Going local:
A Cross-Cultural Comparison of Communication Strategies in Customer Magazines applied by Global Organizations.
Master’s Thesis
Graduate School of Communication Corporate Communication
Laura Theresa Bürkle Student ID: 12309508
Thesis Supervisor: Dr. James Slevin Date: 30-01-2020
Abstract
Despite globalization and the growing interaction transcending national borders, the way customers think and perceive is still guided by the framework of their own cultures. However, companies operating in different regions are often unsuccessful in meeting their goals, among others, due to the mistake of assuming that customers have similar needs. This research is built on the assumption that organizations, in order to gain influence, should create effective processes of communication and persuasion along lines that favor the projects and interests of even more diverse audiences. Customer magazines are increasingly used as communication tools to create relationships with stakeholders, produced in multiple versions in order to address to different customer segments. First, the study tests whether there are differences in the communication strategies in online customer magazines of global organizations in Eastern and Western cultures. To examine differences, the research makes use of Hofstede’s cultural framework. Second, it aims to explore if this relationship is mediated by the organizational culture of the company. A quantitative content analysis was conducted to test the hypotheses. The sample (N = 150) includes articles addressed to Indian and German customers. The results show that articles addressed to German customers communicate appeals associated with individualism, uncertainty avoidance and long-term orientation more often than articles addressed to Indian customers, whereas appeals associated with power distance are mentioned more often in Indian articles. However, no significant evidence was found when considering organizational culture as a mediator variable. These findings give guidance for companies that want to expand internationally or already operate in different countries in order to develop effective communication content that is perceived by the target group in the right way.
Keywords: cross-cultural communication, Hofstede’s cultural framework, customer magazines, communication strategies, organizational culture
The world had changed, and we had not. The world was demanding greater flexibility, responsiveness and local sensitivity, while we were further consolidating decision making and standardizing our practices. The next big evolutionary step of ‘going global’ now has to be ‘going local’. (Coca-Cola Chairman and CEO Douglas N. Daft, 2003)
Processes of organizational globalization lead to expanding networks and the crossing of traditional national boundaries, drawing them closer together economically, socially,
culturally and informationally (Das, 2010; Norris & Inglehart, 2009). Thus, companies are able to increasingly extend their activities across nations and reach customers of diverse cultures through modern tools (Tian & Borges, 2011). In the contemporary phase of globalization, technological innovations combined with the rapid worldwide reach of communications, have noticeably increased the possibilities for global production and exchange (Das, 2010).
Despite the growing interaction between social units, most communication processes have not become global. Rather, communications are in the process of becoming exchanged across nations and the way people think and perceive is still guided by the framework of their own cultures (De Mooij, 2019). Even though selling standardized products was a good strategy for a while, the world evolved, and customers stopped feeling a connection with the universal products and communication strategies (Dumitrescu & Vinerean, 2010). Nowadays, people choose to read or listen to sources of information that are congruent with their values and transform imported cultural products by adapting them to local needs (De Mooij, 2019). The change in media use habits has challenged traditional media, among others the traditional magazine publishing business: The online world is changing the way people access
information and the gradual erosion in print magazine readerships has essential impacts on the viability of print magazines (Viljakainen & Toivonen, 2014). The focus shifted from targeting
general magazine titles to mass markets into serving niche markets around special interests and cultures (Schijns, 2008).
However, public relations practitioners working internationally sometimes neglect the significance of cultural differences and the important role of cultural factors (Schijns, 2008). Particularly firms expanding to another country are likely to reflect the norms and values associated with the society of the “mother” country (O’Conner, 1995). Due to the
mismanagement of their interactions and the alienation of customers, firms face the probability of negatively affecting their reputation and not reaching their target group
(Demangeot et al., 2013). More than half of companies competing in emerging markets have been unsuccessful in meeting their goals, among others, due to the mistake of assuming that customers have similar needs to those in Western regions and have failed to adapt their products to each market’s specific requirements (Deloitte Development LLC, 2007).
Understanding these issues is complicated by the fact that different reactions to the same issue may be occurring among different cultures (Norris & Inglehart, 2009). Therefore, the study aims to examine the following research questions:
RQ1: Are there differences in the communication strategies in online customer magazines of global organizations in Eastern and Western cultures?
RQ2: Does organizational culture mediate the effect of Eastern and Western cultures on the communication strategies in online customer magazines?
It is predicted that national culture is a crucial element affecting economic development, such as entering foreign markets (Tian & Borges, 2011). In order to avoid rejection as an unintended consequence, companies must be more aware of the key dimensions of culture
that can help to communicate with customers across different markets in a more successful way (Tian & Borges, 2011). Public relations practitioners must become cultural curators with the skills to create meaning for audiences and encourage an environment that sees cultural values as a crucial part of organizational communication (Tombleson & Wolf, 2016). Through proactive communication strategies toward cultural awareness and inclusion, companies can gain respect, trust and consumer loyalty (Demangeot et al., 2013).
To help address this problem, the study provides an understanding of which communication aspects, culture-dependent, are meaningful and offers a guideline for companies that operate internationally in order to develop effective content that appeals directly to the target audience. Furthermore, the investigation identifies to what extent these strategies are implemented by customer magazines of global organizations. Organizational culture is assumed as a possible influencing factor, that transmits the effect of the national culture on the communication strategies in customer magazines. As a consequence, firms learn how to avoid damages such as organizational dysfunctions and misadaptation.
