Marc Termath
Marketing-relevant cultural impacts on the consumer behaviour within the
communication policy determined using the United Arab Emirates
ISBN: 978-3-8428-2135-4
Herstellung: Diplomica® Verlag GmbH, Hamburg, 2011
Zugl. Fachhochschule Gelsenkirchen, Gelsenkirchen, Deutschland, Bachelorarbeit, 2011
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Table of content
List of abbreviation ... III
Figures ... IV
1. Introduction ... 1
1.2 Target of investigation ... 1
1.3 Course of the work ... 2
2. Culture ... 3
2.1 Definition of culture ... 3
2.2 Cultural evaluation by Hall and Hall ... 4
2.3 Characteristics within the UAE ... 7
3. Consumer behaviour ... 9
3.1 Definition ... 9
3.2 Factors of impacts at the example of the SOR model ... 9
3.2.1 External factors ... 10
3.2.1.1 Marketing stimuli ... 10
3.2.1.2 Other stimuli ... 11
3.2.2 Intervening factors ... 11
3.2.2.1 Activating determinants ... 11
3.2.2.2 Cognitive determinants ... 16
3.2.2.3 Individual determinants ... 18
4. Communication policy ... 20
4.1 Definition ... 20
4.2 Classification in the marketing mix ... 21
4.3 Communication process ... 22
4.4 Sub-ranges of the communication policy ... 24
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5. Transfer of the investigation objects with the help of the FMCG ... 27
5.1 Definition of the FMCG ... 27
5.2 Degree of the cultural restraint within the FMCG ... 28
5.3 Adaptation of advertising contents ... 29
5.3.1 Non-verbal creation elements ... 29
5.3.2 Verbal creation elements ... 32
5.3.3 Psycho-cultural creation elements ... 33
5.4 Adaptations to the media behaviour in the UAE ... 40
5.4.1 Classical media ... 41
5.4.2 New media ... 43
5.4.3 Political-juridical boundary ... 45
5.5 Sales promotion ... 46
5.6 Sponsorship ... 47
5.7 Product placement ... 48
6. Transfer of the results ... 50
6.1 Global marketing versus local marketing ... 50
6.2 Perspective ... 52
Reference list... V
Internet sources ... X
Page | III
List of abbreviation
CPM
=
Cost per Mille
d.u.
=
date
unknown
fig.
=
figure
FMCG
=
Fast moving consumer goods
n.u.
=
name unknown
POS
=
Point of Sale
p.u.
=
page unknown
Page | IV
Figures
Figure 1
: "Onion model" by Hofstede ... 4
Figure 2
: SOR model ... 9
Figure 3
: Reversal model ... 14
Figure 4:
Connection of the value system and the consumer behaviour... 19
Figure 5
: Communication process ... 22
Figure 6
: Print ad by Vernel, UAE...30
Figure 7
: Print ad by Glad, UAE...30
Figure 8
: Print ad by Ariel, UAE ... 31
Figure 9
: Translation transfer from English to Arabian language ... 33
Figure 10
: Drakkar Noir: Advertisement in the UAE ... 34
Figure 11
: Drakkar Noir: Advertisement in Europe ... 35
Figure 12
: McDonalds print ad, UAE ... 36
Figure 13
: Reflected trade mark of Coca Cola ... 38
Figure 14
: AXE print ad ... 39
Figure 15
: Out of home media by Lipton... 42
Figure 16
: Value of the FMCG on Facebook ... 44
Figure 17
: AXE Social Competition on Facebook ... 45
Figure 18
: Sponsorship of an event of the AHK in Abu Dhabi ... 47
Figure 19
: Screenshot of the "Sex and the City 2" trailer ... 49
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1. Introduction
Followed in this chapter the basic information of the intention of this thesis will be
described.
1.1 Problem formulation
The development of the world more and more leads to a global village. Commodities,
which earlier were only accessible to the people in the immediate vicinity nowadays, are
sold on the whole globe. The increasing dynamism within the foreign trade is
perceptible, as every country including their companies is incumbent upon the same
problem. The home market is already sated by the products and there is no more growth
expected. The only way to handle this conflict is based on the "going international"
concept. The basis of the global trade was created by the changes in the international
politics and the creation of international economic areas (Weizsäcker 1999, pp.47).
