THE IMPACT OF CROSS CULTURE ON CONSUMER CONSUMPTION BEHAVIOR:
A STUDY OF SELECTED DISTRICTS OF MAHARASHTRA
THESIS SUBMITTED TO THE PADMASHREE DR.D.Y.PATIL UNIVERSITY’S DEPARTMENT OF BUSINESS MANAGEMENT IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF DOCTOR OF PHILOSOPHY In BUSINESS MANAGEMENT
SUBMITTED BY: Ms.GAGANDEEP KAUR NAGRA Enrollment No: (DYP-PhD-076100018)
RESEARCH GUIDE Dr. PRADIP MANJREKAR DEAN & PROFESSOR PADMASHREE DR. D.Y. PATIL UNIVERSITY, DEPARTMENT OF BUSINESS MANAGEMENT, Sector 4, Plot No. 10, CBD Belapur, Navi Mumbai – 400 614
JANUARY 2012
THE IMPACT OF CROSS CULTURE
ON
CONSUMER CONSUMPTION BEHAVIOR:
A STUDY OF SELECTED DISTRICTS OF MAHARASHTRA
DECLARATION
I hereby declare that the thesis entitled “THE IMPACT OF CROSS CULTURE ON
CONSUMER CONSUMPTION BEHAVIOR: A STUDY OF SELECTED DISTRICTS OF
MAHARASHTRA” submitted for the Award of Doctor of Philosophy in Business Management at the Padmashree Dr. D.Y. Patil University Department of Business Management is my original work and the thesis has not formed the basis for the award of any degree, associate ship, fellowship or any other similar titles.
Place: Navi Mumbai
Date:
Ms.Gagandeep Kaur Nagra
(PhD Scholar)
CERTIFICATE
This is to certify that the thesis entitled “THE IMPACT OF CROSS CULTURE ON
CONSUMER CONSUMPTION BEHAVIOR: A STUDY OF SELECTED DISTRICTS OF
MAHARASHTRA” and submitted by Ms.Gagandeep Kaur Nagra is a bonafide research work for the award of the Doctor of Philosophy in Business Management at the Padmashree Dr. D. Y.
Patil University Department of Business Management in partial fulfillment of the requirements for the award of the Degree of Doctor of Philosophy in Business Management and that the thesis has not formed the basis for the award previously of any degree, diploma, associate ship, fellowship or any other similar title of any University or Institution.
Certified that the thesis represents an independent work on the part of the candidate.
Place: Navi Mumbai Prof.Dr.R.Gopal Prof.Dr.Pradip Manjrekar Date: (Director & (Dean & PhD Research Guide) Head of the department)
ACKNOWLEDGEMENT
In the first place, I am indebted to the Padmashree Dr. D.Y. Patil University Department of
Business Management, which has accepted me for Doctorate program and provided me with an excellent opportunity to carry out the present research project.
I would like to thank Prof.Dr. Pradip Manjrekar, Dean and my research guide and to Prof.Dr.
R.Gopal, Director and Head of Department of Business Management, Padmashree Dr.D.Y. Patil
University, Navi Mumbai for having given me their valuable guidance for the project. Without their help it would have been impossible for me to complete the project.
I thank my husband Capt.Rajinder Singh my daughter Ms.Kamal & son Hargun for their patience
& support while I was busy in completing the project work .
Place: Mumbai Gagandeep Kaur Nagra
Date: (Signature of the PhD Scholar)
CONTENTS
CHAPTER TITLE PAGE
NO. NO.
List of Tables
List of Figures
List of Abbreviations
CHAPTER 1 INTRODUCTION
1.1 The Culture 1
1.1.1 Culture and Marketer‟s Decision Making 3
1.2 Culture and Consumer Behavior 4
1.3 Cross Cultural differences 5 1.4 Cross Culture and Consumer Behavior 7 1.5 Impact of Cross Culture on Consumption with special 9 reference to studies using Hofstede‟s dimensions 1.6 Culture and Cross Culture Consumer Behavior Models 15 Sheth and Sethi‟s Model A-B-C-D Model Manrai and ManraiModel Luna and Gupta Model CHAPTER 2: LITERATURE REVIEW: 2.1 What is culture? In search for the Conceptual Core of Culture 23 2.2 Cultural Levels 25 2.3 National Culture 25 2.4 National Cross Cultural levels 26
2.5 Operationalizing Cross Culture 27 2.6 Introduction to Cross Culture Consumer Behavior 32-46 Main Authors and their contribution ideas in Cross Culture Consumer Behavior and Consumption Pattern International Studies of Cross Culture Needs for development in cross cultural research Relational cultural understanding - a way to develop cross cultural research 2.7 Hofstede‟s Cross Culture Dimensions 47
2.8 Hofstede‟s Cultural Dimensions And Its Impact On Consumer 61-77 Consumption Behavior Individualism-Collectivism and Its Impact on Consumer Consumption Behaviors Uncertainty Avoidance and Its Impact on Consumer Consumption Behaviors Masculinity Versus Femininity and Impact on Consumer Consumption Behaviors Power Distance and Its Impact on Consumer Consumption Behaviors 2.9 Comparison of Hofstede's Cross Cultural framework with 78 other models 2.10 Significance Of Hofstede's Cross Cultural Dimensions in 80 Cross Culture Consumer Behavior Studies
2.11 Operationalizing Cross Culture using Hofstede's Cross 82 Culture dimensions CHAPTER 3 CROSS-CULTURAL CONSUMER CONSUMPTION BEHAVIOR 3.1 An integrative framework for cross-cultural consumer 85 behavior 3.2 Cross Culture and consumer behavior 86 Emic and Etic approaches 3.3 The interaction of culture and consumer behavior 87 3.4 A framework and review of cross-cultural consumer behavior 94 3.5 Impact of Cultural Value System on Consumer Behavior 98-105 The Effect of Values on Consumer Behavior The Effect of symbols on Consumer Behavior The effect of rituals on Consumer Behavior 3.6 Dimensions of Indian culture 106-118 Cultural & Value dimensions of Indian Society: Analysis and Marketing Implications 3.7 3.7 The Impact of Globalization on Culture and Consumer 119 CHAPTER 4 ETHNOCONSUMERISM: A NEW PARADIGM TO STUDY IMPACT OF CULTURE AND CROSS CULTURE ON CONSUMER CONSUMPTION BEHAVIOR 4.1 What Is Ethnoconsumerism? 126 4.2 Consumerism as a Cultural Phenomenon 128 4.3 Consumerism As A Global Cultural Phenomenon 133 130 4.4 Ethnicity, Nature, and Scope 132-139 Ethnicity And Its Impact On Consumer Consumption Behavior 4.5 Principles of Generalization in Cross-Cultural Consumer 139 Behavior 4.6 Cross-Cultural And Consumer Behavior 142 4.7 Why Ethnoconsumerism? 144 CHAPTER 5 THE CHANGING DYNAMIC OF CONSUMER BEHAVIOR: IMPACT OF CROSS-CULTURE ON CONSUMER CONSUMPTION BEHAVIOR 5.1 Key Constructs And Dimensions Of Culture 152 5.2 Emerging Cross Cultural Dimensions 155
5.3 Cross Culture and its Impact on Self-Regulatory Goals 160 5.4 Cross Culture, Risk Taking, And Impulsivity 165 5.5 Cross Culture And Its Impact On Persuasive Appeals 170 5.6 Cross Cultural Differences in the Content of Message 170 Appeals 5.7 Cross Cultural Differences in Judgment and Persuasion 173 5.8 Cross Cultural Differences in Brand Representations 175 5.9 Brands As Symbols Of Self And Of Cross Culture 176 CHAPTER6 ISSUES EMERGING FROM GLOBALIZATION, FRAGMENTATION AND ITS IMPACT ON CROSS- CULTURAL CONSUMER CONSUMPTION BEHAVIOR. 6.1 Globalization And Fragmentation 180 6.2 Globalization, Fragmentation, And Research Imperatives 185 6.3 Paradigm Plurality And Integration 203 6.4 Micro-Macro Linking 205 CHAPTER 7 A POSTMODERN APPROACH TO CONSUMPTION PATTERN 7.1 Introduction 209 7.2 The Postmodern Consumer 210 7.3 Postmodern Conditions 212 7.4 Consumption and „Postmodern‟ Consumer Society 215 CHAPTER 8 CROSS CULTURE CONSUMER BEHAVIOR MARKETING RESEARCH 8.1 Introduction 219 8.2 Cross Culture Consumer Behavior Marketing Research 219 Epistemological Issues Methodological Issues Emic versus Etic approaches RESEARCH GAP 228 CHAPTER 9 OBJECTIVES OF THE STUDY 9.1 Problem Definition 229 9.2 Research objectives 230 9.3 Hypothesis 232 CHAPTER 10 RESEARCH METHODOLOGY 10.1 Understanding the issue 235 10.2 Conceptual model of this study 236 10.3 Survey Methods 238 Descriptive Methods Field Survey 10.4 Data Acquisition stage 242 10.5 Data Analysis stage 243 10.6 Selection of Samples 244 Locale of Research and sample size Sampling Design Sample size Justification 10.7 Tabulation and Statistical Analysis of Data. 246 10.8 Limitations of Study 246 CHAPTER 11 DATAINTERPRETATIONAND FINDINGS Data Interpretation 247-413 Summarisation of Findings 414 CHAPTER 12 MAJOR FINDINGS AND CONCLUSIONS 425 CHAPTER 13 Recommendations 431 Reference Section. Annex. I - Bibliography . Annex. II – Questionnaire.
List of figures
Figure Page Figure Title no. no.
16 1.6.1 Sheth And Sethis Model
1.6.2 18 Raju's A-B-C-D paradigm
1.6.3 Manrai and Manrai's framework of Cross-Cultural Consumer 20
Luna and Gupta's Model of interaction of culture and 1.6.4 consumer behavior
Comparison of Hofstede's cross cultural framework with other 2.9.1 84 models Impact of Hofstede's dimensions in international marketing and 2.10.1 86 consumer behavio 3.4 A Framework And Review Of Cross-Cultural Consumer Behavior 99
3.7.1 The Impact of Globalization on Culture and Community 33
3.8.1 Culture–value integration roadmap in India 35
4.3.1 Relationship Between Culture and Economy 134
List of Tables
Table no Title of the table Page.
No
11.1(a) Sample size for Age North Maharashtra 247
11.1(b) Sample size for Education North Maharashtra 248
11.1(c) Sample size for Job profile North Maharashtra 249
11.2 (a) Sample size for Age West Maharashtra 250
11.2 (b) Sample size for Education West Maharashtra 251
11.2 (c) Sample size for Job profile West Maharashtra 252
11.3(a) Sample size for Age Marathwada 253
11.3(a) Sample size for Education Marathwada 254
11.3(a) Sample size for Job profile Marathwada 254
11.4(a) Sample size for Age Vidarbha 255
11.4(a) Sample size for Education Vidarbha 256
11.4(a) Sample size for Job profile Vidarbha 257
11.5(a) Sample size for Age Kokan 258
11.5(a) Sample size for Education Kokan 259
11.5(a) Sample size for Job profile Kokan 260
10.6(a) Sample size for Age Nagpur 261
10.6(a) Sample size for Education Nagpur 262
10.6(c) Sample size for Job profile Nagpur 263
11.7 Details of Demographics 264 11.8 Classification of consumers with regard to consumption of 265
selected commodities under study for Six regions
10.9(a) Frequency Table of number of consumers in each 290
category for six indexes in Konkan
11.9(b) Frequency Table of number of consumers in each 291
category for six indexes Vidarbha
11.9(c) Frequency Table of number of consumers in each 292
category for six indexes Nagpur
11.9(d) Frequency Table of number of consumers in each 293 category for six indexes North Maharashtra 11.9(e) Frequency Table of number of consumers in each 294 category for six indexes West Maharashtra
11.9(f) Frequency Table of number of consumers in each 295
category for six indexes Marathwada
11.10.1(a&b) Power Distance Index Values for six regions 298
11.10.2 (a& b) Individualism Index Values for six regions 301
11.10.3 (a& b) Masculinity Index Values for six regions 308
11.10.4 (a& b) Uncertainty Avoidance Index Values for six regions 309
11.10.5 (a& b) Long-term Orientation Index Values for six regions 313
11.10.6 (a& b) Indulgence versus Restraint Index Values for six regions 317
11.10.7 Monumentalism versus Self-Effacement Values for Six 321 regions 11.11 The comparative scores on the seven cultural dimensions 326
of the six regions in the state of Maharashtra 11.12 Correlation between the different indexes 329
11.13.1 Chi-square (Impact Of Culture Indices Liquor 332
Consumption)
11.13(a) Descriptive Statistics UAI and Liquor 332
11.13(b) ANOVA (IVR AND LIQUOR) 333
11.13(c) ANOVA (UAI AND LIQUOR) 333
11.13(d) Descriptive Statistics IVR and Liquor 334
11.13.2 Chi-square (Impact Of Culture Indices Frozen Food 334
Consumption)
11.13 (a) Descriptive Statistics MAS and frozen foods 334
11.13 (b) ANOVA ( MAS AND Frozen foods) 334
11.13.3 Chi-Square (Impact Of Culture Indices Fast Food 335
Consumption )
11.13 (a) Descriptive Statistics UAI AND Fast foods 336
11.13 (b) ANOVA for UAI and Fastfoods 336
11.13.4 Chi-Square (Impact Of Culture Indices Consumption Of 337
Type Of Clothes)
11.13.4(a) 338 Descriptive Statistics UAI AND CLOTHES 11.13.4(b) ANOVA for UAI AND CLOTHES 338
11.13.5 Chi-Square test (Association Investment And Culture 339
Indices)
11.14 VIDARBHA 11.14.1 Chi-Square test ( Association Liquor Consumption And 340 Culture Indices ) 11.14.2 Chi-Square test (Association Frozen Food Consumption 340 And Culture Indices)
11.14.2 (a) Descriptive Statistics IVR And Frozen Foods 341
11.14.2 (b) ANOVA For IVR And Frozen Foods 341
11.14.3 Chi-Square test (Association Fast Food Consumption And 342 Culture Indices) 11.14.3 (a) Descriptive Statistics IDV and Fastfoods 343
11.14.3(b) ANOVA for IDV and Fastfoods 343
11.14.4 Chi-Square test (Association Clothes And Culture Indices) 344
11.14.4 (a) Descriptive Statistics IVR and Clothes 345
11.14.4 (b) ANOVA for IVR and Clothes 345
11.15 KONKAN
11.15.1 Chi-Square test (Association Liquor Consumption And 347
Culture Indices)
11.15.1 (a) Descriptive Statistics 347
11.15.1 (b) ANOVA for IVR and LIQUOR 348
11.15.2 Chi-Square test (Association Frozen Food Consumption 348
And Culture Indices)
11.15.3 Chi-Square test (Association Fast Food Consumption And 349
Culture Indices)
11.15.3 (a) Descriptive Statistics 349 11.15.3 (a) ANOVA for MAS Fast foods 349
11.15.4 Chi-square test (Association Clothes And Culture Indices) 350
11.15.5 Chi-Square test (Association Investment And Culture 351
Indices)
11.16 MARATHWADA
11.16.1 Chi-Square test (Association Liquor Consumption And 353
Culture Indices )
11.16.1 (a) Descriptive Statistics 352
11.16.1 (b) ANOVA for IVR and LIQUOR 353
11.16.2 Chi-Square test (association frozen food consumption and 353
culture indices)
11.16.2 (a) Descriptive Statistics 354
11.16.2 (b) ANOVA for PDI and Frozen Foods 355
11.16.3 Chi-Square test (Association Fast Food Consumption And 355
Culture Indices)
11.16.3 (a) ANOVA for PDI Fast Food 355
11.16.4 Chi-Square test (Association Clothes And Culture Indices) 356
11.16.5 Chi-Square test (Association Investment And Culture 357 Indices) 11.17 NORTH MAHARASHTRA
11.17.1 Chi-Square test (Association Liquor Consumption And 360
Culture Indices )
11.17.2 Chi-Square test (Association Frozen Food Consumption 361 And Culture Indices)
11.17.3 Chi-Square test association fast food consumption and 362 culture indices 11.17.4 Chi-Square test association clothes & culture 363
11.17.4 (a) Descriptive Statistics 364
11.17.4 (b) ANOVA for LTO AND INVESTMENT 364
11.18 Analysis for WEST MAHARASHTRA
11.18.1 Chi-square test association in LIQUOR consumption and 366 culture indices
11.18.2 Chi-Square test association frozen food consumption and 367
culture indices
11.18.3 Chi-Square test association frozen food consumption and 368
culture indices
11.18.3 (a) Descriptive Statistics 368
11.18.3 (b) ANOVA for LTO AND FROZENFOODS 368
11.18.4 Chi-Square test association fast food consumption and 369 culture indices 11.18.4 (a) Descriptive Statistics 369
11.18.4 (b) ANOVA for MAS and FASTFOODS 369
11.18.4 (c) Descriptive Statistics 370
11.18.4 (d) ANOVA for LTO 370
11.18.5 Chi-Square test is used to test association clothes and 371
culture indices
11.18.5 (a) Descriptive Statistics 372 11.18.5 (b) ANOVA for IDV 372
11.18.6 Chi-Square test association investment and culture indices 373
11.19 ASSOCIATION BETWEEN AGE AND CONSUMPTION FACTORS 11.19.1 Chi-square test (association between AGE and 376 Consumption factors )in NORTH MAHARASHTRA 11.19.2 Chi-square test (association between AGE and 377
Consumption factors ) in NAGPUR
11.19.3 Chi-square test association between AGE and 378 Consumption factors) in VIDARBHA 11.19.4 Chi-square (test association between AGE and 379
Consumption factors ) in KONKAN
11.19.5 Chi-square test (association between AGE and 380
Consumption factors) in MARATHWADA
Chi-square (test association between AGE and 381
11.19.6 Consumption factors) in WEST MAHARASHTRA
11.20 ASSOCIATION BETWEEN EDUCATION AND
CONSUMPTION FACTORS
11.20.1 Chi-square test association between EDUCATION and 383
Consumption factors: MARATHWADA
11.20.2 Chi-square test (association between EDUCATION and 384
Consumption factors) in NORTH MAHARASHTRA
11.20.3 Chi-square test (association between EDUCATION and 385
Consumption factors) in WEST MAHARASHTRA 11.20.4 Chi-square test is used to test association between 386
EDUCATION and Consumption factorsin NAGPUR
Chi-square test (association between EDUCATION and 387 Consumption factors) in VIDARBHA 11.20.5
11.20.6 Chi-square test (association between EDUCATION and 388
Consumption factors) in KONKAN
11.21 ASSOCIATION BETWEEN JOB PROFILE AND
CONSUMPTION FACTORS
11.21.1 Chi-square test (association between JOB PROFILE and 390 Consumption factors) in MARATHWADA 11.21.2 Chi-square test (association between JOB PROFILE and 391 Consumption factors) in NORTH MAHARASHTRA 11.21.3 Chi-square test (association between JOB PROFILE and 392 Consumption factors) in WEST MAHARASHTRA
11.21.4 Chi-square test (association between JOB PROFILE and 393
Consumption factors ) in NAGPUR
Chi-square test (association between JOB PROFILE and 394
11.21.5 Consumption factors ) in VIDARBHA
11.21.6 Chi-square (association between JOB PROFILE and 395
Consumption factors) in KONKAN
11.22.1 Results of T-test for Regions and Fast foods Consumption 397 & Post Hoc Tests Bonferroni
11.22.2 Results of T-test for Regions and Liquor Consumption & 402 Post Hoc Tests Bonferroni 11.22.3 Results of T-test for Regions and Frozen foods 407 Consumption & Post Hoc Tests Bonferroni
List of abbreviations
Abbreviation Full form
PDI Power Distance Index
UAI Uncertainty Avoidance Index
IDV Individualism and Collectivism Index
MAS Masculinity and Faminity Index
LTO Long –Versus Short –Term Orientation
IVR Indulgence versus Restraint
MON Monumentalism versus Self Effacement
CHAPTER 1 INTRODUCTION 1.1 The Culture
The word ‗Culture‘ is often used loosely in everyday language to describe a number of quite distinct concepts; for example ,the world is often used to describe concepts such as ‗Organisational culture ‗as well as ‗art and culture‘. Historically the word derives from the latin word ‗colere‘,which could be translated as to build‘,to care for ,‘to plant‘or ‗to cultivate‘.Today, definitions Culture is complex and multidimensional. It is in fact too complex to define in simple terms. Kroeber and Kluckhohn (1952) identified over 160 different definitions of culture. One of the earliest widely cited definitions by Tylor (1887) defines culture as ―that complex whole which includes knowledge, belief, art, morals, law, custom, and any other capabilities and habits acquired by man as a member of society.‖ In this century, culture has been defined by different authors as follows: ·all the historically created designs for living, explicit and implicit, rational, irrational, and nonrational, which exist at any given time as potential guides for the behaviour of men (Kluckhohn and Kelly, 1945);
The man made part of the environment (Herskovits, 1955);
The integrated sum total of learned behavioural traits that are shared by members of a society (Hoebel, 1960);
A mental map which guides us in our relations to our surroundings and to other people (Downs, 1971).
More recently, Hofstede (1980) defines culture as ―… the interactive aggregate of common characteristics that influence a group‘s response to its environment‖. He (1984) redefines culture as the
1 collective programming of the mind which distinguishes one group of people from another. The world culture apparently originates with the Latin cultura, which is related to cultus, which can be translated as ―cult‖ or ―worship‖. This meaning is helpful in understanding the use of the term. Members of a cult believe in specific ways of doing things, and thus develop a culture that enshrines those beliefs. A definition by Terpstra and David (1985) serves to delineate what is meant by culture in this context: Culture is learned, shared, compelling, interrelated set of symbols whose meaning provides a set of orientations for members of a society. These orientations, taken together, provide solutions to problems that all societies must solve if it is to remain viable.
To sum up the above definitions, culture can be described as the collection of values, beliefs, behaviours, customs, and attitudes that distinguish a society. A society‘s culture provides its members with solutions to problems of external adaptation and internal integration.
Culture can be studied at different levels International (e.g. East v West) National culture (e. g. Chinese culture, Indian culture) Regional culture, subculture Business culture (industry or professional culture) Organizational (corporate) culture
1.1.1 Culture and Marketers‘ Ethical Decision-Making
Culture is one of the most important determinants of business in today‘s world, and is also is a primary determinant of ethical decision-making. The culture affects how a person perceives the ethical problems, alternatives, and consequences. ―Culture influences ethical decision-making basically in two ways: directly and indirectly by interacting with other variables‖ (Christie
2
Won, Stoeberl and Baumhart, 2003,). Bartels (1967) was the first to distinguish the importance of the function of culture in ethical decision making in marketing. He notes that, contrasting cultures of different societies produce different expectations, and become expressed in the dissimilar ethical standards of those societies. According to his model, cultural factors such as law, respect for individuality, nature of power and authority, rights of property, concept of deity, relation of the individual to the state, national identity and loyalty, values, customs, and state of the arts, are the most basic determinants of ethical standards of a society.
A fundamental premise to study the role of culture as a determinant of marketer‘s decision-making is an understanding of the process of decision- making itself and its diverse determinants. Such an understanding might be attained through a review of theoretical models of decision-making in marketing (Srnka, 2004).
Culture as subject of study was closely associated with anthropology and sociology for about last one and half century but in recent decades it has gained importance in disciplines like management (Ganesh 2005). Despite the problems in defining, conceptualizing and operationalizing culture, it has been increasingly acknowledged as important for organizations (Groeschl and Doherty 2000). Each culture has its own norms, customs and expectations for behavior, so any manager who ignores culture puts his organization at a great disadvantage (Bateman and Snell 2003). The cultural variable is accorded an important place in international marketing, despite the difficulties in isolating its various elements (Usunier 2000). Marketing has contributed significantly to the improvement of the society (Wilkie and Moore1999).The Philosophy of this contributor is seeing the ―products and services through the eyes of the customer (Lilien, Kotler and Moorthy 1991). To see through the eyes of the consumer it is imperative to understand the
3 consumer behavior and the factors like culture, social, personal and psychological factors which influence this behavior.
Culture is the ―fundamental determinant‖ of the individuals‘ wants and behavior (Kotler et al.2007). Culture is a lens through which the individuals perceive the world and it is viewed as behavior (Kumar 2004). It is one of the limitations in consumer research (Green and White 1976) and influences every aspect of marketing (Jain 1989). The consumer behavior patterns are quite different across cultures (Ward, Klees and Robertson 1987
As globalization occurs and Multinationals vie for foreign market opportunities, the need and importance of cross cultural consumer behavior has risen. Globalization of markets has provided the markets an opportunity to tap the cross national markets. The understanding of consumer behavior in international marketing becomes important as it ―involves introducing new products or ideas into different cultures (Sheth and Sethi1977). Therefore, international marketers must understand the cross cultural differences to develop effective marketing strategies for the target foreign markets as all markets are not identical (Loudon and Bitta 2002 Perreault and McCarty 2002; Schiffman and Kanuk 2004). Culture is a potent hindrance in the geographical expansion of firms‘ activities (Salciuviene, Auruskeviciens and Lydeka 2005).
Research conducted across two cultures or nations‘ representing different cultures is known as cross cultural research. Cross-cultural research have clear implications for consumer behavior (Tan, McCullough and Teoh 1987 p.395).There is an increasing trend for globalization of businesses which―provides a compelling reason for understanding the cultural context of consumer behavior‖ (Maheswaran and Shavitt 2000).
4
In light of globalization the marketers have to face considerable problems and it becomes imperative for consumer behavior researchers to unravel how cultural differences and values affect consumer behavior (Klein and Gurhan 1998). In recent years the cross-cultural marketing has gained great importance in academics and business (Malhotra, Agarwal and Peterson 1995 p.7) and there is growing interest in cross cultural consumer behavior (Venkatesh 1995).
1.2 Culture and Consumer Behavior
As a field of academic practice, consumer behavior has emerged nearly sixty years ago (Hogg 2005 p. xxiv). It is ―the study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires‖ (Solomon 2003).
Consumer behavior focuses on how consumers decide what to buy, why to buy, when to buy, where to buy and how often they buy, how frequently they use it, ―how they evaluate it after the purchase and the impact of such evaluations on future purchases, and how they dispose of it‖ (Schiffman and Kanuk 2004). Consumer behavior plays a significant effect on decisions which help in achieving the organizational objectives and further consumers influence the economic social conditions within a society (Loudon and Bitta 2002). There are various factors social and economic factors which influence the consumer behavior but culture is the ―fundamental determinant‖ of consumer behavior (Kotler 2003).
1.3 Cross Cultural Differences
Understanding culture is not the only thing required a clever marketer must be conversant with the variations that exist from market to market. This is why cross cultural studies have been on an increase and have explored
5 cross cultural dimensions, created frameworks as well as developed models to understand cross cultural differences. Singh (2007) refers to cross cultural research as being the study done across two nations or two cultures. The value of cross cultural research has been amply demonstrated in studies (Tan, McCullough and Teoh ,1987 ; Klein and Gurhan 1998 ; Malhotra, Agarwal and Peterson ,1995 ).
The growing body of research in the field of cross cultural differences has yielded data applicable to almost all facets of consumer behavior ( Raju 1995; Roth 1995;Applbaum and Jordt 1996; Nakata and Sivakumar 1996; Aaker and Williams 1998; Keillor and Hult 1999; Steenkamp, Hofstede and Wedel 1999; Naumov and Puffer, 2000; Luna and Gupta 2001;Steenkamp 2001; Luna, Peracchio and Juan 2002; de Mooij and Hofstede 2002; Kau and Jung 2004; de Mooij 2004; Okazaki 2004; Ogden, Ogden and Schau 2004;Malhotra et al. 2005; Salciuviene, Auruskeviciene and Lydeka 2005).
The areas covered in cross cultural research include a host of topics, from consumer involvement (Edgett and Cullen ,1993) to consumer innovativeness (Steenkamp, Hofstede and Wedel ,1999 ), from consumer decision making styles (Lysonski, Durvasula and Zotos, 1996) to perception, motivation, learning and memory, age, self-concept, group influence, social class, sex roles, attitude change, decision making, purchase and post-purchase behavior (Usunier 2000). Studies have also focused on impulsive buying behavior (Kacen 2002), prices and shopping behavior(Ackerman and Tellis 2001) , consumer patience (Chen, NG and Rao 2005). and brand loyalty (Lam and Lee 2005) as well as price perceptions (Sternquist, Byun and Jin 2004).
The study of cross cultural differences is further complicated by the fact that there has always been a debate whether culture as a concept is unique and non-comparable or that in cross cultural studies some aspects can be
6 compared ( Hofstede, 2001). No matter what different researchers may have to say regarding culture, research has proved beyond doubt that success of a commercial venture lies in accommodating cultural aspects rather than ignoring them
1.4 Cross Culture and Consumer Behavior
In international marketing understanding the cross-cultural differences is imperative for developing effective marketing strategies for the diverse foreign markets with a variety of cultures (Loudon and Bitta 2002 ; Perreault and McCarty 2002 ; Schiffman and Kanuk 2004 ). Consumer behavior is the central aspect of human behavior. Consumer behavior includes not only purchasing products but also consuming products and leisure activities; not only fulfilling daily needs but also realization of long term life values. Thus consumer behavior can be regarded as a utility and value producing activities (Kojima and Baba 2001).
The research on cross cultural consumer behavior has recently gained some importance and the interest generated in this field is an important beginning in this area (Venkatesh 1995).
There are basically two approaches in international marketing (Sheth and Sethi 1977): one approach considers that basic needs and behavior are universal everywhere and so the same products can be sold similarly in every market while the second approach considers that every country has its own unique set of problems and culture. This group contends that universal marketing theory is inapplicable in different regions and so there should be unique marketing decisions specific for each culture.
The proponents of first thought argue that the globalization of markets is causing the convergence of customers‘ needs and so cross cultural differences will have minimal effect on the consumer behavior, thus calling 7 for standardization of products and other marketing mix elements (Levit 1983). The concept of this approach is based on the theory of learning on human behavior but doesn‘t take into account culture which can affect behavior (Sheth and Sethi 1977 ). The proponents of the second thought argue that culture has significant effect on the behavior of individuals (Henry 1976; Applbaum and Jordt 1996; Steenkamp, Hofstede and Wedel 1999; Usunier 2000; Mesdag 2000; Luna and Gupta 2001; Steenkamp 2001; Kau and Jung 2004; Ogden, Ogden and Schau 2004). Henry (1976) provides evidence that culture is an underlying determinant of consumer behavior.
Culture has ―profound implications on the psyche of the consumers‖ (Kumar 2007) and adaptation to cultural values leads to marketing effectiveness (Moiij and Hofstede 2002). Steenkamp, Hofstede and Wedel (1999) recognize the effect of culture on consumer innovativeness. Usunier (2000) lists the selected aspects of consumer behavior on which the culture may have possible impact: perception, motivation, learning and memory, age, self concept, group influence, social class, sex roles, attitude change, decision making, purchase and post-purchase behavior. Luna and Gupta (2001) recognize the effect of cultural values on the consumer behavior. Denis (2006) analyses the impact of culture on marketing mix decisions. Lysonski, Durvasula and Zotos (1996) recognize the effect of culture on consumer decision-making styles.
Edgett and Cullen (1993) opine that culture affects the various levels of consumer involvement in decision making. Lam and Lee (2005) suggest that brand loyalty might be influenced by cultural values. Chen, NG and Rao (2005) examine the cultural effect on the consumer patience and view Western cultures are less patient as compared to Easterners. Aaker and Williams (1998) examine the persuasive effect emotional appeal across cultures. It was found that appeals relying on ―other-focused emotions‖ (e.g. empathy, peacefulness) lead to more favorable attitudes in individualistic
8 cultures while appeals relying on ―egofocused emotions‖ (pride, happiness) lead to more favorable attitudes in collectivistic cultures.
Aaker (2000) identifies the cross cultural effects on the persuasion appeals and finds that cultural differences in consumer preferences exist. Briley and Wyer (2002) posit that calling individuals‘ attention to their cultural identity may induce feelings of group membership in the same way as it would have by actually participation in a group, which would have analogous effects on decisions in both group and consumption situations. Briley, Morris and Simonson (2000) provide insights into the role of reasons in decision making and contend that knowledge and differences are activated when the individuals are asked to give reasons for their decision or purchase decision.
1.5 Impact of Cross-Culture on Consumption with special reference to studies using Hofsted‘s Dimensions.
Studying cross-cultural differences stems from the idea that countries differ in the relationship between an individual and a wider community. In a widely accepted taxonomy developed by Hofstede (1980), culture could be described by four dimensions (individualistic/collectivistic, power distance, uncertainty avoidance, and masculinity). In Fernandez, Carlson, Stepina, and Nicholson‘s (1997) study, it reexamined the country classifications done by Hofstede 25 years ago. The revised classification included China, which was not in Hofstede‘s (1980) original study.
Fenandez et al. (1997) declared that China was a collectivistic society with large power distance (unequal power distribution in the society), strong uncertainty avoidance (unwillingness to take risks), and high in masculinity (sharp differentiation on sex roles in terms of position of power in organizations and families, and the singular, distinct values associated with individual achievements).
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The study focused on , using Hofstede‘s conceptualization of culture, on the dimension of individualism vs. collectivism. A discussion on the differences between individualistic and collectivistic cultures will be put forth and related to Canadian and Chinese cultures and their consumer behaviours respectively (Hofstede, 1980; Mead, 1998). Also, how consumers perceive luck/fate in consumption will be addressed.
According to Hofstede‘s (1980) model, individualism emphasizes individual achievements and rights. People are expected to focus on satisfying their own needs. Individual decisions are placed over group decisions. Individualistic people have the right to have different opinions and thoughts compared with those of the majority.It encourages to be self-reliant, self- interested and independent. On the other hand, in a collectivistic culture, altruism is restricted to in-group members in their society. Group loyalty is valued at a high premium. Collectivistic people tend to integrate into strong and cohesive in-groups.
It encourages to priorize the importance to collective goals and emphasized sharing duties and obligations. Based on Hofstede‘s (1980, 1994, 1997) studies, Canadians are highly individualistic in their social values while Chinese are more collectivistic. In western societies, the implicit philosophy of individualism focuses on individuals and their own efforts. It tends to value idiocentric characteristics that are associated with a person‘s distinct qualities (Hofstede, 1994; Zhang and Neelankavil, 1997). People are encouraged to be independent and to take personal responsibility. Moreover, people from individualistic cultures focus on their personal goals and perceive individuals as the principle unit of social structure. It emphasize ―I‖ consciousness and the idea of an independent and self-reliant person (Hofstede, 1980; Zhang and Neelankavil, 1997). Leung and Bond (1984) found that American students focused on their own self-gain whereas
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Chinese students tended to sacrifice their self-gain to benefit in-group members in allocating a group reward.
The traditional cultures of Asian nations such as China, Japan, and South Korea are heavily influenced by Confucianism. This moral ideology is based on a solid social hierarchy that promotes family and social loyalty over individualism called ―Five Bonds‖ (ruler-subject, father-son, elder brother- younger brother, husband-wife, and friend-friend) (Hwang 2000).
Four of the ―Five Bonds‖ (except friend-friend) are promoted to define a hierarchical system towards powerful others. As ―Five Bonds‖ have produced a stable government and dominated the culture in China for thousands of years, it is expected that the belief of powerful others is deeply rooted in Chinese communities. Indeed, Chinese people tend to believe and rely on powerful others in their daily lives.
Collectivism stresses harmony and connection with others. Bringing honour to the group is more strongly related to self-esteem than personal achievement and self-assertion (Markus and Kitayama, 1994). Collectivistic culture attends to the needs, desires and connections of all in-groups members, who are sharing a common fate. On the other hand, Confucianism does not treat individuals as separate entities. Instead, it is related with another in a reciprocal manner (Dien, 1999). People see themselves as parts of a larger self, the in-group (Chia, Cheng, and Chuang, 1998). As Confucianism focuses on the interdependence between self and others, Chinese believe that individualism is a selfish behaviour, which is to be overcome to attain human benevolence (i.e. Ren) (Hwang, 1999, 2000). In general, it could be concluded that Confucianism has contributed in the development of the collectivistic societies in Asia, especially in China. Moreover, in collectivistic cultures, individuals‘ misbehaviour and failure are
11 not only disgraceful for oneself, but also the family or even the entire extended family (Hui and Triandis, 1986).
One of the main characteristics in collectivism is the belief in the correspondence of a person‘s own outcome with the outcomes of others. People tend to attribute their success and failure to luck, fate or other people in the same ethnic group because of the ideologies of collectivism and Confucianism. However, Canadians believe that Canadians have the control in their daily lives. Canadians are responsible for all their decisions and actions. Canadians tend to make their own decisions with minimal opinions from others. Therefore, it could be concluded that Chinese weigh luck as a part of their success and failure more so than Canadians.
As the Western (Canadian) culture focuses on ―I‖ consciousness and competitive behaviours and the Chinese culture emphasize harmony and balance, Chinese consumers are reluctant to pioneer. Chinese are slower to accept new products and services than their Canadian counterparts because of their cultural values of prudence and risk-aversion (Wang, Chan, and Chen, 2001). At the stage of information search for purchases, Chinese have relied more on past experiences of their own or others (distributional information) to make decisions than Americans because Chinese culture shows a high respect for the past and their history (Moore, 1998).
In Chinese societies, hard-work and thrift are highly praised traditional virtues (Hwang, 1999, 2000). It would be shameful for Chinese not to try hard to gather information for evaluating alternatives before making purchase decisions and then suffer from paying more for a product than necessary. Therefore, Chinese consumers are very price-conscious and price is one of the main reasons to comparison shop before purchasing (Dodds, 1991). Chinese consumers with a collectivistic background, who view individuals are inherently connected, emphasize more on group 12 affiliations (brand name, manufacturer, country of origin) of the products during their purchase decision (Hong and Yi, 1992; Tai, 1998; Wong and Ahuvia, 1998). Reputable brands and well-known companies are not only assurances of good quality, but also earn ―face‖ for Chinese consumers. On the other hand, Canadian consumers, who have an individualistic background and view individuals as separate entities, focus more on product attributes (product functions and features) and less on the brands in their purchasing behaviour (Hong and Yi, 1992; Wong and Ahuvia, 1998).
Confucian influence on the Chinese consumption choice could be evident in their high motivation to comply (Hwang, 1999, 2000). Yao (1988) found that Chinese consumers would not deviate if their family or in-group members had established a product as the normative standard.
Confucian doctrine of the ―Mean‖ helped Chinese in guiding their choice in a conflict decision. It advised individuals to avoid extremes and keep to the ordinary in order to maintain balance all of the time (Hwang, 1999, 2000). Because of the cultural background of respecting authority and the seniors, Chinese consumers tend to rely more on word-of-mouth communication from in-group members for product information. In the contrast, Canadian consumers are more likely to ―obey‖ their own opinions and tastes and not as likely to conform to social pressure relative to Chinese consumers (Kashima et al., 1995). Canadian believe in their own control in daily lives and their purchase decisions are controllable by their own hands.
The collectivistic cultures of China believe in fate more than individualistic cultures because of their social hierarchical system and the influence of Confucianism. Chinese consumers tend to attribute product or service failure to fate (Yao, 1988). As the outcomes have been already predetermined, Chinese would have lower expectations towards the purchased products and probably experience less cognitive dissonance. The desire to maintain
13 social harmony in Confucianism and the norm of saving face in Chinese cultures discourages people from complaining about product failure.
Complaining behaviour could be treated as the metaphor of making unwise decisions (Lowe and Corkindale, 1998; Slote and De Vos, 1998). Moreover, the principle of moderation raises the acceptance level for product failure among Chinese consumers and their threshold for taking action against undesirable business practices (Lowe and Corkindale, 1998).
However, Canadian consumers understand well their consumer rights and privileges. Which makes them more likely to engage in complaint behaviours against unsatisfactory services for exchange or refund than their Chinese counterparts.
The individualistic vs. collectivistic construct has allowed researchers to link psychological phenomena to cultural dimensions and investigate cultural differences across societies (Chandler, Shama, Wolf, and Planchard, 1981; Hui and Triandis, 1986; Lau-Gesk, 2003; Leung and Bond, 1984; Leung and Iwawaki, 1988; Zhang and Neelankavil, 1997). A related issue to be taken into account is how international migrations are affected by a society‘s culture. Past research regarding immigration into new societies are replete with examples of the blending of the new cultures, products and lifestyles (Penaloza and Gilly, 1999; Wallendorf and Reilly, 1983). When considering the individual who immigrates to a new culture, the process of acculturation is the focus.
1.6 Cross Cultural Consumer Behavior Models
Culture influences culture to a considerable extent but there is scarce research on interaction of consumer behavior and culture (Maheswaram and Shavitt 2000 p.59). There are very few models that explain cross- cultural consumer behavior but some models have gained acceptance and are widely referred in the literature. The models regard culture as one of the 14 potent factors responsible for consumer behavior. They are as below:
1.6.1 Sheth and Sethi‘s Model
Sheth and Sethi (1977) made one of the earliest attempts to develop a comprehensive model of cross-cultural consumer behavior (Figure 1.6.1). The model is based on the presumption that various cultures can be placed on a continuum according to the degree of resistance to change. The lower is the resistance to change the higher the society will be placed on the continuum .The transition of a society from one point to another on a continuum is accompanied by a weakening of the resistance to change. The understanding of this transition of cultures and the variables which affect this change, on the continuum help in understanding and predicting the circumstances under which a given product is likely to be accepted. Different types of products and ideas, and different cultures and their rate of transition will vary for different product types.
The multinationals introduce new products and services and act as agents of change and innovation. The country's propensity to change is influenced by the communication from the various sources. The customers process the information and evaluate the innovation but if the culture is not ready for a change the customers won't pay attention to the communication on the innovation. The country's change agents, the opinion leadership and lifestyle are other factors which affect the propensity to change and the evaluation of innovation. The adoption of the innovation depends on the per capita income; marketing institutions and distribution infrastructure have a considerable effect on the adoption of the innovation. The permanent adaptation of an innovation influences the propensity to change and innovation evaluation. If the culture is satisfied with the adoption, it will be receptive to change and there will be a favorable attitude towards the multinational that introduced the innovation.
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1.6.1 Sheth and Sethis' Model
Source: Sheth, Jagdish N. and Sethi Prakash S. (1977), “A Theory of Cross- Cultural Buyer Behavior,” in Consumer and Industrial Buying Behavior, New York, Pg .373.
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1.6.2 A-B-C-D Model P.S. Raju (1995) has developed a framework known as A-B-C-D paradigm to study and understand consumer behavior in Third World and Eastern Europe Figure 2.3 identifies the major factors within each stage
Raju, P.S. (1995), “Consumer Behavior in Global Markets: The A-B-C-D Paradigm and Its Application to Eastern Europe and the Third World,” Journal of Consumer Marketing, Vol.12(50), Pg 37-56.
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The acronym A-B-C-D stands for the four stages of the paradigm namely access, buying behavior, consumption characteristics, and disposal. Access is the first step of the paradigm, refers to providing the physical and economic access of the products and services to consumers within a culture. The buying behavior refers to all the factors like perceptions, attitudes and consumer responses having effect on the decision making and the choices available within a culture. The third stage consumption characteristics refers to the type of products and services consumed within a culture and depend on the cultural orientation, social class , reference group and patterns of urban versus rural sector consumption. The last stage of the paradigm disposal refers to the resale, recycling, and remanufacturing, social and environmental considerations of product disposal. The customers world over are becoming environmentally conscious and so marketers need to be socially and environmentally responsible.
1.6.3 Manrai and Manrai Model
Manrai and Manrai "structures the cultural component of the person in terms The marketing communications act as moderator of the effect of cross culture on consumer behavior and can even influence of consumer attributes and processes, and the cultural components of behavior in consumer behavior domains"(Moiij 2004).
The culture is influenced by the income and in turn gets influenced by the culture. The 'Who' refers to what the people are. The components of 'Who' are self i.e. what a person thinks who he is, his identity, image, attitudes, and the lifestyle. The 'How' refers to the processes that influence peoples' thinking, perception, learning and motivation.
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Manrai and Manrai Model
Source: Manrai and Manrai 2004,Consumer Behavior and Culture,: Sage Publications New Delhi, Pg. 95.
1.6.4 Luna and Gupta Model Luna and Gupta (2001) in their model recognize the influence of cultural value systems on the behavior (Figure 2.5.). Culture is manifested through values, heroes, rituals, and symbols. Values is the core of culture and it influences the consumer behavior .
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Source: Luna and Gupta (2001), “An Integrative Framework for Cross- Cultural Consumer Behavior,” International Marketing Review ,18(1),Pg. 45- 69
In marketing the products are associated with heroes as they may influence the consumer behavior. Rituals involve consumption so are important in consumer behavior. Symbols may be absent or their meaning may be different in cultures. The consumers in order to define their self indulge in symbolic consumption.
The consumer behavior constitutes of three elements-cognition, affect and behavior. The cognition refers to the memory processes, affect refers to the attitude formation process and the behavior includes the individual behavior and consumption patterns..
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Area Profile Under Study
When it is talked about diversity in India, the first state that comes to the mind is Maharashtra. Located in the western part of the Indian subcontinent, the state of Maharashtra is known for its size, it is the third largest state in India by area. Maharashtra is located on the western coast of India, is divided into thirty five districts which are grouped into six divisions: Aurangabad Division, Amravati Division, Konkan Division, Nagpur Division, Nashik Division and Pune Division
Maharashtra is a vast state with diverse regional and sub regional variations (Kumar 2004). The state abounds with economic, caste, ethnic, religion and linguistic diversities (Stern 2003). The size and heterogeneity makes it difficult to generalize its ecological record (Rangarajan 2000).This further makes it an arduous task to understand the consumption pattern and consumer behavior in Maharashtra.
To gain insights into Maharashtra the field work should be accompanied by cultural understanding which can be obtained only by the knowledge of the secondary sources (Venkatesh 1995). In this chapter an attempt is made to unfold the various elements of this complex culture taking into account the historical and contemporary perspectives. The chapter explores the issues relevant to Maharashtrian culture like racial elements, social structures, religions, languages, family and kinship types, psyche, social change, consumption patterns, markets and marketing.
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Map of Six Different Regions of Maharashtra under Study Region City Vidarbha Washim Buldhana Nagpur Nagpur Gadchiroli Konkan Ratnagiri Sindhudurga North Maharashtra Dulia Jalgaon West Maharashtra Satara Solapur Marathwada Latur Nanded
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CHAPTER 2 LITERATURE REVIEW
This chapter includes the following literature: a review of Consumer behavior and cultural studies, Culture and personality, impact of cross culture on consumer behavior, issues in cross culture research, main approaches to national cultural dimensions.Hofstede‘s dimensions
2.1 What is Culture?
Leung (2005) define culture as values, beliefs, norms, and behavioural patterns of a group– people in a society for national culture, staff of an organization for organizational culture, specific profession for professional culture, etc. Hall, (1976) has asserted that beliefs and values dictate the way people think, behave, solve problems, make decisions, plan and lay out their homes and cities, and even organize their economic, political, and transportation systems .Definitions of culture vary from the very inclusive as Herskovitz (1955) defines it as the human-made part of the environment; to the highly focused . Some researchers proposed culture as tacit or implicit artefacts such as ideologies, coherent sets of beliefs, basic assumptions, shared sets of core values, important understandings, and the collective will (Jermier et al., 1991; Sackmann, 1992; Groeschl and Doherty , 2000), others suggest that culture includes more explicit observable cultural artefacts such as norms and practices (Jermier et al., 1991; Groeschl and Doherty, 2000; Hofstede 1998), symbols (Burchell et al. 1980), as well as language, ideology, rituals, myths, and ceremony (Pettigrew 1979; Karahanna et al., 2005).
The socio-cultural system and the individual system are two theoretical frameworks likely to be studied when researchers investigate cultural aspects. The former is concerned with the institutions, norms, roles, and values as they exist outside the individual, and the latter is concerned with the subjective
23 culture as reflected by the individual‘s perception of the elements of the culture system (Dorfman and Howell, 1988).
For example, Mead, (1985) defined culture as ―shared patterns of behaviour.‖ This definition has at least two implications. It implied that culture was a group-level construct, situated between the personality of individuals and the human nature that is common to all of us. Societies, organizations, and professions are among the ―groups‖ that could be considered to have their own cultures. Also, it implied that the study of culture involved little more than observing and describing behaviour (Davison and Martinsons, 2003).
Also, Hofstede, (1991, p.5) defines national culture as ―the collective programming of the mind which distinguishes the members of one group or category of people from another‖. He suggests that people share a collective national character that represents their cultural mental programming. This mental programming shapes values, beliefs, assumptions, expectations, perceptions and behavior (Myers and Tan, 2002). According to Hofstede, (1980) culture is equivalent to the collective mental programming of a group, tribe, minority, or a nation. It is the aggregate of individual personality traits.
However, Triandis (1972) defines culture as an individual‘s characteristic way of perceiving the man-made part of one‘s environment. It involves the perception of rules, norms, roles, and values, which is influenced by various levels of culture such as language, gender, race, religion, place of residence, and occupation, and it influences interpersonal behavior. This definition has at least two implications. The first is that it assumes that by analyzing the behavior of an individual of a society would not provide a specific identification of the rules, roles, norms and values of that society but rather shows the perception of that individual of the shared cultures he/she belongs to. The second is that behavior of an individual would be influenced by the shared culture which is influenced by different levels of cultures.
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2.2 Cultural Levels
Culture has been studied at various levels, including national (macro level, cross-cultural), organizational, group (sub-culture, professional, special interest, social class, etc.) and individual (micro level, subjective culture) (Triandis, 1972; Hofstede, 1984; Dorfman and Howell, 1988; Myers and Tan, 2002; McCoy, 2003; Ali and Alshawi, 2004a).
Culture at a social or national level is the culture shared between people in a society or a country (Hofstede, 1984). On the other hand, culture that is shared between people working in an organization is called organizational culture (Stahl, 2003). Also, culture that is shared between people with a similar profession or occupation is called professional or occupational culture or sub-culture of a specific interest group i.e., political party or a social class (Myers and Tan, 2002). However, individual culture is referred to as the subjective culture of an individual which is related to how much an individual takes from the different cultures that the individual is part of (Dorfman and Howell, 1988; Karahanna et al., 2005).
2.3 National Culture
National Culture is one of the most studied areas but there is no one agreed- upon definition. This part provided a review of literature related to previous studies and theories. The theoretical construct of national culture is built around the notion that there are a relatively limited number of unique elements, which sets the culture apart and enables it to exist, associated with any given culture which make up its national identity (Clark, 1990; Huntington, 1997). That is, national identity is the extent to which a given culture recognizes and identifies with its unique characteristics.
According to Brislin (1993), culture consists of ideals, values and assumptions about life that are shared among people and that guide specific behaviors. Therefore when people study the culture an element of invisibility
25 is faced since assumptions, ideals and values are not immediately obvious. Although formal definitions of culture appear diverse, commonalties existed: Hofstede and his colleagues (1990) have observed that culture "(a) is holistic, (b) historically determined, (c) related to anthropological concepts, (d) socially constructed, (e) soft and (f) difficult to change". In the organization's perspective, culture is based on underlying assumptions held by the individuals within the organization. Schein (1985) claimed that assumptions, values, and artifacts hold the key to understand and change a culture.
Each of us fits into a number of different groups of categories, most of the people have several layers of culture and belong to; these cultural layers may be based upon national, regional, ethnic, religious, linguistic, gender, generational, social class, industry or corporate affiliations (Hofstede, 1991).
2.4 National (Cross-Cultural) Level
At a macro level of analysis, national culture is defined as the culture that a society shares, which is a set of core values, norms, practices etc., which shapes the behaviour of individuals as well as the whole society (Adler 1997; Bagchi et al., 2003).
Stahl, (2003) defines culture at the macro level as the pure substance of the physical resources and perceptions, of the physical and mental techniques, which allow a society to persist. Culture thus consists of fact, artefacts institutions, etc. but its most important function is that of a reservoir of shared interpretations and collective experiences (Robey and Azevedo 1994).Although the national culture construct is inherently complex, it is possible to label many different taxonomies or dimensions of it. A large body of literature on culture has identified and considered these dimensions.
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Organizational Level Organizational culture could be defined as the culture that staff of an organization share and are influenced by (Adler 1997; Bagchi et al., 2003). Stahl, (2003) defined corporate culture as commonly shared values, which direct the actions of the employees towards the common purpose of the enterprise. Corporate or organizational culture fulfils the same role in an organization that culture fulfils in society. It defines what is real, what is important, and thus how one should act. This has led to an extensive use of the term as a vehicle of business ethics (Heeg and Meyer-Dohm 1994, Grabner-Krauter 2001).The literature on organizational culture implies that staff of an organization may be more or less socialized into the organizational culture and possibly away from the national culture (Killmann et al., 1986; Sathe, 1983; Dorfman and Howell, 1988).
As with national culture taxonomies, the aim of organizational culture has been to enable the differentiation of organizations along the lines of dominant values guiding organizational behaviors (Leidner and Kayworth, 2006). But, it is beyond the scope of this work to identify an exhaustive list of organizational culture theories.
Group (Sub-Culture) Level Furthermore, since within one nation or within one organization there can be many subcultures (e.g., professional associations, political parties, ethic groups), individuals‘ work behaviour may also be influenced by the norms and values of these subcultures (Triandis, 1972)
Individual Level (Subjective Culture) Dorfman and Howell (1988) explored the level of analysis of culture in their investigation into the effects of national culture on individual behavior, e.g. Technology acceptance. It was found that subjective culture of an individual (Karahanna et al., 2005) (which is a mix of different cultures levels that the individual is part of) may influence the individual behavior, even in the opposite direction of the society culture.
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2.5 Operationalizing Cross Cultural
Although definitional difficulties pose a challenge to cross-cultural research, culture's influence on consumption and marketing has drawn increasing attention in recent years. Lenartowicz and Roth (2001) report that almost 10% of the articles published in 10 renowned journals during 1996–2000 used culture as an independent variable. Consequently, a number of approaches have been used to identify and operationalize culture allowing its inclusion in empirical research.
Based on a twenty-year review of cross-cultural consumer research, Sojka and Tansuhaj (1995: 4) concluded that researchers have followed three approaches to operationalize culture: through language, through material goods/artefacts, and through beliefs/value systems. Language offers ―an interpretative code or schema for organizing and presenting the world‖, but is not a good indicator of ethnicity and cannot be used alone to explain different behaviors across subcultures and cultures. Possessions/artefacts allow a more concrete operationalization of culture, as goods embody visible evidence of cultural meaning.
Many cultural artefacts (e.g., durable goods, toys, and clothing) have been studied in cross-cultural contexts. Finally, values/belief systems (e.g., fatalism, materialism, and relations with others) as operational definitions of culture were deemed instrumental in understanding cross-cultural consumer behavior.
Lenartowicz and Roth (1999) use the term ―culture assessment‖ to identify a valid cultural grouping and propose the following typology: Ethnological description; Use of Proxies— Regional Affiliation; Direct Values Inference (DVI) and Indirect Values Inference (IVI). This typology provides a comprehensive perspective of approaches to operationalizing culture in the literature and hence is reviewed below.
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2.5.1 Ethnological description Ethnological description pertains to ―qualitative approaches, typically sociological, psychological and/or anthropological, used as bases for identifying and/or comparing cultures‖ (Lenartowicz and Roth, 1999: 783). This approach provides a descriptive appraisal of cultures.
International marketing studies have used Hall‘s classification of high- and low-context cultures as such an approach (Wills et al., 1991, Samli, 1995, Mattila, 1999 and van Everdingen and Waarts, 2003). The distinction is based on the way messages are communicated in each culture: explicitly or in the context. Although useful, this classification has limitations, as it merely allows the classifications of cultures along one dimension. Similarly, Gannon's (2001:) approach to the study of culture uses metaphors as a method to understand and compare the cultural mindsets of nations. A cultural metaphor is defined as ―any activity, phenomenon, or institution which members of a given culture emotionally and/or cognitively identify‖. This approach provides an intuitively appealing subjective description, which is useful in understanding foreign cultures.
The Ethnological description approach guides emic studies of culture, which aim at studying intensively a single culture to describe and understand indigenous, specific phenomena. It has been rarely used in international business (Lenartowicz and Roth, 1999).
2.5.2 Use of proxies — regional affiliation This approach consists of defining culture based on characteristics that reflect or resemble culture (e.g., nationality or place of birth) and is common in business applications (Hoover et al., 1978, Dawar and Parker, 1994, Steenkamp et al., 1999 and Lenartowicz and Roth, 2001). Hofstede (1984) and Steenkamp (2001) support this approach. Steenkamp (2001) argues that there is empirical support for within- and between-country differences making nationality an acceptable proxy of culture. Moreover nations ―are the source of considerable amount of common mental programming of their citizens‖
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(Hofstede, 1991: 12) since nations with a long history have strong forces towards further integration. In fact, culture, country, nation, and society are often used interchangeably (Sekaran, 1983 and Nasif et al., 1991). However, given the imperfect correspondence between political boundaries and culture even in culturally homogeneous countries (Sheth and Sethi, 1977), scholars should sometimes include multiple ethnic groups in each country under study.
The ―proxies‖ approach has been used at different levels of culture. ―Culture can be defined on different levels of analysis, ranging from a group level to an organizational level or a national level‖ (Erez and Earley, 1993: 23) or on a group of nations such as the European Union (Steenkamp, 2001). For example, Mattila's study (1999) about the influence of culture on purchase motivation in service encounters distinguished between Asian and Western cultures. In a similar vein, Dawar and Parker (1994) proposed the ―ethno- geographic trade area‖ as an alternative operationalization of culture, defining four cultural clusters: North America; EEC; non-EEC Europe; and others. On the opposite pole, subcultures have also been studied (Lenartowicz and Roth, 2001).
Other proxies have also been used, such as the level of a culture's engagement in the retail sector (Dawar and Parker, 1994). Samli (1995) argues that consumer behavior could be predicted using a scoring system on relevant cultural variables that would allow the identification of specific international consumer behavior patterns. He proposed the following set of variables: class structure, language, context (low/high), interpersonal relationships, needs hierarchy, role of the sexes, role of children, territoriality, temporality, learning, work ethic, need for privacy, exploitation of resources, resource utilization, family role in decision making, family size, religiosity, tradition orientation, and technology grasp.
However, this approach is merely a classification method that lacks measures to test hypothesized relationships regarding the influence of culture on dependent variables.
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2.5.3 Direct values inference (DVI) This approach comprises measuring the values of subjects in a sample, and inferring cultural characteristics based on the aggregation of these values (Lenartowicz and Roth, 1999). Hofstede, 1984, Hofstede, 1991 and Hofstede, 2001 study used such an approach. Based on statistical analyses of a multi- country sample on work-related values, Hofstede proposed that cultures are comparable on five dimensions, common to all countries under study (Hofstede, 1991 and Hofstede, 2001): individualism/collectivism; uncertainty avoidance; power distance; masculinity–femininity and long-term orientation.
Schwartz's universal structure of values fits this approach as well (Schwartz, 1992, Schwartz, 1994, Schwartz and Bilsky, 1987, Schwartz and Bilsky, 1990 and Schwartz and Sagiv, 1995). He identifies universal psychological values and proposes a theory for the universal content and structure of values. Schwartz framework offers great potential in international marketing (Steenkamp, 2001).
Finally, several studies replicated Hofstede's study of work values using different scales (e.g., Dorfman and Howell, 1988, Fernandez et al., 1997, Donthu and Yoo, 1998, Furrer et al., 2000 and Liu et al., 2001) or his values survey module (VSM; Hoppe, 1990, Heuer et al., 1999, Merritt, 2000, Schramm-Nielsen, 2000 and Pheng and Yuquan, 2002). Of these, Hoppe's (1990) study has been used as an update of Hofstede's scores (Steenkamp et al., 1999).
Indirect values inference/benchmarks (IVI) This approach uses secondary data to ascribe characteristics of cultural groupings without directly measuring members of the group. The most notable example of this approach is the use of Hofstede's scores of national cultures (Hofstede, 1984). Lenartowicz and Roth (1999: 786) suggest caution in the use of the benchmarks approach: ―The concern with this approach is potential measurement error arising from the extrapolation of cultural values from the group assessed by the benchmark study to the sample being surveyed‖. This
31 method, with caveats, is adequate for formulating hypothesis and providing measures of cultures for cross-cultural studies with an indirect approach. All four methods have inherent weaknesses. Thus Lenartowicz and Roth (1999: 787) contend that ―no single methodology is able to address the inclusive set of criteria relevant to culture assessment in business studies‖. A parallel discussion regarding approaches to operationalize culture pertains to the use of a limited number of dimensions to capture cultural differences
2.6 Introduction to Cross Culture Consumer Behavior
A number of research studies support that cultural effect is one of the important factors to explain a certain pattern of individual thought and behavior from the psychological aspects. Yi and Park (2003) found that people with different cultural backgrounds were more likely to have different attitudes and styles of decision making in negotiation, bargaining processes, and problem solving in various social settings because value systems differed. Prior work suggests that the psychological results do not always translate when cultures were so different.
Stevenson and Stigler (1992) examined, for example, that there was more belief in malleable intelligence and in the importance of effort among those in the Asian culture than in the American culture when it compared the achievement beliefs of Asian and American school children and their parents.
Bracken and Barona (1991) mentioned that obvious cross cultural influences included beliefs, customs, values, degree of acculturation of assimilation, and generational status of the individual. Furnham, McClelland, and Omer (2003) examined whether ratings of attractiveness and related attributes were indeed pancultural, as evolutionary psychologists have suggested, or cultural-specific as some studies have suggested (Furnham and Alibhai, 1983; Furnham and Baguma, 1994; Zebrowitz et al., 1993). From the perspective of business, a cross-cultural study would still make many contributions to the understanding of the international or multinational business market. Luo, Hoek, and Roos
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(2001) identified that the ability to effectively manage logistics in a cross- cultural context has become one of the crucial success factors in today‘s business world in the face of ever-increasing globalization. In addition, the study insisted that cross-cultural logistics research could have the benefit of applying the experience learned in cross-cultural research, in general, and through cross-cultural research in management and marketing, through international business.
2.6.1 Main Authors and their contribution ideas in Cross Culture Consumer Behavior and Consumption pattern This growing interest can be witnessed in the growing emergence of research and theoretical contributions to cross-cultural consumer behavior (Henry 1976; Sheth and Sethi 1977; Raju 1995; Roth 1995;Applbaum and Jordt 1996; Nakata and Sivakumar 1996; Aaker and Williams 1998; Keillor and Hult 1999; Steenkamp, Hofstede and Wedel 1999; Naumov and Puffer; Luna and Gupta 2001; Steenkamp 2001; Luna and Peracchio and Juan 2002; Moiij and Hofstede 2002; Kau and Jung 2004; Moiij 2004; Okazaki 2004; Ogden, Ogden and Schau 2004; Malhotra et al. 2005; Salciuviene, Auruskeviciene and Lydeka 2005). The interest is evidenced in the research proving the effect of culture on the different aspects of consumer behavior: consumer involvement (Edgett and Cullen 1993); consumer decision making styles (Lysonski, Durvasula and Zotos 1996); consumer innovativeness (Steenkamp, Hofstede and Wedel 1999); perception, motivation, learning and memory, age, self concept, group influence, social class, sex roles, attitude change, decision making, purchase and post-purchase behavior (Usunier 2000); impulsive buying behavior (Kacen 2002); price perceptions (Sternquist, Byun and Jin 2004); prices and shopping behavior (Ackerman and Tellis 2001) brand loyalty (Lam and Lee 2005); consumer patience (Chen, NG and Rao 2005). The interest in the cross-cultural research is further corroborated by the growing contribution to cross-cultural research methodology (Green and white1976;; Sekaran 1983; Parmeswaram and Yaprak 1987; Ward, Klees and Robertson 1987; Durvasula, Lysonski and andrews 1993; Malhotra, Aggarwal and Peterson1996; Cavusgil and Das 1997; Usunier 2000;
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Salzberger, Sinkovics and Schlegelmilch 1999; Groeschl and Doherty 2000; Sinkovics, Penz and Ghauri 2004; Yeganeh, Su and Chrysostome 2004; Ewing, Salzberger and Sinkovics 2005). Green and White (1976) observe that though many cross-cultural researches were reported but some methodological issues were ignored. It draws attention of the researchers to some of the methodological issues like functional equivalence, conceptual equivalence and instrument equivalence which are necessitated in cross- cross cultural research. It explained the need for comparability of samples across various cultures.The concerns for methodological and theoretical issues in cross-cultural research has also been expressed by Sekaran (1983). She classifies the methodological and design concerns under five broad categories: functional equivalence, instrumentation, data-collection methods, sampling design issues and data analysis. The scholar calls for ensuring functional instrument equivalence. In instrument equivalence attention is drawn to scaling equivalence and containing biases taking in to account the cultural sensitive issues. In data collection response equivalence, timing of data collection, status and other psychological issues should be kept in mind. The samples should be true representative and comparable of the cultures under study. The data analysis should include multivariate analysis which provides better understanding of the phenomenon and relationships among the variables under study. Parmeswaran and Yaprak (1987) observe that cross-national consumer research instrument is sensitive to the nature of attitudinal constructs, the nationality of the respondents and the country-of- origin effects. Their study demonstrated that same scales may have different reliabilities when used by the same person in different cultures. Malhotra, Agarwal and Peterson (1996) have organized the methodological issues around the six-step marketing research process: problem definition, approach development, research design formulation, field work, data analysis, and report preparation and presentation which have been elaborated in chapter 2 of literature survey.
