Professional Documents
Culture Documents
Cross-cultural differences in
marketing communications
Business Administration
Master’s Thesis
30 ECTS
© The Authors
Karlstad, 2013
First, we would like to thank our supervisor Prof. Bo Rundh for his time,
extraordinary care, support and constructive inputs and remarks.
Furthermore, we would like to thank the respondents, who took part in our
survey, which would not be possible to conduct without them.
Last but not least, we would like to thank our families and friends for their
support in all directions.
ABSTRACT
Based on the relevant theory and secondary research findings four hypotheses
were developed to address the research question “Does cross-cultural differences
within Central and Eastern Europe affect the marketing communication mix in a
specific industry?”.
The study results provided that cultural differences exist not only between
different regions, but also found within the same geographic region. When
considered from marketing perspective, they are significant enough to influence
customers’ preferences and perceptions of different aspects of marketing
communication mix.
The results obtained are specific for a particular case, so they can not be applied
to some other countries. However, when it comes to marketing communication
perceptions, the results can be used as guidelines by other industries then tourism.
1
1. Introduction
The paper emphasizes cross-cultural issues in marketing communications within
the Central and Eastern Europe (CEE). General theoretical background focuses
on marketing strategy and marketing communications and also covers some
aspects of cross-cultural issues in tourism industry.
Therefore, two main fields to be covered in the current paper are marketing
communications activities and cross-cultural issues, and if/how they are
interrelated within a specific industry and a specific market, chosen and defined
by authors.
The literature examined (Usunier & Lee 2009, Fill Chris 2006, Oosthuizen 2004,
Orth et al. 2007) suggests that developing the Marketing Communications Mix
(MCM) requires taking into consideration ethnicity and cross-cultural differences
of the regions of interest. However, existing research pays little attention to how
consumers in different countries respond to different aspects of marketing
strategy and appeals of the MCM. There is a dilemma to which extent the
2
marketing communications tools and messages should be standardized when
targeting markets internationally (Orth et al. 2007). As there is no more specific
information found on what aspects of MCM are influenced by the culture and
how the perception of MCM differ across countries and to which extent the
MCM should be adjusted or modified, these issues are addressed in this study.
Although the problem is quite specific, it was necessary to narrow the researched
topic. As traditional developed markets are saturated, it is crucial to discover new
market opportunities in emerging markets. The CEE has been chosen as the
region of interest due to the economic development, growing income and
purchasing power, accessibility and rising usage of Internet, mobility of
population, easiness of traveling and ultimately the availability and affordability of
air transportation via low-cost airlines (Douglas & Craig 2011). Czech Republic
and Ukraine were chosen as the key markets in this context. Czech Republic with
its central location represents the European Union country with close business
relations to Western Europe. On the contrary Ukraine with its binding to Russia,
high income disproportions and isolation from the Western influence represents
other type of country within the CEE region. These two examples are worth to be
examined in details due to the fact that although there are obvious differences
between them, companies tend to group both countries within one CEE region,
entering them with the same business model and targeting them with the same
marketing strategy.
3
1.2. Purpose of the study
The main object of this study is the importance of cross-cultural issue in the
MCM in Central and Eastern Europe. Steaming from the problem identification
the research question was developed.
“Does cross-cultural differences within Central and Eastern Europe affect the marketing
communications mix in a specific industry?”
4
2. Theoretical framework
Figure 1 shows the business-consumer relationship model: The marketing
communications application developed by Thrassou and Vrontis (2009).
Figure 1: The extract from a business-consumer relationship model: The marketing communications
application extended by Cross Cultural Differences (Thrassou & Vrontis 2009)
The model serves as a theoretical framework and is consistent with the researched
topic and offers the integration of up to date trends in marketing communications
practices. The model creates a business-consumer and takes into consideration
the Small and Medium-sized Enterprises (SMEs). Thrassou and Vrontis (2009)
suggest using the model for developed countries however the authors do not
measure development by economic output rather by social organization,
5
consumer behavior complexity and development indicated by education or
technology penetration. Considering this type of measurement, the model can be
applied for Czech Republic and Ukraine. Thrassou and Vrontis (2009) admit that
the model is still in its conceptual proposition and suggest that the model can
serve as a starting point for distinctive analysis or stimulate for further research.
To match the researched topic in the best meanings, it was decided to extract the
most important parts of the actual marketing communications model (Appendix
I) and suggested to extend the MCM by cross-cultural issue. The suggested
necessity of inclusion of cross-cultural differences into the model is to be
approved or rejected by the study findings.
6
product as it is in the usual way to international markets, modifying products for
different countries, designing new products for foreign markets or designing
globally flexible product. Factors influencing the product-adaptation decision
include regional or country characteristics, product or service characteristics and
company considerations about profitability, market opportunities, costs and
resources (Czinkota & Ronkainen 2012).
Based on the theory (Czinkota & Ronkainen 2012, Johansson 2009) stating that
standardization is possible for specific homogeneous marketing segments
worldwide and cultural differences do not need to be taken into consideration,
first hypothesis can be formulated. H1: “When targeting specific
homogeneous segments (especially young professionals, who are wealthier,
appreciate brands, luxury and traveling) marketing communications
adaptation is not required.”
7
Johansson (2009) mentions, that the globalization together with ICT progress
caused the use of standardized marketing strategy by many global companies.
Marketing managers are now rethinking this approach, realizing that global
marketing strategy and marketing activities need to be adapted to local conditions.
Local consumers´ behaviors, habits and cultural differences need to be analyzed
in order to create the balance (Johansson 2009). The positioning of the good or
service in the minds of the target consumers can differ across countries due to the
environmental factors. To reach the intended position of the product or service
the benefits of the product or service must be communicated and companies
must predict how the particular markets will react to standardized product
(Johansson 2009).
Taking into consideration the mentioned points the application of the global
strategy internationally is workable when companies concentrate on predictable
developed markets or on particularly specific homogenous segments across
different countries. However traditional markets are saturated and experiencing
stagnancy. To maintain competitive position in developed markets companies
need to invest into promotional activities and innovations to target specific needs
of demanding consumers but also look for opportunities in other developing or
emerging markets worldwide (Douglas & Craig 2011). When entering new
developing or emerging markets, the Multinational Enterprises (MNEs) usually
first enter with goods or services appealing to the higher income class. “In
particular, the more affluent members of the middle class, often successful
professionals or entrepreneurs, provide a prime target for higher-end Western
brands in categories such as fashion and watches” (Douglas & Craig 2011, p. 85).
However rising middle and high income class in developing countries create a
large market for goods and services attracting not only luxury oriented companies.
The task for companies entering new developing markets is to adjust their
marketing strategy and adapt their MCM cross-culturally. According to Douglas
and Graig (2011) the current integrated marketing strategies need to be redesigned
and adjusted to the local markets´ needs. For these reasons they introduce a
semi-global marketing strategy. “Factors such as customer interests, taste
preference, purchasing patterns, and, in particular, price sensitivity differ
substantially among countries. As a result, firms must adapt and develop new and
different strategies tailored to a region or country´s unique characteristics.
