Idea Transcript
TILBURG UNIVERSITY
Defining the Country Branding of
A comparison between the Dutch and U.S. Target Market Lisa Margarita van Haaren
Bachelor Thesis, 2010
Global vs. Local Marketing ANR: 279459
Supervisor: drs. A.M. van Gool MBA
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MANAGEMENT SUMMARY
The ongoing globalization and as a result the growing competition in the tourism industry makes it necessary for destinations to differentiate the perception of their tourism product in the markets they are catering to ((Blain, Levy, Ritchie, 2005). For this reason country branding is becoming increasingly essential for individual destinations (Blain, Levy, Ritchie, 2005). This is also the case for Curaçao.
This research investigates the differences in culture and other characteristics between the Dutch and the North-American market that need to be taken into account when branding Curaçao. Especially in the Caribbean where destinations are much alike, it is essential to promote a differentiated brand to successfully attract potential and existing markets.
According to MacKay and Fesenmaier (2000) the diversity of cultures represented by tourist target market countries makes it essential to investigate differences in perception of the destination image. In this research Hofstede´s (1991) cultural model was used to compare the two national cultures with each other. Apart from cultural differences, other relevant characteristic differences were identified in order to establish a greater scope of differences between the two target markets. The conclusions of this research indicate the importance to differentiate in country branding strategies between the two target markets. Some differences include that the Dutch market seems to be more feminine oriented (see later explanation) than the U.S. market, while the U.S. market is less influenced by monetary factors compared to the Dutch market. The Dutch market will avoid uncertainty as much as possible, whereas the U.S. market is less inclined to avoid uncertainty. Differences in purpose of visit were also identified. The U.S. market is more prone to visit the island for diving purposes while the majority of tourists from the Netherlands go to Curaçao to visit family.
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Table of Contents Management Summary .................................................................................................................................................2 Chapter 1: Introduction .................................................................................................................................................5 1.1 Problem background ...........................................................................................................................................5 1.2 Problem Statement .............................................................................................................................................6 1.3 Research questions .............................................................................................................................................7 1.4 Relevance ............................................................................................................................................................7 1.4.1 Academic relevance ....................................................................................................................................7 1.4.2 Managerial relevance ..................................................................................................................................8 1.5 Thesis structure...................................................................................................................................................8 Chapter 2: Country Branding .......................................................................................................................................10 2.1 Branding in general ...........................................................................................................................................10 2.2 Country branding ..............................................................................................................................................11 2.2.1 Developments in country branding...........................................................................................................12 2.3 Country branding of Curaçao ............................................................................................................................12 Chapter 3: Culture .......................................................................................................................................................15 3.1 Culture in general .............................................................................................................................................15 3.2 Importance of culture in country branding ......................................................................................................16 3.3 Models of national culture................................................................................................................................18 3.4 Hofstede´s model of national culture ...............................................................................................................20 3.4.1 Hofstede´s cultural dimensions linked to the Dutch and U.S. market ......................................................22 Chapter 4: Market characteristics ...............................................................................................................................25 4.1 Statistical information .......................................................................................................................................25 4.1.1 Age ............................................................................................................................................................25 4.1.2 Gender ......................................................................................................................................................27 4.1.4 Purpose of visit ..........................................................................................................................................29
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4.2 Other relevant characteristics ..........................................................................................................................31 Chapter 5: Most important differences between the two markets ............................................................................33 5.1 Cultural differences ...........................................................................................................................................33 5.2. Characteristic differences ................................................................................................................................34 Chapter 6: Conclusions, Recommendations and Limitations ......................................................................................36 6.1 Conclusions and recommendations ..................................................................................................................36 6.2. Limitations .......................................................................................................................................................39 References ...................................................................................................................................................................40 Appendix
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CHAPTER 1: INTRODUCTION 1.1 PROBLEM BACKGROUND
The tourism industry is constantly growing and is one of the fastest expanding industries today. The industry generates many jobs which in their turn generate revenue for the destinations. According to Duborija and Mlivic (2009), in order to take part in this revenue, destination branding and destination imaging is useful to attract tourists.
Tourism is not only important, but it is the key economic sector for most islands in the Caribbean. Each island is unique and has competitive advantages that can easily be overlooked (Reid, Reid, 1994). While all Caribbean islands share a common identity characterized by “sun, sand and sea”, at the same time they have to compete using their own unique identity and competitive potential that has to be defined, cultivated and branded in accordance with the characteristics of each target group.
The updated version of the Curaçao Tourism Development plan states that two of the main strategies for the Curaçao Tourist Board regarding geographical market planning are to strive aggressively for growth from the North American market and to maintain a dominant share of Caribbean-bound Dutch travelers.
Growth over the next five years will be sought primarily from the North American market. Traditionally Curaçao had only a small share of this market, which is a dominant factor in most Caribbean destinations (Curaçao Tourism Development Plan, 2005). “Despite economic worries in North America, the first 6 months of 2008 give reason for careful optimism” (CTB press release 200839). The Curaçao Tourist Board focuses on intensifying the promotion of the island in the United States with the goal of increasing its share in this important market. To achieve this goal, it is necessary to brand the destination in this market in a way that makes it attractive for United States (U.S.) tourists.
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According to a press release by the Curaçao Tourist Board in 2008, the Dutch market has grown substantially in six years time and the amount of tourists reached a record of more than 100.000 in 2007. The effect of the Dutch market on the tourist industry in Curaçao is therefore very dominant.
By examining tourism literature it becomes clear that the topic of destination branding has become quite widespread in the last decade. While there is relatively much general research done in this field, little research has been done on the effect of cross-cultural tourist reaction on country branding even though the sector is becoming more global. “The propensity of destinations to use the same visuals to lure tourists to their destinations, and the variety of cultures represented by target market countries, heightens the issue of meaning plurality in destination image perception” (MacKay, Fesenmaier 2000, p.417).
According to Morgan, Pritchard and Pride (2004), the consumer and marketplace should be the focus of how to brand a country, not the country itself. In order to decide on the way country branding should be done for each of these specific markets, differences in characteristics of the Netherlands and the United States of America need to be pointed out. Since little research has been done on differences between target market countries when designing a country branding strategy, the following problem statement can be formulated.
1.2 PROBLEM STATEMENT
Because of the strong competitiveness of the global tourism industry, it becomes more important to market destinations appropriately and effectively. By reviewing strategic management literature, it becomes clear that capitalizing on a destination´s unique attributes is the way to gain competitive advantage (Miller, Henthorne, 2007). But not all attributes have the same attraction for all target groups. The question that arises is which attributes need to be emphasized for which target group. This research will look at the cultural differences and other
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characteristic differences between the Dutch and the U.S. market; it will be made clear which of these differences will need to be incorporated in the destination branding strategy of Curaçao for each of these different markets. This leads to the following problem statement: How can cultural differences between the Netherlands and the United States of America be taken into account when defining the country branding of Curaçao for each of these markets?
