The Debate Between Global Convergence and Global Divergence - Research Proposal Example

The debate between global convergence and global divergence BY YOU YOUR SCHOOL INFO HERE HERE The debate between global convergence and global divergence Part 1: Theoretical Foundations 1. Keillor, B.D. and Hult, G.T.M. (1999). A five country study of national identity: implications for international marketing research and practice, International Marketing Review, 16(1), pp.65-82. This research article is important in the debate between global convergence and global divergence as it pertains to cultural characteristics related to international consumption of products and marketing strategy development for multi-national organisations. The authors attempt to determine whether consumers in disparate nations, with unique cultures, maintain ethnocentrism when making purchasing decisions. The study is important as it provides previous empirical support which illustrates that there is substantial global convergence as a result of globalisation which has made disparity of culture non-existent. The study considers whether having a standardised international marketing strategy, relevant for all international cultures, is effective for multi-national companies. The study tests whether convergence or the antithesis, divergence, is the prevalent decision-making phenomenon when comparing different national cultures. In order to determine whether ethnocentrism still dictates consumption decisions, the study takes a quantitative approach to research, utilising a survey constructed with a Likert-type scale which measures the level of ethnocentrism in five countries: The United States, Japan, Mexico, Sweden and Hong Kong. Questions provided in the survey include, “It is always best to purchase American products” and “Americans should not buy foreign products because it hurts American business and causes unemployment” (Keillor and Hult 1999, p.71) assists in determining whether global convergence is a legitimate phenomenon. The article finds that ethnocentrism is still present in some nations whilst in other nations with unique cultures, divergence in cultural identity is still prevalent. The study found that the U.S., Mexico and Hong Kong maintain high ethnocentrism when making product decisions whilst in Japan and Sweden, there is divergence of ethnocentrism that is not aligned with other evaluated nations. The study is further important as it suggests implications for today’s multi-national company marketers that using standardised marketing strategies will not be effective and refutes the notion that global convergence is a legitimate fact. This indicates that marketers operating in foreign nations should develop marketing communications that are sometimes aligned with existing cultural norms and preferences. 2. Barthwal, S. and Gupta, N.L. (2013). Dominant cultural values in durable goods television advertisements of India, International Journal of Business Management and Administration, 2(9), pp.184-192. This article lends support for the notion of global convergence as a result of cross-cultural exposure in India. The research study is important as it illustrates that Indian cultural values have changed considerably through exposure to advertising from multi-national organisations, suggesting that increasing globalisation is more closely aligning Western values with Asian country values. For instance, India, a historically collectivist nation with very conservative values now embraces sexuality and elements of individualism in effective advertising content. From a marketing perspective, this research study provides new insights for international marketers that it is possible to alter cultural values of a nation by using standardised marketing communications that are effective in Western nations. The study’s methodology consisted of a qualitative approach. The researchers recruited 10 individuals to participate in a focus group. The sample consisted of older faculty members of a university and younger M.B.A. students between the ages of 21 and 24 years of age in order to provide a richer understanding of whether age contributed to whether cultural values remained traditional or became liberal as a result of globalisation. The study measured 26 different cultural values, including such concepts as family, respect for the elderly, tradition, and individualism to determine whether contemporary cultural values had changed as a result of exposure to cross-cultural advertising content. The study found that the Indian culture had changed radically, a support for global convergence, due to the cultural “melting pot” phenomenon. The study is important for contemporary marketers as it illustrates that it might be possible to develop a standardised marketing strategy when advertising in foreign nations as a result of globalisation and cross-cultural exposure. 