______________________________________________

Dissertation

Ikea marketing strategy for customer satisfaction.

submitted

in partial fulfillment

for the award of the degree of

Bachelor of Commerce Honours

in the Department of Commerce

Under supervision of Submitted by

Ms Savita Panwar moh. Shoaib chauhan

161002012
School of Business and Commerce

Manipal University Jaipur

2019
 CERTIFICATE

This is to certify that the project entitled “”, herewith submitted by mohd shoaib chauhan in
partial fulfilment for the degree of “Bachelor of Commerce Honours” is an authentic record
of the research work carried out by him/her under my supervision and guidance at School of
Business and Commerce, Manipal University Jaipur. This work has not been submitted for any
other degree or diploma in this university.

(Ms Savita Panwar)

3
 Declaration
I hereby certify that dissertation entitled “”, here with submitted in partial
fulfillment for the award of “Bachelor of Commerce Honours” School of
Business and Commerce, Manipal University Jaipur is an authentic record of the
research work carried out by me. The matter embodied in this dissertation has
not been submitted for the award of any other degree or diploma.

(Harshit poonia)

4
 ACKNOWLEDGEMENT

I would like to thank my Project Guide Prof. Savita pawar for her immense
guidance, valuable help and the opportunity provided to me to complete
the project under his guidance. I would like to thank all faculty members
of School of Business And Commerce of Manipal University for guiding and
supporting me in the completion of project from time to time. Last but not
the least, my gratitude to great almighty and my parents without whose
concerned and devoted support the project would not have been the way it is
today.

5
Abstract
Social media platforms have over the years have proven to be one of the most reliable and
convenient channels of marketing. However, the effectiveness of social media marketing in
international business contexts is influenced by a multitude of factors including cultural
differences between international markets. In this context, the current study opts to assess the
effectiveness of social media marketing in cross-cultural contexts by considering the case of
IKEA’s social media marketing in China and the UK. The study adopts the Hofstede culture
dimensions framework for assessing cultural differences between the UK and China while
customer perception and satisfaction with social media marketing are used for estimating the
effectiveness of social media marketing in cross-cultural contexts. Existing studies in this area
has revealed that the level of indulgence of a culture is the most important dimension of
Hofstede culture dimensions framework to influence social media marketing as customers from
indulgent cultures are more satisfied with social media marketing of a brand. The current study
thus focussed on assessing the effect of culture on social media marketing effectiveness by
focusing on the difference in the level of indulgence between the UK and China. The data
required for the study was collected from 50 customers of IKEA each from China and the UK
using a survey. The collected data was analysed using ANOVA analysis to determine the
variance in mean responses of Chinese and UK customers. The findings of the study show that
the cultural context of a customer influences how the customer perceives social media
marketing of a brand and this in turn influences customer satisfaction with social media
marketing of a brand. This is evident from the comparatively higher level of engagement and
satisfaction shown by UK customers with IKEA’s social media marketing when compared to
Chinese customers. Hence this study concludes that the level of indulgence of culture has a
significant effect on social media marketing effectiveness. The study also recommends the use
of social media only offers, monthly promotion campaigns and localised contents as
approaches for improving social media marketing of IKEA.

6
Contents
Abstract ................................................................................................................................................... 6
List of Figures, Charts and Tables .......................................................................................................... 9
Chapter 1: Introduction ......................................................................................................................... 11
1.1 Introduction ................................................................................................................................. 11
1.2 Research Background ................................................................................................................. 11
1.3 Research Rationale...................................................................................................................... 12
1.4 Research Aim .............................................................................................................................. 13
1.5 Research Objective ..................................................................................................................... 13
1.6 Research Question ...................................................................................................................... 14
1.7 Significance of the study ............................................................................................................. 14
1.8 Summary ..................................................................................................................................... 14
Chapter 2: Literature review ................................................................................................................. 15
2.1 Introduction ................................................................................................................................. 15
2.2 Social media marketing............................................................................................................... 15
2.3 Cross-cultural marketing strategies ............................................................................................. 15
2.4 Significance of social media marketing ...................................................................................... 16
2.5 Factors affecting social media marketing ................................................................................... 17
2.6 Hofstede’s cultural dimension theory ......................................................................................... 17
2.7 Effectiveness of social media marketing in the cross-cultural context ....................................... 19
2.8 Link between present and previous studies................................................................................. 21
2.9 Conceptual framework ................................................................................................................ 21
2.10 Summary ................................................................................................................................... 22
Chapter 3: Research Methodology........................................................................................................ 23
3.1 Introduction ................................................................................................................................. 23
3.3 Research Philosophy ................................................................................................................... 23
3.4 Research Approach ..................................................................................................................... 24
3.5 Research Design.......................................................................................................................... 24
3.6 Research Strategy........................................................................................................................ 25
3.9 Data analysis plan ....................................................................................................................... 27
3.10 Research limitations .................................................................................................................. 28
3.11 Ethical and accessibility issues ................................................................................................. 28
3.12 Summary ................................................................................................................................... 28
Chapter 4: Data analysis and interpretation .......................................................................................... 30
4.1 Introduction ................................................................................................................................. 30
4.3 ANOVA Analysis ....................................................................................................................... 32
4.4 Hypothesis testing ....................................................................................................................... 49

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 4.5 Discussion ................................................................................................................................... 50
4.6 Summary ..................................................................................................................................... 50
Chapter 5: Conclusion and Recommendations ..................................................................................... 52
5.1 Introduction ................................................................................................................................. 52
5.2 Conclusion .................................................................................................................................. 52
5.3 Recommendations ....................................................................................................................... 54
Some of the main recommendations emerging from the study are: .................................................. 54
5.4 Recommendations for future study ............................................................................................. 54
5.5 Limitations .................................................................................................................................. 55
References ............................................................................................................................................. 56
APPENDIX 1: SURVEY QUESTIONNAIRE ..................................................................................... 63

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List of Figures, Charts and Tables
Figures

Figure 2.1: Conceptual framework…………………………………………………………..17

Tables

Table 4.1: Descriptive statistics………………………………………………………………27

Charts

Chart 4.1 Customer mean gender in UK and China…………………………………………..28

Chart 4.2 Customer mean age (UK and China) ……………………………………………….29

Chart 4.3 Promotion medium of choice………………………………………………………30

Chart 4.4 Comparison of brands……………………………………………………………...31

Chart 4.5 Sharing of ideas…………………………………………………………………….32

Chart 4.6 Offering feedbacks…………………………………………………………………33

Chart 4.7 View offers…………………………………………………………………………34

Chart 4.8 Receiving updates………………………………………………………………….35

Chart 4.9 IKEA Awareness…………………………………………………………………..36

Chart 4.10 IKEA social media awareness…………………………………………………….37

Chart 4.11 Promotion Factor………………………………………………………………….38

Chart 4.12 Factors attracting customers towards IKEA (UK and China) …………………….39

Chart 4.13 Customer attitude towards IKEA visual ads (UK and China) …………………….40

Chart 4.14 Customer attitude towards using social media for sharing opinions (UK and
China)………………………………………………………………………………………...41

Chart 4.15 Customer satisfaction with social media promotion of IKEA (UK and China)….42

Chart 4.16 Customer tendency to be happy when visiting social media of IKEA (UK and China)
………………………………………………………………………………………………43

9
Chart 4.17: Variance in customer satisfaction with IKEA’s marketing and promotional
activities (China and UK) …………………………………………………………………….44

10
Chapter 1: Introduction

1.1 Introduction
In the current technological era, social media marketing has a significant role in a cross-cultural
context. Therefore, through this research study, the researcher investigates the effectiveness of
social media marketing in the cross-cultural context by selecting the case of IKEA across two
culturally different nations, i.e. China and the UK. The current chapter of the dissertation
explains the research background and the motives that lead to taking IKEA as the case. The
aims and objectives of the current investigation, as well as the questions derived to complete
the study, will also discuss in the current section. Moreover, the significance of the research in
the current situation will also deliberate in the present chapter.

1.2 Research Background

With the arrival of social media marketing, this has changed the concept of advertising theory
to a much greater extent, although there still exists some cross-cultural aspects, which are
reluctant to use social media for external communication, a fact, which cannot be ignored
(Saravanakumar and SuganthaLakshmi, 2012). An analysis of the Fortune 500 companies
reveals that around 70-80% of these companies have their official accounts in social media like
Twitter and about 60-70% are the users of Facebook (Chen et al., 2016). Moreover, some
corporate businesses have considered social media marketing as a strategic move to attract the
customers for there can be no better platforms than Facebook, Twitter, Instagram, and the like
to market their products, communicate their idea for a new business venture, and so and so
(Berthon et al., 2012).

