Showing posts with label business research. Show all posts
Showing posts with label business research. Show all posts

Sunday, March 3, 2013

Gucci or Coach? National and International Purchases of Self-Identity



Why did you just buy that Chevrolet and the matching Levi jeans to go with it? What we buy is an expression of who are and the way in which we view ourselves. New research helps highlight the concept of national or global self-identities on consumer purchasing behavior. The reasons why we purchase certain products and services is an expression of who we are as a person and the way we view ourselves in the national or global context.

Personality traits of consumers often influence their perception and willingness to purchase certain national or global orientated products. The association is  because personality traits shape people’s worldviews and ideological attitudes (Sibley and Duckitt, 2009). How people view the world has a natural influence on their purchasing behaviors as they seek self-identification through the obtainment of products.

Understanding people’s perceptions of themselves within their environments is helpful for understanding how to develop advertisements that appeal to their target demographic. A stronger understanding of international markets is gained from analyzing both the external international marketing environment and the internal characteristics of personality and collective identity of target consumers (Myers, Sen and Alexandrov, 2010). It is this combination of personality, identity, and product appeal that makes a huge difference in consumer choice.

People often identify themselves with local or international groups of people. In an attempt to create consistency of beliefs and attitudes, they begin to develop purchasing behaviors that confirm their self-identity and associations. People often develop attitudes and behaviors that support their concept of self (Zhang and Khare, 2009) and this manifests itself in the products or services they are willing to spend their money on to support their understandings.

Local people with national identities will often prefer products from national markets that reinforce the validity of their beliefs. Those with identities that are more global will purchase products from international brands that reflect their beliefs. As the world globalizes and people begin to change the way they view themselves the products they are willing to purchase will also change. What we are buying is a reflection on our collective beliefs.

Let us look at an example that highlights this concept. Watching people you will find some have a natural preference for high priced products (i.e. Gucci or similar knock off) while others are more interested the eclectic nature of their purchases (homespun or handmade). The person who only buys expensive products, regardless of quality, is seeking identification as someone special while a person who purchases eclectic products is more orientated toward self-expression.

Research conducted by Westjohn, Singh, and Magnusson (2012) conducted at three mid-western universities uses upper level business undergraduates to understand how local or global self-identities impacted purchasing behaviors. A usable 205 responses from American citizens were used in the study. Each participant filled out first a personality survey and then a few days later a survey on national or international identities. 

Results:
-Openness of experience is associated with global identification while agreeableness is open to national identification.

-National identification on the Local Consumer Culture Positioning (LCCP) is greater than Global Consumer Culture Positioning (GCCP).

-Extroversion was negatively associated with GCCP.

Analysis:
The study helps to shed some important light on the concepts of national and global identity. Consumers still have a preference for national advertisement over global advertisement because they see themselves within this context. It also helps to understand how purchasing behavior is really more about self-validation and creating external behaviors through purchasing that are consistent with internal beliefs. In essence, all purchasing is an extension of self which means that all products, services, and operational activities should be in alignment with the national and global market to have the greatest consumer appeal. 

Westjohn, S., Singh, N. & Magnusson, P. (2012). Responsiveness to global and local consumer cultural positioning: A personality and collective identity perspective. Journal of International Marketing, 20 (1).

Sibley, C. & Duckitt, J. (2009). Big-five personality, social worldviews, and ideological attitudes: further tests of a dual process cognitive-motivational model. Journal of Social Psychology, 149 (5).

Myers, S., Sen, S. & Alexandrov, A. (2010). The moderating effective of personality traits on attitudes toward advertisements: a contingency framework. Management & Marketing, 5 (3).

Zhang, Y. & Khare, A. (2009). The impact of accessible identities on the evaluation of global values local products. Journal of Consumer Research, 36 (3).
Gucci or Coach? National and International Purchases of Self-Identity

Wednesday, February 27, 2013

Business College Students Seek Opportunities of Self-Ownership


The value of a college education cannot be underestimated in an increasingly complex world. Business education is important in fostering new minds that will go forth and try out their ideas in the international market. Research helps highlight how a simple majority of business college students seek to develop their own business operations but feel as though these opportunities may not be forthcoming.

In 1865 Horace Greely stated, “Go West, young man, go West and grow up with the country.” The commonly used quote is deeply rooted in the psychology of young people who desire to flap their wings and seek their fortunes. The nature of business is about flapping wings and trying to get off the ground. Many do, many more do not, but it is the journey that takes precedence.

One of the reasons why young business students are so eager to start their own entrepreneurial endeavors lays in the uncertainty the recession has created over the past decade. They were reared in an era where corporate shifts, layoffs, and the movement of jobs overseas were common. In their effort to create some level of personal stability they seek the path of self-determination.

According to Summ, et. al. (2001), “Labor market conditions for most demographic groups of U.S. workers have been quite weak in recent years (2008-2010) due to the adverse employment impacts of the Great Recession of 2007-2009 and the anemic job recovery during the first 18 months following the trough of the recession in June 2009.

As this group of students were attending high school and thinking of long-term opportunities the economy took a “nose dive”. While moving into college this same group of students hoped for business glory but suffered from declining opportunities. Despite the difficulties such students face they still seek to brand their mark on the global world and college continues to be an important learning avenue to allow that happen.

A study conducted by Tomkiewicz, Bass, & Robinson (2012) surveyed a total of 123 students in an AACSB mid-eastern accredited school.  Students were in attendance of the college of business and part of either a Fundamentals of Business course or a Strategic Management course. Participants were asked to consider their current station in life and determine where they would like to work in the future. Each student also completed the Fear of Success and the Fear of Appearing Incompetent instrument as part of the study.

