cultural differences and their effect on consumer behavior
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Te Florida State University DigiNole Commons
Electronic eses, Treatises and Dissertations e Graduate School
4-10-2008
Cultural Di erences and Teir E ect on ConsumerBehavior Ahmad Abdullah Alkhalaf
Florida State University
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Recommended Citation Alkhalaf, Ahmad Abdullah, "Cultural Di erences and eir E ect on Consumer Behavior" (2008). Electronic eses, Treatises and Dissertations.Paper 168.
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FLORIDA STATE UNIVERSITY
COLLEGE OF COMMUNICATION
CULTURAL DIFFERENCES AND THEIR EFFECT ON
CONSUMER BEHAVIOR
By
AHMAD ABDULLAH ALKHALAF
A Thesis submitted to theDepartment of Communication
in partial fulfillment of therequirements for the degree of
Masters of Science
Degree Awarded:
Spring Semester, 2008
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The members of the Committee approve the thesis of Ahmad Abdullah Alkhalafdefended on April 10, 2008 .
________________________________________ Steven McClung
Professor Directing Thesis
________________________________________Stephen D. McDowell
Committee Member
________________________________________Philip J. Grise
Committee Member
Approved:
________________________________
Stephen D. McDowell, Chair, Department of Communication
________________________________
John K. Mayo, Dean, College of Communication
The Office of Graduate Studies has verified and approved the above named
committee members.
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ACKNOWLEDGEMENTS
It is hard to express my gratitude to my Masters supervisor, Dr. Steven
McClung, for his continues encouragement, enthusiasm, sound advice, and inspiratio
until the emergence of this research as such.
I would also like to thank Dr. Stephen McDowell for his support and beautiful
spirit, which were evident not only during the period of this study, but since the first
day I was enrolled as graduate student in the Department of Communication.
My thanks extend also to Dr. Philip Grise, the man with the permanent smile,
whose philosophy makes me stand helpless but only listen to him with all senses.
Thanks for all the information provided by him during my masters study and for all
the encouragement.
I would like to thank my wife and dearest friend Alhanof Alamro for hercontinuing support at all levels, including that of academic life. I am also pleased to
extend my thanks to my wifes cousin Mrs. Raghda Alamro for her extraordinary
enthusiasm in stimulating and following-up sample study.
Finally and most importantly, infinite thanks to my mother and my father for
every single thing. To them, I dedicate this work.
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TABLE OF CONTENTS
LIST OF TABLES .................................. v
LIST OF FIGURES . vi
ABSTRACT vii
INTRODUCTION.............................................................................................1
LITERATURE REVIEW...................................................................................2
The Market Environment..........................................................................2Cultures And Purchasing Decision Making ..............................................4Product Features And Valuable Items.....................................................11
RESEARCH PURPOSE ..................................................................................13
RESEARCH QUESTIONS..............................................................................13
SURVEY METHODOLOGY..........................................................................13
SAMPLING AND DATA COLLECTION.......................................................15
RESULTS........................................................................................................16
DEMOGRAPHICS..........................................................................................16
DISCUSSION..................................................................................................33
LIMITATIONS ...............................................................................................38
FUTURE STUDIES.........................................................................................39
APPENDICES.................................................................................................40
REFERENCES................................................................................................49BIOGRAPHICAL SKETCH............................................................................51
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LIST OF TABLES
Table 1: The four major studies of culture... 6
Table 2: Hofstede's classification of cultures (1983) .. 8
Table 3: Tools create product value for the user.. 12
Table 4: Tools create product value for the buyer... 12
Table 5: Tools create product value for financier 12
Table 6: Ethnicities groups of the sample 16
Table 7: Distribution of gender among the sample.. 17
Table 8: Distribution of marital status among the sample... 17
Table 9: Distribution of age among the sample... 18
Table 10: Distribution of religions among the sample. 18
Table 11: Distribution of education level among the sample... 19
Table 12: Distribution of current status among the sample. 19
Table 13: Statistics for RQ1. 22
Table 14: Independent sample T test for RQ1. 23
Table 15: Statistics for RQ2. 26Table 16: Independent sample T test for RQ2. 27
Table 17: Statistics for RQ3. 28
Table 18: Independent sample T test for RQ3. 29
Table 19: Participants ranking of characteristics urge them to buy a product. 30
Table 20: Arabs Vs. non Arabs ranking of elements make products valuable 31
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LIST OF FIGURES
Figure 1: Arabs ranking of elements that make products valuable . 32
Figure 2: Non Arabs ranking of elements that make products valuable . 32
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ABSTRACT
This study aimed to 1) uncover the participants attitudes when a purchasingdecision touches any element of their culture, 2) assess consumers view on marketers interms of consideration of their needs and cultural backgrounds, 3) identify thecommonalities among the participants purchasing decision-making processes andconsuming habits across cultures, and 4) indicate the features that would urge consumersto buy a certain product and the factors that would make a product valuable. The samplewas comprised of two groups, Arabs and non-Arabs (i.e. Saudi citizens and US citizens.)The survey was conducted from February 01, 2008 through March 07, 2008 and yielded453 participants.
Significant differences were found between the two groups when buying a productthat doesnt adhere to four out of six elements of culture. Both groups showed lowsatisfaction towards marketers consideration of their cultural backgrounds. Participantsranking of characteristics that urge them to purchase a certain product put high quality asthe most important feature and money savings next. The ranking of elements that create a perception of a valuable product suggested that Arabs tend to reflect the habit/repeat bathmodel and non-Arabs tend to prioritize the sentimental values of products.
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INTRODUCTION
Each community has its own and different culture that is shaped throughouthundreds of years through a set of major elements known as values, norms, ideologies,
customs, social classes, and traditions. The constant interaction between any society andthe individuals belonging to it leads to a sort of formation of consumers preferences and behaviors that are supposed to be in compliance with the core values of the society.