However, as per the report of Betser (2013), the common social media platforms used in the
West such as and Google, Twitter, Facebook, and YouTube are not available in China. Besides,
Betser (2013) also argued that many business organisations are using social media for
marketing their products and services in the UK as well as China. With the association of social
media, companies can analyse the feedback received from the customers or evaluate whether
the new products are satisfied the customer needs.

Now, coming to the case of IKEA, this is a Swedish multinational Group founded in 1943 by
Ingvar Kamprad that is well known primarily for its wide range of furniture and appliances as
well as the promotion of its unique interior designs, which have a touch of both eco-friendliness
and simplicity in them. Due to these attributes coupled with its global expansion, IKEA
imposes a comparatively lower price, thereby ensuring cost control and continuous product

11
development with other good things considered that it can call its own (News.com.au, 2018).
Due to the widespread acknowledgement of its products and services, this has crossed its
borders even to reach China, where customers have expressed immense satisfaction. For all
the reasons stated herein, IKEA, in its social media marketing, strives not only to promote its
business but going beyond that to maintain and extend its relationship with its consumers
regionally as well as globally (ETRetail.com, 2017).

1.3 Research Rationale

What is the research issue?

In the current business context, Social media marketing is one of the popular marketing
strategies that many business organisations adopt for marketing their products. Hence these
companies are investing more in social media marketing to attract more customers. According
to Neti (2011), many business organisations are using social media for marketing their products
as well as for advertising. Akar and Topçu (2011) stated that the social media could make a
great effect on the marketing of a product. Moreover, as per the opinion of Hays et al. (2013),
social media platforms for communication among people in different nations utilising different
social media and some social media platforms are banned in some regions. Therefore it will
affect the business in that regions. For a global business, the company have to follow different
strategies for different cultures as observed by De Mooij (2013). However, there have only a
few existing studies that focus on the social media marketing in a cross-cultural context. Hence
the lack of this attention on the issue shapes the scope for the current research study. Why it is
an issue? Why now?

As per the observation of Misra (2014), the world’s largest home furnishing retailer IKEA is
one of the early adopters of the social media marketing in their business strategy. In addition
to this, IKEA has extended their business to different countries with different cultures.
According to Constantinides (2009), IKEA using social media as a tool to develop a
relationship with their customers and identifying the problems with their products by receiving
feedback from their consumers. Moreover, IKEA performed their marketing strategies to
attract the consumers cultivated in various cultures as observed by Van Doorn et al. (2010).
Furthermore, the company joined its global marketing strategies with local culture-based
marketing actions. In China, IKEA has used Chinese social media and micro-blogging sites for
targeting urban youth as informed by Business Today (2013). However, the low-price strategy
of IKEA used in social media had created confusion among aspirational Chinese consumers

12
where local competitors copied the unique Swedish design. Therefore, in the current research,
the researcher evaluates how social media marketing affects the cross-cultural context.

How and when is it going to be investigated?

For evaluating the effectiveness of social media marketing in cross-cultural context by

analysing the case of IKEA in China and UK, the researcher will use positivism philosophy
and deductive approach for determining what type of data are to be accumulated. To obtain
more relevant data regarding the research topic, an online survey will conduct among the
customers of IKEA in China and the UK. That is mainly primary data will be used for
examining the current topic.

What could this research shed light on?

Although there are numerous types of the investigation carried out on the relationship between
these variables, there have only a few studies on the specific context. Besides, the existing
studies are not delivering an exact outcome in relating the social media marketing and the cross-
culture. Since the primary aim of the current research study is to examine the effectiveness of
social media marketing in the cross-cultural context, the main concentration will be on the
social media marketing strategies that adopted by the company and how it affected the
customers.

1.4 Research Aim

The main purpose of the current research study is to assess the effectiveness of social media
marketing in the cross-cultural context mainly on concentrating the case study on the
organisation IKEA.

1.5 Research Objective

• To evaluate the significance of social media marketing in the organisation IKEA.

• To critically analyse the various factors that affect the social media marketing regarding the
cross-cultural context in the organisation.

• To assess the effectiveness of social media marketing in the cross-cultural context in the
case of IKEA.

• To provide suitable recommendations to the organisation IKEA for enhancing social media
marketing.

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1.6 Research Question
1. What are the core factors that affect the social media marketing in terms of cross-cultural
context?

2. How do cross-cultural context impacts social media marketing?

3. How social media marketing influences the organisation IKEA to enhance the growth of
the business?

4. How to improve the social media marketing strategies of the organisation IKEA?

1.7 Significance of the study

In the current business sector, social media marketing has a significant role in determining the
success of an organisation. For a global business organisation, marketing is the crucial factor,
and social media marketing is one among them. The global organisation needs to consider the
cross culture and the marketing strategies adopted in such cultures. IKEA, one of the largest
global home furnishing retailer, has used social media strategies and it has an extended business
all over the world. Therefore, the company has used different marketing strategies in various
ways in different cultures. Hence, the present research study delivers an understanding of the
researcher and the organisation, and it is relevant to the present era.

1.8 Summary
The effectiveness of social media marketing in the cross-cultural context is investigating
through this study. For evaluating the research topic, the researcher has selected IKEA in the
UK and China. Through the current chapter, the researcher was able to provide an overall
introduction to the research by delivering the information regarding the social media and the
cross-cultural environment.

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Chapter 2: Literature review

2.1 Introduction
For the current chapter, the researcher main objective is to deliver detailed literature based on
the effectiveness of social media marketing in a cross-cultural context. In this chapter, the
researcher created a complete in-depth analysis of the independent and dependent variables by
using past evidence and earlier studies of the research topic. Furthermore, the researcher has
also examined the significance and different factors affecting the social media marketing and
cross-cultural context. Additionally, a conceptual framework for obtaining a profound
understanding of the research topic is also outlined

2.2 Social media marketing

Social media marketing is the process of advertising of a particular product on social media
platforms (Felix et al., 2017). Social media marketing uses the networking websites as a
marketing tool. From the estimation of Heymann-Reder and Dorothea (2012), marketing with
social media includes various effective activities such as posting an image, videos and other
contents to create awareness about a brand. Social media marketing promotes a particular
product of a brand to spread the brand awareness. Social media marketing supports all types of
businesses to reach the appropriate consumer. Facebook, Instagram, Twitter, Pinterest and
Google Plus are considered the main social media platforms, mentioned by Ashley and Tuten
(2015).

Social media provides some marketing strategies and significant challenges for the modern
businesses. According to the viewpoint of Tuten and Solomon (2017), social media marketing
mainly focuses on how to attract fans, followers or consumers for a particular product of a
brand. As per the observation of Godey et al. (2016), social media marketing is one of the
quickest ways to reach the consumers by advertising about a particular product of a brand.
Social media has a significant role in the culture of current society.

2.3 Cross-cultural marketing strategies

Cross-cultural marketing strategies are the strategies taken to overcome the issues arising due
to cross-cultural differences. Cross-cultural differences occur mainly in the cases when a
company expands their scope of market and wants to spread to markets of other countries
(Kaynak and Herbig, 2014). The cross-cultural marketing process is marketing to customers of

15
a different culture than that of the marketer. In such cases, it is required for the company to
understand various cultures of the country or the market into which a company wish to expand.

More than the production of various products within a company, more difficult task is to
understand how to introduce a specific product into a foreign market. One of the main problems
affecting a company is through creating ethical issues. Considering the case of the Middle East,
most of the advertisements are supposed to be more conservative (Javalgi et al., 2009). Similar
is the case of various gestures. The simple matter of sitting with one leg raised over the opposite
leg’s knee is considered to be offensive. Regarding the case of a handshake, in US area, a
handshake with a firm grip is supposed to be ideal, whereas, it is not found to be appropriate
in Asian countries.

2.4 Significance of social media marketing

A recent study about the social media marketing has proven that the social media marketing
activities could enhance the customer equity (Kim and Ko 2012). The researcher Evans (2010)
has observed that the marketing communication using social media could improve the social
presence of the modern business. From the estimation of Akar and Topçu (2011), it is clear that
both luxurious and inexpensive brands could raise the brand awareness by flourishing
communication and interactions with main audiences using social media platforms.
Furthermore, almost all customers depend on the social media to identify new brand products.
Social media marketing supports to validate the brand as well as increases the customer loyalty
of the brand (Khang et al., 2012).