Theoretical Framework Glocalization: Global reach and local interaction
Previous studies demonstrate that despite globalization and the merging of borders between national markets, reinforcement of cultural differences between nations can be observed (Lillis & Tian, 2010), which might lead to communication problems in globalized business. Since culture is increasingly recognized as the most powerful determinant of consumer attitudes, lifestyles, and behaviors (Cleveland & Chang, 2009), organizations should attempt to maintain a clear distinction of what is essential from one culture to another. What might be valuable in one culture might not be the same for the other (De Mooij & Hofstede, 2010). “Culture is not a characteristic of individuals; it encompasses a number of
people who were conditioned by the same education and life experience” (Hofstede, 1980, p. 224). What receives a person’s attention is thus influenced by the person’s cultural map, which is formed by the social and natural environments that teach what to look at and how to receive things (De Mooij, 2019). What people see is a function of what they have learned to be aware of in the process of growing up. They are “prisoners of [their] own culture” (De Mooij, 2019, p. 51), who expect things from their own cultural frame of mind. Consequently, people become confused when things are different than expected and may interpret their meaning in a wrong way. According to the study of Lim, Sung, and Lee (2018), a fit between consumers’ psychological states and message framing is an important aspect for the
persuasion outcome. People respond differently to messages depending on their culturally influenced attribution style: people from individualistic cultures tend to use low-context communication, such as explicit words, facts and data (Hall, 1976). Conversely, collectivistic cultures rely on high-context communication and therefore tend to use implicit and indirect words (Hall, 1976; Lillis & Tian, 2010; Lim et al., 2018).
Curtin and Gaither (2007) define culture as “the process by which meaning is produced, circulated, consumed, commodified, and endlessly reproduced and renegotiated in society” (p. 35). Especially since the increase in cross-border movement of people, together with recent technology developments, conventional frames dynamically transform and affect the cultural economic landscape (Huat & Jung, 2014; Lichy & Stokes, 2018). The expansion of digital and social technologies fostered the development of new universal cultures in which Internet users participate in co-creating and sharing content. Individualism is particularly relevant as the Internet encourages individual tendencies by giving users more choice of access to information and, thus, enables people to achieve personal goals (Lichy & Stokes, 2018). Castells (2004) defines these new universal cultures as “network societies” which, due to their global characteristics, integrate multiple cultures, linked to the geography and history of each
region of the world (Castells, 2004). This enables social units to interact anywhere, anytime, transcending the historical limits of networks as forms of social organization. Therefore, cross-cultural frameworks such as Hofstede’s (1980), that categorize organizational behavior within national contexts, are questioned. According to the findings of Lichy and Stokes (2018), national differences in the Internet use are not apparent. The results underline converging Internet user behavior as a logical outcome of increased globalization and, thus, longstanding models of socio-economic cultures do not have a strong value in the context of online environments.
However, other literature argues against a homogeneous global culture and instead advocates historical cultural diversity which is highlighted in the electronic space where people enforce their own culture and experience in their localities (Borja, 2003).
“Glocalization” (Wellman, 2002) expands global reach and local interactions. Although the Internet has unique characteristics, people continue to value in-person experiences and hang onto their ethnicity, family, and nation (Castells, 2010). There is a shift from the
one-dimensional globalization narrative towards new ideals of inclusiveness, such as regional specific world perceptions (Volkmer, 2014). Globalization highlights the limitations of public relations, favoring the perspective of Western cultural elite (Tombleson & Wolf, 2016) and at the same time expresses the diverse perspectives of the approaches of Africa, South America and Asia (Volkmer, 2014). Thus, in order to gain influence as an organization, public
relations practitioners might create effective processes of communication and persuasion along lines that favor the projects and interests of even more diverse audiences. “They are the fields of power in the network society” (Castells, 2004).
Cross-Cultural Communication and Cultural Dimensions
Abugre (2018) defines cross-cultural communication as “the process of interaction and understanding of the communication codes, value orientations of people and how people relate with each other through language and communication in a particular environment” (p. 171). It enables people to effectively communicate and appreciate different cultures, what is critically important in international management practice (Abugre, 2018). In order to
guarantee the survival of an organization and protect it from extinction, it has to show adaptable behavior towards its environment (Cavusgil & Cavusgil, 2011). In return, the firm may reap stability, growth, higher returns on its capital, and boost to its value.
As argued before, despite progressive globalization, many people’s identity is still locally rooted and their values are shaped by their firsthand experiences (Norris & Inglehart, 2009). Thus, cultural differences still exist. For this reason, Hofstede’s model (1980) remains a valid and relevant framework, as it is one of the approaches most widely used to classify cultures. Hofstede conceptualized cultural dimensions in terms of individualism, power distance, uncertainty avoidance, masculinity, and later added the dimensions long-term orientation and indulgence to the initial creation (Hofstede & Bond, 1988; Hofstede & Minkov, 2010). Due to the selection of sampling, which will be discussed in the methods section, only the following four dimensions are of interest: individualism, power distance, uncertainty avoidance and long-term orientation.
Individualism is the degree to which individual actions and decision-making are encouraged by society (Hofstede, 2001). People in individualistic cultures tend to identify themselves as individual entities instead of group members. They attach more importance to individual performance and self-expression than group harmony when there is a conflict (Hofstede, 2001). Hence, communication appeals should focus on individual
self-advancement rather than on the society to which the individual belongs (Fletcher & Melewar, 2001). Contrarily, collective cultures place pressure on individuals to give higher priority to group-centered goals than personal goals. People are embedded into strong in-groups, like extended families and society in general (Fletcher & Melewar, 2001).
According to Cho and Cheon (2013), Eastern websites might be more likely to emphasize collectivistic activities that foster a group environment and stimulate interaction among customers than Western websites.
