The main issues here are to consider how these biases and stereotypes that may come in the way when dealing with members of other cultures can be avoided or minimised. Both the Self Reference Criterion and ethnocentrism reduces the ability to assess a foreign market in its true light, which could result in serious mistakes and consequences. When faced with set of facts or problems, people tend to react naturally on the basis of the knowledge that they acquired over their life time.
One never thinks about a reaction or how to react but simply instinctively reacts. As a result, such decisions and reactions are often not good ones citeman. To demonstrate effects of Self Reference Criterion we can simply consider misunderstandings or conflicts can happen between people of different cultures as the meaning of time, the attitudes towards the other people can be perceived different in different cultures.
For example, in some cultures distance between individuals very close whereas it is much uncomfortable for Americans. When someone from different culture approaches an American too closely, without knowing that is normal behaviour in other cultures, American reacts adversely and tries to keep the distance.
This results in confusion for both parties. Foreigner assumes American cold and unfriendly while American thinks that foreigners are pushy. It is clear that both sides react according to their values of their own Self Reference Criterion, making both victims of cultural misunderstanding. According Perner consumerpsychologist. However, the influence of both Self Reference Criterion and the ethnocentrism can be controlled effective simply by recognising their effects on our behaviour.
It is crucial to have greater awareness of the need to be sensitive to differences and to ask questions and identify cultural values before doing business in another country. Case of Vicks company can be very food example to this. Before entering Germany, they carried out researches and questionnaires. However, the case of Disneyland proved that how Self Reference Criterion can also make all efforts worthless if appropriate actions not taken.
When they have opened their business in France, they faced a tremendous problem and lost billions of dollars. This was big mistake made by Disneyland stemming from reliance on their Self Reference Criterion in making decision. To reduce this perception and isolate effects of Self Reference Criterion Lee in fao.
C Isolate the Self Reference Criterion influence in the problem and examine it carefully to see how it complicates pattern. Self reference criterion builds up mental constraints and bounds in relation to marketing efforts that will work in the geography and that will be accepted in the culture.
This often leads to misplaced marketing as marketers think their vision matches the market and with time every person and the vision possessed by the individual gets outdated. Thus it is important for marketers to have Self reference criterion but not get swayed away with them. Self reference criterion acts as a filter for sieving potential marketing ideas regarding communication and new products, especially in international strategy. The time saved because of it is huge. Cost cutting exercises are attributed to SRC.
With time people residing at a place develop an understanding about the taboos, values and culture of a place that helps them take vital decisions and decide upon future steps. When MNCs go from one country to another, they have to adapt their practices and the reason they hire host nationals is to get a feel of the country through the SRCs that they have developed over all these years.
Self reference criterion can sometimes have an adverse effect in international markets when compared to businesses done in the home country. Certain steps to avoid adverse impact of self reference criterion are:. When McDonalds launched in India, they have a self reference criterion to other global markets that people eat meat and animal oil. However, half of the population was vegetarian. Hence to adjust to the Indian market, the company not only separated the menu, but also bifurcated the kitchen.
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