...CULTURAL EFFECTS ON CONSUMER BEHAVIOR Andrew J. Marsiglia, PhD, CCP Cultural value systems have a direct effect on consumer behavior and vary by the major cultural dimensions between countries but become increasingly complex when people immigrate to foreign countries that have different cultural dimensions. In these situations, people are subjected to a wide variety of cultural reference groups that ultimately affect their consumer behavior. Consequently, marketers must develop marketing communication that addresses cultural and reference group factors from both a domestic and global perspective; that means marketers must adhere to the Levi-Strauss maxim to think globally but act locally. To this end, marketers use market segmentation and micromarketing to develop customer-centric marketing messages with the goal of providing precisely defined marketing messages that satisfy consumer’s need for personal information regarding products and services so that consumers should be adequately stimulated to purchase the product or service being advertised. www.lead-inspire.com December 26, 2010 Table of Contents Introduction ..................................................................................................................................... 3 Effects of Cultural Values on Consumer Behavior......................................................................... 3 Characteristics of Cultural Values .................................................................
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...THE CASE FOR ETHICAL BEHAVIOUR IN TODAY’S BUSINESS ENVIRONMENT Despite the presence of professional ethical codes designed to govern professional conduct in specific industries, there has been numerous cases of unethical conducts which have led to the collapse of great companies in the past such as Enron and Worldcom. In recent times however, many organisations have been taking practical steps to incorporate ethical principles in the daily operations of the business in. The importance of business ethics cannot be overemphasized in the role it plays for any organisations whose objective is to continue in business for the foreseeable future. In the bid to maximize profitability, several managers have failed in their responsibility to act ethically in the conduct of their business because they have given less consideration to the ethical issues, which will have long term impact on the organisations, while focusing on short term financial considerations. Unethical behaviours do not just affect the organisation itself but also negatively affects all stakeholders of the organization – for example, giving bribe to a customer representative does not only affects the company’s reputation but also promotes the societal ill of dishonesty and lack of integrity; when a company is declared insolvent as a result of a fraud perpetrated by senior management, there is a threat to the source of livelihood of the employees of the organisation. Therefore, in order for a business to remain sustainable...
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...ETHICAL DECISION MAKING AND MORAL BEHAVIOR | | Related Links WebNote Index Leadership Overview Decision Making Values Contact information: Dr. Richard W. Scholl 36 Upper College Road Kingston, RI 02881 p. 401.874.4347 f. 401.874.2954 rscholl@uri.edu Much of the recent interest in ethics and moral behavior in business comes from Enron and Worldcom, as scholars, educators, practitioners, and the public seek to understand the behavior of executives in these firms. Many have chosen to view these cases from the perspective of ethics, that is, the behavior of these executives is seen as unethical and the explanation is that they are unethical or immoral people. Furthermore, the solution is improved moral education in business programs. “Somehow, we need to make future executives more moral or more ethical” and we can do this in the context of an undergraduate business program or MBA degree program. Some have even suggested that today’s business programs not only do not facilitate the “moral development” of students, but students leave these programs “less moral” than they were when they entered the programs. Here a couple of points to consider: What is Ethical or Moral? What do we mean by ethical decision making? Are there decisions that are not ethical in that there is not ethical component to a choice? In their review of ethical decision making, Tenbruensel and Smith-Crowe (2008) present a distinction between moral decision making and amoral decision making. Within...
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...Section Four Perception and Individual Decision Making 1. Perception Perception A process by which individuals selects, organize and interpret their sensory impressions in order to give meaning to their environment Person Perception (frequently used shortcuts in judging others) Selective perception People selectively interpret what they see based on their interests, background, experience, and attitudes (Ex. Perceiving a problem from my specialty view) Stereotyping Judging someone on the basis of one's perception of the group to which that person belongs (ex. Athletics are best to hire) Projection Attributing one's own characteristics to other people (ex. everyone is as ambitious Contrast effect A person's evaluation is affected by comparisons with other individuals recently encountered (ex. happens in interviews) as I am) Person Perception Halo effect drawing a general impression about an individual based on a single characteristic Higher effect when Perceiver has little IBM : Virtual Reality Applications Of Perception Employment interview (First impression counts…. Decision by absence of unfavorable charact) Performance expectations (self-fulfilling prophecy- Army exercise) Performance evaluation (Boss evaluating based on general impression) ndividual Decision Making Problem – exists whenever there is a difference between what is actually happening and what the individual or group wants to be happening Problem solving...