3. Jamali, D. and Neville, B. (2011). Convergence versus divergence of CSR in developing countries: an embedded multi-layered institutional lens, Journal of Business Ethics, 102, pp.599-621. This research study seeks to determine whether convergence or divergence is a phenomenon related to corporate social responsibility in multi-national companies and small-to-medium enterprises operating in Lebanon. This study is important as literature recognises that there is a growing trend known as ethical consumption in which consumers select products or services from companies that maintain a strong emphasis on social responsibility, rewarding companies with patronage for promoting these values and chastising companies that do not have a potent ethical focus (Grande 2007; Nicholls and Lee 2006; Newholm 2005). From a marketing perspective, therefore, the literature supports that multi-national companies should emphasise their core values related to CSR in order to gain consumer interest and profitability. This study utilised a qualitative approach to research, recruiting 40 different representatives from SMEs and MNCs operating in Lebanon. Interviews were conducted face-to-face with these representatives, highlighting such concepts as philanthropy, sponsorship of volunteerism, environmentalism and civic action. The study found that philanthropy was a dominating theme recurrently expressed by nearly all participants. As a response to global pressures from consumers which demand philanthropic donations and other philanthropic activities, it is changing business ideology related to CSR where businesses are more actively promoting these ethical values and contributing more to communities and charitable organisations. The study is important as it provides support for global convergence in corporate philosophy, providing support that companies should be utilising corporate social responsibility as a marketing tool that is viable in multi-national environments and in developing nations. 4. Nezakati, H. and Akhoundi, M. (2013). Globalisation and consumer behaviour: global marketing strategies implication – homogeneity and heterogeneity, Journal of Social Sciences, 4(1), pp.1-5. This research study attempted to uncover whether globalisation was leading to global convergence of consumer behaviour. The study is important as it provides a framework for determining whether standardised marketing strategy or heterogeneous strategies are more effective from one international market to the next. This study utilised a mixed methodology, both quantitative and qualitative, consisting of direct interviews and a questionnaire instrument. Interviews were conducted face-to-face whilst questionnaires were mailed to the selected sample recruited for the study. Findings indicated that whilst convergence existed in some dimensions of consumer behaviour, such as culture influenced by globalisation, divergence was more prevalent in areas of unique consumer values and lifestyles that are disparate in different nations across the world. This study lends more support that the utilisation of a standardised marketing strategy is impractical and that unique characteristics of different international market segments will defy being able to create homogenous marketing strategies that will be relevant and effective in many international markets. 5. Hunt, S.D. and Arnett, D.B. (2004). Market segmentation strategy, competitive advantage and public policy: grounding segmentation strategy in resource-advantage theory, Australasian Marketing Journal, 12(1), pp.7-25. This research article attempts to determine whether market segmentation strategies should be founded on global convergence or divergence. The paper explores the foundation that there is still considerable heterogeneity in international markets that defies the use of a standardised set of marketing strategies that would be deemed relevant from one international market to the next. The study utilised a case study approach, using the multi-national firm Black & Decker as an example. This study found that the Black & Decker company was ineffective in segmenting with a standardised set of characteristics, which lends more support for continued global divergence. This supports the work of Allenby, Arora and Ginter (1998) who argue strongly that divergence is a prevalent and legitimate fact in international marketing. As a result, the study is important in making MNCs evaluate their segmentation strategies, taking into consideration unique characteristics of disparate international markets and not adopting standardised segmentation criteria. 6. Movius, L. (2010). Cultural globalisation and challenges to traditional communication theories, Journal of Media and Communication, 2(1), pp.6-18. This study explores the dynamics of potential global convergence as it pertains to globalisation and media influence on changing cultural attitudes and values. It is a non-biased exploration of secondary literature touching on whether globalisation is leading to increased global convergence and the notion of a “global consciousness”. Through exploration of existing empirical studies, the article lends support for both convergence and divergence as a result of such phenomenon as cultural imperialism, cultural diversity and even the influence of geopolitical systems. The study is important as it reinforces that there are certain criteria in which homogeneity and heterogeneity are prevalent, which should serve as a considerations when utilising media as a marketing tool internationally. The study provided very mixed results, leaving questions still regarding whether convergence or divergence is most prominent as a result of globalisation. The most prominent result is that companies must consider the unique cultural characteristics of desired markets, more support for divergence, when constructing promotional strategies. 7. Viswanathan, N.K. and Dickson, P.R. (2007). The fundamentals of standardising global marketing strategy, International Marketing Review, 24(1), pp.46-63. This study uses the three-factor model of marketing standardisation as a comparison against other secondary literature and empirical studies. This model measures three criteria: homogeneity of customer response to a marketing mix, the ability to transfer competitive advantage, and similarity in levels of economic freedom (Viswanathan and Dickson 2007, p.46). This study is important as it lends further support for the prevalence of divergence rather than convergence as a result of price sensitivity and promotional strategy impact which differ from one culture to another. The study finds that there is more evidence for divergence and offers implications to marketers to use the three-factor model to assess market characteristics before attempting to standardise global marketing strategy. 