Marketing to the South Asian Population - Assignment Example

Chapter Conceptual Background New waves of immigration and widespread increase of ethnic diversity during the past years have led to the increaseof heterogeneity in regional cultures. Ethnic minorities now play greater roles in the economies of developed countries in general and the UK specifically. According to National Census 2001, there are 2,331,423 Asians and British Asians living in the UK, which comprises 50.3% of ethnic minorities in Britain. 1.8% of total UK population are Indians, 1.3% are Pakistani, 0.5% are Bangladeshi, and 0.4% belong to other Asian nationalities (Census 2001). Moreover, the increase of ethnic diversity has become a trend that will increase, which means that UK population will be even more heterogeneous in future. (Halsey, 2000) The number of immigrants from South Asia will rise, which means greater social weight for this group - currently, the largest of all ethnic minorities in the UK. Adding to social weight also means adding to economic value of South Asian population in Britain. Previously perceived as lacking the purchasing power (Sivanandan, 1989) ethnic minorities now present a significant segment "as consumers, workers, and investors in Europe new immigrant groups are beginning to impact the economic, social and political scene" (Palumbo and Teich, 2004). On the one hand, the significance of ethnic minorities increases, and on the other one, practitioners lack the information on how to use their presence. Indeed, buying behaviour of foreigners differ from European significantly. For instance, Delener (1990) finds that religiosity affects significantly buying behaviour of many ethnic groups. Therefore, understanding of purchasing habits of people from minority ethnic group requires understanding of their cultural differences, which become apparent in ethnic identities of each nation. Despite the wide academic interest to immigrant adaptation (Bhugra et al., 1999; Masuda et al., 1970; Phinney, 1990; Ward and Kennedy, 1994) there is still a significant lack of coherence in the description of ethnic identity, particularly because of terminological issues. Ethnic identity is explained in early studies as common ancestry based on shared individual characteristics and socio-cultural experiences (Drieger, 1978); and as fellings of belonging or commitment (Ting-Toomey, 1981). Later researches consider ethnic identity of a group or individual as the maintenance of original ethnic persona (Laroche et al., 1998) and a sense of shared values and attitudes (White and Burke, 1987). Thus 'ethnic identity' is not a clear term, but rather an umbrella of terms close to each other, yet not exactly similar, remaining opened for new perspectives. Consequently, such multi-dimensional definition of ethnic identity has led to wide acceptance of its multi-dimensional nature (Christian et al., 1976). Another underlying notion widely agreed is that ethnic identity is bound to culture. (Rosenthal and Hrynevich, 1985). However cultural dimensions vary across studies, proposing different models for the analysis of ethnic identity, mainly depending on the particular observed identity. For instance, Palumbo and Teich (2004) indicate religion, rite of passage, language, food and leisure as dimensions of Hispanic ethnic identity. Laroche et al. (2005) while observing differences between Greek and Italian identities, analyse three dimensions: ethnic language use with family members, ethnic language media exposure and ethnic attachment. More general research of Constant et al. (2006) measured ethnic identities of ex-Yugoslavian, Greek, Italian, Turkish and Spanish ethnic groups with five elements: language, culture, social interaction, history of migration, and ethnic self-identification. Without further excessive specification, seven widely accepted dimensions of ethnic identity are given: language, friendship networks, religious affiliation, participation in clubs and organisations, food preferences, traditional celebrations, and politics. Ethnic minority groups present a vast field of interest for marketing, as ethnic identities have to be considered to affect their buying behaviour. Careful segmenting is impossible without considering seven dimensions of ethnic identity given above. The next section deals with marketing theories describing ethnic minorities. Cultural Diversity and Marketing The global trend of ethnic minorities increasing in size and economic power (Penaloza and Gilly, 1999) has led to the increase of attention towards micro marketing and market segmentation strategies. The contemporary capitalist creation of consumers frequently involves the tailoring of products to increasingly specialized regional, societal, ethnic, class and gender markets. (Lash and Urry, 1994). It is increasingly important to operate with modern market realities while developing a marketing strategy. Interestingly, most of the businesses in USA have reacted to this trend faster than many European companies; mainly because of the fact that American researchers (Bauer and Cunningham, 1970; O'Guinn and Meyer, 1984) have shown their interest to assessing the market potential of subcultural groups as new market segments earlier than others. While American manufacturers and service providers have already adopted their marketing mix strategies to target ethnic minority consumers (Edwards, 1994; Gore, 1998; Mummert, 1995) market segmentation in accordance