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...BUSINESS ETHICS AND STAKEHOLDER ANALYSIS Kenneth E. Goodpaster Abstract: Much has been written about stakeholder analysis as a process by which to introduce ethical values into management decision-making. This paper takes a critical look at the assumptions behind this idea, in an effort to understand better the meaning of ethica] management decisions. A distinction is made between stakeholder analysis and stakeholder synthesis. The two most natural kinds of stakeholder synthesis are then defined and discussed: strategic and multi-fiduciary. Paradoxically, the former appears to yield business without ethics and the latter appears to yield ethics without business. The paper concludes by suggesting that a third approach to stakeholder thinking needs to be developed, one that avoids the paradox just men* tioned and that clarifies for managers (and directors) the legitimate role of ethical considerations in decision-making. So we must think through what management should be accountable for; and how and through whom its accountability can be discharged. The stockholders' interest, both short- and long-term, is one of the areas. But it is only one. Peter Dnicker, 1988 Harvard Business Review W HAT is ethically responsible management? How can a corporation, given its economic mission, be managed with appropriate attention to ethical concerns? These are central questions in the field of business ethics. One approach to answering such questions that has become popular during...
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...designed to help identify your typical pattern of leadership behavior. While leaders must be somewhat flexible in dealing with various situations, most have a primary style of leadership that reflects their activities and beliefs and has proven successful in the past. Instructions For each of the six categories on the instrument, there are a series of statements. Consider each statement and mark the one that best describes you. If, in one or two situations, you cannot indicate only one response, mark your first choice, then your second choice. DOMINANCE I belong to several groups but only attend when something especially interests me. I like to work on committees but don't like to take the chairmanship. I lose interest in groups when they go along in the same old rut and don't listen to my suggestions. I consciously seek, and obtain, leadership in many of my groups' activities. I am often selected as leader of groups without seeking it. TACT People frequently misunderstand my comments. (a) (c) (d) (a) (b) (e) My acquaintances tell me that I am noted for handling many difficult situations (c) without arousing ill will. People seldom resent it when I must correct what they are doing or must criticize them. I consciously study how to handle people tactfully (d) (e) Before I try to get others to accept my point of view, I first try to find how they (b) feel so I can adapt my ideas to theirs. COMMUNICATION I always assume that other people will be friendly and take the...
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...History of Powerful Interests Groups and Their influence in Policy Implementation and why it’s Important. In order for the reader to gather a complete understanding of the actual role of powerful interests groups and their influence in policy implementation you first have to understand what and interest group does and how the group works internally. Interest groups are individuals who share the same common purpose and goal. These individuals share the same common interest for their causes; there are many examples present in society and your workplace many examples range from labor unions, religious groups and professional athletic associations. Many economists believe that the interest groups are motivated by two things political power and economic rent. In my opinion I believe that interest groups are formed from the people’s view of a major group representing an individual’s point of view of what’s right and what’s wrong; these organizations are made up of individuals who share the same interest and of individuals who wants to accomplish a political agenda, social agenda, or to celebrate a common heritage within the group. The history of interest groups and their roles in policy making stem back as far as President James Madison and the other framer’s of the Constitution when “they developed a constitutional system of republican government that takes organized interests as a given, and thus allows interests to weigh in on policy-making in various ways. In making the case for the...