Nowadays, the modern businesses approach the paid social advertising as it is a highly cost-
effective way to reach a maximum result. This flourishes the site traffic and supports the
businesses to reach more customers. By using social media marketing, the modern businesses
are able to build a one-to-one relationship between the customers. Creating a closer affinity
with the customers helps to improve the brand loyalty, observes (Kent, 2013). Social media
marketing helps the present-day businesses to understand the interests of customers and how
to develop the products and services. One of the main pros of social; media marketing is that
the entry to the social media marketing is low cost and it is easy to gain the customer feedback
of a product (Hays et al., 2013). On the other hand, anyone can comment and criticise the
posting about the product on social media and anybody can damage the brand's reputation.
Hence the loss of control and the risk of negative comments are considered as the main
challenges of social media marketing (Kirtiş et al., 2011).

16
2.5 Factors affecting social media marketing
Considering the case of building a new brand or selling a product, it is found to be best if the
promotion aspect is also provided through the digital media aspect for the same. Even though
for people who have less experience with online purchasing or social media may find it difficult
in the beginning to indulge in such a task (Kim and Ko, 2014). But, spending some time and
resources into the same is considered to be very fruitful. In this new age of digitalisation in
almost every aspect of life, it is considered best to be aware of the various tools available.

One of the main factors which affect social media is the relevance of the news in the present
life scenario. For the success of any social media marketing, the significance of the story or the
details for marketing purpose is an important aspect (Akar and Topçu, 2011). The more current
and new the news is, better is the result through social media marketing. Similarly having an
adequate amount of content is another pre-requisite. The content of every story being published
has to contain a sufficient amount of material. The content should not exceed the required
amount according to the topic. People don’t like topics which drag on; it is always preferable
for contents with crispier and conserved contents.

Similar to having an adequate amount of content, the timing of posting the material is also an
important aspect (Michaelidou et al., 2011). If a specific publisher were to introduce their
creations into social media all at once, the readers would find it difficult to go through all the
contents, no matter how good the article is. Else if the publisher were to post contents according
to a situation, the content should have relevance or similarity to the event or an occasion. Hence
a publisher though after creating an apt content should only publish the same in the correct
time.

2.6 Hofstede’s cultural dimension theory

Hofstede’s culture dimension theory is the systematic framework for measuring the difference
between cultures and nations and it is founded by the Dutch social psychologist and
anthropologist named Geert Hofstede who has studied the relations between cultures (Nistor et
al., 2014). Furthermore, Hofstede collected most of his information based on the world cultural
values by surveying a US-based technology and consulting firm, IBM. Moreover, this theory
is based on the idea that value can be positioned upon six cultural dimensions such as
collectivism, uncertainty avoidance, temporal orientation, indulgence, power and masculinity.

Collectivism vs Individualism: This dimension has no political implication and mentions to the
group more than the individual. According to Mazanec et al. (2015) in collective societies, the

17
objectives of the group and its welfare are valued over the individual and cultures that are
individualistic area relevant on obtaining personal objectives.

Uncertainty-Avoidance index: This dimension describes the tolerance of the society against
unexpected events, the stress of change and strange situations (Beugelsdijk et al., 2015).

Temporal orientation: This dimension explains the time horizon of the society. Makri and
Schlegelmilch (2017) stated that in this dimension the present and past are closely connected
and that which cannot be done presently and can be done the next day.

Indulgence vs Restraint: This dimension calculates an ability of the culture to gratify the instant
requirements and personal needs of its members (Jeon and Cho 2017). Beugelsdijk et al. (2016)
additionally, pointed out that this dimension considers the trend for a society to accomplish its
desires. Indulgent culture focuses more on the happiness of the individual and well-being the
same leisure time is more, and there are ultimate freedom and personal control. On the other
hand, the restrained culture as noticed by Smith (2011) is where the positive emotions are
expressed freely and the feelings such as happiness, freedom and leisure not given enough
importance. For instance, in indulgence culture like in the USA, the anticipation is that the
customer service representatives shows their happiness through a smile or friendly behaviour,
whereas in a restrained culture like in the Russia or Europe this is considered to be unnatural.

Power-Distance index: Power distance index is the extent to which the less powerful members
of institution and organisation receive and assume that power is dispersed inequitably (Minkov
et al., 2017).

Masculinity vs Femininity: This dimension calculates the level of significance a culture place
on stereotypically masculine values like ambition, materialism, power and assertiveness as well
as stereotypically feminine values like prominence on human relationships (Vitell et al., 2016).

The above cultural dimensions are only a framework to aid measure a given culture and this
dimensions are cannot predict behaviours of individuals and do not take into account
personalities of the individuals (Halder et al., 2016). While considering the global work
environment and marketing tactics, indulgence culture v/s restrained culture has greater
importance. Indulgence culture emphasises on personal control and freedom of speech;
therefore, the organisation could practically incorporate marketing tactics. On the other hand,
in the restrained culture, there sense powerlessness about personal destiny; thus marketing
faces complexity.

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2.7 Effectiveness of social media marketing in the cross-cultural context
In the modern era of advertising practice and theory, the arrival of social media has been
playing the significant role in the organisations. Moreover, from the report of Okazaki and
Taylor (2013), it has also been observed that to convey the corporate image of the organisations
globally the social media used in different countries played the significant role. However, it
has also been noted that for the businesses in the recent days the significant challenge has been
represented by the social media as the currently used marketing strategies by the organisations
are insufficient because the customers are more empowered than before as noted form the
report of Chu and Kim (2011). As per the observation of Chu and Choi (2011), it has been
noted that for the purpose of communication, marketing, media usage and global strategies
cultural plays the significant role. Moreover, it is also stated that individuals from the various
countries migrate, travel or connect online along with the culture followed by the people. Thus
for all the organisations one of the vital factor to be considered is cultural diversity as noted
from the report of Pentina et al. (2013).

As indicated in the Hofstede’s cultural dimension theory, there are several elements such as
power distance, collectivism v/s individualism, uncertainty avoidance index, feminity v/s
masculinity, short-term v/s long-term orientation and restrained v/s indulgence that help in
distinguishing between the different national cultures. These various elements have a role in
impacting on a business setting and the company’s lifestyles. More importantly, it was
observed from the report of Beugelsdijk et al. (2016) that indulgence v/s restrained culture has
a significant impact on analysing the effectiveness of a social media strategy in a cross-cultural
context. Indulgence v/s restrained culture has an effect on generalised differences; in cultures
that place greater happiness marketers could practically market their products. In indulgence
culture environment individuals are more likely to use the social media channels as they wish
to share their happiness with others and in such a background social media marketing are found
to be much useful. However, in restrained environment individuals there is a low percentage
of happy people and low importance to leisure, therefore, the marketers have to adopt improved
marketing strategies other than the social media marketing strategy.

As per the report of Felix et al. (2017), it has been observed that in the western countries
marketing and communication are usually trained on theories based on the needs, value systems
and views of the western cultures. In cross-cultural environments, these are not the significant
standpoints. Moreover, from the report of Pookulangara and Koesler (2011), it has been
observed that due to the different cultural background of the countries Western Europe and

19
US 91% of world population holds a varied view on the life of the individuals upbringing and
background. Likewise, it has also been observed that in the US the organisations have
developed various successful marketing strategies but those strategies are ineffective in the
other countries such as Asia and South America thus the organisations must require varied
localisation efforts.

However, from the report of Wang et al. (2012), it has also been noted that only some of the
major brands have been able to invest more on growth strategies and cross-cultural marketing.
Moreover, from the report of Chen et al. (2016), it has also been indicated that there are
certainly significant challenges and issues for various smaller businesses due to globalisation
and some other organisations are ready to accept the offers that have been attained due to
globalisation. Besides, from the report of Betser (2013), it has been observed that over the past
few years for the global communication a new dimension has been portrayed to the immense
growth in the digital media marketing. Similarly, it has also been noted that the geographical
borders between the countries have been removed due to digital channels; however, still, there
has been cultural boundaries. Further, from the report of Felix et al. (2017), it has been observed
that all the brand activities can be viewed by the global audience online. On the other hand,
from the report of Betser (2013), it has been noted that with the help of digital revolution the
people can attain different things to the people in the different cultures. The role of culture is
very much important for the organisations to remain the business effectively in the global
economy.

From the report of Chen et al. (2016), it has been observed that on analysing the fortune 500
companies it has been indicated that 70-80 % of organisations possess various social media
accounts like Twitter and the other 60-70% are using the social media sites Facebook.
Moreover, it has also been observed that for attracting the consumers in the market one of the
strategic move used by the organisation are social media marketing and for social media
marketing the better platforms are Twitter, Instagram, Facebook and through this platform the
organisations can market their products worldwide without considering any cultural issues and
also can communicate the idea of the organisation for a new businesses as noted form the report
of Berthon et al. (2012). However, as per the report of Betser (2013), the most commonly used
social media platforms used in western countries are Google, Twitter, Facebook, and YouTube
but these platforms are not used in the country like China. In addition, Betser (2013) also argued
that many business organisations are using social media for marketing their services and
products in the UK as well as China. With the association of social media, companies can

20
analyse the feedback received from the customers or evaluate whether the new products are
satisfied the customer needs.