with cultural diversity is still new to European marketers (Burton, 2000; Nwankwo and Lindridge, 1998). Particularly, Nwankwo and Lindridge (1998) notice that it is hard to find large British companies with a well-developed multi-cultural marketing plan, although Jamal (2003) describes a number of ethnic retail enterprises (e.g. supermarkets specialized on products for Japanese cuisine) emerged in the SME business sector during the last decades in the UK. Still, efforts at marketing to ethnic minorities are immature in Britain. Theoretical analysis of marketing in a multicultural environment starts with understanding the roles marketers and consumers in this environment. On the one hand, Jamal (1996) argues that in a multicultural marketplace, marketing enterprises are owned and operated by people of different ethnic backgrounds that co-exist with the ambition of identifying and serving the needs of consumers of different ethnic backgrounds. On the other hand, consumers of different ethnic backgrounds interact with one another, go shopping, and make their consumption choices in accordance with their interactions and experiences with marketers of different ethnic identities (Penaloza and Gilly, 1999). Therefore, multicultural marketplace puts marketers and consumers of different ethnic identities into united and intersecting cultural environments (Penaloza and Gilly, 1999). Some researchers even identify marketing as a cultural intermediary producing new cultural symbols and interpreting them in such a context (Elliot, 1999). Obviously, marketing plays an important role establishing co-existence of various lifestyles in the field of consumption. Marketing in a culturally diverse environment is impossible without segmentation. This assumption has become accepted so widely, that segmentation became some kind of life buoy for every marketing strategy (Wind, 1978). Difficulties that companies encounter in segmenting serve as a contradiction to all-cure effect of segmentation (Dibb, 1998; Doyle, 1995; Doyle et al., 1986). Unfortunately there is still lack of academic knowledge to put an end to this contradiction. Market segmentation has rather simple general structure: segmenting (choosing variables and building profiles for segments), targeting (identifying how many and what segments will be targeted), and positioning (designing appropriate marketing mix for a product) (Kotler, 1984). So why segmentation sometimes fail, in spite of its easy-to-use structure First of all little research was done in this field, which is perceived as one of three key problems of segmentation failure. Dibb (1998) argues that there is a lack of evidences about the impact of segmentation on business performance. He also stresses other two reasons: lack of understanding of segmentation principles with marketers and lack of practical guidance to make segmentation successful (Dibb, 1998). Numerous recommendations on the use of segmentation are proposed with McDonald and Dunbar (1995), but still problems stated by Dibb exist. Thus, market segmentation strategy is welcomed and at the same time deterrent. Welcome because of the rising need to apply individual approaches to each ethnic minority group, and deterrent because theory in segmentation is weakly developed, and European practitioners have to adapt American theoretical conclusions. Chapter 2 General knowledge of acculturation Acculturation is a well-known concept describing cultural changes experienced by migrants. Each ethnic group possesses a unique mix of values, attitudes, traditions, language, religion etc. Acculturation refers to the degree these values are replaced or increased with host country's values: that is, a person's or cultural group's learning and adoption of the values and norms of another culture. (Pires and Stanton, 2000) There is an assumption that individuals follow a linear path between the original home culture and the host culture. New values and behaviors are acquired additively through increased contact with the new culture and the influence of mass media. (O'Guinn et al., 1986) Although this assumption seems to be rational there are contradictions: Faber et al. (1987) argues that sometimes cultural patterns do not fit neatly between the culture of origin and the host culture, being distinctly different from both groups. This controversy is explained with four different forms of acculturation: 1) cultural resistance, the attempt to ignore the new culture while maintaining the culture of origin; 2) cultural shift, the substitution of new cultural norms for native customs; 3) cultural incorporation, the adoption of some of the new culture while keeping some of the culture of origin; and 4) cultural transmutation, the alteration of original and new cultural practices to create a unique subcultural entity. (Pires and Stanton, 2000) Acculturation is multi-dimensional process as can be seen from its definition. Different values and attitudes change in different ways, irregularly. Khairullah and Khairullah (1999) in their study of Asian Americans found a significant relationship between behavioral acculturation and spouse's ethnicity, the respondent's occupation, education in USA, and spouse's occupation, religion, and whether the respondent came from city/town/village in India. These factors affect acculturation significantly, determining its form and intensity. Ethnicity and acculturation Already discussed in this research, ethnicity has a number