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...Are Interest Groups in the USA too powerful? "An interest group is an organized body of individuals who share some goals and who try to influence public policy." -- Jeffrey Berry - The Interest Group Society Interest Groups are groups where groups of individuals can come together where they can make their ideas, needs, and views known to elected officials. Many individuals in our modern times associate themselves with an interest group regardless of how specialised the views of the group. The main role of interest groups is to influence policy decision making. Some key interest groups in America include the ‘Association of Manufacturers’ which represents 14,000 companies in the US. Many academics would argue that business and corporation play a key central role in American politics. Major corporations carry the prestige of being key members in the US economy. As many people’s view on elected officials are made on economic performance, many fear that anti-business policies will harm their performance in later elections. It is also known that many corporations will help fund the candidates who are in their favour and support their views and therefore business can be very effective interest groups. There are also key single issue groups such as the NRA, and Mothers Against Drunk Driving. Interest Groups are distinct from political parties as they do not seek elected office and therefore their power is to influence decision making rather than holding the power over decisions...
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...1. DO YOU THINK THE BAOSTEEL GROUP SHOULD CONSOLIDATE ALL OF THE GROUP’S ASSETS INTO A SINGLE PUBLICLY-LISTED COMPANY OR REMAIN A TWO-TIERED STRUCTURE? To be able to argue whether the Baosteel Group should consolidate the entire Group’s assets into a single publicly-listed company or remain a two-tiered structure one first needs to review the underlying situation, Baosteel was faced with. In order to stay competitive on the increasingly fierce global steel market Baosteel was required to not only advance in technology but also to increase its output. To reach its aggressive targets, Baosteel continued its quest for domestic acquisitions. In 2008 Baosteel set up a new company which was authorized to oversee two existing state-owned enterprises: the Shaoguan Iron & Steel Group and the Guangzhou Iron & Steel Group. Each of the two enterprises controlled a listed subsidiary. By acquiring these two companies Baosteel Group could increase its output as the new company had the permission to build a new 10-million-ton steel-making base in Zhanjiang City. The new base in Zhanjiang City was promising as it would solve the lack of steel-making facilities in Guangdong, save money due to the shorter distance to Australian iron ore sources and face a ready market with Honda’s and Toyota’s manufacturing facilities demanding their flat rolled steel. They needed, however, to modernize the enterprises, eliminate the obsolete capacity and shut down environmentally critical operations. ...
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...STAKEHOLDER RELATIONSHIPS, SOCIAL RESPONDSIBILITY, AND CORPERATE GOVERNANCE. In a business context, customers, investors and shareholders, employees, suppliers, government agencies, communities, and many others who have a “stake” or claim in some aspect of a company’s products, operations, markets, industry, and outcomes are known as stakeholders. These groups are influenced by business, but they also have the ability to influence businesses; thus, the relationship between companies and their stakeholders is a two-way street. Stakeholders provide resources that are more or less critical to a firm’s long-term success. These resources may be both tangible and intangible. Primary stakeholders are those whose continued association is absolutely necessary for a firm’s survival; these include employees, customers, investors, and shareholders, as well as the governments and communities that provide necessary infrastructure. Secondary stakeholders do not typically engage in transactions with a company and thus are not essential for its survival; these include the media, trade associations, and special-interest groups. Stakeholder groups and issues | Potential indicators of...
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...INTRODUCTION According to Ikeda et al. (2005) the word CONFLICT can be said to be disagreement among members of a society. Conflict simply connotes a state of disequilibrium between two parties, groups, section or between the employers and the employees in an organisation. Conflict is an important concept that is central to understanding and appreciation of man’s exchange with reality of human action. It can be viewed as a philosophical concept denoting the clash of power against power in the striving of all things to become manifest or it can be described as the distinct category of social behaviour as two party trying to get something they both cannot have. (Rummel, 1976) Brewer (2002) Feelings of injustice or deprivation give rise to conflict. These feelings may have some real basis or it may be only because of some false or imaginary ideas. Some times false ego gives rise to conflict. Conflicts are also created or imposed upon by interested persons or groups for some ulterior motive to make some gain out of it. In a democratic country political conflicts will always be there and these are not discouraging if they do not result in violence or go against the interest of the people. In a multi-racial, multi-religious, multi-cultural country like India there is always a challenge on ethnic, communal or cultural issues creating conflicts. The contradiction between the privileged and deprived sections of the people, educated and illiterate people, people of higher caste and...