Methodological issues in cross-cultural sourcing research have been highlighted by Cavusgil and Das (1997). There study proposed a framework
34 for conducting crosscultural research which includes six steps: domain determination, evaluate equivalence, sampling design, instrument development, data collection, and data analysis. The model framework calls for functional, conceptual, sampling, instrumentation, data collection and data analysis equivalence and incorporation of theory in different steps of the framework across the various cultures in study.
Salzberger, Sinkovics and Schlegelmilch (1999) illustrate the difficulties in achieving equivalence in cross-cultural research. It was observed that many studies disregard data equivalence or suggest the use of confirmatory factor analysis. The confirmatory factor analysis has certain inherent problems which can be overcome by using the latent trait theory. Groeschl and Doherty (2000) critically review the way culture is conceptualized by different researchers. The study recognized that culture is a complex term and has been defined in different ways in different cultures. The conceptualization and delimitation has also been done in many ways. Some recognize the culture at national level, some at sub cultural level, while others equate culture to the organizational culture. The authors show that there are clear similarities in the different approaches and concepts, and so call for a need to create a general framework for understanding cross culture
2.6.2 International Studies of Cross Culture In addition to the organizational culture studies described above, another line of cultural inquiry established during the past 30 years in organizational and management research is international cross cultural consumer behavior research (cf. Sackmann and al., 1997; Sackmann and Phillips, 2004).
As the name implies, international cross cultural consumer research are cultural studies in international settings focused in explaining "the behavior of people around the world" and showing "how to work in consumers from many different cultures" (Adler, 1997: 10). According to one, historical perspective, this literature originates from the international economic development following the World War II (Sackmann, 1997; Gajewsksa de Mattos et al.,
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2004; Sackmann and Phillips, 2004). As (US-based) companies and economies strengthened their international expansion, the implications of cultures and cultural differences on management, organizing, and organizational practices started to become visible and increased their salience. Up until then, much of the academic management studies had been US based and dominated by US viewpoints and perspectives. Consequently, management and management studies were considered to be universal, culminating in the assumption that the same organization and management practices could be applied anywhere and everywhere without taking cognizance of the national context. (Boyacigiller and Adler, 1991; Sackmann, 1997; Jackson and Aycan, 2001)
However, by the 1970s, as the argument goes, based on the work by Haire et al. (1966) it had become obvious thatconsumer behavior and business practices might differ between countries due to factors with cultural features and properties, questioning the predominant universalistic assumption of organizing and management (Sackmann, 1997; Sackmann and Phillips, 2004; Leung et al., 2005; Peterson, 2007). As a consequence, the idea of national cultures (i.e. that a country could have a distinct culture of its own) and especially the possible existence of cultural differences between nations became salient and gained a priority status in organizational and management studies (ibids.). Therefore, comparative, cross cultural studies broke into the field driven by the imperative to show that cultural differences across nations exist, that it have an impact on a wide range of organizational and management practices, and especially that no universal ways to organize and manage exists (Haire and al., 1966; Hofstede, 1980; Boyacigiller and Adler, 1991; Trompenaars, 1993).
In this development, a landmark study was that of Hofstede (1980), which above all introduced a framework and a "tool" for operationalizing national cultures for research purposes without the need to engage in time consuming and meticulous ethnographic, anthropological culture studies favored by other scientific disciplines. Another milestone achieved with this work was that it
36 provided a robust, "scientific" framework for "casting doubts on the universal validity of management theories" (Hofstede, 1991) and for increasing the plausibility that managerial and organizational practices could be dependent on national cultures (Trompenaars, 1993). In his approach, it was argued that each nation possesses a unique, shared combination of universal societal values that could be used as an embodiment and an expression of that particular country's culture. In addition, these values could be categorized according to a finite set of universal value dimensions, and most importantly, by means of arithmetic reductionism each particular country could be given a relative position along the culture dimensions. Consequently, this kind of dimensional positioning created the basis for an objective, universal terminology according to which national cultures and their properties could be distinguished, characterized, and their differences observed and compared.
The introduction of this framework then launched a scholarly craze producing hundreds and hundreds of cross cultural consumer behavior studies arguing and showing how different aspects of management and leadership practices consumer behavior and organizational behavior are contingent or affected by national cultures (see Kirkman et al 2006 for a comprehensive review). Since Hofstede, this stream of research has also produced a number of competing frameworks, most notably those of Trompenaars (1993), Schwartz (1994), and the GLOBE project (House et al., 2004). Some well-known examples of these cross cultural management studies are such works as those of Ronen and Shenkar (1985) on clustering countries according to their national cultural similarities, Kogut and Singh (1988) on the cultural "distance" between countries, Hoecklin (1993, 1995) on the relationship between cultural differences and competitive advantage, Newman and Nollen (1996) on the "fit" between management practices and national cultures in multinational corporations, and Barkema and Vermeulen (1997) on the effects of cultural differences on international joint venture performance.
An extensive review of all these studies lies well beyond the scope of this doctoral study. However, some predominant features common to the cultural
37 studies in this mainstream cross cultural consumer behavior research can be highlighted: Firstly, these studies are predominantly etic studies, adopting a cultural outsider's perspective in describing a (national) culture with objective and universal measures and terminology (Jackson and Aycan, 2001, 2006; Martin, 2002; Schaffer and Riordan, 2003; Yeganeh and Su, 2006). In other words, these studies have been built on the idea of developing a universal language for describing national cultures for comparative purposes and for observing the differences between them. For example, one well known cultural aspect, or dimension, that national cultures can be characterized is power distance (Hofstede, 1980). This is a cultural construct labelled and defined by Hofstede (1980), indicating the extent to which power inequalities are expected and accepted in a particular national culture. In addition, according to Hofstede (1980) in "high" power distance cultures, managers are autocratic and there are, for example, wide salary ranges between managers and workers (and vice versa for "low" power distance cultures).
Secondly, and as already implied above, the mainstream cross cultural research is positivistic and functionalist in its epistemic orientation (cf. Holden, 2002; Martin 2002; Søderberg and Holden, 2002; Williamson, 2002; Yeganeh and Su, 2006; Peterson, 2007). Hence, in this research (national) cultures have been considered as independent variables having an impact on organizing, management, consumer behavior and organizational outcomes (Smircich, 1983; Martin, 2002; Søderberg and Holden, 2002). Consequently, these are nomothetic studies in search for law-like causation between cultures, cultural constructs, and organizational phenomena (Williamson, 2002). For example, in the organizational context of this thesis, Zwikael et al. (2005) have shown how national culture has an impact on project management styles. Another exemplar from different context is Hui et al. (2004), who have shown how national culture mediates the effect of empowerment on job satisfaction. At a country level, Kwok and Tadesse (2006) have established a link between national culture and the organization of national financial systems. and as an example of the effects of cultures and organizational outcomes, Hennart and Zeng (2002) have studied the impact of
38 cultural differences on joint venture longevity, arguing that this can be negatively affected by cultural differences.
Thirdly, in terms of cross cultural interaction and organizational outcomes the mainstream cross cultural research is also often characterized by determinism. For example, in terms of cross cultural interaction and organizational outcomes, the predominant view has been that national cultural differences are a cause of adverse effects such as miscommunication, misunderstandings, cultural clashes, and outright business failures (Hofstede, 1980; Kogut and Singh, 1988; Trompenaars, 1993; Adler, 1997; Schneider and Barsoux, 1997; Holden, 2002). These notions have also given rise to the popular idea of cultural "distance" (Kogut and Singh, 1988), stating that the likelihood of the adverse effects increases as the differences between national cultures become larger (e.g. Li and Guisinger, 1991; Datta and Puia, 1995; Barkema and al., 1997; Luo and Peng, 1999). As a contrast, arguments have also been made that cultural differences can lead to increased creativity, problem solving ability, efficient adaptation to foreign contexts, and to increased competitive advantage (Hoecklin, 1993; Adler, 1997; Schneider and Barsoux, 1997; Morosini and al., 1998; Earley and Mosakowski, 2000; Ely and Thomas, 2001; Yeganeh and Su, 2006). For example, Morosini et al. (1998) have shown that mergers between culturally "distant" countries can outperform those between culturally "closer" countries.
Fourthly and perhaps most conspicuously, the mainstream cross cultural research is metonymic by nature in the sense that with regards to the scope of the cultural representation, relatively small sample sizes are used and generalized to the larger cultural population (i.e. a given country). As a consequence, this research has had the tendency to provide broad cultural representations depicting general values or behavioral tendencies ascribed to a particular nationality (e.g. Hofstede, 1980; Trompenaars, 1993; Adler, 1997; Schneider and Barsoux, 1997; Javidan et al., 2006). To exemplify this with the culture focused in this thesis, Finland and the Finnish culture in the original Hofstede -study (1980) was considered relatively individualistic, feminine,
39 democratic, and informal. In a similar spirit, based on Hofstede (1980) inspired dimensional based cultural operationalization, for example, Javidan et al. (2006: 77) described that "[t]he Brazilian employees will not be as forthcoming with their ideas and input as typical American employees are", while Adler (1997: 60) claimed that "Americans tell the same "truth" to everyone, without regard for the nature or depth of the relationship", and Schneider and Barsoux (1997: 96) that "managers in Sweden [ ] pay very little attention to formal structure or hierarchy".
Consequently and finally, the mainstream cross cultural research is often characterized by exclusivity. That is, in these studies national cultures are described to be, for example, high in the cultural dimension of individualism which excludes them from being high in collectivism (Hofstede, 1980; House and al., 2004). Or it is said to be Universalist but not particularist (Trompenaars, 1993). Indeed, this kind of dimensional, bi-polar, either-or logic is frequent and predominant in the existing international business and cross cultural research (e.g. Hofstede, 1980, 1991; Trompenaars, 1993; Hoecklin, 1993; Adler, 1997; Schneider and Barsoux, 1997; Javidan et al., 2006). Based on such notions, the idea of "cultural fit" has also appeared that cross cultural managers, either explicitly or implicitly, are often advised to "when in Rome, do as the Romans do" (Trompenaars, 1993; Newman and Nollen, 1996; Javidan and al., 2006). For example, when in Brazil, cross cultural managers are advised that "in developing a business strategy for the team's product, it is important to keep in mind Brazil's low scores on performance orientation and future orientation and its high score on power distance. The process of strategy development needs to allow for input from the employees, but the manager needs to be patient and to make an effort to encourage and facilitate the employees' participation." (Javidan et al., 2006: 77).
2.6.3 Needs for better understanding and development in cross culture consumer behavior research Notwithstanding the above, during the recent decade the needs to develop traditional cultural understanding and operationalization in international cross
40 cultural research have been increasingly voiced. In addition to some alleged methodological deficiencies (McSweeney, 2002; Graen, 2006), a need for further development has been seen, for example, in the tendency of this approach to generalize national cultures to single, homogenous entities without considering the myriad of different cultures constantly emerging, evolving, and existing within and across national boundaries (Nasif et al., 1991; Sackmann, 1997; Brannen and Salk, 2000; Tayeb, 2001; Soderberg and Holden, 2002; Vaara et al 2003a; Sackmann and Phillips, 2004). Obviously any given country can be seen to comprise of a countless number of divergent (sub)cultures (e.g. ethnic, racial, religious, regional, rural, urban, gender based cultures etc.) that may be separate, overlapping, nested or live in harmony or in conflict with each other (Sackmann, 1997; Sackmann and Phillips, 2004; Kirkman and Shapiro, 2005). In addition, for example, in international workplaces national cultures often come into existence in relation to and in contrast with other cultures (Soderberg and Holden, 2002; Vaara and al., 2003a), and a myriad of working cultures emerge in interaction between and in combination of cultural groups from different countries (Brannen and Salk, 2000). On the other hand, the tendency towards exclusivity that is often inherent in mainstream cross cultural studies have also been seen to be in need of development. As brought forward above, in this tradition nationalities and national cultures are positioned on the value dimensions according to aggregated, average scores. Consequently, this gives national cultures a context independent characterization based on exclusive, either-or logic (Sackmann, 1997; Yeganeh and Su, 2006). However, it has also been pointed out that considerable value and behavioral variation exists beyond the national averages (Hambrick et al ,1998; Tayeb, 2001; Williamson, 2002; Soderberg and Holden, 2002), and that depending on the context and situation, one cultural value can become salient with its opposite receding into background (and vice versa) (Osland and Bird, 2000). Hence, it has been argued that the dominant either-or logic should be replaced with a both-and logic, accepting the "paradoxical" nature of cultures (Sackmann, 1997; Osland and Bird, 2000; Martin, 2002). In other words, the fact that, depending on the situation, cultures can be, for example, both
41 individualistic and collectivistic or Universalist and particularist (Wels, 1996; Osland and Bird, 2000; Tayeb, 2001; Kirkman and Shapiro, 2005) should be taken into account.
Hence, due to reductionist exclusivity, cultural portrayals in the mainstream cross cultural consumer behavior research have been seen to produce somewhat generalized portrayals of cultures and cultural behavior - a monolithic view of a culture - without duly acknowledging the cognitive and behavioral dualism and ambiguity present in every culture (Brannen and Salk, 2000; Tayeb, 2001; Osland and Bird, 2000; Martin, 2002, Yeganeh and Su, 2006). Indeed, in their seminal work, Meyerson and Martin (1987) and Martin and Meyerson (1988) have argued that many cultural studies adopt an understanding according to which culture is something that is shared, common, and similarly interpreted between cultural members. This kind of understanding is called the integration perspective to cultures. From this perspective, cultural members share the same values, understandings, and behavioral traits; members attach consistently similar meanings to different things; members categorize and structure their experiences and interpretations of the surrounding social and natural world in shared, unambiguous ways.
However, Meyerson and Martin (1987) and Martin and Meyerson (1988) also argue that many larger cultural groups (e.g. organizations, societies, countries) often consist of a "mosaic" of subcultures. Consequently, it is within these subcultures that similar behaviors, values, meanings, and interpretations of the social and physical world appear unambiguously between cultural members. However, differences and ambiguities between the subcultures exist, distinguishing and separating them from each other. Hence, this kind of cultural understanding emphasizing subcultural demarcation is called the differentiation perspective to cultures.
Finally, Meyerson and Martin (1987) and Martin and Meyerson (1988) argue that within cultures and subcultures there are bound to exist cultural
42 manifestations that are ambiguous, inconsistent, and only partially shared. Hence, behavioral traits expressing contrasting values appear; ambiguities in interpreting the social and physical world exist; and structuring and categorization of experiences and interpretations among cultural members is unclear. Such cultural understanding emphasizing the dualism and ambiguities present in every culture is called the fragmentation perspective to cultures. Based on these distinctions, Martin (2002) then argued that without taking into account all these three perspectives, our understanding of any given culture will be highly partial and misleading.
2.6.4 Relational cultural understanding - a way to develop cross culture consumer behavior research As it can be seen from the above, needs have been expressed for refining the cultural conceptualization and portrayals in the cross cultural consumer behavior research. As a consequence, an alternative approach, showing merits especially in examining cultures and cultural phenomena as it appear in international cross cultural interaction, has gained prominence during the past decade. According to this relational, social constructivist understanding, in international cross cultural interaction cultures, cultural specifics and identities are dynamic, constantly evolving social constructs that materialize based on the sensemaking processes (Weick, 1995) of the involved actors themselves (Brannen and Salk, 2000; Soderberg and Holden, 2002; Soderberg and Vaara, 2003). Hence, this approach and cultural conceptualization builds especially on the notion that in contemporary, globalizing organizations, cultural groups and communities come across and interact with a variety of other cultural groups. Consequently, cultures and cultural identities are seen to be constantly (re)produced and (re)constructed in multiple ways and for multiple reasons in social encounters and interaction between the cultural groups. Hence, this approach especially stresses cultural emergence and that cultures come "into existence in relation to and in contrast with other cultural communities" (Soderberg and Holden, 2002: 112).
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This kind of relational, social constructivist cultural understanding therefore turns the focus from the universalistic, value dimension based cultural portrayals to the subjective cultural construction and culturally dependent sensemaking and behavior of the involved actors. Hence, from this perspective cultures are not understood solely in an essentialist sense, i.e. as underlying structural forms that have an effect on its members thinking and behavior (cf. Hambrick et al., 1998; Leung et al., 2005). Rather, the relational cultural understanding extends the essentialist understanding by adding another layer and treating cultures and cultural identities as multidimensional products of the actors' sensemaking and behavioral processes, catalyzed by the interaction with different cultural groups (Osland and Bird, 2000).
Moreover, as exemplified by Vaara et al. (2003): "For example, Finns and Swedes are usually characterized as being very much alike when compared with, for example, the French or Italians. If, however, it concentrates on Finnish-Swedish relationships, the perceived national differences will be emphasized when Finns and Swedes are asked to describe themselves and their next-door neighbors." Hence, this cultural understanding especially acknowledges the importance of different contexts and situations, which are seen to reveal and construct different aspects of a particular culture as well as yield different kind of cultural identification. In other words, according to this understanding cultures and cultural specifics become a reflection of the context and situation, and unlike the mainstream cross cultural research tradition, no stable cultural form, substance, or identity is assumed (Osland and Bird, 2000; Soderberg and Holden, 2002; Søderberg and Vaara, 2003). At the same time, the relational cultural understanding relaxes on the assumption of cultural exclusivity (i.e. if a particular culture is high in power distance, this excludes it from being the opposite), allowing the potential existence of cultural dualism and that both ends of a cultural value dimension can be present in a particular culture (Gajewsksa-De Mattos et al., 2004)
Springing from these premises, recent studies have then began to provide insights into the actors' cultural sensemaking, interpretation, and
44 reconstructions as it appear in cross national and cross cultural interaction and in different kinds of cross cultural settings (Ailon-Souday and Kunda, 2003; Soderberg and Vaara, 2003; Gajewsksa-De Mattos, 2004; Barinaga, 2007). For example, Vaara et al. (2003a) studied a bank merger in a Nordic setting, focusing on the cultural constructions of Swedes, Finns, Danes, and Norwegians. In this study the authors especially illustrated how cultures and cultural features could come into existence in cross cultural interaction between the national cultural groups. It was also shown how historical and organizational contingencies could affect the emergence and appearance of these cultures. Moreover, in the same volume (Soderberg and Vaara, 2003) different aspects of the cross national merger, e.g. post-merger integration processes, knowledge transfer, etc. were studied, providing an in-depth understanding of the situated cultural sensemaking and emergence between the four national groups. In a similar vein, Ailon-Souday and Kunda (2003) in their study of an Israeli-American merger, and Gajewsksa-De Mattos et al. (2004) in their study of German-Polish mergers, illustrated how national cultural specifics were constructed in relation to the national groups involved, and in line with Vaara et al. (2003), how these constructions could become infused, for example, by historical occurrences and relations between the nationalities.
In addition to the institutional or structural (e.g. Whitley, 1992) and the more cognitive and behavioral (Hofstede, 1980; Trompenaars, 1993) aspects of cultures, the relational, social constructivist culture studies have also acknowledged another epistemological layer, according to which cultures in international cross cultural interaction can have their origins in other social processes within and between the cultural groups. Indeed, these studies have illustrated how culture formation and construction has been involved in such processes as enacting group boundaries and identities (Ailon-Souday and Kunda, 2003; Vaara et al., 2003a, b), enhancing group self- esteem and self- worth (Salk and Brannen, 2000; Ailon-Souday and Kunda, 2003; Vaara and al., 2003 a; Gajewsksa-De Mattos et al., 2004), making sense of social complexity and initiating organized action (Barinaga, 2007), establishing
45 power positions between groups (Gajewsksa-De Mattos et al., 2004), and serving the purposes of organizational politicking (Vaara, 2000). As a consequence, these notions especially stress the situated and context dependent emergence and appearance of (national) cultures and their specific features.
Furthermore, these studies have illustrated how cultural sensemaking, depending on the situation and context, can create different kinds of cultural relationships. As one example, these studies have shown how a sense of superiority and inferiority between nationally divided groups can become highly commonplace in the cross cultural settings (Salk and Shenkar, 2001). Furthermore, it has been shown how these attributions can be fluid and changing, that is, the cultural features giving rise to superiority or inferiority might not be applied equally to all aspects and situations of the cross cultural interaction (Ailon-Souday and Kunda, 2003). In addition, as argued by Gajewsksa-De Mattos et al. (2004) the "inferior traits" of one's own cultural group can be turned the other way around and construed as more appealing and "superior" by the group members themselves.
Taken together, the relational, social constructivist cultural understanding can be seen to hold great promise in answering some of the expressed needs for refining the existing cultural portrayals in the cross cultural research. That is, this kind of cultural understanding seems particularly suitable when taking into account the context and situation dependency of cultures and cultural features. Secondly, this cultural understanding especially builds on the notion that, in cross cultural encounters cultures and cultural identities are constantly reproduced and reconstructed in multiple ways and for multiple reasons in the interaction between the cultural groups. Furthermore, this approach gives way to acknowledging and examining cultural dualism and the emergence of "contrasting" cultural traits and manifestations in a particular cultural group. Consequently, because of these features, this approach, above all, holds great promise in examining cultures, cultural features, and
46 identities, as it emerges and appears in organizational settings characterized by international cross cultural interaction.
2.7 Hofstede‘s Cross Culture Dimensions
In 1980, Hofstede presented his dimensions of national culture, based on surveys of 116,000 IBM employees' from 70 countries. From this landmark study, Hofstede (2001) has defined culture as "the collective programming of the mind that distinguishes the members of one group or category of people from another".
This programming of the mind, which Hofstede argues is developed early in life, contains components of national culture due to societal influence. Due to his large sample size, Hofstede has been able to identify different dimensions of national culture.
These studies together identified seven independent dimensions on national culture differences, each rooted in a basic problem with which all societies have to cope, but on which their answer vary (Hofstede, 2001). Initially, Hofstede analyzed the national culture by four dimensions:
Power Distance Index (PDI) Uncertainty Avoidance Index (UAI) Individualism and Collectivism (IDV) Masculinity and Femininity (MAS)
Later Hofstede credited Bond and the Chinese Culture Connection with identifying what he recognizes as the fifth dimension of culture.
Long term versus Short term orientation (LTO)
This dimension was only identified when Hofstede's research was reconstructed and administered with the extensive involvement of Chinese
47 researchers to deliberately create a non-western bias (Hofstede and Bond, 1987; Hofstede, 2001).
Based on the work of Minkov (2007), Hofstede has added other two dimensions, as it might reveal aspects of national culture not yet covered in the previous dimensions.
Indulgence versus Restraint (IVR) Monumentalism versus Self-Effacement (MON)
These seven dimensions of culture are used by Hofstede (2008) to measure the differences between cultures.
Power Distance Index(PDI)
Power distance is a measured of the interpersonal power or influence between boss and subordinate as perceived by the less powerful of the two. (Hofstede, 2001). The term power distance is derived from Mulder (1976, 1977) who defines power as the potential to determine or direct, to a certain extent, the behavior of other person(s) and power distance as the degree of inequality between a less powerful Individual and a more powerful Other; in which both belong to the same social system.
Hofstede (2001), borrowing Mulder's definition, described power distance in a hierarchy as the difference between the extent to which Boss can determine the behavior of Subordinate and the extent to which Subordinate can determine the behavior of Boss. This term refers the measuring extent which the less powerful members of organizations, institutions or groups like the family, accept and expect that power is distributed in an unequal way but defined from below, not from above. The Power Distance Index (PDI) is a degree of dependence in relationships (Hofstede, 2001) where high values indicate a national culture where there is a significance degree of dependence by subordinates on their manager. According to this author,
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inequality in society may emerge in multiple spheres like social status, prestige, wealth, power and physical or mental characteristics. Power distance is related to how the less powerful expect or accept inequality and how each culture justifies authority using its major values.
In a High Power Distance Culture: It‘s acceptable for a supervisor to display his authority Superiors rarely give their subordinates important work If something goes wrong, the subordinates are usually blamed for not doing their proper job/role Managers rarely interact or socialize with workers Class distinctions are emphasized Centralized decision structures, more concentration of authority Tall organization pyramids Large proportion of supervisory personnel Hierarchy in organization reflects the existential inequality between higher-ups and lower-downs The ideal boss is a well -meaning autocrat or good father; sees self as benevolent decision maker Managers rely on formal rules Subordinates expect to be hold Authoritative leadership and close supervision lead to satisfaction, performance and productivity Subordinate-superior relations polarized, often emotional No defense against power abuse by superior Subordinates influenced by formal authority and sanctions; MBO cannot work Innovations need good support from hierarchy Privileges and status symbols for managers are expected and popular Wide salary range between top and bottom of organization Managers feel underpaid Frequent role ambiguity and overload Information constrained by hierarchy
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White-collar jobs valued more than blue-collar jobs
In a low Power Distance Culture: Supervisors are expected to treat employees respectfully Subordinates may do important work, thus having the opportunity to get promoted quickly If something goes wrong, the superior/authority figure is usually blamed for having unrealistic expectations or being too strict Managers socialize and interact with workers more often Decentralized decision structures; less concentration of authority Flat Organization pyramids Small proportion of supervisory personnel Hierarchy in organizations means an inequality of roles, established for convenience The ideal boss is a resourceful democrat; sees self as practical, orderly ad relying on support Managers rely on personal experience and on subordinates Subordinates expect to be consulted Consultative leadership leads to satisfaction, performance and productivity Subordinate-superior relations pragmatic Institutionalized grievance channels in case of power abuse by superior Subordinates influences by bargaining and reasoning; MBO is feasible Innovations need good champions Managers involved in relevant purchasing decisions Privileges and status symbols for managers are frowned upon Narrow salary range between top and bottom of organization Managers feel adequately paid Possibilities to escape from role ambiguity and overload Openness with information, also to non superiors Manual work same status as clerical work
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Individualism versus Collectivism
This cultural dimension deals with the problem identity and reflects that is the degree to which individuals are integrated into groups. Hofstede (200l) describes Individualism versus Collectivism as related to the integration of individuals into primary groups. As Triandis (2002) observed, in collectivism cultures people like to give priority to their group goals then to their personal goals. There are societies in which people from birth onwards are integrated into strong, cohesive in-groups, often extended families (with uncles, aunts and grandparents) which continue protecting them in exchange for unquestioning loyalty. On the individualist side, there are societies in which the ties between individuals are loose: everyone is expected to look after him/herself and his/her immediate family only (Hofstede, 2001).
Hampden, Tumer and Trompenaars (2000) addressed the same concept labeling them individualism and communitarianism. The decisive contrast between individualism and communitarianism, according to Hampden, Turner and Trompenaars, is the extent to which the individual is self—made and the extent to which the wider system is responsible for personal success.
Individualist culture is characterized by: "I" identity. Promotes individual goals, initiative and achievement. Each person is encouraged to stand out, be unique and express themselves. No need to fit in or conform to group or society. Less distinction between in-group and out-group. Relying or being dependent on others is seen as shameful. People are encouraged to do things on their own, to rely on themselves. Employees supposed to act as "economic men"
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Hiring and promotion decisions should be based on skills and rules only Employee commitment to organization high In business, task and company prevail over personal relationships Organizational success attributed to withholding information, not openly committing and avoiding alliances Employees and managers report working individually More control over job and working conditions, longer hours worked Management is management of individuals Composition of work groups based o individual criteria Incentives to be given to individuals
Collectivist culture is characterized by: "We" not "me" orientation. Each person is encouraged to conform to society, to do what is best for the group and to not openly express opinions or beliefs that go against it. Group, family or rights for the common good seen as more important than the rights of individuals. Fitting in or conforming to group or society is required. Employees act in the interest of their in-group Employee commitment to organization low In business, personal relationships prevail over task and company Organizational success attributed to sharing information,openly committing oneself and political alliances. Employees and managers report teamwork, personal contacts and discrimination at work Less control over job and working conditions; fewer hours worked
Masculinity versus Femininity
The basic dilemma in the fourth dimension centers on gender roles as a cultural differentiator. Hofstede (2001) describes this dimension as the emotional roles division between men and women which is another
52 fundamental issue for any society. It has been found that, in all countries in the world, a more differentiated role distribution between genders corresponds to a more demanding society in which there is more emphasis on achievements than on quality of life.
According to Hofstede (2001) masculinity is situated in a society whose social gender roles are highly different. Men are supposed to be assertive, tough and focused on material success whereas women are supposed to be more modest, tender and concerned with the quality of life. Femininity pertains to societies in which social gender roles overlap: Both men and women are supposed to be modest, tender, and concerned with the quality of life. Cultures with high masculinity values stress on fairness, competition and performance. A manager in a masculine culture will seek to resolve conflicts by fighting them out, while in a feminine culture the manager will seek conflict solution through compromise and negotiation (Hofstede, 1994, 2001).
Characteristics of a masculine culture: Priorities are achievement, wealth, expansion Live in order to work Meaning of work for workers: security, pay and interesting work Stress on equity, mutual competition and performance Managers are culture heroes Managers expected to be decisive, firm assertive, aggressive, Successful managers seen as having solely male characteristics Fewer women in management Larger wage gap between genders Women choose male boss Career ambitions are compulsory for men, optional for women Managers hold ambitious career aspirations Managers more prepared to uproot their families for career reasons
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Women in management take having careers for granted and adapt their families preference for higher pay.
Characteristics of a feminine culture Work in order to live Meaning of work for workers: relations and working conditions Stress on equality, solidarity and quality of work life Managers are employees like others Managers expected to use intuition, deal with feelings and seek consensus Successful managers seen as having both male and female characteristics More women in management Smaller wage gap between genders Women choose female boss Career ambitions are optional for both men and women Managers hold modest career aspiration Managers less prepared to uproot their families for career reasons Women in management take having families for granted and adapt their careers Preference for smaller companies Preference for fewer hours worked
Uncertainty Avoidance
Uncertainty avoidance refers to society's tolerance for uncertainty and ambiguity, its stress level in the face of an unknown future. It indicates to what extent a culture prepares its members to feel either uncomfortable or comfortable in unstructured situations. Unstructured situations are novel, unknown, surprising, and different from usual. (Hofstede, 2001).
According to Hofstede uncertainty avoiding cultures try to minimize the possibility of such situations by strict laws and rules, safety and security
54 measures. In organizations these take the form of technology, rules and rituals. Their need to avoid uncertainty leads people to seek structure in their organizations, institutions and relationships, avoiding unclear situations.
In cultures with high uncertainty avoidance, people prefer explicit rules (e.g. about religion and food) and formally structured activities, and employees tend to remain longer with their present employer. In cultures with low uncertainty avoidance, people prefer implicit or flexible rules or guidelines and informal activities. Employees tend to change employers more frequently.
Hofstede (2001) cautions that uncertainty avoidance should not be confused with risk avoidance emphasizing that uncertainty can be equated to diffuse feelings of anxiety while risk is focused on something specific.
The term uncertainty avoidance is derived from Cyert and March, (A behavioral theory of the firm, 1963, p.119) it argued that organizations avoid uncertainty in two major ways:
"First, by avoiding the requirement that is correctly anticipate events in the distant future by using decision rules emphasizing short-run reaction to short-run feedback rather than anticipation of long-run uncertain events and solve pressing problems rather than develop long-run strategies.
Second, by avoiding the requirement that anticipates future reactions of other parts of their environment by arranging a negotiate environment. It imposes plans, standard operating procedures, industry tradition, and uncertainty- absorbing contracts on that situation by avoiding planning where plans depend on prediction of uncertain future events and by emphasizing planning where plans can be made self-confirming by some control device".
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Some characteristics of a Low Uncertainty Avoidance culture: Less hesitation to change employers Weak loyalty to employer; short average duration of employment Lower average seniority in jobs Company loyalty in not a virtue Managers should be selected on criteria other than seniority Preference for smaller organizations but little self-employment Optimism about employers' motives Admit dissatisfaction with employer More ambition for advancement and management positions Individual decisions, authoritative management and competition among employees acceptable Risk is valued in business Skepticism toward technological solutions Innovators feel independent of rules Renegade championing Top managers involved in strategy Power of superiors depends on position and relationship Tolerance for ambiguity in structure and procedures Appeal of transformational leader role Many new trademarks granted Precision and punctuality have to be learned and managed Flexible working hours not appealing Superiors optimistic about employees' ambition and leadership Capacities
Some characteristics of a culture high in uncertainty avoidance: Company loyalty is a virtue Managers should be selected on basis of seniority preference for larger Organizations but at the same time much self –employment. Pessimism about employers' motives Don't admit dissatisfaction with employer Lower ambition for advancement and preference for specialist positions
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Ideological preference for group decisions, consultative management, against competition among employees Risk is avoided in business Low tolerance for innovation, prefer to stick to traditional routines. Innovators feel constrained by rules. Strong appeal of technological solutions Rational championing Top managers involved in operations Power of superiors depends on control of uncertainties Highly formalized conception of management Few new trademarks granted Precision and punctuality come naturally Task orientation Flexible working hours popular Superiors pessimistic about employees' ambition and leadership capacities
Long-Term Orientation versus Short-Term Orientation
This fifth dimension was added to distinguish the difference in thinking between the East and West. It is related to the choice of focus for people's efforts: the future or the present. This new dimension was identified through the Chinese Value Survey developed in 1987 by Michael Harris Bond in Hong Kong According to Hofstede (2001) long- and short-term orientation appears to be based on principles suggested in the teachings of Confucius.
The following are the four key Confucian principles as described by Hofstede (2001): 1. The stability of society is based on unequal relationships between people. 2. The family is the prototype of all social organizations. 3. Virtuous behavior towards others consists of not treating others as one would not like to be treated.
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4. Virtue with regards to one's task in life consists of trying to acquire skills and education, working hard, not spending more than necessary, and being patient and persevering.
Hofstede (2001) defined Long Term Orientation as the encouragement of virtues orientated towards future rewards, in particular, perseverance and thrift; therefore high long-term orientation indicates a national culture where there is a significant sense of future. Short Term Orientation stands for the promotion of virtues related to the past and present, in particular, respect for tradition, preservation of "face" and fulfilling of social obligations.
These are some characteristics of the two opposing sides of this dimension: Long Term Orientation Perseverance Ordering relationships by status and observing this order Saving Patience Having a sense of shame Working hard Deferred gratification of need accepted Saving, investing Structured, mathematical problem solving In business, stress on future market position Building of relationships and market position Vertical coordination, horizontal coordination control and adaptiveness
Short Term Orientation Personal steadiness and stability Protecting your "face" Respect of tradition Reciprocation of greetings, favors and gifts Fulfilling social obligations Immediate gratification of needs expected
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Social spending and consumption Unstructured problem solving In business, stress on short-term profits Short-term results: the bottom line Family and business sphere separated
Indulgence versus Restraint
This new dimension has been identified through Minkov's research (2007). Hofstede have not found relation with any of previous five dimensions therefore it have been added as a new dimension. According to Minkov (2007) indulgence stands for a society which allows relatively free gratification of some desires and feelings, especially those that have to do with leisure, merrymaking with friends, spending, consumption and sex.
Cultures with high Indulgence stress on generous spending which can be due to part of self-enhancing attempts to come across as a proud and successful individual who is not squeezing his money to get satisfaction on their desires and feelings. Therefore tipping is far more prevalent than Restraint cultures because their members are mostly proud people who need to be viewed, and view themselves, as successful individuals who can afford to tip. The people are more likely to perceive a need to make a good impression by being generous, not only with their money, but also with their favors and services. When an individual help somebody in need, he/she come across as a sort of hero and that boosts your public image.
Its opposite pole, Restraint, stands for a society which controls such gratification, and where people feel less able to enjoy their lives. Minkov (2007) specified that happiness is associated with a perception of life control, with life control being a source of freedom and of leisure. Societies with high Indulgence tend to co-mingle work and social activities, and generally have a less "serious" attitude toward work than societies with high means for Restraint.
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Monumentalism versus Self-Effacement
In this new cultural dimension Minkov (2007) explained monumentalism stands for a society which rewards people who are, metaphorically speaking, like monuments: proud and unchangeable, whose main facets are pride and self- consistency. In cultures that score high on it, "the human self is like a monolithic monument: proud and hewn out of a single piece of rock".
In cultures monumentalist exists a tendency to have a positive self-regard seek and value positive information about oneself. In terms of self-stability or self- consistency, people are less likely to think dialectically and holistically, it tends to separate opposites rather than view them as two faces of one and the same phenomenon. In these cultures, interpersonal competition is approved because it provides an opportunity to demonstrate personal superiority. Failure would not necessarily be perceived as a problem because the task at which one has failed can always be dismissed as unimportant, when their failure is fully evidenced in one domain then the individual tends to think of personal success stories in other areas.
Because of their approval of interpersonal competition, their members express somewhat greater approval of large income differences and attaching a great importance to helping and service to others.
According to Heine, et. al (2003, 2001) individuals with stable and consistent selves are likely to be self-enhancers and would not be very interested in self- improvement activities, because individuals do not see need to try to improve what is already good enough. Besides, since individuals do not view the human self as flexible and malleable, and would not be easily convinced that self-improvement efforts could bear any fruit. Cultures monumentalist may consider cultural adaptation a sort of treason, because individuals are more proud of who they are, and subscribe to the
60 view that some self attributes, such as values and beliefs, must remain immutable. (Minkov, 2007)
In the other side, Minkov (2007) explained Self-Effacement stands for a society which rewards humility and flexibility. In cultures with high Self- Effacement, people view and describe themselves as flexible individuals whose characteristics can mutate in order to adapt to situations and, are not bothered by apparent personal inconsistencies. People do not need to have an inflated self-regard, because they feel that even if it have deficiencies at the moment and can deal with them through self-improvement activities. (Heine, 2003; Heine et.al, 2001).
In these cultures failure would not necessarily be perceived as a problem because the task at which one has failed can always be dismissed as unimportant, when their failure is fully evidenced in one domain the individuals tend to believe that individuals would probably do poorly on other tasks as well. These individuals are able to suppress their face-saving impulses, admit their mistakes before their peers and repent.
People from cultures characterized by self-effacement adapt relatively easily to foreign environments because their selves are fluid and flexible, are not overly proud of their cultural identity, and do not insist on retaining their cultural heritage. (Minkov, 2007)
2.8 Hofstede‘s Cultural Dimensions and Its Impact On Consumer Consumption Behavior
According to some authors, the usefulness of the concept of culture to explain cultural differences depends on being able to unpack it and identify its components as ―Culture is too global a concept to be meaningful as an explanatory variable‖ (van de Vijver and Leung, 1997: 3; Leung, 1989, Schwartz, 1994, Bagozzi, 1994 and Samiee and Jeong, 1994). The use of a limited number of dimensions to compare cultures has anthropological
61 roots. Early scholars in this field argued that cultural diversity results from different answers in different societies to similar universal questions: ―the existence of two sexes; the helplessness of infants; the need for satisfaction of the elementary biological requirements such as food, warmth and sex; the presence of individuals of different ages and of differing physical and other capacities‖ (Kluckhohn in Hofstede, 1984: 36). Parsons and Shills (1951) delineated cultural pattern variables or cultural dilemmas that define and categorize cultures: affectivity versus affective neutrality; self- orientation versus collectivity orientation; universalism versus particularism; ascription versus achievement and specificity versus diffuseness. These contributions have influenced modal personality studies, focusing on ―to what extent do the patterned conditions of life in a particular society give rise to certain distinctive patterns in the personality of its members?‖ (Inkeles and Levinson, 1969: 118).Inkeles and Levinson (1969) proposed the terms social character, basic personality structure, and national character.
Identifying reliable dimensions to synthesize major distinguishing aspects of culture could be a major contribution to cross-cultural research. It would provide an alternative to conceptualise and measure culture as a complex, multidimensional structure rather than as a simple categorical variable. Nonetheless, using dimensions to capture the multidimensional culture construct has not been without criticism. Namely, this approach has been criticized for its failure to fully capture all relevant aspects of culture:
It would be a triumph of parsimony if many diverse cultural differences in decision making could be explained in terms of a single cultural disposition, such as individualism–collectivism. For this reason, the dispositional approach has attracted many advocates. Yet, the existing evidence for the dispositional view falls short (Briley et al., 2000: 159).
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While this criticism is valid, the benefits of this approach for international marketing and cross-cultural research outweigh its limitations:
The identification of reliable dimensions of cultural variation should help create a nomological framework that is both capable of integrating diverse attitudinal and behavioral empirical phenomena and of providing a basis for hypothesis generation (Smith et al., 1996: 232).
Additional emic dimensions are probably needed to characterize unique aspects of particular cultures. However, in the interest of parsimony, it is incumbent on the researcher to demonstrate that an apparently emic cultural variation cannot be represented adequately as a point along a universal dimension (Schwartz, 1994: 88).
Past cross-cultural studies have mainly used value instruments in assessing the attitudes of respondents. Examples include the Rokeach Value Survey, the List of Values (LOV), and the Values and Lifestyles (VALS 2) (e.g. Kahle, Beatty and Homer 1989; Mager and Wynd 1993). Other methods are the use of focus groups, content analyses and field observations (e.g. Gregory and Munch 1997). There is a need to use a tried-and-tested model of culture so to establish more accurately the influence of cross culture on consumer behavior.
In a study that made a tremendous impact on the research field, Hofstede (1980) conducted a massive study of IBM employees across forty countries, and came up with four cultural dimensions that effectively segmented these employees from various countries according to the way peope behave in the work situation. These four dimensions areindividualism-collectivism, uncertainty avoidance, masculinity-femininity and power distance. Researchers have since used these results by Hofstede in areas other than the organisation-work context (e.g. Lynn, Zinkhan and Harris 1993; Nakata and Sivakumar 1996). The issue of individualism-collectivism has especially garnered much interest (Kim et al. 1994), and has been tried and tested in
63 various situations among people across cultures (e.g. Yamaguchi 1994; Triandis et al. 1986; Matsumoto, Kudoh and Takeuchi 1996). There is reason to believe that Hofstede‘s model can be used in assessing differences among consumption behaviors. This is because different cultural values, customs, as well as religious beliefs can be adequately captured by the dimensions named in Hofstede‘s model.
2.8.1 Individualism-Collectivism and Its Impact on Consumer Consumption Behaviors This refers to ―the relationship between the individual and the collectivity that prevails in a given society‖ (Hofstede 1980). It is reflected in the way people live together, and is intimately linked to societal norms (Hofstede 1980). Individualism pertains to societies where ties between people are loose, and everyone is expected only to look after himself or herself and his or her immediate family. Collectivism on the other hand, refers to societies in which people are integrated into strong, cohesive ingroups, which throughout people‘s lifetime continue to protect them in exchange for unquestioning loyalty (Hofstede 1991). There are value implications involved here. For example, in some cultures, individualism is widely accepted and seen as a blessing, while in other cultures, it regards individualism as alienating and as a character flaw. The focal issue involved here is the element of self concept, and this differs across Western and Asian cultures (Hofstede 1980). For instance, the Chinese have a word ren for ―man‖ to describe a ―human constant‖. This refers to the individual himself, and his societal and cultural surroundings which make his existence meaningful. In society, this affects not only people‘s mental programming, but also the structure and functioning of institutions such as the family, religious and political aspects.
The consumer behaviors associated with the cultural dimension of individualism-collectivism are all pertaining to the behavior of people in groups, their relationships with others and their perceptions of themselves in relation to others. These consumer behaviors are reference group influence,
64 information sharing, self concept, family orientation, opinion leadership and ethnocentrism.
Reference Groups Park and Lessig (1977) defined a reference group to be an actual or imaginary individual or group conceived of having significant relevance upon an individual‘s evaluations, aspirations or behavior. There are three ways reference groups can influence behavior – informational, value expressive and utilitarian (Park and Lessig 1977). Reference groups have also been defined as groups which the individual takes as a frame of reference for self- evaluation and attitude formation (Witt 1970).
According to Gregory and Munch (1996), individuals in a collectivist culture feel that it is important to conform to the goals of a collective ingroup such as the family, tribe or religious group. In addition, people who are of a collectivist culture participate in more group activities, are more concerned with the interests of the ingroup, and feel a greater need to conform to ingroup opinions (Hui and Triandis 1986).
As the extent of reference group influence depends on group identity and behavior, there exists the possibility that the cultural dimension of individualism-collectivism plays a role in interpersonal influence in consumption behavior. Shaw (1971) studied the effects of communications and individual interactions on group cohesiveness and found that the greater the group cohesiveness, the more influence reference groups have in consumption behavior. In other words, people in a collectivist culture want to belong and want to conform to an ingroup. And because of this need, people in this culture are correspondingly more inclined to be influenced by members of the same ingroup.
In a study by Childers and Rao (1992), the influence of the family on individuals‘ product and brand decisions in the United States (an individualistic country), and Thailand (a collectivist country) was examined. It
65 was found that the influence of referents other than family members was relatively less powerful in extended families (in Thailand) compared to nuclear families (in the United States). For instance in Thailand, the relatively larger number and variety of family members such as uncles, aunts and cousins creates a family-based identity and thus reduces peer influence. This supports the suggestion that a collectivist country will be more influenced by members of the ingroup, in this case the extended family.
In a study on Hispanic ethnic identification on reference group influence conducted by Webster and Faircloth III (1994), it was found that people who identified strongly with their ethnic roots were significantly more likely to be subject to utilitarian or value-expressive influence. People also had a higher tendency to be influenced by the expectations of close acquaintances and family members in brand selection. In other words, such people were more influenced by people who were considered as members of their ingroup.
Hence, it can be seen that people in a collectivist culture have a greater need to conform to the opinions and expectations of the members of their ingroup. A greater group identity or a more cohesive group allows for a greater influence by group members on an individual‘s product choices and buying decisions. Therefore, the following proposition is presented:
Information Sharing Information sharing is defined as the extent with which individuals transmit information to others about consumption domains (Hirschman 1983). It looks at the degree to which individuals share information or involve the people around them in their search for information on consumption and buying behavior. It is also dependent upon social ties and social influence. People in a closely-knit group will be more inclined to share information with the people around them as compared to those who are individualistic.
Hirschman (1981) conducted a study on Jewish ethnicity and information seeking and processing. In the study, it was suggested that a person of
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Jewish ethnicity would exert a stronger effect on a fellow Jew‘s behavior compared to the non-Jews. This is because a Jew is thought to be born into a culture and religion, and is therefore expected to adhere to the ethnic dimensions. Because of this common identity, comminity is more collectivistic than non-Jews. It was found that the Jewish subjects indeed differed significantly from non-Jewish subjects in information seeking, product information transfer and cognitive characteristics relevant to consumption information processing. This is consistent with the premise that culture is one of the determinant factors in information sharing. Similarly, Webster (1992) concluded that ethnic identification, which resulted in a more collective identity, had a significant effect on information search patterns as the respondents sought the advice of family members and other members of the ingroup before any purchases are made.
Therefore, information sharing is a consumer behavior that differs across cultures, depending on the propensity to share such information. and a more collective group, which values ties within the ingroup, will result in individuals who are more inclined to use people from within the group as their information sources compared to individualistic people, who do not seek information from the people around them that frequently. Thus, the following proposition is formulated:
Self Concept Self concept can be defined as a cognitive appraisal of the attributes about oneself (Hattie 1992), and it both mediates and regulates behavior. In an individualistic culture, the emphasis is on self orientation and identity is based on the individual (Hofstede 1980). In a collectivist culture, the orientation is on collectivity and identity is derived from the social system (Hofstede 1980).
Research has shown that there are two construes of the self that can be identified in people. In Western societies, the independent self concept is predominant (Abe, Bagozzi and Sadarangani 1996), and inferences of identity are usually based on individual characteristics such as age, occupation,
67 behavior and material symbols of status (Belk 1984a). This is characterised by an emphasis on personal goals and achievement (Abe, Bagozzi and Sadarangani 1996). Hence, people with the independent self concept tend to see themselves as distinct individuals.
The other construct is the interdependent self concept. This is commonly found in non-Western cultures (Abe, Bagozzi and Sadarangani 1996). This idea of self concept involves inferences that are based on group characteristics such as family background, and national historical achievements. The concept of interdependent self is shaped mainly by the fact that people are part of a cohesive whole, family, clan or nation (Belk 1984a). It was found that the interdependent self concept is characterised by greater emphasis on group goals, fitting in with others, and understanding others. Such people tend to be obedient, sociocentric, and relation oriented (Abe, Bagozzi and Sadarangani 1996). For instance, the
Japanese conceptualisations of the self were more integrated and less distinct compared to the Americans (Abe, Bagozzi and Sadarangani 1996). The main aspect is the definition of the self in different cultures. This involves the degree of distinction of the self – whether people in a particular culture see themselves as an integrated whole or as distinct individuals. This leads to the following proposition:
Family Orientation As a sense of belonging and maintenance of good relationships with others commands an important role in a collectivist society, it can be seen that family orientation is a critical aspect of collectivism. In an individualistic culture, people have a self identity rather than identity that is developed from the social system (Hofstede 1980). Correspondingly, will rank lower when it comes to family orientation.
This is evident from research on lifestyle aspects. Tai and Tam (1997) found that women in Taiwan and China were significantly more family oriented than
68 women from Hong Kong. This was attributed to the fact that Taiwanese and Chinese women were more influenced by Confucianism than women in Hong Kong. As a result, their philosophy of living emphasised the family system, and had a strong sense of family responsibility. On the other hand, Hong Kong women were fully exposed to the Western culture and this resulted in them being more individualistic and less family oriented.
In another study by Lee and Ro Um (1992), it was found that the major difference between Koreans and Americans in their evaluations of product attributes was the different weights each put on the importance of the family. Koreans tended to be more family oriented in their product evaluations than the Americans. This meant that the products were selected according to their family‘s needs, rather than their own personal wants. It was suggested that the discriminating variable of individualism versus collectivism was the factor that accounted for this difference.
Hence, it can be concluded that a culture that places emphasis on relationships with others and on the sense of belonging will also place greater importance on family ties, and this will be manifested in their consumption patterns. Thus, the following proposition is presented:
Opinion Leadership This refers to the tendency of individuals to influence the attitudes and purchasing choices of others (Schiffman and Kanuk 1997). The strength of the relationships between individuals is the key motivation in an opinion leadership process as the opinion leader has nothing to gain from sharing the information. It thus implies that people in a closely-knit community will be more willing to share their opinions with others in the same group.
Ownbey and Horridge (1997) found that there was a significant difference in shopping opinion leadership between high and low acculturated Chinese- and Filipino-Americans in America. This was attributed to the fact that Asians typically value family, group and clan relationships (Yau 1988). As a result,
69 tend to share consumer advice with people in their ingroup. Once become acculturated in a country like America, people tend to adopt some of the individualistic values, and ties within the ingroup become less important. Thus, these people are less inclined to give shopping advice and suggestions to others (Ownbey and Horridge 1997). Therefore, the following proposition is developed:
Ethnocentrism The concept of ethnocentrism represents the universal propensity for people to view their own group as the center of the universe, to elucidate other social units from the perspective of their own group, and to reject people who are culturally dissimilar while blindly accepting those who are culturally like themselves (Booth 1979; Worchel and Cooper 1979).
In other words, ethnocentrism is a system whereby people distinguish between social ingroups with which they identify and out-groups which they regard as very different (Shimp and Sharma 1987). Therefore, ethnocentrism gives an individual a sense of identity and feelings of belongingness. Thus it can be suggested that a collectivist culture, which places a greater emphasis on group identity and consciousness will show a greater tendency of ethnocentrism. Hence, the following proposition is formulated:
2.8.2 Uncertainty Avoidance and Its Impact on Consumer Consumption Behaviors A basic fact of human life is the uncertainty regarding the future and the means and ways through which human beings try to cope with this uncertainty using technology, law and religion. But will always face an uncertain future and are conscious of it. Furthermore, as extreme uncertainty causes anxiety and stress, society has to develop ways to cope with living on the brink of an uncertain future. Technology, law and religion thus become the means through which it defends us against this prevailing uncertainty (Hofstede 1980).
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Uncertainty avoidance can be defined as the extent to which the members of a culture feel threatened by uncertain or unknown situations (Hofstede 1991). It also addresses the methods in which society tackles unknown aspects of the future. Different societies and cultures deal with uncertainty in different ways, and these are transferred and reinforced through institutions such as the state, the school and the family. and it is reflected in the collectively held values of the people in each particular society. For instance, technology, rules and rituals are some of the ways of coping with uncertainty in organisations.
One of the main concepts behind uncertainty avoidance is the ability to tolerate risk. Therefore, when identifying the consumer behaviors related to uncertainty avoidance, it is necessary to determine those with an element of risk or uncertainty involved as these will be the behaviors most affected. Hence, the consumer behaviors discussed below are perceived risk, brand loyalty, innovativeness and information search.
Perceived Risk The concept of perceived risk has been defined as consumers‘ perceptions of the uncertainty and the adverse consequences of buying a product or service (Dowling and Staelin 1994). In making purchase decisions, risk is involved because all consumers have buying goals associated with the purchase. When consumers feel that these goals may or may not be attained in a purchase, risk comes in (Hoover, Green and Saegert 1978). Therefore, the greater the sense of uncertainty the consumer perceives in a purchase and the greater the consequences of buying the wrong product, the greater the perceived risk experienced by consumers.
Perceived risk thus corresponds to the cultural concept of uncertainty avoidance. Individuals high in uncertainty avoidance have a lower tolerance for ambiguity, and experience higher anxiety and stress in their lives. In addition, are also less willing to take risks in life. Therefore, when these people perceive a high risk associated with a product or service, will not
71 purchase this product or service. These people will look for less risky alternatives.
In a study by Gentry, Tansuhaj, Manzer and John (1988), the relationship between three cultural values – fate orientation, religious commitment and cultural adherence – and perceived risk was studied. The study posited that these three factors might explain cross-cultural differences found in perceived risk because it played an important role in forming consumers‘ attitudes, values and behavior. It was found that there was a correlation between cultural orientation and perceived risk. That is, those who were more religious and more fatalistic associated non-technical products with greater risk.
Hence, the level of perceived risk varies from culture to culture, and this is dependent on the cultural values of tolerance for risk and uncertainty. People who are less capable of handling risk are more likely to view perceived risk to be higher for any particular product than those who take risk in their stride.
This results in the following proposition: Brand loyalty refers to the consistent preference and purchase of the same brand in a specific product or service category (Schiffman and Kanuk 1997). It was found that diverse consumer groups associated brand loyalty with risk (Hoover, Green and Saegert 1978) and this association is a positive relation (Kanwar and Pagiavlas 1992). In other words, when consumers perceive that the risk associated with a particular product or service category is high, customer will tend to remain loyal to one brand so as to minimise the uncertainty and any unpleasant consequences that may occur as a result of the switching of brands.
Kanwar and Pagiavlas (1992) found that U.S. and Indian consumers use brand loyalty as a method of reducing risk. Hui et al. (1993) studied fourteen lifestyle variables involving English, French, Italian and Greek Canadians and found significant differences in thirteen of the variables, including brand loyalty.
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Thus, brand loyalty stems from the level of uncertainty and ambiguity an individual is willing to tolerate in life. This relates to the cultural dimension of uncertainty avoidance and has been shown to differ across cultures.
Thus, the following proposition is derived: Innovativeness can be defined as the willingness of consumers to adopt new products in various consumption domains (Hirschman 1981). This is related to the ability to tolerate risk and uncertainty. Intuitively, individuals who cannot tolerate risk and ambiguity will not be inclined to seek new products and therefore will not be innovators. In this case, these are the people high in uncertainty avoidance and cannot tolerate ambiguity in their lives.
A study by Rogers (1957) found that the willingness to accept change and the degree of rigidity of individuals were significantly related to their adoption of new products. Hui et al. (1993) found significant differences between different cultural groups and their brand and product innovativeness. One contributing factor could be differences in fate orientation. Individuals who were more fatalistic were also more likely to avoid uncertain situations. In addition, the degree of religious commitment was also found to have a weak effect on the level of innovativeness (Tansuhaj et al. 1991). Therefore, innovativeness is dependent on the propensity of an individual to tolerate the risk and uncertainty associated with a new or totally different product.
This leads to the following proposition: Information search An individual who has less tolerance for ambiguity and fewer propensities for risk taking will also have a need to engage in a thorough information search before he purchases any new product. This also applies for any product which may cause unpleasant consequences if a wrong buying decision is made. In other words, information search takes place when there is a high level of uncertainty associated with a purchase.
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The ability to tolerate risk and uncertainty has been shown to influence consumers‘ information search behaviors (Garner and Thompson 1986). Hirschman (1983) also found that there were significant differences between cultures in information transfer which can be linked to the degree of uncertainty avoidance in each culture. In other words, a person who rates more highly in uncertainty avoidance will tend to seek out more information sources so as to minimise any uncertainty involved in the purchase.
2.8.3 Masculinity versus Femininity and Impact on Consumer Consumption Behaviors Another fundamental fact that different societies deal with in different ways is the duality of the sexes. The main issue in this concept is whether biological differences between males and females should have any implications on their societal roles (Hofstede 1980). The agents of socialisation – families, schools, peer groups and the media – are crucial in sex role distribution and transference of ideas in society. The predominant pattern of socialisation however, is for men to be assertive and for women to be nurturing. This pattern leads to men being more dominant in politics, economics, and within the household.
In general, girls are usually socialised towards nurturance and responsibility while boys are socialised towards achievement and self-reliance (Barry et al. 1959). In addition, males tend to be more assertive and females more sensitive to social interdependence (McClelland 1975). Therefore, male behavior is associated with autonomy, aggression, exhibition and dominance; female behavior with affiliation, helpfulness, and humility (Hofstede 1980: 263).
The masculinity-femininity dimension developed by Hofstede (1980) is thus derived from the sex roles characteristics. It further states that masculine cultures will place more emphasis on tasks, money, achievements, and performance, while feminine cultures value the quality of life, helping others,
74 preserving the environment and not drawing attention to oneself (Hofstede 1980).
The fundamental idea behind masculinity is the differentiation of sex roles within society. This idea is manifested when it comes to decision making in the family.
An analysis of the relationship between masculinity and family decision making is carried out in the following.
Family Decision Making A wealth of research has been done on family decision making (e.g. Webster 1994; Hempel 1974). This area of study is particularly of interest in the context of the cultural dimension of masculinity-femininity because sex role attitudes and perceptions are ascribed through cultural norms and these attitudes influence the household decision role structure and responsibility (Kim, Laroche and Zhou 1993; O‘Connor, Sullivan and Pogorzelski 1985). Blood and Wolfe (1960) also stated that the degree of influence by either the husband or wife in a family decision is contingent upon the level of traditional marital values present in the family. O‘Connor, Sullivan and Pogorzelski (1985) further emphasised the point in their study when it concluded that decision situations were believed to conform to either masculine or feminine roles across widely differing cultures.
This is also evident in past research. For instance, Kim, Laroche and Zhou (1993) found that a more modern sex-role attitude of the husband resulted in an egalitarian approach to task sharing by the couple. Webster (1994) found that there was a positive relationship between ethnic identification and husband dominance in decision making within the Hispanic community. This indicates that the more couples identity with, and have been socialised by the ethnic basis of highly differentiated sex roles, the more it conforms to husband domination.
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Delener (1992) found that in the traditionally male dominated cultures where the father is seen as the absolute head of the family and has full authority such as the Latin Americans, the Italian Americans and the Irish Americans, the husbands were the major influencer in making purchase decisions. This was in contrast to the Cubans and Puerto Rican Americans where there was more joint decision making. This was attributed to the fact that the latter two cultures were increasingly exposed to Anglo-American society and as a result, their family and sex-role related values were becoming more feminine. In a similar study, Imperia, O‘Guinn and MacAdams (1985) found that Mexican- Americans (a masculine culture) tended to be more husband dominant in purchasing decisions than Anglo families who engage in more joint decision making. The stage in the decision making process was also found to be a determinant of the degree of joint decision making by husband and wife (Hempel 1974). It was concluded that the nature and type of the decisions affected the role performance of husband and wife.
To summarise, it can be concluded that decision making in the family differs across cultures and is dependent upon the extent to which the couple‘s values belong to the traditional patriarchal system where the husband dominates, or the more modern view of joint decision making.
2.8.4 Power Distance and Its Impact on Consumer Consumption Behaviors The concept of human inequality is the basic issue involved in power distance. Such inequality can occur in areas such as prestige, wealth and power and these are given different emphasis in different societies. However, a ―pecking order‖ will always exist in every society. The only variation across cultures is how dominance is worked out in human social existence. Some have elaborate, formal structures of dominance; others go to great lengths to de-emphasise dominance (Hofstede 1980). The terms caste, estate and class are the three types of rank inequalities used to differentiate society into different functional areas (Bohannan 1969).
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Mulder (1977) defined power distance as ―the degree of inequality in power between a less powerful individual (I) and a more powerful other (O), in which I and O belong to the same (loosely or tightly knit) social system‖ (Mulder 1977). From a more rounded perspective, power distance can be defined as ―the extent to which less powerful members of organisations and institutions (like the family) accept and expect that power is distributed unequally‖ (Hofstede and Bond 1988).
Consumer behaviors that are associated with power distance should be influenced by cultural differences associated with the degree of respect given to authoritative and powerful figures in societies. In view of this, opinion seeking is suggested as the one factor that can vary according to differences in power distance.
Opinion Seeking Opinion leadership refers to the behavior of consumers when these people influence others‘ purchase decisions (Mowen 1990), while opinion seekers are those who actively seek advice from others (Engel et al. 1990). There is an analogous relationship between the two.
In order to understand opinion seeking, it is essential to look at the underlying motivations of opinion seekers (Flynn, Goldsmith and Eastman 1996). Katz and Lazarsfeld (1955) made the point that the desire to be a member of a certain group is a motivating factor in an individual adopting the values and beliefs of the group‘s leaders. By looking to the leaders for opinions on products, opinion seekers can also place themselves within that social group. Another study on listener motivation (Dichter 1966) stated that opinion seekers look towards several groups of people for recommendations and opinions on products. These included commercial authorities, such as professional experts who earned their authority in a particular field on the basis of training and work; and celebrities whose authority is attributed to show business.
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Yau (1988) stated that the Chinese have a strong respect for authority, and expect people in authority to teach and guide them. It was suggested in the study that since the Chinese follow the directions of authority, advertisements targeted at the Chinese will be more effective when societal leaders are used to recommend products or services to the consumers.
