TOPIC REVIEW ASSIGNMENT
> Choose one topic & give it an international dimension when writing.
> 1. Discuss the similarities and/or differences of FDI inflows between two different countries.
> 2. Country differences in consumer tastes & preferences are due to differences in culture & economic development. critically evaluate this statement drawing on relevant academic literature.
> 3. Evaluate the effect of the pandemic on short-term international business performance.
> * introduction- 100-150 words
> *main body
> PS: It should have either Harvard or standard referencing style, arranged in alphabetical order.
COUNTRY DIFFERENCES IN CONSUMER TASTES & PREFERENCES ARE DUE TO DIFFERENCES IN CULTURE & ECONOMIC DEVELOPMENT
Consumers are the most important assets for every business organization, based on whom organizations achieve competitive success. Taste and preferences of consumers vary upon different country contexts. Taste and preferences depend upon the culture and economic growth of a country. In the present context, differences between consumers' tastes and preferences in terms of culture & economic development of countries is going to be discussed here. Differences between the taste and or preferences of consumers in the UK and Australia is going to be investigated in this task. Evaluation of different literary sources to support the argument is the primary focus on this task as well.
It has been identified that there are vast numbers of differences between the taste and preferences of consumers in the UK and Australia. The differences mainly come from the aspect of differences in culture and differences in terms of ergonomic development. The overall differences between consumers preferences and taste in UK and Australia is as follows:
Consumer tastes and preferences due to culture differences in UK and Australia
UK culture and Australian culture are far different from each other that affect the taste and preferences of their customers using tools. With the aid of Hofstede tool, cultural differences between these two countries can be determined that affect consumers preferences and taste also.
Figure 1: Hofstede country differences between UK and Australia
(Source: Hofstede Insights, 2021)
It has been identified that power distance score is high in Australian that is 38 when compared to UK that is 35. It means that Australia thinks that inequality can help to increase the satisfaction value of people while the UK thinks that inequality must be minimized (Hofstede Insights, 2021). Hence, it can be said that social support helps consumers in the UK to put a positive attitude towards adoption of goods and services. Score for individualism is also equal in both UK and Australia that means consumers focus only on their personal benefit. Businesses that offer high facilities are usually able to develop loyalty with both UK and Australian consumers. It has been identified that the UK is a highly masculine society while Australia is not. It means that consumers are husky success oriented while Australian consumers focused on competition with other consumers and achievement of success. Uncertainty avoidance score is very high in Australia that is 51 and for the UK it is too low that is 35 (Hofstede Insights, 2021). In this regard it can be said that consumers are very selective in Australia that can easily mitigate any type of confusion while choosing goods but British consumers are not. In addition to this, long term orientation score is high in the UK that is 51 while the score is low for Australia that is 21. Thus, differences indicate that society keeps a link between past and present condition while managing risk. As stated by do Paco et al. (2019), changes in technology and sustainability have affected the behavior of consumers and strive them to follow green consumerism. Hence Australian consumers are unable to manage their taste differences while UK consumers are effectively able to manage their needs and wants even in highly risky conditions.
Consumer tastes and preferences due to differences economic development in in UK and Australia
From the entire discussion it is concluded that economic development of countries and cultural differences affects the preferences of consumers in both Australia and the UK. It has been identified that GDP decline in Australia in recent year 20919 have negatively affected their internet towards adoption of goods and services that are of high prices. On the other hand, UK consumers though have high purchase capability but the Brexit uncertainty has striven them to carry cost benefit analysis to choose products from the business form. Power distance is high in Australia that allows consumers to buy goods and services as per their requirement and wants. On the other hand, lower power distances of consumers in the UK do not allow them to think about the wellbeing of others. Uncertainty avoidance is very high in Australia that allows consumers to buy goods even in risk conditions while it is low among the British consumers.