International Marketing
The impact of culture on the quality perception of Private Labels, and the moderation effect of price promotion
Table of Contents 1. Problem analysis 4 1.1 Current situation 4 1.2 Problem statement and research question 4 1.3 Theoretical background 5 2. Research 6 2.1 Research design 6 2.2 Data analysis and results 7 3. Conclusions, managerial implications, and limitations 10 4. References 12 5. Appendix 15 Appendix 1: Definitions 15 Appendix 2: Questionnaire 16 Appendix 3: Sample characteristics 20 Appendix 4: Normality and Homogeneity 24 Appendix 5: Cronbach’s Alpha analysis 25 Appendix 6: Bivariate correlation matrix of constructs 25 Appendix 7: Independent sample t-test
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The research question that will be investigated is: “To what extent does price promotion moderate the relationship between culture and quality perception of private labels?” 1.3 Theoretical background
De Mooij and Hofstede (2002) define culture by eight dimensions. Asian cultures are associated with higher levels of uncertainty avoidance (UA) (see Appendix 1) compared to individualistic cultures, therefore these Asian cultures are more attracted to products with a lower risk (Moss & Vinten, 2001; Samli, 1995; Shannon, 2005). Furthermore, there is a strong belief that Asian consumers have a strong preference for NBs over PLs (Ahuvia & Wong, 1998; Brady et al., 2003; De Mooij & Hofstede, 2002). According to Batra and Sinha (2000) consumers who relate higher prices with higher quality are less attracted by PLs. According to De Mooij and Hofstede (2002) PLs are more frequent in individualistic cultures such as the Netherlands, than collectivist cultures such as in China. They presented two specific reasons for collectivist (Asian) nations to choose NBs over PLs, namely that NBs lead to more status, and the preference for long-term relationships and so for well-known NBs. Therefore, collectivistic cultures are more risk averse and tend to value brand names. They also value the perceived link between price and quality, which negatively affects the image of PLs in such countries. On the other hand, individualistic cultures are supposed
The major hypothesis driving this study therefore states that, when the strength of ethnic identification is high, the ethnic consumer will respond to marketing the way there parents’ culture does (Cherian, p. 501). The problem with this statement is that it assumes that all Hispanics in the culture currently agree or plan to stick with the culture. This statement does not consider that other Hispanic population. And for a long period of time, mass marketing was thinking in terms to the cumulative mind set. This study wants to examine what is the difference between the Hispanics who would like to stand with their traditions and long
Skill number six is where the resource family understands how to help the child develop a strength based understanding of his or her life story and to make new meaning of their trauma history and current experiences. The goal is to guide the resource family with strategies on how to talk about the child’s past, build meaning to his or her life narrative, and process new information that the child discloses. Some tasks associated with this goal include:
The reasoning for young teens to consider starting their own buisnesses is a great idea. There are alot of teenagers who are smart, ambitious and are very much interested in becoming young entrepreneurs. There are already some teens who have turned hobbies or things they like to make or do into a way to earn cash. In several cases, not only have these ventures turned into more than wonderful ideas but also small buisnesses which became
As said in the assignment I have to select a topic which is taken with two peered reviewed journal articles to do a comparative analysis. The subject I choose my articles are about gender and race in criminality. The two articles I selected were “Crime, Cops and Context” written by Andres F. Rengifo, Morgan Pater and Brenda J. Velazquez. The reason I choose the article is it seemed interested and informative. The second article is “Intersectionality of Race, Ethnicity, Gender and Age on Criminal Punishment” written by Darrell Steffensmeier, Noah Painter-Davis and Jeffery Ulmer. The reason I choose the article is it looked similar to the first article, so I thougt it would be good to do a review on similar subjects.
