Role Of cultural diversity and acculturation in ethnic marketing of banking service in Sweden

8/8/2019 Role Of cultural diversity and acculturation in ethnic marketing of banking service in Sweden

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School of Sustainable Development of Society and Technology

Mlardalen University Vsters

MIMA International Marketing

Master Thesis (EFO705)

Role Of cultural diversity and acculturation in

ethnic marketing of banking services in Sweden

Tutor

Tobias Eltebrandt [email protected] Rizwan [email protected] Mustafa [email protected]

Date: 2009-06-10


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Acknowledgement

In the name of Allah, the most beneficent the most merciful.

We would like to convey our eternal appreciation to every person that helped to make this thesis

possible and we accept that without their help this thesis wouldnt be able to complete. Therefore

we would like to dedicate our acknowledgment for all of those who contributed in our thesis

work.

First of all, we would like to give foremost and special thanks to our supervisor Tobias

Eltebrandt for his guidance and recommendations throughout the course duration particularly the

time after seminars which he spared for us.

We would also like to thank to those respondents who help in conducting our survey such as

bank officials and different people.

We also thank to our main and side opponents for their feedback on our studies which really

helped us in further improving our work.

We also thanked to Malardalen University for providing every facility we needed to complete

this theis such as computer labs, library resources, and electronic journals.

Lastly, we would like to give special thanks to our parents whose prayers enabled us to complete

this work. They raised us, taught us, supported us and loved us. We dedicate our work to them.

Muhammad Rizwan

Zahid Mustafa


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Abstract

Date: 2009-06-10Program: MIMA-International Marketing

Course Name: Master Thesis (EF0705)

Title: Role Of cultural diversity and acculturation in ethnic marketing of

banking services in Sweden

Authors: Muhammad Rizwan [email protected]

Zahid Mustafa [email protected]

Tutor: Tobias Eltebrandt

Strategic questions: How important is the customers ethnic background, culture and levelof acculturation when choosing a provider of financial services?

What are Swedish service-providers currently doing in order to targetthese customers and what adjustments would be most beneficial forthem to implement in order to obtain more customers?

Purpose: To examine whether the banks in Sweden are considering the culturaldiversity and acculturation when providing services or not, and how

the attitude of ethnic consumers has been developed

Method: In this research qualitative research method are used to analyze theinformation. Two different consumer and bank surveys conducted toextract the information needed to complete this study. A commontheoretical framework and questionnaire was developed to find datafrom consumers and a different questionnaire for this particular study.

Conclusion: Ethnic consumers in Sweden are attractive market for banking

industry because of the growing nature of immigration in the country.

Although Swedish banks realize this fact but they are not targeting

ethnic consumers differently. There are factors for Swedish bankswhich could play important role such as cultural identity, language,

national identity, and acculturation while formulating strategies for

targeting ethnic consumers.

Keywords: Cultural Diversity, Acculturation, Ethnic consumer, Banks


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Table of Contents

1. Introduction ............................................................................................................................. 1

1.1 Background to this study .................................................................................................. 2

1.2 Strategic questions............................................................................................................ 3

1.3 Purpose ............................................................................................................................. 3

1.4 Target audience ................................................................................................................ 3

2. Literature Review .................................................................................................................... 4

2.1 Relationship between Cultural Diversity and Marketing ................................................. 4

2.2 Cultural diversity and Consumer Behavior ...................................................................... 52.3 Acculturation .................................................................................................................... 6

2.4 Consumer Acculturation .................................................................................................. 7

2.5 Effect of Ethnic Affiliation on Acculturation .................................................................. 7

2.6 Measurement of Acculturation ......................................................................................... 8

2.7 Trends in Consumer Acculturation Studies ..................................................................... 8

2.8 Segmentation and marketing mix strategies ..................................................................... 9

3. Methodology .......................................................................................................................... 10

3.1 Choice of Topic .............................................................................................................. 10

3.2 Research Methods .......................................................................................................... 10

3.2.1 Data Collection Methods ........................................................................................ 11

3.2.2 Questionnaire selection ........................................................................................... 11

3.2.3 Elaboration of Questionnaire .................................................................................. 12

3.2.4 Selection of Respondents ........................................................................................ 13

3.2.5 Data and its valuation.............................................................................................. 13

3.3 Limitation of Study ........................................................................................................ 14

4. Findings & Analysis .............................................................................................................. 15

4.1 Banks and their ethnic market in Sweden ...................................................................... 15

4.2 Ethnic consumers as a potential market segment ........................................................... 18

4.3 Importance of different cultural factors ......................................................................... 19

4.4 Effects of cultural diversity on consumer behavior ....................................................... 24

4.4.1 Self Identity and cultural group .............................................................................. 24


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4.4.2 Involvement in cultural group ................................................................................. 25

4.4.3 Swedish as first language ........................................................................................ 25

4.4.4 Use and fluency in Swedish .................................................................................... 25

4.4.5 Ethnic purchase behavior ........................................................................................ 26

4.4.6 Importance of religion............................................................................................. 26

4.4.7 Celebration of religion and different events ........................................................... 26

4.5 Importance of Acculturation in decision making ........................................................... 28

4.5.1 Cultural Identity ...................................................................................................... 28

4.5.2 Fluency of Swedish Language ................................................................................ 29

4.5.3 Celebration of Swedish Events ............................................................................... 29

4.5.4 Swede as Close Friends .......................................................................................... 30

4.5.5 Factors Affecting Selection of banks ...................................................................... 31

4.6 Marketing Strategy to Ethnic consumers by Swedish banks ......................................... 32

4.6.1 Marketing Mix, Communication, banks and Ethnic customers .............................. 33

4.6.2 Communication between customers and banks ...................................................... 37

5. Conclusion ............................................................................................................................. 38

6. References ............................................................................................................................. 42

Appendix: Banks Survey .............................................................................................................. 46


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List of Figures

FIGURE 1:A MODEL OF THE INTERACTION OF CULTURE AND CONSUMER BEHAVIOR (LUNA&GUPTA,2001) ........................................................................................................................... 5

FIGURE 2:CULTURE SWAPPING BY THE ETHNIC PARTICIPANTS (JAMAL.A,2001) .......................... 7

FIGURE 3:FRAMEWORK FOR INTERPLAY OF MARKETING, ETHNICITY AND CONSUMPTION (JAMAL.

A,2001) ................................................................................................................................... 7

FIGURE 4:POPULATION IMMIGRATION RATIO IN SWEDEN (SWEDEN POPULATION STATISTICS,2009)

............................................................................................................................................... 16

FIGURE 5:TOTAL IMMIGRANTS FIGURE CAME BETWEEN THE PERIODS OF 2002-2008 .................... 18

FIGURE 6:IDENTIFICATION OF CULTURAL GROUP AMONG ETHNIC CONSUMERS ............................. 28

FIGURE 7:GRAPHICAL ILLUSTRATION OF RESPONDENTS ABILITY TO SPEAK SWEDISH LANGUAGE

FLUENTLY............................................................................................................................... 29

FIGURE 8:GRAPHICAL ILLUSTRATION OF INOLVEMENT AND CELEBRATION OF SWEDISH EVENTS BY

ETHNIC CONSUMERS ............................................................................................................... 30

FIGURE 9:GRAPHICAL ILLUSTRATION OF SWED AS CLOSE FRIENDS FOR ETHNIC CONSUMERS ....... 31

FIGURE 10:GRAPHICAL REPRESENTATION OF DIFFERENT FACTORS MEAN IN CHOOSING OF BANKS

BY ETHNIC CUSTOMERS........................................................................................................... 35

