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

question 5

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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.Establishing trust in the customers is very important in China as they don't warm up easily to foreign brands and view them with suspicion.This suspicion forms a part of the consumer _____ in China.

Definitions:

Plain Folk

A term describing the average, working-class individuals, especially those living in rural areas or small towns, emphasizing their simplicity and honesty.

Historical Significance

The importance attributed to an event, object, or person in history based on its impact or contribution to the present and future.

Paternalism

A policy or practice of treating or governing people in a fatherly manner, especially by providing for their needs without giving them rights or responsibilities.

Canadian

Pertaining to Canada or its people, culture, or characteristics.