Attracting Investors on Borderless Financial Markets: the Impact of Cultural Values on Buyer Cognition

SHORT ABSTRACT Attracting investors from around the globe has increasingly become a major challenge for listed corporations (Kotler, Kartajaya, and Young 2004). Although cultural differences seem to be obvious when operating in different cultures (Hampden-Turner and Trompenaars 1997; Hofstede 2001), many investor marketers still apply the same stimuli in their corporate marketing when going abroad. Thus, they apparently seem to assume the same cognitive processes of investors from their home market compared with those from foreign markets. This assumption, however, appears to be flawed as discovered in current research. A study among 365 German, Japanese, and US-American investors found that cultural values have a considerable impact on cognitive processes. Using structural equation modeling, it was discovered that two cultural value constructs – Time and Control – are related to four cognitive constructs – Mental Accounting, Time Pressure, Dissonance, and Control Illusion. Theoretical and empirical evidence led to a valid and reliable measurement instrument that can be applied to assess culture-bound cognitive processes of investors. REFERENCES Hofstede, G. (2001). Culture’s Consequences: Comparing Values, Behaviors, Institutions, and Organizations Across Nations. Thousand Oaks: Sage. Kotler, P., H. Kartajaya, and S.D. Young (2004). Attracting Investors: A Marketing Approach to Finding Funds for Your Business. New York: Wiley. Hampden-Turner, C. and A. Trompenaars (1997). Response to Geert Hofstede. International Journal of Intercultural Relations, 21 (1), 149-159.


Margit Enke and Martin Reimann (2006) ,"Attracting Investors on Borderless Financial Markets: the Impact of Cultural Values on Buyer Cognition", in AP - Asia-Pacific Advances in Consumer Research Volume 7, eds. Margaret Craig Lees, Teresa Davis, and Gary Gregory, Sydney, Australia : Association for Consumer Research, Pages: .


Margit Enke, Technical University of Freiberg, Germany
Martin Reimann, Technical University of Freiberg, Germany


AP - Asia-Pacific Advances in Consumer Research Volume 7 | 2006

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