The purpose of this study is to understand how cultures affect consumers behavior in different aspects and to uncover the factors that accompany consumersdecision-making processes in different cultures.
Integrating the main internal and external factors that are related to the study, fiveresearch questions were developed in a self-administered questionnaire form to findlogical answers and tested explanations to a myriad of aspects from the consumer's perspectives. These five research questions were as follows:
RQ1: What elements of culture have the strongest effect on consumer behavior?
RQ2: How do participating consumers from different cultures view marketersawareness of their needs, cultural backgrounds, and purchasing habits? RQ3: What are the commonalities with the purchasing decision-making and consuminghabits across different cultures?
RQ4: What product characteristics urge consumers to purchase a certain product?RQ5: What elements create a perception of a valuable product from different cultural perspectives?
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LITERATURE REVIEW
As the study focuses on several aspects related to cultural differences and theireffect on consumer behavior and purchasing decision, literatures on the market
environment, purchasing decision making, and product features as perceived byconsumers were viewed to help to understand how and to what extent could cultureelements and culture differences influence the consumers view of markets, marketers, products, and the decision-making processes.
The market environment
The market environment and its surroundings or what's known as environmentalcharacteristics of the market or context market constitute an important factor in steering
consumers behavior and the way consumers make their purchasing decisions. Accordinto Abu Gahaf (2003), those market surroundings could be captured through the followinforces:
The first force is the economic environment that affects consumer behavior andcan be detected by observing three basic mechanisms:! The increase or decrease of the financial income of the family either increases its
purchasing amount of goods and services or decreases it.
! The escalating degree of optimism or pessimism about the future of the countrywhere one lives lead to either a reduction or raise in consumer purchases of goods anservices.
! Conditions like booming, busting, and recovery, or what is known as the businesscycle would have an effect on purchasing habits. When the economy is in a national prosperity, the unemployment rate would decline, and the volume of productionwould increase, which reassures consumers with the required financial resources forimmediate spending.
The second force that is related to the market environment and plays an importantrole in steering consumers behavior is the governmental policies that are stronglyinfluenced by the political status of any country. These government policies couldinclude the fiscal, monetary, and public policies that might be reflected in many aspectssuch as the following:
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! Fiscal and monetary policy: The government can affect consumer behavior and theoverall market through taxes or by raising interest rates on loans.
! The government can also affect consumer behavior through restricting choices by
imposing additional costs or high fines aimed at consumers protection, or rationalizetheir behavior.
! Controlling procurement processes, payment methods, or imposing ceilings for theacquisition of certain goods would affect consumer behavior and the decision making processes.
! Prohibiting deceptive or certain types of advertisements influence the overall marketand consumer behavior.
! A government can also influence consumer behavior through providing theinfrastructure services that facilitate purchasing processes.
Technology is the third force of the market environment. It has an obvious andstrong role that could influence consumers behavior and the overall market directly andindirectly. The effect of technology can be seen through the different applications it provides to enhance and develop commodities, distribution, and consumption of goodsand services that are produced. Moreover, the impact of technological progress onconsumer behavior and the overall national economy can be observed through several
different aspects including, for example:! Changing the flow of information methods about the market and available
alternatives and chances.! Providing new and improved goods and services.! Providing automation and self-operating machines to make purchasing more flexible! Making stereotypes goods more profitable (Abu Gahaf, 2003).
The overall economic situation where the consumer is located and the consumers
financial, social, educational, geographical status, all play strong roles in creating theconsumers perspective, judgment, and, ultimately, in making a purchasing decision andreacting to products or services.
All these aforementioned factors are some of the components that make up theconsumers culture. The researcher will elaborate on other aspects that shape consumers
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behavior in different cultures and how they build consumers perception toward productand their characteristics.
Cultures and Purchasing Decision Making
As noted by Turely and LeBlanc (1993), consumer behavior is an extremelycomplex process, which eventually leads to a much more complex decision-making process. This perspective presents buying behavior or purchasing decision making as a problem-solving model in which consumers go through a number of decision processes(Mowen, 1988).
Mercer (1996) believes that the awareness, interest, understanding, attitude, purchase, and post-purchase (AIUAPR) model is the most practical and simple one toapply in most cases that are related to buying behavior because it reflects directly theconsumers decision-making process. As suggested by this model, the process does notstart until consumers become aware of the existence of a product, and that awarenessdoes not occur until a particular message about a specific product or service reaches theconsumers and gains their attention.
Kardes (2001) suggests several ways to gain the consumers attention such asdesigning salient or vivid ads or ads that could put them in a good mood. However, in
order to continue the process, the conveyed messages in these ads must be of interest tothe consumers and capable of convincing them after they understand it. This is whymarketers adopt and implement several types of persuasive techniques when they designtheir messages to consumers, trying to modify an individual's perspective by changing thinterests, knowledge, and beliefs that lie beneath that perspective (Miller, 1980.)Afterward, a specific positive attitude will be created.
After consumers understand the message by linking it to their need and form a positive attitude toward a product or service, the purchasing decision will take place atsome point depending on the occurrence of the need. However, after the consumer purchases the product for the first time, the process could stop and will not occur againfor a certain product, or it could happen again depending on the consumers experienceand how satisfactory it was. That is known as the repeat purchase step in Mercers (1996AIUPR model.
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Engel et al., (1997) suggest that the consumers purchase decision making processgoes through five stages. Namely these stages are 1) problem recognition, 2) informationsearch, 3) alternatives evaluation, 4) purchase decision, and 5) post-purchase evaluation.
Although these steps and models are straight forward, an important and essentialfactor that strongly affects the final outcomes of buying decision making and cannot beisolated or ignored is the difference of cultures.
