The main advantage of ethnocentric approach is ease of execution as the strategies pursued in domestic markets are being replicated in international markets. That is why societies self-destruct over time because no one is willing to listen to what anyone else has to say. Ethnocentrism is usually defined as a kind of ethnic or cultural group egocentrism, which involves a belief in the superiority of one's own group, including its values and practices, and often . Ethnocentrism and the U. S. The study of ethnocentrism in marketing practices can be best viewed in terms of the United States culture. A drawback is that average product costs will increase due to new product development, market research and a reduction in economies of scale. Unilever repackaged and reformulated its detergent for Brazilians, one of the main reason was the lack of washing machines among poorer Brazilian also they washed their clothes in rivers, and the powder was packaged in plastic bag instead of paper which get soggy immediately. Copyright 2022 service.graduateway.com. It is a rule that is similar to finders keepers because of the role that ethnocentrism plays in our personal approach. In other words, the managers are selected from within the region of the world that closely resembles the host country. The problem in international marketing is the failure of the managers and market research in acknowledging the impact of ethnocentrism in their theories, conceptual frameworks and practice. While recognising this undesirable unconscious reference to ones own cultural values, they identify four-stage approach in mitigating decisional bias when dealing with international operations. The hiring process is costly. This is best for an organization that needs the best talent for a key position. Ethnocentrism has been seen particularly a problem in the American managers at the beginning of the 21st century just because of America's dominance in the world economy during the late 1990's. Ethnocentrism exists in the firm's where the managers from affluent countries work with managers and markets which are less affluent. ii. Thats not to say that all changes should be followed without question. Isolate the SRC which affect the problem. In many respects, the FASB adopted a more, "regulatory" approach with clear principles and guidelines, while IASB Proclaims might be. Ethnocentrism is a dangerous philosophy to follow because it requires each person to make assumptions of the other without taking their perspective into account. Absolute advantage is a condition in which a country can produce particular goods at a lower cost . As a German language teacher at NYU and translator of U. S. advertising, Mr. Bergman has seen many significant mistakes made by the U. S. companies in many of their international advertising. Cultural issues on international marketing are reviewed with reference to many relevant thoughts surrounding the relationship between ethnocentrism and international marketing. One of the advantages that it brings about is that it is unlikely to experience internal conflicts. We can no longer choose to believe anything but our own thoughts or ideas because no one else to be correct. Furthermore, Gupta and Chattopadhyaya (1998) extensively tackle the issue of ethnocentrism surrounding industrially developed countries and the underdeveloped or developing countries in the world. Aside from the problem of translation, certain images of people, places and things can also bring specific messages across to certain cultures resulting into an often negative reaction. Despite its many flaws, ethnocentrism can make this possible. Once companies internationalise their operations (e. g. marketing), cultural issues are unavoidable. Furthermore, he illustrates that the U. S. is the center of the world having one of the most highly advanced communications technological capacities, the advantage of a free society and its own international initiatives in business travel and commerce (Fisher 1987, p. 12). The advantages of the polycentric approach are: (1) Alleviates cultural myopia, and (2) It is inexpensive to implement. Global Competitiveness - Competitive advantage 4.2.5. It creates high levels of self-esteem. It is for this reason that even the most cultural-friendly marketing strategy still fails unexpectedly leading to misunderstandings. A drawback is the risk of losing sales as the business is not market orientated. It is now clear that international marketing is synonymous to cross-cultural marketing. This loyalty is not possible unless there is an effort to maintain ethnocentric views from the top down. This is why geocentrism offers the best chance of succeeding in a globalized marketplace. It is in these specific categories or aspects where we can define the unique cultural identity of each ethnicity. This effort tries to counteract the negative effect of ethnocentrism viewing the encounter with culturally other as beneficial in a way of providing a rich and articulate background of comparison and contrast, enabling to form, define and assert one's own distinctive identity with greater richness and clarity (Shusterman 1998, p. 111). It has been introduced by Howard V. Perlmutter within the journal article "The Tortuous Evolution of Multinational Enterprises" in 1969. Even though self reference criteria and ethnocentrism provides the ability to firm to understand better a foreign markets in its true light. For example, Nissan startd out using an ethnocentric approach to car sales where all cars overseas were exactly the same as those in the local Japanese domestic market. 5. Moreover, the recruitment of local employees also deliver a message to the host-country and its consumers that the company is willing to make a commitment to the country and its people. The attitude of ethnocentrism brings about both positive and negative consequences to the group and to those outside the group. Another reason is that the people of Brazil are price conscious and they buy in small quantities. 