How Does Individualism-Collectivism Influence the Sales of Mobile Phones - Research Proposal Example

Research Proposal - How Does Individualism-Collectivism Influence The Sales Of Mobile Phones? The Case of the Peoples Republic of China Table of Contents 1.0.Introduction 3 2.0.Literature Review 4 2.1.Individualism and Collectivism 4 2.2.Impact of Culture on Product Selling 5 2.3.Chinese Culture and Its Impact on Mobile Selling 7 3.0.Objectives 9 4.0.Research Methodology 10 5.0.Ethical Considerations 12 6.0.Limitations of the Study 13 References 15 19 Appendix: Questionnaire for the Survey 20 1.0. Introduction Individualism is defined as a working culture where people work and prioritise their individual tasks more than that of team effort. It can also be termed as individualist working culture where people tend to achieve their personal goals with more efficiency over their in-group goals. Whereas, collectivism can be defined as a working culture where people work in groups, form relationships among teams and prioritise the team’s goal before their individual goals (Aldulaimi & Zedan, 2012). It is in this context that marketing strategies are designed based on the culture of a country where the product is to be positioned. Hence, collectivism culture of a target market can be effective for marketing brand with names which are preferred more than the product itself. Consumers who consider other’s opinion to rely on a product can be influenced by the collective marketing strategy such as word of mouth. Whereas, in the individualistic culture, the consumers do not rely on other’s information, rather make choices according to their individual likings. Advertising, packaging and promotions can be some of the factors that influence a change from collectivism culture to individualism culture such as the quality of group of people using the product (Ekerete, 2001). For instance, the culture that the Chinese people follow to a large extent is collectivism and thus prefer to work in groups with due consideration to the team goal rather than their individual objectives (Hofstede, n.d.). This particular notion of the Chinese culture is observed to create a vast impact over their buying behaviour which can certainly influence mobile phone selling in the economy. The objective of the proposal will be to provide a brief description to the research process intended to be performed focused on the influence created by individualism and collectivism on the sales of mobile phones in China. The evaluations will be reviewed through reviewing literatures and relate them with the cultural marketing strategy adopted by mobile phone companies of China. 2.0. Literature Review 2.1. Individualism and Collectivism According to Markus & Kitayama (1991), individualism and collectivism can de differentiated within a group by the independence and interdependence style of working culture. In an individualistic culture, people work as independent targeting their individual goals whereas in collectivistic culture people are interdependent to each other within the group and aim to fulfil the group’s target ahead of their personal targets. As observed by Goncalo & Staw (2004), people in individualistic culture often describes themselves as ‘I’ when using any abstract but in the collectivistic culture people uses the abstract of ‘We’ to describe themselves. According to Bond & Smith (1996), a study demonstrated that Asians tend to conform more to their superiors than the Americans. Conformity prevails more to the collectivistic culture where people abide to certain guidelines that have been drawn by either the team or their superiors. However, in an individualistic culture, conformity is often treated as negative and only the organisations guidelines are being followed. As observed by Davidson & et. al. (1976), a person’s behaviour is closely linked with the group in collectivistic culture where the goal of the people should not be regarded as solely independent and different from others’, but to encourage the interests of the group. In disparity, the people’s identity in individualistic culture is assumed to be due to the uniqueness of their performances. Furthermore, according to Kitayama & et. al. (1995), people in the collectivistic culture are not motivated to outperform their group regarding competition among them; instead, they tend to improve their skills in order to contribute in the wellbeing of the group. Whereas, people in the individualistic culture crave for special recognition by achieving beyond the target set by the organisation. 