FIGURE 11:BANKS AND LANGUAGE FOR COMMUNICATION WITH ETHNIC CUSTOMERS .................. 35

FIGURE 12:CUSTOMERS AND THEIR PERCEPTION REGARDING ADVERTISEMENT COMMUNICATION 37


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List of Tables

TABLE 1:SWEDENS PRELIMINARY POPULATION STATISTICS BY MONTH CHANGES UP TO AND

INCLUDING 31MARCH 2009(SWEDEN POPULATION STATISTICS,2009) ................................ 15

TABLE 2:BANKS AND THEIR MAJOR ETHNIC CUSTOMERS NATIONALITIES .................................... 17

TABLE 3:IMMIGRATION STATISTICS (CITIZENS OUTSIDE THE NORDIC) BY COUNTRY OF BIRTH,SEX

............................................................................................................................................... 19

TABLE 4:TOTAL SCORE AND MEAN VALUE FOR FACTORS BY BANKS ............................................. 20

TABLE 5:DISTRIBUTION OF MEAN VALUE FOR IMPORTANCE OF DIFFERENT FACTORS BY BANKS ... 21

TABLE 6:TOTAL SCORE AND VALUE FOR FACTORS BY ETHNIC CONSUMERS .................................. 22

TABLE 7:DISTRIBUTION OF MEAN VALUE FOR IMPORTANCE OF DIFFERENT FACTORS BY BANKS ... 23

TABLE 8:DIFFERENT BANKS IN SWEDEN AND DATA ABOUT THEIR CUSTOMER RESEARCH ............ 27TABLE 9:IMPORTANT FACTORS FOR DECISION MAKING IN SELECTION OF BANKS .......................... 31

TABLE 10:BANKS CURRENT MARKETING STRATEGY ..................................................................... 32

TABLE 11:DIFFERENT FACTORS MEAN IN CHOOSING OF BANKS BY ETHNIC CUSTOMERS ............... 34

TABLE 12:BANKS AND HIRING OF EMPLOYEES TO SERVE DIFFERENT ETHNIC GROUPS................... 36


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1. IntroductionThe rising competition in global markets, especially in developed countries like in Sweden,

has forced service providers to look into different market segments rather than considering

national market as homogeneous market. Because of the complexity in needs and diversity in

consumer behavior conventional approach for market segmentation is not enough under one

market As Maslows Hierarchy of Needs present in universal model such as Self-

actualization need which is highly directed to individual but in case of collectivistic cultures,

actualization is not for individual but in the interest and honor of the group (Mooij, 1998),

Therefore, identifying and understanding the characteristics of different ethnic groups can

play a role in market segmentation.

Markets look homogenous in macro picture but reaching at micro level it proves to be

heterogeneous and the overall market comprises on several market segments. Ethnic

consumers are individuals which belong to a specific ethnicity-based group which make them

distant from mainstream consumers in national market (Pires G., Stanton J., 2000). Ethnic-

based consumers represent specific consumers behavior and they must be indentified and

address as separate segment. It is very vital for marketers to offer products according to their

specific needs. As Landsberg (2006) put immigrants in New Customer category becausethey bring their needs according to their ethnic (national) identity which reflects that for

targeting niche market, financial service provider in Sweden can get a big share of business

by understanding and addressing New Customers needs.

To identify needs of any specific ethnic group, financial service providers in Sweden should

identify and understand cultural background, acculturation level of these groups. Culture has

hundreds of definitions and it vary with one region to other but normally culture comprise ofdifferent attributes including of human behavior, values, family structure, language, religion

and life style (Helgesson,1996). While acculturation level pointed that when groups of

individuals having different cultures come and intact with each other, and accept values of

each other, it brings changes in their original culture and values (Marta, 1979). Considering

ethnic group as a small group which has different needs, language difference and difficulty in

cultural understandings from rest of consumers, targeting ethnic consumers is considered to

be difficult (Pires, Stanton, 2000). Considering growing ethnic market in Sweden, it is

stressing on the importance for service providers to carry out market research in order to


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understand ethnic consumer behavior and their needs and bring them under their consumer

net.

Targeting ethnic groups effectively is crucial principal as message must be clear, direct and

understandable to ethnic consumer and carry such message which would address all

characteristics that make collectively ethnic consumer behavior (Svendsen, 1997). Therefore,

our study will accomplish the core objective that what financial service providers are doing to

target different ethnic groups in Sweden and in which way.

1.1 Background to this studyThis thesis is a part of a larger collaboration between students during the spring semester of

2009. The aim was to work together in order to collect more data and allow deeper analysis in

the specific area chosen by each student-group. The goal was to come up with advice for

banks on how to target immigrants in Sweden.

During this process a common theoretical framework was decided on and a questionnaire was

developed. The questionnaire was written in English and later translated to several other

languages in order to reach some of the target groups that were not fluent in English.

The chosen structure of each paper was to write it more like an article than a traditional

master thesis. If a group decided to add more concepts on top of the ones agreed upon at the

beginning of the project they will describe these in the paper. The following theories were

used for the development of the questionnaire and much of the analysis:

The cultural dimensions by Geert Hofstede, Consumer behavior, Acculturation, Culture

(including language and religion), Demographics and the SERVQUAL model. During the

courses leading up to the thesis, all students had used the books below and were familiar with

the content. A large amount of articles and books were also covered so the framework is not

based on these books alone.

Fisher, Researching and Writing a Dissertation: A Guidebook for Business Students. Grnroos, C, Service management and marketing Jamal, A., Evans M.M., Foxall, G. Consumer Behavior Cateora, P. and Ghauri, P., International Marketing Porter, M.E.: On Competition


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1.2 Strategic questionsAll groups agreed to use one or both of the following strategic questions and to find research

questions related to these:

How important is the customers ethnic background, culture and level of acculturationwhen choosing a provider of financial services?

What are Swedish service-providers currently doing in order to target these customersand what adjustments would be most beneficial for them to implement in order to

obtain more customers?

1.3 PurposeThe purpose of this study is to examine whether the banks in Sweden are considering the

cultural diversity and acculturation when providing services or not, and how the attitude of

ethnic consumers has been developed

1.4 Target audienceThe outcome of this study will help banks in Sweden in formulating their strategies to target

ethnic consumers in future. This study will also help them reevaluate their current strategies in

this context and make appropriate changes in their strategies.

Also those banks which do not consider Swedish ethnic market as separate segment and those

banks which are planning to target ethnic consumers as separate market segment other than

mainstream consumer can consider this study in order to find out the importance of ethnic

consumers and factors which they should consider before targeting this particular segment


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2. Literature ReviewIn this chapter we will review different articles, journals and books to analyze and select

different concepts and theories regarding cultural diversity, acculturation, and ethnic base

segmentation and marketing mix strategies

2.1 Relationship between Cultural Diversity and MarketingCountries are becoming more culturally diverse with the passage of time and now many

cultures are existing in one national boundary (Pires, Stanton & Cheek,2003) which are

leading cultural diversity in any country and in result world is now characterized by diverse

ethnic subcultures (Cui & Chouhdhury, 2002). Having different language, traditional

practices, belief, social and family system, ethnic and national identity, many minority

(ethnic) groups are living with main stream population and behaving differently in many

aspects including consumption from rest of population. In past, multiculturalism and cultural

diversity consider being problem in society (Wilkinson & Cheng, 1999) and thats why

organizations developed their marketing strategies for ethnic consumers in few countries

including US, UK, and Australia.

