Journal of Technology Management in China A retail perspective on the shopping behavior, cultures and personalities for China, United Arab Emirates, Belgium, India, Germany and America Taylor Thomas Charles E. Carraher

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To cite this document: Taylor Thomas Charles E. Carraher , (2014),"A retail perspective on the shopping behavior, cultures and personalities for China, United Arab Emirates, Belgium, India, Germany and America", Journal of Technology Management in China, Vol. 9 Iss 3 pp. 289 - 296 Permanent link to this document: http://dx.doi.org/10.1108/JTMC-08-2014-0050 Downloaded on: 31 May 2016, At: 02:54 (PT) References: this document contains references to 20 other documents. To copy this document: [email protected] The fulltext of this document has been downloaded 1804 times since 2014*

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A retail perspective on the shopping behavior, cultures and personalities for China, United Arab Emirates, Belgium, India, Germany and America

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Taylor Thomas University of Texas at Dallas, Richardson, Texas, USA, and Downloaded by 36.77.155.179 At 02:54 31 May 2016 (PT)

Charles E. Carraher Florida Atlantic University, Boca Raton, Florida, USA Abstract Purpose – This study aims to examine the shopping behaviors (online and in store), cultures and personalities of consumers within China, Belgium, India and Germany, and compares them to American shopping behaviors and to each other. Design/methodology/approach – The data were collected through literature research and personality, cultural and shopping behavior research was assessed via surveys, while customer service oriented behaviors were measured through direct observation and survey methods using structured questionnaires and other approaches for data collection. Findings – The findings showed implications of anticipating consumer’s behavioral responses, as well as the cultural and personality differences. The findings may help retailers with strategic business strategies to assess what attracts consumers the most and the least and then use this advantage to become successful internationally. Originality/value – The current study is original, in that it uses multiple methods to collect data allowing for comparison across shopping industry groups including retail managers and even consumers themselves. Primary data of this type are difficult to obtain in China. This study contributes to the literature by showing that different industries may have different requirements in terms of the relationship between personalities and customer service levels among managers. Keywords Performance management, China, Culture, Marketing management, Shopping behavior, Competitive advantage Paper type Literature review

Introduction Research on shopping behavior focuses on the consumers and what causes them to want to shop or not want to shop. This is typically focused more on women, and very little research has been done on men and their shopping behaviors around the world (Ahmed et al., 2014; Al-Kwifi and Ahmed, 2014; Mujtaba, 2013). Retail managers globally should pay attention to such research to increase their sales, and this information can definitely be used to their advantage if managers want to branch out, in particular, internationally. Culture may play a major role with regards to shopping behaviors. A simple way to examine culture is to follow a metaphorical roadmap that can enhance one’s ability to

Journal of Technology Management in China Vol. 9 No. 3, 2014 pp. 289-296 © Emerald Group Publishing Limited 1746-8779 DOI 10.1108/JTMC-08-2014-0050

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adapt to an environment and to survive. Technology and the modern economy impose the need for using increasingly greater levels of technology. A knowledge-driven economy, with its use of media, both changes and interacts with a culture (Walsh and Godfrey, 2000; Walters et al., 2006). Once the lifestyle or culture of a country and its shopping habits has been understood, it can have an advantage for becoming successful.