2.2. Impact of Culture on Product Selling Different cultures can have a strong impact on the strategies undertaken for product selling. Individualism and collectivism culture also have diverse impacts for the techniques of product selling. For instance, when a product needs to be sold through creative ideas, it has been observed that individualistic culture succeeds over collectivistic culture. According to O, Reilly & Chatman (1996), the collectivistic culture can improve innovations amid marketers in a specific region. In order to support the claim made by the observers, the employees in the management have said that some firms have set wide targets that have been accepted by their people. This statement was supported by the employees who have been able to achieve specific goals that overall contributed to the organisational goals (O, Reilly & Chatman, 1996). It was also stated by Howard & Sheth (1969) that culture can be termed as “collective mental programming which people in a society have”. It means that the activities of every individual are dependent on his/her own culture. Therefore, behavioural pattern of an individual is influenced by their culture which decides the consumer’s reaction to a particular product, their habits and likings. Thus, the positioning of a product is generally decided based on the culture of the country. Furthermore, Umoren (1996) stated that the culture of a particular group can be identified through the language they speak. In fact, languages affect the behaviour of the consumers in terms of promoting the product. The author also stated that religion can be treated as a cultural system where certain products are prohibited by the religion of different countries. This way the sales of such product can be hampered at that country such as Mattel which launched new Barbie dolls, did not pay attention to the local taste and culture which prohibits them to wear revealing clothes, and suffered huge losses in terms of sales (Rein, 2010). Moreover, it was observed by Behram (1969) that the characteristics of a multinational firm are to treat various markets as one and extend the marketing strategies to the extent that the originated country permits. Therefore, the organisations intend to bring in all the cultural elements of the originating country to the new target market where opportunities have been developed. According to McCarthy & Brogowicz (1981), the marketing strategy in a few markets is fundamentally made up of two inter-related parts, namely the target market and the marketing mix. The target market is referred to a related group of customers to whom the company may appeal; whereas, the marketing mix relates to the different variables which the corporation puts together to satisfy the target group. In other words, sales in the current era is largely focused on a target group and likewise the culture they follow as well as the value or culture the company perceive toward the target group (McCarthy & Brogowicz, 1981). 2.3. Chinese Culture and Its Impact on Mobile Selling Though, the Chinese population standardise their family culture with huge consideration, it can be assumed that collectivist work will be more beneficial than individualistic. Most of the Chinese people favour to take decisions collectively giving preferences to their aged family members. Thus, the larger the group, the more weight-age it can create on the consumers’ purchasing behaviour. Apart from that, the study in the culture of China showed that Chinese people like to be praised in terms of generosity, richness and status. It has also been noted that in terms of buying product for personal consumption the people does not focus too much about the price or its features but when they have to give gifts to others for social reasons, the focus of the people grows and they intend to buy much more luxurious and costlier product to raise their reputation (Woo-Gil, 2001). Mobile phones have become an important aspect for communication in the modern days. It has diverted from being luxurious product to a necessity. Therefore, the business of mobile phones has increased immensely and globally where organisations are on their feet in terms of innovation and creativeness. Most of the mobile phone companies are exploring products to the Chinese market where the economy is growing gradually positively increasing the demand for mobile phones. In terms of culture, China is believed to have a strong collectivist culture where group formation and belongingness have an important role in day to day activities of life. According to Ruan (1993), the Chinese culture is based on ‘guanxi wang’ (relationship network). As stated by Leung et. al. (1993), the concept of guanxi in the makering concept is developed through “very personal interactions with other people and always involve a reciprocal obligation. Guanxi is developed with ingenuity, creativity, supplemented by flexibility. It is cultivated through a person’s network of connections.” In other words, the promotion of any product is done through network of connections between the people. Thus, the larger the connections or relationships between people, the more is the chances of promoting the new mobile phone amongst them which will help in the increase of sales (Leung et. al., 1993). Furthermore, it was observed by Johanson & Johanson (1999) that the motives and ways to work in Chinese business networks are not only to seek profit, but sometimes it can also be perceived as unprofitable or irrational based on the psychological and social aspects. Thus, in China