Abstract
Cultural practices and beliefs play a critical role in defining the purchasing pattern of customers within a given country. A product can only achieve success in a country if a consideration section of the locals consider it to be consistent with their cultural values and practices. In this paper, the aim of the researcher was to investigate the impact of culture on mobile phone purchasing pattern, comparing the Chinese and the British consumers. The researcher collected data from both primary and secondary sources. Primary data was analysed using mixed method (both qualitative and quantitative) research. Findings show that culture has a direct and significant impact on consumers’ buying behaviour. In the mobile phone industry, the behaviour of customers when they intend to purchase a product depends on cultural practices. In China, where collectivism is valued over individualism, consumers tend to take into consideration views and preferences of peers and other members of society before purchasing the item. They want a product that will help define them as successful in their community. On the other hand, British customers tend to value individualism over collectivism. When purchasing a mobile phone, they tend to prioritize personal preferences and satisfaction over what the society values. A mobile phone company operating in these two countries will need to understand these cultural differences to achieve success.
Introduction
Culture remains one of the most powerful factors that define the purchasing pattern of consumers. Cliquet and Baray (2020) explain that cultural practices and beliefs define what customers consider attractive and acceptable. It explains why specific products may be popular in one part of the world but not in another. Understanding cultural practices and beliefs of people in a certain part of the world enables a firm to define its products and marketing strategies (Wang 2020). Although some products such as mobile phones are popular all over the world, culture still defines how these products are purchased. This research aims to find out the how culture will impact the mobile phone purchasing in China and the United Kingdom using Hofstede’s cultural dimensions and Schwartz’s cultural value.
Research Problem
The mobile phone industry has achieved massive growth in the global market. According to Brown and Rocha (2020), China has emerged as the undisputed leader in the production of mobile phones. However, it is emerging that the buying behavior of consumers is directly linked to cultural practices. The challenge that arises is that sometimes a mobile phone produced in China fails to achieve success in the foreign market because the manufacturer failed to understand the culture of the targeted customers. The outcome is that a product is presented to the market without a proper understanding of consumers’ needs. Comparing the cultural practices of consumers in China and the United Kingdom makes it possible for a manufacturer to understand consumers’ needs both in the local and international market.
Justification for the Research
China is currently the leading producer and consumer of mobile phones. However, the European market remains one of the most attractive destinations for the manufacturers of these products. Cultural practices and beliefs in China that influence the purchasing pattern of customers is significantly different from that in Europe. As such, a Chinese firm that targets the European market has to understand these cultural practices and beliefs, and how they influence customers buying decisions. This paper is important because it will enable local firms in China to understand how to position their products in the European markets such as in the United Kingdom.
Research Questions
The following are the specific questions that the researcher seeks to respond to by collecting data from both primary and secondary sources:
- What is the impact of culture on mobile phone purchasing pattern?
- How can a firm in the mobile phone industry adapt to the local culture to promote sale of its products
- How can a company influence local culture to promote the purchase of their products in the mobile phone industry?
- What are the challenges associated with culture in the sale of mobile phones?
Literature Review
Culture has been defined in many ways; this author’s shorthand definition is: “Culture is the collective programming of the mind that distinguishes the members of one group or category of people from others”. It is always a collective phenomenon, but it can be connected to different collectives. Within each collective there is a variety of individuals. If characteristics of individuals are imagined as varying according to some bell curve; the variation between cultures is the shift of the bell curve when one moves from one society to the other. Hall (1976) stated that culture is not genetically inherited, and cannot exist on its own, but is always shared by members of a society and is identified as a societal level construct divided cultures according to their ways of communicating, into high-context (much of the information is implicit) and low-context cultures (nearly everything is explicit).
In practice this distinction overlaps largely with the traditional versus modern distinction. Various aspects of culture eventually cause members of different cultures to ‘see, interpret, and evaluate things differently, and consequently act upon them differently’ (Adler, 2003: 250). In consequence, culture-specific facets of communication can be argued to play a significant role in cross-cultural research.
Hofstede’s Cultural Dimensions (power distance, individualism & collectivism)
Table 1. Hofstede Cultural Dimensions
Power distance
Power distance is a gauge of interpersonal power or influence between a superior and a subordinate. It is defined as the degree to which the members of a group or society accept the fact “that power in institutions and organizations is distributed unequally” (Hofstede 1985:347). Individuals with higher levels of power distance are more apt to accept the inequality of power between superiors and subordinates, tend to follow formal codes of conduct, are reluctant to disagree with superiors, and believe that superiors are entitled to special privileges (Hofstede 1983). Accordingly, high power-distance belief cultures facilitate a norm that everyone should have a defined place within the social order. In contrast, the norm in low power-distance belief cultures is to maintain and respect the equality inherent in social interactions (Hofstede, 1984, 2001). Overall, this manifests as an acceptance of high (low) power disparity in high (low) power-distance belief cultures (Hofstede, 1984, 2001; Oyserman, 2006; Triandis, 1995).
Variations in power-distance beliefs have been documented across cultures, with some countries exhibiting high power-distance beliefs (e.g., Guatemala) and some countries exhibiting low power-distance beliefs (e.g., Austria). For those high in power-distance beliefs, inequality is viewed as a natural (and even desirable) aspect of the social order, even by those who are lower in power. Kirkman et al. (2009) argue that those with high-power-distance beliefs tend to follow authority figures (e.g., leaders of an organization) and believe that such entities are superior and elite, with the ability to make more reliable decisions (Javidan et al. 2006). Accordingly, the norm in high-power-distance cultures legitimizes differences in decision-making power between those in high positions of power and those in low positions of power. Conversely, the norms in low-power-distance cultures aim to reduce power differences among people in positions of decision-making authority. More broadly, we can conceptualize low power-distance beliefs as a preference for egalitarianism and high power-distance beliefs as a preference for hierarchy (and respect for authority), regardless of one’s own position in the hierarchy.
