Yes, that statement is correct. Authors often use dialogue and imagery as specific techniques to establish the cultural setting of a story.
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Dialogue can reveal characters' backgrounds, values, and social norms, providing insight into the culture they belong to. The way characters speak, their choice of words, and the topics they discuss can all reflect cultural elements.
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Imagery involves the use of descriptive language that appeals to the senses, helping to create a vivid picture of the setting. Through detailed descriptions of landscapes, architecture, clothing, and everyday activities, authors can immerse readers in the cultural environment of the story.
Together, these techniques help to create a rich, believable world that reflects the culture being portrayed.