As a result, the distinction between opinion leaders and opinion seekers may become more salient in cultures that are high in power distance. For instance, in Indonesia, a country high in power distance, there is evidence to suggest that opinion leaders are wealthier than opinion seekers (Marshall and Gitosudarmo 1995). This does not occur in many Western countries that are low in power distance. It was also found that in India, Indonesia and Korea, three countries high in power distance, opinion leaders tended to be older than opinion seekers. This suggests that Asians, who are generally higher in power distance than their Western counterparts, believe in certain figures of authority, and believe that power is distributed unequally. Hence, Asians feel that a person has to be of a certain age, and own certain amounts of wealth to qualify as an opinion leader. He has to possess ―power‖ over them. This provides the basis to suggest that there will be significant numbers of opinion seekers in these countries and may look up to people in authority for their opinions on products. But in low power distance countries, the authority of opinion leaders is less recognised and there will be fewer people who are interested in their opinions. Therefore, the following proposition is presented:
2.9 Comparison of Hofstede's cross cultural framework with other models
Several scholars discuss the choice of dimensions most appropriate for conceptualizing and operationalizing cross culture (Bond, 1987, Clark, 1990, Dorfman and Howell, 1988, Hofstede, 1984, Hofstede, 1991, Inkeles and Levinson, 1969, Keillor and Hult, 1999, Schwartz, 1994, Smith et al., 1996 and Steenkamp, 2001). However, Hofstede‘s framework is the most widely used national cultural framework in psychology, sociology, marketing, or
78 management studies (Sondergaard, 1994 and Steenkamp, 2001). Hofstede used 116,000 questionnaires from over 60,000 respondents in seventy countries in his empirical study (Hofstede, 1984, Hofstede, 1991 and Hofstede, 2001). He created five dimensions, assigned indexes on each to all nations, and linked the dimensions with demographic, geographic, economic, and political aspects of a society (Kale and Barnes, 1992), a feature unmatched by other frameworks. It is the most comprehensive and robust in terms of the number of national cultures samples (Smith et al., 1996). Moreover, the framework is useful in formulating hypotheses for comparative cross-cultural studies. Consequently, Hofstede‘s operationalization of cultures (1984) is the norm used in international marketing studies (Dawar et al., 1996, Engel et al., 1995, Samiee and Jeong, 1994, Sivakumar and Nakata, 2001 and Sondergaard, 1994). Table 1 compares Hofstede‘s dimensions to other approaches for unpacking the concept of culture. It shows a high level of convergence across approaches, supports the theoretical relevance of Hofstede‘s framework, and justifies further use of his dimensions
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Table 2.9.1.Comparison of Hofstede's cross cultural framework with other models
Refers to theoretical contributions. The remainders are empirical studies.
2.10 Significance of Hofstede's Cross Cultural Dimensions in Cross Culture Consumer Behavior Studies
Although Hofstede used a work-related context and originally applied his framework to human resources management, it is being used increasingly in business and consumer behavior studies (Milner et al., 1993, Sondergaard,
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1994, Engel et al., 1995, Dawar et al., 1996, Sivakumar and Nakata, 2001 and Shamkarmahesh et al., 2003).
These dimensions have been used to compare cultures, to support hypothesis, and as a theoretical framework for comparing cultures even if, in some cases, the actual scores are not used and the dimensions are measured with new or adopted instruments (Lu et al., 1999). This research has confirmed the relevance of these cultural dimensions for international marketing and consumer behavior.
Notably, Collectivism influences innovativeness (Lynn and Gelb, 1996, Steenkamp et al., 1999, Yaveroglu and Donthu, 2002, Yeniyurt and Townsend, 2003 and van Everdingen and Waarts, 2003), service performance (Birgelen et al., 2002), and advertising appeals (Albers-Miller and Gelb, 1996).
Uncertainty avoidance impacts information exchange behavior (Dawar et al., 1996), innovativeness (Lynn and Gelb, 1996, Steenkamp et al., 1999, Yaveroglu and Donthu, 2002, van Everdingen and Waarts, 2003 and Yeniyurt and Townsend, 2003), and advertising appeals (Albers-Miller and Gelb, 1996).
Power distance affects advertising appeals (Albers-Miller and Gelb, 1996), information exchange behavior (Dawar et al., 1996), innovativeness (Yaveroglu and Donthu, 2002, Yeniyurt and Townsend, 2003 and van Everdingen and Waarts, 2003), and service performance (Birgelen et al., 2002).
Masculinity impacts sex role portrays (Milner and Collins, 1998), innovation (van Everdingen and Waarts, 2003), and service performance (Birgelen et al., 2002). Finally, long-term orientation influences innovativeness (van Everdingen and Waarts, 2003).
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Table 2.10.1 Impact of Hofstede's dimensions in international marketing and consumer behavior IDV UAI PDI MAS LTO IVR MON
Innovativeness X X X X X
Service performance X X X X
Advertising appeals X X X
Information exchange X X X behavior
Sex role portrays X
Power Distance Index (PDI) Uncertainty Avoidance Index (UAI) Individualism and Collectivism (IDV) Masculinity and Femininity (MAS) Long term versus Short term orientation (LTO) Indulgence versus Restraint (IVR) Monumentalism versus Self-Effacement (MON)
2.11 Operationalizing Cross Culture using Hofstede's Cross Culture dimensions
Multiple methods should be used to assess cultures as no single method ―is sufficient to comply with all of the methodological and conceptual requirements for the valid identification of a cultural group‖ (Lenartowicz and Roth, 1999: 788). Thus, a cross-cultural study of exploratory and risk-taking
82 behavior used a three-method approach to assess culture (Soares, 2005): regional affiliation, indirect values, and direct value inference. Given its uniqueness in using a multi-measure assessment of culture, this article describes this study in more detail.
The regional affiliation approach builds from the use of proxies. Soares (2005) uses nationality to reflect culture. Although caution is recommended in using this approach, there is empirical support for between-country differences (Hofstede, 1984 and Steenkamp, 2001). Nation can be used as a proxy for culture since members of a nation tend to share a similar language, history, religion, understanding of institutional systems, and a sense of identity (Dawar and Parker, 1994 and Hofstede, 1984), making its use a common approach to operationalize culture (e.g., Hoover et al., 1978, Dawar and Parker, 1994, Steenkamp et al., 1999 and Yeniyurt and Townsend, 2003).
Secondly, Soares (2005) uses benchmarks, the indirect values approach, which consists of ascribing characteristics of cultures based on other studies. She uses Hofstede's (1984) scores to classify Portugal and the UK as two countries with opposite scores on Hofstede's dimensions. Portugal is a collectivistic, feminist, long-term oriented, high uncertainty avoidance and high power distance culture while the UK has an opposite profile. For example, the UK scores the highest on individualism and Portugal the lowest of the European countries Hofstede (1984) examines. These countries differ on uncertainty avoidance .Using countries with similarities across some theoretical aspects while being as far apart as possible on others has been recommended to improve reliability and enhance generalizability (Alden et al., 1993 and Sivakumar and Nakata, 2001).
Finally, Soares (2005) uses the direct value inference approach, based on measuring the values of subjects in a sample to infer cultural characteristics. Thus, although Hofstede's classification of cultures provides a starting point for evaluating Cultural Values, the samples were further classified on cultural dimensions in a manner adequate to their characteristics.
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Researchers use different approaches to assess cultural values: using individual values, using individual's perceptions of group values (Leung, 1989), or using what Hofstede terms, ―ecological level of analysis.‖ The analysis that uncovers Hofstede's values follows from correlations among items in each scale and from factor analysis to define the measures using mean scores from respondents aggregated at the national level. However, scholars question the meaningfulness and usefulness of measures obtained based on as ecological level of analysis for micro-level research (Dorfman and Howell, 1988 and Yoo et al., 2001). Individual values are more appropriate predictors of individual behavior ―unless collective Cultural Values are strongly shared by the members of the cultural group‖ (Lenartowicz and Roth, 2001). Dake (1991) has a similar perspective and proposes assessing culture from the ―individual orientations toward what it thinks of as the ethos of a culture or the thought of an age‖ perspective:
Culture provides a collectively held set of customs and meanings, many of which are internalised by the person, becoming part of personality and influencing transactions with the social and physical environment. Hence, orienting dispositions are viewed at the individual level as attributes of personality, to the degree that are held by collectives and may also be viewed as cultural biases (Dake, 1991).
Thus, research should study cultural values at the individual level, using individual's perceptions of group. Following this approach, culture, usually conceived as an attribute at the is measured at the individual level as evidenced by the strength of an individual's belief in key cultural dimensions. However, except for social psychology's operationalization of the individualism/collectivism dimension (Triandis et al., 1988 and Triandis, 1995), validated instruments for measuring cultural values are scarce.
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CHAPTER 3 CROSS-CULTURAL CONSUMER CONSUMPTION BEHAVIOR
This chapter provides a framework that integrates and reinterprets current research in cross-cultural consumer behavior and impact of cross culture on consumption pattern. The framework is of a practical nature in that it can be easily operationalized by managers and consumer researchers interested in understanding how culture shapes consumer behavior. This framework is distilled from a more general model of the relationship between cross culture and consumer behavior. Managers can use the framework as a template to examine how consumers in foreign markets will react to their products or services. For Academic researchers will find the framework useful because it identifies strengths of the current body of literature and the areas that require further attention. Additionally, this chapter attempts to reconcile two different approaches in the study of culture as it affects consumer behavior. Etic and Emic philosophies are seen as two sides of the same coin, each complementing the other. Through the integration of previous work on cross-cultural consumer behavior, our framework provides a global view of the interaction of cross culture and consumer consumption behavior.
3.1 An integrative framework for cross-cultural consumer behavior
The world economy is becoming increasingly cross-cultural. During the next decades, as marketers enter new international markets, an understanding of how culture influences consumer behavior will be crucial for both managers and consumer researchers. This chapter presents a framework that integrates and reinterprets current research in cross-cultural consumer behavior. The framework also serves to identify areas that need further research and can be used as a template for marketers seeking to understand their foreign consumers. The
85 chapter also attempts to integrate from an applied perspective two distinct traditions in the study of culture and consumer behavior: the anthropological approach and the cross-cultural psychology tradition.
3.2 Cross Culture and consumer behavior
3.2.1 Emic and Etic approaches Cross-cultural management researchers have traditionally used Hofstede's (1980, 1997) definition of culture, which equates culture to ``the collective programming of the mind which distinguishes the members of one group or category of people from another'' (Hofstede, 1997, p. 5). The focus of this definition is the comparison of one culture with another. This is an etic definition of culture. Researchers that follow an etic approach in cross-cultural consumer research generally look for universal or culture-free theories and concepts. It searches for variables and constructs common to all cultures that can be directly compared in order to discover how those cultures are different from or similar to each other. This approach is typical of cross-cultural psychology and other comparative social sciences. An alternative approach is the emic methodology, which focuses upon understanding issues from the viewpoint of the subjects being studied. Culture is defined emically as ``the `lens' through which all phenomena are seen. It determines how these phenomena are apprehended and assimilated. Second, culture is the `blueprint' of human activity. It determines the coordinates of social action and productive activity, specifying the behaviors and objects that issue from both'' (McCracken, 1988, p. 73). Emic approaches to culture do not intend to directly compare two or more differing cultures, but promote a complete understanding of the culture of study through ``thick description'' (Geertz, 1973). The methods utilized in conducting emic research do not provide ``culture-free'' measures that can be directly compared. Instead, it provide ``culture-rich'' information. The choice of emic versus etic approaches depends on several important factors, including the nature of the research
86 question, the researcher's resources and training, and the purpose of the study From an applied perspective, the two definitions of culture, emic and etic, can be considered as two sides of the same coin. Culture is a lens, shaping reality, and a blueprint, specifying a plan of action. At the same time, a culture is unique to a specific group of people. By utilizing the research provided by both approaches, it will gain a more complete understanding of the culture(s) of interest.
3.3 The interaction of culture and consumer behavior
Figure 1 depicts a model of the mutual influence of culture and consumer behavior. Different cultures have varied influence on consumer behavior. Its core is to establish and understand how people from different cultures communicate with each other and the culture of a society comprises the shared values, understandings, assumptions, and goals that are learned from earlier generations, imposed by the members of the present day society and passed on to the succeeding generations.That is how cross culture influence the consumption behavior of consumers belonging to different cultures.
An individual's behavior is a result of that individual's cultural value system for a particular context. Individual‘s cultural value systems are developed over time and are socialized into a particular group. Societal culture as well as regional subculture and familial values all influence the formation of an individual's cultural value system. Thus, the cultural value system includes cultural elements that individuals have in common with the group(s) to which it belongs, as well as idiosyncratic values unique to the individual.
As the model suggests, culture affects consumer consumption behavior, which itself may reinforce the manifestations of culture (Peter and Olson, 1998). An individual's consumption behavior may be viewed and imitated or rejected by
87 others. It can then become the group's norm of behavior and be identified as part of the culture of a given population.
Model describing the mutual influence of culture and consumer behavior.
Cultural Value System
Symbols Values
Heroes Rituals
Marketing communication Consumer
Behavior
Source: Luna and Gupta (2001), “An Integrative Framework for Cross-Cultural Consumer Behavior,” International Marketing Review ,18(1),Pg. 45-69
A model of the interaction of culture and consumer behavior vehicle to transfer meanings or values from the culturally constituted world to consumer goods (McCracken, 1986, 1988), so marketing communications are represented in the model as a moderator of the effect of culture on consumer behavior. At the same time, marketing communications may also affect a culture's manifestations through advertising (for example, Calvin Klein's ads have reinforced the
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``thinness'' value in American society). Of course, as Figure 1 shows, marketing communications can affect consumer behavior independent of culture. When considering this model, it is worth noting that, from an emic perspective, culture may not be seen as a construct apart from and causing behavior. Emic researchers view culture as inseparable from the individual, as an inherent quality (Geertz, 1973). It depicts culture as causing consumer behavior in order to develop a framework that managers can easily implement to compare the behavior of consumers from different cultures which concludes that cross culture has an impact on consumer behavior and difference in their consumption pattern.
Cross Culture influences behavior through its manifestations: values, heroes, rituals, and symbols (Hofstede, 1997). These are the forms in which culturally- determined knowledge is stored and expressed. Thus, each cultural group possesses different cultural manifestations. Researchers utilize these manifestations, as it encompass most elements of culture described by other authors (e.g. Sojka and Tansuhaj, 1995). Cross-culture tries to bring together such relatively unrelated areas as cultural anthropology and established areas of communication. Its core is to establish and understand how people from different cultures communicate with each other and the culture of a society comprises the shared values, understandings, assumptions, and goals that are learned from earlier generations, imposed by the members of the present day society and passed on to the succeeding generations . It will now describe the four manifestations in detail.
Values The term values rests at the heart of most definitions of different cross cultures. In fact, most research seems to agree that values drive an individual's behavior. Historically, consumer researchers have often cited Rokeach (1968), who viewed ``a value as a centrally held, enduring belief which guides actions and judgments
89 across specific situations and beyond immediate goals to more ultimate end- states of existence''. Examples of values are ``freedom,'' ``pleasure'', ``inner harmony'', and ``happiness'' (Rokeach, 1973). There are different taxonomies of values. For example, Rokeach's view of values implies a differentiation between preferred end states of being (terminal values) and preferred modes of behavior or means to achieve end states (instrumental values). Other authors divide values into the desirable and the desired (Hofstede, 1980). Yet other authors classify values into global values, domain-specific values, and evaluations of product attributes (Vinson et al., 1977). Global values are the most centrally held, while attribute evaluations are the least central and are situationspecific. Hofstede's (1980) landmark study of the dimensions of culture can be considered, an etic approach to the study of cultural values. That study explicitly described values as the core of culture and defined them using Rokeach's definition. Hence, its premise was that the values preferred by a group of people separate them from other groups and thus cultures can be compared with each other using values as a standard. Hofstede's study revealed four dimensions of culture: power distance, uncertainty avoidance,individualism, and masculinity.
Emic research focusing on consumption and the meaning of objects in the lives of the individual has also applied values theory to explain how to organize information in our environment. McCracken (1988), for example, refers to ``cultural principles''. These are the ideas according to which phenomena are organized, evaluated and construed. Examples of cultural principles include ``strength'', ``refinement'', or ``naturalism''. Cultural principles help individuals assign meaning to the world that surrounds them. People's behavior embodies and expresses these principles. McCracken's cultural principles bear a strong resemblance to Rokeach's values.
Other emic researchers have also found cultural values to be at the root of certain consumer behavior processes such as the diffusion of innovations
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(Arnould, 1989). It concludes that both the etic and the emic philosophies seem to refer to similar constructs but from different perspectives (between-cultures versus within-cultures). The notion of values, or at least some variants of it, is central to most views of cross culture. The definition of values has evolved over time, but it has remained a central component of culture. Therefore, the term values as an inclusive construct composed of many of the variations in definitions and terminology developed by cross-cultural researchers.
Heroes The term heroes refers to ``persons, alive or dead, real or imaginary, who possess characteristics which are highly prized in a culture, and who thus serve as models for behavior'' (Hofstede, 1997). This concept will be extended in the present article to include reference groups and opinion leaders (McCracken, 1986, 1989). Heroes may influence consumer behavior through their association with certain products and brands (e.g. Michael Jordan and Nike sports apparel). Marketing communications offer an obvious vehicle for this association.
Rituals The concept of rituals is often erroneously interpreted as behavior of religious or mystical significance. While religious rituals are indeed an important type of ritual, Rook's (1985) definition of rituals is much broader: The term ritual refers to a type of expressive, symbolic activity constructed of multiple behaviors that occur in a fixed, episodic sequence, and that tend to be repeated over time. Ritual behavior is dramatically scripted and acted out and is performed with formality, seriousness, and inner intensity. McCracken (1988) adds that a ritual is ``a social action devoted to the manipulation of the cultural meaning for purposes of collective and individual communication and categorization. Ritual is an opportunity to affirm, evoke, assign, or revise the conventional symbols and meanings of the cultural order''. While Rook's (1985) definition focuses on the form that rituals take, McCracken's emphasizes the goal of ritual behavior.
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Rituals are pervasive in any society. There are grooming rituals, romantic rituals, feeding rituals, and are constantly being performed by all members of a society. Rituals are important for consumer behavior because it involves the consumption of goods and services. Rituals give origin to consumers' cognitive schemata and scripts, which ultimately reinforce ritualistic behavior. Marketers' actions moderate the reciprocal relationship between rituals and consumer behavior through advertising, which models ritualistic behavior and helps it spread. Consumer products play a significant role in ritualistic behavior. Products can be employed in their symbolic capacity to operationalize the ritual (Solomon and Anand, 1985). Products can be considered, therefore, as ritual artifacts and their consumption as part of a ritual.
Symbols Symbols are a broad category of processes and objects that carry a meaning that is unique to a particular group of people (Geertz, 1973). Hence, a society's symbols may not exist in different cultures, or their meaning may be different. Language is a set of symbols, as are different gestures, pictures, or objects. The symbols most frequently studied by consumer researchers are language (Sherry and Camargo, 1987) and consumer products. Several authors have examined the symbolic nature of products and consumption. It can be infered from this body of research that product symbolism is generated at the societal level (Solomon, 1983). Cultural values, expressed in society's perceptions of reality and beliefs of what is desirable,seem to be transferred to products through vehicles like advertising (Belk, 1985). These products then become charged with cultural meaning. For example, a pair of sneakers can be elevated to a cultural symbol for the value ``a sense of accomplishment'' by ads that show Michael Jordan wearing them. Finally, individuals, in their efforts to define their social self, are moved to consume the products which are now charged with symbolic meaning (Durgee, 1986).
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The central role of values. It can infered from previous research (e.g. Belk, 1985; Hofstede, 1997) that values have a central role amongst the other manifestations of different cultures and that the relationship between these and values is characterized by a mutual influence. Hence, symbols generally express cultural values. Through consumption rituals, consumer goods become symbols of cultural values. At the same time, symbols reinforce values, or may even shift them. For example, if basketball shoes are seen as a symbol for wealth and repeated advertising associate‘s wealth with a desirable end state, values may shift in certain societal groups toward considering wealth as a terminal value.
The nature of the relationship between language-as-a-symbol and values has been subject to debate (e.g. Pinker, 1994). Some authors suggest that language influences values, and others propose that cultural values determine the form of languages. It is possible that the relationship is bidirectional. For example, cultural values may motivate the creation of words that may not exist in other cultures.
At the same time, language may give origin to values that are literally ``unthinkable'' in other cultures because of a lack of adequate terms to discuss them (consider the revolution that Arabic numerals brought to mathematics and the subsequent shift in cultural values concerning the physical world). However, existing research seems to be inconclusive in this area.
The definition of heroes as expressed above implies that different heroes are an embodiment of different cultural values. Heroes are chosen because as they are individuals or groups that represent what members of cultural groups believe in.
The relationship between values and heroes can also be bidirectional. As described by McCracken (1986), new cultural meanings can be invented ``in a
93 modest way. This invention is undertaken by opinion leaders who help shape and refine existing cultural meaning, encouraging the reform of cultural categories and principles''.
The definitions of rituals included in this article imply that rituals are for the most part an affirmation of values. However, rituals can also influence cultural values to the point where values may be revised and cultural meaning is manipulated (McCracken, 1986). For example, consider a rite of passage that uncovers or reinforces certain values upon the uninitiated individuals, thus making them members of the group.
3.4 A Framework and Review of Cross-Cultural Consumer Behavior
Cognition Affect Behavior
Values Etic approach: Etic approach Etic approach
Self-construal Ad-elicited attitudes General consumption (Aaker and (Taylor et al.,1997; patterns(Hirshman, Schmitt, 1997) Gregory and Munch, 1981; Shim and Gehrt, 1997; 1996;Sood and Nasu, 1995; Ellis et al., 1985)
Attribute Han and Shavitt, 1994; Response to sales perception (Shimp Zhang andGelb, 1996; promotions (Huff and and Sharma, Aaker and Alden, 1998) 1987) Williams,1998)
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Cognition Affect Behavior
Values Emic approach Emic approach Emic approach
Cultural Generalizability of ELM Information exchange categories and (Aaker (Dawar et al.,1996) mental schemata andMaheswaran, 1997)
(McCracken,1988 Generalizability of Family purchasing roles ; D'andrade, intention models(Lee (Ford et al.,1995) 1992) and Green, 1991; Cote and Tansuhaj, 1989)
Ethnocentrism and Ethnocentrism and car attitude toward purchase (Shimp and products (Shimp and Sharma, 1987) Sharma, 1987;Netemeyer et al., 1991)
Preference judgments (Perkins and Reynolds, 1988)
Representation of affect (Bagozzi etal., 1999)
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Cognition Affect Behavior
Symbols Etic approach: Etic approach Etic approach
Language as Language as Language as symbol ± symbol ± symbol ± psycholinguistics(Dolinsky psycholinguistics sociolinguistics and Feinberg, 1986; (Luna and (Koslow et al., Schmitt and Zhang, 1998) Peracchio, 1999; 1994) Schmitt et al., 1994)
Emic approach: Emic approach
Products as Products as symbols (Ger symbols (Levy, and Ostergaard,1998; 1981)Language Wallendorf and Arnould, as symbol 1988; Levy, 1981) (Sherry and Camargo, 1987)
Products as social stimuli (Solomon, 1983)
Social interaction (Costa, 1989) Having, giving (Belk, 1985; 1990)
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Cognition Affect Behavior
Hereos Etic approach Etic approach Etic approach
Perception of Attitudes elicited by Influences in spokesperson spokesperson ethnicity decision making ethnicity (Wilkes (Deshpande and Stayman, (Childers and and Valencia, 1994; Whittler, 1989) Rao, 1992) 1989) Emic approach
Perception of celebrity advertising (McCracken, 1989)
Cognition Affect Behavior
Ritualss Emic approach: Emic approach: Emic approach:
Grooming rituals Preference for Adoption of innovations (Rook, 1985) innovations (Arnould, 1989; Possession rituals (Arnould,1989) Solomon and Anand, (Mehta and Belk, 1985) 1991)
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3.5 Impact of Cross Cultural Value System on Consumer Behavior
3.5.1 The Effect of Values on Consumer Behavior Values and Cognition. McCort and Malhotra (1993) describe a number of studies on the effect of cultural values on information processing issues such as perceptual categorization, perceptual inference and learning. For example, some studies have explored the effects of culture on cognitive processes like perception of time (e.g. BergadaaÁ, 1990). Similarly, Aaker and Schmitt (1997) examined the effect of cultural orientation, operationalized along the individualism-collectivism dimension, on self-construal. In a controlled experiment, Aaker and Schmitt (1997) found that both individualist and collectivist consumers use brands for self-expressive purposes (McCracken, 1988). The study use brands, however, in different ways: collectivist consumers use brands to reassert their similarity with members of their reference group, while individualist consumers use brands to differentiate themselves from referent others.
Consumer ethnocentrism is a construct often studied by cross-cultural researchers. The construct, as operationalized by Shimp and Sharma (1987), could be viewed as an instrumental value (Rokeach, 1973). In their study, Shimp and Sharma (1987) found that consumers' ethnocentrism determines their perceptions of domestic versus foreign products (cognition), as well as their attitudes and behavior.
Other studies of the relationship values-cognition have taken an emic perspective. McCracken (1988,) describes the notion of cultural categories: ``cultural categories are the fundamental co-ordinates of meaning. It represents the basic distinctions with which a culture divides up the phenomenal world''. Categories are similar to the psychological construct of schemata. It helps
98 individuals organize and give meaning to the world. There are several types of cultural categories: categories of time, space, nature, and person. One of the most important ways in which categories are substantiated is through the consumption of goods. Cultural categories are formed according to cultural principles, or values. Similarly, D'andrade (1992) also describes how mental schemata are influenced by culture. Thus, the anthropological view of culture also recognizes that cognitive constructs (i.e. categories) are determined by cultural manifestations (i.e. values).
Values and Affect. Numerous studies have examined the role of culturalvalues on the attitude formation process. We can distinguish between advertising studies and consumer behavior studies. Affect toward the adand/or product represents two of the most important gauges of success inadvertising. Therefore, a number of advertising researchers have examined affective variables in cross-cultural advertising. In particular, severalstudies have attempted to ascertain the role of cultural values on ad-elicitedattitudes. For example, Taylor et al. (1997) compared high and low contextcultures (Korea and the USA, respectively). Their results indicated that consumers from low context cultures preferred commercials with high levels of information. Gregory and Munch (1997) examined cross- cultural differences in ad effectiveness along the individualistic/collectivistic dimension. Their findings suggest that ads that depict norms and roles consistent with local cultural values are more effective than ads which do not.
Han and Shavitt (1994) and Zhang and Gelb (1996) also examined ad effectiveness in individualistic versus collectivistic cultures. The study found that ads emphasizing individualistic benefits were more persuasive in the USA. On the other hand, ads that focused on family or in-group benefits were more effective in Korea. Product category moderated these results: The effect of
99 congruity between culture and the ad appeals was more pronounced for publicly used products than for products purchased and used privately.
Contrary to those findings, Aaker and Williams (1998) showed that ego focusedemotional appeals can elicit more favorable evaluations from collectivist consumers, while other-focused emotional appeals can produce better results with individualist consumers. The authors justify these counter intuitive results by theorizing that appeals that do not match the value orientation of consumers are processed more intently than ads that match their values. The authors, however, acknowledge that, perhaps in public situations or with more publicly-consumed products, the results might follow the opposite, more intuitive pattern found by previous studies (Han and Shavitt, 1994). These seemingly contradictory results want more detailed examination of the role of cultural values on ad effectiveness.
Aaker and Maheswaran (1997) examine the cross-cultural generalizability of dual-process models of persuasion such as the ELM (Petty et al., 1983). Aaker and Maheswaran's (1983) findings reveal that, while the models can be applied in different cultural contexts, cue diagnostically may be affected by cultural values (i.e. certain cues may be considered central by one culture and peripheral by another).
Some consumer behavior studies that do not focus on advertising have attempted to determine the generalizability of models developed in the USA to other cultures. For example, Lee and Green (1991) found that the Fishbein behavioral intentions model can also be applied to collectivistic cultures. Their study suggests, however, that in a collectivist culture the societal norms component of the model has a higher relative weight than in individualistic cultures. Cote and Tansuhaj (1989) explored the culture-bound assumptions in behavior intention models. Other cross-cultural studies of affect have examined the representation of affect (bipolar versus dialectic) in independent-based
100 cultures like the USA versus interdependent-based cultures like China (Bagozzi et al., 1999).
Values and Behavior. Anthropologists have long theorized about the influence of culture on decision making (Stewart, 1985). In consumer research, several studies have focused on how cultural values are materialized in consumers' observable behavior. Hirschman's (1981) study of Jewish subculture in the USA, for example, found that Jewish consumers differed from non-Jewish consumers in childhood exposure to information, adulthood information seeking, product innovativeness, and product information transfer.
Shim and Gehrt (1996) examining sub cultural differences in the USA,found that Whites, Native Americans, and Hispanicstended to approach shopping with orientations consistent with the values predominant in their respective groups. Sood and Nasu (1995) focused on consumer behavior differences originating in the different religious values of the USA and Japan. An unusual approach taken by Ellis et al. (1985) measured the ``Chineseness'' trait among US consumers and the impact it had on their behavior.
Other studies concerned with consumers' behavior as it is affected by cultural values have focused on specific behaviors, such as response to sales promotions (Huff and Alden, 1998), information exchange patterns (Dawar et al., 1996) and family purchasing roles (e.g. Ford et al., 1995). Altogether, values seem to be the manifestation of culture most often studied by researchers, which confirms that values are a central construct in an individual's cultural identity. In other words, values may be the most important of the four manifestations of culture (Hofstede, 1997), and can be used effectively to distinguish one culture from another. Researchers willing to explore the role of cultural values on
101 consumer behavior must reconcile the seemingly contradictory findings of some of the studies described in this section.
3.5.2 The effect of symbols on consumer behavior
Symbols and Cognition. Most research in this area has explored the impact of language on consumers' cognition, for the most part in an advertising context. The study of cognition and cognitive structures lends itself naturally to being studied through the tools of cognitive psychology. Hence, several studies in this area apply psycholinguistics theories to consumer information processing. The study of language in advertising has experienced increased attention from researchers.
Luna and Peracchio (1999) extend two theories developed by researchers in psycholinguistics to advertising targeting bilingual consumers. Schmitt et al. (1994) compare speakers of Chinese and English and the implications that structural differences in languages have for consumers' information processing and mental representations (e.g. whether visually or auditorily presented information is remembered better).
Other researchers have taken an anthropological, interpretative approach in the study of the relationship between symbols and cognition. Levy (1981) investigated how consumers' values, expressed in symbolic food consumption, affect their interpretation of reality through story telling. Sherry and Camargo (1987) examined the effect of language as a symbol on consumers' cognition. Their study suggested that mixed-language (Japanese- English) ads communicate certain values that single-language ads could not express.
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Symbols and Affect. The effect of language on ad-induced attitudes has received some attention. Koslow et al. (1994) applied a sociolinguistic approach in their study of advertising to US Hispanics. The authors use accommodation theory to explain their results and argue that Hispanic consumers' perception of the advertiser's sensitivity toward their culture mediates language effects on attitudes. Positive responses to ads are evoked if it included at least some portions in the Spanish language. Pan and Schmitt (1996) followed a cognitive approach to show that a logograph based writing system (i.e. Chinese writing) promotes visual processing, while alphabetic systems promote aural processing during attitude formation.
Symbols and Behavior. Studies that focus on the impact of symbols on the observed behavior of consumers across cultures follow two distinct methodologies. Some practice traditional methods adopted from psychology (or psycholinguistics), and others employ an interpretative approach in the anthropological tradition. The former tend to focus on the role of language on consumers' behavior, while the latter venture into symbols other than language.
Using a psycholinguistics approach: Dolinsky and Feinberg (1986) examine language and how consumers from bilingual subcultures process information in their first versus their second language. The study found that second language processing leads to information overload and suboptimal decisions more easily than first language processing.
Schmitt and Zhang's (1998) study suggests that language shapes some mental schemata, which may lead to different choices across cultures/languages. Other studies of symbols and consumer behavior focus on the symbolic nature of consumption using an interpretative research methodology. Ger and Ostergaard
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(1998) show that the symbolic consumption of clothes reflects the often conflicting cultural values of the Turkish and Danish cultures.
Wallendorf and Arnould (1988) found that personal memories give meaning to the possession of favorite objects in the USA, while social status is the main source of meaning in Niger. Therefore, the symbolic nature of consumption and/or possession varies from one culture to another.
3.5.3 The effect of heroes on consumer behavior
Heroes and Cognition. Wilkes and Valencia (1989) explore how heroes influence the cognitive processes of consumers. Their results show that there may be an ``ethnic bias'' in the perception of the prominence of the roles played by actors of the same ethnicity as the consumer. For example, Hispanic consumers may see Hispanic actors as playing a more important role than they actually do.
McCracken (1989) described how celebrity endorsement operates as a process of meaning transfer. Culturally-constituted meaning first moves into the persona of the celebrity. Then, the meaning moves from the celebrity into the product. Finally, it moves from the product into the consumer.
Heroes and Affect. The effect of spokesperson ethnicity on the effectiveness of advertising has been explored in several studies (Deshpande and Stayman, 1994) One significant result from this research is that the more consumers are aware of their own ethnicity/culture, the more effective will be a spokesperson from the consumers' ethnic/cultural group. Additionally, consumers holding a higher degree of racial stereotypes will tend to employ racially focused heuristics in their product evaluations (Whittler, 1989).
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Heroes and Behavior. Most research examining the relationship between culture-specific heroes and consumers' behavior has focused on the role of reference groups on consumer decision making.Childers and Rao (1992) examined family and peer influences in consumers' decisions across cultures. Both studies found differences in the groups influencing consumers: in countries with traditionally strong family ties (e.g. Mexico, Thailand), family members had a stronger influence on a consumer's choices than in countries in which the family plays a less prominent role (e.g. the USA).
3.5.3 The effect of rituals on consumer behavior Few cross-cultural studies explore the role of rituals in consumer behavior. Mehta and Belk's (1991) study of the possession ritual of Indians and Indian immigrants to the USA. The authors describe the use of possessions by immigrants in securing identity. Possessions are seen as a symbol to retain their Indian identity in public settings, and the possession ritual helps shape their cognitive structures, their perception of the self.
Arnould (1989) describes the preference formation process within ritualistic behavior in the Niger Republic and also how rituals influence the behavior of consumers in that culture. Solomon and Anand (1985) describe how female rites of passage in contemporary New York determine clothing consumption.
Impact of values, symbols, rituals and consumer consumption behavior Mehta and Belk (1991,) assert, ``rather than a result of the persistence of abstract Indian cultural values . . . the data in this study suggest that this [ritual] may be a strategy of aggregate identity preservation anchored in more concrete symbols''. Thus, rituals may not necessarily reflect the values of the culture where the rituals originate.
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Indian food may be eaten by Indian immigrants in the USA (a ritual), but food purity precepts are ignored (a traditional Indian cultural value). Instead, the rituals serve as an outward sign to secure one's identity. Researchers must investigate these complex relationships in future studies, particularly as it is applicable to each of the three components of consumer behavior: cognition, affect, and behavior.
3.6 Dimensions of Indian Culture
Dimensions of Indian culture use to make their collective sense of environments and to orient their members‘ experience lives (Kozinets and Handelman, 2004). In the market place, it is almost true that consumer‘s perception of a product‘s attributes is based upon its abilities to satisfy needs on which culture and values have a great impact. The relationship between culture and values manifesting themselves through consumption of products is well-documented, with material goods being important to individuals due to their ability to carry and communicate cultural meaning (Askegaard and Kjeldgaard, 2002).
Over the time values, beliefs and practices of a society are shared by all of its people and these influence individual decisionmaking. In this context, marketers must gain unique dimensions of consumer culture to finalize their strategies relating to segmentation, position and marketing mix. Verbal model of cultural and value dimensions of Indian consumers India, as a country, is so heterogeneous in nature that it is complex for a marketer to identify common threads of Indian culture and core values.
There are many different sub-cultures co- exist in Indian society with their own distinctive values, norms, beliefs and behaviors. So, In India, people are socialized by getting input from their cultures and core values.
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Culture can be conceptualized as dynamic production and reproduction of meaning by concrete individuals‘ activities in particular contexts (Kashima, 2000). It ensures a set of behavior patterns transmitted symbolically through language and other means to the member of a particular society (Wallendorf and Reilly, 1983). Culture generally refers to those aspects of human activities that are symbolic and meaningful and identifiable.
Bartlett (1923) defined culture as a part of two components: firstly, cultural elements which denote material behavior and objects and secondly, cultural materials that cover forms of cultural practices, artifacts, social and religious rituals, customs.
According to Blackwell et al. (2007), culture has two fundamental components: Abstract and Material. In terms of abstract components, one may consider values, attitudes, ideas, type of personalities, symbols, rituals and summary constructs like politics and religion. Material component represents visible cultural objects which represent the society as a whole.
Thompson and Rayner (1998) expressed his view about culture in a two-by-two matrix. In this model four competing worldviews were presented. These are combined with models of cultural solidarity and social organization. These two are based upon particular myths of nature and prescriptive in nature. In this model, the axes represent degrees of social regulation or equality (grid) and social contact or competition (group). Four cells present four different views. These are: individualists, egalitarians, hierarchists and fatalists. It also talked about fifth group- autonomous hermits. Members of the group are indifferent in nature. According to McCracken (1986), process of culture describes the movement of members of the cultural group through three layers. As per the model, cultural meaning is present in three locations: in the social and physical environment, in products and services and in individual consumers. He further
107 emphasized ‗‗culture‘‘ as: Lens: Through which the individual views phenomena; Blueprint: It denotes human activity and determine the co-ordinates of social action and productive activity.
Hawkins et al. (2006) propagates that the main operational regime of culture starts by earmarking stated boundaries for individual behavior and by guiding the functioning of such institutions as the family and mass media. In a societal setup these boundaries are termed as norms. Further, norms are derived from cultural values. Based on the discussion raised by eminent scholars a model was proposed: A verbal model of cultural and value dimensions of Indian consumers .
The model talks about two dimensions: Culture and Value.
Cultural dimension consists four categories: Languages, Symbols and Signs, Rituals and Customs and Traditions.
Values dimension consists six categories: Individual and Family, Society through Conformity, Success and Growth, Age and Youthfulness, Happiness and Adaptability Religion and Spirituality
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Cultural dimension of Indian consumers
Language and and Customs Customs Religion Individual and and Spirituality Family
Happiness Indian and Consumers B Adaptab ilit y
Symbols Traditions Success and Signs Age and and Growth youthfulness
Value dimension of Indian consumers
3.6.1 Cultural and Value dimensions of Indian Society: analysis and marketing implications
Languages. Language of a country has a prominent role to enrich its culture. India‘s linguistic diversity is intense. It has more than thousand languages and dialects (Mohanty, 1994). Three-fourths of the populations communicate through different languages belonging to the Indo-Aryan group (Source: Census of India 2001).
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Marketing implications of Language wrt. Indian Society As communication play a major role in marketing, marketers should consider role of language at the time of communicating with their target audience. To ensure success, marketers should touch mind of the consumer and have to speak in consumer‘s language. This can only be possible by knowing insight of a language. For example, Cartoon Network has captured a sizable amount of viewership by offering Hindi dubbed version of their all cartoon films to respect national language of the country.
Again, Nokia addressesed this dimension of Indian culture by introducing Nokia 1100 model specialized designed for Indian consumers with Hindi SMS facility, dust-free keypad, a built-in torch and anti-slip grip and grabbed a major market share in mobile handset market. Successful companies put much effort to understand the uniqueness of Indian national language and other regional languages, and try to find a brand name and communication message that fits perfectly within the setting of cultural dimension. For example, to attract Indian rural market with value for money offerings, Korean consumer durable major LG introduced Sampoorna (means ‗‗complete‘‘ in hindi language), range of color TVs, semi-automatic washing machines and direct-cool refrigerators. Sansui India too took advantage of the market situation. The company launched a sub- brand Dhanpoorna (means ‗‗full of wealth‘‘ in hindi language), which was targeted directly at the rural masses and modified its communication strategies to increase penetration in the rural markets. National Geographic Channels also went for localizing its content with programmes such as MissionUdaan and ‗‗It happens only in India‘‘.
Symbols and Signs. Nonverbal communications play a vital role in Indian culture (Vilanilam, 2005). The country is rich in her ceremonial greetings. Each gesture is meaningful and bears its own name. Marketers should be clear about the ‗‗meanings‘‘ associated
110 with the signs and symbols. In their product offering and communication, it may use those signs and symbols as stimuli to find a place in the mind of the consumer.
Marketing Implications of Symbols and Signs wrt. Indian Society In Indian market, ICICI Prudential, an insurance company, used Sindoor, the greatest symbol of ‗‗protection and benefit‘‘ in Indian culture, to communicate with their target audience. By symbolic representation of the protector of the family through various snap-shots of life, it tried to establish their claim to shield consumers at every step in life. Further, in their communication, ‗‗ICICI‘‘ used ‗‗shoulder‘‘ as a sign of dependability. In India, ‗‗committing one‘s shoulder‘‘ is a culture to show one‘s sharing attitude. Whether it is the bride coyly laying her head on her husband‘s shoulder, or the little baby asleep on the dad‘s shoulder in the train, through this communication, ICICI tried to integrate societal culture and individual emotions.
Rituals and Customs. Rituals and customs are ways in the hands of people of acountry to express and practice their identity (Lal, 1996). These are set of actions practiced in a society to follow cultural norms. Mostly symbolic in nature, these travel generation to generation. The purposes of rituals and customs include maintaining social bondage, gaining social acceptances, satisfaction of different levels of need. As consumers are part of the society, so their behaviors are guided by those rituals.
Marketing Implications of Rituals and Customs wrt. Indian Society For marketers, these rituals play a vital role to anticipate behavior of their target consumers. For example, wishing one‘s near and dear good luck is a basic human emotion and in India, popular custom is that one can ensure good luck of the dear one by setting free a bird. Visa International used this particular custom in one of their commercial, where Richard Gere (the model) saw a girl who was
111 trying to buy a bird that she could set free and brought luck to her brother who was leaving home. She could not buy in a lot because of shortage of money. Gere used his VISA card to gift her all birds to set free for good luck of her brother. Further, Atithi Devo Bhava(Guest is God) is the custom that represents culture of India globally. Tourism Ministry of India has communicated through the Atithi Devo Bhava ad campaign to make world aware of India‘s rich cultural heritage and the philosophy of treating a tourist like God.
Global fast food giant McDonald‘s dispensed with its most prominent ingredient in order to lure taste buds of its Indian customers. In India, majority eat no beef or pork, or any meat at all. For McDonald India, it was necessary to adapt the company‘s offerings according to the culture while maintaining the core brand values consistent across cultures. McDonald India introduced local creations like McAloo Tikki Burger, Curry Pans, Wraps Pizza McPuff and McVeggie to win over consumers.
Aquaguard, a major plauer in water purifier market in India, launched a new commercial in recent past to link water with customs of ‗‗prayer‘‘ in India. In the communication, the song in the background talked about how life revolved around water and how pure water was an important part of offering a prayer or making a wish. The ad ends with the line Yeh jal hai, amrit hai/Yeh dhan hai, jeevan ha (Water is for wealth and life).
Traditions Over the years, traditions of a society evolves and it is durable in nature (Eaton, 2006). It plays a vital role to control behavior of individuals. Over time, some traditions retain their original forms. In some cases, modifications happened to offer some more benefits to the member of the society. In any country, these underline traditions rule the responses of people and it is true for the market also.
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India, as a country, has also cultivated a strong traditional heritage (Danielou, 2003).
Marketing Implications of Traditions wrt. Indian Society Marketers often try to identify inherent traditions of country and incorporate those in their market offerings to ensure a positive response from their target audience. For example, Cadbury Dairy Milk noticed inherent tradition of Indian culture. People prefer to make a visit of anyone‘s house with a box of mithai (box full of sweets) as a good gesture. Further, people of India normally exchange gifts before major festivals like diwali (festival of light) etc. CDMidentified a huge potential market here and fine-tuned their entire product packaging to cater to this buying habit. Pack of CDM was introduced n different sizes and prices to serve different sets of buying occasions. In the same manner, to go by gifting culture of India, Titan watch positioned itself as automatic choice as a gift in a relationship and at the time of any occasion. Godrej Agrovet, another major player, burnt its hand by trying to brand a commodity business. It launched a RTC chicken brand; Real Good-processed and chilled chicken meat. ‗‗See-touch- feel‘‘ tradition of Indian culture posed a hurdle for RTC chicken brand to experience a significant growth and till today market share of processed meat is far behind in comparison to overall chicken meat market of India. Alternatively, to address ‗‗See-touch-feel‘‘ tradition in right manner, home appliance majorWhirlpool went for setting up ‗‗customer experience centers‘‘ across India, which would enable potential customers to actually experience the range of Whirlpool products before purchasing any of them. Further, In Indian tradition, people trust on ‗‗herbal‘‘ products. Medimix Soap positioned itself as an herbal- based product by ensuring use of traditional ingredients strongly associated with skin/complexion care. Another Indian tradition is that any Indian woman takes the pride to flaunt her collection of jewellery, which travels generation to generation in spite of her modern progressiveness. Through their campaign, Tanishq TVC addressed the same values of Indian women. The tag line of ad created as,
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Parampara Ki Nayi Kahani. . .Tanishq (new definition of tradition. . ...Tanishq) to position Tanishq as a brand, which stands both for traditions and modernity.
Value dimensions of Indian society: This section deals with core value dimensions of Indian Consumer. As consumer behavior is an outcome of interaction between culture and values, to get success in Indian market, marketers should well-decode these dimensions of Indian consumers.
Individual and Family Hofstede (1980) identified Indian society as ‗‗collectivist‘‘. It was defined collectivism as a social pattern that consists of individuals who see themselves as an integral part of one or more collectives or in-groups, such as family and co- workers (Triandis, 1989). It encourages connectedness and mutual deference or compromise and social interdependence as dominant values creating a collective identity among individuals (Tafarodi and Swann, 1996).
In India, family plays a vital role all along. Family is of dominant concern for most Indians (Mandelbaum, 1970). This trend is also true among Asian Indians and Indian immigrants, noting that possessions brought more prestige to the family than to the individual (Mehta and Belk, 1991). Role of patriarch is very crucial in Indian society. Because of spreading out of income generation units at random; family members are forced to be part from their parents. But, mentally still are close to each other. So, relationship is of prime concern. In India, people search security and prestige within the confines of the near and dear. Individual responsibility of head of the family is much more, but this thrust on relationship gives security and identity.
Ownership pattern travels through generations. Value system transmits through elder members by word of mouth or by placing them as role models. Strive for
114 individual space is not in top priority. In India, people rely on balance between independent self and interdependent self-concept.
Marketing Implications of Individual and family wrt. Indian Society In India, Calcium Sandoz, the global pharmaceutical giant, tried to touch this core value of family bondage through recent in-film placement of their brand in Viruddh (The Opposition). Calcium Sandoz placed itself in the story where Amitabh Bachhan (the hero in the film) offered Calcium Sandoz to Sharmila Tagore (played the role of his wife in the film) for better look after of her health. In this manner the concept tried to project the idea that ideal husband should offer his wife calcium pellets (read Calcium Sandoz) not only to keep her bones healthy but also to nurture family bondage.
Himalaya Drug Company, another pharmaceutical major, also portrayed an elderly man having fun with his grandson in communication message of their ‗‗Pure Herbs Shallaki‘‘ which is used to prevent/control joint pains. Further, when General Mills took entry in Indian market with their ‗‗Pillsbury‘‘ brand, it faced a major threat to address Indian homemakers. Indian culture believes in family bondage and prominent role of woman in the family as a mother, daughter, daughter-in-law and wife. Indian women expect acceptance and pride in her role. So, General Mills in India offered Indian specific pounded wheat flour (chakki atta), which required some amount of garnishing and cooking in place of their most common heat-and-eat category of products.
Society through conformity Indian society is not hardcore competitive in nature. More harmonious and less comparative in nature, people believe in group performance. Performance through consensus is underline assumption of the society. People strive for individual achievement but are also ready to share it with others. Social hierarchy structure is very strong. Age-wise and income-wise divisions are both present.
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Society is not with rebels. Changes are welcome but incremental change with a right balance between old and new ideas is acceptable. Individual human being and society are interrelated and one cannot create an independent identity (Dev and Babu, 2007).
Marketing Implications of Society through conformity wrt. Indian Society As a result, clothes marketer of India, S Kumars Group, tries to capture this core value of Indian culture through their communication that showcases small acts of honesty, integrity and conformity and emphasizes traditional Indian values. The main objective behind the campaign is to create profile of ‗‗the S Kumars individual‘‘ as someone who goes by harmony and always offer hands to cooperate others as a true Indian. Another, suiting brand Siyaram also tried to link their brand with the retrospection of Indian core values through their ‗‗Come home to Siyaram‘‘ campaign.
Success and Growth There is a general agreement among experts that socio-cultural influence on the personality and general behavior of people in India is very strong (Shivani et al., 2006). In Indian society, recognition or social acceptability enjoys much value than individual achievement. ‗‗Where from I?‘‘ is more important than ‗‗What am I?‘‘ In the core value system of India, success is enjoyed from the perspectives of a group than individual. Concern for the group welfare is considered as a fundamental virtue for all class of people in the society. Commitment to the service of others for achieving the ultimate objective is the stated route of success. Concern for others has been given the highest place.
Marketing Implications of Success and growth wrt. Indian Society In recent past, Femina, popular magazine for women developed a communication on the tune of ‗‗believe‘‘ to indulge this core value of India. The
116 ad soundtrack was ‗‗know nothing can stop me from trying and breaking the chains and flying, don‘t stop me, I can be anything I want to be, don‘t stop me‘‘.
Age and Youthfulness India may be the only single country in this world where gray hair have no grey shades (Banerjee, 2006). Indian culture respects for the wisdom and experience of older generation. In India, older generations are much more socially engaged and open enough to renovate their thought process and this lifestyle has been responsible for their happy and longer life (Krishnan and Mahadevan, 1992). It is preferred to have more shimmer and shine with their age and are socially active and ready to enjoy every second of their life. Family elders play this role of transforming the values to next generation through storytelling.
Marketing Implications of Age and youthfulness wrt. Indian Society In Indian value system, ‗‗health is wealth‘‘ and it is asynonym of wellness in the food. It means of eating foods made from whole grains, which provides nutritional benefits such as vitamins, minerals and fiber. Nestle India got positive feedback from consumers by launching ‗‗Maggi vegetable Atta Noodles‘‘. It worked on same platform and acknowledged Indian definition of health. and to match itself with that, in their new variants Nestle offered whole wheat and vegetables that gave nutrition equivalent to three rotis.
Happiness and Adaptability Role of values on a person‘s happiness is fundamental (Stevens, 2000). Core value of Indian society is that, for happiness of her family, Indian mother may sacrifice her comfort and ambition. Further, it not only provides a specific set of conceptions of happiness but it also constructs particular pathways for its achievement.
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In India, materialistic gain is not prime route of ensuring happiness. The average Indian is a ‗‗safe player‘‘ by nature. He takes calculated risks in terms of investment, expenditure and advancement. Search for higher plains of life is inherent culture of India (Pande, 1990).
Marketing Implications of Happiness and Adaptability wrt. Indian Society Brands like Moov (a pain relief balm), Horlicks (a nutritious drink brand from SmithKline Beecham) tried to touch this unique value system of the society by way of their communication. The Horlicks mom is a caring mother whose top priority is nutritional value of the food consumed by children. Moov mother is almost absorbed to ensure happiness of her family and at the end wants healing touch from her family in return to recharge her. Big Bazaar (Indian version of Wallmart) aimed to connect with the consumer on the basis of core value of India, i.e. ‗‗happiness‘‘. In their campaigns, it projected people and their happiness at Big Bazaar with catchline like Khushiyon se bhari jholi (bagful of happiness).
Religion and Spirituality In India, people are more involved to search unanswered questions of life (Kodikal, 2005). Deeply spiritually inclined country in nature, in India, irrespective of social hierarchy, people are spiritually conscious and more inclined towards religion (Peter, 2002). Trust on own religion is higher; failures are being rationalized on the idea that one cannot alter events and these are pre- determined. People are happy by depending on supreme power; and are not in a mood to rule God. It can be said that core Indian value is a functional interdependence to the universe. The growth in technology could not play a major role to change the belief that the world goes around because of a supreme power that is above everything else in this universe.
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Marketing Implications of Religion and Spirituality wrt. Indian Society In India, people worship goddess Laxmi as goddess of wealth. Core belief is that if one pleases her by ones prayer, she will bless with wealth. Sanctity is prime concern to all religions of India. It gives a vital clue to marketers also to market their brands. To address this, Mangaldep, an agarbatti brand from ITC launched with an original idea of ‗‗fragrance-locked‘‘ packaging to preserve the sanctity of the agarbattis.
3.7 The Impact of Globalization on Culture and Consumer
Globalization has caused dramatic changes to business practices around the world. Companies such as IBM, Intel, Microsoft, and Philips have started to outsource specialists from various parts of the world, causing job shifts and changes in companies‘ structures.
―Globalization‖ refers to the process of increasing social and cultural inter- connectedness, political interdependence, and economic, financial and market integrations that are driven by advances in communication and transportation technologies, and trade liberalization. Some definitions of globalization focus solely on cross-border trade -- for example, globalization as the absence of borders and barriers to trade between nations (Ohmae, 1995).
Brown (1992) and Renesch (1992) define globalization as the interconnections between the overlapping interests of business and society, which acknowledges the broader context in which globalization takes place.
Globalization has resulted in increased access to more goods for consumers in many countries (Evenett, 1999), reduced prices due to competition with local monopolies, and increased food supply due to industrial agricultural in some countries (Mander and Goldsmith, 1996). Poor people in some countries have
119 been able to buy cheaper imported goods rather than shoddy goods produced by local monopolies (Graham and Krugman, 1991). A recent study by the London- based Center for Economic Policy Research reports that globalization increased economic growth and improved the incomes of both rich and poor people. The researchers claim that the number of people living in poverty today would be even greater without globalization (Gaunt, 2002).
3.8 The Impact of Globalization on Cross Culture and Community
Globalization may be a positive force for greater cross-cultural understanding via more cross-cultural exposure and closer cross-border ties. ―A world of complex connectivity (a global market-place, international fashion codes, an international division of labour, a shared eco-system) thus links the myriad small everyday actions of millions with the fates of distant, unknown others and even with the possible fate of the planet‖ (Tomlinson, 1999). Tomlinson refers to the increased connectivity of the world as a double-edged sword that provides new and wider understanding at the same time it takes away the securities of one‘s local world (1999).
Critics claim that globalization is creating a monoculture that is rapidly spreading around the world. MTV culture, for instance, offends social conservatives in many countries. In this view, weakened cultural traditions, combined with the importation of foreign media, stores, and goods encourage cultural homogenization. Multinational news outlets, like CNN and Rupert Murdoch‘s News Corporation, provoked the complaint that the ―flow of information‖ (a term that includes both ideas and attitudes) is dominated by multinational entities based in the most powerful nations (MacBride and Roach, 2000:). Chains like Wal-Mart, with lower prices and extensive, standardized inventory, force uniquely local small stores out of business since consumers prefer the service and prices at Wal-Mart. Monbiot (1995) claims the use of English as the language of business and in the media drives out and threatens minority languages. As
120 transnational corporations grow and become more powerful, there is a concern that the culture of capitalism, heavily influenced by Western or U.S. culture and commoditization, will develop into a world monoculture. Commoditization is the process by which market capitalism transforms things that were previously not viewed as economic goods into something with a price (such as human genones). In fact, many aspects of culture have been ‗commodified‘, as evidenced in the shopping opportunities incorporated into experiences where it previously did not exist (Tomlinson, 1999), such as visits to natural wonders or religious ceremonies. Cultures have always influenced one another, often enriching them in the process, but some observers conclude that cultural synchronization has been occurring at an unprecedented rate and ―never before has one particular cultural pattern been of such global dimensions and so comprehensive‖ (Hamelink, 2000).
Not all communication experts, however, share this opinion. Some maintain that the media has been decentralizing with the development of regional centers (e.g., Mexico for Spanish television, India for film, Hong Kong for East Asian film and television) and indigenized programming. Thus, it argued that the homogenizing forces of the media, like satellite television, exist in tension with ―heterogenization‖ (Sinclair, Jacka, Cunningham, 1996). Tomlinson agrees with Hamelink that cultural synchronization is an unprecedented feature of global modernity but argues that, ―Movement between cultural/geographical areas always involves interpretation, translation, mutation, adaptation, and ‗indigenisation‘ as the receiving culture brings its own cultural resources to bear, in dialectical fashion, upon ‗cultural imports‘‖ (1999).
No imported object, Coca-Cola included, is completely immune from creolization. Indeed, one finds that Coke is often attributed with meanings and uses within particular cultures that are different from those imagined by the manufacturer. These include that it can smooth wrinkles (Russia), that it can revive a person
121 from the dead (Haiti), indigenised through being mixed with other drinks, such as rum in the Caribbean to make Cuba Libre or aguardiente in Bolivia to produce Ponche Negro. Finally it seems that Coke is perceived as a ‗native product‘ in many different places – that one will often find people who believe the drink originated in their country not in the United States. (Howes 1966)
Pressures for a global monoculture are counterbalanced by greater attention and efforts to maintain ethnic identity. Karliner (2000) argues that globalization may be responsible for the increasing popularity of indigenous movements to maintain ethnic identity.
While globalization was not the only cause of the Islamic revolution in Iran, it provided a target for rebellion and also forced the Muslims to ―identify‖ themselves and determine how people wanted to live in a global society (Lechner and Boli, 2000). Anthropologist Clifford Geertz writes that the world is ―growing more global and more divided, more thoroughly interconnected and more intricately partitioned at the same time‖ (1998). Although few social scientists support the creation of a monoculture (Guillén, 2001), this is a common fear among protesters.
Critics claim that globalization has irrevocably changed the social landscape of communities and constitutes a threat to national culture in various ways. For example, transnational agribusiness has replaced family farms in some areas, and cutting down forests inhabited by indigenous people makes it difficult if not impossible for them to maintain their traditional way of life (Keck and Sikkink, 2000; Brown, Renner and Flavin, 1998).
The spread of newer cultures and technologies may result in the loss of knowledge about traditional practices and arts more compatible with natural systems. It draws people from rural areas, moving them out of reach of their
122 traditional safety nets. It is difficult to pinpoint how much of this migration from their traditional communities and ways of life can be attributed directly to globalization versus traditional economic development and a desire to better one‘s life. People, and particularly men, have been forced to migrate to find work throughout history. In the case of the Mexican maquiladoras along the U.S. border, however, the primary employees are young women, which has had a marked impact on the social structure.
Table 3.7.1 The Impact of Globalization on Culture and Community
Positive Effects Negative Effects
Increased cultural exposure, More mobility and disruption of rural life understanding, and cross-border ties away from traditional safety nets
Encouraged proliferation of indigenous Increased exposure to cultural organizations and movements to homogenization preserve ethnic identity
Disintegration of some local communities
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Table 3.8.1 Culture–Value Integration Roadmap In India wrt to marketing implications
Dimensions Category Exclusivity Roadmap Cultural Symbols Strong Linguistic Tailor-made Diversity communication in tune with regional language Signs Distinct symbols Integrate within marketing mix to get connected Rituals Signs Anticipate and touch through product and promotion Customs and Multi facet and Capitalize and adapt Traditions integrated , Deep- for mass penetration rooted and enduring
Value Individual Equal importance of Address individual and Family Individualism and from the backdrop of Collectivism family
Society Competition and Bank upon deep through cooperation coexists rooted societal conformity values for quick connection Success and Success is more Link individual Growth relishing once achievement with accepted by group group cohesiveness
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Age and Wisdom and Appreciate age and Youthfulness experience of older role of patriarch generation is well acknowledged
Happiness High degree of Create your and adaptability and message on positive Adaptability rationalization sides of life
Religion and Strive for both May link with brand Spirituality materialistic and building activities spiritual gain for unique positioning
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CHAPTER 4 ETHNOCONSUMERISM: A NEW PARADIGM TO STUDY IMPACT OF CULTURE & CROSS-CULTURE ON CONSUMER CONSUMPTION BEHAVIOR
The purpose of this chapter is to examine a new paradigm in cross culture consumer consumption behavior that has been labeled ethnoconsumerism, which is a conceptual framework to study cross culture consumer consumption behavior using the theoretical categories originating within a given culture. The motivation for this chapter is twofold. The primary reason is the ongoing argument in comparative cultural studies regarding the use of a single theoretical framework for studying different cultures which is study of cross culture. The second reason has its origin in certain insights or intuitions that it has gained during introspection.
4.1 What Is Ethnoconsumerism?
Ethnoconsumerism was developed by Alladi Vankatesh (1998) to provide a distinctive cross cultural methodological approach that forces researcher to view individual as cultural being,as a part of a culture ,sub-culture and who have other group affiliation .He argues that the marketing discipline and the social sciences more generally ,are premised on theories and philosophies that are influenced by western thoughts.
Ethnoconsumerism is the study of consumption from the point of view of the social group or cultural group that is the subject of study. It examines behavior on the basis of the cultural realities of that group. Ethnoconsumerism follows the intellectual traditions of comparative methods and cross-cultural studies, but it differs from existing versions of comparative or cross-cultural studies in several ways. First, ethnoconsumerism is not a method, as the others tend to be,
126 although crosscultural comparisons can and must be made. Ethnoconsumerism begins with basic cultural categories of a given culture. It studies actions, practices, words, thoughts, language, institutions, and the interconnections between these categories. In general, cross-cultural comparisons are easier at the level of actions and become increasingly problematic at deeper levels of analysis. Seemingly similar practices across cultures may contain deep cultural meanings that differentiate crosscultural practices in fundamental ways. Hence, one must carefully analyze cultural underpinnings of various events and actions. An example of this can be found in the following quote describing Geertz's Balinese cockfight: The intelligibility of any action requires reference to its larger context, a cultural world. So, to take a powerfully developed example, when Clifford Geertz describes the Balinese cockfight, a text analogue, he progressively incorporates other essential Balinese symbols, institutions, and practices that are necessary to an understanding of the seemingly localized cockfight.
The Balinese cultural and social world is not incorporated into the cockfight, but must be brought into analysis in order to understand the event.The aim is not to uncover universals or laws but rather to explicate context and world. (Rabinow and Sullivan, 1987)
The idea of studying a culture from the point of view of the researched group is not new and generally is known as the emic perspective. There is a superficial resemblance between emic perspective and ethnoconsumerism, but both are not equivalent. Emic is a loose tern that refers to the subject's point of view, is limited to strategies of data collection, and rarely leads into a discussion of any deeper interpretive issues.
Ethnoconsumerism advocates not only the so-called native's point of view but goes deeper into the development of knowledge constructed from the culture's
127 point of view. From a philosophy of science perspective, ethnoconsumerism is an example of an ethnoscience that views all social sciences as ethnosciences that lay no claim to the universality of social science. Before developing ethnoconsumerism in fuller detail, some related topics have been reviewed that provide the theoretical context for elaboration.
4.2 Consumerism as a Cultural Phenomenon
Consumerism As An Ethnocultural Phenomenon After pursuing literature on cross-cultural fieldwork in different settings and varied forms of cultural and textual material, consumer behaviors should be consider all as primarily sociocultural phenomena that must, therefore, be discussed in sociocultural terms. There is a confusion in the field (consumer behavior or, more generally, marketing) that results from observing behavior at the individual level and subsequently regarding the phenomenon itself as individualistic. The argument is less than convincing, because it has been chosen to study consumer behavior at the individual level. The behavior is not primarily individualistic simply because it has been chosen to study it that way for epistemological convenience. There is ample evidence to show that all individual identities are derived from interaction within a sociocultural environment (Douglas and Isherwood, 1979; McCracken, 1988; Sahlins, 1976).
In fact, quite often, it describes consumer behavior as cultural group, explicitly or implicitly, as the level of analysis-Americans, Californians, Indians, Hispanics, and so forth. The reason for it is because only at that level does consumer behavior seem to make intuitive sense. Seldom it creates an interest in what Mr. Smith as a single American or Mrs. Singh as a single Indian does. It is more interesting in what Americans or Indians collectively do. Of course, the data collected by many individual Smiths and Singhs, but its ultimate aim is to say something meaningful about the collectivities to which it belongs. Individuals are
128 products of their culture and their social groupings; therefore, are conditioned by their sociocultural environment to act in certain manners (Douglas and Isherwood, 1979; McCracken, 1988). Only derivatively can their behavior be called psychological. Psychology has something to say about individual behavior, but before psychology come culture, family, and group norms. Psychological approaches to consumer behavior are a curious blend of reductionism, mentalism, and naive empiricism.