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290 China There is a difference in the purchase behaviors of the subjects in the Chinese and American samples. The gender difference is not a result of the differences in the role of the family in the two cultures. In America, household money decisions are often made as joint decisions. A previous study found an even split between couples in which the female spouse handles family finances and those in which the male spouse does. In contrast, Chinese women traditionally handle the household budget. Often, the person who manages the budget may be more selective with their purchases. Thus, differences in the management of the family budget within the two separate cultures provide a potential explanation for the observed gender differences (Ackerman and Tellis, 2001). Behaviors connected to handling money also play a part, for example, widespread haggling is an aspect of Chinese shopping behavior that may be related to price consciousness and mainstream retailers may want to emphasize bargains or special deals in promotions and maintain them to avoid loss of profit caused by haggling. Direct marketing is a very strong method of building brand awareness and allowing the shopping behavior to increase. Direct marketing in China has been studied by Luk et al., who attributed its growing success to Chinese cultural reliance on renqing and guanxi. Although certain social characteristics are essential to Chinese relationships, attributing direct marketing success to Confucian values may be misguided, as Confucianism centers more on what is common among people and sharing it, rather than on exchange behavior. As DeGlopper states, “Confucianism thus lacks a model of any sort of limited, functionally specific, contractual social relation”. Notwithstanding the role of such behaviors in direct marketing, it is improbable that renqing or guanxi could be applied to the medium of television, where the consumer and host have no real contact and the viewer can easily escape social entanglements by pressing a button (Warden et al., 2008). America has QVC as their television shopping channel and this form of television shopping is the same as ordering from infomercials over the phone. Concerning the consumer buying behavior when it comes to buying clothes, it is changing very fast in modern China, particularly among young people. As more fashion-related goods are entering into the Chinese market, status-conscious Chinese now have a better understanding of luxury and quality than they ever did before, and it is no longer easy for foreign fashion companies to make money in China. For example, facing the challenges from H&M, Zara and other fast-growing domestic fashion brands, Bestseller Fashion Group China must have a thorough understanding of its target group’s buying behavior. Analyzing the Chinese fashion consumer’s buying behavior on a regular basis is a very effective way of keeping Bestseller Fashion Group’s leading position in China. Consumers in China have shown that they are sensitive to price but brand names are not relatively important among the respondents (Yang, 2011). According to Yang, fashion buying is also at its all-time high in certain parts of China, yet it is difficult for foreign fashion companies to beat the popular brands.

Comparing the older generation with the younger generation, the older generation focuses more on budgeting and the responsibility of this is usually given to the wife. As for the younger generation, they focus more on the fashion, the brand and the technology and aim more for the luxury and quality. Based on the research, this puts the personality of the younger generation in the category of “idea shopping” and the older generation in the category of “value shopping” (Zhou and Amin, 2014).

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291 United Arab Emirates Because of the country’s recent development, the United Arab Emirates can thrive in a media-rich environment as the impact of the Internet, entertainment and news programming and magazines and newspapers filled with worldly consumer delights are now a matter of choice. But bringing the world into Emirati homes has been the subject of debate, particularly in the context of preserving the local culture (Walters et al., 2006). The younger generation, now in their twenties, is reported to be looking at magazines for entertainment and information about fashion tips, women’s and children’s healthcare issue and lifestyles. Among the top favorite magazines is a weekend insert of the Gulf News that contains articles on beauty, fashion, career and family featuring mostly Western women wearing revealing clothing and beauty tips (Walters et al., 2006). As an extension of a consumer-oriented life, the shopping mall has carved out a special niche. It is the place where these females fulfill part of the imagined life presented to them in magazines and newspapers and on television. Shopping in the United Arab Emirates is “poetry of place”, where people meet and greet and women are free to wander. Shopping here is organized around the rhythms of life. Females that are in their twenties prefer malls to traditional souqs because modern malls not only are air-conditioned but also have it all-benches for watching, restaurants for eating, colorful displays of plant life, a luxurious feel and good parking. They are impulsive buyers who look for brand names and almost always buy when they go. Most look for twentyish basics such as Western-looking brand name clothing, French perfume and cosmetics. (Walters et al., 2006). When they go to the mall, young consumers are considered pretty much all of the following personalities: • “adventure shopping”; • “social shopping”; • “gratification shopping”; • “idea shopping”; • “role shopping”; and • “value shopping”. The malls, in general, attract all ages, but mostly focus on the younger generations for their marketing purposes. The power of lifestyle imagery at the malls and in the media to create creeping change should not be underestimated. Some observers believe that information and media help fashion behavioral systems that can potentially transform ways of life (Walters et al., 2006) as will technology advancements and the country’s recent development.