1.3 RESEARCH QUESTIONS
RQ1: What is country branding and what is the current country branding of Curaçao? RQ2: What are the cultural differences between the Dutch and the U.S. market? RQ3: What are the characteristics of the Dutch and the U.S. market? RQ4: What are the most important differences in culture and other characteristics between the two markets that need to be taken into account in the country branding of Curaçao?
1.4 RELEVANCE 1.4.1 ACADEMIC RELEVANCE
Cross-cultural market research based on tourism is limited and hindered by numerous and divers factors e.g. lack of resources and ethnocentrism (Dimanche, 1994; MacKay & Fesenmaier 2000). From the academic perspective this research is relevant because a lot is known about country branding but little is known about the link it has with differences in characteristics between two different country markets. This thesis will bring into focus the attributes that need to be taken into account when branding a country in each of the target markets. According to Reisinger (2009), tourism studies examining cultural differences among various nationalities need to be conducted. Reisinger and Turner (2003) also agree with this statement by stating that
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literature on awareness of cross-cultural differences and sensitivity to cultural differences in the tourism sector is missing. The insights gained from this thesis will be useful in the marketing and tourism field, but also in the consumer behavior sector. It will give insight on how characteristics of a specific market can impact country branding and how they should be taken into account when designing a destination branding strategy.
1.4.2 MANAGERIAL RELEVANCE
According to MacKay and Fesenmaier (2000) the diversity of cultures represented by tourist target market countries makes it essential to investigate differences in perception of the destination image. Implementing a consistent image across different markets may be favorable, nevertheless standardizing an image across cultures may result in a difference in perception by the receiver (Hofstede 1991) and, as a result, the marketing effectiveness will lessen (MacKay and Fesenmaier, 2000). The answer to the problem statement will not only help the Curaçao Tourist Board to focus on specific attributes in the specific markets, but it will also be useful for other islands in the Caribbean to consider the differences between the Dutch market and the U.S. market when designing their destination branding strategy. As stated by Reisinger (2009), “understanding national cultures of international tourists can assist in making better marketing and management decisions and serving tourists more effectively and efficiently” (p.389). Williams and Uysal (2003) share the same opinion as Reisinger (2009), namely, that destination authorities must acknowledge that the heterogeneity of tourist markets makes cross cultural research increasingly necessary and its management and marketing implications need also to be considered.
1.5 THESIS STRUCTURE
In this research a literature study will be carried out in order to answer the research questions and consequently the problem statement. Chapter 2 will explain the country branding phenomenon in general. Why is it important? What are the factors that need to be taken into
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account when branding a country? Also, the current country branding strategy of Curaçao will be looked at. In chapter 3 the culture phenomenon will be discussed and then a couple of relevant cultural frameworks will be pointed out. After that a comparison will be made between them. A decision will be made on which framework to use in this research. Then the framework will be linked to the Dutch and the U.S. market. Chapter 4 will deal with other characteristics apart from culture that can be of influence when branding a country in a specific market. First the relevant factors will be pointed out, and then these factors will be linked to the two target markets. The last chapter (5) will conclude on what the important differences between the two markets are that need to be taken into account. A proposition for the country branding strategy in each market will be given.
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CHAPTER 2: COUNTRY BRANDING
This chapter will explain the country branding phenomenon in general. The current country branding of Curaçao will also be looked at. Information on the current country branding of Curaçao will be acquired from the existing marketing plan of the Curaçao Tourist Board. 2.1 BRANDING IN GENERAL
A brand is much more than a name or a logo that serves as identification of a product or producer. According to Southgate (1994), a brand is a collection of intangible values in the mind of the user. These values are created by marketers of the product in question, but are usually not visible to the consumer (Rubinstein, 1996).
A brand consists of functional benefits and
emotional benefits. Emotional benefits are vital in the sense that they are unique for each brand and consequently are harder to replicate by competitors (Urde, 1999). As stated by Sheth, Mittal, and Newman (1999), certain brands also have social meaning or social value and are used as an instrument of self expression.
Morgan, Pritchard and Pride (2004) stated that a brand is a distinctive combination of characteristics of a product and added values. These values that are both functional and nonfunctional are in the awareness of the consumer and are linked to the brand, sometimes unconsciously. Brand advantage can be gained through communicating the benefits of the product to the consumer. However, the way in which the product is positioned in the market is more important than the actual characteristics of the product. Marketers must position their brand in a unique way to make substitution by other brands less likely. The desired position of the brand can be achieved by highlighting specific attributes that match the target market better than that of the competing brands (Shiffman and Kanuk, 2000).
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2.2 COUNTRY BRANDING
Tourism products and services are intangible and belong to a relatively large market. That is why destinations need to project distinctive images to enhance their chance of being chosen by potential tourists. It has only been relatively recent that country (destination) branding has begun to emerge in academic literature. Some examples of studies that combine branding with tourism are Blain, Levy, Ritchie, (2005) and Hosany, Ekinci, Uysal, (2006).
To understand the concept of destination branding, one can look at the country in question as a product. The identified parts of the “product” that are favorable need to be communicated in such a way that the favorable and unique features are emphasized for specified target groups. To a great extend, analyzing target group perceptions and designing a communication mix are more difficult for places than for products. “Place branding is an extremely complex and highly political activity that can enhance a nation´s economy, national self image and identity”. (Morgan, Pritchard, Pride 2004, P14)
As a result of the ever-increasing competitiveness in the tourism industry, destination branding is becoming increasingly necessary for individual destinations. Because of the highly fractured and intra-competitive collection of small islands that compete with increasingly aggressive tourism alternatives in the world, it is necessary for the Caribbean region to take part in destination branding (Miller & Henthorne, 2007). A well-differentiated and consistent image is a key component to the success of modern-day branding (Aaker & Joachimsthaler, 2000). The identification and compilation of critical attributes is an essential step in formulating the country branding strategy. Apart from the unique selling points (USP) that need to be communicated to the tourist target markets, the medium by which the message is communicated is also of interest.
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2.2.1 DEVELOPMENTS IN COUNTRY BRANDING
In recent years the internet has played an important role in creating tourist destination images. The use of internet in both the supply and demand of tourism products increased drastically in the past decade. In this day and age the internet is essential in creating a destination image (Belullo, Krizman Pavlovic, 2007). According to WTO Business Council (1999), as cited in a paper by Dooling, Burgess and Cooper (2002), tourism is an abnormal product because it cannot be sampled before making the decision to purchase it. It only exists as information at the point of sale. As said by Walle (1996), the internet is an important medium for this non tangible product as it provides global reach and multimedia capability. This makes it an increasingly vital method for the promotion of tourism services. For companies in various sectors the internet is becoming the most essential tool to build and sustain brands (Rayport & Jaworski, 2004). The competitive position of a travel destination can be improved through the internet. The web can reduce advertising cost and simultaneously increase visibility (Buhalis, 2000 & Jang, 2004).
