Buyer Seller Relationships Impact of Cross-Culture

Question: In the current international economic environment, entrepreneurs and managers are frequently required to undertake business planning, project and consultancy work in addition to their core responsibilities. Frequently, these projects are focused upon investigating new business opportunities or potential strategic changes in order to create, retain and extend competitive position. Furthermore, they may also be required to undertake consulting assignments. The assessment task is to design and deliver a 4500 5000 words research report, through the application of appropriate research methods to a consultancy project, provided by the module team. Answer: Chapter 1: Introduction Introduction: Cross-cultural buyer-seller relationship for a multinational company named Clarks; the UK has been described to understand the issues in this organisation. Culture has a huge impact in developing the buying behaviour of an individual. However, the international business set up allows them to perform their business outside of the domestic environment (Viio and Grnroos, 2016, p.37). In another country, there are many domestic brand and companies that perform their business following the local culture. Therefore, it is a primary problem for a multinational company to develop their business in a different cultural environment and maintain cross-cultural buyer-seller relationship in a good manner. The research is performed to identify the impact of such relationship that develops the challenges in the cross-cultural environment. In this chapter, background of Clarks has been analysed and as per the research aim the objectives has been established to meet up the goal of the research. Finally, significance and the structure of the study are made to develop a framework of the research work for successful accomplishment. In this research the main issue is the habit and the choice of the customers of other country which is different from the habit and choice of the customer of the home country of Clarks. It hampers the international business of Clarks because of their business environment that is not favourable enough for the foreign customers and affects the buyer seller relationship due to cultural differentiation that reduces the business of the Clarks. Cultural belief has a huge impact on the purchasing habit of the customers that influence them to grab the product or refuse it due to uncomfortable service. Buyer seller relationship develops based on the proper communication and behaviour that are performed during the promotion as well as transactional process. Therefore, cultural mismatch leads them to maintain distance that has a negative impact on the international business activity of Clarks. This issue can be resolved by the adaptation of the local cultural factors such as language and behavi oural style that can make the customers feel familiar with the company to purchase their desirable product. Moreover, local employees can be recruited to deal with the customers by the own cultural values that ensure the bonding between buyer seller relationship that was affected by the cross cultural factors. Research questions: What are the issues of cross-cultural buyer seller relationship on Clarks? What are the possible layouts to balance cross-cultural buyer seller relationship of Clarks? What is perceived by the cross-cultural buyers regarding the business activity of Clarks? What is the importance of the cross-cultural buyer-seller relationship for the business of Clarks? What is the appropriate recommendation for enhancing the relationship between buyers and sellers? Research objectives: To identify the impact of cross-cultural buying behaviour in Clarks To understand the possible layouts to balance cross-cultural business of Clarks To recognise the perception of the cross-cultural buyers regarding the product of Clarks To understand the importance of the cross-cultural buyer-seller relationship for the business of Clarks To recommend suitable ways for improving the relationship between buyers and sellers Research rationale: A multinational brand faces the cultural barrier to developing a relationship with the customers as well as difficulties to sell their products in the international market due to the hard competition in that particular host country. In this study, cross-cultural buying behaviour is the main issue that hampers an international business. People belong from the different culture are habituated with their regular brands that suit their culture. Therefore, it is a problem for an international brand to convince the buyers with their products and develop the relationship with them (Hewet and Krasnikov, 2016, p.57). At present most of the companies of UK are looking for the international business set up. Therefore, it is required to understand the possible impact of cross-cultural buyer-seller relationship to regulate the international business set up to viable profitability The research shed light on the possible ways to resolve the cross-cultural buyer-seller issue for the multinational companies. Significance of the research: The research is important to identify the possible problems that hamper the cross-cultural buying behaviour of the international customers (Narayandas and Rangan, 2010, p.63). This identification will allow developing the suitable strategy to resolve the current problems to improve the relationship between cross-cultural buyer and sellers of Clarks. This kind of strategy will provide a huge opportunity to Clark