Professional Documents
Culture Documents
Cross-Cultural Differences in
Cross-Cultural Differences in
Cross-cultural differences
in marketing
communications
Business
Administration
Master’s Thesis
30 ECTS
© The Authors
Karlstad, 2013
First, we would like to thank our supervisor Prof. Bo Rundh for his time,
extraordinary care, support and constructive inputs and remarks.
Furthermore, we would like to thank the respondents, who took part in our
survey, which would not be possible to conduct without them.
Last but not least, we would like to thank our families and friends for their
support in all directions.
ABSTRACT
Based on the relevant theory and secondary research findings four hypotheses
were developed to address the research question “Does cross-cultural
differences within Central and Eastern Europe affect the marketing
communication mix in a specific industry?”.
The study results provided that cultural differences exist not only between
different regions, but also found within the same geographic region. When
considered from marketing perspective, they are significant enough to influence
customers’ preferences and perceptions of different aspects of marketing
communication mix.
The results obtained are specific for a particular case, so they can not be
applied to some other countries. However, when it comes to marketing
communication perceptions, the results can be used as guidelines by other
industries then tourism.
LIST OF ABBREVIATIONS..........................................................................1
1. Introduction..............................................................................................2
1.1. Problem identification................................................................................................ 2
1.2. Purpose of the study.................................................................................................. 4
2. Theoretical framework.............................................................................5
2.1. Marketing strategy and strategic marketing planning................................................6
2.2. Integrated marketing communications strategy........................................................9
2.3. Integrated marketing communications mix................................................................9
2.3.1. Primary instruments......................................................................................... 10
2.3.2. Secondary and collective instruments............................................................11
2.3.3. Selected tools and media: in-house and/or outsourced...................................11
2.3.4. E-marketing reliance effects.............................................................................11
2.3.5. Marketing communications in tourism industry...............................................13
2.4. Cross-cultural marketing.......................................................................................... 16
2.5. Primary integrated marketing communications process: perception management
19
2.6. Primary integrated marketing communications vehicle: branding...........................20
2.7. Terminal integrated marketing communications aim...............................................20
3. Research methodology...........................................................................22
3.1. Research strategy..................................................................................................... 22
3.2. Research design....................................................................................................... 22
3.3. Data collection design.............................................................................................. 23
3.3.1. Secondary data description..............................................................................24
3.3.2. Primary data description.................................................................................. 24
3.3.3. Developing the sampling plan..........................................................................24
3.3.4. Elaboration of the questionnaire......................................................................25
3.3.5. Designing the survey questionnaire.................................................................26
3.3.6. Primary data collection....................................................................................26
4. Findings..................................................................................................30
4.1. Internet penetration................................................................................................ 30
4.2. Economic growth and income distribution..............................................................30
4.3. Outbound tourism of Czech Republic and Ukraine..................................................31
4.4. Marketing communications.....................................................................................32
4.5. Usage of Internet in tourism....................................................................................32
4.6. Population description............................................................................................ 33
4.7. Marketing communications tools and media..........................................................34
4.7.1. Preferable marketing communications tools..................................................34
4.7.2. Preferable marketing communications media................................................36
4.7.3. Comparison of preferable marketing communications tools and media in Czech Republic
and Ukraine by using independent t-test.............................................................................37
4.8. Cultural issue in marketing perspective...................................................................39
4.9. Patterns of using Internet for online purchasing.....................................................41
4.9.1. Patterns of Internet usage...............................................................................41
4.9.2. Perception about online purchasing................................................................42
4.9.3. Comparison of Czech and Ukrainian perceptions about online purchasing....43
4.10. Internet as the primary source of information when looking for a holiday.........44
4.11. Spending on holidays........................................................................................... 45
4.12. Business-consumer relationships........................................................................45
4.12.1. Purchasing patterns of Czech respondents......................................................46
4.12.2. Purchasing patterns of Ukrainians respondents..............................................46
4.12.3. Comparison of attitudes to the BCR by using independent t-test...................47
5. Analysis..................................................................................................49
6. Discussion...............................................................................................54
7. Conclusion..............................................................................................58
8. References...............................................................................................61
9. APPENDICES........................................................................................66
1
1. Introduction
Therefore, two main fields to be covered in the current paper are marketing
communications activities and cross-cultural issues, and if/how they are
interrelated within a specific industry and a specific market, chosen and defined
by authors.
The literature examined (Usunier & Lee 2009, Fill Chris 2006, Oosthuizen
2004, Orth et al. 2007) suggests that developing the Marketing Communications
Mix (MCM) requires taking into consideration ethnicity and cross-cultural
differences of the regions of interest. However, existing research pays little
attention to how consumers in different countries respond to different aspects of
marketing strategy and appeals of the MCM. There is a dilemma to which
extent the
marketing communications tools and messages should be standardized when
targeting markets internationally (Orth et al. 2007). As there is no more specific
information found on what aspects of MCM are influenced by the culture and
how the perception of MCM differ across countries and to which extent the
MCM should be adjusted or modified, these issues are addressed in this study.
The main object of this study is the importance of cross-cultural issue in the
MCM in Central and Eastern Europe. Steaming from the problem identification
the research question was developed.
“Does cross-cultural differences within Central and Eastern Europe affect the
marketing communications mix in a specific industry?”