Consequently, the firm´s focus needs to shift away from global integration,
8
coordination of strategy, and issues such as global branding to development of
divergent strategies geared to different customer needs, competitors, and market
conditions in different geographic locations” (Douglas & Craig 2011, p. 86).
9
Figure 2: The tools and position of the marketing communications mix (Fill 2006)
10
acceptance. PR communicates trustworthy activities believable for readers. These
could include news, references, speeches, special events, articles, corporate
identity material or public service activities. Word-of-mouth remains the most
workable marketing communications tool. Consumers inform about products or
services by sharing their opinions and experiences in their communities and
companies are monitoring their oppinions and interacting with them online
(Kotler et al. 2008, Czinkota & Ronkainen 2012).
Following tools and media are considered as appropriate when applying the new
communication model: people, in meanings of leadership and management, spoke
persons, employees or opinion leaders; posters; press, television and radio
including ads & no ads.
Social networks and social media have become emerging phenomena. “Social
network is a communal structure consisting of individuals or organizations
connected with each other through friendship, common interest, commercial
transactions, information exchange, or other types of relationship” (Czinkota &
Ronkainen 2012, p. 548). Continuously an increasing number of companies use
social networks as a part of their marketing strategy due to the efficiency, low-cost
and two-way marketing communications characteristics. Marketing strategy using
social networks can communicate tailored messages to target audiences.
Exploitation of social networks can help the companies to raise brand awareness,
increase market penetration, maintain customer loyalty, create user advocates,
conduct market research, develop word of mouth advertising, create on-line buzz,
drive consumers to company web-sites and generally increase sales (Czinkota &
Ronkainen 2012). Social network´s online platform can serve as an online word-
12
of-mouth promotional tool, and should be incorporated into the media strategy.
“Social media are an Internet-based communications medium in which extensive
conversations and interactions take place among people online” (Czinkota &
Ronkainen 2012, p. 552). Social media enable companies to interact with
consumers and consumers can express their needs, wants and positive as well as
negative feedback. Marketers can update consumers on regular basis and target
them with special promotional activities. Social or Consumer Generated Media
(CGM) can have a form of blogs, online bulletin boards or podcasts. Some
marketers are already discovering the power of blogs and social networking and
are trying to reach targeted consumers. However many companies do not exploit
this possibility fully (Czinkota & Ronkainen 2012).
It was decided to concentrate on a tourism industry within the main topic of the
marketing communications due to its scale and dynamics. Tourism industry is
challenged greatly by the rapid development of technology, market globalization,
intensified competition, growth of sustainability and social responsibility
awareness. All these issues resulted in the changes of the ways the tourism
businesses are conducted: application of marketing principles are to the tourism
management, the focus is shifted from a tourism offer (product/service) to the
customer himself, mass communication is replaced by more targeted almost
individual dialogue with customers (Halloway & Robinson 1998, Tsiotsu &
Goldsmith 2012). According to Raju (2009) in a genuine service industry like
tourism, the most essential marketing function found is developing awareness of
an offer (product/service) in minds of current as well as potential customers. A
promotion message needs to be sent via a variety of communication channels and
marketing communication has to be done in a systematic manner addressing
13
existing and potential customers. The Internet made it possible for tourism
service providers including hotels, property owners, catering providers, airlines
and others to increase direct communications with their customers at the
decreased costs and overcome such intermediate agents as travel agencies (Ratten
& Tsiotsu 2010).
Marketing Communications Mix for the tourism industry will combine the
same constituents as general theory suggests (tools, means and message), but their
arrangement will differ for every single case even within the industry. Evolution
of the tourists´ behavior gives more inputs for marketing activities and
encourages shifts in general marketing logic. Previously marketing activities were
focused on the offer - tourist products, services or destinations while currently the
customer itself has become a target of all the efforts. New logic suggests that
marketing communications are aimed at retaining existing customers and building
long-term relationships by emphasizing individual approach, added value,
personalization and offering customized concepts (Williams 2006, Ratten &
Tsiotsu 2010).
14
unsatisfied customers can create a bad image of the company (Raju 2009,
Halloway & Robinson 1998). This knowledge has led to the development of the
so called concept of “two-step flow of communication”, which presuppose that
company’s communication message is aimed at reaching opinion leaders and lead
users (those who are the most likely to purchase a product/service at the first
place). Word-of-mouth advertisement is especially important for SMEs in the
tourism industry, because they operate in a very competitive environment and
experience limitations of their promotion budgets in comparison with global
leaders (Halloway & Robinson 1998). According to the communications
means/media, tourism businesses have to keep up with the dynamic evolution
of modern media of communications and exploit them in their activities. Tourism
industry is the one substantially using new technological advances. Internet is
becoming a tremendously important tool for e-businesses and its adoption in the
area of marketing and sales is necessary. Internet penetration provides significant
advantages including: cost savings for advertising and physical retail, accessibility,
high speed and volume of information communication, customer convenience,
advanced customer relationship management, worldwide coverage, which is
especially important for SMEs. SMEs has got a chance to compete internationally
with big companies and industry leaders, which was not possible before due to
the limitations of the budget, high costs of traditional marketing communications
means, and thus restricted reach of target markets (Elliot & Boshoff 2009, Ratten
& Tsiotsu 2010). Tourism consumers benefit from transaction costs
minimization, improved products quality, decreased level of uncertainty, more
efficient distribution channel, availability of information and possibility to
compare numerous offers available. Modern customers have become more
experienced and demanding, they seek for personalized offers ensuring the best
value for money. They are transformed from simply passive receivers of
information and passive consumers of tourist products/services to active co-
creators of destinations and tourists suppliers’ information. Variety of web
applications including social networks (FaceBook, My Space, Linkedin, etc.),
forums, blogs, trip planning and self-booking platforms (TripAdvisor,
Booking.com, HomeAway, etc.) provide customers´ involvement into new
product/service development. This type of customers was categorized by Alvin
Toffler as “prosumers” co-producers of the value (Ratten & Tsiotsu 2010).
However Ratten & Tsiotsu (2010) suggest that there is an under-exploitation of
15
the Internet as a marketing communications tool and its hidden potential should
be used by service providers to improve business efficiency. Elliot & Boshoff
(2009) question the Internet as a source of Sustainable Competitive Advantage
(SCA), since information technologies needed for employing the Internet for
marketing purposes could be easily identified and replicated by competitors.
16
communications. Economies of scale, crucial for an effective international
business, are possible only through global standardization of activities, which
presuppose neglecting local peculiarities of different markets. Oosthuizen (2004)
suggests that there are two ways for global companies to improve market
penetration while taking into consideration cultural aspects: by adjusting
marketing activities to every single culture “bottom-up” approach or by
developing marketing based on universal symbols, and then adjusting those
symbols and ideas to different social, economic and cultural setting of different
markets “top-down” approach (Oosthuizen 2004).