But today multicultural diversity in society consider in positive terms because manyopportunities and benefits are now attributed with multiculturalism and multicultural society

(Wilkinson & Cheng, 1999). Having large number of ethnic groups and their population in

different societies, and showing different behavior in many aspects life, it can affect on

marketing practices and consumer behavior. Jamal (2001, p.1599) indicated that marketing

practices are embedded in society and have significant macro level impact on the way

consumer and maintain their identities, therefore in culturally diverse societies, consuming

behavior is widely affected by national and ethnic identity, demographic, belief and other

factors. Thats why proper and objective analysis of ethnic consumers behavior and needs is

necessary to offer them products (Burton, 1996). Specific need of ethnic customer lead

different marketers to provide them solution and in response marketers are now considering

ethnic consumers as potential consumers, in view of and identifying them as new segment and

adopting marketing mix strategies to target them.

Moreover current multicultural market place require understanding ethnic consumers needs

beyond basic and simple understanding (Jamal, 2001) but it needs of in-depth analysis of

ethnic consumers regarding their previous culture, measuring of acculturation level, following


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to belief, slow or speedy integration with society and different family structure, and by this

way companies can expand their customer base in the era of competition, globalism and

internationalization.

2.2 Cultural diversity and Consumer BehaviorAs culture has different definition but normally culture is characterized by symbols, belief,

ritual practices, art forms, ceremonies, language, rituals of daily life and these characteristics

are considered sharing modes between individuals having same culture and ultimately it

develop behavior of these individuals (Swidler, 1986) while Hofstede (Hofstede, 1997, p.5)

define it as the collective programming of the mind which distinguishes the members of one

group or category of people from another (Luna & Gupta, 2001, p.46). When individuals of

specific ethnic group move from one locality to another, they bring their culture also on new

place and practice it. Cultural values of these individuals are affecting on many aspects of life

including their purchasing behavior and consumption. From Figure 1, it shows that culture

develop and grow by values, symbols, rituals, heroes with passage of time. Individual culture

then influences some specific ethnic group culture and then society culture as a whole at the

end. It is also clear from figure 1 that culture effect on consumer behavior and ultimately

consumer behavior and culture merge with each other and develop some new values in

society.

Figure 1: A model of the interaction of culture and consumer behavior (Luna& Gupta,2001)

Cultural Value System

Symbols

Values

Heros

Consumer Behavior

Cognition

Affect

Behavior

Marketing Communication


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Now we look this in another scenario that when an individual come into a different cultural

society, actually he also brings cultural values with himself which is integrated with consumer

behavior and contribute in development of any additional value in new culture and consumer

behavior in host society. On the marketer end, marketing strategies are contributing effect on

sides, consumers end and culture. Here marketers get important role to integrate main stream

consumers behavior with ethnic consumers behavior, develop marketing mix according to

their consumer behavior and provide solutions. Therefore, it is core issue for marketer to look

on needs of consumer behavior in multicultural society and then study and identify weather

ethnic group are accepting culture of host country by adding any cultural values from their

side or maintaining their culture (Burton,1996). According to what marketers identify in this

regards, marketers, then, will be able to address ethnic consumers needs.

2.3 AcculturationRedfield, Linton and Herskovits (1936) define acculturation as those phenomena which

result when groups of individuals having different cultures come into continuous first-hand

contact, with subsequent changes in the original cultural patterns of either or both groups

(p.149). Acculturation can be describe as when individual culture gets dominant by host

culture influencing ones values and beliefs and become more alike the dominant majority

ethnic identity from the original ethnic identity (Quester and Chung 2001). People around the

world migrating to different countries due to several reasons carrying their native culture with

them to host country and during the process they try to learn the host culture in order to

become a part of society. In many cases, acculturation looks at how consumers from one

country adapt their attitudes and behaviors of a host culture (Dion and Dion 1996). As time

pass on these immigrants learn behavior and attitudes of host country and start practicing

them because of its dominance in the society which affect their original ethnic identification

and become more alike host ethnic identify and this particular change affect their

consumption pattern as well.

It is the matter of fact that both native and host culture of immigrant undergo changes on

continuous basis, usually mainstream host culture has more impact on individual comparing

the impact of immigrant cultures on the mainstream host culture (Kim 1985). Immigrants

which culture is not dominant in the society and their need to adapt the host culture in order to

get accepted by host culture is greater than the host cultures need to include aspects of the

immigrant culture


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Figure 2 : Culture swapping by the ethnic participants (Jamal. A, 2001)

2.4 Consumer AcculturationMany studies has been done in recent times considering ethnic consumption, and there is

debate between different scholars on whether the constructs of ethnic identity and

acculturation which are almost identical because they both rely on similar measures such as

language, reference group influence, adherence to cultural customs, and food preferences to

operationalize them (Hui, Joy et al. 1992). As immigrants start living in host country and

continuing molding themselves according to the host culture which affect their acculturation

level also influencing and affecting their consumption behavior. People start to purchase

product/services which they never consider before. Consumer acculturation is a subset of

acculturation and socialization. While acculturation is broader perspective, consumer

acculturation is more specific to the consumption process of the immigrants. Consumer

acculturation can be seen as a socialization process in which an immigrant consumer learns

the behaviors, attitudes and values of a culture that are different from their culture of origin

(Lee 1988).

Figure 3: Framework for interplay of marketing, ethnicity and consumption (Jamal. A,

2001)

2.5 Effect of Ethnic Affiliation on AcculturationPealoza (1994, 1995) suggests that ethnic affiliation is negatively related to consumeracculturation such that the more a person affiliates with his or her ethnic community, the less


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are his or her chances to adapt to and adopt mainstream values and behaviors. People from

different ethnic group try to remain in contact with their community due to several reason

such as social and security need. It is common physiological concept that people feel more

safe when their relatives and friends are around them, such behavior negatively affect the

acculturation level of those person as they most of time remain in their ethnic community

which force them to continue practicing their native culture and de motivate to adopt host

culture values and behavior.

2.6 Measurement of AcculturationEthnic marketer always try to learn the acculturation level and ethnic factors in the society

which they further use in their marketing activities to attract those ethnic group. To measure

acculturation and ethnicity there has been several measurement factors proposed in both the

social sciences and the consumer behavior literature. Most common factors that have been

considered in the measurement are language, reference groups, intermarriage, identity, culture

(Laroche, Kim and Tomiuk 1998; Lee and Um 1992; Pealoza 1989; Suinn, Rickard-

Figueroa, Lew and Vigil 1987; Valencia 1985), and religion (Hirschman 1981).

Communication based measures, such as media usage, have also been used (OGuinn and

Faber 1985 & Kim, Laroche et al. 1990). These factors can help marketer to understand and

measure the acculturation level and ethnicity in the society and tailor their marketing activities

to attract ethnic consumers in the society.

2.7 Trends in Consumer Acculturation StudiesThere has been three different trends appeared in consumer acculturation studies, first is

ethnic identity as most of the ethnic groups after migrating continuing saving their original

identity and always differentiate themselves from the mainstream consumer. Marketers can

use ethnic identity to differentiate those ethnic groups as separate segment in their marketing

activities, Second is the strength of ethnic affiliation which depends on the strength of

affiliation of an individual with its ethnic group and as long the affiliation remains strong it

will decrease acculturation level among those individuals, last one is situational ethnicity

where consumer behave according to the situation and feel ethnicity in specific situations.


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2.8 Segmentation and marketing mix strategiesCompanies are adopting and tailoring their marketing strategies according to market situation.

Different markets have certain level of diversity where people from different ethnic

background are living together. To be effective marketer companies need to segregate the

whole market into various distinctive segments which can help marketer to understand the

needs and expectation of specific segment more easily. This complete understanding of

market segment can help companies to adopt appropriate marketing mix strategy including

product features, distribution channels, promotional strategies and pricing. To reach these

market segments, companies may chose different levels of marketing mix differentiation such

as standardize marketing, product adaptation, advertising adaptation, and complete ethnic

adaptation (Cui, 1997). Adopting any particular marketing mix strategy largely depends onconsumer trends in the market.