Figure 1: The extract from a business-consumer relationship model: The marketing communications
application extended by Cross Cultural Differences (Thrassou & Vrontis 2009)
Based on the theory (Czinkota & Ronkainen 2012, Johansson 2009) stating that
standardization is possible for specific homogeneous marketing segments
worldwide and cultural differences do not need to be taken into consideration,
first hypothesis can be formulated. H1: “When targeting specific
homogeneous segments (especially young professionals, who are wealthier,
appreciate brands, luxury and traveling) marketing communications
adaptation is not required.”
Johansson (2009) mentions, that the globalization together with ICT progress
caused the use of standardized marketing strategy by many global companies.
Marketing managers are now rethinking this approach, realizing that global
marketing strategy and marketing activities need to be adapted to local
conditions. Local consumers´ behaviors, habits and cultural differences need to
be analyzed in order to create the balance (Johansson 2009). The positioning of
the good or service in the minds of the target consumers can differ across
countries due to the environmental factors. To reach the intended position of the
product or service the benefits of the product or service must be communicated
and companies must predict how the particular markets will react to
standardized product (Johansson 2009).
Taking into consideration the mentioned points the application of the global
strategy internationally is workable when companies concentrate on predictable
developed markets or on particularly specific homogenous segments across
different countries. However traditional markets are saturated and experiencing
stagnancy. To maintain competitive position in developed markets companies
need to invest into promotional activities and innovations to target specific
needs of demanding consumers but also look for opportunities in other
developing or emerging markets worldwide (Douglas & Craig 2011). When
entering new developing or emerging markets, the Multinational Enterprises
(MNEs) usually first enter with goods or services appealing to the higher
income class. “In particular, the more affluent members of the middle class,
often successful professionals or entrepreneurs, provide a prime target for
higher-end Western brands in categories such as fashion and watches” (Douglas
& Craig 2011, p. 85). However rising middle and high income class in
developing countries create a large market for goods and services attracting not
only luxury oriented companies. The task for companies entering new
developing markets is to adjust their marketing strategy and adapt their MCM
cross-culturally. According to Douglas and Graig (2011) the current integrated
marketing strategies need to be redesigned and adjusted to the local markets´
needs. For these reasons they introduce a semi-global marketing strategy.
“Factors such as customer interests, taste preference, purchasing patterns, and,
in particular, price sensitivity differ substantially among countries. As a result,
firms must adapt and develop new and different strategies tailored to a region or
country´s unique characteristics. Consequently, the firm´s focus needs to shift
away from global integration,
coordination of strategy, and issues such as global branding to development of
divergent strategies geared to different customer needs, competitors, and market
conditions in different geographic locations” (Douglas & Craig 2011, p. 86).
Following tools and media are considered as appropriate when applying the new
communication model: people, in meanings of leadership and management,
spoke persons, employees or opinion leaders; posters; press, television and radio
including ads & no ads.
Social networks and social media have become emerging phenomena. “Social
network is a communal structure consisting of individuals or organizations
connected with each other through friendship, common interest, commercial
transactions, information exchange, or other types of relationship” (Czinkota &
Ronkainen 2012, p. 548). Continuously an increasing number of companies use
social networks as a part of their marketing strategy due to the efficiency, low-
cost and two-way marketing communications characteristics. Marketing strategy
using social networks can communicate tailored messages to target audiences.
Exploitation of social networks can help the companies to raise brand
awareness, increase market penetration, maintain customer loyalty, create user
advocates, conduct market research, develop word of mouth advertising, create
on-line buzz, drive consumers to company web-sites and generally increase
sales (Czinkota & Ronkainen 2012). Social network´s online platform can serve
as an online word-
of-mouth promotional tool, and should be incorporated into the media strategy.
“Social media are an Internet-based communications medium in which
extensive conversations and interactions take place among people online”
(Czinkota & Ronkainen 2012, p. 552). Social media enable companies to
interact with consumers and consumers can express their needs, wants and
positive as well as negative feedback. Marketers can update consumers on
regular basis and target them with special promotional activities. Social or
Consumer Generated Media (CGM) can have a form of blogs, online bulletin
boards or podcasts. Some marketers are already discovering the power of blogs
and social networking and are trying to reach targeted consumers. However
many companies do not exploit this possibility fully (Czinkota & Ronkainen
2012).
It was decided to concentrate on a tourism industry within the main topic of the
marketing communications due to its scale and dynamics. Tourism industry is
challenged greatly by the rapid development of technology, market
globalization, intensified competition, growth of sustainability and social
responsibility awareness. All these issues resulted in the changes of the ways the
tourism businesses are conducted: application of marketing principles are to the
tourism management, the focus is shifted from a tourism offer (product/service)
to the customer himself, mass communication is replaced by more targeted
almost individual dialogue with customers (Halloway & Robinson 1998, Tsiotsu
& Goldsmith 2012). According to Raju (2009) in a genuine service industry like
tourism, the most essential marketing function found is developing awareness of
an offer (product/service) in minds of current as well as potential customers. A
promotion message needs to be sent via a variety of communication channels
and marketing communication has to be done in a systematic manner
addressing
existing and potential customers. The Internet made it possible for tourism
service providers including hotels, property owners, catering providers, airlines
and others to increase direct communications with their customers at the
decreased costs and overcome such intermediate agents as travel agencies
(Ratten & Tsiotsu 2010).