Oosthuizen (2004) identifies three aspects which facilitate the complex process of
activities within marketing communications: (a) applicability to target market’s
needs and wants, (b) usage of language that a target market understands, (c)
empathy in the sense of finding the most appealing elements, emotions, symbols,
knowledge, idioms, etc. Oosthuizen (2004) incorporated them into a three-tier
core value model, which provides a framework for marketing communications
for different target markets across cultures without developing separate marketing
communications strategies and keeping “the main strategic threat” for every
country. The model (Figure 3) is basically built on two existing theories: Kurt
Lewin’s (1939) field theory and the Rokeach (1968) value theory. The ranking of
values used in the model are based on consistency of values over time (core values),
relation to a certain culture and society (secondary values) and relation of values to a
specific period of time (peripheral values) (Oosthuizen 2004).
17
Core values are those that remain the same across cultures, learned values vary
from culture to culture according to religion or traditions, but include values
established through universal communications (MTV, Coca-Cola) as well,
peripheral are then temporary and true just for a some period of time or for a
certain group of people. To establish global and universal brands, while building
marketing communications appeals, companies should concentrate on core
values, which create a fundamental meaning understandable worldwide. Learned
values are the most appropriate for localization of communication appeals, they
originate from language, customs, traditions, beliefs or social systems. Peripheral
values have temporary nature and symbolize certain times, settings and trends.
Peripheral values change fast and marketers should revise and update their
marketing messages based on these values. Many companies though mistakenly
use them as a core idea of brand, as if they would be core values (Oosthuizen
2004).
19
stated. H3: “There are significant differences when it comes to perception
of marketing communications mix even within one region consisting of
similar countries.”
Thrassou and Vrontis (2009) suggest branding as a main tool for changing
people’s perception. The marketing communications model is based on consumer
relationships and on the fact that consumers´ needs are becoming intangible
wants, which are more vulnerable to marketing strategies. Both of these bases
identify branding as value-adding strategy including elements such as lifestyle,
values, ideas or attitudes (Thrassou & Vrontis 2009). Reid et al. (2005) state that
brand orientation together with market orientation are necessary for successful
implementation of IMC. Consumer Brand Engagement (CBE), which is identified
as “an overarching marketing concept encapsulating different consumer decision-
making dimensions, from brand preference to brand purchase” (Gambetti et al.
2012, p.1) is currently one of the main focuses of branding strategies. CBE
emphasizes the importance of consumer-brand relationship and requires long-
term strategy aimed at building trust- and commitment-based consumer-brand
relationships. Finally consumers are playing active role in creating brand values
by incorporating their favorite brands into their daily lives with support of
interactive social media and networks (Gambetti et al. 2012).
Researched theory (Thrassou & Vrontis 2009, Finne & Grönroos 2009, Kotler et
al. 2008, Halloway & Robinson 1998, Tsiotsu & Goldsmith 2012, Williams 2006)
emphasizes the current importance of business-consumer relationship and the
fourth hypothesis is formulated. H4: “Business-consumer relationships are
valued by customers as very important aspects of marketing
communications in Central and Eastern Europe.”
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3. Research methodology
Following chapter provides information about the research methods and
techniques used.
Hypotheses
Data Revision of
Theory Hypothesis Findings Confirmed
Collection Theory
or Rejected
The deductive nature of the research suggests using quantitative research as the
most appropriate when the testing of hypotheses is to be performed. Quantitative
research is therefore an appropriate strategy for this study. It describes how things
are and tries to identify the reasons why they are so. In addition, quantitative
research provides following advantages: (1) it is used as a tool for the hypotheses
examination, (2) it supplies ‘workable data’ that are easy to analyze, (3) the results
provided are more likely to be generalized and used later on for a similar research,
(4) considering the settings and time limitations of the research, this method is
more likely to provide more responses (Bryman & Bell 2011).
Considering the reliability and validity of this research design, which evaluate the
measures of concepts, following factors must be taken into consideration.
Reliability can be achieved if the obtained results are stable and do not fluctuate
over the time. Internal reliability can be observed as respondents´ answers are
consistent and related. The combination of secondary and primary data is
enhancing the reliability of the research due to the fact that data were gathered
from more than 1 source. Further the use of professional software diminished the
variability and errors during the research. Internal validity is weak when compared
with experimental research, while external is strong when sample is selected
randomly and enables thus generalization (Bryman 2012). In this study non-
random as well as random selection method were used, which could make the
validity questionable. However due to the specific topic and secondary data
analysis, it was possible confidently define the segmentation process and target
group and thus even non-random sample is quite representative and could be
generalized.
Czinkota and Ronkainen (2007) suggest that the general research objective should
be used as a guideline to identify the information required and to build a general
framework for the research. Considering the specificity of the research question, it
was decided that the research will include two stages: secondary and primary data
collection. Secondary data together with the existing theory will form a
background for the hypotheses formulation, while the primary data will be used to
test the hypotheses. Secondary data were gathered during February 2013. The
questionnaire was designed by using the theory and the secondary research
findings and afterwards translated into local languages. Primary research was
conducted within March and April 2013.
23
3.3.1. Secondary data description
Following scheme (Figure 5) suggested by Proctor (1997) will be used for the
purpose of sample development.
Select
Define the Select the Determine
Develop a appropriate
target sample appropriate
frame sample
population design sample size
members
24
According to Fitzgerald and Arnold (2000) media reach and media
communications are strongly based on the demographic characteristics of the
chosen target group and demographics continue to play an important role while
building marketing communications strategy. At the same time Czinkota and
Ronkainen (2007) suggest that life style, attitudes and personality are becoming
increasingly important variables to identify new consumer groups need to be
targeted across countries. Taking into consideration both points of view, it was
decided to base the segmentation process on such variables as demographics,
economic factors and life style.
The target population is the population of two big CEE cities: Prague (Czech
Republic) and Kharkiv (Ukraine). Identification of the target population was
based on the theory (Czinkota & Ronkainen 2012, Johansson 2009) and
secondary data analysis. In Czech Republic, the target population is educated
middle and higher income class (people earning an average monthly salary and
more), in the age category 16 – 44. In Ukraine the target population is higher
income class (people earning more than an average) and includes postgraduate
students, young professionals and working individuals between 25 and 50 with
higher education (Appendix II & III).
The random and non-random sample methods were chosen to conduct the
primary research. Additionally, the usage of judgmental sample can be considered
as subjective judgments were used to select representative population members,
when using the non-random sample method (Kotler, Bowen & Makens, 2003).
The sample size was set to be around 150 respondents from each country. This
number was considered as sufficient due to the fact that specific segment was
targeted directly.
25
in a form of percentage discount from Costa Barcelona Villas was provided for all
the respondents.
Structured and closed-end questions with the predefined limited answer choices
were used. Usage of open-end questions was limited as they are more useful in
exploratory research. As Bryman and Bell (2011) and Kotler et al. (2008) suggest
closed-end questions with different scales as multiply choice, likert scale (level of
importance, level of influence, level of agreement and level of frequency) rating
scale or evaluation included numerical, verbal and frequency formats were used.
Likert-type scales were coded with the numbers (0, 1, 2, 3 and 4). Levels of
importance, influence and agreement were coded with 0 for the most positive
attitudes (extremely important, extremely influential and strongly agree) and with
4 for the most negative attitudes (not important at all, not influential at all and
strongly disagree). The level of frequency was coded with 0 for the lowest
frequency (never) and with 4 for the highest frequency (all of the time) (see
Appendix Va).
