Research Skills Assignment

6271 Words Feb 29th, 2016 26 Pages
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
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