business networks are not purely based on business linked issues. At times social factors such as family and former contacts can also influence the business relationships. Though the business relations cannot be that profitable, it can be reliable due to presence of family and former contacts (Johanson & Johanson, 1999). Cultural impacts on the Chinese customers are often observed to have vital influences over their buying behaviours. Certainly, they have an in depth knowledge of their family and culture which are considered as valuable while consuming a product. It is in this context that the Chinese people respects the older people in their family and kids who are looked upon as the future of the family. Thus, the needs of these two market segments should be considered while positioning a new mobile phone or a new feature introduced in a mobile phone (Luo, 2009). Chinese people also like to be praised by others in terms of richness, good taste and generosity. This culture prompted organisations to explore the Chinese market with luxurious products such as expensive mobile phones and other electronic items. It has also been noted that the people of China have a low level of participation when buying products for their private consumption; whereas, they involve much more when buying products for their social value. Thus, the social significance of a mobile phone will be considered when the people buy the product for their family or previous contacts to show them the status and gratitude they possess (Luo, 2009). 3.0. Objectives Culture plays an imperative role when positioning through effective selling of a product is concerned which is also a similar phenomenon in the Chinese market for mobile phones. It is in this context that an organisation need to study the culture, tastes, likes and dislikes possessed within the target segment of China before moving its business to a different country. Based on this context, the objective of the proposed research is based on the question of “How does the individualism and collectivism influence the sales of mobile phones in China?” Therefore, the culture of the Chinese community will be evaluated and the different methods and approaches will be analysed that can influence the sale of mobile phones in the country. Understand the significance of individualism and collectivism in the society of China Recognize the cultural factors that will be necessary to increase sale of mobile phones across the nation Impact of individualism and collectivism in the mobile phone selling in China Developing a few recommendations for mobile phone selling in China 4.0. Research Methodology Research methodology is termed as the structured enquiry that involves crucial factors for the effective completion of a research or a study. It is a guide to a process that executes proper findings and measures which in turn intends to determine the research objectives and research questions. Notably, there are numerous kinds of research processes used for the purpose of research studies. Few of the major types of researches are descriptive research, experimental research, action research, ex-post facto research, historical research and expository research (Goddard & Melville, 2004). In regards to the above researches, this study can be referred as a descriptive research where the sole motive is to identify the Chinese culture and its impact on the sale of mobile phones in the country. Furthermore, the research will study whether individualism or collectivism prevails in China and how can these factors persuade the sale of mobile phone in the country. Thus, for the completion of this research a mixed approach i.e. qualitative and quantitative research will be considered among the varied age group of China. In order to attain the objective of the research stated in the study, the methodology will focus on an interpretivist philosophy. This methodology is just the opposite of a positivist approach where the objectives have been discovered by researchers and replicated by others. Interpretevist approach consists of data that has been constructed from the data obtained through the study using various methods (Walsham, n.d.). Based on this ideology, the research methodology will intend to construct an online survey among the varied age group of China which will involve a set of questionnaires. The responses that will be generated from this survey will be further depicted through different charts to measure the sale of mobile phones through individualism and collectivism cultural dimensions. However, the qualitative approach will be based on the secondary data that may include literature reviews, articles and reports. According to Geert Hofstede, China is considered to have a highly collectivist culture where people prefer the group’s interest over their personal interests (Hofstede, n.d.). Therefore, a survey conducted will show how the cultural dimension will affect the sale of mobile phones in the country. Although the research process is based on both the approaches namely, qualitative and quantitative, the