Primary data were collected via questionnaires spread in Prague (Czech Republic)
and Kharkiv (Ukraine). These cities were chosen based on the secondary data
26
analysis. Prague, as the capital and the biggest city in Czech Republic with the
highest level of income among population, biggest extent of the Internet usage
and with the best infrastructure facilitating traveling. Kharkiv, the second biggest
city in Ukraine with 1,4 million inhabitants, is on the third place by the Internet
penetration index and among the top five regions with the highest level of income
(Czech Statistical Office 2012, Ukraine statistical office 2012) The target
population was supposed to be reached by spreading questionnaires among
working population, young professionals, university teachers, graduate and post-
graduate students. Part of the questionnaires was randomly spread in paper
format on places providing high concentration of our target groups (universities´
cafes, fitness studios, beauty salons, cafes and social spaces within the commercial
zones). Additional part of the questionnaires was distributed in online version by
using the personal networks of the researchers.
The most relevant observations and results from both secondary and primary data
were highlighted and summarized to serve as a source of information for the
analysis. Primary data were processed by SPSS program to provide sufficient and
sophisticated options for the analysis. Basic descriptive statistics, including
frequencies were conducted. Mode was used as the indicator of central value to
provide the summary of the answers. Mode has been chosen over mean due to
the nominal nature of responses and due to the convenience and ability to
provide the most frequent answers overview. However mean values were used
when analyzing the differences between countries to obtained detailed numerical
outcome. Independent t-test enabled to compare the means between Czech
Republic and Ukraine on the same variables. T-tests were used for specific
questions to address the research question and answer or reject the hypotheses.
Tables obtained from the t-tests summarize the basic statistics including N
(number of respondents), mean, standard deviation and standard error mean
(Field 2009). P-values, differences in the means and standard error differences are
presented in the additional tables in appendix. When mean differences were of
negative value, responses obtained from Czech Republic were of smaller mean
(representing more positive values) than responses obtained from Ukraine. If p-
value (Sig.) is > 0.05, the Levene´s test is non-significant and values from the row
labeled as ´Equal variance assumed´ are used. If p-value is < or = 0.05 the
27
Levene´s test is significant and values from the row labeled as ´Equal variances
not assumed´ are used (Field, 2009). I will shift this somewhere to some table or
into appendix. SPSS provided the exact value of t, however it needed to be
identify if t is greater or less than 0,05. This was done by comparing two-tailed
value (Sig. (2-tailed)) with 0,05. If the two-tailed value was smaller or equal to 0,05
there was significant difference between the means, if two-tailed value was greater
than 0,05 there was no significant difference between the means (Field 2009).
3.5. Limitations
Secondary data collection was engaged with limitations, which influenced the
research outcomes. Not all of the data about CEE region are available for both
countries, some of the data are not collected by official statistical offices and some
are protected or available only in native languages. Also different data
measurements are used, making comparison of countries complicated.
Another limitation comes with the dynamisms of the ICT development. It may
result in some inconsistency of the theory related to the Internet as a marketing
communication and purchasing tool with the up-to-date tendency. It should be
taken into consideration that some sources that were published even two years
ago may not be relevant right now.
28
questionnaires were adjusted to the local language´ characteristics, which could
possibly lead to different perceptions of the same question.
29
4. Findings
Findings obtained from secondary and primary data collections are presented in
this chapter. Preferable marketing communications tools and media, Internet
penetration and online purchasing patterns, income characteristics, outbound
tourism and holiday spending were objects of the secondary data search. The
following data, missing from the secondary research, is to be obtained with the
help of survey: the most appealing types of marketing communications tools and
media in CEE, on-line purchasing patterns, people’s attitude to the Internet as a
source of information, holidays spending, own culture awareness, perception of
CBR and service customization.
Table 1 indicates that the Internet penetration level is much more significant in
Czech Republic than in Ukraine, however, in absolute numbers Ukraine offers
more then double the amount of Internet users. Both countries show an
increasing tendency in purchasing goods and services on-line. Therefore they
represent markets with high potential for e-commerce, including travel oriented
services. The groups using Internet at most are young people, students and
working individuals aged 25-49, with higher education and higher income (see
Appendix II).
Analyzing the economic growth and income indicators, a big difference between
both countries is found. The Gross Domestic Product (GDP) per capita is almost
four times smaller in Ukraine than in Czech Republic. However, Ukraine has
GDP growth rate higher than most of the developed countries (World
Development Indicators 2012). According to the OECD (2013), there is a
significant disproportion in the income distribution in Czech Republic.
Disproportions in income in Ukraine are even more obvious, when considering
30
the income distribution by the highest and lowest 10 or 20% of the population
(Appendix III: Table 2). However, even though average monthly salaries are low,
the extremes in income distributions provide the affluent target groups, when
offering premium class services.
According to Czech Statistical Office, the outbound tourism is much smaller then
inbound, indicating that Czechs still cannot afford to invest into tourism and
holidays as much as residents in other developed countries. However, they like to
travel and are willing to spend more than an average monthly salary for holiday
(Figure 6). This is quite promising attitude for tourism service providers, when
taking into consideration further economic growth and rising purchasing power in
the country.
2000
Average monthly
1500 salary (USD)
0
2007 2008 2009 2010 2011 2012
Figure 6: Money spend on holiday and average monthly salary of Czech residents in USD (Czech
statistical office 2013)
Figure 7 illustrates outbound tourism data for private trips are compared. In the
last ten years, the Ukrainian outbound tourism dramatically increased, overcoming
a slump in 2008 and 2009, this rising trend is about to continue. Ukrainian tourists
should be therefore targeted with new offers and options for holidays and
travelling. Czech Republic is experiencing stagnation in outbound trips and since
2008 the number of outbound tourism is slightly decreasing. Thus Ukraine has
more favorable development for tourism providers.
31
Comparison of outbound trips (expressed in number
of trips)
20 000 000
18 000 000
16 000 000
14 000 000
12 000 000
10 000 000 Ukraine
8 000 000 Czech Republic
6 000 000
4 000 000
2 000 000
0
2006 2007 2008 2009 2010 2011
Figure 7: Private outbound trips in Czech Republic and Ukraine (Czech Statistical Office 2012,
Ukrainian Statistical Office 2011)
Buying behavior in tourism was changed significantly with the rising importance
of Internet. It has become a main source of information and its importance as a
purchasing tool is continuously rising in both countries.
32
According to CzechTourism agency (2012) Internet was the primary source of
information for 70% of tourists, who bought a trip in 2011, while a traditional
catalogue was used only by 23%. The most common communication tools in
tourism are promotion in catalogues, online advertising, TV commercials and
sponsoring. However, low price, cheap last minute offers, personal experience
and recommendations remain the most influential marketing tools among Czech
tourists (CzechTourism 2012). 85% of Ukrainians used Internet to make a
research prior making any decision regarding their travelling (GfK Ukraine 2012).
Taking into consideration the constantly growing usage of ICT and on-line
shopping, it can be assumed that Czechs and Ukrainians are gradually moving
toward self-booked holidays.
