Impact of Culture on Consumers Behaviour - Coursework Example

A comparative evaluation of the impact of culture on consumers’ behaviour A comparative evaluation of the impact of culture on consumers’ behaviour Introduction Culture is said to have a huge impact on the decision made by consumers concerning different product categories (Naele 2015, p.1). The general values, beliefs and customs of a person will influence their decision on the quality of a product and its country of origin (Roach 2013, p.1). This essay will discuss the impact of culture on consumers’ behaviour in the energy drinks industry. The essay will also be comparing and contrasting cultural differences and how they impact on consumer behaviour between two different countries. The countries for comparison are the UK and China. The essay will evaluate various cultural factors such as; beliefs, values and customs and how they impact on consumer preferences and behaviour in regard to energy drinks. The beliefs of consumers do impact on their choice of products. In the UK, many of the consumers consume energy drinks because of the belief that it contains caffeine that can energise the body (European Commission 2003, p.1). Caffeine is highly recommended for fluid electrolyte balance, exercise heat tolerance and the regulation of temperature (Armstrong, Casa, Maresh & Ganio 2007, p.135). A study carried out by Canadean revealed that consumers who take drinks after an exercise believe that one energy drink is enough to replenish their energy. This is a major reason as to why the consumption of energy drinks in the UK is now at its highest (Perreau 2014, p.1). Currently, the maximum record of energy drink consumption was in the year 2013 when 500 million litres of energy drink were consumed in the UK. On the other hand, consumers will not purchase or consume energy drinks if they believe that it is bad for their health (Buchanan 2012, p.21). Consumption of energy drinks by consumers in the UK is driven by the belief that they are fine in moderation and for boosting energy (Mintel Group Limited 2012, p.4). In the Canadean report, 6 out of 10 consumers said that the reason for not consuming energy drinks was because they believed these drinks were bad. Additionally, some customers do not trust the ingredients that are used in the manufacture of energy drinks (Robinson 2014, p.1). Users in the UK will also not allow their children to have energy drinks since they believe that these drinks are harmful to children. In China, a high proportion of consumers usually use energy drinks since they believe that they contain ingredients that are essential for the nervous system. For example, consumers think that as energy drinks have caffeine they serve to cool the nervous system (Heckman, herry, & Mejia (2010, 307). Table 1 presents the caffeine concentration in various energy drinks. Additionally, consumers in China believe that the Ginseng herb that is contained in these drinks is healthy and a remedy for different diseases (Cheng, Shen, & Zhang 2005, p.143). According to Lee, Johnke, Allison, Obrien, & Dobbs (2005, p.237), consumers in China usually consume energy drinks in high volumes since they believe that such drinks promote longevity. Additionally, they believe that the vegetable protein found in some of the energy drinks have the capacity to prevent obesity (Feliciano 2014, p.1). Table 1: Caffeine Concentration Heckman, Herry, & Mejia (2010, p.311) The values held by consumers do determine their behaviour in purchasing or consuming different products in the market (Schmitz 2012, p.8). With respect to the consumption of energy drinks, customers from different countries have different values. In the UK, consumers value taste, and their consumption of energy drinks is dependent on whether they like their taste. As reported by the Mintel Group Limited (2012, p.4), consumers in the UK consume energy drinks since they find the taste refreshing. They also value the health effects of these drinks. Sports people in particular will consume energy drinks for their ability to rehydrate the body (Coombes & Hamilton 2000, p.343). Therefore, many consumers usually seek out the more healthy options from energy drink manufacturers. Due to the taste, a wider variety of pack sizes, and a range of flavours, users in the UK continue to have a high consumption of energy drinks. Customers in the UK also tend to value branded varieties more than non-branded varieties; therefore, they tend to consume energy drinks that are branded. Consumers in the UK also value health and are seen to be very careful when choosing their energy drinks. A research report by Mintel revealed that 38% of consumers in UK usually consume juice blends made from fruits and vegetables. The reason is that, these particular energy drinks are healthier when compared to pure fruit juices. In choosing their energy drinks, users also value the natural functional dimension provided by the drinks. 72% of the consumers in the Mintel report argued that they like energy drinks that are healthier i.e. the calorie-free or sugar-free varieties. Additionally, 71% the customers argued that they would prefer to consume energy drinks with natural flavours. 