2.3 COUNTRY BRANDING OF CURAÇAO
The Curaçao Tourist Board´s core function is to market the island and its mission is to promote “Brand Curaçao” across the market by taking a holistic view of the Curaçao tourism product (Update of Curaçao Tourism Development Plan (CTDP), 2005) 1 . According to Supphellen & Nygaardsvik (2002) and Wells, Burnett & Moriarty (2003), an appropriate slogan is vital for the promotion campaign in order to successfully build a brand image. But as the Curaçao tourism development plan indicates, Curaçao has struggled to develop a consistent brand in the past and the Curaçao logo was changed various times.
In a study by Miller and Henthorne (2007), in which both slogans and images presented on destinations’ websites were investigated, the following conclusion about Curaçao ´s slogan
1
A description of the Curaçao Tourism Development Plan can be found in the appendix
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was drawn: The slogan of Curaçao: “In the Southern Caribbean. Real. Different,” mentions its location within the region, but it does not indicate why it is particularly real or different compared to competing destinations (Miller, Hentrhome, 2007). An enduring brand strategy needs to be implemented in order to set Brand Curaçao apart from competitors (CTDP, 2005).
As mentioned before, an important but complicated component of country branding is the selection of the unique selling points of the island. The identification and selection of favorable attributes is vital for the branding in specific markets. Curaçao has a variety of attractions and attributes. Although it may be the general consensus that none in themselves constitute a unique selling point, Curaçao unquestionably possesses a unique set of very attractive special selling propositions (CTDP, 2005).
A variety of researchers have tried to identify the main attributes of any particular destination. Some of these attributes are culture, architecture, climate, transport, entertainment and cost (Kozak, 2002). Attributes such as destination image strengthen these factors (Rodriguez del Bosque, San Martin & Collado, 2006). In the CTDP, some important attributes of the island are pointed out. According to the plan, the year round good weather, the vibrant colors of the Handelskade, the cosmopolitan mix of ethnic cultures, a superb dive product, and the Curaçao blue liqueur can help to create an atmospheric brand absolutely unique to Curaçao (CTDP, 2005)
What is important to note in this research is the fact that the Curaçao tourism development plan states that “a consistent brand image would not preclude different treatments of the selling propositions in different marketplaces” (CTDP, 2005, p.47). This means that no distinction will be made between different target markets when it comes to the attributes that need to be communicated in order to create and build “Brand Curaçao”.
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From this chapter it can be concluded that it is necessary to differentiate country branding between distinct target markets. Now that the importance of the differentiation has been brought into light, it is important to look at the cultural differences between the two target market countries.
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CHAPTER 3: CULTURE
This chapter will emphasize the importance of cultural differences in relation to the tourism industry. The culture phenomenon and the most relevant cultural frameworks will be dealt with. After that, the cultural characteristics of the Dutch and the U.S. market will be brought into light. 3.1 CULTURE IN GENERAL
There is no exact definition of culture. It is a widely discussed matter and is open to interpretation. By examining existing literature it becomes clear that there is a variety of ways in which culture can be explained.
These explanations can range from simple definitions to
complex models. The concept of culture has been studied for hundreds of years. Nevertheless there is no consensus on one universal definition. To get a clearer idea of what can be understood by culture, some of the most prevalent definitions will be discussed here.
According to Kroeber (1949), the word “culture” (“kultur”) can be found as early as in 1843 in the German language. Ford (1942) explained culture by saying that it consists of learned problem solutions. Kroeber (1952) defined culture as the historically distinguished collection of habitual ways of functioning of a society. In the past culture was also defined as “that complex whole which includes knowledge, beliefs, art, morals, laws, customs and any other capabilities and habits acquired by man as a member of society”(Tylor, 1871, p.1). According to Parsons and Shils (1951), culture is a collection of a set of norms, values, and symbols that guide the behavior of an individual.
Although only the more acknowledged definitions of culture will be discussed here, an infinite number of more recent definitions exist. Hofstede defines culture as the "software of the mind" that guides us in our daily interactions (Hofstede, 1991). As stated by Trompenaars and Hampden-Turner (1993), because members of a culture share common history, they are prone to
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share common attitudes as well. Schein (1999) defines culture as the sum total of all the shared, taken for granted assumptions that a group has learned throughout its history.
Culture is an evolving phenomenon that can be interpreted and re-interpreted in many ways. Nevertheless, one of the most used and complete definitions of culture was developed by Kroeber and Kluckhohn (1952). According to Kroeber and Kluckhohn (1952) “culture consists of patterns, explicit and implicit, of and for behavior acquired and transmitted by symbols, constituting the distinctive achievement of human groups, including their embodiment in artifact; the essential core of culture consists of traditional (i.e. historically derived and selected) ideas and especially their attached values; culture systems may, on the one hand, be considered as products of actions, on the other as conditioning elements of further action” (p.181).
As van den Bosch and van Prooijen (1992) stated, both Hofstede (1980) and Laurent (1983) agree that a distinction can be made between nations, by looking at the way of thinking that most inhabitants share. These ways of thinking can be considered part of a national culture. Therefore, although cultural differences exist within countries, only the Dutch national culture and the U.S. national culture will be considered in this research.
3.2 IMPORTANCE OF CULTURE IN COUNTRY BRANDING
Cultural differences of target market countries are important when defining a country branding strategy. Several researchers have emphasized the importance of cross-cultural analysis in destination branding. Culture seems to be one of the key elements when targeting a specific tourist market. According to Reisinger and Turner (2003), researchers and tourism practitioners fail to realize the importance of cultural differences for tourist holiday experiences, contentment and, as a result, repeat visitation. They state that the ability to attract and satisfy specific markets often relies on psychological buying motives such as cultural interpretation of the purchased
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product. Pizam and Jeong (1996) also agree that national cultures have a dominant effect on tourist behavior.
Nevertheless, not all researchers agree on this issue. There is also criticism on crosscultural analysis in the tourism industry. Critics like Plog (1990) and Dann (1993) have argued that the ongoing globalization of the tourist market makes cross-cultural differences superfluous. This debate on convergence – divergence of the tourism industry has been going on for quite some time. The trend towards convergence makes destinations lose their unique cultural attributes in order to standardize tourism services.
But after a further review of literature, it becomes clear that the topic of culture in the tourism industry has become vital, and in some cases strictly necessary. As said by Hofstede (1991), it may well be advantageous for marketing implementation to maintain a consistent image, but the use of symbols and images across cultures may have different connotations. This can lessen the effectiveness of the marketing message. As a result of the lack of resources, cross-cultural market research based on tourist behavior is scarce (Dimanche, 1994). Nevertheless, some important research studies have been done in the field of culture related to travel motives and vacation choice behavior; (e.g. Richardson & Crompton 1988, Calantone et al. 1989, and Yuan and McDonald 1990).
Cultures hold common value dimensions that have different functions. In consequence of these value dimensions, people within a culture share common beliefs, attitudes, customs, meanings, and behavior norms (Triandis, 1972). Some dimensions that are influenced by these common value structures are lifestyle, leisure, and consumer behavior patterns (Richardson and Crompton 1988); for that reason, it is likely that the manner in which destination images are perceived is influenced by cultural background” (MacKay and Fesenmaier, 2000)
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The recently published book “International Tourism: Culture and Behavior” by Reisinger (2009), investigates the importance of culture within the tourism industry. The conclusion of this book indicates the necessity of cross-cultural distinction between tourist target markets. Reisinger (2009) states that cultural traits of future travelers should be understood and that business strategies should be adjusted as much as possible to specific cultures.