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When compared to American consumers, Emirati consumers generally go to malls for the same reasons, for spending time with friends and family, shopping or as an escape from their everyday lives. With all of the advertising done in America, the power of lifestyle imagery at the mall and in media also affects the shopping behaviors as well. Belgium Online surveys in America and Belgium were conducted to cross-culturally validate the Internet shopper lifestyle scale. Belgium can be considered an emerging market as far as the Internet is concerned, while America clearly is an advanced market. Although nations may be different in their progress in the world of the Internet, consumers who made the decision to have Internet access may respond similarly to online issues (Brengman et al., 2005). In the research article examined for this study, the focus was more on Internet shopping behaviors of the consumers as opposed retail shopping. The article split the research into four different Internet shopping personality categories, one more than the original five shopping personalities that is standard for general retail shopping. The four shopping categories are: (1) “tentative shoppers”; (2) “suspicious learners”; (3) “shopping lovers”; and (4) “business users”. The tentative shoppers have online shopping experience and were not suspicious about giving their credit card number and, on the whole, do not enjoy online shopping. Representing 14 per cent of the Internet shoppers in America and 13.9 per cent in Belgium, tentative shoppers form a relatively large segment and, as such, retailers should try to give them an added value they appreciate to increase their online shopping frequency (Brengman et al., 2005). The suspicious learners are the least computer and Internet literate. From all segments, they are the most fearful and hold the most negative opinions of Internet logistics, online offers and the convenience of the Internet. This tough segment represents 15.6 per cent of American online shoppers and 8.9 per cent of Belgian online shoppers. User-friendly procedures, training and guidance and a solution for online security problems may turn this segment into convinced shoppers, although patience is needed for this to happen (Brengman et al., 2005). Shopping lovers are a dream for online retailers. They love Internet shopping and all of its facets (the convenience, the offers and the possibility of “window” shopping). They frequently buy online, use the Internet for accessing information, for fun and for business and are excited about exploring many different Web sites. About 9.8 per cent of American shoppers belong to this segment, while in Belgium, it is 15.3 per cent. Representing ideal opinion leaders, Internet retailers should try to encourage this segment even more to spread positive word-of-mouth (including loyalty rewards or discounts) (Brengman et al., 2005). The business users include confident computer and Internet users who use the Internet mainly for competitive and business purposes. They love to explore Web sites and see the Internet as making a valid contribution to their life. Business users represent

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12 per cent of American and 10.5 per cent of online Belgian shoppers (Brengman et al., 2005). This shows that, compared to America, the Belgian Internet shopping behaviors are relatively the same, even though the Internet is more developed, and the Internet usage is much higher there than in most other countries.

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India The consumer psychographic dimensions such as values, lifestyles and shopping orientations significantly affected store format choice behavior. The five psychographic segments that emerge from this have exhibited different shopping orientations. Time consciousness and local shopper orientations are the significant predictors for choosing a kirana (a small neighborhood store) format. Time consciousness and information seeking are also significant predictors for convenience store format choice decisions and variety seeking, brand conscious, time conscious, local shopping tendencies and price conscious shopping orientations are significant predictors for supermarket store format choice decisions. It is suggested that retailers take note of the emerged food and grocery retail segments while developing retail format strategies. In general, the closer the consumers are to a store, the greater their likelihood to buy from that store. In contrast, the farther away consumers are from a store, the greater the number of intervening alternatives and thus the lower their likelihood to patronize that store. The travel time to a store is assumed to measure the effort, both physical and psychological, to reach a retail outlet. However, the effect of travel time varies by product, and consumers are willing to travel very far for some products (Prasad and Aryasri, 2011). In this case, local shoppers would also be put into the value shopping category because the Indian shoppers want convenience, timely, efficient and affordable shopping. Even though, this applies more for grocery shopping, time is regarded as precious for most consumers, so it is best to find out what can be completed to see what will attract consumers to the stores, regardless of the distance. It is known that time, price, convenience and quality are considered most important with regards to grocery shopping, and this can definitely be applied to retail shopping. In America, time, price, convenience and quality are also important, especially when it comes to shoppers at large stores such as Wal-Mart, Kroger, Target and Albertsons. Those stores are considered convenient and usually within a consumer’s neighborhood, but, occasionally, as with Target, they can be more expensive because their product quality is very high and consumers are willing to travel to the stores and pay extra for their goods. This model can be used to help future businesses when it comes to developing their marketing strategies to help retain their original customers and gain new customers.