To understand the role culture plays in forming consumer behavior and purchasing decision making, it is imperative to look at some of the definitions that have been documented and acknowledged by experts in the field. Kroeber and Kluckhohn(1952) recognized more than 160 definitions of culture.
As described by Doney et al., (1998), a myriad of different definitions of culturefrom the perspective of several scientific fields such as sociology, anthropology, psychology, and communication had been suggested. An example of recognizabledefinitions of culture is one written by Hofstede (1984), when he defined culture as "thecollective programming of the mind that distinguishes the members of one group orcategory of people from another (p.21). According to Hofstede (2001), the mind standfor the head, heart, and hands - that is, for thinking, feeling, and acting, withconsequences for beliefs, attitudes, and skills (p.10). Brodbeck et al., (2000) contribute
to Hofstede's definition by explaining that the programming of the mind is composed of frequently adopted set of beliefs and values that define the shoulds and the musts oflife for those who adopt them.
In his review of Marieke de Mooijs book Consumer Behavior and Culture,Lukosius (2004) states that Mooij believes that culture and consumer behavior are closeltied together and "untying the rope" is an almost impossible task.
As noted by Raju (1995), consumer perception, consumer loyalty, and attitudes
towards marketing/consumerism are the main dimensions of buying behavior that arecritical and important to marketers when it comes to dealing with different cultures. Aconsumers perception of a certain product that is provided by a certain company mightvary completely from one country to another and among cultures.
In a distinguished effort, Samli (1995) shed light on four of the most importantstudies that have extensively examined the subject of culture and made substantial
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progress towards a deeper understanding of the relationship between it and consumer behavior. According to Samli (1995), the intellectual property of those four studies aredue to Riesman, Hall, Brislin, and Hofstede and was summarized by him as shown in
Table 1.As cited in Samli (1995), Riesman has modelled three types of people and three
types of behavior to illustrate different cultures. The first type represents the inner-directed people who are self-motivated, individualistic, and self-reliant when it comes tosearching for information about products or items they want to consume. The second typrepresents those individuals who are usually influenced by others when it comes tomaking purchasing decision. The third type represents those who rely strongly on the past, traditions, and their habits when they are to make their purchasing decision.
Table 1: The four major studies of culture
Key
Investigator
Classification or Key
FactorsPremises Implications
Riesman
1953
Inner directedOther directedTradition directed
There are different culturalgroups with differentorientations.
Consumers will behaveconservatively in traditionoriented, more individualistic ininner directed, and beinfluenced by social factors inother directed.
Hall
1976
High contextLow context
High context societiesemphasize human interaction,unwritten and casualcommunication, andintegration.Low context societiesemphasize just the opposite.
Consumers are more influenced by others in high contextsocieties and are moreinfluenced by mass media inlow context societies.
Brislin
1993
IndividualisticCollectivistic
In individualistic societies people are more independent.In collectivistic societies peopleare influenced by others.
Consumers in individualisticsocieties are more influenced bymass media and consumerinformation. In collectivisticsocieties, certain others are veryimportant in consumer decision.
Hofstede
1983
Individualism and
collectivism,uncertainty avoidance, power distance, andmasculinity /femininityclassifications.
Behaviors differ significantly
on the basis of any and all fourof these dimensions.
Consumers, avoiding
uncertainty, considering powerdistance, and paying attention togender will influencesubstantially different marketing practices than their counterpartsin different cultures.
Source: Samli, A. C. (1995). International Consumer Behavior: Its Impact On Marketing StrategyDevelopment. Westport, CT: Quorum Books.
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On the other hand, Halls study of culture was cited in Samli (1995) whodescribed it as a widely-used classification which divides culture into two main parts,high context and low context. In the high-context culture, consumers rely heavily on
interpersonal communications and are influenced by others, like friends, more than anyformal efforts or documented presentations or messages. However, in low contextculture, consumers depend on written materials and mass media.
Brislin (1993) came up with the third major classification of culture. He putforward two types of cultures. The first is collectivistic culture where people who belongto it are strongly influenced by others more than mass media or even themselves whenthey are to make their purchasing decision. Meanwhile, the second type is individualisticculture where people are more influenced by media when they make their purchasingdecision.
Hofstede (1983) used four different classifications to group cultures and peoplewho assimilate them on the basis of five factors as shown in Table 2. Hofstede'sclassification of cultures can be used for predicting consumer behavior and achieving proper design of marketing practices in different cultural environments quite effectively.
Grant & Steven (2006) state that many aspects influence purchasing behavioursuch as social (culture, sub-culture, social class, reference groups, and family),
technological, political, economic, and personal factors (motivation, personality, self-image, perception, learning, beliefs, and attitudes.)
While customers in China perceive products made in America positively(Zimmerman, 1996), some customers in some Middle East countries perceive thisoppositely. Johnson and Johnson (1993) noticed as well that Eastern Germans do notvalue the country of origin of expensive products as importantly as the Western Germansdo. In terms of price and quality relation, Raju (1995) believes that while a positive
relationship between price and quality exists in most cultures, the high inflation indeveloping countries forces consumers to disregard the price and search for anotherattribute to evaluate quality.
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Table 2: Hofstede's classification of cultures (1983)
CultureGroups
Factors
Individualism VS.collectivism Power distance Uncertainty avoidance Gender
Information
In individualisticsociety,information issought and perceived by theindividual. Incollectivisticcircumstances,information isshared by the group
Search for and use ofinformation lead inthe direction of:Enhancing power incountries where power distances arelarge, andeliminatinginequalities in small power distancescountries
In countries whereuncertainty avoidance isstrong, informationrelating to uncertaintyreduction is critical
Informationdisseminationformatted forgender differencesis likely to beeffective
PurchaseBehavior
For individualisticsocieties, internal
motivation; forcollectivisticsocieties, externalmotivation
Inequals are treatedunequally whereas
unequals are treatedequally.