In recent years, research on cross-cultural differences analyzed and recognized the presence of differences in behavior between tourists from different cultures. Such an analysis can be found in for example the paper by Sussmann and Rashcovsky (1997) in which vacation travel patterns and trip characteristics were analyzed. Other tourism studies that included cross-cultural differences are for example Reisinger and Mavondo (2006) who studied tourist travel risk perceptions. Money and Crotts, (2003) looked at the influence of culture on information search behavior of tourists and the planning of international vacations. In papers by amongst others Jang & Cai, (2002), Kozak (2002), and Laing & Crouch (2005) tourist motivation was investigated by comparing cultures.
3.3 MODELS OF NATIONAL CULTURE
There are several existing models of national culture. The most prevalent models include multiple dimensions. Hofstede´s (1984, 1991, 2001) national culture model includes five dimensions 2. Trompenaars & Hampden-Turner (1997) used seven dimensions in their cultural model, while the GLOBE program makes use of nine dimensions to measure culture 3 . The following table compares Trompenaars & Hampden-Turner´s dimensions and the GLOBE´s nine dimensions to Hofstede´s cultural dimensions.
2
Hofstede´s cultural dimensions model is explained in chapter 3.4 . A description of Trompenaars & Hampden-Turner´s cultural model and of the GLOBE program is given in the appendix
3
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M asculinity/ Individualism/ Power Femininity Collectivism distance
Uncertainty avoidance
Long-term orientation
19
Other
Hofstede (1984) Hofstede (1991) Trompenaars Neutral/ & HampdenAffective Turner (1997)
Universalism/ Particularism Individualism/ Communitaria nism
Time as sequence/ Time as synchronisation
GLOBE
In group collectivism Institutional collectivism
Future orientation
Specific/Diffuse Inner / Outer directed Achieved / Ascribed status Performance orientation Gender egalitarianism Humane orientation Assertiveness
From the table above it can be concluded that Trompenaars & Hampden-Turner´s model lack important dimensions that could be of influence on tourist behavior, e.g. uncertainty avoidance. The GLOBE model includes dimensions that are irrelevant and superfluous for this study, e.g. performance orientation.
After reviewing literature in the field of cultural theories, it is apparent that the five dimensions model created by Hofstede (2001) is the most appropriate model to use in this research. As Smiths et al. (1996) states, Hofstede´s model is the most complete and robust when you look at the number of national cultures that have been sampled. According to Sondergaard (1994), Hofstede’s cultural dimensions model is the most widely used cultural framework in psychology, sociology, marketing, and management studies. Steenkamp (2001) shares the same opinion in his paper on the role of national culture in international marketing research. Hofstede´s concept of national culture has also been widely questioned. Some researchers such as Peppas (2001) state that Hofstede´s model is not representative of a culture because it assumes that cultural differences are aligned with territorial boundaries of a nation. Other papers by for
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example Harris and Davison, 1999) suggest that there exist cultural and ethnic differences within nations, which are not addressed by using Hofstede´s cultural dimensions.
Additionally, a review of the five dimensions model of Hofstede shows that these dimensions to measure culture are the most appropriate to apply in a cross-cultural setting (e.g. Kirkman, Lowe and Gibson, 2006). The model is the most useful for comparative cross-cultural studies. According to Soares, Farhangmehr and Shoham (2006), “several scholars discuss the choice of dimensions most appropriate for conceptualizing and operationalizing culture e.g. Bond (1987), Clark (1990), Dorfman and Howell (1988), Hofstede (1984), Hofstede (1991), Hofstede (2001), Inkeles and Levinson (1969), Keillor and Hult (1999), Schwartz (1994), Smith et al. (1996) and Steenkamp (2001) ”.
There is a high level of convergence across cultural approaches. This level of convergence supports the relevance of Hofstede´s cultural framework and justifies the use of his five dimensions. Despite criticism on Hofstede´s cultural model, research shows that it remains the most practical and simple approach of doing cross cultural comparisons between countries. This thesis will use Hofstede´s dimensions as a shortcut to identify the cultural differences between the two countries. This does not imply that Hofstede´s framework covers each and every cross cultural difference between the countries; nonetheless, it provides the most complete view on cross cultural dimensions that are relevant in the tourism field.
3.4 HOFSTEDE´S MODEL OF NATIONAL CULTURE
Hofstede conducted the most complete study of how culture influences values by collecting and analyzing data from more than 100.000 individuals from forty countries. From the results, and later additions, he developed a model that measures five dimensions to differentiate cultures.
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Some researchers argue that cultural research should move beyond national cultures (e.g. Huo and Randall, 1999). However, in this research Hofstede´s national culture model will be used to compare the cultures of the Dutch and the U.S. tourist target markets. This model gives a clear indication of the differences in dimensions of a culture between the two countries. The five cultural dimensions can be linked to the tourism field in order to get an understanding of the behavior of both target markets.
According to Kozak and Decrop (2009), “numerous studies examined cultural differences in tourist behavior using Hofstede´s cultural dimensions”. In tourism, the “individuality” dimension was found to have a significant influence on, for example, perceptions of service quality and travel information search. The “uncertainty avoidance index” was found to have influence on, amongst others, travel characteristics and patterns and on information search. The “masculinity” dimension was found to influence tourists´ loyalty and travel satisfaction (Kozak, Decrop, 2009).
The national culture model of Hofstede includes five dimensions: Power distance; Individualism versus collectivism; Masculinity versus Femininity; Uncertainty Avoidance; Long-term Orientation versus Short-term Orientation. Hofstede uses these dimensions to examine how national cultures differ and to reveal the unexamined rules by which people in different cultures think, feel, and act in business, family, schools and organizations.
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3.4.1 HOFSTEDE´S CULTURAL DIMENSIONS LINKED TO THE DUTCH AND U.S. MARKET 100 90 80 70 60 50
USA
40
the Netherlands
30 20 10 0 PDI
IDV
MAS
UAI
LTO
Figure 1: Hofstede´s cultural dimensions applied to the Netherlands and the USA
Power distance (PDI) Power distance is a measurement of the interpersonal power or influence between people (Hofstede 1991). This dimension measures the extent to which a less powerful member of an organization or family accepts and expects that power is distributed unequally. According to Hofstede’s studies, the Netherlands has a ranking of 38, whereas the world average is 55.This indicates that the Netherlands does not have a large gap between the poor and the wealthy. The Dutch have a strong belief in equality and have the opportunity to grow in society. For the U.S., PDI is the second lowest ranking dimension (40), which also indicates the equality between societal levels. In both countries there is a cooperative interaction across power levels.