to establish their international business setting as well as deal with their customer to earn success and profit. Structure of the Dissertation: Figure: Structure of the Dissertation (Source: Made by author) Summary: In this chapter, the entire research plan has been done in the structure of the dissertation with the proper aim as well as the objective of the research. Research questions are made to recognise proper direction of the study and identify the required issues to analyse it for further study. The significance of the research establishes the actual requirement of this research. Chapter 2: Literature Review Introduction: Discussion of buyer-seller relationship from different aspects has been analysed in this chapter. The impact of cross-cultural behaviour and affecting factors of buyer-seller relationship has been evaluated based on previous research works. Theory and model of buyer-seller relationship have been explained. Finally, the gap between the current and previous research work has been identified. A conceptual framework is made to understand the actual strategy of the research. Relationship between buyer and seller: In today's business market the marketers put a great effort to improve their efficiency and effectiveness to satisfy their consumers in all aspects. The Strong understanding between the buyer and the seller can turn a single transaction into long-term beneficial relationships (Healy, 2011, p. 560). The sellers must put their efforts in managing the dynamics of buyer-seller evolution. The buyer-seller relationship includes the following five different stages: pre-relationship stage, exploratory stage, development stage, stable stage and final stage. Ongoing through this stages the buyer may face some uncertainty situations like market uncertainty, transactional uncertainty, need uncertainty (Jordan et al. 2013, p.15). The seller should pay strict attention in resolving this uncertainty of the buyer in order to strengthen the buyer-seller relationship. An organisation can improve their buyer-seller relationship by attaining their customer loyalty. With the increase in attaining the cus tomer loyalty, the seller can achieve more profit. If the customers are loyal for any marketing organisation they will show their interest in purchasing the brand new products of the marketing company (Mar Miras Rodrguez et al. 2015, p.237). Hence a new scope of making a profit by introducing new products in the market arises. Impact of cross-cultural factors on buyer and seller relationship: In order to make a strong buyer-seller relationship, the study, and understanding of the cross-cultural influence in the business market are very necessary. The unconscious reference of the cultural values of an individual may create disturbance in acceptance and understand the cultural values of others. The cultural values and beliefs often create disturbance in interpersonal and mass communication, negotiation. There lays an interdependence relationship between the developing nation of the third world and the well-developed industrial nations. For the industrial and economical survival access to natural resources, markets and capital of each other is very necessary (Segarra-Moliner et al. 2013, p.215). In such cases, influences of the cross-cultural influences are very necessary. Moreover, the industrial development of a nation depends on both exports and imports. Influence on cross-cultural references is found in this field also. Factors affecting the relation between buyer and seller: The relationship between buyer and seller is a very important to develop the viability of the business. There are many factors that have the huge impact on the relationship between buyer and seller. According to Shia and Luo (2012, p.2432), trust is a very major requirement that enhances the base of the relationship. Trust is achieved after a long term service period therefore, the sellers need to hold their patience and try to service with full concentration and effort. Product and the service of a company play a vital role to achieve the trust that is able to fulfill the expectation of the customers (Sudbury Riley et al. 2012, p.312). On the contrary, Jones and Leonard (2014, p.73) mentioned in this context that commitment is required to maintain the relationship. Commitment to providing a quality product and service increase the expectation of the customers, however, if the company fails to keep their commitment it ruins the relationship with the customers (Mueller Loose and Remaud, 2013, p.142). The similarity in culture and adoption power a company can serve the buyers as per their expectation, however, cultural differentiation and low adoption power downturn their motivation to buy the products from the particular company. In this context, Video and Gronroos (2016, p.38) opined that along with the lack of cultural adaptation power, a linguistic problem often hampers the relationship between the buyer and seller. Lack of knowledge in local language affects the fluent interaction between the buyers and seller. They unable to share their thought related to their perception hence it destroy the relationship and increase distance. It is unable to satisfy the buyers that influence them to avoid the company and shift to another one for their personal requirement. Finally, Hewett and Krasnikov, (2016, p.60) stated that lack of cooperation among the buyer-seller regarding product and service ruined the relationship. Feedbacks of customers are very important whereas the company attentively follow those for