The project is based on ''Eden project'' where void land was used for developing two biomes for present plants brought from different places and environment.
- Explain the difference in consumer behavior of Chinese and British people by considering Hofstede’s model of cultural dimensions.
- Describe the changes, in the context of marketing mix, that management of Eden Project should consider so they can provide better customer service to Chinese people.
Customer services plays significant role in the hospitality and tourism industry. The main aim of Eden project is to make connection between Chinese and British consumers (Mazanec and et.al., 2015). It is undergone from another transformation, its main focus areas are continuous development, maintenance of culture and organizational structures. Present study will discuss Hofstede’s model of cultural dimensions. Furthermore, it will explain difference between consumer behavior of Chinse and British. In addition, study will evaluate marketing mix for Eden project in order to adjust local culture in China for enhancing service encounters.
A. Hofstede’s model of culture
Consumers are the key players of business unit, it is very important for the organization that to understand behavior of consumers and accordingly deal with them. It can be defined as common attitude, ideas of consumers towards any products and services. There are various elements that influence behavior of the clients (Beugelsdijk, Kostova and Roth, 2017). These are such as psychologic, economy, social interaction of individuals. Firm is required to understand their needs and accordingly has to provide the goods and services so that their basic needs can be accomplished and they can become positive towards the brand.
Hofstede cultural dimension theory is the framework that helps in making effective communication with cross cultural people. It h s been given by Geert Hofstede. This model explains how values and beliefs of individual affect their cultural aspects (Baptista and Oliveira, 2015). Cultural difference is the major barrier in communication between two different group members. This model describes six dimensions of culture that can help in building effective communication and coordination between Chinese and UK people (Fang and et.al., 2016).
- Power distance
- Individualism vs Collectivism
- Masculinity vs Femininity
- Uncertainty avoidance index
- Pragmatic vs Normative
- Indulgence versus Restraint
Power distance index is the first dimension of this model, It explain the degree of inequality that is present in the different people. If the person has high power then society accept these people. Hierarchical distribution of power makes them able to understand their position in the society. Low PDI means power is widely dispersed and society members do not accept the people in the society those who have less power (Ngai, Tao and Moon, 2015). This increases inequality in the society. Whereas the people those who has high power they easily get accepted by the others in the society. Britain is the developed country where people have high power whereas Chinese people do not easily corporate with others. In such condition organization treat British people well as compare to Chinese clients (Fang and et.al., 2016).
Individualism vs Collectivism (IDV) means if people are living in group or collectively then society accept these people easily. Whereas if the person belongs from low IDV or live individuals then people do not accept these people easily (Liobikienė, Mandravickaitė. and Bernatonienė, 2016). It has been identified that Chinese people have low IDV scores. Whereas UK people has high IDV score. Thus, company gives high value to UK people and give them more time so that they feel satisfied and be associated with the organization for longer duration. Low IDV people works for rewards, thy believe in maintaining harmony with group members and they gives more values to mora aspects.
Masculinity vs Femininity (MAS) is another dimension of Hofstede’s model of culture. It explains distribution of roles between female and men. In the masculine society men always get more power than women (Fang and et.al., 2016). Men always behave strong and overlap the rights of female. On other hand feminine societies are there where great deal of overlap between male and female is exist. The gap between values of men and women is largest in China. It is the country where mem always play the strong role and female has to agree with their decisions. It has been identified that China is the place where MAS score is very high (Fang and et.al., 2016). Thus, if the company plans to open a new branch in China then they have to follow traditional aspects of society. But Britain is the country where both male and female have equal rights and both have rights to show their interest. If the company open branch here then they have to create workplace environment in such manner so that needs of male and female can be accomplished equally (Tran, 2016). They can not overlap the needs of female. Thus, cultural difference in China and UK create difficulty for the Eden project that to develop communication between both these people.
Uncertainty avoidance index (UAI) is another dimension of this cultural model. It explains the ability of individual to cope with anxiety. If the society has high score for uncertainty avoidance then their life become predictive and controllable as possible. If they find that they are unbale to control over their life then they try to stop it. On other hand people those who live in low UAI scorings they feel more relaxed and open (Shoham, 2015). They enjoy each moment and their life is simple. When Eden project has to deal with Chinese people then it might be possible that people always demand for safest way of working. In such condition project sponsors can motivate them to become more open. UK scores the lowest with eight. High UAI means danger of failure influence their behavior. These people are expressive and they show their anger and emotions wherever it is needed. Chinese audience come under the high UAI score. On other hand UK people come under low UAI. They are open ended and they have less sense of urgency (Fang and et.al., 2016).
