In high-context cultures, such as China, information is often not verbally expressed, but instead has a deep meaning. Low-context cultures such as the USA are individualistic. There is little interaction and communication between people. The different cultures have a wide range of effects; they can affect business values and attitudes, ethical issues, cultural differences and more. In order to make decisions, international marketing personnel must be aware of different cultural viewpoints, values and attitudes. Americans are quick to adopt technology, but Chinese suppliers may want to keep their traditional values.
In the globalised world, marketing professionals must consider cultural differences when making strategic decisions. A Chinese supplier may be able to compensate for the self-reference criteria of an American company by conducting market research. Hofstede’s dimensions of culture can help you understand the differences and similarities between cultures.
China places a lot of importance on the hierarchy with top management making all decisions. While in the United States they have a lower power-distance, which allows more room for discussion and treats everyone equally.
China, on the other hand, is more individualistic. They place a higher value on relationships. As a result, they are more co-operative with those who know them, but unwelcoming of outsiders. The United States has a strong individualistic culture where people believe that everyone is equal and they do not depend on others but look after their own interests.
Both countries have a masculine nature. While the Chinese are more concerned with their work than their personal life, the United States is competitive and has a “live to work” mentality.
China’s low level of uncertainty avoidance allows for flexibility and adaptation to the future. The United States, on the other hand, has a low level of uncertainty avoidance but is tolerant towards new technologies or products.
China is more patient, adapting to changes and achieving goals over the long-term, whereas the United States believes that time isn’t linear, and therefore prefers quick and accurate results.
China is restrained in its culture. This is due to the social norms. However, Americans are more inclined to indulge.
This cultural similarity or difference would affect the typical decisions made by Americans, so they would need to understand Chinese culture. The cultural differences also influence the personality and behaviour of people. China for example would place a higher value on moral obligations and social responsibilities, regardless of what they need, if it affects their relationships. Americans only assume social responsibilities when they are required to, without taking into account other social relationships.