Purchase behavior relieson external assistance in
risk aversive societies.Purchase behavior ismore self-reliant in mostweak, uncertainty-avoiding countries
Sex roles mademore prominent or
somewhat reduced.Products that aresex-role driven,versus productsthat are sexual, are purchased
Affinity to
new Ideas,
new products,
and new
services
Individualisticsocieties ideas aregained byindividual search.In collectivisticsocieties, ideascome from thegroup
New ideas may beused to enhance power gaps or may be used to eliminate power gaps.
In risk-diversionsocieties, affinity to newideas are in the areas ofrisk reduction
Masculinesocieties- morereliance on self-sought ideas.Feminine societies- more reliance oninteractiveinfluences
Values
Values related toindividual or thegroup is prevalentdepending upon thetwo ends of thespectrum
Enhancing powerversus disseminating power are to be usedequally.
For the societies whereuncertainty avoidance isimportant, values are to be reinforced
Societies withmore male orfemale leanings areto be treatedaccordingly
Consumption
Patterns
ConsumptionPatterns areinfluenced by personalizedcognitive effects.Decisions areinternal inindividualisticsocieties.
Unequalsconsumption patterns are unequaland treated as such.Other inequality may be partiallyeliminated
Consumption patterns aregeared to risk avoidance;consumption patterns areriskier
Consumption patterns mayfavour males orfemales.Consumption patterns mayfavour either sex.
Source: Samli, A. C. (1995). International Consumer Behavior: Its Impact On Marketing Strategy DevelopmenWestport, CT: Quorum Books.
Cultural influence in Turkey can be observed as consumers rely on word of mouthcommunication to evaluate quality more than price. The traditional norms in many
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Middle Eastern countries are not in agreement with the materialistic values that areemphasized by companies in Western countries, which makes it very difficult for thesecompanies to use the same values if they want to penetrate those markets.
Suleiman (2000) believes that a society's values, beliefs, customs, and traditions(culture elements) structure the individuals purchasing and consumption behavior bydominating the following three aspects:
Firstly, it determines the structure and philosophy of consumption: the culture ofthe community molds the philosophy and the layout of its members consumption ofgoods through the values and beliefs associated with the culture itself. For instance, the philosophy of consumption in Western societies is centered on well-being and glorifiesenjoying life, while in Eastern communities, the consumption philosophy reduces theexaggeration of enjoying life and demands individuals to maintain a balance between the physical and spiritual aspects of life.
Suleiman (2000) describes how local social habits affect consumption patterns ofindividuals in Saudi Arabia in several ways such as:! Going to malls or shopping centers is the number 1 recreational activity for the Saudi
woman who loves shopping and habitually buys something every time she goesshopping.
! Wedding ceremonies are one of the most widespread activities in the Kingdom. Onaverage, Saudis go to ten wedding ceremonies each year and the minimum that amiddle-class woman spends to buy a new dress to attend the wedding is $400, as welas taking valuable gifts for the bride.
! People prefer to buy children's wear that is imported from Italy or Spain. Nevertheless, the clothes that are imported from Asian countries are of poor quality itheir perception.
Secondly, social habits determine the sort of products to be sold within societiessuch as:! Islamic culture forbids the consumption and the exchange of certain foodstuffs like
pork or liquor.! Hindu culture prohibits the slaughter or eating of beef.
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Thirdly, social habits identify the reasons of purchasing: Consumers buy productsaccording to the culture of their communities for reasons including:! They believe that the purchased good or service will meet their need and will perform
perfectly.! They purchase and consume certain products for their symbolic meaning. An exampl
of this could be seen in the correlation between purchasing and consuming certaintypes of foods during national events and religious holidays such as beef, sheep, andcamels during the Eid Al-Adha in Muslim nations or turkeys during the Thanksgivingcelebration on the last Thursday of November in the United States of America.
Another important cultural aspect that strongly influences decision making is thesocial class versus lifestyle variable (Raju, 1995.) While the middle class in developingcountries is known to be very traditional and the upper class more westernized mainly invalues and consumption patterns, the type of products that are consumed differ from oneclass to another. That occurs as a result of what types of products are culturally known toresemble each class and become a status symbol. Abu Gahaf (2003) believes also that thrules and standards governing the conduct of individuals belonging to a certain socialclass affect the types and prices of goods and services they buy.
Language and the way or direction people read written scripts is also another
component of culture that has its own influence on consumer behavior. Baker and Abu-Ismail (1993) provide an example of one marketer who tried to promote his firm'sdetergent in a Middle-Eastern country. They mentioned that advertising for the detergenfeatured dirty clothes piled on the left and clean clothes stacked on the right. Readingright to left, as consumers in the Middle-East frequently do, the message was clear: soapsoiled the clothes (p.42).
A study of Japanese and Chinese consumers found that the Japanese are more
right-brain oriented and the Chinese are more left-brain oriented than the Americanconsumers (Jacobs et al., 1993). This indicates that emotional ads would appeal more tothe Japanese while factual ads would best fit the Chinese.
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Product Features and Valuable Items
Many researchers devoted their efforts to study the relations between productfeatures and quality evaluation (Holbrook and Corfman, 1985; Nowlis and Simonson,
1996), price and product features (Hauser and Simmie, 1981; Yoon, 1991), and qualityevaluation and price (e.g. Lambert, 1980; Shugan, 1985.) However, no empirical workhas yet been reported (Eunsang and Valerie K., 1990.)
By the beginning of the 21st century, Brownstein (2001) suggests that in order toreach a full understanding of consumer behavior towards any group of products, it isimportant to know how the individual consumer perceives product features. Productfeatures correlate to each other at complex and important levels, both in a positivistmanner (Fishbein, 1967) and an interpretivist logic (Holbrook and Hirschman, 1982.)Therefore, perceived product features are highly complex units because they have fromthe consumers perspective a rich internal order that is hierarchically structured.
