A STUDY ON CROSS CULTURAL COMMUNICATION FOR

UNDERSTANDING CONSUMER BEHAVIOUR IN GLOBAL

CORPORATE CONTEXT

Dr Neeraj Patharkar
Sr. Assistant Professor,
The Bhopal School of Social Sciences, Bhopal
E-mail: neeraj_patharkar@[Link]

Nishita Patharkar
Student,
IIM, Kozhikode
E-mail: patharkarnishita@[Link]

ABSTRACT

In this era of globalisation, the interaction of business people is quite frequent with their foreign
counterparts and with the rapid advancement in the means of transport and communication we
are witnessing an intense movement of business class from their parent country to foreign
nations. In the case of electronic correspondence also this trend is visible and now the whole
world has become a global village. Communication across the geographical boundaries of a
nation is these days need of the hour but it has resulted in a challenge for the corporates. They
have to equip their workforce with the global level competencies and particularly the verbal
and non-verbal communication aspects which are quite different from one nation to other
because of differences in their culture, value system and ethos. This is visible in their language,
clothing style, eating and greeting styles and corporate etiquettes and mannerism.

The modern-day business leaders and entrepreneurs need to be aware of this aspect of cross-
cultural communication when they interact globally with their clients and fellow business
partners for business dealings. Similarly, the multinational companies also have to take care of
the diversity in consumer behaviour pertaining to their needs, wants, aspirations, taste and
preferences. This always pose a stiff challenge in front of the marketers to cater the diverse
cultural backgrounds of the customers who may have different perception and attitude towards
their product or service offerings. Moreover, the buying motives and the consumer decision
making criteria are also differing from region to region.

This paper explores cross-cultural consumer behaviour in corporate environments, with

particular emphasis on how the understanding of cross-cultural communication is important to

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managers. Its objective is to provide actionable knowledge that managers may use to transcend
cultural complexities to develop strong relationships with consumers on a global basis. This
would enable them to enter uncharted market territories on the globe and expand their horizons
of business.

Key words: Corporate, Cross-Cultural Communication, Customers, Diversity, Globalisation

INTRODUCTION

In today's globalized economy, the interconnectivity between diverse cultural backgrounds has
increased significantly. Organizations operate across geographical boundaries, requiring
managers to interact with consumers and employees from varied cultural contexts. Cross-
cultural consumer behavior is a critical field of study that examines how cultural differences
influence consumer decision-making processes, preferences, and loyalty.

The world is a complex and interconnected place. Consumers today have varied tastes and
preferences, shaped by their cultures and local contexts. Take Netflix, for example. Initially
focusing on the US market, they realized the potential of international audiences with a
seemingly infinite array of wants, needs, and everything in between. Netflix eventually
captured a dominant market share by tailoring content recommendations and subtitles and
producing shows based on regional preferences.

Similarly, the Domino's success story in India makes it a model that proves the adaptation to
culture is important. They realized that Indians generally prefer vegetarian food and spicy
flavours. Thus, Domino's introduced more varied vegetarian pizzas with some unique spice
blends that satisfied local tastes, which turned out to be a prime player in the Indian fast-food
market. These examples show that skilled professionals know the nuances of cross border
marketing.

Culture refers to many characteristics of a group of people, including attitudes, behaviours,

customs, religious beliefs, and values that are transmitted from one generation to the next.
Cultures throughout the world share many similarities but are also marked by considerable
differences. For example, while people of all cultures experience happiness, how this feeling
is expressed varies from one culture to the other. Culture operates as the lens through which
the meanings of products, services, and their related marketing messages are interpreted. What
appeals to one culture may offend another. For example, advertising humour tends to be

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culturally bound. A joke that might kill among Western World may fall flat in an Eastern
marketplace.

Even greater, cultural norms regulate attitudes toward consumption, branding, and decision-
making. As globalization continues to push the expansion of multinational corporations, these
nuances have become non-negotiable for sustainable success. The ability to communicate
effectively is key to consumer engagement, especially in multicultural settings. Overcoming
the barriers of language differences, cultural stereotypes, and nonverbal miscommunication for
managers is necessary to ensuring effective cross-cultural communication. This would allow
managers to develop cultural competencies and establish inclusivity in developing and
implementing corporate strategies at a global level.

OBJECTIVES

1. To understand the role of culture in shaping consumer behavior in corporate settings.

2. To understand the significance of cross-cultural communication for managers.
3. To identify challenges that managers face when dealing with cross-cultural communication.
4. To provide practical recommendations on how to acquire and improve cross-cultural
communication skills.

METHODOLOGY

The use of secondary data-based approach is adopted to analyse the topic in an all-inclusive
manner. Research has involved a thorough literature review based on secondary sources such
as academic journals, books, and industry reports, to understand key theories and concepts
applicable in cross-cultural consumer behavior and communication. Under this a
comprehensive study of recent insights from business case studies and global market reports
on multinational corporations has been undertaken. This comprises companies such as Netflix,
Domino's, Coca-Cola, Unilever, and Procter & Gamble that have successfully adapted their
strategies to meet multiple cultural contexts. The opinions of industry experts and cultural
consultants are also referred to in order to gather qualitative insights into real-world
applications of cross-cultural strategies.