analysis of the data will be evaluated from the self-completion questionnaire which will be conducted among the diverse age groups of China. The questionnaire will be based on both open ended and closed ended questions which will help to differentiate between the qualitative and quantitative approach determination. The age group to be considered for completion of the survey is from 18-65 years. Thus, the data gathered from the online survey will be evaluated on the basis of graphical analysis using pie charts or bar charts. In addition to the above research process, the frame that will be used to survey will be the simple random sampling method. Simple random sampling is the basic process of selecting samples and is the easiest method to understand. Simple random sampling is aimed to select randomly the respondents who will be surveyed (Frerichs, 2008). A sample size of 200 respondents will be analysed and evaluated. Thus, the simple random sampling will allow to randomly select the respondents within the age group of 18-65 years which will include both the teenagers and aged groups who are given the most preferences in the Chinese family. The analysed data will further be discussed to obtain a comprehensive understanding that will help to derive a reasonable justification to the determined research questions. 5.0. Ethical Considerations Ethical considerations are regarded as the awareness a research process should have which may generate during different stages of the survey undertaken. It is also considered as a motivational factor to the respondents to provide adequate amount of relevant data which will help to validate the research findings as reliable and authenticate. Thus, the research process will take the permission of the respondents whose data will be studied. They will be well-versed about the framed research questions and their objectives that are to be derived. The intention behind the survey conducted will be clearly communicated to the respondents. In addition, the questionnaire will not be based on personal biases or opinions that may hurt the sentiment of the respondents. The respondents will be versed confidently that their valuable data and findings will be kept confidential so that they be satisfied and reveal more facts that will be relevant for the purpose of the research. Moreover, the research process will be under the approval of an ethics review group to make sure that the research process is intended for a genuine cause which may help to collect more relevant and adequate data from the respondents. Additionally, the respondents will be taken into confidence that the surveyed data will be produced in the most original form despite the nature of its contents (Purdue University, 2012). 6.0. Limitations of the Study The study is intended to be based on a mixed approach considering quantitative and qualitative measures both. The data being measured in both these constraints can develop few limitations regarding the procedure of analysing the collected data systematically and comprehensively. It is because in the case of mixed approach the researcher is not beneficially assisted with a pre-designed process framework. Moreover, the inclusion of both qualitative and quantitative methods will develop a complex situation under the mixed approach. In order to deal with these limitations the various phases engaged in the completion of the research study will be considered, such as the identification of the research question, data source and collection and data analysis. Another limitation that can be identified from the research study relates with the obtainment of sufficient data from the sample size that have been decided. The limitation can be observed in terms of primary and secondary data gathered from the sources which are aimed to be collected from the different sources which may not be reliable. Therefore, to eradicate this limitation to a certain extent, wide resources will be considered so that adequate data can be gathered to justify the research study. The research study can also face certain disruptions in terms of ethical issues which will also be taken into concern while performing the research process. Furthermore, due to the fact that the respondents are intended to be surveyed online, it is quite likely that the responses obtained shall comprise with numerous flaws being influenced by the lack of face-to-face or personal interaction. It is because of this reason that a large sample size of 200 respondents is being considered in this study which will be further signified with reference to the findings obtained from secondary sources. References Aldulaimi, S. H. & Zedan, A., 2012. Leaderships Individualism Culture Effect on Affective Commitment to Organizational Change in Qatar. Journal of Modern Marketing Research, Vol. 1, pp. 1-9. Behram, J. N., 1969. Some Patterns in the Rise of the Multinational Enterprise. Graduate School of Business Administration, University of North Carolina. Bond, R. & Smith, P. B., 1996. A Meta-Analysis of Studies Using Aschs (1952b, 1956) Line