Consumer Behaviour and Culture - Research Proposal Example

Table of Contents Table of Contents 1 Introduction 2 Research Aims 2 Objectives of the Research 3 Research Questions 3 Rationale of Research 3 Problem Statement 4 Literature Review 5 Research Methodology 7 Research Philosophy 7 Research Approach 7 Research Design 8 Research Strategy 8 Research Methods 9 Sampling and Data Collection 9 Data Collection and Analysis 10 Research Ethics 10 Time Schedule 11 Resource Requirements 11 References 12 Introduction The behavior of consumers in the current market place is being dominated by the increasing number of options for making their purchase decisions. With the expansion of the international market place, business houses are now able to cater their services in new markets. According to Boulding et al. (2010), the notion of globalization has instigated massive changes in the marketplace of the developing countries. In respect of the increase in market size, many notable changes have been observed in the customer behavior towards the multinational brand entering the markets. While scholars like Rallapalli (2008) considered globalization as a blessing for the customers considering the increase in the number of options for decision making, Weinberg & Gottwald (2006) stated that the traditional buyer-seller relationship is changing because of globalization. Considering these sentiments, the primary focus of this research will be to analyze the influence of globalization on the behavior of the customer towards the multinational brands entering into the market. Research Aims The aim of the research is to assess the influence of globalization on the customer behavior in respect to the multinational brands. The researcher also intends to evaluate the changes brought in the buying process of the customers as a result of globalization and identify the factors that are influencing the decision making process of the customers in the contemporary market scenario. Objectives of the Research To analyze the influence of globalization on the behavior of the customers in regards to the multinational companies. To examine the changes initiated in the buying process of the customers as a result of globalization. To identify the influence of globalization in the decision making process of the customers in respect of multinational companies. Research Questions How does globalization influence the customer behavior towards the new entry of multinational brands in their market place? What changes have taken place in the customer buying behavior as a result of globalization? What aspects of globalization has influenced the decision making process of the customers in context to the multinational companies? Rationale of Research The extent of globalization as a theoretical concept and reality is dominating the international business place. The concept of developing a unified market place for sustainable growth of the business houses and their customer base has taken a new shape, as the strategic aims of the business houses have altered from profit earning to accumulating customer base. On the other hand, the reaction of the customers towards the changes in the market place is mixed in nature. While some groups of customers are considering globalization to be one of the most advantageous alternations in market structure, others are finding it difficult to comprehend the developments in the market. In the words of Fornell (2007), globalization is not only for the business houses, it has given immense power to the customers by increasing the transparency in the market place. However, it is quite evident that despite having a larger market scope, many of the multinational firms are facing it difficult to perform in the new market places. This shows the contradictions in the nature of the business process and the correspondent customer response towards the entry of new firms in their market place. The researcher has selected customer behavior in relation to globalization to understand the qualitative aspects such as, the psychological influence of globalization on the consumer perception towards the multinational organizations. Problem Statement The subject matter of the research has considered two primary themes for formulation of the study namely, globalization and customer behavior. Both these contexts have been exclusively researched in the past, in respect of their individual significance. Studies relating to globalization have more often focused on the influence on business houses and the economies of the world, whereas, customer behavior have been researched in terms of marketing and customer relationship strategies being implemented by firms. The process of customer decision making on the other hand has been mainly studied in respect to the marketing processes of the businesses and the cultural influence on their decisions. Relating the aspect of globalization with the customer decision making will help in assessing the influence of the macro environment on the customer behavior. Furthermore, the research can throw light on the response of the customers in relation to the entry of multinational brands in their market place and the subsequent changes in the purchase behavior of the customers. Literature Review The notion of customer behavior is an inherent subject in economical and business segments. The existing researches performed over the years have reflected many theories, models, concepts and discussions regarding the factors influencing the consumer behavior and the process of customer decision making. Karr & Blohowiak (2011) stated that the decision making process of a customer consists of three main variables namely an object, the constraint and the variable for decision. In this definition, the object refers to the optimal utilization; constraint is measured in terms of resources, whereas, the decision variable is the actual amount of consumption that can be made with the available resources. Although the definition has been proclaimed to be accurate by many scholars, De Mooij (2010) criticized that terms such as utilization and resources can be analyzed in further details. In an economical context, utility can be further segmented as total and marginal utility. Total utility refers to the sum of satisfaction obtained from the utilization of all the available units. On