2.8 Link between present and previous studies

By evaluating the present studies, it was identified that there are different studies are connecting
with the social media marketing and cross-cultural context. Tsai and Men (2017) mention the
link between the social media marketing and cross-cultural context and how it affects the
marketing strategy of the various firms. Furthermore, Kaplan and Haenlein (2016) stated that
social media marketing is an effective way for the business of all sizes to influence customers
and prospects. From the study of Godey et al. (2016) indicates marketing on social media can
bring amazing progress to the business, generating dedicated brand supporters and even
motivating sales and leads. As per the observation of Dessart et al. (2015), many factors were
recognised to have both positive and negative influences on the social media marketing in the
cross-cultural context in the marketing strategy of many firms. Similarly, Beugelsdijk et al.
(2016) that indulgence v/s restrained culture has a significant impact on analysing the
effectiveness of a social media strategy in a cross-cultural context. The current study adds to
the existing literature by assessing the implication of culture on social media marketing
effectiveness by focussing on the effect of level of indulgence on customer perception and
satisfaction with social media marketing.

2.9 Conceptual framework

Figure 2.1: Conceptual framework

Source: Created by author

The above conceptual framework details the theoretical framework adopted in the study for
assessing the effectiveness of social media marketing in cross-cultural context. The difference

21
in cross-cultural contexts is assessed in this study with the help of indulgence vs. restraint
culture as outlined in Hofstede culture dimensions. The reason for this is that indulgence vs.
restraint culture is considered to have significant influence on customer perception of social
media marketing. The effectiveness of social media marketing is determined in this study on
the basis customer perception and customer satisfaction with social media marketing of a
brand.

2.10 Summary
In this current chapter, the researcher discoursed the current and previous studies important to
social media marketing and cross-cultural context. The review discovered that there was an
effective connection between cross-cultural context and social media marketing. Furthermore,
through this chapter, the significance and various factors affecting the social media marketing
has been discussed. Additionally, the culture dimensional theory and conceptual framework in
this chapter help the researcher to know more about the effectiveness of social media marketing
in a cross-cultural context.

22
Chapter 3: Research Methodology

3.1 Introduction
Research methodology is considered as one of the most significant section in the research
study. In this chapter, the researcher has discoursed the different research techniques involved
in the research methodology like research philosophies, research strategies, research approach,
research purpose, data collection methods and sampling methods and so on. Moreover, the
researcher has described the data analysis plan, the accessibility and ethical issues etc. in this
chapter.

3.2 Research Hypothesis

H1: There is a statistically significant variation between customer attitude towards social media
marketing across UK and China
H2: The national culture of UK and China has statistically significant effect on social media
marketing effectiveness

3.3 Research Philosophy

According to Kennedy (2017), research philosophy recognises the mode of the information
required in the research study, and it provides an overall framework connecting the methods to
be implemented for accruing the data essential for accompanying the research study. Research
philosophy classified into three types and they are positivism philosophy, interpretivism
philosophy and Realism philosophy.

Positivism philosophy has been adopted for the research for the better comprehension of the
impacts of social media marketing in a cross-cultural context. This research philosophy has
helped the researcher to deliver adequate interpretation to the research issues. Besides that, the
positivism philosophy enabled the researcher to recognise all the features of the major problems
linked with the research study in an effective and improved manner.

Moreover, the present study has been done on depending the connection between the social
media marketing and cross-cultural context in IKEA, UK and China. This philosophy aids the
researcher in understanding the knowledge on the social media marketing since it explains only
the factual knowledge enlarged through the observation. With the help of the positivism
philosophy, the researcher also gained facts about the effectiveness of social media marketing
in the cross-cultural context in IKEA, UK. Likewise, positivism philosophy helped the

23
researcher for evaluating the significance of social media marketing in the modern industry and
how it favours the organisation to capture the interest of new and existing customers.

3.4 Research Approach

As per the observation of Singh (2015), the research approach is described as the procedures
and plans implemented for gathering the essential data. Research approach also supports in
obtaining the goals and objectives of the research in a systematical manner. The research
approach is essentially divided into two such as Inductive approach and deductive approach.
Osman et al. (2018) stated that the deductive approach aids the researcher to generate
assumptions connecting to the current theories. Likewise, McFarland (2018) stated that the
inductive approach is independent of predetermined theories and hence it is called a flexible
approach.

The researcher has adopted a deductive approach for the study because it is highly associated
with the positivism philosophy. With the help of the deductive approach, the researcher was
capable of examining the research issues by analysing the efficiency and difficulties connected
with IKEA’s marketing service. Furthermore, this helped the researcher to comprehend the
several factors that influenced the cross-cultural context. Additionally, an inductive approach
was highly supportive for providing the most suitable recommendations to IKEA for advancing
the effectiveness of social media marketing so that it leads the company to achieve its goals.
The deductive approach helped the researcher to perform a comparative study to assess the
significance of social media marketing by considering the case of IKEA and their marketing
methods in the UK and China. Moreover, the deductive approach supporting positivism
philosophy helped the researcher to gain insight into the social media marketing in the cross-
cultural context.

3.5 Research Design

As per the report of Lewis (2015), it has been noted that the research design refers to the overall
strategy used to analyse the research issue and this integrates various elements of the research
study logically and coherently. The three types of research design widely used to examine the
research issue are exploratory, explanatory and descriptive research design. On comparing with
the other two research designs the most suitable research design used for analysing the current
research issue was the exploratory research design. Further, as per the report of Sekaran and
Bougie (2016) indicated that adopting deductive approach helps to conduct the research in an
exploratory manner by explaining and analysing the different stage of the research in the

24
theoretical perspective. Exploratory research design will be implemented by the researcher that
produces a fresh outlook for the study, and the researcher will be able to get a better
understanding of the significance of social media marketing by considering the case of IKEA
(Maxwell, 2012). Further, it is also noted that by implementing the exploratory research design
the researcher can analyse the research question in a detailed manner. Moreover, as per the
report of Mitchell and Jolley (2012), it has also been observed that the main benefits attained
by the researcher by adopting the exploratory research design is, the researcher can upsurge the
knowledge regarding the research issue a study on the effectiveness of social media marketing
in cross-cultural context and by the increased awareness on the research topic definite
conclusions on the research topic can be attained. The exploratory research design helped the
researcher to cross evaluate the marketing practices adopted by IKEA in the UK and China.
Likewise, by adopting exploratory research design, more expertise was gained on the social
media marketing practices of IKEA. Likewise, the researcher was able to identify the
effectiveness of social media in the cross-cultural context.

3.6 Research Strategy

As per the observation of Saleh et al. (2015), it has been noted that to examine the research
issue in a detailed manner one of the methodologies used by the researcher is the research
strategy. The three types of research strategy prominently used by the researcher while
conducting the study for analysing the research issue are survey strategy, interview strategy
and case study strategy. For the current review, the most suitable research strategy used by the
researcher is the online survey strategy. Moreover, for the current topic, the researcher aims to
survey the customers of IKEA to evaluate customers’ perspective on the impact of the
effectiveness of social media marketing in the cross-cultural context through online. By using
the online survey, the researcher can get quantitative data from a large population (Fowler Jr,
2013). Moreover, it is also noted that on conducting the online survey among the customers
the researcher can get the direct opinion from the customers of IKEA regarding the
effectiveness of social media marketing in the cross-cultural context in the case of IKEA and
also the researcher can get the details regarding the various factors that affect the social media
marketing regarding the cross-cultural context in the organisation. Moreover, by conducting
the online survey analysis, the researcher obtains the quantitative information that is needed
for analysing the research issue. Thus, through the survey analysis, the researcher can examine
the research issue a study on the impact of social media marketing in a cross-cultural context
on obtaining the opinion from the customers directly. The survey strategy adopted by the

25
researcher helped to gain more knowledge from the customers perspective on social media
marketing methods utilised by IKEA in the UK and China. By evaluating their opinion, the
researcher was able to examine the significance of social media marketing in a cross-cultural
context. Likewise, the researcher was able to critically analyse the factors influencing the social
media strategies adopted by IKEA.

3.7 Data collection method

As per the observation of Ritchie et al. (2013), it has been noted that according to the targeted
variables the information needed is gathered and measured in a systematic manner and from
the accumulated data the researcher can respond the research questions and the outcomes can
be accessed accordingly. There are two types of data collection which are primary and
secondary data collection.

