May 24, 2013

Seoul, South Korea

The Westernization of South Korea: Examining countervailing

consumer discourses in Gangnam
Milan Marysko

Master-thesis Proposal
under the supervision of professor Bernardo Figueiredo, Post doc. PhD.

presented to the Department of Marketing and Management

University of Southern Denmark

1. Introduction and research question

Until quite recently, Gangnam as one of the parts of South Korea`s capital Seoul, has
not been widely known place among public outside of Korea. However, after PSY`s
Gangnam-style satire video reached more than 1 billion views on YouTube (as the first
video in the history) there have been an ongoing debate all around the world about the
popularity of catchy video clip and its ambiguous meaning. The question is: what stands
behind hilarious beats and animal-inspired dance? Unfortunately, the answer is not very
obvious, especially for non-Koreans. Gangnam, situated on the south bank of the river
Han (which divides Seoul into two parts) did not exist before 1970s. Nevertheless, rapid
economic growth of South Korea, and its capital Seoul in particular, caused skyrocketing
estate prices of previously inhabited areas. This rapid movement gave a rise of Gangnam
that is nowadays considered to be one of the most affluent, dynamic and influential areas
not only in South Korea, but also in East Asia. Nowadays, Gangnam, a 15-square-mile
district of southeast Seoul, is know not only as a business heart of South Korea, but
more importantly as a synonym for luxury, pricey boutiques, high-class night-clubs,
upscale fashion, and home for super-rich. Nevertheless, as the satire video indirectly
points out, the rapid transformation of the Korean economy and society in recent decades,
there appear to be a conflict between traditional values and the Confucian heritage on the
one hand and Western influence through economic and social changes on the other. As a
result, this clash generates a great deal of tension and threatens social harmony in Korean
society, partially through consumer behavior of some Koreans. In this way we can state
that Gangnam may be perceived as most salient example of both contradictory consumer
ideologies and consumer countervailing discourses in East Asia, South Korea in
particular. Therefore, in my paper, I would like to focus on above-mentioned tensions and
pinpoint current consumer discourses that negatively correlate with Korean traditional
values. To do so, I will address the following problem formulation: How do Korean
consumers use emerging countervailing discourses to create personalized consumption
meanings and practices?

2. Research design
Methods of data-collection - the purposive sampling criterion is going to be based on
nationality of participants. In order to ensure validity of my research, only Koreans are
going to be chosen. In order to enrich my research findings in terms of a multiple
perspective on a given topic, both Koreans from/outside of Gangnam are going to be
chosen in the same proportion. For the purpose of my research, I will use sampling
technique based on criteria of saturation. In other words, I will try to learn in detail and in
particular depth about the experiences of chosen individuals and at the same time stop
interviewing participants when no new information of significance (was) obtained for
ongoing thematic development and theorizing (Tuckett 2004). Therefore, size of the
sample is not known in advance. Demographic characteristics of above-mentioned
participants are going to be: age (22-35), occupation (university students and
professionals), and social stratification (middle-class). Importantly, this generation of
participants has been raised based on Confucian-values and, at the same time, currently
face radical changes of their lifestyles due to globalization forces. Therefore, this
generation is the main component of rapidly changing environment and may be a good
sample to focus on in order to see discourses in the market place, where they play the
most active role (Hyun 2001). Furthermore, my study will follow in a traditional
consumer research that emphasis developing more in-depth analysis of the life stories
expressed by a relatively small number of participants (Thompson 1996). The
fundamental tenets of this type of sampling strategy have been expressed by McCracken.
McCracken stress that the purpose of the qualitative interview is not to discover how
many, and what kind of people, share certain characteristic. It is to gain access to the
cultural categories and assumptions according to which one construes the world
qualitative research does not survey the terrain, it mines it. It is, in other words, much
more intensive than extensive in objectives (Thompson 1996). After explaining reasons
of my research, each participant will take part in interview dialogue (conducted in
English) that ranges from 60 to 90 minutes. Interviews are going to be recorded using
dicta-phone and later transformed into verbatim written transcripts. The majority of the
interviews occur at private-study-rooms situated in the local library. In order to derive
participants` experiences and world-views, the dialogue will be largely set by each

participant. In other words, only in case of clarification or further elaboration, interviewer

will direct questions.
Methods of data-analyses - verbatim written transcripts from interviews are going to be
analyzed using hermeneutics. In general, hermeneutics is one possible method of
analyzing and interpreting qualitative data. This method suggests that in order to
understand the complex whole, we need to first understand meanings and interactions
among its parts. The main purpose of hermeneutics is to focus primarily on meaning of
qualitative data. In other words, I will try to make sense of an object of study which in
some way is confused, incomplete, cloudy, seemingly contradictory - in one way or
another, unclear (Myers 2008). Thefore, my interpretation will try to make sense of an
subject under study, in my case, discourses in consumer lifestyle in Gangnam.