H1: Online customer magazines communicate appeals associated with individualism significantly more often in Western cultures than in Eastern cultures.
Power distance describes the degree to which power differences are accepted by society (Hofstede, 2001). The dimension indicates how different cultures have addressed basic human inequalities in social status, wealth, and sources of power. In high power-distance cultures, powerful people are considered to be right in contrast to low power-distance societies (Emery & Tian, 2010). Communication messages therefore would need to avoid egalitarian appeals (Fletcher & Melewar, 2001) and instead communicate in socially desirable ways designed to please those in higher positions of power (Hofstede, 2001). Contrarily, in low power-distance societies people feel freer to express their own opinions while stressing expert and legitimate power as well as equal rights (Hofstede, 2001).
Previous studies prove that Western websites tend to lessen the distance between consumers and markets by creating more horizontal relationships through two-way
communication between the two groups (Cho & Cheon, 2013). In contrast, websites targeting high power-distance societies emphasize social status by the use of prestige, trend setting and pride in the purchase of a product that claims to be able to elevate the position of the user in
the eyes of others (De Mooij, 1998; Okazaki, 2004). Furthermore, while websites targeting English viewers often demonstrate a collaborative relationship between the organizations and the local community, websites targeting Chinese viewers stress on their close relationship with the Chinese government (Lee, So, & Wong, 2006).
H2: Online customer magazines communicate appeals associated with high power distance significantly more often in Eastern cultures than in Western cultures.
Uncertainty avoidance is the degree to which society is unwilling to accept and cope with uncertainty (Hofstede, 2001). Therefore, people use law, religion, and technology to eliminate uncertainty. The dimension is related to anxiety, need for security, dependence on experts and application of information (Emery & Tian, 2010).
Uncertainty avoidance-orientated people are more persuaded by communication strategies using loss-framed messages, such as warning of negative consequences, and messages that are more likely to resist innovative ideas (Sherman, Uskul, & Updegraff, 2011). Research proves that uncertainty avoidance is positively related to the extent of information search and, thus, people in high uncertainty avoidant cultures act as demanding information-seekers (Quintal, Lee, & Soutar, 2010). Contrary, in low uncertainty avoidant cultures the communication structures are more open, tolerant and provide acceptance of innovative ideas and risk taking (De Mooij, 1998). Hofstede (2001) scores Western countries higher in uncertainty avoidance compared to Eastern societies.
H3: Online customer magazines communicate appeals associated with high uncertainty avoidance significantly more often in Western cultures than in Eastern cultures.
Long-term orientation describes the extent to which a country is oriented towards the future subscribing to values of sustained commitments and saving resources (Lillis & Tian, 2010). In cultures with long-term orientation, the products' long-run benefits are emphasized, and the historical qualities of the organization are honored (De Mooij, 1998). Furthermore, firms in long-term-oriented cultures are encouraged to utilize new innovative technologies (Hofstede, 2001). Contrary, societies with a short-term orientation exhibit great respect for tradition, have a small tendency to save for the future, and a focus on achieving quick results (Lee & Herold, 2016). According to Husted (2005), cultures with a lower level of power distance and a higher level of individualism are related to a higher environmental
sustainability. The respect for authority in high power distance countries leads to a weaker individual responsiveness to environmental problems (Husted, 2005). In addition, Lee et al. (2006) identified that common aspects shared by websites written in English (USA and UK) are environmental protection, economic development and community work. In contrast, Chinese customers are less aware of protecting the environment, therefore, messages of environmental protection are absent on websites targeting Chinese viewers.
H4: Online customer magazines communicate appeals associated with long-term orientation significantly more often in Western cultures than in Eastern cultures.
It is important to note, however, that not all findings have found that matching messages to cultural values lead to greater customer response. For instance, the research of Cui, Yang, Wang, and Liu (2012) examined culturally incongruent messages in international advertising. According to the results, culturally incongruent messages do not encounter outright rejection. Whether a message is considered more or less acceptable depends on the type of cultural value and the positioning strategy. Thus, culturally incongruent messages are received less
negatively if they are related to less central values of the culture and as long as they are framed in a congruent way, consumers are more tolerant even though the message may be incongruent with their own cultural beliefs (Cui et al., 2012). A further aspect is that in certain countries societal norms require a focus on homogeneity rather than on diversity (Demangeot et al., 2013). Highlighting cultural differences through communication strategies may threaten the national unity, particularly in countries where integration of immigrant minorities is a major political issue (Demangeot et al., 2013).
Although some scholars argue that culturally incongruent communication does not directly encounter outright rejection, the majority of previous research stresses that being sensitive to cultural differences is a major factor for success in the international marketplace (Tian & Borges, 2011; Volkmer, 2014). Thus, the aspects mentioned indicate a need to investigate if global organizations highlight cultural differences in their communication strategies. This paper suggests organizational culture of global organizations as a mediator variable that transmits the effect of the national culture on the communication strategies in customer magazines.
Organizational Culture
National culture plays an important role in shaping an organization’s culture (O’Conner, 1995). The impact of national culture can be reflected in numerous ways, ranging from restrictions imposed on the organizations by the environment to the behaviors of
organizational members (Lau & Ngo, 1996). According to Dedoussis (2004), organizations operating in countries sharing similarities in national cultures, are likely to be characterized by similar beliefs, values, and assumptions. From an empirical study of ten European organizations with similar cultural values, Hofstede, Neuijen, Ohayv, and Sanders (1990) demonstrated that there are some relationships between national cultural values and
organizations practices. Particularly firms expanding to another country are likely to reflect the values associated with the society of the “mother” country (O’Conner, 1995). Therefore, this study considers organizational culture as an underlying factor of cross-cultural
communication and management practices (Hofstede et al., 1990; Rosenzweig & Nohria, 1994).