Individualism / collectivism (IDV) This dimension represents the degree to which individuals are integrated in a group. Both the Netherlands and the U.S. belong to the highest ranked countries in the IDV dimension. This
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means that the both countries have an individualistic culture. According to Hofstede (1980), this dimension is focused on the degree to which either the individual or closely knit social structures are the basis for social systems. On the individualistic side, the ties between individuals are loose and people are more self reliant. These societies consist of people who look after themselves and their direct family only, whereas, in collectivistic cultures, people believe that they belong to groups that look after them in exchange for loyalty. As Hofstede (1991) stated, privacy is considered the cultural norm in individualistic societies.
Masculinity /Femininity (MAS) This dimension explains the distribution of roles between genders. The Netherlands scores 14 on MAS. This indicates a very low level of masculinity within the society. According to Hofstede (1980), in high feminine societies like the Netherlands, social gender roles overlap, with both men and women valuing ‘feminine’ qualities such as modesty, intuition and quality of life above the more traditionally ‘masculine’ qualities of aggression and competition. The assertive pole has been called 'masculine' and the modest, caring pole 'feminine'. The U.S. has a high ranking of Masculinity (62), compared to the world average of 50. According to Hofstede (1991), this indicates a higher degree of gender differentiation of roles. A major portion of society and power structure is dominated by the male. Consequently, the female population becomes more competitive and assertive in order to shift toward the male role model and away from the female role.
Uncertainty Avoidance (UAI) The Netherlands scores a 53 on UAI. According to Hofstede (1991), this score indicates a cultural tendency to minimize or reduce the level of uncertainty within the population by enacting rules, laws, policies, and regulations to cover most any and all situations or circumstances. Avoidance of uncertainty is valued highly in the sense that it has many laws and regulations to keep situations organized and unambiguous. People in these kinds of societies avoid unknown situations or situations that are different from usual. And to avoid these
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ambiguities and misunderstandings, the Dutch like to rely on facts and hard figures. They usually experience more stress in dealing with unknown future than those that are more tolerant of ambiguity. People in uncertainty avoiding countries are also more emotional, and motivated by inner nervous energy (Hofstede, 1991). By planning everything carefully the Dutch try to avoid uncertainty. According to Hofstede (1991), the society of the Netherlands relies on rules, laws and regulations in order to avoid uncertainty. The U.S ranks 46 in this dimension, compared to the world average of 64. This lower ranking indicates that the society has fewer rules and controlling outcomes and results is less needed. Tolerance for diversity of beliefs, thoughts, and ideas is common in the U.S.
Long-term / Short-term Orientation (LTO) According to Hofstede (1991), the Netherlands, which scores 44 on LTO, was the most longtermist European nation, ranked tenth out of 23 countries surveyed. Some characteristics of societies based on long term orientation are persistence, ordering relationships by status, thrift and having a sense of shame. Short term oriented societies have the following characteristics: personal steadiness and stability, protecting ´face´, respect for tradition and reciprocation of greetings, favors and gifts. A low LTO ranking is indicative of societies that appreciate cultural traditions. The United States scored low on this dimension: 29, compared to the world average of 45 (Hofstede, 1991).
In this chapter the differences in culture between the two markets were pointed out using Hofstede´s cultural model. There are clear differences between the two markets. These differences will be dealt with in chapter 5. First other important characteristics of the two markets, apart from culture, will dealt with in the following chapter.
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CHAPTER 4: MARKET CHARACTERISTICS
This chapter will identify other characteristics apart from culture that can be of influence when branding Curaçao in the specific markets. 4.1 STATISTICAL INFORMATION
Based on information acquired from the Curaçao Tourism Board, there are statistics on arrivals by age groups, gender and purpose of visit. This information is vital for the purpose of pointing out the differences in behavior between the U.S. and the Dutch tourist markets when visiting the island of Curaçao. From this information the segments in the markets that need to be focused on are brought into light, from these segments the differences are then pointed out. Apart from characteristics from statistical information, other relevant characteristics will also be revealed. 4.1.1 AGE 45,00% 40,00% 35,00% 30,00% 25,00%
USA
20,00%
Netherlands
15,00% 10,00% 5,00% 0,00% 0-14
15-24
25-44
45-64
65+
Figure 3: Arrivals by Age groups (Curaçao, 2007)
Statistics on the age of tourists visiting Curaçao show that the percentage of visitors from the U.S. with an age between 45 and 63 is almost 7% higher than the percentage of the tourists with the same age visiting from the Netherlands. The majority (41%) of tourists visiting from the
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U.S. are between the ages of 45 and 63, whereas, the majority (37%) of Dutch visitors fall in the age group of 25 to 44. This indicates the need to take the difference in age of travelers from the two target market countries into account in the country branding strategy. Additionally, several researchers have found that age influences vacation destination choice behavior and the overall travel behavior of tourists.
Research regarding the behavior of seniors in the pleasure travel market suggests that 80% of all vacation dollars spent in the United States comes from people aged 55 and older (Rajshekhar, Javalgi, Edward, Thomas and Rao, 1992). According to Shoemaker and Stowe (1989), travelers in this age group travel more often, tend to go longer distances, and stay away longer than any other age group. Anderson and Langmeyer (1982) examined the differences and similarities between travelers younger than 50 and those older than 50. The results concluded that travelers older than 50 years favored non hectic pleasure vacations. This age group preferred preplanned trips for rest and relaxation or for visiting relatives. Although the group of travelers younger than 50 years of age also prefer to travel for rest and relaxation, this younger group was more likely to participate in outdoor recreational activities or to visit manmade amusement facilities (Rajshekhar, Javalgi et al, 1992). The results of analysis by Rajshekhar, Javalgi, et al. about senior and non-senior travelers indicates that seniors are more likely than non-seniors to use travel agents for making travel arrangements. For this reason it is important to make sure that travel agents are an important aspect of marketing programs aimed at senior travelers. Regarding young tourists, Carr (1999) pointed out that young tourists of both genders put much value on night-time activities; this younger aged group regarded activities during the day as a way of filling time.
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4.1.2 GENDER 60,0% 50,0% 40,0% 30,0%
USA the Netherlands
20,0% 10,0% 0,0% Male
Female
Figure 4: Arrivals by Gender (Curaçao, 2007)
From the statistics on arrivals of tourists in Curaçao, it can be concluded that there is a clear difference between the amount of females and males visiting from the U.S. and the amount of females and males visiting from the Netherlands. This means that gender plays a different role in the tourist behavior of each of the two separate markets. In 2007, the percentage of Dutch females visiting the island was slightly higher than that of Dutch males visiting the island. Although it is a difference of less than 2%, it indicates that the majority of Dutch tourists are women. In contrast, the percentage of females visiting Curaçao from the U.S. is a little less than 45% compared to the 55% of males visiting the island. This indicates a clear difference in behavior of the two tourist markets. Slightly more than 50% of the Dutch tourists are women, whereas a little over 55% of U.S. tourists are male.
There are several existing studies that examine the effect of gender on tourist motivation. Some of the leading literature in this field includes Carr (1999), Frew & Shaw (1999) and Laing (1987). According to Kinnaird and Hall (1994), gender plays a vital role in all aspects of tourism related activities. Due to the fact that there is a difference in socialization between males and females, a difference in preference in tourist activities is to be expected (Xie, Costa & Morais,
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2009). Other studies by for example Frew & Shaw (1999) examined the relationship between gender and tourist behavior. Their study shows that there is a difference in what men and women regard as interesting when it comes to attractions they actually visited and those attractions they intended to visit in the future.