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...target being perceived, or in the context of the situation in which the perception is made. THE PERCEIVER When an individual looks at a target and attempts to interpret what he or she sees, that interpretation is heavily influenced by personal characteristics of the individual perceiver. Have you ever bought a new car and then suddenly noticed a large number of cars like yours on the road? It's unlikely that the number of such cars suddenly expanded. Rather, your own purchase has influenced your perception so that you are now more likely to notice them. This is an example of how factors related to the perceiver influence what he or she perceives. Among the more relevant personal characteristics affecting perception are attitudes, motives, interests, past experiences, and expectations. Teri likes small classes because she enjoys asking a lot of questions of her teachers. Scott, on...
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...Economics Decision-Making Process Name Institution Economics Decision- Making Process According to (Anderson & Sweeney, 2000) managers and economists use the decision-making process to analyze economic models. Decision-making process involves selection of the best alternative from many choices. It involves setting goals to make decisions, assessing alternative occupations and gathering information. When analyzing economic models, managers and economists note that there are fundamental assumptions that every model relies on to remain valid. These assumptions are present in all decision circumstances. Everyone in the society, from the small business owner to the billionaire investing in the real estate to the teenager applying a job makes some economic decisions at some point. The basic assumptions are surrounding decision-making process always apply. The primary factors surrounding economic decision making include; maximizing value, working on a budget, cost benefits analysis and rational decision making. The process of making economic decisions is complex as that of consumer decision making. When making decisions, businesses derive most of the critical choices from macroeconomics data, any of the choice made could mean the failure or success of their enterprise. The accuracy, reliability and validity of the information the business uses are of great importance (Tremmel, 2008). My aim in this paper, therefore, is to discuss and identify any decision-making processes...
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...HRM 4495 CH 7 Team decision making- pitfalls and solutions 1. Decision making is an integrated sequence of activities -gathering, interpreting and exchanging information -creating and identifying alternative courses of action -choosing among alternatives by integrating differing perspectives -opinion of team members -implementing a choice and monitoring the consequence 2. Individual decision making biases -Framing bias E.G. A spread disease in US, two plans were suggested Plan A: if adopted, 200 people will be saved Plan B: if adopted, 1/3 probability that all people will be saved, but 2/3 probability that no one will be saved. Many people chose plan A, then another 2 plan is suggested Plan C: if adopted, 400 people will die Plan D: if adopted, 1/3 probability that no one will die, and 2/3 probability all people will die. When the identical problem with the same differently, more people will chose the risky plan D. options worded *This inconsistency is a preference reversal and reveals the framing effect. Almost any decision can be reframed as a gain or a loss relative to sth. Decision makers’ reference points for defining gain and loss are often arbitrary. -Overconfidence In the team, overconfidence leads people less to focus on their teammates’ strength, as opposed to their weaknesses and neglect the strength and weakness of members of competitor teams. -Confirmation bias It is a tendency for people to...
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...Understanding the Dilemma of Ethical Decision Making Understanding ethics and utilizing ethical business practices are key to the success in modern business. Traditional business organizations must take into consideration many more aspects of business today, than in the past when the focus was primarily on profits and making money for the shareholders. These ethical principles also influence non-profit and government organizations as well, taking into account the same ethical considerations that for profit organizations deal with. The modern concept of ethical organizations takes into account many issues, some of which include: • corporate social responsibility • the triple bottom line (economic, social and environmental) • ethical management and leadership • globalization • sustainability This list is not all inclusive. Ethics and ethical behaviors cover a wide range of factors and situations. Throughout the world there are many different definitions. With cultural, regional and society based interpretations of the concept. As such there are no world wide set of rules and no set standards of what is ethical. With the growing importance of ethics in the modern world, the fact that there are no set rules is fascinating. This begs the question, what is ethical? To understand this concept we must look deeper than the common definition of what an ethical organization is. There are so many factors that influence and affect an organizations ability...
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