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Germany Women prefer to buy clothing, shoes, jewelry, household goods, books and groceries. Men specializes in technical appliances, “extras” for their car, sports equipment and antiques, in general in more expensive and prestigious items, sometimes to demonstrate that they can afford it, sometimes because they feel that these goods are their “fair share”, but mostly because these good serve to support their self-worth. (self-esteem from which they suffer – consumption and buying increasingly take on the role of a socially favored means of compensation) (Scherhorn et al., 1990). This demonstrates that

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men and women are basically the same when it comes to personalities of the shoppers, such as “idea shopping” and “value shopping” and are similar to American consumers. However, further exploratory qualitative research is needed to examine other aspects of German decision-making, such as attitudes toward time. Time is an important factor to Germans and they dislike wasting it (Walsh et al., 2001). Consumers in such segments are likely to display within category product and service preference homogeneity, which can be the basis for the segment. Products that convey an image of quality, durability and prestige, for example, are likely to appeal to members of the latter segment who demand well-known, superior products. While previous marketing activities were primarily focused on increasing market shares in terms of a mass marketing based on single transactions, recently there has been a paradigmatic shift toward relationship marketing. This change in viewpoint is based on the finding that the establishment and maintenance of long-term relationships have a decisive influence on corporate success. In this study, the authors present a critical theoretical and empirical analysis of the contribution the Internet can make to successful marketing relationships. The study focuses on the influence that important characteristics of the Internet, such as its interactive structure and constant availability of information, can have on key variables of relationship marketing, including commitment, satisfaction and trust. (Baur et al., 2001; O’Cass and Fenech, 2003). Germany is very similar to America in many ways, especially in that consumers are completely advanced in Internet shopping. The shopping behaviors of men and women in these countries are also similar, as both tend to be conscious of brands and fashion. There are not many studies specifically on men and their shopping behaviors, which is something that should be looked into for future research. Conclusion The academic research shows that shopping behaviors around the world are generally the same and raises the question: Why should retailers care about differences in shopping? Culture impacts, not just the products consumers buy but also consumers’ shopping behavior and that of spouses. This study suggests that differences in shopping behaviors influences the prices offered by retailers. Retail stores hoping to enter foreign markets or those that target domestic markets with a large proportion of ethnic or immigrant consumers can use these findings when developing their strategies. In particular, they may have to offer a substantially different marketing mix to attract customers. In addition, time, price, convenience and quality are very important to consumers and all play a part as to why they stop purchasing, regardless of whether if it is grocery, retail or online shopping. Shopping behavior may also influence the type of retailer preferred by consumers (Ackerman and Tellis, 2001). Even though price, convenience and quality are very important to the consumers, there are other factors that can play into the role of how to further advance the research into shopping behaviors. Sometimes understated and subtle changes to the retail environment are all that is required to change how shoppers behave inside a store, including variables such as layout and design, exterior building shape and characteristics, such as color and architectural style, and interior music, floor coverings, color, lighting and “the arrangement of the store as far as what the retail store is trying to get the consumers to see first”. These studies also show that this relationship occurs across a number of different types of retail stores and situations. Although there may be some debate about whether

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the atmosphere can influence the time spent in an environment, there is enough evidence to be able to clearly state that the atmosphere has an effect on consumer spending and that variations of atmospheric variables affect the amount of money people spend and the number of items they purchase (Turley and Milliman, 2000; Dijksterhuis and Smith, 2005). There is also very little research about the shopping habits of men, and it would definitely be recommended to pursue this to gain insights to excel in retail business. “We describe three common stereotypes of male shopping behavior: (1) “Grab and Go”; (2) “Whine and Wait”; and (3) “Fear of the Feminine”. We argue that men who shop have achieved gender role transcendence, and have found ways to satisfy an ethic achievement in the marketplace” (Otnes and McGrath, 2000). Shopping is also increasingly recognized as contributing to the self-identity of men and women. Although the Internet is used for shopping by both genders, it is extensively used for browsing by men and also has clear implications for retail strategy. Because men tend to enjoy bargaining, it seems advisable that retailers allow their male customers to emerge from any negotiations feeling positive. In terms of future research, the construct of gender role transcendence certainly may have explanatory power beyond this study and could contribute to better understanding the consumer behavior of both men and women (Otnes and McGrath, 2000). However, marketers need to build an understanding of consumer decision-making styles so that future research can establish whether such segments exist and are accessible, sustainable and stable (Walsh et al., 2001; Baur et al., 2002). The interaction of consumers and marketers within the Internet environment, particularly for retailing and purchasing, is a growing area of importance. Online shopping, in store shopping and even television shopping is growing daily with advances in technology. Advancing the overall customer experience will make the shopping behavior much more efficient and will enable it to continue to grow over the years. There are many ways retail managers can take advantage and accelerate their sales and increase their business over time. References Ackerman, D. and Tellis, G. (2001), “Can culture affect prices? A cross-cultural study of shopping and retail prices”, Journal of Retailing, Vol. 77 No. 1, pp. 57-82. Ahmed, Z.U., Al-Kwifi, O.S., Saiti, B. and Othman, N.B. (2014), “Consumer behavior dynamics of Chinese minorities”, Journal of Technology Management in China, Vol. 9 No. 1, pp. 6-23. Al-Kwifi, O.S. and Ahmed, Z.U. (2014), “Chalco: building a global brand while passing industry crisis”, Journal of Technology Management in China, Vol. 9 No. 1, pp. 75-90. Baur, H.H., Grether, M. and Leach, M. (2001), “Building customer relations over the internet”, Industrial Marketing Management, Vol. 31 No. 2, pp. 155-163. Baur, H.H., Grether, M. and Leach, M. (2002), “Building customer relations over the internet”, Industrial Marketing Management, Vol. 31 No. 2, pp. 155-163. Brengman, M., Geuens, M., Weijters, B., Smith, S.M. and Swinyard, W.R. (2005), “Segmenting internet shoppers based on their Web-usage-related lifestyle: a cross-cultural validation”, Journal of Business Research, Vol. 58 No. 1, pp. 79-88.