dimensions. Discussions of interrelationship between acculturation and ethnicity have been excessive and yet, without any common conclusion. For instance, Laroche et al. (1997) indicates that acculturation changes aspects of ethnicity non-uniformly; an individual can be 'slightly ethnic' and 'strongly ethnic' at the same time in different dimensions. On the opposite, Deshpande et al. (1986) understand the intensity of ethnic identifier as self-identification. That is, strongly ethnic person expresses strong self-identification with an ethnic group. In this context, ethnicity is changed uniformly, with self-identification transferring from one ethnic group to another. Ethnicity in many ways is determined by acculturation. However, the process, by which ethnicity changes in response to acculturation remains unclear. Pires and Stanton (2000) propose the following method to dispel this obscurity. In their study ethnicity is constructed from three elements: ethnic origin, ethnic identity, and ethnic intensity. Ethnic origin is natural identification with the ethnic group, into which an individual is born, invariable obviously. Ethnic identity reflects affiliation with a specific ethnic group (a recognition by that group is required), and it can be changed as the acculturation develops from one group to another. Finally, ethnic intensity refers to how strongly a person is associated with an ethnic group. (Pires and Stanton, 2000) Intensity, clearly can also be changed by acculturation, but unlike ethnic identity determining the direction of identification vector, it determines its value. In this way, a clear connection between ethnicity and acculturation is established. Acculturation and consumption Consumers choose products that are instrumental in achieving important needs, values and goals. The belief about products is formed by consumers on the basis of their personal experiences, interpersonal sources and mass media (Engel et al., 1993). Consequently, acculturation chosen by a certain individual determines its consumption habits to large extent. Lee and Um (1992) propose that subjects operate with subjective (e.g. emotional benefits) and objective (e.g. price) criteria when selecting products. Therefore culture serves as a valuator of importance of different criteria. Additionally, culture also emphasizes the subjective criteria through implicit symbolic meaning system for consumer products, established in society. The interrelation between acculturation and consumption is evident, but exactly acculturation affects consumption Empirical evidences from the study of Asian-Indian consumers in the US by Rajagopalan and Heitmeyer (2005) provides the following results. Asian-Indians with low levels of acculturation were involved in Indian ethnic apparel higher than others. Moderately acculturated consumers were less involved, but surprisingly as acculturation increased, they became more involved into Indian ethnic apparel. This is explained, as Asian-Indians who get used to their new environment felt the need to connect with their home culture. According to the presented empirical evidences from Rajagopalan and Heitmeyer (2005) at first acculturation changes consumption into new host country style, and then it turns into home consumption style renewal. Ethnicity and consumption Examining relations between ethnicity and consumption one finds that ethnicity in a context of marketing becomes an image or style, different for each ethnic group, and therefore can be used to show affiliation with a particular ethnicity (Jamal, 2003). Wearing or owning a traditional ethnic dress can be a manifestation of ethnic identity (Forney and Rabolt, 1985). Therefore, individuals who feel their belonging to a certain ethnic group adopt consumption behaviour traditional for that ethnicity. The empirical study of ethnic minority consumers in the USA by Oswald (1999) emphasised the interdependence between consumption and ethnicity as moments in the ongoing construction of personal and social identity. Consumers' personal and social identity was conditioned with several dimensions of ethnicity, including class, race, and ethnic identification (Oswald, 1999). However, Stayman and Deshpande (1989) argued that multicultural societies provide not a single but a set of ethnic identities, and therefore individuals can show their affiliation to one ethnic minority and then to another, using consumption style as an image. This fully correlates with dynamic nature of ethnic identity (Jamal, 2003). That is ethnicity can be used as label, a brand in the context of consumption style. Attitudes and values As it was stated previously ethnicity implies a certain system of attitudes and values provided by culture. Therefore, acculturation as a process of change from one culture to another affect attitudes and values replacing the old ones or adding new. Cultural symbols of home ethnicity can be partially replaced with new symbols, but usually the old cultural symbols live long, and even second and third generations of immigrants try to maintain their native culture (Palumbo and Teich, 2004). Holland and Gentry (1999) describing the behavior of companies targeting on ethnic markets, indicate that language is not a single ethnic attribute used in advertising. A full range of communication tools and cultural symbols is drawn, including race, appearance, festivals, traditions etc. Use of traditional ethnic stereotypes and symbols can be a key, opening a