While reviewing literature in the tourism field, there is a clear indication of the emergent and rising importance of the female segment in the tourism industry. Some examples of such studies includes Ekinci, Prokopaki, & Cobanoglu, 2003; Morais & Zillifro, 2003). The decision destination choice behavior of women needs to be taken into account when defining a country branding strategy if the tourist target markets are mostly run by women.
A number of interesting facts followed from examining gender differences in tourist behavior. For example, Laing (1987) who sampled tourists from Britain found that female tourists had a more active approach to vacations; women showed to be more interested in walking and shopping and visiting historical or cultural sites. Males on the other hand illustrated to be more passive than females while on vacation; males are more interested in relaxing vacations, sunbathing opportunities and in visiting artificial attractions. According to McGehee, Loker-Murphy & Uysal (1996), females have a higher motivation to maintain family bonding than males, due to dominant gender roles. However, these findings are inconsistent with Laing´s (1987) findings that female tourists prefer active vacations. McGehee, Loker-Murphy & Uysal (1996) argue that women are motivated by relaxation and comfort while males seek adventure. This argument can also be supported by the social role theory which indicates that exploration of nature and rural landscapes are associated with male characteristics instead of female characteristics.
According to Xie, Costa and Morais (2009), “Tourism providers should pay individual attention to each gender’s needs when designing, promoting and delivering tourism products”. (P381) Their study suggests that tourism practitioners must keep an eye on cultural changes
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(especially gender roles) in the target markets; there must be reflection on how these changes may be manifested in the consumption of their destination travel product. This is important in order to effectively market to the female and male segments. They suggest that female tourists are more motivated by family bonding than males. These gender specific motivations should be recognized in order to adequately attract both segments to the destination. Marketing messages will be more effective if these motivational preferences are taken into account. An important example that Xie, Costa and Morais (2009) give is that images that project a sense of family joy will be more attractive to women, and consequently result in more powerful persuasion by female tourists.
4.1.4 PURPOSE OF VISIT 80% 70% 60% 50% 40% 30% 20% 10% 0%
USA Netherlands
Figure 2: Purpose of visit per country (Curaçao, year 2007)
From statistical information on purpose of visit to Curaçao, it becomes clear that there is a significant difference in the purpose of visit between the Dutch and the U.S. market. In 2007 the vast majority (73%) of tourist from the Netherlands came to the island to primarily visit family. This percentage is notably higher than the 24% of tourists that arrive from the U.S. with the purpose of visiting family on the island. This large difference could be accounted to the large
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number of Dutch interns in Curaçao and the large amount of Curaçao-ans studying in the Netherlands.
Another noticeable difference is in the diving category. 22% of U.S visitors indicated that the purpose of their visit to the island is diving. From the Dutch tourists only 2% visited the island with the purpose of diving. In 2007, the total estimated number of certified divers worldwide is 22.1 million. 7.3 million of these certified divers are classified as “active” divers. According to the Caribbean Tourist Organization (CTO), each year the diving market generates $8 billion. CTO states that 2.7 million divers took a diving vacation in 2007. The characteristics of divers are that they are relatively young (25-40), single (mostly) males who travel regularly and seek adventure. These divers have a relatively high income and are either professionals or self-employed. 75% of divers in the U.S. are under 50 years. The US has roughly twice as many (4.2 million) active certified divers as Europe (2.2 million).
Although there is not much data available on the global honeymoon industry, the U.S. honeymoon market was estimated to be $13.7 billion in 2007 (CTO). Literature suggests that the growth of the honeymoon market will increase. Some developments that contribute to this growth are the increase in second marriages and the increase in marriages between people of a slightly older age group (35-45). The former and the latter are expected to have a higher income than the younger traditional newlyweds. The gay/lesbian market should also be regarded as a market with significant potential. According to Community Marketing’s Gay Consumer Index and Lesbian Consumer Index (2007), this market has an above average annual income (extracted from www.gayconsumerindex.com, May 2010); this makes it a very attractive segment in the honeymoon niche market.
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4.2 OTHER RELEVANT CHARACTERISTICS
According to the world tourist Organization (2002), a high percentage of vacations are being planned online as Internet-marketing is becoming critically important to the tourism industry. As Wherthner and Klein (2000) state, tourists can now search for information about a destination as well as view virtual experiences of the destination, thanks to Internet-marketing. According to Douglas and Mills (2004), U.S. travel consumers in general have made the web their number one source for travel-related information.
Nevertheless, the use of internet as information search behavior before travelling is not limited to the U.S. market only. The same can be stated for the Dutch market, as a well developed society. According to Douglas and Mills, it has been shown that destination websites have a large influence on travel behavior (e.g. Tierney, 2000).
Literature about characteristics of the two markets related to travel behavior indicates that there is a difference in the way in which the Dutch and the U.S. market organize their vacations. From a sample study of van Raaij and Francken (1984) the difference found between the Dutch sample and the U.S. sample is that the U.S. market tended to organize their own vacation trip, whereas a large proportion of the Dutch sample bought a package tour. This research was done in the 1980´s; therefore the vacation organizing behavior may have changed, especially with the emergence of the internet. Nonetheless, it indicates the likelihood of the Dutch tourist to purchase a package deal instead of arranging the trip piece by piece like the majority of U.S. tourists.
Also it might be useful to explore the market of ethnic tourism. As a historical center of slavery commerce, Curaçao has a lot of vestiges and museums to interest Europeans interested in colonial history and Afro-Americans looking for their roots. This area however should be treated with the utmost caution, as it could have a reverse effect.
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It can be concluded that there are significant differences in characteristics between the two tourist markets. It is important to indicate the most important differences that need to be taken into account when branding the Curaçao tourism product. The next chapter (5) will identify the relevant and vital differences between the Dutch and the U.S. target market.
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CHAPTER 5: MOST IMPORTANT DIFFERENCES BETWEEN THE TWO MARKETS
This chapter will identify the most important differences between the Dutch and the U.S. market that need to be taken into account when branding the island. In chapter 3 the cultural dimensions of Hofstede were linked to the two markets. In this chapter the most important cultural differences will be pointed out. In chapter 4 other relevant characteristics were mentioned, this chapter will identify the essential differences between the two markets. 5.1 CULTURAL DIFFERENCES
By examining Hofstede´s cultural dimensions model in chapter 3, significant differences were found in three of the five dimensions, namely, MAS, UAI and LTO. No significant difference was found between the two countries in the PDI; both the Netherlands and the United States rank low in this dimension. Another dimension that did not show a considerable difference between the two countries is the IDV dimension. Both countries belong to the highest ranked countries in this dimension. The Netherlands as well as the U.S. have a high individualistic culture.
