Cultural Impact on the Framework of Customer Value, Customer Satisfaction and Customer Loyalty

by

ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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ABSTRACT

The research aims at identifying the impact of culture on the framework of customer satisfaction, customer loyalty, and customer value. Based on the model presented by Hofstede's Cultural Dimensions which include Individualism and Collectivism, Femininity versus Masculinity, Uncertainty Avoidance, Power Distance and Long-term versus Short-term Orientation. The research identified culture as a set of value, beliefs, attitude, perceptions and expectations. Literature review contains researches studying the concepts of culture, customer value, customer satisfaction and customer loyalty. It further states that increased quality of product or service increases customer value. Literature also focuses on analysing the impact of culture on consumer behaviour. According to the illustrations presented by Hofstede (2001), the four dimensions of culture have been broadly used in defining expectations, evaluation and perception of service quality by customers in various cultures. By conducting quantitative research, this study includes questionnaire survey and 150 European customers and 150 Asian customers were selected as respondents to fill the survey. Through survey analysis, it was concluded that culture affects the way consumers in United Kingdom (from different cultural backgrounds) perceives products and services. As the European culture is more of an Individualistic culture, customers focus on functional and transactional benefits of products and services. They tend to focus on their individual benefits while Asian customers were observed to prefer groups benefit over individual.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Research Background1

Rationale of the Study2

Research Aim and Objectives3

Research Questions3

Conceptual Model and Framework4

Theoretical Framework4

Link of Theoretical Framework with Customer Value, Customer Satisfaction, and Customer Loyalty5

Importance of the Study6

Outline of the Dissertation7

CHAPTER 2: LITERATURE REVIEW8

Introduction8

Definitions of Basic Concepts8

Defining Culture8

Customer Value9

Service Quality and Customer Value10

Customer Satisfaction11

Customer Loyalty12

Culture and Customer Loyalty13

Culture and Customer Value15

Culture and Customer Satisfaction16

Framework of Customer Value, Customer Satisfaction and Customer Loyalty18

Cultural Impact on Customer Loyalty, Customer Satisfaction and Customer Value20

Critical Analysis of the Literature23

Link of Literature Review with Research Aim and Objectives24

Conclusion25

CHAPTER 3: METHODOLOGY26

Research Philosophy26

Research Approach26

Data Collection Method27

Secondary Method27

Primary Method27

Questionnaire28

Questionnaire Design28

Sampling Technique30

Rationale for conducting the Study31

Data Analysis Methods31

Ethical Issues32

Validity33

CHAPTER 4: DISCUSSION AND ANALYSIS34

Survey Results34

Discussion of the Survey45

Cultural Impact on the Framework of Customer Value, Customer Loyalty and Customer Satisfaction45

Comparison of between the European Consumers and Asian Consumers50

Customer Loyalty and Customer Satisfaction53

Link of Theoretical Framework with Research Findings55

CHAPTER 5: CONCLUSION56

Limitations58

REFERENCES60

APPENDICES70

CHAPTER 1: INTRODUCTION

Research Background

Culture is usually explained in terms of marketing as a system of values which acts as a determinant of customer behaviour, leading towards customer satisfaction, customer retention, and customer loyalty. The member of certain community, specifically belonging to a certain culture, tend to transform their experiences about the ...