On the other hand, the term valuable refers to any luxury item that is of large physical size and high price or of only high price like laptops or sports cars. In brief,valuable items could refer from a consumer perspective to any expensive thing. Howevean item that is considered expensive to someone or to a group of people might beconsidered less expensive to other persons or other groups of people.
Considering a product or service either expensive or inexpensive and valuable orvalueless, and the type of response that a consumer holds toward a product is formed byseveral variables including personal (internal) or situational (external) variables or aninteraction of both (Kardes F. 2001), and also by the sort of judgment that a consumer hashaped towards that product as a result of the cognitive continuum (Wyer, 1974.)
The American Heritage Dictionary of the English Language defines the termvaluable as having considerable monetary or material value for use or exchange. It als
defines it as something of great importance, use, or service: valuable information;valuable advice, and having admirable or esteemed qualities or characteristics: avaluable friend.
Abu Gahaf (2003) states that effectiveness and efficiency of products are the maintwo dimensions that are found to be associated directly to either considering productsvaluable or valueless, and in an outstanding effort, he categorizes into three types the
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tools or features that create value for goods from the consumers perspectives inaccordance with the roles played by the consumer as follows:
First, tools to create value for products from the user viewpoint are divided into
three main areas as shown in Table 3.
Table 3: Tools create product value from the user perspective
Performance
(Economic value)
Social
(Social value)
Sentimental
(Sentimental value)
! Level of quality.! Innovation! Meeting the demand for a
large scale. Guarantees and credit.
! Exhaustive price! Supply / available quantity.
Mental picture of thedeclaration of a commodity.
Products ability to control theemotional benefits that are perceived by others.
Abu Gahaf, Abdulsalam. (2003). Building Marketing Skills, Casablanca University.
Second, tools to create value for products from the standpoint of the buyer asshown in Table 4.
Table 4: Tools create product value from the buyer perspective
Services Appropriateness Privacy or personal side
! Readiness, knowledge, andexperience of salesmen.
! Post-purchase support.! Maintenance services.
Product demonstration andusage explanation.
! Appropriateness of dealingand payment methods.
Automatic registration offinancial transactions
Individual attention and respect
Abu Gahaf, Abdulsalam. (2003). Building Marketing Skills, Casablanca University.
Third, tools to create value for products from the point of view of the person whoactually pays the expenses and can be displayed according to three areas, as shown inTable 5.
Table 5: Tools create product value from the financier perspective
Price Security or credit Funding! Low prices as a result of
reduced profit margins. Low prices as a result of
increased productivity or production volume, ormechanization, etc.
! Accepting credit card payments.
Installment payment methods
Leasing and lending
Abu Gahaf, Abdulsalam. (2003). Building Marketing Skills, Casablanca University.
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RESEARCH PURPOSE
The purpose of this study was to understand how cultures affect consumers behavior in different aspects and to uncover the factors that accompany consumers
decision-making processes across cultures.
RESEARCH QUESTIONS
The study focuses on several aspects related to cultural differences and their effecon consumer behavior and purchasing decisions. Therefore, how and to what extent coulcultural elements and cultural differences influence the consumers view of markets,marketers, products, and the decision-making processes were examined through aquestionnaire that was designed to answer the following research questions:
RQ1: What elements of culture have the strongest effect on consumer behavior?RQ2: How do participating consumers from different cultures view marketersawareness of their needs, cultural backgrounds, and purchasing habits? RQ3: What are the commonalities with the purchasing decision-making and consuminghabits across different cultures?
RQ4: What product characteristics urge consumers to purchase a certain product?RQ5: What elements create a perception of a valuable product from different cultural
perspectives?SURVEY METHODOLOGY
The survey was conducted from Feb 01, 2008 through Mar 07, 2008 and yielded453 participants. Self-administered questionnaires were distributed to US citizensincluding those who are currently enrolled in FSU and to Saudi citizens in Saudi Arabiaincluding college students in Riyadh, Saudi Arabia.
The researcher utilized Qualtrics survey software to design, distribute, and collect
data online. The questionnaires comprised six sections.The first section of the questionnaire consisted of four questions. Each question
was based on a five-point Likert scale and aimed to disclose how the participants viewtheir home countries marketing environment.
The second section encompassed seven questions to measure on a five-pointLikert scale the impact of elements of cultures on the participants interaction with
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products they need to purchase. This section was used to uncover the differences amongthe varieties of cultures when a purchasing decision touches any element of culture.
The third section comprised nine questions to measure on a five-point Likert scale
how the participants, as consumers across different cultures, view marketers andmanufacturers in terms of consideration of their needs, cultural backgrounds, andconsumptions habits.
The fourth section consisted of eight questions to identify the commonalities on afive-point Likert scale among the participants purchasing decision-making processes anconsuming habits across different cultures.
The fifth section comprised two questions. The first aimed to indicate in a rankinglist the features that would affect the consumers decision and encourage them to buy acertain product. On the other hand, the second question aimed to rank the factors thatwould make a product valuable from the consumers point of view.
The sixth and last section of the questionnaire was developed to collectdemographic data from participants and was used for dual purposes: creating the sample profile and assessing possible linkages with egalitarianism.
The entire questionnaire was first drafted in English. As the survey sampleconsisted of participants from Saudi Arabia, the questionnaire was translated into Arabic
After the Arabic translation was completed, the back-translation method (Green andWhite, 1976) was used to translate the questionnaire back to English again to eliminate possible discrepancies or dissimilarities.
As an additional quality practice, a pilot test took place to insure clarity and easeand make any necessary modifications prior to starting of the survey and data collection.The pilot test involved a sample of thirty participants that represented equally the samplegroups. After data collection, SPSS software was used to compute and compare data and
then do all necessary analysis of the results.The T- test for independent samples was utilized to compare between the groups
of this study and to compute the significant differences among their responses.