Marketing Communications Mix for the tourism industry will combine the
same constituents as general theory suggests (tools, means and message), but
their arrangement will differ for every single case even within the industry.
Evolution of the tourists´ behavior gives more inputs for marketing activities
and encourages shifts in general marketing logic. Previously marketing
activities were focused on the offer - tourist products, services or destinations
while currently the customer itself has become a target of all the efforts. New
logic suggests that marketing communications are aimed at retaining existing
customers and building long-term relationships by emphasizing individual
approach, added value, personalization and offering customized concepts
(Williams 2006, Ratten & Tsiotsu 2010).
Oosthuizen (2004) identifies three aspects which facilitate the complex process
of activities within marketing communications: (a) applicability to target
market’s needs and wants, (b) usage of language that a target market
understands, (c) empathy in the sense of finding the most appealing elements,
emotions, symbols, knowledge, idioms, etc. Oosthuizen (2004) incorporated
them into a three-tier core value model, which provides a framework for
marketing communications for different target markets across cultures without
developing separate marketing communications strategies and keeping “the
main strategic threat” for every country. The model (Figure 3) is basically built
on two existing theories: Kurt Lewin’s (1939) field theory and the Rokeach
(1968) value theory. The ranking of values used in the model are based on
consistency of values over time (core values), relation to a certain culture and
society (secondary values) and relation of values to a specific period of time
(peripheral values) (Oosthuizen 2004).
Figure 3: Three-tier value model (Oosthuizen 2004)
Core values are those that remain the same across cultures, learned values vary
from culture to culture according to religion or traditions, but include values
established through universal communications (MTV, Coca-Cola) as well,
peripheral are then temporary and true just for a some period of time or for a
certain group of people. To establish global and universal brands, while building
marketing communications appeals, companies should concentrate on core
values, which create a fundamental meaning understandable worldwide.
Learned values are the most appropriate for localization of communication
appeals, they originate from language, customs, traditions, beliefs or social
systems. Peripheral values have temporary nature and symbolize certain times,
settings and trends. Peripheral values change fast and marketers should revise
and update their marketing messages based on these values. Many companies
though mistakenly use them as a core idea of brand, as if they would be core
values (Oosthuizen 2004).
Thrassou and Vrontis (2009) suggest branding as a main tool for changing
people’s perception. The marketing communications model is based on
consumer relationships and on the fact that consumers´ needs are becoming
intangible wants, which are more vulnerable to marketing strategies. Both of
these bases identify branding as value-adding strategy including elements such
as lifestyle, values, ideas or attitudes (Thrassou & Vrontis 2009). Reid et al.
(2005) state that brand orientation together with market orientation are
necessary for successful implementation of IMC. Consumer Brand Engagement
(CBE), which is identified as “an overarching marketing concept encapsulating
different consumer decision- making dimensions, from brand preference to
brand purchase” (Gambetti et al. 2012, p.1) is currently one of the main focuses
of branding strategies. CBE emphasizes the importance of consumer-brand
relationship and requires long- term strategy aimed at building trust- and
commitment-based consumer-brand relationships. Finally consumers are
playing active role in creating brand values by incorporating their favorite
brands into their daily lives with support of interactive social media and
networks (Gambetti et al. 2012).
Researched theory (Thrassou & Vrontis 2009, Finne & Grönroos 2009, Kotler
et al. 2008, Halloway & Robinson 1998, Tsiotsu & Goldsmith 2012, Williams
2006) emphasizes the current importance of business-consumer relationship and
the fourth hypothesis is formulated. H4: “Business-consumer relationships
are valued by customers as very important aspects of marketing
communications in Central and Eastern Europe.”
3. Research methodology
Hypotheses
Data Revision of
Theory Hypothesis Findings Confirmed or Rejected
Collection Theory
The deductive nature of the research suggests using quantitative research as the
most appropriate when the testing of hypotheses is to be performed.
Quantitative research is therefore an appropriate strategy for this study. It
describes how things are and tries to identify the reasons why they are so. In
addition, quantitative research provides following advantages: (1) it is used as a
tool for the hypotheses examination, (2) it supplies ‘workable data’ that are easy
to analyze, (3) the results provided are more likely to be generalized and used
later on for a similar research,
(4) considering the settings and time limitations of the research, this method is
more likely to provide more responses (Bryman & Bell 2011).
Considering the reliability and validity of this research design, which evaluate
the measures of concepts, following factors must be taken into consideration.
Reliability can be achieved if the obtained results are stable and do not fluctuate
over the time. Internal reliability can be observed as respondents´ answers are
consistent and related. The combination of secondary and primary data is
enhancing the reliability of the research due to the fact that data were gathered
from more than 1 source. Further the use of professional software diminished
the variability and errors during the research. Internal validity is weak when
compared with experimental research, while external is strong when sample is
selected randomly and enables thus generalization (Bryman 2012). In this study
non- random as well as random selection method were used, which could make
the validity questionable. However due to the specific topic and secondary data
analysis, it was possible confidently define the segmentation process and target
group and thus even non-random sample is quite representative and could be
generalized.