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Dijksterhuis, A. and Smith, P.K. (2005), “The unconscious consumer: effects of environment on consumer behavior”, Journal of Consumer Psychology, Vol. 15 No. 3, pp. 193-202. Mujtaba, B.G. (2013), “Negotiating with modern Chinese professionals: a review of cultural considerations and cyberspace communication”, Journal of Technology Management in China, Vol. 8 No. 3, pp. 190-202. O’Cass, A. and Fenech, T. (2003), “Web retailing adoption: exploring the nature of interest users web retailing behaviour”, Journal of Retailing and Consumer Services, Vol. 10 No. 2, pp. 81-94. Otnes, C. and McGrath, M.A. (2000), “Perceptions and realities of male shopping behavior”, Journal of Retailing, Vol. 77 No. 1, pp. 111-137. Prasad, C.J. and Aryasri, A.R. (2011), “Effect of shopper attributes on retail format choice behavior for food and Grocery Retailing in India”, International Journal of Retail & Distribution Management, Vol. 39 No. 1, pp. 68-86. Scherhorn, G., Reisch, L.A. and Raab, G. (1990), “Addictive buying in Germany: an empirical study”, Journal of Consumer Policy, Vol. 13 No. 4, pp. 355-387. Turley, L.W. and Milliman, R.E. (2000), “Atmospheric effects on shopping behavior: a review of the experimental evidence”, Journal of Business Research, Vol. 49 No. 2, pp. 193-211. Walsh, G., Mitchell, V.W. and Hennig-Thurau, T. (2001), “German consumer decision- making styles”, Journal of Consumer Behavior, Vol. 3 No. 4, pp. 331-346. Walsh, J. and Godfrey, S. (2000), “The internet: a new era in customer service”, Journal of Retailing European Management Journal, Vol. 18 No. 1, pp. 85-92. Walters, T., Quinn, S. and Jendli, A. (2006), “A new roadmap to life: media, culture, and modernity in the United Arab Emirates”, Intercultural Communication Studies, Vol. 15 No. 2. Warden, C.A., Huang, S.C., Liu, T.C. and Wu, W.Y. (2008), “Global media, local metaphor: television shopping and marketing-as-relationship in America, Japan, and Taiwan”, Journal of Retailing, Vol. 84 No. 1, pp. 119-129. Yang, G. (2011), Consumer Buying Behavior in Chinese Clothing Market, Tampereen Ammattikorkeakoulu, Tampereen, p. 55. Zhou, Y. and Amin, M. (2014), “Factors affecting online community commitment in China: a conceptual framework”, Journal of Technology Management in China, Vol. 9 No. 1, pp. 24-36. Further reading Arnold, M.J. and Reynolds, K.E. (2003), “Hedonic-shopping motivations”, Journal of Retailing, Vol. 79 No. 2, pp. 77-95. Corresponding author Charles E. Carraher can be contacted at: [email protected]

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