The dimension in which the largest difference between cultures was noticed is the MAS. The Netherlands scores significantly lower on MAS compared to the United States. This low level of masculinity of the Dutch culture compared to the high ranking of the U.S. indicates a large difference in characteristics that fall within this dimension. It can be concluded that the Dutch society is much less dominated by male than the U.S. society. This can have implications on the vacation destination choice. Females in the U.S. tend to take over masculine characteristics in order to fit in the masculine society, whereas the Dutch society values quality of life and is much more intuitive and modest. This can indicate the large difference in diving behavior of the two markets. The U.S. market may be more interested in diving since this is a more masculine (competitive) activity, while the Dutch may prefer to enjoy a more serene vacation instead of active participation in physical activities. A relaxing vacation can be seen as a way of increasing the quality of life for the Dutch.
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The relatively high ranking of the Netherlands and the relatively low ranking of the U.S. in the UAI dimension indicates the difference that needs to be taken into account when branding a country in these separate markets. The Dutch will do anything to avoid uncertainty, while the U.S. society is less influenced by this dimension. The difference in uncertainty avoidance between the two countries makes the segmentation of the two markets vital. The country branding strategy should focus on minimizing uncertainty among the Dutch market. For the U.S. market this need is not central. The U.S. market is much more open to new, unfamiliar situations. The Dutch rely on laws and rules, thus the image of Curaçao should advocate this. The Dutch need much more assurance and familiarity in order to choose the island as a vacation destination compared to the U.S.
The LTO dimension also pointed out a difference between the Dutch and the U.S. culture. While the Netherlands was recognized for having a long term orientated society, the U.S. scored low on this dimension. This difference may be taken into account when branding the island in the separate markets. Thrift could be one of the most important characteristic of a long term orientated culture. The Dutch are shown to be thriftier than Americans. The U.S. market is more prone to visit the island without focusing on costs, whereas the Dutch market may look at costs as the number one factor when choosing a vacation destination. Another characteristic of this dimension that could be of importance is the fact that the U.S. market, as a short term orientated society, respects tradition more than the Dutch society. Tradition is an important element in the U.S. society. Promoting Curaçao as a traditional family vacation destination could be a way of branding the country in the U.S. market.
5.2. CHARACTERISTIC DIFFERENCES
There is a clear difference in the age of the tourists visiting Curaçao from the Netherlands and those visiting from the United States. Tourists from the U.S. tend to be older. If the country branding strategy is going to target the largest segment in these markets, these differences need to be taken into account. Several differences in travel behavior between the two age groups have been studied. Country branding aimed at the U.S. market has to target the older age group. This
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age group can be regarded as seniors and has a different travel behavior than the younger age group from the Netherlands. Some differences in travel behavior can be seen in the fact that the older tourists travel for rest and relaxation and that they are more prone to go longer distances and stay for longer periods at the vacation destination than younger tourists. Although the younger group is more likely to participate in activities at the destination, this does not mean that this group does not prefer non-hectic vacations as well.
The difference in the gender of visitors from the two countries can also be noted. The majority of visitors from the Netherlands are female, while the majority of U.S. visitors are male. This indicates the need to differentiate the branding strategy by focusing on women in the Netherlands while focusing on men in the U.S.
The difference in purpose of visit between the two markets was notably significant. The most noteworthy difference was found in the diving behavior of the two markets. The U.S. tourist market seems to be much more interested in diving compared to the Dutch market. Another difference that was noticed is that the amount of honeymooners from the U.S. market is higher than the amount of honeymooners from the Netherlands. These dissimilarities are vital to take into account when branding the destination.
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CHAPTER 6: CONCLUSIONS, RECOMMENDATIONS AND LIMITATIONS 6.1 CONCLUSIONS AND RECOMMENDATIONS
Destination branding has been shown to be one of the most prevalent and growing forms of marketing in the tourism industry. Due to the homogeneity of Caribbean islands, it is necessary for Curaçao to differentiate itself from other similar islands. The Curaçao Tourism Board identified the importance to create a unique and consistent brand. However, the most important conclusion that can be drawn from this research is the fact that the destination branding of a specific place can and should be differentiated per tourist market segment. This thesis indicates the significance of differentiation between market segments when it comes to country branding. Although Curaçao´s current branding strategy maintains that differentiation between market segments not only is superfluous but even that it contradicts consistency of the brand, this research proves that within the framework of a consistent branding strategy, there should be room to focus on different characteristics of a specific target market. Cultural differences were found to have a significant impact on the reaction of tourists on a destination brand. Significant differences were found between the Dutch and the U.S. market when examining the cultural characteristics using Hofstede´s cultural dimensions.
Both the amount of female visitors and the low ranking in the masculinity dimension of the cultural model indicate that Curaçao should focus on the feminine attributes when branding the country in the Netherlands. When focusing on the Dutch market, the country branding strategy should emphasize feminine attributes of the island. Serene and relaxing destinations should attract this highly feminine country. Conversely, for the U.S. market a more active and competitive island should be branded. The U.S. market, as a masculine society, is more prone to choose a destination where actively participating in physical activities is possible.
The country branding should focus on providing the Dutch with as much information as possible and in as much detail as possible. Due to the fact that the Dutch market tries to avoid uncertainty, their information search behavior is more intense than that of the U.S. market.
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Therefore, this dimension illustrates the need to strategically make the Dutch market more familiar with the island. The country branding strategy should also focus on the fact that the island is safe to visit, that there are rules and regulations in place. There is a much higher need to advocate safety and familiarity in the Dutch market than in the U.S. market. Promoting the fact that the official language of Curaçao is Dutch may also reduce uncertainty in the Dutch market.
The high score of the LTO dimension indicates the thriftiness of the Dutch market. Promoting the fact that Curaçao has a favorable currency exchange rate (Antillean Guilders) for the Dutch market (Euros) could have a positive impact on the image of the affordability of the island. The short term oriented society of the U.S. market is not as much affected by the monetary factor as the Dutch market. On the other hand, the U.S. market is attracted to tradition. This means that Curaçao could be branded as an island where tourists can have traditional vacations with family.
Although the elder travelers from the U.S. constitute the largest percentage of visitors to Curaçao, country branding should not be aimed exclusively at this group. The younger more active travelers could also be persuaded to choose Curaçao as their next vacation destination. It has been shown that both older and younger travelers primarily choose relaxation and rest vacations. The interest of the U.S. market to participate in more active physical activities while on vacation seems to be more important for the focus of the country branding.
The focus of this research was on the differences in the two market countries. It must be noted though, that there are similarities that can also be used in designing the country branding strategy. Such similarities can be seen in for example the information search behavior of tourists, where internet is becoming more and more important when branding a country.