Effective ethnicity based segmentation mainly focuses on achieving homogenous reactive

consumption behavior from a specific segment to marketing stimulus over a period of time

long enough for the marketing action to reach the targeted population. To identify and

conclude the homogeneous consumption from specific segment companies should consider

that the target population needs to be identifiable, measureable, actionable, unique, stable, and

homogenous in the relevant characteristics. (Donthu and Cherian, 1994; Thomas, 1980)


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3. MethodologyIn this chapter authors have developed methods which describe how authors will collect

findings to analyze research question based on the conceptual framework.

3.1 Choice of TopicThis thesis is part of broader study which focus is to come up with advice for banks on how to

target immigrants in Sweden. While formulating the common theoretical framework for the

overall study different concepts and factors was discussed between all the groups. Looking at

the common theoretical framework we found interest in cultural diversity and acculturation

and felt that these factors have greater importance when formulating strategies to target ethnic

market.

On the other hand most of the groups were focusing specific ethnic groups but we decided to

cover both banks and overall ethnic consumers in Sweden. In this thesis we have covered the

current practices for targeting ethnic groups by banks from survey and compare and analyze

that information which we got from banks to the information we got from other consumer

survey.

3.2 Research MethodsConsidering core objective of study for researching on ethnic marketing from banking service

providers perspective, it needs an in depth knowledge and detailed information from banks

and if in case the targeted banking service providers havent started to target ethnic consumers

yet, authors can discuss with them about their future plan and viewpoint on ethnic marketing.

Therefore authors have considered qualitative strategy to conduct this research work. Bryman

(2004) described that apparently it seems less difference between two strategies because in

quantitative one researcher use measurement while not in quantitative because it depends on

words rather than quantification in collection and analysis of data. In view of facts about

qualitative research, research question shows that authors are going to examine the fact that

what are banking service providers in Sweden doing in area of ethnic marketing while dealing

two issues related to offering to ethnic consumers; one is acculturation and other is cultural

diversity and how ethnic consumers attitude has been developed in this regard. The study

need in depth information to analyse data to address research question. Other major issue

which relates to qualitative prospect to facilitate study needs is that the data collection method


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should be in flexible and open way (Silverman, 2000) so that authors can discuss with

interviewee in detail or collect information through questionnaire with open ended questions.

Furthermore, information on ethnic marketing by banking service provider in Sweden is not

available at large amount, therefore there might be chances that banking service providers still

would not start their operation to target ethnic consumers but in this article authors have also

discussed with them about their future prospects in ethnic market.

3.2.1 Data Collection MethodsAccording to nature and requirement of study, selection of methods for data collection is

much important and it affect also on overall studys result because study mainly focus on

empirical data collected by these methods (Brewerton ,Millward, 2001). Several types of

methods are used for data collection including interviews, questionnaires, panels, observation,

documents, databases (Fisher, 2004) for this study authors have designed two different survey

questionnaires both from consumers and marketers after evaluating pros and cons of different

selection methods. A common questionnaire has been designed for the overall study which

was used by all the groups included in this project while a separate survey has been

specifically designed for this particular study since the research question of this study is also

focusing banks. In next section, authors will discuss about the selection of survey

questionnaire study and its justification.

3.2.2 Questionnaire selectionDue to time constraint, difficulties in getting appointment with respondents from different

financial providers and getting precise information, authors decided to conduct surveys

through two different questionnaires from various service providers and ethnic consumers in

Sweden. Authors have also concerned that through questionnaire the aim of credibility,

reliability and diversity in information can be achieve. Content and type of questions,

structure, formatting and sequence of questions in questionnaire are critically developed.

As questions are foundation of questionnaire (Frankfort & Nachmias, 1997), authors put such

questions in questionnaire which clearly address to different insides of research questions

such as cultural diversity, acculturation, and ethnic consumer from financial service

providers perspective. Authors have used mixed type of questions in the questionnaire such

as open and close ended questions. The reason for using open ended questions is because this


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particular study is based on qualitative strategy therefore it needs to plant such questions in

front of respondents which provide them opportunity to give answer with independently. On

the other side close ended questions are used to get information with specified value where

authors found that respondents would like to give specific information.

Format of questionnaire is crucial part in questionnaire design because it will develop

respondents interest while filling it therefore authors developed different parts of

questionnaire and try to locate all of them in such logical manner which can provide easy way

for respondents to complete the questionnaire.

3.2.3 Elaboration of QuestionnaireQuestionnaire has been organized based on theoretical analysis of different literatures

concerning cultural diversity, acculturation, segmentation and different methods of offering

products. The aim of preparing questionnaire was to gather the views from different financial

services regarding their ongoing practices for accommodating ethnic consumers in Sweden

and bearing in mind different perspective such as cultural diversity, acculturation level which

differentiate ethnic consumers from mainstream consumers. The overall construction of

questionnaire has been divided into four main sections which are cultural diversity,

acculturation, segmentation, and product offering.

Questionnaire covered the cultural diversification among Swedish consumers in terms of

financial companies views. Respondents will be ask for any specific changes they made in

their marketing tactics such as hiring employees from different ethnic background as in a

multicultural marketplace, marketing enterprises usually try to hire and operated by people of

different ethnic backgrounds which helps them to understand, identifying and serving the

needs of consumers of different ethnic backgrounds (Jamal, 1996) and providing product

information in different languages since marketers needs to respond to consumer differences

with differentiation in marketing and segmentation strategies. (Sheth et al., 1999)

In the survey respondents were asked that how banks are attaining ethnic market segments

adopting different levels of marketing mix differentiation such as standardize marketing,

product adaptation, advertising adaptation, and complete ethnic adaptation. (Cui, 1997) and

which cultural factor they consider while formulating their marketing strategy. Respondent

was also asked about the importance of acculturation level and cultural factors they consider


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while crafting their offerings and how much cultural diversity influencing their offerings to

define ethnic group.

Lastly respondents were asked about their opinion about their future prospects for ethnic

marketing and their intentions to formulate strategies considering ethnic market specifically.

3.2.4 Selection of RespondentsSince selection of respondents and its number from overall population mainly focus on the

nature of study (Frankfort, Nachmias, 1997), therefore in this case authors decided to select

different respondents for interviews and for questionnaire. This study focuses on banks and

their ethnic consumers in Sweden which leads authors to select selective number of service

providers and consumers from different ethnic group in Sweden.

3.2.5 Data and its valuationAuthors used different type of questions questionnaire including dichotomous questions,

checklists, rating, ranking and open questions (fisher, 2004) and so for analysis and

assessment purpose each type of question has different value to assess and analyze. Each

question has attributed with specific value which is identifiable and measurable for effective

analysis.

Dichotomous questions are analyzed using percentile method while different other methods

are used such as mean and standard deviation to analyze the data got from banks and ethnic

consumers.

For rating questions, authors value these questions from value 5 to 1 as from Most

important for 5 and Not important for 1. For describing of different levels of

respondents choice in these questions authors will calculate value by the help of formula:

Value= Total Score / total number of respondents

While Total Score calculated by: Total Score= (5*Total number of respondents to choose

choice of 5)+ (4*Total number of respondents to choose choice of 4)+(3*Total number of

respondents to choose choice of 3)+ (2*Total number of respondents to choose choice of


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2)+ (1*Total number of respondents to choose choice of 1). After it value then

corresponds with different score range which was developed by formula:

Interval of value in question= (Highest value-lowest value)/ total number of intervals in

values = (5-1)/5 =0.80

From this formula following value range was developed and their corresponding meaning:

Value Range Meaning

1.00-1.80 Attribute attached with choice 1 in question





And in last, adding open questions in questionnaire is good idea (Fisher, 2004) to give

freedom to respondents by which they will give answer in the way what they want. Authors

also include open questions in questionnaire just to let respondents to feel liberty in answering

of question which are relating to qualitative perspective.

