Hofstede describes culture on five dimensions on which cultural values rest – individualism-collectivism (IDV), Uncertainty Avoidance Index (UAI), Power Distance Index (PDI), masculinity-femininity (MAS) and long-term orientation (LTO). Hofstede’s cultural dimensions and their marketing applications are summarized in Table 3.3.
Scores assigned for these cultural dimensions for India with respect to cultural traditions in the country and are discussed below:
1. Individualism-Collectivism:
Rural societies can be described as collectivist. Hofstede (2001) described collectivism as “societies in which people from birth onwards are integrated into strong, cohesive in-groups, which throughout people’s lifetimes continue to protect them in exchange for unquestioning loyalty.” India has an IDV score of 48, which shows that the society has both collectivistic and individualistic traits.
The collectivist side means that people like to belong to their social framework and share the values of one’s groups. That is, people are influenced by one’s family and the extended family consisting of neighbours and relatives. Family, community, caste and religion form strong groups. While many individuals from rural areas live separately when they move to cities for education and employment, they maintain close ties with their families, sending money back home and visiting their families often.
Even when they acquire education and jobs in cities, people exhibit strong ties to their families and traditional values. The average household size in India is 4.8, according to Census 2011 figures. The rural household size (4.9) was higher than urban household size (4.6), showing a greater preference for joint families.
The marketing implications are as follows:
1. Large, Economical Packs:
Large packs of certain goods are preferred in many rural families because of two reasons. First, large packs are found suitable for large families. Second, since rural consumers cannot go very often to nearby towns for their purchases, they tend to buy large packs which also work out cheaper.
2. Price Points:
As families look for value in their purchases, goods must be provided at easy price points. Many rural consumers avoid frills and look for value in their purchases. For instance, Colgate has a range of products at different price points and also offers Colgate Cibaca at a much cheaper price.
3. Quality and Value:
Families seek quality and value. Products that deliver these have a high probability of succeeding than premium or foreign products. For instance, many companies started offering atta (wheat) bread and atta noodles as they were considered healthier than ordinary white bread and noodles.
4. Importance of Social Groups:
Since rural society is influenced by social groups, companies must base their marketing campaigns to encourage peer influence rather than focus on the individual. Opinion leaders assume importance in marketing in rural areas.
2. Power Distance:
Power distance is defined as the extent to which the less powerful members of the family accept the power of other members of the family. India’s score is 77, and this high score indicates high inequality. People show a high degree of dependency in families, accept unequal rights, paternalistic culture and obedience to authority.
The inequality takes many forms. Older members get more respect than younger people and male members exhibit higher power than female members. Power is also held by caste, religious and community leaders. The power distance is reflected in the Gil, calculated by UNDP, which has worsened over the years.
According to UNDP (2017):
‘India’s poor performance on women’s empowerment and gender equality is reflected in many indicators, particularly, the low sex ratio. The government has launched several commendable schemes to save and educate the girl child…however, in many parts of India it continues to remains low. Gender inequality is also reflected in India’s low rank on UNDP’s Gender Inequality Index.’
Advertisements routinely publish culturally assigned roles, for example, girls in the roles of housewives and men as ogling women on the road.
The Human Development Index (HDI) is no better: India ranked 135 out of 187 countries in 2014. When inequality is factored in, it experiences a 30 percent drop in its human development values, ranking 129 out of 146 nations.
The power distance plays itself out in several forms:
i. Working women continue to get lower wages than their male counterparts.
ii. The majority of the female workforce in India is unskilled and has only a basic education.
iii. Women often work in very poorly paid jobs with no security or benefits and in many cases below the minimum daily wage.
iv. Female mortality rates are high and the share of the girl child in education is low.
v. There are restrictions on female lifestyles and freedom, on their dress and behaviour.
vi. Crimes against women are on the rise across the country.
vii. Singh and Bhandari (2012) point out that in the case of married women, their access to money is limited as it is controlled by males, particularly in non-metropolitan households.
Companies can use the power distance in their marketing campaigns in many ways:
1. Target Products to Males:
Products targeted at males will do well because males have more social and economic power. Even female-oriented products are bought by males in many societies.
2. Cheap Products for Females:
Products targeted to females must be cheap and affordable. This explains why smaller packs like sachets tend to do well in product categories like shampoos and cosmetic preparations.