8. Douglas, S.P. and Craig, C.S. (2011). Convergence and divergence: developing a semiglobal marketing strategy, Journal of International Marketing, 19(1), pp.82-101. This study explores secondary literature on whether companies can utilise standardisation in marketing strategy in order to experience international market success. It is important as the study explores multi-faceted dimensions of different international markets such as attitudes in developed markets, emerging markets, rural versus urban markets, and country-centric strategies. This provides a richer and more diverse recognition of factors that could drive either convergence or divergence without an emphasis on culture as a criterion. The study found, as with much other literature, that there is more evidence that divergence is still a prevalent phenomenon. The main conclusion is that multi-national marketers will have considerable difficulty using standardised practices and must use diversity of strategies in order to be successful in multiple international markets. 9. Lawson-Borders, G. (2003). Integrating new media and old media: seven observations of convergence as a strategy for best practices in media organisations, International Journal on Media Management, 5(2), pp.91-99. This study explores the different components and concepts of convergence to determine whether utilisation of new media converges with old media structures in contemporary society. The study utilises a case study approach to data collection, consisting of hours of taped interviews, field notes and observational research in three organisations: Media General, Tribune Company and Belo Corp. The study found little support for convergence in how new media is utilised as compared to old media structures. For instance, 18-30 year olds, today, are not using newspapers where once this age group actively utilised this media source. This is a result of changing preferences for Internet news sources. The study is important as it provides implications for marketers that they must be diverse in launching marketing communications when using media as a marketing medium which cannot be standardised effectively. The type of media engaged by different consumers would theoretically complicate reaching desired target audiences. This article, again, provides more support for divergence at least as it pertains to media access and usage patterns. 10. Deuze, M. (2007). Convergence culture in the creative industries, International Journal of Cultural Studies, 10, pp.243-263. This research study adopts a case study approach examining Amazon.com, the computer game Counter Strike, and the CPB Group (and advertising company) as a means of exemplifying different media outlets. The study attempts to evaluate whether global convergence is prevalent which influences advertising strategy for marketers. It is important as the study provides knowledge regarding what phenomenon drives convergence in media culture that would have implications for today’s marketing entities. The study found that consumer co-creation is representative of a global convergence in which consumers are more interested in brands where they can produce and publish their own creative content. The study found that the desire to be participatory in creative industries is convergent and companies are more successful in the marketing function when allowing consumers to become involved in interactive advertising. The theoretical implications are that consumer co-creation, when utilised, will influence consumption behaviours. As with other studies, convergence was only present in a singular category and does not lend support that multi-faceted convergence is present in disparate international cultures. Part II: Primary Research Proposal Title: To what extent does culture and lifestyle contribute to measurable global divergence as it pertains to the relationship between consumer and multi-national marketer? 1.0 Introduction The annotated bibliography provided majority support for divergence as a continuing and prevalent phenomenon when assessing the disparities between international cultures. Theoretically, it would be substantially beneficial in terms of labour and financial capital expenditures if marketing organisations were able to standardise marketing strategies that would be viable in multiple international markets. However, as indicated by the research, divergence as a legitimate aspect of disparate consumer characteristics, cultures and values would seem, in most instances, to forbid such homogeneous international developments. De Mooij (2003) supports the pervasiveness of global divergence, using the global procurement of televisions versus actual television usage as a relevant example. The researchers compiled television set purchasing data from 15 different European nations between 1960 and 1997, which illustrated substantial convergence by consumers in these countries. Figure 1 illustrates this convergence phenomenon. Figure 1: TV Sets per 1000 in Europe Source: De Mooij, M. (2003). This convergence representative in Figure 1 in television consumption was characteristic of microeconomic changes in each European nation through which a new media channel for knowledge and entertainment was marketed, hence forcing consumption of