H5: Organizational culture mediates the effect of Eastern and Western cultures on the communication strategies of online customer magazines in terms of…
a) Individualism b) Power Distance
c) Uncertainty Avoidance d) Long-Term Orientation
To measure organizational culture, the present research makes use of the competing values model (Quinn, 1988). The model consists of two dimensions with contrasting poles. One of the dimensions represents the internal or external focus of the organization, the other dimension illustrates the flexibility or control within the firm (see Appendix B, Figure 2). Combining these two dimensions, four organizational culture orientations arise (Quinn, 1988). The four orientations are the support, the innovation, the rules and the goal orientation of the organization (Van Muijen & Koopman, 1994; Van Muijen, 1998). Central to the
support orientation is a focus on people, teamwork and cooperation. The innovation
orientation is characterized by a focus on innovation, growth and entrepreneurship. The rules orientation emphasizes a focus on procedures, structure and quality. The goal orientation is characterized by a focus on results, productivity, competition and profit (Quinn, 1988; Van Muijen et al., 1999). Quinn (1988) argues that organizations that have balanced cultures with
a stronger presence of all four organizational culture types have an advantage in a rapidly changing environment. Figure 1 illustrates the variables and formulated hypotheses and their mutual influence.
Figure 1. Conceptual Map.
Methodology
A quantitative content analysis of the online customer magazine Coca-Cola Journey was conducted to examine differences in the communication strategies within Eastern and
Western cultures.
Online customer magazines are increasingly used as communication tools to create relationships with customers (Van Reijmersdal, Neijens, & Smit, 2012). However, previous examinations of cross-cultural communication strategies have mainly focused on instruments such as websites or advertising messages and, thus, hardly any research exists on customer magazines (Van Reijmersdal et al., 2012). “Customer magazines are published by companies to communicate with their (potential) customers and clients; they are presented in a
journalistic style, published periodically, and usually distributed free of charge” (Denner, Koch, & Himmelreich, 2018). The change in media use habits and customer needs has challenged traditional media, among others the traditional magazine publishing business. Thus, one can observe an ever-increasing shift from offline to online customer magazines, produced in multiple versions addressed to different customer segments (Schijns, 2008).
Knowing the consumers is crucial for firms in order to decide which kind of activities and information could attract them. Once consumers perceive the online magazine as enjoyment, they are likely to recommend the platform to others and word-of-mouth could be a benefit for the organization (Srisuwan & Barnes, 2008).
Sampling
Coca-Cola is one of the world’s most valuable brands (Forbes, 2019) and has become a symbol of globalization (De Mooij, 2019). When Coca-Cola first pursued global strategies that employ a homogenization and standardization of practices, the organization realized that it would have to employ greater flexibility, responsiveness and local sensitivity in order not to lose the connection to its customers (Daft, 2003). Customers prefer brands with strong local connections that are congruent with their values (De Mooij, 2019). According to Sangwan (2015), Coca-Cola is now one of the topmost companies that is taking culture seriously. The company encourages its employees to participate in intercultural training in order to create successful business deals with people from different countries or when they prepare to relocate abroad (Sangwan, 2015). For this reason, the study investigates whether Coca-Cola makes use of these intercultural skills in its communication strategies.
Its online customer magazine Coca-Cola Journey, which was launched in 2012, serves as an instrument that supports the strategic transformation from a global strategy approach to a glocal strategy approach (Tian, 2006). The approach implies awareness of the significance of adaptation to local markets in order to meet variations in consumer demand (Maynard, 2003). Therefore, the magazine Coca-Cola Journey appears as a suitable examination material to answer the research question.
Over the last years, Coca-Cola Journey expanded its target group to more than 30 countries (Coca-Cola Company, 2016). The country and regional sites are published in the
local language and produced by local Coca-Cola communications teams for local readers. The online customer magazine makes use of storytelling as a communication strategy in order “to bring the compelling stories behind [the] company […] to the forefront through a digital publishing experience designed to inspire, educate and provoke action” (Coca-Cola Company, 2016). Thus, Coca-Cola invests in authentic stories and exceptional writing, in order to build a global digital newsroom and real-time PR tool that transforms how the organization engages with all readers – fans, employees, stakeholders, critics and more (Coca-Cola Company, 2016).
The two countries selected for investigation are India and Germany. Over the last few years the Coca-Cola Company has been accused of dehydrating communities in its pursuit of water resources (The Guardian, 2014). In response to the numerous protests, such as in India, the company positions itself as a local company: “The Coca-Cola business in India is a local business. Our beverages in India are produced locally, we employ thousands of Indian citizens, our product range and marketing reflect Indian tastes and lifestyles, and we are deeply involved in the life of the local communities in which we operate” (The Coca-Cola Company, as cited in Curtin & Gaither, 2007). Thus, the study examines if Coca-Cola is actually adhering to Eastern cultural values of societies such as India in its communication.
In order to investigate an adaptation to cultural values in Western countries, the present research focuses on communication strategies addressed to customers in Germany. In 2018, the Coca-Cola Company introduced mini cans that generate more packaging waste and, thus, intervene in the environmentally friendly reusable system in Germany (Deutsche
Umwelthilfe, 2018). Coca-Cola’s strategic decision does not correspond to the values of German culture, which, according to Hofstede (2001), are very long-term oriented. Thus, the
research examines if Coca-Cola’s customer magazine is adhering to Western cultural values in its strategic communication addressing German readers.
