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HOFSTEDE MODEL

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Tanyarat Tri

on 27 November 2013

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Transcript of HOFSTEDE MODEL

Framework developed by Geert Hofstede
How different cultures and societies effects the value and behaviour of its members
Useful for business and marketing as it helps understand the difference between societies. Therefore, better targeting strategies

OVERVIEW
HOFSTEDE MODEL
UNCERTAINTY AVOIDANCE
Refers to the extent in which people with a specific cultural background tries to minimize uncertainty and vagueness (G.Hofstede, 1994)

Customer purchase decision


In uncertainty avoidance countries
quality, brand names, prices, service, information and warranties
are more relevant to the customer when purchasing
EXAMPLE
POWER DISTANCE
Sweden scores low
Independent
Hierarchy for convenience only
Equal rights
Psychic distance
Middle East restrictions
http://geert-hofstede.com/sweden.html-
Li, J., Frydrychowska, M., (2008), The International Expansion of a Multinational Company, A Case Study of H&M, School of Sustainable Development of Society and Technology, International Business and Entrepreneurship, Master Thesis
http://www.diva-portal.org/smash/get/diva2:421545/FULLTEXT02

INDIVIDUALISM & COLLECTIVISM
People who are responsible for themselves
Individual achievements are ideal
People who are not emotionally dependent on groups

One identity is based on group membership
Group decision making is the best
Group protect individuals in exchange for their loyalty to the group

VS
Adidas Campaign for Olympic

EXAMPLE
LONDON 2012
BEJING 2008
MASCULINITY & FEMININITY

“Masculinity
stands for a society in which social gender roles are clearly distinct:
Men are supposed to be assertive, tough, and focused on material success; women are supposed to be more modest, tender, and concerned with the quality of life.”

“Femininity
stands for a society in which social gender roles overlap: Both men and women are supposed to be modest, tender, and concerned with the quality of life.”

EXAMPLE: RESEARCH
CONCLUSION
THANK YOU
LONG-TERM ORIENTATION
Long-term orientation:
Short-term orientation:

Focused on the future
Delay short-term material or short-term emotional gratification for future success
More adaptable, stable and have respect for tradition
* Usually refer with Eastern culture


Focused on present or past
Future is not as important
Care more about immediate gratification than long-term fulfillment

* Usually refer with Western culture


View Matters: different perspective will have a significant impact on strategies and decision-making.
DIFFERENT MOTIVATIONS for different market with different people
HOFSTEDE MODEL OUTLINE
Uncertainty Avoidance
Power Distance
Long-Term Orientation
Individualism & Collectivism
Masculinity & Femininity
Research: Taiwan scored significantly higher than the U.S. on economic and religious clothing values
EXAMPLE
H&M along with other brands have different products adjusted to the taste of different country
*recently added
VS
Individualism
Collectivism
Full transcript