The acceptance of power disparity suggests that everyone has a rightful place in the social hierarchy; as such, consumers maintain an awareness of the disparity and act according to their place in the social hierarchy. For example, people in Japanese society need to constantly monitor their behaviour to ensure consistency with their place in the social hierarchy (Hofstede, 1984). Accordingly, this type of cultural practice of high power-distance belief constantly reminds cultural members about their social status, resulting in salience of the status concept and status difference (Triandis, 1995).
This sensitivity to the difference in social status tends to make most consumers realize their standing on the social status continuum. The resulting awareness makes consumers more likely to look for ways to improve their social status. For this status-seeking mind-set, status brands will appear much more attractive than standard brands, as these brands can help consumers enhance their social status. Accordingly, consumers with high power-distance belief will show a stronger preference for status brands than those with low power-distance belief. If this individual tendency holds, knowing that countries differ in power-distance belief (Hofstede, 1984, 2001; Oyserman, 2006), we should observe similar patterns at the country level. Countries with high power-distance belief should show a stronger preference for status brands (versus standard brands) than countries with low power-distance belief.
Individualism & collectivism
According to Hofstede (2001), “Individualism” refers to the society where the ties between individuals are very loose. In contrast, “collectivism” is defined as a society where individuals are integrated into strong and cohesive in-groups. In individualist cultures, people tend to be motivated by their own preferences, needs and rights in order to achieve their personal goals (Lee and Kacen, 2008). On the side of “collectivist culture”, societies have a significant attitude toward building long-term relationships and the role of trust. Members of societies are often motivated by duties and norms of societies (Usunier, 2000).Triandis (2004) also demonstrated that collectivist societies” are more concerned with ‘interpersonal relationship’ than an individualist culture.
With reference to Hofstede’s work (1980), the UK scored high in individualism which is relatively high compared to Chinese society. Thus, it can be implied that the UK societies can be defined as “Individualism”, whereas Chinese societies are considered as “Collectivism” ones. Hence, it is possible that customer social values and reference groups have a greater degree of influence in Chinese societies than the UK society when purchasing a mobile phone and this is a point that deserves further investigation.
Individualism/collectivism refers to the relationship between an individual and a group to which that person belongs. Individualists value personal independence and pleasure and individual expression and personal time, and they tend to believe that personal goals and interests are more important than group interests (Hofstede 1984; Schwartz 1992; Triandis 1995). Individualists also tend to have a high need for achievement and value individual rights with a minimum of interference (Peabody 1985). In contrast, collectivism denotes an emphasis on group welfare. A collectivist views the individual as part of a group and thus places group interests first. Collectivists do not consider themselves primarily as individuals but rather as members of an extended family or organization (Hofstede and Bond 1984). In regard to collectivists, Taiwanese use the word Jen to denote a man, “which includes the person himself plus his intimate societal and cultural environment which makes his existence meaningful” (Hofstede 1984:150). Collectivists value reciprocation of favours, a sense of belonging, and respect for tradition (Schwartz 1992).
Wood, Longenecker, Moore, and Carlos (1988) found that individualism/collectivism strongly influenced the moral reasoning of respondents. Indeed, Akaah (1990) found that workers in individualistic organizations were less ethical than their collectivist counterparts. Based on these findings, it is argued that individualists are more likely to perceive themselves as more important than other stakeholders, while collectivists are likely to be more sensitive to the interests of other stakeholder groups. Because the welfare and goals of the group are their primary concern, collectivists may be more likely to stick to organizational codes of ethics (which may include how one directly treats customers and indirectly treats competitors), even at the expense of personal interests. Individualists, on the other hand, are more likely to behave in a manner that fulfils their self-interests and hence may be less likely to comply with organizational rules and regulations when such compliance limits any personal gain (Triandis 1995)
Schwartz’s cultural value
Based on Schwartz, 1992, Schwartz, 1994a framework, human value systems can be divided into 10 value types: power, achievement, hedonism, stimulation, self-direction, universalism, benevolence, tradition, conformity, and security.
As can be seen in Figure. 1, the values circumflex is based on two broader value dimensions. The first involves the contrast between self-enhancement, which includes power and achievement values, and self-transcendence, which includes the values of universalism and benevolence. This contrast describes the tension between individuals’ emphasis on the pursuit of one’s own interests versus an emphasis on the welfare of others. The second contrast is between openness values, comprising the values of self-direction and stimulation, and conservation, comprising the values of security, tradition and conformity. Whereas openness values represent an emphasis on change, on the pursuit of new ideas, and on free and autonomous thinking, conservation values prescribe the status quo, the avoidance of threat and the abidance to rules and norms.
The functioning of social institutions apparently requires some degree of status differentiation (Parsons, 1951). A dominance/submission dimension emerges in most empirical analyses of interpersonal relations both within cultures (Lonner, 1980). To justify this fact of social life and to motivate group members to accept it, groups must treat power as a value. Power values may also be transformations of individual needs for dominance and control. Value analysts have mentioned power values as well (e.g., Allport, 1961). (Authority, wealth, social power) [Preserving my public image, social recognition].