For the feasibility of coding, a maximum amount of 75 articles written in English and German was selected, addressed to one of the two countries. The selection was limited to the articles published in 2018 and 2019 in order to gain a current insight into Coca-Cola’s cross-cultural communication strategy. Thus, the selection procedure resulted in a final sample of N = 150 articles of the online customer magazine Coca-Cola Journey.
India and Germany point out large differences in the cultural dimensions, except masculinity and indulgence (Table 1). According to the cultural dimensions score, both countries tend to be masculine and are cultures of restraint. Therefore, the two dimensions were not included in the analysis.
Table 1
Cultural Dimensions Scores of India and Germany, from 0-100, with 50 as mid-level
To examine Coca-Cola’s organizational culture, this paper made use of four different variables that correspond to the four organizational culture orientations, in order to determine aspects that describe the organizational culture in each of the articles analyzed. The variables are described and defined in more detail below.
Cultural Dimensions Score
Country Individualism Power
Distance Uncertainty Avoidance Long-Term Orientation Masculinity Indulgence India 48 77 40 51 56 26 Germany 67 35 65 83 66 40
Codebook
A codebook (see Appendix A) was developed to analyze the content of the articles in the online customer magazine Coca-Cola Journey addressed to India and Germany. The codebook consists of 32 variables, most of them were constructed as ‘yes or no’ variables. The research instrument can be divided into four parts. The first part covers the formal
categories which determine, among others, one of the two countries (1 = India, 2 = Germany). The second part identifies appeals associated with the different cultural dimensions. The third part of the codebook analyzes the four organizational culture orientations to determine the organizational culture of the Coca-Cola Company described in the articles. The last four variables of the codebook describe the weighting of the four cultural dimensions in India and Germany established by Hofstede (2001).
Measures
The construction of the codebook is for the most part based on the variables of the studies of Marcus and Gould (2000), Feng (2004), and Ki and Shin (2015). However, these studies did not investigate the dimension long-term orientation, which is why further studies, mentioned in the theoretical background, had to be used (De Mooij, 1998; Lee et al., 2006). The dimensions are valued equally, even if some are derived from lengthier lists of variables than others.
Individualism was measured with the index conducted out of the variables individual success, personal time, freedom, challenge, strong private opinions and prominence given to youth (Feng, 2004; Marcus & Gould, 2000), (M = 1.29, SD = 1.32).
Power distance was measured with the index conducted out of the variables hierarchy information, CEO, quality assurance and award, vision statement, proper titles (Ki & Shin, 2015), emphasis on inequalities among people and emphasis on social and moral order (Feng, 2004; Marcus & Gould, 2000), (M = 2.59, SD = 1.62).
Uncertainty avoidance was measured with the index conducted out of the variables customer service, visual explanation, links to more specific information (Ki & Shin, 2015), dependence on experts (Emery & Tian, 2010) and loss-framed messages (Sherman et al., 2011), (M = 1.46, SD = 1.17).
Long-term orientation was measured with the index conducted out of the variables historical qualities of the organization (De Mooij, 1998), sustained commitments/saving resources (Lee et al., 2006), long-term results and new innovative technologies (Hofstede, 2001), (M = 1.59, SD = 1.22).
Organizational culture as a mediator was measured with the four organizational culture orientations, derived from the study of Van Muijen et al. (1999): support, innovation, rules, goals (M = 1.91, SD = 0.74). Support was measured with one variable concerning the organization’s support in solving its stakeholders’ problems. This variable was chosen because it is assumed to be communicated in customer magazines in order to make the company more competitive (Van Riel & Balmer, 1997). By communicating stakeholders’ support, the corporate reputation is perceived as attractive and, thus, gives an organization a competitive advantage (Van Riel & Balmer, 1997). Innovation was measured with one variable concerning the organization’s investment in new products and processes. This variable is assumed to be communicated in customer magazines because innovative firms
help balance the competing interests of multiple stakeholders for the benefits of the entire organization and, therefore, show high levels of customer awareness (Bart, 1998). Rules was measured with one variable concerning the organization’s performance according to defined procedures. The establishment of well-defined procedures and goals is a requirement for a firm’s success (Whipple & Frankel, 2000). By communicating that the company strives for success, it increases its attractiveness. Goal was measured with one variable concerning the organization’s competitiveness in relation to other organizations. This variable is assumed to be communicated in customer magazines in order to demonstrate flexibility and a high adaptability to changing environment and customers’ interest (Bush, 2012).
Coding Procedures and Intercoder Reliability
Intercoder reliability is a critical component of content analysis, given that goal to identify and record relatively objective characteristics of messages (Neuendorf, 2002). To assess the reliability of coding, two coders coded 24 items from 10% of the sample (n = 15). Despite one item having a sufficient score (0.64), the average Krippendorff’s alpha score of 0.88 indicates a good level of intercoder reliability for the study (see Appendix B, Table 2).
Results
On the basis of the data collected, differences in the communication strategies of the online customer magazine Coca-Cola Journey in India and Germany were investigated in order to answer the first research question.
Individualism
The first dimension of Hofstede’s (1980) framework to classify cultures concerns individualism. An independent t-test was conducted to examine differences in the
communication strategies between India and Germany in terms of individualism. Specifically, articles addressed to customers in Germany (M = 0.33, SD = 0.48) mention individual success significantly more often than articles addressed to customers in India (M = 0.16, SD = 0.37), t(139.54) = -2.50, p = .014. Furthermore, results showed that the customer magazine mentions personal time, freedom and challenge significantly more often in Germany (M = 0.69, SD = 0.46) than in India (M = 0.21, SD = 0.41), t(145.98) = -6.69, p < .001. In addition, significant results were found in mentioning strong private opinions: The customer magazine emphasizes strong private opinions more often in articles addressed to German customers (M = 0.59, SD = 0.50) than in articles addressed to Indian customers (M = 0.17, SD = 0.38), t(138.82) = -5.73, p < .001. However, there is no significant difference in prominence given to youth in articles addressed to Germany and India, t(141.20) = -1.82, p = .07.