LITERATURE REVIEW

The Cultural Dimensions Theory by Hofstede, 1980, is the foundation of cross-cultural studies
with six dimensions affecting workplace dynamics and consumer behavior:

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• Power Distance: High power distance cultures will prefer hierarchical brands, while low
power distance cultures will prefer egalitarian brand messages.
• Individualism vs. Collectivism: In individualistic societies, personal achievements are
valued more, whereas collectivist societies give importance to community and
relationships.
• Uncertainty Avoidance: Highly uncertainty-avoidant cultures tend to prefer more
structured, risk-averse product offerings.
• Masculinity vs. Femininity: Masculine cultures prioritize success and competition, while
feminine cultures value care and quality of life.
• Long-term vs. Short-term Orientation: Long-term oriented cultures appreciate
sustainability and heritage, whereas short-term cultures focus on immediate benefits.
• Indulgence vs. Restraint: Indulgent societies embrace leisure and consumption, while
restrained cultures emphasize moderation.
• Similarly, the GLOBE Study (House et al., 2004) that expanded on Hofstede's work,
identified further cultural dimensions and emphasized their implications for leadership and
organizational behavior. It underlines the need for context-specific strategies in culturally
diverse environments.
• According to Shimp & Sharma, 1987) Consumer ethnocentrism explains the preference for
domestic products, which creates problems for international brands. For instance, the
preference for local Indian brands over Western alternatives shows the need for culturally
resonant marketing.
• Hall's Context Communication Theory (1976) believed that high-context cultures (e.g.,
Japan, India) rely heavily on implicit communication, emphasizing relationships and trust.
Low-context cultures (e.g., Germany, the US) prefer explicit, fact-based communication.
• The framework given by Trompenaars' Seven Dimensions (1997) explores additional
cultural dimensions, such as Universalism vs. Particularism and Achievement vs.
Ascription, providing further insights into cross-cultural dynamics.
• The study conducted by Jai‐Ok Kim, Sandra Forsythe, Qingliang Gu, Sook Jae Moon
(2002), examined the relationship of consumer values, needs and purchase behaviour in
two Asian consumer markets, China and South Korea. Between self‐directed values and
social affiliation values, self‐directed values were the underlying determinant of needs to
be satisfied by apparel products.

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• The study conducted by Boachie-Mensah, Francis. O.; Boohene, Rosemond (2012), studies
people’s habits, their aspirations in life, the roles they fill, how they relate to other people,
their perception of things, the products they feel they need and the nature of their
consumption patterns reflect, more or less, the influence of culture. This study examines
the literature on the nature of nature of culture and cross-cultural variations in consumer
behaviour and attempts to analyse the marketing implications of cultural differences and
similarities that exist between the people of two or more nations.

IMPORTANCE OF CROSS-CULTURAL COMMUNICATION FOR MANAGERS

Higher Consumer Involvement: Messages are more likely to connect with cultural values,
which creates a deeper emotional connection. For instance, McDonald's offers localized menu
items, such as the McAloo Tikki burger in India, to accommodate vegetarian diets.

Better Negotiation Results: Managers who are culturally aware are better equipped to handle
complex negotiations and achieve mutual understanding and cooperation. This is especially
important in high-context communication regions.

Global Brand Positioning: Whereby the culture expectation is achieved in messaging as well
as through product adaptation will place the organization ahead of competition. Apple
minimalism is embraced all over but differently worded to suit an aspect like a family and
cultural in China for example.

Develop Inclusiveness: The idea of cross-culture nuances has developed an understanding for
an organization's workplace practice. Google, for example, as well as Microsoft, were
acknowledged for diversification and the practice of inclusive organization.

CHALLENGES OF CROSS-CULTURAL COMMUNICATION

Language Barriers: Language is a major barrier to cross-cultural research. Marketers need to

be able to communicate effectively with potential and existing consumers in their native
language, and they also need to be able to translate research materials accurately. Language
can often be reliant on context, which may get lost in translation. This can lead to miscalculated
results. Direct translations often fail to capture cultural nuances, leading to misinterpretations.
For example, Pepsi’s slogan “Come Alive” was misinterpreted in Chinese as “Bring your
ancestors back from the dead.”

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Cultural Stereotypes: Reliance on stereotypes hampers genuine understanding. For instance,
assuming all Asian consumers prioritize savings overlooks significant variations within the
region.

Nonverbal Miscommunication: Gestures, eye contact, and body language vary widely across
cultures. A thumbs-up gesture, positive in Western cultures, can be offensive in parts of the
Middle East.

Ethnocentrism: An ethnocentric mindset does not allow one to be open to other cultures, thus
alienating the consumer and losing the opportunity.

Adjusting Marketing Strategies: Universal campaigns are hard to design. Localized

campaigns require more resources and expertise, thereby increasing operational complexity.

Cultural misinterpretation and its consequences: One of the greatest challenges that exist
within the patterns of cross-cultural consumer behavior is cultural misinterpretation. This
primarily occurs in cases where marketers are not well-versed within the culture in which their
business is operating. This may lead to inaccurate and misleading conclusions.