Nevertheless, the acceptance that products and goods at foreign markets can be set
down in the way, as it has nationwide turned out already, is to be handled with care. By
tendency an increasing homogenization of the markets and even to the products is
registered. This enables the internationally operating companies to use scale effects as
well as synergistic effects by a centrally steered marketing. Nevertheless, the
assumption, that even the country specific consumption patterns will match piece by
piece, is not expected (Mennicken 2000, p.2). Differences in the cultural specification of
every individual export market and the connected consumer behaviour falsify this
assumption. The condition that "global player" have to face is "as much standardization
as possible, so much differentiation as necessary" (Ahlert 2009, p.14). Caused by the
international and intercultural marketing, mistakes can mainly be avoided in the creation
of the marketing measures.
1.2 Target of investigation
Currently no other region in the world can prove such an industry´s impetus like the
Arabian countries. The numerous raw material occurrences, which belong to the
demand-strongest commodities of the world, contribute their share to this unbelievable
development. The United Arab Emirates (UAE) are according to the OPEC (d.u.) in 7
th
place of the world's biggest oil and gas occurrences.
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However, the UAE already adjusts the future of their economy to alternative branches
of economic sectors. For the time after the oil, areas like tourism or research and
development of high technology are massively promoted by the government.
Additionally the high population growths, particularly influenced by an immigration
policy supporting the influx of foreign skilled workers, as well as one of the worldwide
highest per head income and a huge purchase power contributes to this facts. Therefore,
the market in the seven emirates is more lucratively than ever.
Foreign companies increasingly try to sell their products on the Arabian outlet market.
Motivated by the aim of profit maximization and by strong competition at the home
market, it is mandatory to open up new markets in foreign countries. However, the
engagement of the foreign trade with the UAE is afflicted by a huge number of
differences and requires a high intercultural competence in the today's global world. The
biggest factor, affecting the foreign trade and the interaction with the inhabitants of the
UAE, is the influence of the Arabian culture. Creation and function of business
activities, notably in the field of marketing, regarding communication, language and
behaviour of consumers therefore must be adapted (Backhaus and Voeth 2010, p.13).
The elaboration of the marketing-relevant cultural-conditioned influences will be
subject of this worksheet. Companies who separate from their proven marketing recipes
in the domestic market and perceive an export market as an independent unit can be
successful, abiding to the motto by de Mooij (2010, p.11) that "needs may be universal,
but attitudes, motivations, and expressions of needs vary." The analysis will also
elucidate at what extent the prevalent cultural contrasts will take effect on the
advertising and the related consumer behaviour in the UAE. As the culture, life-style
and community differs markedly compared to western countries, it is expected to point
out numerous culture specific adaptations as one result of this work. These adaptions
will be summarized and can be used as a compendium to streamline local marketing
strategies in the view of risks and chances.
1.3 Course of the work
In chapter two to four the theoretical foundations are described, being relevant for the
understanding of the complexity of this subject. First we will define the term of cultural
concept to clarify, how a culture can be identified and be arranged. The thesis primarily
focuses on the United Arab Emirates in term of "cultural dimensions" that will be
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worked out from the publications of Hall and afterwards will be projected in detail on
the UAE. It will be examined at what extent culture affects consumer behaviour.
Influences and decisive factors will be identified and highlighted. This will be
elaborated by means of the Stimulus-Organism-Response model (SOR model). Being
able to refer to a benchmark in the main part of the work, a detailed discussion on
communication policy and its associated sub-ranges will be initiated. The fourth chapter
will contain the basis of the present work and will be used in the main part as a support
and back up of the investigation. Based on these facts the information extracted from
the last chapters, will be bundled and used for the processing of the problem
formulation. The practice part will contain an analysis of the acquired knowledge and is
reinforced by appropriate practise examples of the consumer goods industry, more
exactly the fast moving consumer goods (FMCG). Besides, the effect, on the cultural-
influenced consumption patterns, regarding the communication policy will continuously
be received. Finally the results are summarized within the sixth chapter and the
preceding context will be bundled to be used as a business compendium. A perspective
towards future behaviour patterns is given in the end of this work as well.
2. Culture
Main focus of this work is laid on the country specific cultural influences on marketing.