the other hand, marginal utility reflects the changes in the total consumption as a result of consumption of additional unit or units (Bian & Moutinho, 2011). Moving on to the existing theories related to consumer behavior, an array of concepts can be observed such as economic man, psychodynamic approach, behaviorist approach or the cognitive approach. All of these theories have been designed considering the various aspects of consumer decision making and the factors which influence the consumers’ choices. Boulding et al. (2010) noted that the differences in the evaluation of different consumer behavior theories mainly depend on the definition of consumers. For instance, the economic man approach considers customers to be logical and self-interested and make their decisions based in order to enhance the utility by reducing the efforts made (Fornell, 2007). One of the primary assumptions of the economic man approach was that, as the decisions of the customers would be logical in nature, the customer must be aware of all the market information. Karr & Blohowiak (2011) criticized that in practical scenario, the information gathering process of customer is focused only on the targeted product base which reduces the scope information collection and hence the economic man approach does not represent an accurate customer decision making process. The psychodynamic approach developed by Sigmund Freud suggested the importance of instinct in the conscious decision making process of the customers (Boulding et al. 2010). According to psychodynamic theory, customer decision making is driven by three variables namely Id, Ego and Super Ego (Bian & Moutinho, 2011). The psychodynamic approach believes that the decision making process of customers is primarily dominated by psychological factors rather than environmental needs. The behaviorist approach is one of the oldest developing concepts in context of customer decision making and highlighted that behavior can be developing by moulding the external environment that surrounds an individual (Boulding et al. 2010). The approach of behaviorism has been developing in a segmented manner by many scholars overtime such as John Watson established the classical behaviorism and was followed by the establishment of radical behaviorism (Karr & Blohowiak, 2011). Further, development in this aspect refers to the involvement of cognitive behaviorism. All these theories have been designed surrounding the role of the psychological notions of an individual in the decision making process (Bian & Moutinho, 2011). In the modern-day scenario, the cognitive approach is mostly considered in order to evaluate the customer behavior and their decision making processes. Research Methodology The methodology of the study helps the researcher in framing the direction of the research within the scientific paradigms (Cooper & Schindler, 2010). The research methodology includes the processes which can be implemented by an analyst in order to improve the outcome of the study. The following segment includes the selections made by the researcher for performing the research: Research Philosophy The application of research philosophies is based on the process of gathering background information about the subject matter. The research philosophies commonly used can be segmented into three categories namely, epistemology, ontology and axiology (Kothari, 2008). Epistemology has been further segmented into three sub-categories namely, positivism, interpretivism and realism. Positivism is used for reflecting the data gathered in measurable terms and also justifying them in consideration of the research scenario, whereas, interpretivism is mostly used to investigate the psychological notions related to the data. Realism, also known as the study of senses, reflects the raw nature of data without analyzing them (Saunders, Lewis & Thornhill, 2009). In this research, both positivism and interpretivism will be used for analysis of the data collected during the study. Research Approach Inductive and deductive approaches are the primary approaches in a research. Inductive approach is used for formulation of new concepts and theories relevant to the subject of the study. The study begins from a narrow perspective and a wider scope is developed. Inductive approach is mainly qualitative in nature (Morgan, 2007). On the other hand, deductive approach is used in order to assess the validity of an existing model, concept or theory in consideration of the contemporary situations of the research field. In deductive approach, the study is framed around a specific objective based on a widespread scenario and a specific outcome is developed (Kothari, 2008). In this research, the researcher will consider the usage of both deductive and inductive approach. Deductive approach will help the researcher in analyzing quantitative aspects of the study and inductive approach will be used for explaining the qualitative aspects. Research Design Research designs can be of three types namely exploratory, explanatory and descriptive. Exploratory and explanatory researches are used mainly to reflect the findings of a study in a detailed manner. The use of explanatory design is mainly made in unstructured researches which do not have any set of objectives or time frame for completion of the research (Truscott et al. 2010). Descriptive design is used for structured studies where the research is being conducted for fulfilling a specific objective (Cooper & Schindler, 2010). Apart from this, descriptive research helps the researcher in gaining knowledge about the subject matter and reflecting the findings of the study with justifications aligned with the research objective. In this research, descriptive design will be used. Research Strategy Research strategy refers to the processes and aspects of research methodology used by the researcher for data analysis and interpretation process. Harrison & Reilly (2011) stated that research strategy reflects the compatibility of the data collected with the selected interpretation process and also includes the respondent groups considered in the research. For this particular study, the researcher has selected to perform a Likert Scale survey in order to gather the primary data, the secondary data will be collected from various online and offline databases