Previous research has emphasized the importance of prestige and social status in luxury consumption (e.g. Kapferer & Bastien, 2009; Wiedmann et al., 2009). The need for self-enhancement can lead individuals to consume certain products based on a “status motive” (de Mooij, 2017). People focused on self-enhancement are highly oriented toward goals such as social power and prestige (Rice, 2006; Schwartz, 1994a), which suggests that such individuals are more motivated to purchase luxury products for their social value.
Achievement
Defining goal: personal success through demonstrating competence according to social standards. Competent performance that generates resources is necessary for individuals to survive and for groups and institutions to reach their objectives. As defined here, achievement values emphasize demonstrating competence in terms of prevailing cultural standards, thereby obtaining social approval. (Ambitious, successful, capable, influential) [Intelligent, self-respect, social recognition]. The achievement value involves an emphasis on “personal success through demonstrating competence according to social standards. [These values] emphasize demonstrating competence in terms of prevailing cultural standards, thereby obtaining social approval. This differs from [others’] definitions of achievement motivation to meet internal standards of excellence” (Schwartz, 1992, p. 8). We would therefore expect individuals who set a high priority to achievement values to use the open source context as an opportunity to gain social approval by establishing their reputation.
In regard to the value types of “Achievement” and “Power” (which are related to the “Self-Enhancement” dimension), we argue these values also are related to compulsive buying, especially in countries with rich economies, which offer numerous opportunities for individuals to raise their socio-economic status and to spend more money.
Achievement as a value stresses the importance of competition and its effect, (i.e., financial and/or nonfinancial rewards defined in terms of a desirable social position, and the acquisition of money and resources). “Achievement” is largely based on the personal beliefs of individuals who believe success and money is the only goal in life, which can be obtained through demonstrating a higher competence in comparison to others (Kajonius et al., 2015; Maio & Olson, 1995). As a consequence, the required competences for these individuals constantly raise demands for increased performance of professional and personal goals, which further leads to permanent stress, restlessness, and anxiety. In order to mitigate the negative affective states increased performance of professional and personal goals produce, more frequent buying occurs (Roberts & Pirog, 2004). Among young adults, the glorification of “Achievement” values is often associated with their material consumption and desires for possessions in order to project to others high status (Moon et al., 2015; Richins & Dawson, 1992).
According to Schwartz (2015), those who hold “Achievement” values can be perceived as too ambitious, always greedy of success, exceedingly avaricious, and vulnerable to the influence of others. Interestingly, these characteristics are closely related with “Power” values; those who strive for success tend to acquire greater power to manage or control societies. Thus, such individuals who hold “Power” values are often unable to control their own life, and are unable to face their personal problems (Sagiv, Sverdlik et al., 2011).
Both power and achievement values focus on social esteem. However, achievement values (e.g., ambitious) emphasize the active demonstration of successful performance in concrete interaction, whereas power values (e.g., authority, wealth) emphasize the attainment or preservation of a dominant position within the more general social system. Security: Defining goal: safety, harmony, and stability of society, of relationships, and of self. Security values derive from basic individual and group requirements (cf. Kluckhohn, 1951; Maslow, 1965). Some security values serve primarily individual interests (e.g., clean), others wider group interests (e.g., national security). Even the latter, however, express, to a significant degree, the goal of security for self or those with whom one identifies. (Social order, family security, national security, clean, reciprocation of favours) [Healthy, moderate, sense of belonging]
in contrast to values comprising the constructs of “Self-Enhancement” and “Openness to Change,” which accentuate one’s self focus in life, values related to “Conservation” (i.e., values of “Security”, “Tradition”, and “Conformity”) stress the importance of a social focus. “Conservation” conflicts with a personal focus that emphasizes one’s own independent thoughts and egoistic motives (Schwartz, 2015). Rather, “Conservation” is associated with submission, self-restriction, stability and the preservation of traditional practices. For instance, “Security” compounds social harmony (i.e., interpersonal relations), and social order. “Security” as Schwartz (2012) explained, is derived from individual and group requirements (see also Kluckhohn, 1951; Maslow, 1965; Zwetsloot et al., 2013), and consequently serves both the individual’s basic interests (e.g., order), and the wider group’s interests (e.g., national security). In a similar context, “Conformity” represents respect for social norms. Thus, those young adults who value “Conformity” will restrain from actions and impulses that harm others or violate social expectations or norms (Simpson & Willer, 2008). “Conformity” will be most important for those who show obedience to authority, self-discipline, and politeness (i.e., follow social norms of appropriate behaviour). Such individuals should be much more responsible than individuals who lack this value (Boer & Fischer, 2013).
Methodology
The previous chapter has provided a detailed review of the literature to help understand what other scholars have found out in this field of knowledge. In this chapter, the goal is to explain methods that were used to collect and process data. Alturki (2021) argues that when conducting research, the goal should always be to provide new insights into a given field of knowledge. Conducting a literature review makes it possible to understand what other scholars have found out and knowledge gaps that needs to be addressed. Collecting and analyzing primary data makes it possible to address the gaps or any conflict that exist in the current literature. This chapter explains the justification of the design strategy, data collection method, and analysis approach. Also explained are problems encountered when conducting the research and how they were managed, limitations in the study, and ethical considerations that had to be observed.