3.3 Limitation of StudyAs this study is qualitative-based research and authors carried out two different surveys from

banks and consumers therefore authors might not be able to collect precise and accurate

information regarding different topics to address research question. The other major limitation

of method choice is about questionnaire carrying open and close ended both types of

questions. Authors send appropriate questionnaires to different respondents who are working

in their organizations head offices and different ethnic consumers which are using banking

services in Sweden and for that authors adopted the strategy of survey because of time limit

for this research. Furthermore, open ended questions may return with lot of irrelevant

information which can effect over all study while analyzing it with theories. Getting

appointment and information from banks officials has been very difficult experience since

most of the respondents deny giving information for this study


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4. Findings & AnalysisIn this chapter findings from consumer survey and survey from banks has been analyzed

based on the common theoretical framework authors developed for this study.

4.1 Banks and their ethnic market in SwedenSweden is one of the countries where immigrants ratio is increasing every year because of its

stable political and economic situation and peaceful living environment. Immigrants moving

to Sweden is mainly due to any conflict in their home countries like Iraq, in search of better

earning, looking job opportunities and high-standard living. So authors can categories

immigrants on two broad categories, one who came due to any political basis and others are

economical. Furthermore, there are also a kind of temporary immigrants; students, who come

every year in large number and search financial products according to their need. According

Hgskoleverket Annual Report (2008), quarter of 81,300 new university entrants came abroad

for higher studies in Sweden. Therefore, every year about 20,000 foreigner students come to

Sweden having different cultural background with different needs.

Table 1: Swedens Preliminary Population Statistics by month Changes up to and including

31 March 2009 (Sweden Population Statistics, 2009)

Year Population at the end of period Immigrants

1998 8 854 322 49 391

1999 8 861 426 49 839

2000 8 882 792 58 659

2001 8 909 128 60 795

2002 8 940 788 64 087

2003 8 975 670 63 795

2004 9 011 392 62 028

2005 9 047 752 65 229

2006 9 113 257 95 750

2007 9 182 927 99 485

2008 9 256 347 101 171


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Now look why consumer from different ethnic background is important for different financial

service provider to target them and offer products. Population of Sweden is currently now

more than nine million (table 1) while immigrants number increasing year to year. In 1998,

more than 49391 immigrants were inducted in Swedens population while this number is

raised to 99485 in 2007 and 101171 in 2008 which indicate that there is more than 51%

increase in immigrant ratio in 2008 from immigrants in 1998. Table(1) figures show that

770229 immigrants has been added in last ten years which are now 8.32 % of total population

Figure 4 which shows its significance in term of their needs for financial products. As Sweden

has welcoming policies towards immigrants, expectation of immigrants for fulfilling of their

needs become high and they look for such products which would be closer to their culture and

belief.

Figure 4: Population immigration ratio in Sweden (Sweden Population Statistics, 2009)

People, coming from different ethnic background and having different consumer behavior,

could become potential customers for banks to expand their market share. Therefore, primary

step to recognize their different cultural and belief needs with service quality factor so that

bank can bring them in their customer net.

As Maslows Hierarchy of Needs present in universal model such as Self-actualization need

which is highly directed to individual but in case of collectivistic cultures, actualization is not

for individual but in the interest and honor of the group (Mooij, 1998), therefore careful

identification and understanding different characteristics of ethnic group and their needs isimportant for segmentation of market. Responding to the question regarding awareness about


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changes in population regarding immigration, four banks including Swedbank, SEB, Nordea

and Lnsfrskringar are aware and all three have experience to serve different ethnic groups

(Table2).

Table 2:Banks and their major ethnic customers nationalities

Organization Swedbank SEB NordeaLnsfrskringar

BergslagenAware of the changes happeningin the characteristics of theSwedish population

Yes Yes Yes Yes

Experience of serving customersfrom different ethnic groups?

Yes Yes Yes Yes

Nationalities to serve other than

customers from Nordic countries?

Nationality 1 Americans Iraqi Nigeria Turkish

Nationality 2 English Indian Indian England

Nationality 3 Iranian Chinese Chinese Thailand

But interestingly, all four are targeting different ethnic groups of different background. SEB

and Nordea both are targeting Chinese and Indians while SEB is considering Chinese as

potential and on the other hand Nordea is serving those customers who have Nigerian ethnic

background. Lnsfrskringar has more interest in the customers who have Turkish, England

and Thailand national identity. Looking at immigration statistics from figure 5, it has been

found that most prominent immigrant figure is about 58988 Iraqis from 2002-2008. On the

other hand in table 2 it has been found that most such as Nordea and Lnsfrskringar are not

dealing or providing services exclusively to them. Also Indian and Chinese number is less

than Somalian and Thailand but banks are neglecting Somalian and Thailands background

consumers but considering Indians and Chinese. Interestingly Lnsfrskringar is missing

Iraqis, Somalian and Chinese who have more in number than Turkish. And in last Iranian has

reasonable figure of 12100 but only Swedbank is considering them as potential for services.


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Figure 5: Total immigrants figure came between the periods of 2002-2008

From above discussion, it shows that Banks strategy in identification and recognition of

characteristics of different ethnic group is not up to mark because missing the largest

community of Iraqis couldnt give positive outcome in their business. Furthermore, many

ethnic groups in figure 5 have same characteristic group like Iraq and Iran could have some

common characteristics including culture, language, belief and they could be combined onthese basis. But still banks are not combining different ethnic group and considering them

individually.

4.2 Ethnic consumers as a potential market segmentAn interpretation from the statistics provided by SCB (Statistiska centralbryn) confirmed that

ethnic groups are becoming an emerging market segment for business. During past few years

Sweden is experiencing increment in immigration ratio subsequently since various ethnic

groups from different countries are immigrating to Sweden based on several grounds and

becoming considerable part of Swedish overall population (Table 3). These ethnic groups

contribute sufficient part in enriching economy and are significantly different from

mainstream consumers based on their race, religion, language group, a shared history and

origin, nationality, etc. (Berthoud et al., 1997; Phinney, 1996a, b; Venkatesh, 1995).

According to the findings in consumer survey of 800 population sample there are 40.25%

people who speak English, 21.25% Thai, 9.75% Polish, 8.25% Russian, 7.37% Arabic,

7.125% Persian(Farsi), and 0.875% other languages.


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Table 3: Immigration Statistics (Citizens outside the Nordic) by country of birth, Sex

2004 2005 2006 2004 2008

China (excluding Hong

Kong) Men 500 613 833 1039 1196

Women 1019 1099 1161 1374 1506Total 1519 1712 1994 2413 2702

Iran (Islamic Republic

of) Men 660 502 917 714 893

Women 722 593 1055 769 917

Total 1382 1095 1972 1483 1810

Iraq Men 1292 1454 6807 9201 6161

Women 1685 1458 4009 6067 6516

Total 2977 2912 10816 15268 12677

Poland Men 1113 1744 3409 4215 3820Women 1342 1674 2934 3289 3145

Total 2455 3418 6343 7504 6965

Thailand Men 371 451 515 532 563

Women 1711 1675 1962 2078 2543

Total 2082 2126 2477 2610 3106

other countries Men 10758 12725 19124 20430 22002

Women 10235 11081 16639 16900 18369

Total 20993 23806 35763 37330 40371

Source: SCB (Statistiska Centralbryn)

Based on a survey from banks show that almost all the Swedish banks in survey are aware of

changes happening in the characteristics of Swedish population and all of them are

experiencing customers from different ethnic groups in their banks which are using different

banking products.

Also from consumer survey it has been found that 100% of population size is using banking

services of one or more banks. These consumers from survey are using almost all the banking

services which different banks are offering to their consumers such as basic account, ATM

card, credit card, loan, internet banking, payment and money transfer, insurance and pensions.