improvement. Negligence of the remarks is a reason of poor relationship between the buyer and sellers (Walsh and Bartikowski, 2013, p.989). Theories and models of buyer-seller relationship Buyer-seller dyed theory: Different models are theories are relevant that can be discussed in this study. Buyer-seller dyed theory is a very effective one that reflects the fruitfulness of the interaction between buyer and seller regarding their perception as well as expectation. According to this theory, the seller exhibits their products to the buyers and influences them to buy it. The seller can perform their personal business or deal with the product or service of any other company (Chowdhury, 2012, p.52). Push and pull strategy are consciously used by them to develop the interaction with the buyers. It is a strategy to influence buyer with positive communication that can attract them to the product or service of a company. Sales persons play a vital role in this sector to perform the interaction session to understand the requirement of the customers and make their existing product relevant with their expectation. Connection development between the customers' expected service or product and the company's product or service grow the relationship status (Kabadayi et al. 2011, p.31). This process accomplished in three steps. In the first, step the seller identifies the need of the buyer. Next information sharing takes place regarding buyer and seller and finally the transaction takes place between customer and seller (Kim and Johnson, 2013, p.79). Andersons Model: In this model, cross-cultural buyer-seller relationship has been designed by Anderson. According to this model, there are three effective international dimensions that are the key factors to building up a cross-cultural buyer-seller relationship. These are 1) initiation of the business relationship in an international setting, 2) maintenance of relationship according to the international culture and 3) maintain the viability of the interaction between the business network and the external and internal relationship of stakeholders (Voldnes et al. 2012, p.1081). This model reflects multiple dimensions that help to continue an effective relationship between customers and sellers. An integrated model of buyer-seller relationships: On the other, hand an integrated model of buyer-seller relationships depicts the five effective stages such as partner selection in which the group of buyers is selected by the sellers depending on their type of product or service (Voldnes, 2015, p.56). In the next stage, the buyer expresses the facilities of the product or the service through the different medium of advertisement. This kind of advertisement helps the customers to know about the product or service offered by the particular company (Benton and Maloni, 2015, p.1). Further, the customer's contact with the buyers to get more information regarding the advertised product and this communication develop the relationship between them. It influences the buyer to decide their requirement knowing about to the quality of the service or product (Gauvain et al. 2013, p.1148). Finally, the good quality increase the customer loyalty towards the company and relationship is maintained in a successful manner (Hsiao et al. 2012, p.760). Here fulfillment of commitment of the company plays an important role to retain the customer. These four steps are very essential to develop a good relationship between customer and seller. Gap in literature: In the previous research works, customer and seller relationship has been elaborately described and analyzed that entirely reflects the affecting factors in the business. However, the current research is based on the cross-cultural relationship between buyer and seller, where a multinational company performs business in a completely different culture as well as with different cultural customers. There is no such description has been made that reflects the impact of such kind of relationship and impact of the relationship on the business setting. It is a huge gap between the current and previous research work. Background of the company and Conceptual Framework: Clarks is a multinational footwear manufacturer company of UK that maintains a number of retail stores in all over the world such as US, China, India, Australia and other countries (Clarks.com. 2016). In the year 1825, the company has started its journey and expands its branches in all over the UK. Finally, they developed international set up and started to develop showrooms in different countries. Figure 2.1: Logo of the Company (Source: Clarks.com. 2016) They manufacture shoes and other accessories as per the Western culture as well as the country where they establish their manufacturing unit and showrooms. As per the final year report of Clarks, the annual revenue is 1,492m. Clarks is an English shoe manufacturing company that has their manufacturing farm in different countries to perform sustainable supply as per the demand of the customers. The resources are collected by the company from the domestic market that influences them to provide quality product within a reasonable price to the customers under their brand name. However, the suppliers of the organisation in the host country sometimes are unable to perform effective activity to serve Clarks that has impact on the production of the shoes of Clarks. According to Waichhofer et al. (2015, p.315), supply chain plays an important role to maintain the principle of the business attentively for effective outcome. Lack of skill