For the current research, primary and secondary data collection methods were adopted. The
researcher has chosen IKEA for the data collection because it is one of the largest companies
having great influence of social media. The marketing strategy consists of the digital mode of
marketing and the use of various types of social media such as Google+, Facebook, Twitter
and Pinterest etc which reveals the positive impacts of using social media by IKEA. The
customers from the UK and China were selected for the survey due to the difference of culture.
For collecting the primary data, the researcher has used the survey strategy. As per the opinion
of Hair Jr et al. (2015), primary data will provide reliable information about the study.
Moreover, the researcher has also adopted a secondary data collection method to identify the
critical aspects relating to social media marketing in the cross-cultural context.

The researcher utilised secondary data resources to compare the gathered data obtained through
the primary data collection method. Through the data collection process, the researcher
received adequate information regarding factors of social media affecting the organisational
efficiency and growth of IKEA, the marketing strategies used by them and the ways or the
medium through which the information about the products are conveyed to the public.
Likewise, the researcher was able to examine the significance of using the primary data
collection technique in the modern industry. The primary data collection technique helped the
researcher to perform comparative research by undertaking the study on the marketing
practices of IKEA in the UK and China. Moreover, the researcher was able to identify the
effectiveness of social media marketing in the cross-cultural context.

3.8 Sampling

26
The sampling identified as the procedure of selecting units from the research population to
attain significant information’s about the population or generalise the results. As per the
opinion of Fowler (2013) collecting samples will help a researcher to draw the idea of the
population as each unit will reflect the characteristics of the population. As per the opinion of
Levy and Lemeshow (2013), the probability sampling is the type of sampling where the
researcher uses the random method of selection.

In the current study, the researcher has chosen the simple random probability-based sampling.
The sample selected for the study is 100 IKEA customers from the UK and China, 50 from
both the country. The researcher collected the contact details of the customers who make a
regular visit to the website of IKEA. They are individuals who make reviews and feedback on
products purchased. 170 customers were contacted and 50 of those customers responded
successfully in the survey. So the response rate was around 59%. The questionnaire for the
survey was developed based on Hofstede's cultural dimension theory. With the collected
samples the researcher focused on attaining information for evaluating the various factors
which affect the social media marketing on an organisation in relation to the cross-cultural
context. The samples have helped the researcher in comparing and contrasting the collected
data. The sampling technique helped the researcher to gather valuable opinions from the
individuals to understand the significance of using social media in the modern industry.
Likewise, the researcher was able to analyse the factors influencing the social media practices
adopted by IKEA.

3.9 Data analysis plan

For the current study on the effectiveness of social media marketing in the cross-cultural
context, the researcher utilised primary data collection method. The researcher will perform
the empirical method for analysing the information accumulated through the survey technique.
Since the research concentrates on two countries an inferential statistic approach, the t-test has
been utilised. In the primary method, the researcher has adopted the online survey method on
100 IKEA customers from both the UK and China. The researcher adopted ANOVA analysis
in order to analyse the variance in customer perception and satisfaction with IKEA’s social
media activities across China and the UK. ANOVA analysis estimates the difference between
means of UK and Chinese customer’s opinions and hence offers in-depth look into how
customers from these nations perceive social media marketing of IKEA. After investigating the
data through the ANOVA analysis, the researcher was able to compare and evaluate the

27
outcomes to validate the formulated hypothesis and compare it with the conceptual framework
formulated in the literature section as well.

On the other hand, the secondary data is collected from various literary sources such as the
Books, Magazines, Journals, Articles and Company websites. The data analysis has helped the
researcher in evaluating the data and identifying the major cultural differences which are
affecting the social media marketing of the IKEA brand. In addition, the analysis has even
assisted the researcher in recognising the influence of social media marketing on the
organisational growth of IKEA. Moreover, followed by the data analysis, the researcher has
provided proper recommendations for enhancing the social media marketing method of the
IKEA Company.

3.10 Research limitations

The major limitation faced by the current study is the sample size itself. The researcher was
only able to survey a total of 100 IKEA customers from both the UK and China. Further, time
constraints are considered to be one of the limitations due to which the researcher has to restrict
the sample size of 50 from each UK and China. Moreover, the cost restrictions and certain
accessibility issues have further restricted the researcher from increasing the number of
samples more than 50 from each of the nations. Another limitation is concerned with the
dishonest and unreliable responses from the participants which could affect the overall
reliability of the data collected.

3.11 Ethical and accessibility issues

The current research has given great concern on protecting the collected data under the Data
Protection Act of 1998. The researcher has followed the ethical values for protecting the
information gathered from the customers of IKEA. The researcher has presented the intention
of the survey before the participants to obtain informed consent from the participants.
Moreover, the participants were provided with the details of how the data shared by the
participants will be handled. In order to ensure the accuracy or authenticity, the researcher has
only collected the secondary data from reliable sources. However, the researcher had to face
accessibility issues related to the collection of data from the secondary sources. The cost
restrictions have even restricted from accessing several websites.

3.12 Summary

28
The current chapter has detailed the research design and methodology of the current research.
The chapter discussed the various methods chosen for the research in the form of research
strategy, research design, sampling and data analysis methods. The researcher has even
justified the reasons behind the selection of each method. In addition, the chapter has outlined
the accessibility issues faced during the collection of data. The ethical concerns provided by
the researcher throughout the study are highlighted in the chapter. Moreover, the chapter has
pointed the limitations in the current study. Further, through the empirical data analysis
method, the researcher has analysed the data collected through the survey research strategy.

29
Chapter 4: Data analysis and interpretation

4.1 Introduction
This chapter of the dissertation deals with presentation, analysis and interpretation of the data
collected for the study. The data in this study was collected from 50 customers of IKEA each
from the UK and China. The focus of the data analysis is on examining whether the national
culture of the UK and China influences customer perception of social media marketing of
IKEA in these markets. This chapter of the dissertation presents an overview of the findings
from the data collection with the help of descriptive statistics and follows up this with a
comparative analysis of customer perception of social media marketing with the help of
ANOVA analysis. The results emerging from the data analysis are cross-referenced with
existing perspectives in the literature to comment on the value and significance of the research
findings.

4.2 Descriptive statistics

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

1. Gender 100 1.0 2.0 1.250 .4352

2. Age 100 1.0 4.0 2.680 .9198

3. Permanent Residence 100 1.0 2.0 1.500 .5025

4. Promotion Medium of 100 1.0 5.0 2.490 1.2185

choice

5.1 Comparison of brands 100 1.0 5.0 2.470 1.4802

5.2 Sharing of ideas 100 1.0 5.0 2.930 1.2248

5.3 Offer feedback 100 1.0 5.0 2.950 1.3362

5.4 View offers 100 1.0 5.0 1.940 1.3167

5.5 Receive updates 100 1.0 5.0 2.770 1.4829

6. IKEA Awareness 100 1.0 2.0 1.270 .4462

7. IKEA Social media 100 1.0 2.0 1.060 .2387

awareness

8. Promotion factor 100 1.0 4.0 2.280 1.0832

9.1 Family-friendly 100 1.0 5.0 3.030 .9583

30
9.2 Attractive range of 100 1.0 5.0 1.790 1.0376
products

9.3 Light and airy indoor 100 1.0 5.0 3.740 1.0695
space

9.4 Natural textures 100 1.0 5.0 2.320 .9835

9.5 Classic elegance 100 1.0 5.0 2.300 1.1591

10.1 IKEA visual ads 100 1.0 5.0 2.690 1.5089

10.2 Social media for 100 1.0 5.0 2.490 1.5008

sharing opinions

10.3 Satisfaction with 100 1.0 5.0 2.450 1.4933

social media promotion

10.4 Happy when visiting 100 1.0 5.0 2.910 1.4291

IKEA’s social media

11. Satisfaction with 100 1.0 5.0 2.310 1.2202

IKEA’s marketing and
promotional activities

Valid N (listwise) 100

Table 4.1: Descriptive statistics

The analysis of the descriptive statistics indicates that majority of the respondents who took
part in the survey were males and were aged between 25-40 years as evidenced by the mean
scores of these questions. Another important finding emerging from descriptive statistics is that
TV, print and digital media were the preferred promotion mediums for customers in both China
and the UK.

Analysis of the customer motivation for using social media channels revealed that the majority
of customers used social media for viewing discounts and offers offered by brands via social
media. This is evident from the low mean rating of 1.94 as this question was implemented using
reverse scored Likert scale. Similarly, the analysis also shows that an attractive range of
products of IKEA was the most important factor in attracting customers towards IKEA in both
the UK and China. On the other hand, the indoor space of IKEA was identified to be least
attractive by the UK and Chinese customers of IKEA. Customers in the survey also showed
comparatively higher levels of satisfaction with the social media promotions of IKEA and with
the overall marketing and promotional activities of IKEA.