This chapter will illustrate the definition of culture and defines specific characteristics
by means of cultural dimensions.
2.1 Definition of culture
Culture in general is an extensive concept which already has been defined by a plurality
of scientists, philosophers and psychologists in the past. However, all these paraphrases
showed such a strong discrepancy to each other that till today no uniform and
satisfactory definition has been found. To illustrate this kind of problem, to define
culture, the following quotation by Ajiferuke and Boddewyn (1970, p.154) is consulted:
,,Culture is one of those terms that defy a single all-purpose definition and there are
almost as many meanings of 'culture' as people using the term".
This quotation describes in the shortest form the problems, which walk along with the
attempt to define this multi-layered as well as many-faceted concept. According to
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Dorfner (2009, p.6) it is impossible to point out only one single definition, which would
be universally applicable. In his opinion it is imperative to pull up the closest
appropriate definition in view of his personal investigation objects. According to this
thesis, the present worksheet is based on the definition of Hofstede. Hofstede
interpreted the definition of culture with the help of a so-called "onion model" (de
Mooij 2010, p.53). The different layers are containing the influence-taking areas i.e.
symbols, heroes, rituals, values and in the end, how all these will be shown and
expressed. As these factors also will be of great importance within the upcoming
analysis of the SOR model, this seems to be the best choice.
Figure 1: "Onion model" by Hofstede (de Mooij 2010, p.53)
2.2 Cultural evaluation by Hall and Hall
Cultural approaches should give an insight, how different cultures can be compared, on
basis of measured values or trends. This is imperative in case of "misunderstandings" in
thinking and action between two cultures and to avoid any intercultural divergences
(Fischer and Furrer-Küttel 2011, p.u.). Without these systems, to understand and
classify different cultures and the involvement of central marketing decisions,
standardized products are ranged under the "not-invented here syndrome" (de Mooij
2010, p.67).
Values
Rituals
Heroes
Symbols
Expression
Page | 5
The cultural estimates by Hall and Hall are chosen for quite certain reasons. In contrast
to Trompenaars and Hofstede, who also made a major contribution to the cultural
analysis, the evaluation by Hall (1984, p.19) is focussing explicitly on the
communication in different cultures, more exactly he defined the culture as "a system of
communication", which has a "radical and lasting influence on human behaviour".
To show the influences, Hall sets his argumentation with four following divisions:
x Culture and time
x Culture and space
x Culture and context
x Speed of information
It is to be anticipated that the results of Hall not mutually exclude themselves, but rather
are compatible with each other (Schmid and Kutschker 2008, p.709).
Within the subdivision of culture and time, Hall deals with the question how people
perceive and estimate the feeling of time. According to Dorfner (2009, p.14) "the
contact with the time has fundamental importance to communication systems.
According to Hall it is so informative, that in contrast to the spoken word it can hardly
be manipulated and every culture has its own individual time language". His appraisal
of the time perception is divided into monochrome and polychrome. Within the
monochrome perception it is described that people regulate activities one after the other
as well as dates and schedules are placed with major value of the observance of these
liabilities. A first-in first-out sequence is unconditionally welcome (Pepels 2005, p.112).
Societies with monochrome perception distinguish themselves mainly about the
specification of their work and are mainly oriented on brief relations. This kind of time
perception can be located in western cultures like Germany and the USA (Hall and Hall
1990, pp.13). In contrast, polychrome people are able to deal with several things at the
same time. The consciousness for the value of a liability is rather less respected what
consequently characterizes these people by the fact that they judge delays as usual. In
social regard, these people are identified as family and socially orientated. This result
supports the wish for long-term relations. This setting applies in full correspondence
with the culture of the United Arab Emirates (Lindner 2004, pp.49; Dorfner 2009,
pp.13; Bloetzer et al. d.u, p.u.)
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In the other division of Hall he describes that the feeling of a person within a space
structure is characterised as an intimate, public, social and personal communication
distance. The perception of space can be described in which measurable zone different
people can surround themselves with other human beings. This space feeling not only
applies within a specific location but also includes body contact and the sensuous
feeling. Besides, every society has an individual distance (Lindner 2004, p.52). This
four named distances are scaled from near to far and are described as followed. The
smallest radius that is accepted in between two people can be defined as the intimate
distance. This distance can only be disrespected by the narrowest relatives and friends.
