Cultural distance and differences are widely used constructs in making international business relating to expansion of foreign investments, entry mode choice, and performance of affiliates (Shenkar, 2001). Likewise, relationship marketing emphasises on customer retention and satisfaction instead of focusing dominantly on transactions and sales. It is said that an organisation needs to improve its level of competitiveness in a globalised market in order to survive the competition if not to dominate it, and marketing tactics help tremendously in achieving this endeavor. Literatures say that among these tactics is the employment of relationship marketing that aids the firm to market internationally its product or service.
A firm's external operations entail an understanding of how cultural differences affect international marketing decisions. This understanding can be utilised in predicting strategic movements and responses of competitors and thus enables the firm to design effective competitive strategies. International sales negotiations are the primary focal point of this understanding (Tse, et al., 1988, p. 81). The internal conduct of multinational firms also needs knowledge of the impact of culture on marketing decisions. ...Show more