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  • 1. Cross-cultural analysis of consumer value dimensions and its implications on international business Manoj Nair Leeds University Business School www.mrnair.com LUBS Conference 2009 University of Leeds
  • 2. www.mrnair.com "Consumers should be proud to Buy British and buy local particularly at a time of recession.” (Lib Dem leader Nick Clegg, 2009) “ Daily Mirror's drive to beat the slump by getting us all to Buy British ” (The Independent, 2009) During these terribly difficult economic times, it is more important than ever to support our local economy and shop locally ” (John Wright, FSB) “ We must buy products that are made here ” (Sir Alan Sugar, The Daily Mirror) “ Be Indian Buy indian ” (The Hindu) “ Bromptons, Barbours, Bournville and bras…..It’s time to buy British ” (The Guardian, Nov 2008) China does not need ``British products(The Asia Times, 2009) I will support my local grocer (The Times of India, 2009) Consumer Ethnocentrism
  • 3. www.mrnair.com It is defined as the belief that it is inappropriate, or even immoral, to purchase foreign products because to do so is damaging to the domestic economy, costs domestic jobs, and is unpatriotic . (Shimp and Sharma, 1987) Consumer Ethnocentrism
  • 4. www.mrnair.com I would not like to buy British goods because….. I hate products Made in India due to……. “ Made in china” is not for me as….. Consumer Animosity
  • 5. www.mrnair.com It is defined as anger related to previous ongoing political, military, economic, or diplomatic events . (Klein, Ettenson and Morris, 1998) Consumer Animosity
  • 6. www.mrnair.com Theoretical multidimensional value model Culture Value Sources Consumer Value Functional Conditional Emotional Social Quality Monetary Esteem Ethnocentrism Animosity Consumer Satisfaction
  • 7. www.mrnair.com
    • Consumer Value:
    • “ personal perception” (Woodall, 2003),
    • “ value in use” (Vargo and Lusch, 2004),
    • “ interactive relativistic preference experience” (Holbrook, 1999)
    • “ value created when product consumed ” (Gronroos, 2006)
    • “ value not only monetary but also emotional ” (Gallarza and Saura, 2006, Petrick, 2002, Oh, 1999, Richins, 1994).
    Culture : The set of values, conventions, or social practices associated with a particular field, activity, or societal characteristic (Merriam Webster Dictionary) Definitions
  • 8. 1980’s consumer driven movement Tellis&Gaeth, 1990 Heskett et al., 1997 Zeithaml, 1988 Oh,1999 Richins,1994 Petrick, 2002 Gronroos, 2006 Gallarza & Saura, 2006 Vargo & Lusch, 2004 Woodall,2003 Bradley&Wood, 1994 Kotler,1999 Two Schools of Thought Consumer Value is unidimensional Consumer Value is multidimensional Consumer Value Dimensions
  • 9. Functional Conditional Social Emotional Epistemic Quality Price Social Monetary Reputation Acquisition Transaction Efficiency Social Value Play Aesthetics Relaxation Gift Esteem Spiritual Ethical Five Sheth et al.,(1991) Eight Holbrook,(1999) Four Sweeney,(2001) Five Petrick,(2002) Two Al-sabbahy et al.,(2004) Eight Sparks,(2008) Three Lee et al.,(2007) Six Gallarza and Gil-Saura,(2006)
  • 10. Research Positioning www.mrnair.com
    • Cross cultural setting.
    • Operationalsing ethnocentric & animosity construct
    • Variance in consumer satisfaction.
    Holbrook’s eight dimensional value Paradigm (1999) Gallarza (2006) Holbrook (2009) Spark’s Value Paradigm (2008) Identified knowledge gap Extension of knowledge B2C value application (service context) Consumer Satisfaction
  • 11. www.mrnair.com Consumer Value Satisfaction Holbrook (1999) Sparks (2008) Gallarza (2006) Consumer Value Satisfaction Research Postulations and Questions Holbrook (2009) Efficiency Excellence Play Aesthetics Status Esteem Ethics Spirituality Efficiency Excellence Play Aesthetics Esteem Satisfaction Holbrook’s Eight Dimensional Value Paradigm
  • 12. Hypothesis:
      • H1: Value for consumers is multidimensional .
      • H2: Set of value dimensions will predict variance in consumer satisfaction and will display significant and positive correlation with it.
        • If so,
        • H2a: Enhancing consumer value and emphasis of value delivered will have a positive effect on consumer satisfaction.
  • 13. Research Questions
      • What are the different consumer value sources within a cross-cultural context ? What are their determinants?
      • Can the value sources be operationalised within a wider context? How will the determinants influence this?
        • To examine correlates between the various value sources and develop a conceptual model elaborating the relationship between the key sources.
      • 3. How will this affect customer satisfaction ? What are its implications on international business?
        • To test the proposed model for fit, and establish relational intensity between various value constructs and explain their impact on consumer satisfaction.
    • Initial in-depth descriptive literature review (domestic & country specific).
    • Initial data collection; Qualitative research (interviews, focus groups) to evaluate:
      • Construct equivalence (functional, conceptual & category) (Kumar,2000; Schwarz, 2003).
      • Measurement equivalence (calibration, translation & metric) (Craig & Douglas, 2000; Sekaran, 1983)
      • Data collection equivalence (sampling frame comparability, data collection procedure & sample comparability) (Kumar, 2000).
    • 3. Post data collection assessment of
      • Construct equivalence using multigroup CFA.
      • Measurement equivalence using multigroup SEM
    • 4. Scale development (items) using the data collected.
    • 5. Main data collection.
      • Survey questionnaire (scales assessed post measurement equivalence )
    • 6. Quantitative analysis (SPSS)
      • Multivariate and bivariate analysis
    • 7. Testing for model fit (Hansen et al., 2008) using SEM software (AMOS) .
      • Confirmatory Factor analysis will be carried out. CFA indices to test the overall fit of the conceptual value model.
  • 15. Venue chosen using Hofstede’s Cultural Dimensions (1980, 2001) www.mrnair.com Power Distance Index (PDI): UK 35, India 77, China 80 Individualism (IDV): UK 89, India 48, China 20 Masculinity (MAS): UK 66, India 56, China 66 Uncertainty Avoidance Index (UAI): UK 35, India 40, China 30 Long Term Orientation (LTO): UK 25, India 61, China 118
  • 16. Cross-cultural Data Analysis www.mrnair.com London Mumbai Beijing Ethonocentrism & Animosity Satisfaction Satisfaction Satisfaction Consumer Value Ethonocentrism & Animosity Ethonocentrism & Animosity Consumer Value Consumer Value Determinants
    • Identify and measure current variables unique to consumer value within a cross cultural context .
    • Development of measurement scales as well as validating developed scales used in previous studies.
    • Operationalise social and altruistic value sources and develop a value model with a broader application .
    • Enable International companies to devise more consumer centric strategies with in an international setting.
    • Improving overall service to consumers .
  • 18. Thank you www.mrnair.com