Culture includes various aspects of social life-from religion to everyday practices, from mundane to profound, from institutions to ideologies, from ideas to activities, and from social formations to meaning systems (McCracken, 1988; Williams, 1981). In fact, many aspects of cultural life have developed historically, either through internal evolution or by external imposition. Dealing with such varied topics requires a rich framework that can be obtained only by a deeper examination of the cultures in question and their practices, value systems, and behavioral norms as it is related to consumption.
The ability to understand consumer behavior in its many-sidedness has been hampered by academic specializations and the division of labor into subdisciplines such as psychology, sociology, and anthropology. These specializations have caused researchers to put on blinders, with psychologists appropriating the study of the human mind, sociologists the social order, and anthropologists the culture.
As mentioned earlier, several cultural theorists adopt the view that individuals are products of their cultures and that as their cultures change.Similarly, the social institutions and their organizational philosophies reflect the cultural values and norms of a given culture. Consequently, a reasonable position to take is that culture is what defines a human community, its individuals, and social organizations, along with other economic and political systems. Thus, the
129 individual and the social are but part of their culture and culture is the overall system within which other systems are organized.
The modernist perspective regards culture and economy as two separate spheres of activity (as is usually the approach taken in the traditional discourse on capitalism and Marxism), but this position is not tenable if culture is to be viewed realistically, that is, as a more encompassing system. Firat and Venkatesh (1994) for elaboration of this idea under modernism and postmodernism.
4.3 Consumerism As A Global Cultural Phenomenon
No culture stands still. There is no such thing as a pure culture except in the minds of people. By both definition and historical circumstance, cultural phenomena are subject to change. Cultures evolve constantly, because of either their own internal dynamics or external (global) influences. About the only thing that can be said in regard to cultural change, or constancy is that some cultures change more rapidly than other cultures, and some cultures may experience more rapid changes at some points in their history than at other times. History is full of examples of how cultures have changed because of external influences. The rise of Buddhism in China and Japan and other Eastern countries in ancient times and the spread of Christianity and Islam during the first millennium are good examples of how cultural changes were brought about globally. Similarly, the expansion of colonial regimes to Africa, Asia, and South America in more
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1. Premodern No distinction between culture and economy .One implies the other
2. Modern Culture and economy are separate Economy is accorded a superior status because of its relevance to the creation of ―productive ―value
ECONOMY CULTURE
Production Consumption
3. Postmodern – Postindustrial New perspectives on the relationship between culture and Economy Culture
Economy Government Ideology Education Family Consumption Institutions Production
Symbolic systems
Figure 4.3.1 Relationship Between Culture and Economy recent periods has had major cultural impact on local communities and nations. In the contemporary world, local cultures are changing quite rapidly because of the rising tide of consumerism. A new form of industrial and market culture is
131 developing in many parts of the world with the diffusion of information, communication, and transportation technologies.
The implications of global cultural diffusion are several. Understanding of the nature of the impact, the local resistances and adaptive strategies to external influences, and the modifications to externally imposed cultural phenomena by giving them a local coloring.
4.4 Ethnicity, Nature, and Scope
Ethnicity is a catch-all collective term that has replaced several other identifiers— race, religion, language group, nationality, religion, and so forth— as a way to determine the social identity of groups, under the claim that although these different identifiers may be more precise and objective in their meaning, the same may be inadequate in today's complex world. As a theoretical construct, ethnicity has acquired a central position in cultural studies in its ability to accord a separate status to people belonging to differentiated groups. It combines such elements as race, language group, and religion into schemes of identity formation.
Accordingly, to cite Nash (1989), the "building blocks of ethnicity" (p. 5) are the body (a biological component expressed as blood and genes, commonly shared among group members), a language, a shared history and origins, religion, and nationality. Quite often, however, the term ethnicity is used euphemistically as a substitute for these identifiers. For example, it is not uncommon for a survey questionnaire to contain the question "What is your ethnic background?" and then to provide response categories that are simply a jumble of racial (White, Black) and religious (Jewish, Moslem) categories.
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Barth (1969), in a systematic investigation of ethnicity, first suggested that ethnicity is not merely an agglomeration of other identifiers. To quote him, "the critical focus of investigation becomes the ethnic boundary and not the cultural stuff that it encloses" .For Barth, the constitution of the ethnic boundary, the mechanics of boundary maintenance, and the mythohistorical rationale for the group formation are extremely important in ethnic identity and differentiation. Thus, some of the ethnic groups in the United States, for example, such as African Americans, Whites, Jews, and Hispanics, may each use different criteria for identity. The first two groups are racial in character, but Arabs and Iranians are not included among Whites, although racially they are closer to many Southern Europeans. The term White usually is applied to people of European ancestry and may connote that those people follow the Christian religion. African Americans are identified by skin color as well as genes, no matter what their religion or nationality.
As Eriksen (1993) pointed out: In the United States, any individual who has the slightest phenotypical trace of African origin is classified as "black." So when a famous American professor in black history came to Trinidad in 1989 to give a lecture .The Trinidadian audience was startled to discover that the man was nearly white .Thus, when discussion occurs within the context of a country such as Trinidad, it is the lightness or darkness of the skin and not the imputed African gene that makes up the ethnic category. Hispanics usually are identified on the basis of language (Spanish) and nationality (Mexicans and other Central and South Americans), unless it has a European ancestry, in which case the community is called Hispanic Whites. Jewish people sometimes are included among Whites, but may be separated by their religion.
Such permutations make it more difficult to pin down the concept of ethnicity than in the case of the other terms, such as religion, nationality, and race. The question is who defines ethnicity?
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According to Barth (1969) and many others (De Vos, 1975; Eriksen, 1993), the basis of ethnicity is self-identification of the members mediated by the perceptions of the others. There are two sets of principles that operate within ethnicity: the inclusionary-exclusionary principle and the difference-identity principle. By excluding, one establishes difference. By including, one establishes identity. Both are, therefore, closely related. The inclusionary-exclusionary principle states that a group tries to include only people who display preapproved characteristics and excludes the others.For example, to be called a White, the relevant characteristics are religion (Christian), skin color, and European extraction. The presumption here is that this group has a distinct value system and cultural patterns.
In recent years, the term ethnicity has evolved in prominence and significance over the other identifiers, which have yielded to ethnicity as a more powerful indicator of identity formation because it is both subjectively claimed and socially accorded.
Globally, the ethnic phenomenon poses the most serious challenge to traditional views regarding nationalism, pluralism, and modernism. Ethnic boundaries have become contentious issues leading to political and power struggles. Ethnic groups that feel marginalized have become forces of resistance. For example, as Friedman (1990) pointed out, "Ethnic and cultural fragmentation and modernist homogenization are not two arguments, two opposing views of what is happening in the world today, but two constitutive trends of global reality" ().
Tambiah (1989) took the question of ethnic boundaries one more step beyond Barth (1969) and suggested that ethnic boundaries have led to ethnic conflicts in many countries. Ethnicity seems to have the potential to generate a more comprehensive theoretical framework for the study of social distinction and social differentiation, although at the same time it unfortunately facilitates the division of
134 the world, with insidious ease, into "us" versus "them." Originally, ethnicity referred to as-yet unassimilated or unassimilable, relatively well-differentiated minority groups within a larger population. These groups were called ethnics, a noun form to describe the groups. The presumption was (and still is) that the term ethnic should not be applied to a group in its host cultural setting if such a setting does, indeed, exist. For example, Mexicans are considered an ethnic minority in the United States but by definition cannot be considered so in Mexico. Nevertheless, scrutinizing the language used, a different story is heared. Many North Americans seem to view Mexicans ethnically (that is, as a subordinate cultural group), regardless of whether these people are referring to Mexican immigrants in the United States or to citizens of Mexico. There is also the obverse and curious side to this logic: In no part of the non-White world are the Whites considered an ethnic group, even though these people may be in a minority.
Ethnic thus has come to mean people of secondary status in the eyes of a dominant global group. The tern ethnic clearly originated with North Americans, Anglo-Saxons, and West Europeans, mainly to describe people of other cultures, frequently in inferior terms. For the most part, ethnic has come to mean an ideologically fashioned term to describe groups who are culturally and/or physically outside the dominant cultures of the day. Ethnic in Webster's Third New International Dictionary (1986). The first entry is, "of or relating to Gentiles or to nations not converted to Christianity," and one must read the third entry to find "having or originating from racial or linguistic groups" .The only entry in the dictionary for the tern ethnos is "of nation, people, caste, tribe" .The choice is clear.
4.4.1 Ethnicity and Its Impact On Consumer Consumption Behavior The burgeoning interest in the topic of ethnicity among consumer researchers in the United States demonstrates just how important this area of research has
135 become. The increase in consumer research interest is partly a result of the changing ethnic landscape of the United States, especially in the states of California, Texas, Florida, and New York,3 which have been affected by recent immigrants from Mexico, Latin America, and Asia. There is a heightened awareness that the recent im-. migrants are less likely to assimilate into the mainstream of American life to the extent most of their predecessors did; thus, these newcomers are more likely to retain their cultural identities.
Consequently, the metaphor describing the American ethnic landscape as a melting pot is being supplanted by the "tossed salad" or "cultural mosaic" metaphors (Glazer and Moynihan, 1975; Hegeman, 1991). Ironically, just at the time when the ethnic tensions in the social sphere have become a cause for concern among mainstream political leaders, marketers-driven more by economic opportunities than by social realities-are eyeing ethnic populations as market segments.
Thus, for the marketing practitioner, the consumption patterns of new immigrants are sufficiently different and their numbers are sufficiently large that cannot be treated as marginal populations. Clearly, marketers are driven by profits and bottom lines, and their desire to understand the behaviors of ethnic groups certainly is not motivated by transcendental considerations. Consumer researchers, who play a critical role in the study of marketing dynamics, now are charged to show a genuine interest in understanding ethnic groups and their practices.
In the field of consumer behavior, ethnic research is not recent. The first wave of ethnic-oriented studies was reported in the literature in the mid-1960s to the late 1970s and focused primarily on Blacks. See Engel, Blackwell, and Kollat (1978) for a summary of these studies.
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The second wave of studies started appearing during the mid- to late 1980s, with the onset of increased growth in the Latin American and Asian immigrant populations in the United States and also as part of the general awareness of ethnic developments among consumer scholars. Coincidentally, fewer studies have been reported on Black consumers.
One of the first specific consumer-oriented studies involving ethnic populations was Hirschman's (1981) analysis of Jewish consumption patterns. Other examples include key studies on Hispanics by Penaloza (1994), Stayman and Deshpande (1989), and Zmud and Arce (1992). The latter two of these studies follow positivist approaches to consumer science by treating ethnicity as a social psychological-demographic construct. The aim of such studies is to establish a relationship between ethnicity as an independent variable and consumption as a dependent variable. Most discussion within these studies centers on the method of analysis, measurement of ethnicity as a construct, and its explanatory power as a concept. The problem of ethnicity as an existential condition and the problems of the ethnic groups and their coping strategies seldom are invoked because that is not the focus of these studies. The subject's point of view is not a major consideration in these and similar studies.
The interpretive questions in these studies are necessarily limited because ethnicity is treated as a scientific construct leading to a reductionism of sorts, and ethnicity is regarded as just any other demographic variable, such as disposable income or household size. Of course, there is merit to this type of research. For one thing, by making ethnicity an important variable, researchers emphasize that it has come of age. By making it a scientific, analytical unit, it says that it can be treated as a value-free construct. The problem with such treatment is that ethnicity becomes a faceless variable in research, and researchers make no attempt to provide an understanding of what it means to be a member of an ethnic group.
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One of the few exceptions to a purely positivistic approach to the study of ethnicity in consumer research and one that broadens the mainstream ethnic research is the recent work of Penaloza (1994) on Hispanic immigrants. Penaloza's work, which began in the mid-1980s and is still continuing, is the result of more than 6 years of close observation and participation in Hispanic communities. She trained herself in the Spanish language and immersed herself in the culture of Hispanics-essentially a requirement if one wants to pursue studies of this type. Her understanding of the Hispanic culture allowed her to examine socialization and acculturation processes of this group, the trials and tribulations of this ethnic community, and the strategies of coping.
Penaloza has demonstrated that ethnic reactions to mainstream culture are determined by strategies of both acceptance and resistance. Ethnic assimilation into the mainstream is both traumatic and cathartic, and the dynamics of this cannot be captured in a typical positivistic research mode.
It is believed that ethnic research will benefit when one goes beyond using standard positivistic research methods because the epistemological position of the researcher might become too rigid to capture the existential condition of the researched subjects in a meaningful way. The typical researcher tends to objectify consumption research data with the objective of scientific pursuit. This conflicts with the state of mind of the researched, which subjectivize consumption experiences. Clearly, these two positions can sometimes stand in opposition to each other to the detriment of appropriate research outcomes. If the researcher is truly interested in developing an understanding of consumers, he or she should develop an epistemology that is grounded in the subjects' point of view.
Three other examples, which concern Asian Indian immigrants, are Jain and Costa (1991), Joy and Dholakia (1991), and Mehta and Belk (1991). The
138 complexity of doing ethnic research is clearly illustrated in these studies, which reveal that it is not possible to deal with ethnicity merely as another variable. Ethnicity becomes a cultural condition with profound consequences to the nature of consumption experiences among different groups.
Although not explicit, ethnic consumer studies can be considered cross-cultural or comparative because the researcher, in describing the relationship between ethnicity and consumption, establishes the cultural significance of ethnic consumption. A major difference between ethnic and cross-cultural or comparative studies lies in the fact that one is mainly intracultural and the other is intercultural. Ethnic studies always have as their implicit or explicit focus the relationship between the ethnic group and the dominant group.
4.5 Principles of Generalization in Cross-Cultural Consumer Behavior
Comparison in this sense means cross-cultural comparison. Researchers speak of generalizations when comparisons lead to valid generalizations across cultures on the basis of cross-cultural similarities. Of critical importance here is that in moving from description to generalization, researchers lose a lot of richness of data and begin to make unrealistic assumptions about the nature of reality. The positivist tradition aims to generate universal principles of behavior across different cultural settings.
The following quotes highlight the principle of generalization in cross-cultural research:
Cross-cultural research provides an essential component of valid generalizations about human society. (Burton and White, 1987)
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The typical cross-cultural study is directed toward the analysis of a relatively small number of traits over a relatively large number of societies. (Udy,1973)
Cross-cultural analysis makes sense only in an intellectual context that stresses the fundamental general similarities among separate societies that are different in detail. (Udy,1973)
Positivism in the social sciences has taken two different positions, one pertaining to scientific generalization and the other arising out of structuralism- functionalism.Scientific generalization refers to the discovery of lawlike regularities across cultures relative to the observed phenomena. Structuralism- functionalism is a particular view of the world as an organized system consisting of various parts with different functional capabilities but with common systemic goals. Both positions are for the most part a historical and treat culture in synchronistic terms.
On the other hand, in the subjectivist tradition (as opposed to the positivist tradition), emphasis is on differences between cultures and not on similarities, but there is a recognition that cultural differences can be explained by common theoretical categories appropriately modified for cross-cultural research. Here, the purpose of the theoretical categories is to make comparisons possible but not to make an assumption that generalizations are necessary or desirable.
The term cross-cultural is more recent and is much looser in its orientation. Cross-cultural comparison originated as a method of generating and testing hypotheses derived from the positivistic paradigms in the social sciences that tend to regard comparisons within a unified framework.
Cross-cultural research spans several basic social science disciplines. Most relevant here are the fields of anthropology, sociology, and psychology, which
140 study, respectively, cultural, societal and social structural, and individual behaviors. Of course, there is a tremendous overlap among the three fields, so much so that Berry, Poortinga, Segall, and Dasen (1992) have argued for the necessity of doing multidisciplinary work. Each of these fields has its own orientation in terms of the subject matter and methods used.
In the field of consumer behavior, cross-cultural researchers typically have followed the approaches of psychologists and, to a much lesser extent, of sociologists. It tends to test monocultural concepts in multicultural settings. Their bias in favor of psychology stems from the dominance of consumer psychology in American academe.
Another type of studies that cross-cultural consumer researchers undertake can more accurately be described as cross-national comparisons. Such studies are more common in economics and the policy sciences. Examples include standard economic studies involving different national economies, World Bank reports, and multinational investment reports in which the focus may be on such variables as gross national product (GNP), sales and turnover, disposable income, and so on-these variables presumably being objective measures that need no cross- cultural translation. Here, although the researchers deal with various macroissues that are local in nature (e.g., lack of education, poverty, health standards, etc.), the approach is structural and not cultural. Obviously, there are situations in which uniform methods and measures are appropriate. Unfortunately, many economically oriented consumer studies are conducted without regard to the intrinsic values of the questions studied. In such studies, categories are reduced to noncultural or quantitative idioms. Poverty is studied abstractly as a condition related to or in terms of lack of education, educational programs, infrastructure, adequate housing, subsistent wages, and so forth. In these studies, seldom does one find researchers studying poverty
141 phenomenologically: The object of their study may be poverty, but it is never poor people. In particular, economists trained in the neoclassical tradition cannot deal with the whys and wherefores of their questions, either in historical or cultural terms, and avoid, therefore, culture-theoretical explanations.
4.6 Cross-Cultural and Consumer Behavior
Until recently, very few serious research articles on cross-cultural have appeared in consumer research journals and publications. Nevertheless, the recent surge in activity suggests an important beginning in this area. The work of Russell Belk must be acknowledged as among the most significant so far in cross-cultural consumer behavior. Other recent work on comparative consumerism has provided an exposure tovarious consumer trends in major parts of the world. Recent published research has focused on a variety of settings-affluent Asian cultures, such as Japan (anderson and Wadkins, 1991; Sherry and Camargo, 1987), Korea (Ko and Gentry, 1991), and Hong Kong (Tse, Bells, and Zhou, 1991); developing Asian cultures, such as India (Joy and Dholakia, 1991; Mehta and Belk, 1991; Venkatesh, 1994; Venkatesh and Swamy,1994) and China (Tse et al.,1991); developing African cultures (Belk, 1988); and emerging Eastern European markets, such as Romania and Turkey (Ger, Belk, and Lascu, 1993) and Poland (Witkowski, 1993). There also has been frequent mention in the press during the past 2 years of marketing and consumerist-oriented developments in these societies. The general theme pursued in these articles and popular studies is one of how these different cultures are adopting Westem- style consumeristic tendencies while trying to retain their traditional and indigenous value systems.
In analyzing the developments across these different regions, two approaches can be seen. The first approach points to the commonalities in these developments that warrant generalizations regarding global consumer trends.
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The other approach emphasizes the peculiarities of each region with a reminder that there are deep-seated differences in the way consumer trends are unfolding and, therefore, that superficial similarities may hide real cultural differences. It is believed that there is some truth in both positions. It is in this context of both similarities and differences that the present analysis is carried out.
Typical cross-cultural research studies involve a comparison of two countries or regions (sometimes more).The following are some examples of recent studies: Europe and Turkey and the United States (Ger and Belk, 1990); Romania and Turkey (Ger et al., 1993); Canada and Germany (Rudmin, 1990); and the United States and the Netherlands (Dawson and Bamossy, 1990). Rudmin (1990) used cross-cultural psychological methods to study German and Canadian data on motivations for ownership. The scales and constructs he used were developed in the North American context and then applied to the German data. Interpretations of the results were based on theories developed mostly by American social theorists, Dewey and Mead. One could argue that Canada and Germany are comparable because these regions share Eurocentric perspectives and, therefore, that it is not necessary to take into account differential cultural norms and behaviors. This is a matter for further investigation in cross-cultural work.
In Dawson and Bamossy's (1990) study, the issue of materialism is examined with reference to the Netherlands and the United States. This study is similar to Rudmin's in terms of the positivistic methods used. Nevertheless, there is a clear differentiation in the interpretation of results on the basis of the different historical and sociocultural forces prevailing in these countries.
Ger and Belk's study (1990) involves a comparison of samples from the United States, Europe, and Turkey on the construct of materialism. The scales were developed in the American context and then adjusted, as deemed appropriate, for use with other samples. In the first half of the study, Ger and Belk discussed
143 the methodology and scale construction in a manner similar to the two studies cited above. Their work, however, does contain a very detailed discussion of the results from the cultural standpoint. It examined the results and accounted for the differences and similarities using cultural arguments.
The cultural arguments in Ger and Belk's study, however,are presented only to interpret the results, not to illuminate their study's design. Had Ger and Belk examined the notion of materialism in different cultural settings, perhaps the very character of their research would have been different. By that, it means that materialism as has been handed down in the North American context has a certain history to it and is embedded in its own cultural processes.
Unless one examines this sociocultural context, the term materialism may not represent the same meaning in another context. Although Ger and Belk's study is certainly very significant in terms of the cultural discussion.
4.7 Why Ethnoconsumerism?
Why ethnoconsumerism? and why now? As mentioned earlier, the study of ethnoconsumerism follows the intellectual tradition of the comparative research methods and cross-cultural studies. The debates and issues of comparative studies are numerous and will not be repeated here. Nevertheless, some important issues need to be elaborated. One of the early approaches to cross- cultural studies is due to Ralph Linton (1945), who dealt with the notion of modal personality.
A modal personality is one that occurs in a society with a certain empirical regularity and mirrors, in general, patterns of social interactions and work. It is Linton's argument that the individual's identity is constituted by his or her culture.
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This is a much stronger argument than the one that holds that culture merely influences the individual's behavior.
In terms of consumption practices, the stronger argument is reinforced in a sociocultural-historical analysis carried out by Norbert Elias (1982) through his work The History of Manners. His is a clear demonstration of how the European culture, although undergoing changes of its own over a period of 400 or 500 years, created its own cultural product, the modem European individual as known him or her today. Echoing the issues raised by some of these early cultural theorists, ethnoconsumerism forces researchers to look at the individual not just as an individual but as a cultural being, as a part of the culture, subculture, and other group affiliations. It is the study of the consumer (his or her personality, cognition, and mental constructs) and the values systems, symbolic belief systems, rituals, and everyday practices all interwoven into a holistic view of the consumer.
More precisely, the ethnoconsumerist approach is multilayered: 1. The study of the cultural (symbolic and belief systems, norms, and ritualistic practices) 2. The study of the social (social organization, social institutions, etc.) 3. The study of the individual (personality, cognition, behavior, mental constructs, etc.)
Theoretical Rationale It is generally recognized that those social sciences whose focus is the study of various cultures across the globe have developed from Western epistemology— or, more specifically, from American epistemology-and that the cultural realities of the subject culture do not contribute to the theoretical categories but only to the content of research. Incidentally, this is generally true of the field of marketing and consumer behavior.
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This has led to certain disenchantment within some circles. In recent years, it has developed into a major debate in the social sciences. One of the first major thinkers to join the critical side of the debate was Clifford Geertz (1983), who addressed this question in his seminal work "From the Native's Point of View." He has influenced not only his own field of anthropology but also the social sciences in general. The debate has gone on in anthropology for several years, with Marcus and Fischer (1986) evincing one of the more provocative dimensions to the debate. The field of anthropology has been most concerned with these issues, primarily because its whole focus is the study of other cultures.
It is in this context that McKim Marriott's (1990) notion of ethnosociology as a framework for the study of different cultures is very appropriate. His work is on India, his reference point is India. But the arguments he raises are applicable to other contexts well.
1. The social sciences as practiced in India today have developed from thought about Western, rather than Indian, cultural realities, and therefore cannot be used effectively to frame questions for which the answers lie in Indian realities and institutions. Therefore, it needs social sciences that deal with Indian realities.
2. All social sciences, Western or otherwise, are ethnosocial sciences. All are parochial in scope.
3. Because thought originating outside of Europe and America has not yet been recognized as social science, the world has had to manage thus far with ethnosocial sciences of only one limited type-Western.
4. The term ethno- must not be viewed as a backwater of the social sciences but as an existential or definitional condition.
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5. As a result of the above, the application of Western categories, such as "individuals," "social structures," "kinship," "classes," "rules," "oppositions," "solidarities," "hierarchy," "authority," "values," "ideology," "sacred," and so forth, risk imposing an alien ontology and epistemology on those who attempt an analysis of a particular culture.
6. Similarly, many Western conceptual distinctions simply cannot be transported into the framework Indian thought. Examples of these distinctions include Marx's "material base and superstructure," as well as Durkheim's "sacred and profane," Levi-Strauss's "nature and culture," Weber's "class and status," and so forth. This is because Indians have their own conceptions of the connections between matter, actions, thoughts, and words, and these are imbued with certain relational properties that are not commonplace in Western thought.
Examples of Ethnoconsumerism Different studies that illustrate various points have risen about ethnoconsumerism. This is meant to be not an exhaustive critique of the studies but a look at them exclusively from the point of view of ethnoconsumerism.
The first study, by Yau (1988), is based on his doctoral dissertation. Yau provided a detailed historical analysis of Chinese values dating from the Confucian and Buddhist periods. Given the fundamental belief systems prevailing among the Chinese, he argued that the notion of consumer satisfaction, its expression, and the consequent action would be totally different from a typical situation in the West. Because of a particular value concept known as yuarn (karma), the Chinese are less likely to blame the product when it fails and are apt to attribute such product failures to their own fate. Although Yau engaged in a discussion of Chinese value systems, the theoretical or classificatory framework is the value-orientation model developed by Kluckhohn and Strodtbeck (1961).
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This model is introduced not at the level of categories but at the level of the overall framework itself. Thus, the framework includes such fundamental orientations as man-nature, man-himself, relational, time, and personal activity. This framework is at a higher order and, hence, is more fundamental than Hofstede's (1980) categories (individualism and collectivism, etc.) that are already culturally derived and so do not permit easy translation into a cross- cultural setting.
In a series of studies, Belk and Pollay (1985; Pollay,1986,1988)jointly, and singly have discussed the cultural value systems as derived from advertising in the North American setting. Clearly, the cultural values extracted from an examination of hundreds of ads from a 60-plus-year period reveal that these values are fundamental to American cultural life and have found their way into the consumer culture. Belk and Pollay's work can be considered a good example of ethnoconsumerist research. Essentially, one can interpret their work to mean that American consumer culture has its own ethnological dimensions and that the mainstream American culture provides an example of an ethnically constituted culture that holds Protestant, Eurocentric values.
Once it considers these cultural values as ethnoconsumeristic, by implication, it should be treading on shaky ground were it need to applied on the same set of values in cross-cultural contexts without regard to the substance of the cultures in question. Consider, for example, a value that is very basic to American culture: materialism (the American version). Its historical roots are in a combination of evangelical idealism, individualism, exceptionalism, Protestantism, and the capitalist subversion of asceticism.
In discussing materialism, one cannot ignore its origins and treat the concept purely synchronically. When Ger and Belk (1990) chose to study materialism in Turkey, one asks, out of necessity, what the roots of materialism are in the
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Turkish context. Is there anything analogous to American materialism? If not, would it make sense to use a cultural category so fundamental to American culture, in which materialism is regarded as its basic defining character? I do not think one can transport a cultural category without regard to its historical context. This is not to say, however, that Turkey is not materialistic or that it could not become materialistic. It cannot be aware of the fact that human history is full of examples of cultural categories that have been transported cross culturally and taken root in their new settings. Buddhism in China and Christianity in Scandinavia are cases in point. Similarly, food habits have been transported across cultures: Tea drinking among the English did not become prevalent until much after British colonial contact. Nevertheless, a discussion of the historical, sociocultural roots is very essential in this type of research. The point that can be raised regarding Ger and Belk's work is to question not its overall insights and fruitful cultural analysis but an aspect of it that has relevance to my discussion of ethnoconsumerism.
Geertz's work on caste in Bali (as analyzed in Howe, 1987) has shown that there are some crucial differences between Bali and India in the study of caste systems, although both are Hindu societies. Although Balinese culture borrowed heavily from the Sanskritic culture of India, its social structure has no Indian influence and is similar to the Indonesian social system. Thus, an intercultural comparison of caste would not produce meaningful results, whereas a study of Hindu religious rites would.
Another example is the sacred-profane dichotomy, which originally was developed by Durkheim and was adopted more recently by Belk, Wallendorf, and Sherry (1989) in their work. A comparison of India and the United States on the sacred and the profane dimension would present quite a few problems. In the American culture, the terms sacred and profane are used as semantically similar to good and bad. As Veena Das (1987) has noted, in the Indian context an
149 argument has been made that "the dichotomy of sacred and profane which dominated the Durkheimian sociology of religion has very little relevance in the Hindu context, since these are not antithetical in Hindu belief and ritual". Alternatively, to the extent that sacred and profane represent a dichotomy, Das argued that sacred refers to life (or purity) and profane refers to death (or impurity). Clearly, what can be considered to be the best example of an ethnoconsumerist approach to consumer behavior is the recent work by Amould (1989) on innovation diffusion and preference formation in the Nigerian culture.
Arnould directly confronts the applicability of Gatignon and Robertson's (1985) framework, which has received a lot of attention in the consumer behavior literature. He began with a sociocultural and historical analysis of consumption in Zinder, dating from the precolonial era. From a historical analysis, he proceeded to give a contemporary structural perspective of Zinder society. Here, the focus is on the impact of market-mediated exchange on the consumption schemes of a traditional society. Using both macro (world systems) and micro (everyday transactions) theories of behavior, plus a descriptive analysis of the current economic order, Amould is able to demonstrate the challenges inherent in applying Western (North American) theories of consumer behavior in a non- Western setting. Analyses of Nigerian data demonstrate the need to reconstrue the constructs employed in diffusion of innovations research for non-Western cultural contexts Innateness and emulationist theories underlying the standard diffusion of innovation models are shown to be ethnocentric, thereby lacking explanatory power in alternate contexts.
By systematic study of particular macro-economic, social-structural, political, and cultural variables, the process of preference formation, innovation, and the diffusion of innovation can be elucidated. Pyssler's (1992) cultural analysis of the adoption of two-wheelers (motor scooters) in India.The study is at the intersection of what de Pyssler called political economy and cultural economy.
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Arnould's (1989) article displayed, but it provides substantial evidence of what an ethnoconsumerist study could be. De Pyssler has provided a clear-sighted, historical analysis of the technology itself, its design, and its cross-cultural semiotics. After transformation of the meaning of the motor scooter in different cultural settings (Italy, Britain, and India), the study provided a narrative analysis of what scooter means to various Indians. The study accomplishes exactly what a cultural analysis is supposed to do, that is, de Pyssler took the subject's point of view in regard to a technology that was basically alien to the Indian scene at the time of its introduction more than three decades ago. Then the focus shifts to how Indians have adapted themselves to this technology, giving it a meaning wholly different from that given it by the Italians or the British. What is an elegant feminine icon in Italy becomes a technology of the rebel (punk rock groups) in England but in India is viewed as a utilitarian family vehicle. Here it does not impose the cultural categories of meanings from outside but generates them from the cultural ambiance of the setting. From the point of view of ethnoconsumerist discussion, one problematic aspect of the study comes in the latter half when de Pyssler began to discuss his findings by imposing two frameworks whose origins are Western in nature, McCracken's (1988) and Hebdige's (1988). There is no question about the standing of these two cultural theorists, but it should be questioned why their framework was used to discuss Indian experiences.
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CHAPTER 5 THE CHANGING DYNAMIC OF CONSUMER BEHAVIOR: IMPACT OF CROSS-CULTURAL ON CONSUMER CONSUMPTION BEHAVIOR
One of the most difficult choices that multinational corporations face is deciding whether to run the same marketing campaign globally or to customize it to the local taste in different countries. In many cases, companies develop their marketing strategy in one country and then do "disaster checking" as it launch the same strategy in other countries instead of trying to discover what would work best in each market (Clegg, 2005). This often leads to ineffective marketing campaigns and damaged reputations. As new global markets emerge, and existing markets become increasingly segmented along ethnic or subcultural lines, the need to market effectively to consumers who have different cultural values has never been more important. Thus, it is no surprise that in the last decade or so, culture has rapidly emerged as a central focus of research in consumer behavior.
5.1 Key Constructs and Dimensions Of Culture
The constructs of individualism and collectivism represent the most broadly used dimensions of cultural variability for cross-cultural comparison (Gudykunst and Ting-Toomey, 1988). In individualistic cultures, people value independence from others and subordinate the goals of their in-groups to their own personal goals. In collectivistic cultures, in contrast, individuals value interdependent relationships to others and subordinate their personal goals to those of their in-groups (Hofstede, 1980, 2001; Triandis, 1989). The key distinction involves the extent to which one defines the self in relation to others. In individualistic cultural contexts, people tend to have an independent self-construal (Markus and Kitayama, 1991) whereby the self is defined as autonomous and unique. In collectivistic cultural
152 contexts, people tend to have an interdependent self-construal (Markus and Kitayama, 1991) whereby the self is seen as inextricably and fundamentally embedded within a larger social network of roles and relationships. This distinction has also been referred to as egocentric vs. sociocentric selves (Shweder and Bourne, 1982). National cultures that celebrate the values of independence, as in the United States, Canada, Germany, and Denmark, are typically categorized as individualistic societies in which an independent self- construal is common. In contrast, cultures that nurture the values of fulfilling one's obligations and responsibilities over one's own personal wishes or desires, including most East Asian and Latin American countries, such as China, Korea, Japan, and Mexico, are categorized as collectivistic societies in which an interdependent self-construal is common (Hofstede, 1980, 2001; Markus and Kitayama, 1991; Triandis, 1989).
A very large body of research in psychology has demonstrated the many implications of individualism/collectivism and independent/interdependent self- construals for social perception and social behavior (see Markus and Kitayama, 1991; Triandis, 1989, 1995). In general terms, these findings indicate consistently that individualists and people with an independent self-construal are oriented toward products and experiences that promote achievement and autonomy, offer personal benefits, and enable expression of one's distinctive qualities. It tend to be promotion focused, regulating their attitudes and behaviors in pursuit of positive outcomes and aspirations. Collectivists and people with an interdependent self construal are oriented toward products and experiences that allow one to avoid negative outcomes, maintain harmony and strong social connections with others, and dutifully fulfill social roles. It tend to be prevention focused, regulating their attitudes and behaviors in pursuit of security and the avoidance of negative outcomes (Higgins, 1997).
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Numerous studies have pointed to important differences between individualistic and collectivistic societies in the kind of information that is featured and seen as important or persuasive in consumer messages. Individualists and people with an independent self-construal are persuaded by information that addresses their promotion regulatory concerns, including messages about personal achievement, individuality, uniqueness, and self-improvement. Collectivists and people with an interdependent self-construal are persuaded by information that addresses their prevention regulatory concerns, including messages about harmony, group goals, conformity, and security. These types of differences emerge in the prevalence of different types of advertising appeals (e.g., Alden, Hoyer, and Lee, 1993; S. M. Choi, Lee, and Kim, 2005; Han and Shavitt, 1994; J. W. Hong, Muderrisoglu, and Zinkhan, 1987; Kim and Markus, 1999; Lin, 2001), the processing and persuasiveness of advertising messages (Aaker and Maheswaran, 1997; Aaker and Williams, 1998; Han and Shavitt, 1994; y. Zhang and Gelb, 1996), the perceived importance of product information (Aaker and Lee, 2001; A. Y. Lee, Aaker, and Gardner, 2000), and the determinants of consumers' purchase intentions (C. Lee and Green, 1991), among other outcomes.
Although a given self-construal can be more chronically accessible in a particular culture, all cultures provide sufficient experiences with independent and interdependent views of the self to allow either self-construal to be primed (see Oyserman, Coon, and Kemmelmeier, 2002; Oyserman and Lee, 2007). Indeed, people in general, and especially bicultural people, can readily switch back and forth between independent and interdependent cultural frames in response to their contexts (Briley, Morris, and Simonson, 2005; Fu, Chiu, Morris, and Young, 2007; Lau-Gesk, 2003). For instance, Lau-Gesk (2003) found that independent (interdependent) self-construals were temporarily activated when bicultural consumers were exposed to individually focused (interpersonally focused) appeals. When activated, these situationally accessible self-views appear to alter
154 social perception and consumer judgments in ways that are highly consistent with cross-cultural findings (e.g., Brewer and Gardner, 1996; Gardner, Gabriel, and Lee, 1999; Y.-y. Hong, Ip, Chiu, Morris, and Menon, 2001; A. Y. Lee et ai., 2000; Mandel, 2003; Torelli, 2006; Trafimow, Triandis, and Goto, 1991).
In sum, the distinctions between individualistic and collectivistic societies, and independent and interdependent self-construals, are crucial to the cross-cultural understanding of consumer behavior. Indeed, whereas the 1980s were labeled the decade of individualism/collectivism in cross-cultural psychology (Kagitcibasi, 1994), similar distinctions represent the dominant structural approach in crosscultural consumer research in the 1990s and 2000s. As noted, the studies to be reviewed in this chapter offer a wealth of evidence that these cultural classifications have fundamental implications for consumption-related outcomes.
5.2 Emerging Cross Cultural Dimensions
The conceptualizations of individualism and collectivism, and independence and interdependence, have historically been broad and multidimensional, summarizing a host of differences in focus of attention, self-definitions, motivations, emotional connections to in-groups, and belief systems and behavioral patterns (Bond,2002; Ho and Chiu, 1994; Hofstede, 1980; Oyserman et ai., 2002; Triandis, 1995; Triandis, Bontempo, Villareal, Asai, and Lucca, 1988; Triandis, Leung, Villareal, and Clack, 1985). Nevertheless, recent studies have proposed useful refinements to the broader individualism/collectivism or independent/interdependent cultural categories. For instance, Rhee, Uleman, and Lee (1996) distinguished between versions of individualism and collectivism referencing family (kin) and nonfamily (nonkin) in-groups, and showed that Asians and European Americans manifested distinct patterns of relations between kin and nonkin individualism. Gelfand, Bhawuk, Nishii, and Bechtold (2004) distinguished between institutional and ingroup collectivism, and showed
155 that there can be substantial differences in the degree to which a society encourages institutional collective action versus interpersonal interdependence (e.g., Scandinavian societies emphasize the former but not the latter).
More recently, Brewer and Chen (2007) have distinguished between a relational form of collectivism (dominant in East Asian cultures) that emphasizes relationships between the self and particular close others, and a group-focused form of collectivism (more common in Western cultures) that emphasizes relationships with others by virtue ofcommon membership in a symbolic group (Gaines et ai., 1997). This group/relational distinction in interdependence is congruent with gender differences in cultural orientations indicating that women are more relational but less group-oriented than men in their patterns of interdependent judgments and behaviors (Gabriel and Gardner, 1999; see also Kashima et ai., 1995).
In sum, the nature and meaning of individualism and collectivism (or ofindependent and interdependent self-construals) appear to vary across cultural, institutional, gender, and ethnic lines. Although the breadth of the individualism/collectivism constructs lends integrative strengths, more recent research suggests that further refinements of these categories enhance the prediction of consumer behavior.
The Horizontal/Vertical Distinction Within the individualism/collectivism framework, Triandis and his colleagues (Singelis, Triandis, Bhawuk, and Gelfand, 1995; Triandis, 1995; Triandis and Gelfand, 1998) have recently introduced a further distinction between societies that are horizontal (valuing equality) and those that are vertical (emphasizing hierarchy). The horizontal/vertical distinction emerges from the observation that American or British individualism differs from, say, Norwegian or Danish individualism in much the same way that Japanese or Korean collectivism differs from the collectivism ofthe Israeli kibbutz. Specifically,
156 in vertical individualist (VI) societies (e.g., the United States and Great Britain), people strive to become distinguished and acquire status via competition, whereas in horizontal individualist (HI) cultural contexts (e.g., Sweden and Norway), people value uniqueness but are not especially interested in becoming distinguished and achieving high status. In vertical collectivistic (VC) societies (e.g., Korea and Japan), people emphasize the subordination of their goals to those of their in-groups, submit to the will of authority, and support competitions between their in-groups and out-groups. Finally, in horizontal collectivist (HC) cultural contexts (e.g., exemplified historically by the Israeli kibbutz), people see themselves as similar to others and emphasize on common goals with others, interdependence, and sociability, but do not submit to authority.
When such distinctions are taken into account, it becomes apparent that the societies chosen to represent individualistic and collectivistic cultural syndromesin consumer research have almost exclusively been vertically oriented. Specifically, the modal comparisons are between the United States (vertical individualist) and any of a number of Pacific Rim countries (vertical collectivistic). It may be argued, therefore, that much of what is known about consumer behavior in individualistic and collectivistic societies reflects vertical forms of these syndromes and may not generalize, for example, to comparisons between Sweden (horizontal individualist) and Israel (horizontal collectivist) or other sets of horizontal cultures. As an example, conformity in product choice, as examined by Kim and Markus (1999), may be a tendency specific to vertical collectivistic cultures, in which deference to authority and to in-group wishes is stressed. Much lower levels of conformity may be observed in horizontal collectivist cultures, which emphasize sociability but not deference (Triandis and Gelfand, 1998). Thus, it may be inappropriate to ascribe differences in consumers' conformity between Korea (vertical collectivistic) and the United States (vertical individualist) solely to the role of individualism/collectivism or independence/interdependence, because such conformity might not be prevalent
157 in horizontal societies. In particular, levels of product conformity in a horizontal collectivist culture might not exceed those in a horizontal individualist culture. Indeed, several recent studies of this horizontal/vertical cultural distinction have provided evidence for its value as a predictor of new consumer psychology phenomena and as a basis for refining the understanding of known phenomena (Shavitt, Lalwani, Zhang, and Torelli, 2006). For instance, Lalwani, Shavitt, and Johnson (Shavitt, Lalwani, et aI., 2006) showed that differences in the self- presentational responses observed for individualists and collectivists are mediated at the individual level by the horizontal but not the vertical versions of these cultural orientations. This suggests that culturally linked self-presentational efforts reflect distinct goals of being seen as self-reliant and capable (valued in horizontal individualist contexts) versus sociable and benevolent (valued in horizontal collectivist contexts).
In a study about country-of-origin effects, Glirhan-Canli and Maheswaran (2000) demonstrated that the tendency to favor products from one's own country over foreign products emerged more strongly in Japan (a vertical collectivistic culture) than in the United States (a vertical individualist culture). This fits well with a conceptualization of collectivists as being oriented toward their in-groups. However, mediational analyses using individual consumers' self-rated cultural values indicated that only the vertical aspect of individualism and collectivism accounted for the country-of-origin effects in Japan.
In other words, the collectivistic tendency to favor one's own country's products appeared to be driven by cultural values that stress hierarchy, competition, and deference to in-group wishes, not by values that stress interdependence more generally.
In line with this, research suggests that advertising messages with themes that emphasize status, prestige, hierarchy, and distinction may be more prevalent and
158 persuasive in vertical cultural contexts (Shavitt, Lalwani et aI., 2006). Such advertisements also appear to be generally more persuasive for those with a vertical cultural orientation, and may be inappropriate for those with a horizontal one. Shavitt, Zhang, and Johnson (2006) asked U.S. respondents to write advertisements that personally would find persuasive. The extent to which the ad appeals that it wrote emphasized status themes was positively correlated with respondents' vertical cultural orientation and negatively correlated with their horizontal cultural orientation. Moreover, content analyses of magazine advertisements in several countries suggested that status-oriented themes of hierarchy, luxury, prominence, and distinction were generally more prevalent in societies presumed to have vertical cultural profiles (e.g., Korea, Russia) than a horizontal cultural profile (Denmark).
Additional Dimensions Numerous other cultural distinctions deserve further attention in consumer research. A focus upon these relatively under-researched constructs as antecedents may allow for broadening the range of cultural differences beyond those currently investigated. For instance, Schwartz's (1992) circumflex structure of values, which has emerged as highly robust cross- nationally, appears largely consistent with the horizontal individualist / vertical individualist / horizontal collectivist /VC typology and offers a particularly detailed and comprehensive basis for classification. In his large-scale studies of work values, Hofstede (Hofstede, 1980, 2001) derived three other dimensions of cultural variation in addition to individualism: powerdistance (acceptance of power inequality in organizations, a construct conceptually relevant to the vertical/horizontal distinction), uncertainty avoidance (the degree of tolerance for ambiguity or uncertainty about the future), and masculinity!femininity (preference for achievement and assertiveness versus modesty and nurturing relationships). Indeed, individualism was the second dimension identified by Hofstede (1980), whereas power distance emerged as the first dimension. Oyserman (2006) suggests that a separate power dimension (high vs. low power) may help to
159 advance our understanding of the effects of (not) having power in different cultures. A few marketing-oriented studies have employed Hofstede's nation- level classifications (e.g., Blodgett, Lu, Rose, and Vitell, 2001; Dwyer, Mesak, and Hsu, 2005; Earley, 1999; Johnson, Kulesa, Cho, and Shavitt, 2005; Nelson, BruneI, Supphellen, and Manchanda, 2006; Spencer-Oatey, 1997), but more potential remains for identifying consequences for consumer judgments and behaviors. For instance, uncertainty avoidance has been conceptualized as a syndrome related to anxiety, rule orientation, need for security, and deference to experts (Hofstede, 1980). As such, one might speculate that the level of uncertainty avoidance in a culture will predict the tendency for advertisements to use fear appeals or appeals to safety and security, and the tendency for advertisements to employ expert spokespersons. Differences along this cultural dimension may also predict consumption patterns across different culture.
5.3 Cross Culture and its Impact on Self-Regulatory Goals
Closely linked to the individualism/collectivism distinction is the independent goal of distinguishing oneself from others through success and achievement and the interdependent goal of maintaining harmony with respect to others through the fulfillment of obligations and responsibilities. These two goals serve as important self-regulatory guides that direct consumers' attention, attitudes, and behaviors (Higgins, 1997; see also Lee and Higgins, this volume). The independent goal of being positively distinct, with its emphasis on achievement and autonomy, is more consistent with a promotion focus, whereas the interdependent goal of harmoniously fitting in with others, with its emphasis on fulfilling social roles and maintaining connections with others, is more consistent with a prevention focus. Thus, people from Western individualistic cultures (whose independent self- construal is more accessible) tend to be promotion focused, whereas people from Eastern collectivistic cultures (whose interdependent self-construal is more accessible) tend to be prevention focused. People with a promotion focus
160 regulate their attitudes and behaviors toward the pursuit of growth and the achievement of hopes and aspirations to satisfy their needs for nurturance. These people pursue their goals with eagerness and are sensitive to the presence and absence of positive outcomes. In contrast, those with a prevention focus regulate their attitudes and behaviors toward the pursuit of safety and the fulfillment of duties and obligations to satisfy their needs for security. These people pursue their goals with Vigilance and are sensitive to the presence and absence of negative outcomes. That distinct self-construals are associated with distinct types of self-regulatory focus has important implications for consumer research. First, consumers consider information that is compatible with the dominant self-view to be more important (A. Y. Lee et aI., 2000). Specifically, promotion-focused information that addresses the concerns of growth and achievement is more relevant and hence deemed more important to those individuals with a dominant independent (compared to interdependent) self- construal. On the other hand, prevention-focused information that addresses the concerns of safety and security is more relevant and hence deemed more important to those individuals with a dominant interdependent (compared to independent) self-construal (Aaker and Lee, 2001; A. Y. Lee et aI., 2000).
Using different operationalizations of self-construal that include cultural orientation (North American vs. East Asian), individual disposition (Singelis, 1994), and situational prime, Lee and her colleagues (A. Y. Lee et aI., 2000) demonstrate that individuals with a more accessible independent self-view perceive a scenario that emphasizes gains or nongains to be more important than one that emphasizes losses or nonlosses. Also experience more intense promotion-focused emotions such as cheerfulness and dejection. In contrast, those with a more dominant interdependent self-view perceive a scenario that emphasizes losses or nonlosses to be more important than one that emphasizes gains or nongains. These people also experience more intense prevention- focused emotions such as peacefulness and agitation.
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Thus, consumers with distinct self-construal‘s are more persuaded by informationthat addresses their regulatory concerns when argument quality is strong (Aaker and Lee, 2001; Agrawal and Maheswaran, 200.5; J. Wang and Lee, 2006), but less persuaded when argument quality is weak, as compared to when the information does not address their regulatory concerns.
Chen, Ng, and Rao (200.5) also find that consumers with a dominant independent self-construal are more willing to pay for expedited delivery when presented with a promotion framed message (Le., to enjoy a product early), whereas those with a dominant interdependent self-construal are more willing to pay for expedited delivery when presented with a prevention framed message (i.e., avoid delay in receiving a product). These matching effects between self- construal and regulatory focus are observed regardless of whether self-construal is situationally made more accessible or culturally nurtured (Aaker and Lee, 2001; Agrawal and Maheswaran, 200.5; Chen et aI., 2005). Interestingly, brand commitment (defined as consumers' public attachment or pledging to the brand) seems to moderate the effectiveness of the chronic versus situational regulatory relevance effects (Agrawal and Maheswaran, 200.5). In particular, Agrawal and Maheswaran (2005) find that appeals consistent with the chronic self-construal are more persuasive under high brand commitment, whereas appeals consistent with the primed (independent or interdependent) self-construal are more effective under low brand commitment. According to the authors, consumers who are committed to the brand have a readily accessible knowledge structure related to the brand. To these consumers, not only is brand information highly accessible, it is also linked to other chronically accessible knowledge in memory.
Exposure to brand information that is highly relevant to the self is likely to activate consumers' chronic self-construal. Thus, their attention and attitudes will tend to be guided more by their chronic self-construal than by the primed self-
162 construal.However, for low commitment consumers, exposure to brand information is less likely to activate any chronic self knowledge. Thus, their preferences will tend to be guided more by their currently accessible self- construal (Le., the primed selfconstrual) than by their chronic self-construal.
More recent research suggests that regulatory relevance effects may be moderated by involvement such that people are more likely to rely on their regulatory focus as a filter to selectively process information when are not expending cognitive resources to process information (Briley and Aaker, 2006; J. Wang and Lee, 2006).
Briley and Aaker (2006) demonstrate that participants who are culturally inclined to have a promotion or prevention focus hold more favorable attitudes toward those products that address their regulatory concerns-but only when it was asked to provide their initial reactions or when their evaluation is made under cognitive load or under time pressure. The culturally induced regulatory relevance effects disappear when participants are asked to make deliberated evaluations or able to expend cognitive resources on the task. For a more detailed discussion on effects of regulatory focus on persuasion, please see the chapter on regulatory fit by Lee and Higgins in this volume.
Distinct self-construals with their corresponding regulatory goals also appear to be the basis of different temporal perspectives across members of different cultures such that those with a dominant independent self-construal are more likely to construe events at a more distant future than those with a dominant interdependent self-construal (S. Lee and Lee, 2007). For the independents, their regulatory goal that emphasizes growth and achievement takes time to attain. Further, their sensitivity to gains and non gains prompts them to focus on positives (vs. negatives) that are more salient in the distant future (Eyal, Liberman, Trope, and Walther, 2004).
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In contrast, for the interdependent, their regulatory orientation that emphasizes safety and security necessitates their keeping a close watch on their surrounding environment and on the immediate future. Further, their sensitivity to losses and nonlosses prompts them to focus on negatives (vs. positives) that are more salient in the near future. Interdependents' close attention to the self in relationship with others also requires their construing the self and others in contexts that are concrete and specific vs. abstract and general( Kim-Prieto, and Park, 2003), which are more characteristic of near versus far temporal distance. Indeed, Lee and Lee (2007) observe that those with a dominant interdependent self-construal (e.g., Koreans) are likely to construe a future event to be temporally more proximal than those with a dominant independent self-construal (e.g., Americans); interdependent also respond more positively to events scheduled in the near future than do independents. The implication is that persuasive appeals that make salient the temporal distance that corresponds with consumers' self-view would be more persuasive than appeals that make salient a mismatched temporal distance. For example, a political campaign that focuses on the future long-term outlook should be more persuasive among those with an independent self-construal, whereas a campaign message that draws people's attention to the current situation should be more persuasive among those with an interdependent self-construal.
This section highlights the importance of understanding the regulatory orientation of the two distinct self-views. However, efforts to generalize this relationship should proceed with caution. As discussed earlier, cultures differ not only in their levels of individualism and collectivism, but also in the extent to which is vertical (emphasiZing hierarchy) or horizontal (emphasiZing equality or openness;Triandis, 1995; Triandis and Gelfand, 1998). It is pOSSible that construal-induced shifts in regulatory focus are limited to cultures that are vertical in structure.
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For instance, to the extent that competing to distinguish oneself positively is more prevalent in vertical than horizontal individualist cultures, an independent promotion focus is more likely among members of a vertical individualist culture (e.g., United States) than among a horizontal individualist culture (e.g., Norway, Sweden). and to the extent that conformity and obedience are more normative in a vertical collectivist culture with its emphasis on fulfilling duties than in a horizontal collectivist culture, an interdependent prevention focus should be more prevalent among members of a vertical collectivist culture (e.g., Japan, Korea) than among a horizontal collectivist culture (e.g., an Israeli kibbutz). More research is needed to investigate whether the relationship between self-construal and regulatory focus may be generalized across both horizontal and vertical types of individualism and collectivism.
5.4 Cross Culture, Risk Taking, and Impulsivity
Another area of interest related to goals and self-regulation is how cross culture influences people's attitudes toward risk and the way it makes risky choices. Based on the literature reviewed in the previous section, one would expect that members of collectivist cultures, who tend to be prevention-focused, would be more risk averse than members of individualist cultures, who tend to be promotion-focused (A. Y. Lee et aI., 2000). In particular, individuals who are promotion-focused are inclined to adopt an eagerness strategy, which translates into greater openness to risk, whereas those who are prevention-focused are inclined to adopt a vigilant strategy, which usually translates into more conservative behaviors (Crowe and Higgins, 1997). Consider an array of options: Options that have greater potential upsides are likely to also come with greater potential downsides, whereas options with smaller potential downsides are often those with smaller potential upsides. Thus, when choosing between a risky alternative with greater upsides and downsides and a conservative alternative
165 with smaller downsides and upsides, individuals who pay more attention to positive outcomes (Le., the promotion-focused) would favor the risky option, whereas those who focus more on negative outcomes (Le., the prevention- focused) would favor the conservative option. These different attitudes toward risk are consistent with findings that promotion-focused participants emphasize speed at the expense of accuracy in different draWing and proofreading tasks and that the reverse is true for those with a prevention focus (Forster, Higgins, and Bianco, 2003).
However, empirical investigations examining how people with distinct cultural\ self-construals make decisions involving risks have produced mixed results. For instance, Mandel (2003) observed that participants primed with an interdependent versus independent self-construal were more likely to choose a safe versus a risky option when choosing a shirt to wear to a family gathering or when playing truth or dare. However, these same participants were more likely to choose the risky option when making a decision regarding a lottery ticket or a parking ticket. Along similar lines, Hsee and Weber (1999) presented Chinese and Americans with safe versus risky options in three decision domains-financial (to invest money in a savings account or in stocks), academic (to write a term paper on a conservative topic so that the grade would be predictable or to write the paper on a provocative topic so the grade could vary), and medical (to take a pain reliever with a moderate but sure effectiveness or one with a high variance of effectiveness). It was found that Chinese were more risk-seeking in the financial domain than their American counterparts, but not in the academic and medical domains. Taken together, these results suggest that while individuals with a dominant interdependent self-construal are more risk averse than those with a dominant independent self-construal in general, and are less risk averse when their decision involves financial risks.
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To account for the findings that Chinese were more risk-seeking in the financial domain, Weber and Hsee (Weber and Hsee, 1998, 2000) proposed that members of collectivist cultures can afford to take greater financial risks because their social network buffers them from financial downfalls. That is, individuals' social networks serve as a cushion that could protect them should these individuals take risks and fall; and the wider their social network, the larger the cushion. Because people in collectivist cultures have larger social networks to fall back on relative to those in individualist cultures, these people are more likely to choose seemingly riskier options because their perceived risks for those options are smaller than the perceived risks for people in individualist cultures. In one study, Weber and Hsee (1998) surveyed American, German, Polish, and Chinese respondents about their perception of the riskiness of a set of financial investment options and their willingness to pay for these options. The study found that their Chinese respondents perceived the risks to be the lowest and paid the highest prices for the investments, whereas American respondents perceived the investments to be most risky and paid the lowest prices for them. Once risk perception was accounted for, the cross-cultural difference in risk aversion disappeared. Consistent with this cushion hypothesis, Mandel (2003) showed that the difference between independent and interdependent participants' risky financial choices is mediated by the size of their social network- the larger their social network, the more risk-taking participants were.
Hamilton and Biehal (2005) suggest that this social network cushioning effect among the interdependent may be offset by their self-regulatory goals. It was found that those primed with an independent self-construal tend to prefer mutual funds that are more risky (Le., more volatile) than do those primed with an interdependent self-construal; and this difference is mediated by the strength of their regulatory goal in that risky preferences are fostered by promotion goals and discouraged by prevention goals.
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It is worth noting that both Mandel (2003) and Hamilton and Biehal (2005) manipulated self-construal but found opposite effects of self-construal on risky financial decisions. Whereas an interdependent self-construal may bring to mind a larger social network that serves as a safety net and hence changes risk perceptions, the associated prevention focus also prompts people to be more vigilant and hence lowers the threshold for risk tolerance.
Interestingly, Briley and Wyer (2002) found that both Chinese and American participants whose cultural identity was made salient (vs. not) were more likely to choose a compromise alternative (i.e., an option with moderate values on two different attributes) over more extreme options (i.e., options with a high value on one attribute and a low value along a second attribute) when choosing between such products as cameras, stereo sets, or computers. When presented with the task of picking two pieces of candy, cultural identity-primed participants were also more likely to pick two different candies than two pieces of the same candy. To the extent that choosing the compromise alternative or picking one of each candy reduces the risk of social embarrassment and postchoice regret, the authors presented the results as evidence that individuals who think of themselves as part of a larger collective (i.e., those with an interdependent mindset) are more risk averse, independent of national culture. More systematic investigations ofhow culture and self-construal affect consumers' risky decision making await future research.
Besides having an influence on the individual's attitude toward risks, culture also plays an important role in the individual's self-regulation of emotions and behaviors. Because the maintenance of harmony within the group often relies on members' ability to manage their emotions and behaviors, collectivist cultures tend to emphasize the control and moderation of one's feelings and actions more so than do individualistic cultures (Potter, 1988; Russell and Yik, 1996; Tsai and Levenson, 1997). Indeed, it has been reported that members of collectivist
168 cultures often control their negative emotions and display positive emotions only to acquaintances (Gudykunst, 1993). Children in these societies are also socialized to control their impulses at an early age (Ho, 1994).
It follows that culture would play an important role in consumers' purchase behavior by imposing norms on the appropriateness of impulse-buying activities (Kacen and Lee, 2002). When consumers believe that impulse buying is socially unacceptable, these customers more likely to refrain from acting on their impulsive tendencies (Rook and Fisher, 199.5). Whereas members of individualist cultures are more motivated by their own preferences and personal goals, members of collectivist cultures are often motivated by norms and duties imposed by society. Thus, people with a dominant interdependent self-construal who tend to focus on relationship harmony and group preferences should be better at monitoring and adjusting their behavior based on "what is right" rather than on "what I want." Chen, Ng, and Rao (2005) found that consumers with a dominant independent self-construal are less patient in that and are willing to pay more to expedite the delivery of an online book purchase than those with a dominant interdependent self-construal.
Kacen and Lee (2002) surveyed respondents from Australia, the United States, Singapore, Malaysia, and Hong Kong and found that the relationship between trait buying impulsiveness and actual impulsive buying behavior is stronger for individualists (respondents from Australia, the United States) than for collectivists (respondents from Hong Kong, Malaysia, Singapore). Further, the study reported a positive relationship between respondents' independent self-construal and impulsivity among the individualists, but not among the collectivists.
These results suggest that impulsivity in buying behavior in individualistic societies is more a function of personality than normative constraints, and are consistent with findings that attitude-behavior correlations are stronger in
169 individualistic than collectivistic cultures (Bagozzi, Wong, Abe, and Bergami, 2000; Kashima, Siegal, Tanaka, and Kashima, 1992; J. A. Lee, 2000).
5.5 Cross Culture and Its Impact on Persuasive Appeals
Most research on cross cultural inpact on judgment and persuasion has examined the implications of individualism/collectivism or independent/interdependent selfconstruals. In general, the findings suggest that the prevalence or the persuasiveness of a given type of appeal matches the cultural value orientation of the society. For instance, appeals to individuality, personal benefits, and achievement tend to be more prevalent and persuasive in individualistic compared to collectivistic cultures, whereas appeals to group benefits, harmony, and conformity tend to be more prevalent and persuasive in collectivistic compared to individualistic cultures. Such evidence for "cultural matching" in the nature of appeals has since been followed by studies examining the distinct psychological processes driving persuasion across cultures. These studies suggest that culture can affect how people process and organize in memory product-related information. It can determine the type of information that is weighed more heavily for making judgments (e.g., product attributes versus other consumers' opinions). It can also influence thinking styles and the mental representations of brand information.
5.6 Cross Cultural Differences in the Content of Message Appeals
Cross-cultural content analyses of advertisements can yield valuable evidence about distinctions in cultural values. For instance, American advertisers are often exhorted to focus on the advertised brand's attributes and advantages (e.g., Ogilvy, 1985), based on the assumption that consumer learning about the brand precedes other marketing effects, such as liking and buying the brand (Lavidge and Steiner, 1961), at least under high-involvement conditions (Vaughn, 1980).
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Thus, advertisements that attempt to "teach" the consumer about the advertised brand are typical in the United States, although other types of advertisements are also used.
In contrast, as Miracle (1987) has suggested, the typical goal of advertisements in Japan appears very different. There, advertisements tend to focus on "making friends" with the audience and showing that the company understands their feelings (Javalgi, Cutler, and Malhotra, 1995). The assumption is that consumers will buy it the customers feel familiar with and have a sense of trust in the company. Because Japan, Korea, and other Pacific Rim countries are collectivist, "high context" cultures that tend toward implicit and indirect communication practices (Hall, 1976), Miracle suggested that the mood and tone of commercials in these countries will be particularly important in establishing good feelings about the advertiser (see also Taylor, Miracle, and Wilson, 1997). Indeed, studies have shown that advertisements in Japan and Korea rely more on symbolism, mood, and aesthetics and less on direct approaches such as brand comparisons than do advertisements in the United States (B. Cho, Kwon, Gentry, Jun, and Kropp, 1999; di Benedetto, Tamate, and Chandran, 1992; J. W. Hong et aI., 1987; Javalgi et aI., 1995).
This is not to argue that advertisements in collectivist societies use more of a "soft sell" approach in contrast to a "hard sell," information-driven approach in the West. Information content in the advertisements ofcollectivist cultures can be very high (Tse, Belk, and Zhou, 1989), sometimes even higher than in the United States (J. W. Hong et al, 1987; Rice and Lu, 1988). It is generally more an issue of the type of appeal that the information is supporting. For instance, a content analysis of magazine advertisements revealed that in Korea, compared to the United States, advertisements are more focused on family well-being, interdependence, group goals, and harmony, and are less focused on self- improvement, ambition, personal goals, independence, and individuality (Han
171 and Shavitt, 1994). However, as one might expect, the nature of the advertised product moderated these effects. Cultural differences emerged strongly only for products that tend to be purchased and used along with other persons (e.g., groceries, cars). Products that do not tend to be shared (e.g., health and beauty aids, clothing) are promoted more in terms of personal, individualistic benefits in both countries.
Paralleling the overall cross-national differences, a content analysis by Kim and Markus (1999) indicated that Korean advertisements, compared to U.S. advertisements, were characterized by more conformity themes (e.g., respect for collective values and beliefs) and fewer uniqueness themes (e.g., rebelling against collective values and beliefs). (For other ad comparisons relevant to individualism/collectivism, see B. Cho et al, 1999; S. M. Choi et al, 2005; Javalgi et al,1995; Tak, Kaid, and Lee, 1997).
Recently, studies have extended these cultural conclusions into analyses ofWeb site content (C.-H. Cho and Cheon, 2005; Singh and Matsuo, 2004). For instance, Cho and Cheon (2005) found that corporate Web sites in the United States and United Kingdom tend to emphasize consumer-message and consumer-marketer interactivity.
In contrast, those in Japan and Korea tended to emphasize consumer-consumer interactivity, a pattern consistent with cultural values stressing collectivistic activities that foster interdependence and sociability.