Navigating sensitivities and taboos: Another challenge in cross-cultural consumer behavior

is navigating sensitivities and taboos. Marketers should be responsive to the values and beliefs
of people for whom they are running a business. This involves avoiding sensitive and taboo
issues popular in the culture while promoting.

Ethical considerations in cross-cultural marketing: There are also a number of ethical

considerations to be kept in mind while doing business in the cross-cultural environment. For
instance, marketers must seek informed consent from potential as well as existing consumers
and must maintain their privacy during consumer behavioural studies. The marketers must also
refrain from causing harm to the religious and social sentiments of the target market.

STRATEGIES FOR GLOBAL BRANDS

One of the most successful strategies for global brands is adapting their product and service
offerings to target different markets. This can be achieved by considering the requirement and
taste of the consumer worldwide. For instance, an international clothing brand may sell
completely different designs and sizes in a different country.

The second is that a global brand must develop a uniform brand identity across cultures. In
other words, a global brand must create a brand that can be easily recognizable and appealing

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to the consumer across various countries. This can be achieved by the global brand by having
consistent messaging, visuals, and values for all its marketing materials.

Global brands can also use local influencers and opinion leaders to reach consumers in other
cultures. Influencers are people who have a large following on social media or in their
communities. Opinion leaders are people who are respected for their expertise in a particular
field. Global brands can partner with influencers and opinion leaders to create and promote
content that is relevant to consumers in other cultures.

In 2005, the Harvard Business Review published an article titled “Cultural Intelligence: The
Secret Weapon for Global Success,” that even declared – CQ is more important than IQ or EQ
for success in the global workplace. In essence, Cultural intelligence (CQ) is the ability to
understand and adapt to different cultures. It is a complex skill that involves a number of
different factors, including:

• Knowledge of different cultures: This includes knowledge of cultural values, norms,

beliefs, customs, traditions, and language.
• Empathy: The ability to understand and empathize with people from different cultures.
• Self-awareness: The ability to understand and manage your own biases and
assumptions.
• Behavioural flexibility: The ability to adapt your behaviour to different cultural
contexts.

So, it is essential for global brands to possess this skill if they want to succeed in new markets.
Brands with high CQ are able to develop marketing strategies that are tailored to the unique
needs and preferences of consumers in different cultures.

SUGGESTIONS TO MANAGERS

Cultural Sensitivity Training: It is through such wide-ranging training programs that help
managers develop cultural intelligence and understand the respective views differently.

Listening Effectively: Managers can create trust and rapport by focusing on understanding
rather than giving responses across varied cultures either in teams or consumers.

Learning Local Idioms: Basic proficiency in local languages will show respect for the culture
being followed, enhancing consumer trust and employee relations.

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Leveraging Technology: Translation tools, AI-driven cultural analytics, and virtual reality
simulations can be used to bridge cultural gaps.

Experiencing Cross-Cultural Encounters: International assignments, cultural exchange

programs, and immersion experiences can be valuable first-hand experiences.

Global Mindset: Managers should see cultural diversity as an asset, incorporating it into
strategic planning and decision-making processes.

Using Frameworks: Theoretical models like Hofstede's and Trompenaars' frameworks are
practical tools for designing culturally aligned strategies.

CONCLUSION

The globalization of the corporate landscape necessitates an understanding of cross-cultural

consumer behavior. Managers equipped with cross-cultural communication skills are well
positioned to effectively navigate the intricacies of diversified markets, resulting in more potent
consumer relationships and organizational outcomes. Challenges like language barriers and
stereotypes continue to bother managers, but proactive strategies like cultural training and the
use of theoretical frameworks help managers to sidestep such issues. With knowledge of the
issues and trends of cross-cultural consumer behavior, international brands can build more
effective marketing strategies and become successful in new markets. They are expected to use
culturally appropriate language and symbols which includes avoiding any language or symbols
that might be considered offensive or insensitive in the culture. Corporate managers must be
aware of cultural differences in communication styles. For instance, some cultures are more
indirect than others in terms of communication. This is an area where the managers have to
take care of while designing their marketing programmes and promotional campaigns at the
global level. Lastly, embracing cultural diversity is not just a strategic advantage but also an
ethical imperative for corporations aspiring to flourish in a multicultural world.

REFERENCES

• Hofstede, G. (1980). Culture's Consequences: International Differences in Work-

Related Values. Beverly Hills, CA: Sage.
• House, R. J., Hanges, P. J., Javidan, M., Dorfman, P. W., & Gupta, V. (2004). Culture,
Leadership, and Organizations: The GLOBE Study of 62 Societies. Sage.
• Shimp, T. A., & Sharma, S. (1987). "Consumer Ethnocentrism: Construction and
Validation of the CETSCALE." Journal of Marketing Research, 24(3), 280-289.

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• Hall, E. T. (1976). Beyond Culture. Anchor Books.
• Trompenaars, F., & Hampden-Turner, C. (1997). Riding the Waves of Culture:
Understanding Diversity in Global Business. McGraw Hill.
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