Czinkota and Ronkainen (2007) suggest that the general research objective
should be used as a guideline to identify the information required and to build a
general framework for the research. Considering the specificity of the research
question, it was decided that the research will include two stages: secondary and
primary data collection. Secondary data together with the existing theory will
form a background for the hypotheses formulation, while the primary data will
be used to test the hypotheses. Secondary data were gathered during February
2013. The questionnaire was designed by using the theory and the secondary
research findings and afterwards translated into local languages. Primary
research was conducted within March and April 2013.
3.3.1. Secondary data description
Following scheme (Figure 5) suggested by Proctor (1997) will be used for the
purpose of sample development.
Select
Define the Select the Determine
Develop a appropriate sample members
target population sample design appropriate sample size
frame
The target population is the population of two big CEE cities: Prague (Czech
Republic) and Kharkiv (Ukraine). Identification of the target population was
based on the theory (Czinkota & Ronkainen 2012, Johansson 2009) and
secondary data analysis. In Czech Republic, the target population is educated
middle and higher income class (people earning an average monthly salary and
more), in the age category 16 – 44. In Ukraine the target population is higher
income class (people earning more than an average) and includes postgraduate
students, young professionals and working individuals between 25 and 50 with
higher education (Appendix II & III).
The random and non-random sample methods were chosen to conduct the
primary research. Additionally, the usage of judgmental sample can be
considered as subjective judgments were used to select representative
population members, when using the non-random sample method (Kotler,
Bowen & Makens, 2003). The sample size was set to be around 150 respondents
from each country. This number was considered as sufficient due to the fact that
specific segment was targeted directly.
Structured and closed-end questions with the predefined limited answer choices
were used. Usage of open-end questions was limited as they are more useful in
exploratory research. As Bryman and Bell (2011) and Kotler et al. (2008)
suggest closed-end questions with different scales as multiply choice, likert
scale (level of importance, level of influence, level of agreement and level of
frequency) rating scale or evaluation included numerical, verbal and frequency
formats were used. Likert-type scales were coded with the numbers (0, 1, 2, 3
and 4). Levels of importance, influence and agreement were coded with 0 for
the most positive attitudes (extremely important, extremely influential and
strongly agree) and with 4 for the most negative attitudes (not important at all,
not influential at all and strongly disagree). The level of frequency was coded
with 0 for the lowest frequency (never) and with 4 for the highest frequency (all
of the time) (see Appendix Va).
The most relevant observations and results from both secondary and primary
data were highlighted and summarized to serve as a source of information for
the analysis. Primary data were processed by SPSS program to provide
sufficient and sophisticated options for the analysis. Basic descriptive statistics,
including frequencies were conducted. Mode was used as the indicator of
central value to provide the summary of the answers. Mode has been chosen
over mean due to the nominal nature of responses and due to the convenience
and ability to provide the most frequent answers overview. However mean
values were used when analyzing the differences between countries to obtained
detailed numerical outcome. Independent t-test enabled to compare the means
between Czech Republic and Ukraine on the same variables. T-tests were used
for specific questions to address the research question and answer or reject the
hypotheses. Tables obtained from the t-tests summarize the basic statistics
including N (number of respondents), mean, standard deviation and standard
error mean (Field 2009). P-values, differences in the means and standard error
differences are presented in the additional tables in appendix. When mean
differences were of negative value, responses obtained from Czech Republic
were of smaller mean (representing more positive values) than responses
obtained from Ukraine. If p- value (Sig.) is > 0.05, the Levene´s test is non-
significant and values from the row labeled as ´Equal variance assumed´ are
used. If p-value is < or = 0.05 the
Levene´s test is significant and values from the row labeled as ´Equal variances
not assumed´ are used (Field, 2009). I will shift this somewhere to some table or
into appendix. SPSS provided the exact value of t, however it needed to be
identify if t is greater or less than 0,05. This was done by comparing two-tailed
value (Sig. (2-tailed)) with 0,05. If the two-tailed value was smaller or equal to
0,05 there was significant difference between the means, if two-tailed value was
greater than 0,05 there was no significant difference between the means (Field
2009).
3.5. Limitations
Secondary data collection was engaged with limitations, which influenced the
research outcomes. Not all of the data about CEE region are available for both
countries, some of the data are not collected by official statistical offices and
some are protected or available only in native languages. Also different data
measurements are used, making comparison of countries complicated.
Another limitation comes with the dynamisms of the ICT development. It may
result in some inconsistency of the theory related to the Internet as a marketing
communication and purchasing tool with the up-to-date tendency. It should be
taken into consideration that some sources that were published even two years
ago may not be relevant right now.
Findings obtained from secondary and primary data collections are presented in
this chapter. Preferable marketing communications tools and media, Internet
penetration and online purchasing patterns, income characteristics, outbound
tourism and holiday spending were objects of the secondary data search. The
following data, missing from the secondary research, is to be obtained with the
help of survey: the most appealing types of marketing communications tools
and media in CEE, on-line purchasing patterns, people’s attitude to the Internet
as a source of information, holidays spending, own culture awareness,
perception of CBR and service customization.
Table 1 indicates that the Internet penetration level is much more significant in
Czech Republic than in Ukraine, however, in absolute numbers Ukraine offers
more then double the amount of Internet users. Both countries show an
increasing tendency in purchasing goods and services on-line. Therefore they
represent markets with high potential for e-commerce, including travel oriented
services. The groups using Internet at most are young people, students and
working individuals aged 25-49, with higher education and higher income (see
Appendix II).