Being a new teacher, how do you balance your social life, with your work life? (i.e Weekends, Vacations)
Another cultural difference that marketers in both countries must take note of is that Americans hold a “cultural worship of the individual and his or her rights compared to the Japanese obligations to its society and the acceptance of some limitations for the greater good of the country and the corporation,”(Howard, 1999). Because the Japanese culture places such high priority on the product that they purchase, Japanese marketing includes high standards for “product quality, durability, and reliability,” yet Japanese consumers also force marketers to provide them with
As a college student it is important to take writing as a communication skill very serious it's best that you consider English class as a gift or a tool in life. But writing can be hard in college when it comes to essays, and class work but as you as you learn more in English the better you get at it. Here is one example that I found in this article, your success with academic writing depends upon on how well you understood what you are doing as you write and then how you approach the writing task in the near future that right there is something that I would follow when it comes to academic writing that is one example from Lennie Irvin that inspired me to keep writing in English class. For writing everyone has an idea about something I mean most people have crazy ideas about what they are doing when they write an essay about anything for example people would write about US laws, governments, court systems, military, the media, or anything on a subject that would help you on an essay for anything or on anyone. The myths about writing some writers will write
Culture, inevitably, influences the needs and desires of consumers of particular countries and socialized groups, consequently, businesses, in order to succeed have to be aware of cultural interests and target their products and operations to cultural demands. There is a certain collective programming of the mind that operates in each and every culture and this cognitive programming or acculturation (otherwise known as socialization) impact consumerists' decisions and emands. Norms, rules,
The above answers indicated that consumers enhanced the importance of brand and design instead of the manufactured country. Interviewee M9 supports this by sharing “I had only used label to judge product’s country previously, but now, I will use other information to help me.”
Private label brands are a growing product offering worldwide. The researchers attempt to understand the factors that have influence the growth and expansion of private label brands. Private label brands are compared to national brands and the influence the private label brands have on consumers’ purchase intentions. Consumers’ intentions to purchase private label brands are influenced by more than just prices. The researchers found that private
Culture: culture impacts consumers’ behaviour as culture is viewed differently across nations, consumers preferences differs due to values, beliefs and customs. Therefore Lidl’s would have to develop marketing communication strategies that appeals to different cultural background in order to gain acceptance in other countries. The marketing messages should connect with its target market in such a way it influences them to make purchase or to enquire about the product.
Consumers worldwide relied on Japanese products as higher quality and cheaper price comparing to western products. North American considered japan as serious threat to their industry and realized the magnitude of quality management. Figure 1 illustrates the difference between Japanese quality compared the west. Rate of slopes indicates the attention of Japanese party towards quality in
(1993) propose capital, empathy, cost, and accountability as possible mediators in the process between consumer ethnocentrism and readiness to purchase imported products. The explanation of these variables lies in the logic that ethnocentric consumers will perceive international competition as something that is not fair to the domestic industry. This will then force consumers to buy domestic products, which increases empathy for members of the internal group, and increases readiness for further purchase of domestic products. Ethnocentric consumers will also ignore personal costs by purchasing domestic products. Another important variable is certainly the effect of the "country of origin". Han (1988) includes the country of origin as a variable that dictates the relationship between consumer patriotism and the intent of buying. Namely, consumers of expressed patriotism will moreover buy domestic products, and avoid buying products of foreign
In recent years, due to the change of own profit model, high inflation, increasing operating costs and competition from online commerce, traditional retail businesses have grown slowly in China. Chinese retail business, especially supermarkets need to be transformed and updated. Developing private label brands is one of the most efficient ways to realise supermarkets ' transition and updating, it could reduce costs and improve supply chain system. However, the development of supermarket private label in China is only in start-up stage now which leaves plenty of scope to learn from mistakes and successes from other businesses. The British retail market is the second largest in Europe, and has the highest profit margins in the world. Its supermarket private label has developed into a mature stage (Zhen, 2007). Since there are limited studies in the area of analysing the gap between British and Chinese supermarket in developing private label, this study will help to stop the gap in literature study of comparing the development of private label between China and UK. In addition, it may predict the future developing trend of Chinese private label and benefit Chinese supermarket managers on how to introduce more successful strategies of private label products in further development on the basis of British experience.
People have different consumption behaviors in relation to the using up of various health products. Their experiences and cultures determine if they are likely to purchase given health products. Chinese culture is different to the Australian culture which creates vast differences in how the consumers carry out their purchases as well in the decision making process. Even though features such as flavor, quality and brand name is similar across all the nationalities, the customers values and the role that the culture is attached to a given product plays a critical role in influencing the purchase behavior. In this case, the consumption