Explanation and Justification of the Design and Strategy
One of the factors that have to be defined in clear terms before starting the process of collecting primary data is the research design that will be used in the study. The choice of research design that has been made helps in determining the nature of data that will be collected from the field. When choosing research design, Atmowardoyo (2018) advises that one has to consider the aim of the study. The design should make it possible for the researcher to achieve the aim and objectives of the project. The chosen design should also make it possible for the researcher to answer a set of research questions.
Correlational research design was considered the most appropriate for this study. According to Bougie and Sekaran (2020), correlational research design focuses on investigating the relationship that exists between specific variables. It also demands that the researcher should not control or manipulate the variables in any way. When using this design, the role of the researcher is limited to that of data collection through observations or other means, data analysis, and interpretation (Ozgen 2019). Proponents of this design believe that when a researcher influences the variables, then it will not be easy to have an accurate prediction of the relationship between variables. Some of the variables may act unnaturally when influenced or manipulated, in which case, it becomes impossible to determine the relationship.
This research design was chosen because it makes it possible to achieve the aim of the study. The goal was to investigate the impact of culture on mobile phone purchasing in two different communities. There were variables whose relationship had to be established through data collection and analysis. On the one hand were the independent variables of cultural practices within a specific country. On the other hand was the dependent variable, consumers’ buying behavior in the mobile phone industry. The most effective design to establish such a relationship was correlational research design.
Defining research strategy is another important aspect that has to be defined before data is collected. The strategy involves determining how the desired data will be collected from the defined sources. In this study, a survey was considered the most appropriate research strategy. Busetto, Wick and Gumbinger (2020) explains that a survey makes it possible for a researcher to collect primary data meant to address the identified gaps in the study. The survey made it possible for the researcher to understand views of the sampled population regarding the impact of culture on mobile phone purchasing in the selected countries. A simple questionnaire was developed to facilitate the process of collecting data from the participants.
Data Collection
The researcher used both primary and secondary data sources in this study. Secondary data was obtained from peer-reviewed journals, books, and reliable online platforms. Specific databases such as Jstor, Emerald Journals, ProQuest, Business Source Complete, PsycINFO, Informit Business Collection, and Web of Science. These databases provided critical materials that focus on the issue under investigation. The researcher also relied on Google Scholar to obtained additional journal articles and books that focus on the topic under investigation. Information obtained from these secondary data sources formed the basis of the literature review that was conducted in chapter 2 above. Primary data was obtained from a small sample of participants.
Sampling
Mobile phone has become a basic need in many parts of the world because it facilitates communication among people. In China, almost every adult person has a mobile phone, as Dudovskiy (2016) observes. The same is the case with the United Kingdom and many other countries around the world. It meant that the researcher had to be specific in defining those who could take part in the study. Those who were included had to be people who could effectively explain the relationship between culture and purchasing pattern of customers when buying a mobile phone. The inclusion criteria required that the participant had to be marketing experts who understood the concept of culture and how it affects consumer behavior (Krittinee 2019). They also had to be consumers of the same product, to ensure that they can provide answers based on their personal experience. A sample of 20 participants was considered adequate for the study.
Questionnaire and Data Collection
After selecting the participants for the study, the next step was to collect data from the sampled individuals. A simple questionnaire was developed to facilitate the process of collecting data from the participants. The questionnaire was emailed to the individuals and they were informed to send it back within a week after responding to the questions. The questionnaire utilized both structured and unstructured questions.
Conceptual Framework
It was necessary to develop a conceptual framework, based on the literature review conducted, to help explain the relationship between the variables. Figure 3.1 below shows the conceptual framework. It shows the relationship between the independent variables and the dependent variable. The independent variables capable of influencing mobile phone purchasing pattern include basic values in a community, local needs and wants, preferences among the targeted customers, perception of the product in the society, and peer-pressure in relation to the product (Morhart, Wilcox and Czellar 2020). These cultural values differ from one community to another which means that mobile phone purchasing pattern of British customers is different from that of the Chinese.
Analysis of the Data
When data has been collected, the next step was to conduct analysis. Le and Schmid (2020) state that when conducting analysis, the focus should be on the aim and objectives of the study. The chosen method of analyzing data should effectively the research questions. Mixed method research was considered the most desirable approach of analyzing primary data. The method involves the use of both qualitative and quantitative methods. Quantitative method of research was considered necessary in this study because it made it possible to establish the relationship of the dependent and the independent variables. Using statistical tools, it was possible to determine if the selected cultural variables had any significant impact on the dependent variable. Thanem and Knights (2019) believe that quantitative research makes it possible to confirm or reject a claim through statistical analysis. It means that it would be possible to determine if culture has an impact on mobile phone purchasing.
On the other hand, qualitative methods made it possible to provide detailed explanations beyond statistical analysis (Matsumoto and Hwang 2019). It made it possible for the researcher to explain how the independent variables influences the independent variables. When using qualitative methods, a researcher is able to establish the relationship between specific variables and explain it in details (Saunders, Lewis and Thornhill 2011). In this case, this method made it possible to explain why culture influences the buying decisions of customers (Deplano and Tsagourias 2021). Understanding this relationship makes it easy to understand how the buying pattern of Chinese customers is different from that of the British in the mobile phone market.
Problems Encountered and How They Were Overcome
It is necessary to acknowledge the fact that when collecting data, the researcher encountered some challenges. One of the main problems encountered was that most of the participants identified for the study were not interested in a face-to-face interview. Some cited COVID-19 as their main concern while others noted that they had limited time. To address this problem, the researcher opted to conduct an online survey to collect the needed data. The study focused on comparing the cultural forces in China and the United Kingdom, and how it influences consumers of mobile phones. Reaching out to the British participants was another challenge. However, the researcher was able to rely on social media platforms to identify such individuals and reach out to them. They were informed about the goal of the study and what it intended to achieve.