with relevant information. The primary data collection process will also include interviews which will help the researcher in analyzing the research questions in an in-depth manner. Research Methods Qualitative and quantitative methods are the two fundamental research methods used for academic studies (Knox, 2008). Implementation of both these methods led to further formation of multi and mono research processes. In mono method, any one of the mentioned research processes is used, whereas, multi-method research includes both the forms of research process (Saunders, Lewis & Thornhill, 2009). Qualitative analysis is used for identification and analysis of the underpinning thoughts, concepts and the process of forming the answers by a respondent and is detailed in nature. Meanwhile, quantitative research processes analyze the data collected in measureable terms to derive a specific response from the interpretation. Quantitative analysis is performed with statistical tools such as tables and graphs (Cameron, 2009). For this study, the researcher will use a multi-methodology including both qualitative and quantitative methods. This will help the researcher in understanding the psychological as well as quantitative aspects in context of the research topic. Sampling and Data Collection Sampling processes within a study can be performed with probability or non-probability sampling. In probability sampling, the respondents of a study are selected in a random manner, whereas; in case of non-probability sampling, the respondents are selected in an objective process (Cooper & Schindler, 2010). While selection of probability sampling, the researcher must ensure that the selected sample represents all the groups related to the subject matter. In this research, probability sampling will be used as it allows the researcher to collect information from a larger group of respondents. The sample group will be formed with 100 customers selected randomly and 5 managers of various multinational organizations. Data Collection and Analysis As suggested above, the researcher will use both primary and secondary data for performing the study. The primary data will be collected with the help of Likert Scale survey from the customers included in the sample population; meanwhile, the managers will be interviewed. The researcher will try to perform face-to-face interviews; however, depending on the availability of the managers, the interview process can also be telephonic. The data interpretation will also vary for both groups of respondents. The data collected by Likert Scale survey will be analyzed with the help of statistical software SPSS to ensure accuracy and relevancy of the data. The analysis process will include Cronbach Alpha test and descriptive statistics. The interview data will be interpreted with the help of qualitative methods. Research Ethics The researcher will ensure that the study has been performed within the ethical and moral codes as given by the University. The information collected during the study will only be used for academic purposes and not with commercial intentions. The data collection process will refrain from employing force to gain favorable responses and will not be manipulated in any manner. The researcher will ensure that the sentiments and emotions of the respondents are not harmed during the data collection process. The data collected will be duly submitted to the University on completion of the study. Time Schedule Main activities/ stages Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Topic Selection Data collection from secondary sources Creating layout Literature review Formation of the research Plan Selection of the Appropriate Research Techniques Primary data collection Analysis & Interpretation of Data Collection Findings of the Data Conclusion of the Study Formation of Rough Draft Submission of Final Work Resource Requirements In order to perform the study in an appropriate manner, the primary requirement of the researcher will be to collect abundant sources of information related to the study. The researcher wills also need monetary and manpower support to perform the data collection process from a wide range of sample groups. Apart from this, software such as SPSS and other data analysis tools will be required for fulfilling the research requirements. Most importantly, the researcher will need adequate guidance from the mentor to ensure the accuracy of the research process. References Bian, X. & Moutinho, L., (2011). Consumer Behavior, Branding and Counterfeiting (4th ed.). New York: Business Expert Press. Boulding, W., Staelin, R., Ehret, M. & Johnston, W. J., (2010). A customer relationship management roadmap: what is known, potential pitfalls, and where to go. Journal of Marketing, 69(4), 155–66. Cameron, R. (2009). A sequential mixed model research design: design, analytical and display issues. International Journal of Multiple Research Approaches, 3(2), 140-152. Cooper, D. & Schindler, P. S. (2010). Business Research Methods (11th ed.). London: McGraw-Hill. De Mooij, M. K. (2010). Consumer Behaviour and Culture: Consequences for Global Marketing and Advertising. (4th ed.). Munich: Grin Verlag. Fornell, C. (2007). A national customer satisfaction barometer: The Swedish experience. Journal of Marketing, 56, 6–21. Harrison, R. L. & Reilly, T. M. (2011). Mixed methods designs in marketing research. Qualitative Market Research: an International Journal, 14(1), 7 – 26. Karr, R. & Blohowiak, D. (2011) Customer Satisfaction (4th ed.). London: Palgrave Macmillan. Knox, K. (2008). A researchers’ dilemma: Philosophical and methodological pluralism. Electronic journal of business research methods, 2(2), 119- 128. Kothari, C. (2008). Research methodology: methods and techniques (5th ed.). New York: Leadership Press. Morgan, D. L. (2007). Paradigms lost and pragmatism regained: methodological implications of combining qualitative and quantitative methods. Journal of Mixed Methods Research, 1(1), 48-76. Rallapalli, K. C. (2008). Consumer Ethical Beliefs and Personality Traits: An Exploratory Analysis. Journal of Business Ethics, 13(7), 487-495. Saunders, M. N., Lewis, P. & Thornhill, A. (2009). Research methods for business students, Page 52, 5th ed. Harlow: Prentice Hall Truscott, D. 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