Analysis of the finding shows the target population was reached successfully in
both countries. Total number of respondents was 300, 51,7% (155) were Czechs
and 145 (48,3%) Ukrainians (see Appendix IV: Table 1).
Respondents' Age
NUMBER OF RESPONDENTS
153
82
Respondents'
35 Age
22
7 1
33
When it comes to a household size, 46,3% have a family of 2-3 people, supposing
couples and young families, while 29,3% are single. 72,3% of population are
working, 72% posses high education and 81,7% live in a big city (see Appendix
IV: Table 3, 4, 5 & 6).
From the mode values given in Table 3 it can be concluded that most of the
respondents in Czech Republic consider all the marketing communications tools
as appealing and the ones influencing their purchasing decision. Public opinion
with the mode of 0 is found as ´Extremely influential´ tool by 54,2% of
respondents, as ´Very influential´ by 36,1% and as ´Somehow influential´ by
8,4%. This positive tendency can be also observed from the skewness value
accounting for 1,064 (Appendix VI: Table 5). Branding, sales promotion and
advertising follow public opinion by their influence. Combining the values of two
most positive responses, they account for 79,3%, 74,8% and 60% of responses
34
respectively (Appendix VI: Table 11, 9 & 1). Personal selling, sponsorship and
direct marketing are found as the least appealing marketing communications tools.
35
4.7.2. Preferable marketing communications media
Table 5: The most appealing marketing communication tools media in Czech Republic
36
at all influential´. Internet is recognized by 36,6% of Ukrainian respondents as
´Extremely´ or ´Very influential´, but by 28,2% as ´Not very´ or ´Not at all
influential´ (Appendix VII: Table 2). Events are considered as second most
appealing marketing communications media recognized by 30,3% of Ukrainian as
´Extremely´ or ´Very influential´ (Appendix VII: Table 5). Social media are
appealing only to 24,1% of Ukrainian as ´Extremely´ or ´Very influential´ and
49,6% consider them as ´Not very´ or ´Not at all influential´ (Appendix VII:
Table 4). TV, social media, newspapers, printed advertisement, point of purchase
and sponsorship have the mode of 3 and thus being found as ´Not very
influential´ by most of the Ukrainians.
As the values of standard error mean for marketing communications tools and
media are not large (Table 7), they should indicate accurate reflection of the
population (Field 2009).
37
significant difference can be observed in the evaluation of public opinion, which
Czechs consider as very influential and Ukrainians as somewhat influential. P-
value and Sig. (2-tailed) are in this case 0,00 which indicates significant difference
between the means of public opinion variable. Additional tool with significant
difference in means are sponsorship and events, also having Sig. (2-tailed) of 0,00.
Non significant difference in means can be found in the evaluation of personal
selling, which indicates that Czechs and Ukrainians agree on personal selling to be
influential (see Appendix VIII: Table 1).
38
Table 8: Comparison of marketing communication media
Question six was dealing with the perception of the culture in marketing
perspective. Figure 10 gives a summary of responses from Czech Republic.
45,2% (70) of respondents consider their culture as specific, with the need of
consideration of cultural differences while developing a marketing strategy for this
market. While 38,1% (59) of respondents believe that their culture is specific, but
does not influence customer behavior, so no adaptation is needed from the
marketing side. The extreme answers that stand for total standardization and total
adaptation received almost equal response rate accounting for 9,7% (15) and 7,1%
(11) of respondents. Overall, the distribution of positive and negative answers is
more or less equal, making a ratio of 47,8% versus 52,3% respectively.
39
Culture in the Marketing Perspective
Internationalized,
70
NUMBER OF RESPONSES
standardization.
59
Specific, doesn´t
influence customer
behavior.
15 Specific, cultural
11
differences need to be
considered.
Country: Czech Republic
The answers obtained in Ukraine are quite different as shown in Figure 11. The
majority of respondents consider their culture as not specific and not influencing
a customer behavior. Thus 15,9% (23) consider that Ukrainian culture is very
internationalized and companies can use a standardization approach and 55,9% of
population (81) consider their culture as specific, but not influencing customer
behavior. Still, 24,8% (36) believe that cultural differences are important enough
to be integrated into the marketing communications strategy. Only 3,4% (5) of
respondents believe that their culture is highly specific and marketing strategy
requires adaptation.
Internationalized,
NUMBER OF RESPONSES
81 standardization.
Specific, doesn´t
36 influence customer
23 behavior.
5 Specific, cultural
differences need to be
considered.
Country: Ukraine
40
4.9. Patterns of using Internet for online purchasing
Question four and five were designed to illustrate the attitudes of Czech and
Ukrainian respondents to online purchasing. Table 9 shows the used coding for
level of frequency and level of agreement used in question four and five.
75
61
Unlikely, used to
traditional buying
procedure.
Don´t know how to do
15
that.
2 2
89
Unlikely, used to
traditional buying
procedure.
28 Don´t know how to do
that.
6 11 11
Sometimes.
Country: Ukraine
T-test shows that differences in means (Appendix IX: Table 6) when comparing
perceptions of online purchasing are not significant, having more or less similar
values for each variable. Most of the differences in means possess negative values,
pointing out again to a more positive responses from Czechs with values of mean
or mode close to 0. The variable safety guarantees is the only variable having
positive value, which indicates more positive approach of Ukrainian respondents.
As it can be observed from Table 11, the smallest difference in means is in favor
of friends/family recommendations. All of the factors have a Sig. (2-tailed) values
greater than 0,05 indicating that differences in means are not significant and
responses from both countries are very similar.
43
Table 11: Comparison of the perceptions to the on-line purchasing
Figure 13 shows that the majority of Czech respondents 49,7% (77) choose the
Internet as the primary source of information when looking for a holidays, while
in Ukraine the number accounts for 34,5% (50) of respondents. Majority of
Ukrainians 42,8% (62) rely more on a public opinion choosing the most popular
destinations. 16,6% (24) of respondents still use the travel agency services, while
only 6,5% (10) of Czech respondents share the same point of view.
77
62
48 50
24 Czech Republic
10 12 Ukraine
8 6
3
44
4.11. Spending on holidays
From the Figure 14 can be seen that in both countries respondents consider the
most reasonable amount to be spent on holidays per person ranges from 500 to
2000 Euro. In Czech Republic 52,3% (81) of respondents are willing to spend
from 500 to 999 Euro and 27,7% (43) of respondents from 1000 to 1999 Euro. In
Ukraine the numbers are almost the same accounting for 40,7% (59) and 41,4%
(60) of respondents. 17,4% of Czechs are willing to spend less then 500 Euro,
while only 2,8% more then 2000 Euro. In Ukraine the tendency is different,
11,8% of respondents are willing to spend more then 2000 Euro and 6,2% less
than 500 Euro.
81
59 60
43 Czech Republic
27
Ukraine
9 13
4 4
Question three provides important insights about the customers’ evaluation of the
different factors accompanying their purchase. Findings focus also on business-
consumer relationship which is being considered as one of the factor gaining
importance throughout the contemporary marketing approaches. Likert-type scale
using the level of importance was chosen to measure this question. The coding
uses 0 for the highest level of importance (extremely important) and 4 for the
lowest level of importance (not at all important) (see Appendix Va). Answers
labeled as ’Extremely Important’ or ’Very Important’ are considered as positive
45
answers indicating importance and are therefore in some cases combined together
to simplify findings.
