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In her essay on moral relativism Foot (1982) observed that there are wide
variations in moral judgements between different cultures. That is, the very
same action that is judged to be morally “right” in one culture may be “wrong”
in another. Cross-cultural divergence in moral judgements can be partly
explained by differences in ethical standards from one culture to another.
Consistently, Rachels (1986) noted that many thinkers believe cultural
differences in moral codes may be the key to understanding morality.
In fact, culture is generally recognized as one of the most important factors
influencing ethical decision making in marketing ethics theories. For example,
Ferrell and Gresham (1985) and also Ferrell et al. (1989) specify cultural
environment as a background variable of ethical decision making in marketing.
Consistently, in their general theory of marketing ethics, Hunt and Vitell (1986)
depict cultural environment as one of the factors directly influencing various
components of the marketing ethics decision process. Recognizing the
importance of cultural factors for marketing ethics, Hunt and Vitell paraphrase
this conclusion by Bartels (1967, p. 23): “Contrasting cultures of different
societies produce different expectations and become expressed in the dissimilar
ethical standards of those societies”.
Variations in ethical decisions among marketers from different cultures are
evidenced in empirical studies. For example, an observational study of the
business negotiation process by Graham (1985) revealed that Brazilian International Marketing Review,
Vol. 11 No. 6, 1994, pp. 65-78.
executives tended to make fewer commitments and that their first offers tended © MCB University Press, 0265-1335
International to be more greedy than that of their Japanese and American counterparts.
Marketing Moreover, it was reported that, relative to Japanese or Brazilian executives,
Review American executives were more likely to offer a “fair” price (one that was closer
to the eventual solution). A comparative study by Becker and Fritzsche (1987) of
11,6 American, French and German managers on various types of ethical issues also
uncovered some substantial differences. For example, on an issue that may
66 benefit the firm at the expense of the environment, Becker and Fritzsche found
that French and German managers were more likely to side with their
employers and participate in what they perceived as a relatively minor
infraction of environmental law. They also found that, relative to French and
German managers, American managers were less likely to approve a
production method which would result in illegal air pollution.
In their review of marketing ethics, Murphy and Laczniak (1981, p. 258)
pointed out that, “as more firms move into multinational marketing, ethical
issues tend to increase”. While numerous studies have been conducted to
examine the ethical decisions of American marketers in general (e.g. Mayo and
Marks, 1990; Reidenbach and Robin, 1990; Singhapakdi and Vitell, 1990, 1991;
Vitell and Hunt, 1990), there has been relatively little interest among researchers
on the cross-cultural aspects of marketing ethics decisions. Furthermore, the
cross-cultural ethics studies conducted tend to focus mainly on behaviour or
intention and not on the cognitive components or the psychosocial factors
underlying ethical decision-making processes. The main purpose of this study
is to explore the cross-national nature of marketing ethics decisions. In
particular, the objective is to compare American marketers with Thai marketers
in terms of moral philosophies, ethical perceptions, and ethical judgements.
These variables were chosen for comparison because of their importance as
evidenced in various empirical and theoretical works. These two cultures were
chosen because of some fundamental differences between them. For example,
according to Hofstede’s (1980, 1984) cultural typology, the US represents a more
individualistic and a more masculine society than Thailand. The US is also
weaker in terms of uncertainty avoidance which means that its citizens tend to
be less emotional, more accepting of personal risk and more tolerant.
Nevertheless, this study is somewhat exploratory because, to date, there has
been no empirical work on cultural differences between Americans and Thais
regarding their moral philosophies or other aspects of ethical decision making.
Theoretical Foundation
Cultural Typology
According to Hofstede’s (1984) typology, individualist cultures, such as the
USA, are those where individuals are concerned primarily with their own
interests, whereas collectivist societies, such as Thailand, assume that
individuals belong to an “in-group” such as an extended family or clan from
which they cannot detach themselves. This “in-group” protects its members
and expects their loyalty in turn.