4.3 Importance of different cultural factorsVarious scholars has coined different factors of measuring acculturation level to define ethnic

group such as language, reference groups, intermarriage, national identity, culture (Laroche,

Kim and Tomiuk 1998; Lee and Um 1992; Pealoza 1989; Suinn, Rickard-Figueroa, Lew and


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Vigil 1987; Valencia 1985). From the result of respondents from bank authors calculate the

value for importance of each factor from banks perspective i.e culture, religion, national

identity, language, adaptation of local culture by immigrants on 5 to 1 rating scale.

Table 4: Total score and mean value for factors by banks

Swedbank SEB SEB Nordea Lnsfrskringar MeanStd.

Dev

Culture 1 4 5 4 2 3.2 1.64

Language 3 4 4 4 3 3.6 0.54

Religion 1 2 3 1 1 1.6 0.89

National

Identity 1 3 3 1 3 2.2 1.09

Acculturation 1 4 4 1 2 2.4 1.51

Table.4 depicts different values for importance of different factors such as culture, language,

religion, national identity, and acculturation for different Swedish banks while targeting

ethnic groups in Sweden. Looking at the table authors can analyze that except language

Swedbank do not consider any other factor important for them which suggest that Swedbank

currently is not considering these factors for targeting ethnic consumers. Looking at the datafrom other banks such as SEB which is considering the importance of culture, language and

acculturation and almost neutral about religion and national identity which suggest that SEB

is much serious about targeting ethnic consumers. Respondent from Nordea suggest that they

only give importance to culture and language and Lnsfrskringar bank gives less important

to culture religion and acculturation while they are neutral about language and national

identity.

While Interval of value in question= (Highest value-lowest value)/ total number of intervals in

values = (5-1)/5 =0.80. Since the interval value for rating 5 scale is 0.80 the value range for

importance level of each aspect is 1.00 1.80 (Not Important), 1.81 2.60), 2.61 -3.40

(Neutral), 3.41 4.20 (Important), 4.21 5.00 (Most Important).

In Table.4 mean value of importance level for each factor has calculated based on survey

from banks. As the mean value for culture calculated is 3.2 it falls in the value range of 2.61

3.40 (Neutral) with the standard deviation value of 1.64 suggesting that respondents response


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largely deviating from the mean value, considering language as another factor the mean value

is 3.60 which falls between 3.41 4.20 (Important) with standard deviation value of 0.54

suggest that response for this factor from different respondents doesnt deviate from the mean,

value for religion is 1.6 which falls between 1.00 1.80 (Not important) with standard

deviation of 0.89 also suggesting not much deviation from mean, value for national identity is

2.20 which falls between 1.81 2.60 (Less Important) with standard deviation of 1.09 and the

value for acculturation is 2.40 which falls between 1.81 2.60 (Less Important) having larger

standard deviation from the mean.

Table 5: Distribution of mean value for importance of different factors by banks

Value Range 1.00-1.80 1.81-2.60 2.61-3.40 3.41-4.20 4.21-5.00

Not

Important

Less

ImportantNeutral Important

Most

Important

Culture 3.20

Language 3.60

Religion 1.6

National Identity 2.20

Acculturation 2.40

These figures from Table 5 indicate that most of the banks are giving more importance to

language and culture since the mean value of these factors are much higher than other factors

such as acculturation, national identity and religion.

In the consumer survey people has been asked about their opinions about different aspects

measurement factors on 1 to 5 rating scale from different questions. In these questions

importance of culture, language, religion, national identity, and acculturation has been

focused.


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Table 6: Total score and value for factors by ethnic consumers

Factors Mean Value Std. Dev

Culture 2.82 1.14

Language

Text Material 2.80 1.14

Employee 2.83 1.15

Religion

Define on religion 2.65 1.31

Consider religious 2.40 1.18

National Identity 3.56 0.97

Acculturation

Swedish Fluency 3.48 1.35

Swedish Events 3.69 0.98

In Table.6 the value for culture from consumer survey calculated is 2.82 falls in the value

range of 2.61 3.40 (Neutral) with 1.14 standard deviation, mean value for the importance of

language for consumer is 2.81 as the value for importance of text material in consumer

language is 2.80 with standard deviation 1.14 and for the importance of employee speaking

consumer language is 2.83 with standard deviation 1.15 so importance of language falls

between 2.61 3.40 (Neutral), average value for the importance of religion for consumer is

2.52 as mean value for opinion from consumer defining themselves by religion is 2.65 and

value for opinion of consumer consider themselves as religious person is 2.40 so overall

importance of religion for consumers falls between 1.80 2.60 (Less Important), value for

national identity is 3.56 with minimum deviation of 0.97 which falls between 3.41 4.20

(Important) and for finding acculturation level value they average value is 3.85 which falls

between 3.41 4.20 (Important) as value for consumers ability to speak Swedish is 3.48 with

standard deviation of 1.35 and involvement in Swedish events is 3.69 with 0.98 deviation

from the mean value.

Considering the mean values for all above mentioned factors they are categorize in different value

range in table 7. While Interval of value in question= (Highest value-lowest value)/ total

number of intervals in values = (5-1)/5 =0.80. Since the interval value for rating 5 scale is

0.80 the value range for importance level of each aspect is 1.00 1.80 (Not Important), 1.81

2.60), 2.61 -3.40 (Neutral), 3.41 4.20 (Important), 4.21 5.00 (Most Important).


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Table 7: Distribution of mean value for importance of different factors by banks

Value Range 1.00-1.80 1.81-2.60 2.61-3.40 3.41-4.20 4.21-5.00

Strongly

DisagreeDisagree Neutral Agree

Strongly

Agree

Culture 2.82

Language2.80+2.83 /2

= 2.81

Text material 2.80

Employee 2.83

Religion2.65+2.40/2

= 2.52

Define on

religion2.65

Considerreligious

2.40

National

Identity3.56

Acculturation3.48+3.69/2

= 3.585

Swedish

fluency3.48

Swedish events 3.69

Values for different factors such as importance of culture, importance of language

(Importance of text material in consumer language & importance of employee speaking

consumer language), importance of religion (opinion from consumer defining themselves by

religion & opinion of consumer consider themselves as religious person), importance of

national identity and for finding acculturation level (ability to speak Swedish, and

involvement in Swedish events) has been calculated in Table.6 from consumer survey. Since

the interval value for rating 5 scale is 0.80 the value range for importance level of each aspectis 1.00 1.80 (Not Important), 1.81 2.60), 2.61 -3.40 (Neutral), 3.41 4.20 (Important),

4.21 5.00 (Most Important).

Considering these factors such as culture, language, religion, national identity and

acculturation result from consumer survey indicate that consumer have more importance for

acculturation and national identity comparing culture and language. After comparing the both

result from bank survey and consumer survey authors found that banks are not targeting the


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importance of consumer national identity and acculturation factor which authors found are

more important for consumer.

4.4 Effects of cultural diversity on consumer behaviorAs Pires, Stanton, Cheek, (2003) elaborated that with the passage of time, countries are

becoming more culturally diverse having habitants with different language, traditional

practices, belief, and family system, ethnic and national identity. Therefore multicultural

diversity should be considered as positive factor by marketers while developing marketing

strategies because now many opportunities and benefits are attributed with multiculturalism

and multicultural society (Wilkinson,Cheng ,1999). All this show that in culturally diverse

societies, consumer behavior is widely effected by national and ethnic identity, demographic,

belief and all other above said factors (Burton, 1996) while Jamal (2001, p.1599) pointed it as

marketing practices are embedded in society and have significant macro level impact on the

way consumer and maintain their identities.