product to ethnic minorities. Chapter 3 Religious differences and impact When considering differences between cultures one cannot forget about religious differences. Religion represents a structured set of cultural norms and values nourished in culture of a particular society. Religion becomes a link to native culture for immigrants. Religion and its practice is the most significant aspect of an ethnic minority's identity to be retained after language, leisure activities and dietary habits have changed (Bhugra et al., 2000). That is why religious differences between India and Britain are important to analyze when talking about South Asian ethnic minorities in Britain. Comparison of British and Indian cultures in the work of Lindridge and Dibb (2003) has showed that Britain is much more individualistic than India's collectivist society. The reasons can be found in different religions of these two cultures: unlike Britain, where religion is perceived as peripheral to the individual, religion is an inherent expression of Indian cultures (Lyon and West, 1995). Indeed, individualism in British society can be attributed to its Christian orientation. In rejecting the ordination of God, individual decision-making becomes motivated by the realisation of personal interests, culminating in the individual's needs being motivated by personal rather than group interests (Crittenden, 1992). Meanwhile, religion and personal life are united in Indian society (Venkatesh, 1994). This outlook results in inter-dependence of members of Indian society contributing to collectivism. Religion provides means for Indians living in Britain to maintain their cultural values, ethnic identity and self-pride where racial discrimination is widely experienced (Lindridge and Dhillon, 2002). Bounding to their religion British Indians retain their native culture, and maintain their ethnic identity features, such as collectivism. Religion, culture and consumption Eastern-oriental religions explain gain of material goods as a reward for complying religious rules and regulations. Therefore, materialism and spirituality are not considered opposites in South Asian societies (Venkatesh, 1994). In turn, this explains higher level of materialism in South Asian society than in Britain. However, as immigrants from South Asia became accustomed to British culture they also show lower levels of materialism. The analysis performed by Lindridge (2005) indicated that Indians living in Britain and British Whites sample groups were culturally less consumption-oriented than Asian Indians. Thus, religion can also be perceived as an acculturation agent. Another factor affecting materialism and religiosity of South Asian minorities in Britain is the socio-economic status. The study of Lindridge and Dhillon (2002) has showed that South Asians of middle class display lower levels of materialism and higher levels of religiosity in comparison with lower class Indians. Indeed, materialistic perception and use of products for status enhancing are associated with lower religiosity and lower socio-economic classes having greater inclination (Lindridge and Dibb, 2003). Eastern religious perception promotes consumption, while Western religions disapprove it. That is why when immigrants from South Asia become acculturated to Western lifestyle their level of materialism becomes inversely proportional to their religiosity. Additionally, higher socio-economic classes show higher levels of religiosity and lower levels of materialism in comparison with South Asians from lower socio-economic classes. Religion and culture: self identity As it was stated in the beginning of Chapter 3, religion can be a tool of preserving self identity for ethnic minorities. Approval of materialism by Indian religion leads us to the conclusion that for Asian Indians the use of products as a status symbol may be used to provide visible and legitimate expression of their status and influence and to demonstrate religious adherence in this way (Sinha, 1982). Therefore, for South Asians living in Britain the degree of use of products enhancing their self-identity must be higher than for British Whites, but lower than for Asian Indians. Eastern religion and culture inter-relate reinforcing ethnic allegiances and providing strong self identification with an ethnic minority group. Self-identity of Indians living in Britain indicate higher levels of individualism than for Asian Indians. Particularly, individualism levels are even higher for British Indians who show low religiosity (Lindridge, 2005). Religion supports self identity of an individual as belonging to its native ethnic minority group. Religion serves as a base for such ethnic identity features as collectivism, cooperation, materialism and interdependence, high value of a family and friends. Put simply, religion is inherent within all aspects of Indian life, and attachment to it will serve as attachment to Indian lifestyle. Religion and culture: role of family British Asian families serve as smaller communities retaining ethnic identity. Children are socialized into Indian collectivist cultural values of cooperation, duty, favoritism, interdependence, nurturing, obedience and reliability (Triandis, 1988). In Indian culture land, money, and material goods belong to family. Family status is enhanced through enhancing the status of family members. Indian people do not believe in family planning and treat children as gifts from gods. Indian families