In Ukraine the most of the responses received agreed on the fact that quality and
price of a product/service are the most important factors when making a
purchase. These answers got 98% (142) and 73,1% (106) of positive responses
respectively (Appendix X: Table 2 & 4). They are followed in importance rank by
service that comes with a purchase accounting for 66,2% (96) of responses
(Appendix X: Table 3) and CBR factor, accounting for 55,2% (80) of responses
(Figure 15). Sales promotion together with personalization of product/service
received the least of the positive responses among Ukrainians. However, their
number is still quite high. Sales promotion was chosen as an important factor by
46,2% (67) of respondents and personalization of a product/service by 51,1%
(74) (Appendix X: Table 6 & 7).
46
Importance of Business-Consumer Relationships
55
48
NUMBER OF RESPONDENTS
44
38
35
32
23 Czech Republic
18
Ukraine
4 3
Comparing the means in both countries (Table 12), it is obvious that there are
only small differences, indicating similar attitudes to the purchased product
characteristics. Quality and price are valued as the most important indicators by
both groups of respondents. Differences in means have mostly negative values,
indicating a more negative approach of Ukrainians, when evaluating the
importance of the different characteristics of purchased goods or services.
However when it comes to quality and BCR, positive values can be observed,
indicating that Czechs are occupying more negative approach than Ukrainians.
The most significant differences in means can be seen in variables added value,
CBR and service. These variables have a Sig. (2-tailed) of 0,000; 0,005 and 0.02
respectively, and thus indicating significant differences in means. However added
value and BCR differ greatly, while other variables do not represent significant
differences in means (Appendix XI).
47
Table 12: Comparison of importance of different goods’ and services’ characteristics
48
5. Analysis
Based on the literature examined (Czinkota & Ronkainen, 2012; Keller & Fay
2012; Douglas & Craig, 2011; Raju 2009; Halloway & Robinson, 1998; Thrassou
& Vrontis, 2009; Finne & Grönroos, 2009; Kotler et al., 2008; Orth et al., 2007)
four hypotheses were developed. All of them are linked to the research question
and will be confirmed or rejected by primary data analysis. Chi-square is usually
used for testing hypotheses and requires two interval/scale variables. Due to the
nature of the variables examined it was not possible to use this test. While H1 and
H3 require complex descriptive analysis of more than 1 question and many
variables, H2 and H4 consist of one nominal (country) and one interval
(perceptions) variables.
H1:“When targeting specific segments with same characteristics (especially young professionals,
who are wealthier, appreciate brands, luxury and travel) marketing communications adaptation
is not required.”
Questions one, two and six were created to address this issue. Respondents were
asked directly how they perceive their own culture in marketing perspective. As
indicated in the findings (Tables: 8, 9), both countries percept their own culture
differently. While Ukrainians perceive it as specific, but not requiring adaptation
of the marketing communications strategy, Czech respondents think that
marketing communications strategy should be adapted to the local environment
and adjusted according to the cultural specifications. While Czechs feel influenced
by most of the marketing communications tools, Ukrainians are rating the
influence of the tools more negatively. The most significant differences in means
are found in the evaluation of public opinion and sponsorship and events,
however significant differences are found in almost all of the marketing
communication tools (having Sig. (2-tailed) smaller than 0,05)). Personal selling is
the one, which shows non-significant difference in means and thus indicates the
same approach by both countries. Same trend can be observed when it comes to
49
media. Negative values in means’ differences show more positive approach of
Czech respondents. Events are the only marketing communications mean with a
non-significant difference in means, which represents equal evaluation by both
countries. All other media have Sig (2-tailed) smaller than 0,05 and thus
representing significant differences in means. The most significant differences in
means with a Sig (2-tailed) value of 0,000 can be found in the evaluation of
Internet, social media, newspapers, printed advertisement and sponsorship.
Public opinion having exclusively the mode of 0 meaning that majority of Czech
respondents value word-of-mouth advertising as ´Extremely influential´ and
90,3% consider public opinion as ´Extremely´ or ´Very influential´. However in
Ukraine, branding is the most influential marketing communications tool. Only
39,3% of Ukrainian respondents consider public opinion ´Extremely´ or ´Very
50
influential´. However these low percentages are caused by more negative
approach. However, public opinion is still ranked as the 3rd most influential
marketing communications tool after branding and sales promotion. Social media
are being considered as ´Extremely´ or ´Very influential´ by 46,5% of Czech
respondents being the second most influential marketing communications tool.
Social media appeal as ´Extremely´ or ´Very influential´ only to 24,1% of
Ukrainian respondents and ranked as the 5th after Internet, events, TV and point
of purchase. Recommendations from family/friends were evaluated as a factor
which could possibly change skeptical attitude to online purchasing. 56,1% of
Czech and 42,8% of Ukrainian respondents agree that family/friends
recommendations would change their perception. However price and safety
guarantees would be more persuasive.
This hypothesis can be addressed by questions one, two and five. First question is
concerned with the influence of different marketing communications tools while
making a purchase decision. As already mentioned, Czech respondents have in
general more positive attitude and consider marketing communications tools as
more influential than Ukrainians do. The biggest differences are observed in the
evaluation of public opinion, sponsorship and events, sales promotion, branding
and direct marketing; the smallest - in personal selling.
Second question reveals the most significant differences in means in the following
medias: newspapers, printed advertisement and social media, which were
evaluated by Czechs as somewhat influential while Ukrainians consider them not
51
influential. The Internet and events were found as the most influential medias of
marketing communications in Ukraine, though their mean values of 1,84 and 1,95
tend more to the answer of ‘Somewhat Influential’. Czech respondents find the
Internet and social medias as the most influential with the mean values of 1,45
and 1,72 respectively, falling in-between ‘Very Influential’ and ‘Somewhat
Influential’.
To sum up, the first and second questions clearly point out that the differences
between perception of MCM in Czech Republic and Ukraine do exist and they are
significant. Even though the fifth question indicates only some minor variances, it
should be taken into consideration that this question concerns only with one
media of communication, but not the whole mix. Overall conclusion is that H3
can be accepted.
Taking into consideration that the question was indirect and the choice of the
factors that got the highest score was quite obvious, still it could be concluded
that BCR are important for both countries. However, the theory suggests
(Thrassou & Vrontis, 2009, Finne & Grönroos, 2009, Kotler et al., 2008,
Halloway & Robinson, 1998, Tsiotsu & Goldsmith, 2012, Williams, 2006) that
customer-business relationships are valued as very important aspects of marketing
communications. Meaning that expected mean value to be received was 1 (’Very
Important’). Based on this proposition, mean and mode values confirm that BCR
is a very important aspect for Ukrainian respondents and somewhat important for
Czech respondents. Therefore H4 can be confirmed for Ukraine and needs to be
rejected to Czech Republic.