Pragmatic vs Normative (PRA) is another dimension of this model. It explains the degree to which people explain inexplicable. Indulgence vs restraint (IVR) is sixth dimension. If people are belonging to high IVR group that means they have free gratification of people and emotions. These people enjoy their life (Kim and et.al., 2017). But low IVR score is another cultural aspect where people pay more attention on suppressing gratification. They have to behave as per the strict norms and regulation of society. Chinese people are more traditional and they come under low IVR.
Difference between UK and China
Power distance is linked with brands and innovation. British people like to buy such products which has strong brand image and are different from others. Their consumer behavior is far differed from the Chinese people (COUNTRY COMPARISON, 2018). Because Chinese people give more emphases on the traditional things. They have pre-determined mind set, if they are satisfied with particular products of the company then they frequently buy it, they will not test other products. This is the major difference between UK and China consumer behavior. People of UK are modern thus, they know importance of brand image. They always prefer to buy high class products from the company which has strong brand reputation in the market. They never buy local products but Chinese people like to buy such things which is related with their traditional aspects. Furthermore, individualism vs collectivism is linked with persuasion vs trust. Chinese consumers like to buy products to whom they have trust. But UK consumers decision can be influenced if new product is satisfactory. British people like to try new products but consumer behavior is much more linked with the trust of the society members on particular products (Mazanec and et.al., 2015).
Uncertainty avoidance is linked with risk towards purchase. Most of the people like to cross examine the products and after that they use it, they analysis the risk involved in the new products then they make their mind to buy it. Chinese people measure risk in new items, if they find that it is risky products then they do not buy it but UK people like to take risk. They always try such innovative products so that they can get new experience (Beugelsdijk, Kostova and Roth, 2017).
From the above graphical presentation, it can be interpreted that masculinity in both China and UK is equal. China is the country where power distance score is 80 whereas PDI score in United Kingdom is only 35. This shows that all consumers treat each other equally. These people give high power to the equal distribution and social power of each individual is equal in British consumers. Furthermore, individualism in China is 20 but in Britain it is 89. That reflects that UK consumers give high value to their time and they emphasis on freedom (Baptista and Oliveira, 2015). They enjoy challenges and respect each other’s. But Chinese people have low IDV score that means these people work for intrinsic rewards only. 80 Chinese are in the high ranking of PDI. They believe that inequalities in the society is acceptable. As 20 Chinese have score 20 that means they have highly collectively culture. They make decision as per the group decision. These people are poor committed towards the organization and they do not contribute well in achieving goal of the company. Masculinity score is 66 in China and UK. They provide more services to the consumers. 20 China has low score on Uncertainty Avoidance. These people adhere to laws and follow regulations strictly (Ngai, Tao and Moon, 2015). Chinese people are adaptable and they can get adjusted in new environment easily. But British people do not get adjusted so easily. Long term orientation is the link with the aspects of how people deal with challenges. 87 Chinese score shows that it has pragmatic culture. These people highly believe in truth.
B. Marketing mix for Eden project to adjust to local culture in China
Marketing mix is the elements which helps in making the project successful. It has four major elements: product, price, promotion and place. All these components impact on overall success of business unit. Company is required to market its products as per the needs of consumers of particular country. If it is unable to meet with their expectation then it may create difficulty for the firm and it may get failed to sustain in the market for longer duration (Liobikienė, Mandravickaitė. and Bernatonienė, 2016). It has been identified that Chinese consumers are much more traditional and they always prefer to buy such products on which they have trust. If new product is coming in the market then they do not trust on it easily.