and advancement of the local supply chain results the low production level. Moreover, quality maintenance becomes difficult to the company because of the cultural differentiation. On the contrary Hoppner et al. (2015, p.83) stated that the supplier do not have proper idea regarding the business principle and brand image of a foreign company it makes them disable to maintain the objective of the company. Here cross cultural buyer seller relationship has a huge impact that performs between the supply chains of host country and the business of a foreign company. In this context Henneberg et al. (2015, p.271) stated that Interaction and understanding between the buyer and seller need to be very much strong that can increase trust by a long term balance of commitment. Adoption of the local culture is effective for Clarks to handle the supply chain to motivate them to deal with the business setting. Indirectly it will affect the customers of the host country of Clarks that results the consumer satisfaction on the products and the behavioural pattern of the company. This satisfaction influences the relationship between the cross cultured buyer and seller that increase the growth of the international business setup of a company. Figure 2.2: Conceptual Framework (Source: Created by Author) In this chapter, different factors and impact of buyer-seller relationship have been described and evaluation of different factors has been stated. From the description of various theories and models of the buyer-seller relationship, the proper pathway of maintenance of the relationship has been identified. Gap analysis between the current and previous research work has been done and finally a conceptual framework has been provided in this chapter to understand the impact of the relationship between cross cultured buyers and seller. Research Methodology Introduction: Research methodology provides a brief description of the research onion, philosophy, approach and design of the research. Then the data collection and sampling method are discussed. At the end, the plan and tools used in the analysis of data and the ethical parameter of the analysis are discussed. Research onion: In a development of a research strategy, the idea of the different stages which might be covered can be illustrated with the help of research onion. Each layer of the research onion denotes a clear idea about the stages of research strategy. A researcher gets an authentic conclusion on the research strategy with the help of the research onion. A diagrammatical representation of the research onion is provided in Figure 3.1: Figure 3.1: Research Onion (Source: Saunders et al. 2009, p.52) The outermost layer of the research onion is the research philosophy while the innermost layer represents the data collection method. The data collection method lies as the innermost layer because with the help of the collected data evaluation of the research aims are made and the research work ends up at this stage. Research philosophy: Research philosophy represents the way in which the data on the research work will be collected, analyzed and applied. Research philosophy can be classified into four categories which are Pragmatism, Positivism, Realism and Interpretivism (Bergh and Ketchen, 2014, p.65). Here positivism approach of philosophy has been followed by the researcher. Positivism philosophy depends on the quantifiable observations which result in the accumulation of detailed and accurate knowledge of the research work. The researchers have applied positivism philosophical approach in understanding the motives and behaviour of the staffs in a very scientific manner. Research approach: The approaches of research work can be categorized as inductive approach and deductive approach. For the current research work, the deductive approach was found to be very effective as here the actual research starts with the theoretical study of a literature review. The researchers have conducted primary research. The outcomes from this primary research have been observed, analysed and explained by them. Modification of the existing theories was done on the basis of the new findings of the current research work (Bryman and Bell, 2012, p.25). The researcher has incorporated relevant details on the effect of cross-cultural buyer-seller relationship in the marketing field with the help of research questions. With the inclusion of secondary research and the quantitative and qualitative approach the researcher achieve an accurate and valid conclusion. Research design: A research design for a work includes the way of the collection of information, the complete idea of tools required for the research, proper application of the tools in the evaluation of the data collected. The different types of research designs are descriptive, exploratory and explanatory. In the current research work among the different research design, the descriptive research design was found to be very effective in acquiring accurate conclusion. The descriptive approach of research helps in the exploration and explanation of the research findings. The descriptive design has helped in sorting out the current performance appraisal issues and the consequent suggestions for overcoming them (Crowther and Lancaster, 2011, p.98). Data collection method: Data collection can be conducted in the following two ways: primary data collection and secondary data collection. For the current research work, the researcher has focussed both on the primary and secondary data collection method. In order to collect primary