Now authors look on different characteristics of culture which are asked in consumers survey

(Question#24 of consumer survey). Question shows the customers opinion regarding

importance of different characteristics of culture while living as immigrants. All these

questions illustrate that how different factors are important for recognizing people belonging

to different ethnic groups. About 816 people responded these questions belonging to different

cultural or regional group. Values range from Strongly Disagree to Strongly Agree, labeled

with 1 to 5 respectively.

4.4.1 Self Identity and cultural groupIn reply of this question, more than 117 respondents were strongly agree followed by 361

with Agree and 251 were neutral in supporting of this statement. While 87 respondents fall in

disagree option. By using the formula mentioned in Appendix (A), mean value authors

calculated is 3.57 which fall under the category of Agree. Its mean majority of respondents

feel that strong relationship exists between their self-identity and cultural group and it reflect

that they have still concern and attachment with their cultural group.


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4.4.2 Involvement in cultural groupPeople who belong to different cultural or regional groups involve within their group with

different strength; strong or weak. Some of them attach with their group strongly and involve

within the group by different ways and activities while someone has weaken relationship and

involvement. Among 816 respondents, authors choose two cultural/regional groups, Thai and

Swedish to analyze them that to what extent they are involved in their cultural groups.

Total number of Thai respondents are 145, among 145, 18 respondents were strongly agree

followed by 119 with agree to the statement that how much they are involved in their cultural

group. While only 8 answered neutral and none among them are disagree or strongly disagree

to the statement. By using the formula (Appendix A) value is calculated is 4.06 which shows

that respondents are agree to the statement that they are involved in the their group.

While among 185 Swedish-cultural/regional groups respondents, 12 were strongly agreed to

the statement, 69 agree and 62 remained neutral. Total of 39 respondents fall under disagree

and strongly disagree category. Value calculated by formula (Appendix A) is 3.21 which fall

under Neutral category. It seems that people belong to Swedish cultural group are neither

agree or disagree to the statement but they are at neutral position.

Analysis of both groups shows that Thai are more involved in their regional group comparing

Swedish-group and it can suggest that to whom marketers should target as different potential

customer and to whom marketers could bring in their mainstream customers.

4.4.3 Swedish as first languageQuestions regarding language are significant in current study because most of immigrants

come from that country where Swedish is not being used thats why they feel problems in

communication with banks. in responding of this question, 598 respondents among 816 were

either answer strongly disagree, disagree or were neutral and the value calculated by formula

(Appendix A) is 2.27 moderate and this value is much near to disagree. It shows that most of

the respondents have other language than Swedish as first language.

4.4.4 Use and fluency in SwedishData gather in two statement could be interesting for readers that more than 617 respondents

answered that they are either fluent in Swedish or can speak and mean value got by help of


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formula (Appendix A) is 3.44 which fall under Agree category. On the other hand, when

authors asked which language they are used to speak with friends and family, 529 respondents

replied that they used language other than Swedish and 129 falls in neutral category while

only 155 respondents disagree from statement. Facts and figures show that regardless

weather people belong to different ethnic group can speak Swedish or not but they prefer to

speak the language whom they feel comfort and easiness.

4.4.5 Ethnic purchase behaviorThis question addresses the issue weather customers buy products on such store that are

labeled by any ethic community. It is interesting for analysis because authors can learn that

what customers attitude towards visiting and buying products is. In responding to this

question, 210 respondents are agree and strongly agree towards this approach while 294

respondents are fall under strongly disagree and disagree category and 312 respondents are

neutral while responding it. It shows that it is not important for people to visit ethnic store.

4.4.6 Importance of religionReligion is one the characteristic of culture which consider being very important in some

countries. Question regarding religion can define the lines that weather it is important factor

while consider any ethnic groups needs or not. On responding question I define myself

based on my religion, only 145 respondents were agree and strongly agree to statement while

392 respondents were strongly disagree and disagree to statement, and 278 among total

population were neutral. It shows that for accessing financial products, religion is not

important for different immigrants. And almost same ratio was observed in question I

consider myself as very religious. Value calculated by formula (Appendix A) for statement

6 is 2.65 while for statement 7, it is 2.40; both fall under the category of moderate, having

trend towards disagree.

4.4.7 Celebration of religion and different eventsCelebrating religious events can indicate how much persons life is attached with religion and

to what extent. About 312 respondents among 816 are agree and strongly agree that they

celebrate religious event more based on tradition than faith while 230 respondents are against

to this statement and 283 are neutral. While, interestingly, 529 respondents say they are agree

and strongly agree in response of I celebrate typical Swedish Events (midsommar, jul) in a


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Swedish way. Results of both statements show that while celebrating different religious

events, minorities/ethnic group participated fully in traditional Swedish events which are a

kind of adaptation of local culture. And also it shows that ethnic groups have less concern in

religion while finding of products.

After analyzing culture prospect that how important culture and its value is for customer, now

authors look on different aspects of cultural understanding by different banks.

Table 8: Different Banks in Sweden and data about their customer research

Swedbank SEB SEB NordeaLnsfrskringar

Bergslagen

Conduct any

research to knowcustomer type

Yes Yes Yes Yes Yes

How to formulatecollected data formarketingstrategies

Departmentdealing for

thosecustomers

Activities tomaintainpositioning

Collaborationwith ethnic

networks andsponsorships

(IFS, Syriansak

FC, Assyriska)

Cooperationwith IFS,Munktell

service Park

We interactwith MDH

with alltheir

students

Special focus onethnic groupswhile positioningyour company?

Yes Yes No Yes

On asking question about any research conducted by banks to know customer type, all banks

replied positive but none gave clear answer in replying of question that how do they

formulate collected data for marketing strategies for new customer type other than

mainstream customers. For maintaining positioning among ethnic consumers, SEB adopted

the way by collaborating with different ethnic network and by sponsorship while Nordea only

focus on interaction with students in universities. On this point, SEB is adopting relatively

quite effective strategy to maintain its positioning. Interestingly, all banks focus on different

ethnic groups while positioning their company.


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4.5 Importance of Acculturation in decision makingRedfield, Linton and Herskovits (1936) define acculturation as those phenomena which

result when groups of individuals having different cultures come into continuous first-hand

contact, with subsequent changes in the original cultural patterns of either or both groups

(p.149) and since consumer acculturation is very important factor for the consumption process

of immigrants and decision making of selection of products/services it highlight the

importance of identifying and utilizing acculturation level of immigrants for business.

In order to find out the importance of acculturation, conducted survey from Swedish banks

and calculation in Table.3 suggest that the value for importance of acculturation for them is

2.40 which falls between 1.81 2.60 (Less Important) See Table.3. Since the values fallsunder range from 1.80 2.60 it feels like banks are not giving importance to acculturation

factor for targeting ethnic consumers.

The constructs of measuring acculturation rely on measures such as language, reference group

influence, adherence to cultural customs, and food preferences to operationallize them (Hui,

Joy et al. 1992; Webster 1994). In relation to find out the acculturation level among the

immigrants in Sweden different aspects has covered in survey from ethnic consumer.

Respondents were asked about their opinion on different factors in consumer survey on rating

5 scale which are strongly agree, agree, neutral, disagree and strongly disagree.

4.5.1 Cultural IdentityThe most of the important factors to find out acculturation level of ethnic consumers is to look

at how they identify themselves in which cultural group. It can help authors to find out that

ethnic consumers are still maintaining their native culture in Sweden or they are inheriting

Swedish culture within themselves and becoming part of Swedish culture.

Figure 6: Identification of cultural group among ethnic consumers


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Based on findings through consumer survey where respondents has been asked about their

identification of cultural group they belong too and interestingly majority of the respondents

suggest that they are still identify themselves as their own native culture since be looking at

Figure 6 only 43% of respondents assume themselves as part of Swedish culture and rest from

other cultural group. This indicates that although their large portion of ethnic consumers

adopting Swedish culture but still there is enough room for majority of ethnic consumers to

become part of host culture.