53
6. Discussion
A following model “The business-consumer relationship model: The marketing
communications application” served as a framework and provided useful
information for the research in general. Since cross-cultural differences were
neglected by the original model, it is necessary to extend the model by cross-
cultural issues. Cross-cultural differences are the object of this study and based on
theory (Aaker et al. 1997, Usunier & Lee 2009, Tian & Borges 2011) they are
considered as important factors, which should be integrated into the MCM.
Analysis of primary data confirmed this proposition. Cross-cultural issues should
therefore be integrated into the MCM and the extended version of the business-
consumer model is suggested for international marketing communications
strategy. Three basic international marketing strategies are suggested:
standardization, adaptation and semi-global marketing strategy (Czinkota &
Ronkainen 2012, Douglas & Craig 2011).
Cross-cultural issues remain one of the central questions of the current paper.
Theory suggests that cultural differences found across borders influence MCM
(Aaker et al. 1997, Usunier & Lee 2009, Tian & Borges 2011). Sometimes
significant cultural differences exist even within the same geographic region (Orth
et al. 2007). The primary research conducted in Ukraine and Czech Republic has
proved that cross-cultural differences exist even in the same geographic region
and influence customers’ perceptions of the MCM (H2). Another evidence
54
supporting this point of view can be found in H4, examining a perception of
business-consumer relationships as an aspect of marketing communications. The
theory suggests that BCR are valued as very important (Thrassou & Vrontis,
2009), and even if it is not so, the tendency should be identical for both countries,
however findings proved the opposite. CBR are very important in Ukraine, while
in Czech Republic they are not valued as important (Figure 15) by the majority of
respondents. This means that even within one geographic region (CEE)
customers’ perception differs.
Theory suggests (Elliot & Boshoff 2009, Ratten & Tsiotsu 2010) that Internet has
become a very important marketing communications tool, and at the same time
secondary data collected indicates a high Internet penetration rate in people’s
everyday life. The Internet penetration rate (Table 1) in Czech Republic accounts
for 73%, which is quite high, while in Ukraine only for 34%. However, the
primary research shows that only 12,3% of Czech respondents and 19,3% of
Ukrainians respondents do not use Internet for online purchasing, which shows
much higher penetration than indicated by secondary data. Based on secondary
data available for Ukraine (Appendix IV), the main drivers for online shopping
were public opinion, lower price and availability of certain products only online.
Factors preventing from online purchasing are the convenience of in-store
shopping and professional advice. Primary research identified that lower price is
the main factor, changing the perception of online purchasing in both countries.
While public opinion evaluation differs. However Ukrainians still feel skeptical
about the Internet and their main concern is safety issue. When it comes to the
Internet as a source of tourism related information, Czech respondents use it to a
higher extent than Ukrainian (Figure 11 & 12). However, the exclusive usage of
Internet as a marketing communications mean in these markets could be tricky.
Although Internet is gaining overall popularity, some consumers still feel skeptical
about online purchasing and therefore the mix of marketing communications
tools and media is recommended.
55
14) when it comes to holidays, although both target groups consist of people with
higher income than average. It is hard to answer which of the sources reflects the
real situation. If people indeed spend a lot on holidays, then maybe they do not
register their incomes officially. Or maybe their income level is not high, but
when answering the questionnaire, respondents want to seem to have higher
purchasing power, then they do in fact. Another possible explanation is
differences in culture and life style. People in Ukraine are used to go for holidays
only once per year, so they used to collect money and then like to spend a lot and
enjoy it fully once they are on holidays. However the differences can be also partly
explained by the fact that specific target group was researched, and respondents
with higher income were selected. Further due to the significant disproportion of
income (Appendix III: Table 2), average monthly salary might not be a reliable
income indicator for Ukrainian case.
Most of the differences in means are caused by the more negative responses of
Ukrainian respondents, though similarities in the distributions can be observed as
well. Both countries were chosen due to the expected similarities in buying
behavior and perception about marketing communications. Both countries
experienced long time of communism, which is still considered as influential
factor for all post communist countries when it comes to the purchasing habits.
However the geographic location and economic conditions in both countries
differ significantly. Czech Republic with its convenient central geographic
location, close trade relations with Western Europe, being a part of European
Union it can be assumed that Czech individuals have more positive attitude
influenced by Western way of thinking. Ukrainians, on the other hand, due to the
56
isolation, close connection to Russia and limited contact with the developed
countries, posses more negative approach when evaluating different variables.
Other issues, which could possibly explain this negative tendency, are translation
and language used. Translation was done by native speakers and questionnaires
were tested on a small group of people, however in some cases English
expressions needed to be adjusted to the local languages and therefore they could
have lost their exact meaning. Further, for some questions, professional
terminology was used and some respondents could have problems with
understanding and therefore choosing neutral or more negative answers over the
positive ones.
57
7. Conclusion
The paper provides some useful insights about importance of cross-cultural issues
while developing a MCM. To illustrate the importance of cross-cultural
differences in the marketing communications, the original theoretical model (A
business-consumer model: The marketing communications application) was
extended by cross-cultural issue. The extended version of the model provides thus
wider use, especially in international marketing.
The main purpose of the study was to identify if cross-cultural differences within
the same geographic region are big enough to affect customers’ perception of
MCM used. Findings obtained by primary and secondary research and consequent
analysis showed that cross-cultural differences even within one region exist and
affect the customers´ perception of MCM. The analysis and acceptance of H3
support this statement. Further in this context H1 was examined to find out if
cross-cultural differences matter even when targeting homogenous segments
across countries. Rejection of H1 pointed out, that targeting specific segments
with unified marketing communication strategy internationally is not appropriate
even if the target groups are homogenous.
Taking into consideration all the results obtained by conducting this study, the
research question “Does cross-cultural differences within Central and Eastern Europe affect
the marketing communications mix in a specific industry?” can be affirmed. Overall
evaluation of the research question proved that cross cultural differences matter
and affect the MCM to high extent. Even apparently similar countries may
present significant differences when it comes to the perception about different
aspects of MCM. It was assumed that countries within one region are possessing
similar characteristics, therefore research findings from one country are applicable
for the whole region. Two countries Czech Republic and Ukraine were chosen as
58
representative countries. However analysis showed that there are significant
differences even within one region, therefore findings should not be generalized
and application to Central or Eastern Europe is not appropriate. The same applies
to the hypothesis testing, even though the hypotheses formulated in this paper
were based on the general theory, they were tested only in these two countries and
therefore the results obtained are not applicable to other countries.
One of the main arguments for the need of research in this area was the lucrative
markets in the researched countries. The research focused on premium service
providers within the tourism industry due to the potential in the researched
markets. The research based on variables as spending on holidays, income levels,
distribution of income, preferable types of holidays etc. showed that indeed
specific target groups in researched countries provide sufficient business
opportunities. If considering how cross-cultural issues influence the composition
of MCM for premium tourism service providers in Czech Republic and Ukraine,
it can be concluded that the findings are sufficient to develop a recommendations
and framework for companies willing to enter Czech and Ukrainian markets. Both
countries are distinctive by their seeking for low prices, special offers and
discounts, which should be taking into consideration when delivering marketing
communications message and developing marketing campaign. Word-of-mouth
advertising is very important in both markets. Internet and social media should be
used as the main means of marketing communications, though Events, TV, Sales
Promotion and Magazines could be used as supporting media to create brand
awareness. Considering the tourism industry, competition is still not very intense
in the niche of on-line tourism services in these countries. Local travel agencies
remain important providers of tourism services and thus the main competitors,
though the increasing popularity of e-shopping and self-booking holidays,
especially among young people present a positive trend in the researched area.