2000
Average monthly
1500 salary (USD)
0
200720082009201020112012
Figure 6: Money spend on holiday and average monthly salary of Czech residents in USD (Czech
statistical office 2013)
Figure 7 illustrates outbound tourism data for private trips are compared. In the
last ten years, the Ukrainian outbound tourism dramatically increased,
overcoming a slump in 2008 and 2009, this rising trend is about to continue.
Ukrainian tourists should be therefore targeted with new offers and options for
holidays and travelling. Czech Republic is experiencing stagnation in outbound
trips and since 2008 the number of outbound tourism is slightly decreasing.
Thus Ukraine has more favorable development for tourism providers.
Comparison of outbound trips (expressed in number
of trips)
20 000 000
18 000 000
16 000 000
14 000 000
12 000 000
200620072008200920102011
Figure 7: Private outbound trips in Czech Republic and Ukraine (Czech Statistical Office 2012, Ukrainian
Statistical Office 2011)
Analysis of the finding shows the target population was reached successfully in
both countries. Total number of respondents was 300, 51,7% (155) were Czechs
and 145 (48,3%) Ukrainians (see Appendix IV: Table 1).
Respondents' Age
153
82 Respondents'
Age
35
22
7 1
From the mode values given in Table 3 it can be concluded that most of the
respondents in Czech Republic consider all the marketing communications
tools as appealing and the ones influencing their purchasing decision. Public
opinion with the mode of 0 is found as ´Extremely influential´ tool by 54,2% of
respondents, as ´Very influential´ by 36,1% and as ´Somehow influential´ by
8,4%. This positive tendency can be also observed from the skewness value
accounting for 1,064 (Appendix VI: Table 5). Branding, sales promotion and
advertising follow public opinion by their influence. Combining the values of
two most positive responses, they account for 79,3%, 74,8% and 60% of
responses
respectively (Appendix VI: Table 11, 9 & 1). Personal selling, sponsorship and
direct marketing are found as the least appealing marketing communications
tools.
Table 5: The most appealing marketing communication tools media in Czech Republic
As the values of standard error mean for marketing communications tools and
media are not large (Table 7), they should indicate accurate reflection of the
population (Field 2009).
Question six was dealing with the perception of the culture in marketing
perspective. Figure 10 gives a summary of responses from Czech Republic.
45,2% (70) of respondents consider their culture as specific, with the need of
consideration of cultural differences while developing a marketing strategy for
this market. While 38,1% (59) of respondents believe that their culture is
specific, but does not influence customer behavior, so no adaptation is needed
from the marketing side. The extreme answers that stand for total
standardization and total adaptation received almost equal response rate
accounting for 9,7% (15) and 7,1%
(11) of respondents. Overall, the distribution of positive and negative answers is
more or less equal, making a ratio of 47,8% versus 52,3% respectively.
NUMBER OF RESPONSES
Internationalized,
70
standardization.
59
Specific, doesn´t
influence customer behavior.
Specific, cultural
15 11 differences need to be considered.
The answers obtained in Ukraine are quite different as shown in Figure 11. The
majority of respondents consider their culture as not specific and not influencing
a customer behavior. Thus 15,9% (23) consider that Ukrainian culture is very
internationalized and companies can use a standardization approach and 55,9%
of population (81) consider their culture as specific, but not influencing
customer behavior. Still, 24,8% (36) believe that cultural differences are
important enough to be integrated into the marketing communications strategy.
Only 3,4% (5) of respondents believe that their culture is highly specific and
marketing strategy requires adaptation.
NUMBER OF RESPONSES
5 Specific, cultural
Internationalized,
differences need to be
81 standardization.
considered.
Country: Ukraine
Specific, doesn´t
36 influence customer
23 behavior.
Figure 10: Respondents’ attitude to their culture in Ukraine
4.9. Patterns of using Internet for online purchasing
Question four and five were designed to illustrate the attitudes of Czech and
Ukrainian respondents to online purchasing. Table 9 shows the used coding for
level of frequency and level of agreement used in question four and five.
2 2
Country: Czech Republic
Country: Ukraine
43
respondents believe that the most important factor that would change their
skeptical attitude to on-line purchasing is the financial incentives (reduced price
in comparison with in-store shopping). This point of view was shared by 69%
(107) of respondents, where 40 of them ´Strongly agree´ and 29 ´Agree´. In
Ukraine the financial incentive was found also as one of the most important by
55,9% (81) of respondents (Appendix IX: Table 5). However, the most crucial
factor able to change the Ukrainian perception of on-line purchasing are safety
guarantees, which were indicated by 69% (100) of respondents, where 61 of
them ´Strongly agree´ and 39 ´Agree´. Safety guarantees appear to be important
for Czech respondents to a high extend too, being mentioned by 61,2% (95) of
respondents (Appendix IX: Table 2). User Friendly Website would change the
attitude to the on-line purchasing of 54,8% (85) of Czechs and 43,5% (63) of
Ukrainians (Appendix IX: Table 4). Friends and family recommendations as the
factor of influence has got the biggest scores in both cases as neutral (‘Neither
agree nor disagree’) with 20,6% in Czech Republic and 26,9% in Ukraine
(Appendix IX: Table 3). Wide language options factor was considered as the
least important for both countries’ respondents.
