Consumer behavior: Assignment

Added on - Dec 2020

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CONSUMER
BEHAVIOUR
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
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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
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