31
4.3 ANOVA Analysis
ANOVA analysis is used in this study for estimating the variation in customer perception
towards social media marketing of IKEA by using the country of permanent residence of
customers (1= China and 2= UK) as the dependent factor in ANOVA.

Customer demographics

Chart 4.1 Customer mean gender in UK and China

The results of the ANOVA analysis revealed that the higher number of Chinese customers were
males when compared to the same in the UK. This means that more number of male customers
of IKEA took part in the survey from China when compared to the number of male Chinese
customers who took part in the survey. Nevertheless, it is evident from the results of ANOVA
analysis that a low number of female customers from China and the UK took part in the survey.

32
 Chart 4.2 Customer mean age (UK and China)

The analysis of the variance in mean customer age of IKEA customers in the survey across
China and the UK revealed that Chinese customers were comparatively younger when
compared to UK customers of IKEA. This is in line with the overall demographic trends in the
UK and China as the median age of the Chinese population is low when compared to that of
the UK.

4. Promotion medium of choice

33
 Chart 4.3 Promotion medium of choice

Applying ANOVA variance analysis, the difference in the choice of the promotion medium
between UK and Chines customers has been analysed. The ANOVA results indicate that the
preferred channels of promotion of both customer groups were not similar. This is because; the
mean score registered by Chinese (2.00) and UK (2.980) customers differed significantly.
While TV and print media found to be significant for UK customers, Chinese customers
preferred billboard and radio advertisement more.

5. Motivational factors behind the preference of a brand in social media

5.1 Comparison of brands

34
 Chart 4.4 Comparison of brands

The social media usage of both UK and Chinese customers for comparing brands has been
analysed using ANOVA. The results as shown in the above chart depicts that a significant
difference exists between two national cultures with respect to this factor.

This difference is noticeable with a lower mean score of China (1.940) and a higher mean score
of UK (3.00). This indicates that the adoption of social media for making brand comparisons
is higher among Chinese customers in comparison with the UK customers as the rating used
reverse scored likert scale. These findings are in support with the H1 which stated existence of
variations in the attitude of customers across the UK and China towards social media usage.
This is further supported by the findings of the literature review (Ashley and Tuten, 2015)
which stated that national culture influences the customer choice regarding the usage of social
media.

35
5.2 Sharing of ideas

Chart 4.5 Sharing of ideas

Analysing the mean score of both nations with respect to the factor, sharing of ideas, it could
be seen that China and UK scored 2.380 and 3.480 respectively. This means that Chinese
people demonstrated a high intent of sharing ideas through social media platforms. On the other
hand, UK customers do not regard sharing ideas as a critical factor for adopting social media.
This finding also underlines the fact that this dimension of the motivation behind the social
media adoption registers a significant statistical difference between these two countries

In the literature review, Chu and Choi (2011) noted that the purpose of using social media
varies between different cultures. This is further supported by the propositions of Hofstede’s
cultural dimension theory (Beugelsdijk et al., 2015).

5.3 Offer feedback

36
 Chart 4.6 Offering feedbacks

Another major factor that motivates customers for reviewing social media platforms is its
potential as a platform for offering feedback to the brands so that these firms would be able to
make appropriate actions concerning services and the products.

Analysing the above chart, a mean score of 2.320 has been shown by Chinese customers while
UK customers depicted a mean score of 3.580. This difference in the score implies that Chinese
customers’ reliance is higher on social media for expressing reviews and feedbacks. The use
of social media as a platform for offering feedbacks is further supported by the observations of
Kent (2013) in the literature review.

5.4 View offers

37
 Chart 4.7 View offers

The results of the above chart indicate that enthusiasm for reviewing offers through social
media is higher among Chinese customers. This is evidenced by the lower mean score, 1.400
of Chinese customers against the higher UK score (2.480). The primary inference from this
analysis is that reviewing of offers is the most prominent motivating factor that adheres the
Chinese customers towards social media marketing.

5.5 Receive updates

38
 Chart 4.8 Receiving updates

Comparing with other motivating factors such as the provision for comparing brands, offering
feedbacks, sharing ideas and viewing offers, receiving updates has accomplished a significantly
poorer score considering both UK and Chinese customer groups. This indicates that receiving
updates is not the primary concern of the UK and Chinese customers for reviewing social media
platforms.

Considering this factor, China reflected a score of 2.240 while the UK depicted 3.300. This
again consolidates the finding that different cultural groups have varying reasons for referring
the social media platforms. This is further evidenced by the findings of Pentina et al. (2013) in
the literature review which states that cultural differences inculcate different perceptions and
attitudes with regard to social media marketing.

6. IKEA Awareness

39
 Chart 4.9 IKEA Awareness

The ANOVA results regarding the extent of awareness of IKEA brand shown by both nations
indicate that the awareness of the brand is higher among both customer groups. This is
evidenced by the mean score of the UK and Chinese customers (1.04 and 1.500 respectively).
On the other hand, Chinese customers registered a score of 1.500. However, this difference in
the variance is not strong. This means that the two groups reflected a lower degree of variability
concerning awareness.

7. IKEA Social media awareness

40
 Chart 4.10 IKEA social media awareness

Another significant parameter investigated through surveying was the knowledge of both
customer groups regarding the social media presence of IKEA. The creation of awareness of a
brand by social media marketing is highly proclaimed by the literature review findings (Akar
and Topçu, 2011).

Analysing the scores of both nations (China-1.120; UK-1.00), it could be inferred that both
customer groups possessed adequate awareness of IKEA’s social media activities. However,
considering variation between the two national groups, ANOVA variance analysis showed
little difference.

8. Promotion factor

41
 Chart 4.11 Promotion Factor

Analysing influence of promotion factor on the UK and Chinese groups, price and quality
found to be most important. On the other hand, perceived fit and usefulness deemed to be less
influential. Moreover, the mean scores reflected a considerable difference between the two
nations. While the mean score of Chinese customers was found to be 1.800, UK customer group
registered a mean score of 2.760.

The main implication of this ANOVA results is that it could be understood that the attitudes of
both customer groups towards the promotion activities of a firm are different. Comparing the
perception of both UK and Chinese customers on promotional factors, it could be registered
that Chinese customers regarded price and quality as most important. On the other hand,
perceived usefulness and fit were found to be highly influential to UK customers.

 Factors attracting customers towards IKEA

42
 Chart 4.12 Factors attracting customers towards IKEA (UK and China)

Analysis of the difference in the effect of different factors in attracting Chinese and the UK
customers towards IKEA revealed that attractive range of products of IKEA was the most

43
effective factor in attracting customers towards IKEA in both markets indoor space of IKEA
was the lest attractive factor. Apart from this, ANOVA analysis also identified significant
variation in the effect that classic elegance of IKEA products has on customers in UK and
China as it was found to be more effective in attracting UK customers (2.38) than Chinese
customers (2.22). A similar difference was also identified in the effect of an attractive range of
products and natural elegance of IKEA products with both these factors exerting a stronger
effect on UK customers than Chinese customers.

 Customer attitude towards social media marketing of IKEA

Customer attitude towards social media marketing of IKEA was estimated by assessing
customer attitude towards IKEA’s visual advertisements, usage of social media for sharing
opinions, satisfaction with social media promotions and overall happiness when engaging with
social media contents of IKEA.

Customer attitude towards IKEA visual ads

Chart 4.13 Customer attitude towards IKEA visual ads (UK and China)

The analysis of the variance in customer attitude towards IKEA visual ads across the UK and
Chinese customers indicates that UK customers (2.66) were comparatively more engaged with
IKEA’s visual ads than Chinese customers (2.72) as this question was scored on a reverse
coded Likert scale. This means that the nationality of a customer has a significant effect on the
customer attitude towards IKEA visual ads. From the above result, it can be understood that

44
visual ads will be comparatively more effective in familiarising IKEA’s UK customers with
the brand when compared to its Chinese customers.

Customer attitude towards using social media for sharing opinions

Chart 4.14 Customer attitude towards using social media for sharing opinions (UK and
China)

The analysis of the variance in customer attitude towards using Social media for sharing
opinions across the UK and Chinese customers indicates that UK customers (2.46) found social
media to be an effective channel for sharing opinions when compared to Chinese customers
(2.52) who found it to be less effective. This means that the nationality of a customer has a
significant effect on the towards using social media for sharing opinions. From the above result,
it can be understood that UK customers of IKEA were more likely to use social media for
sharing opinions than Chinese customers.