Limitations in the Approach Taken
When an approach is taken to collect data, it is always advisable to identify possible limitations that could be encountered. As mentioned above, one of the limitations was defined by the geographic location of the researcher. The researcher was in China but it was necessary to collect data both in China and the United Kingdom. The approach taken was to use social media platforms to reach out to participants out of the country. The main limitation of this approach was that sometimes one can indicate that they are in one country while in reality, they are in another. It was possible that someone could indicate that they are in the targeted country while that was not true. According to Huang and Chen (2020), China has overtaken the European countries to become the leading exporter of manufactured products in the world. There is a constant suspicion among these western countries towards China as they view it as a rival in the global market. This approach taken meant that a researcher could not physically interact with these participants, explain the goal of the study, and address any suspicions that may exist (Eden and Nielsen 2020). The concern was that some of the British participants could develop suspicion towards the project and consider it a spy mission. Such participants may fail to respond to the research questions or deliberately provide misleading information. These were major concerns when collecting primary data from the participants.
Ethical Concerns
When conducting research, it is essential to take into consideration ethical concerns. Before engaging participants in a study, it is important to explain to them the goal of the study and reasons why they were selected to be part of it. Once the participants were identified, they were offered a detailed explanation of the goal of the study and the benefits that it would have to the current body of knowledge. Any issues and concerns they had were addressed before they took part in the study. The researcher informed them that their participation in this research was voluntary. It meant that they could withdraw from the study when they felt compelled to do so. Fellows (2021) emphasizes the need to protect the identity of participants as one of the main ethical considerations that a researcher has to observe. It is important to understand that different people will have different opinion on a given issue.
When the issue is emotive and divisive, chances are that one’s opinion may make them a target of criticism. It may also expose them to attacks from people who have contrary opinions (Huang and Chen 2020). It is also possible that one may lose their job or position within a firm if the top managers realize that they have a view that differs with company culture and principles. As such, participants’ identify must remain as anonymous as possible. It helps in ensuring that one cannot be subjected to criticism or attacks because of their views. Instead of using the actual names of the respondents, they were assigned pseudo names for the identification. It helped in ensuring that they could not be identified (Aityan, 2022). As an academic research, there are specific expectations that have to be met. One of them is to ensure that the study is free from any form of plagiarism. The researcher made sure that the report was written from scratch based on data collected from both primary and secondary sources.
Findings and Discussion
The impact of culture on consumer buying behavior is a topic that has attracted the attention of many scholars over the past several decades. It has emerged that cultural practices in a given country will influence a product that they will purchase, where they purchase it, the decision process before purchase, and after-purchase activities (Dawson 2020). In this chapter, the researcher starts by presenting the findings made from the analysis of primary data. The section is meant to address the gaps identified in the body of literature. The researcher then focuses on a detailed discussion of data from both primary and secondary sources. The approach makes it possible to arrive at a conclusion that is based on a comprehensive data.
Analysis
Once primary data is obtained from the participants, the next step is to conduct an analysis. The analysis should focus on addressing the aim and objectives of the research. It should directly respond to each of the questions that were presented in the study. In this project, the researcher chose to use both qualitative and quantitative methods of data analysis. It was considered as the most comprehensive way of achieving the goal and objectives of the study. The two methods of analyzing primary data are presented in the section below.
Qualitative Analysis of Data
Qualitative data analysis is one of the popular approaches of analyzing data when trying to establish the relationship between variables. Allen (2019) explains that this method makes it possible to explain a phenomenon, how and why it happened, and its impact. The researcher used it to explain how specific cultural variables in a country influences buyer behavior in the mobile phone industry. In this section, unstructured (open-ended) questions were used to facilitate the analysis. In the review of the literature, Hofstede Cultural Dimensions was used to assess how culture play a role in defining customer’s behavior in the market (Fill and Turnbull 2019). Using concepts of this model, the researcher analyzed the behavior of customers when purchasing mobile phones.
Collectivism/Individualism/Security (sense of belonging)
When asked how the concept of individualism versus collectivism define their purchasing pattern, the respondents gave different explanations. It is important to note that the answers below were provided by respondents in China.
- Respondent 1 said, “My peers and I tend to buy the same mobile brands. I tend to pay attention to what mobile brands my peers are buying.”
- Respondent 2 said, “When buying products, I generally purchase those brands that I think others will approve of.”
- Respondent 3 said, “I often identify with other people by purchasing the same products and brands they purchase.”
The response obtained from the three participants above clearly show that in China, people tend to consider views and perception of others when purchasing a product. There is an indication that the concept of collectivism outweighs individualism in this society. Although people want to purchase what meets their needs in a unique way, they still take into consideration the perception of others (Bjorklund 2020). These statements strongly indicate that culture plays a critical role in defining the purchasing pattern of consumers. When one plans to purchase a phone, one of the first consideration is what others will perceive of it. The sense of belonging means that the process of buying a product is not a decision that one makes independently. When the society considers a given brand of phone to be superior to the alternatives, then one would strive to purchase that product. It is possible for a person to sacrifice personal preferences to meet societal needs (Fisher, Stevenson and Burnell 2020). This cultural factor has to be taken into consideration by any firm that seeks to operate in the Chinese market. A product may offer superior value, but if the society’s perception towards it is poor, it may not achieve success in this market.