data, the researcher conducted an online survey of the close-ended questionnaires. Moreover, to gather information in qualitative subjects the researcher set appointment with the management (Brewer et al. 2011, p.254). It is impossible to conduct interview with the managing director of the company because of their valuable designation and lack of time therefore assistant managers are considered as participates for the interview. The venue of the interview is the conference hall of the company of Clarks at the recess hours. In addition to that information was collected from secondary sources such as text books, journals, and websites. Sample size and sampling method: The size and the choice of the sample play an important role in the research work. The size of the sample helps the researcher in compiling the data within time. Samples should be chosen from a diversified field so that the researcher can achieve an unbiased conclusion. The researcher should always keep one thing in his mind that the collected data should be relevant to the topic under experimentation. In a case of the current research work 55 customers and 3 managers from Clarks were randomly selected for the sampling process convenience. Sampling methods are of two types: probability sampling and nonprobability sampling (Farahat and MacIsaac, 2010, p.99). Probability sampling is an unbiased method in which people are randomly selected for the convenience of the survey. This practice facilitates an authentic result for the researcher. In the case of nonprobability method, a set of people are selected and their opinion and views are studied for the research. In the current research w ork probability and nonprobability method was conducted respectively through questionnaire survey from a large sample and interview sessions with a target sample. Data analysis plans and tools: In order to achieve an accurate conclusion within time selection of appropriate tools required for the analysis of collected data is very necessary. In this current research, the analysis of data and information was employed by using MS Excel. The responses of the 55 customers and 5 managers of Clark have been calculated using percentage system. The obtained results were diagrammatically represented via graphs and tables. The chosen data analysis plan and tools used for the analysis purpose were very useful to achieve accurate results. Research ethics: Research ethics should strictly maintain while conducting research work which includes gathering information through questionnaire survey and interview sessions. In this regard, the researcher did not put any force on the respondents during the questionnaire survey and interview session. The respondents were free in determining the answers. In accordance with the confidentiality purpose, the disclosure of the name of the respondents was strictly prohibited. Moreover, the company details were also destroyed after the completion of the research work and were not exposed publicly. Limitations: The major limitations of this research work were the limited time frame and restricted area of study. Moreover, the interviewees also did not show their interest and activeness in fixing interview dates at the initial state of the research which result in delaying of research work. Summary: This section has mentioned different research philosophy used for the analysis of current research works. The selection of these research philosophies depends on the aims and objectives of the research work. The researchers have mentioned the consequent sample size and the sampling process. On addition of that, a proper time plan has been also mentioned here which denotes the consumption of time at different activities of the research work. Chapter 4: Discussion and Evaluation Introduction: In this chapter, primary data collection has been conducted in which the quantitative survey is completed among the 55 customers of the local India market and qualitative interview of 3-floor managers of Clarks in London. In this chapter the findings are accomplished in two sections. In the 4.2 quantitative analysis has been performed and 4.3 qualitative analysis has been performed to collect the data. Quantitative analysis has been performed in the 4 questions and represented the data through pie chart and table format. On the other hand the qualitative data are provided with the statements and 2 questions that are provided to understand the analytical thought. Quantitative data collection: Q 1: Which factors make you most uncomfortable of a multinational company? According to the survey, it can be observed that the customers are highly believed that cultural differentiation is the most uncomfortable factor that does not motivate them to buy any product from a company. The reason might be the lack of similarity in the products in which they are habituated. Among the 55 respondents 45% customers remarks so. On the other hand, 22% customers feel uncomfortable with the uniform, 18% disturbs with the way of taking of the sellers and finally, 15% customers are annoyed with the language problem. According to them the seller of the multinational company is not fluent in their language that influences them to avoid the products. Table 4.1: Uncomfortable factors of a multinational company Options Respondents Percentage of respondents Total respondents Uniform 12 22% 55 Culture 25 45% 55 Interaction 10 18% 55 Language 8 15% 55 Figure 4.1: Uncomfortable factors of a multinational company Q 2: What factors can improve buyer-seller relationship? As per the survey, it can be monitored that the customer thinks that cultural adaptation can improve the relationship between the multinational company and the buyers. 