The personal distance, is defined as the space that should be respected by all unknown
human beings surrounding him. The social zone is particularly not applicable for people
who are close to the person. It is defined just like the personal distance. The last and
also roomiest distance is the public distance. In this distance the interactions with an
opponent are characterised as impersonal and anonymous (Bloetzer et al. d.u., p.u.;
Cuber 2008, pp.36; Hall 1976, pp.131).
Probably the most important knowledge within the investigations of Hall becomes clear
by taking a look at how much value and attention is placed to the context within the
communication. Here the context not only describes the verbal statements but also the
body language and the intonation (Lindner 2004, p.51). Hall divides the cultures in
"low-context" and a "high context" communication. A "low-context" culture is defined
by the fact that it mainly expresses itself within the verbal language, the so called
explicit communication. It is characterised as direct and unmistakably formulated (de
Mooij 2010, p.71). This kind of communication is placing less emphasis towards
interpersonal relations, which also entails, that people in a "low-context" culture are less
afflicted to the premise to carry out a separation from "in-" and "out groups" (Müller
and Gelbrich 2004, p.82). These groups are understood as integrated into the personal
respect circle and the approved affiliation into the occupational field. By contrast, in a
"high context" culture, a lot of emphasis is placed on information which on the one hand
can be read colloquially "between the lines" and on the other hand is provided by the
non-verbal signals (n.u. [a] d.u., p.u.; Blom and Meier 2002, p.64). According to this
fact it becomes obvious why this kind of context is a mystery for people of different
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cultures. Consequently these non-verbal signals are only understood by those people
who are associated to comparable "in groups" (de Mooij 2010, p.71).
Hall´s perceptions of the speed of information are those of his recent research from
1990. It describes the time in which different cultures can encode and decode
information. However no clear assessment of a culture is given but only a tendency of
the preferences for fast or slower communication processing. This becomes evident, e.g.
with headings of articles in newspapers or advertisements. A fast decoding process is
obvious in short and concise headlines. On the other hand, headlines in specific
literature are provided with long headings (Schmid and Kutschker 2008, p.714). This
speed of information is not exclusively supported on the perception of text information
but also on interpersonal relations. Cultures with a high speed of information are
regarded as superficial, as they accept acquaintances very fast but without a deeper
affection. According to this fact people within cultures with a low speed of information
are rather ready to enter a deeper relation, but need a lot more time to get to know the
opponent in a better way (Hall and Hall 1990, pp.5).
2.3 Characteristics within the UAE
In the literature the UAE are equated with many other Arabian countries. Nevertheless,
this suggests the impression of homogeneity within the "Arabian world". However, this
is only appropriate in a very low degree, as Becker (2011, p.42) pointed out. For this
reason this work will focus on literature and professional articles whose explicitly
object of knowledge are the UAE. To underline the far-reaching divergence to other
societies, the four dimensions by Hall are characterised on the UAE.
Between the cultures of the UAE and the western oriented countries undoubtedly a
gigantic gap is visible. Most notably this is valid towards the sense of time. The UAE
are characterised as a distinctive polychrome time division. In contrast to the German
phrase "time is money", in the UAE the following phrase "God created the time, he
didn´t say anything about hurrying" is present. This phrase particularly bears the
sensitivity of the people in the UAE. Meetings are shifted or cancelled just the way they
need to. In case of an affair with a closely connected person, the preference is
unambiguously this one, because the Arabs operate and assess respect-oriented. The
polychrome approach also means that the Arabs do a lot of stuff at the same
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time. Effectiveness of course will therefore decrease. For example, it is normal that
telephone calls will be held while having a business meeting. The reason why
negotiations are continued is that the signal of the business partners, to have sufficient
time, is necessary. As mentioned above, it is needed to build up a deeper personal bond
(Schlesinger and Scheuring 2008, p.146).
According to the space structure of the Arabian population another essential difference
is obvious. In the UAE it is a desire to be physically close. In contrast to more reserved
cultures the construction of a personal connection is in foregrounded and less the
fulfilment of an assignment (Lindner 2004, pp.52-53; DGVU d.u., p.6). A protruding
example of this closeness becomes obvious with the help of a well-known behaviour
within the UAE. It is absolutely usual that two men move on the streets holding each
other's hands. Nevertheless, this is not according to their sexual orientation, but it only
proves the strong friendship between them. The compulsive intention of foreign
business partners to keep the distance is condemned as a rejecting kind and is regarded
as impolite. This was also confirmed by Ms. Abu-Samra Rothe, Director of the Abu
Dhabi Office of the AHK on 5/5/2011.