Finally, in studying humorous appeals, Alden, Hoyer, and Lee (1993) found that advertisements from both Korea and Thailand contain more group-oriented situations than those from Germany and the United States. However, it is worth noting that in these studies, evidence also emerged for the value of the vertical! horizontal distinction previously discussed. Specifically, relationships between
172 the central characters in advertisements that used humor were more often unequal in cultures characterized as having higher power distance (i.e., relatively vertical cultures, such as Korea) than in those labeled as lower in power distance (such as Germany), in which these relationships were more often equal. Such unequal relationships portrayed in the advertisements may reflect the hierarchical interpersonal relationships that are more likely to exist in vertical societies.
5.7 Cross Cultural Differences in Judgment and Persuasion
The persuasiveness of appeals appears to mirror the cultural differences in their prevalence. An experiment by Han and Shavitt (1994) showed that appeals to individualistic values (e.g., "Solo cleans with a softness that you will love") are more persuasive in the United States and appeals to collectivistic values (e.g., "Solo cleans with softness that your family will love") are more persuasive in Korea. Again, however, this effect was much more evident for products that are shared (laundry detergent, clothes iron) than for those that are not (chewing gum, running shoes).
Zhang and Gelb (1996) found a similar pattern in the persuasiveness of individualisticversus collectivistic appeals in an experiment conducted in the UnitedStates and China. Moreover, this effect appeared to be moderated by whether the advertised product is socially visible (camera) versus privately used (toothbrush).
Finally, Wang and Mowen (1997) showed in a U.S. sample that individual differences in separateness/connectedness self-schema (i.e., the degree to which one views the self as independent of or interconnected with important others) predicts attitudes toward individualistic versus collectivistic ad appeals for a credit card.
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Thus, cultural orientation and national culture have implications for the effectiveness of appeals. However, such cultural differences are anticipated only for those products or uses that are relevant to both personal and group goals. Wang, Bristol, Mowen, and Chakraborty (2000) further demonstrated that individual differences in separateness/connectedness self-schema mediate both the effects of culture and of gender on the persuasiveness of individualistic versus collectivistic appeals. Their analysis demonstrated that this mediating role is played by distinct dimensions of separateness/connectedness self-schema for cultural as opposed to gender-based effects.
Cultural differences in persuasion are also revealed in the diagnosticity of certain types of information. For instance, Aaker and Maheswaran (1997) showed that consensus information regarding other consumers' opinions is not treated as a heuristic cue by Hong Kong Chinese (as it is in the United States, Maheswaran and Chaiken, 1991) but is instead perceived and processed as diagnostic information. Thus, collectivists resolve incongruity in favor of consensus information, not brand attributes. This would be expected in a culture that stresses conformity and responsiveness to others' views. However, cues whose (low) diagnosticity is not expected to vary cross-culturally (e.g., number of attributes presented) elicit similar heuristic processing in the United States and Hong Kong.
Further research indicates that, whereas members of both U.S. and Chinese cultures resolve incongruities in the product information received but still tend to do so in different ways (Aaker and Sengupta, 2000). Specifically, U.S. consumers tend to resolve incongruity with an attenuation strategy in which one piece of cross
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5.8 Cross Cultural Differences in Brand Representations
Information is favored over another, inconsistent piece of information. In contrast, Hong Kong Chinese consumers tend to follow an additive strategy in which both pieces of information are combined to influence judgments. This is consistent with the view that East Asians think holistically and take more information into account when making judgments (I. Choi et aI., 2003; Nisbett, Peng, Choi, and Norenzayan, 2001).
Recent research points to cultural differences in the mental representation of brand information. Ng and Houston (2006) found that an interdependent view of the self facilitates the accessibility of brand exemplars (Le., specific products or subcategories), whereas an independent view of the self facilitates the retrieval of brand beliefs (Le., general descriptive or evaluative thoughts). The authors argue that these results are driven by a tendency by independent consumers to focus on "global beliefs" abstracted from prior product experiences and a tendency by interdependent consumers to focus on contextual and incidental details about the product. The focus of interdependent consumers on contextual variables also led to more favorable evaluations (compared to those of independent consumers) of brand extensions perceived to be used in the same usage occasion as an existing product mix.
Monga and John (2007) provide further insights into the cognitive processes underlying cross-cultural differences in the representation of brand information. The study found that priming an interdependent (vs. an independent) self- construal led consumers to perceive a higher degree of fit between a brand extension and the parent brand and to evaluate more positively the brand extension. These findings are attributed to the more holistic thinking style, which is oriented toward the object-field relationships and is associated with an interdependent view of the self (see Ktihnen, Hannover, and Schubert, 2001).
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5.9 Brands as Symbols of Self and of Cross Culture
Consumers use certain products or brands to express to others their personal values (Richins, 1994). Although the self-expressive function ofproducts may reflect a universal goal, recent research suggests that certain cultures value self- expression more than others do. Moreover, brands and products vary in their likelihood of playing a self-expressive role (see Shavitt, 1990)-that is, some brands are more iconic than others. As a result, such brands may be more likely to carry and activate cultural meanings.
One important aspect of individualism is the expression of inner thoughts and feelings in order to realize one's individuality (Bellah, Madsen, Sullivan, Swidler, and Tipton, 1985). In contrast, in collectivistic cultures expression of one's thoughts is not particularly encouraged. Accordingly, Kim and Sherman (2007) showed that culturally shared assumptions about the function and importance of self-expression impact consumers' judgments. In their studies, European Americans instructed (vs. not) to express their choice of a pen evaluated an unchosen pen more negatively, indicating that people became more attached to the pen of their choice .These effects were absent among East Asian Americans. In sum, cultural differences in how people self-expressed through their preferences apparently led to differences in how people felt about their preferences once expressed. Certain brands become consensus expressions of a set of ideas or values held dear by individuals in a given society (Holt, 2004). Consumers associate these brands with the values that are characteristic ofthe culture (Aaker, Benet-Martinez,and Garolera, 2001). For example, some brands in the United States are associated with ruggedness (e.g., the Marlboro man) and some brands in Japan are associated with peacefulness, and ruggedness and peacefulness are dimensions characteristic of American and East Asian cultures, respectively. To the extent that these brands are associated with knowledge about the culture, it can reach an iconic status and act as cultural
176 reminders (see Betsky, 1997; Ortner, 1973). Encountering such iconic brands can serve as subtle cultural primes that can lead to culturally congruent judgments and behaviors. In line with this reasoning, in a study aboutthe effects of the exposure to American icons on consumers' judgments, Torelli,Chiu, and Keh (2007) found that exposure to iconic brands (e.g., Kellogg's CornFlakes) led American participants to organize material in memory around cultural themes and to evaluate foreign competitors more negatively.
To the extent that iconic brands can be used to communicate their associated values, consumers can rely on these brands for fulfilling important identity goals. With the advancement of globalization, the marketplace is suffused with images of various iconic brands and products. Continued exposure to iconic products and brands can serve as a cognitive socialization process whereby different cultural values and beliefs are repeatedly activated in consumers' working memory. LauGesk (2003) points out, as the world becomes more culturally diverse and mobile; it is more common for consumers to possess knowledge about the symbols and values of multiple cultures. Thus, J. Zhang (2007) shows that the responses to persuasive appeals by young Chinese consumers resemble those found among bicultural individuals (e.g., East Asians born and raised in the United States). This state of affairs may help to explain why, in rapidly transitioning economies, Westernized appeals are increasingly common. For example, appeals to youth/modernity, individuality/ independence, and technology are rather salient in Chinese advertisements (J. Zhang and Shavitt, 2003) as well as frequently employed by current Taiwanese advertising agencies (Shao, Raymond, and Taylor, 1999).
In addition, consumers in developing countries tend to respond favorably to markedly Western products. For instance, in one study o fIndian consumers (Batra, Ramaswamy, Alden, Steenkamp, and Ramachander, 2000), brands perceived as having a nonlocal (Western) country of origin were favored over
177 brands perceived to be local. This effect was stronger for consumers with a greater admiration for the lifestyle in economically developed countries. These cultural-incongruity findings are meaningful because it suggests the important role that advertising can play in reshaping cultural values in countries experiencing rapid economic growth (J.Zhang and Shavitt, 2003). Rather than reflecting existing cultural values, advertising content in those countries promotes new aspirational values, such as individuality and modernity, hence these new values become acceptable and desirable among consumers. Understanding the cognitive implications of multicultural environments for consumers is likely to be a key research topic in cross-cultural consumer psychology for years to come.
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CHAPTER6:
ISSUES EMERGING FROM GLOBALIZATION, FRAGMENTATION AND ITS IMPACT ON CROSS-CULTURAL CONSUMER CONSUMPTION BEHAVIOR.
To understand the effects of globalization and fragmentation, macromarketing scholars need insights about links between individual consumer behavior and societal outcomes. The challenge in this regard is to create a program of macrooriented cross-cultural research. This chapter offers a crosscultural consumer behavior research framework The framework encompasses four key areas of consumer behavior that are related to the forces of globalization and fragmentation, including the environment, identity, wellbeing, and market structure and policy agenda.
Consumer behavior is a powerful macroforce, as evidenced by its links to pollution (Kilbourne and Beckmann 1998; Princen 1999; Myers 1997), societal well-being (Ger 1997), and resource use (Horton 1987). Yet the macromarketing field lacks a research agenda that adequately reflects consumer behavior writ large (and international). Reliance on the cross-cultural consumer behavior literature is unlikely to solve this problem. Its multicountry or cross-national comparisons typically entail extensions of issues from singlecountry studies and examine consumer behavior from a micro or marketing management perspective (see Boddewyn 1981; Cornwell forthcoming). In contrast, this article discusses a macromarketing-oriented, cross-cultural consumer behavior research agenda.
Cross-cultural consumer research refers to simple comparisons and more extensive multicultural examinations of behavior in national or regional cultures,
179 subcultures,ethnic groups, minority groups, and immigrant groups. For example, Hui et al. (1993) is a study of four subcultures in Canada.
Consumer Consumption behavior are influenced by globalization and fragmentation. These are environment, elective identity, well-being, and market structure and policy. Research goals are represented along the sides of the framework to underscore the need to link micro- and macrobehavior and to encourage paradigm plurality.
6.1 Globalization and Fragmentation
Globalization and fragmentation are extensions of formative events that occurred throughout the twentieth century (Clark 1997). The greatest expansion of transworld relations and thus globalization, however, occurred after 1960 (Scholte 2000), and it continues today. In economic as well as broader political, cultural, and social terms, the critical forces of globalization include transnational organizations, mass media, the Internet, and the World Trade Organization. Forces of fragmentation include regionalization, grassroots initiatives, regional trade blocks, and activist groups. Consumer behavior in the areas of interest may be influenced by the interplay of and overlap of globalization and fragmentation forces. Internet, although creating an explosion in global connectivity with its open exchange of worldwide rich information (Gereffi 2001), also facilitates fragmentation. Roper (2002) noted that ―the Internet has been used by activists against a liberalized global economy.‖ The resulting fragmentation takes varied forms but is based in grassroots, regional-level initiatives that fuel difference. Other forces also affect the impact of globalization and fragmentation processes on consumer/consumption behavior. The proliferation of transnational organizations, for example, has ―potentially overwhelming power to influence our lives as consumers‖ (Ger and Belk 1996). Trade treaties favoring the business and financial interests of the core regions that are home to the transnational
180 corporations bring about a widening of inequalities between regions (Cumbers 2000) that have social, environmental, and cultural costs (Henderson 2000).
Globalization denotes movements in both the intensity and the extent of international interactions: in the former sense, globalization overlaps to some degree with related ideas of integration, interdependence, multilaterism, openness, and interpenetration; in the latter, it points to the geographical spread of these tendencies. (Clark 1997)
It may increase ―complex connectivity‖ (Tomlinson 1999) and lead to the proliferation of contact points and movements that are both sociopsychological and physical in nature. As Featherstone (1995,) argued, globalization compresses historical cultural categories, and thus things once held apart become juxtaposed, cultures pile on top of each other, and there becomes ―too much culture to handle and organize into coherent belief systems, means of orientation and practical knowledge.‖ Unmistakably, globalization fuels fragmentation. Individuals need points of orientation, a sense of control, and a sense of identity, all of which have been eroded by the homogeneity of globalization. Fragmentation is shorthand for the tendencies opposite to globalization: on the one hand, it suggests disintegration, autarchy, unilateralism, closure, and isolation (Clark 1997), whereas ―on the other, the trend is toward nationalism or regionalism, spatial distension, separatism and heterogeneity.‖ These countervailing forces of fragmentation are diverse.
Ohmae (2000) declared the nation-state as a dysfunctional unit and supports the rise of the ―region state.‖ Region-state boundaries ignore national configurations because national configurations grow and contract relative to market demands. Ohmae gave as an example the so-called growth triangle of Singapore and its neighboring Indonesian islands (2000,). Region-states are an economic,
181 orienting force for a group of people. Allegiance and outlook, as well as consumer behavior, follow economic opportunity and prosperity.
Beck (2000) argued that political fragmentation is the result of transnational companies that have the power to shift employment opportunities and thus play one country against another and in this process produce ―subpolitics‖ that transcend established political boundaries. Despite these pressures,
Petras (2002) made a case that there has been a strengthening of the state, ―whether imperial, capital, or neo colonial,‖ in terms of expanded activities and ubiquitous intervention in society and the economy. He contended that itis particularly so in imperialist nations in which the state concentrates power and projects it around the world. Even international policy experts who feel strongly that the nation-state will continue to be a meaningful source of governance into the future (Scholte 2000) have admitted that fissures in the old ideas of state have resulted in disperse forms of governance that are multilayered and complex.
Aptly, globalization in the consumer realm, dubbed McDonaldization, is defined as the principles of the fast-food restaurant that are becoming dominant in more and more sector of world society (Ritzer 1996). Barber (2000) termed the possible outcome of increasing integration and uniformity as a ―McWorld‖ where nations are pressed into one commercially homogeneous global network. Barber also saw the antipodal force of retribalization that is opposed to every kind of interdependence, with the result being that the ―planet is falling precipitately apart and coming reluctantly together at the very same moment‖ (2000).
Converging tastes and preferences of consumers, growing similarity in mass media experiences, escalating world-level communications, and increasing mobility of theworld‘s population may seem to all point to increasing homogeneity
182 among world peoples. This perspective on globalization, however, denotes aworld in which ideas and practices, generated primarily by the West, dominate overall while alternatives are pushed into oblivion. It fails to reflect possible ―creolization‖ (Hannerz 1996). Fragmentation in the face of homogenization is perhaps best described by Wilk (1995) ―people are not all becoming the same, but are portraying, dramatizing and communicating our differences to each other in ways that are more widely intelligible.‖
Globalization and fragmentation may appear to represent contradictory themes if the former is perceived as worldwide homogenization with increasing sameness of products, lifestyles, patterns of consumption, and cultural experiences, whereas the latter is viewed as new combinations of diverse marketable products representing an array of microcultures (Firat 1996). These two trends, however, can be described as the globalization of fragmentation (Firat 1996). The products, lifestyles, brand names, and images historically linked to separate and initially incompatible cultures become attractive and exciting for consumers looking to escape the dominant ―sameness‖ that can pervade the world. Contrary to the viewthat globalization is simply a process in which the dominance of one culture of style dictates all others; it can be more realistically viewed as a diffusion of available and ―seemingly competing forms of styles‖ (Firat 1996).
Globalization is thus composed of coexisting homogenizing and heterogenizing forces, and the tension between these two forces is one of the key challenges in the cultural economy (Appadurai 1990). He also explored the complex and overlapping order of the new cultural economy by developing a framework that incorporates dimensions of global cultural flow. He envisioned flows of people, technology, money, images, and ideas moving around the globe and consolidating at particular points into national, regional, and local structural formations. The scale, volume, and speed of these flows have become so intense that the disjunctures between them affect the politics of global culture
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(Appadurai 1990; King 1997). The flow may not be unidimensional, but within these dynamics, the affluent part of the world overrides the less affluent part of the world in terms of what is produced and consumed (Ger 1997).
Although advocating alternatives to homogenization, Ger and Belk (1996) argued that the development of a global culture has been forwarded through four distinct developments that apply pressure toward homogenization.
These include
(1) The proliferation of transnational corporations that have built up enormous power to influence the lives of consumers;
(2) The rise of global capitalism that transpired with the demise of Communism in 1989.
(3) The widespread aspiration for material possessions, or ―globalized consumption ethic,‖ as the availability and production of goods increase.
(4) The homogenization of global consumption. These pressures seem ubiquitous and relentless.
In summary, the backdrop of an individual‘s daily consumer behavior and consumption pattern is being influenced by powerful international forces. It is argued here that more must be done to understand consumer behavior with regard to this larger context.
Although research sensitive to globalization and fragmentation issues has been undertaken, as reflected in the prior and following discussion, the majority of
184 cross-cultural consumer behavior studies are at the microlevel (Sojaka and Tansuhaj 1995) and do not draw implications for society at large.
6.2 Globalization, Fragmentation, and Research Imperatives
A recent comprehensive review of the cross-cultural consumer behavior literature that includes 451 empirical studies spanning thirty-five years (Cornwell forthcoming) finds more than adequate coverage of many micromanagerially oriented topics but less than adequate coverage of macrooriented and societally oriented issues. For example, ―countryof- origin‖ studies examining the influence of the country of manufacture or design on consumer decision making was the most researched topic (162 studies), whereas the topics of public policy/consumerism/environment (36 studies) and marketizing economies (16 studies) were relatively understudied.
Most cross-cultural consumer behavior research responds more to marketers‘ needs to navigate the international marketplace than to the need to understand consumer roles in that market place. Managerially oriented studies are important, but there is need for a broader, more encompassing research agenda. Although the processes of globalization and fragmentation are reflected in these managerially oriented areas of consumer behavior research, a more fundamental understanding of core consumption drivers is needed. Given the powerful processes of globalization and fragmentation as a backdrop to consumer behavior, it has identified the four topics of environment, identity, well-being, and market structure as research imperatives that deserve renewed and redirected attention. These important yet underresearched areas represent the natural environment, in which globalization effects are overtly realized; the market structure, a personmade environment relevant to marketing that is often the purveyor of globalization effects; and two aspects of the individual that are strongly influenced by both processes of globalization and fragmentation.
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The complexity of globalization and fragmentation processes demands that consumer behavior researchers in the marketing field shift their perspective from the individual and individual firm toward more macro-oriented research that links individual behavior with social outcomes. This will both improve our basic understanding and at the same time support our applied understanding. In the following sections, globalization and fragmentation issues relevant to each of the proposed research topics are discussed in combination with existing literature on each of these topics. New directions for research in each area are then outlined.
6.3 Environment
Globalization has raised serious concerns for the environment in terms of production and consumption as a result of the domination of the affluent world. Princen (1999) suggested that consumption is a significant driver of environmental change and equally important as technology and population. This view is supported by Ger (1997), who noted that production and consumption patterns are responsible for transboundary problems such as ocean pollution, habitat chemicalization, and depletion of the ozone layer. In particular, carbon emissions, which affect global warming, impinge on all nations regardless of their level of carbon dioxide production (Myers 1997). According to Myers, the marketplace must apply prices that reflect all environmental costs. The price of gasoline, for example, should be calculated on the social cost of air and noise pollution so that those with a strong car culture can gain an education via their wallets.
Further measures to curb consumption include the phasing out of subsidies that stimulate the overuse of resources such as forests, water, and fossil fuels. Incentives should be provided that promote efficient resource usage and practices such as recycling and waste management. Deeply ingrained but unsustainable behavior includes wasteful consumption patterns by wealthy
186 communities accustomed to an excessive lifestyle. The education of consumers may not necessarily encourage them to oppose global consumerism, but, as Ger and Belk (1996) pointed out, it is more likely to assist the consumer to be a better consumer.
For example, consumer resistance in the form of boycotts and protests do take place in the more affluent world, although it is rare in the less affluent world. It has also been suggested that media might play a role in promoting sustainable consumption by persuading people to consume with discrimination and in moderation (Myers 1997). Anticonsumption communications, however, seem to contrast with much of what global media seek to achieve.
In a bid to cajole the environmentally concerned consumer, many marketers purport their products to be ―green.‖ Shultz and Holbrook (1999) questioned the value of these marketing strategies, products, and advertising campaigns, suggesting that it may be ―greenwashing‘ with little true environmental protection or improvement forthcoming. In their analysis, ―Marketing and the Tragedy of the Commons,‖ it argued, ―Environmentalism will be one of the greatest challenges in the twenty-first century. The effect of marketing activities on environmental preservation therefore matters increasingly to many marketers, consumers and marketing policy scholars‖ (Shultz and Holbrook 1999).
Although a handful of cross-cultural studies in environmentally oriented consumer behavior were conducted in the 1990s, it do not constitute the level of research that this topic deserves. More important, most of these studies are in the comparative tradition (Chan 1996; Forman and Sriram 1991), and, although useful in their own right, the study do not consider consumer-related environmental issues in a systematic manner.
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Kilbourne and Beckmann (1998) noted in their reviewand critical assessment of research relating to marketing and the environment that the focus has shifted from the early characterization of the environmentally conscious consumer to more macro-issues related to sustainable marketing and its association with dominant social paradigm. The study suggested that the general body of research has been limited to a narrow managerialist approach but is nowbecoming alert to environmental values, paradigms, and ecological beliefs. Still problematic is the ―lack of interdisciplinary research and the failure to adequately define the environmental problem within the marketing discourse‖ (Kilbourne and Beckmann 1998). Kilbourne and Beckmann concluded that future research issues related to environmental problems should be addressed at the macrolevel to consider consumption modes, marketplace freedom, and economic expansionism. It asserted that the combination of macro-related research with micromarketing represents a major challenge but will present improved opportunities for developing effective environmental policy.
As Shultz and Holbrook (1999) argued, protracted environmental degradation indicates the need for fresh thinking. One avenue to new thinking is the use of system dynamics modeling (Sterman 2000). System dynamics helps address problems that share core elements such as (1) policy resistance, (2) drift to low performance, and (3) ―addiction‖ or dependency (Meadows 1982). Many environmentally oriented consumer behaviors such as recycling include these core elements. For example, consumer inducements and encouragement to recycle have been studied in many countries, but arguably this behavior is policy resistant and drifts to low levels of recycling after campaigns conclude.
In view of the importance of recycling to the health of the environment, there is a need to understand what motivates consumers to recycle and what types of marketing strategies can influence this activity (Lord and Putrevu 1998).
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Kilbourne and Beckmann (1998) pointed out that whereas early researchers were focusing on environmental decline symptoms, only Fisk (1973) targeted the root causes of the environmental problems and used a systems approach to marketing.
Systems thinking and the use of system dynamics modeling allow analysis of a large range of interconnected elements, thus satisfying the suggestion in this framework for micro-macro linking and also the potential inclusion of aspects of well-being and analysis of market structure and policy.
Accordingly, global action research would be appropriate in attempting to modify worldwide consumer behavior to protect the environment. The globalization of lifestyles and patterns of consumption popularized in theWest is not sustainable. Moreover, as will be seen in the next section, increased levels of consumption do not necessarily lead to increases in well-being. Contrary to the global consumption ethic, consuming less may actually be better for the world psyche as well as the natural environment.
Well-Being The push by dominant Western countries to look for new markets and cheap labor in less advanced countries, combined with the proliferation of Western values on global culture (Steingard and Fitzgibbons 1995), has implications for societal well-being. Global marketers, for example, encourage extravagant consumption that not only ―ties up wealth that should be used to help the poor‖ (Borgmann 2000), but also can lead to consumer degradation (Borgmann 2000) in the affluent world. For less affluent societies, awareness of high levels of consumption in developed countries may engender envious discontent (Ger 1997).
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Wilkie and Moore (1999, 216) offered an insight that is particularly relevant to this article when the researchers asked, ―To what extent do marketing managers view themselves as having responsibility for improving the public interest or acting as stewards of a society‘s resources?‖ This questions whether our current aggregate marketing system actually represents the best of all possible worlds. Decidedly, there are many authors who believe it could be done better (e.g., Heilbroner 1985; Wallerstein 1983), but doing better for all peoples demands significant revision of our current capitalist framework and the related dominant social paradigm that leads to overconsumption in the West and underconsumption in the Third World (Kilbourne 1998).
A recent assessment of the economic well-being afforded the United States as a result of marketing demonstrates the undeniable contribution that marketing has made in a macroeconomic sense (Wilkie and Moore 1999). As examples, Wilkie and Moore (1999) cited contributions to employment and personal income, freedom of choice in consumption, delivery of a standard of living, mass-market efficiencies, and international development. The study also balanced their discussion by drawing attention to concerns wrought in part by the aggregate marketing system that includes the promotion of materialism, negative influence on cultural values, cultural imperialism (including natural resource depletion), and inequities in benefit distribution. Although this is only a sample of their more detailed analysis, it is evident that some ―externalities‖ of marketing success in the United States are absorbed by other countries (e.g., a foreign location of environmentallyunfriendly production processes). In fact, a whole system of redefinition of class is related to these ―externalities‖ in that social distinctions are emerging as a result of the division of environmental and technological risks (Cohen 1997).
In the same year asWilkie and Moore published their analysis of marketing‘s contributions to society, Hill and Adrangi (1999) published their analysis of global
190 poverty. Their analysis of UN data on human development and human poverty shows that almost one-third of the world‘s population live in lowhuman- development conditions and are income poor, die prematurely, and lack access to formal education (Hill and Adrangi 1999). Additional research by Hill and Dhanda (1999) shows that poverty is negatively related to empowerment.
All of the authors just mentioned support the notion that marketing, in practice and as an academic discipline, should focus on the improvement of economic well-being or, as the case may be, poverty reduction, and that much of the work will be done in the areas of consumer behavior and public policy in marketing. This desire on the part of academic spokespeople must, however, reconcile with the power of transnational corporations and their trajectories (Beck 2000; Jones 2000), which are often unbent by concerns of environment, social responsibility, or quality of life. In fact, Henderson (2000) found that transnational companies combat global market regulations with innumerous legal challenges, political fundraising, lobbying, stonewalling, market manipulation, corruption, and even repression.
In addition to a focus on economic well-being, the consumer behavior discipline is calling for an examination ofmarketing‘s role in subjective well-being. Objective conditions, such as work, leisure, family life, and consumption, interact with subjective values, aspirations, and expectations that lead to subjective well-being (Ger 1992). Desires for shopping and consumption pervade daily lives to the extent that ―the meaning of life is sought, identity is constructed, and relationships are formed and maintained more and more in consumption‖ (Ger and Belk 1996b). Borgmann (2000), writing on the moral complexion of consumption, found that consumers (in rich and productive countries) have become degraded by the nature of their consumption. Reliance on devices to solve problems and the material ―quick fix‖ has left consumers disengaged from ―focal things and practices‖ that once gave life meaning. Borgmann explained
191 that prosperity can be divided into wealth and affluence, with wealth being social arrangements that allow engagement with the things in life that matter, and affluence being the social condition that encourages potentially unfulfilling consumption. Ger (1997) suggested that a material culture will ―aggrandize at the expense of the human and the environment and reduce the meaning of life to the material and a passive destructive dependence on that material.‖ She thus recommended human consumption as a sustainable option that also enhances well-being.
In psychology, the same theme is found in Csikszentmihalyi‘s (1999)work entitled, ―IfWe Are So Rich, Why Aren‘t We Happy?‖ According to Csikszentmihalyi, material well-being has an ambiguous relationship to subjective well-being in part because individuals tend to think in terms of their ―relative deprivation‖ and compare themselves to those who have the most in society. Thus, as income disparities in developed countries widen, more populations are unhappy and, as the wealthy lifestyle is communicated in worldwide media, all nations can make comparison with the very rich and become dissatisfied.
It is recognized that consumers belonging to societies that are less affluent and in transition can experience stress in approaching the imagined ―good life‖ of the Western world.Kilbourne, McDonagh, and Porthero (1997) addressed this disparity in the distribution of wealth between countries and its consequential negative effect on consumers who lack the opportunity to consume. The study suggest that pareto optimality ―is offered as a value-free criterion of efficiency and becomes a justification for the status quo, which is manifestly unjust‖ (Kilbourne, McDonagh, and Porthero 1997), and can only be used to justify inequitable distribution if there is continuous economic growth.
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Consumption may be personally and socially enhancing for consumers in the affluent world who have affordable choice, time, knowledge, and skill; however, it may be frustrating, alienating, and damaging for less affluent societies when envy and discontent are experienced (Ger 1997). Thus, Strijbos (2001) argued that, the most important goal in the era of globalization should be concerned with identifying solutions to satisfy the material and immaterial needs of the world‘s population.‖
As a foundation to research in well-being, there exists already a large body of literature in marketing on quality of life. Quality of life (QOL) research in marketing has been summarized in six areas (Sirgy and Samli 1995): measures of QOL, marketing and satisfaction/dissatisfaction, QOL of vulnerable populations, aspects of lifestyle and QOL, impacts of particular industries/products on QOL, and expectations of future QOL. Although new studies of material and subjective well-being can build on existing QOL research, there is no shortage of unanswered international research questions:
• Can material well-being and subjective well-being be market driven locally and in the global context? Are there combinations of products and services that could be both profitable for firms and more positive for consumers?
• What lifestyle alternatives found across cultures are associated with increased well-being? Consumer behavior researchers have a role to play in helping more of the world‘s population become free from real and psychological poverty. Extravagant consumption may not make those extravagant consumers happier and, as noted by Borgmann (2000), is detrimental to those in poverty by tying up wealth. Research needs to be undertaken to investigate various international approaches to lifestyle modification including voluntary simplicity and ambition for saving versus spending.
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• How is well-being best measured, and what research instruments can be developed to help measure the state of and improved well-being? (See Hill and Dhanda [1999] for a discussion of measures important to vulnerable groups.) A clear challenge exists in finding cross-culturally appropriate measurements. Interdisciplinary research including perspectives from anthropology, sociology, and psychology is needed.
Well-being must be studied at both the micro- and macrolevel to be most meaningful. How might large-scale studies be undertaken? Consumer behavior researchers may have to work with governments to gain access to information and people to conduct research with the aim of improved well-being. This challenge suggests that researchers might become more proactive in applying for grants, perhaps from sources that support investigations of improved well- being such as the Asian Development Bank and World Bank. Well-being is linked in part to the feelings one has about ourselve, our opportunities, and our limitations. Given that globalization, as discussed, pushes homogenization while at the same time supporting individuation, there is potential for a strong influence on the development of one‘s chosen identity. This is described in the next section as elective identity and is arguably a new phenomenon at the global level.
Elective Identity A working definition of elective identity is that sense of self that is developed by choice and change. It is the identity that people are able to self-fashion from the world around them, to pick up and discard at will. Some will argue that consumption as a source of identity has filled a void left by strong nation-states and by other social changes such as the empowerment of women (Du Gay 1996; Elliott and Wattanasuwan 1998). Others find consumption to be nothing less than the leading player in a dramatic world transformation (Friedman 1994; Miller 1995). Our interest here is in how the elective identity pursuits of consumers are both drivers of and outcomes of globalization and fragmentation.
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The ease of access to other cultural tastes and products can create a comfort with other nationalities and a sense of being part of an international society. Firat (1996) argued that international media enable individuals to feel a social proximity with the rest of the world without physical proximity as a result of perceived closeness to media ―friends.‖ He stressed that membership in an international society does not entail a rejection of one‘s nationality but that people live in multiple, or multilayered, cultures. The products relating to these cultures gain a particular importance and enable consumers to sample and experience other cultures without physically relocating.Products from different national or ethnic cultures can become attractive, particularly when ―mixed and matched‖ to produce a perception of individuality.
In cross-cultural studies and, more recently, in consumer behavior, there has been a recognition of the ability of an individual to ―self fashion‖ identity, especially through crosscultural exposure (Gould and Stinerock 1992); and culturally diverse role possessions play in defining, securing, and communicating one‘s identity (Belk 1984). Examples of the relationship between identity and consumption abound. Ger (1997) cited Weismantel (1989) and the example from Zumbagua, Ecuador, where white bread is symbolic of the dominant culture and barley gruel is associated with the Indian ethnic identity. Eating bread, therefore, is considered to be a threat to indigenous identity and family strength, and requests by children for this product can cause an emotional reaction from their parents.
In both affluent and less affluent countries, youth subcultures resist their parental, local, and national culture by affirming their identity through body piercing and clothing (Ger 1997). Likewise, the global cultural flows that include technology, ideas, images, and people (Appadurai 1990) affect the ―rules of the youth culture and create a recognizable worldwide identity.‖ Amin (1997) described
195 globalization as juxtaposing hybrid places and hybrid identification that can be viewed as unity in diversity.
The consumer behavior perspective on identity stems in large part from research in psychology related to the self. Self-concept, or self-identity, has received substantial research attention in mainstream consumer behavior, but culturally oriented or cross-cultural investigations are fewer in number (see Olsen‘s [1995] ethnographic work, Consuming Rastifari, as an exception). The intersection of product and international context produces various potential meanings to be used in identity construction. For a local consumer population in Africa, the desire for African marriage necklaces will be linked to social relations and cultural forms, whereas for the international Euro-American consumer population, the desire is more likely to be associated with imagined exoticism and a vague understanding of the beads of original African owners (Straight 2002).
Holt (1998) suggested that a desire for perceived exotic consumption objects is the most powerful expression of the cosmopolitan-local opposition. It can also be argued that this process of international consumption allows a re-appropriation of meanings and breaks the relationship between signified and signifiers while blurring the boundaries between copy and original as well as past and present (Gladstone 1998). This reconsignment of the meaning of foreign products by the culture of reception has been labeled creolization. In contrast with the Coca- colonization or McDonaldization paradigm, which involves the outward flow of goods and values from the West, it relates to the inflow of goods and their domestication (Howes 1996). Technology and communications also play an important role in elective identity. Oppositional consumption that used to oppose establishment values can be successfully integrated across cultures using digital technology (Ozanne and Murray 2001). Owing to mass media communications, the Internet, worldwide sports, and entertainment events, the transformation\ of identities is a global phenomenon with similarities across nations and peoples.
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An illustration is that of young people who identify, in terms of lifestyle orientation, more with each other worldwide than with their parents (Dailey and Carley 2003).
The pressure placed on young people by the relentless consumption mantra is such that young people feel obliged to buy branded products to fulfill their identity, even when these purchases leave more basic needs unmet. For example, a young mother and teen ward of the state told U.S. researchers (Cornwell and Gabel 1996) that when she had money, she bought her baby an expensive outfit and a pair of Barney shoes. The purchase of expensive clothing helped her support her identification with the image of a good mother. The importance of image is reflected as an international issue in developing countries where young people are reached by tobacco companies via sport and community sponsorship (Cornwell 1997). Images of health and success related to tobacco usage are used by young people to develop their self identity.
Individuals must out of necessity craft or at least consider the identity options available to them; and, despite its importance, this kind of self-fashioning or elective identity has been explored in only a few studies (e.g., Gould and Stinerock 1992).
Key research questions that arise from the issue of elective identity in a globalized era include the following:
• To what extent does the exporting of Western television programs around the world affect individual‘s sense of identity?How is one‘s sense of identity related to ones well-being? It suggests that these research questions are particularly pertinent to the youth culture, and study of the effects of the internationalization of sports, music, and entertainment of all kinds is required.
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• How significant are cross-cultural segments, such as youth culture and cosmopolitans, in the development of elective identity? To what extent are these opinion leaders shaping cross-cultural consumer behavior via the Internet and other technologies? To address this research issue, research methodologies using online focus groups with worldwide participants, Web-based surveys, and SMS (short- message service) key indicator surveys would be appropriate.
• What detrimental shifts in consumption patterns related to the attainment of identity aspirations can be identified? Perspectives that recognize the consumer as also producing a pattern of detrimental consumption (that which has potentially negative implications for the self, community, and natural environment) in their choice would be helpful (see Gabriel and Lang 1996).
As branded merchandise, entertainment, and daily life become more intertwined in the global milieu, the sources of identity elements proliferate and evolve. There is a growing need to understand the market structure that supports identity development.
Market Structure and Policy As products and services have been adapted to meet the needs of an international society, it is argued that there has been a shift to fragmentation and diversity rather than standardization (Segal-Horn 2002). Global firms, such as the McDonalds fast-food chain, are known to adjust their products to meet the preferences of local customers. These adaptations, however, relate not just to McDonalds selling tea in the United Kingdom and beer in Germany, but also to acknowledging microcultural needs. One such example can be found in specific regions of Australia with high Muslim populations, where burgers made from halal meat are offered.
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Penaloza‘s (1994) work on the acculturation of immigrants suggests that marketing plays a significant role in supporting subcultural development and maintenance. The overwhelming nature of the globalizing experience makes individuals retreat to the known or the knowable, and here, products, services, and global brands offer an aspect of continuity, oftentimes forming a global market segment across nations and cultures. Thus, market structure,as shaped by business and government, plays a key role in consumption patterns—a role beyond th e basic study of quotas, tariffs, and market-entry strategies.
The profundity of market structure to individual behavior options is made abundantly clear in Sen‘s (2001) discussion of development economics as a set of freedoms. Sen argued that public policies that foster human capabilities and substantive freedoms must work through the development of an interconnected set of political freedoms, economic facilities, social opportunities, transparency guarantees, and protective securities (2001). Moreover, Sen found that lack of these freedoms are not only of concern for developing countries but also missing in some enclaves of developed countries. For example, Sen pointed out that African Americans in the United States, despite being many times richer than people in China or parts of India, have a much shorter life expectancy and have been deprived of the freedom of living to a ripe old age. Sen noted that the causes of this difference include social arrangements, medical coverage, health care, education, law and order, and the prevalence of violence (2001). Sen‘s freedom-centric perspective is, by his own admission, very similar to discussions of QOL that have been mentioned previously but stem, in this case, from economics. Sen‘s writings also suggest that aggregate and cumulative statistics such as income and wealth are misleading. To best understand the evolution of market structures and the influence of policy, one must take more refined measures, measures that look at influence, control, and unfreedoms as it develops. Market forces also contribute to disparities amongst nations. For example, Zook (2001, 1681) examined knowledge industries that supply Internet
199 content and found that places such as the United States, which market and produce
Internet content, possess a distinct advantage over the rest of the World. Zook‘s (2001, 1690) application of an Internet consumption quotient, which provides a standardized measure of the relationship between the supply (number of domains) and demand (number of users) of Internet information in a country, uncovered four main categories: 1. Content consumers that are primarily importers of Internet content and have no developed indigenous system to produce their own content (e.g., Eastern European and developing countries, Spain, Singapore, and Japan) 2. Internet islands that have sufficient domestic Internet content for their users‘demands but still import Internet content from the global market (e.g., Australia and Israel) in view of their isolation from the Internet‘s emerging cores 3. Export enclaves that export content but are not as active in promoting domestic consumption (e.g., India) 4. Global traders that both produce a well-developed indigenous system and also export content (e.g., North America and Western European countries)
This classification highlights the domination of the United States and Europe in the diffusion of the Internet to the rest of the world, and suggests that the flows of data and communication emanating from this Internet core have major implications for cross-cultural consumption.
From an international marketing perspective, a great deal of consideration is given to different aspects of market structures (e.g., the number and size of retailers, level of competition, and role of government). In fact, a study of structure and policy at the macrolevel is central to any market entry analysis. Much less attention, however, is paid to consumer behavior strategies to cope with structure or policy that is at variance with individual consumer goals.
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As an example, the concept of outshopping, or shopping outside the local market, has received very little attention in the studies reviewed here. International outshopping has been studied along the United States–Mexico border using survey research (Dawson and Garland 1983), from Singapore into Malaysia using survey research (Piron 2001), and in the United Kingdom– Republic of Ireland border using an ethnographic approach (Wilson 1993). Shopping forays from one country to another are often inspired by dissatisfaction with local market conditions (e.g., price and selection) and ebb and flow as relative currency values change and as economic policies such as those related to excise duties are imposed or lifted. The presence of outshopping often implies a unique consumer behavior pattern and a developed consumer infrastructure specifically accommodating to the behavior. Wilson (1993, 296) described this behavior for a small Irish border town:
Newry retailers recall that throughout the early part of the decade it was not uncommon to have busloads of shoppers arrive from as far away as Cork, at the southern tip of Ireland a full eight hour round trip away, unload for a frenzied few hours of shopping, eating and drinking, and depart with shopping bags full of cigarettes, spirits, beer, and a fewtoys as wee gifts.
In considering the routes consumers take around market structure and policy, it also requires to look at the dark side of international consumer behavior including individual arbitrage and smuggling. Although Belk (1995) and Mick (1996) noted a widening of the consumer research agenda to include the dark side of consumer behavior (such as materialism, shoplifting, compulsive buying, prostitution, and addictions related to drugs, alcohol, gambling, and cigarette smoking), this has yet to be mirrored in the international marketing literature. The Internet is fast becoming a conduit for the consumption of illegal products and services that enables consumers to bypass local regulations. Online gambling (Hammer 2001), online pornography (Alexander 2002), and the online accessing
201 by minors of products such as wine (Toomey and Wagenaar 2002) and tobacco (Ribisl 2003) are a few examples of clandestine consumption that need further investigation from the perspective of international consumer/v consumption behavior. On a more positive note, the Internet is also a tool for online grassroots advocacy for the discouragement of illegal practices such as youth smoking (Ribisl 2003).
A further issue that should be addressed is the price related arbitrage between markets that begins with an individual entrepreneur posing as a consumer in one country and then acting as a gray or black market trader in another country. Multinational corporations often show interest in large scale arbitrage, but suitcase entrepreneurial activity is mainly the concern of border guards. This chameleon consumer entrepreneur role is deserving of researcher attention. From the consumer behavior perspective, it is interesting to understand consumer participation in gray marketing practices, and from the international marketer‘s perspective, it is important to better understand the flow of goods through unauthorized channels.
In examining the dark side of international consumer behavior, one also finds smuggling activities. This behavior can range from the small-scale inclusion of fresh fruit and cheese in the bounty of a tourist‘s treasures to organized illegal trafficking. One area in particular that would benefit from a cross-cultural consumer behavior perspective is the smuggling of wildlife. According to Interpol, the international police agency, wildlife trafficking is the second largest form of black-market commerce, behind drug smuggling and ahead of arms dealing (Animal Genocide 1994). There is a need to understand the persistent consumer demand for exotic animals as pets and Oriental .s, which oftentimes use body parts from endangered or exotic animals. For example, the legal trade of deer velvet antlers and deer parts has been fueled by the anti-aging–obsessed United
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States market (Claridge 2002). Moreover, researchers need to examine the belief systems and myths in certain cultures that support consumer markets for illicit and legally traded goods.
Although policy initiatives abound, tends to focus on increased custom‘s control (Serko and Kane 1994), wildlife protection, and substitutes or alternative sourcing (Engardio 1992) and do not appear to be informed by a consumer behavior perspective. Many other dark issues have not been addressed from the consumer behavior perspective, including product piracy and counterfeiting; trade and smuggling of donated organs; and illegal immigration services, which sometimes result in the death of those seeking to immigrate and the illegal adoption of children.
6.3 Paradigm Plurality and Integration
Obviously, many of the suggested cross-cultural consumer behavior research issues require different perspectives, research tools, and points of entry than much of our managerially oriented marketing research. The risks and challenges are, however, no greater than those regularly faced by international researchers in areas as diverse as cultural and social anthropology, sociology, and biology, to name but a few. This situation requires the use of diversity and paradigm plurality of two types: intercultural and interdisciplinary.
First, as argued by Craig and Douglas (2000) with regard to international research, one need to decenter our theories and constructs by removing the influence of a dominant culture or philosophy. According to Craig and Douglas, research approaches tend to reflect the dominant research paradigm values or philosophy of a given culture (2000, 394). This happens, for example, when researchers attempt to investigate concepts that really have no meaningfulness outside the dominant culture. For instance, those growing up under a Western
203 medical system may find it difficult to understand the consumer demand for non- Western treatments and .s. In these instances, Craig and Douglas suggested the participation of researchers from different cultural backgrounds to aid in decentering the research program.
Secondly, the research questions suggested here require an interdisciplinary perspective. Researchers interested in policy and economic levers must be willing to learn from ethnographers. Likewise, interpretivists must be open to learning from positivists. These are multifaceted research questions, and are in need of multifaceted research programs.
Thus,following are recommended: • Diverse research teams including those from different cultural backgrounds (as discussed in Craig and Douglas 2000) as well as those from different research traditions. Multi method studies (beyond the traditional qualitative exploration followed by survey work) are encouraged, as are longitudinal studies.
• Clearly, research of this nature is important, but some would ask How challenging will it be to publish research on these topics? This is a real concern. One answer is to consider high quality research outlets that are general in nature and welcoming to macro-oriented work. Although publishing outside the business discipline is an option for some, it is preferable to bring these topics more fully into mainstream marketing and consumer behavior research. With the rise of corporate social responsibility and shareholder expectations regarding triple- bottom-line contributions to economic, social, and environmental performance, it is perhaps academic publishing that is behind the times.
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6.4 Micro-Macro Linking
Marketing, as a discipline, has always explicitly examined both micro- and macro perspectives (e.g., Hunt [1976] micro macro dichotomy), and the same is true of consumer behavior; however, linking micro- and macro variables has not been a research priority. Developing a micro-macro linkage in research demands analysis at two levels (individual and societal) and, equally important, some understanding of feedback or interactive relationships. Or, as social science researchers phrase it, ―Linkage is how to create theoretical concepts that translate or map variables at the individual level into variables characterizing social systems, and vice versa‖ (Gerstein 1987, 86). There is some precedent for the type of research being suggested. For example, a stream of studies on marketizing economies (e.g., Damjan 1993; Lofman 1993; Shama 1992), and the spread of a culture of consumption (e.g., anderson and Wadkins 1991; Joy and Wallendorf 1996) attempt to relate micro- and macrophenomena. Perhaps one of the best examples would be the work of Penaloza (1994) on the consumer acculturation of Mexican immigrants. Penaloza tied the individual experiences of immigrants to the institutionalization of Mexican culture in the United States and explains how marketers actually participate in creating the character of a market, thus linking micro and macro analysis and contributing to our understanding of an overall system. This perspective includes societal interactions between individuals as well as resulting societal structures and institutions.
Micro-macro linking is relevant for all substantive foci outlined in Figure 1. The most obvious need for micro-macro linking is in examinations of behavioral impacts on the environment.
Research of this nature investigates the interplay between individual behavior and the total system. For example, it examines how individual well-being relates to societal well-being. In this area, the research of Shrum, Wyer, and O‘Guinn
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(1998) and Sirgy et al. (1998) on the effects of television consumption on social perceptions holds implications for micro-macro linking. When consumers, as a result of their individual television-viewing patterns, develop a social reality in which the consumer feel disadvantaged (despite this feeling stemming from a comparison to programming content rather than from comparison to other real consumers), cumulatively, social well-being is eroded.
This suggested emphasis on micro-macro linkages may require the consumer behavior researcher to consider new methods and new paradigms, but the expansion can only be illuminating. What is being suggested is more than simple aggregation in the move from micro to macro. Again, referring to work in sociology, The logic of combination differs from that of aggregation in that whatever factors are combined are done so . . . by attempting to assess variables that are qualitatively different in character but, when combined, give a more adequate explanation of some macrophenomenon. (Mnch and Smelser 1987, 377)
There are many routes to linking and combining: • Venkatesh (1995) advocated ethnoconsumerism as a paradigm to study cross- cultural consumer behavior. Although this research has something in common with the emic-etic (within and across language) perspective of Pike (1967) in advocating study from the viewpoint of the cultural group, it contributes a consumer behavior perspective to the approach and supports consideration of both individual and societal behavior.
• Memetics is a new paradigm that has only recently been introduced to consumer behavior (Williams 2002). Memes include concepts and practices that move directly from mind to mind as a result of imitation (Barnett 2002). Transmission of these nongenetic cultural traits is said to be selective, with good or valued traits being perpetuated. Although memetics is still in its infancy as a
206 paradigm, it constitutes a basic building block that is meaningful at both the individual and societal levels (Gatherer 2002). • Another consideration for cross-cultural consumer behavior research is other- centered love as a paradigm to further the consumption adequacy of the poor on a global basis (Hill 2002). This perspective focuses on the QOL experienced by the poor and seeks community-based solutions.
• Theories of internationalization, even the most flexible such as an eclectic paradigm (Tolentino 2001), tend to focus on firms and countries and not consumers and markets. Consumer-led markets for products and services such as those discussed as dark-side consumption do not have an identified internationalization process. Consumer tastes and preferences might feature in market-entry strategies, but this belittles the consumer‘s role in the creation of international channels of distribution, product specification, and the development or curtailment of demand.
• One methodological approach to micro-macro linking would be to use system dynamics, as advocated earlier in the section on environment.
• Future research (Glenn 1994) could also be considered, especially normative forecasting, which addresses the following questions: What future do one wants? What is the desirable future? What does one want to become?
Just as globalization and fragmentation are two parts to one story, so are macro- and micro perspectives. In each of the research areas outlined, our need to understand the individual is just as great as our need to understand the whole and the relationship between the two.
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Navigating through the impact of globalization and fragmentation processes on cross-cultural consumer behavior, this chapter has drawn attention to necessary research and the potential for new approaches to research these problems. The framework offered here, and developments based on it, incorporate the basic building blocks of human interaction including the natural environment, our identity and wellbeing, and the structure of market
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CHAPTER 7 A POSTMODERN APPROACH TO CONSUMPTIO PATTERN
7.1 Introduction
This chapter investigates the post modernist notion of consumption and attempts to identify some of the concerns raised by this postmodern.
It is facts that post modern is hard to define, because it is a concept that seems in a wide sort of disciplines or area of study including literature, music ,art etc.it‘s difficult to build it contextually and historically ,or because its not certain exactly when postmodernism commences. Postmodernism is such an intricate notion or set of ideas that are highly controversial even among postmodernist themselves. The term has come into sight s a field of academics study since mid -1980s. At this point ,from a literary perspective the main features of postmodernism is only apprehensible by thinking about the movement from which postmodernism appears to come into being. This means that postmodernism is essentially an analytic notion which emphasis the differences and diversity of former movements.All the premises like ambiguity ,simulation,collage,parody,desire,hyper-reality etc.can be considered as qualifiers of the situation called ‗postmodern condition‘ that in an constant way ,compose the daily practice of the contemporary life.
In addition to these features, many scholars argue that the consumption is the most crucial representation of postmodernism in contemporary life. Theoreticians who have found a notion of postmodern society(e.g Firat and Venkatesh,1995;Van Raaij,1993;Elliott 1994;Baudrillard,2004)or a late modern society(e.g Jameson ,1994;Fatherstone ,1996;Giddens,1991;) which is distinct in quality from former structure of society. These discussion states that consumption and culture based consumption are the basic characters of
209 postmodernism rather than production. In relation to this ,social theory is nowadays concentration on consumption as playing a key role in the way daily life is constructed ,and it can be discussed that consumption practices have the central role in giving meaning to life through consumption (Van Raaij,1993).Furthermore ,when one looks at the social theories about everyday life practices including consumption in recent years ,many thinkers likeBarthers,1990,1999;Bocock,1997;Debord,1967;Kellner,1988;Jhally,1988;Best ,1991;Harvey,1999;Firat,1991 have examined the relationship between consumption and culture.
It is suggested in these studies that in post modernity the consumption of symbolic meaning ,especially through the use of advertising ,style of architecture, form of entertainment, choice of consumption ,etc., figure as a cultural commodity, allows the potential consumer with the chance to assemble ,perpetuate and communicate identity and social meanings. These studies confirm that social ‗reality‘ is constructed for human being through structurations that are crucially determined by the economic that ,in turn has to be mediated by the symbolic (Harvey,1999;74).well ,the significance of the consumption,classification of the consumption and identification of cultural meanings and images that are intended for the product activities. In postmodern phase of consumption, the process of consumption is liberatory, paradoxically combined with both ‗real‘and the imaginary.
7.2 The Postmodern Consumer
The postmodern society of today emerged as a reaction against the more traditional and established forms of modernism (Berner). The move from modern to postmodern societies suggests changes within consumer characteristics and consumption patterns. The modern consumer was characterised by stability with focus on facts and rational thinking (Berner), whereas the postmodern era has
210 influenced markets to be more unpredictable, as consumers are becoming more spontaneous and are drawn towards brands for the image it represents and not their functional attributes. Consumption is no longer defined by the cost/benefit assessments of choices (Firat and Schultz), rather consumers find it increasingly important to satisfy higher needs through purchases. Hence, it can be argued that postmodern consumers to some extend have turned Maslow‘s hierarchy of needs upside-down. According to Firat and Schultz the postmodern consumer ―consumer has evolved into Homo consumericus, a creature defined by consumption and the experiences derived there from‖ , thus for the postmodern consumers the self is not consistent . As further stated by Firat and Schultz, the principal goal of these postmodern individuals ―is to (re)produce and (re)present oneself as an image‖ . Consumers hereby actively enter the market and make brand choices in order to produce their self-images, with the anticipation that the brands consumed by them will match or enhance the lifestyle and the self-image which these consumers wish to convey to their social environment .This means that the relationship between product and image is reversed, as images no longer represent the product values as within the modern era (Firat and Schultz (1995). Instead the products should represent the image, as postmodern consumers purchase products to achieve values recognized herein .Consequently one can further argue that the symbolic functions and the image are more important than the functional and material. Another condition of the postmodern era is the increasing avoidance of commitment to any single idea and the unwillingness to conform to pressure for brand loyalty (Firat and Schultz 190). Hereby consumers merely exercise freedom of choice and movement where impulse command (Berner). In such environment where only a momentary attachment towards the brand is present, as long as the image represented is seductive, a continual reproduction and repositioning of images is necessitated (Firat and Schultz 1995).
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As the postmodern evolution is considered to be global (Firat and Schultz), it is assumed that U.S. consumers undertake the same characteristics discussed above. The shift from the modern to the postmodern society has profound implications for the majority of organisations and brands of today, having to learn how to adapt to this postmodern era, its dominant consumers, and societal changes brought forward (Firat and Schultz, 1998). There is a need to understand how these consumers perceive value, making it important for brands to provide products that represent the desired images, and not just provide images presenting the already existing products.
The above postmodern consumer perspective sees the development of society as a possibility, and is the perspective held by this thesis, mainly due to personal standpoints in connection with the presented world view. However, a contradicting perspective is present within scepticisms of the postmodern society, where the era is perceived as a superficial reality, lacking depth and characterized by identity confusion (Simmons). Even though this latter perspective does not see the postmodern era as an opportunity, it still agrees with the above, and the thesis‘ perspective in consumption no longer being a passive act of consumers. Hereby, it is important for brands to see possibilities within this era, and adapt strategies hereto.
7.3 Postmodern Conditions
The literature on postmodernity is already vast and is growing with increasing velocity. Contributions to this literature come from a large variety of disciplines and, therefore, the vocabularies and perspectives are also varied. While it might be difficult to fit all the discussions in one concise framework, certain conditions do seem to receive the greatest attention. These conditions tend to behyperreality, fragmentation, reversals of production and consumption, decentring of the subject, paradoxical juxtapositions (of opposites), and loss of
212 commitment .Much of the discussion on these conditions, regardless of disciplinary origin, pertains to marketing and the consumer. Many contemporary examples of the hyperreal are grounded in consumption experiences, for example, in the simulations experienced by the customers of the now largest industry, tourism, in theme parks such as Disney World and Universal Studios, or in Las Vegas .More than physical surroundings are simulated in the image of hypes that are constructed and, then, thoroughly believed in by their producers and consumers alike. Consider, for example, the experiences one is promised and one finds in wearing certain brands of sports shoes, denim jeans, and the like. When a community trusts in the promise that a certain brand of jeans, for example, is a statement of privilege or attractiveness or sexiness, for that community the jeans indeed provide the experience promised. Consumption and marketing, therefore, tend to be the most fertile ground for the hyper real, as Consumption and marketing are for the other conditions mentioned. This might be why marketing and consumption tend to take centre stage in discussions of postmodernity regardless of whether philosophers, sociologists, media specialists, artists, literary theorists, or others are the discussants.
A similar argument can be made in the case of other conditions of postmodernity. Consider the postmodern condition of fragmentation. One major force that fragments life experiences in contemporary society is the fragmented moments in consumption experiences and, especially, in marketing communications. In the USA, 30-second commercial television spots succeeded the one-minute or longer spots of the 1960s. The 30-second spots are now being succeeded by 20- , 15-, ten- and even five-second spots and these spots themselves are divided into many fleeting split-second images. A novel trend is to fragment a television commercial by slicing it in the middle. This is done by either slicing a ―fake‖ commercial by a real one (the ―Energizer‖ bunny in the USA) or by sandwiching a real, different commercial between two spots for a product. These dizzying, kaleidoscopic, fleeting forms are increasingly being imitated in all human
213 experience and in all other communication media such as music videos, situation comedies, films, and even news media.
The reversals in production and consumption arise from production losing its privileged status in culture and consumption becoming the means through which individuals define their self-images for themselves as well as to others; marketing, of course, being the primary institution which reinforces this trend. It is also in this (re)presentation of self-image(s) through one‘s consumption that the consumer begins to conceive ―the self ‖ as a marketable entity, to be customized and produced, to be positioned and promoted, as a product.
The ultimate consequence of this is the decentring of the subject. The revered ―subject‖ of the modernist narratives is decentred and (con)fused with the object. It is also decentred in the sense that this subject is no longer one but multiple and changeable according to the situation she or he encounters.Commercials for Pepsi Cola, Budweiser beer, and Energizer batteries have sometimes portrayed the brand object as the hero; capable of transforming dogs or chimpanzees into party animals or defeating evil men. The consumer, the human subject, is at the margin – decentred, enjoying the show, and irreverently worshipping the brand object/subject.
Fragmentation, hyperreality, the decentred subject – these postmodern conditions create openings for juxtapositions of opposites. The ability and willingness to (re)present different (self-)images in fragmented moments liberates the consumer from conformity to a single image, to seeking continuity and consistency among roles played throughout life, and the postmodern generation seems ready for such liberation. What in modernist sensibility would be considered disjointed, paradoxical and inconsistent, hence schizophrenic and pathological, is not so considered in postmodern sensibility. To the contrary, the consumer of postmodern culture appreciates and enjoys the paradox and the
214 playfulness, the difference and the satire that such juxtapositions provide and enable. The uniformity of style, function, form and content inherent in the modern, whether it be in architecture or fashion, for example, that is predicated on a ―universal‖ rationale of, particularly, economic efficiency is increasingly rejected. Instead, postmodern culture liberates the experiencing of that which is different, even paradoxically opposed.
Consequently, such juxtapositions in style, imagery, discourse, communicative action, etc., abound with examples increasingly found in art, architecture, literature, and the media.Disillusionment with the inability of the modern project to deliver its promises and the growing willingness to experience differences mentioned above both reinforce the tendency in late modernity and in postmodern culture for a loss of commitment to either grand or singular projects. Rather, the postmodern consumer takes on multiple, sometimes even contradictory projects, to which s/he is marginally and momentarily committed, not taking any one too seriously. This loss of commitment is observed in all walks of life: in personal relationships, professional tasks, consumption activities, etc.Marketing managers experience this when the consumer loyalties to brands and corporations that was taken for granted are jeopardized.
7.4 Consumption and ‗Postmodern‘ Consumer Society
In the past one hundred years however, the notion of mass communication has revealed; enormous numbers of people now consume a variety of relatively cut- price, industrially mass produced products. A suggestive change in social and economic structure has emerged, where consumption activities has become ―the idiom of daily life‖ (Ewen, 1976:187).Radically, mass consumption has altered the understandings, views and expectations of our society. Well the move to a culture of consumption was basically caused by the needs and demands of
215 production, the social turmoil and unrest resulting from a new industrial lifestyle, and the proliferation of promotional activities.
Today‘s society which is identified its mechanism about consumption is purely highly consumptive. Consumers consume mass produced commodities in abundance continuously. Consumers are encouraged to consume, consume and consume: Consumers buy, use and discard to live. Consumers are bombarded by powerful advertising and promotional messages that tell us how they should be looked at, how consumers should act, what consumer should buy etc.the dominant message found in all brands ads and promotional acts are the same buy, buy buy. Here, there is an important point, though the mediation of consumption practices consumer firstly buy to accomplish their needs : basic ones and not –so basic ones and not needs(!).This last sentence intends the crucial characteristic of contemporary consumption practices. Relevant to this, concerned to consumption nowadays the identification that the consumer does not make consumption decision merely from product features but also from their symbolicmeanings(Douglas,1982;McCracken,1988;Giddens,1991;Dittmar,1992; Gabriel and Lang 1995) .
As consumption constitutes a key role in providing values and meanings for creation of the consumers personal and social world, so all the promotional activities are identified as one of the prominent sources of these symbolic values and meanings(Elliott,1997).these cultural values and meanings are transferred to brands and brands often used as symbolic resources for the construction of consumers social world(Mick and Buhl,1992).This is the process ,so broadly and from this point of view ,consumption has become a cultural ideal. There are many indications of this tendency which recognized ‗postmodern‘ in essence that have an impact on social theories and everyday life practices.Social theory is now focusing on consumption is the major premises of postmodern culture(Firat,1993).as mentioned above, the postmodernism perspective on
216 consumption has recently acquired the attention of many scholars(Brown,1993;Van Raaij,1993;Firat and Venkatesh 1993,1995;Venkatesh ,1990;Baudrillard,2003).Truly theses scholars have claimed that postmodernism may considerably affect the way that consumption practices are realized in consumer‘s daily life.Besides Sociologist Ritzer(1998) comments that ―postmodern society is seen as being more or less synonymous with consumer society‖.Ritzer remarks also Jameson‘s (1994) and Featherstone(1996) as exemplars related to this comments. Importantly Cova who is one of the most crucial researchers about postmodernism has interesting insights in that subject: ―Recent aspects of our life in general and of consumption in particular have reflected the existence of a major current, the postmodern, that has lately run strong as consumer stumble towards the dawn of the new millennium. Today culture is postmodern ,our manufacturers as post –mordist,our economies ,our post –industrial ,our gender relations post –feminist, our literature post marrative ,our poloyics post Marxict ,and our physics post -Big Bang‖ (Cova,1996)
In the essence of these cites, theoreticians imply the importance of ―a central role In giving maning to life through the symbolic consumption‖. Therefore,consumption should not be valued in relation to its use-values- products,functiionlity or consumer‘s functional needs, but essentially in relation to sign-values ,as signification.Thus,postmodern consumption experiences lay stress on the dominancy of spectacle and hyperrelaity forms rather than ‗real experience‘(Firat and Venkatesh,1995).
It‘s clear that few concepts have enjoyed more popularity both inside an outside academia in recent years than postmodern impacts on consumption. According to this view, postmodernism has an increasing impact on consumption practices including people‘s preferences about their entertainment style, accommodation style, travel practices and especially advertising. Postmodernism consumption practices which have held in common state the fundamental role of consumption
217 to construct the social world (Fetherstone, 1991). In addition to this consumption activities are symbolic and not exactly functional, or price –based essentially .in postmodernity the distinction of products from their basic function is determined by the signifier from the sign (Firat,1995;Brown,1995).the second crucial implication for postmodern consumption of this perspective is that postmodern consumers create their identity through consumption which has dynamics of self ,the symbolic meaning of goods and the role played by brands.
Firat (1995), best known researcher about postmodern consumption, argue that postmodern conditions tend to be hyperreality, fragmentation, decentring of the subject, juxtapositions and reversals of production and consumption. Second crucial view about postmodern consumption which is discusses by Stephen Brawn states that hyperreality, fragmentation de-differentation, pluralism are the core features of postmodern consumption (Brown, 1995).
In addition to theses well-defined features of postmodern consumption in the postmodern culture is also characterized by the commodification of nostalgia ,usage of collage style,post modern intertextuality of consumption text and brandcommunity style(Hirschman,2000;Kozinets,2001;Cova,1997;Goldman ve Papson,1994;Goulding,2002;Holbrook,1993;O‘Donohoe,1994;Mick and Buhl,1992;Stern,1992)
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CHAPTER 8 CROSS CULTURE CONSUMER BEHAVIOR MARKETING RESEARCH
Cross-cultural management research suffers from many shortcomings. While some of these shortcomings are related to methodology, others can be identified as epistemological problems. By recognizing that epistemological positions determine methodological approaches, this chapter attempts to discuss both epistemological and methodological issues in cross-cultural research. Based on extant literature, major drawbacks are discussed and some suggestions for future research are presented.