T-test shows that differences in means (Appendix IX: Table 6) when comparing
perceptions of online purchasing are not significant, having more or less similar
values for each variable. Most of the differences in means possess negative
values, pointing out again to a more positive responses from Czechs with values
of mean or mode close to 0. The variable safety guarantees is the only variable
having positive value, which indicates more positive approach of Ukrainian
respondents. As it can be observed from Table 11, the smallest difference in
means is in favor of friends/family recommendations. All of the factors have a
Sig. (2-tailed) values greater than 0,05 indicating that differences in means are
not significant and responses from both countries are very similar.
Table 11: Comparison of the perceptions to the on-line purchasing
Figure 13 shows that the majority of Czech respondents 49,7% (77) choose the
Internet as the primary source of information when looking for a holidays, while
in Ukraine the number accounts for 34,5% (50) of respondents. Majority of
Ukrainians 42,8% (62) rely more on a public opinion choosing the most popular
destinations. 16,6% (24) of respondents still use the travel agency services,
while only 6,5% (10) of Czech respondents share the same point of view.
NUMBER OF RESPONDENTS
24 Czech Republic
Ukraine
8 6 10 12
3
From the Figure 14 can be seen that in both countries respondents consider the
most reasonable amount to be spent on holidays per person ranges from 500 to
2000 Euro. In Czech Republic 52,3% (81) of respondents are willing to spend
from 500 to 999 Euro and 27,7% (43) of respondents from 1000 to 1999 Euro.
In Ukraine the numbers are almost the same accounting for 40,7% (59) and
41,4%
(60) of respondents. 17,4% of Czechs are willing to spend less then 500 Euro,
while only 2,8% more then 2000 Euro. In Ukraine the tendency is different,
11,8% of respondents are willing to spend more then 2000 Euro and 6,2% less
NUMBER OF RESPONDENTS
81
59 60
43 Czech Republic
27 Ukraine
9 13
4 4
In Ukraine the most of the responses received agreed on the fact that quality and
price of a product/service are the most important factors when making a
purchase. These answers got 98% (142) and 73,1% (106) of positive responses
respectively (Appendix X: Table 2 & 4). They are followed in importance rank
by service that comes with a purchase accounting for 66,2% (96) of responses
(Appendix X: Table 3) and CBR factor, accounting for 55,2% (80) of responses
(Figure 15). Sales promotion together with personalization of product/service
received the least of the positive responses among Ukrainians. However, their
number is still quite high. Sales promotion was chosen as an important factor by
46,2% (67) of respondents and personalization of a product/service by
51,1%
(74) (Appendix X: Table 6 & 7).
NUMBER OF RESPONDENTS
Importance of Business-Consumer Relationships
55
48
44
38
35
32
23 Czech Republic
18 Ukraine
4 3
Comparing the means in both countries (Table 12), it is obvious that there are
only small differences, indicating similar attitudes to the purchased product
characteristics. Quality and price are valued as the most important indicators by
both groups of respondents. Differences in means have mostly negative values,
indicating a more negative approach of Ukrainians, when evaluating the
importance of the different characteristics of purchased goods or services.
However when it comes to quality and BCR, positive values can be observed,
indicating that Czechs are occupying more negative approach than Ukrainians.
The most significant differences in means can be seen in variables added value,
CBR and service. These variables have a Sig. (2-tailed) of 0,000; 0,005 and 0.02
respectively, and thus indicating significant differences in means. However
added value and BCR differ greatly, while other variables do not represent
significant differences in means (Appendix XI).
Table 12: Comparison of importance of different goods’ and services’ characteristics
5. Analysis
Based on the literature examined (Czinkota & Ronkainen, 2012; Keller & Fay
2012; Douglas & Craig, 2011; Raju 2009; Halloway & Robinson, 1998;
Thrassou & Vrontis, 2009; Finne & Grönroos, 2009; Kotler et al., 2008; Orth
et al., 2007) four hypotheses were developed. All of them are linked to the
research question and will be confirmed or rejected by primary data analysis.
Chi-square is usually used for testing hypotheses and requires two interval/scale
variables. Due to the nature of the variables examined it was not possible to use
this test. While H1 and H3 require complex descriptive analysis of more than 1
question and many variables, H2 and H4 consist of one nominal (country) and
one interval (perceptions) variables.
Questions one, two and six were created to address this issue. Respondents were
asked directly how they perceive their own culture in marketing perspective. As
indicated in the findings (Tables: 8, 9), both countries percept their own culture
differently. While Ukrainians perceive it as specific, but not requiring
adaptation of the marketing communications strategy, Czech respondents think
that marketing communications strategy should be adapted to the local
environment and adjusted according to the cultural specifications. While Czechs
feel influenced by most of the marketing communications tools, Ukrainians are
rating the influence of the tools more negatively. The most significant
differences in means are found in the evaluation of public opinion and
sponsorship and events, however significant differences are found in almost all
of the marketing communication tools (having Sig. (2-tailed) smaller than
0,05)). Personal selling is the one, which shows non-significant difference in
means and thus indicates the same approach by both countries. Same trend can
be observed when it comes to
media. Negative values in means’ differences show more positive approach of
Czech respondents. Events are the only marketing communications mean with a
non-significant difference in means, which represents equal evaluation by both
countries. All other media have Sig (2-tailed) smaller than 0,05 and thus
representing significant differences in means. The most significant differences
in means with a Sig (2-tailed) value of 0,000 can be found in the evaluation of
Internet, social media, newspapers, printed advertisement and sponsorship.
