Less Is More for Online Marcom in Emerging Markets: Linking Hofstede's Cultural Dimensions and Higher Relative Preferences for Microblogging in Developing Nations

Abstract

ABSTRACT This study uses a series of simple linear regressions with the relative usage rate of microblogging to social networking as the dependent variable and each of Hofstede's cultural dimensions as the independent variable for each of 17 participating countries on five continents. After running the regressions against the dimensions using this approach, a strong correlation and moderate determination for the individualism dimension, or IDV, is established. This study is significant because it provides critical information that is likely to be useful in teasing out a multiple regression model explaining the differences in the social networking adoption patterns between developing and developed nations. Firms marketing to developing countries must understand each country's unique cultural bias towards different types of marketing communication channels outside the traditional marketing channels. Microblogging, a potential form of electronic Word of Mouth (eWOM) advertising, was shown to be more prevalent in emerging countries than in developed nations. This has potential implications for marketers who want to reach the masses in these powerful emerging markets. However, more research is needed about the motivations behind developing country usage of microblogs. INTRODUCTION Web based social interaction is taking root in a significant number of developing countries. The sheer size of the populations of developing nations, combined with the continued proliferation of mobile internet access within them, makes the growth potential for web based social broadcasting great in these countries. China, and other emerging markets throughout the world, will account for 75% of the world's total growth in the next two decades and beyond, according to U.S. Department of Commerce estimates (Cateora et. al 2009). Global trends in the patterns of online social interactive behavior on the web are starting to be established in the academic literature. This paper is a follow-up to a study highlighting the higher relative rate of usage in microblogs such as Twitter, as compared social network profiles such as Facebook, in developing nations (Jobs, 2011). Even though microblogging usage is much smaller than social networking, it is still significant and being adopted at a much higher relative rate in developing nations than it is in industrialized nations. Therefore, it is valuable to begin to understand what characteristics in these countries are behind this trend. This study uses a series of simple linear regressions of the relative usage rate of microblogging to social networking as the dependent variable, and each of Hostede's Cultural dimensions as the independent variable, for seventeen countries across five continents. After running the regressions against Hofstede's dimensions using this approach, a strong correlation and moderate determination for the individualism dimension or IDV is established. This study is significant because it provides critical information that is likely to be useful in teasing out a multiple regression model explaining the differences in the microblogging and social networking adoption patterns between developing and developed nations. Firms marketing to developing countries must understand each country's unique cultural bias towards different types of marketing communication channels outside the traditional marketing channels. Properly selected online social interaction services and applications may provide opportunities for companies to better promote their products and services within developing countries. LITERATURE REVIEW Mikolaj Jan Piskorski of the Harvard Business School has collaborated with Tommy McCall, a prominent Information Graphics Editor and Designer, to construct a visual model of international usage patterns for social internet users. As the analyst on this project, Piskorski makes the following comment when he discusses this behavioral world map: Perhaps the most interesting developments are in emerging markets, where users are going online in ever growing numbers. …