Table of Contents INTRODUCTION..........................................................................................................................1 TASK 1............................................................................................................................................1 A) Analyze difference between British and Chinese consumer behavior by using Hofstede's model...........................................................................................................................................1 B) Marketing mix of British airlines...........................................................................................4 CONCLUSION................................................................................................................................8 REFERENCES................................................................................................................................8
INTRODUCTION Consumer behavior is treated as a vital aspect in field of marketing. Basically, it is an observational activity which is conducted to study the response of customers towards a new service or product. It is concerned with the purchasing decision of consumers in accordance with their need, demand and affording capability. This report is written in context of British airways which is largest airline in UK, created in 1974. It is the largest airline based in UK in terms of international flight, international destination and fleet size (Bamossy and Solomon, 2016). This assignment includes differences between British and Chinese consumer behavior in respect with Hofstede's cultural dimension. It also involves strategies like marketing mix which will help British airways to enhance their service encounters. Along with this, Benefits and opportunities gained from enhanced customer expectation has mentioned. TASK 1 A) Analyse difference between British and Chinese consumer behavior by using Hofstede's model Consumer behavior definespurchasing pattern of individual people or masses to fulfill their needs and demands in accordance with their budget. It involves action that are taken by consumers in marketplace along with motive behind those actions. Theory given by Hofstede statestheframeworkforinter-culturecommunicationandconsumerbehavior.Cultural dimensions given by Hofstede includes aspects like uncertainty avoidance, power distance, individualism-collectivism,indulgence-restraint,longandshorttermorientationand femininity- masculinity (Calder, Isaac and Malthouse, 2016). These dimensions will help British airways in understanding the behavior of consumers in a wider extent. Differences among attitude of people in Britain and china in accordance with Hofstede's culture is mentioned below: Power distance:This dimension emphasize on the fact that all masses within society are not equal. Less powerful people residing in a country when readily accepts about unequal distribution of power, it is defined as power distance. It is based on the extent at which a country values or not the hierarchical relationships. Power distance score of Britain is 35 which is low as compared to the score of china which is 80. This means that inequality and rank social estate among people in UK is considerably low. Citizens in UK expects legal equality and hopes for rational distribution while 1
working under some organisation. They have less restricted laws which results in more risky transactions. PDI score specifies consumer behavior in UK as in-congruent. Due to less inequality among citizens, most of the people have stable income and healthy livelihood. They prefer to purchase good quality products and services. Masses in UK are ready to pay more if facilities given to them are standardized and satisfy their demands. In case of china PDI score is 80 which denotes high inequality among people and they have accepted this difference as their normal heritage. In china, subordinates and superior relationship is based on centralized decision structure. Society in china can be divided on the basis of income where rich people are getting more rich and poor people remains poor (Griskevicius and Kenrick,2013). High class in china prefer luxurious and standardized products and services irrespective of price whereas people from low class prefer products which are affordable and carter their needs. They have a planned budget and buy products in accordance to that only. Individualism and collectivism:This dimension denotes the bond between people of different communities. In individualist society, people shares weak interpersonal relations and feel reluctant while taking responsibility for each others' action. In case of collectivist society, masses share strong interpersonal relation and loyal towards each other. IDV score of UK is 80 which is higher than the average score of western nations. People in UK follows individualistic culture and respect uniqueness over harmony. They like to consider themselves different from rest of the group to which they belong. Due to this individualism, they prefer unique products and services which helps them in differentiating themselves from rest of people. People in UK support innovative ideas and prefer to purchase products which involves innovation (Gruber and Schlegelmilch, 2014). While purchasing commodities they treat their needs and demands as priority and buy products in accordance with that only.In context with British airlines, offers like discount on individual bookings will help them to expand their sales and profit. By contracts, IDV score of china is 20 which means people follows their collectivist culture. People in china treats themselves aspart of group and purchase products while considering the needs and demands of other people also. This purchasing behavior of Chinese results in strong relationship and they prefer those products and services which serves their needs as well as people which are connected with them. Masculinity Vs femininity:This dimension state the roles of males and females in a particular country. High masculinity means people focus on heroism, competition and expect 2
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