8.1 Introduction
Over the last decades researchers have shown an increasing interest in cross- cultural studies. Despite this interest, research in the field of cross-cultural management seems to lag considerably behind other fields of management science. In this respect, it has been argued that cross-cultural research suffers from many drawbacks creating impediments for further advances (Cavusgil and Das, 1997; Tayeb, 1994; 2001, Sekaran, 1983). It is believed that difficulties encountered in cross-cultural research are various in nature and may go beyond methodological and practical limitations. While some of these problems can be identified solely as methodological issues, others may be considered as problems related to epistemological positions. Against this backdrop, objective in this chapter is to discuss both epistemological and methodological issues.
8.2 Cross Culture Consumer Behavior Marketing Research 8.2.1 Epistemological Issues Epistemology or theory of knowledge is concerned with the nature. Sources and limitations of knowledge. Epistemological orientations shape and determine our
219 particular view of the world and of reality. It provides researchers with the guiding principles upon which researchers may base our methodologies (Guba and Lincoln, 1985). Therefore, the epistemological positions are in close relations with methodological approaches and it, affect research process in that it permits to develop questions, design the study and adopt appropriate research strategies.
Most of cross-cultural research is based on a realistic perspective both at ontological and epistemological levels. Ontological realism implies that there is an external reality which does not depend upon cognitive structures of human investigators. On the other hand, epistemological realism assumes that the external reality is cognitively accessible to researcher (Johnson and Duberley, 2000). The realism ontology views cultures as existing, stable and real systems of beliefs and practices. Therefore, it is argued that culture as an independent and objective phenomenon can be accurately measured, observed and investigated. This view of culture leads to an analytical/positivistic research strategy. In this way, the researcher perceives reality as tangible, concrete, stable, hard and real with deterministic relations among its constituent parts (Arbnor and Bjerke, 1997). The goal of analytical/positivistic research is to explain (erklaren) objective reality as fully as possible, and most of the time it is assumed that there is only one possible answer to a research question. Influenced by triumph of natural sciences, the proponents of the positivistic approach insist on methodological unity of all sciences and deny fundamental differences between natural and social sciences.
The researchers who make a distinction between the methods of the classical natural sciences and those of the social sciences are often called hermeneutics. The hermeneutics maintain that natural science methods are essentially unsuitable in social science domains (Arbnor and Bjerke, 19997). It underlined a decisive difference between two domains. The difference of these two
220 perspectives is, however, more than divergence in methods being used to create knowledge. The very essential difference between the two paradigms can be considered in terms of their objectives in creating knowledge. While the positivists attempt at explaining the phenomena (erklaren), the hermeneutics aim to understand them (verstehen). The explanation (erklaren) and understanding (verstehen) may have some blurred boundaries, but it has a substantive differences. To explain (erklaren) is to present general relations among characteristics, behaviours or both (Arbnor and Bjerke, 19997). By, contrast; understanding (verstehen) is interpretative understanding of the meaning of actions through some form of contact with actors. In other words, explanation (erklaren) is to provide a deterministic account of external causal variables which shed light on an observed behaviour (Johnson and Duberley, 2000). The explanations should contain operational definitions as far as possible. Otherwise, these results (explanations) might be based on concepts that are not related to objective reality, something that may lead to misunderstanding and confusion (Johnson and Duberley, 2000).
A review of the literature shows that most of the cultural/organizational research is based on a realist perspective and adopts a positivistic approach (E.g. Hofstede, 1980). However, the extent to which positivistic approach can be used to examine a complex concept such as culture has been questioned by many researchers. It is argued that man and his culture are historical concepts that should be understood in social context and cannot be studied in vacuum. Some critiques assert that positivistic approach has rendered cultural phenomena ahistorical, linguistically naive and psychologically unaware (Arbnor and Bjerke, 19997). Other scholars (Von Krogh and Roos, 1995) assert that the positivistic research can be employed to produce meaningful quantitative measures, but the nature of culture renders its understanding through these research techniques very difficult. The positivistic approach emphasizes the importance of generalizations and universal laws, however, cross-cultural research based on
221 this approach has established quite a few generalizations. Most importantly, these generalizations are neither very general nor exact as those in natural sciences. So, how can one rely on them as knowledge? How can it be applied by other researcher practitioners? Among so many cross-cultural researches, very few can provide us with clear, exact and reliable results. Moreover, the findings of such studies should be viewed as highly embedded in social context. Once removed from their original context, these results are hardly replicable to other cases.
Since culture is a very complicated and fuzzy concept, the researchers adopting a positivistic/analytical approach try to choose for parsimonious models (e.g. Hofstede, 1980) utilizing as few variables it‘s possible, with the variables being of an objective kind. On the other hand, by operationalization, it tries to reduce the complex concepts such its culture to concrete indicators. Of course, these parsimonious and highly operationalized models may facilitate the research design, but at the same time may distort the concepts and reliability of results. Some researchers hope to find cause-and-effect relations by incorporating only a few operationalized variables. However, by trying to increase the internal validity of the research (whether or not what has been identified as the cause produces the effect), it may have to sacrifice the external validity (the extent to which the research findings can be extrapolated to other cases). Since much of this research is looking for a supposed narrow causal relationship, it focuses only on very limited aspects of phenomena under investigation and fails to provide an in- depth understanding of cultural phenomena. In that way, the impetus of researchers is to make a priori predictions and test hypotheses rather than understanding and explaining the nature of cultural phenomena (Earley and Singh, 1995).
Despite all the criticism, it should be acknowledged that positivistic studies are characterized by rigor, internal/external validity and intelligible results. Since the
222 results are to a great extent context-free and independent of researchers, the same may be replicated to similar cases and this enhances the predictability of such studies. According to pragmatist/instrumentalist perspective that dominates the knowledge creation of modern world, the value of knowledge equals to its practical use. That is, the more the knowledge is practical, the more it is valuable. Therefore, culture is seen as an instrument to be studied and exploited for better performance and more efficiency. On the other hand, the predictability and practicality may bring more support to further positivistic research. Since these studies try to create practical, hard and relatively context-free knowledge, these studies are more likely to receive attention and financial support from both scholars and practitioners. For instance, the studies adopting a positivistic/quantitative approach have more chances to be published in top- ranked management journals, especially in USA (Johnson and Duberley, 2000). The proponents of positivist approach maintain that many of the criticisms directed to this approach are due to poor research methods, and therefore more advanced statistical techniques should be developed (Johnson and Duberley, 2000). It argues that the problems encountered in positivistic research are due to underdeveloped methods and as more complicated methods are introduced, the quality of research will improve.
Social Constructivist Perspective Social constructivist perspective views reality as a social construction which cannot be independent of us as its observers. Accordingly, the objectivity is created by people and can therefore be changed by them. Furthermore, the objective (or objectified) reality and its meanings influence in turn the people who contribute to create them. That is, there are reciprocal and dialectical relations between the realities and people who create them. Based on constructivist perspective the human beings (the generating actors) and the reality (what is generated) stand both in mutual dialectical relation to each other (Arbnor and
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Bjerke, 19997). Therefore, the researcher attempts to understand and describe the dialectical relations that are continuously reinterpreted.
With respect to culture, social constructivist perspective focuses on the actors" interpretations or constructions of cultures. This means how the actors define their characteristics and those of others. Accordingly, culture is an ongoing interpretation process rather than a stable structure of values and norms. Social constructivism may have many forms. At its radical form, constructivist view claims that cultures and cultural differences only exist when people become aware of them in social interaction (Vaara, 2000). Although researchers adopting a social constructivist perspective are few in number, these researchers have provided interesting and insightful discoveries highlighting the importance of the actors' own interpretations of cultural differences (Gertsen and Soederberg, 1998; Kleppestoe. 1998). It seems that this paradigm is still in its infancy and more advances are needed to distinguish different processes and mechanisms when studying actors' interpretations and constructions of cultural conceptions.
The Constructivist perspective can have important implications for managing cultural differences. The fact that culture should be considered as a construction of actors underlines the importance of managerial issues and perceptions in dealing with cultural differences. This perspective permits us to view culture and cultural differences as mental constructions that can be managed and exploited.
Vaara (2000) argued that rather than contradictory orientations, the realist and constructivist perspectives correspond to two different epistemological commitments and both of them can contribute to a better understanding of the impacts of culture in organizational research. This means that a better knowledge of cultures should take into account both the real manifestations of cultures and the reflexive processes where the actors make sense of their cultures. In other
224 words, one should view culture both as real systems of beliefs and values and actors' interpretations.
8.2.2 Methodological Issues The term methodology has been used in different and even contradictory ways (Lehaney and Vinten, 1994). Despite the differences, it is possible to view method as a demarcation criterion between scientific approaches to the creation of knowledge and non-scientific modes of exploration (Nachmias and Nachmias, 1987). In line with this view, Arbnor and Bjerke (1997) define methods as guiding principles for the creation of knowledge. These principles, on one hand, should be in accord with underlying epistemological assumptions and it should fit the problems under investigation on the other. Thus, by relying upon epistemological positions, the methods provide the link between theory and data, but they remain distinct from theory and independent of the data to be gathered and analyzed (Mulkay, 1991). As mentioned earlier, most of the cultural (and even social) research is based on a positivistic (explanationist) tradition. By adopting this approach, the methods look for models, theories and generalizable law-like principles with a considerable degree of external validity. Accordingly, it is possible to consider typical methodology of cross-cultural research as the study of techniques which are characterized by issues such as conceptualization, operationalization, designing research, formulating hypotheses, building instruments, collecting/analyzing data and building theories.
8.2.3.1 Emic and Etic Approaches Two mater possibilities for studying cultures are emic and etic approaches. Etic and emic are neologisms coined by, Kenneth Pike from Phonetic and Phonemic. The emic approach attempts to describe a particular culture by investigating specific aspects of concepts or behaviours. In other words, the emic approach focuses on studying a construct from within a specific culture, and tries to understand that construct as the people from within that culture understand it.
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The etic approach, on the other hand, involves developing an understanding of a construct by comparing it across cultures using predetermined characteristics. The use of emic or etic approaches depends upon the nature of study. It should be mentioned that there are important differences between the notions of culture and cultural differences and the ways they are studied (Li et al. 2002).
Culture can be studied in every defined society, but cultural differences can be studied only if there are at least two cultures. This has implications for the research approaches since every culture should be identified by taking in account of the other culture. While the effects of culture are testable from one culture alone, the effects of cultural differences are measurable only when individuals from different cultures are compared (Li el al. 2002). Since the etic approach uses variables which are generalizable across cultures (Bhagat and McQuaid, 1982) it is more suitable for broader analyses, usually involving two or more cultures.
The main assumption in etic research is that there is a shared frame of reference across culturally diverse samples, and that construct measurement can be applied to all of the samples in the same way, ultimately allowing for more generalizability (Ronen and Shenkar, 1988). While the eric approach permits a better comparison across cultures allowing generalizability by assuming that there are some shared frames among cultures, it may sacrifice conceptual equivalency and precision of the research. On the other hand, if an emic approach ix used, a more precise and thorough description of the construct within one culture is obtained, but the ability to make cross-cultural comparisons diminishes because the constructs are developed within a specific culture and may not be extrapolated to other cultures. From a measurement standpoint, criteria in an etic approach are considered universal, with less attention being given to the internal characteristics of a particular culture (Berry, 1989).
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Furthermore, the use of an etic approach may be more practical for organizational researchers in terms of financial limitations and time pressures. However. if etic constructs are used to make cross-cultural comparisons, researchers risk not capturing all of the culture-specific (emic) aspects of the construct relative to a particular culture in the study. When researchers choose an etic approach and assume that the concepts being tested exist across all cultures, the researchers are imposing some predetermined constructs developed within other cultures. These imposed constructs may not have the same meanings in target cultures. For instance, some problems may happen when variables designed for one culture (e.g. leadership) are applied to a second culture without modifications. This is the case for comparative studies that try to replicate theories developed in United States to other countries. Some constructs (e.g. performance, leadership) based on western concepts may have different meanings in other cultures.A suggestion for dealing with this problem is to use a combined emic-etic approach, rather than simply applying emic dimensions of one culture to other cultures (Berry, 1990). A combined emic-etic approach requires researchers to first attain emic knowledge about all of the cultures in the study. This allows them to put aside their culture biases, and to become familiar with the relevant cultural differences in each setting (Berry, 1990).
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RESEARCH GAP
There exists a gap in literature impact of culture at the national level is widely followed to understand the cross-cultural differences between the different nationalities. Although this has led to wide contribution to understand the cultural differences and behaviors across various nations but it has failed to recognize the differences between the various subgroups within the nations
The literature on marketing considers India as a single culture with uniform cultural values and consumption patterns .These values can not explicitly explain the complexity of the diverse cultures within India and could lead to erroneous decisions.
Seeing the importance of Indian market in light of globalization it necessitates that this research to unravel the complexities of Indian culture and consumer behavior.
The existing research have used Value Survey Module -1994 by Geert Hofstede, Value Survey Module 2008 by Geert Hofstede (upgraded version). This upgraded version has still not been applied by most of the researchers.
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CHAPTER 9 OBJECTIVES OF THE STUDY
9.1 Problem Definition Defining a problem in cross-cultural research is more complex than in domestic research (Malhotra, Agarwal and Peterson 1996). The formulation of the research problem is the single most important step in the research process (Green, Tull and Albaum 2004). The understanding of the cross-cultural environment is a basic necessity for research objective formulation, so research objectives in different cultural contexts are different than for single culture (Usunier 2000, p.211). Epistemology or the theory of knowledge provides us with the guidelines for the methodologies to be employed and so it affects the research process (Yeganeh, Su and Chrysostome 2004).Methodology cannot be studied in a vacuum and it has to be linked to the knowledge domain (Venkatesh and Dholakia 1986). In the initial stage to gain insight into the issues involved in cross-cultural research and consumer behavior detail literature review was undertaken. The literature was investigated to explore the issues in culture and consumer behavior in the Indian perspective.There was convincing literature, which suggested that culture influenced behaviors (Henry 1976; Sheth and Sethi 1977; Hofstede 1980; Raju 1995; Roth 1995; Applbaum and Jordt 1996; Aaker and Williams 1998; Steenkamp, Hofstede and Wedel 1999; Aaker 2000; Briley, Morris and Simonson 2000; Mesdag 2000; Usunier 2000; Luna and Gupta 2001; Steenkamp 2001; Moiij and Hofstede 2002; Kau and Jung 2004; Moiij 2004; Ogden, Ogden and Schau 2004; Salciuviene, Auruskeviciene and Lydeka 2005; Chiang 2005). The literature review reveals that there is preponderance of studies delimiting culture at the national level. Though countries are convenient and most popular unit of analysis but may not be the most appropriate units from marketing viewpoint (Craig and Douglas 2003). Though there is sufficient literature on cross-cultural research at the level of nations but there is a gap in research literature at the sub cultural level and this gap ―handicaps marketers
229 when making tactical decisions related to ethnic or subcultural marketing‖ (Ogden, Ogden and Schau 2004). In the Indian perspective the gap seems to be much more pronounced, as the literature is bereft of cross-cultural consumer research at the sub group level. The existing literature generally regards India as a single culture having universal cultural values all over the nation (Mandelabaum 1972; Hofstede 1980; 2001; Mehta and Belk 1991; Venkatesh 1995; Mathur, Zhang and Neelankavil 2001; Kakkar et al.2002; Chhokar 2007). It would be fallible to use nation as a surrogate for culture in case of multicultural India (Malhotra, Peterson and Agarwal 1996). Large countries like India regions can be divided on the basis of geographic, climatic, economic, linguistic and ethnic lines which are different culturally (Hofstede et al. 2007). There was need felt to address two research questions which emerged as a result of examination of literature: Are there cultural differences between the different regions of India? If the cultural differences existed how do they influence the consumer behavior in these regions of Maharashtra?
9.2 Research Objectives
To study the cultural differences between 6 Regions (Vidarbha, Nagpur, Konkan, North Maharashtra, West Maharashtra, Marathwada) of Maharashtra.
To study the relationship among various cultural indexes i.e. PDI, IDV, MAS, UAI, LTO, IVR and MON in selected regions of Maharashtra.
To measure the impact of seven cultural dimensions i.e. PDI, IDV, MAS, UAI, LTO, IVR and MON on the consumption pattern of selected commodities.
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To study the impact of Cultural Demographic (age) on consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc across 6 Regions.
To study the impact of Cultural Demographic (education) on consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc across 6 Regions.
To study the impact of Cultural Demographic (job profile) on consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc across 6 Regions.
To study the consumption pattern of Liqour across 6 Regions (Vidarbha, Nagpur, Konkan, North Maharashtra, West Maharashtra, Marathwada) of Maharashtra.
To study the consumption pattern of Fast foods across 6 Regions (Vidarbha, Nagpur, Konkan, North Maharashtra, West Maharashtra, Marathwada) of Maharashtra.
To study the consumption pattern of frozen foods across 6 Regions (Vidarbha, Nagpur, Konkan, North Maharashtra, West Maharashtra, Marathwada) of Maharashtra.
To study if there is a variation among different classes/levels of respondents with regards to the consumption pattern.
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9.3 Statement of Hypotheses
HO1: There exists no cultural difference among the 6 regions of Maharashtra.
H11 : There is cultural difference among the 6 regions of Maharashtra.
HO2: There exists no relationship among various cultural indexes i.e. PDI, IDV, MAS, UAI, LTO, IVR and MON in selected regions of Maharashtra
H12 : There exists a relationship among various cultural indexes i.e. PDI, IDV, MAS, UAI, LTO, IVR and MON in selected regions of Maharashtra
HO3: Cultural dimensions i.e. PDI, IDV, MAS, UAI, LTO, IVR and MON have no impact on the consumption pattern of different types of commodities.
H13: Cultural dimensions i.e. PDI, IDV, MAS, UAI, LTO, IVR and MON does influence the consumption pattern of different types of commodities.
H04: There exist a relationship between cultural demographic (age) and consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc across 6 Regions.
H14: There exist a relationship between cultural demographic (age) and consumption pattern of selected commodities (liquor, frozen food, clothes,) etc across 6 Regions.
H05: There exist a relationship between cultural demographic (education) and consumption pattern of selected commodities (liquor, frozen food, clothes, )etc across 6 Regions.
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H15: There exist a relationship between cultural demographic (education) and consumption pattern of selected commodities (liquor, frozen food, clothes,) etc across 6 Regions.
H06: There exist a relationship between cultural demographic (job profile) and consumption pattern of selected commodities (liquor, frozen food, clothes,) etc across 6 Regions.
H16: There exist a relationship between cultural demographic (job profile) and consumption pattern of selected commodities (liquor, frozen food, clothes,) etc across 6 Region.
HO7: There exists no variation between the consumption pattern of Liqour across 6 Regions (Vidarbha, Nagpur, Konkan, North Maharashtra, West Maharashtra, Marathwada) of Maharashtra cultural difference differences between India and Maharashta.
H17 : There exists a variation between the consumption pattern of Liqour across 6 Regions (Vidarbha, Nagpur, Konkan, North Maharashtra, West Maharashtra, Marathwada) of Maharashtra cultural difference differences between India and Maharashta..
HO8: There exists no variation between the consumption pattern of fast foods across 6 Regions (Vidarbha, Nagpur, Konkan, North Maharashtra, West Maharashtra, Marathwada) of Maharashtra cultural difference differences between India and Maharashta.
H18 : There exists a variation between the consumption pattern of fast foods across 6 Regions (Vidarbha, Nagpur, Konkan, North Maharashtra, West
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Maharashtra, Marathwada) of Maharashtra cultural difference differences between India and Maharashta..
HO9: There exists no variation between the consumption pattern of frozen foods across 6 Regions (Vidarbha, Nagpur, Konkan, North Maharashtra, West Maharashtra, Marathwada) of Maharashtra cultural difference differences between India and Maharashta.
H19 : There exists a variation between the consumption pattern of frozen foods across 6 Regions (Vidarbha, Nagpur, Konkan, North Maharashtra, West Maharashtra, Marathwada) of Maharashtra cultural difference differences between India and Maharashta.
HO10: There exists no variation among different classes/levels of respondents with regards to the consumption pattern across 6 Regions (Vidarbha, Nagpur, Konkan, North Maharashtra, West Maharashtra, Marathwada).
H110 : There exists variation among different classes of respondents with regards to the consumption pattern across 6 Regions (Vidarbha, Nagpur, Konkan, North Maharashtra, West Maharashtra, Marathwada)
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CHAPTER 10 RESEARCH METHODOLOGY
The methodology is the guiding principle for the creation of knowledge (Yeganeh,Su and Chrysostome 2004).The cross culture research poses great challenges than studies done with single culture or Country(Sivkumar and Nakata 2001).this chapter presents the method and procedure used to explore and investigate the impact of cross culture on consumption pattern.
10.1 Understanding the Issue
India has a most kaleidoscopic civilization with a heterogeneous population having diverse anthropological roots, varied religious beliefs and faiths, many languages, scripts and dialects, a broad spectrum of cultural traditions, different and rich culinary habits, attires varying from place to place, and numerous art forms (Nayak, 2007). Therefore, in India, it is not only a principle of do‟ s and don‟ ts, or adjusting to price-level in a country. It is a matter of recognising and understanding the consumer, and his or her context. ―Often people treat India as one big market, but the reality is that India is more like the European Union – a mix of different cultures, habits, and languages.‖ (Khicha, 2007)Behavior of a consumer largely depends on interplay between inner self and outer stimuli. Consumption decision made in the market cannot be viewed as an independent event-it is closely related with values and social relationship and cultural allegiance. With Globalization, culture becomes a predominantly important strategic issue in market that has to be faced and properly managed.
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10.2 Conceptual model of this study
Independent Variables Dependent Variables
Power Distance Index (PDI) Cultural difference in the Uncertainty Avoidance Index (UAI) selected regions Individualism and Collectivism (IDV)
Individualism and Collectivism (IDV) Consumption pattern of Masculinity and Femininity (MAS) selected commodities Long-Versus Short-Term Orientation Cultural demographic and (LTO) consumption pattern of Indulgence versus Restraint (IVR) selected commodities
Monumentalism versus Self Effacement (MON) Variation among different classes/levels of respondents with regards to the consumption pattern across 6 Regions of
Maharashta
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A broad overview of the research methodology for this study is presented in the following chart
Understanding the Issue First Stage Turning idea into a research Other issues to be question considered
Review the Literature Where do I start? • Libraries: contacts • Links to useful websites • Systematic Reviews
Participant Involvement Design the study and • Survey Design develop your method(s) • Sampling • Statistical issues • Qualitative and Quantitative Research • Collaboration Analysis of Data Analyse the data and interpret findings
Presentation of Finding, recommendation and conclusions
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10.3 This study embraces both qualitative and quantitative research approaches
10.3.1 Descriptive Survey: Review of literature and other available information from various published and unpublished reports, journals, periodicals, books, newspapers, etc. (including databases like EBSCO, Pro-quest, India Business Insight Database and others).
The descriptive survey helped in preparing the ground-work for the next step i.e. the field survey
10.3.1 Field Survey a)Research Instruments The research instruments used for collecting primary data were - Questionnaire and Interviews. The questionnaire is ―formalized framework of a set of questions and scales designed to generate primary raw data‖ (Hair,Bushand Ortinau 2003) this study used VSM 08 developed in 2008 by Hofstede to operationalize culture and to assess the cultural values of six regions of Maharashtra. The questions from 29 to 38 deal with product and consumption pattern of selected commodities which are taken as dependent variables.
Cultural Indexes of six regions Information related to consumption of selected commodities. Liquor, Frozen foods,Clothes,. Information related cultural demographics Age, Education, Job profile of the etc. Information about income of self and family Information related to choice regarding buying.
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These seven indexes are taken as independent variables which are used to analyze their effect on the consumption in each culture. The question deal with products and consumption pattern of selected products which are taken as dependent variables.
The products have been selected taking into account the changing consumption patterns in light of globalization of Indian market.
Table 10.1 gives a description of items used to measure the variable used in this study
VARIABLE ITEMS SCALE Eldely age, Middle Age, Young age Demographics Age Graduate, HSC, Post Graduate Education Clerical, Junior Management, Middle Management JobProfile
Power Distance Index Be consulted by your (PDI) boss in decisions involving your work
Have a boss (direct superior) you can respect
How often, in your experience, are subordinates afraid to contradict their boss (or
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students their teacher?)
An organization structure in which certain subordinates have two bosses should be avoided at all cost
Individualism index Have security of (idv) employment
Have sufficient time for your personal or home life
Have a job respected by
your family and friends
Do work that is interesting
Have pleasant people to Masculinity index work with (mas) Get recognition for good
performance
Live in a desirable area
Have chances for promotion
Uncertainty avoidance index (uai) All in all, how would you describe your state of health these days? How often do you feel nervous or tense? One can be a good
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manager without having a precise answer to every question that a subordinate may raise about his or her work A company's or organization's rules should not be broken not even when the employee thinks breaking the rule would be in the organization's best interest
Long Term Orientation Are you the same person Index (LTO) at work (or at school if you‘re a student) and at home? If there is something expensive you really want to buy but you do not have enough money, what do you do? We should honour our heroes from the past Persistent efforts are the surest way to results
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Indulgence versus Restraint Index (IVR) Keeping time free for fun moderation Having few desires Do other people or circumstances ever prevent you from doing what you really want to Are you a happy person ?
Being generous to other Monumentalism Index people (MON) Modesty: looking small, not big How proud are you to be a citizen of your country? How important is religion in your life?
10.4 Data Acquisition stage Questionnaires were forwarded and responses obtained from the sample units. It was mentioned in the questionnaire that the identity of the respondents would be kept confidential.
Interview method was also used to collect data. The interviewees were briefed about the purpose of the interview and its scope in advance so that they would be ready with the necessary details and data. This approach was adopted to
242 overcome the time and language constraint. In conducting these interviews a structured interview approach was used to avoid wastage of time.
10.5 Data Analysis stage
Data and Information collected both from Primary as well as Secondary sources was tabulated and summarized so as to draw logical conclusions. a) The Secondary data provided details of the State of Maharashtra and different regions of Maharashtra and their behavior. b) The primary survey was critical component of the study as it would yield crucial data on the impact of cross culture on consumer buying behavior.
The survey would give an idea on : 1. The distinctive features of the subcultures of different regions of Maharashtra. 2. Prevailing socio-economic data of the regions and the composition of selected population. 3. Impact of culture on consumption pattern. 4. Cultural differences between 6 Regions (Vidarbha, Nagpur, Konkan, North Maharshtra, West Maharashtra, Marathwada) of Maharashtra 5. Relationship among various cultural indexes i.e. PDI, IDV, MAS, UAI, LTO, IVR and MON in selected regions of Maharashtra. 6. Impact of seven cultural dimensions i.e. PDI, IDV, MAS, UAI, LTO, IVR and MON on the consumption pattern of selected commodities 7. Impact of Cultural Demographic on consumption pattern of selected Commodities (liquor, frozen food, clothes) etc across 6 Regions 8. Consumption pattern of Liqour across 6 Regions (Vidarbha, Nagpur, Konkan, North Maharashtra, West Maharashtra, Marathwada) of Maharashtra. 9. Variation among different classes/levels of respondents with regards to the consumption pattern
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10.6 Selection of Samples:
10.6.1 Locale of Research and sample size: The state of Maharashtra was selected as locale for the present study as it is the second most popular and third largest state by area in India. The state covers an area of 307,731 km (118,816 sq.ft) or 9.84% of the total geographic area of India. It is also the richest state in India contributing to 15% of the country industrial output and 13.2% of GDP. The ratio of the population is 42% urban and 58% rural. Maharashtra, is India‘s largest city and the financial capital of the nation. Maharashtra has 35 districts geographically, historically and according to political sentiments. Maharashtra has six regions.
10.6.2 Sampling Design Maharashtra is divided into 35 districts and 6 regions. The target Population was the population in these 6 regions. Twelve districts (2from each region) were selected which were regarded as representative of each region or division. The selection of districts was done on the basis of High economic Growth, Industrialization and Human Development Indicators which is reflected in High consumption of all commodities, the source for the same are Economic Survey of Maharashtra 2009-10 Human Development Report Maharashtra(2009). The total number of sample is 2791 through cluster and random sampling
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Valid Region City Population Sample Washim 10,20,216 200 Vidarbha Buldhana 22,32,480 240 Nagpur 40,51,444 270 Nagpur Gadchiroli 9,76,294 200 Ratnagiri 16,96,777 225 Konkan Sindhudurga 8,68,825 200
North Maharashtra Dulia 17,07,947 225 Jalgaon 36,79,936 270
West Maharashtra Satara 27,96,906 270 Solapur 38,49,543 225 Latur 20,80,285 225 Marathwada Nanded 28,76,259 235 Total 2791
10.6.3 Sample size Justification Z 2 * (p) * (1-p)
N= 2 c Where: Z = Z value (e.g. 1.96 for 95% confidence level) p = percentage picking a choice, expressed as decimal (.5 used for sample size needed) c = confidence interval, expressed as decimal (e.g., .07 = ±7) N=Sample size required.
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According to the above formula the sample size required is 196. Where as we have taken more than 200 samples respectively for each region.
Secondly as per Hofstede Value survey Manual mimimuml size is 50 whereas for this research the sample size if far more than the ideal sample size i.e 50
10.7 Tabulation and Statistical Analysis of Data.
The responses observed for each of the items in the questionnaire were scored and tabulated into a master sheet. The statistical tools included Chi-Square -test, Regression, Paired T test and ANOVA have been applied to draw logical conclusions. The analysis was done using SPSS.
10.8 Data Interpretation and Report writing
The analyzed data were finally interpreted to draw the inference and reported with the objective of the study in view.
10.9 Limitations of the study: The study is restricted to only few areas of Maharashtra. The researcher only used two areas in a particular region for the survey; this may be inadequate to generalize the results on the impact of cross culture of consumer behavior and the possible influence of Hofstede‘s cultural dimensions.
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CHAPTER 11 DATA INTERPRETATION AND FINDINGS
Socio-Demogrpahic Profile of consumers under study for different regions under study
11.1 North Maharashtra Age[11.1(a)] Cumulative Frequency Percent Valid Percent Percent Eldely age 140 28.3 28.3 28.3 Middle age 203 41.0 41.0 69.3 Young age 152 30.7 30.7 100.0 Total 495 100.0 100.0
Classification of Age in North Maharashtra
Young age Eldely age 31% 28%
Middle age 41%
Source: Researchers Sample
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Education[11.1(b)] Cumulative Frequency Percent Valid Percent Percent Graduate 254 51.3 51.3 51.3 HSC 30 6.1 6.1 57.4 Post Graduate 211 42.6 42.6 100.0 Total 495 100.0 100.0
Education[11.1(b)]
Post Graduate 43% Graduate 51%
HSC 6%
Source: Researchers Sample
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Jobprofile[11.1(c)] Valid Cumulative Frequency Percent Percent Percent Clerical 92 18.6 18.6 18.6 Junior 202 40.8 40.8 59.4 Managemnet Middle 201 40.6 40.6 100.0 Managemnet Total 495 100.0 100.0
Job Profile Clerical 9%
Junior Managemnet 21% Total 50%
Middle Managemnet 20% Source: Researchers Sample
11.2 West Maharashtra Age [11.2(a)] Cumulative Frequency Percent Valid Percent Percent Elderly age 105 21.0 21.0 21.0
Middle age 278 55.6 55.6 76.6 Young age 117 23.4 23.4 100.0 Total 500 100.0 100.0
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Age
Young age Elderly age 23% 21%
Middle age 56%
Source: Researchers Sample
Education [11.2(b)] Cumulative Frequency Percent Valid Percent Percent Valid Graduate 255 51.0 51.0 51.0 HSC 31 6.2 6.2 57.2 Post Graduate 183 36.6 36.6 93.8 Professional 31 6.2 6.2 100.0 Total 500 100.0 100.0
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Professional Education 6%
Post Graduate 37% Graduate 51%
HSC 6%
Source: Researchers Sample
Jobprofile [11.2(c)] Cumulative Frequency Percent Valid Percent Percent Valid Clerical 92 18.4 18.4 18.4 Junior 204 40.8 40.8 59.2 Managemnet Middle 173 34.6 34.6 93.8 Managemnet Senior 31 6.2 6.2 100.0 Managemnet Total 500 100.0 100.0
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Senior Managemnet Jobprofile 6%
Clerical 18% Middle Managemnet 35% Junior Managemnet 41%
Source: Researchers Sample
11.3 Marathwada Age[11.3(a)] Cumulative Frequency Percent Valid Percent Percent Valid Elderly age 130 28.2 28.2 28.2
Middle age 208 45.1 45.1 73.3 Young age 123 26.7 26.7 100.0 Total 461 100.0 100.0
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Age
Young age Elderly age 27% 28%
Middle age 45%
Source: Researchers Sample
Education[11.3(b)] Cumulative Frequency Percent Valid Percent Percent Valid Graduate 174 37.7 37.7 37.7 HSC 113 24.5 24.5 62.3 Post Graduate 123 26.7 26.7 88.9 Professional 51 11.1 11.1 100.0 Total 461 100.0 100.0
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Education Professional 11%
Post Graduate Graduate 38% 27%
HSC 24%
Source: Researchers Sample
Jobprofile[11.3(c)] Cumulative Frequency Percent Valid Percent Percent Valid Clerical 183 39.7 39.7 39.7 Junior 183 39.7 39.7 79.4 Managemnet Middle 78 16.9 16.9 96.3 Managemnet Senior 17 3.7 3.7 100.0 Managemnet Total 461 100.0 100.0
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Senior ManagemnetJob Profile 3%
Middle Managemnet 17% Clerical 40%
Junior Managemnet 40%
Source: Researchers Sample
11.4 Vidarbha
Age[11.4(a)] Cumulative Frequency Percent Valid Percent Percent Valid Elderly Age 107 24.3 24.3 24.3
Middle Age 192 43.6 43.6 68.0 Young Age 141 32.0 32.0 100.0 Total 440 100.0 100.0
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Age
Elderly Age Young Age 24% 32%
Middle Age 44%
Source: Researchers Sample
Education[11.4(b)] Cumulative Frequency Percent Valid Percent Percent Valid Graduate 186 42.3 42.3 42.3 HSC 58 13.2 13.2 55.5 Post Graduate 178 40.5 40.5 95.9 Professional 18 4.1 4.1 100.0 Total 440 100.0 100.0
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Professional Education 4%
Graduate Post Graduate 42% 41%
HSC 13%
Source: Researchers Sample
Jobprofile[11.4(c)] Valid Cumulative Frequency Percent Percent Percent Valid Clerical 69 15.7 15.7 15.7 Junior 175 39.8 39.8 55.5 Management Middle 190 43.2 43.2 98.6 Management Senior 6 1.4 1.4 100.0 management Total 440 100.0 100.0
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Senior management Jobprofile 1%
Clerical 16% Middle Management Junior 43% Management 40%
Source: Researchers Sample
11.5 Konkan Age[11.5(a)] Cumulative Frequency Percent Valid Percent Percent Elderly age 137 32.2 32.2 32.2
Middle age 160 37.6 37.6 69.9 Young age 128 30.1 30.1 100.0 Total 425 100.0 100.0
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Age
young age elderly age 30% 32%
middle age 38%
Source: Researchers Sample
Education[11.5(b)] Cumulative Frequency Percent Valid Percent Percent Valid Graduate 160 37.6 37.6 37.6 HSC 105 24.7 24.7 62.4 Post Graduate 112 26.4 26.4 88.7 Professional 48 11.3 11.3 100.0 Total 425 100.0 100.0
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Education Professional 11%
Graduate Post Graduate 38% 26%
HSC 25%
Source: Researchers Sample
Jobprofile[11.5(c)] Valid Cumulative Frequency Percent Percent Percent Valid Clerical 169 39.8 39.8 39.8 Junior 168 39.5 39.5 79.3 Managemnet Middle 72 16.9 16.9 96.2 Managemnet Senior 16 3.8 3.8 100.0 Managemnet Total 425 100.0 100.0
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Senior Managemnet Jobprofile 4% Middle Managemnet 17%
Clerical 40%
Junior Managemnet 39%
Source: Researchers Sample
11.6 Nagpur
Age[11.6(a)] Number of Respondent Cumulative s Percent Valid Percent Percent Valid Elderly age 115 24.5 24.5 24.5
Middle age 204 43.4 43.4 67.9 Young age 151 32.1 32.1 100.0 Total 470 100.0 100.0
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Age
elderly age young age 25% 32%
middle age 43%
Source: Researchers Sample
Education[11.6(b)]
Cumulative Frequency Percent Valid Percent Percent Valid Graduate 201 42.8 42.8 42.8 HSC 66 14.0 14.0 56.8 Post Graduate 187 39.8 39.8 96.6 Professional 16 3.4 3.4 100.0 Total 470 100.0 100.0
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Education Professional 3%
Graduate Post Graduate 43% 40%
HSC 14%
Source: Researchers Sample
Jobprofile[11.6(c)] Cumulative Frequency Percent Valid Percent Percent Valid Clerical 76 16.2 16.2 16.2 Junior 191 40.6 40.6 56.8 Management Middle 203 43.2 43.2 100.0 Management Total 470 100.0 100.0
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Job Profile
Clerical 16% Middle Management 43% Junior Management 41%
Source: Researchers Sample
11.7 Details of demographics Age Distribution:
Age of respondents has been used to if different age groups vary in their consumption pattern. Three age groups have been formed which are Below 30 year young, 30-50 years middle age, above 50 years as elderly for all six region taken in this study.
Educational Qualifications: Education is an important variable which influence the consumer consumption buying behavior. The details of the same have been show in table table for respective region taken under the consideration for the study. Consumption pattern for the different commodities in relation to education has been studied in different regions .
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Job Profile Job profile is an indicator of the financial status of the respondent which dos influence the consumer consumption behavior. Consumption pattern for the different commodities in relation to job profile has been studied in different regions .
11.8 Classification of consumers with regard to consumption of selected commodities under study for different region.
11.8 (a) Marathwada
Liquor Cumulative Frequency Percent Valid Percent Percent Never 142 30.8 30.8 30.8 Rarely 242 52.5 52.5 83.3 Regularly 77 16.7 16.7 100.0 Total 461 100.0 100.0
Liquor Consumption Regularly 17%
Never 31%
Rarely 52%
Source: Researchers Sample
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In Marathwada out of 461 rspondents 142 never consumes liquor which comes out to be 31% of the marathwada sample size 242 rarely consume which is 52.5 % and 77 consumes regularly which is 16.7 %.the above pie chart gives us and idea that total 69 % of the respondents consume liquor either regularly or rarely in comparision to 31 % of the respondents who never consumes liquor.
Frozen Foods Cumulative Frequency Percent Valid Percent Percent Valid Never 203 44.0 44.0 44.0 Rarely 216 46.9 46.9 90.9 Regularly 42 9.1 9.1 100.0 Total 461 100.0 100.0
Frozen Food Consumption Regularly 9%
Never 44% Rarely 47%
Source: Researchers Sample
In Marathwada out of 461 rspondents 203 never consumes frozenfoods which comes out to be 44% of the marathwada sample size 216 rarely consume which is 47% and 42 consumes regularly which is only 9 %.The above pie chart gives
266 us and idea that total 91 % of the respondents consume frozenfoods either rarely or never in comparision to 9 % of the respondents who regularly consumes frozenfoods.
Fast Foods Cumulative Frequency Percent Valid Percent Percent Valid Never 218 47.3 47.3 47.3 Rarely 216 46.9 46.9 94.1 Regularly 27 5.9 5.9 100.0 Total 461 100.0 100.0
Regularly Fast Food Consumption 6%
Never 47% Rarely 47%
Source: Researchers Sample
In Marathwada out of 461 rspondents 218 never consumes fastfoods which comes out to be 47% of the marathwada sample size 216 rarely consume which is 47% and 27 consumes regularly which is only 6 %.The above pie chart gives us and idea that total 94 % of the respondents consume fastfoods either rarely
267 or never in comparision to 6% of the respondents who regularly consumes fastfoods.
Clothes
Valid Cumulative Frequency Percent Percent Percent Unbranded 190 41.2 41.2 41.2 Tailor 199 43.2 43.2 84.4 Stitched Branded 72 15.6 15.6 100.0 Total 461 100.0 100.0
Clothes
Branded 16%
Unbranded 41%
Tailor Stitched 43%
Source: Researchers Sample
In Marathwada out of 461 rspondents 190 consumes Readymade Unbranded clothes which comes out to be 41% of the marathwada sample size 199 prefers tailor stitched which is 43 % and 72 goes for readymade branded clothes which
268 is 15.6 %.The above pie chart gives us and idea that only 15.6% of the consumers consume branded clothes .
North Maharashtra
Liquor Cumulative Frequency Percent Valid Percent Percent Never 140 28.3 28.3 28.3 Rarely 274 55.4 55.4 83.6 Regularly 81 16.4 16.4 100.0 Total 495 100.0 100.0
Liquor Consumption
Regularly 17% Never 28%
Rarely 55%
Source: Researchers Sample
In North Maharashtra (Dhule and Jalgaon) out of 495 rspondents 140 never consumes liquor which comes out to be 28.3 % of the North Maharashtra sample size, 244 rarely consume which is 55.4 % and 81 consumes regularly
269 which is 16.4 %.the above pie chart gives us and idea that total 72 % of the respondents consume liquor either regularly or rarely in comparision to 28.3% of the respondents who never consumes liquor.
Frozen Foods Cumulative Frequency Percent Valid Percent Percent Valid Never 184 37.2 37.2 37.2 Rarely 223 45.1 45.1 82.2 Regularly 88 17.8 17.8 100.0 Total 495 100.0 100.0
Frozen Foods
Regularly 18% Never 37%
Rarely 45%
Source: Researchers Sample
In North Maharashtra (Dhule and Jalgaon) out of 495 rspondents 184 never consumes frozenfoods which comes out to be 37.2 % of the North Maharashtra sample size, 223 rarely consume which is 45.1 % and 88 consumes regularly
270 which is 17.8 %.The above pie chart gives us and idea that total 72 % of the respondents consume frozenfoods either regularly or rarely in comparision to 28.3% of the respondents who never consumes liquor.
Fast Foods Cumulative Frequency Percent Valid Percent Percent Never 252 50.9 50.9 50.9 Rarely 213 43.0 43.0 93.9 Regular 30 6.1 6.1 100.0 ly
Total 495 100.0 100.0
Fast Foods Consumption Regularly 6%
Never Rarely 51% 43%
Source: Researchers Sample
In North Maharashtra (Dhule and Jalgaon) out of 495 rspondents 252 never consumes fastfoods which comes out to be 50 % of the North Maharashtra sample size, 213 rarely consume which is 43 % and 30 consumes regularly
271 which is 6.1 %.The above pie chart gives us and idea that total 94 % of the respondents consume fastfoods either rarely or never only 6 % in of the respondents who consumes regularly Clothes Cumulative Frequency Percent Valid Percent Percent Readymade 217 43.8 43.8 43.8 unbranded Tailor stitch 231 46.7 46.7 90.5 Readymade 47 9.5 9.5 100.0 Branded Total 495 100.0 100.0
Readymade Clothes Branded 9%
Readymade unbranded 44% Tailor stitch 47%
Source: Researchers Sample
In North Maharashtra out of 495 rspondents 271 consumes Readymade Unbranded clothes which comes out to be 44% of the North Maharashtra sample size 231 prefers tailor stitched which is 46.7 % and 47 goes for readymade
272 branded clothes which is 9.5 %.The above pie chart gives us and idea that only 9% of the consumers consume branded clothes
West Maharashtra
Liquor Cumulative Frequency Percent Valid Percent Percent Valid Never 193 38.6 38.6 38.6 Rarely 132 26.4 26.4 65.0 Regularl 175 35.0 35.0 100.0 y Total 500 100.0 100.0 Liquor Consumption
Regularly Never 35% 39%
Rarely 26%
Source: Researchers Sample
In West Maharashtra (Satara and Solapur ) out of 500 rspondents 140 never consumes liquor which comes out to be 28.3 % of the West Maharashtra sample
273 size, 244 rarely consume which is 55.4 % and 81 consumes regularly which is 16.4 %.the above pie chart gives us and idea that total 72 % of the respondents consume liquor either never or rarely in comparision to 28.3% of the respondents whorarely consumes liquor.
Frozen Foods Cumulative Frequency Percent Valid Percent Percent Valid Never 135 27.0 27.0 27.0 Rarely 280 56.0 56.0 83.0 Regularly 85 17.0 17.0 100.0 Total 500 100.0 100.0
frozen Foods Consumption
Regularly Never 17% 27%
Rarely 56%
Source: Researchers Sample
In West Maharashtra (Satara and Solapur ) out of 500 respondents 135 never consumes frozen foods which comes out to be 27 % of the West Maharashtra
274 sample size, 280 rarely consume which is 56 % and 85 consumes regularly which is 17 %.The above pie chart gives us and idea that total 83 % of the respondents consume frozen foods either rarely or never 17 % in of the respondents who consumes regularly
Fast Foods Cumulative Frequency Percent Valid Percent Percent Valid Never 102 20.4 20.4 20.4 Rarely 377 75.4 75.4 95.8 Regularly 21 4.2 4.2 100.0 Total 500 100.0 100.0
Fast Foods
Regularly 11%
Rarely 25%
Never 64%
Source: Researchers Sample
In West Maharashtra (Satara and Solapur ) out of 500 rspondents 102 never consumes fastfoods which comes out to be 20.4 % of the West Maharashtra sample size, 377 rarely consume which is 75.4 % and 21 consumes regularly
275 which is 4.2 %.The above pie chart gives us and idea that total 89 % of the respondents consume fastfoods either never or rarely in comparision to 11% of the respondents who never consumes liquor
Clothes Cumulative Frequency Percent Valid Percent Percent Readymade 72 14.4 14.4 14.4 unbranded Tailor stitch 377 75.4 75.4 89.8 Readymade 51 10.2 10.2 100.0 Branded Total 500 100.0 100.0
Clothes Readymade Branded 10%
Readymade unbranded 15%
Tailor stitch 75%
Source: Researchers Sample
276
In West Maharashtra (Satara and Solapur ) out of 500 72 consumes Readymade Unbranded clothes which comes out to be 14.4% of the West Maharashtra sample size 377 prefers tailor stitched which is 75.4 % and 51 goes for readymade branded clothes which is 10.2 %.The above pie chart gives us and idea that only 10.2 % of the consumers consume branded clothes
Nagpur
Liquor Cumulative Frequency Percent Valid Percent Percent Valid Never 100 21.3 21.3 21.3 Rarely 142 30.2 30.2 51.5 Regularly 228 48.5 48.5 100.0 Total 470 100.0 100.0
Liquor
Never 21%
Regularly 49%
Rarely 30%
Source: Researchers Sample
277
In Nagpur out of 470 rspondents 1oo never consumes liquor which comes out to be 21% of the Nagpur sample size ,142 rarely consume which is 30.8 % and 228 consumes regularly which is 48.5 %.the above pie chart gives us and idea that total 79 % of the respondents consume liquor either regularly or rarely in comparision to 21 % of the respondents who never consumes liquor
Frozen Foods Cumulative Frequency Percent Valid Percent Percent Valid Never 75 16.0 16.0 16.0 Rarely 311 66.2 66.2 82.1 Regularly 84 17.9 17.9 100.0 Total 470 100.0 100.0
Frozen Foods
Never Regularly 16% 18%
Rarely 66%
Source: Researchers Sample
278
In Nagpur out of 470 rspondents 1oo never consumes liquor which comes out to be 21% of the Nagpur sample size ,142 rarely consume which is 30.8 % and 228 consumes regularly which is 48.5 %.the above pie chart gives us and idea that total 79 % of the respondents consume liquor either regularly or rarely in comparision to 21 % of the respondents who never consumes liquor
Fast Foods Frequenc Cumulative y Percent Valid Percent Percent Valid Never 30 6.4 6.4 6.4 Rarely 329 70.0 70.0 76.4 Regularly 111 23.6 23.6 100.0 Total 470 100.0 100.0
Fast Foods
Never 6% Regularly 24%
Rarely 70%
Source: Researchers Sample
279
In Nagpur out of 470 rspondents 30 never consumes Fastfoods which comes out to be 6.4 % of the Nagpur sample size ,329 rarely consume which is 70.8% and 111 consumes regularly which is 23.6 %.The above pie chart gives us and idea that total 94 % of the respondents consume fastfoods either regularly or rarely in comparision to 6 % of the respondents who never consumes fast foods.
Clothes
Cumulative Frequency Percent Valid Percent Percent Valid Readymade 130 27.7 27.2 27.2 unbranded
Tailor stitch 284 60.4 60.4 87.6 Readymade 56 11.9 11.9 100 Branded Total 470 100.0
Readymade Clothes Branded Readymade 12% unbranded 28%
Tailor stitch 60%
Source: Researchers Sample
280
In Nagpur out of 470, 130 consumes Readymade Unbranded clothes which comes out to be 27.7% of the Nagpur sample size 284 prefers tailor stitched which is 60.4 % and 56 goes for readymade branded clothes which is 11.9 %.The above pie chart gives us and idea that only 10.2 % of the consumers consume branded clothes
Vidarbha
Liquor Cumulative Frequency Percent Valid Percent Percent Valid Never 96 21.8 21.8 21.8 Rarely 127 28.9 28.9 50.7 Regularly 217 49.3 49.3 100.0 Total 440 100.0 100.0
Liquor
Never 22%
Regularly 49%
Rarely 29%
Source: Researchers Sample
281
In Vidarbha out of 440 rspondents 96 never consumes liquor which comes out to be 21.8% of the Vidarbha sample size ,127 rarely consume which is 29% and 217 consumes regularly which is 49 %.The above pie chart gives us and idea that total 78 % of the respondents consume liquor either never or rarely in comparision to 22 % of the respondents who regularly consumes liquor
Frozen Foods Cumulative Frequency Percent Valid Percent Percent Valid Never 59 13.4 13.4 13.4 Rarely 293 66.6 66.6 80.0 Regula 88 20.0 20.0 100.0 rly Total 440 100.0 100.0
Frozen Foods
Never Regularly 13% 20%
Rarely 67%
Source: Researchers Sample
282
In Vidarbha out of 440 rspondents 59 never consumes frozenfoods which comes out to be 13.4 % of the Vidarbha sample size,293 rarely consume which is 66.6 % and 88 consumes regularly which is 20 %.The above pie chart gives us and idea that total 78 % of the respondents consume liquor either never or rarely in comparision to 22 % of the respondents who regularly consumes frozenfoods.
Fast Foods Cumulative Frequency Percent Valid Percent Percent Valid Never 25 5.7 5.7 5.7 Rarely 303 68.9 68.9 74.5 Regula 112 25.5 25.5 100.0 rly Total 440 100.0 100.0 Fast Foods
Never 6% Regularly 25%
Rarely 69%
Source: Researchers Sample
283
In Vidarbha out of 440 rspondents 25 never consumes fastfoods which comes out to be 5.7 % of the Vidarbha sample size,303 rarely consume which is 68.9 % and 112 consumes regularly which is 25.5 %.The above pie chart gives us and idea that total 94 % of the respondents consume fastfoods either never or rarely in comparision to only 6 % of the respondents who regularly consumes fastfoods.
Clothes Cumulative Frequency Percent Valid Percent Percent Valid Readymade 148 33.6 33.6 33.6 unbranded Tailor stitch 244 55.5 55.5 89.1 Readymade 48 10.9 10.9 100.0 Branded Total 440 100.0 100.0
Clothes Readymade Branded 11%
Readymade unbranded 34%
Tailor stitch 55%
Source: Researchers Sample
284
In Nagpur out of 440, 148 consumes Readymade Unbranded clothes which comes out to be 33.6% of the Nagpur sample size 244 prefers tailor stitched which is 55.5 % and 48 goes for readymade branded clothes which is 10.9%.The above pie chart gives us and idea that only 10.9 % of the consumers consume branded clothes
Konkan Liquor Cumulative Frequency Percent Valid Percent Percent Valid Never 128 30.1 30.1 30.1 Rarely 225 52.9 52.9 83.1 Regularly 72 16.9 16.9 100.0 Total 425 100.0 100.0 Liquor
Regularly 17% Never 30%
Rarely 53%
Source: Researchers Sample
285
In Konkan out of 425 rspondents 128 never consumes liquor which comes out to be 30.1% of the Konkan sample size ,225 rarely consume which is 52.9% and 72 consumes regularly which is 16.9 %.The above pie chart gives us and idea that total 85 % of the respondents consume liquor either never or rarely in comparision to 17 % of the respondents who regularly consumes liquor
Frozen Foods Cumulative Frequency Percent Valid Percent Percent Valid Never 149 35.1 35.1 35.1 Rarely 207 48.7 48.7 83.8 Regularly 69 16.2 16.2 100.0
Total 425 100.0 100.0 frozen Foods
Regularly 16% Never 35%
Rarely 49%
Source: Researchers Sample
286
In Konkan out of 425 rspondents 149 never consumes frozenfoods which comes out to be 35.1% of the Konkan sample size ,207 rarely consume which is 48.7% and 69 consumes regularly which is 16.2 %.The above pie chart gives us and idea that total 84 % of the respondents consume frozenfoods either never or rarely in comparision to 16 % of the respondents who regularly consumes frozenfoods
Fast Foods Cumulative Frequency Percent Valid Percent Percent Valid Never 201 47.3 47.3 47.3 Rarely 200 47.1 47.1 94.4 Regularly 24 5.6 5.6 100.0 Total 425 100.0 100.0
Fast Foods Regularly 6%
Never 47% Rarely 47%
Source: Researchers Sample
287
In Konkan out of 425 rspondents 201 never consumes fastfoods which comes out to be 43.7% of the Konkan sample size ,200 rarely consume which is 47.1 % and 24 consumes regularly which is 5.6 %.The above pie chart gives us and idea that total 95 % of the respondents consume fastfoods either never or rarely in comparision to 5 % of the respondents who regularly consumes fastfoods
Clothes Cumulative Frequency Percent Valid Percent Percent Valid Readymade 181 42.6 42.6 42.6 unbranded Tailor stitch 194 45.6 45.6 88.2 Readymade 50 11.8 11.8 100.0 Branded Total 425 100.0 100.0 Source: Researchers Sample
Clothes Readymade Branded 12%
Readymade unbranded 42%
Tailor stitch 46%
288
In Konkan out of 425, 181 consumes Readymade Unbranded clothes which comes out to be 42.6% of the Konkan sample size 194 prefers tailor stitched which is 45.6 % and 50 goes for readymade branded clothes which is 11.8%.The above pie chart gives us and idea that only 10.9 % of the consumers consume branded clothes
11.9 Frequency Table of number of consumers in each category for six indexes for in six differerent region taken in this study.
Total number of respondents are classified into three categories Low, Medium and High .Theses categories/levels are formed using arithmetic mean and standard deviation .Limits were calculated using point of inflexion method . Explanation of the method used is as follows:
Mean-Standard Deviation
=74.03-29.80 =44.23
=74.03+29.80 = 103.83
Below 44.23 = Low PDI 44 to 103 = Mediun PDI Above 103 = High PDI
These categories have been formed to analyse the difference between the three categories/levels in six different regions (Vidarbha, Nagpur, Konkan, North Maharashtra, West Maharashtra, Marathwada) of Maharashtra. The results of this analysis have been explained as below:
289
11.9(a) Konkan
PDI IDV MAS UAI LTO IVR MON High 26 24 41 71 73 99 96
Low 70 75 91 77 64 134 83
Medium 329 326 293 277 288 192 246
High Low Medium
329 326 293 277 288 246
192
134 91 99 96 77 83 70 75 71 73 64 41 26 24
PDI IDV MAS UAI LTO IVR MON
Source: Researchers Sample
In the above graph it can be concluded that in concern to the consumption of the selected commodities in Konkan region there is a significant difference in the three categories which has been formed.it can be observed that mediun group categorie is significantly different from High category group in concern to consumption of selected commodities.
290
11.9(b) Vidarbha
PDI IDV MAS UAI LTO IVR MON Low 68 35 52 109 94 182 76 Medium 331 336 293 262 271 209 279
High 41 69 95 69 75 49 85
Low Medium High
331 336 293 279 262 271 209 182
109 95 94 85 68 69 69 75 76 52 41 35 49
PDI IDV MAS UAI LTO IVR MON
Source: Researchers Sample
In the above graph it can be concluded that in concern to the consumption of the selected commodities in Vidarbha region there is a significant difference in the three categories which has been formed.It can be observed that mediun group categorie is significantly different from High category group in concern to consumption of selected commodities.
291
11.9(c) Nagpur
PDI IDV MAS UAI LTO IVR MON Low 33 97 41 81 84 126 90
Medium 72 90 97 122 79 40 78
High 365 283 332 267 307 304 302
Low Medium High
365 332 307 304 302 283 267
122 126 97 90 97 90 72 81 84 79 78 33 41 40
PDI IDV MAS UAI LTO IVR MON
Source: Researchers Sample
In the above graph it can be concluded that in concern to the consumption of the selected commodities in Nagpur region there is a significant difference in the three categories which has been formed.It can be observed that mediun group categorie is significantly different from Low category group in concern to consumption of selected commodities.
292
11.9(d) North Maharashtra
PDI IDV MAS UAI LTO IVR MON Low 54 151 73 135 62 62 69
Medium 137 126 21 68 106 106 96
High 304 218 401 292 327 327 330
450 400 350 300
250 Low 200 Medium 150 High 100 50 0 PDI IDV MAS UAI LTO IVR MON
Source: Researchers Sample
In the above graph it can be concluded that in concern to the consumption of the selected commodities in Nagpur region there is a significant difference in the three categories which has been formed.it can be observed that mediun group categorie is significantly different from medium and low category group in concern to consumption of selected commodities.
293
11.9(e) West Maharashtra
PDI IDV MAS UAI LTO IVR MON Low 54 114 54 102 122 69 56
Medium 109 63 113 85 91 210 99
High 337 323 333 313 287 221 345
400
350
300
250 Low 200 Medium 150 High 100
50
0 PDI IDV MAS UAI LTO IVR MON
Source: Researchers Sample
In the above graph it can be concluded that in concern to the consumption of the selected commodities in West Maharashtra region there is a significant difference in the three categories which has been formed.it can be observed that mediun group categorie is significantly different from Low category group in concern to consumption of selected commodities.
294
11.9(f) Marathwada
PDI IDV MAS UAI LTO IVR MON Low 54 84 143 54 141 59 49
Medium 109 2 79 104 89 113 49
High 337 375 239 303 231 289 363
400
350
300
250 Low 200 Medium 150 High 100
50
0 PDI IDV MAS UAI LTO IVR MON
In the above graph it can be concluded that in concern to the consumption of the selected commodities in Marathwada region there is a significant difference in the three categories which has been formed.it can be observed that mediun group categorie is significantly different from Low category group in concern to consumption of selected commodities.
The data analysis and hypothesis testing were carried out using the computer software package SPSS version 19.The relevant results are exposed in
295 appendix. The data collected over a period of 9 months on consumers in six different regions of Maharashtra which are Vidarbha, Nagpur, Konkan, North Maharashtra, West Maharashtra, Marathwada.The data collected through personal interview of the respondents using a structured questionnaire.
296
Results of Hypothesis
HYPOTHESIS 1
Null Hypothesis HO1 : There exists no cultural difference among the 6 regions of Maharashtra.
Alternative Hypothesis H11 : There is cultural difference among the 6 regions of Maharashtra
Validation of hypothesis has been tested through the formula by Hofstede VSM Manual 2008 and also by T-test which is given below and result of hypothesis validation is at the end.
11.10.1 Power Distance Index
It is ―the extent to which less powerful members of the institutions and organizations within a society expect and accept that power is distributed unequally‖ (Hofstede 2001, p.98).The formula for calculating the index is (Hofstede 2008): PDI= - 35 m (03) + 35 m (06) + 25 m (14) - 20 m (17) –7.17. In which (m 03) is the mean score for question 03, coefficients vary from 20 to 35 and the constant is -7.17. The Power Distance computed for the six regions of Maharashtra [Figure 11.10.1 (a andb)] are as follows:
297
Descriptive Statistics Figure 11.10.1 (a) Std. N Mean Deviation Variance
Statistic Statistic Std. Error Statistic Statistic PDI Vidharbh 440 74.0336 1.42097 29.80658 888.432 PDI Nagpur 470 73.1062 1.08237 23.46517 550.614 PDI Konkan 425 80.1700 1.02155 21.05978 443.514 PDI North 495 87.0387 .73713 16.40001 268.960 Maharashtra
PDI West 500 75.0300 .82559 18.46082 340.802
Maharashtra PDI Marathwada 461 71.2915 .80280 17.23679 297.107
Fig. 11.10.1 (b) Bar chart of Power Distance Index Values for six regions
100 Power Distance Index 87.0387 90 80.17 75.03 80 74.0336 73.1062 71.2915 70 60 50 Scores 40 30 20 10 0 Vidharbh Nagpur Kokan North MaharashtraWest Mahara Marathwada Regions North Maharashtra scores the highest (87.038) on the Power Distance Index (PDI) while Marathwada has the lowest score (71.29). The regions Nagpur
298
73.1062 and vidarbha 74.0336 have a minimal difference in the PDI scores. The scores suggest that power is more unequally distributed in North Maharashtra as compared to Marathwada. So it could be said that Marathwada society is comparatively more equal as compared to the other regions.
To statistically prove that there is a cultural difference in six regions with reference to PDI , t-test has been applied and the results of the test are as follows:
PDI Calculated T- Table T-value Result Value Vidharbha 0.51919298 Nagpur 1.96 Not Significant
Vidharbha 3.50611897 Konkan 1.96 Significant
Vidharbha 8.12345808 North Maharashtra 1.96 Significant
Vidharbha 0.60625151 West Maharashta 1.96 Not Significant
Vidharbha 1.67999166 Marathwada 1.96 Not Significant
Konkan 4.74618961 Nagpur 1.96 Significant
299
Nagpur 1.34666757 Marathwada 1.96 Significant
Nagpur 10.6410543 North Maharashtra 1.96 Significant
Nagpur 1.3738836 West Maharashtra 1.96 Not Significant
Konkan 6.83590464 Marathwada 1.96 Significant
Konkan 5.45265556 North Maharashtra 1.96 Significant
Konkan 3.9134275 West Maharashtra 1.96 Significant
Marathwada 14.4530361 North Maharashtra 1.96 Significant
Marathwada 3.24839389 West Maharashtra 1.96 Significant
West Maharashtra 11.2615143 North Maharashtra 1.96 Significant
300
From the above table it is observed that there is a significant difference in the culture of six regions apart from few regions which shows a non significant relation among the regions.
11.10.2 Individualism Index (IDV) Individualism and collectivism are two opposite points of the continuum. Individualism in a society means that there are loose ties between the individuals and a person is expected to look after himself or herself and his or her immediate family only (Hofstede 1994). The people in individualistic society are independent from their in group (family, tribe, nation, etc.) and prioritize theirpersonal goals over their in-group goals (Triandis 2001a). In contrast,―collectivism stands for a society in which people from birth onwards are integrated into strong, cohesive in-groups, which continue to protect them throughout their lifetime in exchange for unquestioning loyalty‖(Hofstede 1994).
In collectivist characters people are concerned about relationships, give priority to their in-groups‘ goals, and behave according to the in-group goals (Triandis 2001b).
The formula for computing this index is (Hofstede 2008): IDV = -50m(01) + 30m(02) + 20m(04) – 25m(08) + 153.53 In which m (01) is the mean score for question 01, etc.
