Why We Conduct Research?
At The Culture Factor Group, we believe in unlocking culture with data. Our research advances the understanding of how culture shapes decisions, organisations, and societies. By analysing large-scale data, we refine existing models, challenge assumptions, and provide insights that drive better leadership, HR policies, and global strategies.
Understanding how cultural values shape financial priorities is crucial for businesses, policymakers, and researchers. This study explores how people across 52 countries would allocate their money if they were rich, providing a unique lens into cultural dimensions of consumer behaviour.
Purpose of the research
This study examines how cultural priorities influence spending behavior across different global markets, providing insights into cross-cultural consumer decision-making and its impact on international marketing strategies.
This study also aims to replicate two of Hofstede’s cultural dimensions, specifically Masculinity vs. Femininity* and Individualism vs. Collectivism, in the field of consumer behavior research.
Findings
Figure 1: A plot of 52 countries on the two dimensions of national culture in this study, delineating major cultural clusters.**
The study identified two primary dimensions of cross-cultural consumer decision-making.
- Conservatism vs. Hedonism
- Conservative societies prioritise religious donations and sports-related spending.
- Hedonistic societies focus on pleasure-driven spending, such as travel and leisure experiences.
- Altruism vs. Ego-Boosting
- Altruistic societies focus on philanthropy, particularly donations to healthcare, environmental causes, and the poor.
- Ego-Boosting societies prioritise status-driven spending, such as luxury goods, lavish celebrations, and business investments.
Implications
For Marketers & Businesses:
Enables tailored marketing strategies by understanding how cultural groups allocate wealth.
Helps financial institutions and luxury brands target culturally specific spending habits.
For Economists & Policymakers:
Provides insights into cultural differences in economic behaviour, influencing financial policies and economic forecasts.
Assists in developing culturally adaptive financial literacy programmes.
For Researchers:
Offers a novel approach to studying consumer behaviour through cultural dimensions.
Reinforces the need for updated cultural frameworks beyond Hofstede’s traditional dimensions.
Methodology
- Sample Size: 51,529 respondents across 52 countries.
- Data Collection: Probabilistic selection through consumer panels and community samples.
- Survey Question: “What would you do with your money if you were rich?”
- Spending Priorities Analysed:
- Self-enhancement: Luxury items, political influence, business investment.
- Altruism: Donations to healthcare, the poor, environmental causes.
- Hedonism: Travel, leisure experiences.
- Conservatism: Religious donations, sports funding.
- Analysis Techniques: Factor analysis to extract cultural dimensions.
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Research Limitations/Implications
- Some culturally specific spending choices were excluded due to comparability issues across countries.
- The study assesses idealised spending preferences, not actual financial behaviour.
- Future research should explore real-world spending data to validate these cultural dimensions.
What is peer reviewed?
This research underwent a rigorous peer-review process, ensuring that its methodology, findings, and conclusions meet academic standards. Peer review involves expert evaluation, ensuring the study’s objectivity, reliability, and scientific validity.
- Title: What would people do with their money if they were rich? A search for Hofstede dimensions across 52 countries
- Authors: Michael Minkov, Pinaki Dutt, Michael Schachner, Janar Jandosova, Yerlan Khassenbekov, Oswaldo Morales, Vesselin Blagoev
- Journal: Cross Cultural & Strategic Management
- ISSN: 2059-5794
- Publisher: Emerald Publishing Limited
- Issue publication date: 18 April 2019
- This study was sponsored financially by MediaCom, Ltd., a multinational media agency. MediaCom did not interfere in any way with the design of the study, the data collection, or the data analysis.
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*On the country comparison the dimension name has been updated to Motivation towards Achievement and Success, with the poles being referred to as Consensus-oriented vs. Decisive. more information in our FAQ.
**Conservatism vs. Hedonism replicates Hofstede’s Individualism-Collectivism dimension, corresponding to the geographical North - South axis, with Western Europe scoring most hedonistic (individualistic in the 6-D) and African countries most altruistic (collectivistic in the 6-D). While Altruism vs. Ego-Boosting is conceptually related to Hofstede’s Masculinity-Femininity* dimension, it statistically aligns with Hofstede’s fifth dimension (Short-term vs. Long-Term Orientation) along the geographical East - West axis: East Asian countries score highest on Ego-Boosting (most long-term oriented) and African and Latin American countries most altruistic (short-term oriented).