4.5.2 Fluency of Swedish LanguageIn consumer survey respondents were asked about the agreement level for their ability to

speak Swedish language. Bellow is the graph depicting the percentage ratio of respondents

according to their level of agreement on Swedish speaking ability.

Figure 7: Graphical illustration of respondents ability to speak Swedish language fluently

Based on findings among ethnic consumer survey illustrated in figure 7, it has been found

that 28% of the respondent were strongly agree that they can speak Swedish fluently, 30% of

respondents were agree, 19% were neutral, 9% were disagree and 14% of repsondents were

strongly disagree about their ability to speak Swedish fluently. These statistics suggest that

ethnic consumers are more tends to learn language in order to acculturate themselves to

Swedish culture.

4.5.3 Celebration of Swedish EventsAnother important factor of celeberating Swedish events has been asked in consumer survey

from ethnic consumers and bellow given graph is depicting percentage ratio of respondents

about their agreement level on celebrating Swedish events.


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Figure 8: Graphical illustration of Inolvement and celebration of Swedish events by ethnic

consumers

In connection to find out the acculturation level among ethnic consumers respondents were

asked about their agreement on celeberating Swedish events. Though these ethnic consumers

are from different ethnic background and have very different culture from Sweden. Figure 8

illustrates that 17% of respondendts were strongly agree on a fact that they celebrate Swedish

events like natives, but the larger portion of 48% of respondents chose agree for the fact they

often celebrate Swedish events, 22% of respondents were neutral, Based on findings among

ethnic consumer survey it has been found that 28% of the respondent were strongly agree that

they can speak Swedish fluently, 30% of respondents were agree, 19% were neutral, 9% were

disagree and only 4% of repsondents were strongly disagree about their involvement and

celebration of Swedish events. These statistics also suggest that ethnic consumers are more

attached and involved in Swedish culture and they like to celebrate Swedish events.

4.5.4 Swede as Close FriendsAnother important factor for finding the acculturation level of ethnic consumer is to find outtheir reference groups such as close friend. In the consumer sure respondents were asked

about their close friends circle and following graph is depicting findings about the percentage

ratio of respondents suggesting Swedish as their close friends


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.

Figure 9: Graphical illustration of Swed as close friends for ethnic consumers

According to survey many respondents assume Swedish as their close friend but still the

major portion of sample suggest that are having close friend from their own nationality.

Figure 9 illustrates that 58% of respondents suggest their close friends from their own

nationality, 30 % of respondents suggest Swedish as their close friends, only 2% of

respondents suggest their close friends both from their own nationality as well Swedish and

remaining 10% respondent suggest people from different other nationalities as their close

friends.

4.5.5

Factors Affecting Selection of banks

In consumer survey respondents has been asked about different factors such as product

information in their own language, having employee at bank who can speak their language

and banks interest in their culture in selection of products and services.

Table 9: Important factors for decision making in selection of banksConsumer opinion Swedish culture Other culture

Mean Mean

If bank offered information in my own language I

would switch to that bank2.65 2.92

If bank had an employee speaking my language I

would switch to that bank2.68 2.94

If another bank showed interest in my culture I

would switch to that bank 2.58 2.81


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In Table 9 all the respondents has been divided into two different categories in which 43% of

respondents which identify Swedish culture as their cultural group have lower mean value for

all the factors which can contribute in their decision for selection of banks than other 67%

respondents identifying themselves with other cultural group.

4.6 Marketing Strategy to Ethnic consumers by Swedish banksMany of the scholars has emphasized on the importance of ethnic consumers and stressed the

worth of understanding ethnic minority subculture and the associated cultural dimensions to

marketing (Bouchet, 1995; Burton, 2000; Costa and Bamossy, 1995; Penaloza and Gilly,

1999). Marketers are attaining ethnic market segments adopting different levels of marketing

mix differentiation such as standardize marketing, product adaptation, advertising adaptation,

and complete ethnic adaptation and which cultural factor they consider while formulating

their marketing strategy (Cui, 1997). Authors have found in survey from banks 60% of the

respondents from banks that their banks has adapted standardize marketing strategy to attract

ethnic consumers and 40% of respondents suggested that they have only adapt some

product/services for ethnic consumers. There was no response from banks regarding

advertisement adaptation or complete ethnic adaptation for ethnic consumers by banks.

Table 10: Banks current marketing strategy

Swedbank SEB SEB Nordea Lnsfrskringar

Marketing strategy Standardize StandardizeProduct/

services

Product/

servicesStandardize

Standardize

marketing enoughNo Yes No No Yes

Different services

by ethnicconsumers

Yes Yes Yes Yes

As matter of fact four out of five respondents from banks accept that different services are

being asked by these ethnic consumers from native banking consumers. These required

service by ethnic consumers are such as language translation, Interest free banking, Internet

banking in English. Also during an interview with Swedbank employee it has been found that

some immigrants feel repulsive when they have been asked for the source of large sum of


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deposit, since its Swedish banking regulation and those immigrants didnt face such

experience in their home country

On the other hand considering their current practices, here is very interesting point from

findings that 60% of respondents from banks suggest that their banks has adapted and

practicing standardize marketing strategy for ethnic consumers but at the same time 60% of

respondents believes that standardize marketing is not enough for banks to target ethnic

groups effectively and their bank is currently working on this aspect. Looking at the

information from SEB authors can analyze that though both of the respondents suggest that

their bank has adopt standardize marketing but one of the respondents from its branch office

think that standardize marketing is not enough for ethnic consumers while respondent from

SEB head office think that standardize marketing is enough for ethnic consumers since ethnic

market in Sweden is in its infant stage. Rest of the respondents suggest that standardize

marketing is enough for Swedish bank to target ethnic consumers since this matter is new for

Swedish companies and they have not yet understood the potential of ethnic consumers.

Three respondents from different banks suggested that their banks have implemented strategy

by opening a customer service centers where more languages are being available for different

ethnic customers. Also one respondent from a major bank told that their bank is targeting and

have collaboration with different ethnic network across the Sweden such as IFS, Syriansak

FC, Assyriska.

4.6.1 Marketing Mix, Communication, banks and Ethnic customersNow looking the scenario that when an individual come into a different cultural society,

actually he brings cultural values with himself which is integrated with consumer behavior

and contribute in development of any additional value in new culture and consumer behavior

in host society. On the marketer end, marketing strategies are contributing effect on sides,

consumers end and culture. Here marketers get important role to integrate main stream

consumers behavior with ethnic consumers behavior, develop marketing mix according to

their consumer behavior and provide solutions.

From Fig 2, it shows that culture effect on consumer behavior and ultimately consumer

behavior and culture merge with each other and develop some new values in society and

marketers can address these new values by their marketing communication strategies.


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Now look on the result that which factors are important for consumers when he select bank

for his needs. This selection actually emerge after matching of his cultural needs which effect

on his behavior regarding selection of banks. Authors included different factors on choosing

of banks including of Location, Brand, Fee and Interest rate Service quality, Language, family

and friends thought (Figure 2, and Table 11). Mean of 816 respondents answer is reflecting

quite interesting results that most important factors for choosing of banks are fee and interest

rate, service quality, and service from banks. Then customers turned to language of

communication, brand and location as important factors for them while family and friends

thought are not important for customers in selection of products. Results show that customers

mainly depend on such factors which he faced while dealing and communicating with banks

especially language, services and, fee and interest charges while family doesnt effect on his

decision.

Table 11: Different

Documents

Role Of cultural diversity and acculturation in ethnic marketing of banking service in Sweden