Customer satisfaction with social media promotion of IKEA

45
 Chart 4.15 Customer satisfaction with social media promotion of IKEA (UK and China)

The analysis of the variance in Customer satisfaction with social media promotion of IKEA
across the UK and Chinese customers indicates that UK customers (2.40) were comparatively
more satisfied with the social media promotions of IKEA than Chinese customers (2.50). This
means that Chinese customers of IKEA were less satisfied with the social media promotions
of the brand when compared to UK customers. From this, it can be understood that the social
media promotion of IKEA is likely to be more effective in the UK than in China as Chinese
customers show a lower level of satisfaction with social media promotions of the brand.

The difference in customer satisfaction with social media promotions of IKEA in China and
the UK can be assessed with the help of national cultural difference between China and UK as
outlined in Hofstede cultural dimensions’ framework. As per Hofstede cultural dimensions’
framework, China is a restraint culture with an indulgence score of 69 while the UK is an
indulgent culture with an indulgence score of 24 (Beugelsdijk et al., 2016). This significant
variation in the level of indulgence across Chinese and the UK culture can be seen as the factor
driving the difference in customer satisfaction with social media promotions of IKEA in China
and the UK. From this, it can be understood that national culture especially the difference in
indulgence levels across nations has implications on the effectiveness of social media
marketing measured in terms of customer perception and satisfaction with social media
marketing of IKEA.

46
Customer tendency to be happy when visiting IKEA’s social media

Chart 4.16 Customer tendency to be happy when visiting social media of IKEA (UK and
China)

The analysis of the variance in customer tendency to be happy when visiting social media of
IKEA across the UK and Chinese customers indicates that UK customers (2.90) were
comparatively more likely to be happier than Chinese customers (2.92). It needs to be noted
that this variation between the UK and Chinese customers of IKEA is marginal as both Chinese
and UK customers are neither happy nor unhappy when visiting social media of IKEA as they
both scored this statement in a similar range (neither happy nor unhappy) on the reverse coded
Likert scale. The implication of this result is that the difference in indulgence levels of Chinese
and UK customers does not have any significant effect on customer happiness levels when
visiting social media pages of IKEA as the majority of both Chinese and UK customers are
neither happy nor unhappy when visiting social media pages of IKEA.

Customer satisfaction with IKEA’s marketing and promotional activities

47
 Chart 4.17: Variance in customer satisfaction with IKEA’s marketing and promotional
activities (China and UK)

The mean rating of customer satisfaction with IKEA’s marketing and promotional activities
was 2.31, and the standard deviation was 1.22 (Refer Table 1). This indicates customers were
only moderately satisfied with IKEA’s marketing and promotional activities and that there was
significant variation in customer satisfaction levels.

The analysis of the variance in mean satisfaction levels across the UK and Chinese customers
of IKEA indicates that UK customers (2.26) were comparatively more satisfied with IKEA’s
marketing and promotional activities that Chinese customers (2.36) as the satisfaction levels
were scored on a reverse coded Likert scale. This means that the nationality of a customer has
a significant effect on the perception of IKEA’s marketing and promotional activities and thus
on their level of satisfaction with the same.

Suggestions for improving social media promotions of IKEA

One of the main recommendations offered by customers for improving social media
promotions of IKEA was related to offering social media only offers. Under this approach, the
brand would need to offer special offers and discounts via social media channels. The benefit
of this approach is that this is beneficial to customers who engage with IKEA through social
media channels as these offers will only be accessible to them. Another prominent
recommendation offered by customers was to offer localised social media contents. This

48
recommendation was mainly offered by Chinese customers of IKEA as they thought that
IKEA’s tendency to reproduce its international commercials and contents in local languages
was not an effective strategy as customers prefer contents that reflect the local culture and
aesthetics. Few of the customers also suggested that IKEA would benefit from offering
monthly promotion campaigns via social media as this creates a buzz around the brand on
digital channels resulting in increased engagement and sales.

4.4 Hypothesis testing

The current study tested the following two research hypotheses;
H1: There is a statistically significant variation between customer attitude towards social media
marketing across the UK and China.
H2: The national culture of the UK and China has a statistically significant effect on social
media marketing effectiveness.
These hypotheses are tested in light of the research findings in this section of the study.

Variation in customer attitude towards social media marketing across the UK and China

Research hypothesis H1 holds true in the current study as a statistically significant variation
between customer attitude towards social media marketing across the UK and China is
evidenced in the study. For instance, the results of the survey indicate that UK customers (2.26)
were comparatively more satisfied with IKEA’s marketing and promotional activities that
Chinese customers (2.36). Similarly, it is also understood that Chinese customers are much
more likely to use social media for comparing brands than the UK customers of IKEA.
Similarly, the tendency to offer feedback and engagement with discounts and offers offered on
social media channels was also comparatively higher among Chinese customers than UK
customers of IKEA. It is also understood that Chinese customers tend to use social media
channels for receiving updates from the brand than UK customers. These results clearly
indicate that customer attitude towards social media marketing vary across the UK and China
as Chinese customers in the survey showed a higher level of engagement and interaction with
social media marketing when compared to UK customers.

Effect of national culture on social media marketing effectiveness

The effectiveness of social media marketing in this study was measured in terms of customer
perception and satisfaction with social media marketing of IKEA. The effect of national culture
on social media marketing effectiveness was assessed by considering the effect of the

49
indulgence level of Chinese and UK customers on their perception and customer satisfaction
with social media marketing of IKEA. From the results of the ANOVA analysis, it is clear that
UK customers of IKEA were more satisfied with the social media marketing of IKEA when
compared to Chinese customers of IKEA. Additionally, it was also identified that UK
customers were also likely to use social media for sharing opinions and were comparatively
happier when engaging with IKEA’s social media than Chinese customers. This was down to
the higher level indulgence of UK customers compared to the restraint culture of Chinese
customers. This means that the national culture of China and the UK were influencing customer
perception of social media marketing of IKEA. Hence it can be understood that research
hypothesis H2 holds true in the current study.

4.5 Discussion
One of the main findings emerging from the current study is that cultural context of a customer
influences how the customer perceives social media marketing of a brand and this in turn
influences customer satisfaction with social media marketing of a brand. This is evident from
the comparatively higher level of engagement and satisfaction shown by UK customers with
IKEA’s social media marketing when compared to Chinese customers. This difference in
customer perception and satisfaction with social media marketing is down to the difference
between UK and Chinese culture in indulgence dimension of Hofstede culture dimensions
theory. UK is an indulgent culture and hence UK customers tend to perceive social media
marketing of IKEA in a more positive manner when compared to Chinese customers who come
from a restraint culture. Beugelsdijk et al. (2016) in the literature review offers similar
argument regarding the effect of level of indulgence on social media marketing. Beugelsdijk et
al. (2016) point out that in indulgence culture environment individuals are more likely to use
the social media channels as they wish to share their happiness with others and in such a
background social media marketing are found to be much useful. This holds true in the current
study as UK customers of IKEA are found to be more satisfied and happy with social media
marketing of the brand. On the other hand, in a restrained culture individuals place low
importance to leisure which in turn results in lower level of engagement and satisfaction with
social media marketing.

4.6 Summary
The data presentation, analysis and interpretation was carried out in this chapter of the
dissertation. The data for the study collected from Chinese and UK customers of IKEA was

50
analysed using ANOVA analysis in order to estimate the variance in customer responses across
nationality. The analysis revealed that cultural context of a customer influences how the
customer perceives social media marketing of a brand and this in turn influences customer
satisfaction with social media marketing of a brand.

51
Chapter 5: Conclusion and Recommendations

5.1 Introduction
This chapter presents the conclusion derived from the primary research. The conclusion will
be delineated on the basis of the identified research objectives. The extent of the consensus of
the findings with these objectives will also be investigated through this chapter. In addition,
recommendations will be provided with regards to the effectiveness of marketing on a cross-
cultural basis considering the case study of IKEA.

5.2 Conclusion
Objective 1: “To evaluate the significance of social media marketing in the organisation
IKEA.”

IKEA has been making use of social media marketing extensively for reaching and engaging
the customers. As understood from the survey, the significance of social media marketing in
the case of IKEA is that it has enabled the creation of massive awareness of the brand. The
strong presence in the social media by presenting promotional activities such as offers and
discounts has consolidated the brand awareness of IKEA among the customers. Moreover,
from the survey it could be understood that customers regularly check the posts of IKEA
through the different social media channels for availing information on offers. Moreover, the
customers mentioned that they prefer social media for comparing brands against IKEA.
Likewise, customers access social media for sharing feedbacks, reviews and also for receiving
updates regarding the brand. Thus, it is evidenced from the case of IKEA that the firms
primarily use social media for engaging the customers with the brand more effectively
(Okazaki and Taylor, 2013).