Power Distance
Power distance was identified as another important factor that defines consumer behaviour in the market. Different societies view power from different perspectives, as discussed in the literature review. To determine how Chinese view power distance, the researcher used the question below.
How comfortable are you with deferring to greater authority, hierarchical or social?
- Respondent 4 said, “People in higher positions should make most decisions without consulting people in lower positions.”
- Respondent 5 said, “People in higher positions should not ask the opinions of people in lower positions too frequently.”
- Respondent 6 said, “People in lower positions should not disagree with decisions by people in higher positions.”
- Respondent 7 said “People in higher positions should not delegate important tasks to people in lower positions.”
The response from all the four participants indicated that in this society, there is a general perception that those who are in power should have a near absolute authority, and that subordinates should not question their superiors. One of the respondents noted that leaders should have the capacity to make important decisions without having to consult subordinates. It means that they can only consult their subordinates when they feel it is necessary. Another respondent noted that those who are in higher ranks should not frequently consult their subordinates. Their position gives them the authority to make important decisions without the need to make consultations. The other respondent noted that those who are in lower positions should not disagree with decisions made by those who outrank them.
The last respondent stated that those in powerful positions should not delegate important tasks to their subordinates. These responses confirm that China is a society where people respect those who are in power. There is an absolute authority, and the decision that superiors make will be binding to everyone within an organization (Gawrysiak et al. 2020). The absolute power begins at the family unit, where the head is expected to make all important decisions. It means that when a child intended to have a phone, it is the responsibility of the parent to choose the one that they consider appropriate. It is possible that the parent may consult the child to determine their personal preferences, but the final decision has to be made by the parent, especially when there is a significant difference in the pricing of the two products.
Achievement/Power
There was a need to consider achievement as a factor that defines the purchasing pattern of consumers. Armstrong (2018) explains that in some societies, people tend to cherish and hold in high regard those who have accomplished financial success. However, in some societies such people are frowned upon and considered corrupt or less concerned about the plight of the poor (Giones et al. 2020). In those societies where the successful ones are cherished, there is always a tendency of people to purchase items that represent their class. When it comes to purchasing a mobile phone, they will opt for one that demonstrates their class. On the other hand, those from societies where the rich are forced to hide their success, there is a tendency for them to purchase products that do not reflect their class. The researcher was interested in knowing views of the participants about achievement and how the society views it.
- Participant 8 said, “My achievement is highly regarded by others.”
- Participant 9 said, “I want others to look up to me because of my accomplishments.”
- Participant 10 said, “Professional achievements are an obsession with me.”
- Participant 11 said, “Achieving greater success than my peer is important to me.”
- Participant 12 said, “I like to know what mobile brands make good impressions on others.”
The response above show that this society has no problem cherishing those who have achieved success. One participant directly confirmed that one’s success is highly regarded by others. It is a society where those who are successful are viewed as hard-working and creative individuals. The other respondent went ahead and explained that there is a need for others to look up to them based on their achievements. It shows that such individuals will prefer purchasing products that reaffirm their position in the society. If it is a mobile phone, they will go for the one that show their class (Hackley and Hackley 2021). One of them noted that they are obsessed with professional achievement, which is a further demonstration that this is a society that values success.
One participant noted that they are keen on achieving a greater level of success than peers in the society. This statement shows that in this society, there is a sense of competitiveness among peers. There is an effort by people to be seen as being more successful than others, and one of the ways of demonstrating the same is by the product that one uses (Hennink, Hutter and Bailey 2020). An individual would purchase an expensive phone just to demonstrate that they are a class ahead of the rest.
One participant directly explained that they prefer purchasing a brand of phone that gives them a good impression. They consider a mobile phone as one of the things that help in defining one’s social class in the society (Jobber and Ellis-Chadwick 2020). The results of these responses show that in China, there is a general admiration for people who have achieved success. This culture makes it necessary for people to try and achieve success in their economic activities. They also want to demonstrate their success in terms of what they use, including the mobile phones. For a mobile phone company, it is important to understand this cultural practice (Kautonen et al. 2020). It is a clear indication that customers will always consider purchasing the superior product because they want to show their class to their peers.
Quantitative Analysis of Data
It was also necessary to process the collected data quantitatively to understand the relationship that exists between culture and consumer behavior in the mobile phone industry. The review of the literature explained this relationship using a theoretical framework (Kazi and Mehta 2016). It was necessary to confirm the same by collecting and analyzing primary data. The analysis focused on addressing specific questions set in the study.
What is the impact of culture on mobile phone purchasing pattern?
The first questions focused directly on addressing the primary goal of the study, which was to determine the impact of culture on consumers purchasing behavior in the mobile phone industry. The respondents were asked to state whether they believe culture has an impact on consumer behavior when buying a mobile phone. The response obtained from the participants was coded and then processed using Microsoft Excel. The outcome of the analysis is presented in figure 4.1 below.
When the participants were asked if they believe culture has an impact on consumer behavior, an overwhelming majority (70%) noted that it strongly does. Another 15% also agreed with the statement. It means that 85% of the participants believe that there is a direct and significant relationship between culture and consumer behavior. 10% of those who took part in the study noted that they are not sure about the relationship, while the remaining 5% believe that there is no relationship. Based on the statistical findings made in the study, one can conclude that culture has a significant impact on consumer behavior when purchasing a mobile phone. Manufacturers of mobile phones should understand this unique relationship to ensure that they develop products that meet customers’ expectations in different markets around the world.