Judgment Task. Psychological Bulletin, Vol. 119, Iss. 1, pp. 111-137. Davidson, A. R., & et. al., 1976. Cross-Cultural Model Testing: Toward the Solution of the Etic–Emic Dilemma. International Journal of Psychology, Vol. 11, Iss. 1, pp 1-13. Ekerete, P. P., 2001. The Effect of Culture on Marketing Strategies of Multinational Firms: A Survey Of Selected Multinational Corporations In Nigeria. African Study Monographs. [Online] Available at: http://repository.kulib.kyoto-u.ac.jp/dspace/bitstream/2433/68203/1/ASM_22_93.pdf [Accessed April 19, 2012]. Frerichs, R. R., 2008. Random Sampling. Simple Random Sampling. [Online] Available at: http://www.ph.ucla.edu/epi/rapidsurveys/RScourse/RSbook_ch3.pdf [Accessed April 19, 2012]. Goddard, W. & Melville, S., 2004. Research Methodology: An Introduction. Juta and Company Ltd. Goncalo, J. A. & Staw, B. M., 2004. Individualism–collectivism and group creativity. Organizational Behavior and Human Decision Processes. [Online] Available at: http://www.ilr.cornell.edu/directory/jag97/downloads/Individualism_collectivism_OBHDP.pdf [Accessed April 19, 2012]. Howard, J. A. & Sheth, J. N., 1969. The Theory of Buyer Behaviour. Wiley. Hofstede, G., No Date. What about China? National Culture. [Online] Available at: http://geert-hofstede.com/china.html [Accessed April 19, 2012]. Johanson, J. & Johanson, M., 1999. Developing Business in Eastern European Networks in J-Å in Törnroos & J. Nieminen eds., Business Entry in Eastern Europe, Kikimora publications, Helsinki, pp. 46-71. Kitayama, S. & et. al. 1995. The Collective Construction of Self Esteem: Implications for Culture, Self, and Emotion. Everyday Conceptions of Emotion: An Introduction to the Psychology, Anthropology and Linguistics of Emotion. Vol. 81, pp. 523-550. Leung, D. H., & et. al., 1995. The Benefits of “Guanxi”: The Value of Relationships in Developing the Chinese Market. Industrial Marketing Management, Vol. 24, Iss. 23, pp 207-214. Luo, Y., 2009. Analysis of Culture and Buyer Behavior in Chinese Market. Asian Culture and History, Vol. 1, pp. 25-30. Markus, H. R. & Kitayama, S., 1991. Culture and self: Implications for cognition, emotion and motivation. Psychological Review, Vol. 98, Iss. 2, pp. 224-253. McCarthy, E. J. & Brogowicz, A. A., 1981. Basic Marketing: A Managerial Approach. R. D. Irwin. O’Reilly, C. A. & Chatman, J. A., 1996. Culture as Social Control: Corporations, Cults and Commitment. Research In Organizational Behavioural, Vol. 18, pp. 157. Purdue University, 2012. Ethical Considerations in Primary Research. Purdue Online Writing Lab. [Online] Available at: http://owl.english.purdue.edu/owl/resource/559/02/ [Accessed April 19, 2012]. Rein, S., 2010. Mattel failed to understand how or where Chinese women shop. Where Barbie Went Wrong In China. [Online] Available at: http://www.forbes.com/2010/01/22/barbie-mattel-china-leadership-managing-rein.html [Accessed April 19, 2012]. Ruan, D. 1993. Interpersonal Networks and Workplace Controls in Urban China. The Australian Journal of Chinese Affairs, pp. 89-105. Umeron, E. U., 2000. Anthropology Contextualized In Nigerian Peoples and Cultures. Rivers State University of Science and Technology, Institute of Foundation Studies. Woo-Gil, C. 2001. The Korean Minority in China: The Change of its identity. Development and Society, Vol. 30. Iss. 1, pp 119-141. Walsham, G., No Date. What is Interpretive Research? Oslo University. [Online] Available at: http://www.uio.no/studier/emner/matnat/ifi/INF5740/h04/undervisningsmateriale/Lecture_1.ppt [Accessed April 19, 2012]. Appendix: Questionnaire for the Survey 1. What is your age? a. 18-25 years b. 26-40 years c. 41-54 years d. 55 & above years 2. What is your Occupation? a. Student b. Service c. Business d. Others 3. I have no issues working under a particular person a. Strongly agree 1 2 3 4 5 b. Agree 1 2 3 4 5 c. Neither agree nor dis-agree 1 2 3 4 5 d. Strongly dis-agree 1 2 3 4 5 e. Dis-agree. 1 2 3 4 5 4. I would like others to work under my leadership a. Strongly agree 1 2 3 4 5 b. Agree 1 2 3 4 5 c. Neither agree nor dis-agree 1 2 3 4 5 d. Strongly dis-agree 1 2 3 4 5 e. Dis-agree. 1 2 3 4 5 5. Decision making power motivates me to perform better a. Strongly agree 1 2 3 4 5 b. Agree 1 2 3 4 5 c. Neither agree nor dis-agree 1 2 3 4 5 d. Strongly dis-agree 1 2 3 4 5 e. Dis-agree. 1 2 3 4 5 6. What factor do you consider while purchasing a mobile phone? a. Features b. Brand name c. Price d. Design 7. Does occasion of purchase has any influence on the purchase decision of mobile phone a. Yes b. No 8. If yes, then do you alone make the decisions or it is consulted with your family. a. Individually b. Family 9. I prefer to remain in touch with peers and friends a. Strongly agree 1 2 3 4 5 b. Agree 1 2 3 4 5 c. Neither agree nor dis-agree 1 2 3 4 5 d. Strongly dis-agree 1 2 3 4 5 e. Dis-agree. 1 2 3 4 5 10. I commonly share my experiences with other social members a. Strongly agree 1 2 3 4 5 b. Agree 1 2 3 4 5 c. Neither agree nor dis-agree 1 2 3 4 5 d. Strongly dis-agree 1 2 3 4 5 e. Dis-agree. 1 2 3 4 5 Read More