The Individualism Index (IDV) has been computed for the four states as shown below. [Figure 11.10.2 (a andb)]
301
Descriptive Statistics Figure 11.10.2 (a) Std. N Mean Deviation Variance Stati Std. stic Statistic Error Statistic Statistic IDV Vidharbh 440 58.8709 2.20347 46.22045 2136.330
IDV Nagpur 470 48.9023 2.72169 59.00489 3481.577
IDV Konkan 425 39.9653 2.15090 44.34200 1966.213
IDV North 495 34.7421 2.16793 48.23342 2326.463 Maharashtra IDV West 500 56.2300 2.45125 54.81167 3004.319 Maharastra IDV Marathwada 461 50.6558 2.08188 44.69989 1998.080
Fig. 11.10.2 (b) Bar chart of Individualism Index Values for six regions
Individualism Index Values 70 58.8709 60 56.23 48.9023 50.6558 50 39.9653 40 34.7421
Scores 30 IDV 20 10 0
Regions
302
Vidharbh is the most individualistic (58.87) of all the regions on the Individualism Index while North Maharashtra is the most collectivistic (38.15). While Nagpur (48.9) is almost mid-way between collectivism and Individualism but is comparatively less collectivistic than Konkan (39.96), North Maharashtra (34.7421). This suggests that people of Vidarbha region are less companionable compared to the people of North Maharashtra region.
To statistically prove that there is a cultural difference in six regions with context to IDV t-test has been applied and the results of the test are as follows:
Calculated IDV T- Value Table T-value Result Vidharbha Nagpur 4.2743758 1.96 Significant
Vidharbha Konkan 6.1413045 1.96 Significant
Vidharbha North Maharashtra 7.8062234 1.96 Significant
Vidharbha West Maharashta 0.8009761 1.96 Not Significant
Vidharbha Marathwada 2.7116372 1.96 Significant
Konkan 1.136379
303
Nagpur 1.96 Not Significant
Nagpur Marathwada 1.969296 1.96 Significant
Nagpur North Maharashtra 2.6331668 1.96 Significant
Nagpur West Maharashtra 3.365787 1.96 Not Significant
Konkan Marathwada 3.571239 1.96 Significant
Konkan North Maharashtra 1.7093888 1.96 Not Significant
Konkan West Maharashtra 4.98924 1.96 Significant
Marathwada North Maharashtra 5.2934935 1.96 Significant
Marathwada West Maharashtra 1.735087 1.96 Not Significant
West Maharashtra North Maharashtra 6.5673741 1.96 Significant
304
From the above table it is observed that there is a significant difference in the culture of six regions apart from few regions which shows a non significant relation among the regions.
11.10.3 Masculinity Index (MAS)
Masculinity and Femininity are opposite to each other. There is a common trend in majority of the societies about the distribution of gender roles. Men are more concerned with economic and other achievements while women are usually concerned with taking care of people and children (Hofstede 2001 p.280). There is common pattern of male assertiveness and nurturance which leads to male dominance in matters of politics and economic life within a family, different societies show different distributions of power between the genders (ibid.).
―Masculinity stands for a society in which emotional gender roles are clearly distinct: men are supposed to be assertive, tough, and focused on material success; women are supposed to be more modest, tender, and concerned with the quality of life. Femininity stands for a society in which emotional gender roles overlap: both men and women are supposed to be modest, tender, and concerned with the quality of life‖ (Hofstede 1994).
The formula for calculating MAS (Hofstede 2008) is MAS = + 60 m (05) – 20m (07) + 20(15) – 70m (20) + 3.94 In which m(05) is the mean score for question 05, etc.
The Masculinity Index calculated for the various states is as shown below [Figure 11.10.3 (a andb)]
305
Descriptive Statistics Figure 11.10.3 (a) Std. N Mean Deviation Variance
Statistic Statistic Std. Error Statistic Statistic MAS Vidharbh 440 49.5195 2.39014 50.13597 2513.616
MAS Nagpur 470 60.3868 2.32598 50.42604 2542.785
MAS Konkan 425 48.3282 1.97092 40.63154 1650.922
MAS North 495 62.9097 1.21533 27.03928 731.123 Maharashtra MAS West 500 51.2600 1.60405 35.86768 1286.491 Maharashtra
MAS Marathwada 461 62.7795 1.95277 41.92784 1757.944
Fig. 11.10.3 (b) Bar chart of Masculinity Index Values for six regions
Masculinity Index Values 70 62.9097 62.7795 60.3868 60 51.26 49.5195 48.3282 50
40 MAS Scores 30
20
10
0 Vidharbh Nagpur Kokan North West Mahara Marathwada Maharashtra Regions
306
North Maharashtra scores highest as compared to the regions on the Masculinity Index. The other regions Konkan (48.32), Vidharbh (49.91) and west Maharashta (51.26) are almost equal on the Masculinity Index. The status of women in large number of communities is low in Marathwada.In low MAS society there is belief in Theory Y whereas in high MAS society there is belief in Theory X.
There is minimum emotional and social role differentiation between the genders and men are expected to be tender and caring in low MAS societies in contrast to high MAS societies where there is maximum emotional and social role differentiation between the genders and men are expected to tough and assertive.Buying decisions and shopping is shared between the partners in low MAS society whereas men make the main buying decisions in high MAS society.
To statistically prove that there is a cultural difference in six regions with reference to MAS , t-test has been applied and the results of the test are as follows
Table T- MAS T- Value value Result Vidharbha Nagpur 3.26 1.96 Significant
Vidharbha Konkan 0.3842 1.96 Not Significant
Vidharbha North Maharashtra 4.998 1.96 Significant
307
Vidharbha West Maharashta 0.608 1.96 Not Significant
Vidharbha Marathwada 4.297 1.96 Significant
Konkan Nagpur 3.956 1.96 Significant
Nagpur Marathwada 0.787 1.96 Not Significant
Nagpur 1.96 Not Significant North Maharashtra 0.964
Nagpur West Maharashtra 3.2283 1.96 Significant
Konkan Marathwada 5.209 1.96 Significant
Konkan North Maharashtra 6.301 1.96 Significant
Konkan West Maharashtra 1.157 1.96 Not Significant
Marathwada 0.06
308
North Maharashtra 1.96 Not Significant
Marathwada West Maharashtra 4.5555 1.96 Significant
West Maharashtra North Maharashtra 5.292 1.96 Significant
From the above table it is observed that there is a significant difference in the culture of six regions apart from few regions which shows a non significant relation among the regions.
11.10.4 Uncertainty Avoidance Index (UAI) Uncertainty Avoidance is ―the extent to which members of a culture feel threatened by uncertain or unknown situations‖ (Hofstede 2001). The Index formula for calculating UAI (Hofstede 1994) is
UAI = + 25 m (13) + 20 m (16) – 50 m (18) – 15 m (19) +(-87.4) In which m (13) is the mean score for question 13, etc.
The Uncertainty Avoidance Index for the six regions is as below[Figure 11.10.4 (a andb)]
309
Std. N Mean Deviation Variance
Statistic Std. Error Statistic Statistic UAI Vidharbha 440 42.3727 2.06625 43.34208 1878.536
UAI Nagpur 470 44.5681 1.86457 40.42299 1634.018
UAI Konkan 425 48.5176 1.86026 38.35018 1470.736
UAI North 495 40.5596 1.84101 40.95987 1677.711 Maharashtra UAI West 500 36.6500 1.71265 38.29596 1466.581 Maharashtra UAI Marathwada 461 28.0013 1.57942 33.91167 1150.002
Fig. 11.10.4 (b) Bar chart of Uncertainty Avoidance Index Values for six regions
Uncertainty Avoidance Index 70 62.9097 62.7795 60.3868 60 51.26 49.5195 48.3282 50
40 UAI Scores 30
20
10
0 Vidharbh Nagpur Kokan North West Mahara Marathwada Maharashtra Regions
310
Konkan scores the lowest (48.51), while Marathwada scores the highest (28.00) on the Uncertainty Avoidance Index. West Maharashta and North Maharashtra lie in between with scores of 36.65 and 40.55 respectively on Uncertainty Avoidance Index. In low UAI societies (Marathwada) there is weak loyalty to employer and there is renegade championing whereas in high UAI societies there is strong loyalty to employer and there is rational championing (Hofstede 2001 p. 169). Uncertainty avoiding cultures avoid ambiguous situations and, look towards their organizations, institutions, and relationships to interpret and predict the events
People in low UAI societies consume convenience products and, read books and newspapers whereas in high UAI societies people consume ―purity‖ products like mineral water, fresh fruits, sugar, washing powder, and read less books and newspapers .In low UAI society the main car bought is second hand and people invest in stocks, whereas in the high UAI the main car bought is new and people invest in precious metals and gems.
To statistically prove that there is a cultural difference in six regions, with reference to UAI t-test has been applied and the results of the test are as follows
Calculated UAI T- Value Table T-value Result Vidharbha Nagpur 0.78692 1.96 Not Significant
Vidharbha Konkan 4.36659 1.96 Significant
Vidharbha 0.65774
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North Maharashtra 1.96 Not Significant
Vidharbha West Maharashta 2.13153 1.96 Significant
Vidharbha Marathwada 5.52518 1.96 Significant
Konkan Nagpur 0.14807 1.96 Not Significant
Nagpur Marathwada 8.55282 1.96 Significant
Nagpur North Maharashtra 3.18716 1.96 Significant
Nagpur West Maharashtra 4.83908 1.96 Significant
Konkan Marathwada 8.40427 1.96 Significant
Konkan North Maharashtra 3.04176 1.96 Significant
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Konkan West Maharashtra 4.69073 1.96 Significant
Marathwada North Maharashtra 5.17413 1.96 Significant
Marathwada West Maharashtra 3.71273 1.96 Significant
West Maharashtra North Maharashtra 1.55135 1.96 Not Significant
From the above table it is observed that there is a significant difference in the culture of six regions apart from few regions which shows a non significant relation among the regions.
11.10.5 Long-term Orientation Index (LTO) Long-term Orientation is the opposite of Short-term Orientation. ―Long-term Orientation stands for a society that fosters virtues oriented towards future rewards, in particular perseverance and thrift. Short-term orientation stands for a society that fosters virtues related to the past and present, in particular respect for tradition, preservation of ―face‖ , and fulfilling social obligations‖ (Hofstede 1994).
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The formula for calculating this index (Hofstede 2008) is LTO = + 45 m (09) – 30 m (10) – 35 m (11) + 15 m (12) + 17.7 In which m (10) is the mean score for question 10, etc.
The Long-term Orientation Index for the six regions is as below [Figure 11.10.5 (aandb)] Descriptive Statistics Figure 11.10.5 (a)
N Mean Std. Deviation Variance
Statistic Statistic Std. Error Statistic Statistic LTO Vidharbh 440 55.0750 2.64783 55.54130 3084.836
LTO Nagpur 470 64.8596 2.30109 49.88650 2488.663
LTO Konkan 425 71.7353 2.05880 42.44320 1801.426
LTO North 495 61.0939 1.91905 42.69628 1822.972 Maharashtra LTO West 500 59.1800 1.62120 36.25104 1314.138 Maharashtra LTO Marathwada 461 51.9842 2.11914 45.49997 2070.247
Fig. 11.10.5 (b) Bar chart of Long-term Orientation Index Values for six regions
Long-term Orientation Index 80 71.7353 70 64.8596 61.0939 59.18 60 55.075 51.9842 50 40 30 20 10 0 LTO Vidharbh LTO Nagpur LTO Kokan LTO North LTO West LTO Maharashtra Maharashtra Marathwada
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Konkam having the highest (71.73), while Marathwada scores the lowest (51.98) on the Long-term Orientation Index. North Maharashtra (61.09) score in between the two former regions. In low LTO societies like Marathwada in this study quick results are expected while in high LTO societies (Konkan ), persistence and perseverance is exhibited (Hofstede 2001 p.360). In low LTO society people spend and reciprocate greetings, favors and gifts whereas in high LTO people are thrifty and reciprocations are considered as overspending. In low LTO there is lower performance in basic mathematics tasks and logical thinking is prevalent whereas in high LTO societies there is higher performance of in basic mathematics tasks and imitation thinking is more prevalent.
To statistically prove that there is a cultural difference in six regions with reference to LTO , t-test has been applied and the results of the test are as follows
LTO T- Value Table T -value Result Vidharbha Nagpur 2.786686586 1.96 Significant
Vidharbha Konkan 12.62558546 1.96 Significant
Vidharbha North Maharashtra 3.368587877 1.96 Significant
Vidharbha West Maharashta 2.935928434 1.96 Significant
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Vidharbha Not Marathwada 0.561766801 1.96 Significant
Konkan Nagpur 2.228456983 1.96 Significant
Nagpur Marathwada 4.11485581 1.96 Significant
Nagpur North Not Maharashtra 1.255054164 1.96 Significant
Nagpur West Maharashtra 2.014521336 1.96 Significant
Konkan Marathwada 6.685581688 1.96 Significant
Konkan North Maharashtra 3.780831559 1.96 Significant
Konkan West Maharashtra 4.78947163 1.96 Significant
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Marathwada North Maharashtra 3.187088766 1.96 Significant
Marathwada West Maharashtra 2.698895589 1.96 Significant
West Maharashtra North Not Maharashtra 0.760370196 1.96 Significant
From the above table it is observed that there is a significant difference in the culture of six regions apart from few regions which shows a non significant relation among the regions.
11.10.6 Indulgence versus Restraint (IVR) Restraint stands for a society which controls gratification with respect of desire and feelings and where people feel less able to enjoy their lives. The formula for calculating this index (Hofstede 2008) is IVR= 35(m12 – m11) + 40(m19 – m17) + C(ir) In which m (12) is the mean score for question 12, etc.
The Indulgence versus Restraint (IVR) Index for the six regions is as below [Figure 11.10.6 (a andb)]
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Descriptive Statistics Figure 11.10.6 (a)
Std. N Mean Deviation Variance Statistic Statistic Std. Error Statistic Statistic IVR Vidharbh 440 30.4777 2.21193 46.39794 2152.769
IVR Nagpur 470 29.4364 1.80815 39.19974 1536.620
IVR Konkan 425 26.7888 1.54114 31.77142 1009.423
IVR North 495 21.7744 1.40053 31.15984 970.936 Maharashtra IVR West 500 19.8500 1.22693 27.43492 752.675 Maharashtra IVR Marathwada 461 26.8810 1.62775 34.94922 1221.448
Figure 11.10.6 (b) Bar chart of Indulgence versus Restraint Index Values for six regions
35 Indulgence versus Restraint 30.4777 29.4364 30 26.7888 26.881
25 21.7744 19.85 20 IVR
Scores 15
10
5
0 Vidharbh Nagpur KokanRegionsNorth MaharashtraWest MaharaMarathwada
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Vidarbha scores the highest (30.47), while west Maharashtra scores the lowest (19.85) on the Indulgence versus Restraint Index. North Maharashtra (21.77) score in between the two former regions. Societies with high indulgence value stands for a society which allows gratification of some desires and feelings especially those that have to do with leisure, merrymaking with friends etc,whereas restraint stands for a society which control such gratification and where people feel less free to enjoy their lives.
Minkov (2007) specified that happiness is associated with perception of life control, with life control being a source of freedom and leisure. Societies with high indulgence tend to co-mingle work and social activities, and generally have a less ―serious‖ attitude towards than societies with high means of restraints
To statistically prove that there is a cultural difference , in six regions with reference to UAI t-test has been applied and the results of the test are as follows
Calculated IVR T- Value Table T-value Result Vidharbha Nagpur 10.77 1.96 Significant
Vidharbha Konkan 1.3689 1.96 Not Significant
Vidharbha North Maharashtra 3.3235 1.96 Significant
Vidharbha 4.1993
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West Maharashta 1.96 Significant
Vidharbha Marathwada 1.3075 1.96 Not Significant
Konkan 1.96 Not Significant Nagpur 0.695
Nagpur Marathwada 1.0484 1.96 Not Significant
Nagpur North Maharashtra 3.3501 1.96 Significant
Nagpur West Maharashtra 4.3852 1.96 Significant
Konkan Marathwada 0.045 1.96 Not Significant
Konkan North Maharashtra 2.4062 1.96 Significant
Konkan West Maharashtra 3.5183 1.96 Significant
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Marathwada North Maharashtra 2.3804 1.96 Significant
Marathwada West Maharashtra 3.4497 1.96 Significant
West Maharashtra North Maharashtra 0.915 1.96 Not Significant
From the above table it is observed that there is a significant difference in the culture of six regions apart from few regions which shows a non significant relation among the regions.
Monumentalism versus Self-Effacement (MON) Monumentalism occurs in societies that reward people for behavior that embodies proud and unchangeable (Minkov 2007) stands for society which reward flexibility and humility.
The formula for calculating this index (Hofstede 2008) is MON = 35(m14 – m13) + 25(m22 – m21) + C(mo) MON In which m (14) is the mean score for question 14, etc.
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The Monumentalism versus Self-Effacement (MON) Index for the six regions is as below [Figure 11.10.7 (aandb)]
Descriptive Statistics Figure 11.10.7 (a)
N Mean Std. Deviation Variance
Statistic Statistic Std. Error Statistic Statistic MON Vidharbh 440 60.7500 1.97855 41.50233 1722.443 MON Nagpur 470 53.5000 1.41254 30.62315 937.777 MON Konkan 425 55.2000 1.37544 28.35539 804.028 MON North 495 48.4646 1.05319 23.43192 549.055 Maharshtra MON West 500 48.5200 .83211 18.60650 346.202 Maharashtra MON Marathwada 461 48.1562 .86599 18.59364 345.723
Figure 11.10.7 (b) Bar chart of Monumentalism versus Self-Effacement Index Values for six regions
Monumentalism versus Self-Effacement 70 60.75 60 53.5 55.2 48.4646 48.52 48.1562 50 40
Scores 30 MON 20 10 0 Vidharbh Nagpur Kokan North West Mahara Marathwada Maharashtra Regions
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Vidharbha scores the highest (60.75), while west Maharashta and Marathwada scores the lowest (48.52) and (48.15) on Monumentalism versus Self-Effacement Index. In culture with high Self-Effacement, people view and describe themselves as flexible individuals whose character can, mature in order to adapt a situation.
To statistically prove that there is a cultural difference in six regions with reference to MON t-test has been applied and the results of the test are as follows
Table T- MON T- Value value Result Vidharbha Nagpur 2.9824 1.96 Significant
Vidharbha Konkan 2.3034 1.96 Significant
Vidharbha North Maharashtra 5.4833 1.96 Significant
Vidharbha West Maharashta 5.698 1.96 Significant
Vidharbha Marathwada 5.8342 1.96 Significant
Konkan 0.8624
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Nagpur 1.96 Not Significant
Nagpur Marathwada 4.4366 1.96 Significant
Nagpur 1.96 Significant North Maharashtra 3.996
Nagpur West Maharashtra 4.258 1.96 Significant
Konkan Marathwada 4.3378 1.96 Significant
Konkan North Maharashtra 3.8908 1.96 Significant
Konkan West Maharashtra 4.1554 1.96 Significant
Marathwada North Maharashtra 0.227 1.96 Not Significant
Marathwada West 0.308 1.96 Not Significant
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Maharashtra
West Maharashtra North Maharashtra 0.0447 1.96 Not Significant
From the above table it is observed that there is a significant difference in the culture of six regions apart from few regions which shows a non significant relation among the regions.
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Fig 11.11 The comparative scores on the seven cultural dimensions of the six regions in the state of Maharashtra are shown in below Figure
Region-wise Cultural Dimensions
100
90
80
70
60
50 Score
40
30
20
10
0 PDI IDV MAS UAI LTO IVR MON Regions
Vidharbh Nagpur
Kokan North Maharashtra
West Mahara Marathwada
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Result: Null Hypothesis is invalid and rejected and hence alternative hypothesis is accepted.
Result :
From the above it is clear that there exists cultural difference among the 6 regions (Vidarbha, Nagpur, Konkan, North Maharashtra, West Maharashtra, Marathwada) of Maharashtra.In this objective the Null hypothesis state ―There exists no cultural difference among the 6 regions of Maharashtra‖. Hypothesis is validated using test and have been studied and explained in the previous pages. This means that there do exist a cultural difference in the six regions of Maharashtra.
ALTERNATIVE HYPOTHESIS IS VALID AND ACCEPTED AND HENCE NULL HYPOTHESIS IS REJECTED.
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HYPOTHESIS 2
Null Hypothesis HO2 : There exists no relationship among various cultural indexes i.e. PDI, IDV, MAS, UAI, LTO, IVR and MON in selected regions of Maharashtra
Alternative HypothesisH12 : There exists a relationship among Various cultural indexes i.e. PDI, IDV, MAS, UAI, LTO, IVR and MON in selected regions of Maharashtra
The validity of hypothesis was tested through correlation test. The application of correlation is to measure the degree of association between the sets of metric data (Nargundkar,2003) .
The correlation coefficient indicates the strength of the association between the variables.the sign + or – can indicate the direction of the relationship,0 indicating no relationship and – 1 indicating a perfect negative relationship(Hair rt al 2003).this technique is used to test the hypothesis.in this objective the correlation between the different indexes . PD, IDV, MAS, UAI, LTO, IVR and MON
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11.12 Correlations PDI IDV MAS LTO IVR UAI MON PDI Pearson 1 -.828* .088 .446 -.484 .398 -.188 Correlation Sig. (2-tailed) .042 .869 .375 .330 .434 .721 N 6 6 6 6 6 6 6 IDV Pearson -.828* 1 -.366 -.568 .272 -.318 .333 Correlation Sig. (2-tailed) .042 .475 .239 .602 .540 .519 N 6 6 6 6 6 6 6 MAS Pearson .088 -.366 1 -.326 -.098 -.498 -.625 Correlation Sig. (2-tailed) .869 .475 .528 .854 .314 .185 N 6 6 6 6 6 6 6 LTO Pearson .446 -.568 -.326 1 -.015 .832* .168 Correlation Sig. (2-tailed) .375 .239 .528 .978 .040 .751 N 6 6 6 6 6 6 6 IVR Pearson -.484 .272 -.098 -.015 1 .271 .754 Correlation Sig. (2-tailed) .330 .602 .854 .978 .603 .084 N 6 6 6 6 6 6 6 UAI Pearson .398 -.318 -.498 .832* .271 1 .613 Correlation Sig. (2-tailed) .434 .540 .314 .040 .603 .195 N 6 6 6 6 6 6 6 MON Pearson -.188 .333 -.625 .168 .754 .613 1 Correlation Sig. (2-tailed) .721 .519 .185 .751 .084 .195 N 6 6 6 6 6 6 6 *. Correlation is significant at the 0.05 level (2-tailed).
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The various indexes did correlate with each other such as PDI with IDV and UAI with LTO which showed significant correlation .828 and.832 respectively. The remaining indices are not significantly correlated, hence do not cause any change to each other. So change in PDI could result in change in IDV since the value is negative so with increase in PDI value IDV decreases whereas UAI and LTO are positively correlated which.
Result: Null Hypothesis is invalid and rejected and hence alternative hypothesis is accepted.
From the above it is clear that there exists no relationship among various cultural indexes i.e. PDI, IDV, MAS, UAI, LTO, IVR and MON in selected regions of Maharashtra.In this objective the Null hypothesis state ―there exists no relationship among various cultural indexes i.e. PDI, IDV, MAS, UAI, LTO, IVR and MON in selected regions of Maharashtra.‖. Hypothesis is validated using test and have been studied. This means that there do exist no relationship among various cultural indexes i.e. PDI, IDV, MAS, UAI, LTO, IVR and MON in selected regions of Maharashtra
ALTERNATIVE HYPOTHESIS IS VALID AND ACCEPTED AND HENCE NULL HYPOTHESIS IS REJECTED
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HYPOTHESIS 3
Null Hypothesis HO3 : Cultural dimensions i.e. PDI, IDV, MAS, UAI, LTO, IVR and MON have no impact on the consumption pattern of different types of commodities
Alternative HypothesisH13 : Cultural dimensions i.e. PDI, IDV, MAS, UAI, LTO, IVR and MON does influence the consumption pattern of different types of commodities.
Total number of indexes for each region is classified into 3 categories High, Medium and Low indices .These categories are formed using arithmetic mean and standard deviation .Limits for the same were calculated by points of inflexion method (points at which tendency of curve changes) Chi-square test is used to test impact of seven cultural dimensions i.e. PDI, IDV, MAS, UAI, LTO, IVR and MON on the consumption pattern of selected commodities. For indexes which have a significant impact have been further analyzed for better understanding of the impact of indexes on consumption by applying descriptive and ANOVA. ANOVA has been performed to find the if there is a significant difference in three levels of consumers wrt. Consumption of selected commodities for all the six regions taken under the study.
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NAGPUR REGION
11.13.1 IMPACT OF CULTURE INDICES LIQUOR CONSUMPTION
Sr no Culture Index Degree of Chi-square Chi- Result of test freedom calculated square value table value 1 PDI 4 3.50 9.49 Not significant 2 IDV 4 2.92 9.49 Not significant 3 MAS 4 2.55 9.49 Not significant 4 UAI 4 12.12 9.49 Significant 5 LTO 4 0.28 9.49 Not significant 6 IVR 4 17.90 9.49 Significant MON 4 2.05 9.49 Not significant 7
From the above Table it is observed that out of seven dimensions only one is significant. Therefore there is association between liquor consumption and UAI and IVR dimension in Nagpur region. Other dimensions has no association withLiquor . For further elaborate result descriptive and ANOVA has been applied and the results of the test are as follows.
11.13.1(a) Descriptive Statistics N Mean Std. Deviation
Statistic Statistic Std. Error Statistic UAI_low_liquor 122 2.1475 .07423 .81992 UAI_medium_liquor 267 2.2659 .04748 .77586 UAI_high_liquor 81 2.4815 .08446 .76012 Valid N (listwise) 81
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11.13.1(b) ANOVA FOR IVR AND LIQUOR Sum of Mean Squares df Square F Sig. liquor Between 3.245 2 1.623 2.614 .074 Groups Within 289.895 467 .621
Groups Total 293.140 469
Above results indicate that calculated value of F-test (1.623) is less than F-table value ( 2.99). Hence it is concluded that there is no significant difference in consumption of three levels of consumption of liquor
11.13.1(c) ANOVA FOR UAI AND LIQUOR Sum of Mean Squares df Square F Sig. liquor Between 5.454 2 2.727 4.427 .012 Groups Within 287.686 467 .616
Groups Total 293.140 469
Above results indicate that calculated value of F-test (4.427 ) is less than F- table value ( 2.99). Hence it is concluded that there is significant difference in consumption of three levels of consumption of liquor.
11.13.1(d) Descriptive Statistics N Mean Std. Deviation Statistic Statistic Std. Error Statistic IVR_low_liquor 40 2.0000 .15191 .96077 IVR_medium_liquor 304 2.2961 .04388 .76507 IVR_high_liquor 126 2.3016 .06971 .78251 333
11.13.2 IMPACT OF CULTURE INDICES FROZEN FOOD CONSUMPTION
Sr no Culture Index Degree of Chi-square Chi- Result of test freedom calculated square value table value 1 PDI 4 1.86 9.49 Not significant 2 IDV 4 3.49 9.49 Not significant 3 MAS 4 9.76 9.49 Significant
4 UAI 4 7.80 9.49 Not significant 5 LTO 4 5.09 9.49 Not significant 6 IVR 4 5.14 9.49 Not significant 7 MON 4 5.36 9.49 Not significant
From the above Table it is observed that out of seven dimensions only one is significant. Therefore there is association between frozen food consumption and MAS dimension in Nagpur region. Other six dimensions has no association with fast food. For further elaborate result descriptive and ANOVA has been applied and the results of the test are as follows.
11.13.2 (a) Descriptive Statistics
N Mean Std. Deviation
Statistic Statistic Std. Error Statistic MAS_low_frozen_food 97 2.0103 .06471 .63729
MAS_medium_frozen_food 332 2.0422 .03038 .55351
MAS_high_frozen_food 41 1.8537 .10218 .65425
Valid N (listwise) 41
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11.13.2(b) ANOVA FOR MAS AND FROZEN FOODS
Sum of Mean Squares df Square F Sig. Frozen_foods Between 1.306 2 .653 1.936 .145 Groups Within 157.521 467 .337
Groups Total 158.828 469
Above results indicate that calculated value of F-test (1.93) is less than F-table value( 2.99). Hence it is concluded that there is no significant difference in consumption of three levels of consumption of Frozen food. 11.13.3 IMPACT OF CULTURE INDICES FAST FOOD CONSUMPTION
Sr no Culture Index Degree of Chi-square Chi- Result of test freedom calculated square value table value 1 PDI 4 8.15 9.49 Not significant 2 IDV 4 0.62 9.49 Not significant 3 MAS 4 3.98 9.49 Not significant 4 UAI 4 9.73 9.49 Significant
5 LTO 4 5.76 9.49 Not significant 6 IVR 4 4.89 9.49 Not significant 7 MON 4 5.58 9.49 Not significant
From the above Table it is observed that out of seven dimensions only one is significant. Therefore there is association between liquor consumption and UAI dimension in Nagpur region. Other dimensions has no association withfast food .
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For further elaborate result descriptive and ANOVA has been applied and the results of the test are as follows .
11. 13.3 (a)Descriptive Statistics
N Mean Std. Deviation
Statistic Statistic Std. Error Statistic UAI_low_fast_food 122 2.2049 .05326 .58830
UAI_medium_fast_food 267 2.1498 .03140 .51302
UAI_high_fast_food 81 2.1975 .04785 .43069
Valid N (listwise) 81
11. 13.3 (b) ANOVA for UAI AND FASTFOODS
Sum of Mean Squares df Square F Sig. Fast_foods Between .316 2 .158 .583 .559 Groups
Within Groups 126.724 467 .271 Total 127.040 469
Above results indicate that calculated value of F-test (.583) is less than F-table value (2.99). Hence it is concluded that there is no significant difference in consumption of three levels of consumption of fast foods
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11.13.4 IMPACT OF CULTURE INDICES CONSUMPTION OF CLOTHES
Sr no Culture Index Degree of Chi-square Chi- Result of test freedom calculated square value table value 1 PDI 4 2.58 9.49 Not significant 2 IDV 4 3.55 9.49 Not significant
3 MAS 4 3.59 9.49 Not significant
4 UAI 4 13.00 9.49 Significant
5 LTO 4 2.06 9.49 Not significant 6 IVR 4 5.56 9.49 Not significant
7 MON 4 0.44 9.49 Not significant
From the above Table it is observed that out of seven dimensions only one is significant. Therefore there is association between clothes and UAI and IVR dimension in Nagpur region. Other dimensions has no association with clothes . For further elaborate result descriptive and ANOVA has been applied and the results of the test are as follows
11.13.4 (a)Descriptive Statistics
N Mean Std. Deviation Statistic Statistic Std. Error Statistic UAI_low_clothes 122 1.8607 .05116 .56504 267 1.8127 .03612 .59013 UAI_medium_clothes 81 1.9136 .08089 .72797 UAI_high_clothes
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11.13.4 (b) ANOVA for UAI and CLOTHES Sum of Mean Squares df Square F Sig. clothes Between .686 2 .343 .922 .398 Groups
Within 173.663 467 .372
Groups Total 174.349 469 Above results indicate that calculated value of F-test (.922) is less than F-table value (2.99). Hence it is concluded that there is no significant difference in consumption of three levels of consumption of clothes.
11.13.5 CHI-SQUARE TEST IS USED TO TEST ASSOCIATION INVESTMENT AND CULTURE INDICES
Culture Degree of Chi-square Chi- Result of test Index freedom calculated square value table value Sr no 1 PDI 4 0.99 9.49 Not significant 2 IDV 4 2.63 9.49 Not significant
3 MAS 4 4.74 9.49 Not significant
4 UAI 4 6.23 9.49 Not significant
5 LTO 4 1.77 9.49 Not significant 6 IVR 4 3.44 9.49 Not significant
7 MON 4 2.61 9.49 Not significant
From the above Chi square result application test result it is clear that from seven indexes none on them is having any association on investment
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Validity of Null hypothesis was tested using Chi-square and ANOVA.According to the test applied for 2 degree of freedom the table value 9.49 .if the calculated value <(less than) the table value ,then Chi-Square test is accepted and if the calculated value is >(greater than) the table value ,then the chi-square test is rejected ,hence the alternative hypothesis is accepted and valid. ANOVA has been performed to find the if there is a significant difference in three levels of consumers wrt. Consumption of selected commodities for all the six regions taken under the study
In case of Nagpur the summary is as follows:
Culture Index which have an impact on the consumption of the selected Product products. LIQUOR UAI IVR FROZEN FOODS MAS FAST FOODS UAI
CLOTHES UAI
In this case the null Hypothesis states ―Cultural dimensions i.e. PDI, IDV, MAS, UAI, LTO, IVR and MON have no impact on the consumption pattern of different types of commodities ―which is rejected for the above commodities and dimensions since the calculated value is higher than the table value (as shown in the above tables).thus the alternative hypothesis is accepted and valid, which states ―Cultural dimensions i.e. PDI, IDV, MAS, UAI, LTO, IVR and MON does influence the consumption pattern of different types of commodities‖.
RESULT :NULL HYPOTHESIS IS REJECTED AND HENCE ALTERNATIVE HYPOTHESIS IS ACCEPTED AND VALID
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VIDHARBHA 11.14.1 CHI-SQUARE TEST IS USED TO TEST ASSOCIATION LIQUOR CONSUMPTION AND CULTURE INDICES
Sr Culture Index Degree of Chi-square Chi- Result of test no freedom calculated square value table value 1 PDI 4 7.26 9.49 Non Significant 2 IDV 4 0.89 9.49 Non Significant 3 MAS 4 5.24 9.49 Non Significant 4 UAI 4 0.84 9.49 Non Significant 5 LTO 4 1.61 9.49 Non Significant 6 IVR 4 5.39 9.49 Non Significant 7 MON 4 1.05 9.49 Non Significant
11.14.2 CHI-SQUARE TEST IS USED TO TEST ASSOCIATION FROZEN FOOD CONSUMPTION AND CULTURE INDICES
Culture Index Degree of Chi-square Chi- Result of test Sr freedom calculated square no value table value 1 PDI 4 2.97 9.49 Non Significant 2 IDV 4 7.24 9.49 Non Significant 3 MAS 4 1.98 9.49 Non Significant 4 UAI 4 4.03 9.49 Non Significant 5 LTO 4 4.47 9.49 Non Significant 6 IVR 4 11.42 9.49 Significant 7 MON 4 3.43 9.49 Non Significant
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From the above Table it is observed that out of seven dimensions only one is significant. Therefore there is association between frozenfoods consumption and IVR dimension in Vidarbha region. Other dimensions has no association with frozenfoods . For further elaborate result descriptive and ANOVA has been applied and the results of the test are as follows .
11.14.2 (a)Descriptive Statistics
N Mean Std. Deviation
Statistic Statistic Std. Error Statistic IVR_low_frozen_food 182 1.9670 .04041 .54521
IVR_medium_frozen_food 209 2.1196 .04126 .59650
IVR_high_frozen_food 49 2.2041 .07704 .53927
Valid N (listwise) 49
11.14.2 (b)ANOVA For IVR AND Frozen Foods
Sum of Mean Squares df Square F Sig. Frozen_foods_c Between 3.318 2 1.659 5.113 .006 oded Groups
Within 141.771 437 .324
Groups Total 145.089 439
Above results indicate that calculated value of F-test (5.113) is more than F-table value (2.99). Hence it is concluded that there is significant difference in consumption of three levels of consumption of frozen foods
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11.14.3 CHI-SQUARE TEST IS USED TO TEST ASSOCIATION FAST FOOD CONSUMPTION AND CULTURE INDICES
Sr no Culture Index Degree of Chi-square Chi- Result of test freedom calculated square value table value 1 PDI 4 7.54 9.49 Non Significant 2 IDV 4 11.51 9.49 Significant
3 MAS 4 4.57 9.49 Non Significant 4 UAI 4 2.70 9.49 Non Significant 5 LTO 4 4.29 9.49 Non Significant 6 IVR 4 4.26 9.49 Non Significant 7 MON 4 3.12 9.49 Non Significant
From the above Table it is observed that out of seven dimensions only one is significant. Therefore there is association between Fast foods consumption and IDV dimension in Vidarbha region. Other dimensions has no association with Fast foods . For further elaborate result descriptive and ANOVA has been applied and the results of the test are as follows
11.14.3 (a) Descriptive Statistics
N Mean Std. Deviation Statistic Statistic Std. Error Statistic IDV_Low_fast_food 90 2.1778 .05377 .51007 IDV_medium_fast_food 283 2.1625 .03137 .52768 IDV_high_fast_food 97 2.1959 .05210 .51314 Valid N (listwise) 90
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11.14.3 (b) ANOVA for IDV AND FASTFOODS Sum of Mean Squares df Square F Sig. Fast_foods1 Between 1.360 2 .680 2.509 .083 Groups Within 118.438 437 .271
Groups Total 119.798 439
Above results indicate that calculated value of F-test (2.509 ) is slightly less than F-table value (2.99). Hence it is concluded that there is no significant difference in consumption of three levels of consumption of fast foods.
11.14.4 CHI-SQUARE TEST IS USED TO TEST ASSOCIATION CLOTHES AND CULTURE INDICES
Sr Culture Index Degree of Chi-square Chi- Result of no freedom calculated square test value table value 1 PDI 4 1.08 9.49 Non Significant 2 IDV 4 1.59 9.49 Non Significant
3 MAS 4 3.16 9.49 Non Significant 4 UAI 4 7.30 9.49 Non
Significant 5 LTO 4 5.16 9.49 Non Significant
6 IVR 4 9.62 9.49 Significant
7 MON 4 2.01 9.49 Non Significant
From the above Table it is observed that out of seven dimensions only one is significant. Therefore there is association between clothes and IVR dimension in Vidarbha region. Other dimensions has no association withclothes . For
343 further elaborate result descriptive and ANOVA has been applied and the results of the test are as follows
11.14.4 (a)Descriptive Statistics
N Mean Std. Deviation
Statistic Statistic Std. Error Statistic IVR_low_clothes 182 1.6978 .04281 .57757 IVR_medium_clothes 209 1.7990 .04539 .65618
IVR_high_clothes 49 1.9388 .09408 .65854
Valid N (listwise) 49
11.14.4 (b) ANOVA for IVR AND CLOTHES
Sum of Mean Squares df Square F Sig. clothes_coded Between 2.517 2 1.259 3.221 .041 Groups Within 170.755 437 .391
Groups Total 173.273 439 Above results indicate that calculated value of F-test (3.221 ) is more than F- table value (2.99). Hence it is concluded that there is significant difference in consumption of three levels of type of clothes.
344
11.14.4 CHI-SQUARE TEST IS USED TO TEST ASSOCIATION INVESTMENT AND CULTURE INDICES:
Sr no Culture Index Degree of Chi-square Chi- Result of test freedom calculated square value table value 1 PDI 2 4.84 5.99 Non Significant 2 IDV 2 5.05 5.99 Non Significant 3 MAS 2 4.98 5.99 Non Significant 4 UAI 2 1.17 5.99 Non Significant 5 LTO 2 0.76 5.99 Non Significant 6 IVR 2 2.81 5.99 Non Significant 7 MON 2 0.06 5.99 Non Significant
Validity of Null hypothesis was tested using Chi-square and ANOVA.According to the test applied for 2 degree of freedom the table value 9.49 .if the calculated value <(less than) the table value ,then Chi-Square test is accepted and if the calculated value is >(greater than) the table value ,then the chi-square test is rejected ,hence the alternative hypothesis is accepted and valid ANOVA has been performed to find the if there is a significant difference in three levels of consumers wrt. Consumption of selected commodities for all the six regions taken under the study.
345
In case of Vidharbha the summary is as follows: Culture Index which have an impact on the consumption of the Product selected products.
FROZEN FOODS IVR
FAST FOODS IDV
CLOTHES IVR
In this case the null Hypothesis states ―Cultural dimensions i.e. PDI, IDV, MAS, UAI, LTO, IVR and MON have no impact on the consumption pattern of different types of commodities ―which is rejected for the above commodities and dimensions since the calculated value is higher than the table value (as shown in the above tables).thus the alternative hypothesis is accepted and valid, which states ―Cultural dimensions i.e. PDI, IDV, MAS, UAI, LTO, IVR and MON does influence the consumption pattern of different types of commodities‖.
RESULT :NULL HYPOTHESIS IS REJECTED AND HENCE ALTERNATIVE HYPOTHESIS IS ACCEPTED AND VALID.
346
KONKAN
11.15.1 CHI-SQUARE TEST IS USED TO TEST ASSOCIATION LIQUOR CONSUMPTION AND CULTURE INDICES
Sr no Culture Index Degree of Chi-square Chi- Result of test freedom calculated square value table value 1 PDI 4 4.01 9.49 Non Significant 2 IDV 4 5.81 9.49 Non Significant 3 MAS 4 0.36 9.49 Non Significant 4 UAI 4 3.09 9.49 Non Significant 5 LTO 4 3.10 9.49 Non Significant 6 IVR 4 11.63 9.49 Significant
7 MON 4 2.92 9.49 Non Significant
From the above Table it is observed that out of seven dimensions only one is significant. Therefore there is association between Liquor and IVR dimension in Konkan region. Other dimensions has no association with Liquor . For further elaborate result descriptive and ANOVA has been applied and the results of the test are as follows
11.15.1 (a)Descriptive Statistics
N Minimum Maximum Mean Std. Deviation IVR_low_liquor 134 1.00 3.00 2.0075 .70972 IVR_medium_liquor 192 1.00 3.00 1.7760 .63646 IVR_high_liquor 99 1.00 3.00 1.8586 .67021
347
11.15.1 (b)ANOVA for IVR AND LIQUOR Sum of Mean Squares df Square F Sig. liquor Between 4.239 2 2.119 4.748 .009 Groups Within Groups 188.383 422 .446 Total 192.621 424
Above results indicate that calculated value of F-test (4.748) is more than F-table value (2.99). Hence it is concluded that there is significant difference in consumption of three levels of consumption of liquor.
11.15.2 CHI-SQUARE TEST IS USED TO TEST ASSOCIATION FROZEN FOOD CONSUMPTION AND CULTURE INDICES Sr no Culture Degree of Chi-square Chi- Result of test Index freedom calculated square value table value 1 PDI 4 1.88 9.49 Non Significant 2 IDV 4 1.99 9.49 Non Significant 3 MAS 4 6.08 9.49 Non Significant 4 UAI 4 2.12 9.49 Non Significant 5 LTO 4 4.30 9.49 Non Significant 6 IVR 4 7.81 9.49 Non Significant 7 MON 4 3.10 9.49 Non Significant
348
11.15.3 CHI-SQUARE TEST IS USED TO TEST ASSOCIATION FAST FOOD CONSUMPTION AND CULTURE INDICES
Sr no Culture Index Degree of Chi-square Chi- Result of test freedom calculated square value table value 1 PDI 4 2.45 9.49 Non Significant 2 IDV 4 1.60 9.49 Non Significant 3 MAS 4 11.67 9.49 Significant
4 UAI 4 3.69 9.49 Non Significant 5 LTO 4 0.82 9.49 Non Significant 6 IVR 4 2.22 9.49 Non Significant 7 MON 4 1.51 9.49 Non Significant
From the above Table it is observed that out of seven dimensions only one is significant. Therefore there is association between fastfoods consumption and UAI and MAS dimension in Konkan region. Other dimensions has no association with fastfoods . For further elaborate result descriptive and ANOVA has been applied and the results of the test are as follows .
11.15.3 (a)Descriptive Statistics Minimu Maximu N m m Mean Std. Deviation MAS_low_fast_food 91 1.00 3.00 1.5275 .60260 MAS_medium_fast_food 293 1.00 3.00 1.5597 .58580 MAS_high_fast_food 41 1.00 3.00 1.8780 .59980
349
11.15.3 (a) ANOVA for MAS Sum of Mean Squares df Square F Sig. Fast_foods Between 4.008 2 2.004 5.743 .003 Groups Within Groups 147.276 422 .349 Total 151.285 424
Above results indicate that calculated value of F-test (5.743) is more than F-table value (2.99). Hence it is concluded that there is significant difference in consumption of three levels of consumption of fast foods.
11.15.4 CHI-SQUARE TEST IS USED TO TEST ASSOCIATION CLOTHES AND CULTURE INDICES:
Culture Index Degree of Chi-square Chi- Result of test Sr no freedom calculated square value table value 1 PDI 4 4.53 9.49 Non Significant 2 IDV 4 2.39 9.49 Non Significant 3 MAS 4 1.89 9.49 Non Significant 4 UAI 4 1.25 9.49 Non Significant 5 LTO 4 0.75 9.49 Non Significant 6 IVR 4 5.98 9.49 Non Significant 7 MON 4 1.66 9.49 Non Significant
350
11.15.5 CHI-SQUARE TEST IS USED TO TEST ASSOCIATION INVESTMENT AND CULTURE INDICES:
Sr no Culture Index Degree of Chi-square Chi- Result of test freedom calculated square value table value 1 PDI 4 2.16 9.49 Non Significant 2 IDV 4 4.93 9.49 Non Significant 3 MAS 4 1.76 9.49 Non Significant 4 UAI 4 1.91 9.49 Non Significant 5 LTO 4 3.53 9.49 Non Significant 6 IVR 4 3.08 9.49 Non Significant 7 MON 4 2.41 9.49 Non Significant
Validity of Null hypothesis was tested using Chi-square and ANOVA.According to the test applied for 2 degree of freedom the table value 9.49 .if the calculated value <(less than) the table value ,then Chi-Square test is accepted and if the calculated value is >(greater than) the table value ,then the chi-square test is rejected ,hence the alternative hypothesis is accepted and valid. ANOVA has been performed to find the if there is a significant difference in three levels of consumers wrt. Consumption of selected commodities for all the six regions taken under the study
351
In case of Konkan the summary is as follows: Culture Index which have an impact on the consumption of the Product selected products.
FROZEN FOODS MAS
LIQUOR IVR
In this case the null Hypothesis states ―Cultural dimensions i.e. PDI, IDV, MAS, UAI, LTO, IVR and MON have no impact on the consumption pattern of different types of commodities ―which is rejected for the above commodities and dimensions since the calculated value is higher than the table value (as shown in the above tables).thus the alternative hypothesis is accepted and valid, which states ―Cultural dimensions i.e. PDI, IDV, MAS, UAI, LTO, IVR and MON does influence the consumption pattern of different types of commodities‖.
RESULT :NULL HYPOTHESIS IS REJECTED AND HENCE ALTERNATIVE HYPOTHESIS IS ACCEPTED AND VALID.
352
MARATHWADA
11.16.1 CHI-SQUARE TEST IS USED TO TEST ASSOCIATION LIQUOR CONSUMPTION AND CULTURE INDICES
Sr no Culture Index Degree of Chi-square Chi- Result of test freedom calculated square value table value 1 PDI 4 7.32 9.49 Non Significant 2 IDV 4 3.86 9.49 Non Significant 3 MAS 4 6.22 9.49 Non Significant 4 UAI 4 2.95 9.49 Non Significant 5 LTO 4 5.19 9.49 Non Significant 6 IVR 4 12.57 9.49 Significant
7 MON 4 1.42 9.49 Non Significant
From the above Table it is observed that out of seven dimensions only one is significant. Therefore there is association between liquor consumption and UAI and IVR dimension in Marathwada region. Other dimensions has no association withLiquor . For further elaborate result descriptive and ANOVA has been applied and the results of the test are as follows
11.16.1 (a)Descriptive Statistics N Mean Std. Deviation Statistic Statistic Std. Error Statistic IVR_low_liquor 113 1.7699 .06886 .73203 IVR_medium_liquor 289 1.9170 .03797 .64552 IVR_high_liquor 59 1.7458 .08913 .68464
353
11.16.1 (b) ANOVA IVR AND LIQUOR
Sum of Mean Squares df Square F Sig. Liquor Between 2.624 2 1.312 2.900 .056 Groups
Within 207.211 458 .452
Groups Total 209.835 460
Above results indicate that calculated value of F-test (2.900) is less than F-table value (2.99). Hence it is concluded that there is no significant difference in consumption of three levels of consumption of liquor
11.16.2 CHI-SQUARE TEST IS USED TO TEST ASSOCIATION FROZEN FOOD CONSUMPTION AND CULTURE INDICES
Sr no Culture Index Degree of Chi-square Chi- Result of freedom calculated square test value table value 1 PDI 4 10.42 9.49 Significant
2 IDV 4 1.58 9.49 Non Significant 3 MAS 4 0.49 9.49 Non Significant 4 UAI 4 5.47 9.49 Non Significant 5 LTO 4 1.59 9.49 Non Significant 6 IVR 4 8.00 9.49 Non Significant 7 MON 4 6.47 9.49 Non Significant
From the above Table it is observed that out of seven dimensions only one is significant. Therefore there is association between frozen foods consumption and PDI dimension in Marathwada region. Other dimensions has no association
354 with frozenfoods . For further elaborate result descriptive and ANOVA has been applied and the results of the test are as follows
11.16.2 (a) Descriptive Statistics
N Mean Std. Deviation
Statistic Statistic Std. Error Statistic PDI_low_frozen_food 2 1.0000 .00000 .00000
PDI_medium_frozen_food 375 1.6800 .03415 .66139
PDI_high_frozen_food 84 1.5357 .05730 .52518
11.16.2 (b)FOR PDI and FROZEN FOODS
Sum of Mean Squares df Square F Sig. Frozen_foods Between 2.279 2 1.140 2.799 .062 Groups
Within Groups 186.493 458 .407 Total 188.772 460
Above results indicate that calculated value of F-test (2.799) is less than F-table value (2.99). Hence it is concluded that there is no significant difference in consumption of three levels of consumption of liquor
355
11.16.3 CHI-SQUARE TEST IS USED TO TEST ASSOCIATION FAST FOOD CONSUMPTION AND CULTURE INDICES
Culture Index Degree of Chi-square Chi- Result of test freedom calculated square Sr no value table value 1 PDI 4 9.75 9.49 Significant
2 IDV 4 3.30 9.49 Non Significant 3 MAS 4 0.28 9.49 Non Significant 4 UAI 4 4.32 9.49 Non Significant 5 LTO 4 3.41 9.49 Non Significant 6 IVR 4 6.86 9.49 Non Significant 7 MON 4 7.38 9.49 Non Significant
From the above Table it is observed that out of seven dimensions only one is significant. Therefore there is association between fast foods consumption and PDI dimension in Marathwada region. Other dimensions has no association with fast foods . For further elaborate result descriptive and ANOVA has been applied and the results of the test are as follows 11.16.3 (a)ANOVA FOR PDI
Sum of Mean Squares df Square F Sig. Fast_foods Between 1.288 2 .644 1.792 .168 Groups
Within 164.577 458 .359
Groups Total 165.866 460
356
Above results indicate that calculated value of F-test (1.792 ) is less than F-table value (2.99). Hence it is concluded that there is no significant difference in consumption of three levels of consumption of fast foods.
11.16.4 CHI-SQUARE TEST IS USED TO TEST ASSOCIATION CLOTHES AND CULTURE INDICES:
Sr no Culture Index Degree of Chi-square Chi- Result of test freedom calculated square value table value 1 PDI 4 4.34 9.49 Non Significant 2 IDV 4 0.67 9.49 Non Significant 3 MAS 4 1.44 9.49 Non Significant 4 UAI 4 1.57 9.49 Non Significant 5 LTO 4 5.40 9.49 Non Significant 6 IVR 4 6.75 9.49 Non Significant 7 MON 4 2.14 9.49 Non Significant
From the above Chi square result application test result it is clear that from seven indexes none of the indexes is having impact on the consumption of clothes in Marathwada Region.
357
11.16.5 CHI-SQUARE TEST IS USED TO TEST ASSOCIATION INVESTMENT AND CULTURE INDICES:
Sr no Culture Index Degree of Chi-square Chi- Result of test freedom calculated square value table value 1 PDI 6 2.61 12.6 Non Significant 2 IDV 6 4.04 12.6 Non Significant 3 MAS 6 2.49 12.6 Non Significant 4 UAI 6 2.09 12.6 Non Significant 5 LTO 6 9.55 12.6 Non Significant 6 IVR 6 5.38 12.6 Non Significant 7 MON 6 3.96 12.6 Non Significant
From the above Chi square result application test result it is clear that from seven indexes none of the indexes is having impact on the consumption of investment in Marathwada Region.
Validity of Null hypothesis was tested using Chi-square and ANOVA.According to the test applied for 2 degree of freedom the table value 9.49 .if the calculated value <(less than) the table value ,then Chi-Square test is accepted and if the calculated value is >(greater than) the table value ,then the chi-square test is rejected ,hence the alternative hypothesis is accepted and valid. ANOVA has been performed to find the if there is a significant difference in three levels of consumers wrt. Consumption of selected commodities for all the six regions taken under the study
358
In case of Marathwada the summary is as follows: Culture Index which have an impact on the consumption of the Product selected products.
FAST FOODS PDI
LIQUOR IVR FROZEN FOODS PDI
In this case the null Hypothesis states ―Cultural dimensions i.e. PDI, IDV, MAS, UAI, LTO, IVR and MON have no impact on the consumption pattern of different types of commodities ―which is rejected for the above commodities and dimensions since the calculated value is higher than the table value (as shown in the above tables).thus the alternative hypothesis is accepted and valid, which states ―Cultural dimensions i.e. PDI, IDV, MAS, UAI, LTO, IVR and MON does influence the consumption pattern of different types of commodities‖.
RESULT :NULL HYPOTHESIS IS REJECTED AND HENCE ALTERNATIVE HYPOTHESIS IS ACCEPTED AND VALID.
359
11.17 NORTH MAHARASHTRA
11.17.1 CHI-SQUARE TEST IS USED TO TEST ASSOCIATION LIQUOR CONSUMPTION AND CULTURE INDICES
Sr no Culture Index Degree of Chi-square Chi- Result of test freedom calculated square value table value 1 PDI 4 3.34 9.49 Non Significant 2 IDV 4 1.36 9.49 Non Significant 3 MAS 4 2.33 9.49 Non Significant 4 UAI 4 1.42 9.49 Non Significant 5 LTO 4 7.83 9.49 Non Significant 6 IVR 4 5.94 9.49 Non Significant 7 MON 4 2.74 9.49 Non Significant
From the above Chi square result application test result it is clear that from seven indexes none of the indexes is having impact on the consumption ofliquor in North Maharashtra Region
360
11.17.2 CHI-SQUARE TEST IS USED TO TEST ASSOCIATION FROZEN FOOD CONSUMPTION AND CULTURE INDICES
Sr no Culture Index Degree of Chi-square Chi- Result of test freedom calculated square value table value 1 PDI 4 6.74 9.49 Non Significant 2 IDV 4 5.78 9.49 Non Significant 3 MAS 4 1.24 9.49 Non Significant 4 UAI 4 2.13 9.49 Non Significant 5 LTO 4 4.81 9.49 Non Significant 6 IVR 4 3.39 9.49 Non Significant 7 MON 4 7.68 9.49 Non Significant
From the above Chi square result application test result it is clear that from seven indexes none of the indexes is having impact on the consumption of Frozen Foods in North Maharashtra Region
361
11.17.3 CHI-SQUARE TEST IS USED TO TEST ASSOCIATION FAST FOOD CONSUMPTION AND CULTURE INDICES
Sr no Culture Index Degree of Chi-square Chi- Result of test freedom calculated square value table value 1 PDI 4 2.14 9.49 Non Significant 2 IDV 4 6.11 9.49 Non Significant 3 MAS 4 5.11 9.49 Non Significant 4 UAI 4 2.10 9.49 Non Significant 5 LTO 4 1.61 9.49 Non Significant 6 IVR 4 1.11 9.49 Non Significant 7 MON 4 7.09 9.49 Non Significant
From the above Chi square result application test result it is clear that from seven indexes none of the indexes is having impact on the consumption of Frozen Foods in North Maharashtra Region
362
11.17.4 CHI-SQUARE TEST TO TEST ASSOCIATION CLOTHES AND CULTURE
Sr no Culture Index Degree of Chi-square Chi- Result of test freedom calculated square value table value 1 PDI 4 4.68 9.49 Non Significant 2 IDV 4 1.75 9.49 Non Significant 3 MAS 4 2.83 9.49 Non Significant 4 UAI 4 2.84 9.49 Non Significant 5 LTO 4 11.83 9.49 Significant
6 IVR 4 0.85 9.49 Non Significant 7 MON 4 1.02 9.49 Non Significant
From the above Table it is observed that out of seven dimensions only one is significant. Therefore there is association between clothes and LTO in North Maharashtra region. Other dimensions has no association with clothes . For further elaborate result descriptive and ANOVA has been applied and the results of the test are as follows
363
11.17.4 (a)Descriptive Statistics
N Mean Std. Deviation
Statistic Statistic Std. Error Statistic LTO_low_investment 106 2.1038 .09566 .98493
LTO_medium_investment 327 2.2018 .05944 1.07492
LTO_high_investment 62 1.7581 .11192 .88123
11.17.4 (b)ANOVA for LTO Sum of Mean Squares df Square F Sig. investment Between 10.326 2 5.163 4.830 .008 Groups Within Groups 525.908 492 1.069 Total 536.234 494
Validity of Null hypothesis was tested using Chi-square and ANOVA.According to the test applied for 2 degree of freedom the table value 9.49 .if the calculated value <(less than) the table value,then Chi-Square test is accepted and if the calculated value is >(greater than) the table value ,then the chi-square test is rejected ,hence the alternative hypothesis is accepted and valid. ANOVA has been performed to find the if there is a significant difference in three levels of consumers wrt. Consumption of selected commodities for all the six regions taken under the study
364
In case of North Maharashtra the summary is as follows: Culture Index which have an impact on the consumption of the Product selected products.
CLOTHES LTO
In this case the null Hypothesis states ―Cultural dimensions i.e. PDI, IDV, MAS, UAI, LTO, IVR and MON have no impact on the consumption pattern of different types of commodities ―which is rejected for the above commodities and dimensions since the calculated value is higher than the table value (as shown in the above tables).thus the alternative hypothesis is accepted and valid, which states ―Cultural dimensions i.e. PDI, IDV, MAS, UAI, LTO, IVR and MON does influence the consumption pattern of different types of commodities‖.
RESULT :NULL HYPOTHESIS IS REJECTED AND HENCE ALTERNATIVE HYPOTHESIS IS ACCEPTED AND VALID.
365
11.18 WEST MAHARASHTRA
11.18.1 CHI-SQUARE TEST IS USED TO TEST ASSOCIATION LIQUOR CONSUMPTION AND CULTURE INDICES
Sr no Culture Index Degree of Chi-square Chi- Result of test freedom calculated square value table value 1 PDI 4 2.10 9.49 Non Significant 2 IDV 4 0.35 9.49 Non Significant 3 MAS 4 3.06 9.49 Non Significant 4 UAI 4 3.34 9.49 Non Significant 5 LTO 4 3.82 9.49 Non Significant 6 IVR 4 2.64 9.49 Non Significant 7 MON 4 4.61 9.49 Non Significant
From the above Table it is observed that out of seven dimensions none of the dimension is significant. Therefore there no association between dimension consumption in West Maharashtra region.
366
11.18.3 CHI-SQUARE TEST IS USED TO TEST ASSOCIATION FROZEN FOOD CONSUMPTION AND CULTURE INDICES SR CULTURE DEGREE CHI-SQUARE CHI- RESULT OF NO INDEX OF CALCULATED SQUARE TEST FREEDOM VALUE TABLE VALUE 1 PDI 4 2.67 9.49 Non Significant 2 IDV 4 3.49 9.49 Non Significant 3 MAS 4 4.83 9.49 Non Significant 4 UAI 4 4.52 9.49 Non Significant 5 LTO 4 11.52 9.49 Significant
6 IVR 4 1.23 9.49 Non Significant 7 MON 4 2.84 9.49 Non Significant
From the above Table it is observed that out of seven dimensions only one is significant. Therefore there is association between liquor consumption and UAI and LTO dimension in West Maharashta region. Other dimensions has no association with Frozen foods . For further elaborate result descriptive and ANOVA has been applied and the results of the test are as follows
11.18.3 (a)Descriptive Statistics
N Mean Std. Deviation Statistic Statistic Std. Error Statistic LTO_low_frozen_food 91 1.8132 .07642 .72896 LTO_medium_frozen_food 287 1.8885 .03862 .65428 LTO_high_frozen_food 122 1.9918 .05397 .59607 Valid N (listwise) 91
367
11.18.3 (a)ANOVA for LTO AND FROZENFOODS Sum of Mean Squares df Square F Sig. Frozen_foods Between 1.752 2 .876 2.042 .131 Groups Within 213.248 497 .429
Groups Total 215.000 499
Above results indicate that calculated value of F-test (2.042 ) is less than F-table value (2.99). Hence it is concluded that there is no significant difference in consumption of three levels of consumption of frozenfoods .
11.18.4 CHI-SQUARE TEST IS USED TO TEST ASSOCIATION FAST FOOD CONSUMPTION AND CULTURE INDICES
Sr no Culture Index Degree of Chi-square Chi- Result of test freedom calculated square value table value 1 PDI 4 3.38 9.49 Non Significant 2 IDV 4 1.25 9.49 Non Significant 3 MAS 4 9.72 9.49 Significant
4 UAI 4 1.85 9.49 Non Significant 5 LTO 4 10.63 9.49 Significant
6 IVR 4 4.62 9.49 Non Significant 7 MON 4 4.69 9.49 Non Significant From the above Table it is observed that out of seven dimensions MAS and LTO is significant. Therefore there is association between fast food consumption and
368
MAS and LTO dimension in West Maharashtra region. Other dimensions has no association with fast food . For further elaborate result descriptive and
11.18.4 (a)Descriptive Statistics N Mean Std. Deviation Statistic Statistic Std. Error Statistic MAS_low_fast_food 113 1.8850 .03500 .37206 MAS_medium_fast_food 333 1.8168 .02754 .50248 MAS_high_fast_food 54 1.8704 .05938 .43638 Valid N (listwise) 54
11.18.4 (b)ANOVA for MAS AND FASTFOODS Sum of Mean Squares df Square F Sig. Fast_foods Between .455 2 .228 1.034 .356 Groups Within Groups 109.423 497 .220 Total 109.878 499 Above results indicate that calculated value of F-test (1.034 ) is less than F-table value (2.99). Hence it is concluded that there is no significant difference in consumption of three levels of consumption of fast foods 11.18.4 (c)Descriptive Statistics
N Mean Std. Deviation
Statistic Statistic Std. Error Statistic LTO_low_fast_food 91 1.8022 .05463 .52111
LTO_medium_fast_food 287 1.8258 .02905 .49221
LTO_high_fast_food 122 1.8934 .03252 .35923
369
11.18.4 (b)ANOVA for MAS AND FASTFOODS Sum of Mean Squares df Square F Sig. Fast_foods Between .455 2 .228 1.034 .356 Groups Within Groups 109.423 497 .220 Total 109.878 499 Above results indicate that calculated value of F-test (1.034 ) is less than F-table value (2.99). Hence it is concluded that there is no significant difference in consumption of three levels of consumption of fast foods 11.18.4 (c)Descriptive Statistics
N Mean Std. Deviation
Statistic Statistic Std. Error Statistic LTO_low_fast_food 91 1.8022 .05463 .52111
LTO_medium_fast_food 287 1.8258 .02905 .49221
LTO_high_fast_food 122 1.8934 .03252 .35923
Valid N (listwise) 91
11.18.4 (d) ANOVA for LTO Sum of Mean Squares df Square F Sig. Fast_foods Between .534 2 .267 1.215 .298 Groups Within Groups 109.344 497 .220 Total 109.878 499
370
Above results indicate that calculated value of F-test (1.215 ) is less than F-table value (2.99). Hence it is concluded that there is no significant difference in consumption of three levels of consumption of fast foods
11.18.5 CHI-SQUARE TEST IS USED TO TEST ASSOCIATION CLOTHES AND CULTURE INDICES:
Sr no Culture Index Degree of Chi-square Chi- Result of test freedom calculated square value table value 1 PDI 4 0.51 9.49 Non Significant 2 IDV 4 9.57 9.49 Significant 3 MAS 4 3.83 9.49 Non Significant 4 UAI 4 5.57 9.49 Non Significant 5 LTO 4 3.59 9.49 Non Significant 6 IVR 4 4.00 9.49 Non Significant 7 MON 4 2.93 9.49 Non Significant
From the above Table it is observed that out of seven dimensions IDV is significant. Therefore there is association between clothes and IDV dimension in West Maharashtra region. Other dimensions has no association with clothes For further elaborate result descriptive and and ANOVA has been applied
371
11.18.5 (a) Descriptive Statistics
N Mean Std. Deviation
Statistic Statistic Std. Error Statistic IDV_low_clothes 63 1.9048 .07053 .55979 IDV_medium_clothes 323 1.9319 .02782 .50000
IDV_high_clothes 114 2.0614 .03996 .42666
Valid N (listwise) 63
11.18.5 (b) ANOVA for IDV Sum of Mean Squares df Square F Sig. clothes Between 1.618 2 .809 3.336 .036 Groups Within Groups 120.500 497 .242 Total 122.118 499
Above results indicate that calculated value of F-test (3.336) is less than F-table value (2.99). Hence it is concluded that there is significant difference in consumption of three levels for type of clothes .