It is also important to mention that the results obtained are specific for a
particular case and application to other countries could provide misleading
information. However, due to the general nature of the research question findings
about the adaption of MCM and marketing communications perceptions in these
countries can be applied to other industries than tourism.
60
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65
9. APPENDICES
9.1. Appendix I: Theoretical framework
66
9.2. Appendix II: Internet usage
67
Table 3: Correlation between income level and the Internet usage in
Ukraine for 2012 (GfK Ukraine 2012)
Use Internet (%) Income in UAH (1 euro = 10,8 UAH) Do not use Internet (%)
3, 9 10 000 + 1,5
4,4 7 000 – 9 999 3,7
23,1 4 000 – 6 999 17,1
42,1 2 000 – 3 999 38,6
12,1 1 500 – 1 999 14,6
12,1 Up to 1 500 21,3
2,5 Did not answer 3,3
Table: 5 Share of buyers who use the Internet search before making a
purchase decision in Ukraine (GfK Ukraine 2012)
Purchase category % of people
Products and cosmetics 64
Finances and properties 69
Entertainment 73
Household equipment and furniture 78
Automobile items 80
Travelling 85
Technologies 89
68
9.3. Appendix III: Economic growth
69
9.4. Appendix IV: Marketing communications
70
Figure 3: Online sales promotion in Ukraine (TNSinfratest 2011)
71
9.6. Appendix Vb: Questionnaire (English language)
72
73
74
9.7. Appendix Vc: Questionnaire (Czech language)
75
76
77
78
9.8. Appendix Vd: Questionnaire (Ukrainian language)
79
80
81
9.9. Appendix VI: Population description
82
Table 5: Respondents' education
83
Table 2: Influence of advertising
84
Table 5: Influence of public opinion
85
Table 8: Influence of sponsorship and events
86
Table 11: Influence of branding
87
Table 2: Influence of Internet
88
Table 5: Influence of events
90
Equal
-
variances 5,492 ,020 298 ,000 -,396 ,111 -,615 -,178
3,566
assumed
Influence of
Equal
Internet
variances -
273,872 ,000 -,396 ,112 -,617 -,176
not 3,538
assumed
Equal
-
variances ,000 ,992 298 ,000 -,636 ,136 -,903 -,368
4,676
assumed
Influence of
Equal
Social Media
variances -
297,076 ,000 -,636 ,136 -,903 -,368
not 4,677
assumed
Equal
-
variances 12,749 ,000 298 ,045 -,240 ,119 -,474 -,006
2,016
assumed
Influence of
Equal
Radio
variances -
268,368 ,047 -,240 ,120 -,476 -,003
not 1,998
assumed
Equal
-
variances 16,134 ,000 298 ,003 -,337 ,111 -,555 -,119
3,044
assumed
Influence of
Equal
Magazines
variances -
278,554 ,003 -,337 ,111 -,556 -,118
not 3,024
assumed
Equal
-
variances 1,216 ,271 298 ,000 -,815 ,105 -1,022 -,609
7,781
assumed
Influence of
Equal
Newspaper
variances -
290,172 ,000 -,815 ,105 -1,022 -,608
not 7,756
assumed
Equal
-
variances 1,956 ,163 298 ,000 -,638 ,106 -,847 -,430
6,020
Influence of assumed
Printed Equal
Advertisments variances -
293,425 ,000 -,638 ,106 -,848 -,429
not 6,008
assumed
Equal
-
variances 2,590 ,109 298 ,016 -,271 ,112 -,492 -,050
2,415
Influence of assumed
Point of Equal
Purchase variances -
295,833 ,016 -,271 ,112 -,492 -,050
not 2,414
assumed
Equal
Influence of
variances ,033 ,855 ,028 298 ,978 ,003 ,112 -,218 ,224
Events
assumed
91
Equal
variances
,028 293,150 ,978 ,003 ,112 -,218 ,225
not
assumed
Equal
-
variances ,059 ,808 298 ,000 -,529 ,111 -,748 -,311
4,765
assumed
Influence of
Equal
Sponsorship
variances -
288,869 ,000 -,529 ,112 -,749 -,310
not 4,747
assumed
92
Range 5 5 5 5 5
Sum 212 310 321 370 255
94
Table 5: Perception about purchasing online would be changed by reduced
price in comparison with in-store
95
Perception Equal
about variances ,769 ,381 -,863 298 ,389 -,170 ,197 -,558 ,218
Purchasing assumed
Online Would
Be Changed by Equal
Friends/Family variances not -,865 297,997 ,388 -,170 ,197 -,557 ,217
Recommendati assumed
ons
Perception Equal
-
about variances ,973 ,325 298 ,285 -,207 ,193 -,588 ,173
1,072
Purchasing assumed
Online Would
Equal
Be Changed by -
variances not 295,205 ,285 -,207 ,194 -,588 ,174
User Friendly 1,071
assumed
Website
Perception Equal
-
about variances ,075 ,784 298 ,241 -,223 ,190 -,596 ,150
1,175
Purchasing assumed
Online Would
Be Changed by Equal
-
Wide variances not 297,683 ,240 -,223 ,189 -,595 ,150
1,176
Language assumed
Options
Perception Equal
-
about variances ,101 ,750 298 ,215 -,262 ,211 -,676 ,152
1,244
Purchasing assumed
Online Would
Be Changed by Equal
-
Reduced Price variances not 296,788 ,214 -,262 ,210 -,676 ,152
1,244
in Comparison assumed
with In-store
96
h Missi
0 0 0 0 0 0 0
Repu ng
blic Mean ,29 1,06 ,88 1,18 1,34 1,74 1,52
Mode 0 1 1 1 1 2 1
Std.
Deviati ,509 ,832 ,759 ,879 ,914 1,051 1,015
on
Varianc
,259 ,691 ,576 ,772 ,835 1,105 1,030
e
Skewn
1,516 ,577 ,390 ,336 ,265 -,097 ,353
ess
Std.
Error of
,195 ,195 ,195 ,195 ,195 ,195 ,195
Skewn
ess
Range 2 4 3 3 4 4 4
Sum 45 164 136 183 207 269 236
Valid 145 145 145 145 145 145 145
N Missi
0 0 0 0 0 0 0
ng
97
Sum 38 186 138 254 216 202 234
a. Multiple modes exist. The smallest value is shown
98
Table 4: Importance of price
99
Table 6: Importance of personalization
100
9.15. Appendix XI: Comparison of purchasing patterns
101
Importance Equal
of Sales variances ,041 ,839 -,780 298 ,436 -,091 ,117 -,321 ,139
Promotion assumed
of Equal
Product/Se variances not -,780 296,925 ,436 -,091 ,117 -,321 ,139
rvice assumed
102