Summarizing, out of the above-mentioned items, an index was implemented. Results revealed that the customer magazine Coca-Cola Journey communicates appeals associated with individualism significantly more often in Germany (M = 1.88, SD = 1.31) than in India (M = 0.69, SD = 1.03), t(140) = -6.16, p < .001. Therefore, H1 can be confirmed.
Power Distance
The second dimension of Hofstede’s (1980) framework concerns power distance. The paper assumes that customer magazines emphasize power distance more often in their communication strategies addressed to Eastern cultures (India) than to Western cultures (Germany). Specifically, the results of an independent t-test indicate that articles addressed to customers in India (M = 0.29, SD = 0.46) mention hierarchy information significantly more often than articles addressed to customers in Germany (M = 0.08, SD = 0.27), t(120.66) = 3.46, p < .001. In addition, information about the CEO are emphasized significantly more often in India (M = 0.53, SD = 0.50) than in Germany (M = 0.25, SD = 0.44), t(145.30) =
3.64, p < .001. Also, the variable quality assurance and award is mentioned significantly more often in India (M = 0.75, SD = 0.44) than in Germany (M = 0.48, SD = 0.50), t(145.24) = 3.46, p < .001. Similarly, proper titles are emphasized significantly more often in Indian articles (M = 0.68, SD = 0.47) than in German articles (M = 0.36, SD = 0.48), t(148) = 4.11, p < .001. Additionally, Indian articles emphasize social and moral order significantly more often (M = 0.40, SD = 0.49) than German articles (M = 0.12, SD = 0.33), t(128.56) = 4.10, p < .001. No significant results were found in the difference of stating the vision statement,
t(147.14) = 1.86, p = .065, and the emphasis on inequalities among people, t(145.12) = 1.35, p = .179.
Summarizing, out of the above-mentioned items, an index was implemented. The results of an independent t-test show that the customer magazine Coca-Cola Journey communicates appeals associated with power distance significantly more often in India (M = 3.39, SD = 1.49) than in Germany (M = 1.79, SD = 1.34), t(148) = 6.92, p < .001. Thus, H2 can be confirmed.
Uncertainty Avoidance
The third dimension concerns uncertainty avoidance in cultures. An independent t-test was conducted to examine differences in the communication strategies between India and Germany in terms of uncertainty avoidance. Specifically, German articles highlight routes to communicate with the customer service significantly more often (M = 0.25, SD = 0.44) than Indian articles (M = 0.00, SD = 0.00), t(74) = -5.01, p < .001. Furthermore, the customer magazine includes significantly more often visual explanations in German articles (M = 0.27, SD = 0.45) than in Indian articles (M = 0.13, SD = 0.34), t(138.82) = -2.06, p = .042. Also, links to more specific information were found significantly more often in German articles (M = 0.76, SD = 0.43) than in Indian articles (M = 0.29, SD = 0.46), t(148) = -6.43, p < .001. As
assumed, articles addressed to German customers make use of loss-framed messages
significantly more often (M = 0.32, SD = 0.47) than articles addressed to Indian customers (M = 0.16, SD = 0.37), t(140.17) = -2.32, p = .022. The independent t-test did not show a
significant result in the difference of the dependence on experts in German and Indian articles, t(146.91) = -1.87, p = -.063.
To sum up, for the dimension uncertainty avoidance an index was conducted out of the above-mentioned items. As the paper assumed, the results of an independent t-test show that the customer magazine communicates appeals associated with uncertainty avoidance
significantly more often in articles addressed to German customers (M = 2.04, SD = 1.11) than in articles addressed to Indian customers (M = 0.88, SD = 0.93), t(148) = -6.95, p < .001. Therefore, H3 can be confirmed.
Long-Term Orientation
The fourth dimension of Hofstede’s (1980) framework concerns long-term orientation. The paper assumes that customer magazines emphasize long-term orientation more often in their communication strategies addressed to Western cultures (Germany) than to Eastern cultures (India). Specifically, the results of an independent t-test indicate that articles
addressed to German customers mention historical qualities of the organization significantly more often (M = 0.39, SD = 0.49) than articles addressed to Indian customers (M =0.05, SD = 0.23), t(104.14) = -5.35, p < .001. Furthermore, the customer magazine Coca-Cola Journey emphasizes processes to achieve long-term results significantly more often in German articles (M = 0.57, SD = 0.50) than in Indian articles (M = 0.27, SD = 0.45), t(146.18) = -3.98, p < .001. However, the results did not show significant differences in the communication strategies regarding sustained commitments and saving resources, t(148) = -0.49, p = .622, and new innovative technologies, t(148) = -0.98, p = .329.
Summarizing, an index was conducted out of the above-mentioned items. The results of an independent t-test indicate significant differences of the customer magazine in
communicating appeals associated with long-term orientation more often in Germany (M = 1.97, SD = 1.33) than in India (M = 1.21, SD = 0.96), t(135.10) = -4.02, p < .001. Thus, H4 can be confirmed.
For each variable, crosstabs were conducted in order to examine the distribution of the variables in the articles addressed to India and Germany. Table 3 (see Appendix B) gives an overview of the results.
