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Key Topics
Requirement
Discuss about the The China Syndrome.
Solution
The China Syndrome: Cultural misunderstandings can lead to marketing failures
1) Consider some of the other consumer behavior factors you have considered in this course (motivational factors, status concerns, perceptual issues).
The factors related to consumer behavior are motivation and perception. The people of China are inveterate gift givers. For them, the gifts are a source of motivation because they express friendship and they symbolize hope for the good business in future. So, giving gifts is a motivational factor that affects business in China. But, they also believe that gifts should not be given if there is any good reason or there is no witness. This is one important aspect of the culture of China that affects the way business is done there. So, if any company is planning to do business there, then it must take care of the fact that on special occasions, it must distribute gifts to its customers in China. Then, another factor is the perceptions that the people of China make during meetings and greetings. If the other party is not shaking hand lightly and they are not exchanging business cards which have text in English on one side and text in Chinese on another side, then the Chinese may perceive that the other party is not interested in doing business with them or they may deceive them in future. So, they will never form a contract with that party. Also, if the other party is in a hurry or rush, then it is perceived as a negative trait the people of China. Thus, the companies operating in China must take acre of promotions of their products, as when they display the advertisements, they should not depict anything that is happening in a rush. This may give a negative impression about the product.
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2) How might they also differ in other cultures?
The culture of China is different from that of other cultures as there is a formal social structure in China. Every person is aware of their position in the structure, and they follow the rules. They do not cross it and try to enter in other areas. But, in other cultures like the American culture, the social structures, and social ties are loose and informal. This creates problems in doing business with China. Then, in china, when any conflict occurs, people do not bother about the ‘truth’ of the situation, but the respect and honor of the people supersede that. But, in other cultures, people are free to say their point and give the explanation of the same. So, if any party is doing business with China and they have to show themselves over any right point during the issues of business, then they should not do it because it is considered as shameful and should be avoided. In China, business relations are not developed without socializing which is very unlike the other cultures. They consider business a secondary, and they focus on developing relations with the other parties primarily.
In this way, the culture of China is different from other cultures.
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Lau, C.M., David, K.T. and Zhou, N., 2002. Institutional forces and organizational culture in China: Effects on change schemas, firm commitment and job satisfaction. Journal of International Business Studies,33(3), pp.533-550.
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Tsui, A.S., Wang, H. and Xin, K.R., 2006. Organizational culture in China: An analysis of culture dimensions and culture types. Management and Organization Review, 2(3), pp.345-376.
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