Findings:

-55% of students wanted to have their own business.

-Only 34% of those who wanted a business felt they actually be able to do so.

-45% of students had a preference for working in organizations. 

-100% of those who had a preference for working in organizations stated that they are likely to have an opportunity to do so. 

-Males were more enthusiastic about starting their own business.

-Comparing graduating students with new students found that both had similar preferences for owning their own businesses but fewer graduating students felt they would have an opportunity to do so.

Analysis:

The information from the results indicated that the majority of students had a preference for working within their own business while a far majority felt that they would not have an opportunity to do so. The study helps highlight how business college students have a desire to be independent in their work habits and control the nature of their work. However, as they become more aware of the trials, depth, and financing needed to run their own businesses such expectation declines. 

Sum, A., Khatiwada, I. and Pahna, S. (2011). The continued collapse of the nation's teen summer job market: Who worked in the summer of 2011? Center for Labor Market Studies Northeastern University, August.

Tomkiewicz, J. Bass, K. & Robinson, J. (2012). Student propensity toward business ownership. College Student Journal, 46 (4).

Monday, February 18, 2013

Leadership Skills as Defined through Service Management Education



Leadership has become a more important focal point of conversations. Understanding the factors of leadership within a transforming educational environment can help college faculty and administrators better understand those skills and abilities which foster appropriate change. Leadership skill has been tested within the hospitality academic fields to better understand the perceptual differences between those who run a college and those who work within it.

Leadership can be seen as a combination of personality traits, abilities and gifts (Kenny & Zaccaro, 1983). People are born with certain leadership abilities that develop over time through effort and willpower. However, this does not take into consideration the multiple factors of development that can occur through different social situations and how these social situations foster leadership.

Leadership can also be seen as derived from the result of individual behaviors within a social context (Blake & Mouton, 1978). Under such social circumstances, skillfulness is demonstrated by effective action (Katz, 1955). Through pressing times, people with leadership skills may employ those skills to achieve a defined objective; even when such skills were not exhibited before.

Even though leadership can be associated with, the way people think they are only precursors to what may actually happen under the right circumstances. Behavioral-based theories measure leadership by what actually was exhibited in certain pressing circumstances (Northouse, 2007). What is done may vary be the way people think but only through “trial by fire” do meaningless words turn into effective action that come to define the true leader.

Effective leaders have a few traits that help separate them from others. High performing leaders tend to focus on interpersonal skills (Boyatzis, 1982) and problem-solving or decision-making abilities (Connelly, et. al., 2000). To put together the right solutions for the varying problems at hand leadership is derived from the following three factors (Mumford, et. al., 2000):

1.) Creative problem-solving skills
2.) Social judgment skills
3.) Knowledge

Under such circumstances, leaders can find solutions to problems, able to judge their social environment and use their prior knowledge to make proper decisions. Social judgment can be seen as the ability to perspective take,  perceptive in social situations, have behavioral flexibility, and create social performance (Mumford, et. al, 2000). In order to judge difficult situations and find solutions to ill-defined problems leaders need to quickly use information about tasks and the people they work with to create effective solutions (Mumford, et. al., 2000).

This quick witted and social grace allows leaders to create higher levels of performance when the timing is right. Such leaders quickly scan their environment to understand the factors, put together their prior knowledge to find solutions, and use their social skills to influence others. With these three factors, they are able to overcome problems that others may have a hard time fathoming.

A study conducted by Kalargyrou, Pescosolido, & Kalargiros in 2012 helps to determine the perceived skills of leaders within the hospitality management education programs at the college level. The study used 236 professors and administrators from baccalaureate and graduate problems that were registered with the International Council on Hotel, Restaurant, and Institutional Education (I-CHRIE).

The results of the survey indicate that faculty and administrators ranked business skills as the most important set of leadership qualities. This was followed by cognitive, interpersonal abilities and strategic decision-making abilities. To both faculty and administrators it is important for leaders to develop their business skills and use them in both personal and social ways to solve complex problems

Each of the concepts are defined as follows:

1.) Business skills: Management skills, management of personnel, financial management, and management of material resources.
2.) Financial Skills: Management of material resources that includes fundraising, budgeting, accounting, technology, sales, curriculum, and marketing.
3.) Cognitive Skills: Effective communication and the ability to adapt to changing environments.
4.) Interpersonal Skills: The ability to create positive public relations, empathy, respect hospitality, forgiveness, trustworthiness, and caring.
5.) Personal Values: The ability to act both ethically and fairly with people.


Boyatzis, R. E. (1982). The competent manager: A model for effective performance. New York:Wiley & Sons.

Blake, R. & Mouton, S. (1978). The new managerial grid. Houston, TX: Gulf.

Connelly, M., Gilbert, J., Zaccaro, S. , Threlfall, K., Marks, M. , & Mumford, M., (2000). Exploring
the relationship of leader skills and knowledge to leader performance. Leadership Quarterly, 11(1), 65–86.

Kalargyrou, V.  Pescosolido, A. & Kalargiros, E (2012).  Leadership skills in management education. Academy of Educational Leadership Journal,  16, ( 4).

Katz, R. L. (1955). Skills of an effective administrator. Harvard Business Review, 33(1), 33-42.

Kenny, D. & Zaccaro, S. (1983). An estimate of variance due to traits in leadership. Journal of Applied Psychology, 68, 678-685.

Mumford, M. D., Zaccaro, S. J., Connelly, M. S., & Marks, M. A. (2000). Leadership skills: Conclusions and future directions. Leadership Quarterly, 11(1), 155-170.

Northouse, P. (2007). Leadership theory and practice. Thousand Oaks, CA: Sage publications.




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