imply gender inequality: sons earn money and support their parents during their old age. Daughters have to be given a lot of dowry when they get married, that is why sons are usually more preferred than daughters (Burgess et al., 1963) Marriages are usually held between persons from the same community. Indian families traditionally consist of parents, grandparents, and children living under the same roof. Elders are highly respected, because of knowledge and wisdom they have gained throughout their life. Their authority is not questioned. Indian family is much closer related than the British one. For instance, a stress experienced by family members is shared by whole family, especially women in the household. At the same time, sharing family issues with others is not accepted in Indian culture. Altruism for the sake of the family is highly valued (Burgess et al., 1963). Although Indian cultural traditions seem to be weaker in immigrant families, still most of the South Asians abroad follow the traditional lifestyle of Indian families (Stopes-Roe and Cochrane, 1990). General attributes that can be perceived to Indian family are as follows: high inter-dependence, collectivism, obedience and mutual aid. Chapter 4 Marketing to ethnic minorities Traditional marketing schemes are oriented on mass audiences. Despite the apparent shifts in movement to segment-specific advertising and then to integrated advertising, the prevalent view in the literature is that a significant proportion of advertising campaigns largely fail to connect fully with ethnic audiences (Dwek, 1997). The importance of studying the particular the particular culture, in which marketers are interested only gains value from awkward advertising offending ethnic minorities it is targeted on. Nwankwo and Lindridge (2005) describe a deliberate erasure of black faces from a version of Ford Motors advertisement. Knowledge of culture and its current trends is crucial for marketers, and yet at the same time is hard to get. One of the reasons is the lack of the literature on how exactly ethnic minorities perceive advertising. Many studies have addressed the important aspect of culture in relation to consumer behavior. However, little empirical evidence exists to show how differences in cultures affect consumer's brand image perception. (Lindridge and Hsieh, 2005). Among known studies are Belk and Pollay (1985) bringing light on how national and cultural variations may influence brand perception by consumers. Tse et al. (1989) continues this research, stating that the representation of the factor structure of brand image is mainly affected by the advertising message delivered and the meaning interpreted by consumers which have often been assumed to reflect variations among cultures. Nevertheless, researches on advertising perception by ethnic minorities lack the practical meaning on how exactly culture changes marketing message. Implications for marketers The most significant work in this field was made by Nwankwo and Lindridge (1998) emphasizing six main implication for marketers targeting ethnic minorities. (1) Ethnic stereotypes may present closer cultural images and symbols to ethnic minorities, but at the same time they may reinforce obvious cultural differences and racist views - that brings a company to a conclusion worse than undelivered marketing message. (2) Predictable message and presentation method may lead to advertisement looking condescending in the eyes of targeted ethnic groups. (3) Presentation of some ethnic groups in advertisements presents problems due to religious and cultural beliefs. (4) One of the main reasons why many organisations are not overly enthusiastic about ethnic marketing is the fear of unwittingly getting embroiled in a racial furor - with all the attendant bad publicity. (5) Ethnic celebrities may prove more effective than those from the mainstream culture in marketing communication directed at ethnic consumers. (6) In many minority cultures, marketers must win the support, respect and invitation of community leaders before they can open an effective line of communication with their members (Nwanko and Lindridge, 1998). Little can be added to these implications, except that a lack of research literature on ethnic minorities marketing makes it hard to understand how these difficulties may be avoided. Benefits for marketers Still, if correctly delivered marketing message promises greater benefits for the company than the one targeted for mass audience. Ethnic minorities may have a greater ability to send and receive messages through symbols and gestures, and more likely to define themselves in terms of ethnic identity than Whites. (Nwankwo and Lindridge, 1998) Customized cultural and ethnic appeals are gaining momentum with a number of firms providing consumer goods and services. The benefits are enhanced credibility of a firm and more positive brand attitude among ethnic minorities. Increased customer intimacy may turn into crucial increase of competitive advantage in niche or saturated markets, which is especially in the context of ethnical diversity increasing in the UK population. Conclusion The analysis of the relevant knowledge has highlighted the following gaps in the existing academic literature: 1) There is no distinct differentiation that religion and culture are different for south Asian consumers in the UK. It is only stated that there is a difference. 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