3. Categories of literature
Generally spoken, I will make a use of literature related to methodology (Arbnor and
Bjerke 1997, Belk et. al. 2013, Birks and Malhotra 2006, Burrell and Morgan 1979, Foss
and Waters 2008, Thompson et. al. 1989, Thompson 1997, Thompson and Hyatko 1997,
Thompson and Tambyah 1999, Thompson and Holt 2004, Myers 2008), Korean history
(Clark 2012), Confucian ethics and its effects on consumption (Nelson 2000, Palmer
2002, Weber 2002) national culture and its effects on consumption (Hampden-Turner and
Trompenaars 1997, Hofstede et. al. 2010, Lewis 2003), effects of globalization on
consumption (Craig 2006, Fang 2008), consumer culture theory (Arnould and Thompson
2005), global-local consumption (Kang et. all. 2011), consumer discourses (Thompson et.
al. 1989, Thompson 1997, Thompson and Hyatko 1997, Thompson and Tambyah 1999,
Thompson and Holt 2004) etc. To be more precise, sources of secondary information that
are going be used are enclosed at the end of this proposal.

4. Reasons why the study is significant

Nowadays, we are increasingly facing rebalancing of the word`s economic power from
West to East. Indeed, rapid growth of Asian economies led to an emergence of important
phenomenon Asian consumer. Especially for multinational companies, Asia is

becoming popular market due to the following reasons: Asia is an attractive consumer
market consisting of more than half of world`s population, there is rapid growth in
consumption, enormous developmental potential, rapidly emerging middle class, and
increasingly disposable income, are just few factors that contribute to popularity of Asian
markets. Nevertheless, some of the unique characteristics of Asian market have made a
multinational presence challenging at best. For example, in spite of growing interest in
Asian markets, marketers still possess lack of knowledge on how marketing techniques
and theories can be applied to non-Western contexts. Therefore, it is important to
understand Asian consumers. If we talk about South Korea in particular, reflecting
GDP, annual disposable income per capita has continued to increase slowly but steadily
since 2009, going from Won13,486,600 (9,354 Euro1) in 2009 to Won13,945,500 (9,672
Euro) in 2010 before reaching Won14,025,100 (9,727 Euro) in 2011. At the same time,
consumer spending has continued to grow with annual expenditure per capita going from
Won12,529,400 (8,698 Euro) in 2009 to Won12,996,200 (9,022 Euro) in 2010 before
reaching Won13,256,700 (9,208 Euro). Between 2009 and 2011, annual disposable
income per capita increased (in real terms) by nearly 4% while consumer spending per
capita increased by nearly 6% (Passport 2012). Therefore, based on the rise of
dispensable income as well as increasing spending patterns, it is very important,
especially for companies to understand consumer market and Korean consumption
patterns. From a scientific point of view, I can say that understanding of consumer
discourses in South Korea could contribute to a growing stream of research on the
socially embedded nature of consumption activities and meanings (Thompson 1996). To
defend the topic of my thesis even further, even if there are various studies on discourses
in consumers behavior and consumption patterns (Thompson et. al. 1989, Thompson
1997, Thompson and Hyatko 1997, Thompson and Tambyah 1999, Thompson and Holt
2004), there has been a limited focus on consumer discourses happening outside of
Western countries, especially those in Asia, South Korea in particular. In addition, based
on the current literature scrutiny, there is currently no study related to consumption
patterns of Koreans living in Gangnam. In this way, my study would pave the way for
further understanding of consumption patterns and related discourses happening in,

1 based on Exchange rate on May 14, 2013

nowadays increasingly debated Gangnam. In sum, some of the unique features of my

prospective research such as: research-subjects (Korean consumers), research-focus
(discourses in consumer behavior), place of focus (Gangnam Seoul), methods of data
collection (qualitative methodology emic approach), method of data-analysis
(hermeneutics methodology), of my study could result in understanding a new
phenomenon - consumer discourses in Gangnam Seoul.