4. An. the advantages of the partisanship approach are: (1) Overcomes lack of qualified managers in host country, (2) Unifie . The polycentric approach has the following . Ethnocentrism exists in the firms where the managers from affluent countries work with managers and markets which are less affluent. The general rationale behind the ethnocentric approach is that the staff from the parent country would represent the interests of the headquarters effectively and link well with the parent country. For example, ESSO, that is the brand name of gasoline was a successful name in the united states and apparently it would be considered less harmful enough for other foreign countries but if we see in Japan, the name phonetically means stalled car which is strange and is considered as undesirable image of petrol. Advantages and Disadvantages of Sales Force Automation (SFA), Advergaming - New Trend in Marketing Strategy, Green Marketing - History, Importance, Benefits and Problems, Application of Nostalgia Concept in Marketing, modifies its traditional big mac in India, Business Ethics Case Study: Caterpillar Tax Fraud Scandal, Case Study: Corporate Merger Between Volkswagen and Porsche. When you have two individuals or groups who look at each other and think of that other culture as being inferior, then you create polarization in society. Settlers who started venturing out to the Western states during the expansion era of America did so under the assumption that they had a manifest destiny to follow. 2. Ethnocentrism gives us an opportunity to show future generations what is possible through the implementation of continuous best practices based on historical knowledge. In certain cases. It makes it possible to distinguish societies. The pharmaceutical companies in Europe introduce their products throughout the whole Europe simultaneously instead of country by country. Therefore, products are marketed in foreign countres based on the perceived superiority of the home nation's values. This approach puts localized decisions in the hands of people directly connected to the company's central headquarters, Decisions on the ground are made by employees familiar with the parent company's culture but not necessarily the native one. There is every possibility that people may not bother to think about other political system, or to criticize the prevailing order. This is because it would seek to implement strategies purely on the basis of individual foreign markets and omit any valuable knowledge from another market. It is a philosophy which limits the human perspective. The ethnocentric approach is an international marketing strategy where a company uses the same marketing mix in all of their international markets. This situation is fairly apparent in many U. S. based companies marketing to non-western cultures. Cultural assimilation is a process where the individuals of one culture fuse themselves with a different one as a way to fit in with in the context of ethnocentrism. Ethnocentric approach is used in MNC's having international strategic orientation while polycentric approach maintains employees from the same area, ethnocentric involves sending employees from the home or parent countries to the host country. Have you changed the way that you go out in public if youre an American because of the myriad of stories that involve gun violence in recent years? This effort tries to counteract the negative effect of ethnocentrism viewing the encounter with culturally other as beneficial in a way of providing a rich and articulate background of comparison and contrast, enabling to form, define and assert ones own distinctive identity with greater richness and clarity (Shusterman 1998, p. 111). Ethnocentrism can enhance solidarity in society. the term multinational company is often used to describe such structure. (1950) defines the ethnocentrism as a tendency to be ethnically centered and to be rigid in the persons acceptance of the culturally alike and in his/her rejection of the unlike. When you have two items of equal quality and price available for purchase, having a consistent preference for something produced in a manner of which you approve is an ethnocentric viewpoint. It is a spirit where you believe that what you have is the best way to live life. The act of dismissing any thought of evolution or change at the micro or macro levels is evidence of an ethnocentric perspective. An ethnocentric staffing approach seeks host country nationals for all key positions, while a polycentric staffing approach seeks the best people for key positions regardless of nationality.What is a polycentric approach to staffing?Definition. . The attitude of ethnocentrism is always one of superiority. Although every person on our planet has their own definition of normal, we cannot apply this observation to anyone else. Even in a free-market economy where people are free to choose whatever they want, the judgment of someone buying foreign instead of domestic sets the foundation for all of the other disadvantages listed here. The recruitment approach of Hilton hotel indicates something that reveals the shortages of the other two approaches. Conclusion Much of the above discussions clarify the intentions of this article. An Ethnocentric or partisanship staffing policy is one in each of that key management positions ar Fill by parent country nationals. There are several advantages of this staffing policy. When is each approach appropriate? As cultural differences comes along and will exist, Usunier (1996) argues that this should not be a reason for judging a certain culture as globally superior or inferior to others. Culture should be regarded as the domain of pure quality in terms of international marketing (Usunier 1996). List of the Pros of Ethnocentrism 1. Shuster and Harris (1999) provide indeed better insights into marketing in their book Newer Insights into Marketing: Cross-Cultural and Cross-National Perspectives. Has Ethnocentrism Change Over Time? Advantages of Ethnocentric Approach Ethnocentric approach helps in attaining better coordination in between parent country and host country. Same is the case with the causes of illness, Germans are more conscious and Obsessive about the heart and circulations and thats why the Germans are the Europes largest consumers of heart medicines. This allows firms to market themselves as local and expand their operations. Mobility of personnel represents one of the main differentials between domestic and international human resource management. How does it complicate the problem? This article has attempted to create better understanding of the concept of ethnocentrism as a socio-psychological issue with relation to international marketing. MBA Knowledge Base 2021 All Rights Reserved, Barriers to integrated Marketing Communications, Consumer Behaviour and Factors Influencing Buyer Behavior, Different Approaches to the Study of Marketing, Consumer Decision Process In Services Marketing. The only problem with this approach is that people can speak with one voice in negative