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SAMPLING AND DATA COLLECTION
The researcher has coordinated with the International Center and CommunicationDepartment at Florida State University (FSU) and the Research Center in King Saud
University (KSU) in Riyadh, Saudi Arabia, to assist in distributing the questionnaires ofthis study. As the study participants were made up of two major groups, (i.e. US citizensthat included FSU students and Saudi citizens that included KSU students), the studyadopted a representative convenient sample method. The questionnaire was designed and published online and a link to the survey page was sent to international students at FSU,US citizens including FSU American students, and Saudi citizens including KSU Saudistudents.
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RESULTS
Since this study aimed to uncover a myriad of aspects that are related to culturaldifferences and their effect on consumer behavior, the statistical analyses were conducte
at two levels a total combined sample and Arabs sub-sample versus the non-Arabs subsample. Frequencies and percentages were shown for the scores of the total combinedsample on each research question followed by the result of the appropriate statistical testthat was conducted to address each research question for Arabs as the first sub-sampleversus the non-Arabs as the second sub-sample.
Demographics
As profiled in Table 6 below, about 70% (N=318) of the total sample were ofArabian ethnicity and 30% (N=135) of the total were of non-Arabian ethnicity. The participants who were of Arabian ethnicity consisted of people from Saudi Arabia,Kuwait, the United Arab Emirates, and Bahrain. On the other hand, the individuals ofnon-Arabian ethnicity consisted of people from the United States of America, Korea,China, and Europe.
Table 6: Ethnicity groups of the sample
318 70.2 70.2135 29.8 100.0453 100.0
Arabs Non ArabsTotal
ValidFrequency Percent
CumulativePercent
As shown in Table 7, approximately 53.5% (N=243) of the participants weremales, while females comprised 44% (N=200), and 2.2% (N=10) chose not to answer thi
question. Singles were the biggest group in this study as they represented 56.5% (N=256of the total participants and married individuals came as the second biggest group andrepresented 37.7% (N=171) of the total. The remaining participants were either divorcedwidowed, or did not answer that question as seen in Table 8.
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Table 7: Distribution of gender among the sample
243 53.6 54.9200 44.2 100.0443 97.810 2.2453 100.0
MaleFemaleTotal
Valid
SystemMissingTotal
Frequency PercentCumulative
Percent
Table 8: Distribution of marital status among the sample
171 37.7 38.7256 56.5 96.613 2.9 99.52 .4 100.0
442 97.611 2.4453 100.0
MarriedSingleDivorcedWidowTotal
Valid
SystemMissingTotal
Frequency Percent
Cumulative
Percent
The study found five age groups as seen in Table 9. The largest group was the agegroup between 26 and 35 years old representing about 42.5% (N=192) of the totalsample; the age group under 25 years old was the second biggest group representing41.7% (N=189) of the total. Individuals between 36 and 45 formed 9.1% (N=41) of thetotal sample, and the remaining two age groups were the group of 46- to 55-year olds anthe group of 56-65-year olds who structured 3.3% (N=15) and 1.3% (N=6) of the totalsample respectively.
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Table 9: Distribution of age among the sample
189 41.7 42.7192 42.4 86.041 9.1 95.315 3.3 98.66 1.3 100.0
443 97.810 2.2453 100.0
Under 25 years26-35 Years36-45 Years46-55 Years56-65 YearsTotal
Valid
SystemMissingTotal
Frequency PercentCumulative
Percent
Almost three quarters (N=336) of the participants were Muslims and more than15% (N=70) were Christians. Atheist, Buddhist, Hindu, and Jewish represented otherreligions.
Table 10: Distribution of religions among the sample
70 15.5 15.8
336 74.2 91.96 1.3 93.24 .9 94.12 .4 94.68 1.8 96.416 3.5 100.0442 97.611 2.4453 100.0
Christianity
IslamBuddhismHinduismJudaismAtheistOther, please specifyTotal
Valid
SystemMissingTotal
Frequency PercentCumulative
Percent
In terms of the highest level of education completed by participants as shown inTable 11, about 30% (N=135) had already completed some college where only about25% (N=114) were college graduates. Exactly 19% (N=86) of the total completed somegraduate school and approximately 13% (N=58) earned their graduate degree were only
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9.7% (N=44) and 1.3% (N=6) were high school graduates and had less than high schooldiploma respectively.
Table 11: Distribution of education level among the sample
6 1.3 1.444 9.7 11.3135 29.8 41.8114 25.2 67.586 19.0 86.958 12.8 100.0443 97.810 2.2453 100.0
Less than high schoolHigh school graduateSome collegeCollege graduateSome graduate schoolGraduate degreeTotal
Valid
SystemMissingTotal
Frequency PercentCumulative
Percent
As seen in Table 12, participants who were students at the time the study wasconducted represented more than half of the total sample (N=233) and those who werefull-time employeees structured more than 31% (142) of the total sample. The samplealso covered more than 9% (N=42) who were in between jobs and exactly 4% (N=18) part-timers.
The annual household income of the sample varies in distribution. More than halfof the participants possessed less than $20 thousand annually and slightly less than one
quarter (N=110) earned from $20,000 to $39,999 a year. Slightly less than 11% (N=48)earned from $40,000 to $59,999 annually and only 4.4% (N=20) had an annual incomefrom $60,000 to $79,999. Only 2% (N=9) and 4.2% (N=18) earned from $80,000 to lessthan $100,000 and more than $100,000 correspondingly.
