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Self - Reference Criterion

The document discusses several concepts related to cultural differences that can impact international business operations, including: 1) Self-reference criterion and ethnocentrism can impede assessing foreign markets objectively by unconsciously judging other cultures based on one's own values and experience. 2) Ethnocentrism involves believing one's own culture is superior and that domestic strategies will easily transfer internationally, rejecting foreign products and cultures. 3) Overcoming self-reference criterion requires selecting culturally-sensitive international staff and training to appreciate differences in things like communication styles between cultures. 4) Companies can take ethnocentric, polycentric, regiocentric, or geocentric orientations in their international operations and strategies

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Rachit Shiv
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1K views16 pages

Self - Reference Criterion

The document discusses several concepts related to cultural differences that can impact international business operations, including: 1) Self-reference criterion and ethnocentrism can impede assessing foreign markets objectively by unconsciously judging other cultures based on one's own values and experience. 2) Ethnocentrism involves believing one's own culture is superior and that domestic strategies will easily transfer internationally, rejecting foreign products and cultures. 3) Overcoming self-reference criterion requires selecting culturally-sensitive international staff and training to appreciate differences in things like communication styles between cultures. 4) Companies can take ethnocentric, polycentric, regiocentric, or geocentric orientations in their international operations and strategies

Uploaded by

Rachit Shiv
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Self- Reference Criterion

Self-Reference Criterion (SRC) and Ethnocentrism


SRC is an unconscious reference to ones own cultural values, experiences, and knowledge as a basis for decisions. Ethnocentrism refers to the notion that ones own culture or company knows best how to do things. Both the SRC and ethnocentrism impede the ability to assess a foreign market in its true light.

Ethnocentrism
The belief
that ones culture is superior to another and that strategies used in ones home country will work just as well internationally the belief that purchasing foreign products hurts the local economy by causing loss of jobs, and that it is morally wrong and unpatriotic.

Domestic marketing extension concept Leads to the rejection of foreign products.

Obstacles to Internationalization
Self-Reference Criterion
Conscious and unconscious reference to own national culture while operating in the host country. (e.g. eye contact US-Japan)
To counter the impact of the self-reference criterion, the corporation must select appropriate personnel for international assignments and engage in sensitivity training.

Does this picture offend you?

If so, then you may be guilty of Ethnocentrism!


People who are ethnocentric apply their own values in judging the behavior and beliefs of other people raised in other cultures. Ethnocentrism contributes to social solidarity and a sense of value and community. However, it also fuels conflict.

Ethnocentrism, Cultural Relativism, and Human Rights


The human rights movement suggests that there is a realm of justice and morality that supercedes the practices of many cultures. Examples: female genital mutilation in the Middle East; male circumcision at birth in the United States.

Ethnocentric Orientation
Domestic strategies, techniques, and personnel are perceived as superior. International markets are secondary, regarded primarily as outlets for surplus domestic production. International marketing plans are developed in-house by the international division. E.g. Disney resort in France: Disneyland Resort Paris had to adapt it to local preferences: European fairy tales, food, and dress code for staff.

Polycentric Orientation
Focuses on the importance and uniqueness of each international market Firms establish independent businesses in each target country. Fully decentralized, minimal coordination with headquarters Marketing strategies are specific to each country. Outcomes:
No economies of scale Duplicated functions Higher final product costs

Regiocentric Orientation
World regions that share economic, political, and/or cultural traits are perceived as distinct markets. (e.g. EU, NAFTA) Divisions are organized based on location. Regional offices coordinate marketing activities.

11

Geocentric Orientation
Marketing strategies aimed at market segments, rather than geographic locations Maximizes efficiencies worldwide and provides standardized product or service throughout the world E.g. McDonalds

McDonalds India

Religion
Societys relationship to the supernatural determines dominant values and attitudes. Examples:
Protestant Religionstresses hard work and frugality. Judaismstresses education and development. Islamfocus on rules for social interaction. Bans the use of interest rates. No pork or alcohol Hinduismencourages family orientation and dictates strict dietary constraints. Strictly hierarchical. No Beef. Buddhismstresses sufferance and avoidance of worldly desires.

Religion and Its Impact on Business


Business Days Gender Roles Gift Giving Marketing Practices
Monday Christian Islam Judaism Business Business Business Tuesday Business Business Business Wednesday Business Business Business Thursday Business Business Business Business Friday Business Saturday Business Moring Business Business Business Sunday

Created By Swapnil Jadhav

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