ways as well. People who experience ethnocentrism in small groups will eventually find themselves experiencing appetite changes, different sleeping patterns, and some may even lose track of time or their ability to concentrate and focus. How A Personal Loan Helps Save You Money? Due to technological, developments like the Internet that contribute considerably to globalization, we can connect, individuals worldwide instantly. What is the Difference Between Marketing and Sales? This conceptual framework seeks to comprehend the information on. According to William Graham Sumner who coined this term in 1906, ethnocentrism is defined as having a view of things in which ones own group is the center of everything and all others are scaled and rated with reference to it. What are the advantages of ethnocentric approach? Lewis and Housden (1998, p. 14) introduce the Self Reference Criteria (SRC) concept in which business managers and marketers inevitably view the world from their own environments point of view. Fisher considers the U. S. to be the largest producer and exporter of information of all kinds, and to be the most advanced information society in the world. When we think of someone who comes from a different culture, then the initial perspective tends to be one that looks at what we dont like about that other system. It hinders the work of cultural assimilation. Generally, ethnocentrism is thought of as the feeling that ones own culture is better than all others. It is the normal practice in United Kingdom and Holland that people prefer tablets when taking medicine, in Germany the injections are preferred. prospective and current investors and creditors. U. S. companies and the U. S. opulation as well, are unaware of the fact that sometimes when English words are translated into another language, they might become offensive and actually provoke the opposite reaction from what was intended. Once again, Lewis and Housden (1998, pp. First, you will need to find managers and employees that have the ability to adopt multiple styles at once. The people who are enforcing change can be just as ethnocentric in their philosophies as those who are resisting it. In this sense, American marketing is dominantly attempting to project a standard image and others should follow its lead. The U. S. is the worlds most communicating nation according to Glen Fisher (1), author of American Communication in a Global Society. Any comparison of cultural productions from different communities inevitably faces the question of who is right? Due to technologicaldevelopments like the Internet that contribute considerably to globalization, we can connectindividuals worldwide instantly. Course Hero uses AI to attempt to automatically extract content from documents to surface to you and others so you can study better, e.g., in search results, to enrich docs, and more. This article doesnt attempt to rationalised what is right or wrong between cultures, but to postulate the detrimental effect of ethnocentric idea in international marketing. It is more than a home country that you support. They focus on individual and groups, their ethnocentricity, viewing other societies as necessarily abnormal and thus inferior (p. 78). polycentric. Lewis and Housden (1998, p. 25) provide actual examples on understanding customer in international marketing: British racing green would be unlikely to succeed in China as green is a color representing vegetable sellers in Chinese Markets Yellow in Brunei is discouraged as it is a royal color Purple may be perceived as mourning the death of old labor in Mexico The number 8 in China is considered lucky. Benefits and downsides of ethnocentric approach All the sectors in which we are becoming more globalized trade. It is an indication of a persons solidarity and devotion to the way of life found in the United States. The culture of the parent company can be easily transferred to the subsidiary company, thereby infusing beliefs and practices into the foreign country this also help in controlling the subsidiary effectively. Life becomes more about what is said in the echo chamber instead of outside of it. A benefit of this approach includes a likely increase in sales and local brand loyalty due to the market orientation of the product. that is useful for customers to make financial decisions. There should be clear awareness among the marketers that not every activity within a marketing program is different from one country to another county and most probably are more similar than differences. The geocentric approach is the best way to hire talent. 4. Given that the group unanimously believes in a particular way of doing things, they abide with them and no opposition . Only the right talent gets promoted and reaches the top. For marketers to be successful in foreign markets, it is necessary for them to take time and they must know about culture, norms, tastes, traits and behavior of other markets (countries) and also to look beyond their own self reference criteria because this advantage will give them an golden opportunity to make their products or activities successful in cross-cultural or foreign markets. Ethnocentrism Universally, ethnocentrism is a phenomenon affecting all kinds of interactions between different groups of people (Sinkovics & Holzmuller 1994). It is a process which can bring more solidarity to specific elements of society while allowing other cultures to pursue their goals at the same time without any interference. (Lewis & Housden 1998, p. 15). The rationale behind the Geocentric Approach is that the world is a pool of talented staff and the most eligible candidate, who is efficient in his field . Required fields are marked *. There are some moral absolutes which exist throughout almost every human society in history. The advantages of ethnocentric approach include: offers multi-national orientation opportunities to employees through the working experience at parent company; cultural similarity with parent company guarantees various transfer of business and management practices; permits tighter control and closer coordination of international subsidiaries . McDonald being internationally famous modifies its traditional big mac in India, where it is named as the Maharaja Mac. submit it as your own as it will be considered plagiarism. Referring to this, description of ethnocentrism falls in terms of the failing to appreciate the normative traits and excellence of other cultures besides ones own.
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