Also the intensive meaning of the context within the communication in the UAE proves
in what extent this culture diverges from others. Undoubtedly the UAE belongs to the
high context cultures. Within the interpersonal communication in the UAE it is also
very important to "save one´s face", which causes a high value of the implied message.
Based on these occurrences, discussions are broken down in fragments, waiting for a
response after each part, to interpret the opponent's behaviour. The following
subliminal response helps the associated to give a critique or a negative attitude, without
losing his face (Usunier and Walliser 1993, p.65; Schlesinger and Scheuring 2008,
p.147).
The speed of perception of information can rather be equated with the trend of slow
decoding. This is explained by the interaction of the dimensions time and speed of
information. Furthermore it elaborated that the construction of close relations with other
people has a high value. Therefore, it takes a lot of time that an Arabian habitant
completely opens and entrusts to an opponent (Schmid and Kutschker 2008, p. 714).
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3. Consumer behaviour
Within this chapter all elements regarding the consumer behaviour are described to be
prepared for the practical part of this work.
3.1 Definition
"Consumer behaviour can be defined as the study of processes involved when people
select, purchase, use, or dispose products, services, ideas, or experiences to satisfy needs
and desires" (de Mooij 2010, p.93). The focus is here laid not on the actual consumption
of the product, which normally can be associated with a closer look at the word
"consume" but it should identify and implement targeted consumer potentials. Some
time ago, these observations were still rather associated with the concept of buyer
behaviour. However, it was discovered that not only the purchase of a product or service
may explain the behaviour of the person, but that this purchase is incorporated in a
process, which includes a variety of influences. (Solomon et al. 2001, p.22) That
consumer behaviour is also exposed to continuous fluctuations is a result of the constant
change of the environment of each consumer (Pepels 2005, p.31). Hereafter the
preference is on the influences on the individual cause this will be of great importance
for the further course of this work.
3.2 Factors of impacts at the example of the SOR model
Figure 2: SOR model (Kotler et al. 2007, p.277)
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The behaviour of a consumer will be explained by the help of the so-called
SOR-model, whereas SOR means Stimulus-Organism-Reaction. A stimulus can be
defined as a product characteristic, a packaging or another advertising action, so that the
reaction shows the consequence, in most instances the purchase. In this case only
observable dimensions are described, so the core concept is as followed: If a certain
stimulus (S) hits an organism, a certain response (R) is expected. The attempt to analyse
the enlargement by adding psychological processes to the organism (O) is called the
neobehaviouristic model (Bruhn 2007, pp.45). In the organism, which is also called
"Black Box", activating and cognitive processes take place. Starting point of the
analysis of the consumer behaviour will be the external behaviour complemented with
the intervening variables (Balderjahn and Scholderer 2007, p.6). To understand the
organism as much as possible and to gain alternatives the analysis of the determinants
of purchasing behaviour is fundamental. In the SOR model, therefore psychological
processes within an individual take up a prominent role (Meffert 2008, p.102). It may
already be anticipated that there is certainly a huge number of explanation models to
analyse the consumer behaviour, however, the SOR model is preferentially used in the
majority of literature. One more reason using this model for this work is the extensive
discussion with the intervening influence, which is mainly based on basis of cultural
and social circumstances.
3.2.1 External factors
Within the external factors all kinds of stimuli are described that have important
influences on the consumer behaviour.
3.2.1.1 Marketing stimuli
The central question in understanding the consumer behaviour is how consumers react
to different marketing measures (Kotler et al. 2007, p.309). In the area of the stimuli all
four P's are of great importance, as they have an unfiltered effect on the intervening
behavioural structures of the buyer. As the initiation of these marketing measures is
mostly uuencoded, they are also called observable stimuli (Foscht and Swoboda 2011,
p.29). In the later course of this work it becomes obvious, that the communication
policy is equipped with the highest potential to influence the opinion and the behaviour
of a consumer in favour of a company.