When conducting literature review, it emerged that consumer culture in China is significantly different from that in the United Kingdom. It was necessary to confirm this claim by collecting and processing data from primary sources. The participants were asked to state if they believe culture in the two countries is significantly different. As shown in figure 4.2 below, most of the respondents (80%) strongly believe that the culture in the two countries is different. Another 15% agreed with the statement that culture in the two countries is not the same. There was a participant who noted that they are not sure about the nature of this relationship. None of those who took part in the study had a contrary opinion about the nature of the relationship. The data reaffirms findings made in the literature review that the two countries have different cultural practices. It means that market forces that will influence customers in China is different from those in the United Kingdom. When a mobile phone company intends to operate in the two countries, it will need to take into consideration these differences.
A further analysis of cultural beliefs and practices in the two countries using Hofstede’s cultural dimension theory helped in understanding the difference. Using individualism versus collectivism as an aspect of cultural practices, the difference came out clearly. The participants were asked to state how they would classify the two countries on the two foundations. As shown in figure 4.3 below, the majority felt that the culture of collectivism is strong in China, while individualism is rare. On the other hand, individualism is highly common in the United Kingdom while collectivism is less popular. A firm that targets the Chinese market should understand that customers will be interested in views and perception of the society towards a product they have purchased. Customers in the United Kingdom will be interested in products that meet their expectations in the best way possible, irrespective of what others consider to be superior.
When analyzing consumer culture in China and the United Kingdom, it emerged that power distance was another major difference in the two societies. Participants were asked to state power distance in the two societies. As shown in figure 4.4 below, there is a high power distance in China. On the other hand, there is a low power distance in the United Kingdom. It means that in China, those who are in positions of power have a near-absolute power. They can make critical and impactful decisions without having to consult subordinates. The subordinates are expected to respect decisions of their superiors without question. In a family setting, a parent will have absolute power to define the mobile phone that a child will own if they are expected to pay the bill. On the other hand, the British culture is more liberal (Masterson, Phillips and Pickton, 2021). There is a need for those in power to consult their subordinates when making impactful decisions. Everyone’s opinion matters, which means that a parent will have to consult a child to know the kind of phone that they would desire.
How can a firm in the mobile phone industry adapt to the local culture to promote sale of its products?
Based on the findings made from the analysis of primary data, it emerged that for a firm to achieve success in a given market, it must understand the local culture. Understanding the local culture makes it possible for the firm to develop customer-centric products. The best way of adapting to the local culture is to start by conducting a regular market research (Maslow, 2019). A firm needs to regularly research the trends and practices that define decisions that customers make when purchasing a mobile phone. If the company is exploring a new market, it will be misleading to believe that practices in the home country will be the same as that of the new market. Regular research will help such a firm to understand what is unique in the new market (Carducci et al. 2020). It is also advisable for such a firm to hire locals who have a comprehensive understanding of the market. These host country nationals will guide the foreign firm on how to promote its products in in the market.
How can a company influence local culture to promote the purchase of their products in the mobile phone industry?
In some cases, it becomes necessary for a firm to influence local culture as a way of promoting sales. The need for a firm to influence the local culture may arise in cases where consumers’ buying decisions are influenced by popular culture (Boardman et al. 2019). Such customers will purchase products that they believe are admired by peers and members of the society. Leon (2020) advises that when the goal is to influence the local culture, a firm should start by understanding cultural values in that society. The goal is to ensure that such a firm avoids a strategy that is contrary to values and principles of the society. The second step is to focus on a specific cultural value in the society that can be associated with the product (Sethna and Blythe 2019). The firm will then anchor their promotional messages on that specific value. They can sway views of the audience towards the product based on the selected value. The strategy helps in introducing change, but in a systematic way that does not go against traditional values and norms of the targeted country.
What are the challenges associated with culture in the sale of mobile phones?
Culture directly influences the purchasing pattern of customers in the market. Dunn (2020) explains that sometimes culture may be a major challenge when it comes to selling a specific product in a given market. If consuming a product is considered to be against principles of the society, then chances are that it may not prosper in such a market. In mobile phone sector, culture can have a negative impact on sales (East et al. 2021). When the society considers it necessary to stay with one phone for long because of the need to be frugal, then sales will be slow. It will mean that one will be willing to stay with the gadget for unnecessarily long time, slowing the sales (Xu and Fan 2019). A culture that frowns upon extravagance may also affect sales of high-end mobile phones. Gbadamosi (2019) advises that a firm has to clearly define the market based on the price of the product. It should ensure that the local culture in the targeted market supports the purchase of such a product.
Discussion in Relation to the Literature
Data obtained from both primary and secondary sources were analyzed to help understand the impact of culture on mobile phone purchasing patterns. The researcher narrowed down the investigation to two countries, China and the United Kingdom. These two markets have a significantly different cultural values and practices that would make their citizens behave differently when purchasing their products (Chowdhury, 2020; Morvan and O’Connor 2019). By integrating data from the literature and analysis of primary data, it was possible to understand how these customers would behave when planning to purchase a mobile phone.