television sets in order for consumers to stay modern and relevant. However, divergence in actual viewing, per nation, was substantially divergent as illustrated by Figure 2. Figure 2: Viewing minutes per day, per person, in Europe Source: De Mooij (2003). The specific rationale for this divergence is not fully understood, however De Mooij (2003) again suggests it is a product of increasing wealth in each nation which had dramatically different impact on consumers as theoretically related to their free time, cultural differences and choice of recreational activities. Hence, as described by Nezakati and Akhoundi (2003), divergence is a product of different international markets sustaining unique values, cultures and lifestyles that would challenge creating standardised marketing strategies relevant in different nations. As illustrated by Figure 2, this high level of divergence in television viewing would complicate the process of using television as a medium for capturing the interest and attention of mass markets in different international marketing environments. Though television viewing representing divergence is only one relevant example, it does lend ample support that culture and lifestyle in disparate international markets would defy the ability of today’s marketers to develop standardisation practices (a unified global strategy) that would be relevant in different nations. Zhang and Khare (2009) supports this notion, suggesting that even in the face of globalisation, consumers have hybrid characteristics which result in very unique consumer behaviour patterns in different international markets (Cleveland and Laroche 2007). As a result of the overwhelming literature indicating more prevalence of divergence rather than global convergence, this proposed study attempts to further explore whether cultural characteristics and consumer lifestyle are legitimately catalysts that lead to ongoing convergence even in the face of rapid globalisation across the world. Convergence has been recognised as being a legitimate phenomenon in areas of corporate strategy related to CSR initiatives and consumer co-creation with new media. However, there is a significant research gap in knowledge about the relationship between culture and lifestyle as measurable criteria that would forbid standardisation of a relevant global marketing strategy. 1.1 Aims and objectives This proposed study aims to explore the relationship between culture and lifestyle as consumer attributes that lead to recurring global divergence from a marketing perspective. The study has three specific objectives for the research: Examine cultural differences in many different international markets that may contribute to disparities in consumption behaviour, purchasing decision-making and attitude toward different international brands. Explore the lifestyles of selected international markets to determine the level of impact on the ability of contemporary marketers to gain attention, interest and potentially brand loyalty. Provide a series of recommendations for modern multi-national firms regarding whether disparate marketing strategies should be developed or whether, in fact, standardised global marketing strategies would be relevant and successful. The proposed study’s research question is to what extent does culture and lifestyle contribute to measurable global divergence as it pertains to the relationship between consumer and multi-national marketer? 2.0 Brief literature review In China, as one relevant market, masculine consumption behaviours vary substantially from that of Western countries. Male Chinese consumers dream of having fashionable clothing, having nice-looking skin and fantasize of being perceived as gentlemen by purchasing facial cream made out of top quality pearls (Wen 2007). Consumers in China, as a cultural set of values, are known to be hedonistic, which entails being self-indulgent and seeking pleasure as a primary set of personal goals (Mees and Schmitt 2008; Lemos 2004). In the United States, however, as discovered by Galilee (2002), male consumers are quite reluctant about discussing fashion and grooming as it is perceived to be socially-unacceptable in their gender roles. Even though China and the United States maintain a very strong trade relationship and Western ideologies are often introduced into the country, the significant disparities between cultures would theoretically defy using a standardised global marketing strategy; at least in the fashion and grooming industries. In Kuwait, consumers deem themselves as being highly fashionable and actively seek consumption of prestigious goods in an effort to impress important reference group figures in the society (Rice 1999). Status consumption serves as a cultural symbol of social standing in this country. In Japan, in contrast, consumers are more inclined to illustrate thrift in consumption which is aligned with traditionalist Japanese cultural values (Hofstede Centre 2013). Again, from a theoretical perspective, marketers would likely receive minimal positive enthusiasm and response by using elements of conspicuous consumption in marketing communications in Japan, whilst in Kuwait there would likely be more consumer interest if integrated marketing strategies were aligned with elements of sophistication, social indulgence and premiumisation positioning amongst competition. Though the examples using China, Japan, Kuwait and the United States are only four relevant examples, it does provide evidence that the vast disparities between cultural ideals and norms would likely provide divergence for multi-national firms attempting to create standardised marketing strategies in multiple countries. Hence, as it pertains to culture and lifestyle, it would appear that the literature is, thus far, correct in evaluating that lifestyle and culture forbid global convergence as it pertains to marketing strategy development for the multi-national. 