372
11.18.6 CHI-SQUARE TEST IS USED TO TEST ASSOCIATION INVESTMENT AND CULTURE INDICES:
Sr no Culture Index Degree of Chi-square Chi- Result of test freedom calculated square value table value 1 PDI 2 2.38 5.99 Non Significant 2 IDV 2 0.59 5.99 Non Significant 3 MAS 2 2.03 5.99 Non Significant 4 UAI 2 2.12 5.99 Non Significant 5 LTO 2 9.42 5.99 Significant
6 IVR 2 1.46 5.99 Non Significant 7 MON 2 0.56 5.99 Non Significant
From the above Table it is observed that out of seven dimensions LTO is significant. Therefore there is association between type of investment and LTO dimension in West Maharashtra region. Other dimensions has no association with type of investment. For further elaborate result descriptive and and ANOVA has been applied 11.18.6 (a)Descriptive Statistics
N Mean Std. Deviation
Statistic Statistic Std. Error Statistic LTO_low_investment 91 1.5165 .05268 .50250
LTO_medium_investment 287 1.6341 .02848 .48251
LTO_high_investment 122 1.7213 .04076 .45020
Valid N (listwise) 91
373
11.18.6 (b)ANOVA for LTO Sum of Mean Squares df Square F Sig. investment Between 2.187 2 1.093 4.774 .009 Groups Within Groups 113.835 497 .229 Total 116.022 499
Above results indicate that calculated value of F-test (4.774 ) is less than F-table value (2.99). Hence it is concluded that there is significant difference in consumption of three levels in type of investment .
Validity of Null hypothesis was tested using Chi-square and ANOVA.According to the test applied for 2 degree of freedom the table value 9.49 .if the calculated value <(less than) the table value ,then Chi-Square test is accepted and if the calculated value is >(greater than) the table value ,then the chi-square test is rejected ,hence the alternative hypothesis is accepted and valid
In case of West Maharashtra the summary is as follows:
Culture Index which have an impact on the consumption of the selected Product products.
FROZEN FOODS LTO
FAST FOODS MAS,LTO
CLOTHES IDV
INVESTEMENT LTO
374
In this case the null Hypothesis states ―Cultural dimensions i.e. PDI, IDV, MAS, UAI, LTO, IVR and MON have no impact on the consumption pattern of different types of commodities ―which is rejected for the above commodities and dimensions since the calculated value is higher than the table value (as shown in the above tables).thus the alternative hypothesis is accepted and valid, which states ―Cultural dimensions i.e. PDI, IDV, MAS, UAI, LTO, IVR and MON does influence the consumption pattern of different types of commodities‖.
Result :
From the above it is clear that different dimension have different impact on product consumption in selected regions of Maharashtra. In this objective for different regions the Null hypothesis state ―Cultural dimensions i.e. PDI, IDV, MAS, UAI, LTO, IVR and MON have no impact on the consumption pattern of different types of commodities‖. Hypothesis is validated using test and have been studied and explained in the previous pages that for selected commodities for each region. This means that the cultural dimensions have an impact on the consumption of selected commodities.
ALTERNATIVE HYPOTHESIS IS VALID AND ACCEPTED AND HENCE NULL HYPOTHESIS IS REJECTED.
375
HYPOTHESIS 4
Null Hypothesis HO4 : There exist no relationship between cultural demographic (age) and consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc across 6 Regions
Alternative Hypothesis 14 :There exist a relationship between cultural demographic (age) and consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc across 6 Regions 11.19 NORTH MAHARASHTRA 11.19.1 Chi-square test is used to test association between AGE and Consumption factors: Sr no Consumption Degree of Chi-square Chi- Result of test factor freedom calculated square value table value 1 Liquor 4 90.36 9.49 Significant 2 Frozen food 4 53.88 9.49 Significant 3 Fast food 4 17.23 9.49 Significant 4 Clothes 4 68.30 9.49 Significant 5 Investment 4 358.52 9.49 Significant
Validity of Null hypothesis was tested using Chi-square.According to the test applied for 4 degree of freedom the table value 9.49 .If the calculated value <(less than) the table value, then Chi-Square test is accepted and if the calculated value is >(greater than) the table value ,then the chi-square test is rejected ,hence the alternative hypothesis is accepted and valid
376
In this case the null Hypothesis states ―There exist no relationship between cultural demographic (age) and consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc across Regions ―which is rejected for the above since the calculated value is higher than the table value (as shown in the above tables).Thus the alternative hypothesis is accepted and valid, which states ―There exist a relationship between cultural demographic (age) and consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc across 6 Regions
NAGPUR
11.19.2 Chi-square test is used to test association between AGE AND Consumption factors
Sr no Consumption Degree of Chi-square Chi- Result of test factor freedom calculated square value table value 1 Liquor 4 82.84 9.49 Significant 2 Frozen food 4 105.36 9.49 Significant 3 Fast food 4 114.74 9.49 Significant 4 Clothes 4 118.62 9.49 Significant 5 Investment 2 178.74 5.99 Significant
Validity of Null hypothesis was tested using Chi-square.According to the test applied for 4 and 2 as degree of freedom respectively the table value 9.49 .if the calculated value <(less than) the table value, then Chi-Square test is accepted and if the calculated value is >(greater than) the table value ,then the chi-square test is rejected ,hence the alternative hypothesis is accepted and valid
In this case the null Hypothesis states ―There exist no relationship between cultural demographic (age) and consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc in Nagpur Region ―which is rejected for the
377 above since the calculated value is higher than the table value (as shown in the above tables).Thus the alternative hypothesis is accepted and valid, which states ―There exist a relationship between cultural demographic (age) and consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc across 6 Regions
VIDARBHA 11.19.3 Chi-square test is used to test association between AGE AND Consumption factors: Sr no Consumption Degree of Chi-square Chi- Result of test factor freedom calculated square value table value 1 Liquor 4 75.33 9.49 Significant 2 Frozen food 4 98.60 9.49 Significant 3 Fast food 4 96.96 9.49 Significant 4 Clothes 4 74.47 9.49 Significant 5 Investment 2 161.60 5.99 Significant
Validity of Null hypothesis was tested using Chi-square.According to the test applied for 4 degree of freedom the table value 9.49 .If the calculated value <(less than) the table value, then Chi-Square test is accepted and if the calculated value is >(greater than) the table value ,then the chi-square test is rejected ,hence the alternative hypothesis is accepted and valid.
In this case the null Hypothesis states ―There exist no relationship between cultural demographic (age) and consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc across Regions ―which is rejected for the above since the calculated value is higher than the table value (as shown in the above tables).Thus the alternative hypothesis is accepted and valid, which states ―There exist a relationship between cultural demographic (age) and consumption
378 pattern of selected commodities (liquor, frozen food, clothes, .) etc across 6 Regions
KONKAN
11.19.4 Chi-square test is used to test association between AGE AND Consumption factors: Sr no Consumption Degree of Chi-square Chi- Result of test factor freedom calculated square value table value 1 Liquor 4 236.99 9.49 Significant 2 Frozen food 4 75.10 9.49 Significant 3 Fast food 4 40.10 9.49 Significant 4 Clothes 4 59.79 9.49 Significant 5 Investment 4 289.92 9.49 Significant
Validity of Null hypothesis was tested using Chi-square.According to the test applied for 4 degree of freedom the table value 9.49 .If the calculated value <(less than) the table value, then Chi-Square test is accepted and if the calculated value is >(greater than) the table value ,then the chi-square test is rejected ,hence the alternative hypothesis is accepted and valid
In this case the null Hypothesis states ―There exist no relationship between cultural demographic (age) and consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc across Regions ―which is rejected for the above since the calculated value is higher than the table value (as shown in the above tables).Thus the alternative hypothesis is accepted and valid, which states ―There exist a relationship between cultural demographic (age) and consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc across 6 Regions
379
11.19.5 MARATHWADA
11.19.5 Chi-square test is used to test association between AGE AND Consumption factors:
Sr no Consumption Degree of Chi-square Chi- Result of test factor freedom calculated square value table value 1 Liquor 4 117.54 9.49 Significant 2 Frozen food 4 42.31 9.49 Significant 3 Fast food 4 62.23 9.49 Significant 4 Clothes 4 33.98 9.49 Significant 5 Investment 4 75.61 9.49 Significant
Validity of Null hypothesis was tested using Chi-square.According to the test applied for 4 degree of freedom the table value 9.49 .If the calculated value <(less than) the table value, then Chi-Square test is accepted and if the calculated value is >(greater than) the table value ,then the chi-square test is rejected ,hence the alternative hypothesis is accepted and valid
In this case the null Hypothesis states ―There exist no relationship between cultural demographic (age) and consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc across Regions ―which is rejected for the above since the calculated value is higher than the table value (as shown in the above tables).Thus the alternative hypothesis is accepted and valid, which states ―There exist a relationship between cultural demographic (age) and consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc across 6 Regions
380
11.19.6 WEST MAHARASHTRA
11.19.6 Chi-square test is used to test association between AGE AND Consumption factors:
Sr no Consumption Degree Chi-square Chi- Result of test factor of calculated square freedom value table value 1 Liquor 4 129.08 9.49 Significant 2 Frozen food 4 123.92 9.49 Significant 3 Fast food 4 106.55 9.49 Significant 4 Clothes 4 82.73 9.49 Significant 5 Investment 2 187.11 5.99 Significant
Validity of Null hypothesis was tested using Chi-square.According to the test applied for 4 degree of freedom the table value 9.49 .If the calculated value <(less than) the table value, then Chi-Square test is accepted and if the calculated value is >(greater than) the table value ,then the chi-square test is rejected ,hence the alternative hypothesis is accepted and valid
In this case the null Hypothesis states ―There exist no relationship between cultural demographic (age) and consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc across Regions ―which is rejected for the above since the calculated value is higher than the table value (as shown in the above tables).Thus the alternative hypothesis is accepted and valid, which states ―There exist a relationship between cultural demographic (age) and consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc across 6 Regions.
381
Result:
From the above it is clear that cultural demographic (age) has an impact on consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc across 6 Regions . In this objective for different regions the Null hypothesis state ―There exist no relationship between cultural demographic (age) and consumption pattern of selected commodities (liquor, frozen food, clothes, ) etc across 6 Regions .Hypothesis is validated using test and have been studied and explained in the previous pages.This means that the cultural demographic (age) have an impact on the consumption of selected commodities.
ALTERNATIVE HYPOTHESIS IS VALID AND ACCEPTED AND HENCE NULL HYPOTHESIS IS REJECTED.
382
HYPOTHESIS 5
Null Hypothesis HO5 : There exist no relationship between cultural demographic (education) and consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc across 6 Regions
Alternative Hypothesis 15 :There exist a relationship between cultural demographic (education) and consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc across 6 Regions
MARATHWADA
11.20.1 Chi-square test is used to test association between EDUCATION AND Consumption factors:
Sr no Consumption Degree of Chi-square Chi- Result of test factor freedom calculated square value table value 1 Liquor 6 58.35 12.6 Significant 2 Frozen food 6 44.55 12.6 Significant 3 Fast food 6 44.71 12.6 Significant 4 Clothes 6 46.32 12.6 Significant 5 Investment 9 60.82 16.9 Significant
Validity of Null hypothesis was tested using Chi-square.According to the test applied for 4 degree of freedom the table value 12.6 .If the calculated value
383
<(less than) the table value, then Chi-Square test is accepted and if the calculated value is >(greater than) the table value ,then the chi-square test is rejected ,hence the alternative hypothesis is accepted and valid
In this case the null Hypothesis states ―There exist no relationship between cultural demographic (education) and consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc across Regions ―which is rejected for the above since the calculated value is higher than the table value (as shown in the above tables).Thus the alternative hypothesis is accepted and valid, which states ―There exist a relationship between cultural demographic (education) and consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc across 6 Regions.
NORTH MAHARASHTRA
11.20.2 Chi-square test is used to test association between EDUCATION AND Consumption factors: Sr no Consumption Degree of Chi-square Chi- Result of test factor freedom calculated square value table value 1 Liquor 4 60.77 9.49 Significant 2 Frozen food 4 54.32 9.49 Significant 3 Fast food 4 85.17 9.49 Significant 4 Clothes 4 28.54 9.49 Significant 5 Investment 4 160.93 9.49 Significant
Validity of Null hypothesis was tested using Chi-square.According to the test applied for 4 degree of freedom the table value12.6 .If the calculated value <(less than) the table value, then Chi-Square test is accepted and if the calculated value is >(greater than) the table value ,then the chi-square test is rejected ,hence the alternative hypothesis is accepted and valid
384
In this case the null Hypothesis states ―There exist no relationship between cultural demographic (education) and consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc across Regions ―which is rejected for the above since the calculated value is higher than the table value (as shown in the above tables).Thus the alternative hypothesis is accepted and valid, which states ―There exist a relationship between cultural demographic (education) and consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc across 6 Regions.
WEST MAHARASHTRA
11.20.3 Chi-square test is used to test association between EDUCATION AND Consumption factors: Sr no Consumption Degree of Chi-square Chi- Result of test factor freedom calculated square value table value 1 Liquor 6 92.50 12.6 Significant 2 Frozen food 6 82.40 12.6 Significant 3 Fast food 6 187.66 12.6 Significant 4 Clothes 6 73.80 12.6 Significant 5 Investment 3 87.24 7.81 Significant
Validity of Null hypothesis was tested using Chi-square.According to the test applied for 4 degree of freedom the table value 12.6 .If the calculated value <(less than) the table value, then Chi-Square test is accepted and if the calculated value is >(greater than) the table value ,then the chi-square test is rejected ,hence the alternative hypothesis is accepted and valid
In this case the null Hypothesis states ―There exist no relationship between cultural demographic (education) and consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc across Regions ―which is rejected
385 for the above since the calculated value is higher than the table value (as shown in the above tables).Thus the alternative hypothesis is accepted and valid, which states ―There exist a relationship between cultural demographic (education) and consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc across 6 Regions.
NAGPUR
11.20.4 Chi-square test is used to test association between EDUCATION AND Consumption factors:
Sr no Consumption Degree of Chi-square Chi- Result of test factor freedom calculated square value table value 1 Liquor 6 136.62 12.6 Significant 2 Frozen food 6 169.73 12.6 Significant 3 Fast food 6 355.76 12.6 Significant 4 Clothes 6 103.44 12.6 Significant 5 Investment 3 263.58 6.25 Significant
Validity of Null hypothesis was tested using Chi-square.According to the test applied for 4 degree of freedom the table value 12.6 and for 3 degree of freedom the table value 6.5 .If the calculated value <(less than) the table value, then Chi- Square test is accepted and if the calculated value is >(greater than) the table value ,then the chi-square test is rejected ,hence the alternative hypothesis is accepted and valid
In this case the null Hypothesis states ―There exist no relationship between cultural demographic (education) and consumption pattern of selected commodities (liquor, frozen food, clothes,) etc across Regions ―which is rejected for the above since the calculated value is higher than the table value (as shown
386 in the above tables).Thus the alternative hypothesis is accepted and valid, which states ―There exist a relationship between cultural demographic (education) and consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc across 6 Regions.
11.20.5 VIDARBHA
Chi-square test is used to test association between EDUCATION AND Consumption factors:
Sr no Consumption Degree of Chi-square Chi- Result of test factor free6dom calculated square value table value 1 Liquor 6 147.29 12.6 Significant 2 Frozen food 6 179.98 12.6 Significant 3 Fast food 6 324.62 12.6 Significant 4 Clothes 6 82.83 12.6 Significant 5 Investment 3 253.14 7.81 Significant
Validity of Null hypothesis was tested using Chi-square.According to the test applied for 4 degree of freedom the table value 12.6 .If the calculated value <(less than) the table value, then Chi-Square test is accepted and if the calculated value is >(greater than) the table value ,then the chi-square test is rejected ,hence the alternative hypothesis is accepted and valid
In this case the null Hypothesis states ―There exist no relationship between cultural demographic (education) and consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc across Regions ―which is rejected for the above since the calculated value is higher than the table value (as shown in the above tables).Thus the alternative hypothesis is accepted and valid, which states ―There exist a relationship between cultural demographic (education) and
387 consumption pattern of selected commodities (liquor, frozen food, clothes) etc across 6 Regions.
11.20.6 KONKAN
Chi-square test is used to test association between EDUCATION AND Consumption factors: Sr no Consumption Degree of Chi-square Chi- Result of test factor freedom calculated square value table value 1 Liquor 6 207.16 12.60 Significant 2 Frozen food 6 46.25 12.60 Significant 3 Fast food 6 42.59 12.60 Significant 4 Clothes 6 123.56 12.60 Significant 5 Investment 6 39.23 12.60 Significant
Validity of Null hypothesis was tested using Chi-square.According to the test applied for 4 degree of freedom the table value 12.6 .If the calculated value <(less than) the table value, then Chi-Square test is accepted and if the calculated value is >(greater than) the table value ,then the chi-square test is rejected ,hence the alternative hypothesis is accepted and valid
In this case the null Hypothesis states ―There exist no relationship between cultural demographic (education) and consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc across Regions ―which is rejected for the above since the calculated value is higher than the table value (as shown in the above tables).Thus the alternative hypothesis is accepted and valid, which states ―There exist a relationship between cultural demographic ((education) and consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc across 6 Regions.
388
Result:
From the above it is clear that cultural demographic (education) has an impact on consumption pattern of selected commodities (liquor, frozen food, clothes ) etc across 6 Regions . In this objective for different regions the Null hypothesis state ―There exist no relationship between cultural demographic(education) and consumption pattern of selected commodities (liquor, frozen food, clothes, ) etc across 6 Regions .Hypothesis is validated using test and have been studied and explained in the previous pages. This means that the cultural demographic (education) have an impact on the consumption of selected commodities.
ALTERNATIVE HYPOTHESIS IS VALID AND ACCEPTED AND HENCE NULL HYPOTHESIS IS REJECTED.
389
HYPOTHESIS 6
Null Hypothesis HO6 : There exist no relationship between cultural demographic (job profile) and consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc across 6 Regions
Alternative Hypothesis 16 :There exist a relationship between cultural demographic (job profile) and consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc across 6 Regions
Marathwada 11.21.1 Chi-square test is used to test association between JOB PROFILE AND Consumption factors: Sr no Consumption Degree of Chi-square Chi- Result of test factor freedom calculated square value table value 1 Liquor 6 23.43 12.6 Significant 2 Frozen food 6 51.65 12.6 Significant 3 Fast food 6 47.59 12.6 Significant 4 Clothes 6 96.60 12.6 Significant 5 Investment 9 79.22 16.9 Significant
Validity of Null hypothesis was tested using Chi-square.According to the test applied for 4 degree of freedom the table value 9.49 .If the calculated value
390
<(less than) the table value, then Chi-Square test is accepted and if the calculated value is >(greater than) the table value ,then the chi-square test is rejected ,hence the alternative hypothesis is accepted and valid
In this case the null Hypothesis states ―There exist no relationship between cultural demographic (job profile) and consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc across Regions ―which is rejected for the above since the calculated value is higher than the table value (as shown in the above tables).Thus the alternative hypothesis is accepted and valid, which states ―There exist a relationship between cultural demographic (job profile) and consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc across 6 Regions.
NORTH MAHARASHTRA
11.21.2 Chi-square test is used to test association between JOB PROFILE AND Consumption factors: Sr no Consumption Degree Chi-square Chi- Result of test factor of calculated square freedom value table value 1 Liquor 4 71.69 9.49 Significant 2 Frozen food 4 39.46 9.49 Significant 3 Fast food 4 31.59 9.49 Significant 4 Clothes 4 42.43 9.49 Significant 5 Investment 4 110.31 9.49 Significant
Validity of Null hypothesis was tested using Chi-square.According to the test applied for 4 degree of freedom the table value 9.49 .If the calculated value <(less than) the table value, then Chi-Square test is accepted and if the calculated value is >(greater than) the table value ,then the chi-square test is rejected ,hence the alternative hypothesis is accepted and valid
391
In this case the null Hypothesis states ―There exist no relationship between cultural demographic (job profile) and consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc across Regions ―which is rejected for the above since the calculated value is higher than the table value (as shown in the above tables).Thus the alternative hypothesis is accepted and valid, which states ―There exist a relationship between cultural demographic (job profile) and consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc across 6 Regions.
WEST MAHARASHTRA
11.21.3 Chi-square test is used to test association between JOB PROFILE AND Consumption factors: Sr no Consumption Degree of Chi-square Chi- Result of test factor freedom calculated square value table value 1 Liquor 6 94.39 12.6 Significant 2 Frozen food 6 241.64 12.6 Significant 3 Fast food 6 476.99 12.6 Significant 4 Clothes 6 136.74 12.6 Significant 5 Investment 3 258.24 7.81 Significant
Validity of Null hypothesis was tested using Chi-square.According to the test applied for 4 degree of freedom the table value 9.49 .If the calculated value <(less than) the table value, then Chi-Square test is accepted and if the calculated value is >(greater than) the table value ,then the chi-square test is rejected ,hence the alternative hypothesis is accepted and valid
In this case the null Hypothesis states ―There exist no relationship between cultural demographic (job profile) and consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc across Regions ―which is rejected for the above since the calculated value is higher than the table value (as shown
392 in the above tables).Thus the alternative hypothesis is accepted and valid, which states ―There exist a relationship between cultural demographic (job profile) and consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc across 6 Regions.
NAGPUR
11.21.4 Chi-square test is used to test association between JOB PROFILE AND Consumption factors: Sr no Consumption Degree of Chi-square Chi- Result of test factor freedom calculated square value table value 1 Liquor 4 55.96 9.49 Significant 2 Frozen food 4 104.65 9.49 Significant 3 Fast food 4 328.41 9.49 Significant 4 Clothes 4 44.72 9.49 Significant 5 Investment 2 165.33 5.99 Significant
Validity of Null hypothesis was tested using Chi-square.According to the test applied for 4 degree of freedom the table value 9.49 .If the calculated value <(less than) the table value, then Chi-Square test is accepted and if the calculated value is >(greater than) the table value ,then the chi-square test is rejected ,hence the alternative hypothesis is accepted and valid
In this case the null Hypothesis states ―There exist no relationship between cultural demographic (job profile) and consumption pattern of selected commodities (liquor, frozen food, clothes,) etc across Regions ―which is rejected for the above since the calculated value is higher than the table value (as shown in the above tables).Thus the alternative hypothesis is accepted and valid, which states ―There exist a relationship between cultural demographic (job profile) and consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc across 6 Regions.
393
VIDARBHA
11.21.5 Chi-square test is used to test association between JOB PROFILE AND Consumption factors: Sr no Consumption Degree of Chi-square Chi- Result of test factor freedom calculated square value table value 1 Liquor 6 60.80 12.6 Significant 2 Frozen food 6 114.72 12.6 Significant 3 Fast food 6 298.62 12.6 Significant 4 Clothes 6 31.46 12.6 Significant 5 Investment 3 144.59s 7.81 Significant
Validity of Null hypothesis was tested using Chi-square.According to the test applied for 4 degree of freedom the table value 9.49 .If the calculated value <(less than) the table value, then Chi-Square test is accepted and if the calculated value is >(greater than) the table value ,then the chi-square test is rejected ,hence the alternative hypothesis is accepted and valid
In this case the null Hypothesis states ―There exist no relationship between cultural demographic (job profile) and consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc across Regions ―which is rejected for the above since the calculated value is higher than the table value (as shown in the above tables).Thus the alternative hypothesis is accepted and valid, which states ―There exist a relationship between cultural demographic (job profile) and consumption pattern of selected commodities (liquor, frozen food, clothes,) etc across 6 Regions.
394
KONKAN
11.21.6 Chi-square test is used to test association between JOB PROFILE AND Consumption factors:
Sr no Consumption Degree of Chi-square Chi- Result of test factor freedom calculated square value table value 1 Liquor 6 82.43 12.60 Significant 2 Frozen food 6 53.17 12.60 Significant 3 Fast food 6 43.21 12.60 Significant 4 Clothes 6 229.41 12.60 Significant 5 Investment 6 33.69 12.60 Significant
Validity of Null hypothesis was tested using Chi-square and ANOVA.According to the test applied for 4 degree of freedom the table value 9.49 .If the calculated value <(less than) the table value, then Chi-Square test is accepted and if the calculated value is >(greater than) the table value ,then the chi-square test is rejected ,hence the alternative hypothesis is accepted and valid
In this case the null Hypothesis states ―There exist no relationship between cultural demographic (job profile) and consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc across Regions ―which is rejected for the above since the calculated value is higher than the table value (as shown in the above tables).Thus the alternative hypothesis is accepted and valid, which states ―There exist a relationship between cultural demographic (job profile) and consumption pattern of selected commodities (liquor, frozen food, clothes,) etc across 6 Regions.
395
Result:
From the above it is clear that cultural demographic (Job profile) has an impact on consumption pattern of selected commodities (liquor, frozen food, clothes, .) etc across 6 Regions . In this objective for different regions the Null hypothesis state ―There exist no relationship between cultural demographic (Job profile) and consumption pattern of selected commodities (liquor, frozen food, clothes, ) etc across 6 Regions. Hypothesis is validated using test and have been studied and explained in the previous pages.This means that the cultural demographic (Job profile) have an impact on the consumption of selected commodities.
ALTERNATIVE HYPOTHESIS IS VALID AND ACCEPTED AND HENCE NULL HYPOTHESIS IS REJECTED.
396
HYPOTHESIS 7
Null Hypothesis HO7: There exists no variation between the consumption pattern of fast foodsacross 6 Regions (Vidarbha, Nagpur, Konkan, North Maharashtra, West Maharashtra, Marathwada) of Maharashtra.
Alternative Hypothesis H17: There exists a variation between the consumption pattern of fast foods across 6 Regions (Vidarbha, Nagpur, Konkan, North Maharashtra, West Maharashtra, Marathwada) of Maharashtra
Validity of the hypothesis has been tested through Anova, Post Hoc Tests Bonferroni and T-test to study variation between the consumption pattern of Liqour across 6 Regions (Vidarbha, Nagpur, Konkan, North Maharashtra, West Maharashtra, Marathwada) of Maharashtra cultural difference differences between India and Maharashta.the result of the same are in the below mentioned table.
ANOVA Fastfoods
Sum of Squares df Mean Square F Sig.
Between 204.585 5 40.917 132.850 .000 Groups Within Groups 857.763 2785 .308 Total 1062.348 2790
397
From the below table it is observed that P value is < α we have rejected null hypothesis and applied bonferroni 11.22.1(a) Post Hoc Tests the results are as follows: Fastfoods Bonferroni
Mean Differenc (I) V6 (J) V6 e (I-J) Sig.(P -value) Result
Marathwada West Maharashtra -.251* .000 Significant
North Maharashta .035 1.000 Not Significant
Konkan .000 1.000 Not Significant
Nagpur -.584* .000 Significant
Vidarbha -.611* .000 Significant
West Maharashtra Marathwada .251* .000 Significant
North Maharashta .286* .000 Significant
Konkan .251* .000 Significant
Nagpur -.333* .000 Significant
Vidarbha -.360* .000 Significant
North Maharashta Marathwada -.035 1.000 Not Significant
West Maharashtra -.286* .000 Significant
Konkan -.035 1.000 Not Significant
Nagpur -.619* .000 Significant
Vidarbha -.646* .000 Significant
Konkan Marathwada .000 1.000 Not significant
West Maharashtra -.251* .000 Significant
398
North Maharashta .035 1.000 Not Significant
Nagpur -.584* .000 Significant
Vidarbha -.611* .000 Significant
Nagpur Marathwada .584* .000 Significant
West Maharashtra .333* .000 Significant
North Maharashta .619* .000 Significant
Konkan .584* .000 Significant
Vidarbha -.027 1.000 Not Significant
Vidarbha Marathwada .611* .000 Significant
West Maharashtra .360* .000 Significant
North Maharashta .646* .000 Significant
Konkan .611* .000
Nagpur .027 1.000 Significant
*. The mean difference is significant at the 0.05 level.
11.22.1(b) Results of T-test for Regions AND Fast foods Consumption:
Region T- Value Table T-value Result Vidharbha Nagpur 0.7372221 1.96 Not Significant
Vidharbha Konkan 16.082633 1.96 Significant
Vidharbha Marathwada 16.354561 1.96 Significant
399
Vidharbha North Maharashtra 17.490238 1.96 Significant
Vidharbha West Maharashtra 10.671689 1.96 Significant
Konkan Nagpur 15.65051 1.96 Significant
Nagpur Marathwada 15.922869 1.96 Significant
Nagpur North Maharashtra 17.066561 1.96 Significant
Nagpur West Maharashtra 10.490465 1.96 Significant
Konkan Marathwada 13.828923 1.96 Significant
Konkan North Maharashtra 14.841204 1.96 Significant
Konkan West Maharashtra 8.5118659 1.96 Significant
Marathwada North Maharashtra 0.8672383 1.96 Not Significant
Marathwada West Maharashtra 7.217446 1.96 Significant
West Maharashtra North Maharashtra 8.3732279 1.96 Significant
400
A through study of table11.22.1 (a and b) we can conclude that there is a significant variation in the consumption of fast food across 6 regions.Validity of Null hypothesis was tested using T-test According to the test applied for 2 degree of freedom the table value 1.96 .If the calculated value <(less than) the table value, then T- test is accepted and if the calculated value is >(greater than) the table value ,then the T- test is rejected ,hence the alternative hypothesis is accepted and valid. In case of Anova if P value is less than .05 then there is variation in consumption.
In this case the null Hypothesis states ―There exists no association between the consumption pattern of Liqour across 6 Regions (Vidarbha, Nagpur, Konkan, North Maharashtra, West Maharashtra, Marathwada) of Maharashtra ―which is rejected for the majority of the regions apart for Vidarbha and Nagpur above since the calculated value is higher than the table value (as shown in the above tables).Thus the alternative hypothesis is accepted and valid, which states ―.There exists no association between the consumption pattern of Liqour across 6 Regions (Vidarbha, Nagpur, Konkan, North Maharashtra, West Maharashtra, Marathwada) of Maharashtra.
RESULT :NULL HYPOTHESIS IS REJECTED AND HENCE ALTERNATIVE HYPOTHESIS IS ACCEPTED AND VALID.
401
HYPOTHESIS 8
Null Hypothesis H08: There exists no variation between the consumption pattern of Liqour across 6 Regions (Vidarbha, Nagpur, Konkan, North Maharashtra, West Maharashtra, Marathwada) of Maharashtra.
Alternative Hypothesis H18 : There exists a variation between the consumption pattern of fast foods across 6 Regions (Vidarbha, Nagpur, Konkan, North Maharashtra, West Maharashtra, Marathwada) of Maharashtra
Validity of the hypothesis has been tested through T-test to study association between the consumption pattern of Liqour across 6 Regions (Vidarbha, Nagpur, Konkan, North Maharashtra, West Maharashtra, Marathwada) of Maharashtra cultural difference differences between India and Maharashta.the result of the same are in the below mentioned table
ANOVA liquor Sum of
Squares df Mean Square F Sig. Between 90.456 5 18.091 32.347 .000 Groups Within Groups 1557.612 2785 .559 Total 1648.068 2790
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From the below table it is observed that P value is < α we have rejected null hypothesis and applied bonferroni 11.22.2(a) Post Hoc Tests the results are as follows:
liquor Bonferroni Mean Difference (I- (I) V6 (J) V6 J) Sig. Results Marathwada West -.100 .564 Significant Maharashtra North -.019 1.000 Not Significant Maharashta Konkan -.009 1.000 Not Significant Nagpur -.409* .000 Significant Vidarbha -.414* .000 Significant West Marathwada .100 .564 Not Significant Maharashtra North .081 1.000 Not Significant Maharashta Konkan .091 .977 Not Significant Nagpur -.309* .000 Significant Vidarbha -.313* .000 Significant North Marathwada .019 1.000 Not Significant Maharashta West -.081 1.000 Not Significant Maharashtra Konkan .010 1.000 Not Significant Nagpur -.390* .000 Significant Vidarbha -.394* .000 Significant Konkan Marathwada .009 1.000 Not Significant West -.091 .977 Not Significant Maharashtra
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North -.010 1.000 Not Significant Maharashta Nagpur -.400* .000 Significant Vidarbha -.404* .000 Significant Nagpur Marathwada .409* .000 Significant West .309* .000 Significant Maharashtra North .390* .000 Significant Maharashta Konkan .400* .000 Significant Vidarbha -.004 1.000 Not Significant Vidarbha Marathwada .414* .000 Significant West .313* .000 Significant Maharashtra North .394* .000 Significant Maharashta Konkan .404* .000 Significant Nagpur .004 *. The mean difference is significant at the 0.05 level.
11.22.2(b) Results of T-test for Regions and Liquor Consumption:
T- Value Table T-value Result Vidharbha Nagpur 0.05134 1.96 Not Significant
Vidharbha Konkan 8.10909 1.96 Significant
Vidharbha Marathwada 7.81415 1.96 Significant
Vidharbha North Maharashtra 8.17923 1.96 Significant
Vidharbha West Maharashtra 5.51102 1.96 Significant
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Konkan Nagpur 8.2733 1.96 Significant
Nagpur Marathwada 8.60123 1.96 Significant
Nagpur North Maharashtra 8.36225 1.96 Significant
Nagpur West Maharashtra 5.83318 1.96 Significant
Konkan Marathwada 0.19842 1.96 Significant
Konkan North Maharashtra 0.28587 1.96 Significant
Konkan 1.96 Significant West Maharashtra 1.90461
Marathwada North Maharashtra 0.50035 1.96 Significant
Marathwada West Maharashtra 2.11634 1.96 Significant
West Maharashtra North Maharashtra 1.72161 1.96 Significant
From the above table it is observed that apart from Vidarbha and Nagpur there is a significant difference in the consumption pattern of liquor across 6 Regions(Vidarbha, Nagpur, Konkan, North Maharashtra, West Maharashtra Marathwada) of Maharashta.
Validity of Null hypothesis was tested using T-test According to the test applied for 2 degree of freedom the table value 1.96 .If the calculated value <(less than) the table value, then T- test is accepted and if the calculated value is >(greater
405 than) the table value ,then the T- test is rejected ,hence the alternative hypothesis is accepted and valid
In this case the null Hypothesis states ―There exists no association between the consumption pattern of Liqour across 6 Regions (Vidarbha, Nagpur, Konkan, North Maharashtra, West Maharashtra, Marathwada) of Maharashtra ―which is rejected for the majority of the regions apart for Vidarbha and Nagpur above since the calculated value is higher than the table value (as shown in the above tables).Thus the alternative hypothesis is accepted and valid, which states ―.There exists no association between the consumption pattern of Liqour across 6 Regions (Vidarbha, Nagpur, Konkan, North Maharashtra, West Maharashtra, Marathwada) of Maharashtra.
RESULT :NULL HYPOTHESIS IS REJECTED AND HENCE ALTERNATIVE HYPOTHESIS IS ACCEPTED AND VALID. ,
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HYPOTHESIS 9
Null Hypothesis H09: There exists no association between the consumption pattern of frozen foods across 6 Regions (Vidarbha, Nagpur, Konkan, North Maharashtra, West Maharashtra, Marathwada) of Maharashtra.
Alternative Hypothesis H19 : There exists a association between the consumption pattern of frozen foods across 6 Regions (Vidarbha, Nagpur, Konkan, North Maharashtra, West Maharashtra, Marathwada) of Maharashtra
Validity of the hypothesis has been tested through Anova, Post Hoc Tests Bonferroni and T-test to study variation between the consumption pattern of Liqour across 6 Regions (Vidarbha, Nagpur, Konkan, North Maharashtra, West Maharashtra, Marathwada) of Maharashtra results of the same are in the below mentioned table.since
ANOVA Frozen foods Sum of
Squares df Mean Square F Sig. Between Groups 52.792 5 10.558 25.250 .000
Within Groups 1164.568 2785 .418 Total 1217.359 2790
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Frozen foods Bonferroni Mean Difference (I- (I) V6 (J) V6 J) Sig. Results Marathwada West .248* .000 Significant Maharashtra North Significant .155* .003 Maharashta Konkan .163* .003 Significant Nagpur .366* .000 Significant Vidarbha .414* .000 Significant West Marathwada .248* .000 Significant Maharashtra North .094 .336 Not Significant Maharashta Konkan .085 .687 Not Significant Nagpur .117 .073 Not Significant Vidarbha .166* .001 Significant North Marathwada .155* .003 Significant Maharashta West -.094 .336 Not Significant Maharashtra Konkan -.008 1.000 Not Significant Nagpur -.211* .000 Significant Vidarbha -.260* .000 Significant Konkan Marathwada .163* .003 Significant West -.085 .687 Not Significant Maharashtra North .008 1.000 Not Significant Maharashta Nagpur -.203* .000 Significant Vidarbha -.251* .000 Significant Nagpur Marathwada .366* .000 Significant West .117 .073 Significant Maharashtra
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North .211* .000 Significant Maharashta Konkan .203* .000 Significant Vidarbha -.049 1.000 Not Significant Vidarbha Marathwada .414* .000 Significant West .166* .001 Significant Maharashtra North .260* .000 Significant Maharashta Konkan .251* .000 Significant Nagpur .049 1.000 Not Significant *. The mean difference is significant at the 0.05 level.
11.22.3 Results of T-test for Regions and Frozen foods Consumption:
T- Value Table T-value Result Vidharbha Nagpur 1.219980405 1.96 Not Significant
Vidharbha Konkan 5.865083683 1.96 Significant
Vidharbha Marathwada 10.25016503 1.96 Significant
Vidharbha North Maharashtra 6.146025976 1.96 Significant
Vidharbha West Maharashtra 3.949229581 1.96 Significant
Konkan Nagpur 4.8238309 1.96 Significant
Nagpur 9.17969551
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Marathwada 1.96 Significant
Nagpur North Maharashtra 5.082030996 1.96 Significant
Nagpur West Maharashtra 2.994001932 1.96 Significant
Konkan Marathwada 3.588000232 1.96 Significant
Konkan North Maharashtra 0.122586439 1.96 Significant
Konkan West Maharashtra 1.97825011 1.96 Significant
Marathwada North Maharashtra 3.54111292 1.96 Significant
Marathwada West Maharashtra 5.9566636 1.96 Significant
West Maharashtra North Maharashtra 2.155530196 1.96 Significant
From the above table it is observed that apart from Vidarbha and Nagpur there is a significant difference in the consumption pattern of frozen foods across 6
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Regions(Vidarbha, Nagpur, Konkan, North Maharashtra, West Maharashtra Marathwada) of Maharashta.
Validity of Null hypothesis was tested using T-test According to the test applied for 2 degree of freedom the table value 1.96 .If the calculated value <(less than) the table value, then T- test is accepted and if the calculated value is >(greater than) the table value ,then the T- test is rejected ,hence the alternative hypothesis is accepted and valid
In this case the null Hypothesis states ―There exists no association between the consumption pattern of Liqour across 6 Regions (Vidarbha, Nagpur, Konkan, North Maharashtra, West Maharashtra, Marathwada) of Maharashtra ―which is rejected for the majority of the regions apart for Vidarbha and Nagpur above since the calculated value is higher than the table value (as shown in the above tables).Thus the alternative hypothesis is accepted and valid, which states ―.There exists no association between the consumption pattern of Liqour across 6 Regions (Vidarbha, Nagpur, Konkan, North Maharashtra, West Maharashtra, Marathwada) of Maharashtra.
RESULT :NULL HYPOTHESIS IS REJECTED AND HENCE ALTERNATIVE HYPOTHESIS IS ACCEPTED AND VALID.
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HYPOTHESIS 10
Null Hypothesis H010: There exists no variation among different Levels of respondents with regards to the consumption pattern across 6 Regions (Vidarbha, Nagpur, Konkan, North Maharashtra, West Maharashtra, Marathwada).
Alternative Hypothesis H110 : There exists variation among different levels of respondents with regards to the consumption pattern across 6 Regions (Vidarbha, Nagpur, Konkan,NorthMaharashtra, West Maharashtra, Marathwada).
A detailed analysis of association of indexes on consumption of selected commodities has been done in the previous pages .For further analysis descriptive and Anova had been applied the result of the same show if there exists a variation in different levels of respondents.the same has been discussed in detail in the previous pages (refer the following in previous pages)
11.13.1(c) ANOVA FOR UAI and LIQUOR Nagpur 11.14.2 (b)ANOVA For IVR and Frozen Foods Vidarbha 11.14.4 (b) ANOVA for IVR and CLOTHES Vidarbha 11.15.1 (b)ANOVA for IVR and LIQUOR Konkan 11.15.3 (a) ANOVA for MAS fastfoods Konkan 11.17.4 (b)ANOVA for LTO investment North Maharashtra 11.18.5 (b) ANOVA for IDV clothes West maharashta 11.18.6 (b)ANOVA for LTO Investment
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From the above detailed analysis it is observed that for the above mentioned commoditied and in their respective regions there is a varioation in the consumption with in the same region.Apart from the difference of their consumption with respect to other regions.for e.g ANOVA FOR UAI and LIQUOR in Nagpur where the value of calculated value of F is more that the table value .as the result of which we can conclude that in regard to consumption of liquor in Nagpur there is a significant difference in the consumption of liquor even with in the levels of Nagpur.
Validity of Null hypothesis was tested using Descriptive and ANOVA or 2 degree of freedom the table value 1.96 .If the calculated value <(less than) the table value, then F-test is accepted and if the calculated value is >(greater than) the table value ,then the F-test is rejected ,hence the alternative hypothesis is accepted and valid
In this case the null Hypothesis states ―There exists no variation among different Levels of respondents with regards to the consumption pattern across Regions (Vidarbha, Nagpur, Konkan North Maharashtra, West Maharashtra Marathwada) of Maharashtra. ―which is rejected for the above mentioned commodities and their respective regions .Thus the alternative hypothesis is accepted and valid, for the above which states ―.There exists no variation among different Levels of respondents with regards to the consumption pattern across Regions (Vidarbha, Nagpur, Konkan North Maharashtra, West Maharashtra Marathwada) of Maharashtra.
RESULT: NULL HYPOTHESIS IS REJECTED AND HENCE ALTERNATIVE HYPOTHESIS IS ACCEPTED AND VALID.
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Summary of Hypothesis Validated
Sr.No. Null Hypothesis Alternative Hypotheses
H1 There exists no cultural There exists cultural difference among the 6 difference among the 6 regions of Maharashtra regions of Maharashtra
-Rejected -Accepted
H2 There exists no relationship There exists relationship among various cultural among various cultural indexes i.e. PDI, IDV, MAS, indexes i.e. PDI, IDV, UAI, LTO, IVR and MON in MAS, UAI, LTO, IVR and selected regions of MON in selected regions Maharashtra of Maharashtra
-Rejected -Accepted
H3.1(Nagpur) Cultural dimensions i.e. PDI, Cultural dimensions i.e. IDV, MAS, UAI, LTO, IVR and PDI, IDV, MAS, UAI, LTO, MON have no impact on the IVR and MON have no consumption pattern of impact on the consumption different types of pattern of different types commodities of -Rejected commodities -Accepted
H3.2(Vidarbha) Cultural dimensions i.e. PDI, Cultural dimensions i.e. IDV, MAS, UAI, LTO, IVR and PDI, IDV, MAS, UAI, LTO,
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MON have no impact on the IVR and MON have no consumption pattern of impact on the consumption different types of pattern of different types commodities of -Rejected commodities -Accepted
H3.3(Konkan) Cultural dimensions i.e. PDI, Cultural dimensions i.e. IDV, MAS, UAI, LTO, IVR and PDI, IDV, MAS, UAI, LTO, MON have no impact on the IVR and MON have no consumption pattern of impact on the consumption different types of pattern of different types commodities of -Rejected commodities -Accepted
H3.4(Marathwada) Cultural dimensions i.e. PDI, Cultural dimensions i.e. IDV, MAS, UAI, LTO, IVR and PDI, IDV, MAS, UAI, LTO, MON have no impact on the IVR and MON have no consumption pattern of impact on the consumption different types of pattern of different types commodities of -Rejected commodities -Accepted
H3.5(North Cultural dimensions i.e. PDI, Cultural dimensions i.e. Maharashtra) IDV, MAS, UAI, LTO, IVR and PDI, IDV, MAS, UAI, LTO, MON have no impact on the IVR and MON have no consumption pattern of impact on the consumption
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different types of pattern of different types commodities of -Rejected commodities -Accepted
H3.6(West Cultural dimensions i.e. PDI, Cultural dimensions i.e. Maharashtra) IDV, MAS, UAI, LTO, IVR and PDI, IDV, MAS, UAI, LTO, MON have no impact on the IVR and MON have no consumption pattern of impact on the consumption different types of pattern of different types commodities of -Rejected commodities -Accepted
H4.1 (Nagpur) There exist no relationship There exist relationship between cultural between cultural demographic (age) and demographic (age) and consumption pattern of consumption pattern of selected commodities (liquor, selected commodities frozen food, clothes, .) etc (liquor, frozen food, across 6 Regions clothes, .) etc across 6 Regions -Rejected -Accepted
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H4.2 (Vidarbha) There exist no relationship There exist relationship between cultural between cultural demographic (age) and demographic (age) and consumption pattern of consumption pattern of selected commodities (liquor, selected commodities frozen food, clothes, .) etc (liquor, frozen food, across 6 Regions clothes, .) etc across 6 -Rejected Regions -Accepted
H4.3 (Konkan) There exist no relationship There exist relationship between cultural between cultural demographic (age) and demographic (age) and consumption pattern of consumption pattern of selected commodities (liquor, selected commodities frozen food, clothes, .) etc (liquor, frozen food, across 6 Regions clothes, .) etc across 6 Regions -Rejected -Accepted
H4.4(Marathwada) There exist no relationship There exist relationship between cultural between cultural demographic (age) and demographic (age) and consumption pattern of consumption pattern of selected commodities (liquor, selected commodities frozen food, clothes, .) etc (liquor, frozen food, across 6 Regions clothes, .) etc across 6 Regions -Rejected -Accepted
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H4.5 (North There exist no relationship There exist relationship Maharashtra) between cultural between cultural demographic (age) and demographic (age) and consumption pattern of consumption pattern of selected commodities (liquor, selected commodities frozen food, clothes, .) etc (liquor, frozen food, across 6 Regions clothes, .) etc across 6 Regions -Rejected -Accepted
H4.6 (West There exist no relationship There exist relationship Maharashtra) between cultural between cultural demographic (age) and demographic (age) and consumption pattern of consumption pattern of selected commodities (liquor, selected commodities frozen food, clothes, .) etc (liquor, frozen food, across 6 Regions clothes, .) etc across 6 Regions -Rejected -Accepted
H5.1 (Nagpur) There exist no relationship There exist relationship between cultural between cultural demographic (Education ) demographic (Education) and consumption pattern of and consumption pattern selected commodities (liquor, of selected commodities frozen food, clothes, .) etc (liquor, frozen food, across 6 Regions clothes, .) etc across 6 Regions
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-Rejected -Accepted
H5.2 (Vidarbha) There exist no relationship There exist relationship between cultural between cultural demographic (Education) and demographic (Education) consumption pattern of and consumption pattern selected commodities (liquor, of selected commodities frozen food, clothes, .) etc (liquor, frozen food, across 6 Regions clothes, .) etc across 6 -Rejected Regions -Accepted
H5.3 (Konkan) There exist no relationship There exist relationship between cultural between cultural demographic (Education) and demographic (Education) consumption pattern of and consumption pattern selected commodities (liquor, of selected commodities frozen food, clothes, .) etc (liquor, frozen food, across 6 Regions clothes, .) etc across 6 Regions -Rejected -Accepted
H5.4(Marathwada) There exist no relationship There exist relationship between cultural between cultural demographic (Education) and demographic (Education) consumption pattern of and consumption pattern selected commodities (liquor, of selected commodities frozen food, clothes, .) etc (liquor, frozen food, across 6 Regions clothes, .) etc across 6
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Regions
-Rejected -Accepted
H5.5 (North There exist no relationship There exist relationship Maharashtra) between cultural between cultural demographic (Education) and demographic (Education) consumption pattern of and consumption pattern selected commodities (liquor, of selected commodities frozen food, clothes, .) etc (liquor, frozen food, across 6 Regions clothes, .) etc across 6 Regions
-Rejected -Accepted
H5.6 (West There exist no relationship There exist relationship Maharashtra) between cultural between cultural demographic (Education) and demographic (Education) consumption pattern of and consumption pattern selected commodities (liquor, of selected commodities frozen food, clothes,) etc (liquor, frozen food, across 6 Regions clothes) etc across 6 Regions
-Rejected -Accepted
H6.1 (Nagpur) There exist no relationship There exist relationship between cultural between cultural demographic (Job profile ) demographic (Job profile) and consumption pattern of and consumption pattern selected commodities (liquor, of selected commodities
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frozen food, clothes, .) etc (liquor, frozen food, across 6 Regions clothes, .) etc across 6 Regions
-Rejected -Accepted
H6.2 (Vidarbha) There exist no relationship There exist relationship between cultural between cultural demographic (Job profile) and demographic (Job profile) consumption pattern of and consumption pattern selected commodities (liquor, of selected commodities frozen food, clothes, .) etc (liquor, frozen food, across 6 Regions clothes, .) etc across 6 Regions -Rejected -Accepted
H6.3 (Konkan) There exist no relationship There exist relationship between cultural between cultural demographic (Job profile) and demographic (Job profile) consumption pattern of and consumption pattern selected commodities (liquor, of selected commodities frozen food, clothes, .) etc (liquor, frozen food, across 6 Regions clothes, .) etc across 6 Regions
-Rejected -Accepted
H6.4(Marathwada) There exist no relationship There exist relationship between cultural between cultural demographic (Job profile) and demographic (Job profile) consumption pattern of and consumption pattern
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selected commodities (liquor, of selected commodities frozen food, clothes, .) etc (liquor, frozen food, across 6 Regions clothes, .) etc across 6 Regions
-Rejected -Accepted
H6.5 (North There exist no relationship There exist relationship Maharashtra) between cultural between cultural demographic (Job profile) and demographic (Job profile) consumption pattern of and consumption pattern selected commodities (liquor, of selected commodities frozen food, clothes, .) etc (liquor, frozen food, across 6 Regions clothes, .) etc across 6 Regions
-Rejected -Accepted
H6.6 (West There exist no relationship There exist relationship Maharashtra) between cultural between cultural demographic (Job profile) and demographic (Job profile) consumption pattern of and consumption pattern selected commodities (liquor, of selected commodities frozen food, clothes, .) etc (liquor, frozen food, across 6 Regions clothes, .) etc across 6 Regions
-Rejected -Accepted
H 7 There exists no association There exists association between the consumption between the consumption
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pattern of fast foods across 6 pattern of fast foods Regions (Vidarbha, Nagpur, across 6 Regions Konkan, North Maharashtra, (Vidarbha, Nagpur, West Maharashtra, Konkan, North Marathwada) of Maharashtra. Maharashtra, West Maharashtra, Marathwada) of Maharashtra. -Rejected -Accepted
H 8 There exists no association There exists no between the consumption association between the pattern of liquor across 6 consumption pattern of Regions(Vidarbha, Nagpur, liquor across 6 Regions Konkan,NorthMaharashtra,W (Vidarbha,Nagpur, est Konkan, North Maharashtra,Marathwada) of Maharashtra,West Maharashtra Maharashtra,Marathwada) of Maharashtra
-Rejected -Accepted H 9 There exists no association There exists no between the consumption association between the pattern of frozen foodsacross consumption pattern of 6 Regions (Vidarbha, frozen foodsacross 6 Nagpur, Konkan, North Regions (Vidarbha, Maharashtra, West Nagpur, Konkan, North Maharashtra, Marathwada) of Maharashtra,West Maharashtra. Maharashtra,Marathwada) of Maharashtra.
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-Accepted -Rejected H 10 There exists variation There exists no variation among different Levels of among different Levels of respondents with regards respondents with regards to to the consumption pattern the consumption pattern across 6 Regions across 6 Regions (Vidarbha, (Vidarbha, Nagpur, Nagpur, Konkan Konkan North Maharashtra, West North Maharashtra, West Maharashtra, Marathwada). Maharashtra,Marathwada) .
- Rejected -Accepted
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CHAPTER 12 MAJOR FINDINGS AND CONCLUSIONS
The primary purpose of the study was to understand the impact of cross –culture on consumer consumption behavior. The study dealt with finding the cultural value differences among the six regional cultures on the basis of seven dimensions ,impact of cross-cultural dimension on consumption of selected commodities,impact of demographic factors (age,education ,jobprofile ) on consumption pattern,difference in consumption of selected commodities with in the same region,consumption of selected commodities across 6 regions.and finding the consumption differences of selected commodities among these cultures. To do so extensive literature review was done on this subject. Since not much of the literature is available in context to impact of cross culture with special reference to within India.Hofstede‘s Value Survey Manual 2008 was used to understand the impact of cross culture on consumption.
Cultural Indices Scores The research aimed at comparing the regional cultures in India using Hofstede‘s (2008) cultural framework. The seven indices i.e. PDI, IDV, MAS, UAI, LTO, MON, IVR which were calculated for the four regional states are shown below in Table
PDI IDV MAS LTO IVR UAI MON Vidharbh 74.03 58.87 49.52 55.08 30.48 42.37 60.75 Nagpur 73.11 48.9 60.39 64.86 29.44 44.57 53.5 Konkan 80.17 39.97 48.33 71.74 26.79 48.52 55.2 North Maharashtra 87.04 34.74 62.91 61.09 21.77 40.56 48.46 West Maharashtra 75.03 56.23 51.26 59.18 19.85 36.65 48.52 Marathwada 71.29 50.66 62.78 51.98 26.88 28 48.16
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Based on the population samples in this study the six regions differ not only geographically but also culturally. The region North Maharashtra in Maharashtra is far more hierarchical and power is distributed unequally as compared to the Maharathwada in Maharashtra. Konkan has the highest long-term orientation among all the other regions.
Vidarbha and Nagpur region of Maharashtra is similar on PDI and more power distanced or hierarchical state as compared to North Maharashtra and Konkan region North Maharashtra more collectivistic than all other regions. The region is comparatively more masculine and assertive. It is highly long-term oriented in comparison to all the regions.
The region Marathwada is the most egalitarian state as it scores the least on PDI. It almost equals on MAS with North Maharashtra, while it is more masculine than Konkan. The region is weaker on UAI than other regions of Maharashtra.
Thus Contrary to the common myth of considering India as single culture. This study of six regional cultures proves that single cultural values cannot be attributed to the whole of State and that the six regional cultures vary on the Cultural dimensions. On some dimensions there is not much difference, this could be due to the common historical, political and social structure legacy of all these cultures. These cultural dimensions could also be used to predict or control the work or group behavior of the individuals.
The study showed that the dimension are correlated to each other as per which it revieled that UAI and IDV are positively correlated,which show that in the areas under study if there is a positive change in UAI subsiqently there will be a positive change in IDV.for e.g people who are less tolerant ,play safe(high UAI) are people who wait for the results and status is a criteria for relationships.
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This Study establishes a fact that demographics play a very important role in the cross consumer consumption behavior. Statistical analysis also reveals that demographics play an important role in consumption of commodities. Thus emphasis of impact of demographics was a key for better understanding the consumption pattern.
The study establishes that there is a significant variation in the the consumption for the selected commodities across six regions (Vidarbha, Nagpur, Konkan North Maharashtra, West Maharashtra,Marathwada )of Maharashtra. Thus concluding that cross culture does impact the consumption of selected commodities.
The results revieled that there is a their exist a significant variation in the consumption of selected commodities across six regions apart from Vidarbha and Nagpur . For all other regions there is a significant variation in cthe consumption of the selected commodities ,which supports the earlier analysis and finding stating that their exist a cross culture among six regions Vidarbha, Nagpur, Konkan North Maharashtra, West Maharashtra,Marathwada of Maharashta
Different dimensions are considered to be an important factor for influencing the cross culture consumption pattern. This study reveals that in some regions the impact of indices is not very high as compared to other regions. Thus it gives a better understanding for managers in as companies are moving towards becoming multinational due to saturated markets.
Among the cultural dimensions calculated for six regions Indulgence versus Restraint IVR surged as a potent factor predicting the consumption of selected commodities
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In case of liquor consumption IVR has been found to be a significant predictor. (Detail of the same has been provided in the previous pages). It proves that there is a difference in liquor consumption due to IDV factor in different cultures.
The effect of cultural dimensions on the consumption of selected commodities for each region was examined with help of descriptives and ANOVA. The Table below provides the relationship of culture and consumption pattern across the six regions of Maharashtra.
State Cultural Dimension Commodity
Vidarbha PDI IDV Fast foods UAI MAS LTO IVR Frozen foods,Clothes
MON
Konkan PDI IDV UAI MAS Frozen foods LTO IVR Liquor MON
Marathwada PDI Fast foods, Frozen foods IDV UAI
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MAS LTO IVR Liquor
MON
West Maharashtra PDI IDV Clothes UAI MAS Fast foods LTO Frozen foods,Investment IVR
MON
Nagpur PDI IDV UAI Liquor,fast foods, clothes MAS Frozen foods LTO IVR Liquor
MON
North Maharashta PDI IDV UAI MAS LTO Clothes IVR
MON
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From the above table it can be observed that different dimension have an impact on the consumption of different commodities. It has also been observed during the analysis that there is a significant difference in term of consumption of commodities in different categories.
The finding of this research brings out an interesting fact that Maharashta is a mix of different cultures, habits, and languages cross culture does exist within a state .It is a matter of recognizing and understanding the consumer, and his or her context.
One of the benefit of this research would be that it provides one of the first documented evidence of existence of cross culture within the state of Maharashtra.
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CHAPTER 13 RECOMMENDATIONS
Based on the Researchers results and preceding discussions, following are the recommendations:
The consumer product companies should implement marketing strategy on basis of specific cultures and regions.
Managers in consumer product companies must understand the role of culture how .Regional culture specifically which affects strategy at the regional and sub regional level. In addition, it affects marketing and management practices. This is important because many companies are moving towards becoming multinational due to saturated markets.
For companies cross cultural specificity should be the approach and adjustments must be made to modify the and practices to local cross cultures .Cross Culture is the unseen context for strategy. Knowledge of cultural dimensions provides a necessary starting point for understanding consumption patterns. For example, high individualist scores (along with high masculinity scores) tend to result in highly competitive cross cultures. However, these cultures are not necessarily prized universally. When cross cultures differ, collaborative efforts require cross cultural awareness and sensitivity. This is particularly relevant for Managers in consumer product companies when one of the regions is an emerging market.
Companies/Research Institutions should do research involving more consumer driven products and more cultural environment to have better understanding of different markets.
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National and regional understanding of cross cultures both becomes useful when considering a marketing strategy. Because cross culture clarifies both differences and similarities, it becomes clear when and how to use standardization or adaptation marketing strategy approaches. If focus is to get large market sales rapidly, a standardization strategy wrt to cross culture all over India is the solution, whereas adaptation strategy wrt cross culture can create market understanding and the ability to generate greater usage and confirm consumer loyalty in the long run.
.
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ANNEXURE – I BIBLIOGRAPHY
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ANNEXURE – II
Padmashree Dr. D.Y. Patil University Department of Business Management
―THE IMPACT OF CROSS CULTURE ON CONSUMER CONSUMPTION BEHAVIOR: A STUDY OF SELECTED DISTRICTS OF MAHARASHTRA”
QUESTIONNAIRE
Please think of an ideal job, disregarding your present job, if you have one. In choosing an ideal job, how important would it be to you to ... (please circle one answer in each line across):
1 = of utmost importance 2 = very important 3 = of moderate importance 4 = of little importance 5 = of very little or no importance
01. have sufficient time for your personal or home life 1 2 3 4 5
02. have a boss (direct superior) you can respect 1 2 3 4 5
03. get recognition for good performance 1 2 3 4 5
04. have security of employment 1 2 3 4 5
05. have pleasant people to work with 1 2 3 4 5
06. do work that is interesting 1 2 3 4 5
07. be consulted by your boss in decisions involving your work 1 2 3 4 5
08. live in a desirable area 1 2 3 4 5
09. have a job respected by your family and friends 1 2 3 4 5
10. have chances for promotion 1 2 3 4 5
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In your private life, how important is each of the following to you: (please circle one answer in each line across):
11. keeping time free for fun 1 2 3 4 5
12. moderation: having few desires 1 2 3 4 5
13. being generous to other people 1 2 3 4 5
14. modesty: looking small, not big 1 2 3 4 5
15. If there is something expensive you really want to buy but you do not have enough money, what do you do? 1. always save before buying 2. usually save first 3. sometimes save, sometimes borrow to buy 4. usually borrow and pay off later 5. always buy now, pay off later
16. How often do you feel nervous or tense? 1. always 2. usually 3. sometimes 4. seldom 5. never
17. Are you a happy person ? 1. always 2. usually 3. sometimes 4. seldom 5. never
18. Are you the same person at work (or at school if you‘re a student) and at home? 1. quite the same 2. mostly the same 3. don‘t know 4. mostly different 5. quite different
19. Do other people or circumstances ever prevent you from doing what you really want to? 1. yes, always 2. yes, usually 3. sometimes 4. no, seldom 5. no, never
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20 . All in all, how would you describe your state of health these days? 1. very good 2. good 3. fair 4. poor 5. very poor
21. How important is religion in your life ? 1. of utmost importance 2. very important 3. of moderate importance 4. of little importance 5. of no importance
22. How proud are you to be a citizen of your country? 1. not proud at all 2. not very proud 3. somewhat proud 4. fairly proud 5. very proud
23. How often, in your experience, are subordinates afraid to contradict their boss (or students their teacher?) 1. never 2. seldom 3. sometimes 4. usually 5. always
To what extent do you agree or disagree with each of the following statements? (please circle one answer in each line across):
1 = strongly agree 2 = agree 3 = undecided 4 = disagree 5 = strongly disagree
24. One can be a good manager without having a precise answer to every question that a subordinate may raise about his or her work 1 2 3 4 5
25. Persistent efforts are the surest way to results 1 2 3 4 5
26. An organization structure in
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which certain subordinates have two bosses should be avoided at all cost 1 2 3 4 5
27. A company's or organization's rules should not be broken - not even when the employee thinks breaking the rule would be in the organization's best interest 1 2 3 4 5
28. We should honour our heroes from the past 1 2 3 4 5
Some information about yourself (for statistical purposes):
29. How often do you consume beer/liquor ?(circle) 1 = Never 2 =Rarely 3 = Regularly
30. How often do you visit a fast food restaurant? 1 = Never 2 =Rarely 3 = Regularly
31. How often do you have / prepare frozen food? 1 = Never 2 =Rarely 3 = Regularly
32. Which clothes do you prefer 1=Branded Readymade 2=Tailor stitched 3=Unbranded readymade
33. What do you think is the best tool for investment 1=Shares/Bonds 2=Real Estate 3=Gold 4=Bank Fixed Deposits
34. How old are you? Below 30 30-50
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Above 50
35. Your Educational Qualifications 1. 10+2 2. Graduation 3. Post Graduation 4. Professional 5. Any other(Please Specify) ______
36. Your Total Work Experience ______37. Which region do you belong to? ______38.Your Telephone Contact No ______
Thank you very much for your cooperation!
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