Cultural Dynamics |
A relatively stable construct that reflects a shared knowledge structure within a nation-state and that attenuates variability in values, behavioral norms, and patterns of behaviors. |
A relatively fluid construct that reflects individual-based web of significance or meaning that goes beyond the constraints of group membership.
Subject to continued influence by the global culture which reshapes individuals’ ‘personal’ cultures. |
Reputational Strategy |
Stress on managing reputation across vertical market segments in global markets: customers are assumed to be similar within a country. |
Stress on managing reputation across horizontal market segments in global markets: customers within the same segment (e.g., socio-economic status) are assumed to be similar across a group of countries, but different from other segments within the same country. |
Customization vs. Standardization of Reputational Capital |
Potential for customization of reputational capital for each country.
Firms need to balance national culture with individual culture, by finding opportunities for standardization. |
Potential for standardization of reputational capital for each cross-country horizontal segment.
Firms need to balance individual culture with national culture, by finding opportunities for customization. |
Recommended Reputation-Building Approaches |
Generalized Favorability: Reputation as Organizational Character |
Emphasis on generalized favorability (organizational character) is recommended for relatively individualistic countries. |
Across horizontal segments, generalized favorability is more likely to result in:
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Customer-company identification for interdependent self-construal customers
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Trust, customer-company identification and word-of-mouth intentions for independent self-construal customers
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Reputation for Product and Service Efficacy (R-PSE) |
Impact of R-PSE on customer outcomes is homogenously positive across countries, and the strategies do not need to vary. |
Across horizontal segments, the impact of R-PSE is stronger for independent self-construal customers and should be emphasized. |
Reputation for Market Prominence (R-MP) |
Impact of R-MP on customer outcomes is homogenously positive across countries, and the strategies do not need to vary. |
Across horizontal segments, the impact of R-MP is stronger for interdependent self-construal customers and should be emphasized. |
Reputation for Societal Ethicality (R-SE) |
Impact of R-SE on customer outcomes is homogenously positive across countries, and the strategies do not need to vary. |
Across horizontal segments, the impact of R-SE is stronger for interdependent self-construal customers and should be emphasized. |