Table 12: Distribution of employment status among the sample
233 51.4 53.1
142 31.3 85.418 4.0 89.54 .9 90.442 9.3 100.0439 96.914 3.1453 100.0
A student
Full time employedPart time employedRetiredIn between jobsTotal
Valid
SystemMissingTotal
Frequency PercentCumulative
Percent
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Since several statements were employed to examine each of the six researchquestions, the findings were presented for every statement in every set of thequestionnaire that would reflect the results of all the six questions of this research. The
data were shown for the two groups for easy comparison and the findings of theconducted statistical test that would reflect the result according to the statements and theobjective of each research question.
RQ1: What elements of culture have the strongest effect on consumer behavior?
The findings corresponding to the first statement of (RQ1) are summarized inTable 13 and 14. The results indicate that there was a significant difference betweenArabs and non-Arabs when it comes to buying a product they need even if it does not
adhere tothe ideology or religion of the community they live in,t (448) = 5.92, p < .0001, equal variances assumed. That is, the average score of Arabs ( M = 2.48, SD =1.67) was significantly different from that of non-Arabs ( M = 3.50, SD = 1.57).
The findings corresponding to the second statement of (RQ1) are summarized inTable 13 and 14. The results indicate that there was a significant difference betweenArabs and non-Arabs when it comes to buying a product they need even if it does notadhere to thenorms of the community they live in,t (287) = 4.34, p < .0001, equal
variances not assumed. That is, the average score of Arabs ( M = 3.21, SD = 1.48) wassignificantly different from that of non-Arabs ( M = 3.81, SD = 1.25).
The findings corresponding to the third statement of (RQ1) are summarized inTable 13 and 14. The results indicate that there was a significant difference betweenArabs and non-Arabs when it comes to buying a product they need even if it does notadhere to thevalues of the community they live in,t (446) = 4.34, p < .0001, equalvariances assumed. That is, the average score of Arabs ( M = 3.21, SD = 1.48) wassignificantly different from that of non-Arabs ( M = 3.81, SD = 1.25).
The findings corresponding to the fourth statement of (RQ1) are summarized inTable 13 and 14. The results indicate that there was a significant difference betweenArabs and non-Arabs when it comes to buying a product they need even if it does notadhere to thecustoms of the community they live in,t (275) = 3.6, p < .0001, equal
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variances not assumed. That is, the average score of Arabs ( M = 3.32, SD = 1.45) wassignificantly different from that of non-Arabs ( M = 3.82, SD = 1.27).
The findings corresponding to the fifth statement of (RQ1) are summarized in
Table 13 and 14. The results show that there was no significant difference between Araband non-Arabs when it comes to buying a product they need even if it does not adhere tothe language of the community they live in,t (445) = .221, p = .826, equal variancesassumed. That is, the average score of Arabs ( M = 4.20, SD = 1.19) was not significantlydifferent from that of non-Arabs ( M = 4.18, SD = 1.13).
The findings corresponding to the sixth statement of (RQ1) are summarized inTable 13 and 14. The results show that there was no significant difference between Araband non-Arabs when it comes to buying a product they need even if it isnot compatiblewith the class of the community they live in,t (446) = .52, p = .959, equal variancesassumed. That is, the average score of Arabs ( M = 3.92, SD = 1.32) was not significantlydifferent from that of non-Arabs ( M = 3.93, SD = 1.24).
The findings corresponding to the seventh statement of (RQ1) are summarized inTable 13 and 14. The results indicate that there was a significant difference betweenArabs and non-Arabs when it comes to buying some thing to assimilate with thecommunity around them,t (305) = 2.5, p = .013, equal variances not assumed. That is,
the average score of Arabs ( M = 3.76, SD = 1.54) was significantly different from that ofnon-Arabs ( M = 3.41, SD = 1.22).
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Table 13: Statistics for RQ1- Elements of cultures that have effect on consumerbehavior
318 2.48 1.699 .095
132 3.50 1.570 .137317 3.21 1.483 .083
132 3.81 1.255 .109
316 3.01 1.463 .082132 3.61 1.424 .124315 3.32 1.451 .082131 3.82 1.274 .111316 4.20 1.194 .067131 4.18 1.133 .099317 3.92 1.320 .074131 3.93 1.242 .108317 3.76 1.547 .087131 3.41 1.221 .107
Ethnicitygroups
Arabs
Non Arabs
Arabs
Non Arabs
Arabs Non ArabsArabs Non ArabsArabs Non ArabsArabs Non ArabsArabs Non Arabs
Statement 1: I would buy a product I need even if it doesnot adhere to the Ideology/Religion of the community I live in
Statement 2: I would buy a product I need even if it doesnot adhere to the Norms of the community I live in
Statement 3: I would buy a product I need even if it doesnot adhere to the Values of the community I live in
Statement 4: I would buy a product I need even if it doesnot adhere to the Customs of the community I live in
Statement 5: I would buy a product I need even if it doesnot adhere to the Language of the community I live in
Statement 6: I would buy a product I need even if it is not compatible with the Class of the community I live in
Statement 7: I would buy some thing to assimilate withcommunity around me
N MeanStd.
DeviationStd. Error
Mean
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Table 14: Independent Samples T-Test for RQ1- Elements of cultures that have effect on consumer behavior
1.599 .207 -5.919 448 .000 -1.019 .172
-6.115 263.585 .000 -1.019 .167
7.443 .007 -4.052 447 .000 -.596 .147
-4.339 287.485 .000 -.596 .137
.000 .992 -3.987 446 .000 -.600 .150
-4.032 251.657 .000 -.600 .149
8.156 .004 -3.436 444 .001 -.501 .146
-3.625 274.961 .000 -.501 .138
.366 .545 .221 445 .826 .027 .122
.225 254.887 .822 .027 .120
.146 .703 -.052 446 .959 -.007 .135
-.053 256.681 .958 -.007 .131
17.494 .000 2.275 446 .023 .345 .152
2.507 304.613 .013 .345 .138
Equal variancesassumed
Equal variancesnot assumed
Equal variancesassumed
Equal variancesnot assumed
Equal variancesassumedEqual variancesnot assumedEqual variancesassumedEqual variancesnot assumedEqual variancesassumedEqual variancesnot assumed
Equal variancesassumedEqual variancesnot assumedEqual variancesassumedEqual variancesnot assumed
Statement 1: I would buy a product I need even if it doe snot adhere to the
Ideology/Religion of thecommunity I live in
Statement 2: I would buy a product I need even if it doe snot adhere to the Norms of thecommunity I live in
Statement 3: I would buy a product I need even if it doe snot adhere to the Values of thecommunity I live in
Statement 4: I would buy a product I need even if it doe snot adhere to the Customs of the community I live in
Statement 5: I would buy a product I need even if it doe snot adhere to the Language of the community I live in
Statement 6: I would buy a product I need even if it is not compatible with the Class of the community I live in
Statement 7: I would buy some thing to assimilate withcommunity around me
F Sig.
