WALMART SCENARIO
Walmart is the largest retailer in the world with more than 4,000 stores located in 14 countries outside the United States. The corporation has learned, sometimes the hard way, that the Walmart business model cannot be applied to every country it enters due to cultural differences. For example, the retailer ran into difficulties in many European countries because stores are not open 24-hours a day, seven days a week, like Walmart Supercenters in the United States. When negotiating the purchase of Trust-Mart stores in China, the company had to develop "enduring" relationships with executives before even discussing business opportunities. Making inroads into the Chinese market was particularly difficult for Walmart. Chinese customers generally believe in the superiority of home-made products to foreign ones. Establishing trust with these customers was difficult as Chinese customers don't warm up easily to foreign brands and view them with suspicion. Most of the customers perceived a price-risk relationship rather than a price-quality relationship while making purchasing decisions. Even within China, the cultural diversity was immense. Standard Chinese was spoken differently in different parts of the country. Keeping this diversity in mind, Walmart varied its marketing mixes based on local tastes, cultures, and economic conditions.
-Refer to Walmart Scenario.The corporation has learned,sometimes the hard way,that the Walmart business model cannot be applied to every country it enters due to cultural differences.For example,while negotiating the purchase of Trust-Mart stores in China,the company had to develop "enduring" relationships with executives before even discussing business opportunities and most Chinese customers perceived a price-risk relationship rather than a price-quality relationship while making purchasing decisions.Which of the following best describes such differences?

Question

Quizplus · Accepted Answer

The cultural differences mentioned in the scenario, such as the need for developing enduring relationships with executives in China and the perception of price-risk relationship by Chinese customers, indicate a cultural distance between the Walmart business model and the cultural norms and values in China. Cultural distance refers to the extent of cultural differences between two countries or regions.

WALMART SCENARIO Walmart Is the Largest Retailer in the World with More