Horizontal/Vertical Cultures & Advertising: Does Status, Pleasure, or Relationships Appeal to Your Culture?

The glossy page of an in-flight magazine shows an ad of a woman running while clutching a sleek new mobile phone.

Several passersby turn to watch her run past.

The ad reads “Turning heads with America’s Slimmest Phone!”

Does this ad appeal to you?

Would it appeal generally to the people of your culture?

While it’s not uncommon to encounter advertisements promising to elevate a consumer’s status and leave a lasting impression on others, the role of culture in shaping the resonance of such appeals cannot be understated. 

The degree to which such advertisements motivate consumers may vary depending on the cultural context.

This study set out to explore the influence of culture on the use of persuasive appeals highlighting the allure of status benefits and various other advantages.

The Study’s Hypotheses

The study’s hypotheses stem from a nuanced consideration of cultural distinctions, particularly the contrast between horizontal cultures, which value equality, and vertical cultures, which emphasize hierarchical structures

The researchers argued that this cultural distinction offers a unique lens through which to make predictions, revealing insights not traditionally associated with broader cross-cultural differentiations between individualism and collectivism.

The delineation between vertical cultures and horizontal cultures offers a fresh perspective on the prevalence and content of advertising appeals. 

The Study

Through a comprehensive content analysis encompassing 1,211 magazine advertisements across five diverse countries (Denmark, Korea, Poland, Russia, and the United States), researchers uncovered distinct patterns in ad content that underscore the significance of this cultural distinction.

In their in-depth examination, they delved into these ad content patterns and their implications. 

They undertook a comparative analysis, pitting the predictions derived from the vertical/horizontal cultural distinction against those derived from the broader individualism-collectivism framework, ultimately subjecting these predictions to empirical testing.

Notably, the analysis revealed variations in the emphasis on status benefits and uniqueness benefits within advertisements, mirroring the countries’ categorization as vertical or horizontal cultures.

The Results

The study’s comprehensive analysis of magazine advertisements spanned several countries, each representing distinct cultural orientations, including VI (United States), HI (Denmark), and VC (Korea, Russia, Poland).

Researchers noted a distinct emphasis on status-related benefits within advertising appeals in countries aligned with VC cultures, which includes Korea, Russia, and Poland, as well as the VI culture in the United States. 

This emphasis encompassed depictions of luxury, references to prestige, impressing others, prominence, affiliations with high-status groups (e.g., ivy league graduates), endorsements by high-status individuals (e.g., celebrities), and other forms of distinction (e.g., “award-winning”). 

This focus on status benefits corresponded with the cultural profiles of these countries. 

Notably, in all VC societies examined, status benefits emerged as a dominant theme in advertising, often overshadowing appeals emphasizing pleasure, uniqueness, or relationships. 

In stark contrast, the emphasis on pleasure appeals was preferred in the HI culture of Denmark.

Uniqueness-related appeals, which included elements of differentiation, self-expression, self-reliance, and novelty, were also more prominent in HI cultures compared to VI and VC cultures. 

These appeals portrayed the product as a means of self-expression, aligning with cultural contexts emphasizing individuality, distinctiveness, and self-reliance.

Notably, although both the United States and Denmark are categorized as individualistic societies, their advertisements significantly differed in their emphasis on uniqueness and status, reflecting the nuances of their vertical and horizontal cultural values

These patterns were not anticipated by conventional analyses based on the broader individualism-collectivism classification.

As expected, the prevalence of ads emphasizing pleasure benefits largely corresponded to the individualism-collectivism orientation of the society. 

These appeals, which cater to personal hedonic goals valued in individualistic cultures, were more prevalent in individualistic societies than in collectivistic ones, with the contrast between HI and VC cultures proving particularly significant.

However, no significant differences emerged across individualistic and collectivistic cultures in regard to relationship appeals, which focused on sociability, nurturing, warmth, and belongingness. 

Overall, the study found that the conventional individualism-collectivism framework falls short in predicting the prevalence of such appeals, making the horizontal/vertical cultural distinction a valuable addition to cross-cultural theory and research.

Is It Worth the Risk?: Different Cultural Takes on Risk Perception

Are some cultures greater risk-takers than others?

This study dove in to find out.

Analyzing the data of respondents from Germany, Poland, the US, and China, the study measured respondents’ risk preference for pricing financial options.

These are their findings.

Hypothesis

Studies have shown a correlation between a culture’s position on the individualism-collectivism scale and its risk preference.

Called the Cushion Hypothesis (Weber & Hsee, 1998), the theory suggests that those from collectivist cultures are more likely to take financial risks.

Why?

Due to the perceived support from their collectivist culture and, thus, the reduced negative consequences such a risk might have on the individual.

While this study did arrive at the same conclusion – that the collectivist society of China was less risk-averse than its American counterpart – it did identify a more specific reason for it.

Risk-Averse

The majority of respondents in all four cultures were identified as risk-averse (i.e. they were willing to pay more for options they saw as “less risky”).

When you look at a risk-return conceptualization, it is natural that most people, no matter what culture, would perceive risk this way.

When risk preference was evaluated in the traditional expected-utility framework, Chinese respondents were considerably less risk-averse in pricing than Americans.

But what this study found was that the difference in risk preference may not be due to a cultural attitude toward perceived risk; instead, it appears largely due to the perception of the financial options’ risk itself.

Chinese participants simply did not find the options as risky as their counterparts.

Conclusion

The study states:

“Chinese respondents were closest to risk neutrality in their pricing of the financial options and judged the risk of these options to be the lowest, but were not significantly less perceived-risk averse.

“American and Germans offered the lowest prices and also perceived the risk of the options to be highest, but were not significantly more perceived-risk averse.”

One might practically apply this knowledge to commerce and negotiation when working across these particular cultures, affording both negotiators joint gains.

The study concludes that while cultures do vary on a collectivism-individualism continuum which undoubtedly impacts perceived risk, other cultural factors in risky decision-making – locus of control, differences in achievement motivation, etc. – may also come into play in risk preference.

Further studies into the subject might provide more insight.