Furthermore, according to Hofstede, masculine cultures, such as the USA are Study of
those that value material success and assertiveness more, whereas feminine Moral
cultures, such as Thailand, tend to place more value on qualities such as Philosophies
interpersonal relationships and concern for the weak. Hofstede defines
uncertainty avoidance as the extent to which those in a culture become nervous
by situations that are unstructured and unpredictable, and, therefore, attempt
to avoid these situations by adopting strict codes of behaviour. Cultures, such as 67
the USA, that are weak in uncertainty avoidance tend to be more accepting of
risk, more tolerant and less emotional. Societies, on the other hand, such as
Thailand, that are strong in uncertainty avoidance tend to be emotional,
security-seeking and intolerant.
Finally, Hofstede also defines power distance as the extent to which
individuals in a society accept inequality in power and consider it as normal.
According to Hofstede, countries with a larger power distance such as Thailand
are more likely to accept inequality in power and authority than those from a
country with a smaller power distance such as the USA.
According to a recent theoretical study by Vitell et al. (1993), Hofstede’s
typology can be applied to ethical issues. In their article, several propositions
were developed that link the influence of the various dimensions of culture, as
defined by Hofstede, with ethical decision making. Appropriately, this article
will form the basis for some of the forthcoming propositions postulated below.
Moral Philosophies
It is generally assumed that marketers, when faced with decision situations
having ethical content, will apply ethical guidelines or rules based on different
moral philosophies (Ferrell and Gresham, 1985; Ferrell et al., 1989; Hunt and
Vitell, 1986, 1993). The importance of moral philosophies as factors of
marketing ethics decision making processes has been highlighted by Ferrell
and Gresham (1985, p. 88) in their marketing ethics model.
Consistent with most writers (e.g. Beauchamp and Bowie, 1979; Murphy and
Laczniak, 1981), Hunt and Vitell (1986) categorize moral philosophies into two
major types, deontological and teleological theories. They explained that
“deontological theories focus on the specific actions or behaviors of an
individual, whereas teleological theories focus on the consequences of the
actions or behaviors” (p. 6). Hunt and Vitell advance that the marketing ethics
decision process involves both deontological and teleological evaluations. This
proposition has generally been empirically supported (e.g. Mayo and Marks,
1990, Vitell and Hunt, 1990).
According to Forsyth (1980, p. 175), there are many valid approaches to
“describe individual differences in moral thought”. The following approaches
were cited by him: Hogan (1970, 1973), Kelman and Lawrence (1972), Kohlberg
(1968, 1976), Rest et al. (1974). Forsyth (1980) (also, Schlenker and Forsyth,
1977), however, argued that individual differences as predictors of moral
judgement may be described most parsimoniously by taking into account the
two basic dimensions of personal moral philosophies, relativism and idealism.
International Relativism is conceptualized as the degree to which an individual rejects
Marketing universal moral rules when making ethical judgements. Forsyth (1980, p. 175)
Review asserted that relativists “reject the possibility of formulating or relying on
universal moral rules when drawing conclusions about moral question”.
11,6 Idealism is conceptualized as the degree to which the individuals “assume that
desirable consequences can, with the ‘right’ action, always be obtained”
68 (Forsyth, 1980, p. 176). According to Forsyth, idealists adhere to moral
absolutes when making moral judgements. Consistent with the marketing
ethics theories discussed earlier, Forsyth (1992) recently proposed that the two
moral philosophies, idealism and relativism, can influence business ethical
decisions.
In comparing American and Thai marketers regarding their idealism and
relativism, it is expected that since the Thai culture is stronger in uncertainty
avoidance and power distance, as well as more collectivist and thus, places
more importance on codes of behaviour, Thais will be more idealistic since
adherence to the “moral absolutes” of idealism represents a reduction in
uncertainty. Similarly, they will be likely to be less relativistic than their
American counterparts. This thinking is consistent with arguments made by
Vitell et al., 1993 (see especially, propositions 2, 8 and 9; pp. 756-7). Thus, the
following propositions are presented.
P1: Thai marketers will be more idealistic than American marketers.
P2: Thai marketers will be less relativistic than American marketers.
Methodology
Sample
A self-administered questionnaire was used as the data collection technique for
both American and Thai marketing practitioners. For the American group, a
national mailing list of professional members of the American Marketing
Association (AMA) was selected as the sampling frame. All members of the
Thai Marketing Association were selected as target respondents for the Thai
marketer group. A detailed profile of both groups of respondents is provided in
Table I.