Levene's Test for Equality of Variances
t df Sig.
(2-tailed)Mean
DifferenceStd. Error Difference
t-test for Equality of Means
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RQ2: How do participating consumers view marketers awareness of their needs,
cultural backgrounds, and purchasing habits?
The first statement in Table 15 and 16 summarizes the findings corresponding to
one aspect related to (RQ2). The results indicate that there was a significant difference between Arabs and non-Arabs when it comes to their view on marketers in their owncountries and whether they consider their need prior to designing products,t (278) = 4.18,
p < .0001, equal variances not assumed. That is, the average score of Arabs ( M = 2.43,SD = 1.18) was significantly different from that of non-Arabs ( M = 2.89, SD = 1.01).
The second statement in Table 15 and 16 summarizes the findings correspondingto another aspect related to (RQ2). The results indicate that there was a significantdifference between Arabs and non-Arabs when it comes to their view on marketers intheir own countries and whether they consider their cultural background prior todesigning products,t (446) = 2.16, p = .031, equal variances assumed. That is, theaverage score of Arabs ( M = 2.57, SD = 1.14) was significantly different from that ofnon-Arabs ( M = 2.82, SD = 1.09).
The third statement in Table 15 and 16 summarizes the findings corresponding tothe third aspect that was related to (RQ2). The results indicate that there was a significandifference between Arabs and non-Arabs when it comes to their view on marketers in
their own countries and whether they consider their consuming habits when they designcampaigns,t (276) = 2.85, p = .005, equal variances not assumed. That is, the averagescore of Arabs ( M = 3.14, SD = 1.27) was significantly different from that of non-Arabs( M = 3.48, SD = 1.08).
The fourth statement in Table 15 and 16 summarizes the findings correspondingto the forth aspect that was related to (RQ2). The results indicate that there was asignificant difference between Arabs and non-Arabs when it comes to their view on
marketers in their own countries and whether they understand what type of products suitthem best,t (444) = 5.27, p < .0001, equal variances assumed. That is, the average scoreof Arabs ( M = 2.30, SD = 1.07) was significantly different from that of non-Arabs ( M =2.88, SD = 1.00).
The fifth statement in Table 15 and 16 summarizes the findings corresponding tothe fifth aspect that was related to (RQ2). The results indicate that there was a significan
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difference between Arabs and non-Arabs when it comes to their view on whether theircultural background was always regarded by most marketers in their own countries,t (442) = 3.25, p = .001, equal variances assumed. That is, the average score of Arabs ( M =
2.36, SD = 1.09) was significantly different from that of non-Arabs ( M = 2.74, SD =1.18).
The sixth statement in Table 15 and 16 summarizes the findings corresponding tothe sixth aspect that was related to (RQ2). The results indicate that there was nosignificant difference between Arabs and non-Arabs when it comes to their view onwhether their consuming habits was always regarded by most marketers in their owncountries,t (442) = .084, p = .993, equal variances assumed. That is, the average score ofArabs ( M = 2.81, SD = 1.14) was not significantly different from that of non-Arabs ( M =2.82, SD = 1.02).
The seventh statement in Table 15 and 16 summarizes the findings correspondingto the seventh aspect that was related to (RQ2). The results indicate that there was nosignificant difference between Arabs and non-Arabs when it comes to their view onwhether most products provided by marketers in their own countries tended to meet theirrequirements,t (324) = .656, p = .512, equal variances assumed. That is, the averagescore of Arabs ( M = 3.07, SD = 1.14) was not significantly different from that of non-
Arabs ( M = 3.13, SD = .84).The eighth statement in Table 15 and 16 summarizes the findings corresponding
to the eighth aspect that was related to (RQ2). The results indicate that there was nosignificant difference between Arabs and non-Arabs when it comes to whether they believe that most marketers respect consumers cultural background,t (442) = .645, p =.520, equal variances not assumed. That is, the average score of Arabs ( M = 2.53, SD =1.14) was not significantly different from that of non-Arabs ( M = 2.60, SD = 1.10).
The ninth statement in Table 15 and 16 summarizes the findings corresponding tothe last aspect that was related to (RQ2). The results indicate that there was a significantdifference between Arabs and non-Arabs when it comes to whether they believe thatmost marketers in their own countries bow to their consuming habits,t (444) = 4.75, p K^R............
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BIOGRAPHICAL SKETCH
Ahmad Alkhalaf was born in Riyadh and lived in Riyadh, Saudi Arabia, until2006 when he came to the United States. After graduating from King Saud University
in Riyadh, Saudi Arabia, he worked at one of the top 10 companies in his country asgeneral manager for systems support and advisor to human resources vice president.
Mr. Alkhalaf enrolled in the graduate program in the Department ofCommunication in spring 2007. He earned a Masters of Science degree in IntegratedMarketing Communication in 2008. He currently lives in Tallahassee while pursuinghis Doctoral degree in the Department of Communication at Florida State University.