THE EFFECT OF CULTURAL DIFFERENCES ON MARKETING STRATEGIES OF AN ORGANIZATION: THE CASE OF ETHIO-TELECOM

Abstract

The major objective of this study to examine the effect of cultural differnces on the marketing startegies of Ethio-Telecomat the head office and central district branches in Addis Ababa Data collected from employees in every position using stratified sampling technique. In doing so, a model developed by Hofstede (2011) which includes five cultural dimensions namely; individualism–collectivism, uncertainty avoidance, power distance, masculinity–femininity, and long-term orientation. Additionally, the study makes use of other national factors (language, religious beliefs; ethnic values) to inject local context to the study. The study employed both descriptive and explanatory research types. On the other hand the study employed mixed research approach. The findings of the study expected to show that cultural differnces have significant effect on the marketing startegies of the company considering the diversified culture the company is operating in. A descriptive analysis of the organizational culture at Ethio-Telecomfound that the cultural dimensions of power distance and masculinity were relatively low, while collectivism, uncertainty avoidance, long-term orientation, and national culture were emphasized. The regression analysis confirms that these cultural dimensions have a statistically significant effect on marketing strategies, with power distance and masculinity having a negative effect, and uncertainty avoidance, collectivism, long-term orientation, and national culture having a positive effect. Based on these findings, recommendations are made for Ethio-Telecomto prioritize understanding and valuing cultural dimensions, tailor its marketing strategies and organizational behavior to align with cultural values, reduce power distance and masculinity, and prioritize uncertainty avoidance, collectivism, long-term orientation, and national culture.