3. Market through Figures of Authority:
Products marketed through figures of authority and opinion leaders tend to do well.
3. Masculinity:
India scores 56 on the masculinity index, pointing to a male-dominated society. Women are discriminated against and lack many freedoms in villages. They are treated as a subordinate gender. A report in the Indian Express speaks about rural attitudes as follows, “A young man in rural Haryana is entitled to the best things of life—from the extra glass of milk to the education that won’t be ‘wasted’ on a girl.” Women continue to be shown in domestic roles in advertisements for better acceptability. There is no sign that such attitudes are changing. Even young people exhibit them.
Interestingly, the Global Report Card on Adolescents 2012 published by the United Nations International Children’s Emergency Fund (UNICEF 2012) finds that:
i. India leads in terms of under-weight adolescent girls – 47 percent of adolescent girls aged 15-19 in India are underweight. This figure is much higher than Bangladesh (35%) and Nepal (26%).
ii. The largest number of anaemia cases is found in India, where more than half of girls aged 15-19 are anaemic.
The UNICEF report (2012) found that 57 percent of adolescent boys in India think that a husband is justified in hitting or beating his wife. Over a half of the Indian adolescent girls, or around 53 percent, think that a husband is justified in beating his wife.
This implies that while companies can cater to male egos by providing ‘macho’ products, products aimed at young girls are unlikely to find a mass market. The way to market feminine products in rural areas, perhaps, is to appeal to the male ego—by projecting how it will raise the status of men. The marketing messages used in urban areas showing empowered women are thus likely to be rejected by the rural consumer.
For example, Rajan (2005), CMD of Anugrah Madison Advertising Pvt., Ltd, mentions the case of a well-known brand of shampoo, which showed in its ad a beautiful model featuring bouncing hair. However, in the Rajasthan market, the message and the product both failed. It was found in post-research that people thought it indecent for a girl to show off her hair. Thus, men do not like the empowered women shown in urban ads, nor can ads made for urban markets be used in rural markets.
The marketing implications of this orientation can be summed up as follows:
i. Companies target high-end products for males, such as motorcycles and SUVs.
ii. Feminine products are unlikely to do well unless targeted at the male ego.
iii. Much of the buying for females takes place only during their marriage, an occasion when families open their purses for dowry for the bride.
iv. Ads showing the empowered, liberated or the fashionable girl will be rejected.
4. Uncertainty Avoidance:
Societies with high uncertainty avoidance scores have anxiety about the future, tend to take few risks, are concerned about security and are less open-minded. India scores 40 on this dimension and is seen to have a medium to low preference for avoiding uncertainty. This means that people like to try out new brands. They exhibit low brand loyalty and are not suspicious of new products. If there are problems with a service or product, the low uncertainty avoidance tends to overlook the defects and adjust their expectations. Companies must make sturdy products for rural markers which are dependable.
5. Long-Term Orientation:
Long-term orientation refers to the society’s future-oriented perspective. India scores 51 on this dimension, which means that it has a long-term orientation. Since rural incomes depend a large part on agriculture, which is marked by uncertainty, consumers are unlikely to splurge on luxury products, but adhere to perseverance and thrift, respect of tradition and family values, honouring parents and ancestors and providing them financial support.
The Economist (2013) reports, “High inflation has prompted households to store ever more of their savings in physical assets rather than the financial system.” Savings were also held in cash. However, post the demonetization of high value currency notes in India, “household bank deposits from small towns and rural pockets exceeded expectations,” reports Business Standard (2016).
Luxury products, thus, do not do well in rural areas where people continue to look for products that last long and deliver value. The few times that people will splurge in villages are at times of marriages, festivals and special occasions. Festivals provide motivational triggers for buying new things, when cash flows from harvests are high. White goods, clothes, upholstery and curtains are bought during festivals.
For instance, in Kerala, 50-60 percent of the sales of consumer durables of the entire year take place during Onam. A festival like Akshaya Tritiya is considered an auspicious time not just to buy gold and metal goods. New opportunities for marketing emerge: July-September is considered the non-resident Indian (NRI) season in Kerala, which almost seems like a festival in markets.
Cultural dimensions help us in understanding rural society and consumption behaviour.