It is essential for the Eden project that to develops its brand image in the Chinese market so that it can gain attention of mass people. Chinese consumers like to use traditional products. Company has to develop its traditional image in the mind of consumers (Fang and et.al., 2016). These people give attention to the equality thus, it is essential to empower users and make them able to take their own decision. It has to provide variety of goods and services for all type of consumers. By this way high power and low power both and consumers will take in the products and they will experience its services. This will help the Eden project in get adjusted in the local culture in China in order to enhance service encounters (Tran, 2016). Pricing strategy is the major factor which influence behavior of consumers to great extent. It is essential for the firm that to make correct decision regarding pricing of products. If it gets failed to set prices in accurate manner then it may impact on the overall success of the firm and Eden project may get failed to enter into Chinese culture easily. Eden project should adopt price skimming strategy. As decision of individuals get influenced by group of people. Thus, if it offers products at lower prices then it will enhance interest of mass audience in the China and these people will influence decision of other consumers as well. In such condition maximum people will take interest in the Eden project and they will give positive response towards it. Place is another important aspect of marketing mix. As the main agenda of Eden project is to enhance service encounters in China. For that entity is required to make correct placing decision (COUNTRY COMPARISON, 2018). Chinese people use advance technologies frequently. They get information regarding any new firm or products through internet or its website. This helps them in making their mind whether to buy its products or not. If Eden project take care of this element and take support of advance technologies so that it can communicate necessary information to the people easily. This will help the project in meeting with its objective and completing the project in effective manner (Liobikienė, Mandravickaitė. and Bernatonienė, 2016).
Promotion is considered as one of the most important aspect of marketing mix. Promotional strategy of the firm impact on the consumer behavior to great extent. If promotional strategy of the project is able to influence the mind of consumer then it may support Eden project in gaining success and it may helps in making people positive towards the brand. Eden project has to take support of social media marketing or promotional techniques (Ngai, Tao and Moon, 2015). This will help in changing mind of consumers significantly. There are many people those who use social networking sites frequently. If Eden project promotes its project on the social networking sites effectively then it will be beneficial for the firm to change perception of people and making them positive towards the brand. They will take more interest in its products thus; Eden project will be able to adjust to local culture of China easily.
Furthermore, there are other components of marketing mix such as physical evidence, people and process. All these elements help the firm in market its products and enhancing awareness of consumers about the firm (Mazanec and et.al., 2015). Physical evidences are related with the service scape and features of service delivery. If Eden project become able to deliver high quality services to consumers on time then it will definitely will be able to attract more people and gaining their confidence. By this it will be able to coordinate well with Chinese people which will support the Eden project in retaining the consumers in the firm for longer duration. Process is linked with technology. Chinese people use advance technologies, If Eden project take support of advance technologies then it will be able to make its process smooth. This will be beneficial for the firm because it will help in changing perception of Chinese consumers and establishing its brand in the China easily. By this way number of consumers will be increased and it will be able to accomplish its objective smoothly. People are the most important part of the company (Shoham, 2015). If employees do not perform their duties well and if they do not deal with consumers well then it may create complication for the business unit. Because by this way existing consumers will become negative and they will give negative reviews to others as well. In such condition overall success of the Eden project may get affected negatively.
EPRG framework is the international management orientation. It is essential that staff members carry out operations in four ways. Ethnocentric is the first way, in this staff members believe that home country is superior. When employees have to work in the new country then they find similarities in their own country (Kim and et.al., 2017). They think that overseas branches are less important than their head office. They do not conduct research about new market, consumer requirements thus, people do not deal with other market consumers well. Polycentric is another way of conducting operations in other country. Managers and employee see each new country as unique. Staff members have to change their working patterns in order to perform well in the new location so that they can satisfy consumers and can gain their attention. Regio centric way is another framework, this explains that each country has its unique culture, political condition and economic conditions. But still there are some common things in some nations. Thus, people of Eden project are required to conduct operations as per the reginal identity of the China, this will help them in attracting more people and changing their behavior as well. Geocentric is another way in this framework. In this company believes that each country has potential and has efficiency where new firm can get developed easily (Shoham, 2015). It works as think global and act local. Staff members have to identify similarities and difference in home and new country. According to these features they have develop their global strategy. This can help the company to gain success in the new market. Staff members of Eden project has to adopt geocentric orientation. They have to understand necessity of the consumers and accordingly they have to work in the China. This will help the Eden project to adjust local culture in China and successfully establish its business in the new market (Fang and et.al., 2016).
From the above report it can be concluded that each country has its own features and specialty. It is essential for the organizations that to understand buying behavior of consumers and accordingly offer them products and services. Culture impact on the behavior of consumers o great extent. Thus, it is essential to understand culture of particular place before entering into the market. This will support in gaining success and accomplishing the objective successfully.