41% of the users said that they would choose to take energy drinks with added benefits such as added vitamins (Mintel Group Limited 2013, p.5). In China, just like in the UK, consumers do value health and well being and this determines their choice when consuming energy drinks. A report presented by Euromonitor International (2015, p.1) argues that manufacturers of energy drinks are very careful to produce health drinks that fit for all customer segments. According to Feliciano (2014, p, 1), Chinese consumers will consume energy drinks that have a functional value rather than a taste value. This is different from UK consumers who value flavours in their energy drinks. For example, young people in China will consume Red Bull for an energy boost after long working hours and also after exercise. Alford & Westcott (2001, p. 139) recommends Red Bull as an energy drink that improves human performance and mood. These factors have made Red Bull the leading energy drink brand in China. The underlying trend for high consumption of energy drinks in China is their functional value. Consumers want functional beverages that serve to address their desire to find products that assist them in keeping pace with their increasingly hectic daily lives. The traditions and customs that are held by consumers determine their choice and use of goods and services (Campbell & Vigar-Ellis 2012, p.98). Users from different countries have different traditions and customs that drive their choices and consumption of energy drinks. In the UK, consumers have a culture of openness and curiosity as well as savvy when it comes to purchasing products that are new to the market. This is especially the case with imported products. UK consumers love their local brands when it comes to choice of energy drinks (Mintel Group Limited 2013, p.3). Therefore, before going for an imported energy drink, a British person would opt for a local one as the first option due to their patriotic purchasing culture. However, this culture has changed and today, the consumption of energy drinks by UK consumers is largely based on the price and quality of the product rather than whether it is local or imported. In the Mintel research, 48% of the consumers argued that price is what matters when making a choice when buying energy drinks. Additionally, 30% of the customers stated that they did not feel any loyalty to specifically British energy drinks. 58% of the users said that they consider the price and quality of the energy drink as crucial before purchasing or consuming. UK consumers are also open to other cultural influences and are ready to embrace different brands of energy drinks from other countries (Mintel Group Limited 2013, p.3). Therefore, they don’t have any problem when choosing an energy drink brand made in a different country, as long as the price and quality are good. In China, consumers have a long tradition of homeopathic remedies, and this influences their choice of energy drinks. The Chinese culture informs the consumer perception of accepting energy drinks that have a functional value. Unlike the UK, the price is not a major factor for Chinese consumers when it comes to choosing their energy drinks. Specifically, energy drinks that are mostly consumed in China are herbal teas that help with digestion as well as removing heat from the body (Feliciano 2014, p.1). Like in the UK, Chinese consumers also embrace the consumption of energy drinks from other countries. For example, users in China take various specialty energy drinks from Asia. Peanut milk, as well as almond juice are among the energy drinks from the Asian culture that Chinese consumers will choose to have. The culture of energy drinks consumption in China has led to the growth of the energy drink market in this country. Figure 1 presents various energy drinks with their growth rates between the years 2010 to 2013. Figure 1: Energy Drinks Growth Rates in China Source: Feliciano (2014, p.1) Conclusion The impact of culture on consumer’s behaviour in different countries is seen to be driven by their beliefs, customs, and values. This essay clearly describes how the culture of two countries the UK and China influence consumer’s behaviour with their consumption of energy drinks. From the discussion, it is clear that, there are major differences and similarities in the two cultures and that these influence consumer behaviour. UK consumers are seen to consume energy drinks because they believe that it is useful for the production of energy and is good in moderation. Others will avoid the consumption of energy drinks since they believe that they are bad for their health. In China, consumers will take energy drinks since they believe that energy drinks cool the nervous system, they are a remedy for various diseases, promote longevity and prevent obesity. Consumers in UK and China value health, that is why they will choose energy drinks that serve the purpose of improving their health. The two cultures value energy drinks with a functional value. However, UK consumers tend to consume drinks depending on their flavour as well as their function. Based on their traditions and customs, the two cultures are different in the sense that UK consumers will consume energy drinks based on the price and quality. Chinese consumers prefer to consume energy drinks that have a homeopathic remedy. However, the two cultures have a similar custom of accepting energy drinks from other countries. Therefore, they embrace the consumption of drinks from different cultures. References Alford, C., & Westcott, R, 2001, The Effects of Red Bull Energy Drink on Human Performance and Mood, Amino Acids, Vol.21, pp.139-150. Armstrong, L., Casa, D., Maresh, C., Ganio, M, 2007, Caffeine, fluid-electrolyte balance, temperature regulation, and exercise-heat tolerance, Exerc Sport Sci Rev, Vol.35, pp.135–140. 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Euromonitor International, 2015, Health and Wellness in China, Country Report, Available at: http://www.euromonitor.com/health-and-wellness-in-china/report European Commission, 2003, Opinion on Additional information on “energy” drinks, Scientific Committee on Food, Health & Consumer Protection Directorate-General. Feliciano, J, 2014, China’s Functional Beverage Market Thrives as Brands Zero In on Key Demographics, Euromonitor International, Retrieved from http://blog.euromonitor.com/2014/03/chinas-functional-beverage-market-thrives-as-brands-zero-in-on-key-demographics.html Heckman, M., Herry, K., & Mejia, E, 2010, Energy Drinks: An Assessment of Their Market Size, Consumer Demographics, Ingredient Profile, Functionality and Regulations in the United States, Comprehensive Reviews in Food Science and Food Safety, Vol.9. 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