American marketers. A total of 2,000 target respondents were sampled from
a list of 14,739 US practitioner members with primary areas of interest in
marketing management and sales management. Of the 1,997 delivered, 492
people responded for a response rate of 24.6 per cent. The response rate is
comparable with those of previous marketing ethics studies that have also used
AMA mailing lists as sampling frames (e.g. Hunt and Chonko, 1984;
Singhapakdi and Vitell, 1990, 1991).
Thai marketers. As pointed out earlier, all members of the Thai Marketing
Association (600 people) were included in the sample for Thai marketer group.
Two mailings were used to collect data. A month after the first mailing, 58
questionnaires were returned. The second wave of questionnaires was then
mailed to all 600 members of the association again. After another month, the
number of returned questionnaires was 40. Thus, the total number of responses
is 98 (16.3 per cent). The response rate is considered quite high compared with
other mail surveys conducted in Thailand by one of the authors.
Following the recommendation of the Thai Marketing Association (TMA) the
questionnaires used for the Thai group were in English. The reasons given by
the TMA for this recommendation were that members of the Thai marketing
association are mostly well educated and many obtained their degrees from
universities in the United States. Additionally, English is a common business
language in Thailand, and Thai business people frequently correspond in
English. It should also be pointed out that there are two English-language
newspapers in Thailand (i.e. The Bangkok Post and The Nation) that are widely
read by those in business. Our discussion with the TMA led us to believe that
had we sent the questionnaire in Thai it would have offended business people
and adversely affected the response rate. Because of all of these considerations
International
Americans Thais
Marketing % %
Review
11,6 Sex
Male 48.2 80.4
Female 51.8 19.6
70 Age
Under 30 28.5 20.4
30 to 39 41.1 44.9
40 to 49 21.1 27.6
50 to 59 6.0 7.1
60 and over 3.3 0.0
Education
Some college 5.4 27.1
Bachelor’s degree 29.9 15.3
Graduate study 64.7 57.6
Current job title
Sales executive, sales manager, account manager 13.0 11.5
Marketing VP or Manager 29.7 21.9
CEO, President, executive director or owner 12.5 22.9
Director or promotions manager 4.1 5.2
Director or manager of marketing research 19.9 0.0
Product or brand manager 7.1 8.3
Other marketing 5.0 12.5
Managers 8.7 17.7
Years of business experiencea
Less than 5 17.8 19.5
5 to 9 26.5 29.9
10 to 14 25.5 18.6
Over 14 30.2 32.0
aThese variables were measures at the continuous level and have been categorized here
Table I.
Profile of Respondents
References
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Scenario 1
A person bought a new car from a franchised automobile dealership in the local area. Eight
months after the car was purchased, he began having problems with the transmission. He took
the car back to the dealer, and some minor adjustments were made. During the next few months
he continually had a similar problem with the transmission slipping. Each time the dealer made
only minor adjustments on the car. Again, during the 13th month after the car had been bought,
the man returned to the dealer because the transmission still was not functioning properly. At this
time, the transmission was completely overhauled.
Action: Since the warranty was for only one year (12 months from the date of purchase), the dealer
charged the full price for parts and labour.
Scenario 2
A young man, recently hired as a salesman for a local retail store, has been working very hard to
favourably impress his boss with his selling ability. At times, this young man, anxious for an
International order, has been a little over-eager. To get the order, he exaggerates the value of the item or
withholds relevant information concerning the product he is trying to sell. No fraud or deceit is
Marketing intended by his actions, he is simply over-eager.
Review Action: His boss, the owner of the retail store, is aware of this salesman’s actions, but he has done
11,6 nothing to stop such practice.
Scenario 3
78 A retail grocery chain operates several stores throughout the local area including one in the city’s
ghetto area. Independent studies have shown that prices do tend to be higher and there is less of
a selection of products in this particular store than in the other locations.
Action: On the day welfare cheques are received in the area of the city, the retailer increases prices
on all of his merchandise.
Scenario 4
Sets of a well-known brand of “good” china dinnerware are advertised on sale at a considerable
discount by a local retailer. Several patterns of a typical 45-piece service for eight are listed. The
customer may also buy any “odd” pieces which are available in stock (for instance, a butter dish,
a gravy bowl, etc.). The advertisement does not indicate, however, that these patterns have been
discontinued by the manufacturer.
Action: The retailer offers this information only if the customer directly asks if the merchandise is
discontinued.