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Consumer Behaviour

Consumer Behaviour

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Published by Zil Shah

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Categories:Types, School Work
Published by: Zil Shah on Nov 23, 2012
Copyright:Attribution Non-commercial


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Consumer Behavior Assignment-II
N.R. Institute of Business Management Page 1
Product Failure due to Cross-Culture Conflictand its subsequent Relaunch/Revamp.
Java Lounge
In Saudi Arabia
Saudi Arabia is a country that is living in a cultural dichotomy. The country isdominated by strict adherence to its Muslim faith. The national government is based on theprinciples in the Qur'an (translated as Koran in English) and their adherence to Shari'ah (sacredlaw of Islam). (Royal Embassy of Saudi Arabia, 2010) They are bound by 1,400 years of deepreligious and cultural beliefs. In contrast the nation is developing a modern and more westernidentity. Saudi Arabia has a population of 20 million native residents and over 6.5 millionexpatriates. This means that 1 of every 4 people are bringing a new cultural view to this Islamicnation. Technology is likewise bringing the outside world into this conservative society.Additionally, the great wealth of the country allows many people the ability to travel, furtherinfluencing their beliefs. Such growth inevitably creates a desire for more western luxuries.The Saudis are demonstrating the same desires that are created by new wealth similar to anywestern nation. Clothes, jewelry and other luxury items are finding their way into the lives of many citizens. However, this expression of wealth is closely guarded and often forbidden bythe traditional Islamic laws.It would appear the country is eager to accept new, upscale restaurants similar to theJava Lounge. This western style establishment would fit equally well in Europe or the UnitedStates. They cater to Saudis who desire more affluent surroundings. However, unlike otherEuropean or United States restaurants they must straddle the boundary of traditional societalvalues and modern business. The Java Lounge must deal with this contradictory socialenvironment. They must fulfill the same requirements of any successful business. Therestaurant provides both a service and a product that is desired by the customer base whilerespecting the community traditions.
Consumer Behavior Assignment-II
N.R. Institute of Business Management Page 2
Cultural Traits of Saudi Arabia:
Timing hours of work of MNE’s and other businesses are adjusted according to period.
For example, in Ramadan, business is normally done in the evening.
Pork products and alcohol are prohibited in Saudi Arabia. In case if authorities find outany suc
h things, MNE’s stand to lose their working licenses. Individual breaking of 
these rules are subject to very harsh punishments.
Saudi Arabian dress strictly follows the principles.
Punishments like beheading or cutting of hands often are done in public and people areforced to watch them so they know the consequences of breaking the rules. Homossexual are beheaded here.
Saudi Arabian people are not very punctual and meetings often start late with respect toscheduled time. They indulge a lot in idle chitchat. European and US people find thisinsulting and wastage of time.
Loans given in Saudi Arabia are interest free as it is considered un-Islamic to chargeinterest.
Most Saudis wear long white thobes. You would be expected to wear a suit.
As is seen in their naming conventions, Saudis are cognizant of their heritage, theirclan, and their extended family, as well as their nuclear family.
Enjoying movies and music in public is not allowed. It is just recently that they havestarted screening movies publicly.
Gifts are a very important part of Saudi culture. Saying no to the gift would meaninsulting them. Also when any eatables or drinks are offered by them, it is considered
Consumer Behavior Assignment-II
N.R. Institute of Business Management Page 3
rude to refuse it. Care needs to be taken to convey this message in order to avoidmisunderstanding.
Rules are more flexible for foreigners and foreign companies: for instance Saudis aremore lenient toward visiting female executives than they are toward Saudi women.
Cities like Jeddah which are situated near ports have more contact with outer world andare less conservative as compared to cities situated in the interiors. Dress code inJeddah is more relaxed as compared to other parts of Saudi. Hence cities near ports are
initially targeted by MNE’s. Then as people ad
apted to such new ideas/belief/lifestyle,they plan to move towards interiors.
Difficulties that MNE’s can face in Saudi Arabian Market:
Can’t rely on family
-focused interviews because of customs limiting male and femaleinteractions.
Home is considered as private and questioning about it is considered rude and invasive.
Similar kind of dressing makes it tough for the marketing teams to identify theeconomic status of the people.

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