values, etiquette, behaviors, and attitudes.

Learnings outcomes

Based on Hofsede’s cultural dimension and the findings from my analysis of Germany and the United States, it is evident that culture plays an important role in consumer behavior and purchasing power. Different markets respond differently to products in the market and as such, companies need to consider the methods they use especially in branding and advertising. The model suggests that purchasing power and brand loyalty among consumers is affected by numerous factors that are important to consider such as the impacts of different cultural dimensions on online advertising, especially for those companies that have no subsidiaries in foreign markets but operate solely online.

Conclusion

The cultural dimension model is based on the differences in beliefs and values regarding professional goals. This model is important because it provides valuable insights into the differences between countries and how organizations can manage them. The model is applicable in different aspects of management, such as negotiation, leadership, conflict management, and change management, among other work-related attitudes. As businesses and countries continuously engage in the global economy, a precise understanding of culture is important as it impacts consumer behavior in international marketing. Since the market is constantly changing, it is crucial to consider how these changes vary in different settings, prompting the need to embrace culture through all dimensions. Hofstede’s model suggests that culture affects much more at a national capacity based on several factors and attitudes in a group or society. As such, it serves as an important tool in understanding different markets, especially for upcoming companies.

References

Alozie, O. E. Diversity V Multiculturalism Advantages And Disadvantages Of Workplace Diversity. Retrieved from https://doi.org/10.29322/ijsrp.10.01.2020.p9720

Benli, B., & Ferman, M. (2019). The Effect of Cultural Dimensions On Conspicuous Consumption And Online Compulsive Buying Behavior: A Comparative Study Among Turkish And American Consumers. Journal of Management Marketing and Logistics6(2), 103-127. Retrieved from https://doi.org/10.17261/Pressacademia.2019.1038

Chowdhury, R., Chun, W., Choi, S., & Friend, K. (2020). Brand and firm values in distinct national cultures. Asia Pacific Journal of Marketing and Logistics. Retrieved from https://doi.org/10.1108/APJML-03-2019-0121

De Mooij, M. (2017). Comparing dimensions of national culture for secondary analysis of consumer behavior data of different countries. International Marketing Review. Retrieved from https://doi.org/10.1108/IMR-02-2016-0047

Gómez-Suárez, M., Quiñones, M., & Yagüe, M. J. (2019). How individual value structures shape smart shopping experience and brand choices: an international perspective. European Journal of International Management13(4), 515-532. Retrieved from https://doi.org/10.1504/EJIM.2019.100799

Kurpis, L. H., & Hunter, J. (2017). Developing students’ cultural intelligence through an experiential learning activity: A cross-cultural consumer behavior interview. Journal of Marketing Education, 39(1), 30-46. Retrieved from https://doi.org/10.1177%2F0273475316653337

Saleem, S., & Larimo, J. (2017). Hofstede cultural framework and advertising research: An assessment of the literature. In Advances in Advertising Research (Vol. VII) (pp. 247-263). Springer Gabler, Wiesbaden. Retrieved from https://doi.org/10.1007/978-3-658-15220-8_18

Sigurdsson, V., Menon, R. V., Hallgrímsson, A. G., Larsen, N. M., & Fagerstrøm, A. (2018). Factors affecting attitudes and behavioral intentions toward in-app mobile advertisements. Journal of Promotion Management24(5), 694-714. Retrieved from https://doi.org/10.1080/10496491.2018.1405523

Sobol, K., Cleveland, M., & Laroche, M. (2018). Globalization, national identity, biculturalism and consumer behavior: A longitudinal study of Dutch consumers. Journal of Business Research82, 340-353. Retrieved from https://doi.org/10.1016/j.jbusres.2016.02.044

Tien, N. H., & Ngoc, N. M. Comparative Analysis of Advantages and Disadvantages of the Modes of Entrying the International Market. Retrieved from https://d1wqtxts1xzle7.cloudfront.net/63448217/6.IJAREM-D505520200527-5036-1s5w7ai.pdf?1590634037=&response-content-disposition=inline%3B+filename%3DComparative_Analysis_of_Advantages_and_D.pdf&Expires=1600964085&Signature=YdvBHbsgGveNDmjceNg4I5UoQjCbiVDlfnnESnKRFzEr6n4A6S1AGPXYXqpbVkd40AYy5wEz0CbqLPjFdmtzo651f7MfVMfct~VWw1CpHzSmKlJtET1Xcac0bfU9jIXi0jv6hrzt~ywa0wpHfuKzDNnv8UIALq9Krl28a2OwPE1YGVEmUQKZ~G0JhREQgYbE9yTLdtlxRKUcsU5KwsOyLlhm3aRjnBaoalr2~jjeF-H9sL7iIqGkNFXuaGTSromHZVmQ9X5Ld87o4HlLR5me8NiR9WhC3mVCZ8Vb3UhiEA7IMeoPWb3qDmT9Daf71aZvfyk5iUwcsCjCr9VLnDUc4w__&Key-Pair-Id=APKAJLOHF5GGSLRBV4ZA