Country Branding: A Comparison between the Dutch and the U.S. target market
Factors to take into account when branding for the two markets:
MAS
Dutch market
U.S. market
Feminine attributes:
Masculine attributes:
relaxation, serene
active physical
images
activities
Very important. Reduce uncertainty: UAI
safety, provide
Less important.
information, language is spoken
Thriftiness: favorable LTO
currency, affordable vacation
Age
Younger market: relaxation, activities
vacations
Older market: relaxation, longer vacations
Mostly feminine:
Mostly male:
same as in MAS
same as in MAS
Family visit,
Diving, honeymoon,
relaxation
relaxation
Gender
Purpose of visit
Tradition: family
38
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6.2. LIMITATIONS
Significant difference was found in the amount of literature on the U.S. market compared to the Dutch market. There is considerably more literature available related to the U.S. market. The scope of the research was limited in order to keep the balance between the two markets. Additionally, this research was focused on the cross cultural differences between the Dutch and the U.S. market. Although relevant differences were determined, the differences within the national cultures were not taken into account. Focusing on differences within a specific national culture can be the basis for future research.
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APPENDIX
Chapter 1 Theoretical framework RQ1: Country branding
PS: How can cultural differences between the Netherlands and the U.S.A. be taken into account when defining the country branding for each of these markets?
-General -Curaçao
RQ2: Culture Netherlands - USA
-General discussion -Comparison -Framework choice -Link to Dutch and U.S. market
RQ3: Characteristics Netherlands - USA
-Relevant characteristics -Link to Dutch and U.S. market
RQ5: Most important differences (U.S. /Netherlands)
-Cultural differences -Characteristic differences
Chapter 2 Curaçao Master Plan for Tourism Development To support the Curaçao Tourist Board´s strategic position for the sustainable growth of Curaçao's tourism product, the Master Plan for Tourism Development was created. “The Master Plan takes into account a broad range of issues directly affecting, not only the physical capabilities of the island, together with logistical, financial and legislative implications of development on a particular site, but also the marketing and economic rational behind specific site or product development recommendations” (www.ctb.an). The first version of the Tourism Development Master Plan was initially developed in 1993 and in 1995 it was adopted as government policy. This Master Plan had a planning horizon of 20 years; periodic updates during
the lifespan of the plan had to be provided. The latest update of the plan covers the period of 2005 to 2009.
Chapter 3 Trompenaars and Hampden-Turner´s cultural dimensions. In 1997 Trompenaars and Hampden-Turner published a model of culture with seven dimensions. These cultural dimensions are largely focused on the need to understand individuals instead of country stereotypes. The seven dimensions are widely used in international business context settings in order to find out how individuals react on situations and interact with each other on the work floor. 1. Universalism vs. Particularism Universalism focuses on finding broad and general rules. When there is no rule that fits perfectly, it finds the best rule possible. In particularistic countries the focus is more on relationships instead of strict general contracts. When no rules fit, the case will be judged individually, instead of trying to fit an existing rule. 2. Individualism vs. Communitarianism Individualistic countries focus on the rights of the individual. Individuals see group-focus as a mean to achieve individual goals. Whereas, in communitarianistic cultures group prosperity is the most important focus. Communitarianism looks at individualism as selfish behaviour. 3. Neutral vs. affective Neutral cultures admire self possessed people, who are in control of their feelings. Body language is very hard to read in these types of cultures. In affective cultures, feelings are openly voiced, verbally and non-verbally.
4. Specific vs. diffuse This dimension focuses on how people keep their private lives separate from their professional lives. People from specific-oriented cultures tend to keep their private and business lives separate. In diffuse oriented cultures, people tend to integrate their attitudes and behavior in both aspects of their lives (work and personal). 5. Inner-directed vs. Outer-directed Internal oriented cultures focus on their own ideas and personal judgments. People are more likely to feel uncomfortable in changing situations in this type of culture. In contrast, external oriented cultures are more flexible. People seek information from outside sources in order to make decisions in outer directed countries. 6. Time as sequence vs. Time as synchronization This dimension is based on time orientation. Cultures that see time as sequence see events as separate items in time. These events occur in order, one after another, sequentially. People from synchronic cultures can do work in parallel, by following more flexible schedules. 7. Achieved vs. Ascribed status In achieved status oriented countries, respect is gained by previous achievements. Individuals can gain and lose their status everyday, depending on their performance. In contrast, in ascribed status oriented cultures, titles are used to gain respect from others. Seniority and hierarchy are the main means by which someone can gain respect from others.
The GLOBE program This extensive research project analyzed and explored previous studies on cultural differences. Vital previously done researches were studied and integrated into one model. The GLOBE program consists of nine dimensions. 1. Performance Orientation This dimension is said to be the most important of all the dimensions studied by the GLOBE program. It focuses on the way in which a community deals with high standards, excellence and performance improvement. 2. Uncertainty Avoidance This dimension measures the extend to which a society relies on social rules, norms and procedures
in order to avoid uncertainty. Uncertainty avoiding societies tend to reduce
ambiguity as much as possible. 3. In-Group Collectivism In-group collectivism measures the way in which societies express loyalty, pride and cohesiveness. 4. Power Distance Power differences and status privileges are measured by this dimension. The extend to which societies tend to accept authority and power differences is the focus of this dimension. 5. Gender Egalitarianism Gender inequality in a society is measured by this dimension. It measures the extend to which gender discrimination is minimized in a society. 6. Humane Orientation This dimension measures the importance of humane traits that are encouraged by a society. These traits include: fairness, friendliness, generousness, and kindness to others.
7. Institutional Collectivism This dimension measures the degree to which a society encourages collective action and distribution. 8. Future Orientation This dimension measures the degree to which a society plans and delays gratification. 9. Assertiveness Aggression, tenderness and assertiveness are measured by this dimension; the degree to which individuals position themselves in social situations.
Chapter 4 Table 1: Hofstede´s five dimensions model applied to the Netherlands and USA
Country
PDI
IDV
MAS
UAI
LTO
USA
40
91
62
46
29
the Netherlands
38
80
14
53
44
Table 2: Purpose of visit per country (Curaçao, year 2007)
Country USA The Netherlands
Vacation Business Vac. & Bus. Shopping Diving Honeymoon Family Incentive & convention Other Total 42749 1973 188 22 288 373 314 107 198 46212 2% 22% 29% 24% 8% 15% 95672 1837 381 18 58 475 1859 64 60 100424 2534 1% 2% 19% 73% 3% 2%
Source: CTB/Immigration department. Edited by: L. van Haaren 2010
Table 3: Arrivals by Age groups (Curaçao, 2007)
Country USA
0-14
the Netherlands
15-24 25-44 45-64 65+ Total 3481 3410 17014 19009 3298 46212 7.53% 7.38% 36.82% 41.13% 7.14% 9292 10760 37906 34358 8108 100424 9.25% 10.71% 37.75% 34.21% 8.07%
Source: CTB/Immigration department. Edited by: L. van Haaren 2010
Table 4: Arrivals by Gender (Curaçao, 2007)
Country USA
Male Female Total 25515 20697 46212 55.2% 44.8% the Netherlands 49861 50563 100424 49.7% 50.3%
Source: CTB/Immigration department. Edited by: L. van Haaren 2010
Acknowledgements •
I would like to show my gratitude to my supervisor, Drs. A.M. van Gool , whose guidance pushed me to develop an understanding of the subject.
•
This thesis would not have been possible without the information provided by the Mongui Maduro Library in Curaçao.
•
A special thanks to my father, Drs. J.D. van Haaren, for his corrections and great ideas.