Organizational Culture
To determine, whether Coca-Cola’s organizational culture mediates the effect of Eastern (India) and Western (Germany) cultures on the communication strategies in its customer magazine (RQ2), an index was conducted out of the above-mentioned items that correspond to the four orientations. To investigate the mediation effects, a PROCESS analysis was done for each of the cultural dimensions. Figure 3 (see Appendix B) shows a part of the conceptual map illustrating organizational culture as a mediator.
H5a: According to the results, individualism in the Indian and German culture, mediated by the organizational culture, does not have a significant indirect effect on the extent of individualistic appeals communicated by the customer magazine Coca-Cola Journey, b = 0.02, 95% CI [-0.09, 0.14]. Though there is no significant effect of individualism in the Indian and German culture on the organizational culture, b = -0.04, t(148) = -0.33, p = .742, 95% CI [-0.28, 0.20], there is a significant negative effect of the organizational culture on the extent of individualistic appeals communicated, b = 0.45, t(147) = 3.55, p < .001, 95% CI [0.69, -0.20].
H5b: Furthermore, the regression analysis proves that power distance in the Indian and German culture, mediated by the organizational culture, does not have a significant indirect effect on the extent of power distance appeals communicated by the customer magazine Coca-Cola Journey, b = 0.02, 95% CI [-0.12, 0.18]. Though there is no significant effect of power distance in the Indian and German culture on the organizational culture, b = 0.04, t(148) = 0.33, p = .742, 95% CI [-0.20, 0.28], there is a significant effect of the organizational culture on the extent of power distance appeals communicated, b = 0.58, t(147) = 3.86, p < .001, 95% CI [0.28, 0.87].
H5c: A further regression analysis demonstrates that uncertainty avoidance in the Indian and German culture, mediated by the organizational culture, does not have a significant indirect effect on the extent of uncertainty avoidance appeals communicated by the customer magazine Coca-Cola Journey, b = -0.01, 95% CI [-0.11, 0.07]. Though there is no significant effect of uncertainty avoidance in the Indian and German culture on the organizational culture, b = -0.04, t(148) = -0.33, p = .742, 95% CI [-0.28, 0.20], there is a significant effect of the organizational culture on the extent of uncertainty avoidance appeals communicated, b = 0.35, t(147) = 3.20, p < .001, 95% CI [0.13, 0.57].
H5d: Also, long-term orientation in the Indian and German culture, mediated by the organizational culture, does not have a significant indirect effect on the extent of long-term orientation appeals communicated by the customer magazine Coca-Cola Journey, b = -0.03, 95% CI [-0.22, 0.16]. Though there is no significant effect of long-term orientation in the Indian and German culture on the organizational culture, b = -0.04, t(148) = -0.33, p = .742, 95% CI [-0.28, 0.20], there is a significant effect of the organizational culture on the extent of
long-term orientation appeals communicated, b = 0.79, t(147) = 7.17, p < .001, 95% CI [0.57, 1.01].
On the basis of the regression analyses H5 cannot be confirmed. The results show no significant effects of the organizational culture of the Coca-Cola Company as a mediator variable.
Conclusion
There is no doubt that national culture is a crucial element affecting organizations’ economic development. However, public relations practitioners do not always encourage an environment that sees cultural values as a crucial part of organizational communication and, thus, customer alienation and a negative reputation may occur. In order to avoid rejection, companies must be more aware of the key dimensions of culture that can help to
communicate with customers across different markets in a more successful way.
According to the hypotheses, online customer magazines communicate differently in Eastern and Western cultures. The present study supports these findings as it investigated that the customer magazine Coca-Cola Journey communicates appeals associated with
individualism, uncertainty avoidance and long-term orientation more often in Germany than in India, whereas appeals associated with power distance are mentioned more often in Indian articles. It can therefore be assumed that the customer magazine Coca-Cola Journey creates effective processes of communication along lines that favor the interests of diverse audiences. As a result, it can be expected that German and Indian customers feel more attracted and show consumer loyalty to the Coca-Cola Company (Demangeot et al., 2013).
These findings are insightful, particularly for firms planning to expand to another country. Sometimes they are facing the risk of reflecting the norms and values associated with the society of the ‘mother’ country or follow their own cultural, automatic pilot (O’Conner,
1995). According to the results, Coca-Cola’s communication strategies can be used as an orientation for companies that want to expand internationally and want to reach their culturally different customers. Also, firms that are not successful in their communication in different cultures might use Coca-Cola Journey as a guideline in order to develop effective communication content, including meaningful values for various cultures.
Moreover, the findings demonstrate that Coca-Cola’s public relations practitioners are capable to communicate brand love in culturally different ways. But still, there are some variables that do not differ a lot within the articles. Although India is a country that values high power distance, an emphasis on inequalities among people is not discussed significantly more often in Indian articles. A possible explanation could be that the Coca-Cola Company fosters diversity, inclusion and equality (Coca-Cola Company, 2019) and, thus, the
organization does not mention inequalities among people in its communication, even in countries with high power distance such as India.
Furthermore, an interesting finding is that Indian and German articles point out no
differences in mentioning sustained commitments and saving resources. A possible reason for these findings might be the changes in climate that create various challenges for business (Amran & Ooi, 2014). Stakeholders now demand better knowledge of how economic and environmental impacts are considered in business strategies and decisions. Thus,
sustainability reporting in the countries they operate is crucial for companies to demonstrate their effectiveness in meeting their sustainability goals (Amran & Ooi, 2014). It can be observed that articles addressed to Indian customers thematize water conservation projects of Cola to a large extent. Taking up this issue might serve as justification of the Coca-Cola Company for the accusations of dehydrating communities in India. Moreover, articles addressed to German customers place their emphasis on environmentally friendly packaging. One could assume that with this strategy Coca-Cola wants to accommodate the
environmentally friendly reusable system in Germany in order to gain approval of German stakeholders.