Objective 2: “To critically analyse the various factors that affect the social media marketing
regarding the cross-cultural context in the organisation.”

Concerning this second objective of this study, the main inference is that social media
marketing needs to be aligned with the different localised preferences. This is specifically
significant in the case of social media marketing across different national cultures.

As understood from the literature review, a national culture possesses typical characteristics
and relevant dimensions regarding the social media usage pattern, purpose of use and
implications. This means that cultural differences impact the social media marketing efficacy.
This is further underpinned by the theoretical model of Hofstede’s. The main cultural

52
dimensions focused by this study have been the indulgence and restraint under this model (Jeon
and Cho, 2015). In the context of this study, indulgence is referred as the intent to build social
relationships while restraint is the lack of enthusiasm of individuals in establishing connections
and networks across social media (Minkov et al., 2017).

The ANOVA variance analysis also supported the influential role of cross cultural dimensions
on the effectiveness of social media marketing. The different customer group from UK and
China responded differently to the various aspects of social media marketing as understood
from the survey. For instance, the UK customer group found to be more affected by the
promotional activities of IKEA through social media in comparison with the Chinese
customers.

This implies that attitude of both customer groups towards social media found to be varying
and this supports the H1. Thus, on an overall, it could be inferred that cross cultural factors
exert influence on social media marketing efficacy.

Objective 3: “To assess the effectiveness of social media marketing in the cross-cultural
context in the case of IKEA.”

It has been identified in the literature that according to Chen et al. (2016), that on analysing the
popular companies, most of the organisations possess various social media accounts and uses
various social media websites. Likewise, Betser (2013) observed in the literature that many
business organisations are using social media from marketing their services and products in
China and the UK.

In the case of IKEA, the effectiveness of social media marketing has been identified through
the survey results. The ANOVA variance analysis indicates that IKEA has been effectively
using social media as a platform for engaging customers. Both the UK and Chinese customers
found to be highly aware and satisfied with the brand. This implies the effectiveness of social
media marketing of IKEA in these countries. However, the variance analysis could reveal some
statistically significant variations in the reach of the promotional activities through social media
towards these customer groups. For instance, in the UK, the use of visual aids found to be
highly effective. Similarly, the preference of social media for sharing opinions by UK
customers have been found to be stronger. These findings indicate that consideration of these
factors would enable IKEA to leverage its social media marketing activities more effectively
in these countries. From the results of the study it is concluded that cultural context of a

53
customer influences how the customer perceives social media marketing of a brand and this in
turn influences customer satisfaction with social media marketing of a brand

5.3 Recommendations

Some of the main recommendations emerging from the study are:

Provide social media only offers to customers: From the results of the survey it is understood
that one of the main recommendations offered by customers for improving social media
promotions of IKEA was related to offering social media only offers under which the brand
would offer special offers and discounts only on social media channels. Customers who engage
with IKEA through social media channels would benefit from these offers as these offers will
only be accessible to them which in turn would lead to higher engagement with IKEA’s social
media channels.

Offer localised contents on social media in China: The results of the survey also revealed
that customers were also demanding that IKEA offer localised social media contents. This
recommendation was mainly offered by Chinese customers of IKEA as they thought that
IKEA’s tendency to reproduce its international commercials and contents in local languages
was not an effective strategy as customers prefer contents that reflect the local culture and
aesthetics.

Conduct monthly social media promotion campaigns: One of the other key
recommendations emerging from the study is to offer social media promotion campaigns to
customers. This is linked to the recommendation offers by few of the customers in the survey
that IKEA would benefit from offering monthly promotion campaigns via social media as this
creates a buzz around the brand on digital channels resulting in increased engagement and sales.

5.4 Recommendations for future study

Despite the findings demonstrating a comparatively larger growth of IKEA the Swedish
furniture retailer, especially through the social media platform with minute-by-minute sales
occurring on a daily basis, this does hold some concern regarding the considerably faster pace
at which it is establishing its growth in such media sites. This does provide fodder for the
growing demands of customers worldwide, where there will emerge some unwanted stressors
associated with the productivity of newer items, including, but not limited to the quality of such
products. The scientific truth behind the tremendously high-speed progress of any given
industry will definitely lead to a sudden standstill when productivity will cease to match the

54
increasing demands of the customers, both online and offline for IKEA. So, this naturally will
call for future studies to be done.

5.5 Limitations
The limitations with respect to the above study while analysing the effectiveness of social
media marketing in the case of IKEA were obtaining secondary data sources. Thus, the
researcher had to face certain difficulties in procuring the needed secondary information, which
could have provided even better insights regarding the issue prevailing in the topic. Another
limitation of this study is that the study assessed social media marketing in terms of customer
perception and satisfaction with social media marketing rather than measuring the actual
effectiveness of social media marketing. This means that the study measured only the perceived
effectiveness of social media marketing of IKEA.

55
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APPENDIX 1: SURVEY QUESTIONNAIRE
Dear Respondent,

I am researching the topic of the effectiveness of marketing in the cross-cultural context, for
the case of IKEA. The survey explores the various marketing and promotional techniques used
by IKEA in the UK and China and how it influences the customers of both markets.

I would be grateful if you would complete the survey, which will be invaluable in completing
my research successfully. The completion of the survey will only take about 10 minutes.

I would like to assure you that all responses will be anonymous and the information collected
from the respondents will be kept confidential. All the rules related to the Data Protection Act
of 2018 will be followed.

Please follow the guidelines related to each question.

Survey Questionnaire for 100 IKEA customers from the UK and China

1. Please indicate your Gender (Please tick)

 Male
 Female

2. Please indicate your Age range. (Please tick)

 Less than 25 years

 Between 25 to 30 years
 Between 30 to 40 years
 Above 40 years

3. What is your country of permanent residence?(Please tick)

 China
 UK

4. From the promotional mediums listed below, which one attracts you towards brands? (Please
tick. You can select more than one choice)

 TV
 Print
 Digital Media

63
  Radio
 Outdoor Advertisements (Billboards, banners and so on)

5. How likely are the following factors to motivate you to prefer a particular brand displayed
on social media platforms? (Please circle an appropriate cell in the table below)

[NB: 1-Highly, 2-Moderately, 3-Neutral, 4-seldom, 5-Not at all]

1 2 3 4 5

To compare
brands

To share ideas

To provide
feedback

To view
discount offers

To receive
updates on
brands

6. Have you heard of the IKEA brand? (Please tick)

 Yes
 No

[If ‘No’, please respond through email that you are not aware of IKEA brand and discontinue
the questionnaire. Your responses will be discarded accordingly]

7. Have you seen the IKEA brand promoted on social media? (Please tick)

 Yes
 No

[If ‘No’, please respond through email that you are not aware of IKEA brand and discontinue
the questionnaire. Your responses will be discarded accordingly]

64
8. What is the most significant promotion factor that attracts you towards the IKEA brand?
(Please tick one)

 Price
 Quality
 Perceived usefulness
 Personal fit

9. Rate the following factors offered by IKEA based on their role in attracting you towards the
brand? (Please circle the appropriate cell in the table below)

[NB: 1-Highly attractive, 2-Attractive, 3-Moderately attractive, 4-Neutral, 5-Not at all

attractive]

1 2 3 4 5

Family-friendly

Attractive range
of products

Light and airy

indoor space

Natural textures

Classic elegance

10. To what extent do you agree with each of the following statements?(Please circle in
appropriate cell in the table below)

[NB: 1-Strongly agree, 2-Somewhat agree, 3-Neither agree nor disagree, 4-Strongly disagree]

1 2 3 4 5

Visualsof
theIKEA
advertisement
offer an excellent

65
 familiarity
towards the brand.

Social media has

helped me in
stating my opinion
freely about the
brand IKEA.

I feel satisfied with

the seasonal
promotional offers
posted on IKEA’s
website pages and
social media.

I feel happy with

every visit to my
IKEA social
website/webpage.

11. How satisfied are you with IKEA’s marketing and promotional activities? (Please circle in
appropriate cell in the table below)

[NB: 1-Highly satisfied, 2- Moderately satisfied, 3- Satisfied, 4- Neutral, 5- Dissatisfied]

1 2 3 4 5

IKEA’s
marketing
and
promotional
strategies

66
12. Do you have any suggestions to improve on the use of promotional methods used by IKEA?
(Please explain)

___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

Thank you for completing and returning the questionnaire.

Once again, I would like to assure you that the data will be held anonymously and
confidentially and will be used solely for academic purpose and no other purpose.

Name: Surbhi

Email:

Contact No.:

67