24% customer remarked on the cultural adaptation through which the seller is able to identify the requirement and habit of the buyer. According to 20% customers, open communication can help to improve the relationship. Trust development is stated by 22% customers in which loyalty can improve the relationship. Finally, as per 10% and 9% customers, coordination and social media can improve the relationship respectively. Table 4.2: Factors that help to improve the buyer-seller relationship Options Respondents Percentage of respondents Total respondents Cultural adaptation 13 24% 55 Open Communication 11 20% 55 Building Trust 12 22% 55 Co-ordination 10 18% 55 Social Media 9 16% 55 Figure 4.2: Factors that help to improve the buyer-seller relationship Q 3: How often do you interact with your seller? The interaction between buyer and seller frequently takes place according to 65% customers however, 22% and 13% customers told that they rarely or never interact with the seller. Interaction sort out the issues, however, due to the lack of knowledge in local language and way of talking is unable to improve the buyer-seller relationship. Table 4.3: Frequency of buyer-seller interaction Options Respondents Percentage of respondents Total respondents Frequently 36 65% 55 Rarely 12 22% 55 Never 7 13% 55 Figure 4.3: Frequency of buyer-seller interaction Q 4: How far do you agree with the fact that culture is an affecting factor to develop the relationship with a multinational company? Most of the customers agree with the fact that culture is responsible for the poor relationship between buyer and seller. 42% customers showed strongly agree with this idea. 33% customers have also stated that different cultural practice is effective to ruin the buyer-seller relationship and finally 15%, 7%, and 3% customers replied that culture is unable to hamper the relationship. As per the majority, it can be identified that culture has a huge negative impact on the buyer-seller relationship. Table 4.4 Cultural factors affect the relationship Options Respondents Percentage of respondents Total respondents Strongly agree 23 42% 55 Agree 18 33% 55 Neutral 8 15% 55 Disagree 4 7% 55 Strongly disagree 2 3% 55 Figure 4.4: Cultural factors affect the relationship Qualitative data collection: Q 1: What is your perception regarding the cross-cultural buyer-seller relationship? It can be seen that managers are partially aware of the situation of their cross-cultural relationship. Which might be a problem for them to improve such unfavourable situation in their business? It is in a balancing mode. We follow different strategies to deal with the foreign customers and offering them low cost and quality product we are trying to attract them and develop good relationship Manager: 1 I am partially agreed with manager 1 because I have monitored that the customer's expectation is not entirely fulfilled by our strategy which is an issue that does not give us a chance to grab their total attention Manager: 3 The statement of the managers reflects that their strategies are effective to maintain the cross cultural buyer seller relationship which has a positive impact on the business. Q 2: Do you think specific cultural adaptation and improvement of the strategies can sort out the issue? The managers are agreed with the fact that improvement of their international business strategy can improve the relationship. Moreover, cultural adaptation can help them to attract and retain more customers for their company. The International business strategy needs to be very authentic and as per the expectation of the customers that influence them to come and buy our products. Manager 2 I strongly agree with manager 1. Improvement of the existing strategies and familiarity with their language and culture will prepare a strong base of a cross-cultural business relationship between buyer and seller. Manager 1 Through the statements it reflects that international strategy and adaptation of the international culture are well accepted by the company that influence them to uplift the relation with the company. Chapter 5: Conclusion and Recommendation It can be concluded that cultural differentiation of a company is a vital factor to destroy the relationship buyer and seller in Clarks. There are many factors within cultural dissimilarity that become an obstruction to the built up relationship with the customers. The survey and interview also depict that adaptation of culture of the particular country will help to grab the customers and increase the interaction that will be a positive sign to improve the relationship of the buyer-seller relationship in Clarks. In this research only cultural issue has been discussed however there are many other issues such as economic and political which can hamper the buyer-seller relationship. Possible reasons and solution are not described in this research. Clarks should be attentive towards the cultural adaptation of the country and try to understand the habit of uses of the customers. Moreover, they should learn the language and utilize the human resource of that particular country to avail the cultural benefit without any hassle. The recommendations will be beneficial because cultural adaptation and recruitment of the local people will support Clarks to perform their business with the expectation of the foreign country. 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