This hypothesis can be addressed by questions one, two and five. First question
is concerned with the influence of different marketing communications tools
while making a purchase decision. As already mentioned, Czech respondents
have in general more positive attitude and consider marketing communications
tools as more influential than Ukrainians do. The biggest differences are
observed in the evaluation of public opinion, sponsorship and events, sales
promotion, branding and direct marketing; the smallest - in personal selling.
To sum up, the first and second questions clearly point out that the differences
between perception of MCM in Czech Republic and Ukraine do exist and they
are significant. Even though the fifth question indicates only some minor
variances, it should be taken into consideration that this question concerns only
with one media of communication, but not the whole mix. Overall conclusion is
that H3 can be accepted.
Taking into consideration that the question was indirect and the choice of the
factors that got the highest score was quite obvious, still it could be concluded
that BCR are important for both countries. However, the theory suggests
(Thrassou & Vrontis, 2009, Finne & Grönroos, 2009, Kotler et al., 2008,
Halloway & Robinson, 1998, Tsiotsu & Goldsmith, 2012, Williams, 2006) that
customer-business relationships are valued as very important aspects of
marketing communications. Meaning that expected mean value to be received
was 1 (’Very Important’). Based on this proposition, mean and mode values
confirm that BCR is a very important aspect for Ukrainian respondents and
somewhat important for Czech respondents. Therefore H4 can be confirmed for
Ukraine and needs to be rejected to Czech Republic.
6. Discussion
Cross-cultural issues remain one of the central questions of the current paper.
Theory suggests that cultural differences found across borders influence MCM
(Aaker et al. 1997, Usunier & Lee 2009, Tian & Borges 2011). Sometimes
significant cultural differences exist even within the same geographic region
(Orth et al. 2007). The primary research conducted in Ukraine and Czech
Republic has proved that cross-cultural differences exist even in the same
geographic region and influence customers’ perceptions of the MCM (H2).
Another evidence
supporting this point of view can be found in H4, examining a perception of
business-consumer relationships as an aspect of marketing communications.
The theory suggests that BCR are valued as very important (Thrassou &
Vrontis, 2009), and even if it is not so, the tendency should be identical for both
countries, however findings proved the opposite. CBR are very important in
Ukraine, while in Czech Republic they are not valued as important (Figure 15)
by the majority of respondents. This means that even within one geographic
region (CEE) customers’ perception differs.
Theory suggests (Elliot & Boshoff 2009, Ratten & Tsiotsu 2010) that Internet
has become a very important marketing communications tool, and at the same
time secondary data collected indicates a high Internet penetration rate in
people’s everyday life. The Internet penetration rate (Table 1) in Czech
Republic accounts for 73%, which is quite high, while in Ukraine only for 34%.
However, the primary research shows that only 12,3% of Czech respondents
and 19,3% of Ukrainians respondents do not use Internet for online purchasing,
which shows much higher penetration than indicated by secondary data. Based
on secondary data available for Ukraine (Appendix IV), the main drivers for
online shopping were public opinion, lower price and availability of certain
products only online. Factors preventing from online purchasing are the
convenience of in-store shopping and professional advice. Primary research
identified that lower price is the main factor, changing the perception of online
purchasing in both countries. While public opinion evaluation differs. However
Ukrainians still feel skeptical about the Internet and their main concern is safety
issue. When it comes to the Internet as a source of tourism related information,
Czech respondents use it to a higher extent than Ukrainian (Figure 11 & 12).
However, the exclusive usage of Internet as a marketing communications mean
in these markets could be tricky. Although Internet is gaining overall popularity,
some consumers still feel skeptical about online purchasing and therefore the
mix of marketing communications tools and media is recommended.
Most of the differences in means are caused by the more negative responses of
Ukrainian respondents, though similarities in the distributions can be observed
as well. Both countries were chosen due to the expected similarities in buying
behavior and perception about marketing communications. Both countries
experienced long time of communism, which is still considered as influential
factor for all post communist countries when it comes to the purchasing habits.
However the geographic location and economic conditions in both countries
differ significantly. Czech Republic with its convenient central geographic
location, close trade relations with Western Europe, being a part of European
Union it can be assumed that Czech individuals have more positive attitude
influenced by Western way of thinking. Ukrainians, on the other hand, due to
the
isolation, close connection to Russia and limited contact with the developed
countries, posses more negative approach when evaluating different variables.
Other issues, which could possibly explain this negative tendency, are
translation and language used. Translation was done by native speakers and
questionnaires were tested on a small group of people, however in some cases
English expressions needed to be adjusted to the local languages and therefore
they could have lost their exact meaning. Further, for some questions,
professional terminology was used and some respondents could have problems
with understanding and therefore choosing neutral or more negative answers
over the positive ones.
Taking into consideration all the results obtained by conducting this study, the
research question “Does cross-cultural differences within Central and Eastern
Europe affect the marketing communications mix in a specific industry?” can be
affirmed. Overall evaluation of the research question proved that cross cultural
differences matter and affect the MCM to high extent. Even apparently similar
countries may present significant differences when it comes to the perception
about different aspects of MCM. It was assumed that countries within one
region are possessing similar characteristics, therefore research findings from
one country are applicable for the whole region. Two countries Czech Republic
and Ukraine were chosen as
representative countries. However analysis showed that there are significant
differences even within one region, therefore findings should not be generalized
and application to Central or Eastern Europe is not appropriate. The same
applies to the hypothesis testing, even though the hypotheses formulated in this
paper were based on the general theory, they were tested only in these two
countries and therefore the results obtained are not applicable to other countries.
