UNIVERSiTY OF HAWAI'i LIBRARY REFLECTIONS OF CULTURAL VALUE: KOREAN AUTOMOBILE CORPORATIONS' TELEVISION ADVERTISING A THESIS SUBMITTED TO THE GRADUATE DIVISION OF THE UNIVERSITY OF HAWAl'I {j\J PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF ARTS {j\J COMMUNICATION DECEMBER 2002 By YongwooKim Thesis Committee: Majid Tehranian, Chairperson Gary Fontaine HagenKoo Table ofContents List of Tab1es--- ----------------- ----------------------------------------------------- ----- -- -- -- --vi List of Figures-------------------------------------------------------------------------------------vii Chapter 1: Introduction---------------------------------------------------------------------- -----1 Research Problems---------------------------------------------------------------- ----- --2 obj ectives---------- ---------------------------------------------- --------------------------4 Chapter 2: Review of Literature------------------------------------------------------------------6 Introduction---------------- ------- ------- ------------- --------------- ----------------- -----6 International Marketing Environment--------------------------------------------------6 Controversy in International Marketing------------------------------------------------7 Standardization--------------------------------------------------------------------7 Localization------------------------------------------- -- ------------- ----- -- -- -----8 Compromise-------- -- --------------------------------------------------------------9 Advertising and Culture-----------------------------------------------------------------1 1 Dimension of National Culture------------------------------------------------12 Conte){ts----------------------------------------------------------------------------13 Product Characteristics--------------------------------------------------------------------13 Four Categories ofProducts-----------------------------------------------------14 Product Involvements------------------------------------------------------------15 Shared and Persona) Products---------------------------------------------------15 KACs' International Advertising Environment----------------------------------------16 Summary ofLiterature Review----------------------------------------------------------17 111 Chapter 3: Methods--------------------------------------------------------------------------------20 Introduction of the Studies---------------------------------------------------------------20 Study 1------ --------- --------------------------------------------- -------------------------21 Introduction---------------------------- -- --------------------------------- --------21 Research Questions---------------------------------------------------------------22 Key Concepts----------------------------------------------------------------------23 Procedure--------------------------------------------------------------------------24 Findings----------------------------------------------------------------------25 Study 2------ ------- -- ------------------------------------------- ---------------------------29 Introduction------------------------------------------------------------------------29 Hypotheses-------------------------------------------------------------------------30 Key Concepts---------------------------------------------------------------------31 Dependent Variables----------------------------------------------------3 1 Independent Variable----------------------------------------------------35 Popu1ation and Samp1e-----------------------------------------------------------36 Coding Procedure---------------------------------------------------------------37 Coding Protoco1----- ------------------------------------------------------------40 Purpose of Study---------------------------------------------------------40 Definitions----------------------------------------------------------------40 Procedure----------------------------------------------------------------41 Findings--- ------------------------------------------------------------------------41 Frequencies ofVariables-----------------------------------------------42 Hypotheses Testing------------- -~-- -------------------------------------46 IV Chapter 4; Conclusion and Limitations------------------- ---------------------------------------50 Conclusion---------------------------------------------------------------------------------50 Liillitations--------- -------------------------------- ---- -- --------- --------------------------51 Suggestions for Future Research-------------------------------------.------------------53 Appendix A----------------------------------- ------------------------------------------------------54 Appendix B---------------------------------------------- -- ------------------------------------------56 Appendix C---------- --------- ----------------------------- ------------------------------------------58 References------------------------------------------------------------------------------------------61 v List ofTables Table ~ I. Factors Affecting Extent of Standardization-"-------------------------------------I 0 2. Matrix of Standardization and Localization Strategy-----------------------------15 3. Descriptions of Selected Models of Automobile----------------------------------21 4. Expert opinion on Environmental Elements Affecting Ad. Theme-------------27 5. Criteria for Individualistic and Collectivistic Values-----------------------------33 6. Criteria for Context Values----------------------------------------------------------34 7. Sampled TV Commercials-----------------------------------··----------------------37 8. Coding Sheet.----- --------------------------------------------------- -- ------- ----.----39 9. Frequency of Company---------------------------------------------------------------42 10. Frequency of Models-- -- -------------------------------------------- ------------------43 11. Frequency of Markets-----------------------------------------------------------------44 12. Frequency of Individualistic Val ue--------------------------------------------------45 13. Frequency of Context Value----------------------------------------------------------45 14. Cross-tabulation of Individualistic Value----------------------------------------------47 15. Cross-tabulation of Context Value------------------------------------------------------48 VI List ofFigures Page 1. Frequency of Company··.·····-----·········.·-····.······.·-·-·.············-----42 2. Frequency of Model·······----····· ------ --------.....•.....-----.-..··-43 3. Frequency 0 f Market···-- --- -- --.-- --.---- --.---- ··-44 4. Frequency of Individualistic Value----·······-------········---------············-45 5. Frequency of Context Value.----- --.-............•-- ------------46 6. Individualistic Value in English-speaking and South Korean Markets··-····-47 7. Context Value in English-speaking and South Korean Markets···--··········-48 Vll Chaptet'l Introduction In 1964, Marshall McLuhan named the world "a global village". With developments of technology in communication and transportation, the notion of "globalization" is found everywhere in political, socio-economic, and cultural discourse. In marketing theory, the notion of "globalization" was introduced by Theodore Levitt in 1983, when he argued that "companies must learn to operate as if the world were one large market ignoring superficial regional and national differences and selling the same products in the same way throughout the world" (pp. 92-93). In marketing, the significance of geographical border is tapering off as corporations have expanded their businesses globally. As the consumers' needs and tastes around the world become similar with globalization, marketing and advertising directors of transnational corporations I(TNC) seek to standardize advertising in the international market (Elinder, 1965; Johnsson & Thorelli, 1985). This international marketing approach seems to make sense because consumers around the world may have similar desires for qualities and values. However, it may be unrealistic to integrate the international market without considering the differences in culture, infrastructure, and development of economy and technology (Mooij, 1994). The differences in infrastructure such as transport system, distribution, I 'International', 'multinational', 'global', and 'transnational' corporation are not well-defmed concepts. According to Mooij (1994), "The diftermces lie in the location and types ofmarkets and the organization ofthe enterplise". Mooij defined a transnational cOlporation as "an integrated business system which uses global resomces to serve global customers". The transnational corporations seek profits (itrough global competition mixing and matching resources. I available media, and legal conditions, as well as the differences in economy and technology are importimt to international marketing. However, the cultural difference is considered as the core of international advertising strategies because advertising is a reflection of culture. This study examined the reflection of cultural values in advertising through the analysis of experts' opinion and a content analysis of TV commercials in international markets. Research Problems A standardized advertising strategy has advantages and disadvantages. Standardization of advertising helps to create a consistent brand image and reduces the cost of producing advertising campaign. Using the standardized advertising strategy, produced by headquarters,