When conducting literature review, Hoftsede’s cultural dimensions theory emerged as a tool that can help in understanding the cultural differences in the two societies. Collectivism and individualism was one major differences found in the two countries. The Chinese tend to value collectivism as virtue in the society (Munoz et al 2020; Newbert, Tornikoski and Augugliaro 2020). It means that the decision that an individual makes has to take into consideration values and practices in the community. There is a constant need for one to belong and be accepted by peers and other members of the community (Naik 2021; Paul 2018). As such, when one is buying a product, they are likely to consult widely in an attempt to have something that many consider admirable. In the United Kingdom, individualism is valued more than collectivism (Nunan, Birks and Malhotra, 2020). It means that when one is planning to make a purchase, their primary goal would be to satisfy their needs regardless of the perception that other members of the society has.
In terms of power distance, there was another remarkable difference between the British and the Chinese. In China, there is a general belief in absolute power and control by those in authority (Chaffey and Ellis-Chadwick 2019). Leaders are revered and their decisions believed to be the best for everyone in the society. As such, it is less likely that someone will challenge or even question their power. They may consult their subordinates when making important decisions only if they feel it is necessary. On the other hand, the British believe that those who are in power hold their positions in trust (Cheshmehzangi 2021). They are trusted by the public to hold the positions, and as such, must be answerable to the people. They are expected to regularly consult and inform the masses when making decisions (Penmetsa et al. 2019). These decisions will also be scrutinized, and when necessary, challenged by the subordinates. In this country, there is a belief that anyone can ascend to power, especially when the current leaders are perceived as being incompetent or unnecessarily dictatorial (Pidduck et al. 2020). These major cultural differences in the two societies mean that consumer behavior is also different.
The cultural difference in these two countries strongly indicates that for a mobile phone company that is seeking to operate in the two countries, the strategy has to differ. The difference will start with the product that the company offers in the two markets. As Kotabe and Helsen (2020) suggest, successful firms have to offer customers products that uniquely meet their needs. In China, customers will be satisfied with products that their peers consider to be superior to others. On the other hand, British consumers are focused on purchasing products that meet their specific needs irrespective of the views of the society (Zhao and Geng 2021). The second issue that has to be addressed is the promotion of the products and brand in the targeted market. In China, a firm should make an effort to appeal to the society, taking into account popular cultural practices and beliefs. This is so because the process of making buying decisions tend to be based on popular culture in this country (Solomon et al. 2019). On the other hand, a mobile phone company in the United Kingdom should focus on individual customers. Of importance should be factors such as purchasing power of these customers and their personal interests (Santos and Davies 2020). A firm that succeeds in providing products that reflect cultural needs and expectations is likely to achieve success in this highly competitive mobile phone industry.
Conclusions
Culture has remained one of the strongest forces that define the behavioral pattern of consumers when purchasing a product. As shown in the literature review and analysis of primary data above, cultural values and practices define actions and perceptions of consumers. When a firm has comprehensively understood the culture of a given people in a society, it will be able to predict their behavior in the market. It will be possible to determine specific products that they will not purchase, products that they will consider to be of high value, and those that they may purchase as supplementary products. It explains why many large corporates are currently spending a significant portion of their earnings to investigate and understand cultural values and practices of people in different market.
Culture in China has been established to be significantly different from that in the United Kingdom. In China, the society values collectivism over individualism, as defined in Hoftsede’s cultural dimensions theory (Scott 2017). In this society, people believe that there is a need to consider views of others when purchasing a product. As such, it is likely that one will consult with friends and family before purchasing a product. It means that the product that they will purchase will reflect values and preferences of the society. Sometimes an individual may be forced to sacrifice personal preferences to go for a product that the society values (Shepherd 2019). On the other hand, the British value individualism over collectivism. An individual may not need to consult peers to purchase a product as long as they know what they want. They will ignore preferences of the masses and purchase a product that they consider meet their desires in the best way possible.
Implications of the Findings
Findings in this study show that there is a direct and significant impact of culture on consumer behavior in the mobile phone industry. Whenever a customer intends to purchase a mobile phone, societal factors and beliefs will influence their actions. In China, they will try and conform to communal beliefs and practices (Tan 2018). They are likely to consult widely. For a mobile phone company, this societal trend means that they have to appeal to the general society instead of individual customers (Wang 2019). They have to start by investigating the culture of the society and then develop specific products aligned with the cultural beliefs. On the other hand, the same mobile phone company will need to target individual customers in the United Kingdom. In this case, it will have to understand what individual customers’ value before developing a product for them (Mooij 2019). The implications of these findings is that a mobile phone company cannot use a strategy that has been successful in China when making an entry into the British market.
Discussion of Limitations
In chapter 3, the researcher explained the limitations that were felt could pose a challenge in data collection in this study. It was a challenge reaching out to British consumers and engaging them in the data collection process. However, the researcher was able to overcome this challenge. In the current global society, it is easy for one to communicate with another using modern technologies even if they are in different continents. The researcher was successful in collecting the needed data from the two countries. Time was also considered an issue as the project had to be completed within a specific period. The researcher was able to collect and process the needed data within the right time.
Recommendations
The mobile phone industry has become one of the largest sectors in the Chinese economy. The study shows that currently, China is the leading producer and exporter of mobile phones in the global market. It has surpassed the United States and European countries in this sector. As the local mobile phone players continue to enjoy the success, they need to take into consideration the following recommendations to ensure that their operations in the global market are sustainable:
- These firms should invest in research to understand different cultural beliefs and practices in different countries;
- It is necessary for mobile phone companies in China to develop products that target specific markets based on cultural values;
- These companies should investigate the impact of globalization on the changing tastes and preferences of consumers in different markets around the world.
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