One of the main arguments for the need of research in this area was the lucrative
markets in the researched countries. The research focused on premium service
providers within the tourism industry due to the potential in the researched
markets. The research based on variables as spending on holidays, income
levels, distribution of income, preferable types of holidays etc. showed that
indeed specific target groups in researched countries provide sufficient business
opportunities. If considering how cross-cultural issues influence the
composition of MCM for premium tourism service providers in Czech Republic
and Ukraine, it can be concluded that the findings are sufficient to develop a
recommendations and framework for companies willing to enter Czech and
Ukrainian markets. Both countries are distinctive by their seeking for low
prices, special offers and discounts, which should be taking into consideration
when delivering marketing communications message and developing marketing
campaign. Word-of-mouth advertising is very important in both markets.
Internet and social media should be used as the main means of marketing
communications, though Events, TV, Sales Promotion and Magazines could be
used as supporting media to create brand awareness. Considering the tourism
industry, competition is still not very intense in the niche of on-line tourism
services in these countries. Local travel agencies remain important providers of
tourism services and thus the main competitors, though the increasing
popularity of e-shopping and self-booking holidays, especially among young
people present a positive trend in the researched area.
It is also important to mention that the results obtained are specific for a
particular case and application to other countries could provide misleading
information. However, due to the general nature of the research question
findings about the adaption of MCM and marketing communications
perceptions in these countries can be applied to other industries than tourism.
Although this paper provides an insight in terms of the incorporation of the
cross-cultural issue into the MCM, further research is required in this area. Due
to
the need of narrowing the researched topic, it was not possible to address all the
challenges which come along with the cross-cultural differences in the
researched area, considering the chosen industry and region. Additional research
should be done in the area of how exactly the cross-cultural issues should be
integrated into the MCM. The current study is concerned with significant and
non-significant differences in the researched countries, however lacks specific
information about the incorporation into the MCM. Considering the rising
popularity of Internet and social media this study is quite relevant and could
use as a starting point for further research focusing on contemporary marketing
communication tools and media in tourism industry.
8. References
University Press.
Day, G.S. (1990). Market-driven strategy. New York: The Free Press.
Douglas, S.P. & Craig, C.S. (2011). Convergence and Divergence: Developing
a Semiglobal Marketing Strategy. Journal of International Marketing, 19 (1),
82-101.
Elliot, R. & Boshoff, C. (2009) The marketing of tourism services using the
internet: A resource-based view. South African Journal of Business
Management, 40 (3), 35-49.
Johansson, J.K. (2009). Global Marketing: Foreign Entry, Local Marketing &
Global Management. Singapure: McGraw Hill.
Usunier, J-C. & Lee, A.L. (2009). Marketing Across Cultures. Harlow: Pearson.
Williams, A. (2006). Tourism and hospitality marketing: fantasy, feeling and fun.
International Journal of Contemporary Hospitality Management, 18 (6/7), 482-495.
World Travel and Tourism Council (2011). Travel & Tourism, 2011. Available:
http://www.wttc.org/site_media/uploads/downloads/traveltourism2011.pdf/
[2013-02-19].
9. APPENDICES
Table: 5 Share of buyers who use the Internet search before making a
purchase decision in Ukraine (GfK Ukraine 2012)
Purchase category % of people
Products and cosmetics 64
Finances and properties 69
Entertainment 73
Household equipment and furniture 78
Automobile items 80
Travelling 85
Technologies 89
9.3. Appendix III: Economic growth
-
2,41
4
,
028
Equal
variances
,028 293,150 ,978 ,003 ,112 -,218 ,225
not
assumed
Equal
variances ,059 ,808 - 298 ,000 -,529 ,111 -,748 -,311
assumed 4,765
Influence of
Sponsorship Equal
variances
not - 288,869 ,000 -,529 ,112 -,749 -,310
assumed 4,747
Total 1 ,7 ,7 82,1
26 17,9 17,9 100,0
145 100, 100,0
0
1,244
1,244
Mode 0 1 1 1 1 2 1
Std.
Deviati ,509 ,832 ,759 ,879 ,914 1,051 1,015
on
Varianc
,259 ,691 ,576 ,772 ,835 1,105 1,030
e
Skewn
1,516 ,577 ,390 ,336 ,265 -,097 ,353
ess
Std.
Error of
,195 ,195 ,195 ,195 ,195 ,195 ,195
Skewn
ess
Range 2 4 3 3 4 4 4
Sum 45 164 136 183 207 269 236
Valid 145 145 145 145 145 145 145
N Missi
0 0 0 0 0 0 0
ng
Skewn
1,631 ,533 ,434 ,069 ,241 ,311 ,219
ess
Std.
Error of
,201 ,201 ,201 ,201 ,201 ,201 ,201
Skewn
ess
Range 2 4 3 4 4 4
4
Sum 38 186 138 254 216 202 234
a. Multiple modes exist. The smallest value is shown
Important
Total
Table 4: Importance of price
Total