5. Draft of master thesis outline

1. Introduction
2. Project structuring the purpose of this section would be to graphically outline
particular projects parts and briefly clarify how the project will be processed.
3. Theoretical foundations
3.1.South Korea from a historical perspective this sub-chapter would attempt to
briefly describe Korean history. In my opinion, Korean history and some of its
unique features have profound effects on society and consumer discourses taking
place in Gangnam (district in central Seoul South Korea), which is place of
focus in my paper.
3.2. Confucianism and its effects on Korean society - this sub-chapter would place
an emphasis on clarifying one of the most influential Eastern religion
Confucianism (Fang and Faure 2008, Weber 2009, Makeham 2008) in relation to
South Korea. Confucian values and their effects on people`s daily life are going to be
discussed. In addition, relationship between Confucianism and consumption patterns
is going to be elaborated on. From a practical point of view, it has been suggested
that Confucian consumers reflect social pressures (e.g. face savings and group
conformity) in their purchase decisions more than western consumers (Kang and Jin
2011). Based on Confucian etic, life should have no recklessness, no arrogance,
and no showing off (Henriksen 2009), that can also affect consumer behavior. In
addition, Confucian consumers can be characterized by: focus on family values,
collectivism (common goals and social harmony), and thrift.

3. 3. Market situation in South Korea build on the previous sub-chapters, this

part would analyze and discuss past literature on topics such as: consumer
culture and market situation in Asia, South Korea in particular (Nelson 2000).
Furthermore, I will elaborate on recent literature suggesting that as inevitable
resut of fast economic growth, confucian traditional values have been challenged
in the moredernization process of South Korea, and western characteristis, such
as individualism and materialism, have been emerging (Kang and Jin 2011).
Therefore there can be an interplay beetween traditional and more contemporary
values which results into hybridized consumer behavior. This hybridized
consumer behavior can (based on context) results for example into clash between:
hedonic vs. utilitarian consumption, local vs. global products` consumption,
consumption based on individualistic vs. collectivistic values etc.
3.4. Literature overview on consumer culture - this sub-chapter would offer
discussion of the role of consumer discourses. In other words, question such as:
what they are, how they operate, what they are used for, why they are important,
are going to be discussed (Thompson 1997, Thompson and Hyatko 1997,
Thompson and Tambyah 1999, Thompson and Holt 2004). On top of that,
discussions about other phenomena that can be related to the topic of my paper
are going to be enclosed.
4.

Methodology this chapter will try to focus on methodological overview and

describe fundamentals of adopted methodological approach, hermeneutics
(Arbnor and Bjerke 1997, Belk et. al. 2013, Birks and Malhotra 2006, Burrell and
Morgan 1979, Foss and Waters 2008, Thompson et. al. 1989, Thompson 1997,
Thompson and Hyatko 1997, Thompson and Tambyah 1999, Thompson and Holt
2004, Myers 2008). It will also strive to explain collection, evaluation and
subsequent use of data gathered during the interviews.

5.

Limitations - general limitations as well as limitations regarding chosen

methodological approach would be discussed.

6.

Consumers` manifested interpretations and consumption practices analysis

using hermeneutics approach, this chapter would analyze how identified
consumer discourses are present and in which way they are translated into

consumers behavior. In other words, consumers could alternate between

Confucian-based and Western-based cultural frameworks, depending on the
circumstances and place (in my case Gangnam). At the same time, consumers
may intergrate Western-based elements into localized form or consumers can
fuse Confucian-based and Western-based consumer cultures, in this way,
creating unique elements that are atypical for both.
7. Discussion and further research implications this chapter would attempt to
summarize findings of my research and suggest further research directions. At the
same time I would strive to further elaborate on contribution of my research and
highlight new findings (in comparison with previously conducted research). I will
also discuss changes occurring in consumer behavior in South Korea as well as
their prospective development in the future. Implications for businesses wishing
to penetrate into Korean marketplace are going to be included.
8. Conclusion
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