Apart from that, the paper assumed that organizational culture mediates the effect of Eastern and Western cultures on the communication strategies of online customer magazines. Contradictory to previous research, Coca-Cola’s organizational culture does not mediate the effect of the country’s culture on the communication strategies of its customer magazine Coca-Cola Journey. According to the results, there is no effect of the Indian and German culture on Coca-Cola’s organizational culture. For many people, Coca-Cola is still an icon of US national culture with an American identity (Foster, 2008). Therefore, it can be assumed that its organizational culture is consistently guided by American values, no matter in which country the company operates. Nevertheless, there is an effect of Coca-Cola’s organizational culture on how the company communicates in different cultures. For this reason, it can be argued that, although Indian and German cultural values are not embedded in the
organizational culture, the company still takes up these cultural values in its communication strategies in order address the right audience.
Discussion and Limitations
The paper made use of the competing values model of Quinn (1988) in order to examine Coca-Cola’s organizational culture based on the four orientations support, innovation, rules and goal orientation. Future research may add interviews or surveys in order to make
statements about employees’ well-being or the working atmosphere of the organization. These research areas require personal discussions and opinions from people in the company, which, however, were not the focus of this research.
Moreover, one could think about other possible mediators such as the cultural background of public relations practitioners. Sriramesh and Takasaki (1999) argue that media relations in
Japan are highly influenced by Japanese culture that values close personal relationships and, thus, Japanese public relations practitioners are high-context communicators. These findings let one assume that practitioners from different cultures communicate in various ways and may have an influence on how global organizations communicate.
This study serves as a basic research for cultural differences in communication strategies in Eastern and Western cultures. Future studies could contribute to the investigation by taking other Eastern and Western countries into account. As already indicated, certain countries’ societal norms require a focus on homogeneity rather than on diversity (Demangeot et al., 2013). Particularly in countries where integration of immigrant minorities is a major political issue, highlighting cultural differences may threaten the national identity. In many European countries, the integration of migrants means their assimilation to a unified social order, with a homogenous culture and set of values (Rudiger & Spencer, 2003). How should global
companies in such countries communicate in the future? Are there communication strategies that promote integration and can be incorporated?
The findings of the study open up avenues for future research and show possibilities for practitioners to enhance the quality of their communication strategies. The Coca-Cola Company shows on the basis of its online customer magazine how communication is carried out in different countries in a way that takes cultural values into account. According to Elliott (2012), Coca-Cola Journey draws about 1.2 million unique visitors a month. An interesting aspect that ties in with this study would be to conduct a customer survey of the magazine's readers in the various countries in order to investigate to what extent the customers can actually identify with the topics and values addressed.
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Appendix A - Codebook
SAMPLE
The sample consists of 150 articles of the online customer magazine Coca-Cola Journey. 75 of the 150 articles are addressed to India, the other 75 articles are addressed to Germany.
CODING UNITS
Each article serves as a coding unit. General coding instructions
• The whole text of the articles has to be taken into account for the coding process. • The focus is only on the content of the article, except of graphics or maps (V17 Visual
explanation).
• Only code what is written in the article (no interpretations).
FORMAL CATEGORIES
V1: Article Identification Number
(For each article a number is assigned, which serves for the identification of the article)
V2: Country Selection 1 India
2 Germany
V3: Coding Date
(The day the coding took place: DDMMYYYY)
V4: Publication Date
(Date the article was published: DDMMYYYY)
CULTURAL DIMENSIONS
INDIVIDUALISM
(Article demonstrates any type of reward given to individuals because of personal success; “This year, the Lifetime Contribution Award was presented to Azim H Premij” – The Coca-Cola Company)
1 yes 0 no
V6 Personal time, freedom, challenge
(Article puts emphasis on the individual’s time or freedom, availability of challenging work in which the individual can achieve a personal sense of accomplishment; e.g. “add your favorite”; “individual drink of choice” – The Coca-Cola Company)
1 yes 0 no
V7 Strong private opinions
(Article includes expectations and encouragement of strong private opinions from everyone, which include activities conducted by companies to collect individuals’ opinions such as contact us, feedback, email addresses)
1 yes 0 no
V8 Prominence given to youth
(Article mentions support provided to youth such as children, students, apprentices, including education, art, career, sports)
1 yes 0 no
POWER DISTANCE
V9 Hierarchy information
(Article includes hierarchy information of the organization (e.g. structure of the organization using different levels of authority), information about the government; e.g. “The government has tried to overcome this problem through urban development programmes” – The Coca-Cola Company)
0 no
V10 CEO
(Article gives information related to the CEO or other executives; e.g. a statement, signature of CEO)
1 yes 0 no
V11 Quality assurance and award
(Article mentions award or certificate related to management or performance, celebrity endorsement (e.g. product is recommended by celebrity), “Coca-Cola India was announced as the MNC in India of the year”– The Coca-Cola Company)
1 yes 0 no
V12 Vision statement
(Article includes top-down vision statement; e.g. “Coca-Cola is recognized as being the world’s largest beverage company, offering over 500 brands to people in more than 200 countries” – The Coca-Cola Company)
1 yes 0 no
V13 Proper titles
(Article mentions titles of employees, the author’s title) 1 yes
0 no
V14 Emphasis on inequalities among people
(Article mentions anything on increasing differences among customers, employees or any other people regarding race, religion, gender, and social role)
1 yes 0 no
