Question

There is no question that culture plays a significant role in how we, as consumers, approach the marketplace...but, how does culture impact global business? Is the role of culture increasing or decreasing?

Answer 1

As we know that the buying behavior of the customers is largely driven by the cultural norms of the country. This can be better understood by analyzing the consumption process of that country or culture which basically includes: Access, Buying Behavior, Consumption Characteristics, and Disposal. These stages are heavily influenced by the culture in which the consumer thrives. Now since there is at least some variation in every culture, therefore, the offerings need to be aligned with the cultural dynamics of the country in which the product needs to be launched. Because if the product is not suitable with the culture then it is almost confirmed that the product will fail. For example, Coca-Cola offers Thumbs up in India by the influence of the Indian cultural dynamics. Thus, in the global business, the companies first launch the product as per the culture of that country and then gradually standardizes it for the Global Audience (depending upon the situation).

The role of culture may decrease over the time because the consumers are now looking for the products based on global standards. They are evolving to be ready to adopt the international product more smoothly because of the increasing awareness and knowledge of the consumers.