3.0 Methodology This study will take a quantitative approach to research, utilising surveys developed with a Likert-type scale with a ranking structure between 1 and 5, where 1 = strongly agree and 5 = strongly disagree; a score of three will represent neutrality. When a survey instrument maintains substantial volumes of response categories, consumers have a difficult time discriminating productively which can reduce validity of responses (Al-Khalifa and Peterson 2002). The study will recruit between 50 and 100 respondents utilising a random sampling method in order to provide richer and more diverse data from disparate participants. The survey will be distributed outside of regional commercial centres which maintain ample consumer patronage. Through observation, the researcher will approach diverse consumers maintaining different ethnic and cultural characteristics asking for their participation in the study. The researcher will collect demographic information on those recruited for participation, inclusive of their ethnic, cultural and gender backgrounds. It will be the goal of the study to gain perspectives from Asian, Middle Eastern and Western-oriented consumer segments to add breadth to the data collection process. Questions in the survey will be inclusive of cultural characteristics, cultural beliefs, consumption behaviours and preferences, and lifestyle elements. Data will be analysed using a correlation analysis to determine whether specific cultural and lifestyle dynamics of the recruited sample maintain direct or indirect relationships to consumption decision-making. These results will be charted and any notable correlations related to specific participant demographics discussed in depth. The weakness of the survey approach is that it does not allow for exploration of more comprehensive evaluation of the specific catalysts that lead to consumption behaviours and attitudes toward marketing communications. Quantitative studies provide valid and scientific results representative of numerical findings which improve study credibility, however it lacks the ability to evaluate consumer behaviour in terms of omnipresence of complex variables of attitude and values that might also contribute to consumer consumption decision-making. 3.1 Rejected methodologies The study had considered utilising a qualitative approach, recruiting disparate consumers hailing from different ethnic and cultural backgrounds to participate in focus groups. Focus groups could explore complex emotions and attitudes related to marketing, consumption, culture and lifestyle. However, such an effort is beyond the resource capabilities of the researcher and would likely entail guaranteeing some form of remuneration for participation. Additionally, it would reduce the ability of this study to focus on specific dynamics of culture and lifestyle, hence making it difficult to evaluate findings. The researcher does not maintain advanced competencies in sociological and psychological knowledge, hence evaluation of complex and multi-faceted consumer-generated data would reduce study validity. The study also rejected utilising interviews as a relevant approach due to researcher limitations to recruit a sufficient sample group that would provide the necessary breadth and depth of understanding regarding culture and lifestyle. To conduct between 50 and 100 interviews is not within researcher capability. Additionally, analysis of this high volume of achieved data would require consultation with many different empirical studies and theories in socio-psychological and cross-cultural knowledge which is also not feasible based on researcher educational competency and timeframe available to conduct the research study. 3.2 Ethical considerations The only ethical consideration is providing and guaranteeing anonymity for the recruited participants. Recruited participants will be provided with an ethical consent form that describes there will be no compensation for participation and that all demographic and cultural information will be kept private in the publishing of study results. This reduces liability for both the researcher and the educational facility. References Al-Khalifa, A.K. and Peterson, S.E. (2002). On the relationship between initial motivation, satisfaction and performance in joint ventures, European Journal of Marketing, 38(1/2), pp.150-174. Allenby, G.M., Arora, N. and Ginter, J.L. (1998). One the heterogeneity of demand, Journal of Marketing Research, 35(3), pp.384-389. Cleveland, M. and Laroche, M. (2007). Acculturation to the global consumer culture: scale development and research paradigm, Journal of Business Research, 60(March), pp.249-259. Galilee, J. (2002). Class consumption: understanding middle class young men and their fashion choices, Men and Masculinities, 5(1), pp.32-52. Grande, C. (2007). Ethical consumption makes mark on branding, The Financial Times. [online] Available at: http://www.ft.com/cms/s/2/d54c45ec-c086-11db-995a-000b5df10621.html#axzz2kT95cwFY (accessed 21 April 2014). Hofstede Centre. (2013). What about Japan? [online] Available at: http://geert-hofstede.com/japan.html (accessed 20 April 2014). Lemos, J. (2004). Psychological hedonism, evolutionary biology, and the experience machine, Philosophy of the Social Sciences, 34(4), pp.506-526. Mees, U. and Schmitt, A. (2008). 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